54-12-2 - Purchase of power from qualifying power producers. - Utah Statutes

54-12-2. Purchase of power from qualifying power producers.
(1) Purchasing utilities shall offer to purchase power from qualifying power producers.
(2) The commission shall establish reasonable rates, terms, and conditions for thepurchase or sale of electricity or electrical generating capacity, or both, between a purchasingutility and a qualifying power producer. In establishing these rates, terms, and conditions, thecommission shall either establish a procedure under which qualifying power producers offercompetitive bids for the sale of power to purchasing utilities or devise an alternative methodwhich considers the purchasing utility's avoided costs. The capacity component of avoided costsshall reflect the purchasing utility's long-term deferral or cancellation of generating units whichmay result from the purchase of power from qualifying power producers.
(3) Purchasing utilities and qualifying power producers may agree to rates, terms, orconditions for the sale of electricity or electrical capacity which differ from the rates, terms, andconditions adopted by the commission under Subsection (2).
(4) The commission may adopt further rules which encourage the development of smallpower production and cogeneration facilities.

Amended by Chapter 374, 2008 General Session