OAR 860-029-0121: Delivery and Purchase under Standard Power Purchase Agreement

(1) Commencing on the earlier of the commercial operation date or the scheduled commercial operation date of the standard power purchase agreement and continuing until the end of the purchase period, the qualifying facility will be obligated to deliver and sell, and the purchasing public utility will be obligated to receive and purchase, the Net Output delivered to the Point of Delivery or Point of Interconnection, subject to other relevant requirements in this division. (2) An off-system qualifying facility may deliver and the purchasing public utility must accept energy imbalance ancillary services if: (a) The transmitting entity or entities require the qualifying facility to procure the services; (b) The transmitting entity or entities require the qualifying facility to schedule deliveries in increments of no less than one megawatt; (c) The qualifying facility is not attempting to sell the purchasing public utility energy or capacity in excess of its expected hourly Net Output; and (d) The energy imbalance service is designed to correct a mismatch between energy scheduled by the qualifying facility and the actual real time production by the qualifying facility. (3) The purchasing public utility must accept but is not obligated to pay for surplus delivery of energy. For purposes of this rule surplus delivery of energy means: (a) For on-system qualifying facilities, Net Output at the Point of Interconnection that exceeds the qualifying facility's Nameplate Capacity Rating; (b) For off-system qualifying facilities, any positive difference between the total energy delivered to the purchasing public utility in a given month and the qualifying facility's total Net Output for the month. (4) Title and risk of loss related to the energy shall transfer from the qualifying facility to the purchasing public utility at the Point of Delivery, except that title to renewable energy certificates transferred under a power purchase agreement shall transfer to the purchasing public utility when generated. (5) A qualifying facility may not commence commercial operation any sooner than 180 days before the scheduled commercial operation date of the standard power purchase agreement unless the purchasing public utility consents to early operation. The purchasing public utility may require a qualifying facility to wait to commence commercial operation until no sooner than 90 days prior to the scheduled commercial operation if the purchasing public utility is unable to accept delivery from the qualifying facility but is obligated to undertake reasonable efforts to obtain transmission service up to 180 days ahead of the scheduled commercial operation date. The qualifying facility must agree to compensate the purchasing public utility for any additional transmission costs associated with commencing operation sooner than 90 days prior to the scheduled commercial operation date. (6) The purchasing public utility will accept Test Energy delivered to the Point of Delivery as early as 90 days, but no more than 180 days, prior to the scheduled commercial operation date, subject to section (5) of this rule; provided that, in such case, the purchasing public utility's obligation to purchase Test Energy will not exceed a maximum period of 180 days. The purchasing public utility will pay the qualifying facility the lower of 85 percent of Index Rate or 85 percent of Contract Price for Test Energy delivered prior to the scheduled commercial operation date.