(a) Upon application of any qualifying cogenerator, or qualifying small power producer, the Commission may issue an order requiring:
(1) the physical connection of any cogeneration facility, small power production facility, or the transmission facilities of any electric utility, with the facilities of such applicant;
(2) such action as may be necessary to make effective any physical connection described in paragraph (1) of this subsection, which physical connection is ineffective for any reason, such as inadequate size, poor maintenance, or physical unreliability;
(3) such sale or exchange of electric energy or other coordination, as may be necessary to carry out the purposes of any order under paragraph (1) or (2); or
(4) such increase in transmission capacity as may be necessary to carry out the purposes of any order under paragraph (1) or (2).
(b) Upon receipt of an application under subsection (a) of this section, the Commission shall:
(1) require the applicant/cogenerator to cover all cost, including the cost of the public utility, associated with its application for certification as a qualified producer and the costs and expenses, including the cost of the public utility, associated with applicant's/cogenerator's interconnection;
(2) issue notice to the affected electric utility, each affected owner or operator of a cogeneration facility or of a small power production facility, and to the public;
(3) afford an opportunity for an evidentiary hearing; and
(4) make a determination with respect to the matters referred to in subsection (c) of this section.
(c) No order may be issued by the Commission under subsection (a) unless the Commission determines that such order:
(1) is in the public interest;
(2) would encourage overall conservation of energy or capital, optimize the efficient use of facilities and resources, or improve the reliability of the electric utility system to which the order applies; and
(3) meets the requirements of section 48 of this chapter.
(d) The Commission may, on its own motion, after compliance with the requirements of paragraphs (1) and (2) of subsection (b), issue an order requiring any action described in subsection (a) if the Commission determines that such order meets the requirements of subsection (c).
(e)
(1) As used in this section, the term “facilities” means only facilities used for the generation or transmission of electric energy.
(2) With respect to an order issued pursuant to an application of a qualifying cogenerator or qualifying small power producer under subsection (a)(1), the term “facilities of such applicant” means the qualifying cogeneration facilities or qualifying small power production facilities of the applicant, as specified in the application. With respect to an order issued by the Commission on its own motion under subsection (d) of this section, such term means the qualifying cogeneration facilities, qualifying small power production facilities, or the transmission facilities of an electric utility, as specified in the proposed order.