Oregon Administrative Rules › Chapter 860 - PUBLIC UTILITY COMMISSION › Division 29 - REGULATIONS RELATED TO AGREEMENTS BETWEEN ELECTRIC UTILITIES AND ELECTRIC COGENERATION AND SMALL POWER PRODUCTION FACILITIES › Section 860-029-0044 - Allocation of Costs to Related Deliveries from Off-system Qualifying Facilities

Current through Register Vol. 63, No. 7, July 1, 2024
(1) If the
			 merchant function of the purchasing public utility has access to information
			 that the proposed Point of Delivery in an off-system qualifying facility's
			 request for a draft standard power purchase agreement may be unavailable due to
			 transmission capacity constraints or competing uses of reserved transmission,
			 the purchasing public utility will provide the qualifying facility with written
			 notice of the possible constraint or reserved use and if applicable, the
			 purchasing public utility's decision to decline the qualifying facility's
			 proposed Point of Delivery. A purchasing public utility must act reasonably and
			 without undue discrimination in declining the qualifying facility's proposed
			 Point of Delivery. Nothing in this section prevents the purchasing public
			 utility from proposing an alternate Point of Delivery or requires the
			 purchasing public utility to undertake informational or other studies or to
			 change its standard study processes to seek information not reasonably in its
			 possession during the contracting process.
(2) If the qualifying facility proposes an
			 alternate Point of Delivery in response to a purchasing public utility's
			 written notice under section (1), the purchasing public utility will have 15
			 business days to complete its review of proposed alternate Point of Delivery
			 and provide the notification described in section (1) if applicable.
(3) Provided that the purchasing public
			 utility and the qualifying facility have agreed upon a Point of Delivery, the
			 standard power purchase agreement for an off-system qualifying facility may, at
			 the public utility's discretion, include a provision specifying that costs to
			 construct transmission-service related Network Upgrades of the purchasing
			 public utility's system necessary for transmission service for a qualifying
			 facility's output may be allocated to the qualifying facility by Commission
			 order after the process described in sections (4), (5), and (6) of this
			 rule.
(4) If the purchasing public
			 utility chooses to include a transmission-service-related Network Upgrade
			 cost-allocation provision in the standard power purchase agreement for an
			 off-system qualifying facility, the purchasing public utility must:
(a) Specify in the power purchase agreement
			 that the development period in the standard power purchase agreement does not
			 commence until after the processes in section (4) and, if applicable, sections
			 (5) and (6), are complete; and the scheduled commercial operation date, fixed
			 price term, and purchase term in the power purchase agreement shall each be
			 extended on a day-for-day basis until such processes are complete;
(b) No later than 15 business days after the
			 Effective Date of the standard power purchase agreement, submit an application
			 to the appropriate transmission provider requesting designation of the
			 qualifying facility as a network resource and requesting network transmission
			 service for the purpose of transmitting the power purchased from the qualifying
			 facility to the purchasing public utility's load;
(c) Request an effective date for
			 commencement of network transmission service for the qualifying facility that
			 is:
(A) 90 days prior to the scheduled
			 commercial operation date; or
(B)
			 As soon as practicable after the Effective Date of the executed standard power
			 purchase agreement if the scheduled commercial operation date is less than 90
			 days following the Effective Date.
(d) No later than five business days after
			 the purchasing public utility's receipt of a response to the application
			 submitted under subsection (b), inform the qualifying facility of the
			 transmission provider's response;
(e) No later than 15 business days after the
			 purchasing public utility's receipt of a response to the application submitted
			 under subsection (b), notify the qualifying facility in writing whether it has
			 determined that costs should be allocated to the qualifying facility and, if
			 so, what costs. Within 15 business days of receiving that cost allocation
			 determination, the qualifying facility must notify the purchasing public
			 utility of whether it objects to its cost allocation determination.
(f) If the purchasing public utility is
			 notified of an objection to its cost allocation determination under subsection
			 (e), it must initiate a proceeding with the Commission by filing its proposed
			 cost allocation determination within 15 business days.