[Federal Register: August 19, 2003 (Volume 68, Number 160)]
[Proposed Rules]
[Page 49973-50014]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19au03-29]
[[Page 49973]]
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Part III
Department of Energy
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Federal Energy Regulatory Commission
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18 CFR Part 35
Standardization of Small Generator Interconnection Agreements and
Procedures; Proposed Rules
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 35
[Docket No. RM02-12-000]
Standardization of Small Generator Interconnection Agreements and
Procedures
July 24, 2003.
AGENCY: Federal Energy Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Energy Regulatory Commission (Commission) is
proposing to amend its regulations under the Federal Power Act (FPA) to
require public utilities that own, operate, or control facilities for
transmitting electric energy in interstate commerce to file revised
Open Access Transmission Tariffs containing standard interconnection
procedures and a standard interconnection agreement for small
generators. Specifically, the Commission is proposing in this Notice of
Proposed Rulemaking that such public utilities shall provide
interconnection service to Small Generating Facilities (i.e., devices
used for the production of electricity having a capacity of no more
than 20 megawatts), including their own generation, under the
procedures set forth in the proposed standard interconnection
procedures and according to a standard interconnection agreement. Any
non-public utility that seeks voluntary compliance with the reciprocity
condition of a jurisdictional transmission tariff may satisfy this
condition by adopting these procedures and this agreement.
DATES: Comments are due October 3, 2003. Comments should be double
spaced and include an executive summary. In order to facilitate the
evaluation of comments, commenters are encouraged to file their
comments electronically in WordPerfect, MS Word, Portable Document
Format (PDF), or ASCII format.
ADDRESSES: Comments may be filed electronically via the eFiling link on
the Commission's Web site at http://www.ferc.gov. Commenters unable to
file comments electronically must send an original and 14 copies of
their comments to: Federal Energy Regulatory Commission, Office of the
Secretary, 888 First Street NE., Washington, DC 20426. Comments should
reference Docket No. RM02-12-000. Please refer to the Comment
Procedures Section of the preamble for additional information on how to
file comments.
FOR FURTHER INFORMATION CONTACT: Bruce Poole (Technical Information),
Office of Market, Tariffs and Rates, Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426, (202) 502-
8468.
Patrick Rooney (Technical Information), Office of Market, Tariffs
and Rates, Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-6205.
Kirk F. Randall (Technical Information), Office of Market, Tariffs
and Rates, Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-8092.
Michael G. Henry (Legal Information), Office of the General
Counsel, Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-8532.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Background
B. Generator Interconnections
C. Large Generator Interconnection Rulemaking
D. Small Generator Interconnection ANOPR, Process, and Comments
II. Discussion
A. The Commission's Small Generator Interconnection Proposal
1. Jurisdiction
2. Summary of the Interconnection Process for Small Generating
Facilities
3. Maximum Capacity of a Small Generator (Proposed SGIP Section
1, Proposed SGIA Article 1)
4. Precertification of Small Generating Facilities No Larger
than 2 MW (Proposed SGIP Section 3.1)
5. Use of Screening Criteria (Proposed SGIP Sections 3.3 and
4.3)
a. Super-Expedited Screening Criteria (Appendix 1 to the
Proposed SGIP)
b. Expedited Screening Criteria (Appendix 2 to the Proposed
SGIP)
6. Dispute Resolution (Proposed SGIP Section 2.11 and Proposed
SGIA Article 8)
7. Queuing (Proposed SGIP Sections 4.4 and 4.7)
8. Parties to the Proposed SGIA (Proposed SGIA Article 9)
9. Affected Systems (Proposed SGIP Section 2.8)
10. Pricing / Cost Recovery for Upgrades (Proposed SGIA Article
5)
11. Liability, Indemnity, Force Majeure, and Insurance (Proposed
SGIA Articles 6.13, 6.14, and 6.16)
12. Variations From the Final Rule on Compliance
B. Summary of the Proposed SGIP and the Proposed SGIA
1. Standard Small Generator Interconnection Procedures (Proposed
SGIP)
Section 1. Definitions
Section 2. General Provisions
Section 3. Super-Expedited Procedures for Interconnecting a
Small Generating Facility No Larger than 2 MW to a Low-Voltage
Transmission System
Section 4. Procedures for Interconnecting a Small Generating
Facility to a High-Voltage Transmission System and a Small
Generating Facility Larger than 2 MW to a Low-Voltage Transmission
System
Charts
Appendices
2. Standard Small Generator Interconnection Agreement (Proposed
SGIA)
Article 1. Definitions
Article 2. Scope and Limitations of Agreement
Article 3. Inspection, Testing, Authorization, and Right of
Access
Article 4. Effective Date, Term, Termination, and Disconnection
Article 5. Cost Responsibility, Milestones, Billing, and Payment
Article 6. Miscellaneous
Article 7. Confidentiality
Article 8. Disputes
Article 9. Signatures
Appendices
III. Public Reporting Burden and Information Collection Statement
IV. Environmental Analysis
V. Regulatory Flexibility Act Certification
VI. Comment Procedures
VII. Document Availability
Appendix A--Flow Chart of Super-Expedited Procedures for
Interconnecting a Small Generating Facility No Larger than 2 MW to a
Low-Voltage Transmission System
Appendix B--Flow Chart of Procedures for Interconnecting a Small
Generating Facility to a High-Voltage Transmission System and a
Small Generating Facility Larger than 2 MW to a Low-Voltage
Transmission System
Appendix C--Standard Small Generator Interconnection Procedures
(SGIP), including Standard Small Generator Interconnection Agreement
(SGIA) 33
I. Introduction
1. This Notice of Proposed Rulemaking (NOPR) proposes the addition
of Standard Small Generator Interconnection Procedures (Proposed SGIP)
and a Standard Small Generator Interconnection Agreement (Proposed
SGIA) to the Open Access Transmission Tariffs (OATTs) of jurisdictional
public utilities.\1\ The Commission expects that this rulemaking will
reduce interconnection time and costs for Interconnection Customers and
Transmission Providers, prevent undue discrimination, preserve
reliability, increase energy supply, lower wholesale prices for
customers by increasing the number and variety of new generation
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resources that will compete in the wholesale electricity market, and
facilitate development of non-polluting alternative energy sources
(such as photovoltaic, fuel cell, and wind generators).
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\1\ Provisions of the Proposed SGIP are referred to as
``Sections'' whereas provisions of the Proposed SGIA are referred to
as ``Articles.''
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2. The Proposed SGIP sets forth the procedures that Interconnection
Customers and Transmission Providers would be required to follow during
the interconnection process.\2\ Included in the Proposed SGIP are (1)
the application form (referred to as the Interconnection Request), (2)
Super-Expedited Procedures for interconnecting Precertified Small
Generating Facilities no larger than 2 MW to a Low-Voltage Transmission
System (i.e., less than 69 kilovolts), (3) Expedited Procedures for
interconnecting Small Generating Facilities larger than 2 MW but no
larger than 10 MW to a Low-Voltage Transmission System, (4) procedures
for interconnecting Small Generating Facilities to a High-Voltage
Transmission System (i.e., 69 kilovolts and above) and Small Generating
Facilities larger than 10 MW interconnecting with a Low-Voltage
Transmission System.
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\2\ Unless otherwise defined in this Preamble, capitalized terms
used in this NOPR have the meanings specified in Section 1 of the
Proposed SGIP and Article 1 of the Proposed SGIA. The term
Generating Facility means the specific device for which the
Interconnection Customer has requested interconnection. The owner of
the Generating Facility is referred to as the Interconnection
Customer. The entity with which the Generating Facility is
interconnecting is referred to as the Transmission Provider. The
term Small Generator is intended to refer to any energy resource
having a capacity of no more than 20 megawatts, or the owner of such
a resource. Likewise, Large Generator refers to any energy resource
having a capacity of more than 20 megawatts, or the owner of such a
resource.
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3. The Proposed SGIA sets forth the legal rights and obligations of
each Party, addresses cost responsibility issues, establishes
Milestones for the completion of the interconnection, and lays out a
process for the resolution of disputes.
4. In this NOPR, we propose standard procedures and a standard
agreement to be used by a public utility to interconnect a Small
Generator with the utility's transmission facilities or with its
jurisdictional distribution facilities for the purpose of selling
electric energy at wholesale in interstate commerce.
A. Background
5. This NOPR responds to business and technology changes in the
electric industry. Where the electric industry was once primarily the
domain of large, vertically integrated utilities generating power at
large centralized plants, advances in technology have created a
burgeoning market for small power plants that may offer economic,
reliability, or environmental benefits.
6. With these developments in mind, the Commission continues to
work to encourage fully competitive bulk power markets. The effort took
its first significant step with Order No. 888,\3\ which required public
utilities to provide other entities comparable access to their
transmission systems, and continued with Order No. 2000,\4\ which began
the process of developing Regional Transmission Organizations (RTOs).
The Commission has taken numerous actions to establish and protect
robust, seamless, and competitive wholesale electricity markets.\5\
Concurrent with the issuance of this NOPR, the Commission is issuing a
Final Rule establishing standard interconnection procedures and a
standard agreement for large generators to further encourage fully
competitive bulk power markets and much-needed investment in
generation.\6\
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\3\ Promoting Wholesale Competition Through Open Access Non-
Discriminatory Transmission Services by Public Utilities; Recovery
of Stranded Costs by Public Utilities and Transmitting Utilities,
Order No. 888, 61 FR 21540 (May 10, 1996), FERC Stats. and Regs.
]31,036 (1996), order on reh'g, Order No. 888-A, 62 FR 12274 (Mar.
14, 1997), FERC Stats. & Regs. ]31,048 (1997), order on reh'g, Order
No. 888-B, 81 FERC ]61,248 (1997), order on reh'g, Order No. 888-C ,
82 FERC ]61,046 (1998), aff'd in relevant part sub nom. Transmission
Access Policy Study Group v. FERC, 225 F.3d 667 (D.C. Cir. 2000),
aff'd sub nom. New York v. FERC, 535 U.S. 1 (2002).
\4\ Regional Transmission Organizations, Order No. 2000, 65 FR
810 (Jan. 6, 2000), FERC Stats. & Regs. ]31,089 (1999), order on
reh'g, Order No. 2000-A, 65 FR 12088 (Mar. 8, 2000), FERC Stats. &
Regs. ]31,092 (2000), aff'd sub nom. Public Util. Dist. No. 1 v.
FERC, 272 F.3d 607 (D.C. Cir. 2001).
\5\ E.g., Remedying Undue Discrimination Through Open Access
Transmission Service and Standard Electricity Market Design, Notice
of Proposed Rulemaking, 67 FR 55452 (Aug. 29, 2002), FERC Stats. &
Regs. ]32,563 (2002).
\6\ Standardization of Generator Interconnection Agreements and
Procedures, Final Rule, Docket No. RM02-1-000 (issued concurrently
with this NOPR).
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7. The Commission continues to seek the establishment of robust
competitive wholesale electric markets.\7\ A recent Commission White
Paper stated the Commission's intent to focus on the formation of RTOs
and Independent System Operators (ISOs) and on ensuring that RTOs and
ISOs have good wholesale market rules in place.\8\ It proposed to
require all public utilities to join an RTO or ISO. Further, the White
Paper stated that all RTOs and ISOs would, with limited exceptions, be
required to implement a wholesale market platform consisting of
elements that must be in place for well-functioning wholesale markets:
(1) Regional independent grid operation, (2) a regional transmission
planning process, (3) fair cost allocation for existing and new
transmission, (4) market monitoring and market power mitigation, (5)
spot markets to meet real-time energy needs, (6) transparency and
efficiency in congestion management, (7) firm transmission rights; and
(8) a regional approach to ensuring resource adequacy. Also, an RTO or
ISO may propose participant funding for transmission upgrades for a
generator interconnection, and, for a transitional period not to exceed
a year, a region may use participant funding as soon as an independent
entity has been approved by the Commission and the affected states.
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\7\ E.g., Remedying Undue Discrimination Through Open Access
Transmission Service and Standard Electricity Market Design, Notice
of Proposed Rulemaking, 67 FR 55542 (Aug. 29, 2002), FERC Stats. &
Regs. ]32,563 (2002).
\8\ White Paper: Wholesale Power Market Platform, Docket No.
RM01-12-000 (Apr. 28, 2003) (White Paper).
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B. Generator Interconnections
8. While the subject of generator interconnection arose in the
Order No. 888 rulemaking, no explicit reference to it appeared in the
OATT. Nevertheless, interconnection is a critical component of open
access transmission service, and the Commission must ensure that
interconnection service is provided under just and reasonable terms and
conditions.
9. Entities seeking to interconnect generators have been hindered
by the lack of standard interconnection procedures and agreements.
Standard interconnection procedures limit opportunities for public
utilities that own both generation and transmission to favor their own
generation and help produce just and reasonable interconnection charges
for generators. A standard interconnection agreement reduces market
entry costs for generators and offers them access to regional energy
markets on standard terms.
10. As discussed below, after the Commission initiated its
interconnection NOPR in Docket No. RM02-1-000, Standardization of
Generator Interconnection Agreements and Procedures, it became apparent
that the rule as proposed might not sufficiently encourage the
development of small generators, and that there needed to be a separate
interconnection agreement and set of procedures designed specifically
for small generators.
11. The effort to generically address Small Generator
interconnection issues presents numerous challenges. The electric
industry is faced with the
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competing needs for, on the one hand, maintaining electric system
reliability and, on the other hand, encouraging increased generation,
including generation using innovative technologies. To encourage small
generators to participate in the interstate wholesale market, the
interconnection process should be affordable and the terms and
conditions should be clear, but these goals must not compromise the
reliability of the electric system.
C. Large Generator Interconnection Rulemaking
12. The Commission issued an Advance Notice of Proposed Rulemaking
(ANOPR) in Docket No. RM02-1-000 \9\ (Large Generator Interconnection
ANOPR) that was originally intended to develop standard generator
interconnection procedures and a standard agreement for generators of
all sizes. The Commission also initiated a collaborative process in
which members of the electric industry and government (collectively,
stakeholders) could draft standard interconnection procedures and
interconnection agreement documents. Public meetings of these
stakeholders culminated in the development of a Large Generator
Interconnection Procedures (Consensus LGIP) and a Large Generator
Interconnection Agreement (Consensus LGIA), which were filed with the
Commission.\10\
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\9\ Standardizing Generator Interconnection Agreements and
Procedures; Advance Notice of Proposed Rulemaking, 66 FR 55140 (Nov.
1, 2001), FERC Stats. & Regs. ] 35,540 (2002). The previously cited
rulemaking is referred to here as the Large Generator
Interconnection rulemaking, to distinguish it from the Small
Generator Interconnection rule proposed here.
\10\ While these consensus documents reflected significant
agreement, they also identified disputed provisions and left a
number of issues unresolved.
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13. The Commission then issued a Large Generator Interconnection
NOPR.\11\ The Commission proposed standard interconnection procedures
for generators, which is referred to here as the Proposed LGIP. It also
proposed a standard interconnection agreement for all generators, which
is referred to here as the Proposed LGIA. Both would be incorporated
into existing and future OATTs. The Proposed LGIP and Proposed LGIA
generally followed the consensus documents filed with the Commission,
but the Commission also resolved, for purposes of the NOPR, several
issues that were left unresolved in the consensus documents. A Large
Generator Interconnection Final Rule is being issued concurrently with
the issuance of this NOPR.
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\11\ Large Generator Interconnection NOPR, IV FERC Stats. &
Regs. ] 32,560 (2002).
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D. Small Generator Interconnection ANOPR, Process, and Comments
14. Although the Proposed LGIP and Proposed LGIA provided for the
expedited treatment of Small Generating Facilities, some commenters
argued that the Commission should adopt separate standard
interconnection procedures and agreements that address the unique
concerns of Small Generators.\12\ Small Generator Commenters proposed
simplified standard procedures and agreements that would allow quicker,
less costly, and simpler interconnection for Small Generating
Facilities no larger than 2 MW, and different procedures and agreements
for units larger than 2 MW but no larger than 20 MW. Persuaded that
different procedures and agreements for Small Generators are needed, we
severed consideration of Small Generating Facilities from the Large
Generator Interconnection rulemaking and issued its Small Generator
Interconnection ANOPR in August 2002.\13\
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\12\ Those commenters included The Solar Energy Industries
Association, the U.S. Fuel Cell Council, the American Solar Energy
Society, the U.S. Combined Heat and Power Association, the
International District Energy Association, and the American Wind
Energy Association (collectively, Small Generator Commenters).
\13\ Standardization of Small Generator Interconnection
Agreements and Procedures; Advance Notice of Proposed Rulemaking, 67
FR 54749 (Aug. 26, 2002), FERC Stats. & Regs. ] 35,544 (2002).
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15. The Small Generator Interconnection ANOPR proposed two small
generator interconnection procedures and two small generator
interconnection agreements, with the distinction between the two sets
of documents being the size of the Small Generator. These documents
(hereafter, respectively, ANOPR SGIPs and ANOPR SGIAs) were offered by
the Small Generator Commenters in their comments to the Large Generator
Interconnection NOPR. We encouraged interested parties to pursue
consensus on the ANOPR SGIPs and ANOPR SGIAs. To that end, the
Commission convened a series of public meetings designed to enable the
parties to discuss and reach as much agreement as possible.
16. The public meetings culminated in the negotiating parties \14\
preparing two sets of standard small generator interconnection
procedures and agreements (Coalition SGIPs and Coalition SGIAs,
respectively) and submitting them to the Commission in November 2002.
While the Coalition members reached consensus on some issues,
significant disagreements remained. The documents nonetheless helped
inform the Commission of the various challenges that confront both the
owners of Small Generators and Transmission Providers. Public comments
on the Small Generator Interconnection ANOPR were filed in December
2002.
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\14\ The negotiating parties included representatives of small
generators, the National Association of Regulatory Utility
Commissioners, and transmission and distribution providers
(collectively, ``Coalition'').
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II. Discussion
17. The results of the negotiations during the Small Generator
Interconnection ANOPR process, the ANOPR comments, and the technical
conference on queuing form the basis for the Proposed SGIP and Proposed
SGIA that are included in this NOPR.
18. Coalition members drafted two Coalition SGIAs, one for Small
Generating Facilities no larger than 2 MW, and a second for Small
Generating Facilities larger than 2 MW but no larger than 20 MW.
Likewise, they developed two sets of Coalition SGIPs. Although there
was significant overlap between the two Coalition SGIAs as well as the
two Coalition SGIPs, the Coalition members did not consolidate these
four documents. To simplify the interconnection process and eliminate
duplication, this NOPR offers a single Proposed SGIP and a single
Proposed SGIA. The former incorporates different procedures for the
processing of Interconnection Requests for Small Generating Facilities
of various sizes.
19. Coalition members were often unable to reach consensus on an
issue and the Commission needed to resolve the issue for the purpose of
this NOPR. The Commission carefully evaluated the positions the
Coalition members presented in the November 2002 consensus document as
well as the ANOPR comments filed the following month. The Commission
also acknowledges that NARUC has developed a model small generator
interconnection procedures and agreement that is similar in many ways
to the proposal contained in this NOPR. The NARUC model and its
comments were very helpful in the development of this proposal.
20. Also, where appropriate, we are proposing some provisions and
definitions identical or similar to those in the Large Generator
Interconnection Final Rule (and the OATT) to ensure as much consistency
as is reasonable between the large and small generator
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tariff provisions.\15\ We invite comment on this approach, and ask
interested parties to address whether Large Generators and Small
Generators should be treated differently with respect to those parts of
the Proposed SGIP and Proposed SGIA that follow the Final Rule LGIP and
Final Rule LGIA.
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\15\ See, e.g., Articles 4.1, 5.1.2, 5.1.2.1, 5.2, 6.1-6.9,
6.12-6.20, 7, and 8 of the Proposed SGIA.
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21. The Coalition presents various procedures to determine whether
certain Small Generators may interconnect safely with a Transmission
Provider's Transmission System. In the Coalition's proposed SGIPs, some
procedures would evaluate requests to interconnect Small Generators to
a Transmission Provider's Distribution System, while others would
evaluate requests to interconnect with its Transmission System. The
Commission here proposes instead to use the voltage level of the
Transmission Provider's Transmission System at which the
interconnection is to be made as one basis for determining which
procedure may be employed \16\--Low-Voltage procedures would apply to
interconnections made at voltage levels below 69 kV, and High-Voltage
procedures would apply to interconnections made at voltage levels of 69
kV and above. The Commission believes that this will assist the Parties
by making clear which procedure applies to a particular Interconnection
Request.
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\16\ The other basis is generator size.
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A. The Commission's Small Generator Interconnection Proposal
22. This NOPR includes a Proposed SGIP and a Proposed SGIA. The
Proposed SGIP describes the process for evaluating the proposed
interconnection. After the process is successfully completed, the
Parties would then execute the Proposed SGIA, which sets forth the
contractual rights and obligations of the Parties. To explain the
contents of the Proposed SGIA and Proposed SGIP, we next present: (1) A
discussion of our legal authority over a Small Generator's
interconnection to a public utility's Transmission System, (2) a
summary of the proposed interconnection process,\17\ and (3) a
discussion of significant issues that arose during the Small Generator
Interconnection ANOPR process and how we propose to resolve them.
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\17\ To aid the reader, the Appendices contain flow charts that
depict the interconnection process. Appendix 1 depicts the Super-
Expedited Procedures for interconnecting Small Generating Facilities
no larger than 2 MW to a Low-Voltage Transmission System. Appendix 2
depicts the procedures for interconnecting Small Generating
Facilities to a High-Voltage Transmission System and Small
Generating Facilities larger than 2 MW to a Low-Voltage Transmission
System.
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1. Jurisdiction
23. At the outset, it is important to clarify several terms when
discussing the question of jurisdiction. ``Local distribution'' is a
legal term; under FPA section 201(b)(1), the Commission lacks
jurisdiction over local distribution facilities.\18\ ``Distribution''
is an unfortunately vague term, but it is usually used to refer to
lower-voltage lines that are not networked and that carry power in one
direction. Some lower-voltage facilities are ``local distribution''
facilities not under our jurisdiction, but some are used for
jurisdictional service such as carrying power to a wholesale power
customer for resale and are included in a public utility's OATT
(although in some instances, there is a separate OATT rate for using
them, sometimes called a Wholesale Distribution Rate).
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\18\ 16 U.S.C. 824(b)(1) (2000).
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24. This NOPR proposes to apply the NOPR SGIA and NOPR SGIP in a
manner consistent with the Large Generator Interconnection Final Rule.
This is different from the authority proposed in the Small Generator
Interconnection ANOPR, where, consistent with the jurisdiction proposed
in the Large Generator Interconnection NOPR, we proposed to assert
jurisdiction when the owner of a generator seeks to interconnect with a
distribution facility to make a wholesale sale of electricity in
interstate commerce.\19\ Several commenters to the Small Generator
Interconnection ANOPR object to the Commission asserting jurisdiction
over interconnections to distribution facilities, both legally and as a
matter of policy.\20\ They argue, among other things, that the FPA
reserves jurisdiction over local distribution facilities to the States
and that the Commission lacks sufficient staff and expertise to
regulate numerous Small Generator interconnections to Distribution
Systems. These matters, they say, are best left to the States. Most of
these commenters do not distinguish between distribution facilities
owned by jurisdictional public utilities and those owned by non-public
utilities.
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\19\ Standardization of Generator Interconnection Agreements and
Procedures, Notice of Proposed Rulemaking, 67 FR 22250 (May 2,
2002), FERC Stats. & Regs. ] 32,560 at 34,178 n.22 (2002).
\20\ E.g., Baltimore Gas & Electric Co., Commonwealth of
Massachusetts Department of Telecommunications and Energy,
Connecticut Department of Public Utility Control, Edison Electric
Institute, FirstEnergy, NARUC, Public Service Commission of
Wisconsin, and Southern Company Services Inc.
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25. The proposed rule proposes to apply to interconnections to the
facilities of a public utility's Transmission System that, at the time
the interconnection is requested, may be used either to transmit
electric energy in interstate commerce or to sell electric energy at
wholesale in interstate commerce pursuant to a Commission-filed
OATT.\21\ In other words, the standard interconnection procedures and
contract terms would apply when an Interconnection Customer that plans
to engage in a sale for resale in interstate commerce or to transmit
electric energy in interstate commerce requests interconnection to
facilities owned, controlled, or operated by the Transmission Provider
or the Transmission Owner, or both, that are used to provide
transmission service under an OATT that is on file at the Commission at
the time the Interconnection Request is made. Therefore, the NOPR
proposes to apply to a request to interconnect to a public utility's
facilities used for transmission in interstate commerce. It also would
apply to a request to interconnect to a public utility's
``distribution'' facilities used to transmit electric energy in
interstate commerce on behalf of a wholesale purchaser pursuant to a
Commission-filed OATT. But in such a case where the ``distribution''
facilities have a dual use, i.e., the facilities are used for both
wholesale sales and retail sales, the NOPR would apply to
interconnections to these facilities only for the purpose of making
sales of electric energy for resale in interstate commerce.\22\
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\21\ For purposes of this paragraph, the term ``Commission-filed
OATT'' means a tariff that is on file at, and has been approved by,
the Commission.
\22\ The Commission will exercise exclusive jurisdiction only
over the Commission-jurisdictional service. See Laguna Irrigation
District, 95 FERC ] 61,305 at 62,039 (2001) aff'd sub nom. Pacific
Gas & Electric Co. v. FERC, 44 Fed. Appx. 170 (9th Cir. 2002); Tex-
La Electric Cooperative of Texas, Inc., 67 FERC ] 61,019 at 61,055-
56, final order, 69 FERC ] 61,269 (1994) (both noting that the
Commission asserts jurisdiction over the service when the facilities
are not purely ``transmission'' facilities). Accordingly, the
Commission will continue to exercise exclusive jurisdiction over the
rates, terms, and conditions of the Commission-jurisdictional
service provided over the dual use ``distribution'' facility, but
the Commission will not assert jurisdiction over all uses of that
facility, because the regulation of ``local distribution'' of
electricity to end users is reserved to the States.
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26. For those Small Generator interconnections that would not be
subject to the Final Rule SGIP and Final Rule SGIA, the Commission will
make the Final Rule documents available as a guideline. The
standardization of small generator terms and conditions would
[[Page 49978]]
benefit all customers nationwide by encouraging the development of
small generation, including generation using innovative technologies.
27. Finally, the Commission proposes to apply the reciprocity
requirements in Order No. 888 to this proceeding. Under the reciprocity
provision in section 6 of the OATT, if the public utility seeks
transmission service from a non-public utility to which it provides
open access transmission service, the non-public utility that owns,
controls, or operates transmission facilities must provide comparable
transmission service that it is capable of providing on its own system.
A non-public utility that has adopted a ``safe harbor'' Tariff to
comply with a reciprocity condition may add to its Tariff an
interconnection agreement and interconnection procedures that
substantially conform or are superior to the Final Rule SGIP and Final
Rule SGIA if it wishes to continue to qualify for safe harbor
treatment. A non-public utility that owns, controls, or operates
transmission and that has not filed with the Commission a safe harbor
Tariff and seeks transmission service from a public utility must either
satisfy its reciprocity obligation under a bilateral agreement or seek
a waiver of the OATT reciprocity condition from the public utility.
2. Summary of the Interconnection Process for Small Generating
Facilities
28. To interconnect its Generating Facility with a Transmission
Provider's Transmission System, an Interconnection Customer must first
submit an Interconnection Request to the Transmission Provider. When
the Transmission Provider deems the Interconnection Request complete,
the Interconnection Request would be placed in the Transmission
Provider's queue with other pending interconnection requests.
29. The Proposed SGIP divides Interconnection Requests into two
groups according to whether the interconnection is to a High-Voltage
Transmission System (69 kV or above) or a Low-Voltage Transmission
System (below 69 kV). Interconnections to Low-Voltage Transmission
Systems would be further divided into three groups depending on the
size of the Small Generator being interconnected: (1) Small Generating
Facilities larger than 10 MW but no larger than 20 MW, (2) Small
Generating Facilities larger than 2 MW but no larger than 10 MW, and
(3) Small Generating Facilities no larger than 2 MW.
30. The review of the proposed interconnection of a Small Generator
with a High-Voltage Transmission System or a Small Generator larger
than 10 MW with a Low-Voltage Transmission System would proceed as
follows. Once the Interconnection Request is deemed complete, the
Parties would conduct a Scoping Meeting to review the Interconnection
Request and also review existing studies of the Transmission Provider's
Transmission System that are relevant to the Interconnection Request.
