Exhibit C
TITLE 17 PUBLIC
UTILITIES AND UTILITY SERVICES
CHAPTER 9 ELECTRIC SERVICES
PART 570 GOVERNING
COGENERATION AND SMALL POWER PRODUCTION
17.9.570.1 ISSUING AGENCY:
[17.9.570.1
NMAC - Rp, NMPSC Rule 570, 3-30-07]
17.9.570.2 SCOPE:
A. 17.9.570 NMAC
applies to every electric utility (investor-owned, rural electric cooperative,
municipal, or an entity providing wholesale rates and service) operating within
the state of
B. It is intended
that the obligations of utilities provided for in 17.9.570 NMAC shall extend to
both production and consumption functions of qualifying facilities irrespective
of whether the production and consumption functions are singly or separately
owned. In situations where the
production and consumption functions are separately owned, the qualifying
facility or its operator may elect to enter into the contract with the utility.
C. All
interconnection contracts between utilities and qualifying facilities existing
at the time 17.9.570 NMAC is adopted shall automatically continue in full force
and effect with no change in rates for the purchase of power from the
qualifying facilities. Any changes made
to the existing interconnection contracts shall be made by mutual agreement and
shall conform to the provisions of 17.9.570 NMAC.
D. Variances which
have been granted by the commission from earlier versions of General Order No.
37 and under NMPSC Rule 570 shall continue in full force and effect unless the
commission specifically rescinds any such variance.
[17.9.570.2
NMAC - Rp, NMPSC Rule 570.2, 3-30-07]
17.9.570.3 STATUTORY AUTHORITY: NMSA 1978,
Sections 8-8-15, 62-6-4, 62-6-19, 62-6-24, and 62-8-2, and 16 USCA Section 2621.
[17.9.570.3 NMAC - N, 3-30-07]
17.9.570.4 DURATION:
Permanent.
[17.9.570.4
NMAC - N, 3-30-07]
17.9.570.5 EFFECTIVE DATE: _____ ___,
2008, unless a later date is cited at the end of a section. Applications filed prior to this effective
date shall be governed by the specific orders related to those applications.
[17.9.570.5
NMAC - Rp, NMPSC Rule 570, 3-30-07]
17.9.570.6 OBJECTIVE:
A. 17.9.570 NMAC is
to govern the purchase of power from and sale of power to qualifying facilities
by:
(1) enabling the development of a market for the power produced
by qualifying facilities,
(2) establishing guidelines for the calculation of utilities'
avoided costs, and
(3)
providing meaningful access to critical cost
information from utilities.
B. 17.9.570.14 NMAC is intended to simplify the metering
procedures for qualifying facilities up to and including 10kW and encourage the
use of small-scale customer-owned renewable or alternative energy resources in
recognition of the beneficial effects the development of such resources will
have on the environment of
C. 17.9.570 NMAC is
intended to implement regulations of the federal energy regulatory commission,
18 C.F.R. Section 292, promulgated pursuant to the Public Utility Regulatory
Policies Act of 1978, Pub. L. No. 95-617, 92 Stat. 3117 (codified as amended
starting at 16 U.S.C. Section 824) and the New Mexico Public Utility Act, NMSA
1978, Sections 62-3-1 et. seq., as
amended.
D. The standards and procedures for the interconnection of
generating facilities with rated capacities up to and including 10 MW are set
forth in 17.9.57X NMAC. The standards
and procedures for the interconnection of generating facilities with rated
capacities greater than 10 MW are set forth in 17.9.57Y NMAC.
[17.9.570.6
NMAC - Rp, NMPSC Rule 570.1, 3-30-07]
17.9.570.7 DEFINITIONS: When used in
17.9.570 NMAC unless otherwise specified the following definitions will apply:
A. avoided costs
means the incremental costs to the electric utility of electric energy or
capacity or both which, but for the purchase from the qualifying facility or
qualifying facilities, the utility would generate itself or purchase from
another source; avoided costs are the costs computed in accordance with
Subsections B and C of 17.9.570.11 NMAC;
B. backup power
means electric energy or capacity or both supplied by an electric utility
during an unscheduled outage of the qualifying facility to replace energy
ordinarily supplied by a qualifying facility's own generation equipment;
C. interconnection
costs means the reasonable costs of connection, switching, metering,
transmission, distribution, safety provisions, and administration incurred by
the electric utility which are directly related to the installation and
maintenance of the physical facilities necessary to permit interconnected
operations with a qualifying facility to the extent such costs are 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 power itself or purchased an equivalent amount of power
from other sources; interconnection costs do not include any costs included in
the calculation of avoided costs;
D. design capacity means the total AC nameplate power rating
of the Power Conversion Unit(s) at the Point of Common Coupling; E. interruptible power means power
supplied by an electric utility subject to interruption by the electric utility
under specified conditions;
F. maintenance power
means power supplied by an electric utility during scheduled outages of the
qualifying facility;
G. net metering means the difference between the energy
produced by the qualifying facility’s generation and the energy that would have
otherwise been supplied by the utility to the qualifying facility absent the
qualifying facility’s generation;
H. New Capacity Addition:
(1) New capacity addition means the capacity added to a
utility's resource mix after the effective date of 17.9.570 NMAC through normal
utility resource procurement activities which shall include but not necessarily
be limited to:
(a) construction of or participation in new generating
facilities;
(b) augmenting the capacity of or extending the life of existing
generating facilities through capital improvements; or
(c) entering into new contracts or exercising options in
existing contracts which will result in additional capacity.
