65-407 Chapter 324Page 1

65-407PUBLIC UTILITIES COMMISSION

Chapter 324:SMALL GENERATOR INTERCONNECTION PROCEDURES

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SUMMARY: This Chapter establishes procedures for small generator interconnections to utility systems.

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TABLE OF CONTENTS

§ 1.SCOPE...... 1

A.Level 1...... 1

B.Level 2...... 1

C.Level 3...... 1

D.Level 4...... 1

§ 2.DEFINITIONS...... 1

A.Applicant...... 1

B.Area Network...... 1

C.Business Day...... 1

D.Circuit Protection and Coordination Study...... 2

E.Competitive Electricity Provider...... 2

F.Company...... 2

G.Customer...... 2

H.Customer-Generator...... 2

I.Customer Generator Facility...... 2

J.Distribution System...... 2

K.Distribution Upgrades...... 2

L.Electric Delivery System...... 2

M.Equipment Package...... 2

N.Facilities Study...... 3

O.FERC...... 3

P.Fault Current...... 3

Q.Generating Capacity...... 3

R.IEEE...... 3

S.IEE Standards...... 3

T.Impact on System Operation...... 3

U.Interconnection Agreement...... 3

V.Interconnection Facilities...... 3

W.Licensed Professional Engineer...... 3

X.Load Flow Study...... 4

Y.Maine Public Utilities Commission...... 4

Z.Minor System Modifications...... 4

AA.Parties...... 4

BB.Point of Common Coupling...... 4

CC.Pre-Application Report...... 4

DD.Short-Circuit Study...... 4

EE.Spot Network...... 4

FF.Stability Study...... 4

GG.Substantial System Modifications...... 4

HH.Transmission and Distribution Utility...... 5

II.UL...... 5

JJ.Voltage Collapse Study...... 5

§ 3.COST RESPONSIBILITY...... 5

§ 4.STANDARD FORMS...... 5

§ 5.STANDARDS FOR THE CERTIFICATION OF GENERATORS AND

INTERCONNECTION EQUIPMENT...... 6

§ 6.CERTIFCATION...... 6

§ 7.PRE-APPLICATION REPORT...... 6

§ 8.GENERAL TECHNICAL SCREENING CRITERIA...... 8

§ 9.SPECIAL SCREENING CRITERIA FOR INTERCONNECTION TO

DISTRIBUTION NETWORKS...... 10

§ 10.LEVEL 1 SCREENING CRITERIA AND PROCESS: INVERTER-BASED

GENERATORS NOT GREATER THAN 25 KW...... 10

A.Application...... 10

B.Applicable Screens...... 11

C.Time to Process Under Screens...... 11

D.Approval...... 11

E.Execution of Agreement...... 11

F.Default Approval...... 11

G.Application Fee...... 11

§ 11.LEVEL 2 SCREENING CRITERIA AND PROCESS: GENERATORS

NOTGREATER THAN 2 MW...... 11

A.Application...... 11

B.Applicable Screens...... 12

C.Time to Process Under Screens...... 12

D.Screens Failure...... 12

E.Approval...... 12

F.Execution of Agreement...... 12

G.Witness Testing...... 12

H.Additional Review...... 12

G.Application Fee...... 13

§ 12.LEVEL 3 SCREENING CRITERIA AND PROCESS: NON-EXPORTING

GENERATORS NOT GREATER THAN 10 MW...... 13

A.Application...... 13

B.Applicable Screens...... 13

C.Time to Process Under Screens...... 13

D.Screens Failure...... 13

E.Approval...... 13

F.Execution of Agreement...... 14

G.Witness Testing...... 14

H.Application Fee...... 14

§ 13.LEVEL 4 SCREENING CRITERIA AND PROCESS: ALL GENERATORS

NOTSUBJECT TO FERC JURISDICTION...... 14

A.Application...... 14

B.Acknowledgement of Receipt...... 14

C.Notification of Completeness...... 14

D.Queue Position...... 14

E.Initial Review and Scoping...... 15

F.Feasibility Study Estimates...... 15

G.Impact Study...... 15

H.Certified Generators...... 15

I.Description of Impact Studies...... 15

J.Start of Impact Study...... 16

K.Minor System Modifications...... 16

L.Substantial System Modifications...... 16

M.Facilities Studies Agreement...... 16

N.Start of Facilities Study...... 16

O.Notice of Facilities Study Completion...... 16

P.Execution of Interconnection Agreement...... 16

Q.Installation Milestones...... 17

R.Generator Inspection...... 17

S.Notification of Approved Operation...... 17

