Minnesota Administrative Rules
Agency 138 - Public Utilities Commission
Chapter 7835 - COGENERATION AND SMALL POWER PRODUCTION
RATES
Part 7835.4020 - AMOUNT OF CAPACITY PAYMENTS; CONSIDERATIONS
Current through Register Vol. 49, No. 13, September 23, 2024
The qualifying facility which negotiates a contract under part 7835.4019 must be entitled to the full avoided capacity costs of the utility. The amount of capacity payments must be determined through consideration of:
A. the capacity factor of the qualifying facility;
B. the cost of the utility's avoidable capacity;
C. the length of the contract term;
D. reasonable scheduling of maintenance;
E. the willingness and ability of the qualifying facility to provide firm power during system emergencies;
F. the willingness and ability of the qualifying facility to allow the utility to dispatch its generated energy;
G. the willingness and ability of the qualifying facility to provide firm capacity during system peaks;
H. the sanctions for noncompliance with any contract term; and
I. the smaller capacity increments and the shorter lead times available when capacity is added from qualifying facilities.
