Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1.
Method of billing.
The qualifying facility must be billed for all energy and
capacity it consumes during each billing period according to the utility's
applicable retail rate schedule. Any utility rate-regulated by the commission
may propose time-of-day retail rate tariffs which require qualifying facilities
that choose to sell power on a time-of-day basis to also purchase power on a
time-of-day basis.
Subp. 2.
Compensation to qualifying facility.
The utility must purchase all energy and capacity which is
made available to it by the qualifying facility. Compensation to the qualifying
facility must be the sum of items A and B.
A. The energy component must be the
appropriate on-peak and off-peak system incremental costs shown on schedule A;
or if the generating utility has not filed schedule A, the energy component
must be the energy rate of the retail rate schedule applicable to the
qualifying facility, filed in lieu of schedules A and B; or if the
nongenerating utility has not filed schedule A, the energy component must be
the energy rate shown on schedule H.
B. If the qualifying facility provides firm
power to the utility, the capacity component must be the utility's net annual
avoided capacity cost per kilowatt-hour averaged over the on-peak hours as
shown on schedule B; or if the generating utility has not filed schedule B, the
capacity component must be the demand charge per kilowatt, if any, of the
retail rate schedule applicable to the qualifying facility, filed in lieu of
schedules A and B, divided by the number of on-peak hours in the billing
period; or if the nongenerating utility has not filed schedule B, the capacity
component must be the capacity cost per kilowatt shown on schedule H, divided
by the number of on-peak hours in the billing period. The capacity component
applies only to deliveries during on-peak hours. If the qualifying facility
does not provide firm power to the utility, no capacity component may be
included in the compensation paid to the qualifying facility.
