Administrative Rules of Montana › Department 38 - PUBLIC SERVICE REGULATION › Chapter 38.5 - UTILITY DIVISION › Subchapter 38.5.19 - Cogeneration and Small Power Production › Rule 38.5.1902 - GENERAL PROVISIONS

Current through Register Vol. 13, July 5, 2024
(1) Any qualifying
				facility is eligible to participate, under these rules, in arrangements for
				purchases and sales of electric power with electric utilities regulated by the
				Commission.
(2) Any qualifying
				facility in Montana that 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.
(3) 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.
(4) All purchases and sales of electric power
				between a utility and a qualifying facility that is not eligible for standard
				rates shall be accomplished according to the terms of a written contract
				negotiated between the parties and/or terms set by the Commission pursuant to a
				petition under
				69-3-603,
				MCA. The utility and the qualifying facility must attempt to negotiate an
				agreement, and if no agreement can be reached, either the utility or the
				qualifying facility may file a petition with the Commission pursuant to
				69-3-603,
				MCA, to set the terms and conditions of the contract.
(5) All purchases and sales of electric power
				between a utility and a qualifying facility that is eligible for standard rates
				shall be accomplished according to the terms of a written contract between the
				parties or in accordance with the applicable standard rate tariff provisions
				and any applicable standard power purchase agreement approved by the
				Commission. The utility shall recompute avoided costs for standard rates
				following submission of its resource plan.
(6) All contracts between utilities and
				qualifying facilities shall specify:
(a) the
				nature of the purchases and sales;
(b) the applicable rate schedule or
				negotiated rates for the purchases and sales or the Commission-determined rates
				pursuant to
				69-3-603,
				MCA;
(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 obligations;
(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; and
(j) appropriate
				insurance indemnity and liability provisions.