Interconnection Studies, including the Interconnection Feasibility
Study, Interconnection System Impact Study, and Interconnection
Facilities Study, would next be performed to evaluate the proposed
interconnection.\23\ These studies identify any Adverse System Impact
\24\ to the Transmission Provider's Transmission System that may occur
as a result of the interconnection, and the Transmission System
modifications that need to be made to address them. The Interconnection
Customer pays for the Transmission Provider's actual costs of
performing each study, and the Proposed SGIP includes time periods
within which the studies must be completed. If the Interconnection
Customer agrees to pay for any necessary modifications, the
Transmission Provider must proffer an SGIA to the Interconnection
Customer.
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\23\ The Interconnection Feasibility Study evaluates on a
preliminary basis the impact of the proposed interconnection to the
Transmission Provider's Transmission System. The Interconnection
System Impact Study evaluates in detail the impact of the proposed
interconnection on the safety and reliability of Transmission
Provider's Transmission System and, if applicable, Affected Systems.
The Interconnection Facilities Study determines the required
modifications to the Transmission Provider's Transmission System,
including the detailed costs and scheduled completion dates for such
modifications, that would be required to accommodate the
Interconnection Request.
\24\ An Adverse System Impact means that technical or
operational limits on conductors or equipment have been exceeded,
which may compromise the safety or reliability of the electric power
system.
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31. Although the activities performed in the Small Generator
process are the same as those in the Large Generator Interconnection
Final Rule, the time lines proposed here are shorter. Accordingly, a
Small Generator is likely to be interconnected more quickly under the
Proposed SGIP than under the Final Rule LGIP.
32. For Small Generating Facilities larger than 2 MW but no larger
than 10 MW interconnecting with a Transmission Provider's Low-Voltage
Transmission System, the proposed interconnection would be evaluated
using the Proposed SGIP's Expedited Screening Criteria. If the proposed
interconnection passes the screening criteria and the Transmission
Provider agrees that the Generating Facility can be safely
interconnected with its Low-Voltage Transmission System, the former
shall proffer an SGIA to the Interconnection Customer. However, if the
Transmission Provider believes that the Generating Facility cannot be
safely interconnected, irrespective of whether the proposed
interconnection passes or fails the Expedited Screening Criteria, the
Parties would follow the same procedures for Small Generating
Facilities larger than 10 MW interconnecting with Low-Voltage
Transmission Systems; i.e., conduct a Scoping Meeting and perform
Interconnection Studies. The Transmission Provider, after consulting
with the Interconnection Customer, may determine whether a particular
Generating Facility in this class of Small Generators may be
interconnected absent a Scoping Meeting and Interconnection Studies.
This is because, although the proposed interconnection may pass the
Expedited Screening Criteria, it may nonetheless cause an Adverse
System Impact, depending upon where the Small Generator is physically
located on the Transmission Provider's Transmission System. Since this
cannot be reflected in the screening criteria, the Transmission
Provider may evaluate the proposed interconnection in greater detail
and, if it is concerned about an Adverse System Impact to its
Transmission System, require that a Scoping Meeting be held and
Interconnection Studies be conducted.
33. However, in order to encourage the Parties to use the Expedited
Screening Criteria to the fullest extent possible, the Commission
proposes that, if the Interconnection Feasibility Study conducted under
these conditions indicates no Adverse System Impact, the Transmission
Provider must bear the cost of the Interconnection Feasibility Study.
If an Adverse System Impact is identified, however, the Interconnection
Customer must pay for the cost of the Interconnection Feasibility
Study.
34. Interconnections of Precertified Small Generating Facilities no
larger than 2 MW with the Transmission Provider's Low-Voltage
Transmission System would be evaluated under the Proposed SGIP's Super-
Expedited Procedures. A Precertified Small Generator is one that has
been certified by a national testing laboratory as having met
applicable consensus industry and safety standards. If a proposed
interconnection passes all the Super-Expedited Screening Criteria, the
Transmission Provider would proffer an SGIA to the Interconnection
Customer. If the proposed interconnection fails the
[[Page 49979]]
Super-Expedited screening criteria: (1) The Transmission Provider could
permit the interconnection anyway, after evaluating other factors such
as the physical location of the Generating Facility on its Transmission
System, or (2) the Interconnection Customer could ask the Transmission
Provider to perform an Additional Review, to be paid for by the
Interconnection Customer.
35. The Additional Review is an expedited engineering evaluation
limited to six hours of engineering time that is intended to identify
minor modifications to Transmission Provider's Transmission System that
may permit the Generating Facility to interconnect safely and reliably.
If the Additional Review indicates that minor modifications to
Transmission Provider's Transmission System can indeed be made that
would permit the Generating Facility to interconnect safely and
reliably, and the Interconnection Customer agrees to pay for the
modifications, the Transmission Provider would provide the
Interconnection Customer an SGIA. If the Additional Review does not
indicate that the Generating Facility can be interconnected safely and
reliably, the Parties would follow the procedures for Small Generating
Facilities larger than 2 MW but no larger than 10 MW interconnecting
with Low-Voltage Transmission Systems.
36. Once the steps called for in the Interconnection Procedures are
completed, the Transmission Provider would provide a best estimate of
costs to be paid by the Interconnection Customer to effect the
interconnection, and the Parties would negotiate Milestones for
completing the interconnection, all of which would be incorporated into
the SGIA. The SGIA would become effective upon execution by the
Parties, subject to acceptance by the Commission, if necessary.\25\
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\25\ Under Order No. 2001, if an executed interconnection
agreement conforms with a Commission-approved standard form of
interconnection agreement, the utility does not have to file it with
the Commission but must report it in the Electric Quarterly Reports.
See Revised Public Utility Filing Requirements, Order No. 2001, 67
FR 31043 (2002), FERC Stats. & Regs. ] 31,127 at P 178 (2002); reh'g
denied, Order 2001-A, 100 FERC ] 61,074 (2002); reconsideration and
clarification denied, Order No. 2001-B, 100 FERC ] 61,342 (2002);
further order, Order No. 200-C, 101 FERC ] 61,314 (2002). An
interconnection agreement must be filed only if it contains terms
and conditions that deviate from the utility's generic, Commission-
approved interconnection agreement or is filed in unexecuted form.
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37. The Commission next discusses several issues that either
divided the parties seeking to reach consensus during the Small
Generator ANOPR process or on which the Commission departs from the
consensus position.
3. Maximum Capacity of a Small Generator (Proposed SGIP Section 1,
Proposed SGIA Article 1)
38. Consistent with the Large Generator Interconnection Final Rule
and the Small Generator Interconnection ANOPR, Small Generating
Facilities no larger than 20 MW are considered Small Generating
Facilities under the Proposed SGIA and Proposed SGIP. The Commission
proposes to treat as a single Generating Facility the aggregated
generation at a site for which an Interconnection Customer seeks a
single Point of Interconnection.
39. The Commission recognizes that 10 MW is used as the threshold
for small generators in Texas, California, New York and Ohio. In
addition, several entities, such as the PJM Interconnection, Electric
Reliability Council of Texas, and the California Independent System
Operator use 10 MW as the threshold because generators under 10 MW are
considered less likely to affect reliability and safety. In this NOPR,
the Commission likewise proposes special procedures for generators no
larger than 10 MW. The Commission, however, proposes to adopt the
higher 20 MW threshold, which is used by the Midwest Independent System
Operator, in this rulemaking because it would encourage the development
of a greater number of Small Generators and promote the development of
innovative small generation technologies.
40. Regarding Interconnection Requests that propose to increase the
capacity at an existing Generating Facility, the Commission proposes
that the new total capacity would determine how the Interconnection
Request should be evaluated. For example, if an Interconnection
Customer seeks to increase the capacity of an existing Generating
Facility from 2 MW to 5 MW by the addition of a second generator, the
Interconnection Request would be evaluated as if it were for a 5 MW
Generating Facility. Likewise, the Commission proposes that if an
Interconnection Customer seeks to increase the size of an existing
Generating Facility from 10 MW to 25 MW, the Interconnection Request
would be evaluated as if it were a request for a 25 MW Generating
Facility. In this case, the Interconnection Request would not be
eligible for evaluation under the Proposed SGIP, but rather the Final
Rule LGIP. We also invite comment on whether single projects with
multiple points of interconnection (as might occur for a windfarm or an
industrial cogeneration project serving multiple facilities) should be
treated as separate projects or as a single project for queuing and
Interconnection Study purposes.
41. Some Interconnection Requests could specify a level of capacity
below the maximum capacity of the Generating Facility. We seek comment
on how such Interconnection Requests should be addressed. For example,
should an interconnection request for a device with a maximum capacity
of 22 MW but seeking an interconnection for only 20 MW (and agreeing to
restrict delivery to the Transmission Provider's Transmission System
below that level) be evaluated under the Final Rule SGIP or the Final
Rule LGIP?
4. Precertification of Small Generating Facilities No Larger than 2 MW
(Proposed SGIP Section 3.1)
42. A small number of states have procedures to precertify Small
Generator equipment that meet specified operational and safety
standards in order to expedite interconnections.\26\ Precertification
eliminates the need for the Transmission Provider to study the
equipment for safety and reliability purposes.
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\26\ The New York Department of Public Service, for example,
maintains a list of approved equipment on its Web site.
---------------------------------------------------------------------------
43. Precertification of the Interconnection Customer's equipment
does not mean that the Generating Facility can be immediately
interconnected to the Transmission Provider's Transmission System.
Before a Precertified Generating Facility may be interconnected, it
must first be determined that the interconnection would have no Adverse
System Impact on the Transmission Provider's Transmission System. The
purpose of Precertification is to ensure the safety of the Generating
Facility itself, not the safety or reliability of the Generating
Facility's interconnection to the Transmission Provider's Transmission
System.
44. Although precertification presumably has expedited the
development of small generation in states where such programs exist,
there is no national precertification program. Manufacturers tell us
that they face the cost and delay associated with having their
equipment evaluated in each state. Moreover, many states lack
procedures for evaluating equipment. In these states, generator
equipment is evaluated on a case-by-case basis by the Transmission
Provider in the course of
[[Page 49980]]
evaluating each Interconnection Request.
45. The Coalition proposes a single, uniform, nationwide
precertification process for Small Generating Facilities no larger than
2 MW that would encourage the development of small generation while
ensuring the safety of the electric system. The Coalition proposes that
the Commission itself certify equipment and maintain a registry of
equipment that has been certified.
46. This NOPR does not propose to adopt the Coalition's proposal in
its entirety. In the Proposed SGIP, a Precertified Generating Facility
is defined as one that has been tested by a nationally recognized
testing laboratory to consensus industry standards in order to ensure
that it will operate in a safe manner. The Commission in this NOPR
concludes that certifying equipment and maintaining a registry should
be done by an industry-recognized testing organization, not this
agency. Accordingly, rather than establish and maintain a list of
precertified equipment, as proposed by the Coalition, the Commission
encourages cooperation and information sharing among the States and
industry participants regarding the precertification of generating
equipment. This would eliminate duplication of effort and encourage
small generation development, while advancing the movement toward a
nationwide set of precertification standards.
47. The Commission recognizes that the IEEE Standards Board
approved IEEE Standard 1547 for Interconnecting Distributed Resources
with Electric Power Systems on June 12, 2003 to create uniform
standards to interconnect distributed generation for safe and reliable
operation. Together with other technical industry documents, IEEE 1547
could serve as the basis for a national standard for precertification.
The Coalition proposed other documents that might be relevant to
equipment precertification. The Commission requests comments about what
role, if any, the Commission should have in assessing which entity or
entities could perform this precertification function.
5. Use of Screening Criteria (Proposed SGIP Sections 3.3 and 4.3)
48. Screening criteria simplify the process of evaluating the
interconnection of certain Small Generating Facilities to the
Transmission Provider's Transmission System. Their purpose is to
identify quickly those proposed interconnections that can be
implemented with minimal or no impact on the Transmission Provider's
Transmission System and can, therefore, be completed quickly. An
example of a Super-Expedited Screening Criterion is that the capacity
of a Small Generator proposed for a radial circuit shall not exceed
five percent of that circuit's annual peak load.
49. The Coalition developed four screening criteria: (1) Primary
screening criteria, (2) secondary screening criteria, (3) distribution
impact screening criteria, and (4) transmission impact screening
criteria. The first three only apply to proposed interconnections with
the Transmission Provider's Distribution System. Not all parties in the
ANOPR process supported the use of all four Coalition screening
criteria, especially the last two.
50. The Proposed SGIP includes two screening criteria to evaluate
proposed interconnections with a Transmission Provider's Low-Voltage
Transmission System (i.e., below 69 kV): (1) Super-Expedited Screening
Criteria for the smallest generating facilities, and (2) Expedited
Screening Criteria for somewhat larger but still small generating
facilities. Although both screening criteria use similar evaluation
standards, the latter are easier to satisfy than the former. The
Commission does not propose screening criteria for: (1) Small
Generating Facilities of any size interconnecting with the Transmission
Provider's High-Voltage Transmission System and (2) Small Generating
Facilities larger than 10 MW interconnecting with the Transmission
Provider's Low-Voltage Transmission System. Because of the potential
for an Adverse System Impact, such requests to interconnect are best
evaluated using the Scoping Meeting and Interconnection Studies.
51. A proposed interconnection that fails the Super-Expedited
Screening Criteria may still qualify for interconnection by being
evaluated using the Additional Review and three sequential
Interconnection Studies: the Interconnection Feasibility Study, the
Interconnection System Impact Study, and the Interconnection Facilities
Study. A proposed interconnection that fails the Expedited Screening
Criteria may still qualify for interconnection by being evaluated using
three sequential studies: the Interconnection Feasibility Study, the
Interconnection System Impact Study, and the Interconnection Facilities
Study.
a. Super-Expedited Screening Criteria (Appendix 1 to the Proposed SGIP)
52. The Super-Expedited Screening Criteria \27\ are designed to
evaluate proposed interconnections for Precertified Small Generating
Facilities no larger than 2 MW that are to be interconnected with the
Transmission Provider's Low-Voltage Transmission System. If the
proposed interconnection passes the Super-Expedited Screening Criteria,
the Interconnection Customer and Transmission Provider would sign an
Interconnection Agreement without any further review. However, if the
proposed interconnection does not pass, the Interconnection Customer
can request an Additional Review to be followed by, if necessary, an
Interconnection Feasibility Study, Interconnection System Impact Study,
and Interconnection Facilities Study.
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\27\ The Coalition SGIP referred to Super-Expedited Screening
Criteria as the Primary Screening Criteria.
---------------------------------------------------------------------------
b. Expedited Screening Criteria (Appendix 2 to the Proposed SGIP)
53. The Expedited Screening Criteria \28\ are used to evaluate the
proposed interconnection of Small Generating Facilities larger than 2
MW but no larger than 10 MW with the Transmission Provider's Low-
Voltage Transmission System. If the proposed interconnection passes the
Expedited Screening Criteria and the Transmission Provider believes
that it can interconnect the Generating Facility safely and reliably,
the Interconnection Customer would sign an Interconnection Agreement
without any further review. However, if the Generating Facility does
not pass the Expedited Screening Criteria, or if the Transmission
Provider believes that the interconnection will undermine the safety
and reliability of its Transmission System even though the proposed
interconnection passes the Expedited Screening Criteria, the Parties
would conduct a Scoping Meeting to determine the appropriate
Interconnection Studies to be performed. However, as stated above, in
order to encourage the Parties to use the Expedited Screening Criteria
to the fullest extent possible, the Commission proposes that, if a
subsequent Interconnection Feasibility Study indicates no Adverse
System Impact, the Transmission Provider must bear the cost of the
Interconnection Feasibility Study. If an Adverse System Impact is
identified, however, the Interconnection Customer would have
[[Page 49981]]
to pay for the Interconnection Feasibility Study.
---------------------------------------------------------------------------
\28\ The Coalition SGIP referred to Expedited Screening Criteria
as the Impact Screening Criteria.
---------------------------------------------------------------------------
6. Dispute Resolution (Proposed SGIP Section 2.11 and Proposed SGIA
Article 8)
54. In the Small Generator Interconnection ANOPR, the Commission
proposed that the Parties use the Commission's alternative dispute
resolution service or any other informal services available to them to
resolve disputes. The Commission also proposed that the outcome of the
dispute resolution process would be binding if the Interconnection
Customer so chooses.
55. The Coalition SGIAs and SGIPs propose using Technical Masters
to help resolve disputes between the Parties. According to the
Coalition proposal, these Technical Masters would be certified by the
Commission and provided by the Commission to the Parties at minimal or
no cost. The Coalition proposal identifies Technical Masters as
``engineers with expertise in electric power transmission and
distribution interconnection requirements who are qualified and
independent.''\29\
---------------------------------------------------------------------------
\29\ Coalition SGIP, Attachment A Procedures Section 6, and
Attachment B Procedures Section 1.11 (Nov. 12, 2002).
---------------------------------------------------------------------------
56. Several commenters \30\ to the ANOPR take exception to the
Commission's proposal that arbitration be binding if the
Interconnection Customer so chooses. They argue that the Parties should
be able to retain their rights of appeal when using the arbitration
process.
---------------------------------------------------------------------------
\30\ E.g., Bonneville Power Administration, Avista Corp.,
Central Maine Power Company, Public Service Company of New Mexico,
and Public Service Electric and Gas Company.
---------------------------------------------------------------------------
57. The Proposed SGIP and Proposed SGIA would adopt the dispute
resolution process in the Large Generator Interconnection Final Rule.
The Commission endorses the use of Technical Masters and agrees that
they must have the requisite expertise to review, and where possible,
resolve technical issues raised by the Parties. The proposed Dispute
Resolution procedures satisfy these requirements.\31\ The Commission,
however, declines to adopt the Coalition's proposal that it certify
Technical Masters. Instead, the Commission proposes to maintain on its
Web site a list of Technical Masters who may be called upon by the
Parties in the event of a technical dispute. However, the Commission
will neither evaluate nor certify persons that wish to be placed on the
list.
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\31\ ``[A]rbitrators shall be knowledgeable in electric utility
matters, including electric transmission and bulk power issues, and
shall not have any current or past substantial business or financial
relationships with any party to the arbitration (except prior
arbitration).'' Article 27.2 of the LGIA in Standardization of
Generator Interconnection Agreements and Procedures, Final Rule,
Docket No. RM02-1-000 (issued concurrently with this NOPRA).
---------------------------------------------------------------------------
58. With respect to the Interconnection Customer's ability to elect
that arbitration be binding, we propose to adopt the language contained
in the Large Generator Interconnection Final Rule, which provides that
external arbitration would be binding on the Parties. However, the
Arbitrator's final decision must be filed with the Commission if it
affects jurisdictional rates, terms and conditions of service,
Interconnection Facilities, or Upgrades. Parties may comment on this
proposal and explain whether and why large and small generators should
be treated differently.
7. Queuing (Proposed SGIP Sections 4.4 and 4.7)
59. The Commission proposes that each Transmission Provider
maintain a single queue per geographic area. A queue sequentially lists
Interconnection Requests based upon the date and time they are
complete. The Queue Position of each Interconnection Request determines
the order of performing Interconnection Studies for each generator, if
required, and the Interconnection Customer's cost responsibility for
any Upgrades to the Transmitting Provider's Transmission System
necessary to accommodate the Interconnection Request.
60. Queuing was discussed at a January 21, 2003 Technical
Conference convened by Commission staff. Some conference participants
suggested that the Commission require the use of a single queue for
each geographic area, with Interconnection Requests being evaluated in
the order in which they are received. Such an approach, it was argued,
is fair, makes the queue easier to administer, and allows more
efficient processing of Interconnection Requests, including the use of
clustering and other study techniques. Clustering of studies allows a
Transmission Provider to study multiple Interconnection Requests at the
same time. Clustering may reduce study costs and allow multiple
Interconnection Customers to share the cost of Upgrades. Other
conference participants suggested creating multiple queues based on
generator size. This approach, they argued, would prevent small
generator interconnections, with their comparatively short study times,
from being unreasonably delayed by large generators ahead of them in
the queue.
61. While we here propose that each Transmission Provider maintain
a single queue per geographic area, a Small Generator's Queue Position
does not necessarily determine how long it takes to actually
interconnect. In the Proposed SGIP, if a proposed interconnection
passes either the Super-Expedited Screening Procedures or the Expedited
Screening Procedures, the Interconnection Customer would have no cost
responsibility for Upgrades. Accordingly, the Small Generator could be
interconnected very quickly, regardless of its Queue Position.
62. If the proposed interconnection does not pass either the Super-
Expedited Screening Procedures or the Expedited Screening Procedures,
Interconnection Studies will be required to evaluate the proposal. And,
if Upgrades are required, Queue Position may affect the Interconnection
Customer's cost responsibility for the Upgrades. This is because
Upgrades for interconnections higher in the queue may affect the need
for Upgrades for interconnections lower in the queue. This would impact
the cost of the interconnection for a particular Small Generator.
However, as such costs for Small Generating Facilities may be
relatively small or localized, we would permit the Interconnection
Customer to ask to be interconnected out of queue order if it agrees to
pay the full cost of the required Upgrades.
8. Parties to the Proposed SGIA (Proposed SGIA Article 9)
63. In general, the Commission does not address issues in this NOPR
that were treated in the Large Generator Interconnection Final Rule
unless parties propose that Small Generating Facilities be treated
differently. However, in the Small Generator ANOPR process, parties
raised this issue repeatedly, and for this reason the Commission
includes a discussion of the issue.
64. Representatives of Interconnection Customers and
representatives of Transmission Providers could not agree on whether
the Transmission Owner should be a signatory to the SGIA, if the
Transmission Provider and the Transmission Owner are different
entities. The Commission proposes here the same approach taken in the
Final Rule LGIA; that is, if the Transmission Owner is not also the
Transmission Provider, both parties should sign the SGIA. We believe
that this would better define the relationship among the Parties in one
document, protect the Interconnection Customer and, therefore,
facilitate the development of new generation resources. In an RTO or
[[Page 49982]]
ISO where the Transmission Provider is not the Transmission Owner, the
RTO's or ISO's compliance filing would be able to propose a modified
interconnection agreement that provides different respective rights and
obligations in the region. In other cases, we do not believe that the
three party agreement would create an undue burden for either entity.
Accordingly, the Commission proposes to require that both the
Transmission Owner and the Transmission Provider, if applicable, sign
the SGIA.
9. Affected Systems (Proposed SGIP Section 2.8)
65. The Coalition's proposal acknowledges that the interconnection
of a Small Generator with a Transmission Provider's Transmission System
may directly or indirectly affect other electric systems.
Interconnection Customers generally prefer that the Transmission
Provider be responsible for coordinating and performing all necessary
Interconnection Studies and equipment Upgrades with the owner or
operator of the Affected System.\32\ Interconnection Customers also
prefer that their interconnections not be made conditional on the
completion of these studies and Upgrades. Transmission Providers,
however, maintain that while they would use their best efforts to
coordinate and complete necessary Affected System Interconnection
Studies and Upgrades in time for the interconnection of a Small
Generator, they cannot compel the owner/operator of the Affected System
to perform within the specified time lines.
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\32\ The Proposed SGIA and the Proposed SGIP define Affected
System as ``an electric system other than the Transmission
Provider's Transmission System that may be affected by the proposed
interconnection.''
---------------------------------------------------------------------------
66. The Commission proposes to continue treating interconnection
and delivery as separate aspects of transmission service and allowing
Interconnection Customers to request interconnection separately from
the delivery component of transmission service. In the vast majority of
circumstances, interconnection alone is unlikely to affect the
reliability of another electric system, especially if the generator
being interconnected is a Small Generator. However, in those rare
instances in which the mere interconnection itself may cause a
reliability or safety problem on an Affected System, the Commission
proposes to adopt the approach of Order No. 888 for Upgrades required
to protect Affected Systems from reliability problems due to delivery
service.\33\ Under Order No. 888, the Transmission Provider is required
to assist the customer in coordinating with the Affected System any
Upgrades needed to protect the reliability of that system.\34\ Also, we
will allow the Transmission Provider to coordinate completion of
Network Upgrades to its own Transmission System with the completion of
the necessary Affected System Upgrades.\35\
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\33\ See section 21 of the OATT. See also Tampa Electric Co.,
103 FERC ] 61,047 (2003), and Nevada Power, 97 FERC ] 61,227 (2001),
reh'g denied, 99 FERC ] 61,347 (2002); but see American Electric
Power Service Corporation, 102 FERC ] 61,336 (2003).
\34\ Section 21.1 of the OATT states that: ``The Transmission
Provider will undertake reasonable efforts to assist the
Transmission Customer in obtaining such arrangements, including
without limitation, provide any information or data required by such
other electric system pursuant to Good Utility Practice.''
\35\ Section 21.2 of the OATT states that: ``Transmission
Provider shall have the right to coordinate construction on its own
system with the construction required by others. The Transmission
Provider, after consultation with the Transmission Customer and
representatives of such other systems, may defer construction of its
new transmission facilities, if the new transmission facilities on
another system cannot be completed in a timely manner.''
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67. Under Order No. 888, economic losses (i.e., extra generating
costs from having to redispatch generation) do not justify delaying the
provision of the delivery component of transmission service, and the
Commission proposes to adopt the same standard here for
interconnections. As mentioned in the OATT, the Commission's Dispute
Resolution Service is available should the Interconnection Customer
wish to challenge the Transmission Provider's decision to delay
construction pending completion of the Affected System's Upgrades.\36\
---------------------------------------------------------------------------
\36\ See Section 21.2 of the OATT.
---------------------------------------------------------------------------
68. We also note that NERC Planning Standards already provide that
Transmission Providers should work together to minimize effects on each
other's systems. Whenever a Transmission Provider adds its own new
generation to its Transmission System, it may cause reliability or
safety effects on other systems that require coordination with the
Affected Systems. A Transmission Provider must offer any
Interconnection Customer service that is comparable to the service it
provides for interconnections of its own generation.
69. The Commission notes that the proposed treatment of Affected
Systems is comparable to that contained in the Large Generator
Interconnection Final Rule and requests comments on if and why this
approach should be modified for Small Generator interconnections.
10. Pricing/Cost Recovery for Upgrades (Proposed SGIA Article 5)
70. The Commission's current interconnection pricing policy for
Transmission Systems that are operated by non-independent entities is
to allocate the costs of the new facilities based on whether they are
at or beyond the Point of Interconnection. Those transmission
facilities that are at or beyond the Point of Interconnection are
considered Network Upgrades, and are initially paid for by the
Interconnection Customer. The costs are then refunded to the
Interconnection Customer by the Transmission Provider in the form of
transmission credits (with interest), with the result being that the
costs of the Network Upgrades are rolled into the prices paid by all
transmission customers.\37\ Interconnection Facilities (meaning
facilities on the Generating Facility's side of the Point of
Interconnection) are considered sole use facilities and, accordingly,
are directly assigned to and paid for by the Interconnection
Customer.\38\ Consistent with the Large Generator Interconnection Final
Rule, we propose to retain this current pricing policy for Small
Generating Facilities interconnecting with a Transmission System
operated by a non-independent entity. The Commission seeks comments on
whether this approach is appropriate for Small Generator
interconnections. We also invite commenters to recount their recent
experiences with interconnecting distributed generators to the
Distribution System, in particular the process for determining whether
Distribution Upgrades were necessary, and the cost assignment of those
Upgrades.
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\37\ See Consumer Energy Co., 95 FERC ] 61,233, reh'g denied, 96
FERC ] 61,132 (2001).
\38\ See Public Service Company of Colorado, 59 FERC ] 61,311
(1992), reh'g denied, 62 FERC ] 61,013 (1993).
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71. For the Transmission Provider, such as an RTO or ISO, that is
an independent entity, our current policy, and the policy that we
adopted in the Large Generator Interconnection Final Rule, is to allow
flexibility regarding the interconnection pricing policy that an
independent entity may propose to adopt, subject to Commission
approval. Also in that Final Rule, we permitted a Regional State
Committee to establish criteria that an independent entity would use to
determine which transmission system upgrades, including those required
for generator interconnections, should be subject to incremental
pricing (``participant funding'') and which should not. The
[[Page 49983]]
Large Generator Interconnection Final Rule also permitted, for a period
of transition to the start of RTO or ISO operations, not to exceed a
year, participant funding to be used for Network Upgrades for a
generator interconnection as soon as an independent entity has been
approved by the Commission and the affected states. The Commission
proposes to adopt the same policies for Small Generating Facilities
that interconnect with a Transmission System operated by an independent
entity. We seek comments on whether this approach is appropriate for
Small Generating Facilities which interconnect to a Transmission
System.
