37-2-122. Matters considered in fixing rates; order changing services or facilities; qualifying facilities contracts.

(a) In determining what are just and reasonable rates the commission may take into consideration availability or reliability of service, depreciation of plant, technological obsolescence of equipment, expense of operation, physical and other values of the plant, system, business and properties of the public utility whose rates are under consideration. In determining just and reasonable rates for electricity the commission shall consider common sets of facts developed pursuant to W.S. 37-2-114(b)(i) and regional benefits provided by the utility.

(b) If, upon hearing and investigation, any service or service regulation of any public utility shall be found by the commission to be unjustly discriminatory or unduly preferential, or any service or facility shall be found to be inadequate or unsafe, or any service regulation shall be found to be unjust or unreasonable, or any service, facility or service regulation shall be found otherwise in any respect to be in violation of any provisions of this act, the commission may prescribe and order substituted therefor such service, facility or service regulation, as it shall determine to be adequate and safe, or just and reasonable, as the case may be and otherwise in compliance with the provisions of this act, including any provisions concerning the availability or reliability of service. It shall be the duty of the public utility to comply with and conform to such determination and order of the commission.

(c) In setting rates, the commission shall allow the inclusion of purchase power cost from a qualifying facility only to the extent that the cost of energy, capacity or both in the transaction are determined by the commission to be less than or equal to the utility's avoided cost, considering the cost of energy or capacity from all other available generation sources and the incremental cost of transporting the energy from a qualifying facility to customer load. This subsection shall not be interpreted in a manner inconsistent with the requirements of applicable federal statutes and regulations.

(d) As used in this section:

(ii) "Qualifying facility" means a facility that meets the qualification standards used in federal regulations promulgated under the federal Public Utility Regulatory Policies Act.

(i) "Avoided cost" means to the extent that a distribution cooperative is an all-requirements power supply customer of a generation and transmission cooperative or other wholesale power supplier, the distribution cooperative's avoided costs are the generation and transmission cooperative's or wholesale power supplier's avoided cost;