STANDARD METERING AND BILLING AGREEMENT FOR QUALIFYING FACILITIES WITH A DESIGN CAPACITY OF GREATER THAN 10 KW AND LESS THAN OR EQUAL TO 10 MW
Graphical Analysis of interconnection rules by Erik Hawkes
- Large 570 Load Displacement (LD) option is shown above.
- Utility buys no energy and no RECs. Utility will bill customer at retail rate if he does not produce enough energy to cover his full load.
- Displaced load is valued at retail rate (that would have been paid to PNM).
- Customer retains all RECs, but must find buyer on open market. Assume half of retail rate for RECs. 
- Large 570 Net Metering option.
- Displaced load is valued at retail
- RECs associated with displaced load are purchased by PNM @ 15 cents/REC
- Net + associated RECs are purchased at PNM’s avoided cost (for Brown Power); meaning they get those RECs for free.
- Large 570 Simultaneous Buy/Sell option.
- Utility buys all energy produced and associated RECs at utility’s avoided cost (for Brown power); meaning they get the RECs for free.
- Customer is billed for all usage at standard retail rate.
 Current retail rate is about 4.3 cents/REC. Assume you could sell your RECs for about 2 cents/REC.