72. Because a Small Generating Facility may interconnect to a
Transmission Provider's jurisdictional distribution facility for the
purpose of making a sale of electricity at wholesale in interstate
commerce, this NOPR also addresses cost recovery for Distribution
Upgrades at or beyond the Point of Interconnection.\39\ Consistent with
the Large Generator Interconnection Final Rule, we here propose that
the costs of Distribution Upgrades would be directly assigned to the
Interconnection Customer. This is because Distribution Upgrades do not
generally benefit all users. Distribution facilities generally deliver
electricity to particular localities, and do not serve a bulk delivery
service for the entire system as is the case for transmission
facilities. Accordingly, it is not appropriate that all users share the
cost of Distribution Upgrades. Rather, the Interconnection Customer
itself should be solely responsible for the cost of Distribution
Upgrades.
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\39\ The costs of all Interconnection Facilities, whether owned
by the Small Generator or the Transmission provider, are directly
assigned to the Interconnection Customer.
---------------------------------------------------------------------------
11. Liability, Indemnity, Force Majeure, and Insurance (Proposed SGIA
Articles 6.13, 6.14, and 6.16)
73. In the Large Generator Interconnection Final Rule, the
Commission adopted indemnification and Force Majeure provisions
different from those applied to transmission service that appear in the
OATT, and added a new provision limiting liability for consequential
damages. This NOPR proposes a similar approach. The Commission asks
commenters to address whether Small Generators should be treated
differently from Large Generators with respect to liability, indemnity,
and Force Majeure.\40\
---------------------------------------------------------------------------
\40\ The White Paper proposed that the Final Rule in Docket No.
RM01-12-000 would limit the Liability of Regional Transmission
Organizations, Independent System Operators, and transmission owners
that belong to RTOs and ISO.
---------------------------------------------------------------------------
74. Consistent with the Large Generator Interconnection Final Rule
that is being issued concurrently with the issuance of this NOPR, we
are including a provision in the proposed SGIA requiring the Parties to
maintain minimum insurance coverage. However, we are not proposing
specific coverage amounts in this NOPR. We request comments on whether
the Small Generator Interconnection Final Rule should also include an
insurance provision, and, if so, whether the provision should differ
from the one contained in the Final Rule LGIA, what kind of insurance
should be required, and at what level of coverage. Commenters should
address how best to balance any need for insurance against the costs of
insurance since such costs may discourage Small Generating Facilities
from participating in the wholesale market.
75. The Commission also asks commenters to address two other issues
regarding this proposed provision: first, should required insurance
coverage coincide with the size of the facility? For example, a 20 MW
generator would be subject to higher coverage amounts than a 10 MW
generator, which itself would be subject to higher coverage amounts
than a 5 MW generator. Similarly, should there be a megawatt cutoff
that would exempt certain Small Generators (e.g., those below a certain
size) from some or all of the minimum insurance requirements. Second,
should coverage types and amounts vary according to the type of
generator so that, for example, solar or wind facilities would require
different insurance coverages than gas-fired facilities.
12. Variations From the Final Rule on Compliance.
76. Regarding variations allowed from the Final Rule SGIP and Final
Rule SGIA, consistent with the approach adopted in the Large Generator
Interconnection Final Rule, we propose to apply a regional differences
rationale to accommodate variations from the Final Rule during
compliance, but with certain restrictions. We propose that a non-
independent transmission provider (such as a Transmission Provider that
owns generators or has Affiliates that own generators) and an RTO or
ISO should be treated differently because an independent RTO or ISO
does not raise the same level of concern regarding undue
discrimination. Accordingly, we propose to allow an RTO or ISO greater
flexibility than that allowed under the regional differences rationale
to propose variations from the Final Rule provisions, as further
discussed below.
77. Because we intend to supplement rather than supplant any
standardization work that regional reliability groups already have
undertaken regarding interconnection, we propose to permit a
Transmission Provider, on compliance, to offer variations based on
existing regional reliability requirements as part of its regional
differences justification. Because we seek greater standardization of
interconnection terms and conditions, we propose to permit a non-
independent Transmission Provider to use the regional differences
justification only due to established regional reliability standards.
78. For other proposed deviations from the Final Rule SGIP and
Final Rule SGIA not made in response to established regional
reliability requirements, we propose that a non-independent
transmission provider justify variations in non-price terms and
conditions of the Final Rule SGIP and Final Rule SGIA using the
approach taken in Order No. 888, which allows them to propose
variations on compliance that are ``consistent with or superior to''
the OATT.
79. To clarify, if on compliance a non-RTO or ISO Transmission
Provider offers a variation from the Final Rule SGIP and Final Rule
SGIA and the variation is in response to established (i.e., approved by
the Applicable Reliability Council) reliability requirements, then it
would have to justify its variation using the regional difference
rationale. If the variation is for any other reason, the non-RTO or ISO
Transmission Provider must present its justification for the variation
using the ``consistent with or superior to'' rationale that the
Commission applies to variations from the OATT in Order No. 888.
80. With respect to an RTO or ISO, at the time its compliance
filing is made, as discussed above, we propose to allow it to seek
``independent entity variations'' from the Final Rule pricing and non-
pricing provisions. This is a balanced approach that recognizes that an
RTO or ISO has different operating characteristics depending on its
size and location and is less likely to act in an unduly discriminatory
manner than a Transmission Provider that is a market participant. The
RTO or ISO therefore would have greater flexibility to customize its
interconnection procedures and agreements to fit regional needs.
81. Last, we invite comment on whether the proposed rule as drafted
makes adequate provision to meet the
[[Page 49984]]
needs of the breadth of small generation technologies and fuel types
(within the scope of those matters which are within the responsibility
of this agency).
B. Summary of the Proposed SGIP and the Proposed SGIA
1. Standard Small Generator Interconnection Procedures (Proposed SGIP)
82. The Proposed SGIP sets forth the procedures that
Interconnection Customers and Transmission Providers would be required
to follow during the interconnection process, culminating in the
signing of an interconnection agreement by the Parties.
83. Section 1. Definitions--Section 1 of the Proposed SGIP and
Article 1 of the Proposed SGIA contain defined terms. For the sake of
consistency, the proposed SGIP and proposed SGIA contain one common set
of terms.
84. Section 2. General Provisions--Proposed Section 2 contains
directions on which sections of the Proposed SGIP govern the
interconnection of various sizes of Small Generating Facilities. Site
Control, Material Modifications to a proposed Generating Facility, the
coordination of studies between the Transmission Provider and Affected
Systems, and the use of a single Point of Interconnection for multiple
generators are also addressed. The Transmission Provider shall maintain
records of all Interconnection Requests received, the times required to
complete Interconnection Request approvals and disapprovals, and
explanations for the actions taken on the Interconnection Requests.
85. Section 3. Super-Expedited Procedures for Interconnecting a
Small Generating Facility No Larger than 2 MW to a Low-Voltage
Transmission System \41\--The Transmission Provider shall use the
Super-Expedited Screening Criteria to evaluate Interconnection Requests
submitted under Section 3. Interconnection Customers whose
Interconnection Requests fail the Super-Expedited Screening Criteria
may request Additional Review and, if necessary, follow the procedures
specified in Section 4.
---------------------------------------------------------------------------
\41\ See Appendix A for a flowchart depicting this procedure.
---------------------------------------------------------------------------
86. Section 4. Procedures for Interconnecting a Small Generating
Facility to a High-Voltage Transmission System and a Small Generating
Facility Larger than 2 MW to a Low-Voltage Transmission System \42\--
Proposed Section 4.3 sets forth special Expedited Procedures for Small
Generating Facilities no larger than 10 MW interconnecting with Low-
Voltage Transmission Systems, using the Expedited Screening Criteria.
Proposed Section 4.4 describes queuing priority. Proposed Sections 4.5-
4.8 describe the accelerated procedures (as compared with the
procedures in the Large Generator Interconnection Final Rule) for
interconnecting Small Generating Facilities to High-Voltage
Transmission Systems and Small Generating Facilities Larger than 10 MW
to Low-Voltage Transmission Systems. These procedures include a Scoping
Meeting and various Interconnection Studies that are used to evaluate
Interconnection Requests.
---------------------------------------------------------------------------
\42\ See Appendix B for a flowchart depicting this procedure.
---------------------------------------------------------------------------
87. Charts--Charts include a diagram of a typical Small Generating
Facility installation and flowcharts depicting the Proposed Section 3
and Section 4 procedures.
88. Appendices--Appendix 1 lists the Super-Expedited Screening
Criteria that are applicable to the interconnection of Precertified
Small Generating Facilities no larger than 2 MW with Low-Voltage
Transmission Systems. Appendix 2 lists the Expedited Screening Criteria
that are applicable to the interconnection of Small Generating
Facilities no larger than 10 MW with Low-Voltage Transmission Systems.
Appendices 3-5 are pro forma agreements for the Interconnection
Feasibility Study, the Interconnection System Impact Study, and the
Interconnection Facilities Study, respectively. The Commission does not
expect that these agreements would be filed with the Commission when
executed. Appendix 6 is the standard Interconnection Request
(Application Form). Appendix 7 is the Standard Small Generator
Interconnection Agreement.
2. Standard Small Generator Interconnection Agreement (Proposed SGIA)
89. The Proposed SGIA sets forth the legal rights and obligations
of each Party, addresses cost responsibility issues, establishes
Milestones for the completion of the interconnection, and lays out a
process for the resolution of disputes.
90. Article 1. Definitions--Section 1 of the Proposed SGIP and
Article 1 of the Proposed SGIA contain defined terms. For the sake of
consistency, the Proposed SGIP and Proposed SGIA contain one common set
of terms.
91. Article 2. Scope and Limitations of Agreement--Proposed Article
2 describes responsibilities of the Parties to construct, interconnect,
operate, and maintain the Generating Facility and the Transmission
Provider's Transmission System.
92. Article 3. Inspection, Testing, Authorization, and Right of
Access--Proposed Article 3 describes Generating Facility testing and
inspection requirements. The Transmission Provider must provide written
authorization before the Interconnection Customer begins Parallel
Operation. Proposed Article 3 also gives the Transmission Provider
certain limited rights to access Interconnection Customer's property.
93. Article 4. Effective Date, Term, Termination, and
Disconnection--Proposed Article 4 describes the Term of the Proposed
SGIA and also addresses default (including cure), termination, and
temporary disconnection rights.
94. Article 5. Cost Responsibility, Milestones, Billing, and
Payment--Proposed Article 5 assigns financial responsibility for the
costs of owning, operating, maintaining, repairing, and replacing the
Interconnection Customer's Interconnection Facilities, and operating,
maintaining, repairing, and replacing Transmission Provider's
Interconnection Facilities. The Transmission Provider and the
Interconnection Customer shall agree on Milestones related to the
construction of the facilities for which each Party is responsible.
Financial security arrangements and billing and payment obligations
also are described.
95. Article 6. Miscellaneous--Proposed Article 6 contains a number
of provisions, including: that the laws of the state where the Point of
Interconnection is located will govern, the SGIA may be amended upon
agreement of the Parties as approved by the Commission, expectations
regarding system infrastructure and operational security, and
provisions for successors or assigns. Also included are provisions
governing rights of third party beneficiaries, waiver, notice and
communications between the Parties, severability, Force Majeure,
default, the use of subcontractors, consequential damages,
environmental releases, and insurance. Several of these provisions were
not included in the Coalition SGIAs. Commenters are requested to speak
to whether these provisions should be modified in the Final Rule SGIA
to accommodate the needs of Small Generators.
96. Article 7. Confidentiality--Proposed Article 7 describes how
Confidential Information must be treated by the Parties.
97. Article 8. Disputes--Proposed Article 8 describes the Dispute
Resolution procedure.
[[Page 49985]]
98. Article 9. Signatures--Proposed Article 9 provides for
signatures of the Interconnection Customer, Transmission Provider and,
if applicable, the Transmission Owner.
99. Appendices--The proposed SGIA includes the following additional
information: (1) Description and costs of the Generating Facility,
Interconnection Facilities, and metering equipment, (2) a one-line
diagram depicting the Generating Facility, Interconnection Facilities,
metering equipment, and Upgrades, (3) Milestones, (4) additional
operating requirements for the Transmission Provider's Transmission
System and Affected Systems needed to support the Interconnection
Customer's needs, and (5) the Transmission Provider's description of
its Network Upgrades and Distribution Upgrades and a best estimate of
their costs.
III. Public Reporting Burden and Information Collection Statement
100. The following collections of information contained in this
proposed rule are being submitted to the Office of Management and
Budget (OMB) for review under section 3507(d) of the Paperwork
Reduction Act of 1995. The Commission identifies the information
provided under part 35 as FERC-516A.
101. Comments are solicited on the Commission's need for this
information, whether the information would have practical use, the
accuracy of the provided burden estimates, ways to enhance the quality,
use, and clarity of the information to be collected, and any suggested
methods for minimizing respondents' burden, including the use of
automated information techniques. The following burden estimate
includes the cost of preparing and submitting tariff changes to comply
with the Commission's proposed regulation.
Public Reporting Burden:
Estimated Annual Burden
----------------------------------------------------------------------------------------------------------------
Number of Number of Hours Per Total Annual
Data Collection FERC-516A Respondents Responses Response Hours
----------------------------------------------------------------------------------------------------------------
Reporting....................................... 176 1 25 4,400
Recordkeeping................................... 176 1 2 352
Totals...................................... .............. .............. .............. 4,752
----------------------------------------------------------------------------------------------------------------
Total Annual Hours for Collection (Reporting + Recordkeeping) = 4,400
hours (176 respondents x 1 filing x 25 hours) + 352 hours (176
respondents x 1 filing x 2 hours to develop interconnection agreement
format) = 4,752 hours.
Information Collection Costs: The Commission seeks comment on the
costs to comply with these requirements. It has projected the average
annualized cost for all respondents to be:
Annualized Startup Costs--Staffing requirements to review and prepare
an interconnection agreement = $220,000 (176 respondents x $1,250 (25
hours @ $50 hourly rate)).
Annualized Costs (Operation & Maintenance)--The cost is equal to $5,984
(176 respondents x $34 (2 hours @ $17 hourly rate).
Total Annualized Costs (Startup and O&M) = $225,984.
102. OMB regulations require OMB to approve certain information
collection requirements imposed by agency rule. 5 CFR 1320.11.
Accordingly, pursuant to OMB regulations, the Commission is providing
notice of its proposed information collections to OMB.
Title: FERC-516A, Small Generator Interconnection Procedures and
Agreement.
Action: Proposed Data Collections.
OMB Control No: To be determined.
The Applicant shall not be penalized for failure to respond to this
collection of information unless the collection of information displays
a valid OMB control number.
Respondents: Business or other for profit.
Frequency of Responses: One-time implementation.
Necessity of Information: The proposed rule would revise the
reporting requirements contained in 18 CFR part 35. The Commission is
proposing a standard SGIP and standard SGIA that public utilities must
adopt. The adoption of these procedures and agreement will: (1) Reduce
interconnection time and costs for Interconnection Customers and
Transmission Providers, (2) limit opportunities for Transmission
Providers to favor their own generation, (3) ease entry for new
generation, and (4) encourage needed investment in the generation and
transmission infrastructure.
103. Interconnection plays a growing crucial role in bringing much
needed generation into the market to meet the needs of electricity
customers. However, requests for interconnection frequently result in
complex technical disputes about interconnection feasibility, cost and
cost responsibility. The Commission expects that a standard SGIP and
standard SGIA will reduce interconnection costs and time for
Interconnection Customers and Transmission Providers, resolve most
interconnection disputes, minimize opportunities for undue
discrimination, foster increased development of economic generation,
and improve system reliability.
104. Internal Review: The Commission has assured itself, by means
of internal review, that there is specific, objective support for the
burden estimates associated with the information requirements. The
Commission's Office of Markets, Tariffs and Rates will use the data
included in filings under section 203 and 205 of the Federal Power Act
to evaluate efforts for the interconnection and coordination of the
U.S. electric transmission system and to ensure the orderly
implementation of the interconnection procedures and interconnection
agreement as well as for general industry oversight. These information
requirements conform to the Commission's plan for efficient information
collection, communication, and management within the electric power
industry.
105. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426 [Attention:
Michael Miller, Office of the Executive Director, Phone: (202) 502-
8415, fax: (202) 273-0873, E-mail: michael.miller@ferc.gov. 106. For submitting comments concerning the collection of
information(s) and the associated burden estimate(s), please send your
comments to the contact listed above and to the Office of Management
and Budget, Attention: Desk Officer for the Federal Energy Regulatory
Commission, fax: (202) 395-7285, e-mail pamelabeverly@oirasubmission
@omb.eop.gov.
[[Page 49986]]
IV. Environmental Analysis
107. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment.\43\ The
Commission concludes that promulgating the proposed rule would not
present a major federal action having a significant adverse impact on
the human environment under the Commission's regulations implementing
the National Environmental Policy Act.\44\ The proposed rule falls
within the categorical exemption provided in the Commission's
regulations for approval of actions under section 205 of the Federal
Power Act relating to the filing of schedules containing all rates and
charges for any transmission or sale for resale subject to the
Commission's jurisdiction, plus the classification, practices,
contracts and regulations that affect rates, charges, classifications
and services.\45\ Consequently, neither an environmental assessment nor
an environmental impact statement is required.
---------------------------------------------------------------------------
\43\ Order No. 486, Regulations Implementing the National
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. &
Regs. Preambles 1986-1990 ] 30,783 (1987).
\44\ 18 CFR part 380 (2003).
\45\ 18 CFR 380.4(a)(15)(16) (2003).
---------------------------------------------------------------------------
V. Regulatory Flexibility Act Certification
108. The Regulatory Flexibility Act of 1980 (RFA) \46\ generally
requires a description and analysis of proposed rules that will have
significant economic impact on a substantial number of small entities.
This rule applies to public utilities that own, control or operate
interstate transmission facilities, not to electric utilities per se.
The total number of public utilities that, absent waiver, would have to
modify their current open access transmission tariffs by filing the
Interim Tariff is 176.\47\ Of these only 6 public utilities, or less
than two percent, dispose of 4 million MWh or less per year.\48\ The
Commission does not consider this a substantial number, and in any
event, these small entities may seek waiver of these requirements.\49\
---------------------------------------------------------------------------
\46\ 5 U.S.C. 601-612 (2000).
\47\ The sources for this figure are FERC Form No. 1 and FERC
Form No. 1-F data.
\48\ Id.
\49\ The Regulatory Flexibility Act defines a ``small entity''
as ``one which is independently owned and operated and which is not
dominant in its field of operation.'' See 5 U.S.C. 601(3) and 601(6)
(2000); 15 U.S.C. 632(a)(1) (2000). In Mid-Tex Elec. Coop. v. FERC,
773 F.2d 327, 340-343 (DC Cir. 1985), the court accepted the
Commission's conclusion that, since virtually all of the public
utilities that it regulates do not fall within the meaning of the
term ``small entities'' as defined in the Regulatory Flexibility
Act, the Commission did not need to prepare a regulatory flexibility
analysis in connection with its proposed rule governing the
allocation of costs for construction work in progress (CWIP). The
CWIP rules applied to all public utilities. The Small Generator
interconnection rules will apply only to those public utilities that
own, control or operate interstate transmission facilities. These
entities are a subset of the group of public utilities found not to
require preparation of a regulatory flexibility analysis for the
CWIP rule.
---------------------------------------------------------------------------
VI. Comment Procedures
109. The Commission invites interested persons to submit comments
on the matters and issues proposed in this notice to be adopted,
including any related matters or alternative proposals that commenters
may wish to discuss.
110. Comments are due October 3, 2003. Comments must refer to
Docket No. RM02-12-000, and must include the commenter's name, the
organization they represent, if applicable, and their address. Comments
may be filed either in electronic or paper format. Comments should be
double spaced and include an executive summary.
111. To facilitate the Commission's review of the comments,
commenters are requested to identify each specific issue posed by the
NOPR that their discussion addresses and to use headings that clearly
identify the relevant Proposed SGIA article and Proposed SGIP section.
Additional issues that commenters wish to raise should be identified
separately. The Commission also invites commenters to explain the
rationale for their support for any proposal in this NOPR.
112. Comments may be filed electronically via the eFiling link on
the Commission's Web site at http://www.ferc.gov. The Commission
accepts most standard word processing formats, and commenters may
attach additional files with supporting information in certain other
file formats. Commenters filing electronically do not need to make a
paper filing. Commenters that are not able to file comments
electronically must send an original and 14 copies of their comments
to: Federal Energy Regulatory Commission, Office of the Secretary, 888
First Street NE., Washington, DC 20426.
113. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VII. Document Availability
114. In addition to publishing the full text of this document in
the Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through FERC's Home page (http://www.ferc.gov) and in FERC's
Public Reference Room during normal business hours (8:30 a.m. to 5 p.m.
Eastern time) at 888 First Street, NE., Room 2A, Washington, DC 20426.
115. From FERC's Home page on the Internet, this information is
available in the Federal Energy Regulatory Records Information System
(FERRIS). The full text of this document is available on FERRIS in PDF
and WordPerfect format for viewing, printing, and/or downloading. To
access this document in FERRIS, type the docket number excluding the
last three digits of this document in the docket number field.
116. User assistance is available for FERRIS and the FERC's Web
site during normal business hours from our Help line at (202) 502-8222
or the Public Reference Room at (202) 502-8371 Press 0, TTY (202) 502-
8659. E-Mail the Public Reference Room at
public.referenceroom@ferc.gov.
List of Subjects in 18 CFR Part 35
Electric power rates, Electric utilities, Reporting and
recordkeeping requirements.
By direction of the Commission.
Magalie R. Salas,
Secretary.
In consideration of the foregoing, the Commission proposes to amend
Part 35, Chapter I, Title 18, Code of Federal Regulations, as follows:
PART 35--FILING OF RATE SCHEDULES
1. The authority citation for part 35 continues to read as follows:
Authority: 16 U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
2. In Sec. 35.28, paragraph (g) is added to read as follows:
Sec. 35.28 Non-discriminatory open access transmission tariff.
* * * * *
(g) Standard interconnection procedures and agreement for small
generators.
(1) Every public utility that is required to have on file a non-
discriminatory open access transmission tariff under this section must
amend such tariff by adding the standard small generator
interconnection procedures and agreement contained in Order
[[Page 49987]]
No.--------, FERC Stats. & Regs. ] -------- (Final Rule on Small
Generator Interconnection) or such other small generator
interconnection procedures and agreement as may be approved by the
Commission consistent with Order No. --------, FERC Stats. & Regs. ] --
------ (Final Rule on Small Generator Interconnection).
(i) The amendment required by this paragraph (g)(1) must be filed
no later than [insert date that is 60 days after the effective date of
the Final Rule].
(ii) Any public utility that seeks a deviation from the standard
interconnection procedures and agreement contained in Order No. ------
--, FERC Stats. & Regs. ] -------- (Final Rule on Small Generator
Interconnection), must demonstrate that the deviation is consistent
with the principles of Order No. --------, FERC Stats. & Regs. ] ------
-- (Final Rule on Small Generator Interconnection).
(2) The non-public utility procedures for tariff reciprocity
compliance described in paragraph (e) of this section are applicable to
the standard small generator interconnection procedures and agreement.
Note: The following appendices will not be published in the Code
of Federal Regulations
BILLING CODE 6718-01-P
[GRAPHIC] [TIFF OMITTED] TP19AU03.001
[[Page 49988]]
[GRAPHIC] [TIFF OMITTED] TP19AU03.002
[[Page 49989]]
BILLING CODE 6718-01-C
Appendix C to the Small Generator Interconnection Preamble
Standard Small Generator Interconnection Procedures (SGIP) Including
Standard Small Generator Interconnection Agreement (SGIA)
(Applicable To Generating Facilities No Larger Than 20 MW)
Table of Contents
Section 1. Definitions
Section 2. General Provisions
Section 3. Super-Expedited Procedures for Interconnecting a Small
Generating Facility No Larger than 2 MW to a Low-Voltage
Transmission System
3.1 Precertification
3.2 Interconnection Request
3.3 Initial Review
3.4 Additional Review
3.5 Interconnection of the Generating Facility
Section 4. Procedures for Interconnecting a Small Generating
Facility to a High-Voltage Transmission System and a Small
Generating Facility Larger than 2 MW to a Low-Voltage Transmission
System
4.1 General
4.2 Interconnection Request
4.3 Expedited Procedures for a Small Generating Facility No
Larger than 10 MW Interconnecting with Transmission Provider's Low-
Voltage Transmission System and a Small Generating Facility Failing
the Super-Expedited Procedures
4.4 Queuing Priority
4.5 Scoping Meeting
4.6 Interconnection Feasibility Study
4.7 Interconnection System Impact Study
4.7.1 General
4.7.2 Distribution Interconnection System Impact Study
4.7.3 Transmission Interconnection System Impact Study
4.7.4 Coordinated Transmission and Distribution System Impact
Studies
4.7.5 Interconnection System Impact Study Cost Sharing
4.8 Interconnection Facilities Study
4.9 Interconnection of the Generating Facility
Charts
Chart 1--Diagram of a Typical Small Generating Facility
Installation
Chart 2--Flow Chart of Super-Expedited Procedures for
Interconnecting a Small Generating Facility No Larger than 2 MW to a
Low-Voltage Transmission System
Chart 3--Flow Chart of Procedures for Interconnecting a Small
Generating Facility to a High-Voltage Transmission System and a
Small Generating Facility Larger than 2 MW to a Low-Voltage
Transmission System
Appendices
Appendix 1--Super-Expedited Screening Criteria
Appendix 2--Expedited Screening Criteria
Appendix 3--Interconnection Feasibility Study Agreement
Appendix 4--Interconnection System Impact Study Agreement
Appendix 5--Interconnection Facilities Study Agreement
Appendix 6--Small Generating Facility Interconnection Request
(Application Form)
Appendix 7--Standard Small Generator Interconnection Agreement
Section 1. Definitions
When used with initial capitalization, the following terms shall
have the meanings specified or referred to below. Terms used in this
document with initial capitalization that are not defined below
shall have the meanings specified in the section in which they are
used or as specified in the Transmission Provider's Open Access
Transmission Tariff (OATT), as may be amended from time to time.
Additional Review shall mean a technical evaluation by the
Transmission Provider of a proposed interconnection that has failed
to pass the Super-Expedited Screening Criteria. The review will
determine whether minor modifications to the Transmission Provider's
Transmission System (e.g., changing meters, fuses, relay settings)
can be performed in order to enable the interconnection to be made
safely and reliably.
Adverse System Impact shall mean the negative effects due to
technical or operational limits on conductors or equipment being
exceeded that may compromise the safety and reliability of the
electric system.
Affected System shall mean an electric system other than the
Transmission Provider's Transmission System that may be affected by
the proposed interconnection.
Affiliate shall mean, with respect to a corporation, partnership
or other entity, each such other corporation, partnership or other
entity that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common
control with, such corporation, partnership or other entity.
Applicable Laws and Regulations shall mean all duly promulgated
applicable Federal, State and local laws, regulations, rules,
ordinances, codes, decrees, judgments, directives, or judicial or
administrative orders, permits and other duly authorized actions of
any Governmental Authority.
Breach shall mean the failure of a Party to perform or observe
any material term or condition of the Standard Small Generator
Interconnection Agreement.
Breaching Party shall mean a Party that is in Breach of the
Standard Small Generator Interconnection Agreement.
Business Day shall mean Monday through Friday, excluding Federal
Holidays.
Calendar Day shall mean any day including Saturday, Sunday or a
Federal Holiday.
Commercial Operation Date of a unit shall mean the date on which
the Interconnection Customer commences commercial operation of the
unit at the Generating Facility after testing of such unit has been
completed.
Confidential Information shall mean any confidential,
proprietary or trade secret information of a plan, specification,
pattern, procedure, design, device, list, concept, policy or
compilation relating to the present or planned business of a Party,
which is designated as confidential by the Party supplying the
information, whether conveyed orally, electronically, in writing,
through inspection, or otherwise.
