TITLE 20. PUBLIC UTILITIES AND TELECOMMUNICATIONS

STATE CORPORATION COMMISSION

Final Regulation

REGISTRAR'S NOTICE: The State Corporation Commission is exempt from the Administrative Process Act in accordance with § 2.2-4002 A 2 of the Code of Virginia, which exempts courts, any agency of the Supreme Court, and any agency that by the Constitution is expressly granted any of the powers of a court of record.

Title of Regulation: 20VAC5-314. Regulations Governing Interconnection of Small Electrical Generators (adding 20VAC5-314-10 through 20VAC5-314-170).

Statutory Authority: §§ 12.1-13 and 56-578 of the Code of Virginia.

Effective Date: May 21, 2009.

Agency Contact: Mike Martin, Senior Utilities Engineer, State Corporation Commission, P.O. Box 1197, Richmond, VA 23218, telephone (804) 371-9336, FAX (804) 371-9350, or email mike.martin@scc.virginia.gov.

Summary:

Pursuant to § 56-578 A of the Virginia Electric Utility Restructuring Act, Chapter 23 (§ 56-576 et seq.) of Title 56 of the Code of Virginia (Restructuring Act), all electric energy distributors have the obligation to connect any retail customer, including those using distributed generation, located within its service territory to the distributor's facilities used for delivery of retail electric energy, subject to State Corporation Commission (commission) rules and regulations and approved tariff provisions relating to connection of service. In accordance with § 56-578 C of the Restructuring Act, the commission proposed interconnection standards, not inconsistent with nationally recognized standards, to ensure transmission and distribution safety and reliability. The interconnection regulations establish standardized interconnection and operating requirements for the safe operation of electric generating facilities with a rated capacity of 20 MW or less connected to the distribution systems of electric utilities under the jurisdiction of the Virginia State Corporation Commission. These requirements apply to retail electric customers, independently owned generators or any other parties operating or intending to operate a distributed generation facility. The regulations establish three interconnection review paths for interconnection of customer-sited generation in Virginia - Level 1, Level 2 and Level 3. Level 1 interconnections must include a request to interconnect a certified inverter-based generating facility no larger than 500 kW. To qualify for a Level 2 interconnection request, the generating facility can be no larger than 2 MW and the proposed generator must meet certain specified codes, standards, and certification requirements. Level 3 interconnection requests apply to generating facilities larger than 2 MW but no larger than 20 MW or a generating facility that does not pass the Level 1 or Level 2 Process.

The changes in the final regulation are in response to comments received from interested parties and are intended to address the recovery of costs by utilities from interconnection customers, insurance provisions, and interconnections to network circuits.

Summary of Public Comments and Agency's Response: A summary of comments made by the public and the agency's response may be obtained from the promulgating agency or viewed at the office of the Registrar of Regulations.

AT RICHMOND, MAY 8, 2009

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. PUE-2008-00004

Ex Parte: In the matter of establishing
interconnection standards for distributed
electric generation

ORDER ADOPTING REGULATIONS

On February 26, 2008, the State Corporation Commission ("Commission") issued an Order Establishing Proceeding in the above-captioned case to consider interconnection standards for distributed generation for the Commonwealth in accordance with § 56-578 A¹ of the Virginia Electric Utility Restructuring Act, Chapter 23 (§ 56-576 et seq.) of Title 56 of the Code of Virginia ("Code"). The Staff of the Commission developed proposed rules ("Staff's Proposed Rules") to meet the requirement of § 56-578 C² of the Restructuring Act, which proposed rules have been published in the Virginia Register on March 17, 2008, as Chapter 314 of the Virginia Administrative Code (20 VAC 5-314-10 et seq.), Regulations Governing Interconnection of Small Electrical Generators. The Commission directed that notice be given to the public and invited comments on Staff's Proposed Rules.

In response to the Commission's February 26, 2008 Order, the following filed on July 21 and 22, 2008, comments on Staff's Proposed Rules, all proposing certain revisions: Virginia Electric and Power Company ("Virginia Power"), Appalachian Power Company ("APCO"), the Potomac Edison Company ("Potomac Edison"), the Virginia Electric Cooperatives³ ("Cooperatives"), and the Interstate Renewable Energy Council ("IREC"). Columbia Gas of Virginia ("Columbia") filed comments supporting Staff's Proposed Rules. These comments, as a group, are referred to as the "Initial Comments."

On August 28, 2008, the Commission granted Staff leave to file its response to the Initial Comments.⁴ Accordingly, on October 27, 2008, Staff filed its report ("Staff Report") and attached Staff Revised Rules, which are reported by Staff to be responsive to the Initial Comments in providing improved readability and clarity, and include certain substantive revisions.⁵

The Commission issued an Order on November 26, 2008, which among other things, directed that notice be given to the public of Staff's Revised Rules, and invited comments thereon. Staff's Revised Rules were published on December 22, 2008, as Chapter 314. On January 15, 2009, the following filed comments addressing Staff's Revised Rules, all proposing certain revisions: Virginia Power, APCO, Potomac Edison, Cooperatives, and the IREC. Columbia filed comments supporting Staff's Revised Rules. These comments as a group are referred to as "Further Comments."

