Wyoming PSC Examines Avoided Cost Payment for QFs

On August 12, 2010, a Wyoming Public Service Commission docket (20004-86-ET-10) was opened following May 2010 order.  This docket contains Montana-Dakota Utilities Co.’s request for “authority to revise its Net Metering Tariff, Parallel Generation Rate 57”.   While this docket has net metering in the title, it is a bit of a misnomer because MDU’s Net Metering Tariff is actually Rate 58 and it applies to systems up to 25 kW.  Rate 57 is designed to allow larger Qualifying Facilities (QFs) use of their onsite generation and provide a payment at avoided cost for monthly net excess generation.  Rate 57 also provides a Capacity Payment of $11.44 per kW per month in the event that a QF can demonstrate that it is reliable enough to reduce the utility’s annual peak demand for capacity. MDU is seeking approval to reduce their energy (avoided cost) payment from $0.02197 to $0.01977 per kWh, a 10.01% decrease.

The Protest Deadline for this application is December 2, 2010.


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