Control Area shall mean an electrical system or systems bounded
by interconnection metering and telemetry, capable of controlling
generation to maintain its interchange schedule with other Control
Areas and contributing to frequency regulation of the
interconnection. A Control Area must be certified by NERC.
Default shall mean the failure of a Breaching Party to cure its
Breach in accordance with Article 6.17 of the Standard Small
Generator Interconnection Agreement.
Dispute Resolution shall mean the procedure for resolution of a
dispute between the Parties in which they will first attempt to
resolve the dispute on an informal basis.
Distribution System shall mean the Transmission Provider's
facilities and equipment used to transmit electricity to ultimate
usage points such as homes and industries directly from nearby
generators or from interchanges with higher voltage transmission
networks which transport bulk power over longer distances. The
voltage levels at which Distribution Systems operate differ among
areas.
Distribution Upgrades shall mean the additions, modifications,
and upgrades to the Transmission Provider's Distribution System at
or beyond the Point of Interconnection to facilitate interconnection
of the Generating Facility and render the transmission service
necessary to effect Interconnection Customer's wholesale sale of
electricity in interstate commerce. Distribution Upgrades do not
include Interconnection Facilities.
Effective Date shall mean the date on which the Standard Small
Generator Interconnection Agreement becomes effective upon execution
by the Parties subject to acceptance by the Commission, or if filed
unexecuted, upon the date specified by the Commission.
Emergency Condition shall mean a condition or situation: (1)
That in the judgement of the Party making the claim is imminently
likely to endanger life or property, or (2) that, in the case of a
Transmission Provider, is imminently likely (as determined in a non-
discriminatory manner) to cause a material adverse effect on the
security of, or damage to Transmission Provider's Transmission
System, Transmission Provider's Interconnection Facilities or the
electric systems of others to which the Transmission Provider's
Transmission System is directly connected, or (3) that, in the case
of Interconnection Customer, is imminently likely (as determined in
a non-discriminatory manner) to cause a material adverse effect on
the security of, or damage to, the Generating Facility or
Interconnection Customer's Interconnection Facilities. System
restoration and black start shall be considered Emergency
Conditions; provided, that the Interconnection Customer is not
obligated by the Standard Small Generator Interconnection Agreement
to possess black start capability.
Environmental Law shall mean Applicable Laws or Regulations
relating to pollution or protection of the environment or natural
resources.
[[Page 49990]]
Expedited Procedures shall mean the process described in the
Standard Small Generator Interconnection Procedures for (1) a
Generating Facility no larger than 10 MW interconnecting with a
Transmission Provider's Low-Voltage Transmission System, and (2) a
Generating Facility failing the Super-Expedited Procedures. The
Expedited Procedures use the Expedited Screening Criteria to
determine whether the Small Generating Facility can be
interconnected without any further Interconnection Studies.
Expedited Screening Criteria shall mean the technical variables
that are employed in the Expedited Procedures for evaluating the
impact of interconnecting the Small Generating Facility to the
Transmission Provider's Transmission System as it exists at the time
of the analysis.
Fault Current shall mean the current that is produced by an
electrical fault, such as single-phase to ground, double-phase to
ground, three-phase to ground, phase-to-phase, and three-phase. The
Fault Current is several times larger in magnitude than the current
that normally flows through a circuit. A protective device must be
able to interrupt this Fault Current within a few cycles. The Fault
Current increases when a new generator is interconnected.
Federal Power Act shall mean the Federal Power Act, as amended,
16 U.S.C. 791a et seq.
FERC shall mean the Federal Energy Regulatory Commission
(Commission) or its successor.
Force Majeure shall mean any act of God, labor disturbance, act
of the public enemy, war, insurrection, riot, fire, storm or flood,
explosion, breakage or accident to machinery or equipment, any
order, regulation or restriction imposed by governmental, military
or lawfully established civilian authorities, or any other cause
beyond a Party's control. A Force Majeure event does not include an
act of negligence or intentional wrongdoing.
Generating Facility shall mean Interconnection Customer's device
for the production of electricity identified in the Interconnection
Request, but shall not include the Interconnection Customer's
Interconnection Facilities.
Generating Facility Capacity shall mean the net capacity of the
Generating Facility and the aggregate net capacity of the Generating
Facility where it includes multiple energy production devices.
Good Utility Practice shall mean any of the practices, methods
and acts engaged in or approved by a significant portion of the
electric industry during the relevant time period, or any of the
practices, methods and acts which, in the exercise of reasonable
judgment in light of the facts known at the time the decision was
made, could have been expected to accomplish the desired result at a
reasonable cost consistent with good business practices,
reliability, safety and expedition. Good Utility Practice is not
intended to be limited to the optimum practice, method, or act to
the exclusion of all others, but rather to be acceptable practices,
methods, or acts generally accepted in the region.
Governmental Authority shall mean any federal, state, local or
other governmental regulatory or administrative agency, court,
commission, department, board, or other governmental subdivision,
legislature, rulemaking board, tribunal, or other governmental
authority having jurisdiction over the Parties, their respective
facilities, or the respective services they provide, and exercising
or entitled to exercise any administrative, executive, police, or
taxing authority or power; provided, however, that such term does
not include Interconnection Customer, Transmission Provider, or any
Affiliate thereof.
Hazardous Substances shall mean any chemicals, materials or
substances defined as or included in the definition of ``hazardous
substances,'' ``hazardous wastes,'' ``hazardous materials,''
``hazardous constituents,'' ``restricted hazardous materials,''
``extremely hazardous substances,'' ``toxic substances,''
``radioactive substances,'' ``contaminants,'' ``pollutants,''
``toxic pollutants'' or words of similar meaning and regulatory
effect under any applicable Environmental Law, or any other
chemical, material or substance, exposure to which is prohibited,
limited or regulated by any applicable Environmental Law.
High-Voltage shall mean voltage levels at or above 69 kV.
IEEE shall mean the Institute of Electrical and Electronics
Engineers.
Initial Review shall mean the Transmission Provider's review of
the Interconnection Customer's Interconnection Request using the
Super-Expedited Screening Criteria described in Section 3 of the
Standard Small Generator Interconnection Procedures.
In-Service Date shall mean the date upon which the
Interconnection Customer reasonably expects it will be ready to
begin use of the Transmission Provider's Interconnection Facilities
to obtain back feed power.
Interconnection Customer shall mean any entity, including the
Transmission Provider, Transmission Owner or any of the Affiliates
or subsidiaries of either, that proposes to interconnect its
Generating Facility with the Transmission Provider's Transmission
System.
Interconnection Customer's Interconnection Facilities shall mean
all facilities and equipment, as identified in Appendix 2 of the
Standard Small Generator Interconnection Agreement, that are located
between the Generating Facility and the Point of Change of
Ownership, including any modification, addition, or upgrades to such
facilities and equipment necessary to physically and electrically
interconnect the Generating Facility to the Transmission Provider's
Transmission System. Interconnection Customer's Interconnection
Facilities are sole use facilities.
Interconnection Facilities shall mean the Transmission
Provider's Interconnection Facilities and the Interconnection
Customer's Interconnection Facilities. Collectively, Interconnection
Facilities include all facilities and equipment between the
Generating Facility and the Point of Interconnection, including any
modification, additions or upgrades that are necessary to physically
and electrically interconnect the Generating Facility to the
Transmission Provider's Transmission System. Interconnection
Facilities are sole use facilities and shall not include
Distribution Upgrades or Network Upgrades.
Interconnection Facilities Study shall mean a study conducted by
the Transmission Provider or a third party consultant for the
Interconnection Customer to determine a list of facilities
(including Transmission Provider's Interconnection Facilities and
Network Upgrades as identified in the Interconnection System Impact
Study), the cost of those facilities, and the time required to
interconnect the Generating Facility with the Transmission
Provider's Transmission System. The scope of the study is defined
the Standard Small Generator Interconnection Procedures.
Interconnection Facilities Study Agreement shall mean the form
of agreement contained in Appendix 5 of the Standard Small Generator
Interconnection Procedures for conducting the Interconnection
Facilities Study.
Interconnection Feasibility Study shall mean a preliminary
evaluation of the system impact and cost of interconnecting the
Generating Facility to the Transmission Provider's Transmission
System, the scope of which is described in the Standard Small
Generator Interconnection Procedures.
Interconnection Feasibility Study Agreement shall mean the form
of agreement contained in Appendix 3 of the Standard Small Generator
Interconnection Procedures for conducting the Interconnection
Feasibility Study.
Interconnection Request shall mean an Interconnection Customer's
request, in the form of Appendix 6 to the Standard Small Generator
Interconnection Procedures, in accordance with the Tariff, to
interconnect a new Generating Facility, or to increase the capacity
of, or make a Material Modification to the operating characteristics
of, an existing Generating Facility that is interconnected with the
Transmission Provider's Transmission System.
Interconnection Service shall mean the service provided by the
Transmission Provider associated with interconnecting the
Interconnection Customer's Generating Facility to the Transmission
Provider's Transmission System and enabling it to receive electric
energy and capacity from the Generating Facility at the Point of
Interconnection, pursuant to the terms of the Standard Small
Generator Interconnection Agreement and, if applicable, the
Transmission Provider's Tariff.
Interconnection Study shall mean any of the following studies:
the Interconnection Feasibility Study, the Interconnection System
Impact Study, and the Interconnection Facilities Study described in
the Standard Small Generator Interconnection Procedures.
Interconnection System Impact Study shall mean an engineering
study that evaluates the impact of the proposed interconnection on
the safety and reliability of Transmission Provider's Transmission
System and, if applicable, an Affected System. The study shall
identify and detail the system impacts that would result if the
Generating Facility
[[Page 49991]]
were interconnected without project modifications or system
modifications, focusing on the Adverse System Impacts identified in
the Interconnection Feasibility Study, or to study potential
impacts, including but not limited to those identified in the
Scoping Meeting as described in the Standard Small Generator
Interconnection Procedures.
Interconnection System Impact Study Agreement shall mean the
form of agreement contained in Appendix 4 of the Standard Small
Generator Interconnection Procedures for conducting the
Interconnection System Impact Study.
Large Generating Facility shall mean a Generating Facility
having a Generating Facility Capacity of more than 20 MW.
Low-Voltage shall mean voltage levels below 69 kV.
Material Modification shall mean a modification that has a
material impact on the cost or timing of any Interconnection Request
with a later queue priority date.
Milestones shall mean the events and associated dates listed in
Appendix 3 of the Standard Small Generator Interconnection
Agreement. The Milestones describe events that are to be met by
either Party as the Generating Facility proceeds to interconnection
and Parallel Operation.
MW shall mean the abbreviation for megawatts, which is used to
describe the capacity of a generating facility.
NERC shall mean the North American Electric Reliability Council
or its successor organization.
Network Upgrades shall mean the additions, modifications, and
upgrades to the Transmission Provider's Transmission System required
at or beyond the point at which the Interconnection Customer
interconnects to the Transmission Provider's Transmission System to
accommodate the interconnection of the Generating Facility to the
Transmission Provider's Transmission System.
Operating Requirements shall mean any operating and technical
requirements that may be applicable due to Regional Transmission
Organization, Independent System Operator, Control Area, or
Transmission Provider requirements, including those set forth in
Appendix 4 of the Standard Small Generator Interconnection
Agreement.
Parallel Operation shall mean the two-way flow of power between
a generator and a Transmission System. Generators that operate in
parallel with a Transmission System require additional protection
and control devices. This may be contrasted with a stand-alone
generator that operates isolated from the utility company's electric
system.
Party or Parties shall mean Transmission Provider, Transmission
Owner, Interconnection Customer or any combination of the above.
Point of Change of Ownership shall mean the point, as set forth
in Appendix 2 of the Standard Small Generator Interconnection
Agreement, where the Interconnection Customer's Interconnection
Facilities connect to the Transmission Provider's Interconnection
Facilities.
Point of Common Coupling shall mean the point in the
interconnection of the Generating Facility with Transmission
Provider's Transmission System at which the harmonic limits are
applied.
Point of Interconnection shall mean the point, as set forth in
Appendix 2 of the Standard Small Generator Interconnection
Agreement, where the Interconnection Facilities connect to the
Transmission Provider's Transmission System.
Precertified shall describe a Generating Facility if an
identical sample of the manufacturer's model has been submitted to a
national testing laboratory and found, after appropriate testing, to
be in compliance with applicable consensus industry operational and
safety standards.
Queue Position shall mean the order of a valid Interconnection
Request, relative to all other pending valid Interconnection
Requests, that is established based upon the date and time of
receipt of the valid Interconnection Request by the Transmission
Provider.
Reasonable Efforts shall mean, with respect to an action
required to be attempted or taken by a Party under the Standard
Small Generator Interconnection Agreement, efforts that are timely
and consistent with Good Utility Practice and are otherwise
substantially equivalent to those a Party would use to protect its
own interests.
Rules shall mean the rules promulgated by FERC relating to the
interconnection of generators.
Scoping Meeting shall mean the meeting between representatives
of the Interconnection Customer and Transmission Provider conducted
for the purpose of discussing alternative interconnection options,
to exchange information including any transmission data and earlier
study evaluations that would be reasonably expected to impact such
interconnection options, to analyze such information, and to
determine the potential feasible Points of Interconnection.
Secondary Network shall mean a type of Low-Voltage electric
system that is generally used in large metropolitan areas that are
densely populated in order to provide high reliability of service
(also known as secondary grid network or area network).
Site Control shall mean documentation reasonably demonstrating:
(1) ownership of, a leasehold interest in, or a right to develop a
site for the purpose of constructing the Generating Facility, (2) an
option to purchase or acquire a leasehold site for such purpose, or
(3) an exclusivity or other business relationship between the
Interconnection Customer and the entity having the right to sell,
lease or grant the Interconnection Customer the right to possess or
occupy a site for such purpose.
Small Generating Facility shall mean a Generating Facility
having a Generating Facility Capacity of no more than 20 MW.
Standard Small Generator Interconnection Agreement (SGIA) shall
mean the form of interconnection agreement applicable to an
Interconnection Request pertaining to a Small Generating Facility,
that is included in the Transmission Provider's Tariff.
Standard Small Generator Interconnection Procedures (SGIP) shall
mean the interconnection procedures applicable to an Interconnection
Request pertaining to a Small Generating Facility that are included
in the Transmission Provider's Tariff.
Spot Network shall mean a type of Low-Voltage system found
within modern commercial buildings to provide high reliability of
service. Spot Networks generally use 12 kV to 480/277 volt vaults on
site.
Super-Expedited Procedures shall mean the process described in
Section 3 of the Standard Small Generator Interconnection Procedures
for Generating Facilities no larger than 2 MW interconnecting with
Transmission Provider's Low-Voltage Transmission System. The Super-
Expedited Procedures use the Super-Expedited Screening Criteria to
determine whether the proposed interconnection may cause an Adverse
System Impact on Transmission Provider's Transmission System.
Super-Expedited Screening Criteria shall mean the technical
variables that are employed in the Super-Expedited Procedures for
evaluating the interconnection of a Small Generating Facility no
larger than 2 MW to a Transmission Provider's Low-Voltage
Transmission System.
System Protection Facilities shall mean the equipment, including
necessary protection signal communications equipment, required to
protect (1) the Transmission Provider's Transmission System from
faults or other electrical disturbances occurring at the Generating
Facility and (2) the Generating Facility from faults or other
electrical system disturbances occurring on the Transmission
Provider's Transmission System or on other delivery systems or other
generating systems to which the Transmission Provider's Transmission
System is directly connected.
Tariff shall mean the Transmission Provider's Tariff through
which open access transmission service and Interconnection Service
are offered, as filed with the FERC, and as amended or supplemented
from time to time, or any successor tariff.
Technical Master shall mean a person, as described in Article 8
of the Standard Small Generator Interconnection Agreement, with
relevant technical experience selected to adjudicate disputes
between the Parties.
Term shall mean the duration of the Standard Small Generator
Interconnection Agreement.
Transmission Owner shall mean an entity that owns, leases or
otherwise possesses an interest in the portion of the Transmission
System at the Point of Interconnection and may be a Party to the
Standard Small Generator Interconnection Agreement to the extent
necessary.
Transmission Provider shall mean the public utility (or its
designated agent) that owns, controls, or operates transmission or
distribution facilities used for the transmission of electricity in
interstate commerce and provides transmission service under the
Tariff. The term Transmission Provider should be read to include the
Transmission Owner when the Transmission Owner is separate from the
Transmission Provider.
Transmission Provider's Interconnection Facilities shall mean
all facilities and equipment owned, controlled, or operated by the
Transmission Provider from the Point of
[[Page 49992]]
Change of Ownership to the Point of Interconnection as identified in
Appendix 2 of the Standard Small Generator Interconnection
Agreement, including any modifications, additions or upgrades to
such facilities and equipment. The Transmission Provider's
Interconnection Facilities are sole use facilities and shall not
include Distribution Upgrades or Network Upgrades.
Transmission System shall mean the facilities owned, controlled
or operated by the Transmission Provider or Transmission Owner that
are used to provide transmission service under the Tariff.
Upgrades shall mean the required additions and modifications to
the Transmission Provider's Transmission System at or beyond the
Point of Interconnection. Upgrades may be Network Upgrades or
Distribution Upgrades. Upgrades do not include Interconnection
Facilities.
Section 2. General Provisions
2.1 An Interconnection Request to interconnect a Generating
Facility no larger than 2 MW with Transmission Provider's Low-
Voltage Transmission System shall be evaluated under the Super-
Expedited Procedures set forth in Section 3 of these Procedures. If
the Generating Facility fails to pass the procedures set forth in
Section 3, it may then be evaluated pursuant to Section 4 of these
Procedures.
2.2 An Interconnection Request to interconnect: (1) A Generating
Facility larger than 2 MW but no larger than 20 MW with Transmission
Provider's Low-Voltage Transmission System, or (2) a Generating
Facility with Transmission Provider's High-Voltage Transmission
System, or (3) a Generating Facility that does not pass the Super-
Expedited Procedures as set forth in Section 3 of these Procedures,
shall be evaluated pursuant to Section 4 of these Procedures.
2.3 If the Interconnection Request is for a Generating Facility
that includes multiple energy production devices at a site for which
Interconnection Customer seeks a single Point of Interconnection,
the Interconnection Request shall be evaluated on the basis of the
aggregate capacity of the multiple devices.
2.4 If the Interconnection Request is for an increase in
capacity for an existing Generating Facility, the Interconnection
Request shall be evaluated on the basis of the new total capacity of
the Generating Facility.
2.5 Transmission Provider shall maintain records of all
Interconnection Requests received, the times required to complete
Interconnection Request approvals and disapprovals, and
justifications for the actions taken on the Interconnection
Requests. Transmission Provider shall keep such records on file for
three years.
2.6 To assist a prospective Interconnection Customer,
Transmission Provider shall designate a contact person from whom
information on the Interconnection Request and about Transmission
Provider's Transmission System can be obtained through informal
requests regarding a proposed project. Such information should
include studies and other materials useful to an understanding of
the feasibility of an interconnection at a particular point on
Transmission Provider's Transmission System, except to the extent
providing such materials would violate security requirements or
confidentiality agreements, or be contrary to law or the
Commission's Regulations. Transmission Provider shall comply with
reasonable requests for access to or copies of such studies.
2.7 Transmission Provider shall coordinate the conduct of any
studies required to determine the impact of the Interconnection
Request on Affected Systems and include those results in the
applicable study within the time frame specified in these
procedures. Transmission Provider shall include Affected System
representatives in all meetings held with Interconnection Customer
as required by these procedures. Interconnection Customer shall
cooperate with Transmission Provider in all matters related to the
conduct of studies and the determination of modifications to
Affected Systems. An Affected System that is a Transmission Provider
itself shall cooperate with Transmission Provider in all matters
related to the conduct of studies and the determination of
modifications to Affected Systems. In no instance shall the
processing of the Interconnection Request be delayed as a result of
inaction by an Affected System.
2.8 Once an Interconnection Request is deemed complete, any
Material Modification to the proposed Generating Facility,
Interconnection Customer's Interconnection Facilities, or site of
the interconnection not agreed to in writing by Transmission
Provider, shall require submission of a new Interconnection Request.
2.9 Proof of Site Control for the Generating Facility shall be
submitted with the Interconnection Request.
2.10 Transmission Provider may propose to interconnect more than
one Generating Facility at a single Point of Interconnection in
order to minimize costs. However, an Interconnection Customer may
elect to pay the entire cost of separate Interconnection Facilities.
2.11 The following articles from the Standard Small Generator
Interconnection Agreement are incorporated in these procedures by
reference: Article 6.12 (Security Arrangements), Article 7
(Confidentiality), and Article 8 (Dispute Resolution).
Section 3. Super-Expedited Procedures for Interconnecting a Small
Generating Facility No Larger Than 2 MW to a Low-Voltage Transmission
System
3.1 Precertification. In order to qualify for the Super-
Expedited Procedures described in this section, Interconnection
Customer's Generating Facility must be precertified. The Generating
Facility shall be considered precertified if an identical sample of
the manufacturer's model has been submitted to a national testing
laboratory and found, after appropriate testing, to be in compliance
with applicable consensus industry operational and safety standards.
No further design review, testing or additional equipment shall be
required to meet the precertification requirements of this section.
3.2 Interconnection Request. Interconnection Customer shall
submit to Transmission Provider an Interconnection Request
(Application Form) in the form specified in Appendix 6 of these
procedures. Transmission Provider shall notify Interconnection
Customer within three Business Days of receipt of the
Interconnection Request and inform Interconnection Customer of the
date and time when it was received. Within ten Business Days from
the date of receipt of the Interconnection Request, Transmission
Provider shall notify Interconnection Customer whether the request
is complete. If the Interconnection Request is not complete,
Transmission Provider shall at the same time provide Interconnection
Customer in writing a list detailing all information that must be
provided to complete the Interconnection Request. The
Interconnection Request shall be deemed complete when the required
information has been provided by Interconnection Customer, or the
Parties have agreed that Interconnection Customer may provide
additional information at a later time, as specified in Section 7 of
the Interconnection Request.
3.3 Initial Review. Within 20 Calendar Days after Transmission
Provider notifies Interconnection Customer it has received a
completed Interconnection Request, Transmission Provider shall: (1)
Evaluate the Interconnection Request using the Super-Expedited
Screening Criteria in Appendix 1 of these procedures, (2) review
Interconnection Customer's analysis using the same criteria (if
provided by Interconnection Customer), and (3) provide
Interconnection Customer with its evaluation, including a comparison
of the results of its own analyses with those of Interconnection
Customer (if applicable).
If Transmission Provider determines that the Interconnection
Request: (1) passes the Super-Expedited Screening Criteria, or (2)
fails one or more of the Super-Expedited Screening Criteria but
determines that the Generating Facility can be interconnected safely
and reliably, it shall provide Interconnection Customer a Standard
Small Generator Interconnection Agreement within five Business Days
after such determination.
3.4 Additional Review. If Transmission Provider determines that
the Interconnection Request fails the Super-Expedited Screening
Criteria and cannot determine that the Generating Facility may be
interconnected safely and reliably with its Transmission System,
Interconnection Customer may offer to pay for an expedited
Additional Review of the interconnection. The Additional Review
shall not exceed six hours of Transmission Provider's engineering
time (to be paid for by Interconnection Customer) and shall be
completed within ten Business Days of the request. The review will
determine whether minor modifications to Transmission Provider's
Transmission System (e.g., changing meters, fuses, relay settings)
can be performed in order to enable the interconnection to be made
safely and reliably. Transmission Provider shall provide
Interconnection Customer with a copy of the review. If the
Additional Review indicates that the interconnection can be made
safely and reliably with minor modifications and Interconnection
Customer agrees to pay these
[[Page 49993]]
additional costs, Transmission Provider shall provide
Interconnection Customer a Standard Small Generator Interconnection
Agreement within five Business Days after such determination. If the
review indicates that the interconnection cannot be made safely and
reliably with minor modifications, the Interconnection Request shall
be processed under Section 4 of these Procedures.
3.5 Interconnection of the Generating Facility. After the
Standard Small Generator Interconnection Agreement is signed by the
Parties, interconnection of the Generating Facility will proceed
according to the Milestones agreed to by the Parties in Appendix 3
of the Standard Small Generator Interconnection Agreement.
Section 4. Procedures for Interconnecting a Small Generating Facility
to a High-Voltage Transmission System and a Small Generating Facility
Larger Than 2 MW to a Low-Voltage Transmission System
4.1 General. An Interconnection Request to interconnect: (1) A
Generating Facility larger than 2 MW but no larger than 20 MW with
Transmission Provider's Low-Voltage Transmission System, or (2) a
Generating Facility with Transmission Provider's High-Voltage
Transmission System. Generating Facilities larger than 2 MW but no
larger than 10 MW and Generating Facilities no larger than 2 MW that
do not pass the Super-Expedited Procedures, that are to be
interconnected with Transmission Provider's Low-Voltage Transmission
System, shall be processed pursuant to the Expedited Procedures
found in Section 4.3 of this section.
4.2 Interconnection Request. Interconnection Customer shall
submit to Transmission Provider an Interconnection Request
(Application Form) in the form specified in Appendix 6 of these
procedures. Transmission Provider shall notify Interconnection
Customer within three Business Days of receipt of the
Interconnection Request and inform Interconnection Customer of the
date and time when it was received. Within ten Business Days from
the date of receipt of the Interconnection Request, Transmission
Provider shall notify Interconnection Customer whether the request
is complete. If the Interconnection Request is not complete,
Transmission Provider shall at the same time provide Interconnection
Customer in writing a list detailing all information that must be
provided to complete the Interconnection Request. The
Interconnection Request shall be deemed complete when the required
information has been provided by Interconnection Customer, or the
Parties have agreed that Interconnection Customer may provide
additional information at a later time, as specified in Section 7 of
the Interconnection Request.
4.3 Expedited Procedures for a Small Generating Facility No
Larger Than 10 MW Interconnecting With Transmission Provider's Low-
Voltage Transmission System and a Small Generating Facility Failing
the Super-Expedited Procedures. An Interconnection Customer may
request that Transmission Provider use the Expedited Screening
Criteria contained in Appendix 2 of these procedures to evaluate the
Interconnection Request.
4.3.1 If Transmission Provider determines that the Generating
Facility can be interconnected safely and reliably based upon its
analysis using the Expedited Screening Criteria, it shall provide
Interconnection Customer a Standard Small Generator Interconnection
Agreement within five Business Days after such determination.
If the Generating Facility passes the Expedited Screening
Criteria, but Transmission Provider determines that the Generating
Facility cannot be interconnected safely and reliably, the Parties
shall conduct a Scoping Meeting. If at the Scoping Meeting the
Parties conclude that an Interconnection Feasibility Study is
required, and the study indicates no Adverse System Impact to
Transmission Provider's Transmission System, the cost of the study
shall be borne by Transmission Provider and no Interconnection
System Impact Study shall be required. If the results of the
Interconnection Feasibility Study indicate an Adverse System Impact
to Transmission Provider's Transmission System, the cost of the
study shall be borne by Interconnection Customer and an
Interconnection System Impact Study shall be performed.
4.4 Queuing Priority. Transmission Provider shall assign a Queue
Position based upon the date and time the Interconnection Request is
deemed complete. The Queue Position of each Interconnection Request
will be used to determine the cost responsibility for the facilities
necessary to accommodate the interconnection.
4.5 Scoping Meeting. A Scoping Meeting will be held within ten
Business Days, or as agreed to by the Parties, after Transmission
Provider has notified Interconnection Customer that the
Interconnection Request is deemed complete. The purpose of the
meeting shall be to review the Interconnection Request, existing
studies relevant to the Interconnection Request, and the results of
the application of the Super-Expedited and/or Expedited Screening
Criteria. Parties are expected to bring to the meeting personnel,
including system engineers and other resources as may be reasonably
required to accomplish the purpose of the meeting.
4.5.1 If the Parties agree at the Scoping Meeting that an
Interconnection Feasibility Study needs to be performed,
Transmission Provider shall provide Interconnection Customer, no
later than five Business Days after the Scoping Meeting, an
Interconnection Feasibility Study Agreement including an outline of
the scope of the study and a non-binding good faith estimate of the
cost to perform the study.
