PART 430 PURCHASE AND SALE OF ELECTRIC ENERGY FROM COGENERATION AND SMALL POWER PRODUCTION FACILITIES (GENERAL ORDER 214) : Sections Listing

TITLE 83: PUBLIC UTILITIES
CHAPTER I: ILLINOIS COMMERCE COMMISSION
SUBCHAPTER c: ELECTRIC UTILITIES
PART 430 PURCHASE AND SALE OF ELECTRIC ENERGY FROM COGENERATION AND SMALL POWER PRODUCTION FACILITIES (GENERAL ORDER 214)


AUTHORITY: Implementing Sections 41 and 36 of "An Act concerning public utilities" (Ill. Rev. Stat. 1981, ch. 111 2/3, pars. 41 and 36), Section 210 of the Public Utilities Regulatory Policies Act (P.L. 95-617) and 18 CFR 292 (1982) and authorized by Section 8 of "An Act concerning public utilities" (Ill. Rev. Stat. 1981, 111 2/3, par. 8).

SOURCE: Adopted at 5 Ill. Reg. 6780, effective June 10, 1981; amended at 7 Ill. Reg. 8234, effective June 30, 1983; codified at 8 Ill. Reg. 6703.

 

Section 430.10  Applicability

 

This Part applies to each electric utility under the ratemaking jurisdiction of the Illinois Commerce Commission.

 

Section 430.20  Availability of Benefits

 

To any facility which is a qualifying facility and which enters into an agreement with a public utility subject to this Part to provide electric energy.  Each qualifying facility must provide to the utility the information required under Section 292.207, Subpart B, Subchapter K, Chapter I, Title 18, of the Code of Federal Regulations (18 CFR 292.207).

 

Section 430.30  Definitions

 

            "Avoided costs" means the incremental costs to the electric utility of electric energy or capacity or both which, but for the purchase from the qualifying facility or qualifying facilities, the utility would generate itself or purchase from another source (18 CFR 292).

 

            "Avoided energy costs" are the avoided variable costs associated with the production of electric energy (kilowatt-hours).  These costs represent the avoided costs of fuel and some operating and maintenance expenses or the cost of purchased energy.  Identifiable capacity charges included in purchase power agreements shall not be included in the calculation of avoided energy costs.

 

            "Avoided total costs" means the total avoided system energy and new capacity costs (and not the average embedded system cost of capacity) or the avoided cost of a capacity purchase which result from the purchase of energy and capacity from a qualifying facility.

 

            "Capacity costs" are the costs associated with providing the capability to deliver energy; they consist primarily of the capital costs of facilities used to generate and transmit electricity.

 

            "Costs of interconnection" means the costs (initial installation and future) of transmission, distribution, metering, service and other physical facilities necessary under good engineering practices to permit interconnected operations with a qualifying facility, plus the engineering and administrative expenses incurred by the utility for the installation and maintenance of such physical facilities, to the extent that 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.  Costs of interconnection shall not include any costs incurred in the calculations of avoided costs, and shall be assessed against a qualifying facility on a nondiscriminatory basis with respect to other customers with similar load characteristics or other cost-related characteristics, without regard as to whether the customer generates all or some of his own electricity (18 CFR 292).

 

            "Customer" means any entity who receives service from a utility irrespective of its qualifying status under this Part.

 

            "Interruptible power" means electric energy or capacity supplied by the utility to the qualifying facility subject to interruption by the utility under certain specified conditions (18 CFR 292).

 

            "Maintenance power" means electric energy or capacity supplied by the utility during scheduled outages of the qualifying facility (18 CFR 292).

 

            "Qualifying facility" means a cogeneration facility or a small power production facility which meets the criteria for qualification set forth in Subpart B of 18 CFR 292.

 

            "Standby power" means electric energy or capacity supplied by the utility to replace energy ordinarily generated by a qualifying facility's own generation equipment during an unscheduled outage of the facility (18 CFR 292).

 

            "Supplementary power" means electric energy or capacity supplied by the utility and regularly used by a qualifying facility in addition to that which the facility generates itself (18 CFR 292).

