Texas Register, Volume 10, 63, Pages 3197-3236, August 23, 1985 Page: 3,208
3197-3236 p. ; 28 cm.View a full description of this periodical.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
Rhonda Colbert Ryan, secretary of the
commission, has determined that for the
first five-year period the section will be
In effect there will be no fiscal Implica-
tions for state or local government or
small businesses as a result of enforcing
or administering the section.
Ms. Ryan also has determined that for
each year of the first five years the sec-
tion is in effect the public benefit anticl-
pated as a result of enforcing the section
Is further fine tuning of rules associated
with cogeneration so that qualifying fa-
cilities and electric utilities may suc-
cessfully negotiate contracts and hope-
fully delay or lessen the need for addi-
tional utility plants, with savings to the
ratepayers. The anticipated economic
cost to Individuals who are required to
comply with the section as proposed can-
not be estimated at this time.
Comments on the proposal may be sub-
mitted to Rhonda Colbert Ryan, Secretary
of the Commission, 7800 Shoal Creek
Boulevard, Suite 450N, Austin, Texas
78757.
The amendments are proposed under
Texas Civil Statutes, Article 1446c, 16,
which provide the Public Utility Commis-
sion of Texas with the authority to make
and enforce rules reasonably required in
the exercise of its powers and jurisdic-
tion, and in administering the provisions
of this Act.
23.66. Arrangements between Qualifying
Facilities and Electric Utilities.
(a) Definitions. The following words
and terms, when used in this section, shall
have the following meanings, unless the
context indicates otherwise:
(1)[(17)] Avoidable generating
unit-A power plant or set of power plants
in a utility's commission-approved genera-
tion expansion plan that may be displaced
or deferred due to firm capacity provided
to the utility by qualifying facilities.
(2)[(1)] Avoided costs-The in-
cremental costs to an electric utility of elec-
tric energy or capacity or both, which, but
for the purchase from the qualifying facili-
ty or qualifying facilities, such utility would
generate itself or purchase from another
source.
(3)[(2)] Back-up power-Electric
energy or capacity supplied by an electric
utility to replace energy or capacity or-
dinarily generated by a qualifying facility's
own generation equipment during an
unscheduled outage of the qualifying
facility.
(4)[(16)] Committed unit basis
(CUB) methodology-A means of identify-
ing avoided capacity costs. Under the CUB
methodology, the expected revenue require-
ment stream associated with an avoidable
generating unit, or set of avoidable units,
is defined. The expected net present value
of this cash flow stream represents an up-
ner bound to the net present value of thepayment stream that shall be offered to a
qualifying facility in exchange for capacity
with characteristics identical to the avoid-
ed unit(s).
(5)[(3)] Cost of decremental
energy-The cost savings to a utility asso-
ciated with the utihty's ability to back-down
some of its units or to avoid firing units,
or to avoid purchases of power from anoth-
er utility because of purchases of power
from qualifying facilities.
(6)[(4)] Firm power-From a qual-
ifying facility, power or power-producing
capacity that is available to the electric utili-
ty pursuant to a legally enforceable obliga-
tion for scheduled availability over a speci-
fied term.
(7) Host utility-The utility with
which the qualifying facility is directly
interconnected.
(8)[(5)] Interconnection costs-
The reasonable costs of connection, switch-
ing, metering, transmission, distribution,
safety provisions, engineering, and admin-
istrative costs incurred by the electric utili-
ty directly related to the installation of the
physical facilities necessary to permit inter-
connected operations with a qualifying fa-
cility, to the extent such costs are in excess
of the corresponding costs that the electric
utility would have incurred if it had not en-
gaged in interconnected operations, but in-
stead generated an equivalent amount of
electric energy itself or purchased an
equivalent amount of electric energy or
capacity from other sources. Interconnec-
tion costs do not include any costs includ-
ed in the calculation of avoided costs.