4.5.2 If the Parties agree at the Scoping Meeting that an
Interconnection Feasibility Study does not need to be performed,
Transmission Provider shall provide Interconnection Customer, no
later than five Business Days after the Scoping Meeting, an
Interconnection Facilities Study Agreement including an outline of
the scope of the study and a non-binding good faith estimate of the
cost to perform the study.
4.6 Interconnection Feasibility Study. An Interconnection
Feasibility Study will include the following analyses for the
purpose of identifying a potential Adverse System Impact to
Transmission Provider's Transmission System that would result from
the interconnection: (1) Initial identification of any circuit
breaker short circuit capability limits exceeded as a result of the
interconnection, (2) initial identification of any thermal overload
or voltage limit violations resulting from the interconnection, (3)
initial review of grounding requirements and system protection, and
(4) description and non-binding estimated cost of facilities
required to interconnect the Generating Facility to Transmission
Provider's Transmission System in a safe and reliable manner.
4.6.1 If Interconnection Customer asks that the Interconnection
Feasibility Study evaluate multiple potential points of
interconnection, additional evaluations may need to be performed.
All such evaluations are to be paid by Interconnection Customer.
4.6.2 An Interconnection System Impact Study shall not be
required if the Interconnection Feasibility Study indicates no
Adverse System Impact or if it identifies an Adverse System Impact,
but Transmission Provider is able to identify a remedy without the
need for an Interconnection System Impact Study. Otherwise an
Interconnection System Impact Study shall be required.
4.7 Interconnection System Impact Study. The Interconnection
System Impact Study shall evaluate the impact of the proposed
interconnection on the safety and reliability of Transmission
Provider's Transmission System and, if applicable, Affected Systems.
The study shall identify and detail the system impacts that would
result if the Generating Facility were interconnected without
project modifications or system modifications, focusing on the
Adverse System Impacts identified in the Interconnection Feasibility
Study, or to study potential impacts, including but not limited to
those identified in the Scoping Meeting. The study will consider all
generating facilities that, on the date the Interconnection System
Impact Study is commenced: (1) Are directly interconnected with
Transmission Provider's Transmission System, (2) are interconnected
with Affected Systems and may have an impact on the proposed
interconnection, and (3) have a signed Interconnection Agreement to
interconnect with Transmission Provider's Transmission System.
4.7.1 General. The Interconnection System Impact Study will
consider, as appropriate, a short circuit analysis, a stability
analysis, a power flow analysis, voltage drop and flicker studies,
protection and set point coordination studies, and grounding
reviews. The Interconnection System Impact Study will state the
underlying assumptions of the study, show the results of the
analyses, and list any potential impediments to providing the
requested interconnection service. The study will indicate required
Upgrades and a non-binding good faith estimate of cost and time to
construct.
4.7.2 Distribution Interconnection System Impact Study. A
distribution Interconnection System Impact Study shall be performed
if a
[[Page 49994]]
potential Distribution System Adverse System Impact is identified in
the Interconnection Feasibility Study. Transmission Provider shall
send Interconnection Customer an Interconnection System Impact Study
Agreement within five Business Days of transmittal of the
Interconnection Feasibility Study report, including an outline of
the scope of the study and a good faith estimate of the cost to
perform the study. The study shall incorporate a load flow study, an
analysis of equipment interrupting ratings, protection coordination
study, voltage drop and flicker studies, protection and set point
coordination studies, and grounding reviews, and the impact on
system operation, as necessary.
4.7.3 Transmission Interconnection System Impact Study. Where
the Interconnection Feasibility Study or a distribution
Interconnection System Impact Study shows a potential Transmission
System Adverse System Impact, within five Business Days following
transmittal of the Interconnection Feasibility Study report and/or
distribution Interconnection System Impact Study Report,
Transmission Provider shall notify any Affected Systems in
accordance with the procedures provided for in Transmission
Provider's Tariff on file with FERC. Transmission Provider shall
also send Interconnection Customer an Interconnection System Impact
Study Agreement, including an outline of the scope of the study and
a good faith estimate of the cost to perform the study.
4.7.4 Coordinated Transmission and Distribution System Impact
Studies. Where transmission and distribution facilities are owned by
different entities (such as in the case of transmission-dependent
utilities (TDUs)) and no single entity is in a position to conduct
an Interconnection System Impact Study covering both transmission
and distribution electric systems, Transmission Provider, as
applicable, shall conduct the Interconnection System Impact Study.
Affected Systems shall participate in the study and provide all
information necessary to prepare the study.
4.7.5 Interconnection System Impact Study Cost Sharing. Affected
transmission and distribution providers may participate in the
preparation of the Interconnection System Impact Study, with a
division of costs among such entities as they may agree. All
affected parties shall be afforded an opportunity to review and
comment upon an Interconnection System Impact Study that covers
potential Adverse System Impacts on their systems, and Transmission
Provider has thirty additional Calendar Days to complete an
Interconnection System Impact Study requiring review by Affected
Systems.
4.8 Interconnection Facilities Study.
4.8.1 Within five Business Days of completion of the
Interconnection System Impact Study, a report will be prepared and
transmitted to Interconnection Customer along with an
Interconnection Facilities Study Agreement, which shall include an
outline of the scope of the study and a non-binding good faith
estimate of the cost to perform the study.
4.8.2 The Interconnection Facilities Study shall specify and
estimate the cost of the equipment, engineering, procurement and
construction work (including overheads) needed to implement the
conclusions of the Interconnection Feasibility Study and
Interconnection System Impact Study to interconnect the Generating
Facility. The Interconnection Facilities Study shall also identify:
(1) The electrical switching configuration of the equipment,
including, without limitation, transformer, switchgear, meters, and
other station equipment, (2) the nature and estimated cost of
Transmission Provider's Interconnection Facilities and Upgrades
necessary to accomplish the interconnection, and (3) an estimate of
the time required to complete the construction and installation of
such facilities.
4.8.3 Parties may agree to permit Interconnection Customer to
separately arrange for a third party to design and construct the
required Interconnection Facilities. In such cases, Transmission
Provider may review the design of the facilities, under the
provisions of the Interconnection Facilities Study Agreement. If the
Parties agree to separately arrange for design and construction, and
comply with any security and confidentiality requirements,
Transmission Provider shall make all relevant information available
to Interconnection Customer in order to permit Interconnection
Customer to obtain an independent design and cost estimate for the
facilities.
4.8.4 Upon completion of the Interconnection Facilities Study,
and with the agreement of Interconnection Customer to pay for
Interconnection Facilities and Upgrades identified in the
Interconnection Facilities Study, Transmission Provider shall
provide Interconnection Customer a Standard Small Generator
Interconnection Agreement within five Business Days.
4.9 Interconnection of the Generating Facility. After the
Standard Small Generator Interconnection Agreement is signed by the
Parties, interconnection of the Generating Facility will proceed
according to the Milestones agreed to by the Parties in Appendix 3
of the Standard Small Generator Interconnection Agreement.
BILLING CODE 6718-01-P
[[Page 49995]]
[GRAPHIC] [TIFF OMITTED] TP19AU03.003
[[Page 49996]]
[GRAPHIC] [TIFF OMITTED] TP19AU03.004
[[Page 49997]]
[GRAPHIC] [TIFF OMITTED] TP19AU03.005
BILLING CODE 6718-01-C
Appendix 1
Super-Expedited Screening Criteria (Applicable to Generating Facilities
No Larger than 2 MW)
1.1 For interconnection of the Generating Facility to a radial
Low-Voltage circuit, the aggregate new generation capacity on the
circuit shall not exceed five percent of the total circuit annual
peak load as most recently measured at the substation.
1.2 For interconnection of the Generating Facility to the load
side of Spot Network protectors, the Generating Facility must
utilize an inverter-based equipment package and, together with other
inverter-based generation, shall not exceed the smaller of five
percent of a Spot Network's maximum load or 50 kW.
1.3 The Generating Facility, in aggregation with other
generation on the Low-Voltage circuit, shall not contribute more
than ten percent to the circuit's
[[Page 49998]]
maximum Fault Current on the High-Voltage (primary) level nearest
the proposed Point of Common Coupling.
1.4 The Generating Facility, in aggregate with other generation
on the Low-Voltage circuit, shall not cause any protective devices
and equipment (including, but not limited to, substation breakers,
fuse cutouts, and line reclosers), or customer equipment on the
system to exceed 85 percent of the short circuit interrupting
capability; nor is the interconnection proposed for a circuit that
already exceeds 85 percent of the short circuit interrupting
capability.
1.5 The Generating Facility, in aggregate with other generation
interconnected to the Low-Voltage side of the substation transformer
feeding the circuit where the Generating Facility proposes to
interconnect, shall not exceed 10 MW in an area where there are
known or posted transient stability limitations to generating units
located in the general electrical vicinity (e.g., three or four
High-Voltage busses from the point of interconnection).
1.6 For interconnection of a single-phase generator where the
primary Low-Voltage electric system is three-phase, four-wire, the
Generating Facility shall be connected line-to-neutral. For
interconnection of a single-phase generator where the primary Low-
Voltage electric system is three-phase, three-wire, the Generating
Facility shall be connected line-to-line.
1.7 For interconnection of a proposed three-phase generator to a
three-phase, four-wire Low-Voltage circuit or a Low-Voltage circuit
having mixed three-wire and four-wire sections, the aggregate
generation capacity including the Generating Facility shall not
exceed ten percent of line section peak load.
1.8 If the Generating Facility is to be interconnected on
single-phase shared secondary, the aggregate new generation capacity
on the shared secondary shall not exceed 20 kVA.
1.9 If the Generating Facility is single-phase and is to be
interconnected on a center tap neutral of a 240 volt service, its
addition shall not create an imbalance between the two sides of the
240 volt service of more than 20 percent of nameplate rating of the
service transformer.
1.10 The Generating Facility's Point of Common Coupling shall be
on a Low-Voltage electric system.
Appendix 2
Expedited Screening Criteria (Applicable to Generating Facilities No
Larger than 10 MW)
1.1 For interconnection of the Generating Facility to a radial
Low-Voltage circuit, the Generating Facility's capacity in aggregate
with other generation on the circuit shall not exceed 15 percent of
total circuit annual peak load as most recently measured at the
substation; nor shall it exceed 15 percent of a Low-Voltage circuit
line section design capacity. A line section is defined as that
section of the Low-Voltage electric system between two
sectionalizing devices.
1.2 The Generating Facility, in aggregation with other
generation on the Low-Voltage circuit, shall not contribute more
than ten percent to the Low-Voltage circuit's maximum Fault Current
at the point on the primary level nearest the proposed Point of
Common Coupling.
1.3 Interconnection of the Generating Facility in aggregate with
other generation on the Low-Voltage circuit shall not cause any
equipment, protective devices (including, but not limited to,
substation breakers, fuse cutouts, and line reclosers), or customer
equipment on the system to exceed 90 percent of their short circuit
interrupting capability; nor may the interconnection be proposed for
a circuit that already exceeds the 90 percent capability limit.
1.4 The Generating Facility's Point of Common Coupling shall not
be on a Low-Voltage secondary or Spot Network.
1.5 The Generating Facility, in aggregate with other generation
interconnected to the Low-Voltage side of the substation transformer
feeding the Low-Voltage circuit where the Generating Facility
proposes to interconnect, shall not exceed 10 MW in an area where
there are known or posted transient stability limitations to
generating units located in the general electrical vicinity (e.g.,
three or four High-Voltage level busses from the point of
interconnection).
Appendix 3
Interconnection Feasibility Study Agreement
This agreement is made and entered into this ------day of------
------20----by and between--------------------, a------------
organized and existing under the laws of the State of------------,
(``Interconnection Customer,'') and------------, a ------------
existing under the laws of the State of------------, (``Transmission
Provider''). Interconnection Customer and Transmission Provider each
may be referred to as a ``Party,'' or collectively as the
``Parties.''
Recitals
Whereas, Interconnection Customer is proposing to develop a
Small Generating Facility or generating capacity addition to an
existing Small Generating Facility consistent with the
Interconnection Request completed by Interconnection Customer on----
--------; and
Whereas, Interconnection Customer desires to interconnect the
Generating Facility with Transmission Provider's Transmission
System; and
Whereas, Interconnection Customer has requested Transmission
Provider to perform an Interconnection Feasibility Study to assess
the feasibility of interconnecting the proposed Generating Facility
to Transmission Provider's Transmission System, and of any Affected
Systems;
Now, Therefore, in consideration of and subject to the mutual
covenants contained herein the Parties agreed as follows:
1.0 When used in this agreement, with initial capitalization,
the terms specified shall have the meanings indicated. Terms used in
this agreement with initial capitalization but not defined in this
agreement shall have the meanings specified in Section 1 of the
Standard Small Generator Interconnection Procedures.
2.0 Interconnection Customer elects and Transmission Provider
shall cause to be performed an Interconnection Feasibility Study
consistent with Section 4.6 of the Standard Small Generator
Interconnection Procedures in accordance with the Tariff.
3.0 The scope of the Interconnection Feasibility Study shall be
subject to the assumptions set forth in Attachment A to this
agreement.
4.0 The Interconnection Feasibility Study shall be based on the
technical information provided by Interconnection Customer in the
Interconnection Request, as may be modified as the result of the
Scoping Meeting. Transmission Provider reserves the right to request
additional technical information from Interconnection Customer as
may reasonably become necessary consistent with Good Utility
Practice during the course of the Interconnection Feasibility Study
and as designated in accordance with Section 4.5 (Scoping Meeting)
of the Standard Small Generator Interconnection Procedures. If
Interconnection Customer modifies its Interconnection Request, the
time to complete the Interconnection Feasibility Study may be
extended by agreement of the Parties.
5.0 In performing the study, Transmission Provider shall rely,
to the extent reasonably practicable, on existing studies of recent
vintage. The Interconnection Customer will not be charged for such
existing studies; however, Interconnection Customer shall be
responsible for charges associated with any new study or
modifications to existing studies that are reasonably necessary to
perform the Interconnection Feasibility Study.
6.0 The Interconnection Feasibility Study report shall provide
the following information:
--Preliminary identification of any circuit breaker short circuit
capability limits exceeded as a result of the interconnection,
--preliminary identification of any thermal overload or voltage
limit violations resulting from the interconnection, and
--preliminary description and non-bonding estimated cost of
facilities required to interconnect the Generating Facility to
Transmission Provider's Transmission System and to address the
identified short circuit and power flow issues.
7.0 Transmission Provider may require a study deposit of the
lesser of 100 percent of estimated non-binding good faith study
costs or $1,000.
8.0 The Interconnection Feasibility Study shall be completed and
the results shall be transmitted to Interconnection Customer within
thirty Calendar Days after this agreement is signed by the Parties.
9.0 Study fees shall be based on actual costs and will be
invoiced to Interconnection Customer after the study is transmitted
to Interconnection Customer. The invoice shall include an itemized
listing of employee time and costs expended on the study.
10.0 Interconnection Customer shall pay any actual study costs
that exceed the deposit without interest within thirty Calendar Days
on receipt of the invoice. Transmission Provider shall refund any
excess amount without interest within thirty Calendar Days of the
invoice.
[[Page 49999]]
In witness whereof, the Parties have caused this agreement to be
duly executed by their duly authorized officers or agents on the day
and year first above written.
[Insert name of Transmission Provider]
-----------------------------------------------------------------------
Signed----------------------------------------------------------------
Name (Printed):
-----------------------------------------------------------------------
Title-----------------------------------------------------------------
[Insert name of Interconnection Customer]
Signed----------------------------------------------------------------
Name (Printed):
-----------------------------------------------------------------------
Title-----------------------------------------------------------------
Attachment A to Interconnection Feasibility Study Agreement
Assumptions Used in Conducting the Interconnection Feasibility Study
The Interconnection Feasibility Study will be based upon the
information set forth in the Interconnection Request and agreed upon
in the Scoping Meeting held on------------:
(1) Designation of Point of Interconnection and configuration to
be studied.
(2) Designation of alternative Points of Interconnection and
configuration.
(1) and (2) are to be completed by Interconnection Customer.
Other assumptions (listed below) are to be provided by
Interconnection Customer and Transmission Provider.
Appendix 4
Interconnection System Impact Study Agreement
This agreement is made and entered into this ------day of------
------ 20----by and between------------, a------------organized and
existing under the laws of the State of ------------,
(``Interconnection Customer,'') and ------------, a------------
existing under the laws of the State of ------------,
(``Transmission Provider''). Interconnection Customer and
Transmission Provider each may be referred to as a ``Party,'' or
collectively as the ``Parties.''
Recitals
Whereas, Interconnection Customer is proposing to develop a
Small Generating Facility or generating capacity addition to an
existing Small Generating Facility consistent with the
Interconnection Request completed by Interconnection Customer on --
----------; and
Whereas, Interconnection Customer desires to interconnect the
Generating Facility with Transmission Provider's Transmission
System;
Whereas, Transmission Provider has completed an Interconnection
Feasibility Study and provided the results of said study to
Interconnection Customer (This recital to be omitted if the Parties
have agreed to forego the Interconnection Feasibility Study.); and
Whereas, Interconnection Customer has requested Transmission
Provider to perform an Interconnection System Impact Study to assess
the impact of interconnecting the Generating Facility to
Transmission Provider's Transmission System, and of any Affected
Systems;
Now, therefore, in consideration of and subject to the mutual
covenants contained herein the Parties agreed as follows:
1.0 When used in this agreement, with initial capitalization,
the terms specified shall have the meanings indicated. Terms used in
this agreement with initial capitalization but not defined in this
agreement shall have the meanings specified in Section 1 of the
Standard Small Generator Interconnection Procedures.
2.0 Interconnection Customer elects and Transmission Provider
shall cause to be performed an Interconnection System Impact Study
consistent with Section 4.7 of the Standard Small Generator
Interconnection Procedures in accordance with the Tariff.
3.0 The scope of the Interconnection System Impact Study shall
be subject to the assumptions set forth in Attachment A to this
agreement.
4.0 The Interconnection System Impact Study will be based upon
the results of the Interconnection Feasibility Study and the
technical information provided by Interconnection Customer in the
Interconnection Request. Transmission Provider reserves the right to
request additional technical information from Interconnection
Customer as may reasonably become necessary consistent with Good
Utility Practice during the course of the Interconnection System
Impact Study. If Interconnection Customer modifies its designated
Point of Interconnection, Interconnection Request, or the technical
information provided therein is modified, the time to complete the
Interconnection System Impact Study may be extended.
5.0 The Interconnection System Impact Study report shall provide
the following information:
--Identification of any circuit breaker short circuit capability
limits exceeded as a result of the interconnection,
--Identification of any thermal overload or voltage limit violations
resulting from the interconnection,
--Identification of any instability or inadequately damped response
to system disturbances resulting from the interconnection and
--Description and non-binding, good faith estimated cost of
facilities required to interconnect the Generating Facility to
Transmission Provider's Transmission System and to address the
identified short circuit, instability, and power flow issues.
6.0 Transmission Provider may require a study deposit of the
lesser of 50 percent of estimated non-binding good faith study costs
or $3,000.
7.0 The distribution Interconnection System Impact Study, if
required, shall be completed and the results transmitted to
Interconnection Customer within thirty Calendar Days after this
agreement is signed by the Parties. The transmission Interconnection
System Impact Study, if required, shall be completed and the results
transmitted to Interconnection Customer within forty-five Calendar
Days after this agreement is signed by the Parties, or in accordance
with Transmission Provider's queuing procedures.
8.0 Study fees shall be based on actual costs and will be
invoiced to Interconnection Customer after the study is transmitted
to Interconnection Customer. The invoice shall include an itemized
listing of employee time and costs expended on the study.
9.0 Interconnection Customer shall pay any actual study costs
that exceed the deposit without interest within 30 Calendar Days on
receipt of the invoice. Transmission Provider shall refund any
excess amount without interest within thirty Calendar Days of the
invoice.
In witness thereof, the Parties have caused this agreement to be
duly executed by their duly authorized officers or agents on the day
and year first above written.
[Insert name of Transmission Provider]
-----------------------------------------------------------------------
Signed----------------------------------------------------------------
Name (Printed):
-----------------------------------------------------------------------
Title-----------------------------------------------------------------
[Insert name of Interconnection Customer]
-----------------------------------------------------------------------
Signed----------------------------------------------------------------
Name (Printed):
-----------------------------------------------------------------------
Title-----------------------------------------------------------------
Attachment A to Interconnection System Impact Study Agreement
Assumptions Used in Conducting the Interconnection System Impact Study
The Interconnection System Impact Study shall be based upon the
results of the Interconnection Feasibility Study, subject to any
modifications in accordance with Section 4.7 of the Standard Small
Generator Interconnection Procedures, and the following assumptions:
(1) Designation of Point of Interconnection and configuration to
be studied.
(2) Designation of alternative Points of Interconnection and
configuration.
(1) and (2) are to be completed by Interconnection Customer.
Other assumptions (listed below) are to be provided by
Interconnection Customer and Transmission Provider.
Appendix 5
Interconnection Facilities Study Agreement
This agreement is made and entered into this ------ day of ----
-------- 20 ---- by and between --------------------, a ------------
organized and existing under the laws of the State of ------------,
(``Interconnection Customer,'') and ------------, a ------------
existing under the laws of the State of ------------,
(``Transmission Provider''). Interconnection Customer and
Transmission Provider each may be referred to as a ``Party,'' or
collectively as the ``Parties.''
Recitals
Whereas, Interconnection Customer is proposing to develop a
Small Generating Facility or generating capacity addition to an
existing Small Generating Facility consistent with the
Interconnection Request completed by Interconnection Customer on --
----------; and
[[Page 50000]]
Whereas, Interconnection Customer desires to interconnect the
Generating Facility with Transmission Provider's Transmission
System;
Whereas, Transmission Provider has completed an Interconnection
System Impact Study and provided the results of said study to
Interconnection Customer; and
Whereas, Interconnection Customer has requested Transmission
Provider to perform an Interconnection Facilities Study to specify
and estimate the cost of the equipment, engineering, procurement and
construction work needed to implement the conclusions of the
Interconnection System Impact Study in accordance with Good Utility
Practice to physically and electrically connect the Generating
Facility to Transmission Provider's Transmission System.
Now, therefore, in consideration of and subject to the mutual
covenants contained herein the Parties agreed as follows:
1.0 When used in this agreement, with initial capitalization,
the terms specified shall have the meanings indicated. Terms used in
this agreement with initial capitalization but not defined in this
agreement shall have the meanings specified in Section 1 of the
Standard Small Generator Interconnection Procedures.
2.0 Interconnection Customer elects and Transmission Provider
shall cause an Interconnection Facilities Study consistent with
Section 4.8 of the Standard Small Generator Interconnection
Procedures to be performed in accordance with the Tariff.
3.0 The scope of the Interconnection Facilities Study shall be
subject to data provided in Attachment A to this agreement.
4.0 An Interconnection Facilities Study report (1) shall provide
a description, estimated cost of (consistent with Attachment A),
schedule for required facilities to interconnect the Generating
Facility to Transmission Provider's Transmission System and (2)
shall address the short circuit, instability, and power flow issues
identified in the Interconnection System Impact Study.
5.0 Transmission Provider may require a study deposit of the
lesser of 50 percent of estimated non-binding good faith study costs
or $10,000.
6.0 In cases where no Upgrades are required, the Interconnection
Facilities Study shall be completed and the results shall be
transmitted to Interconnection Customer within thirty Calendar Days
after this agreement is signed by the Parties. In cases where
Upgrades are required, the Interconnection Facilities Study shall be
completed and the results shall be transmitted to Interconnection
Customer within forty-five Calendar Days after this agreement is
signed by the Parties.
7.0 Study fees shall be based on actual costs and will be
invoiced to Interconnection Customer after the study is transmitted
to Interconnection Customer. The invoice shall include an itemized
listing of employee time and costs expended on the study.
8.0 Interconnection Customer shall pay any actual study costs
that exceed the deposit without interest within 30 Calendar Days on
receipt of the invoice. Transmission Provider shall refund any
excess amount without interest within thirty Calendar Days of the
invoice.
In witness whereof, the Parties have caused this agreement to be
duly executed by their duly authorized officers or agents on the day
and year first above written.
[Insert name of Transmission Provider]
-----------------------------------------------------------------------
Signed-----------------------------------------------------------------
Name (Printed):
-----------------------------------------------------------------------
Title------------------------------------------------------------------
[Insert name of Interconnection Customer]
-----------------------------------------------------------------------
Signed-----------------------------------------------------------------
Name (Printed):
-----------------------------------------------------------------------
Title------------------------------------------------------------------
Attachment A to Interconnection Facilities Study Agreement
Data To Be Provided by Interconnection Customer With the
Interconnection Facilities Study Agreement
Provide location plan and simplified one-line diagram of the
plant and station facilities. For staged projects, please indicate
future generation, transmission circuits, etc.
On the one-line diagram, indicate the generation capacity
attached at each metering location. (Maximum load on CT/PT)
On the one-line diagram, indicate the location of auxiliary
power. (Minimum load on CT/PT) Amps
One set of metering is required for each generation connection
to the new ring bus or existing Transmission Provider station.
Number of generation connections: ----
Will an alternate source of auxiliary power be available during
CT/PT maintenance? Yes ---- No ----
Will a transfer bus on the generation side of the metering
require that each meter set be designed for the total plant
generation? Yes ---- No ---- (Please indicate on the one-line
diagram).
What type of control system or PLC will be located at the
Generating Facility?
-----------------------------------------------------------------------
What protocol does the control system or PLC use?
-----------------------------------------------------------------------
Please provide a 7.5-minute quadrangle map of the site. Indicate
the plant, station, transmission line, and property lines.
Physical dimensions of the proposed interconnection station:
-----------------------------------------------------------------------
Bus length from generation to interconnection station:
-----------------------------------------------------------------------
Line length from interconnection station to Transmission
Provider's Transmission System.
-----------------------------------------------------------------------
Tower number observed in the field. (Painted on tower leg)*:
-----------------------------------------------------------------------
Number of third party easements required for transmission
lines*:
-----------------------------------------------------------------------
* To be completed in coordination with Transmission Provider.
Is the Generating Facility located in Transmission Provider's
service area?
Yes ---- No ---- If No, please provide name of local provider:
-----------------------------------------------------------------------
Please provide the following proposed schedule dates:
Begin Construction
Date:------------------------------------------------------------------
Generator step-up transformers receive back feed power
Date:------------------------------------------------------------------
Generation Testing
Date:------------------------------------------------------------------
Commercial Operation
Date:------------------------------------------------------------------
Appendix 6
Small Generating Facility Interconnection Request (Application Form)
Instructions
Interconnection Customer declares its intention to sell
electricity at wholesale in interstate commerce. Interconnection
customer submits this request to interconnect its Small Generating
Facility with the Transmission Provider's Transmission System
pursuant to a Tariff.
In order for the Generating Facility to be considered for
interconnection to Transmission Provider's Transmission System,
Interconnection Customer must submit to Transmission Provider (1) a
completed Interconnection Request (The Interconnection Request shall
be deemed complete when the required information has been provided
by Interconnection Customer, or the Parties have agreed that
Interconnection Customer may provide additional information at a
later time, as specified in Section 7 below), and (2) the
appropriate non-refundable processing fee.
If requested information is not applicable, indicate by using
``N/A''.
Additional information to evaluate an Interconnection Request
may be required by Transmission Provider as the application process
proceeds.