(2) New
capacity addition does not include the following:
(a) renegotiation of existing contracts for anything other than
increasing capacity in the resource mix;
(b) renegotiation of existing full power requirements contract
between a distribution cooperative and its full power requirements supplier;
and
(c) seasonal uprating in capacity
achieved without any capital improvements to existing generating facilities;
K. power
conversion unit (PCU) means an inverter or AC generator, not including the
energy source;
L. qualifying
facility means a cogeneration facility or a small power production facility
which meets the criteria for qualification contained in 18 C.F.R. Section
292.203;
M. rate means any
price, rate, charge, or classification made, demanded, observed, or received
with respect to the sale by the utility of power or purchase of power from the
qualifying facility;
N. supplementary
power means power which is regularly used by a consumer, supplied by the
electric utility, in addition to that power which may be supplied by a
qualifying facility;
O. system emergency
means a condition on a utility's system which is likely to result in imminent
significant disruption of service to customers or is imminently likely to
endanger life or property;
P. tariff
means the document filed by a utility with the commission pursuant to 17.9.570
NMAC containing that utility's rules, rates, services and forms;
Q.Utility means a utility or public utility as defined in NMSA
62-3-3 (G) serving electric customers subject to the jurisdiction of the
Commission.
[17.9.570.7
NMAC - Rp, NMPSC Rule 570.3, 3-30-07]
17.9.570.8 [RESERVED]
17.9.570.9
Obligation to Purchase:
A.
Each utility
shall purchase power from a qualifying facility from the date of
interconnection at the utility's avoided cost.
An electric utility is obligated to purchase power from a qualifying
facility at the utility's avoided cost regardless of whether the electric
utility making such purchase is simultaneously selling power to the qualifying
facility.
B. The qualifying facility shall give
the Utility at least sixty (60) days written advance notice to
interconnect. Such notice shall specify
the date the qualifying facility will be ready for interconnection, the date
the qualifying facility will be able to commence testing, and the anticipated
date of operation after testing. The
qualifying facility shall pay the estimated costs of interconnection in full at
the time the notice to interconnect is given.
The Utility shall pay a qualifying facility for any energy produced
during testing of the qualifying facility at the appropriate energy rate
pursuant to 17.9.570.11(B) NMAC.
C. If the Utility determines that it
cannot interconnect the qualifying facility within the time set in the notice
to interconnect because adequate interconnection facilities are not available,
it shall, within fifteen (15) Business Days of receipt of the notice to
interconnect, notify the qualifying facility specifying the reasons it cannot
interconnect as requested by the qualifying facility and specifying the date
interconnection can be made. If the
Qualifying Facility objects to the date for interconnection specified by the
Utility, objects to the Utility's determination that adequate interconnection
facilities are not available, or disputes the good faith efforts of the Utility
to interconnect, the qualifying facility may initiate a proceeding before the
Commission pursuant to the complaint process of this 17.9.570 NMAC. If the Commission finds that the Utility's
position on the time for interconnection or unavailability of interconnection
facilities was not justified, the qualifying facility shall be deemed to have been
interconnected and the qualifying facility shall be deemed to have otherwise
complied with its contractual duties on the sixtieth (60th) day following the
notice to interconnect and payments by the Utility to the qualifying facility
shall commence at the appropriate power rate which shall be applied to the
amount of imputed or expected power as if the qualifying facility were
producing, provided that the qualifying facility’s power was available.
[17.9.570.9
NMAC - Rp, NMPSC Rule 570.4-10, 3-30-07]
17.9.570.10 METERING OPTIONS:
A. General.
(1) A qualifying
facility contracting to provide power may displace its own load. The utility may require appropriate
metering. Billing for any power from the
utility will be at the utility's approved rate applicable to the service
provided to the qualifying facility in accordance with Subsections A - G of
17.9.570.12 NMAC.
(2) The tariff
filed by each utility pursuant to Subsection H of 17.9.570.13 NMAC shall
include the offer to any qualifying facility that has not contracted to receive
capacity payments, the metering options in Subsections B, C and D of
17.9.570.10 NMAC.
(3) The options
of Subsections B, C and D of 17.9.570.10 NMAC may involve time-of-day metering
if the utility has in effect time-differentiated rates and metering for the
class of customer to which the qualifying facility belongs or if the parties
negotiate time-differentiated payments to the qualifying facility.
B. Load Displacement
Option. If the qualifying facility
wishes primarily to serve its own load, the utility shall agree to interconnect
with a single meter or meter set measuring flow from the utility to the
qualifying facility; billing for any power from the utility will be at the
utility's approved tariff applicable to the service provided to the qualifying
facility; there will be no additional customer charge and no payment by the
utility for any excess energy which might be generated by the qualifying
facility.
C. Net Metering
Option.
(1) The utility
shall install the metering necessary to determine the net energy delivered from
the qualifying facility to the utility or from the utility to the qualifying
facility for each time-of-use or single rate period, as applicable, during a
billing period; the net energy delivered to either the qualifying facility or
to the utility is the difference between the energy produced by the qualifying
facility’s generation and the energy that would have otherwise been supplied by
the utility to the qualifying facility absent the qualifying facility’s
generation.
(2) The net energy
delivered from the qualifying facility to the utility shall be purchased by the
utility at the utility's applicable time-of-use or single period energy rate as
described in Subsection B of 17.9.570.11 NMAC; the qualifying facility shall be
billed for the net energy delivered from the utility in accordance with the
tariffs that are applicable to the qualifying facility absent the qualifying
facility’s generation; the qualifying facility shall also be billed for all
demand and other charges in accordance with the applicable tariffs. At the end of the billing period the utility
shall net all charges owed to the utility by the qualifying facility and all
payments owed by the utility to the qualifying facility. If a net amount is owed to the qualifying
facility for the billing period, and is less than $50, the payment amount may
be carried over to the following billing period. If a net amount is owed to the qualifying
facility and is $50 or more, the utility shall make payment to the qualifying
facility prior to the end of the next billing period.
(3) If provision of the net metering option requires
metering equipment and related facilities that are more costly than would
otherwise be necessary absent the requirement for net metering, the qualifying
facility shall pay all incremental costs associated with installing the more
costly metering equipment and facilities.
An additional customer charge to cover the added costs of billing and
administration may be included in the tariff if supported with evidence of need
for such charge.
D. Separate Load Metering (simultaneous buy/sell) Option. The utility shall install the metering
necessary to determine separately 1) all the energy produced by the qualifying
facility’s generator and 2) all of the power consumed by the qualifying
facility’s loads; the utility shall purchase all energy produced by the
qualifying facility’s generator at the utility’s applicable time-of-use or
single period energy rate as described in Subsection B of 17.9.570.11 NMAC. The qualifying facility shall purchase all
power consumed at its normally applicable rate; an additional customer charge
to cover the added costs of billing and administration may be included in the
tariff if supported with evidence of need for such charge.
