Kentucky Administrative Regulations › Title 807 - ENERGY AND ENVIRONMENT CABINET PUBLIC SERVICE COMMISSION › Chapter 5 - Utilities › Section 807 KAR 5:054 - Small power production and cogeneration

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO: KRS Chapter 278,
				18 C.F.R.
				292.203,
				292.204,
				292.205,
				292.206
NECESSITY, FUNCTION, AND CONFORMITY: Under Title II of the
				Public Utility Regulatory Policies Act of 1978, the Federal Energy Regulatory
				Commission (FERC) was required to adopt rules to encourage cogeneration and
				small power production by requiring electric utilities to sell electricity to
				qualifying cogeneration and small power production facilities and purchase
				electricity from such facilities. Section 210(f) of this Act requires the state
				regulatory authority with jurisdiction over electric utilities to implement the
				FERC rules. As the state regulatory authority for Kentucky, the Public Service
				Commission proposes to implement those rules.
Section 1. Definitions.
(1) "Avoided costs" means incremental costs
			 to an electric utility of electric energy or capacity or both which, if not for
			 the purchase from the qualifying facility, the utility would generate itself or
			 purchase from another source.
(2)
			 "Back-up power" means electric energy or capacity supplied by an electric
			 utility to replace energy ordinarily generated by a facility's own generation
			 equipment during an unscheduled outage of the facility.
(3) "Cogeneration facility" means equipment
			 used to produce electricity and another form of useful energy which is used for
			 industrial purposes or commercial heating or cooling purposes through
			 sequential use of input energy and which facility meets criteria at 18 C.F.R.
			 Part 292.203(b) and 292.205 , as published in the Federal Register on March 20,
			 1980 (45 F.R. 17959).
(4)
			 "Interconnection costs" means the reasonable costs of connection, switching,
			 metering, transmission, distribution, safety provisions and administrative
			 costs incurred by the electric utility directly related to installation and
			 maintenance of physical facilities necessary to permit interconnected
			 operations with a qualifying facility, to the extent those costs are in excess
			 of corresponding costs which the utility would have incurred if it had not
			 engaged in interconnected operations but instead had generated an equivalent
			 amount of electric energy itself or purchased an equivalent amount of electric
			 energy or capacity or both from other sources. Interconnection costs do not
			 include any costs included in calculation of avoided costs.
(5) "Interruptible power" means electric
			 energy or capacity supplied by an electric utility subject to interruption by
			 the electric utility under specified conditions.
(6) "Maintenance power" means electric energy
			 or capacity supplied by an electric utility during scheduled outages of the
			 qualifying facility.
(7) "Purchase"
			 means purchase of electric energy or capacity or both from a qualifying
			 facility by an electric utility.
(8) "Qualifying facility" means a
			 cogeneration facility as defined in this administrative regulation,
			 construction of which was commenced on or after November 9, 1978, or a small
			 power production facility as defined in this administrative regulation,
			 construction or substantial renovation of which was begun on or after November
			 9, 1978, neither of which is owned in equity interest greater than fifty (50)
			 percent by a person primarily engaged in generation of electric power other
			 than as described in these rules.
(9) "Sale" means sale of electric energy or
			 capacity or both by an electric utility to a qualifying facility.
(10) "Small power production facility" means
			 an arrangement of equipment for the production of electricity with capacity no
			 greater than eighty (80) megawatts, which equipment is located within a one (1)
			 mile radius or, if hydroelectric facilities, on the same impoundment of water,
			 and which equipment is powered at least seventy-five (75) percent by biomass,
			 waste, renewable resources, or any combination thereof and not more than
			 twenty-five (25) percent by coal or oil or natural gas or any combination
			 thereof and which meets criteria at 18 C.F.R. Part 292.204 as published in the
			 Federal Register on March 20, 1980 (45 F.R. 17959).
(11) "Supplementary power" means electric
			 energy or capacity supplied by an electric utility, regularly used by a
			 qualifying facility in addition to that which the facility generates
			 itself.
(12) "System emergency"
			 means a condition on a utility's system which may result in imminent
			 significant disruption of service to customers or may imminently endanger life
			 or property.