T.Notification of Changes to Initial Operations Date...... 17

U.Application and Other Fees...... 17

§ 14.GENERAL PROVISIONS AND REQUIREMENTS AFTER

INTERCONNECTION APPROVAL...... 17

A.Construction and Zoning Costs...... 17

B.Commissioning Test...... 17

C.Designated T & D Utility Employee...... 17

D.Engineering Rate...... 17

E.No Additional Tests, Controls, or Insurance...... 18

F.Liability Insurance...... 18

G.Additional Equipment at T & D Utility Expense...... 18

H.Metering and Monitoring...... 19

I.Interconnection Agreements...... 19

J.Fee Documentation...... 19

K.Limited Testing Requirements...... 19

L.Right to Inspect and Disconnect...... 20

§ 15.DISPUTE RESOLUTION...... 20

§ 16.WAIVER OR EXEMPTION...... 20

65-407 Chapter 324Page 1

§ 1.SCOPE

This Chapter shall apply to Interconnection Requests pertaining to Customer-Generator Facilities that are not subject to the jurisdiction of FERC.Each Transmission and Distribution Utility (T&D Utility) shall provide the following four review procedures for applications for interconnection of customer-generator facilities.

A.Level 1 - For certified, inverter-based facilities with a power rating of twenty-fivekilowatts (25kW) or less on radial or Spot Network systems under certain conditions, the T&D Utility shall adopt procedures in accordance with §10for this level of review.

B.Level 2 - For certified generating facilities that: (a) pass certain specified screens;(b) do not qualify for Level 1; and(c) have a power rating of two megawatts(2MW) or less, the T&D Utility shall adopt procedures in accordance with §11for this level of review.

C.Level 3 - For certified generating facilities that: (a) pass certain specified screens;(b) do not qualify for Level 1 or Level 2; (c) do not export power beyond thePoint of Common Coupling; and (d)have a power rating of ten megawatts(10MW) or less, the T&D Utility shall adopt procedures in accordance with §12for this level of review.

D.Level 4 - For all generating facilities that do not qualify for Level 1, Level 2 orLevel 3 interconnection review processes, and are not subject to the jurisdiction ofFERC. TheT&D Utility shall adopt procedures in accordance with §13 forthis level of review.

§ 2.DEFINITIONS

The following words and terms, when used in this Chapter, shall have the followingmeanings, unless the context clearly indicates otherwise.

A.Applicant. "Applicant" means a person who has filed an application tointerconnect aCustomer-Generator Facility to an Electric Delivery System.

B.Area Network. "Area Network" means a type of Electric Delivery System servedby multiple transformers interconnected in an electrical network circuit generallyused in large, densely populated metropolitan areas in order to provide highreliability of service, and having the same definition as the term "secondary gridnetwork" as defined in IEEE standard 1547.

C.Business Day. “Business Day” means any day except a Saturday, Sunday, aFederal Reserve Bank Holiday, or a holiday recognized by the State of Maine. ABusiness Day shall open at 8:00 a.m. and close at 5:00 p.m. Eastern PrevailingTime.

D.Circuit Protection and Coordination Study. “Circuit Protection andCoordination Study” is an analysis to ensure that any fault currents resulting froma short circuit do not exceed the interruptive rating of protective equipment. Thestudy ensures the coordination of protective devices for proper sequencing oftripping.

E.Competitive Electricity Provider. "Competitive Electricity Provider" or “CEP”means a marketer, broker, aggregator, and any entity selling electricity to thepublic at retail who is licensed pursuant to Chapter 305 of the PUC’s rules. Thisterm does not include T & D Utility’s, as defined herein.

