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Last modified
1/26/2010 4:35:02 PM
Creation date
11/3/2008 3:01:57 PM
Metadata
Fields
Template:
Water Supply Protection
File Number
8040.100
Description
Section D General Studies - Power
State
CO
Basin
Statewide
Date
2/1/1982
Author
CWCB & Office of Energy Conservation
Title
Guide to Negotiations between Small Power Producers and Utilities
Water Supply Pro - Doc Type
Report/Study
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QF.Rights <br />Interconnection with the utility grid system <br />Guaranteed :market at a reasonable price <br />. .Alternative purchase -and sale conditions. <br />Supplementary power for QF needs <br />Access- to .certain utility data <br />Standard rates for small QFs <br />Freedom from-some regulation <br />Freedom to negotiate <br />" No right to subsidies <br />Utility Rights <br />Recovery of interconnection costs <br />Set standards for performance and safety <br />Inspection and maintenance guarantees' <br />Management of system emergencies <br />QF Rights Onder PURPA <br />Interconnection <br />Qualifying facilities are guaranteed the right to intercon- <br />nect with adjacent utilities to allow purchase from. and .sale to <br />'the utility. The utility may recover all costs of interconnec~- <br />tion . Eram the QF .which -are attributable to the QF's desire to, <br />sell power to the. utility. <br />Guaranteed market at a reasonable price <br />The .utility is required to .purchase any reasonable. pawex~ <br />offered to it by a QF. Only in rare cases may .the utility not . <br />purchase QF power. The price to be paid by the utility to the QF <br />far its power is to be determined by .the costs the utility "avoic~a <br />by purchasing.QF power.. If the utility did not.:purchase: pov~r ~, <br />from the QF, it would have had to produce the power itself o <br />contract for power from another utility. By purchasing fry tre <br />QF, the utility avoids the cost of ger-erating or purchasing- ..else- <br />where. The Costs which the utility can avoid by purchasing from <br />the QF instead of relying upon. alternative sources is; the basis <br />for the rates to be paid to the QF, Rates. paid to QFs must ba <br />equal to the utility's."avoided costs." <br />The .avoided cost concept is deceptively simple. Avoided <br />costs are clearly affected by the kind of power the QF can deliv- <br />er, and whether the utility .can count upon power. being available <br />2 <br />
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