Sec. 20.50.09.10. Level 2 Review

A. The utility shall evaluate a Level 2 small generator facility for the potential for adverse system impacts using the following:

(1) For interconnection of a proposed small generator facility:

(a) To a radial distribution circuit, the aggregate generation on the circuit, including the proposed small generator facility, may not exceed 15 percent of the line section annual peak load most recently measured at the substation or calculated for the line section; or

(b) To a spot network:

(i) When the interconnection of a proposed small generator facility is to the load side of spot network protectors, the proposed small generator facility shall utilize an inverter-based equipment package;

(ii) The applicant's interconnection equipment proposed for the small generator facility shall be lab-certified or field-approved; and

(iii) A small generator facility, when aggregated with other generation, the aggregate generation on the spot network, may not exceed 5 percent of a spot network's maximum load if the spot network serves more than one customer;

(2) For fault current limitations:

(a) The nameplate capacity of the proposed small generator facility, in aggregation with other generation and energy storage devices on the distribution circuit, may not contribute more than 10 percent to the electric distribution circuit's maximum fault current at the point on the primary line nearest the point of interconnection;

(b) The nameplate capacity of the proposed small generator facility, in aggregation with other generation and energy storage devices on the distribution circuit, may not cause any distribution protective devices and equipment including substation breakers, fuse cutouts, and line reclosers, or other customer equipment on the electric distribution system to be exposed to fault currents exceeding 90 percent of the short circuit interrupting capability; and

(c) The interconnection request may not request interconnection on a circuit that already exceeds 90 percent of the short circuit interrupting capability;

(3) The proposed small generator facility's point of interconnection may not be on a transmission line;

(4) When a small generator facility is to be connected to 3-phase, 3-wire primary utility distribution lines, a 3-phase or single-phase generator shall be connected phase-to-phase;

(5) When a small generator facility is to be connected to 3-phase, 4-wire primary utility distribution lines, a 3-phase or single-phase generator will be connected line-to-neutral and will be effectively grounded;

(6) When the proposed small generator facility is to be interconnected on single-phase shared secondary line, the aggregate generation on the shared secondary line, including the proposed small generator facility, may not exceed 20 kW;

(7) When a proposed small generator facility is single-phase and is to be interconnected on a center tap neutral of a 240 volt service, its addition may not create an imbalance between the two sides of the 240 volt service of more than 20 percent of the nameplate rating of the service transformer;

(8) A small generator facility, in aggregate with other generation and energy storage devices interconnected to the distribution side of a substation transformer feeding the circuit where the small generator facility proposes to interconnect, the aggregate generation may 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;

(9) As an alternative method to evaluate the adverse system impacts of a proposed Level 2 small generator facility on the distribution system, as described in §A(1)-(8) of this regulation, a utility may use a power-flow based analysis system if the utility has submitted:

(a) A plan, subject to Commission approval, that describes its methodology for its power-flow based modeling system and includes reasoning for each screen used to evaluate an application; and

(b) Information about the system’s results, as required in Regulation .14 of this chapter;

(10) Except as permitted by an additional review in §G of this regulation, no modification or construction of additional facilities by a utility of its distribution system, with the exception of metering or a minor system modification, shall be required to accommodate the small generator facility; and

(11) If the proposed interconnection facility requires a minor system modification, the utility shall notify the applicant of that requirement when it provides the Level 2 evaluation result, as follows:

(a) The applicant must inform the utility within 10 business days if the applicant elects to continue the application;

(b) If the applicant makes such an election, the utility shall provide an interconnection agreement, along with a non-binding good faith cost estimate and construction schedule for those upgrades, to the applicant within 30 calendar days after the utility receives such an election; and

(c) The applicant shall have 30 calendar days, or other mutually agreeable time frame after receipt of the interconnection agreement, to sign and return such agreement.

B. A utility shall, within 5 business days after receipt of the interconnection request, inform the applicant that the interconnection request is:

(1) Complete; or

(2) Incomplete and what materials are missing;

C. Queue Position.

(1) When an interconnection request is complete, the utility shall assign a queue position.

