| (1) |
Purchasing utilities shall offer to purchase power from qualifying power producers. |
Terms Used In Utah Code 54-12-2
- Avoided costs: means the incremental costs to an electrical corporation of electric energy or capacity or both that, due to the purchase of electric energy or capacity or both from small power production or cogeneration facilities, the electrical corporation would not have to generate itself or purchase from another electrical corporation. See Utah Code 54-2-1
- Commission: means the Public Service Commission. See Utah Code 54-2-1
- Devise: To gift property by will.
- Purchasing utility: means any electrical corporation that is required to purchase electricity from small power production or cogeneration facilities pursuant to the Public Utility Regulatory Policies Act, 16 U. See Utah Code 54-2-1
- Qualifying power producer: means a corporation, cooperative association, or person, or the lessee, trustee, and receiver of the corporation, cooperative association, or person, who owns, controls, operates, or manages any qualifying power production facility or cogeneration facility. See Utah Code 54-2-1
| (2) |
The commission shall establish reasonable rates, terms, and conditions for the purchase or sale of electricity or electrical generating capacity, or both, between a purchasing utility and a qualifying power producer. In establishing these rates, terms, and conditions, the commission shall either establish a procedure under which qualifying power producers offer competitive bids for the sale of power to purchasing utilities or devise an alternative method which considers the purchasing utility’s avoided costs. The capacity component of avoided costs shall reflect the purchasing utility’s long-term deferral or cancellation of generating units which may result from the purchase of power from qualifying power producers. |
| (3) |
Purchasing utilities and qualifying power producers may agree to rates, terms, or conditions for the sale of electricity or electrical capacity which differ from the rates, terms, and conditions adopted by the commission under Subsection (2). |
| (4) |
The commission may adopt further rules which encourage the development of small power production and cogeneration facilities. |
Amended by Chapter 374, 2008 General Session
