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38.5.1909    CREATION OF A LEGALLY ENFORCEABLE OBLIGATION

(1) A legally enforceable obligation is created when a qualifying facility has demonstrated, based on objective and reasonable criteria, commercial viability and a financial commitment to construct its facility. A qualifying facility has demonstrated commercial viability and a financial commitment when:

(a) It has obtained qualifying facility status from FERC pursuant to the certification procedures in 18 CFR part 292;

(b)  It has provided to the utility the following:

(i)  a description of the location of the project;

(ii) an estimate of the energy production for the project, produced through industry-accepted engineering methods, that includes the kilowatt-hours or megawatt-hours to be produced by the qualifying facility for each month and year of the entire term of the qualifying facility's anticipated power purchase agreement;

(iii) an interconnection application, including any application fees;

(iv) a power purchase agreement executed by the qualifying facility; and

(v) a deposit, paid in full, to cover the estimated costs for a system impact or facilities study;

(c) It has taken meaningful steps to obtain site control adequate to commence construction of the project at the proposed location and operate the facility, throughout the term of the contract;

(d) It has submitted applications, including filing fees, to obtain all necessary permits, licenses, and approvals necessary to construct and operate the facility, and has provided copies of the same to the utility; and

(e) If the qualifying facility seeks payment for an avoided cost of capacity, it has requested to be studied for interconnection as a network resource.


History: 69-3-103, 69-3-604, MCA; IMP, 69-3-102, 69-3-604, MCA; NEW, 2018 MAR p. 1298, Eff. 7/7/18; AMD, 2022 MAR p. 1919, Eff. 9/24/22.

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