NOW UPON CONSIDERATION of the Initial Comments, the Staff Report, and the Further Comments, we find that we should adopt Chapter 314, Regulations Governing Interconnection of Small Electrical Generators ("Interconnection Rules"), appended hereto as Attachment A, effective May 21, 2009.⁶ We find that such rules are reasonable and are within the Commission's authority under § 56-578 of the Code.

The Commission is directed by § 56-578 C of the Code to "establish interconnection standards to ensure transmission and distribution safety and reliability, which standards shall not be inconsistent with nationally recognized standards acceptable to the Commission." (Emphasis added.) We previously noted, with regard to the existence of nationally recognized standards, that the Federal Energy Regulatory Commission ("FERC") has asserted jurisdiction over certain generator interconnections.⁷ FERC's Order No. 2006, Standardization of Small Generator Interconnection Agreements and Procedures, and FERC's subsequent amendments thereto ("FERC Rules"),⁸ address the interconnection of distributed generators. We find that for purposes of our rulemaking under § 56-578 C of the Code, that the FERC Rules constitute reasonable nationally recognized standards. The Staff reports that the FERC Rules provide the basis for Staff's Proposed Rules and Staff's Revised Rules.

The Interconnection Rules we adopt herein contain a number of modifications to Staff's Revised Rules. These modifications (shown in brackets) follow our consideration of changes suggested by the parties in their written comments and our analysis of the entire record in this proceeding. We will comment on certain of the modifications made in the Interconnection Rules.

First, some commenters urged that less restrictive deadlines be set in the Interconnection Rules.

Virginia Power comments that many deadlines set in the Interconnection Rules are overly aggressive. Virginia Power states that regardless of whether the interconnection customer is following a Level 1, 2, or 3 track toward interconnection,⁹ the procedures applicable to the customer's small generating facility must accommodate the possibility that modifications to the utility system, as well as to the customer's small generating facility, will be required.¹⁰

The Cooperatives have stated that their limited staffs cannot abandon other responsibilities in order to quickly respond to the numerous technical questions that would arise from a proposed interconnection.¹¹ The Cooperatives continue to object to timelines set in the Interconnection Rules that they consider to be unnecessarily conforming to the FERC Rules without there being evidence that such restrictive timelines need to be imposed for Virginia interconnections. The Cooperatives represent that their distribution systems include essentially no FERC-jurisdictional transmission facilities and are otherwise exempt from FERC regulation because they are subject to regulation by the U.S. Department of Agriculture's Rural Utilities Service. The Cooperatives recommend that we lengthen certain deadlines from the FERC Rules in setting deadlines for the Interconnection Rules.

We note that the deadlines set in the Interconnection Rules are no more stringent than those imposed by the FERC Rules. If the deadlines present obstacles, we expect the parties to work together to resolve any timing issues. In addition, the Interconnection Rules, as the Cooperatives' Further Comments recognize, specifically address situations in which specified time frames cannot be met:

The utility shall make reasonable efforts to meet all time frames provided in these regulations unless the utility and the IC [interconnection customer] agree to a different schedule. If the utility cannot meet a deadline provided herein, it shall notify the IC, explain the reason for the failure to meet the deadline, and provide an estimated time by which it will complete the applicable interconnection procedure in the process.

20 VAC 5-314-10.

Although the Cooperatives are concerned that negotiating timing extensions under this rule may become routine and will be disruptive of the interconnection process,¹² we find that expansion of the Interconnection Rules deadlines is unwarranted at this time.

Second, IREC and the Cooperatives propose further modification to the interconnection customer insurance requirements specified in 20 VAC 5-314-160.

IREC requests that any insurance requirements for a Level 1 small generating facility up to 500 kW be waived; and that the insurance requirements for larger systems be lowered to avoid what IREC considers to be an unreasonable barrier to new technology deployment. IREC suggests that Level 2 insurance requirements be set no higher than $1 million, and Level 3 insurance requirements be set no higher than $2 million, and in particular, that Level 3 insurance amounts not be determined "on a case-by-case" basis. IREC also requests that the requirement in 20 VAC 5-314-160 B stating that the utility be named as an additional insured be eliminated from the Interconnection Rules.

The Cooperatives comment that the insurance provisions of 20 VAC 5-314-160 are insufficient and recommend that any interconnection customer owning small generating facilities for interconnection be required to carry such insurance coverage as a utility would carry for comparable utility facilities that present the same kinds and levels of hazard risk. The Cooperatives suggest that such risk covered by a utility would be met by maintaining general liability insurance, including premises liability coverage for operations, in an amount of $2 million per occurrence, with no upper limit on the aggregate, as well as an all-risk property policy and umbrella policies with even higher limits.

