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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 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 /> <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 /> <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 <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 />82 <br />