(a) Not later than one year after October 17, 1984, the Commission shall prescribe and implement, and, from time to time thereafter, revise such rules for each electric utility for which it has ratemaking authority, as it determines necessary to encourage cogeneration and small power production as well as to require electric utilities to offer to:
(1) sell electric energy to qualifying cogeneration facilities and qualifying small power production facilities; and
(2) purchase electric energy from such facilities. Such rules shall be prescribed under the guidance of the rules for cogeneration and small power production as issued by the Federal Energy Regulatory Commission, after public notice and a reasonable opportunity for interested persons (including Territorial and Federal agencies) to submit oral, as well as written, data, views and arguments. Such rules shall include provisions respecting minimum reliability of qualifying cogeneration (including reliability of such facilities during emergencies) and rules respecting reliability of electric energy service to be available to such facilities from electric utilities during emergencies. Such rules may not authorize a qualifying cogeneration facility or qualifying small power production facility to make any sale for purposes other than resale.
(b) The rules prescribed under subsection (a) of this section shall insure that, in requiring any electric utility to offer to sell electric energy to any qualifying cogeneration facility or qualifying small power production facility, the rates for such purchase or sale:
(1) shall be just and reasonable to the electric consumers of the electric utility and in the public interest; and
(2) shall not discriminate against qualifying cogenerators or qualifying small power producers.
(c) For purposes of this section, the term “incremental cost of alternative electric energy” means, with respect to electric energy purchased from a qualifying cogenerator or qualifying small power producer, the cost to the electric utility for the electric energy which, but for the purchase from such cogenerator or small power producer, such utility would generate or purchase from another source.