We note that the FERC Rules defer to the states in setting minimum limits for insurance coverage for interconnections falling under the Small Generator 10 kW processes.¹³ With regard to all other interconnections, the FERC Rules at Article 8.1 of the Small Generator Interconnection Agreement require that insurance coverage shall be sufficient to insure against all reasonably foreseeable direct liabilities, given the size and nature of the generating equipment being interconnected, the interconnection itself, and the characteristics of the system to which the interconnection is made.¹⁴

We find reasonable insurance limits should be set, as proposed by Staff, for smaller systems at $100,000 for those with a rated capacity not exceeding 10 kW, and $300,000 for those with a rated capacity exceeding 10 kW but not exceeding 500 kW; and for larger systems at $2 million for those with a rated capacity exceeding 500 kW but not exceeding 2 MW, and determined on a case-by-case basis for those with a rated capacity exceeding 2 MW. These limits are reflected in 20 VAC 5-314-160 A of the Interconnection Rules. We have eliminated the requirement in 20 VAC 5-314-160 B of the Staff's Revised Rules that the utility be named as an additional insured.

Third, the Staff's Revised Rules for the Level 2 interconnection process, 20 VAC 5-314-60, did not require that a Level 2 small generating facility be connected under the Small Generator Interconnection Agreement ("SGIA"). Virginia Power cites the FERC Rules¹⁵ requiring all generators of 20 MW or less to enter into an SGIA. We agree with Virginia Power that an SGIA should be required for small generating facilities having capacity exceeding 500 kW that make application under the Level 2 process.

Fourth, IREC comments that a utility-accessible, external disconnect switch ("UEDS") does not provide a sufficient additional safety benefit to justify its cost to the interconnection customer and should not be required under a utility's tariff, pursuant to 20 VAC 5-314-40 B 2 and 3. IREC argues that concern for a utility line worker's safety as reflected in the requirement for a UEDS fails to recognize that all modern inverters stop power flow to the grid from the interconnected distributed generator automatically. IREC proposes that 20 VAC 5-315 B 2 and 3 be modified to either prohibit the installation of a UEDS, or allow a utility to elect to install a UEDS at its own expense, for inverter-based systems sized less than or equal to 10 kW.

We recognize that there are reasonable arguments to support the utility's requirement for a UEDS. For instance, the Commission has recognized the need for this safety device and requires a UEDS as a safety measure in the Net Metering Rules set out in 20 VAC 5-315-40 A 2. Consistent with our requirement in the Net Metering Rules, we decline to modify 20 VAC 5-314-40 B 2 and 3 as requested by IREC.

Fifth, the Cooperatives seek release from any obligations to purchase reactive power from an interconnection customer that may arise under Article 1.8 of the SGIA (Schedule 6 of 20 VAC 5-314-170). The Cooperatives rely upon their wholesale power suppliers for all their power requirements and object to Article 1.8 requiring a utility to compensate the interconnection customer to the extent an electric cooperative calls upon the interconnection customer to provide reactive power. The Cooperatives maintain that any obligation arising under Article 1.8 must be taken up with the Cooperatives' wholesale power suppliers.

As Article 1.8 does not impose any obligation to purchase reactive power, we find that the Cooperative's requested exception is unnecessary.

Sixth, Virginia Power and the Cooperatives request that 20 VAC 5-314-110 be revised to state that, prior to the Commission releasing and making public confidential information that the Commission has received from either party, the parties shall have an opportunity to respond. Such a provision had appeared in the Staff's Proposed Rules, and we find that it should be restored, with minor editing, to 20 VAC 5-314-110 C.

Seventh, Virginia Power comments that the Interconnection Rules at 20 VAC 5-314-60 C 8 should be clarified to require that a Small Generating Facility ("SGF") cannot be interconnected to a network distribution system before all required modifications to the SGF are made. To that end, Virginia Power requests that the words, "except minor modification" be eliminated from 20 VAC 5-314-60 C 8. We agree.

Eighth, Virginia Power seeks recovery of overhead costs from the interconnection customer when performing interconnection studies, pursuant to 20 VAC 5-314-70 C 4 a, D 3 a, and E 3 a. The Commission finds that recovery of such overhead costs should not be permitted by the Interconnection Rules at this time. Rather, we find that it is reasonable for utilities to recover only their incremental costs in this regard, as is currently reflected in the Revised Rules. The recovery of overhead costs by the utility could significantly increase the cost of interconnection for the interconnection customer, which may unreasonably impede the development of distributed generation in the Commonwealth.

Accordingly, IT IS ORDERED THAT:

(1) We hereby adopt Chapter 314, Regulations Governing Interconnection of Small Electrical Generators (20 VAC 5-314-10, et seq.) of the Virginia Administrative Code, all as set forth in Attachment A appended hereto, to be effective May 21, 2009. The provisions of Chapter 314 shall become effective as of July 1, 2009, for eligible farms as defined in H.B. 2171, enacted by the 2009 Session of the Virginia General Assembly.

