NOTICES

Opinion and Order

[39 Pa.B. 1795]
[Saturday, April 4, 2009]

Public Meeting held
February 26, 2009

Commissioners Present: James H. Cawley, Chairperson; Tyrone J. Christy, Vice Chairperson; Robert F. Powelson; Kim Pizzingrilli; Wayne E. Gardner

Implementation of the Alternative Energy
Portfolio Standards Act of 2004: Standard
Interconnection Application Forms;
Doc. No. M-00051865

Opinion and Order

By the Commission:

   On June 25, 2008, this Commission issued a Tentative Order at this docket proposing to establish standardized interconnection application and agreement forms in accordance with the Alternative Energy Portfolio Standards Act of 2004 (AEPS Act), 73 P. S. §§ 1648.1--1648.8, and our Regulations at 52 Pa. Code §§ 75.1--75.51. The proposed standard application and agreement forms are intended to be used for all levels of review for proposed interconnection projects. Different levels of review are required depending on the nameplate capacity of the generation equipment to be installed and the complexity of the project. See 52 Pa. Code § 75.34.

   The task of developing standard application forms and interconnection agreements for each level of interconnection request was assigned to the Interconnection Standards Working Group. On November 17, 2006, a sub-group was formed to concentrate on development of the interconnection application and agreement forms. The sub-group consisted of representatives from consumer interests, alternative energy system vendors, EDCs and the Energy Association of Pennsylvania.

   In December of 2007, the Interconnection Standards sub-group finished its work on the proposed forms. On December 19, 2007, Commission Staff forwarded the draft standard application and agreement forms to the full Interconnection Standards Working Group for comment. Very few comments were received. The Interconnection Standards sub-group reviewed and incorporated those comments into a draft of the standard application forms. On February 13, 2008, Commission Staff forwarded the draft of the standard application and agreement forms to the full Interconnection Standards Working Group for comment. Only one comment was received which recommended increasing certain nameplate capacity limits to be consistent with amendments to the AEPS Act. The sub-group revised the draft standard application and agreement forms to address that single comment.

   The work product of the sub-group was adopted and issued in the form of a Tentative Order entered June 25, 2008. The proposed forms were also posted to the Commission's web site. Very few comments were received. However, the Department of Environmental Protection (DEP) advised that the forms posted on the Commission's web site contained several drop down menu boxes that failed to operate properly. The forms were corrected and reposted to the Commission's web site. On October 21, 2008, Commission staff advised the full Interconnection Standards Working Group of the corrected forms and extended the comment period to November 5, 2008. Only two comments were filed in response to the corrected forms.

   The comments received do not seek to alter the basic structure of the application forms and interconnection agreements. The applications and interconnection agreements are split into two discrete formats. First, Level 1 inverter-based systems with nameplate capacities of 10 kW or less, which have been certified per the Commission's Regulations at 52 Pa. Code § 75.34(1)(ii), will be processed with a basic application form and agreement. The application form is designed to provide the EDC with sufficient information at the beginning of the process to permit prompt action on the request and reduce the amount of time the EDC will need to evaluate and approve the interconnection.

   The Interconnection Agreements for Levels 1 and 2-4 contain specific limitations on liability and indemnification provisions. These provisions are consistent with the MADRI¹ forms. It should be noted that there is no requirement for insurance. Final Rulemaking Re Interconnection Standards for Customer-generators pursuant to Section 5 of the Alternative Energy Portfolio Standards Act, 73 P. S. § 1648.5, L-00050175 (Order entered August 22, 2006) at 19.

   By their nature, Levels 2 through 4 interconnection requests are more complicated endeavors and cover a far broader range of equipment installations than a Level 1 interconnection request. For that reason, the Level 2 through 4 standard forms advise prospective interconnection customers of the types of information that may be required by an EDC, but direct the customer to work directly with the EDC to determine the kinds of information needed to process the application. As noted in the standard form, a Level 2, 3 or 4 interconnection may require several meetings with EDC personnel as well as engineering studies as required by the Commission's Regulations.

   The DEP filed comments to the forms proposed in our Tentative Order. The DEP's first comment involves the Interconnection Agreement form for Level 1 systems. At page L-5 of the Application/Agreement, Terms and Conditions for Level 1 systems, there is a requirement for periodic testing of equipment. The specific provision provides:

3.  Periodic Testing. All interconnection-related protective functions and associated batteries shall be periodically tested at intervals specified by the manufacturer, system integrator, or authority that has jurisdiction over the Customer-Generator Facility interconnection. Periodic test reports or a log for inspection shall be maintained.

   The DEP expressed concern with the testing requirement as proposed. The DEP states: ''We recognize that this language was adopted from the MADRI forms and that its origin is the IEEE 1547 Standard however, we are concerned that testing may not be practicable for all systems and believe the wording is ambiguous.'' DEP Comments at 1. The DEP suggests that this Commission should be the entity that sets the appropriate testing intervals and the manner of such testing. Id. at 2.

   We will not adopt the DEP's suggestion on this issue. As the DEP notes, this specific testing provision was adopted from the MADRI process and also finds support in the applicable IEEE 1547 Standards. We do not find that the proposed language is as ambiguous as the DEP suggests. It is fairly straightforward. In those instances where testing intervals and methods are not specified by the manufacturer or other independent body, those details can be agreed upon by the EDC and the Customer-Generator. In the event that a Customer-Generator believes the EDC is unreasonable as to the testing method and appropriate intervals, the Customer-Generator can avail itself of the Commission's arbitration process set forth in our Regulations at 52 Pa. Code § 75.51.