 

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

 

Section 430.40  Terms and Conditions of Service

 

Each electric utility shall file with the Illinois Commerce Commission such terms and conditions of service as are necessary to adequately insure quality of service, safety and minimum total cost.  These terms and conditions shall apply to all qualifying facilities served under this Part and shall include, but are not limited to, the following:

 

a)         Subject to the provisions of paragraphs (g) and (i) of this Section, the utility shall purchase energy and/or usable capacity (i.e., capacity which would allow the utility to avoid costs) from any qualifying facility that offers to sell energy and/or capacity to the utility and agrees to the conditions set forth in this Part.

 

b)         The owner or operator of the qualifying facility shall be billed for energy and/or capacity sold by the utility to the qualifying facility under the applicable rate schedule and under any applicable conditions set forth in this Section.

 

c)         The owner or operator of the qualifying facility shall execute a contractual agreement with the utility.  The contractual arrangements between utilities and qualifying facilities shall be nondiscriminatory with relation to contracts entered into between a utility and a nonqualifying customer with similar load characteristics or other cost-related characteristics regardless of whether the customer generates some or all of his own electricity.

 

d)         The qualifying facility shall comply with such requirements of the National Electric Safety Code, the National Electrical Code and the interconnecting utility's Electric General Terms and Conditions as specified by the interconnecting utility.

 

e)         The qualifying facility shall furnish, install, operate and maintain in good order and repair and without cost to the utility such relays, locks and seals, breakers, automatic synchronizer and other control and protective apparatus as specified and approved by the utility as necessary for the operation of the qualifying facility in parallel with the utility's system and to permit the utility's facilities to operate in a normal manner.  The utility shall have the right to specify, approve, establish minimum standards for, or require advance consultation on any or all of the above equipment.

 

f)         Switching equipment capable of isolating the qualifying facility from the utility shall be accessible to and under the exclusive control of the utility at all times.

 

g)         At its option, the utility may choose to operate the switching equipment described in (f) above if, in the sole opinion of the utility, continued operation of the qualifying facility in connection with the utility's system may create or contribute to a system emergency, unsafe condition or interference with the service of other customers.  The utility shall endeavor to minimize any adverse effects of such operation on the qualifying facility and shall not utilize such switching equipment in a manner which would treat the qualifying facility as an interruptible customer unless such utilization was agreed upon as specified in the contract between the utility and the qualifying facility.  Conditions resulting in utility action under this paragraph are subject to verification by the Illinois Commerce Commission if either party requests such verification.  The utility shall maintain and make available sufficient documentation to aid the Commission with verification proceedings.

 

h)         All costs of interconnection determined in accordance with the definitions in Section 430.30 – "Costs of interconnection" – shall be the responsibility of the owner or operator of the qualifying facility.  To the extent practicable, the utility shall furnish to the qualifying facility, prior to installation, an estimate of the costs of interconnection.  If the utility incurs any of the costs of interconnection that are the responsibility of the owner or operator of the qualifying facility, the utility shall be reimbursed for such costs (including all carrying costs) by the owner or operator of the qualifying facility over a period of time not greater than the length of the contract between the utility and the owner or operator of the qualifying facility.

 

i)          The utility may discontinue purchases from the qualifying facility during any period in which, due to operational circumstances, purchases from qualifying facilities will result in costs greater than those which the utility would incur if it did not make such purchases, but instead generated an equivalent amount of energy itself.  A claim by an electric utility that such a period has occurred or will occur is subject to verification by the Commission.

 

j)          The utility may discontinue sales to the qualifying facility during a system emergency or unsafe condition provided that such discontinuance is on a nondiscriminatory basis.

 

k)

1)         The utility shall offer to provide maintenance, supplemental and standby power to the qualifying facility.  The utility shall offer to provide interruptible power if a standard rate schedule for interruptible power has been approved by the Commission.  Charges for interruptible power, maintenance power, standby power and supplemental power imposed on the qualifying facility for electricity or reserve capability furnished by the utility shall be at the utility's standard rates, unless the load or other cost characteristics related to the provision of such services justifies different charges. Any such different charges for the provision of such services must be approved by the Commission and shall be applicable to all jurisdictional customers without regard to whether or not they operate qualified facilities hereunder.

