Texas Register, Volume 10, 63, Pages 3197-3236, August 23, 1985 Page: 3,209
3197-3236 p. ; 28 cm.View a full description of this periodical.
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transmission arrangement [with any other
electric utility] if, solely by reason of such
transmission arrangement, the electric utili-
ty would become subject to regulation as
a public utility under the Federal Power
Act, Part II. [If facilities are not available
or adequate to transmit a qualifying facili-
ty's energy and/or capacity to a purchasing
utility, the intermediate utility shall, at the
request of the qualifying facility, expedi-
tiously construct such additional facilities
as may be required by the qualifying facility
to wheel the energy and/or capacity. The
cost of such construction shall be borne by
the qualifying facility to the extent that con-
stnruction was required to transmit its energy
and/or capacity. The methods for determin-
ing and billing such construction costs shall
be on a nondiscriminatory basis.] Any elec-
tric utility to which such energy and/or
capacity is transmitted shall purchase such
energy and/or capacity [under this para-
graph] as if the qualifying facility were sup-
plying energy and/or capacity directly to
such electric utility. [The rate for purchase
by the electric utility to which such energy
is transmitted shall be adjusted up or down
to reflect the costs or savings resulting from
variations in line losses from those that
would have existed in the absence of pur-
chases from a qualifying facility. The rate
paid by the purchasing utility shall not in-
clude any charges for transmission; how-
ever, the transmitting utility shall be paid
a reasonable transmission charge, including
consideration of line leases by the qualify-
ing facility. Charges for firm or nonfirm
wheeling within the meaning of this section
shall apply only to transmission from the
qualifying facility to the purchasing utili-
ty. Such charges or a methodology for
calculating such charges shall be determined
by the commission in a generic docketed or
rules proceeding after notice and opportuni-
ty for hearing. In the interim, until the
generic wheeling docket or rules proceeding
is decided, such charges shall not exceed the
charges calculated according to the methods
of 23.67 of this title (relating to Wheeling
Service for the Transmission of Firm Pow-
er). Energy losses or credits resulting from
the transmission of the qualifying facility's
power shall accrue to the qualifying facili-
ty based upon the estimated average annual
loading of the transmission lines which will
carry the qualifying facility energy and/or
capacity to the purchasing utility. All util-
ities filing applications for the approval of
wheeling ta iffs with the Federal Energy
Regulatory Commission, or any other fed-
eral agency having jurisdiction of wheeling
tariffs, shall give notice to the PUC of such
filing by providing the PUC with a duplicate
copy of any and all documents filed with
the FERC or a competent federal agency.]
Transmission to other electric utilities shall
be governed by the following:
(A) Transmi sion arrangements.
The qualifying facility is responsible for all
necessary transmission arrangements withutlitles whose transmission systems are Im-
pacted by the transmission of the qualify-
lag facility's energy and/or capacity. How-
ever, at the qualifying facility's request, the
purchasing utility shall make all such ar-
rangements including, but not limited to,
negotiation of contract terms and condi-
tions and determination of additional facil-
ities, if any, required to facilitate wheeling
of the energy and/or capacity. Further-
more, if the host utility and the qualifying
facility agree, then the host utility shall
make all such arrangements. The qualify-
ing facility shall be notified of all negotia-
tions and have the right to participate fully
in all negotiations and be a party to each
wheeling agreement. Ir addition, all infor-
mation pertaining to such arrangments shall
be furnished to the qualifying facility or
purchasing utility upon request.
(B) Payment of transmission
charges. All utilities that can show that their
transmission systems are impacted by the
transmission of a qualifying facility's energy
and/or capacity (impacted utilities) are en-
titled to payment for transmission wheel-
ing service as defined in paragraph (5) of
this subsection. At the option of the quali-
fying facility, all transmission wheeling
charges by impacted utilities are payable by
the qualifying facility or the purchasing
utility. If the purchasing utility pays the
transmission charges the sum of such
payments and the payments to the qualify-
ing facility for energy and/or capacity shall
not exceed the purchasing utility's avoided
cost.
(C) System additions. Reason-
able costs of interconnecting facilities pro-
vided by the host utility shall be borne by
the qualifying facility as provided in subsec-
tion (k)(1) and (2) of this section. The cost
of all other additions or improvements to
impacted utilities systems necessitated by
the provision of planned capacity transmis-
sion wheeling service for energy and/or ca-
pacity from the qualifying facility as de-
scribed in paragraph (5) of this subsection
will be the responsibility of the impacted
utility. The impacted utility shall construct
such system additions or improvements as
expeditiously as possible. For provision of
as available transmission wheelin' service
under paragraph (5) of this subsection, the
cost of system additions or improvements
reasonably needed to accommodate the
transaction may be born by the qualifying
facility or by the purchasing utility at the
purchasing utility's option.
(D) Interruption of transmission
wheellag service. Planned capacity
transmission wheeling service may only be
interrupted in case of a system or area
emergency when the continuance of such
service would contribute to the emergency.
As available transmission wheeling service
shall be subject to interruption in the same
circumstances or when continuation of such
service would impair the ability of the utility
providing such se;-vce to provide reliableand economical service to its firm custom-
ers.
(E) Tariffs and agreements.
(I) Each utility that may pro-
vide transmission wheeling service subject
to this section shall, within 30 days of the
effective date of the section, file a tariff that
specifies the facilities rate per megawatt for
planned capacity transmission wheeling ser-
vice and the charge per megawatt-mile for
as available transmission service as cal-
culated according to paragraph (5)(C) of
this subsection. The tariff shall also include
general terms and conditions for providing
transmission wheeling service for capacity
and/or energy from a qualifying facility to
a purchasing utility in accordance with these
rules. Notice of the initial tariff filing shall
be made by a one-time publication in a
newspaper of general circulation within the
utility's service area. The tariff and charges
are subject to review and change in each
subsequent rate case of the utility.
(li) Nothing in this subsection
shall prohibit an impacted utility and a
qualifying facility or its representative from
agreeing to a rate and terms and conditions
for provision of transmission wheeling ser-
vice for capacity and/or energy from the
qualifying facility to a purchasing utility
that differ from those specified in this sec-
tion. To the extent required by the Public
Utility Regulatory Act, such agreements are
subject to review and approval by the com-
mission.
(ii) All utilities filing applica-
tions for approval of wheeling tariffs with
the Federal Energy Regulatory Commission
(FERC) or any other federal agency hav-
ing jurisdiction of wheeling tariffs shall give
notice to the commission of such filing by
providing the commission with a duplicate
copy of any and all such documents filed
with the FERC or other federal agency.
(F) General obligations.
(1) The host utility shall notify
the qualifying facility upon request of all
utilities potentially impacted by a proposed
wheeling transaction. At the qualifying fa-
cility's request and expense the host utility
shall conduct preliminary impact studies for
specified wheeling transactions. All utilities
subject to this section shall provide the com-
mission with annual impact studies for sev-
eral hypothetical wheeling transactions as
specified by the commission staff.
(ll) All requests for transmis-
sion wheeling service under this section shall
be made in writing and shall provide infor-
mation In sufficient detail to allow evalua-
tion of the transaction. An impacted utili-
ty shall respond in writing to such request
within 60 days of receipt of the request un-
less the power transfer is of such magnitude,
duration, and/or complexity that additional
time is needed to evaluate its impact. Under
no circumstances shall a response be made
later than 120 days following the date of the
request.August 23, 1985 10 TexReg 3209
A Proposed Rules
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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/m1/15/: accessed April 25, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.