Processing Fee
Indicate the amount of processing fee enclosed: $------
Processing Fee for Small Generating Facilities No Larger than 2
MW:
The greater of:
$0.50/nameplate KVA rating, or
$100 for single phase generators no larger than 25 KVA, or
$500 for three phase generators and single phase generators larger
than 25 KVA
Processing Fee for Small Generating Facilities Larger than 2 MW
but No Larger than 20 MW:
$1,000 for generators no larger than 10 MW
$2,000 for generators larger than 10 MW
Section 1. Interconnection Customer Information
Interconnection Request (Application Form)
Indicate whether Interconnection Customer intends to participate
as:
---- Network Resource
---- Energy-Only Resource
---- Non-Exporting Resource Participating in a Wholesale Market
---- Other (Describe: ------------)
[[Page 50001]]
Indicate Generating Facility size:
---- 0-2.00 MW
---- 2.01-10.00 MW
---- 10.01-20.00 MW
Application is for:
----New Generating Facility
---- Capacity addition to Existing Generating Facility
If capacity addition to existing facility, please describe:
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Legal Name of Interconnection Customer (or, if an Individual,
Individual's Name)
Name:------------------------------------------------------------------
Mailing Address:-------------------------------------------------------
City:------------------------------------------------------------------
State:-----------------------------------------------------------------
Zip:-------------------------------------------------------------------
Generating Facility Location (if different from above):
-----------------------------------------------------------------------
Telephone:
Daytime:---------------------------------------------------------------
Evening:---------------------------------------------------------------
Fax:-------------------------------------------------------------------
E-Mail Address:--------------------------------------------------------
Alternative Contact Information (If different from
Interconnection Customer information above)
Contact Name:----------------------------------------------------------
Title:-----------------------------------------------------------------
Address:---------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Telephone:
Daytime:---------------------------------------------------------------
Evening:---------------------------------------------------------------
Fax:-------------------------------------------------------------------
E-Mail Address:--------------------------------------------------------
For generators installed at locations with existing electric
service to which the proposed Generating Facility will interconnect,
provide:
-----------------------------------------------------------------------
(Local Electric Service Provider Name*)
-----------------------------------------------------------------------
(Current Account Number*)
(*To be provided by Interconnection Customer if the local
electric service provider is different from Transmission Provider)
Contact Name:----------------------------------------------------------
Contact Title:---------------------------------------------------------
Address:---------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Telephone:
Daytime:---------------------------------------------------------------
Evening:---------------------------------------------------------------
Fax:-------------------------------------------------------------------
E-Mail Address:--------------------------------------------------------
Section 2. Generator Qualifications
Energy Source:
------Hydro [Specify Type (e.g., Run-of-River)----------]
------ Solar
------ Wind
------ Diesel
------ Natural Gas
------ Fuel Oil
------ Other (Specify ------------------------)
Type of Generator:
------ Synchronous
------ Induction
------ DC Generator or Solar with Inverter
Generator Nameplate Rating: ---------- kW (Typical)
Generator Nameplate KVA: ----------
Interconnection Customer or Customer-Site Load: ------ kW (if none,
so state) (Typical)
---------- (Reactive Load, if known)
Maximum physical export capability requested: --------kW
List components of the Generating Facility that are Precertified:
Equipment Type Precertifying Entity
----------------------------------------------- -----------------------------------------------
----------------------------------------------- -----------------------------------------------
----------------------------------------------- -----------------------------------------------
----------------------------------------------- -----------------------------------------------
----------------------------------------------- -----------------------------------------------
----------------------------------------------- -----------------------------------------------
----------------------------------------------- -----------------------------------------------
Section 3. Generator Technical Information
Small Generating Facility (or solar collector) manufacturer, model
name, number, and version:---------------------------------------------
Nameplate output power rating in kW: (Summer)------ (Winter)----
--
Nameplate output power rating in KVA: (Summer) ------ (Winter)
------
Individual generator power factor:
Rated power factor leading: ------------
Rated power factor lagging: ------------
Wind Generators
Number of generators to be interconnected pursuant to this
Interconnection Request: --
Elevation: ------------ ----Single Phase ---- Three Phase
Inverter manufacturer, model name, number, and version:
-----------------------------------------------------------------------
List of adjustable setpoints for the protective equipment or
software:
-----------------------------------------------------------------------
Note: A completed General Electric Company Power Systems Load
Flow (PSLF) data sheet must be supplied with the Interconnection
Request.
Small Generating Facility Characteristic Data (for rotating
machines)
Synchronous and Induction Generators:
Direct Axis Transient Reactance, X'd: ------ P.U.
Direct Axis Unsaturated Transient Reactance, X'di: ------ P.U.
Direct Axis Subtransient Reactance, X''d: ------ P.U.
Generator Saturation Constant (1.2): ------
Generation Saturation Constant (1.2): ------
Negative Sequence Reactance: ------ P.U.
Zero Sequence Reactance: ------ P.U.
KVA Base:--------------------------------------------------------------
RPM Frequency:---------------------------------------------------------
Induction Generators:
(*) Field Volts:-------------------------------------------------------
(*) Field Amperes:-----------------------------------------------------
(*) Motoring Power (kW):-----------------------------------------------
(*) Neutral Grounding Resistor (If Applicable):------------------------
(*) I22t or K (Heating Time Constant):-----------
(*) Rotor Resistance:--------------------------------------------------
(*) Stator Resistance:-------------------------------------------------
(*) Stator Reactance:--------------------------------------------------
(*) Rotor Reactance:---------------------------------------------------
(*) Magnetizing Reactance:---------------------------------------------
(*) Short Circuit Reactance:-------------------------------------------
(*) Exciting Current:--------------------------------------------------
(*) Temperature Rise:--------------------------------------------------
(*) Frame Size:--------------------------------------------------------
(*) Design Letter:-----------------------------------------------------
(*) Reactive Power Required In Vars (No Load):-------------------------
(*) Reactive Power Required In Vars (Full Load):-----------------------
(*) Total Rotating Inertia, H: -- Per Unit on KVA Base
Note: Please consult Transmission Provider prior to submitting
the Interconnection Request to determine if the information
designated by (*) is required.
Excitation and Governor System Data for Synchronous Generators Only
If determined to be required, provide appropriate IEEE model
block diagram of excitation system, governor system, and power
system stabilizer (PSS) in accordance with the regional reliability
council criteria.
[[Page 50002]]
A PSS may be determined to be required by applicable studies. A copy
of the manufacturer's block diagram may not be substituted.
Section 4. Interconnecting Equipment Technical Data Information
Will a transformer be used between the Small Generating Facility
and the Point of Interconnection? ---- Yes ---- No
Will the transformer be provided by Interconnection Customer? --
---- Yes ------ No
Transformer Data for Interconnection Customer-Owned Transformer (if
applicable)
The transformer is: ------ single phase ------ three phase Size: --
---- KVA Transformer impedance: ------ % on ------ KVA Base
If Three Phase:
Transformer Primary: ---------- Volts ----------Delta ----------
Wye ---------- Wye Grounded
Transformer Secondary: ---------- Volts ---------- Delta ------
---- Wye ----------Wye Grounded
Transformer fuse data for Interconnection Customer-owned fuse (if
applicable):-----------------------------------------------------------
-----------------------------------------------------------------------
Note: Please attach a copy of fuse manufacturer's minimum melt
and total clearing time-current curves
Fuse Manufacturer:-----------------------------------------------------
Type: ---------- Size: ---------- Speed: ----------
Interconnecting Circuit Breaker (if applicable)
Manufacturer:----------------------------------------------------------
Type: ----------
Load Rating (Amps):----------
Interrupting Rating (Amps): ----------
Trip Speed (Cycles): ----------
Interconnection Protective Relays (if applicable)
Note: Please attach a copy of any proposed time-overcurrent
coordination curves
Manufacturer:----------------------------------------------------------
Type: ----------
Style/Catalog No.: ----------
Proposed Setting: ----------
Manufacturer:----------------------------------------------------------
Type:------------------------------------------------------------------
Style/Catalog No.:-----------------------------------------------------
Proposed Setting:------------------------------------------------------
Manufacturer:----------------------------------------------------------
Type:------------------------------------------------------------------
Style/Catalog No.:-----------------------------------------------------
Proposed Setting:------------------------------------------------------
Manufacturer:----------------------------------------------------------
Type:------------------------------------------------------------------
Style/Catalog No.:-----------------------------------------------------
Proposed Setting:------------------------------------------------------
Manufacturer:----------------------------------------------------------
Type:------------------------------------------------------------------
Style/Catalog No.:-----------------------------------------------------
Proposed Setting:------------------------------------------------------
Current Transformer Data (if applicable)
Note: Please attach a copy of manufacturer's excitation & ratio
correction curves
Manufacturer:----------------------------------------------------------
Type:------------------------------------------------------------------
Accuracy Class:--------------------------------------------------------
Proposed Ratio Connection:----------/5
Manufacturer:----------------------------------------------------------
Type:------------------------------------------------------------------
Accuracy Class:--------------------------------------------------------
Proposed Ratio Connection:----------/5
Potential Transformer Data (if applicable)
Manufacturer:----------------------------------------------------------
Type:------------------------------------------------------------------
Accuracy Class:--------------------------------------------------------
Proposed Ratio Connection:----------/5
Manufacturer:----------------------------------------------------------
Type:------------------------------------------------------------------
Accuracy Class:--------------------------------------------------------
Proposed Ratio Connection: ----------/5
Section 5. General Information
Requested Point of Interconnection:------------------------------------
-----------------------------------------------------------------------
Proposed In-Service Date:----------------------------------------------
Please attach a one-line diagram showing the configuration of all
generating facility equipment, current and potential circuits, and
protection and control schemes.
Is a one line diagram attached? --------
Yes --------No
Please attach any site documentation that indicates the precise
physical location of the proposed generating facility (e.g., USGS
topographic map or other diagram or documentation).
Is site documentation attached? -------- Yes -------- No
Please attach any documentation that describes and details the
operation of the protection and control schemes.
Is protection and control scheme documentation attached? --------
Yes -------- No
Proposed location of protective interface equipment on property
(Include address if different from Interconnection Customer's
address):
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Please attach copies of schematic drawings for all protection and
control circuits, relay current circuits, relay potential circuits,
and alarm/monitoring circuits (if applicable).
Are schematic drawings attached?
-------- Yes -------- No
Please attach Site Control documentation.
Is Site Control documentation attached? -------- Yes -------- No
Does Interconnection Customer currently have control of the site? --
------ Yes -------- No
Section 6. Signatures
I hereby certify that, to the best of my knowledge, all the
information provided in this Interconnection Request is true and
correct.
For Interconnection Customer (Printed):--------------------------------
-----------------------------------------------------------------------
Signature:-------------------------------------------------------------
Date:------------------------------------------------------------------
I hereby determine that on the date and time specified below,
Interconnection Customer has provided or agreed to provide per
Section 7 all required information, and the Interconnection Request
is considered complete.
For Transmission Provider (Printed):----------------------------------
-----------------------------------------------------------------------
Signature:------------------------------------------------------------
Date:------------------------------------------------------------------
Time:------------------------------------------------------------------
Section 7. Agreement to Provide Data if Not Included With Initial
Interconnection Request
Data Item Date to be Provided
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[[Page 50003]]
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Agreed to by:
--------------------------------------------------------------------------------------------------------------------------------------------------------
For Transmission Provider ............. Date
--------------------------------------------------------------------------------------------------------------------------------------------------------
For Interconnection Customer ............. Date
Appendix 7 to the Standard Small Generator Interconnection Procedures
STANDARD SMALL GENERATOR INTERCONNECTION AGREEMENT (SGIA)
Table of Contents
Identification of Parties and Recitals
Article 1. Definitions
Article 2. Scope and Limitations of Agreement
2.1 Scope and Limitations of Agreement
2.2 Responsibilities of the Parties
2.3 Parallel Operation Obligations
2.4 Metering
Article 3. Inspection, Testing, Authorization, and Right of Access
3.1 Equipment Testing and Inspection
3.2 Authorization Required Prior To Parallel Operation
3.3 Right of Access
Article 4. Effective Date, Term, Termination, and Disconnection
4.1 Effective Date
4.2 Term of Agreement
4.3 Termination
4.4 Temporary Disconnection
4.4.1 Emergency Conditions
4.4.2 Routine Maintenance, Construction and Repair
4.4.3 Forced Outages
4.4.4 Adverse Operating Effects
4.4.5 Modification of the Generating Facility
4.4.6 Reconnection
Article 5. Cost Responsibility, Milestones, Billing, and Payment
5.1 Cost Responsibility
5.1.1 Interconnection Facilities
5.1.2 Network Upgrades
5.1.2.1 Refund of Amounts Advanced for Network Upgrades
5.1.3 Distribution Upgrades
5.1.4 Operating and Maintenance Expenses
5.1.5 General
5.2 Financial Security Arrangements
5.3 Milestones
5.4 Billing and Payment
5.4.1 Billing Procedure for Interconnection Facilities
Construction
5.4.2 Final Accounting
Article 6. Miscellaneous
6.1 Governing Law, Regulatory Authority and Rules
6.2 Amendment
6.3 No Third Party Beneficiaries
6.4 Waiver
6.5 Assignment
6.6 Entire Agreement
6.7 Notices
6.8 Multiple Counterparts
6.9 No Partnership
6.10 Communications
6.11 Severability
6.12 Security Arrangements
6.13 Indemnity
6.14 Force Majeure
6.15 Environmental Releases
6.16 Insurance
6.17 Default
6.18 Subcontractors
6.19 Consequential Damages
6.20 Reservation of Rights
Article 7. Confidentiality
7.1 Confidentiality
7.2 Term
7.3 Scope
7.4 Release of Confidential Information
7.5 Rights
7.6 No Warranties
7.7 Standard of Care
7.8 Order of Disclosure
7.9 Termination of Agreement
7.10 Remedies
7.11 Disclosure to FERC or its Staff
7.12 Competitively Sensitive, Commercial or Financial
Information
7.13 Information in Public Domain
Article 8. Disputes
8.1 Submission
8.2 External Arbitration Procedures
8.3 Arbitration Decisions
8.4 Costs
Article 9. Signatures
Appendix 1--Description and Costs of Generating Facility,
Interconnection Facilities, and Metering Equipment
Appendix 2--One-line Diagram Depicting Generating Facility,
Interconnection Facilities, Metering Equipment, and Upgrades
Appendix 3--Milestones
Appendix 4--Additional Operating Requirements for Interconnection
Provider's Transmission System and Affected Systems Needed to
Support the Interconnection Customer's Needs
Appendix 5--Transmission Provider's Description of Transmission
System Upgrades and Best Estimate of Upgrade Costs
Identification of Parties and Recitals
This agreement is made and entered into this ---- day of ------
------, by ------------, a ------------ organized and existing under
the laws of the State/Commonwealth of ------------ and having its
principal place of business in ------------ (``Transmission
Provider'') and ------------, a ------------ organized and existing
under the laws of the State/Commonwealth of ------------ and having
its principal place of business in ------------, ------------
(``Interconnection Customer'').
Whereas, Interconnection Customer desires to engage in the
interconnected operation of its Generating Facility with
Transmission Provider's Transmission System;
Whereas, Interconnection Customer has applied for and been
approved by Transmission Provider for interconnection pursuant to
Transmission Provider's Small Generating Facility interconnection
process and in accordance with the Standard Small Generator
Interconnection Procedures; and
Whereas, Parties agree that interconnection of the Generating
Facility will be expedited to the greatest extent possible.
Now, therefore, in consideration of and subject to the mutual
covenants contained herein, it is agreed:
Article 1. Definitions
When used with initial capitalization, the following terms shall
have the meanings specified or referred to below. Terms used in this
document with initial capitalization that are not defined below
shall have the meanings specified in the section in which they are
used or as specified in the Transmission Provider's Open Access
Transmission Tariff (OATT), as may be amended from time to time.
Additional Review shall mean a technical evaluation by the
Transmission Provider of a proposed interconnection that has failed
to pass the Super-Expedited Screening Criteria. The review will
determine whether minor modifications to the Transmission Provider's
Transmission System (e.g., changing meters, fuses, relay settings)
can be performed in order to enable the interconnection to be made
safely and reliably.
Adverse System Impact shall mean the negative effects due to
technical or operational limits on conductors or equipment being
exceeded that may compromise the safety and reliability of the
electric system.
Affected System shall mean an electric system other than the
Transmission Provider's Transmission System that may be affected by
the proposed interconnection.
Affiliate shall mean, with respect to a corporation, partnership
or other entity, each such other corporation, partnership or other
entity that directly or indirectly, through one
[[Page 50004]]
or more intermediaries, controls, is controlled by, or is under
common control with, such corporation, partnership or other entity.
Applicable Laws and Regulations shall mean all duly promulgated
applicable federal, state and local laws, regulations, rules,
ordinances, codes, decrees, judgments, directives, or judicial or
administrative orders, permits and other duly authorized actions of
any Governmental Authority.
Breach shall mean the failure of a Party to perform or observe
any material term or condition of the Standard Small Generator
Interconnection Agreement.
Breaching Party shall mean a Party that is in Breach of the
Standard Small Generator Interconnection Agreement.
Business Day shall mean Monday through Friday, excluding Federal
Holidays.
Calendar Day shall mean any day including Saturday, Sunday or a
Federal Holiday.
Commercial Operation Date of a unit shall mean the date on which
the Interconnection Customer commences commercial operation of the
unit at the Generating Facility after testing of such unit has been
completed.
Confidential Information shall mean any confidential,
proprietary or trade secret information of a plan, specification,
pattern, procedure, design, device, list, concept, policy or
compilation relating to the present or planned business of a Party,
which is designated as confidential by the Party supplying the
information, whether conveyed orally, electronically, in writing,
through inspection, or otherwise.
Control Area shall mean an electrical system or systems bounded
by interconnection metering and telemetry, capable of controlling
generation to maintain its interchange schedule with other Control
Areas and contributing to frequency regulation of the
interconnection. A Control Area must be certified by NERC.
Default shall mean the failure of a Breaching Party to cure its
Breach in accordance with Article 6.17 of the Standard Small
Generator Interconnection Agreement.
Dispute Resolution shall mean the procedure for resolution of a
dispute between the Parties in which they will first attempt to
resolve the dispute on an informal basis.
Distribution System shall mean the Transmission Provider's
facilities and equipment used to transmit electricity to ultimate
usage points such as homes and industries directly from nearby
generators or from interchanges with higher voltage transmission
networks which transport bulk power over longer distances. The
voltage levels at which Distribution Systems operate differ among
areas.
Distribution Upgrades shall mean the additions, modifications,
and upgrades to the Transmission Provider's Distribution System at
or beyond the Point of Interconnection to facilitate interconnection
of the Generating Facility and render the transmission service
necessary to effect Interconnection Customer's wholesale sale of
electricity in interstate commerce. Distribution Upgrades do not
include Interconnection Facilities.
Effective Date shall mean the date on which the Standard Small
Generator Interconnection Agreement becomes effective upon execution
by the Parties subject to acceptance by the Commission, or if filed
unexecuted, upon the date specified by the Commission.
Emergency Condition shall mean a condition or situation: (1)
That in the judgement of the Party making the claim is imminently
likely to endanger life or property, or (2) that, in the case of a
Transmission Provider, is imminently likely (as determined in a non-
discriminatory manner) to cause a material adverse effect on the
security of, or damage to Transmission Provider's Transmission
System, Transmission Provider's Interconnection Facilities or the
electric systems of others to which the Transmission Provider's
Transmission System is directly connected, or (3) that, in the case
of Interconnection Customer, is imminently likely (as determined in
a non-discriminatory manner) to cause a material adverse effect on
the security of, or damage to, the Generating Facility or
Interconnection Customer's Interconnection Facilities. System
restoration and black start shall be considered Emergency
Conditions; provided, that the Interconnection Customer is not
obligated by the Standard Small Generator Interconnection Agreement
to possess black start capability.
Environmental Law shall mean Applicable Laws or Regulations
relating to pollution or protection of the environment or natural
resources.
Expedited Procedures shall mean the process described in the
Standard Small Generator Interconnection Procedures for (1) a
Generating Facility no larger than 10 MW interconnecting with a
Transmission Provider's Low-Voltage Transmission System, and (2) a
Generating Facility failing the Super-Expedited Procedures. The
Expedited Procedures use the Expedited Screening Criteria to
determine whether the Small Generating Facility can be
interconnected without any further Interconnection Studies.
Expedited Screening Criteria shall mean the technical variables
that are employed in the Expedited Procedures for evaluating the
impact of interconnecting the Small Generating Facility to the
Transmission Provider's Transmission System as it exists at the time
of the analysis.
Fault Current shall mean the current that is produced by an
electrical fault, such as single-phase to ground, double-phase to
ground, three-phase to ground, phase-to-phase, and three-phase. The
Fault Current is several times larger in magnitude than the current
that normally flows through a circuit. A protective device must be
able to interrupt this Fault Current within a few cycles. The Fault
Current increases when a new generator is interconnected.
Federal Power Act shall mean the Federal Power Act, as amended,
16 U.S.C. 791a et seq.
FERC shall mean the Federal Energy Regulatory Commission
(Commission) or its successor.
Force Majeure shall mean any act of God, labor disturbance, act
of the public enemy, war, insurrection, riot, fire, storm or flood,
explosion, breakage or accident to machinery or equipment, any
order, regulation or restriction imposed by governmental, military
or lawfully established civilian authorities, or any other cause
beyond a Party's control. A Force Majeure event does not include an
act of negligence or intentional wrongdoing.
Generating Facility shall mean Interconnection Customer's device
for the production of electricity identified in the Interconnection
Request, but shall not include the Interconnection Customer's
Interconnection Facilities.
Generating Facility Capacity shall mean the net capacity of the
Generating Facility and the aggregate net capacity of the Generating
Facility where it includes multiple energy production devices.
Good Utility Practice shall mean any of the practices, methods
and acts engaged in or approved by a significant portion of the
electric industry during the relevant time period, or any of the
practices, methods and acts which, in the exercise of reasonable
judgment in light of the facts known at the time the decision was
made, could have been expected to accomplish the desired result at a
reasonable cost consistent with good business practices,
reliability, safety and expedition. Good Utility Practice is not
intended to be limited to the optimum practice, method, or act to
the exclusion of all others, but rather to be acceptable practices,
methods, or acts generally accepted in the region.
Governmental Authority shall mean any federal, state, local or
other governmental regulatory or administrative agency, court,
commission, department, board, or other governmental subdivision,
legislature, rulemaking board, tribunal, or other governmental
authority having jurisdiction over the Parties, their respective
facilities, or the respective services they provide, and exercising
or entitled to exercise any administrative, executive, police, or
taxing authority or power; provided, however, that such term does
not include Interconnection Customer, Transmission Provider, or any
Affiliate thereof.
Hazardous Substances shall mean any chemicals, materials or
substances defined as or included in the definition of ``hazardous
substances,'' ``hazardous wastes,'' ``hazardous materials,''
``hazardous constituents,'' ``restricted hazardous materials,''
``extremely hazardous substances,'' ``toxic substances,''
``radioactive substances,'' ``contaminants,'' ``pollutants,''
``toxic pollutants'' or words of similar meaning and regulatory
effect under any applicable Environmental Law, or any other
chemical, material or substance, exposure to which is prohibited,
limited or regulated by any applicable Environmental Law.
High-Voltage shall mean voltage levels at or above 69 kV.
IEEE shall mean the Institute of Electrical and Electronics
Engineers.
Initial Review shall mean the Transmission Provider's review of
the Interconnection Customer's Interconnection Request using the
Super-Expedited Screening Criteria described in Section 3 of the
Standard Small Generator Interconnection Procedures.
[[Page 50005]]
In-Service Date shall mean the date upon which the
Interconnection Customer reasonably expects it will be ready to
begin use of the Transmission Provider's Interconnection Facilities
to obtain back feed power.
Interconnection Customer shall mean any entity, including the
Transmission Provider, Transmission Owner or any of the Affiliates
or subsidiaries of either, that proposes to interconnect its
Generating Facility with the Transmission Provider's Transmission
System.
Interconnection Customer's Interconnection Facilities shall mean
all facilities and equipment, as identified in Appendix 2 of the
Standard Small Generator Interconnection Agreement, that are located
between the Generating Facility and the Point of Change of
Ownership, including any modification, addition, or upgrades to such
facilities and equipment necessary to physically and electrically
interconnect the Generating Facility to the Transmission Provider's
Transmission System. Interconnection Customer's Interconnection
Facilities are sole use facilities.
Interconnection Facilities shall mean the Transmission
Provider's Interconnection Facilities and the Interconnection
Customer's Interconnection Facilities. Collectively, Interconnection
Facilities include all facilities and equipment between the
Generating Facility and the Point of Interconnection, including any
modification, additions or upgrades that are necessary to physically
and electrically interconnect the Generating Facility to the
Transmission Provider's Transmission System. Interconnection
Facilities are sole use facilities and shall not include
Distribution Upgrades or Network Upgrades.
Interconnection Facilities Study shall mean a study conducted by
the Transmission Provider or a third party consultant for the
Interconnection Customer to determine a list of facilities
(including Transmission Provider's Interconnection Facilities and
Network Upgrades as identified in the Interconnection System Impact
Study), the cost of those facilities, and the time required to
interconnect the Generating Facility with the Transmission
Provider's Transmission System. The scope of the study is defined
the Standard Small Generator Interconnection Procedures.
Interconnection Facilities Study Agreement shall mean the form
of agreement contained in Appendix 5 of the Standard Small Generator
Interconnection Procedures for conducting the Interconnection
Facilities Study.
Interconnection Feasibility Study shall mean a preliminary
evaluation of the system impact and cost of interconnecting the
Generating Facility to the Transmission Provider's Transmission
System, the scope of which is described in the Standard Small
Generator Interconnection Procedures.
Interconnection Feasibility Study Agreement shall mean the form
of agreement contained in Appendix 3 of the Standard Small Generator
Interconnection Procedures for conducting the Interconnection
Feasibility Study.
Interconnection Request shall mean an Interconnection Customer's
request, in the form of Appendix 6 to the Standard Small Generator
Interconnection Procedures, in accordance with the Tariff, to
interconnect a new Generating Facility, or to increase the capacity
of, or make a Material Modification to the operating characteristics
of, an existing Generating Facility that is interconnected with the
Transmission Provider's Transmission System.
Interconnection Service shall mean the service provided by the
Transmission Provider associated with interconnecting the
Interconnection Customer's Generating Facility to the Transmission
Provider's Transmission System and enabling it to receive electric
energy and capacity from the Generating Facility at the Point of
Interconnection, pursuant to the terms of the Standard Small
Generator Interconnection Agreement and, if applicable, the
Transmission Provider's Tariff.
Interconnection Study shall mean any of the following studies:
the Interconnection Feasibility Study, the Interconnection System
Impact Study, and the Interconnection Facilities Study described in
the Standard Small Generator Interconnection Procedures.
Interconnection System Impact Study shall mean an engineering
study that evaluates the impact of the proposed interconnection on
the safety and reliability of Transmission Provider's Transmission
System and, if applicable, an Affected System. The study shall
identify and detail the system impacts that would result if the
Generating Facility were interconnected without project
modifications or system modifications, focusing on the Adverse
System Impacts identified in the Interconnection Feasibility Study,
or to study potential impacts, including but not limited to those
identified in the Scoping Meeting as described in the Standard Small
Generator Interconnection Procedures.
Interconnection System Impact Study Agreement shall mean the
form of agreement contained in Appendix 4 of the Standard Small
Generator Interconnection Procedures for conducting the
Interconnection System Impact Study.
Large Generating Facility shall mean a Generating Facility
having a Generating Facility Capacity of more than 20 MW.
Low-Voltage shall mean voltage levels below 69 kV.
Material Modification shall mean a modification that has a
material impact on the cost or timing of any Interconnection Request
with a later queue priority date.
Milestones shall mean the events and associated dates listed in
Appendix 3 of the Standard Small Generator Interconnection
Agreement. The Milestones describe events that are to be met by
either Party as the Generating Facility proceeds to interconnection
and Parallel Operation.
MW shall mean the abbreviation for megawatts, which is used to
describe the capacity of a generating facility.
NERC shall mean the North American Electric Reliability Council
or its successor organization.
Network Upgrades shall mean the additions, modifications, and
upgrades to the Transmission Provider's Transmission System required
at or beyond the point at which the Interconnection Customer
interconnects to the Transmission Provider's Transmission System to
accommodate the interconnection of the Generating Facility to the
Transmission Provider's Transmission System.
Operating Requirements shall mean any operating and technical
requirements that may be applicable due to Regional Transmission
Organization, Independent System Operator, Control Area, or
Transmission Provider requirements, including those set forth in
Appendix 4 of the Standard Small Generator Interconnection
Agreement.
Parallel Operation shall mean the two-way flow of power between
a generator and a Transmission System. Generators that operate in
parallel with a Transmission System require additional protection
and control devices. This may be contrasted with a stand-alone
generator that operates isolated from the utility company's electric
system.
Party or Parties shall mean Transmission Provider, Transmission
Owner, Interconnection Customer or any combination of the above.
Point of Change of Ownership shall mean the point, as set forth
in Appendix 2 of the Standard Small Generator Interconnection
Agreement, where the Interconnection Customer's Interconnection
Facilities connect to the Transmission Provider's Interconnection
Facilities.
Point of Common Coupling shall mean the point in the
interconnection of the Generating Facility with Transmission
Provider's Transmission System at which the harmonic limits are
applied.