(2) A copy of this Order and the rules adopted herein shall be forwarded promptly for publication in the Virginia Register of Regulations.

(3) This case is dismissed and the papers herein shall be placed in the files for ended causes.

Commissioner Dimitri did not participate in this matter.

AN ATTESTED COPY hereof shall be sent by the Clerk of the Commission to: T. Borden Ellis, Senior Attorney, Legal, NiSource Corporate Services Company, 1809 Coyote Drive, Chester, Virginia 23836; Noelle J. Coates, Esquire, Hunton & Williams LLP, Riverfront Plaza, East Tower, 951 East Byrd Street, Richmond, Virginia 23219-4074; Horace P. Payne, Jr., Esquire, Dominion Resources Services, Inc., 120 Tredegar Street, RS-2, Richmond, Virginia 23219; John A. Pirko, Esquire, LeClairRyan, P.C., 4201 Dominion Boulevard, Suite 200, Glen Allen, Virginia 23060; Charles E. Bayless, Esquire, Appalachian Power Company, P.O. Box 1986, Charleston, West Virginia 25327; Kevin Fox, Esquire, Keyes & Fox LLP, 5727 Keith Avenue, Oakland, California 94618; C. Meade Browder, Jr., Senior Assistant Attorney General, Division of Consumer Counsel, Office of Attorney General, 900 East Main Street, 2nd Floor, Richmond, Virginia 23219; and the Commission's Office of General Counsel and Divisions of Energy Regulation and Economics and Finance.

---

¹Section 56-578 A of the Code states:

A. All distributors shall have the obligation to connect any retail customer, including those using distributed generation, located within its service territory to those facilities of the distributor that are used for delivery of retail electric energy, subject to Commission rules and regulations and approved tariff provisions relating to connection of service.

²Section 56-578 C of the Code, states:

C. The Commission shall establish interconnection standards to ensure transmission and distribution safety and reliability, which standards shall not be inconsistent with nationally recognized standards acceptable to the Commission. In adopting standards pursuant to this subsection, the Commission shall seek to prevent barriers to new technology and shall not make compliance unduly burdensome and expensive. The Commission shall determine questions about the ability of specific equipment to meet interconnection standards.

³The Virginia Electric Cooperatives consist of A&N Electric Cooperative, BARC Electric Cooperative, Central Virginia Electric Cooperative, Community Electric Cooperative, Craig-Botetourt Electric Cooperative, Mecklenburg Electric Cooperative, Northern Neck Electric Cooperative, Northern Virginia Electric Cooperative, Prince George Electric Cooperative, Rappahannock Electric Cooperative, Shenandoah Valley Electric Cooperative, Southside Electric Cooperative, and the Virginia, Maryland & Delaware Association of Electric Cooperatives.

⁴The Staff was granted a filing extension to October 24, 2008, by Order Granting Extension to Staff issued September 24, 2008, and a further extension by Order issued November 26, 2008, which also granted leave to interested persons to file comments on Staff's Revised Rules on or before January 15, 2009.

⁵Staff Report, pp. 3-26.

⁶The provisions of the Interconnection Rules will become effective as of July 1, 2009, for "eligible farms," as defined in HB 2171, enacted by the 2009 Session of the Virginia General Assembly. (2009 Va. Acts Ch. 746)

⁷Order Establishing Proceeding, Case No. PUE-2008-00004, February 26, 2008, p. 2, n.2.

⁸Standardization of Small Generator Interconnection Agreements and Procedures, Order No. 2006, FERC Stats. & Regs. ¶ 31,180 (2005), order on reh'g, Order No. 2006-A, FERC Stats. & Regs. ¶ 31,196 (2005), order granting clarification, Order No. 2006-B, FERC Stats. & Regs. ¶ 31,221 (2006), appeal pending sub nom., Consolidated Edison Co. of New York, Inc. v FERC, Nos. 06-1018, 06-1036 (D.C. Cir.).

⁹20 VAC 5-314-10.

¹⁰Virginia Power Comments filed January 15, 2009, p. 15.

¹¹Cooperatives Comments filed January 15, 2009, p. 9.

¹²Cooperatives' comments filed January 15, 2009, p. 11.

¹³See FERC Rules, Appendix E (Small Generator Interconnection Procedures), Attachment 5 (10 kW Inverter Process), Terms and Conditions for Interconnecting an Inverter-Based Small Generator Facility no larger than 10 kW, Section 7.0.

¹⁴See Appendix F (Small Generator Interconnection Agreement), Article 8., Insurance, Paragraph 8.1.

¹⁵See Order No. 2006-B, Sections 2.4.1 and 3.5.7.

