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Rule Title: DEFINITIONS
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Department: PUBLIC SERVICE REGULATION
Chapter: UTILITY DIVISION
Subchapter: Cogeneration and Small Power Production
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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38.5.1901    DEFINITIONS

(1) The commission hereby adopts and incorporates by reference 18 CFR, Part 292, which sets forth general requirements and criteria for cogeneration and small power production facilities which are eligible for consideration under sections 201 and 210 of the federal Public Utility Regulatory Policies Act of 1978, Pub. L. 95-617. A copy of this incorporated material may be obtained from the Commission, 1701 Prospect Avenue, P.O. Box 202601, Helena, Montana 59620-2601.

(2) For purposes of these rules, the following definitions apply:

(a) "Avoided costs" means the incremental costs as determined by the commission to an electric utility of electric energy or capacity or both which, but for the purchase from the qualifying facility or qualifying facilities, such utility would generate itself or purchase from another source.

(b) "Cogeneration facility" means equipment used to produce electric energy and forms of useful thermal energy such as heat or steam, used for industrial, commercial, heating or cooling purposes, through the sequential use of energy.

(c) "Commission" means the Montana Public Service Commission.

(d) "Interconnection costs" means the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions, and administrative costs incurred by the utility directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations with a qualifying facility, to the extent such costs are in excess of the corresponding interconnection costs which the electric utility would have incurred if it had not engaged in interconnected operations, but instead generated an equivalent amount of electric energy itself or purchased an equivalent amount of electric energy or capacity from other sources. Interconnection costs do not include any costs included in the calculation of avoided costs.

(e) "Production profile" means the expected hourly generation output of a qualifying facility for a full year based an engineering analysis of the qualifying facility’s power production capabilities and fuel use or availability.

(f) "Purchase" means the purchase of electric energy or capacity or both from a qualifying facility by an electric utility.

(g) "Qualifying facility" or "facility" means:

(i) A cogeneration facility which meets the operating, efficiency, and ownership standards established by FERC regulations, 18 CFR, Part 292, as incorporated in ARM 38.5.1901(1); or

(ii) A small power production facility which meets the production capacity, energy source, and ownership criteria established by FERC regulations, 18 CFR, Part 292, as incorporated in ARM 38.5.1901(1).

(h) "Rate" means any price, rate, charge, or classification made, demanded, observed or received with respect to the sale or purchase of electric energy or capacity, or any rule, regulation, or practice respecting any such rate, charge, or classification and any contract pertaining to the sale or purchase of electric energy or capacity.

(i) "Sale" means the sale of electric energy or capacity or both by an electric utility to a qualifying facility.

(j) "Small power production facility" means a facility with a power production capacity which, together with any other facilities located at the same site, does not exceed 50 megawatts of electricity, and which depends upon biomass, waste, or renewable resources for its primary source of energy. At least 50 percent of the equity interest in a small power production facility must be owned by a person not primarily engaged in the generation or sale of electric energy. The provisions of FERC regulations, 18 CFR, Part 292, as incorporated in ARM 38.5.1901(1), respecting site location and primary energy sources are incorporated by reference in this definition.

(k) "Standard rates" means those rates calculated by a means approved by the commission which:

(i) In the case of purchases, are based on avoided costs to the utility, are computed annually by the utility and made available to the public, are reviewed by the commission, and are applicable to all contracts with qualifying facilities which do not choose to negotiate a different rate; or

(ii) In the case of sales by a utility to a qualifying facility, are the utility's tariff schedules in effect for members of the same class as the qualifying facility.

(l) "System emergency" means a condition on a utility's system which is likely to result in imminent significant disruption of service to customers or is imminently likely to endanger life or property.

(m) "Utility" means any public utility, as defined in 69-3-101, MCA, which provides electric service subject to the jurisdiction of the Montana Public Service Commission.

 

History: 69-3-103, MCA; IMP, 69-3-102, MCA; NEW, 1981 MAR p. 459, Eff. 5/15/81; AMD, 2018 MAR p. 1298, Eff. 7/7/18.


 

 
MAR Notices Effective From Effective To History Notes
38-5-240 7/7/2018 Current History: 69-3-103, MCA; IMP, 69-3-102, MCA; NEW, 1981 MAR p. 459, Eff. 5/15/81; AMD, 2018 MAR p. 1298, Eff. 7/7/18.
5/15/1981 7/7/2018 History: 69-3-103, MCA; IMP, 69-3-102, MCA; NEW, 1981 MAR p. 459, Eff. 5/15/81.
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