Upon application of a private energy producer, and after notice to any affected public utility and hearing thereon, the commission shall authorize such producer to construct an interconnection for the purpose of transmitting electricity, if the commission finds:

1. (1) That no uncompensated burden will be placed upon the utility or utilities furnishing the transmission service.
2. (2) That furnishing the transmission service will not result in any added costs or any other adverse consequences for the customers of the electrical corporation.

3. (3) That the facilities proposed in the application will be used to transmit power from other than a conventional power source for generating electrical power.

   The commission shall prescribe such reasonable terms, conditions, and requirements as it deems appropriate.