E. Metering Configurations. Metering configurations used to implement the
provisions of 17.9.570 NMAC shall be reasonable, nondiscriminatory, and shall
not discourage cogeneration or small power production.
[17.9.570.10
NMAC - Rp, NMPSC Rule 570.11-15, 3-30-07]
17.9.570.11 DETERMINATION OF RATES FOR PURCHASES
FROM QUALIFYING FACILITIES:
A. General. A utility shall pay a qualifying facility
avoided costs for power purchased from the qualifying facility. Avoided costs
are defined in Subsection A of 17.9.570.7 NMAC.
The energy rate represents avoided energy costs for the purposes of
17.9.570 NMAC. The energy rate and the
avoided capacity costs to be paid to the qualifying facility for the power it
sells to the utility shall be developed pursuant to Subsections B and C of 17.9.570.11
NMAC, respectively.
B. Energy Rate. The energy rate to be paid for the energy
supplied by the qualifying facility in any month shall be that respective
month's rate from the utility's current schedule on file with the commission. Each utility shall file with the commission
its schedule containing monthly energy rates that will be applicable to the
next twelve-month period. These monthly
energy rates shall be listed for each voltage level of interconnection and
shall be expressed in cents/kWh. Each
month's energy rate contained in the schedule shall be the average of the
economy energy purchases by the utility for the corresponding month of the
immediately preceding twelve-month period.
In the event a utility does not engage in economy energy purchases in
any given month, the energy rate to be included in its schedule for that month
shall be either: the monthly average of
hourly incremental energy costs including variable operation and maintenance
expenses for generating utilities, or the energy charge of the highest energy
cost contract as adjusted for appropriate retail fuel and purchase power pass
through for nongenerating utilities.
(1) In addition to
the schedule described above, those utilities with retail time-of-use rates on
file with the commission shall file schedules reflecting monthly energy rates
calculated for peak periods only and off-peak periods only which shall be
applied to qualifying facilities whose generation is limited to peak periods
only or off-peak periods only. Peak and
off-peak periods shall be as defined in the utility's retail tariffs on file
with the commission.
(2) Within sixty
(60) days of the effective date of 17.9.570 NMAC each electric utility subject
to the rule shall file with the commission the schedule containing rates to be
offered along with detailed supporting workpapers
showing the input data and calculations.
After the first submittal each utility shall update its filing within
thirty (30) days from the last day of its fiscal year.
(3) Variable operation
and maintenance rates used for the above computations shall be the basis for
requested variable operation and maintenance rates in the utility's future rate
cases.
(4) The schedules
containing energy rates developed pursuant to Subsections B and C of
17.9.570.11 NMAC shall be part of the tariff to be filed pursuant to Subsection
H of 17.9.570.13 NMAC. The energy rate
contained in the schedules shall include the savings attributable to the
avoidance of losses due to transmission, distribution, and transformation as
applicable for different voltage levels of interconnection. These transmission, distribution, and
transformation loss avoidance savings for different voltage levels of
interconnection shall be obtained from the utility's filing in the last
commission-decided rate case, and those figures shall be shown in the utility's
submittal.
C. Avoided Capacity
Costs.
(1) A qualifying
facility is entitled to receive payments for capacity when such capacity
purchase by the utility from the qualifying facility enables the utility to
avoid procurement of new capacity. The
avoided capacity costs of a utility will be determined by the commission on a
case-by-case basis based on the costs associated with a "new capacity
addition" for the utility.
(2) Within sixty
(60) days of the effective date of 17.9.570 NMAC each utility subject to the
provisions of 17.9.570 NMAC shall file a
schedule with the commission showing capacity, capital costs, and fixed
operation, maintenance, and demand charges, as applicable, of the existing
capacity resources by generating unit and by contract. After the first submittal each utility shall
update its filing within thirty (30) days from the last day of every fiscal
year. Utilities transferring their
purchase obligation pursuant to Subsection F of 17.9.570.13 NMAC need not file
this schedule. A utility which has
obtained a limited variance from the provisions of Subsection F shall note that
the variance obtained applies to qualifying facilities contracting to supply
energy only. Each utility subject to the
provisions of 17.9.570 NMAC shall notify the commission of any planned
"new capacity addition" with relevant details on timing, size,
capital costs, fixed operation and maintenance costs, property taxes,
insurance, energy costs, variable operation and maintenance costs, and capital
carrying costs if the "new capacity addition" is to be made by the
utility's own generation. If the
"new capacity addition" is made by a power sales agreement or other
such agreement, the utility shall give the relevant details of the transaction
such as demand and energy charges and term of the agreement. Notification to the commission shall be made
as soon as possible after the utility's decision but in no case later than one
(1) year prior to the date of a "new capacity addition". Failure to provide adequate notice may result
in the utility being unable to recover the costs of the "new capacity
addition" in rates even if such an addition meets all the other regulatory
criteria for recoverability.
(3) Based on the
information contained in the utility's notification and subject to a hearing
thereon, the commission will determine the avoided capacity costs for that
utility. The utility shall be obligated
to make payments for capacity only up to the amount of capacity associated with
the "new capacity addition."
D. Negotiations. Notwithstanding the provisions of 17.9.570
NMAC, a utility and qualifying facility may at the qualifying facility's option
negotiate rates for the power to be supplied by the qualifying facility. Such negotiated rates shall be filed with the
commission within thirty (30) days of the execution of the contract. The contract shall not contain any rate which
is higher than the utility's avoided costs as defined in 17.9.570 NMAC.