F.Company. "Company" means a T&D Utility.

G.Customer. "Customer" means any entity interconnected to the utility Companysystem for the purpose of receiving or exporting electric power from or to theT&D Utility system.

H.Customer-Generator. "Customer-Generator" means a residential or commercialCustomer that generates electricity, typically on the Customer's side of the meter.

I.Customer-Generator Facility. "Customer-Generator Facility" means theequipment used by a Customer-Generator to generate, manage and monitorelectricity. A Customer-Generator Facility typically includes an electric generatorand/or an Equipment Package, as defined herein.

J.Distribution System. “Distribution System” is the Interconnecting TransmissionOwner’s facilities and equipment used to transmit electricity to ultimate usagepoints such as homes and industries directly from nearby generators or frominterchanges with higher voltage transmission networks which transport bulkpower over longer distances.

K.Distribution Upgrades. “Distribution Upgrades” means the additions,modifications,and upgrades to the Interconnecting Transmission Owner’sDistribution System at or beyond the Point of Common Coupling to facilitateinterconnection of the Small Generating Facility. Distribution Upgrades do notinclude Interconnection Facilities.

L.Electric Delivery System. "Electric Delivery System" or "EDS" means theinfrastructure constructed and maintained by a T&D Utility, as defined herein, todeliver electricservice to end-users.

M.Equipment Package. "Equipment Package" means a group of componentsconnecting an electric generator with an Electric Delivery System, and includesall interface equipment including switchgear, inverters or other interface devices.An EquipmentPackage may include an integrated generator or electric source.

N.Facilities Study. “Facilities Study” is an analysis of the detailed costs ofSubstantial System Modifications necessary to interconnect the Customer’sproposed generator.

O.FERC. "FERC" means the U.S. Federal Energy Regulatory Commission.

P.Fault Current. "Fault Current" means electrical current that flows through acircuit and is produced by an electrical fault, such as to ground, double-phase toground, three phase to ground, phase-to-phase, and three-phase. A Fault Currentis several timeslarger in magnitude than the current that normally flows through acircuit.

Q.Generating Capacity. “Generating Capacity” is the nameplate rating of thegenerator to be interconnected.When the generator is a Direct Current (DC)generator, the Generating Capacity will be the measured based on the AlternatingCurrent (AC) ratings of the inverters proposed by the interconnecting customer.

R.IEEE. "IEEE" means the "Institute of Electrical and Electronic Engineers."

S.IEEE Standards. "IEEE standards" means the standards published by theInstitute of Electrical and Electronic Engineers, available at

T.Impact on System Operation. “Impact on System Operation” is any disruptionor deterioration of service to other Customers served from the same electricsystem, or damage to T & D Utility’s Electric Distribution System caused byoperating the Small Generator Facility that is documented in the course of anImpact Study.

U.Interconnection Agreement. "Interconnection Agreement" means an agreementbetween a Customer-Generator and a T&D Utility, which governs the connectionof the Customer-Generator Facility to the Electric Delivery System, as well as theongoingoperation of the Customer-Generator Facility after it is connected to thesystem. An Interconnection Agreement shall follow the standard form agreementdeveloped by thePUC and posted on the PUC's website.

V.Interconnection Facilities. “Interconnection Facilities” means facilities andequipment that are necessary to physically and electrically interconnect theCustomer-Generator Facility to the EDS. Interconnection Facilities shall notinclude Distribution Upgrades.

W.Licensed Professional Engineer. “Licensed Professional Engineer” means aprofessional engineer licensed to practice in Maine

X.Load Flow Study. “Load Flow Study” is an analysis to determine if systemvoltages remain within specified limits under normal or emergency operatingconditions, and whether equipment such as transformers and conductors arethermally overloaded.

Y.Maine Public Utilities Commission. “Maine Public Utilities Commission” or"PUC" means the state regulatory authority over T & D Utilities or any successoragency.