CHAPTER 314
REGULATIONS GOVERNING INTERCONNECTION OF SMALL ELECTRICAL GENERATORS

20VAC5-314-10. Applicability and scope [ ; waiver ].

[ A. ] These regulations are promulgated pursuant to § 56-578 of the Virginia Electric Utility Restructuring Act (§ 56-576 et seq. of the Code of Virginia). They establish standardized interconnection and operating requirements for the safe operation of electric generating facilities with a rated capacity of 20 megawatts (MW) or less connected to distribution companies' electric utility distribution (and in certain cases transmission) systems in Virginia. These requirements regulations apply [ to utilities providing interconnections ] to retail electric customers, independently owned generators or and any other parties operating, or intending to operate, a distributed generation facility in parallel with [ a utility's system and to the ] utility [ systems ]. Interconnections These regulations do not apply to customer generators operating pursuant to the [ commission's Virginia State Corporation Commission's ] Regulations Governing Net Energy Metering (20VAC5-315) or those that fall under the jurisdiction of the Federal Energy Regulatory Commission [ (FERC) ] are not subject to these regulations.

If the utility has turned over control of its transmission system to a Regional Transmission Entity (RTE), and if the small generator interconnection process identifies upgrades to the transmission system as necessary to interconnect the small generating facility, then the utility will coordinate with the RTE, and the procedures herein will be adjusted as necessary to satisfy the RTE's requirements with respect to such upgrades.

There are three interconnection review paths for the interconnection of customer-sited generation in Virginia having an output of not more than 20 MW:

Level 1 - A request to interconnect a certified inverter-based small generating facility (SGF) no larger than 500 kilowatts (kW) shall be evaluated under the Level 1 process.

Level 2 - A request to interconnect a certified small generating facility SGF no larger than 500 kW but no larger than 2 MW and not qualifying for the Level 1 process shall be evaluated under the Level 2 process.

Level 3 - A request to interconnect a small generating facility larger than 2 MW but an SGF no larger than 20 MW or a small generating facility that does not pass and not qualifying for the Level 1 process or Level 2 process, shall be evaluated under the Level 3 process.

[ An SGF proposed to be interconnected to a distribution feeder may be limited The utility may limit the interconnection of an SGF to a distribution feeder ] to a capacity substantially less than 20 MW, depending upon the characteristics of that feeder and the potential for upgrading it, as well as the nature of the loads and other generation on the feeder relative to the proposed point of interconnection. [ If the SGF cannot be safely and reliably interconnected to the utility's distribution feeder, the utility shall work with the IC to interconnect the SGF to the utility's transmission system. In such cases, the interconnection of the SGF may be governed by the regulations promulgated by FERC rather than the regulation of the State Corporation Commission. ]

The utility shall designate an employee or office from which the interconnection customer [ ("IC") (IC) ] may informally request information on concerning the application process can be obtained through informal requests from the interconnection customer presenting a proposed project for a specific site. The name, telephone number, and email address of such contact employee or office shall be made available on the utility's Internet [ web site website ]. Electric system information for specific locations, feeders, or small areas relevant to the location of the proposed SGF shall be provided to the interconnection customer IC upon request and may include relevant system studies, interconnection studies, and any other relevant materials useful to an understanding of an interconnection at a particular point on the utility's system, to the extent such provision does not violate confidentiality provisions of prior agreements or release critical infrastructure requirements information. The utility shall comply with reasonable requests for such information unless the information is proprietary or confidential and cannot be provided pursuant to a confidentiality agreement.

The utility shall make reasonable efforts to meet all time frames provided in these procedures regulations unless the utility and the interconnection customer IC agree to a different schedule. If the utility cannot meet a deadline provided herein, it shall notify the interconnection customer IC, explain the reason for the failure to meet the deadline, and provide an estimated time by which it will complete the applicable interconnection procedure in the process.

[ Each utility shall have on file with the commission terms and conditions applicable to the interconnection of SGFs. Such terms and conditions shall, at a minimum, incorporate this chapter by reference, shall set forth terms and conditions applicable to SGFs for which no Small Generator Interconnection Agreement (SGIA) is executed, and shall not conflict with the provisions of this chapter. The terms and conditions applicable to SGFs for which no SGIA is executed shall be reasonably consistent with the terms and conditions of the SGIA.

B. The commission may waive any or all parts of the provisions of this chapter for good cause shown. ]

20VAC5-314-20. Definitions.

The following terms when used in this chapter shall have the following meaning unless the context clearly indicates otherwise:

"Affected system" means an electric utility system other than that of the utility's distribution system utility that may be affected by the proposed interconnection.

"Affected system operator" means an entity that operates an affected system or, if the affected system is under the operational control of an independent system operator or a regional transmission entity, such independent entity.

"Applicable laws and regulations" means all duly promulgated applicable federal, state and local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or administrative orders, permits and other duly authorized actions of any government authority.