[17.9.570.11
NMAC - Rp, NMPSC Rule 570, 3-30-07]
17.9.570.12 OBLIGATION TO SELL:
A. Rates to be Offered. Utilities
are required to provide supplementary power, backup power, maintenance power,
and interruptible power to qualifying facilities irrespective of whether the
production and consumption functions of the qualifying facility are singly or
separately owned. The rates for
supplementary power, backup power, maintenance power, and interruptible power
shall be calculated as provided for in this Section 17.9.570.12 NMAC and
included in the tariff for each utility to be filed pursuant to 17.9.570
NMAC. Utilities may charge a facilities
fee for equipment dedicated to the customer pursuant to the utility's rate
schedules and rules governing the utility's practices for recovering such
costs. The computation of the facilities
fee shall take into account the costs of facilities already paid for by the
customer before installing a qualifying facility.
B. Supplementary
Power.
(1) Qualifying
facilities shall be entitled to supplementary power under the same retail rate
schedules that would be applicable to those retail customers having power
requirements equal to the supplementary power requirements of the qualifying
facility. Any ratchet enforced through
the "billing demand" provisions of such retail schedules shall also
apply.
(2) To determine
the amount of supplementary power required, supplementary power shall be
measured to each qualifying facility through appropriate metering devices which
are adequate to determine whether supplementary or backup power is being
utilized. The demand interval used shall
be the same as that contained in the applicable retail rate schedule.
C. Backup Power.
(1) Qualifying
facilities shall be entitled to backup power for forced outages under the same
retail rate which would be applicable absent its qualifying facility
generation. Rates for sale of backup
power shall not contain demand charges in time periods when demand charges are
not applicable to such retail rate schedule.
Rates for backup power shall not contain demand ratchets or power factor
penalties. If the utility can
demonstrate that a particular qualifying facility has caused either a demand
ratchet or a power factor penalty clause between the utility and its power
supplier(s) to be invoked because of the qualifying facility's operation, the
utility may petition the commission to allow the allocable charges resulting
from the demand ratchet or power f actor penalty which has been invoked to be
included in the rates for that particular qualifying facility.
(2) In the months
that backup power is not utilized by the qualifying facility the rates for
backup power may contain a monthly reservation fee which shall not exceed ten
percent (10%) of the monthly demand charge contained in the retail rate
schedule which would be applicable to the consumer absent its qualifying
facility generation. Such a reservation
fee shall not be charged while a qualifying facility is taking backup power or
while charges resulting from a power factor penalty and/or demand ratchet
have/has been imposed pursuant to Paragraph (1) of Subsection C of 17.9.570.12
NMAC.
D. Maintenance
Power.
(1) Maintenance
power shall be provided to qualifying facilities for periods of maintenance scheduled
in advance with the concurrence of' the utility. A qualifying facility shall schedule such
maintenance with the utility by giving the utility advance notice dependent on
the length of the outage as follows:
|
Length
of Outage* |
Advance
Notice* |
|
1
day |
5
days |
|
2
to 5 days |
30
days |
|
6
to 30 days |
90
days |
|
*All
days are calendar days. |
|
(2) Maintenance
power rates shall be the same as the retail rate which would be applicable to
the qualifying facility absent its qualifying facility generation. The maintenance power demand charge shall be
determined by multiplying the applicable retail demand charge by the ratio of
the number of weekdays in which the maintenance power was taken to the number
of weekdays in the month. No demand
charge shall apply for maintenance power taken during off-peak hours as defined
in the utility's retail tariffs. For
those utilities which do not have time-of-use rates, off-peak hours are defined
as 11:00 p.m. to 7:00 a.m. weekdays, twenty-four (24) hours per day on weekends
and holidays.
(3) Maintenance
power shall be available to qualifying facilities for a minimum period of
thirty (30) days per year scheduled outside of the system peak period of the
utility which is defined as the three-month period covering the peak month together
with the preceding and succeeding months.
E. Interruptible
Power. All utilities shall file rates
for interruptible power which shall be available to qualifying facilities. Rates for such interruptible power purchases
shall reflect the lower costs, if any, which the utility incurs in order to
provide interruptible power as opposed to what it would incur to provide firm
power.
F. Customer
Charges. The customer charges from a
utility for a qualifying facility shall be the same as the retail rate applicable
to the customers in the same rate class absent its qualifying facility
generation.
G. Exceptions. An electric utility shall not be required to
provide supplementary power, backup power, maintenance power, or interruptible
power to a qualifying facility if, after notice in the area served by the
electric utility and after opportunity for public comment, the electric utility
demonstrates and the commission finds that provision of such power would:
(1) impair the electric utility's ability to render adequate
service to its customers; or
(2) place an undue burden on the utility.
[17.9.570.12
NMAC - Rp, NMPSC Rule 570.20-28, 3-30-07]
17.9.570.13 PERIODS WHEN PURCHASES AND SALES ARE
NOT REQUIRED AND GENERAL PROVISIONS:
A. System
Emergencies.
(1) During any
system emergency a utility may discontinue on a nondiscriminatory basis:
(a) purchases from a qualifying facility if such purchases would
contribute to such emergency, and
b) sales to a qualifying facility provided that such
discontinuance is on a previously established nondiscriminatory basis.
(2) A qualifying
facility shall be required to provide power to a utility during a system
emergency only to the extent:
(a) provided by agreement between the qualifying facility and
the utility; or
(b) ordered pursuant to the provisions of the Federal Power Act,
16 U.S.C. Section 824a(c).
B. Operational
Circumstances. The utility may
discontinue purchases from the qualifying facility during any period in which,
due to operational circumstances, purchases from qualifying facilities will
result in costs greater than those which the utility would incur if it did not
make such purchases but instead generated an equivalent amount of energy
itself; a claim by an electric utility that such a period has occurred or will
occur is subject to verification by the commission; the utility shall maintain
and make available sufficient documentation to aid the commission with
verification proceedings.
C. Notification
Requirements. Any utility which
disconnects and thereby discontinues purchases or sales from a qualifying
facility for the reasons cited in Subsections A and B of 17.9.570.13 NMAC above
shall notify the qualifying facility or facilities prior to the system
emergency or operational circumstance if reasonably possible. If prior notice is not reasonably possible
the utility shall notify the qualifying facility by telephone or personal
contact within forty-eight (48) hours following the system emergency or
operational circumstance followed by written communication if requested by the
qualifying facility. Any notification
shall include the specific reason for the system emergency or operational
circumstance.
