Section 170IAC4-4.1-1. Definitions

   (a) As used in this rule, "alternate energy production facility" means an arrangement of equipment for the production of electricity from the movement of water or wind, by photoelectric transformation, or through the combustion of refuse, a renewable source, or a recovered resource.

  (b) As used in this rule, "avoided cost" means the incremental cost to an electric utility of electric energy or capacity, or both, which, but for the purchase from a qualifying facility or facilities, the utility would generate or maintain itself or purchase from another source.

  (c) As used in this rule, "back-up power" means electric energy or capacity supplied by an electric utility to replace energy ordinarily generated by a qualifying facility's own generation equipment during an unscheduled outage of the facility.

  (d) As used in this rule, "capacity" means the ability to provide electric energy in a period of time.

  (e) As used in this rule, "cogeneration facility" means an arrangement of equipment which uses thermal energy to sequentially or simultaneously render electricity and useful thermal energy used for industrial, commercial, heating, or cooling purposes. The facility must meet energy efficiency standards for a cogeneration facility established by the Federal Energy Regulatory Commission under 16 U.S.C. 824a-3, in effect November 9, 1978.

  (f) As used in this rule, "commission" means the Indiana utility regulatory commission.

  (g) As used in this rule, "electric utility" means a public utility or municipally-owned utility that owns, operates, or manages an electric plant.

  (h) As used in this rule, "existing qualifying facility" means a qualifying facility which was in operation before July 1, 1983.

  (i) As used in this rule, "generating electric utility" means an electric utility with an annual sale of five hundred (500) million kilowatt-hours or more, which owns or leases, in whole or part, an electric generating facility providing a portion of the kilowatt-hours sold to its customers.

  (j) As used in this rule, "interconnection" means the physical, parallel connection of a qualifying facility with a transmission or distribution facility of an electric utility for the purchase or sale, or both, of electricity.

  (k) As used in this rule, "interconnection cost" means the reasonable cost of connection, switching, metering, transmission, distribution, safety provisions, and administrative costs incurred by the electric utility directly related to the installation and maintenance of a physical facility necessary to permit interconnected operations with a qualifying facility, to the extent the costs are:

(1) in excess of the corresponding costs which the electric utility would have incurred if it had not engaged in interconnected operations but instead generated an equivalent amount of electricity itself or purchased an equivalent amount of electricity from other sources; and

(2) not otherwise recognized in rates for purchase of energy, or capacity and energy, by the electric utility.

  (l) As used in this rule, "interruptible power" means electric energy or capacity supplied by an electric utility subject to interruption by the electric utility under specified conditions.

  (m) As used in this rule, "line losses" means the percentage loss of energy experienced in a period between the generation facilities of an electric utility and the customers of that electric utility.

  (n) As used in this rule, "maintenance power" means electric energy or capacity supplied by an electric utility during scheduled outages of the qualifying facility.

  (o) As used in this rule, "parallel" means the designed operation of the qualifying facility, interconnection equipment, and electric utility's system where the instantaneous flow of electrical energy may automatically occur in either direction across the interconnection point between the qualifying facility and the electrical utility's transmission and distribution system.

  (p) As used in this rule, "purchase" means the purchase of electric energy or capacity, or both, from a qualifying facility by an electric utility.

  (q) As used in this rule, "qualifying facility" means a cogeneration or alternate energy production facility of eighty (80) megawatts capacity or less which is owned not more than fifty percent (50%) in equity interest by a person primarily engaged in the generation or retail sale of electricity, gas, or thermal energy, other than as described in this rule.

  (r) As used in this rule, "supplementary power" means electric energy or capacity supplied by an electric utility, regularly used by a qualifying facility in addition to that which the facility generates itself.

  (s) As used in this rule, "system emergency" means a condition on a utility's system liable to result in any of the following:

(1) A significant disruption of service to a customer.

(2) A substantial deviation from a normal service standard.

(3) An endangerment to life or property.

  (t) As used in this rule, "wheeling" means the transfer of energy and capacity by direct transmission or displacement from a qualifying facility to a purchasing electric utility over a transmission or distribution facility, or both, of the utility with which the qualifying facility is interconnected. (Indiana Utility Regulatory Commission; 170 IAC 4-4.1-1; filed Mar 7, 1985, 10:04 a.m.: 8 IR 759; filed Jun 8, 1989, 2:00 p.m.: 12 IR 1834; filed Apr 4, 1995, 11:45 a.m.: 18 IR 1994; readopted filed Jul 11, 2001, 4:30 p.m.: 24 IR 4233; readopted filed Apr 24, 2007, 8:21 a.m.: 20070509-IR-170070147RFA; readopted filed Aug 2, 2013, 2:16 p.m.: 20130828-IR-170130227RFA)