Point of Interconnection shall mean the point, as set forth in
Appendix 2 of the Standard Small Generator Interconnection
Agreement, where the Interconnection Facilities connect to the
Transmission Provider's Transmission System.
Precertified shall describe a Generating Facility if an
identical sample of the manufacturer's model has been submitted to a
national testing laboratory and found, after appropriate testing, to
be in compliance with applicable consensus industry operational and
safety standards.
Queue Position shall mean the order of a valid Interconnection
Request, relative to all other pending valid Interconnection
Requests, that is established based upon the date and time of
receipt of the valid Interconnection Request by the Transmission
Provider.
Reasonable Efforts shall mean, with respect to an action
required to be attempted or taken by a Party under the Standard
Small Generator Interconnection Agreement, efforts that are timely
and consistent with Good Utility Practice and are otherwise
substantially equivalent to those a Party would use to protect its
own interests.
Rules shall mean the rules promulgated by FERC relating to the
interconnection of generators.
Scoping Meeting shall mean the meeting between representatives
of the Interconnection Customer and Transmission Provider conducted
for the purpose of discussing alternative interconnection options,
to exchange information including
[[Page 50006]]
any transmission data and earlier study evaluations that would be
reasonably expected to impact such interconnection options, to
analyze such information, and to determine the potential feasible
Points of Interconnection.
Secondary Network shall mean a type of Low-Voltage electric
system that is generally used in large metropolitan areas that are
densely populated in order to provide high reliability of service
(also known as secondary grid network or area network).
Site Control shall mean documentation reasonably demonstrating:
(1) Ownership of, a leasehold interest in, or a right to develop a
site for the purpose of constructing the Generating Facility, (2) an
option to purchase or acquire a leasehold site for such purpose, or
(3) an exclusivity or other business relationship between the
Interconnection Customer and the entity having the right to sell,
lease or grant the Interconnection Customer the right to possess or
occupy a site for such purpose.
Small Generating Facility shall mean a Generating Facility
having a Generating Facility Capacity of no more than 20 MW.
Standard Small Generator Interconnection Agreement (SGIA) shall
mean the form of interconnection agreement applicable to an
Interconnection Request pertaining to a Small Generating Facility,
that is included in the Transmission Provider's Tariff.
Standard Small Generator Interconnection Procedures (SGIP) shall
mean the interconnection procedures applicable to an Interconnection
Request pertaining to a Small Generating Facility that are included
in the Transmission Provider's Tariff.
Spot Network shall mean a type of Low-Voltage system found
within modern commercial buildings to provide high reliability of
service. Spot Networks generally use 12 kV to 480/277 volt vaults on
site.
Super-Expedited Procedures shall mean the process described in
Section 3 of the Standard Small Generator Interconnection Procedures
for Generating Facilities no larger than 2 MW interconnecting with
Transmission Provider's Low-Voltage Transmission System. The Super-
Expedited Procedures use the Super-Expedited Screening Criteria to
determine whether the proposed interconnection may cause an Adverse
System Impact on Transmission Provider's Transmission System.
Super-Expedited Screening Criteria shall mean the technical
variables that are employed in the Super-Expedited Procedures for
evaluating the interconnection of a Small Generating Facility no
larger than 2 MW to a Transmission Provider's Low-Voltage
Transmission System.
System Protection Facilities shall mean the equipment, including
necessary protection signal communications equipment, required to
protect (1) the Transmission Provider's Transmission System from
faults or other electrical disturbances occurring at the Generating
Facility and (2) the Generating Facility from faults or other
electrical system disturbances occurring on the Transmission
Provider's Transmission System or on other delivery systems or other
generating systems to which the Transmission Provider's Transmission
System is directly connected.
Tariff shall mean the Transmission Provider's Tariff through
which open access transmission service and Interconnection Service
are offered, as filed with the FERC, and as amended or supplemented
from time to time, or any successor tariff.
Technical Master shall mean a person, as described in Article 8
of the Standard Small Generator Interconnection Agreement, with
relevant technical experience selected to adjudicate disputes
between the Parties.
Term shall mean the duration of the Standard Small Generator
Interconnection Agreement.
Transmission Owner shall mean an entity that owns, leases or
otherwise possesses an interest in the portion of the Transmission
System at the Point of Interconnection and may be a Party to the
Standard Small Generator Interconnection Agreement to the extent
necessary.
Transmission Provider shall mean the public utility (or its
designated agent) that owns, controls, or operates transmission or
distribution facilities used for the transmission of electricity in
interstate commerce and provides transmission service under the
Tariff. The term Transmission Provider should be read to include the
Transmission Owner when the Transmission Owner is separate from the
Transmission Provider.
Transmission Provider's Interconnection Facilities shall mean
all facilities and equipment owned, controlled, or operated by the
Transmission Provider from the Point of Change of Ownership to the
Point of Interconnection as identified in Appendix 2 of the Standard
Small Generator Interconnection Agreement, including any
modifications, additions or upgrades to such facilities and
equipment. The Transmission Provider's Interconnection Facilities
are sole use facilities and shall not include Distribution Upgrades
or Network Upgrades.
Transmission System shall mean the facilities owned, controlled
or operated by the Transmission Provider or Transmission Owner that
are used to provide transmission service under the Tariff.
Upgrades shall mean the required additions and modifications to
the Transmission Provider's Transmission System at or beyond the
Point of Interconnection. Upgrades may be Network Upgrades or
Distribution Upgrades. Upgrades do not include Interconnection
Facilities.
Article 2. Scope and Limitations of Agreement
2.1 Scope and Limitations of Agreement. Transmission Provider
and Interconnection Customer agree to interconnect the Generating
Facility at the location described in Appendices 1 and 2 to this
agreement, in accordance with this agreement. This agreement governs
the facilities required to interconnect the Generating Facility to
Transmission Provider's Transmission System and contains the terms
and conditions under which Interconnection Customer may interconnect
the Generating Facility, as described in Appendices 1 and 2, and to
operate in parallel with Transmission Provider's Transmission
System. This agreement does not authorize Interconnection Customer
to export power or constitute an agreement to purchase or wheel
Interconnection Customer's power. The export, purchase, or wheeling
of power and other services that Interconnection Customer may
require from Transmission Provider will be covered under separate
agreements and nothing in this agreement is intended to affect any
other agreement between Transmission Provider and Interconnection
Customer. Interconnection Customer will be responsible for
separately making all necessary arrangements (including scheduling)
for delivery of electricity with Transmission Provider, distribution
provider, Independent System Operator, or Regional Transmission
Organization (as applicable).
2.2 Responsibilities of the Parties.
2.2.1 The Parties shall perform all obligations of this
agreement in accordance with all Applicable Laws and Regulations,
Operating Requirements, and Good Utility Practice.
2.2.2 Interconnection Customer shall construct, interconnect,
operate and maintain its Generating Facility and construct, operate,
and maintain its Interconnection Facilities in accordance with the
applicable manufacturer's recommended maintenance schedule, in
compliance with all aspects of the Rules, in accordance with this
agreement, and with Good Utility Practice.
2.2.3 Transmission Provider shall construct, operate, and
maintain its Transmission System and Interconnection Facilities in
compliance with all aspects of the Rules, in accordance with this
agreement, and with Good Utility Practice.
2.2.4 Interconnection Customer agrees to cause its facilities or
systems to be constructed in accordance with applicable
specifications that meet or exceed those provided by the National
Electrical Safety Code, the American National Standards Institute,
IEEE, Underwriter's Laboratory, and Operating Requirements in effect
at the time of construction and other applicable national and state
codes and standards. Interconnection Customer agrees to design,
install, maintain, and operate, or cause the design, installation,
maintenance, and operation of the Generating Facility so as to
reasonably minimize the likelihood of a disturbance, originating on
the system or equipment affecting or impairing the system or
equipment of Transmission Provider, or Affected Systems.
2.2.5 Each Party shall operate, maintain, repair, and inspect,
and shall be fully responsible for the facilities that it now or
subsequently may own unless otherwise specified in Appendices 1 and
2 of this agreement. Each Party shall be responsible for the safe
installation, maintenance, repair and condition of their respective
lines and appurtenances on their respective sides of the Point of
Change of Ownership. Transmission Provider and Interconnection
Customer, as appropriate, shall provide Interconnection Facilities
that adequately protect Transmission Provider's Transmission System,
personnel, and other persons from damage and injury. The allocation
of responsibility for the design, installation, operation,
maintenance and ownership of Interconnection Facilities shall
[[Page 50007]]
be delineated in Appendices 1, 2, 4, and 5 of this agreement.
2.2.6 Transmission Provider shall negotiate with all Affected
Systems in support of Interconnection Customer's interconnection
needs.
2.3 Parallel Operation Obligations. Once the Generating Facility
has been authorized to commence Parallel Operation, Interconnection
Customer shall abide by all rules and procedures pertaining to the
Parallel Operation of the Generating Facility in the applicable
Control Area, including, but not limited to, the rules and
procedures concerning the operation of generation set forth in the
Tariff or by the system operator for Transmission Provider's
Transmission System and the Operating Requirements set forth in
Appendix 4 of this agreement.
2.4 Metering. Interconnection Customer will be responsible for
Transmission Provider's reasonable and necessary cost for the
purchase, installation, operation, maintenance, testing, repair, and
replacement of metering and data acquisition equipment specified in
Appendices 1 and 2 of this agreement. Interconnection Customer's
metering (and data acquisition, as required) equipment shall conform
to applicable industry rules and operating requirements.
Article 3. Inspection, Testing, Authorization, and Right of Access
3.1 Equipment Testing and Inspection.
3.1.1 Interconnection Customer shall perform operational testing
and inspection of the Generating Facility and Interconnection
Facilities prior to interconnection. No fewer than five Business
Days (or as may be agreed to by the Parties) prior to such testing
and inspection, Interconnection Customer shall notify Transmission
Provider of such activities. Testing and inspection shall occur on a
Business Day. Transmission Provider may send qualified personnel to
the Generating Facility site to inspect the interconnection and
observe the Generating Facility's testing. Interconnection Customer
shall provide Transmission Provider a written test report when such
testing and inspection is completed.
3.1.2 Upon completion of such operational testing and inspection
and receipt of the written report, Transmission Provider shall
provide to Interconnection Customer written acknowledgment that it
has received Interconnection Customer's written report; provided,
however, any such written acknowledgment shall not be deemed to be
or construed as any representation, assurance, guarantee, or
warranty by Transmission Provider of the safety, durability,
suitability, or reliability of the Generating Facility or any
associated control, protective, and safety devices owned or
controlled by Interconnection Customer or the quality of power
produced by the Generating Facility.
3.2 Authorization Required Prior To Parallel Operation.
Transmission Provider will use its best efforts to identify any
requirements applicable to safe and reliable Parallel Operation and
to notify Interconnection Customer of any changed or additional
requirements as soon as they are known. Transmission Provider will
cooperate with Interconnection Customer in addressing and meeting
such requirements (including information and study requirements),
and to obtain appropriate notifications that such requirements are
met. Interconnection Customer will notify Transmission Provider once
it has complied with all such requirements. Upon such notification,
Transmission Provider will provide Interconnection Customer with
written authorization to operate the Generating Facility in parallel
with Transmission Provider's Transmission System. Such authorization
shall not be unreasonably withheld, conditioned or delayed.
3.3 Right of Access. Upon reasonable notice, and subject to any
required or necessary regulatory approvals, Interconnection Customer
shall furnish to Transmission Provider at no cost, and as agreed
upon by all Parties, any rights of use, licenses, rights of way, or
easements with respect to lands owned or controlled by
Interconnection Customer and its agents that are necessary to enable
Transmission Provider to obtain ingress and egress to construct,
operate, maintain, repair, test (or witness testing), inspect,
replace or remove facilities and equipment to: (1) Interconnect the
Generating Facility with Transmission Provider's Transmission
System, (2) operate and maintain the Generating Facility,
Interconnection Facilities (if required), and Transmission
Provider's Transmission System, and (3) disconnect or remove
Interconnection Customer's facilities and equipment upon termination
of this agreement. In exercising such licenses, rights of way, and
easements, Transmission Provider shall not unreasonably disrupt or
interfere with normal operation of Interconnection Customer's
property and shall adhere to all applicable safety rules and
procedures. In the event of Emergency Conditions or hazardous
conditions, Transmission Provider and Interconnection Customer shall
exercise all Reasonable Efforts to comply with these provisions.
Article 4. Effective Date, Term, Termination, and Disconnection
4.1 Effective Date. This agreement shall become effective upon
execution by the Parties subject to acceptance by FERC (if
applicable), or if filed unexecuted, upon the date specified by
FERC. Transmission Provider shall promptly file this agreement with
FERC upon execution, if required.
4.2 Term of Agreement. This agreement shall be effective on the
Effective Date and shall remain in effect for a period of ten years
from the Effective Date or such other longer period as the Parties
may agree and shall be automatically renewed for each successive
one-year period thereafter, unless terminated earlier in accordance
with Article 4.3 of this agreement.
4.3 Termination. No termination shall become effective until the
Parties have complied with all Applicable Laws and Regulations
applicable to such termination, including the filing with FERC of a
notice of termination of this agreement (if required), which notice
has been accepted for filing by FERC.
4.3.1 Interconnection Customer may terminate this agreement at
any time by giving Transmission Provider thirty Calendar Days
written notice.
4.3.2 In the event that there is a material change in Applicable
Laws and Regulations that would prevent Transmission Provider from
performing its obligations under this agreement or would impose a
substantial additional cost upon Transmission Provider to perform
its obligations under this agreement, and for which cost
Transmission Provider is not reimbursed by Interconnection Customer
or any other party, Transmission Provider may terminate this
agreement by giving Interconnection Customer at least thirty
Calendar Days prior written notice.
4.4 Temporary Disconnection.
4.4.1 Emergency Conditions. Under Emergency Conditions,
Transmission Provider shall have the right to immediately suspend
Interconnection Service and temporarily disconnect the Generating
Facility. Transmission Provider shall notify Interconnection
Customer promptly when it becomes aware of an Emergency Condition
that affects the Generating Facility or Transmission Provider's
Transmission System that may reasonably be expected to affect
Interconnection Customer's operation of the Generating Facility.
Interconnection Customer shall notify Transmission Provider promptly
when it becomes aware of an emergency condition that may reasonably
be expected to affect Transmission Provider's Transmission System or
other Affected Systems. To the extent information is known, the
notification shall describe the Emergency Condition, the extent of
the damage or deficiency, or the expected effect on the operation of
both Parties' facilities and operations, its anticipated duration,
and the necessary corrective action.
4.4.2 Routine Maintenance, Construction and Repair. Transmission
Provider shall have the right to interrupt Interconnection Service
or curtail the output of the Generating Facility and temporarily
disconnect the Generating Facility from Transmission Provider's
Transmission System when necessary for routine maintenance,
construction, and repairs on Transmission Provider's Transmission
System. Transmission Provider shall provide Interconnection Customer
with five Business Days notice prior to such interruption.
Transmission Provider shall use its best efforts to coordinate such
reduction or temporary disconnection with Interconnection Customer.
4.4.3 Forced Outages. During any forced outage of
Interconnection Customer's facilities, Transmission Provider shall
have the right to suspend Interconnection Service to effect
immediate repairs on Transmission Provider's Transmission System;
provided, however, Transmission Provider shall use its best efforts
to provide Interconnection Customer with prior notice. If prior
notice is not given, Transmission Provider will provide
Interconnection Customer written documentation after the fact
explaining the circumstances of the disconnection.
4.4.4 Adverse Operating Effects. Transmission Provider shall
notify Interconnection Customer that operation of the Generating
Facility may cause disruption
[[Page 50008]]
or deterioration of service to other customers served from the same
electric system or if operating the Generating Facility could cause
damage to Transmission Provider's Transmission System or Affected
Systems. If, after notice to Interconnection Customer has been
provided and a reasonable time to correct such adverse operating
effect has elapsed, consistent with the conditions, and
Interconnection Customer has failed to make such corrections,
Transmission Provider may disconnect the Generating Facility.
Transmission Provider shall provide Interconnection Customer with
five Business Days notice prior to such disconnection.
4.4.5 Modification of the Generating Facility. Interconnection
Customer must receive written authorization from Transmission
Provider before making any Material Modification to the Generating
Facility. If Interconnection Customer makes such modification
without Transmission Provider's prior written authorization, the
latter shall have the right to temporarily disconnect the Generating
Facility. Such authorization shall not be unreasonably withheld.
4.4.6 Reconnection. The Parties shall cooperate with each other
to restore the Generating Facility, Interconnection Facilities, and
Transmission Provider's Transmission System to their normal
operating state as soon as reasonably practicable following any
reduction or temporary disconnection.
Article 5. Cost Responsibility, Milestones, Billing, and Payment
5.1 Cost Responsibility.
5.1.1 Interconnection Facilities. Interconnection Customer will
pay for the cost of Interconnection Facilities itemized in Appendix
1 of this agreement. Transmission Provider will provide a best
estimate cost, including overheads, for the purchase and
construction of its Interconnection Facilities and provide a
detailed itemization of such costs. Costs associated with
Interconnection Facilities may be shared with other entities that
may benefit from such facilities by agreement of Interconnection
Customer, such other entities, and Transmission Provider.
5.1.2 Network Upgrades. Transmission Provider or Transmission
Owner shall design, procure, construct, install, and own Network
Upgrades described in Appendix 5 of this agreement. Unless
Transmission Provider or Transmission Provider elect to initially
pay for such facilities, the actual cost of the Network Upgrades,
including overheads, shall be borne by Interconnection Customer.
5.1.2.1 Refund of Amounts Advanced for Network Upgrades.
Interconnection Customer shall be entitled to a refund, equal to the
total amount paid to Transmission Provider and Affected Systems, if
any, for the Network Upgrades with interest, including any tax
gross-up or other tax-related payments, to be paid to
Interconnection Customer on a dollar-for-dollar basis, for the non-
usage sensitive portion of transmission charges, as payments are
made under Transmission Provider's Tariff and Affected Systems'
Tariffs. Notwithstanding the foregoing, Interconnection Customer,
Transmission Provider, and any Affected Systems may adopt any
alternative payment schedule that is mutually agreeable so long as
Transmission Provider and any Affected Systems refund all amounts
paid by Interconnection Customer, with interest, within five years
from the Commercial Operation Date. Transmission Provider and any
Affected Systems shall provide refunds to Interconnection Customer
only after commercial operation of the Generating Facility has been
demonstrated. If the Generating Facility fails to achieve commercial
operation, but it or another Generating Facility is later
constructed and makes use of the Network Upgrades, Transmission
Provider and Affected System Operator shall at that time provide
refunds to Interconnection Customer for the amounts advanced for the
Network Upgrades. Any refund shall include interest calculated in
accordance with the methodology set forth in FERC's regulations at
18 CFR 35.19a(a)(2)(ii) from the date of any payment for Network
Upgrades through the date on which Interconnection Customer receives
a refund of such payment pursuant to this subparagraph.
Interconnection Customer may assign such refund rights to any
person.
Notwithstanding any other provision of this agreement, nothing
herein shall be construed as relinquishing or foreclosing any
rights, including but not limited to firm transmission rights,
capacity rights, transmission congestion rights, or transmission
credits, that Interconnection Customer shall be entitled to, now or
in the future under any other agreement or tariff as a result of, or
otherwise associated with, the transmission capacity, if any,
created by the Network Upgrades, including the right to obtain
refunds or transmission credits for transmission service that is not
associated with the Generating Facility.
5.1.3 Distribution Upgrades. Transmission Provider or
Transmission Provider shall design, procure, construct, install, and
own the distribution Upgrades described in Appendix 5 of this
agreement. The actual cost of the Distribution Upgrades, including
overheads, shall be directly assigned to Interconnection Customer.
5.1.4 Operating and Maintenance Expenses. Subject to the
provisions herein addressing the use of facilities by others, and
except for operating and maintenance expenses associated with
modifications made for providing service to a third party and such
third party pays for such expenses, Interconnection Customer shall
be responsible for all reasonable expenses, including overheads,
associated with: (1) Owning, operating, maintaining, repairing, and
replacing its own Interconnection Facilities, and (2) operating,
maintaining, repairing, and replacing Transmission Provider's
Interconnection Facilities.
5.1.5 General. If the Parties agree that the Generating Facility
benefits Transmission Provider's Transmission System,
Interconnection Customer's cost responsibility for Transmission
Provider's Interconnection Facilities or Upgrades will be reduced
commensurate with such benefit. Benefits must be measurable and
verifiable.
Where multiple Interconnection Requests require Upgrades to
Transmission Provider's Transmission System, Interconnection
Customers will be assigned costs or benefits separately where
impacts can be separately attributed to respective projects. Where
such attribution is not possible, Interconnection Customers will
share costs or benefits in proportion to their projected Generating
Facility capacities.
5.2 Financial Security Arrangements. At least thirty Calendar
Days prior to the commencement of the procurement, installation, or
construction of a discrete portion of a Transmission Provider
Interconnection Facilities and Upgrades, Interconnection Customer
shall provide Transmission Provider, at Interconnection Customer's
option, a guarantee, a surety bond, letter of credit or other form
of security that is reasonably acceptable to Transmission Provider
and is consistent with the Uniform Commercial Code of the
jurisdiction where the Point of Interconnection is located. Such
security for payment shall be in an amount sufficient to cover the
costs for constructing, procuring, and installing the applicable
portion of Transmission Provider Interconnection Facilities and
Upgrades and shall be reduced on a dollar-for-dollar basis for
payments made to Transmission Provider under this agreement during
its Term. In addition:
The guarantee must be made by an entity that meets the
creditworthiness requirements of Transmission Provider, and contain
terms and conditions that guarantee payment of any amount that may
be due from Interconnection Customer, up to an agreed-to maximum
amount.
The letter of credit must be issued by a financial institution
reasonably acceptable to Transmission Provider and must specify a
reasonable expiration date.
The surety bond must be issued by an insurer reasonably
acceptable to Transmission Provider and must specify a reasonable
expiration date.
5.3 Milestones. Parties shall agree on milestones for which each
Party is responsible and list them in Appendix 3 of this agreement.
A Party's obligations under this provision may be extended by
agreement.
5.3.1 If Interconnection Customer fails to meet agreed
milestones for which it is responsible, other than for reasons of
Force Majeure, its responsibility for costs incurred to that point
by Transmission Provider will increase at the rate of interest
calculated in accordance with the methodology set forth in FERC's
regulations at 18 CFR 35.19a(a)(2)(ii) from the date of failure
until the date the Milestone is met.
5.3.2 If Transmission Provider fails to meet agreed milestones
for which it is responsible, other than for reasons of Force
Majeure, Interconnection Customer will be credited interest for
costs incurred to that point (including the Interconnection Request
processing fee and study costs incurred under the Standard Small
Generator Interconnection Procedures) calculated at the rate in
accordance with the methodology set forth in FERC's regulations at
18 CFR 35.19a(a)(2)(ii) from the date of failure until the date the
Milestone is met.
5.4 Billing and Payment. Billing and payment obligations for
services rendered,
[[Page 50009]]
for which Interconnection Customer is responsible under this
agreement shall be performed in accordance with Transmission
Provider's Tariff or in accordance with the terms of this agreement.
5.4.1 Billing Procedure for Interconnection Facilities
Construction. Transmission Provider shall bill Interconnection
Customer for monthly expenditures for the design, engineering and
construction of, or for other charges related to, Interconnection
Facilities contemplated by this agreement. Interconnection Customer
shall pay each bill within thirty Calendar Days after receipt
thereof.
5.4.2 Final Accounting. Within forty-five Calendar Days after
completion of the construction and installation of Transmission
Provider's Interconnection Facilities and/or Upgrades described in
Appendices 1, 2, and 5 of this agreement, Transmission Provider
shall provide Interconnection Customer with a final accounting
report of any difference between: (1) Interconnection Customer's
cost responsibility for the actual cost of such facilities under
this agreement, and (2) Interconnection Customer's previous
aggregate payments to Transmission Provider for such facilities. If
Interconnection Customer's cost responsibility under this agreement
exceeds its previous aggregate payments, Transmission Provider shall
invoice Interconnection Customer and Interconnection Customer shall
make payment to Transmission Provider. If Interconnection Customer's
previous aggregate payments exceed its cost responsibility under
this agreement, Transmission Provider shall refund to
Interconnection Customer an amount equal to the difference within
forty-five Calendar Days of the provision of such final accounting
report.
Article 6. Miscellaneous
6.1 Governing Law, Regulatory Authority and Rules. The validity,
interpretation and enforcement of this agreement and each of its
provisions shall be governed by the laws of the State where the
Point of Interconnection is located, without regard to its conflicts
of law principles. This agreement is subject to all Applicable Laws
and Regulations. Each Party expressly reserves the right to seek
changes in, appeal, or otherwise contest any laws, orders, Rules, or
regulations of a Governmental Authority.
6.2 Amendment. The Parties may by mutual agreement amend this
agreement by a written instrument duly executed by both of the
Parties.
6.3 No Third Party Beneficiaries. This agreement is not intended
to and does not create rights, remedies, or benefits of any
character whatsoever in favor of any persons, corporations,
associations, or entities other than the Parties, and the
obligations herein assumed are solely for the use and benefit of the
Parties, their successors in interest and where permitted, their
assigns.
6.4 Waiver. The failure of a Party to this agreement to insist,
on any occasion, upon strict performance of any provision of this
agreement will not be considered a waiver of any obligation, right,
or duty of, or imposed upon, such Party.
Any waiver at any time by either Party of its rights with
respect to this agreement shall not be deemed a continuing waiver or
a waiver with respect to any other failure to comply with any other
obligation, right, duty of this agreement. Termination or Default of
this agreement for any reason by Interconnection Customer shall not
constitute a waiver of Interconnection Customer's legal rights to
obtain an interconnection from Transmission Provider. Any waiver of
this agreement shall, if requested, be provided in writing.
6.5 Assignment. This agreement may be assigned by either Party
only with the written consent of the other; provided that either
Party may assign this agreement without the consent of the other
Party to any Affiliate of the assigning Party with an equal or
greater credit rating and with the legal authority and operational
ability to satisfy the obligations of the assigning Party under this
agreement; and provided further that Interconnection Customer shall
have the right to assign this agreement, without the consent of
Transmission Provider, for collateral security purposes to aid in
providing financing for the Generating Facility, provided that
Interconnection Customer will require any secured party, trustee or
mortgagee to notify Transmission Provider of any such assignment.
Any financing arrangement entered into by Interconnection Customer
pursuant to this article will provide that prior to or upon the
exercise of the secured party's, trustee's or mortgagee's assignment
rights pursuant to said arrangement, the secured creditor, the
trustee or mortgagee will notify Transmission Provider of the date
and particulars of any such exercise of assignment right(s). Any
attempted assignment that violates this article is void and
ineffective. Any assignment under this agreement shall not relieve a
Party of its obligations, nor shall a Party's obligations be
enlarged, in whole or in part, by reason thereof. Where required,
consent to assignment will not be unreasonably withheld, conditioned
or delayed.
6.6 Entire Agreement. This agreement, including all appendices
attached hereto, constitutes the entire agreement between the
Parties with reference to the subject matter hereof, and supersedes
all prior and contemporaneous understandings or agreements, oral or
written, between the Parties with respect to the subject matter of
this agreement. There are no other agreements, representations,
warranties, or covenants which constitute any part of the
consideration for, or any condition to, either Party's compliance
with its obligations under this agreement.
6.7 Notices. Unless otherwise provided in this agreement, any
notice, demand or request required or permitted to be given by
either Party to the other and any instrument required or permitted
to be tendered or delivered by either Party in writing to the other
shall be effective when delivered and may be so given, tendered or
delivered, by recognized national courier, or by depositing the same
with the United States Postal Service with postage prepaid, for
delivery by certified or registered mail, addressed to the Party, or
personally delivered to the Party, at the address set out below:
Transmission Provider:------------------------------------------------
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Interconnection Customer:---------------------------------------------
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Either Party may change the notice information by giving five
Business Days written notice prior to the effective date of the
change.
