Finally, in Section 292.101(b)(6) of its regulations, the FERC defined as follows: “avoided cost” § 292.101(b)(6) (6) Avoided costs means the incremental costs to an electric utility of electric energy or capacity or both which, but for the purchase from the qualifying facility or qualifying facilities, such utility would generate itself or purchase from another source. 18 C.F.R. § 292.101(b)(6) (emphasis added). In sum, under these regulations, FERC established parameters applicable to rates for QF purchases, including the following: (1) Utilities could not be to pay required more than the avoided cost but could, with the QF, negotiate any price or term; (2) to the extent practical, consideration was to be given to the encouragement of QF production and reduction of fossil fuel use; (3) rates based upon avoided costs estimated to be incurred over the term of a contract or other legally enforceable obligation did not have to match avoided costs as they would be calculated at the time the power was delivered; (4) a standard, i.e. tariffed, rate was required for small QFs and allowed for others; (5) QFs had the option to choose to deliver power as it became available for purchase or under a legally enforceable obligation, and QFs that chose the latter had the further option to calculate avoided costs at the time of delivery or at the time the obligation was incurred; and (6) an acceptable measure of avoided cost is the cost a utility would incur from the purchase of energy or capacity from another source. This Commission implemented the FERC rules by regulations adopted September 17, 1982, effective January 11, 1983. 52 Pa. Code §§ 57.31-57.39. These See
Finally, in Section 292.101(b)(6) of its regulations, the FERC defined “avoided cost” as follows: § 292.101(b)(6) (6) Avoided costs means the incremental costs to an electric utility of electric energy or capacity or both which, but for the purchase from the qualifying facility or qualifying facilities, such utility would generate itself or purchase from another source. 18 C.F.R. § 292.101(b)(6) (emphasis added). In sum, under these regulations, FERC established parameters applicable to rates for QF purchases, including the following: (1) Utilities could not be required to pay more than the avoided cost but could, with the QF, negotiate any price or term; (2) to the extent practical, consideration was to be given to the encouragement of QF production and reduction of fossil fuel use; (3) rates based upon avoided costs estimated to be incurred over the term of a contract or other legally enforceable obligation did not have to match avoided costs as they would be calculated at the time the power was delivered; (4) a standard, i.e. tariffed, rate was required for small QFs and allowed for others; (5) QFs had the option to choose to deliver power as it became available for purchase or under a legally enforceable obligation, and QFs that chose the latter had the further option to calculate avoided costs at the time of delivery or at the time the obligation was incurred; and (6) an acceptable measure of avoided cost is the cost a utility would incur from the purchase of energy or capacity from another source. This Commission implemented the FERC rules by regulations adopted September 17, 1982, effective January 11, 1983. See 52 Pa. Code §§ 57.31-57.39. These
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