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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. For <br />purposes of determining the "average retail utility energy rate," the utility may consider a retail <br />demand rate as a fixed charge and may exclude such annual revenue from the calculation. The <br />computation shall use data from the most recent 12- month period 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 determined using the aggregate nameplate ratings of all qualifying systems located on the <br />customer side of the point of common coupling. The nameplate ratings of each qualifying system <br />are the maximum alternating current capacity values at the point of DER coupling that could be <br />measured in a 15-minute interval period. <br />Subp. S. Capacity costs. "Capacity costs" means the costs associated with providing the capability to <br />deliver energy. The utility's capacity costs consist of the capital costs of facilities from the utility and <br />the 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 or entity named on the utility electric bill for the <br />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 connecting, <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 />customer as a non -generating customer. <br />Subp. 12. Interruptible power. "Interruptible power" means electric energy or capacity supplied by <br />