Minn. R. agency 138, ch. 7835, RATES, pt. 7835.4020

Current through Register Vol. 49, No. 12, September 16, 2024

Part 7835.4020 - AMOUNT OF CAPACITY PAYMENTS; CONSIDERATIONS

The qualifying facility which negotiates a contract under part 7835.4019 must be entitled to the full avoided capacity costs of the utility. The amount of capacity payments must be determined through consideration of:

A. the capacity factor of the qualifying facility;

B. the cost of the utility's avoidable capacity;

C. the length of the contract term;

D. reasonable scheduling of maintenance;

E. the willingness and ability of the qualifying facility to provide firm power during system emergencies;

F. the willingness and ability of the qualifying facility to allow the utility to dispatch its generated energy;

G. the willingness and ability of the qualifying facility to provide firm capacity during system peaks;

H. the sanctions for noncompliance with any contract term; and

I. the smaller capacity increments and the shorter lead times available when capacity is added from qualifying facilities.

Minn. R. agency 138, ch. 7835, RATES, pt. 7835.4020

40 SR 348