(2) The queue position of the interconnection request shall be used to determine the potential adverse system impact of the small generator facility based on the relevant screening criteria.

(3) The utility shall notify the applicant of any other higher queue position applicants on the same line section or spot network for which interconnection is sought.

(4) Queue position may not be forfeited or otherwise impacted by the submission of a dispute under the provisions of Regulation .13 of this chapter.

D. When a utility determines additional information is required to complete an evaluation:

(1) The utility shall request the information;

(2) The time necessary to complete the evaluation may be extended, but only to the extent of the delay required for receipt of the additional information; and

(3) When additional information is required, the utility may not revert to the start of the review process or alter the applicant's queue position.

E. Within 20 business days after the utility notifies the applicant it has received a completed interconnection request, the utility shall:

(1) Evaluate the interconnection request using the Level 2 screening criteria;

(2) Review the applicant's analysis, if provided by applicant, using the same criteria;

(3) Provide the applicant with the utility's evaluation, including a comparison of the results of its own analyses with those of applicant, if applicable; and

(4) When a utility does not have a record of receipt of the interconnection request and the applicant can demonstrate that the original interconnection request was delivered, expedite its review to complete the evaluation of the interconnection request within 20 business days.

F. Failure to Meet Level 2 Criteria.

(1) Additional review may be appropriate when a small generator facility has failed to meet one or more of the Level 2 criteria of §A of this regulation.

(2) A utility shall:

(a) Within 30 calendar days, offer to perform additional review to determine whether minor modifications to the electric distribution system would enable the interconnection to be made consistent with safety, reliability, and power quality criteria; and

(b) Provide the applicant with a nonbinding, good faith estimate of the costs of additional review and minor modifications.

(3) The utility shall undertake the additional review only if the applicant agrees within 10 business days to pay for the cost of the review, which may be extended at the request of the applicant. A request for extension may not be unreasonably denied by the utility.

(4) If the review identifies the need for modifications to the distribution system, the utility shall make the necessary modifications only if the interconnection customer agrees to pay for the cost of the modifications.

G. Interconnection Agreement.

(1) When a utility determines that the interconnection request passes the Level 2 screening criteria, or fails one or more of the Level 2 screening criteria but determines that the small generator facility can be interconnected safely and reliably, the utility shall provide the applicant an interconnection agreement within 5 business days after the determination.

(2) The applicant shall have either 30 calendar days, or another mutually agreeable time frame after receipt of the interconnection agreement, to sign and return the interconnection agreement.

(3) If the applicant does not sign the interconnection agreement within 30 calendar days, the request shall be considered withdrawn unless the applicant and utility mutually agree to extend the time period for executing the interconnection agreement prior to the expiration of the 30-calendar-day calendar period. A request for extension may not be unreasonably denied by the utility.

(4) After the interconnection agreement is signed by the applicant and utility, interconnection of the small generator facility shall proceed according to any milestones agreed to by the applicant and utility in the interconnection agreement.

(5) The utility shall approve the interconnection request and provide a permission to operate notice within 20 business days of receipt of acceptable documents, subject to the following conditions:

(a) All milestones agreed to in the interconnection agreement are satisfied;

(b) The small generator facility is approved by electric code officials with jurisdiction over the interconnection;

(c) The applicant provides a certificate of completion to the utility;

(d) Upon request of the utility, the applicant provides one or more photographs of the small generator facility site location, components, metering equipment, and other related facilities and equipment; and

(e) There is a successful completion of the witness test, if conducted by the utility.

H. Level 2 Review Failure.

(1) If the small generator facility is not approved under a Level 2 review, the utility shall provide the applicant written notification explaining its reasons for denying the interconnection request.

(2) The applicant may submit a new interconnection request for consideration under a Level 3 or Level 4 interconnection review; however, the queue position assigned to the Level 2 interconnection request shall be retained provided the request is made within 15 business days of notification that the current Level 2 interconnection request is denied.