Z.Minor System Modifications. "Minor System Modifications" include activitiessuch aschanging the fuse in a fuse holder cut-out, upgrading a transformer,changing out a pole, upgrading the line, changing the settings on a circuit recloserand other activities that usually entail less than six (6) hours of work and twothousand dollars($2,000) in materials.

AA.Parties. “Parties” means the T & D Utility and the Applicant/Customer workingon a particular Customer-Generator Facility regardless of what step the Customer-Generator Facility is at in the application or agreement process.

BB.Point of Common Coupling. "Point of Common Coupling" means the point inthe interconnection of a Customer-Generator Facility with an Electric DeliverySystem at which the harmonic limits are applied and shall have the same meaningas in IEEE Standard 1547.

CC.Pre-Application Report. “Pre-Application Report” is a report that may berequested by potential applicants developing projects 500 kW in size and greater.The report provides applicants information about system conditions at a proposedPoint of Common Coupling.

DD.Short-Circuit Study. “Short-Circuit Study” is an analysis of an electrical systemthat determines the magnitude of the currents that flow during an electrical fault.

EE.Spot Network. "Spot Network" means a type of Electric Delivery System thatuses two or more inter-tied transformers to supply an electrical network circuit. ASpot Network is generally used to supply power to a single Customer or to a smallgroup of Customers,and has the same meaning as the term is used in IEEEstandard 1547.

FF.Stability Study. “Stability Study” is an analysis to identify any instability orinadequately damped response to system disturbances resulting from theinterconnection.

GG.Substantial System Modifications. “Substantial System Modifications” areelectric system modifications required to accommodate the proposedinterconnection which exceed Minor System Modifications.

HH.Transmission and Distribution Utility. "Transmission and Distribution Utility"or "T & DUtility" means a person, its lessees, trustees, receivers or trusteesappointed by a court, owning, controlling, operating or managing a transmissionand distribution plant forcompensation within the State.

II.UL. “UL” means Underwriters Laboratories, which has established standardsavailable at that relate to components of Customer-Generator Facilities.

JJ.Voltage Collapse Study. “Voltage Collapse Study” is part of the load flow study.It is typically when the model does not converge and results are not available asthere is no solution.

§ 3.COST RESPONSIBILITY

A.Interconnection Facilities.An Interconnection Customer shall pay for the actualconstruction cost of Interconnection Facilities.Interconnection Customer shall beresponsible for expenses, including overheads, associated with owning, operating,maintaining, repairing and replacing its Interconnection Facilities.

B.Distribution Upgrades.The Interconnection Customer shall pay for the actualconstruction cost of the Distribution Upgrades.The Interconnection Customershall be responsible for all incremental expenses incurred to operate and maintain(O&M) the Distribution Upgrades.In determining what O&M expenses areincremental, the interconnecting utility should include an offset for the O&Mexpenses that the utility would otherwise incur on the existing facilities.

§ 4.STANDARD FORMS

An application for interconnection review shall be submitted on a standard form that willbe adopted by order of the Maine Public Utilities Commission. This standard form alongwith standard study agreements, standard interconnection agreements and otherdocumentation associated with this rule will be available from the T & D Utility andposted on the PUC's website at .The approval of astandard formis delegated to the Director of Electric and Gas Utility Industries. If an interconnectionagreement deviates from the standard form, the generator shall submit the agreement tothe Commission for approval.Approval of any deviation from the standard fromagreement is delegated to the Director of Electric and Gas Utility Industries.Each Utilityshall allow electronic signature to be used for interconnection applications.Theapplication form will require the following types of information:

A.Basic information regarding the applicant and the electricity supplier(s) involved;

B.Information regarding the type and specifications of the customer-generatorfacility;

C.Information regarding the contractor who will install the customer-generatorfacility;

D.Certifications and agreements regarding utility access to the customer-generator'sproperty, emergency procedures, liability, compliance with electrical codes,properoperation and maintenance, receipt of basic information;

E.Identification of the Licensed Professional Engineer that reviewed and approvedthe design of the customer-generator facility, if applicable; and

F.Other similar information as needed to determine the compliance of a particularapplicant with this chapter.

