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interconnecting qualifying facilities with capacity of less than 40 kilowatts who choose not to offer <br />electric power for sale on either a time -of -day basis, a simultaneous purchase and sale basis or roll- <br />over credit basis. <br />Subp. 2. Method of billing. The utility shall bill the customer with an interconnected qualifying <br />facility for the excess of energy supplied by the utility above energy supplied by the qualifying facility <br />during each billing period 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 to the customer at the same site during the same billing period, <br />the utility shall compensate the customer for the excess energy at the average retail utility energy <br />rate. <br />Part O. SIMULTANEOUS PURCHASE AND SALE BILLING RATE <br />Subpart 1. Applicability. The simultaneous purchase and sale rate is available only to customers <br />with qualifying facilities with capacity of less than 40 kilowatts who choose not to offer electric <br />power for sale on average retail utility energy rate basis, time -of -day basis or roll- over credit basis. <br />Subp. 2. Method of billing. A customer with a qualifying facility must be billed for all energy and <br />capacity they consume during a billing period according to the utility's applicable retail rate <br />schedule. <br />Subp. 3. Compensation to a customer with a qualifying facility; energy purchase. The utility shall <br />purchase all energy which is made available to it by the qualifying facility. At the option of the <br />customer, the qualifying facility's entire generation may be deemed to be made available to the <br />utility. Compensation to the customer must be the energy rate shown on schedule 4 2. <br />Subp. 4. Compensation to a customer with a qualifying facility; capacity purchase. If a customer <br />with a qualifying facility provides firm power to the utility, the capacity component must be the <br />utility's net annual avoided capacity cost per kilowatt-hour averaged over all hours shown on <br />schedule 4 2, divided by the number of hours in the billing period. If the qualifying facility does not <br />provide firm power to the utility, no capacity component may be included in the compensation paid <br />to the customer. <br />Part P. TIME -OF -DAY PURCHASE RATES <br />Subpart 1. Applicability. Time -of -day rates are required for customers interconnecting qualifying <br />facilities with capacity of 40 kilowatts or more and less than or equal to 100 kilowatts, and they are <br />optional for customers interconnecting qualifying facilities with capacity less than 40 kilowatts. <br />Time -of -day rates are also optional for customers interconnecting qualifying facilities with capacity <br />greater than 100 kilowatts if these qualifying facilities provide firm power. <br />Subp. 2. Method of billing. The interconnecting customer must be billed for all energy and capacity <br />they consume 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 interconnecting <br />54 <br />