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The purpose of this policy is to establish the application procedure and qualification criteria for <br /> all customers for the delivery, interconnection, metering and purchase of electricity from <br /> distributed generation facilities and to comply with applicable laws and rules governing <br /> distributed generation. <br /> Elk River Municipal Utilities (Utility) recognizes its obligation to provide an interconnection to qualifying <br /> facilities that are eligible for distributed generation and will comply with all applicable laws and rules <br /> governing distributed generation. <br /> For purposes of this policy,the following terms have the meaning given them: <br /> A. Net Metering/Net Billing-the process whereby the customer and the utility compensate each <br /> other based on the difference in the amount of energy each sells to the other at the net <br /> metered facility. <br /> B. Net Metered Facility-an electric generation facility constructed for the purpose of offsetting <br /> energy use through the use of renewable energy or high efficiency generation sources. <br /> C. Average Retail Energy Rate-the average of the retail energy rates, exclusive of special rates <br /> based on income,age,or energy conservation, according to the applicable rate schedule of the <br /> utility for sales to the class of customer of which the customer/qualifying facility belong. <br /> D. Avoided Costs-the incremental costs to the utility of electric energy or capacity or both which, <br /> but for the purchase from the qualifying facility,the utility would generate itself or purchase <br /> from another source. <br /> E. Interconnection Rules-means any applicable Utility Cogeneration Rules developed in <br /> accordance with Minnesota Statutes 2166.164 and 2166.1611 that include issues outlined in the <br /> State of Minnesota Interconnection Process for Distributed Generation Systems, Distributed <br /> Generation Interconnection Requirements, General Interconnection Application, Engineer Data <br /> Submittal and Interconnection Agreement. <br /> F. Interconnection Application-the form to be used by the customer to submit its formal request <br /> for interconnection to the utility and which shall be substantially similar in form to that <br /> Application attached as Exhibit A to this policy.The customer signature on the interconnection <br /> application indicated the customer shall follow the steps outlined in the Utility Cogeneration <br /> Rules and the State of Minnesota Interconnection Process for Distributed Generation System. <br /> The interconnection between the qualifying facility or net metered facility and the utility must <br /> comply with the requirements as stated in the State of Minnesota Distributed Generation <br /> Interconnection Requirements. <br /> G. Contract-the written agreement between the customer/qualifying facility and the utility, as <br /> established in the Utility Cogeneration Rules. <br /> H. Total Generator Nameplate Capacity-the total kW output of a qualifying facility's generator. <br /> For purposes of this definition total output is determined by the nameplate capacity rating,or in <br /> the event that the nameplate capacity is not less than 40 kW,then the existence of any variable <br /> speed drive or other limiting device shall be factored into determining total generator <br /> nameplate capacity.The customer must fully,accurately and completely disclose in its <br /> interconnection application to the utility,the technical specifications for any capacity limiting <br /> device contemplated and the customer shall furnish the utility with any factory manuals or <br /> other similar documents requested from the utility regarding such limiting or other control <br /> devices which factor into the calculation of total generator nameplate capacity. <br /> 1 <br /> 42 <br />