Interconnection Process (Afternoon Detailed Session)

1. Interconnection Process(Afternoon Detailed Session)

2. Topics to Cover • Interconnection Process Overview • Application Timing and Completeness • Technical Scoping Meeting • Study Process • Interconnection Agreement • Project Implementation • Deliverability • References

3. Overview of Wholesale Generation Interconnection Process Technical Studies Interconnection Agreement Project Implementation Application Processing Technical Scoping Meeting • Transmission Interconnections • Governed by California Independent System Operator Corporation (CAISO) Tariff • PG&E’s transmission interconnections are for 60 kV and higher • All applications must be submitted to the CAISO • These slides are per CAISO Tariff which is subject to the CAISO • Distribution Interconnections • Governed by PG&E’s Wholesale Distribution Tariff (WDT) • PG&E’s distribution voltage level is defined as facilities operating below 60 kV • All applications must be submitted to PG&E • These slides assume FERC approval of the proposed WDT to be filed in February 2011

4. Application Processing Timeline Technical Studies Interconnection Agreement Project Implementation Application Processing Technical Scoping Meeting * Subject to CAISO ** PG&E Extension Business Rule

5. What is in a complete application? Technical Studies Interconnection Agreement Project Implementation Application Processing Technical Scoping Meeting • Transmission Interconnections • Completed Application • Site Plan Diagram • Single Line Diagram • Application Fee • Site Control or • In-Lieu Financial Security • Distribution Interconnections • Completed Application • Site Plan Diagram • Single Line Diagram • Application Fee • Site Control

6. PG&E Application Note this application is a DRAFT form

7. PG&E Application Note this application is a DRAFT form • The Application must be completed in its entirety • Point of Interconnection must be identified • Commercial Operation Date must be identified

8. PG&E Application Note this application is a DRAFT form • Site Control Requirements must be met

9. Attachment A Generating Facility Data * Typically applies to Transmission

10. Scoping Meeting Purpose Technical Studies Interconnection Agreement Project Implementation Application Processing Technical Scoping Meeting • Scoping Meeting is designed to provide the Interconnection Customer: • Ensure common understanding of Interconnection Customer’s project • Ensure understanding of Generator Interconnection Procedure • Come to agreement on Point of Interconnection and generator size • PG&E will provide technical system details, limitations, and queued ahead projects • PG&E will advise regarding which process Interconnection Customer qualifies for and study to be conducted • Next Steps • 5 Business Days after Scoping Meeting, the Developer must: • Provide confirmation on the Point of Interconnection • Provide confirmation on Generator Size

11. Scope of Studies Technical Studies Interconnection Agreement Project Implementation Application Processing Technical Scoping Meeting • Technical Studies are intended to provide: • Impact of generation on PG&E’s electric system • Scope of Capital Improvements to PG&E’s electric system to ensure the safety, reliability, and integrity of the grid: • -Interconnection Facilities • Generator Specific facilities required for interconnection • -Distribution Upgrades • Upgrades to the Distribution System triggered by Generator or Cluster • -Network Upgrades • Upgrades to the Network (CAISO Controlled Grid) triggered by Generator or Cluster • Cost Estimate for Scope of Capital Improvements Required and Schedule

12. Study Results + Project Implementation Contract Technical Studies Cost Estimate Accuracy Supplemental Review System Impact Study Phase 1 Study Facilities Study Phase 2 Study Initial Review Project In-Service Construction • Designs the job and estimates the job with a +/- 10% Accuracy • Provides a detailed Scope of Work. • Provides the Customer +/- 25% Accuracy • Provides a Scope of Work. • Provides the Customer +/- 50% Accuracy • Provides a Rough Scope of Work • Determines acceptance of Fast Track Process -

13. Interconnection Study Processes Fast Track Initial and Supplemental Review • 2 MW on 12kV and 3 MW on 21 kV and 5 MW on higher voltages • Fast Track Screens • Electrical Independence Screens • Commercial Operation Date Screen (CAISO) • No MW limit • Financial security requirements Independent Study Process System Impact and Facilities Study Cluster Study • Default process, no MW limit • One annual study • Financial security requirements Phase I and II Studies • All processes may apply for full capacity. Deliverability assessment will be conducted by CAISO in CAISO’s cluster process. • PG&E plans on filing a reformed Wholesale Distribution Tariff at the end of Feb seeking approval for a March 1 effective date. These slides assume acceptance by FERC.

14. Fast Track BD – Business Day

15. Independent Study Process Facilities Study begins when Initial Posting is made BD – Business Day, CD – Calendar Day

16. Cluster Study Process BD – Business Day, CD – Calendar Day

17. Financial Security Postings BD – Business Day, CD – Calendar Day

18. Interconnection Agreement (IA) Technical Studies Interconnection Agreement Project Implementation Application Processing Technical Scoping Meeting Small Generator Interconnection Agreement (SGIA) – 20MW or less Large Generator Interconnection Agreement (LGIA) – greater than 20 MW CAISO GIA is a three-party Agreement between CAISO, PG&E, and Interconnection Customer * Tariff timing regarding tendering an Interconnection Agreement post Facilities Study not identified ** Subject to CAISO BD – Business Day, CD – Calendar Day

19. Project Implementation Technical Studies Interconnection Agreement Project Implementation Application Processing Technical Scoping Meeting • Post Interconnection Agreement, PG&E and Interconnection Customer should be engineering and designing, procuring, and constructing the electrical interconnection • PG&E will be engineering the Capital Improvements as agreed upon in the Interconnection Agreement • Interconnection Customer will be engineering the electrical system on the Interconnection Customer’s side of the meter and any upgrades that will be applicant built and deeded • Post EPC, PG&E, CAISO (if applicable), Interconnection Customer will coordinate a pre-parallel inspection and commissioning to achieve Commercial Operation.

20. Deliverability • RA deliverability? What is it? • How do you get it? • Timing? • Participants are required to apply for CAISO deliverability studies to qualify for providing Resource Adequacy PG&E and Socal Edison and CAISO are currently developing the process to allow WDT projects to obtain Resource Adequacy. PG&E will provide guidance prior to the upcoming Cluster.

21. Interconnection Resources PG&E Wholesale Generator Interconnections Website: http://www.pge.com/mybusiness/customerservice/nonpgeutility/generateownpower/wholesalegeneratorinterconnection/#thesmallgeneratorinterconnectionproceduresfortransmissionsysteminterconnectionstransmissionsgip Email for Interconnection Website: gen@pge.com Please check PG&E’s Wholesale Generator Interconnection Website March 1 for new application forms and filed tariff. CAISO: http://www.caiso.com/docs/2002/06/11/2002061110300427214.html Or via www.pge.com/rfo, select “Solar PV PPA Program RFO”.

22. Appendix: Distribution Schedule Summary These diagrams are for estimating purposes. It assumes immediate response from Customer. Fast Track Process Independent Study Process Cluster Process

23. Appendix: Transmission Schedule Summary These diagrams are for estimating purposes. It assumes immediate response from Customer. Fast Track Process Independent Study Process Cluster Process