 

2)         Nothing in this subsection (k) shall limit the authority of a utility and qualifying facility to agree to any rate or terms or conditions relating to the provision of interruptible, maintenance, standby, and supplemental power.

 

Section 430.50  Data to be Provided by Utilities

 

The purpose of this Section is to describe the data which utilities must provide to the Illinois Commerce Commission, make available for public inspection, and provide to interested parties at a reasonable copying charge.  Data required under Section 430.50 will assist the Illinois Commerce Commission in its review of the standard rate described in Section 430.60 of this Part.

 

a)         The data required under this subsection (a) applies to each utility whose total sales of electric energy for purposes other than resale exceed 500 million kilowatt-hours during any calendar year beginning after December 31, 1975.

 

1)

A)        On June 30, 1984, and not less than every two years thereafter, each electric utility shall file with the Illinois Commerce Commission the data described in 18 CFR 292.302(b).  Costing periods shall be designed to include a minimum of four periods.  The periods shall include summer peak, summer off-peak, winter peak, and winter off-peak.

 

B)        Data described in 18 CFR 292.302(b)(1) shall be indicative of increments of capacity of 10 MW up to a total of 50 MW and increments of capacity of 50 MW up to a total 200 MW below projected demands.  Any utility that can demonstrate that its avoided energy costs are insensitive (to 5% of the costs) to these capacity increments may submit data for blocks of capacity other than the ones required in this paragraph (Section 430.50(a)(1)(B)). Data submission under this subsection (a) shall include a statement of explanation of the following factors:

 

i)          The method of calculating future avoided energy costs, including assumptions;

 

ii)         The increments of capacity for which avoided energy costs are calculated;

 

iii)        The time periods for which avoided energy costs are averaged.

 

C)        In addition, each electric utility shall examine and report anticipated cogeneration levels and anticipated avoidable capacity costs.

 

2)         On June 30, 1982, and not less often than every two years thereafter, each electric utility shall file with the Illinois Commerce Commission the data described in 18 CFR 290.

 

3)         On June 30, 1983, and each June 30 thereafter, each electric utility shall provide the following to the Commission:

 

A)        Estimates of coal, oil and gas usage on a BTU per year basis for the next five years from the current year.

 

B)        Estimates of coal, oil and gas usage on a BTU per year basis for the current year made five years ago pursuant to the requirements of the Illinois Commerce Commission.

 

C)        Actual oil and gas usage on a BTU per month basis for the twelve calendar months ending at least at the end of the first quarter of the current year.

 

4)         On June 30, 1983, and not less often than every two years thereafter, each electric utility shall examine and update the data required under subparagraphs (a)(1) of this Section.  This data shall be filed with the Illinois Commerce Commission and be made available to all qualifying facilities.

 

b)         On June 30, 1984, and not less often than every two years thereafter, each electric utility not covered by Section 430.50(a) shall provide the data described in 18 CFR 292.302(c).

 

(Source:  Amended at 7 Ill. Reg. 8234, effective June 30, 1983)

 

Section 430.60  Standard Energy Rates

 

a)         Purchases by Utilities:

 

1)         Each electric utility shall file, and any qualifying facility may elect to accept, a standard rate for all energy purchased by the utility from the qualifying facility.  This rate shall be based on the utility's avoided energy cost determined in accordance with this Part.  The standard rate shall contain a minimum of four rating periods.  These rating periods shall include summer peak, summer off-peak, winter peak and winter off-peak.

 

2)         The procedures for metering and billing qualifying facilities who elect this standard rate shall be in accordance with Section 430.70.

 

b)         Purchases by Qualifying Facilities:  Subject to the provisions of Section 430.40(k), all electricity purchased by the qualifying facility from the utility shall be at the applicable rate schedule for nonqualifying customers with similar load characteristics or other cost-related characteristics without regard as to whether the customer generates some or all of his own electricity.

 

Section 430.70  Metering Arrangement for the Standard Rate

 

In each standard rate offered by a utility for purchases of energy from a qualifying facility, the electrical registration for billing purposes can be accomplished by two options.

