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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 <br />insurance for a qualifying facility or net metered facility as outlined in the utility <br />Interconnection Process. <br />10.Failure of the qualifying facility to operate its distributed energy resource at a measured <br />capacity below the 40 kW AC capacity limit established by Minn. Stat. §216B.164, Sub. 3 <br />and as contemplated by this policy, shall result in the following. The utility will notify the <br />customer/qualifying facility of the fact that its generating equipment has failed to operate <br />below the 40 kW AC maximum capacity and will provide the customer/qualifying facility <br />with the date, time and kW reading that substantiate this finding. <br />11.The utility shall compensate the customer/qualifying facility for all metered electricity <br />produced by said qualifying facility during the thirty (30) day period during which the <br />failure occurred, at the utility's wholesale power supplier's avoided cost rate. <br />12.The utility shall continue to pay the customer/qualifying facility for subsequent electricity <br />produced and delivered pursuant to the contract, at the utility's wholesale power <br />supplier's avoided cost rate until: <br />1.The problem with the generator that caused it to operate at or above the statutory <br />maximum capacity has been remedied; and <br />2.The utility has been provided documentation adopted by a Minnesota Professional <br />Engineer that confirms the problem with the generator has been remedied. <br />13.Any customer account eligible for net metering/net billing is not eligible for any other load <br />management discounts unless agreed to by the utility. <br />14.Payment for the purchase of the qualifying facility <br />of a credit on the custome <br />payment to the customer within fifteen (15) days of the billing date, whichever is selected <br />and indicated in the contract. <br />15.The customer must be, and continue to be, current with payment on its electric account <br />with utility. <br />16.The customer must not enter into any arrangement that violates the utility <br />to provide electric service in its service area under Minnesota Statutes §§216B.37-44. <br />17.In the event that the distributed generator fails to meet the requirements of this policy for <br />a total distributed generation capacity of less than 40 kW AC, and fails to satisfy the <br />corrective requirements set forth in Section 12 above, then the utility will have the right to <br />(1)cancel the contract with the owner of the qualifying facility, and (2) enter into a new <br />contract with the owner of the qualifying facility that, among other changes, adjusts the <br />qualifying facilityqualifying <br />facilityoutput. To the extent that the utility does not have the obligation to make <br />purchases from qualifying facilities of 40 kW or greater due to transfer of the obligation to <br />the utility's wholesale supplier that has been approved by the Federal Energy Regulatory <br />Commission, the new agreement will be between the utility's wholesale supplier and the <br />3 <br />74 <br />