(9)[(6)] Interruptible power-Elec-
tric energy or capacity supplied by an elec-
tric utility subject to interruption by the
electric utility under specified conditions.
(10)[(7) Maintenance power-
Electric energy or capacity supplied by an
electric utility during scheduled outages of
the qualifying facility.
(11)1(8)] Nonfirm power from a
qualifying facility-Power provided under
an arrangement that does not guarantee
scheduled availability, but instead provides
for delivery as available.
(12) Parallel operation-A mode
of operation which enables a qualifying
facility of a design capacity of 100 KW or
less to export automatically any electric
capacity which is not consumed by the qual-
ifying facility or the user of the qualifying
facility's output. Parallel operation results
in three possible states of operation at any
point in time.
(A) The qualifying facility is
generating an amount of capacity that is less
than the customer's load. The customer is
therefore a net consumer.
(B) The qualifying facility is
generating an amount of capacity that is
more than the customer's load. The cus-
tomer is therefore a net producer.
(C) The qualifying facility is
generating an amount of capacity that isequal to the customer's load. The customer
is therefore neither a net producer nor a net
consumer.
(13)[(9)] Purchase-The purchase
of electric energy or capacity or both from
a qualifying facility by an electric utility.
(14) Purchasing utility-The utill.
ty which is purchasing a qualifying facdll-
ty's capacity and/or energy.
(15)[(10)] Qualifying facility-A
cogeneration facility or a small power pro-
duction facility which is a qualifying facili-
ty under Subpart B of the Federal Energy
Regulatory Commission's regulations under
the Public Utility Regulatory Policies Act
of 1978, 201, as enacted on the date of
adoption of that section, with regard to
cogeneration and small power production.
(16)[(11)] Quality of firmness of a
qualifying facility's power-The degree to
which the capacity offered by the qualify-
ing facility is an equivalent quality substitute
for the utility's own generation or firm pur-
chased power. At a minimum, the follow-
ing factors should be considered in deter-
mining the quality of firmness:
(A)-(J) (No change.)
(17)[(12)] Rate-Any price, rate,
charge, or classification made, demanded,
observed, or received with respect to the
sale, purchase, or transmission of electric
energy or capacity, or any rule, regulation,
or practice respecting any such rate, charge,
or classification, and any contract pertain-
ing to the sale or purchse of electric energy
or capacity.
(18) Renewable resources-Non-
fossil fuels such as solar, wind, hydro, and
geothermal.
(19)[(13)1 Sale-The sale of electric
energy or capacity or both supplied by an
electric utility to a qualifying facility.
(20)[(14)] Supplementary power-
Electric energy or capacity supplied by an
electric utility, regularly used by a qualify-
ing facility in addition to that which the fa-
cility generates itself.
(21)[(15)j System emergency-A
condition on a utility's system that is likely
to result in imminent significant disruption
of service to customers or is imminently
likely to endanger life or property.
(b)-(c) (No change.)
(d) Electric utility obligations.
(1)-(3) (No change.)
(4) Transmission to other electric
utilities. If a qualifying facility with a rated
capacity greater than 10 megawatts re-
quests, an electric utility [that would other-
wise be obligated to purchase energy and/or
capacity from such qualifying facility] shall
transmit [the] energy and/or capacity from
the qualifying facility [on a firm or nonfirm
basis at the option of the qualifying facili-
ty for the term of 'he power purchase con-
tract] to any other electric utility designated
by the qualifying facility, provided that such
transmittal is not in violation of federal law
or other jurisdictional authority. No elec-
tric utility is required to enter into anylal10 TexReg 3208 August 23, 195
Texrs Regbter 4
Upcoming Pages
Here’s what’s next.
Search Inside
This issue can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Periodical.
Texas. Secretary of State. Texas Register, Volume 10, 63, Pages 3197-3236, August 23, 1985, periodical, August 23, 1985; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth243714/m1/14/: accessed April 27, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.