"Attachment facilities" means the facilities and equipment owned, operated, and maintained by the utility that are built new in order to physically connect the customer's interconnection facilities to the utility system. Attachment facilities shall not include distribution upgrades or previously existing distribution and transmission facilities.

"Business day" means Monday through Friday, excluding federal holidays.

"Certified" has the meaning ascribed to it in Schedule 2 of this chapter.

[ "Commission" means the Virginia State Corporation Commission.

"Competitive service provider" means any entity, other than the utility, supplying electric energy service to the interconnection customer. ]

"Customer's interconnection facilities" means all of the facilities and equipment owned, operated and maintained by the interconnection customer, between the small generating facility and the point of interconnection necessary to physically and electrically interconnect the small generating facility to the utility system.

[ "Commission" means the Virginia State Corporation Commission. ]

"Distribution company" means the utility that owns and/or operates the distribution system located in Virginia to which the small generation facility proposes to interconnect its small generating facility.

"Default" means the failure of a breaching party to cure its breach under the small generator interconnection agreement.

"Distribution system" means a the utility's facilities and equipment generally delivering electricity to ultimate customers from substations supplied by higher voltages (usually at transmission level). For purposes of these interconnection rules regulations, all portions of the distribution company's utility's transmission system regulated by the commission for which interconnections are not within Federal Energy Regulatory Commission (FERC) jurisdiction are considered also to be part of subject to these interconnection rules regulations.

"Distribution upgrades" means the additions, modifications, and upgrades to the utility's distribution system at or beyond the point of interconnection to facilitate necessary to abate problems on the utility's distribution system caused by the interconnection of the small generating facility and to render the service necessary to effect the interconnection customer's operation of on-site generation. Distribution upgrades do not include customer's interconnection facilities or attachment facilities.

[ "Energy service provider" means any entity supplying electric energy service to the ] producer, either as tariffed, competitive, or default service pursuant to § 56-585 of the Code of Virginia [ interconnection customer. ]

"Facilities study" has the meaning ascribed to it in 20VAC5-314-70 E.

"Feasibility study" has the meaning ascribed to it in 20VAC5-314-70 C.

"FERC" means the Federal Energy Regulatory Commission.

"Good Utility Practice" means any of the practices, methods and acts engaged in or approved by a significant portion of the electric industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region.

"Governmental authority" means any federal, state, local or other governmental regulatory or administrative agency, court, commission, department, board, or other governmental subdivision, legislature, rulemaking board, tribunal, or other governmental authority having jurisdiction over the parties, their respective facilities, or the respective services they provide, and exercising or entitled to exercise any administrative, executive, police, or taxing authority or power; provided that such term does not include the interconnection customer, the utility or a utility affiliate.

"Interconnection customer" or "IC" means any entity, including the utility, any affiliates or subsidiaries of either, proposing to interconnect a new small generating facility with the utility's utility system under this chapter.

"Interconnection facilities" means the utility's interconnection facilities and the interconnection customer's interconnection facilities. Collectively, interconnection facilities include all facilities and equipment between the small generating facility and the point of interconnection, including any modification, additions or upgrades that are necessary to physically and electrically interconnect the small generating facility to the utility's distribution system. Interconnection facilities are sole use facilities and shall not include distribution upgrades.

"Interconnection request" means the interconnection customer's IC's request, in accordance with [ the tariff this chapter ], to interconnect a new small generating facility, or to increase the capacity of, or make a material modification to the operating characteristics of, an existing small generating facility that is interconnected with the utility's utility system.

"Interconnection study studies" means the study that is undertaken studies conducted by the company utility, or a mutually agreed upon third party agreed to by the company utility and the producer interconnection customer, in order to determine the interaction of the small generating facility and with the distribution utility system, and the affected systems in order to specify any modification modifications to the small generating facility or the distribution system needed electric systems studied to ensure safe and reliable operation of the small generating facility in parallel with the distribution utility system.

"Material modification" means a modification that has a material impact on the cost or timing of any interconnection request with a later queue priority date.

"Operating requirements" means any operating and technical requirements that may be applicable due to regional transmission entity, independent system operator, control area, or the utility's requirements, including those set forth in the Small Generator Interconnection Agreement.

"Party" or "parties" means the utility, interconnection customer, or any combination thereof both.

"Point of interconnection" means the point where the customer's interconnection facilities connect with to the utility's utility system.

"Producer" means a person operating a small generating facility interconnected to the distribution system of a utility for the purpose of parallel operation.

"Regional Transmission Entity" or "RTE" means an entity having the management and control of a utility's transmission system as further set forth in § 56-579 of the Code of Virginia.

"Small generating facility" or "generator" or "SGF" means the interconnection customer's device equipment for the production of electricity identified in the interconnection request, but shall not include the interconnection facilities not owned by the interconnection customer.

"Study process" means the procedure for evaluating an interconnection request that includes the Level 3 scoping meeting, feasibility study, system impact study, and facilities study.

