Indiana Administrative Code › Title 170 - INDIANA UTILITY REGULATORY COMMISSION › Article 4 - ELECTRIC UTILITIES › Rule 4.1 - Cogeneration and Alternate Energy Production Facilities › Section 4.1-1 - Definitions

Current through July 10, 2024
Authority: IC 8-1-1; IC 8-1-2; IC 8-1-2.4
Affected: IC 8-1-2.4
Sec. 1.
(a) As used
				in this rule, "alternate energy production facility" means an arrangement of
				equipment for the production of electricity from the movement of water or wind,
				by photoelectric transformation, or through the combustion of refuse, a
				renewable source, or a recovered resource.
(b) As used in this rule, "avoided cost"
				means the incremental cost to an electric utility of electric energy or
				capacity, or both, which, but for the purchase from a qualifying facility or
				facilities, the utility would generate or maintain itself or purchase from
				another source.
(c) As used in this
				rule, "back-up power" means electric energy or capacity supplied by an electric
				utility to replace energy ordinarily generated by a qualifying facility's own
				generation equipment during an unscheduled outage of the facility.
(d) As used in this rule, "capacity" means
				the ability to provide electric energy in a period of time.
(e) As used in this rule, "cogeneration
				facility" means an arrangement of equipment which uses thermal energy to
				sequentially or simultaneously render electricity and useful thermal energy
				used for industrial, commercial, heating, or cooling purposes. The facility
				must meet energy efficiency standards for a cogeneration facility established
				by the Federal Energy Regulatory Commission under
				16 U.S.C.
				824a-3, in effect November 9, 1978.
(f) As used in this rule, "commission" means
				the Indiana utility regulatory commission.
(g) As used in this rule, "electric utility"
				means a public utility or municipally-owned utility that owns, operates, or
				manages an electric plant.
(h) As
				used in this rule, "existing qualifying facility" means a qualifying facility
				which was in operation before July 1, 1983.
(i) As used in this rule, "generating
				electric utility" means an electric utility with an annual sale of five hundred
				(500) million kilowatt-hours or more, which owns or leases, in whole or part,
				an electric generating facility providing a portion of the kilowatt-hours sold
				to its customers.
(j) As used in
				this rule, "interconnection" means the physical, parallel connection of a
				qualifying facility with a transmission or distribution facility of an electric
				utility for the purchase or sale, or both, of electricity.
(k) As used in this rule, "interconnection
				cost" means the reasonable cost of connection, switching, metering,
				transmission, distribution, safety provisions, and administrative costs
				incurred by the electric utility directly related to the installation and
				maintenance of a physical facility necessary to permit interconnected
				operations with a qualifying facility, to the extent the costs are:
(1) in excess of the corresponding costs
				which the electric utility would have incurred if it had not engaged in
				interconnected operations but instead generated an equivalent amount of
				electricity itself or purchased an equivalent amount of electricity from other
				sources; and
(2) not otherwise
				recognized in rates for purchase of energy, or capacity and energy, by the
				electric utility.