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ORDER NO. PSC -2017 -0336 -PAA -EQ <br />DOCKET NO. 20170072 -EQ <br />PAGE 98 <br />Attachment A <br />(� DUKE <br />ENERGY. <br />No. aloe <br />4_0 4:0–Payment Obligations for Interconnection Costs: <br />SECTION No. IX <br />MCA/ND-THIRD REVISED SHEET No. 9.705Z11 <br />CANCELS FIRST -,SECOND REVISED SHEET <br />4.1. 4.1=The Company shall have no obligation to initiate construction of the Company's <br />Interconnection Facilities prior to a written notice from the QF agreeing to the <br />Company's interconnection design requirements and notifying the Company to initiate <br />its activities to construct the Company's Interconnection Facilities; provided, however, <br />that such notice shall be received not later than the date specified by the Company under <br />Section 3:2 hereof. The QF shall be liable for and agrees to pay all Interconnection <br />Costs incurred by the Company. <br />4/. 4.2 The QF agrees to pay all of the Company's actual Interconnection Costs as such <br />costs are incurred and billed in accordance with the Power Purchase Agreement, if <br />applicable.– Such amounts shall be billed pursuant to seetien-Section 4.2.1 if the QF <br />elects the payment option permitted by FPSC Rule 25-17.087(3). Otherwise the QF <br />shall be billed pursuant to sestien-Section 4.2.2. If the QF does not have a Power <br />Purchase Agreement for the Facility, then the QF agrees to pay the amounts billed by <br />Company within thirty (30) days after Company notifies the QF that such <br />interconnection work has been completed. <br />4.2.1. -44A—Upon a showing of credit worthiness, the QF shall have the option of <br />making monthly installment payments for Interconnection Costs over a period no <br />longer than thirty–six (36) months. The period selected is months. <br />Principal payments will be based on the estimated Interconnection Costs less the <br />Interconnection Costs Offset, divided by the repayment period in months to <br />determine the monthly principal payment. Payments will be invoiced in the first <br />month following first incurrence of Interconnection Costs by the Company. <br />Invoices to the QF will include principal payments plus interest on the unpaid <br />balance, if any, calculated at a rate equal to the thirty (30) day highest grade <br />commercial paper rate as published in the Wali Street Journal on the first business <br />day of each month. The final payment or payments will be adjusted to cause the <br />sum of principal payments to equal the actual Interconnection Costs. <br />4.2/. 4.2.2 When Interconnection Costs are incurred by the Company, such costs will <br />be billed to the QF to the extent that they exceed the Interconnection Costs Offset. <br />The QF agrees to provide, at least fifteen (15) calendar days before the initiation of <br />interconnection field work, cash or a letter of credit as adequate assurances, in a <br />form acceptable to Company in its sole discretion, to cover the estimated <br />Interconnection Costs. <br />ISSUED BY: Javier Portuondo, Director, Rates & Regulatory Strategy -FL <br />EFFECTIVE: October44,2838 <br />