"Small Generator Interconnection Agreement" or "SGIA" means the agreement between the utility and the interconnection customer as set forth in Schedule 6 of 20VAC5-314-170.

"Supplemental review" has the meaning ascribed to it in 20VAC5-314-60 [ G I ].

"System" or "utility system" means the distribution and transmission facilities owned, controlled, or operated by the utility that are used to provide electric service under the tariff deliver electricity.

"System impact study" has the meaning ascribed to in 20VAC5-314-70 [ E D ].

"Tariff" means the rates, terms and conditions filed by the utility with the commission for the purpose of providing commission-regulated electric service to retail customers.

"Transmission system" means the utility's facilities and equipment delivering electric energy to the distribution system, such facilities being operated at voltages above the utility's typical distribution system voltages.

"Utility" means the public utility company subject to regulation by the commission pursuant to Chapter 10 (§ 56-232 et seq.) of Title 56 of the Code of Virginia with regard to rates and/or service quality to which the interconnection customer proposes to interconnect a small generating facility.

20VAC5-314-30. Siting of distributed generation facilities.

Prior to installing a small generating facility, the IC interconnection customer must ensure compliance with local, state and federal laws and regulations, including siting. If the producer has satisfied the requirements of this chapter and has submitted a copy of his interconnection notification form to the commission's Division of Energy Regulation, the statutory requirements of § 56-580 D all applicable easements and permits, and §§ 56-265.2 and 56-580 of the Code of Virginia shall be deemed to have been met, as applicable.

20VAC5-314-40. Level 1 interconnection process.

A. The Level 1 interconnection path process is available to any IC interconnection customer proposing to interconnect a small generating facility with the utility's distribution utility system if the small generating facility SGF is no larger than 500 kW. In order to interconnect under this path, the small generating facility shall complete the streamlined Interconnection Request Form contained in 20VAC5-314-170 as Schedule 1. The utility shall follow the same time line established by the commission in 20VAC5-315-30 of the Net Metering Regulations.

[ B. An IC may begin operation of a small generating facility when:

1. The IC has completed the Level 1 Interconnection Request Form (Schedule 1 in 20VAC5-314-170) and submitted it to the utility with the required $100 processing fee attached. The utility shall submit a copy of the Interconnection Notification Form to the commission's Division of Energy Regulation. The utility may supply a commission-approved Interconnection Request Form similar to Schedule 1;

B. The IC shall submit a complete Level 1 Interconnection Request Form (Schedule 1 in 20VAC5-314-170) to the utility with the required $100 processing fee attached. Alternatively, the utility may require use of a commission-approved Interconnection Request Form similar to Schedule 1, which shall be made available to customers on the utility's Internet website. The Interconnection Request Form shall be date- and time-stamped upon receipt by the utility. The date- and time-stamp shall be used as the qualifying date- and time-stamp for the purpose of any timetable in these procedures.

The IC shall be notified of receipt by the utility within three business days of receiving the interconnection request, which notification may be by United States mail, email address or fax number provided by the IC. As soon as practicable after receipt, but not later than 10 business days after the date of receipt, the utility shall notify the IC if there are any deficiencies in the IC's submittal. If there are deficiencies, such notice shall include a written list detailing all information that must be provided to complete the interconnection request.

The IC shall have 10 business days after receipt of the notice of incomplete information to submit the listed information or to request an extension of time to provide such information. If the IC does not provide the listed information or a request for an extension of time within the deadline, the Interconnection Request Form will be deemed withdrawn.

The utility shall provide a copy of the final completed date- and time-stamped Interconnection Request Form to the Commission's Division of Energy Regulation.

C. Within 15 business days after the date the IC submits a complete Interconnection Request Form and requisite fee, the utility shall evaluate the request and inform the IC what utility modifications are required to interconnect the SGF.

1. If the interconnection can be accomplished with minor modifications to the utility system, the IC and the utility may informally agree upon a plan to effectuate the required installations and modifications. The utility shall perform all installations and modifications of the utility system and the IC shall reimburse the utility for the cost of such installations and modifications. The IC shall perform all required modifications to its SGF.

2. Absent an agreement between the parties regarding modifications to the utility system, the interconnection request will be transferred to the Level 2 process or handled according to 20VAC5-314-100 (Disputes) at the IC's option.

D. An IC may begin operation of an SGF when any required modifications or additions as provided for in subsection C of this section are complete and when the following additional requirements are satisfied: ]

[ 2. 1. ] If required by the utility's tariff, the IC has installed a lockable, utility-accessible, load breaking manual disconnect switch;

[ 3. 2. ] A licensed electrician has certified, by signing the Interconnection Request Form, that any required manual disconnect switch has been installed properly and that the small generating facility has been installed in accordance with the manufacturer's specifications as well as all applicable provisions of the National Electrical Code;

[ 4. 3. ] The vendor of the SGF has certified on the Interconnection Request Form that the SGF equipment is in compliance with the requirements established by Underwriters Laboratories or other national testing laboratories in accordance with IEEE Standard 1547, Standard for Interconnecting Distributed Resources with Electric Power Systems;

[ 5. 4. ] In the case of a static inverter-connected SGF with an alternating current capacity in excess of 10 kilowatts, the IC has had the inverter settings inspected by the utility. The utility may not impose a charge for the inspection;

[ 6. 5. ] In the case of a nonstatic inverter-connected SGF, the IC has interconnected according to the utility's interconnection guidelines, and the utility has inspected all protective equipment settings. The utility may not impose a charge for such inspection.