6.7.1 Billings and Payments. Billings and payments shall be sent
to the addresses set out below:
Transmission Provider:------------------------------------------------
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Interconnection Customer:---------------------------------------------
-----------------------------------------------------------------------
6.7.2 Alternative Forms of Notice. Any notice or request
required or permitted to be given by either Party to the other and
not required by this agreement to be given in writing may be so
given by telephone, facsimile or e-mail to the telephone numbers and
e-mail addresses set out below:
Transmission Provider:------------------------------------------------
-----------------------------------------------------------------------
Interconnection Customer:---------------------------------------------
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6.7.3 Operations and Maintenance Notice. Each Party shall notify
the other Party in writing of the identity of the person(s) that it
designates as the point(s) of contact with respect to operations and
maintenance the Party's facilities.
6.8 Multiple Counterparts. This agreement may be executed in two
or more counterparts, each of which is deemed an original but all
constitute one and the same instrument.
6.9 No Partnership. This agreement shall not be interpreted or
construed to create an association, joint venture, agency
relationship, or partnership between the Parties or to impose any
partnership obligation or partnership liability upon either Party.
Neither Party shall have any right, power or authority to enter into
any agreement or undertaking for, or act on behalf of, or to act as
or be an agent or representative of, or to otherwise bind, the other
Party.
6.10 Communications. Each Party will provide the other Party
with the name, title, address and phone numbers of its
representative to receive operational communications and to conduct
the daily communications which may be necessary or convenient for
the administration of this agreement. Such designations, including
names, addresses, and phone numbers, may be communicated or revised
by one Party's notice to the other in accordance with Article 6.7.
6.11 Severability. If any provision or portion of this agreement
shall for any reason be held or adjudged to be invalid or illegal or
unenforceable by any court of competent jurisdiction or other
Governmental Authority, (1) Such portion or provision shall be
deemed separate and independent, (2) the Parties shall negotiate in
good faith to restore insofar as practicable the benefits to each
Party that were affected by such ruling, and (3) the remainder of
this agreement shall remain in full force and effect.
6.12 Security Arrangements. Infrastructure security of
Transmission
[[Page 50010]]
System equipment and operations and control hardware and software is
essential to ensure day-to-day reliability and operational security.
The Commission expects all Transmission Providers, market
participants, and Interconnection Customers interconnected to
electric systems to comply with the recommendations offered by the
President's Critical Infrastructure Protection Board and,
eventually, best practice recommendations from the electric
reliability authority. All public utilities are expected to meet
basic standards for system infrastructure and operational security,
including physical, operational, and cyber-security practices.
6.13 Indemnity. The Parties shall at all times indemnify,
defend, and save the other Party harmless from, any and all damages,
losses, claims, including claims and actions relating to injury to
or death of any person or damage to property, demand, suits,
recoveries, costs and expenses, court costs, attorney fees, and all
other obligations by or to third parties, arising out of or
resulting from the other Party's action or inactions of its
obligations under this agreement on behalf of the indemnifying
Party, except in cases of gross negligence or intentional wrongdoing
by the Indemnified Party.
Indemnified Person. If an Indemnified Person is entitled to
indemnification under this article as a result of a claim by a third
party, and the Indemnifying Party fails, after notice and reasonable
opportunity to proceed under this article, to assume the defense of
such claim, such Indemnified Person may at the expense of the
Indemnifying Party contest, settle or consent to the entry of any
judgement with respect to, or pay in full, such claim.
Indemnifying Party. If an Indemnifying Party is obligated to
indemnify and hold any Indemnified Person harmless under this
article, the amount owing to the Indemnified Person shall be the
amount of such Indemnified Person's actual Loss, net of any
insurance or other recovery.
Indemnity Procedures. Promptly after receipt by an Indemnified
Person of any claim or notice of the commencement of any action or
administrative or legal proceeding or investigation as to which the
indemnity provided for in this article may apply, the Indemnified
Person shall notify the Indemnifying Party of such fact. Any failure
of or delay in such notification shall not affect a Party's
indemnification obligation unless such failure or delay is
materially prejudicial to the Indemnifying Party.
The Indemnifying Party shall have the right to assume the
defense thereof with counsel designated by such Indemnifying Party
and reasonably satisfactory to the Indemnified Person. If the
defendants in any such action include one or more Indemnified
Persons and the Indemnifying Party and if the Indemnified Person
reasonably concludes that there may be legal defenses available to
it and/or other Indemnified Persons which are different from or
additional to those available to the Indemnifying Party, the
Indemnified Person shall have the right to select separate counsel
to assert such legal defenses and to otherwise participate in the
defense of such action on its own behalf. In such instances, the
Indemnifying Party shall only be required to pay the fees and
expenses of one additional attorney to represent an Indemnified
Person or Indemnified Persons having such differing or additional
legal defenses.
The Indemnified Person shall be entitled, at its expense, to
participate in any such action, suit or proceeding, the defense of
which has been assumed by the Indemnifying Party. Notwithstanding
the foregoing, the Indemnifying Party (1) shall not be entitled to
assume and control the defense of any such action, suit or
proceedings if and to the extent that, in the opinion of the
Indemnified Person and its counsel, such action, suit or proceeding
involves the potential imposition of criminal liability on the
Indemnified Person, or there exists a conflict or adversity of
interest between the Indemnified Person and the Indemnifying Party,
in such event the Indemnifying Party shall pay the reasonable
expenses of the Indemnified Person, and (2) shall not settle or
consent to the entry of any judgement in any action, suit or
proceeding without the consent of the Indemnified Person, which
shall not be reasonably withheld, conditioned or delayed.
6.14 Force Majeure. Economic hardship is not considered a Force
Majeure event.
Neither Party shall be considered to be in Default with respect
to any obligation hereunder other than the obligation to pay money
when due, if prevented from fulfilling such obligation by Force
Majeure. A Party unable to fulfill any obligation hereunder (other
than an obligation to pay money when due) by reason of Force Majeure
shall give notice and the full particulars of such Force Majeure to
the other Party in writing or by telephone as soon as reasonably
possible after the occurrence of the cause relied upon. Telephone
notices given pursuant to this article shall be confirmed in writing
as soon as reasonably possible and shall specifically state full
particulars of the Force Majeure, the time and date when the Force
Majeure occurred and when the Force Majeure is reasonably expected
to cease. The Party affected shall exercise due diligence to remove
such disability with reasonable dispatch, but shall not be required
to accede or agree to any provision not satisfactory to it in order
to settle and terminate a strike or other labor disturbance.
6.15 Environmental Releases. Each Party shall notify the other
Party, first orally and then in writing, of the release of any
hazardous substances, any asbestos or lead abatement activities, or
any type of remediation activities related to the Generating
Facility or the Interconnection Facilities, each of which may
reasonably be expected to affect the other Party. The notifying
Party shall: (1) Provide the notice as soon as practicable, provided
such Party makes a good faith effort to provide the notice no later
than twenty-four hours after such Party becomes aware of the
occurrence, and (2) promptly furnish to the other Party copies of
any publicly available reports filed with any governmental
authorities addressing such events.
6.16 Insurance. Each Party shall, at its own expense, maintain
in force throughout the period of the Standard Small Generator
Interconnection Agreement, and until released by the other Party,
the following minimum insurance coverages, with insurers authorized
to do business in the State where the Point of Interconnection is
located:
6.16.1 Employers' Liability and Workers' Compensation Insurance
providing statutory benefits in accordance with the laws and
regulations of the State in which the Point of Interconnection is
located. The minimum limits for the Employers' Liability Insurance
shall be ($----) each accident bodily injury by accident, ($----)
each employee bodily injury by disease, and ($----) policy limit
bodily injury by disease.
6.16.2 Commercial General Liability Insurance including premises
and operations, personal injury, broad form property damage, broad
form blanket contractual liability coverage (including coverage for
the contractual indemnification) products and completed operations
coverage, coverage for explosion, collapse and underground hazards,
independent contractors coverage, coverage for pollution to the
extent normally available and punitive damages to the extent
normally available and a cross liability endorsement, with minimum
limits of ($----) per occurrence/($----) aggregate combined single
limit for personal injury, bodily injury, including death and
property damage.
6.16.3 Comprehensive Automobile Liability Insurance for coverage
of owned and non-owned and hired vehicles, trailers or semi-trailers
designed for travel on public roads, with a minimum, combined single
limit of ($----) per occurrence for bodily injury, including death,
and property damage.
6.16.4 Excess Public Liability Insurance over and above the
Employers' Liability Commercial General Liability and Comprehensive
Automobile Liability Insurance coverage, with a minimum combined
single limit of ($----) per occurrence/($----) aggregate.
6.16.5 The Commercial General Liability Insurance, Comprehensive
Automobile Insurance and Excess Public Liability Insurance polies
shall name the other Party, its parent, associated and Affiliate
companies and their respective directors, officers, agents, servants
and employees (``Other Party Group'') as additional insured. All
policies shall contain provisions whereby the insurers waive all
rights of subrogation in accordance with the provisions of the
Standard Small Generator Interconnection Agreement against the Other
Party Group and provide thirty days advance written notice to the
Other Party Group prior to anniversary date of cancellation or any
material change in coverage or condition.
6.16.6 The Commercial General Liability Insurance, Comprehensive
Automobile Liability Insurance and Excess Public Liability Insurance
policies shall contain provisions that specify that the policies are
primary and shall apply to such extent without consideration for
other policies separately carried and shall state that each insured
is provided coverage as though a separate policy had been issued to
each, except the insurer's liability shall not be
[[Page 50011]]
increased beyond the amount for which the insurer would have been
liable had only one insured been covered. Each Party shall be
responsible for its respective deductibles or retentions.
6.16.7 The Commercial General Liability Insurance, Comprehensive
Automobile Liability Insurance and Excess Public Liability Insurance
policies, if written on a Claims First Made Basis, shall be
maintained in full force and effect for two years after termination
of the Standard Small Generator Interconnection Agreement, which
coverage may be in the form of tail coverage or extended reporting
period coverage if agreed by the Parties.
6.16.8 The requirements contained herein as to the types and
limits of all insurance to be maintained by the Parties are not
intended to and shall not in any manner, limit or qualify the
liabilities and obligations assumed by the Parties under the
Standard Small Generator Interconnection Agreement.
6.16.9 Within ten days following execution of the Standard Small
Generator Interconnection Agreement, and as soon as practicable
after the end of each fiscal year or at the renewal of the insurance
policy and in any event within ninety days thereafter, each Party
shall provide certification of all insurance required in the
Standard Small Generator Interconnection Agreement, executed by each
insurer or by an authorized representative of each insurer.
6.16.10 Notwithstanding the foregoing, each Party may self-
insure to the extent it maintains a self-insurance program; provided
that, such Party's senior secured debt is rated at investment grade,
or better, by Standard & Poor's. For any period of time that a
Party's senior secured debt is unrated by Standard & Poor's or is
rated at less than investment grade by Standard & Poor's, such Party
shall comply with the insurance requirements applicable to it under
Articles 6.16.1 through 6.16.9. In the event that a Party is
permitted to self-insure pursuant to this Article 6.16.10, it shall
not be required to comply with the insurance requirements applicable
to it under Articles 6.16.1 through 6.16.9.
6.16.11 The Parties agree to report to each other in writing as
soon as practical all accidents or occurrences resulting in injuries
to any person, including death, and any property damage arising out
of the Standard Small Generator Interconnection Agreement.
6.17 Default.
6.17.1 General. No Default shall exist where such failure to
discharge an obligation (other than the payment of money) is the
result of Force Majeure as defined in this agreement or the result
of an act or omission of the other Party. Upon a Default, the non-
defaulting Party shall give written notice of such Default to the
defaulting Party. Except as provided in Article 6.17.2, the
defaulting Party shall have thirty Calendar Days from receipt of the
Default notice within which to cure such Default; provided however,
if such Default is not capable of cure within thirty Calendar Days,
the defaulting Party shall commence such cure within thirty Calendar
Days after notice and continuously and diligently complete such cure
within ninety Calendar Days from receipt of the Default notice; and,
if cured within such time, the Default specified in such notice
shall cease to exist.
6.17.2 Right To Terminate. If a Default is not cured as provided
in this article, or if a Default is not capable of being cured
within the period provided for herein, the non-defaulting Party
shall have the right to terminate this agreement by written notice
at any time until cure occurs, and be relieved of any further
obligation hereunder and, whether or not that Party terminates this
agreement, to recover from the defaulting Party all amounts due
hereunder, plus all other damages and remedies to which it is
entitled at law or in equity. The provisions of this article will
survive termination of this agreement.
6.18 Subcontractors.
6.18.1 General. Nothing in this Agreement shall prevent a Party
from utilizing the services of any subcontractor as it deems
appropriate to perform its obligations under this Agreement;
provided, however, that each Party shall require its subcontractors
to comply with all applicable terms and conditions of this Agreement
in providing such services and each Party shall remain primarily
liable to the other Party for the performance of such subcontractor.
6.18.2 Responsibility of Principal. The creation of any
subcontract relationship shall not relieve the hiring Party of any
of its obligations under this Agreement. The hiring Party shall be
fully responsible to the other Party for the acts or omissions of
any subcontractor the hiring Party hires as if no subcontract had
been made; provided, however, that in no event shall the
Transmission Provider be liable for the actions or inactions of the
Interconnection Customer or its subcontractors with respect to
obligations of the Interconnection Customer under Article 5 of this
Agreement. Any applicable obligation imposed by this Agreement upon
the hiring Party shall be equally binding upon, and shall be
construed as having application to, any subcontractor of such Party.
6.18.3 No Limitation by Insurance. The obligations under this
article will not be limited in any way by any limitation of
subcontractor's insurance.
6.19 Consequential Damages. Other than as expressly provided for
in this agreement, neither Party shall be liable under any provision
of this agreement for any losses, damages, costs or expenses for any
special, indirect, incidental, consequential, or punitive damages,
including but not limited to loss of profit or revenue, loss of the
use of equipment, cost of capital, cost of temporary equipment or
services, whether based in whole or in part in contract, in tort,
including negligence, strict liability, or any other theory of
liability; provided, however, that damages for which a Party may be
liable to the other Party under another agreement will not be
considered to be special, indirect, incidental, or consequential
damages hereunder.
6.20 Reservation of Rights. Transmission Provider shall have the
right to make a unilateral filing with FERC to modify this LGIA with
respect to any rates, terms and conditions, charges, classifications
of service, rule or regulation under section 205 or any other
applicable provision of the Federal Power Act and FERC's rules and
regulations thereunder, and Interconnection Customer shall have the
right to make a unilateral filing with FERC to modify this LGIA
pursuant to section 206 or any other applicable provision of the
Federal Power Act and FERC's rules and regulations thereunder;
provided that each Party shall have the right to protest any such
filing by the other Party and to participate fully in any proceeding
before FERC in which such modifications may be considered. Nothing
in this LGIA shall limit the rights of the Parties or of FERC under
sections 205 or 206 of the Federal Power Act and FERC's rules and
regulations thereunder, except to the extent that the Parties
otherwise mutually agree as provided herein.
Article 7. Confidentiality
7.1 Confidentiality. Confidential Information shall include,
without limitation, all information relating to a Party's
technology, research and development, business affairs, and pricing,
and any information supplied by either of the Parties to the other
prior to the execution of this Agreement.
Information is Confidential Information only if it is clearly
designated or marked in writing as confidential on the face of the
document, or, if the information is conveyed orally or by
inspection, if the Party providing the information orally informs
the Party receiving the information that the information is
confidential.
If requested by either Party, the other Party shall provide in
writing, the basis for asserting that the information referred to in
this Article warrants confidential treatment, and the requesting
Party may disclose such writing to the appropriate Governmental
Authority. Each Party shall be responsible for the costs associated
with affording confidential treatment to its information.
7.2 Term. During the term of this agreement, and for a period of
three years after the expiration or termination of this agreement,
except as otherwise provided in this article, each Party shall hold
in confidence and shall not disclose to any person Confidential
Information.
7.3 Scope. Confidential Information shall not include
information that the receiving Party can demonstrate: (1) Is
generally available to the public other than as a result of a
disclosure by the receiving Party, (2) was in the lawful possession
of the receiving Party on a non-confidential basis before receiving
it from the disclosing Party, (3) was supplied to the receiving
Party without restriction by a third party, who, to the knowledge of
the receiving Party after due inquiry, was under no obligation to
the disclosing Party to keep such information confidential, (4) was
independently developed by the receiving Party without reference to
Confidential Information of the disclosing Party, (5) is, or
becomes, publicly known, through no wrongful act or omission of the
receiving Party or Breach of this agreement, or (6) is required, in
accordance with Article 7.8 (Order of Disclosure) to be disclosed by
any Governmental Authority or is otherwise required to be disclosed
by law or subpoena, or is necessary in any legal
[[Page 50012]]
proceeding establishing rights and obligations under this agreement.
Information designated as Confidential Information will no longer be
deemed confidential if the Party that designated the information as
confidential notifies the other Party that it no longer is
confidential.
7.4 Release of Confidential Information. Neither Party shall
release or disclose Confidential Information to any other person,
except to its employees, consultants, or to parties who may be or
considering providing financing to or equity participation with
Interconnection Customer, or to potential purchasers or assignees of
Interconnection Customer, on a need-to-know basis in connection with
this agreement, unless such person has first been advised of the
confidentiality provisions of this article and has agreed to comply
with such provisions. Notwithstanding the foregoing, a Party
providing Confidential Information to any person shall remain
primarily responsible for any release of Confidential Information in
contravention of this article.
7.5 Rights. Each Party retains all rights, title, and interest
in the Confidential Information that each Party discloses to the
other Party. The disclosure by each Party to the other Party of
Confidential Information shall not be deemed a waiver by either
Party or any other person or entity of the right to protect the
Confidential Information from public disclosure.
7.6 No Warranties. By providing Confidential Information,
neither Party makes any warranties or representations as to its
accuracy or completeness. In addition, by supplying Confidential
Information, neither Party obligates itself to provide any
particular information or Confidential Information to the other
Party nor to enter into any further agreements or proceed with any
other relationship or joint venture.
7.7 Standard of Care. Each Party shall use at least the same
standard of care to protect Confidential Information it receives as
it uses to protect its own Confidential Information from
unauthorized disclosure, publication or dissemination. Each Party
may use Confidential Information solely to fulfill its obligations
to the other Party under this agreement or its regulatory
requirements.
7.8 Order of Disclosure. If a court or a Government Authority or
entity with the right, power, and apparent authority to do so
requests or requires either Party, by subpoena, oral deposition,
interrogatories, requests for production of documents,
administrative order, or otherwise, to disclose Confidential
Information, that Party shall provide the other Party with prompt
notice of such request(s) or requirement(s) so that the other Party
may seek an appropriate protective order or waive compliance with
the terms of this Agreement. Notwithstanding the absence of a
protective order or waiver, the Party may disclose such Confidential
Information which, in the opinion of its counsel, the Party is
legally compelled to disclose. Each Party will use Reasonable
Efforts to obtain reliable assurance that confidential treatment
will be accorded any Confidential Information so furnished.
7.9 Termination of Agreement. Upon termination of this agreement
for any reason, each Party shall, within ten Calendar Days of
receipt of a written request from the other Party, use Reasonable
Efforts to destroy, erase, or delete (with such destruction,
erasure, and deletion certified in writing to the other Party) or
return to the other Party, without retaining copies thereof, any and
all written or electronic Confidential Information received from the
other Party.
7.10 Remedies. The Parties agree that monetary damages would be
inadequate to compensate a Party for the other Party's Breach of its
obligations under this article. Each Party accordingly agrees that
the other Party shall be entitled to equitable relief, by way of
injunction or otherwise, if the first Party Breaches or threatens to
Breach its obligations under this article, which equitable relief
shall be granted without bond or proof of damages, and the receiving
Party shall not plead in defense that there would be an adequate
remedy at law. Such remedy shall not be deemed an exclusive remedy
for the Breach of this article, but shall be in addition to all
other remedies available at law or in equity. The Parties further
acknowledge and agree that the covenants contained herein are
necessary for the protection of legitimate business interests and
are reasonable in scope. No Party, however, shall be liable for
indirect, incidental, or consequential or punitive damages of any
nature or kind resulting from or arising in connection with this
article.
7.11 Disclosure to FERC or its Staff. Notwithstanding anything
in this article to the contrary, and pursuant to 18 CFR 1b.20, if
FERC or its staff, during the course of an investigation or
otherwise, requests information from one of the Parties that is
otherwise required to be maintained in confidence pursuant to this
Agreement, the Party shall provide the requested information to FERC
or its staff, within the time provided for in the request for
information. In providing the information to FERC or its staff, the
Party may, consistent with 18 CFR 388.112, request that the
information be treated as confidential and non-public by FERC and
its staff and that the information be withheld from public
disclosure. Parties are prohibited from notifying the other Party to
this LGIA prior to the release of the Confidential Information to
the Commission or its staff. The Party shall notify the other Party
to this agreement when it is notified by FERC or its staff that a
request to release Confidential Information has been received by
FERC, at which time either of the Parties may respond before such
information would be made public, pursuant to 18 CFR 38.112.
7.12 Competitively Sensitive, Commercial or Financial
Information. Subject to the exception in Article 7.11, any
information that a Party claims is competitively sensitive,
commercial or financial information under this agreement
(``Confidential Information'') shall not be disclosed by the other
Party to any person not employed or retained by the other Party,
except to the extent disclosure is (1) required by law, (2)
reasonably deemed by the disclosing Party to be required to be
disclosed in connection with a dispute between or among the Parties,
or the defense of litigation or dispute, (3) otherwise permitted by
consent of the other Party, such consent not to be unreasonably
withheld, or (4) necessary to fulfill its obligations under this
agreement or as a transmission service provider or a Control Area
operator including disclosing the Confidential Information to the
RTO or ISO or to a regional or national reliability organization.
The Party asserting confidentiality shall notify the other Party in
writing of the information it claims is confidential. Prior to any
disclosures of the other Party's Confidential Information under this
subparagraph, or if any third party or Governmental Authority makes
any request or demand for any of the information described in this
subparagraph, the disclosing Party agrees to promptly notify the
other Party in writing and agrees to assert confidentiality and
cooperate with the other Party in seeking to protect the
Confidential Information from public disclosure by confidentiality
agreement, protective order or other reasonable measures.
7.13 Information in Public Domain. This provision shall not
apply to any information that was or is hereafter in the public
domain (except as a result of a Breach of this provision).
Article 8. Disputes
8.1 Submission. In the event either Party has a dispute, or
asserts a claim, that arises out of or in connection with this
agreement or its performance, such Party (the ``Disputing Party'')
shall provide the other Party with written notice of the dispute or
claim (``Notice of Dispute''). Such dispute or claim shall be
referred to a designated senior representative of each Party for
resolution on an informal basis as promptly as practicable after
receipt of the Notice of Dispute by the other Party. In the event
the designated representatives are unable to resolve the claim or
dispute through unassisted or assisted negotiations within thirty
Calendar Days of the other Party's receipt of the Notice of Dispute,
such claim or dispute may, upon agreement of the Parties, be
submitted to arbitration and resolved in accordance with the
arbitration procedures set forth below. In the event the Parties do
not agree to submit such claim or dispute to arbitration, each Party
may exercise whatever rights and remedies it may have in equity or
at law consistent with the terms of this agreement.
8.2 External Arbitration Procedures. Any arbitration initiated
under this agreement shall be conducted before a single neutral
Arbitrator/Technical Master (hereinafter referred to as Arbitrator)
appointed by the Parties. If the Parties fail to agree upon a single
Arbitrator within ten Calendar Days of the submission of the dispute
to arbitration, each Party shall choose one Arbitrator who shall sit
on a three-member arbitration panel. The two Arbitrators so chosen
shall within 20 Calendar Days select a third Arbitrator to chair the
arbitration panel. In either case, the Arbitrators shall be
knowledgeable in electric utility matters, including electric
transmission and bulk power issues, and shall not have any current
or past substantial business or financial relationships with any
party to the arbitration (except prior arbitration). The
Arbitrator(s) shall provide each of the Parties an opportunity to be
heard and, except as otherwise provided herein,
[[Page 50013]]
shall conduct the arbitration in accordance with the Commercial
Arbitration Rules of the American Arbitration Association
(``Arbitration Rules'') and any applicable FERC regulations or
Regional Transmission Organization rules; provided, however, in the
event of a conflict between the Arbitration Rules and the terms of
this article, the terms of this article shall prevail.
8.3 Arbitration Decisions. Unless otherwise agreed by the
Parties, the Arbitrator(s) shall render a decision within 90
Calendar Days of appointment and shall notify the Parties in writing
of such decision and the reasons therefor. The Arbitrator(s) shall
be authorized only to interpret and apply the provisions of this
agreement and shall have no power to modify or change any provision
of this agreement in any manner. The decision of the Arbitrator(s)
shall be final and binding upon the Parties, and judgment on the
award may be entered in any court having jurisdiction. The decision
of the Arbitrator(s) may be appealed solely on the grounds that the
conduct of the Arbitrator(s), or the decision itself, violated the
standards set forth in the Federal Arbitration Act or the
Administrative Dispute Resolution Act. The final decision of the
Arbitrator must also be filed with FERC if it affects jurisdictional
rates, terms and conditions of service, Interconnection Facilities,
or Upgrades.
8.4 Costs. Each Party shall be responsible for its own costs
incurred during the arbitration process and for the following costs,
if applicable: (1) The cost of the Arbitrator chosen by the Party to
sit on the three-member panel and one half of the cost of the third
Arbitrator chosen, or (2) one half the cost of the single Arbitrator
jointly chosen by the Parties.
Article 9. Signatures
In witness whereof, Parties have caused this agreement to be
executed by their respective duly authorized representatives.
For Transmission Provider
Name:------------------------------------------------------------------
Title:-----------------------------------------------------------------
Date:------------------------------------------------------------------
For Transmission Owner (If Applicable)
Name:------------------------------------------------------------------
Title:-----------------------------------------------------------------
Date:------------------------------------------------------------------
For Interconnection Customer
Name:------------------------------------------------------------------
Title:-----------------------------------------------------------------
Date:------------------------------------------------------------------
Appendix 1
Description and Costs of Generating Facility, Interconnection
Facilities, and Metering Equipment
Equipment, including the Generating Facility, Interconnection
Facilities, and metering equipment shall be itemized and identified
as being owned by Interconnection Customer, Transmission Provider,
or Transmission Owner. Transmission Provider will provide a best
estimate itemized cost, including overheads, of its Interconnection
Facilities and metering equipment, and a best estimate itemized cost
of the annual operation and maintenance expenses associated with its
Interconnection Facilities and metering equipment.
Appendix 2
One-line Diagram Depicting Generating Facility, Interconnection
Facilities, Metering Equipment, and Upgrades
Appendix 3
Milestones
In-Service Date:------------------------------------------------------
Critical milestones and responsibility as agreed to by the
Parties:
[[Page 50014]]
Milestone/Date Responsible Party
(1)
--------------------------------------------------------------------- ------------------------------------
(2)
--------------------------------------------------------------------- ------------------------------------
(3)
--------------------------------------------------------------------- ------------------------------------
(4)
--------------------------------------------------------------------- ------------------------------------
(5)
--------------------------------------------------------------------- ------------------------------------
(6)
--------------------------------------------------------------------- ------------------------------------
(7)
--------------------------------------------------------------------- ------------------------------------
(8)
--------------------------------------------------------------------- ------------------------------------
(9)
--------------------------------------------------------------------- ------------------------------------
(10)
--------------------------------------------------------------------- ------------------------------------
Agreed to by:
For Transmission Provider ..... Date
--------------------------------------------------------------------- ------------------------------------
For Transmission Owner (If Applicable) ..... Date
--------------------------------------------------------------------- ------------------------------------
For Interconnection Customer ..... Date
--------------------------------------------------------------------- ------------------------------------
Appendix 4
Additional Operating Requirements for Interconnection Provider's
Transmission System and Affected Systems Needed To Support
Interconnection Customer's Needs
Transmission Provider shall also provide requirements that must
be met by Interconnection Customer prior to initiating Parallel
Operation with Transmission Provider's Transmission System.
Appendix 5
Transmission Provider's Description of Transmission System Upgrades and
Best Estimate of Upgrade Costs
Transmission Provider shall describe Upgrades and provide an
itemized best estimate of the cost, including overheads, of the
Upgrades and annual operation and maintenance expenses associated
with such Upgrades. Transmission Provider shall functionalize
Upgrade costs and annual expenses as either transmission or
distribution related.
[FR Doc. 03-20155 Filed 8-18-03; 8:45 am]
BILLING CODE 6718-01-P