3 Alaska Admin. Code § 50.765

Current through December 21, 2024

Section 3 AAC 50.765 - Integration

(a) An electric utility shall identify the costs of integrating the qualifying facility into the electric utility's system and shall quantify the benefits derived from integrating the qualifying facility into the electric utility's system. If the identified costs of integration exceed the quantified benefits of integration, the electric utility may assess integration fees to the qualifying facility. If the quantified benefits exceed the identified costs, the electric utility shall make integration payments to the qualifying facility.

(b) Costs used to calculate integration fees or integration payments include only costs that are reasonably necessary under accepted industry standards for maintaining the safety, integrity, and reliability of the electric utility's system. However, the costs must be

(1) directly related to and necessary for the operation of the qualifying facility within the electric utility's system;

(2) comprised of the net increase or decrease to the corresponding costs which the electric utility would have incurred if it had not engaged in interconnected operations with a qualifying facility, but instead generated an equivalent amount of electric energy itself or purchased an equivalent amount of electric energy or capacity from other sources; and

(3) not duplicative of the costs associated with facilities or measures used by the utility for reasons other than the integration of the qualifying facility.

(c) Identified costs and quantified benefits may not include any costs or benefits used to calculate avoided cost rates or interconnection charges.

(d) Integration fees and payments must be just and reasonable and in the public interest and must not discriminate against the qualifying facility.

(e) If an electric utility uses facilities or measures to support the integration of more than one qualifying facility or other generation facility, the electric utility must fairly allocate the costs among the qualifying facilities and generation facilities.

3 AAC 50.765

Eff. 3/11/2016, Register 217, April 2016

Authority:AS 42.05.141

AS 42.05.151

AS 42.05.241

AS 42.05.301

AS 42.05.311

AS 42.05.321

AS 42.05.361

AS 42.05.381