III. The Operating Options

Edison's SO2 and ISO4 contracts list three types of Operating Options which QFs can select. The language of the options is generally the same in the SO2 and ISO4 contracts.

Operating Option I provides that the QF's entire generator output is dedicated to Edison, and that no electrical service (and in some contracts, no standby service) is required.6

Operating Option II provides that the QF's entire generator output is dedicated to Edison with separate electric service required.7

Operating Option III provides that the QF dedicates to Edison only the portion of the generating facility's output in excess of the QF's electrical requirements.

6 The ISO4 states that no electric service or standby service is required. The SO2 states that no electrical service is required from Edison. 7 Again, the ISO4 states that separate electric service is required, while the SO2 states that electrical service is required from Edison.

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