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Large Generator Interconnection Final Rule RM02-1-000. July 23, 2003. Final Rule. Requires public utilities to amend their Open Access Transmission Tariff to include standard interconnection procedures and a standard interconnection agreement for generators larger than 20 MW.
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Large Generator InterconnectionFinal RuleRM02-1-000 July 23, 2003
Final Rule • Requires public utilities to amend their Open Access Transmission Tariff to include standard interconnection procedures and a standard interconnection agreement for generators larger than 20 MW. • Standardizes the scope of each study, deposit amount, time of completion of each study, and access to study data.
Purpose of Final Rule • Reduce overall cost of electricity to customers, including the cost of renewable energy • Reduce interconnection time and costs • Prevent undue discrimination in interconnections • Increase energy infrastructure
Purpose of Final Rule (cont’d) • Ease entry for competitors while promoting more efficient siting decisions • Clarify pricing of transmission enhancements for interconnections • Preserve reliability of the transmission system
The Rulemaking Process • ANOPR issued October 2001 initiating a stakeholder negotiation process • Consensus document filed January 2002 • NOPR issued April 2002 largely incorporating product of stakeholder negotiation process • More than 170 entities filed comments
The Rulemaking Process (cont’d) • Small generator proponents requested separate treatment • Commission issued a separate small generator ANOPR August 2002 applicable to generators up to 20 MW • NARUC and state views reflected in much of both rulemakings
Advantages to Generators under the Final Rule • They can interconnect without requesting transmission service • Access to study data so that they can conduct their own interconnection study • One set of standard interconnection procedures and a standard interconnection agreement • IA clearly lays out the legal rights and obligations of the parties
Advantages to Generators under the Final Rule (cont’d) • The Final Rule gives generators two interconnection options • Energy Resource Interconnection Service which is low-cost interconnection • Network Resource Interconnection Service which is a higher-cost interconnection that allows a generator to qualify as a network resource
Advantages to Transmission Providers under the Final Rule • Standard Interconnection Procedures streamline the interconnection process and reduce regulatory burden • The Final Rule gives RTOs and ISOs the flexibility to customize interconnection process during compliance phase
Advantages to Transmission Providers under the Final Rule (cont’d) • Access to data allows generators to study various points of interconnection, reducing the number of interconnection studies to be performed by the Transmission Provider
Pricing for Non-Independent Transmission Provider • Clarifies who pays for interconnection costs when the transmission provider is not independent • Credits to be paid for Network Upgrades over 5 years, with interest • but Generating Facility must first achieve commercial operation
Pricing for Independent Transmission Provider • The rule allows pricing flexibility for an RTO or ISO, including use of participant funding • In forming an RTO or ISO, an independent administrator may use participant funding for Network Upgrades for one year, subject to approval by the Commission and affected States
The Final Rule • Applies to all interconnections to facilities subject to a Transmission Provider’s Open Access Transmission Tariff at the time an interconnection request is made
Variations from this Rule • Regional variations • Utilities may propose variations that are generally used throughout a region if consistent with or superior to the Final Rule • Utilities may propose variations to comply with a regional reliability rule, subject to Commission approval • RTO or ISO • The rule allows greater flexibility for an RTO or ISO, subject to Commission approval
Compliance Filing(Amendment to OATT) • Public utilities must file amendments within 60 days from the date of publication in the Federal Register