D. Penalty. Any utility which fails to comply with the
notification requirements in Subsection C of 17.9.570.13 NMAC or fails to
demonstrate the existence of a system emergency or operational circumstance
which warrants the discontinuance of purchases shall pay for the qualifying
facility's imputed or expected power at the applicable rate as if the system
emergency or operational circumstance had not occurred. The utility may also be subject to a penalty
under NMSA 1978, Section 62-12-4 as amended.
E. Wheeling of
Power. If the qualifying facility
agrees, an electric utility which would otherwise be obligated to purchase
power from the qualifying facility may transmit power to any other electric
utility. Any electric utility to which
power is transmitted shall purchase such power as if the qualifying facility
were supplying power directly to such electric utility. The rate for purchase by the electric utility
to which such power is transmitted shall be adjusted up or down to reflect line
losses pursuant to 18 C.F.R. Section 292.304(e)(4) and shall not include any charges
for transmission.
F. Distribution
Cooperatives.
(1) A distribution
cooperative having a full power requirements contract with its supplier has the
option of transferring the purchase obligation pursuant to Section 17.9.570.9
NMAC to its power supplier. The
qualifying facility will be paid the capacity and energy payments, as
applicable, by the supplier pursuant to Section 17.9.570.11. A distribution cooperative that does not
transfer the purchase obligation to its power supplier shall have the option
to:
(a) pay qualifying
facilities the energy and/or capacity charges including appropriate fuel and
purchase power pass-throughs it pays to its power
supplier, or
(b) pay the qualifying facility the energy and/or capacity
charges which shall be determined in accordance with Section 17.9.570.11 NMAC.
(2) The obligation
to interconnect and provide supplementary, backup, and maintenance power either
on a firm or on an interruptible basis shall remain with the distribution
cooperative.
(3) Any municipal
electric utility that does not have generating capacity but is subject to the
jurisdiction of the commission shall be considered a distribution cooperative
for the purposes of 17.9.570 NMAC.
G. Requirements to
File Electric Utility System Data: not
later than April 1 of each year each utility shall submit to the commission a
report covering the previous calendar year which shall at a minimum provide:
(1) the name and
address of each qualifying facility with which it is interconnected, with which
it has a contract to interconnect, or with which it has concluded a wheeling
agreement;
(2) annual
purchases in kW and kWh from each qualifying facility with which it is
interconnected and the amount of electricity wheeled on behalf of each
qualifying facility;
(3) the price charged for any power wheeled on behalf of each
qualifying facility;
(4) the methodology and assumptions used in the calculation of
wheeling rates;
(5) amounts actually paid to each qualifying facility; and
(6) a list of all applications for interconnection which the
utility has rejected or otherwise failed to approve together with the reasons
therefor.
H. Filing of Tariff.
(1) Within sixty (60) days of the adoption of
this rule, each utility shall develop and file any changes to its tariffs on
file with the commission needed to comply with the requirements set forth
herein; such changes shall comply with all tariff filing requirements of the
commission; such tariffs shall conform to the requirements of 17.1.210 NMAC,
and shall become effective thirty (30) days after the filing thereof unless
suspended by the commission pursuant to NMSA 1978, Section 62-8-7 as amended,
or unless ordered effective at an earlier date by the commission.
(2) Within sixty (60) days of the adoption of the
amendments to this rule, each utility shall develop and file tariffs for
metering and billing consistent with this rule for generating facilities with
rated capacities up to and including 10 kW; such tariffs shall comply with all
tariff filing requirements of the commission; such tariffs shall conform to the
requirements 17.1.210 NMAC, and shall become effective thirty (30) days after
the filing thereof unless suspended by the commission pursuant to NMSA 1978,
Section 62-8-7 as amended, or unless ordered effective at an earlier date by
the commission.
I. Complaints and
Investigations. The procedures set forth
in NMSA 1978, Sections 62-8-7 and 62-10-1 as amended, and the complaint
provisions of 1.2.2
NMAC shall be applicable for the resolution of complaints and investigations
arising out of the implementation and conduct of 17.9.570 NMAC.
J. Severability. If any part of 17.9.570 NMAC or any
application thereof is held invalid, the remainder or the application thereof
to other situations or persons shall not be affected.
K. Amendment. The adoption of 17.9.570 NMAC shall in no way
preclude the commission, after notice and hearing, from altering or amending
any provision hereof or from making any modification with respect to its
application deemed necessary.
L. Exemption or
Variance.
(1) Any interested
person may file an application for an exemption or a variance from the
requirements of 17.9.570 NMAC. Such
application shall:
(a) describe the situation which necessitates the exemption or
variance;
(b) set out the effect of complying with 17.9.570
NMAC on the utility and its customers if the exemption or variance is not
granted;
(c) identify the section(s) of 17.9.570 NMAC for which the
exemption or variance is requested;
(d) define the result which the request will have if granted;
(e) state how the exemption or variance will promote the
achievement of the purposes of 17.9.570
NMAC; and
(f)
state why no other
reasonable alternative is available.
(2) If the
commission determines that the exemption or variance is consistent with the
purposes of the rule as defined herein, the exemption or variance may be
granted. The commission may at its
option require an informal conference or formal evidentiary hearing prior to
the granting of the variance.
M. Motion for Stay
Pending Amendment, Exemption, or Variance.
An application for an amendment, exemption, or a variance may include a
motion that the commission stay the application of the affected portion of
17.9.570 NMAC for the transaction specified in the motion.
[17.9.570.13
NMAC - Rp, NMPSC Rule 570.28-40, 3-30-07]
17.9.570.14 NET
METERING OF CUSTOMER-SITED QUALIFYING FACILITIES WITH A DESIGN CAPACITY UP TO
AND INCLUDING 10KW
A. Relationship to Other Commission Rules. The standards and procedures for the
interconnection of qualifying facilities subject to this Section 17.9.570.14
NMAC are set forth in 17.9.57X NMAC.
