(A) The utility does not offer any subsidies to support the capital cost of the installation of distributed generation facilities. The utility may revise this policy in the future without any retroactive payments to then existing facilities.
(B) For distributed generation facilities of 100 kW or less, the kWh supplied by the utility will be compared each month, during the normal billing cycle, with the kWh from the customer generation. If the electricity supplied by the utility exceeds the customer generation, the customer shall be billed for the net kWh by the utility according to the customer’s standard rate schedule. If the customer generation exceeds the electricity supplied by the utility, the customer shall be credited during the next billing period for the excess kWh generated, and this credit will be applied to reduce the kWh supplied in that month in addition to the customer generation supplied in that month.
(C) Once each calendar year, the utility shall issue a check or billing credit to the customer for any balance due to accumulating generation credits described in division (B) above.
(D) The standard rates for purchases from distributed generation facilities shall be based on the utility’s “avoided costs” for energy (kWh).
(E) These rates may be adjusted for the distributed generation’s effect on the utility’s system losses, administrative costs, dispatch ability, reliability, term of contract and other factors which impact the utility’s costs.
(F) Should the utility’s actual avoided costs as determined in division (D) of this section drop below a previously contracted rate, the utility retains the right to cancel the contract and offer to renegotiate or wheel the power from a distributed generation facility. Sixty days’ notice shall be provided to the owner of the distributed generation of use of this provision.
(G) The utility shall review annually its avoided costs as determined above and publish standard rates for purchase.
(H) Capacity payments shall be made in any case in which the distributed generation owner enters into a legally enforceable contract to provide accredited capacity. The payment for the capacity purchase from the distributed generation facility shall take into account the following items:
(1) Length of the contract term;
(2) Reasonable scheduling of maintenance;
(3) Willingness and ability of the customer to allow the utility to dispatch the customer’s generation;
(4) The utility’s ability to defer a purchase from another source or to defer construction of a facility or a portion of a facility;
(5) Sanctions imposed for noncompliance with these rules and any contract between the utility and the distributed generation owner; and
(6) Availability and reliability of the distributed generation facility.
(I) Any tax or payment in lieu thereof imposed on the utility by any lawful authority on the production, transmission, sale or purchase of energy or capacity and energy that would not occur due to a comparable non-generating customer shall be the responsibility of the distributed generation owner.
(1991 Code, § 14-4)