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Part A. DEFINITIONS <br /> Subpart 1.Applicability. For purposes of these rules,the following terms have the meanings given <br /> them below. <br /> Subp. 2.Average retail utility energy rate. "Average retail utility energy rate" means,for any class of <br /> utility customer,the quotient of the total annual class revenue from sales of electricity minus the <br /> annual revenue resulting from fixed charges, divided by the annual class kilowatt-hour sales.The <br /> computation shall use data from the most recent calendar year available. <br /> Subp. 3. Backup power. "Backup power" means electric energy or capacity supplied by the utility to <br /> replace energy ordinarily generated by a qualifying facility's own generation equipment during an <br /> unscheduled outage of the facility. <br /> Subp.4.Capacity. "Capacity" means the capability to produce,transmit, or deliver electric energy, <br /> and is measured by the number of megawatts alternating current at the point of common coupling <br /> between a qualifying facility and the utility's electric system during a 15-minute interval period. <br /> Subp. 5.Capacity costs. "Capacity costs" means the costs associated with providing the capability to <br /> deliver energy.The utility capacity costs consist of the costs of facilities from the utility and the <br /> utility's wholesale provider used to generate,transmit, and distribute electricity and the fixed <br /> operating and maintenance costs of these facilities. <br /> Subp. 6. Customer. "Customer" means the person named on the utility electric bill for the premises. <br /> Subp. 7. Energy. "Energy" means electric energy, measured in kilowatt-hours. <br /> Subp. 8. Energy costs. "Energy costs" means the variable costs associated with the production of <br /> electric energy.They consist of fuel costs and variable operating and maintenance expenses. <br /> Subp. 9. Firm power. "Firm power" means energy delivered by the qualifying facility to the utility <br /> with at least a 65 percent on-peak capacity factor in the month.The capacity factor is based upon <br /> the qualifying facility's maximum metered capacity delivered to the utility during the on-peak hours <br /> for the month. <br /> Subp. 10.Governing body. "Governing body" means Elk River Municipal Utilities Commission. <br /> Subp. 11. Interconnection costs. "Interconnection costs" means the reasonable costs of connection, <br /> switching, metering,transmission, distribution,safety provisions, and administrative costs incurred <br /> by the utility that are directly related to installing and maintaining the physical facilities necessary to <br /> permit interconnected operations with a qualifying facility. Costs are considered interconnection <br /> costs only to the extent that they exceed the costs the utility would incur in selling electricity to the <br /> qualifying facility as a nongenerating customer. <br /> Subp. 12. Interruptible power. "Interruptible power" means electric energy or capacity supplied by <br /> the utility to a qualifying facility subject to interruption under the provisions of the utility's tariff <br /> applicable to the retail class of customers to which the qualifying facility would belong irrespective <br /> of its ability to generate electricity. <br /> 1 <br /> 67 <br />