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Rule Title: GENERAL PROVISIONS
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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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38.5.1902    GENERAL PROVISIONS

(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) Any cogeneration or small power production facility in Montana, which is a qualifying facility under the criteria for size, fuel-use, and ownership established by FERC regulations, 18 CFR, Part 292, as incorporated in ARM 38.5.1901(1), is a qualifying facility eligible to participate, under these rules, in arrangements for purchases and sales of electric power with electric utilities regulated by the commission.

(3) Any qualifying facility in Montana which produces electric energy or capacity, or both, available for purchase by any public utility regulated by the commission, shall not be considered a public utility within the meaning of 69-3-101, MCA, and shall be exempt from regulation by the commission as a public utility, except insofar as these rules or any other commission order, tariff, requirement, or rule governing the activities of public utilities may affect the facility in its dealings with such regulated utilities. Nothing in these rules is to be construed to limit the full powers of regulation, supervision, and control of public utilities vested by law in the commission.

(4) Nothing in these rules shall exempt any qualifying facility from the applicable licensing or permit requirements which may be imposed on facilities by Montana laws and regulations governing water use, land use, community development and planning, zoning, air quality, environmental protection, or any other existing pertinent law or regulation administered by state agencies other than the commission.

(5) All purchases and sales of electric power between a utility and a qualifying facility that is not eligible for standard offer rates shall be accomplished according to the terms of a written contract negotiated between the parties. The utility shall compute the avoided costs for a qualifying facility that is not eligible for standard offer rates at the time the qualifying facility requests a contract. Only qualifying facilities having a nameplate capacity not greater than 3 MW are eligible for standard offer rates. All purchases and sales of electric power between a utility and a qualifying facility that is eligible for standard offer rates shall be accomplished according to the terms of a written contract between the parties or in accordance with the applicable standard tariff provisions as approved by the commission. The utility shall recompute short-term and long-term avoided costs for standard offer rates following submission of its least cost plan filing, ARM 38.5.2001 through 38.5.2012, or procurement plan filing, ARM 38.5.8201 through 38.5.8229. The contract shall specify:

(a) the nature of the purchases and sales;

(b) the applicable rate schedule or negotiated rates for the purchases and sales;

(c) the amount and manner of payment of interconnection costs;

(d) the means for measurement of the energy or capacity purchased or sold by the utility;

(e) the method of payment by the utility for purchases, and the method of payment by the facility for utility sales;

(f) any installation and performance incentives to be provided by the utility to the qualifying facility;

(g) the services to be provided or discontinued by either party during system emergencies;

(h) the term of the contract;

(i) applicable operating safety and reliability standards with which the qualifying facility must comply;

(j) appropriate insurance indemnity and liability provisions.

(6) All purchases and sales of electric power between a utility and a qualifying facility shall be compatible with the goal of the commission's integrated least cost resource planning and acquisition guidelines, ARM 38.5.2001 through 38.5.2012, and the commission's procurement plan guidelines, ARM 38.5.8201 through 38.5.8229.

(7) An existing qualifying facility smaller than 10 MW whose contract with a utility expires prior to July 1, 2015 will not be subject to the 3 MW size limitation for the purpose of obtaining a new or extended contract under an existing standard rate option. 

History: 69-3-103, 69-3-604, MCA; IMP, 69-3-102, 69-3-602, 69-3-603, MCA; NEW, 1981 MAR p. 459, Eff. 5/15/81; AMD, 1992 MAR p. 2764, Eff. 12/25/92; AMD, 2007 MAR p. 2140, Eff. 12/21/07; AMD, 2013 MAR p. 2161, Eff. 11/15/13; AMD, 2015 MAR p. 2318, Eff. 12/25/15.


 

 
MAR Notices Effective From Effective To History Notes
38-5-232 12/25/2015 Current History: 69-3-103, 69-3-604, MCA; IMP, 69-3-102, 69-3-602, 69-3-603, MCA; NEW, 1981 MAR p. 459, Eff. 5/15/81; AMD, 1992 MAR p. 2764, Eff. 12/25/92; AMD, 2007 MAR p. 2140, Eff. 12/21/07; AMD, 2013 MAR p. 2161, Eff. 11/15/13; AMD, 2015 MAR p. 2318, Eff. 12/25/15.
38-5-218 11/15/2013 12/25/2015 History: 69-3-103, 69-3-604, MCA; IMP, 69-3-102, 69-3-602, 69-3-603, MCA; NEW, 1981 MAR p. 459, Eff. 5/15/81; AMD, 1992 MAR p. 2764, Eff. 12/25/92; AMD, 2007 MAR p. 2140, Eff. 12/21/07; AMD, 2013 MAR p. 2161, Eff. 11/15/13
38-2-198 12/21/2007 11/15/2013 History: 69-3-103, MCA; IMP, 69-3-102, MCA; NEW, 1981 MAR p. 459, Eff. 5/15/81; AMD, 1992 MAR p. 2764, Eff. 12/25/92; AMD, 2007 MAR p. 2140, Eff. 12/21/07.
12/25/1992 12/21/2007 History: 69-3-103, MCA; IMP, 69-3-102, MCA; NEW, 1981 MAR p. 459, Eff. 5/15/81; AMD, 1992 MAR p. 2764, Eff. 12/25/92.
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