 

a)         Option I

            Under this metering configuration (see ILLUSTRATION A), each meter, with detents, will register the cumulative noncoincident energy and/or demand over the billing period.  Whenever the qualifying facility generates electricity the coincident generation is consumed on-site, thus reducing the energy and/or demand registered by meter M1.  Any excess energy and/or capacity not required by the qualifying facility will be delivered to the utility and registered by meter M2.  The individual meters will separately record all energy delivered to the utility by the qualifying facility and delivered to the qualifying facility by the utility.

 

b)         Option II

 

1)         This metering arrangement consists of three meters with detents (see ILLUSTRATION B).  Meter M1 is the pre-existing meter and meters M2 and M3 are added to record the energy and/or demand requirements to and from the qualifying facility.

 

2)         Any other metering arrangement shall be the subject of negotiations consistent with Sections 430.40 and 430.80 of this Part.

 

Section 430.80  Contractual Arrangements Between Qualifying Facilities and Utilities

 

All qualifying facilities and utilities shall enter into a contractual arrangement regarding the terms and conditions of service and the rates for purchase and sale.  A qualifying facility may elect one of the three contractual arrangements described in paragraphs (a), (b) and (c) below.

 

a)         Standard Energy Rate.  The utility's standard rate, required by Section 430.60, and the associated terms and conditions described in Section 430.40 shall constitute the basic contractual arrangement between a qualifying facility and a utility.

 

b)         Negotiated Energy Rate.

 

1)         Any qualifying facility and utility may negotiate a rate for purchase from the qualifying facility and other terms and conditions of service consistent with this Part.  The contractual arrangements under a negotiated energy rate shall be nondiscriminatory with respect to service contracts entered into between the utility and its customers with similar load characteristics, without regard to whether such customers generate some or all of their own electricity.

 

2)         Energy payments to the qualifying facility under a negotiated energy rate shall be adjusted, to the extent practicable, for the following items if it can be reasonably expected that the qualifying facility will produce, on the average, more than 73,000 kwh per month:

 

A)        line losses – the contract shall take into account the costs or savings resulting from variations in line losses from those that would have existed in the absence of purchases from the qualifying facility if the utility generated or purchased an equivalent amount of energy;

 

B)        reasonable scheduling of maintenance at the convenience of the utility;

 

C)        the availability of energy during system daily and seasonal peak periods;

 

D)        the willingness of the qualifying facility to allow the utility to dispatch the qualifying facility's generated energy at any given time and the ability of the utility to utilize such dispatching capability;

 

E)        the historical and predicted reliability of the qualifying facility to provide energy during the periods described in (C) and (D) above;

 

F)         agreement between the utility and the qualifying facility related to changes in ability of the qualifying facility and/or the utility to carry out the terms of the contract.

 

3)         Each qualifying facility providing energy under this Section shall have the option of receiving avoided costs:

 

A)        calculated at the time of delivery; or

 

B)        estimated to occur during the contract term.

 

4)         This election shall be made prior to the beginning of the contract term.

 

c)         Negotiated Energy and Capacity Rate.

 

1)         Any qualifying facility and utility may negotiate a rate for purchase from the qualifying facility which is based on the avoidance of capacity and energy costs by the utility.  To qualify for this rate, the qualifying facility must enter into a legally enforceable contract to provide capacity that:

 

A)        allows the utility to defer a capacity purchase from another source;

 

B)        allows the utility to defer acquisition of a facility or delay construction;

 

C)        allows the downsizing of an anticipated future addition; or

 

D)        allows for the temporary sale of a portion of an anticipated future addition in capacity.

 

2)         The payment for the capacity and energy purchases from the qualifying facility shall reflect the utility's total avoided cost for the capacity and energy supplied by the qualifying facility.  Any qualifying facility who requests a negotiated energy and capacity rate shall provide to the utility that information necessary to allow the utility to determine the amount of capacity and energy avoidance which may occur.  The utility shall inform the qualifying facility, after receipt of the necessary information, of the value to the utility of the capacity and energy to be supplied by the qualifying facility.