B. Use of a single meter. When the customer is billed under a
rate structure that does not include time-of-use energy pricing, a single
energy meter shall be used to implement net metering of a Qualifying Facility
unless an alternate metering arrangement is agreed to by the customer and
utility. If either the utility or the customer requests an alternate form of
metering or additional metering that is not required to accomplish net metering
or is for the convenience of the party, the party requesting the change in
metering shall pay for the alternate or additional metering arrangement. If the
customer elects to take electric service under any rate structure, including
time-of-use, that requires the use of metering apparatus or a metering
arrangement that is more costly than would otherwise be necessary absent the
requirement for net metering, the customer shall be required to pay the
additional incremental cost of the required metering equipment. Within ten (10)
days of receiving notification from the customer of the intent to interconnect,
the utility will notify the customer of any metering costs. Charges for special
metering costs shall be paid by the customer, or arrangements for payment
agreed to between the customer and utility, prior to the utility authorizing
interconnected operation.
C. Net Metering Calculation. The utility shall calculate each customer’s
bill for the billing period using net metering and with the following
conditions:
(1) Customers shall be billed for service in
accordance with the rate structure and monthly charges that the customer would
be assigned if the customer had not interconnected a qualifying facility. Net
energy produced or consumed on a monthly basis shall be measured in accordance
with standard metering practices.
(2) If electricity supplied by the utility
exceeds electricity generated by the customer during a billing period, the
customer shall be billed for the net energy supplied by the utility under the
applicable rates.
(3) If electricity generated by the customer
exceeds the electricity supplied by the grid during a billing period, the
utility shall credit the customer on the next bill for the excess
kilowatt-hours generated, by:
a. crediting or paying the customer for
the net energy supplied to the utility at the utility's energy rate pursuant to
this 17.9.570 NMAC; or
b. crediting the
customer for the net kilowatt-hours of energy supplied to the utility. Unused
credits shall be carried forward from month to month; provided that if a
utility opts to credit customers and the customer leaves the system, customer's
unused credits for excess kilowatt-hours generated shall be paid to the
customer at the utility's energy rate pursuant to this 17.9.570 NMAC.
17.9.570.15 STANDARD METERING AND BILLING AGREEMENT
FOR QUALIFYING FACILITIES WITH A DESIGN CAPACITY OF GREATER THAN 10 KW AND LESS
THAN OR EQUAL TO 10 MW:
This AGREEMENT is made as of
the_____ day of _____, 20____, by and between _________ ("Customer")
and____________ (“Utility”) also referred to collectively as
"parties" and singularly as "party." Customer receives
electric service from Utility at __________________ [location/address] under Account
__________________. Customer has located at these premises a Qualifying
Facility ("QF") as defined by 17.9.570 NMAC, having an installed
capacity of greater than 10 kilowatts and up to and including 10 megawatts,
which is interconnected to Utility pursuant to an Interconnection Agreement,
attached as Exhibit (1). For good and valuable consideration, Customer desires
to sell or provide electricity to Utility from the QF and Utility desires to
purchase or accept all the energy produced by the QF that is not consumed by
Customer, and the parties agree to the following terms and conditions:
A. DEFINITIONS. Whenever used in the agreement, the following words and phrases shall have the
following meanings:
(1) agreement shall
mean this agreement and all schedules, tariffs, attachments, exhibits, and
appendices attached hereto and incorporated herein by reference;
(2) interconnection facilities shall mean
all machinery, equipment, and fixtures required to be installed solely to
interconnect and deliver power from the QF to the utility's system, including,
but not limited to, connection, transformation, switching, metering, relaying,
line and safety equipment and shall include all necessary additions to, and
reinforcements of, the utility's system;
(3) prudent electrical practices shall mean
those practices, methods and equipment, as changed from time to time, that are
commonly used in prudent electrical engineering and operations to operate
electric equipment lawfully, and with safety, dependability, efficiency and
economy;
(4) qualifying facility (QF) means a
cogeneration facility or a small power production facility which meets the
criteria for qualification contained in 18 C.F.R. Section 292.203;
(5) point of delivery means the
geographical and physical location described on exhibit B hereto; such exhibit
depicts the location of the QF's side of interconnection facilities where
Customer is to [sell and] deliver electric energy pursuant to this agreement or
pursuant to a separate wheeling agreement;
(6) termination means termination of this
agreement and the rights and obligations of the parties under this agreement,
except as otherwise provided for in this agreement;
(7) suspension means suspension of the
obligation of the Utility to interconnect with and purchase electricity from the
Customer.
B. TERM OF AGREEMENT. The original term of this agreement shall be
for a period of five (5) years from
the date of the execution of this agreement and shall continue thereafter from
year to year until terminated as herein provided.
(1) Termination by
Customer. Termination of this agreement
during and after the original term requires written notice to Utility that this
agreement will terminate in ninety (90) days.
Customer may terminate this agreement without showing good cause.
(2) Termination by
Utility. Termination of this agreement
during and after the original term requires written notice to Customer that
this agreement will terminate in ninety (90) days, unless otherwise provided. Utility, in the exercise of this right, must
show good cause for the termination.
(3) At any time
the QF is sold, leased, assigned, or otherwise transferred, the seller or lessor of the QF shall notify Utility and this agreement
may be terminated at Utility's option, for good cause, regardless of whether such
transfer occurs during the original term or any renewal thereof. Such termination may be made with five (5)
days written notice by Utility.
(4) Should the
Customer default in the performance of any of the Customer's obligations
hereunder, Utility may suspend interconnection, purchases, or both and if the
default continues for more than 90 days after written notice by Utility to
Customer, Utility may terminate this agreement.
Termination or suspension shall not affect the obligation of Utility to
pay for energy already delivered or of Customer to reimburse interconnection
costs, or any cost then accrued. Upon
termination, all amounts owed to the Utility will become payable immediately.
C. METER INSTALLATION, TESTING AND ACCESS TO
PREMISES. Customer will be metered
by a meter or meters as determined by Utility to which Utility is granted
reasonable access.
