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Subp. 3.Compensation to qualifying facility;energy purchase.The utility shall purchase all energy <br /> which is made available to it by the qualifying facility. At the option of the qualifying facility, its <br /> entire generation must be deemed to be made available to the utility. Compensation to the <br /> qualifying facility must be the energy rate shown on schedule 4. <br /> Subp.4. Compensation to qualifying facility;capacity purchase. If the qualifying facility provides <br /> firm power to the utility,the capacity component must be the utility's net annual avoided capacity <br /> cost per kilowatt-hour averaged over all hours shown on schedule 4, divided by the number of hours <br /> in the billing period. If the qualifying facility does not provide firm power to the utility, no capacity <br /> component may be included in the compensation paid to the qualifying facility. <br /> Part O.TIME-OF-DAY PURCHASE RATES <br /> Subpart 1.Applicability.Time-of-day rates are required for qualifying facilities with capacity of 40 <br /> kilowatts or more and less than or equal to 100 kilowatts, and they are optional for qualifying <br /> facilities with capacity less than 40 kilowatts. Time-of-day rates are also optional for qualifying <br /> facilities with capacity greater than 100 kilowatts if these qualifying facilities provide firm power. <br /> Subp. 2. Method of billing.The qualifying facility must be billed for all energy and capacity it <br /> consumes during each billing period according to the utility's applicable retail rate schedule. <br /> Subp. 3. Compensation to qualifying facility;energy purchases.The utility shall purchase all energy <br /> which is made available to it by the qualifying facility. Compensation to the qualifying facility must <br /> be the energy rate shown on schedule 4. <br /> Subp.4.Compensation to qualifying facility; capacity purchases. If the qualifying facility provides <br /> firm power to the utility,the capacity component must be the capacity cost per kilowatt shown on <br /> schedule 4 divided by the number of on-peak hours in the billing period.The capacity component <br /> applies only to deliveries during on-peak hours. If the qualifying facility does not provide firm power <br /> to the utility, no capacity component may be included in the compensation paid to the qualifying <br /> facility. <br /> Part P. ROLL-OVER CREDIT PURCHASE RATES <br /> Subpart 1.Applicability.The roll-over credit rate is available only to qualifying facilities with capacity <br /> of less than 40 kilowatts which choose not to offer electric power for sale on average retail utility <br /> energy rate basis,time-of-day basis or simultaneous purchase and sale basis. <br /> Subp. 2. Method of billing.The utility shall bill the qualifying facility for the excess of energy <br /> supplied by the utility above energy supplied by the qualifying facility during each billing period <br /> according to the utility's applicable retail rate schedule. <br /> Subp. 3.Additional calculations for billing. When the energy generated by the qualifying facility <br /> exceeds that supplied by the utility during a billing period,the utility shall apply the excess kilowatt <br /> hours as a credit to the next billing period kilowatt hour usage. Excess kilowatt hours that are not <br /> offset in the next billing period shall continue to be rolled over to the next consecutive billing period. <br /> Any excess kilowatt hours rolled over that are remaining at the end of each calendar year shall <br /> cancel with no additional compensation. <br /> 6 <br /> 72 <br />