527 - Cogeneration rules and regulations.

     § 527.  Cogeneration rules and regulations.        (a)  Availability.--The commission shall promulgate rules and     regulations concerning the rates, terms, conditions and     availability of cogeneration in this Commonwealth. The     commission shall require that utility rates to the public     reflect the costs and savings to the utility from cogeneration,     including, but not limited to, the costs incurred by utilities     under contracts with nonutility generating unit project     developers for the purchase of electric capacity or energy, or     both; the costs recoverable under subsection (b) to buy out and     cancel unfinished nonutility generating unit projects by mutual     agreement of the project developer and the public utility; and     the costs prudently incurred by utilities under a voluntary     buyout, buydown or other restructured arrangement which are just     and reasonable and which reduce the cost to customers of     nonutility generating unit projects.        (b)  Recovery of cancellation costs of nonutility generating     unit projects.--A nonutility generating unit project is a     generating unit project that is not owned by a public utility.     If the construction of a nonutility generating unit project for     which a public utility has a contract, whether entered into     voluntarily or pursuant to commission order, to purchase project     energy or project capacity and energy is canceled by mutual     agreement of the project developer and the public utility prior     to the unit's completion and operation, the public utility may     recover all costs to be paid to the project developer and all     costs directly related thereto which are prudently incurred as a     result of such cancellation. The burden of proof to show that     any costs claimed were prudently incurred shall be on the public     utility. In reviewing a claim for such costs:            (1)  the commission shall not disallow any portion solely        on the basis that it constitutes an amount greater than        actual development expenditures and all costs related        thereto; and            (2)  the commission shall consider the amount of the        claim compared to the utility's total estimated costs of        obligations under the contract.     (July 10, 1986, P.L.1238, No.114, eff. imd.; July 2, 1996,     P.L.542, No.94, eff. imd.)        1996 Amendment.  See the preamble and section 2 of Act 94 in     the appendix to this title for special provisions relating to     legislative findings and construction of act.        Cross References.  Section 527 is referred to in sections     2803, 2804, 2808 of this title.