(1) Customer
shall supply, at its own expense, a suitable location for all meters and
associated equipment. Customer shall
provide a clearly understandable sketch or one-line diagram showing the
Qualifying Facility, the interconnection equipment, breaker panel(s),
disconnect switches and metering, to be attached to this Agreement. Such location must conform to Utility’s meter
location policy. The following metering
options will be offered by Utility: _________________. Customer shall provide and install a meter
socket and any related interconnection equipment per Utility's requirements.
(2) Customer
shall deliver the as-available energy to Utility at Utility's meter.
(3) Utility
shall furnish and install a standard kilowatt-hour meter. Utility may install, at its option and
expense, magnetic tape recorders in order to obtain load research
information. Utility may meter the
customer's usage using two meters for measurement of energy flows in each
direction at the point of delivery.
(4) If
either Utility or Customer requests an alternate form of metering or additional
metering that is not required to accomplish net metering or is for the convenience
of the party, the party requesting the change in metering shall pay for the
alternate or additional metering arrangement.
If Customer elects to take electric service under any rate structure,
including time-of-use, that requires the use of metering apparatus or a
metering arrangement that is more costly than would otherwise be necessary
absent the requirement for net metering, Customer shall be required to pay the
additional incremental cost of the required metering equipment. Within ten (10) days of receiving
notification from Customer of the intent to interconnect, Utility will notify
the customer of any metering costs.
Charges for special metering costs shall be paid by Customer, or
arrangements for payment agreed to between Customer and Utility, prior to
Utility authorizing interconnected operation.
(5) All meter
standards and testing shall be in compliance with Utility’s rules and
regulations as approved by the NMPRC.
The metering configuration shall be one of Utility’s standard metering
configurations as set out in Subsection D of 17.9.570.15 NMAC and mutually
agreeable to the parties or any other metering configuration mutually agreeable
to the parties. The agreed upon
configuration is shown on Exhibit (2).
[Service by the distribution cooperative to Customer shall be in
accordance with the distribution cooperative's articles, bylaws and regulations
and in accordance with its tariffs filed with the NMPRC, the terms and
conditions of which shall be unaffected by this agreement]. If the interconnection facilities have been
modified pursuant to the Interconnection Agreement, Customer shall permit
Utility, at any time, to install or modify any equipment, facility or apparatus
necessary to protect the safety of its employees or to assure the accuracy of
its metering equipment, the cost of which shall be borne by Customer. Utility shall have the right to disconnect
the QF if it has been modified without Utility’s authorization.
(6) Utility
may enter Customer's premises to inspect at all reasonable hours Customer's
protective devices and read or test meter; and pursuant to the Interconnection
Agreement to disconnect, without notice, the interconnection facilities if
Utility reasonably believes a hazardous condition exists and such immediate
action is necessary to protect persons, or Utility's facilities, or property of
others from damage or interference caused by Customer's facilities, or lack of
properly operating protective devices.
D. ENERGY PURCHASE PRICE AND METERING
OPTION. All electric energy delivered and service
rendered hereunder shall be delivered and rendered in accordance with the
applicable rate schedules and tariffs.
Customer has selected the __________ metering option defined in this
Section. It is understood and agreed,
however, that said rates are expressly subject to change by any regulatory body
having jurisdiction over the subject matter of this agreement. If a new rate schedule or tariff is approved
by the proper regulatory body, the new rate schedule or tariff shall be applicable
to this agreement upon the effective date of such rate schedule or tariff.
(1) Load
Displacement Option: Utility will
interconnect with the customer using a single meter which will be ratcheted and
would only measure the flow of energy to the Customer. Billing to Customer will be at Utility’s
approved tariff rate applicable to the service provided to the QF. There will be no additional customer charge
and no payment by Utility for any excess power which might be generated by the
QF.
(2) Net Metering
Option.
(a) Utility shall
install the metering necessary to determine the net energy delivered from
Customer to Utility or the net energy delivered from Utility to Customer for
each time-of-use or single rate period, as applicable, during a billing period. The net energy delivered to either the QF or
to the utility is the difference between the energy produced by the QF
generation and the energy that would have otherwise been supplied by the
utility to the QF absent the QF generation.
(b) The net energy
delivered from Customer to Utility shall be purchased by Utility at Utility’s
applicable time-of-use or single period energy rate, as described in Subsection
B of 17.9.570.11 NMAC, and filed with the NMPRC. Customer shall be billed for all net energy delivered
from Utility in accordance with the tariff that is applicable to Customer
absent the QF generation. An additional
customer charge to cover the added costs of billing and administration may be
included in the tariff. At the end of
the billing period, Utility shall net all charges owed to Utility by Customer
and all payments owed by Utility to Customer.
If a net amount is owed to Customer for the billing period, and is less
than $50, the payment amount may be carried over to the following billing
period. If a net amount is owed to
Customer and is $50 or more, Utility shall make payment to Customer prior to
the end of the next billing period.
(c) If provision
of the net metering option requires metering equipment and related facilities
that are more costly than would otherwise be necessary absent the requirement
for net metering, Customer shall pay all incremental costs associated with
installing the more costly metering equipment and facilities.
(3) Simultaneous
Buy/Sell Option.
(a) Utility will
install the metering necessary to determine separately 1) all of the energy
produced by Customer’s generator and 2) all of the power consumed by Customer’s
loads. Utility will purchase all energy
produced at Utility’s applicable time-of-use or single period energy rate, as
described in Subsection B of 17.9.570.11 NMAC, for such purchases, and as filed
with and approved by the NMPRC. Customer
shall purchase all power consumed at its normally applicable tariff rate. An additional customer charge to cover the
added costs of billing and administration may be included.
(b) If provision
of the simultaneous buy/sell option requires metering equipment and related
facilities that are more costly than would otherwise be necessary absent the
requirement for simultaneous buy/sell metering, Customer shall pay all
incremental costs associated with installing the more costly metering equipment
and facilities.
