Payment of QFs Going Forward

Energy from QFs is an essential part of the state's electric supply. The commission is aware that ongoing disputes between utilities and their suppliers and creditors has resulted in QFs not being paid, in some cases for months. By incorporating as part of the CTP, a measure providing for just and reasonable prices to the electric consumer, the commission has relieved some of the pressure on utility finances. Going forward, the utilities have no reason to continue to withhold payment from QFs making energy deliveries to the utilities.

Beginning on the effective date of this order and until further order of the commission, utilities shall pay QFs at the rate of $79 dollars per megawatt hour for energy delivered on or after that date, subject to the following conditions: entities opting for the ten year fixed price of $69 per megawatt will have payments adjusted to reflect that election; entities remaining on the Transition Formula as modified and subject to the CTP will be paid the Transition formula plus applicable capacity payments, subject to the CTP. Entities with capacity payments structured to provide performance incentives should apply to the commission for approval of variant payment terms pursuant to this order.

Payment by the utilities within 15 days of energy delivery by the QFs given current conditions is key and critical to maintaining energy reliability. Therefore, if the utilities fail to transmit payment to the QFs within days of the energy deliveries, they shall be subject to a penalty equal to the amount of the payment owed.