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Interconnection and safety <br />Wheeling <br />Arbitration and enforcement <br />Insurance `and` indemni f icat ian- <br />Cdntracts--Are fey Necessary,'?• <br />FERC rules, and those. adopted by the PUC, do not require <br />contracts between QFs -and. utilities. Generally, there are twa <br />circumstances when pFs may consider aperatirig without a contract:: <br />1. When QF capacity is 100 kW or less. <br />2. .When the OF wishes to -sell power "as available." <br />When OF capacity is 100 kW or less, standard-rates appl.y.1. <br />Utilities are required to file standard rates which are based <br />upon their avoided costs and which can reflect. the average supply <br />J characteristics of the kind of QFs that the -rate applies to <br />(e.g., wind. machines, hydro, cogeneration, etc.).2 Since..-each <br />utility is required to buy all power offered to it by a QF and <br />since standard rates apply, no contract need be .made between -the <br />two parties. <br />Nothing preclude QFs with. capacity, under 1D0 kW from nego- <br />tiating contracts specifying-rates that differ from the standard <br />8 <br />