E. INTERRUPTION OR REDUCTION OF DELIVERIES.
(1) Utility shall
not be obligated to accept or pay for and may require Customer to interrupt or
reduce deliveries of available energy under the following circumstances:
(a) It is
necessary in order to construct, install, maintain, repair, replace, remove,
investigate, or inspect any of its equipment or part of its system or if it
reasonably determines that curtailment, interruption, or reduction is necessary
because of emergencies, forced outages, force majeure, or compliance with
prudent electrical practices. Whenever
possible, Utility shall give Customer reasonable notice of the possibility that
interruption or reduction of deliveries may be required.
(b) There is
evidence that Customer's QF is interfering with service to other customers or
interfering with the operation of Utility’s equipment. Customer may be reconnected by Utility when
Customer makes the necessary changes to comply with the standards required by
this agreement.
(c) It
is necessary to assure safety of Utility’s personnel. Notwithstanding any other provision of this
agreement, if at any time Utility reasonably determines that the facility may
endanger Utility personnel or other persons or property or the continued
operation of Customer's facility may endanger the integrity or safety of
Utility's electric system, Utility shall have the right to disconnect and lock
out Customer's facility from Utility's electric system. Customer's facility shall remain disconnected
until such time as Utility is reasonably satisfied that the conditions
referenced in this Section have been corrected.
(d) There
is a failure of Customer to adhere to this agreement.
(e) If
suspension of service is otherwise necessary and allowed under Utility’s rules
and regulations as approved by the NMPRC.
(2) Customer shall cooperate with load management
plans and techniques as ordered or approved by the NMPRC, and the service to be
furnished by Utility hereunder may be modified as required to conform thereto.
G. FORCE MAJEURE. Force
majeure shall mean any cause beyond the control of the party affected,
including, but not limited to, failure of or threat of failure of facilities,
flood, earthquake, tornado, storm, fire, lightning, epidemic, war, riot, civil
disturbance or disobedience, [labor dispute,] labor or material shortage,
sabotage, restraint by court order or public authority, and action or nonaction. by or failure to obtain the necessary
authorizations or approvals from any governmental agency or authority, which by
exercise of due diligence such party could not reasonably have been expected to
avoid and which by exercise of due diligence, it shall be unable to
overcome. If either party, because of
force majeure, is rendered wholly or partly unable to perform its obligations
under this agreement, except for the obligation to make payments of money, that
party shall be excused from whatever performance is affected by the force
majeure to the extent so affected, provided that:
(1) the
nonperforming party, within a reasonable time after the occurrence of the force
majeure, gives the other party written notice describing the particulars of the
occurrence;
(2) the suspension
of performance is of no greater scope and of no longer duration than is
required by the force majeure; and
(3) the
nonperforming party uses its best efforts to remedy its inability to
perform. [This subparagraph shall not
require the settlement of any strike, walkout, lockout or other labor dispute
on terms which, in the sole judgment of the party involved in the dispute, are
contrary to its interest. It is
understood and agreed that the settlement of strikes, walkouts, lockouts or
other labor disputes shall be entirely within the discretion of the party
involved in the disputes.]
H. INDEMNITY.
Each party shall indemnify the other from liability, loss, costs,
and expenses on account of death or injury to persons or damage or destruction
of property occasioned by the negligence of the indemnifying party or its
agents, officers, employees, contractors, licensees or invitees, or any
combination thereof, except to the extent that such death, injury, damage, or
destruction resulted from the negligence of the other party or its agents,
officers, employees, contractors, licensees or invitees, or any combination
thereof. Provided, however, that:
(1) each party
shall be solely responsible for the claims or any payments to any employee or
agent for injuries occurring in connection with their employment or arising out
of any Workmen's Compensation Law or Occupational Disease Disablement Law;
(2) Utility shall
not be liable for any loss of earnings, revenues, indirect or consequential
damages or injury which may occur to Customer as a result of interruption or
partial interruption (single-phasing) in delivery of service hereunder to
Customer or by failure to receive service from Customer by reason of any cause
whatsoever, including negligence; and
(3) the
provisions of this subsection on indemnification shall not be construed so as
to relieve any insurer of its obligation to pay any insurance proceeds in
accordance with the terms and conditions of any valid insurance policy.
(4) The
indemnifying party shall pay all costs and expenses incurred by the other party
in enforcing the indemnity under this agreement including reasonable attorney
fees.
I. DEDICATION. An undertaking by one party to another party
under any provision of this agreement shall not constitute the dedication of
such party's system or any portion thereof to the public or to the other party
and any such undertaking shall cease upon termination of the party's
obligations herein.
J. STATUS OF CUSTOMER. In performing under this agreement, Customer
shall operate as or have the status of an independent contractor and shall not
act as or be an agent, servant, or employee of Utility.
K. AMENDMENT, MODIFICATIONS OR WAIVER. Any amendments or modifications to this
agreement shall be in writing and agreed to by both parties. The failure of any party at any time or times
to require performance of any provision hereof shall in no manner affect the
right at a later time to enforce the same.
No waiver by any party of the breach of any term or covenant contained
in this agreement, whether by conduct or otherwise, shall be deemed to be
construed as a further or continuing waiver of any such breach or a waiver of
the breach of any other term or covenant unless such waiver is in writing.
L. ASSIGNMENT. This agreement and all provisions hereof
shall inure to and be binding upon the respective parties hereto, their
personal representatives, heirs, successors, and assigns. Customer shall not assign this agreement or
any part hereof without the prior written consent of Utility, otherwise this
agreement may be terminated pursuant to Paragraph (3) of Subsection B of
17.9.570.15 NMAC.
M. NOTICES. Any payments, notices, demands or requests
required or authorized by this agreement shall be deemed properly given if
personally delivered or mailed postage prepaid to:
Customer: __________________________________________
New Mexico________(zip code)
Utility______________________.
The
designation of the persons to be notified, or the address thereof, may be
changed by notice in writing by one party to the other. Routine notices and notices during system
emergency or operational circumstances may be made in person or by telephone. Customer’s notices to Utility pursuant to
this Agreement shall refer to the Customer's electric service account number
set forth in this Agreement.
N. MISCELLANEOUS. This agreement and any amendments thereto, including any tariffs made a part hereof, shall at all times be subject to such changes or modifications as shall be ordered from time to time by any regulatory body