Subpart 1.
Method of billing.
The qualifying facility must be billed for all energy and
capacity it consumes during a billing period according to the utility's
applicable retail rate schedule.
Subp.
2.
Compensation to qualifying facility.
The utility must purchase all energy and capacity which is
made available to it by the qualifying facility. At the option of the
qualifying facility, its entire generation must be deemed to be made available
to the utility. Compensation to the qualifying facility must be the sum of
items A and B.
A. The energy component
must be the appropriate system average incremental energy 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 all hours 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 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
hours in the billing period. 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.
Notes
Minn. R. agency 138, ch. 7835, RATES, pt. 7835.4014
