Section 57.32. Purpose and scope

(a) Purpose. The purpose of this subchapter is to implement § 210 of the Public Utility Regulatory Policies Act of 1978, Pub. L. 95-617, Title II, § 210, 92 Stat. 3144 (16 U.S.C.A. § 824a-3(a)—(j)). To this end, this subchapter details the methodology to be used in establishing rates for sales and purchases, the responsibility for interconnection costs, the standards for system safety and reliability, and the processes by which the Commission will attempt to resolve disputes between utilities and qualifying facilities. This subchapter is intended to equalize the bargaining power of qualifying facilities with that of the utilities and protect the interests of the ratepayers. Furthermore as detailed in subsection (c), utilities are required to implement competitive bidding programs for the purchase of capacity and associated energy unless they are granted a waiver or exemption.

(b) Applicability. This subchapter governs the purchases and sales of energy between qualifying facilities and electric utilities. It also governs the purchases and sales of capacity and associated energy between suppliers of electric generation and electric utilities.

(c) Negotiated contracts for the purchase of energy.

(1) Regarding negotiated contracts for the purchase of energy from a qualifying facility, nothing in this subchapter:

(i) Limits or extends the authority of an electric utility to agree to a price for a purchase or to terms or conditions relating to a purchase which differ from the terms or conditions which would otherwise be required by this subchapter.

(ii) Affects the validity of a contract entered into between a qualifying facility and an electric utility for any purchase to the extent that contract is valid and in compliance with applicable statutes and regulations.

(d) Contract negotiations with winning bidders. Contract negotiations with winning bidders following an auction for the purchase of capacity and associated energy are governed by § 57.34(c)(10) (relating to purchases of energy and capacity).

(e) Filing of contracts. A utility shall file with the Commission a copy of a contract or agreement that it enters into with a qualifying facility or other supplier of electric generation with design capacity of 500 kilowatts or more under this subchapter. The contract or agreement shall be filed within 45 days of execution.

The provisions of this § 57.32 adopted September 17, 1982, effective January 11, 1983, 12 Pa.B. 4237; amended December 29, 1995, effective December 30, 1995, 25 Pa.B. 6085. Immediately preceding text appears at serial pages (195594) to (195595).

Notation

Notes of Decisions

Capacity

In determining whether to approve an application for a rate increase, the Commission cannot determine that qualified facility capacity is something that does not warrant treatment as ‘‘real’’ capacity and the Commissioners’ failure to allocate these costs creates rate bids. Allegheny Ludlum Corp. v. Pennsylvania Public Utility Commission, 612 A.2d 604 (Pa. Cmwlth. 1992).