Each proposed contract for the purchase of
capacity or energy which is filed with the Commission pursuant to
must include, without limitation:
(a) The level of capacity which will be
provided by the qualifying facility.
(b) The rates for the sale of capacity or
energy to the utility.
procedure for modifying or terminating the contract if the qualifying facility
fails to meet critical milestones.
(d) A requirement for the installation of a
metering device to record the delivery of power from the qualifying facility to
(e) A requirement that
the qualifying facility obtain insurance for liability to protect a utility
from damages which may result from the injury or death of a person or the
destruction of property because of the operation of a qualifying
(f) The duties relating to
the operation of the qualifying facility which may be assigned or delegated by
the owner or operator of that facility. An owner or operator of a facility
shall not delegate his or her duties to a person who lacks the resources or
knowledge and experience to perform in accordance with the provisions of the
Remedies and damages
available to the utility for the failure of the qualifying facility to perform
its duties pursuant to the contract, including, without limitation, the:
(1) Recovery of any overpayments;
(2) Cost of the replacement of capacity or
(3) Incremental cost of
a replacement facility.
(h) The method for allocating the
interconnection costs for the delivery of power from the qualifying
2. If a
contract which includes front-end payments does not include a requirement that
the qualifying facility obtain a bond or other security, the reason for the
lack of such a requirement must be submitted to the Commission at the time the
contract is filed.
application for approval of a contract executed by a public utility and a
qualifying facility, independent producer of power or similar entity that
contracts with a public utility to sell the utility power must include the
amount of bonds, the interest on which is exempt from federal income tax or
excluded from gross revenue for the purposes of federal income tax, which the
qualifying facility, independent producer of power or similar entity intends to
seek from the State of Nevada or any political subdivision thereof. The
qualifying facility, independent producer of power, or similar entity shall
give notice of the amount of the bonds which it intends to seek to the Director
of the Department of Business and Industry at the time it files its application
with the Commission.