   The next issue raised by the DEP is the concern that there is a standard form of Agreement Terms and Conditions for certified inverter-based Level 1 facilities, but no standard terms and conditions for Level 2 through 4 facilities. The Department recommends that standard Agreement Terms and Conditions should attach to other facilities as well. DEP Comments at 2.

   Initially, we note that there is an Application Form which applies to Level 2 through 4 requests. However, we agree with the DEP that a form Agreement should also attach to Levels 2 through 4. Accordingly, we have used the existing Level 1 Agreement form and adapted it for use in Levels 2 through 4. The form Agreement closely tracks the Commission's Regulations at 52 Pa. Code §§ 75.21 through 75.51 by providing the various steps the parties will move through before a Customer-Generator's generating facility may become fully operational on an interconnected basis. We note that the same periodic testing provision is contained in the Level 2 through 4 Agreement that the DEP commented on in the Level 1 Agreement. Our determination that the testing provision should remain as stated also applies here.

   The DEP also commented that, in the Level 2-4 Interconnection Application Form at Page L2-1, there is an inquiry as to whether the Customer-Generator intends to export power. The DEP expresses the concern that the final choice listed in the drop down menu box may not be appropriate due to recent changes in the net metering rules. DEP Comments at 4. The final choice provides for the possibility that the interconnection request contemplates ''[s]ignificant annual export/No net-metering/IPP.'' This choice is to provide information to the EDC that the applicant intends to operate as an independent power producer without any net metering involved.

   The DEP expresses its concern that this choice may be confusing to some applicants because certain changes to the net metering rules eliminated the requirement that net metering customers use their generating facilities to primarily offset some, or all, of their generating needs. But it should be noted that this application applies to Levels 2 through 4 installations. These review levels generally apply to more complex systems. Accordingly, there will be greater interaction between EDCs and these applicants than a Level 1 installation. In addition, it can be expected that Level 2 through 4 applicants, or their vendors, will be more knowledgeable about the process. On that basis, we do not find that the choice presents as much possibility for confusion as suggested by the DEP. If, over the course of time, we find this issue is a problem, we can readily address it by amending the Application form.

   The sub-group has brought a concern to our attention regarding language in the heading of the Level 2 through 4 Application. Currently, that heading provides that it is applicable to Applications involving ''Generation up to 5,000 kW.'' The Sub-group advises that while the Act provides that interconnection may be requested up to 5,000 kW (5 MW), several issues arise as nameplate capacity of generation facilities reach 2,000 kW and above. In many instances, generation facilities with nameplate capacities in excess of 2,000 kW would require interconnection at the transmission level. Accordingly, it has been suggested that the heading be modified to read: ''Applicants proposing to install generation approaching 2,000 kW or larger should contact the EDC for guidance in determining the appropriate application process.''

   We agree with this suggestion and will modify the heading for the Level 2 through 4 Application form. Preliminary discussions between EDCs and Customer-Generators who propose larger capacity installations will save time and expense over the course of the review process. As always, in the event that a Customer-Generator believes that an EDC is requiring an inappropriate level of review, or requires interconnection at an inappropriate voltage level, recourse may be had through the mediation provisions at 52 Pa. Code § 75.51. In our view, the capacity levels at issue here will involve parties with substantial technical and operational expertise. It is unlikely that installations of this nature will require substantial Commission involvement.

Conclusion

   Under section 1648.5 of the AEPS Act (73 P. S. § 1648.5), and § 75.33 of the Commission's Regulations, 52 Pa. Code § 75.33, we will adopt the standard Interconnection Application and Agreement Forms attached to this Opinion and Order as Appendix A; Therefore,

It Is Ordered That:

   1.  The standard Interconnection Application and Agreement Forms attached hereto as Appendix A are adopted for use by jurisdictional electric distribution companies for processing interconnection requests brought under the Commission's Regulations at 52 Pa. Code §§ 75.1--75.51.

   2.  A copy of this Opinion and Order and Annex A be served upon the Commission's Office of Trial Staff, the Office of Consumer Advocate, the Office of Small Business Advocate, all jurisdictional electric utility companies, licensed electric generation suppliers, the Pennsylvania Department of Environmental Protection and the Interconnection Standards Working Group.

   3.  The Secretary shall cause a copy of this Opinion and Order to be published in the Pennsylvania Bulletin.

   4.  Copies of the Application and Agreement Forms attached as Appendix A shall be published on this Commission's internet web site.

   5.  Jurisdictional electric distribution companies shall use the Application and Agreement Forms contained in Appendix A for interconnection requests processed under this Commission's rules and Regulations. Each jurisdictional electric distribution company shall have copies of the Application and Agreement Forms readily available and shall post copies of the Application and Agreement Forms on their respective Internet web sites.

By the Commission

JAMES J. MCNULTY,   
Secretary

[Pa.B. Doc. No. 09-656. Filed for public inspection April 3, 2009, 9:00 a.m.]

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¹   ''MADRI'' is the acronym for Mid-Atlantic Demand Resource Initiative, a regional group which has been addressing interconnection standards and logistics. As noted in our Tentative Order, it was determined that the starting point for Pennsylvania's forms and standards would be the MADRI work product. Tentative Order at 2.

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