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I. Measured Capacity-for purposes of determining capacity, it shall be measured based on the <br /> highest fifteen (15) minute average demand of the unit in any one billing period. <br /> J. In the event an inconsistency exists between terms in this policy and those established by <br /> Statute, Rule or Court Order,then the definition so established shall supersede the definition <br /> used in this policy and shall govern. <br /> All customers are eligible for distributed generation, interconnection with the utility's distribution <br /> system and application of net metering upon the following terms and conditions. <br /> 1. The customer must meet the eligibility requirements set forth in the federal Public Utility <br /> Regulatory Policies Act of 1978 (PURPA) *18 C.F.R. 292.303, 292.304 and Minnesota's <br /> Distributed Generation laws. Minn.Stat.§2166.164. <br /> 2. The customer shall complete,sign and return to Utility an Interconnection Application in the <br /> form prescribed in Exhibit A hereto.The Application shall be approved by Utility prior to the <br /> customer beginning the project. <br /> 3. The customer shall enter into a written contract with the Utility using the uniform utility <br /> contract contained in the Utility Cogeneration Rules. <br /> 4. The qualifying facility shall pay the Utility for all reasonable costs of interconnection <br /> including those costs outlined in Minnesota Statute 2166.164,the Minnesota <br /> Interconnection Process, and the Minnesota Interconnection Technical Requirements as <br /> established in PUC Docket CI-01-1023. <br /> 5. The qualifying facilities total generator nameplate capacity shall be less than 40 kW and the <br /> facility shall operate at a measured capacity of less than 40 kW at all times. <br /> 6. The Utility may limit the capacity and operating characteristics of distributed generation <br /> single phase generators in a manner consistent with the utility limitations for single phase <br /> motors,when necessary to avoid a qualifying facility from causing problems with the service <br /> of other customers. <br /> 7. The Utility may require the qualifying facility to discontinue parallel generation operations <br /> when necessary for system safety. <br /> 8. The power output from the qualifying facility must be maintained so that frequency and <br /> voltage are compatible with normal utility service and do not cause that service to fall <br /> outside the prescribed limits of interconnection rules and other standard limitations. <br /> 9. The qualifying facility shall keep in force liability insurance against personal or property <br /> damage due to the installation, interconnection, and operation of its electric generating <br /> facilities.The amount of insurance coverage shall be the maximum amount of said insurance <br /> for a qualifying facility or net metered facility as outlined in the State of Minnesota <br /> Distributed Generation Interconnection Requirements. <br /> 10. Failure of the qualifying facility to operate its generators at a measured capacity below the <br /> 40 kW capacity limit established by M.S. 2166.164,Sub. 3 and as contemplated by this <br /> policy,shall result in the following.The Utility will notify the customer/qualifying facility of <br /> the fact that its generating equipment has failed to operate below the 40 kW maximum <br /> capacity and will provide the customer/qualifying facility with the date,time and kW reading <br /> that substantiate this finding. <br /> 2 <br /> 43 <br />