Small Generation Interconnection Standards - IOU

1. Small Generation Interconnection Standards - IOU Dennis Reed Westar Energy Topeka, KS September 26, 2007

2. Summary • Generation Interconnections • Large Generators • Small Generators • Westar’s Standards • Parallel Generation Rider (Small Gen) • Facility Connection Standard • SPP Interconnection Standards

3. Generation Interconnections Come in two types: • Large Generators (20 MW or more) • Handled with the Southwest Power Pool interconnection standards (Attachment V) • Small Generators (<20 MW) • Under state jurisdiction if a QF facility • Under FERC jurisdiction if selling into the wholesale market • Any time you interconnect on the Transmission System you must apply at the SPP or if the unit size or change in rating is 20 MW or more.

4. Small Generators • Defined as less than 20 MW • If selling into the Wholesale markets • Under FERC rules • Must comply with: • Host Utility interconnection standards • Southwest Power Pool SGIA/SGIP rules • If Operating as a QF (most likely scenario) • Under State rules • Must Comply with: • Host Utility interconnection standards • Follow State approved tariffs for payment for energy

5. Westar’s procedures • Facility Interconnection Standards • Applies to all generators connecting to the Westar North or South systems • Applies to all voltages • Special rules apply for generators of 3000 kVA or greater. • Special rules also apply if generator has a measurable impact on the local facilities • Rules are to ensure the SAFE operation of the Westar system • Safety to Westar Employees • Safey to the Public

6. Costs • Customers are responsible for all costs associated with the interconnection • Metering • Protective relays • Any equipment needed to meet ANSI, NERC or related standards • Engineering Studies • Permits, licenses, etc.

7. Special Equipment • A second meter • Possibly a different or second transformer • Automatic disconnects • Fault current relays • Other equipment may be required based upon the Engineering study • Transmission voltages (60 kV or higher) require additional special equipment

8. General Items • Westar has the authority to disconnect the generator from its system • Customer must apply to Westar at least 120 days prior to interconnecting with the grid • Westar can dictate power factor issues • Standards also cover other special circumstances related to the type of generator (ie Synchroous, Induction, Converter, etc.) • Your consultant should help you through these issues

9. Facility Connection Standard Standards can be found at: www.westarenergy.com • Click on “About Us” • Click on “Our Energy” • Click on “view the Facility Connection Standard” link about ½ way down the page

10. Payments to Customer • Payments to small QF’s is regulated by the KCC • Westar is in the Parallel Generation Rider • Follows state law • Residential up to 25 kW • Non-residential up to 100 kW • Payment is based on 150% of the average fuel cost of Westar North or Westar South • Average Fuel cost: Nuclear, fossil, and Purchase Power

11. Southwest Power Pool • Two similar sets of rules, Large Generator and Small Generator • Are required to request to SPP to interconnect either a new unit or an upgrade greater than 20 MW • Small Generator rules apply only if the Generator is selling into the Wholesale Market • QFs do not use the SGIA/SGIP rules unless connecting to the transmission system • SGIA/SGIP rules can apply to interconnections made at the distribution level.