Minnesota Administrative Rules

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.

Statutory Authority:

MS s 216A.05; 216B.08; 216B.164

History:

40 SR 348

Published Electronically:

October 12, 2015