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customer must be the energy rate shown on schedule 42. <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 2 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 <br />interconnecting customer. <br />Part Q. ROLL-OVER CREDIT PURCHASE RATES <br />Subpart 1. Applicability. The roll-over credit rate is available only to interconnecting 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 simultaneous purchase <br />and sale basis. <br />Subp. 2. Method of billing. The utility shall bill the interconnecting customer for the excess of <br />energy supplied by the utility above energy supplied by the qualifying facility during each billing <br />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 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 />Part R. CONTRACTS NEGOTIATED BY CUSTOMER <br />An interconnecting customer with a qualifying facility with capacity greater than 100 kilowatts <br />must negotiate a contract with the utility setting the applicable rates for payments to the customer <br />of avoided capacity and energy costs. <br />Subpart 1. Amount of capacity payments. The interconnecting customer who negotiates a contract <br />under part Q must be entitled to the full avoided capacity costs of the utility. The amount of capacity <br />payments will be determined by the utility and the utility's wholesale power provider. <br />Subp. 2. Full avoided energy costs. The interconnecting customer who negotiates a contract under <br />part Q must be entitled to the full avoided energy costs of the utility. The costs must be adjusted as <br />appropriate to reflect line losses. <br />Part S. WHEELING <br />Interconnecting customers with qualifying facilities with capacity of 30 kilowatts or greater that <br />are interconnected to the utility's distribution system who choose to sell the output of the qualifying <br />facility to any other utility, must pay any appropriate wheeling charges to the utility. Within 15 days <br />of receiving payment from the utility ultimately receiving the qualifying facility's output, the utility <br />shall pay the interconnecting customer the payment less the charges it has incurred and its own <br />reasonable wheeling costs. <br />55 <br />