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To establish the application procedure and qualification criteria for all customers for the <br /> delivery, interconnection, metering and purchase of electricity from distributed energy <br /> resource facilities and to comply with applicable laws and rules governing distributed energy <br /> resources. <br /> The utility recognizes its obligation to provide interconnection to eligible qualifying facilities and will <br /> comply with all applicable laws and rules governing distributed energy resources. <br /> For purposes of this policy,the following terms have the meanings given them: <br /> A. 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 <br /> the utility for sales to the class of customer of which the customer/qualifying facility <br /> belongs. <br /> B. Avoided costs-the incremental costs to the utility of electric energy or capacity or both <br /> which, but for the purchase from the qualifying facility,the utility would generate itself or <br /> purchase from another source. <br /> C. Contract-the written agreement between the customer/qualifying facility and the utility, <br /> as established in the utility's Rules Governing Interconnection of Cogeneration and Small <br /> Power Production. <br /> D. Distributed energy resource (DER) -a distributed generation system incorporated with or <br /> without an electric storage system. <br /> E. Interconnection application-the form to be used by the customer to submit its formal <br /> request for interconnection to the utility and which shall be substantially similar in form to <br /> that contained in the Distributed Energy Resources Interconnection Process adopted by the <br /> utility. <br /> F. Interconnection rules-any applicable rules developed in accordance with Minnesota <br /> Statutes§§216B.164 and 2166.1611.This includes the utility's Rules Governing <br /> Interconnection of Cogeneration and Small Power Production. It also includes the utility's <br /> Distributed Energy Resources Interconnection Process which includes its Simplified Process, <br /> Fast Track Process, and Study Process as well as the technical requirements incorporated <br /> therein or any future technical requirements adopted by the utility. <br /> G. 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 /> H. Net metering/net billing-the process whereby the customer and the utility compensate <br /> each other based on the difference in the amount of energy each sells to the other at the net <br /> metered facility. <br /> I. 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 with a <br /> capacity of less than 40 kilowatts that has elected in writing to be compensated for excess <br /> generation through net metering/net billing. <br /> J. Total generator nameplate capacity-the nominal voltage (V), current(A), maximum active <br /> power(kWac),apparent power(kVA), and reactive power(kvar) at which a distributed <br /> energy resource (DER), is capable of sustained operation. For a qualifying facility with <br /> multiple units,the total generator capacity is equal to the sum of all individual DER units' <br /> 1 <br /> 62 <br />