(4)__New nonrenewable capacity resources located in this State. The commission shall give preference to new nonrenewable capacity resources with no net emission of greenhouse gases;

(5)__Capacity resources that enhance the reliability of the electric grid of this State.__The commission shall give preference to capacity resources with no net emission of greenhouse gases; and

(6)__Other capacity resources.

5.__Contract term.__A contract entered into pursuant to subsection 3 may not be for more than 10 years, unless the commission finds a contract for a longer term to be prudent.

6.__Competitive solicitation process and contract negotiation.__ For purposes of selecting potential capacity resources for contracting pursuant to subsection 3, the commission shall conduct a competitive solicitation no less often than every 3 years if the commission determines that the likely benefits to ratepayers resulting from any contracts entered into as a result of the solicitation process will exceed the likely costs.__ Following review of bids, the commission may negotiate with one or more potential suppliers.__When only one bid has been offered, the commission shall ensure that negotiations are based on full project cost disclosure by the potential supplier.__The commission shall negotiate contracts that are commercially reasonable and that commit all parties to commercially reasonable behavior.

7.__Disposition of resources.__A large investor-owned transmission and distribution utility shall sell capacity resources purchased pursuant to subsection 3 or take other action relative to such capacity resources as directed by the commission.

8.__Cost recovery.__The commission shall ensure that a large investor-owned transmission and distribution utility recovers in rates all costs of contracts entered into pursuant to subsection 3, including but not limited to any impacts on the utility's costs of capital.__A price differential existing at any time during the term of the contract between the contract price and the prevailing market price at which the capacity resource is sold must be reflected in rates and may not be deemed to be imprudent.

9.__Contract payments.__Contracts for capacity and related