N.M. Code R. § 17.9.570.9

Current through Register Vol. 35, No. 9, May 7, 2024

Section 17.9.570.9 - OBLIGATION TO PURCHASE

A. If a qualifying facility elects to sell power to the utility on an as-available basis, the utility shall purchase power from the qualifying facility from the date the qualifying facility begins providing as-available power to the utility.

B. If a qualifying facility elects to sell power to the utility in accordance with a legally enforceable obligation, the legally enforceable obligation arises on the date that the qualifying facility demonstrates compliance with all of the following prerequisites:

(1) The qualifying facility has filed an interconnection application with the appropriate entity and has tendered all required fees to that entity;

(2) The qualifying facility has taken meaningful steps to obtain site control to construct the entire qualifying facility, which the qualifying facility may demonstrate through the production of executed agreements and through similar measures;

(3) The qualifying facility has applied for all required federal, state, and local permits and licenses necessary to construct and operate the facility, and has tendered all required fees to the appropriate governmental authorities;

(4) The qualifying facility has completed all environmental studies and other actions necessary to support permit and license applications including but not limited to acquired and recorded in the appropriate governmental offices all real property rights necessary to construct and operate the facility, such as real property leases, rights of way, line locations approvals and easements;

(5) The qualifying facility has obtained or applied for financing of the proposed project, as evidenced by loan application documents or other types of financing applications;

(6) The qualifying facility has provided the utility with a construction plan and timeline for the construction of the facility, including construction cost quotes; and

(7) The qualifying facility has submitted a self-certification to the federal energy regulatory commission that has not been revoked, has received an order from the federal energy regulatory commission certifying qualifying facility status, or has otherwise demonstrated that certification as a qualifying facility is not required under the Federal Energy Regulatory Commission's regulations.

C. After receipt of a qualifying facility's request that the utility acknowledge that a legally enforceable obligation to purchase from the qualifying facility has arisen, the utility shall provide a response to the qualifying facility within 30 calendar days. If the utility rejects the qualifying facility's request or otherwise fails to acknowledge the request within 30 calendar days, the qualifying facility may file an application with the commission seeking a determination that the utility has a legally enforceable obligation to purchase power from the qualifying facility, with the date of such obligation to be fixed by the commission.

D. Regardless of when a legally enforceable obligation arises, the utility's obligation to begin paying for power provided under a legally enforceable obligation begins on the date the qualifying facility begins delivering power to the utility.

E. An electric utility is obligated to purchase power from a qualifying facility at the utility's avoided cost, as calculated under 17.9.570.11 NMAC, regardless of whether the electric utility making such purchase is simultaneously selling power to the qualifying facility.

F. The qualifying facility shall give the utility at least 60 days written advance notice to interconnect. Such notice shall specify the date the qualifying facility will be ready for interconnection, the date the qualifying facility will be able to commence testing, and the anticipated date of operation after testing. The qualifying facility shall pay the estimated costs of interconnection in full at the time the notice to interconnect is given. The utility shall pay a qualifying facility for any energy produced during testing of the qualifying facility at the appropriate energy rate pursuant to Subsection B of 17.9.570.11 NMAC.

G. If the utility determines that it cannot interconnect the qualifying facility within the time set in the notice to interconnect because adequate interconnection facilities are not available, it shall, within 15 business days of receipt of the notice to interconnect, notify the qualifying facility specifying the reasons it cannot interconnect as requested by the qualifying facility and specifying the date interconnection can be made. If the qualifying facility objects to the date for interconnection specified by the utility, objects to the utility's determination that adequate interconnection facilities are not available, or disputes the good faith efforts of the utility to interconnect, the qualifying facility may initiate a proceeding before the commission pursuant to the complaint process of this 17.9.570 NMAC. If the commission finds that the utility's position on the time for interconnection or unavailability of interconnection facilities was not justified, the qualifying facility shall be deemed to have been interconnected and the qualifying facility shall be deemed to have otherwise complied with its contractual duties on the 60^th day following the notice to interconnect and payments by the utility to the qualifying facility shall commence at the appropriate power rate which shall be applied to the amount of imputed or expected power as if the qualifying facility were producing, provided that the qualifying facility's power was available.

N.M. Code R. § 17.9.570.9

17.9.570.9 NMAC - Rp, 17.9.570.9 NMAC, 10-15-08, Adopted by New Mexico Register, Volume XXXIII, Issue 10, May 24, 2022, eff. 5/24/2022