 

3)         The following items shall, to the extent practicable, be taken into account in the determination of the negotiated rate for energy and capacity purchases:

 

A)        the length of any contract term;

 

B)        reasonable scheduling of maintenance;

 

C)        the willingness and ability of the qualifying facility to provide firm capacity during system emergencies, and the historical performance of the qualifying facility in providing firm capacity during system emergencies;

 

D)        the willingness and ability of the qualifying facility to provide firm capacity during system peaks and the historical performance of the qualifying facility in providing firm capacity during system peaks;

 

E)        the historical and predicted reliability of the qualifying facility to provide capacity during the periods described in (C) and (D) above;

 

F)         agreements between the utility and the qualifying facility related to changes in the ability of the qualifying facility and/or the utility to carry out the terms of the contract;

 

G)        the date the qualifying facility first began providing capacity;

 

H)        the historical and predicted reliability of qualifying facilities as a class or group to provide capacity during the periods described in (C) and (D) above;

 

I)         on an annual basis, capacity payments to a qualifying facility shall not exceed the utility's actual avoided costs;

 

J)         those items listed in Section 430.80(b)(2)(A-F).

 

4)         Each qualifying facility providing energy and capacity under this Section shall have the option of receiving avoided costs:

 

A)        calculated at time of delivery; or

 

B)        estimated to occur during the contract term.

 

5)         This election shall be made prior to the beginning of the contract term.

 

6)         The contractual arrangements under a negotiated energy and capacity rate shall be nondiscriminatory with respect to service contracts entered into between the utility and its customers with similar load characteristics, without regard to whether such customers generate some or all of their own electricity.

 

d)         The owner or operator of the qualifying facility shall be billed for all energy sold by the utility according to the applicable rate schedule, in accordance with the provisions of Sections 430.40(k) and 430.60(b).

 

e)         In the case in which a rate for purchase from a qualifying facility is based upon estimates of avoided costs over the specific term of the contract, such rate does not violate this Part if the rate for such purchase differs from avoided costs at the time of delivery.

 

Section 430.90  Limitations

 

a)         Nothing in this Part relieves the utility from carrying out its responsibilities as described in Section 201 and 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA) or in the rules promulgated pursuant to said Act.

 

b)         Nothing in this Part:

 

1)         limits the authority of the utility or a qualifying facility to agree to a rate for any purchase, or terms or conditions relating to any purchase, which differ from the rate or terms or conditions which would otherwise be provided by this Part provided such rate

 

A)        is just and reasonable to the electric customer of the electric utility and in the public interest, and

 

B)        does not discriminate against qualifying cogeneration and small power production facilities;

 

2)         affects the validity of any contract entered into between a qualifying facility and a utility for any purchase.

 

Section 430.100  Remedy

 

In the event of an impasse in negotiations between the utility and the qualifying facility, either party may request a determination of the issues by the Commission.  This determination may be requested either formally or informally.  If either party requests a formal determination with the Commission, said party shall file a petition with the Commission naming the other party as a respondent.  Any petition filed pursuant to this Section shall comply with the Rules of Practice of the Illinois Commerce Commission (83 Ill. Adm. Code 200).

 

Section 430.110  Tariff and Rules to be Filed

 

a)         Within 60 days of the adoption of this Part, each electric utility shall file with the Commission tariffs, rules and regulations implementing this Part.  On each June 30 thereafter, each electric utility shall file revised standard rates as described in Section 430.60.

 

b)         Any agreement negotiated pursuant to Sections 430.80(b), 430.80(c), or 430.90 of this Part shall be filed by the utility with the Illinois Commerce Commission.  Upon filing by the utility, notice shall be given to the qualifying facility.

 

c)         Any electric utility which becomes subject to this Part after the effective date of this Part shall file with the Commission tariffs, rules and regulations implementing this Part 180 days after the end of the calendar year the utility becomes subject to this Part.

 

(Source:  Amended at 7 Ill. Reg. 8234, effective June 30, 1983)




Section 430.ILLUSTRATION A   Option I Metering

 

 

 

Section 430.ILLUSTRATION B  Option II Metering