§ 5.STANDARDS FOR THE CERTIFICATION OF GENERATORS ANDINTERCONNECTION EQUIPMENT

In order to qualify as "certified" for any interconnection procedures, generators shallcomply with the following codes and standards:

A.IEEE 1547 Standard for Interconnecting Distributed Resources with ElectricPower Systems; and

B.UL 1741 Inverters, Converters and Controllers for Use in Independent PowerSystems.

§ 6.CERTIFICATION

A.Equipment. Interconnection equipment shall be considered certified forinterconnected operation if the equipment has been tested and listed by anationally recognized testing and certification laboratory (NRTL) for continuousinteractive operation with a utility grid and meets the definition for certificationunder FERC Order 2006.

B.Engineer. Project Designs for Level 2, Level 3 and Level 4 generators greaterthan 50 kW shall be reviewed and approved by a Licensed Professional Engineer.

§ 7.PRE-APPLICATION REPORT

A.Pre-Application Report Request

1.A Pre-Application Report Request shall include:

a.Contact information (name, address, phone and email).

b.A proposed Point of Common Coupling.The proposed Point ofCommon Coupling shall be defined by latitude and longitude, sitemap, street address, utility equipment number (e.g., pole number),meter number, account number or some combination of the abovesufficient to clearly identify the location of the Point ofCommon Coupling.

c.Generation technology and fuel source.

d.$300 non-refundable processing fee.

2.In requesting a Pre-Application Report, a potential Applicant understandsthat:

a.The existence of “Available Capacity” in no way implies that aninterconnection up to this level may be completed without impactssince there are many variables studied as part of theinterconnection review process.

b.The distribution system is dynamic and subject to change.

c.Data provided in the Pre-Application Report may become outdatedand not useful at the time of submission of the completeInterconnection Request.

B.Pre-Application Report

Within fifteen (15) Business Days of receipt of a completed Pre-Application ReportRequest, the Utility shall provide a Pre-Application Report.The Pre-Application Reportshall include the following information, if available:

1.Total Capacity (MW) of substation/area bus or bank and circuit likely toserve proposed site.

2.Allocated Capacity (MW) of substation/area bus or bank and circuit likelyto serve proposed site.

3.Queued Capacity (MW) of substation/area bus or bank and circuit likely toserve proposed site.

4.Available Capacity (MW) of substation/area bus or bank and circuit mostlikely to serve proposed site.

5.Whether the proposed Generating Facility is located on an area, spot orradial network.

6.Substation nominal distribution voltage or transmission nominal voltage ifapplicable.

7.Nominal distribution circuit voltage at the proposed site.

8.Approximate circuit distance between the proposed site and the substation.

9.Relevant Line Section(s) peak load estimate, and minimum load data,when available.

10.Number of protective devices and number of voltage regulating devicesbetween the proposed site and the substation/area.

11.Whether or not three-phase power is available at the site and/or distancefrom three-phase service.

12.Limiting conductor rating from proposed Point of Common Coupling todistribution substation.

13.Based on proposed Point of Common Coupling, existing or knownconstraints such as, but not limited to, electrical dependencies at thatlocation, short circuit interrupting capacity issues, power quality orstability issues on the circuit, capacity constraints, or secondary networks.

The Pre-Application Report need only include pre-existing data.A Pre-ApplicationReport request does not obligate the utility to conduct a study or other analysis of theproposed project in the event that data is not available.If the utility cannot complete allof some of a Pre-Application Report due to lack of available data, the Utility will providethe potential Applicant with a Pre-Application Report that includes the information that isavailable and identify the information that is unavailable.

Notwithstanding any of the provisions of this Section, the Utility shall, in good faith,provide Pre-Application Report data that represents the best available information at thetime of the reporting.

§ 8.GENERAL TECHNICAL SCREENING CRITERIA

A.For interconnection of a proposed generator to a radial distribution circuit, theaggregated generation, including from the proposed generator, on the circuit shallnot exceed fifteen percent (15%) of the line section annual peak load as mostrecently measured at the substation. A line section is that portion of a distributionsystem connected to a Customer bounded by automatic sectionalizing devices orthe end of the distribution line.