[ 6. The IC has paid, or has made arrangements satisfactory to the utility to pay the cost of the SGF metering pursuant to 20VAC5-314-80. ]

7. [ In the case of an An ] SGF having an alternating current capacity greater than 25 kilowatts [ , shall meet ] the following [ additional ] requirements [ shall be met ] before interconnection may occur:

a. Distribution facilities and customer impact limitations. An SGF shall not be permitted to interconnect to distribution facilities if the interconnection would reasonably lead to damage to any of the utility's facilities or would reasonably lead to voltage regulation or power quality problems at other customer revenue meters due to the incremental effect of the SGF on the performance of the system, unless the IC reimburses the utility for its cost to modify any facilities needed to accommodate the interconnection [ and such modifications are completed ].

b. Secondary, service, and service entrance limitations. The capacity of the SGF shall be less than the capacity of the utility-owned secondary, service, and service entrance cable connected to the point of interconnection, unless the IC reimburses the utility for its cost to modify any facilities needed to accommodate the interconnection [ and such modifications are completed ].

c. Transformer loading limitations. The SGF shall not have the ability to overload the utility's distribution transformer, or any distribution transformer winding, beyond manufacturer or nameplate ratings, unless the IC reimburses the utility for its cost to modify any facilities needed to accommodate the interconnection [ and such modifications are completed ].

d. Integration with utility's grounding. The grounding scheme of the SGF shall comply with the IEEE 1547, Standard for Interconnecting Distributed Resources with Electric Power Systems, and shall be consistent with the grounding scheme used by the utility. If requested by an IC, the utility shall assist the IC in selecting a grounding scheme that coordinates with its distribution system.

e. [ Voltage ] Balance limitation. The SGF shall not create a voltage imbalance of more than 3.0% at any other customer's revenue meter if the utility distribution transformer, with the secondary connected to the point of interconnection, is a three-phase transformer, unless the IC reimburses the utility for its cost to modify any facilities needed to accommodate the interconnection [ and such modifications are completed ].

[ E. Site control documentation must be submitted with the Interconnection Request Form. Any information appearing in public records may not be labeled Confidential. (Confidential information is discussed in 20VAC5-314-110.) Site control may be demonstrated through:

1. Ownership of, a leasehold interest in, or a right to develop a site for the purpose of constructing the SGF;

2. An option to purchase or acquire a leasehold site for such purpose;

3. An exclusive or other business relationship between the IC and the entity having the right to sell, lease, or grant the IC the right to possess or occupy a site for such purpose; or

4. An existing permanent service metered account with the utility at the site and in the name of the IC. ]

[ C. Neither F. Except as otherwise provided herein, neither ] the utility nor the [ energy competitive ] service provider shall impose any charges upon an IC for any interconnection requirements specified by this chapter [ , except as may be incurred in providing off-site metering ].

[ D. G. ] The IC shall immediately notify the utility of any changes in the ownership of, operational responsibility for, or contact information for the SGF.

[ E. H. ] The utility shall not be required to maintain an interconnection with an SGF if the SGF or associated equipment is found to be out of compliance with the codes, standards [ , ] and certifications applicable to the SGF.

[ I. Any IC that is not able to interconnect under the Level 1 interconnection process may apply for interconnection under the Level 2 process or Level 3 process. ]

20VAC5-314-50. Levels 1 2 and 2 3 interconnection request general requirements.

A. The interconnection customer shall submit it's a completed Levels 2 and 3 Interconnection Request Form contained in (Schedule 4 of 20VAC5-314-170 (Schedule 4) to the utility, with the processing fee or deposit specified in the Interconnection Request Form. The utility shall provide a copy of the Interconnection Request Form to the commission's Division of Energy Regulation. The Interconnection Request Form shall be date- and time-stamped upon receipt by the utility, which. The date- and time-stamp of a completed Interconnection Request Form shall be used as the qualifying date- and time-stamp for the purposes of any timetable in these procedures. The interconnection customer shall be notified of receipt by the utility within three business days of receiving the interconnection request, which notification may be to an by US mail, email address [ , ] or fax number provided by the IC.

The utility shall notify the interconnection customer within 10 business days of the receipt of the Interconnection Request Form as to whether the Interconnection Request Form is complete or incomplete. If the Interconnection Request Form is incomplete, the utility shall provide, along with the notice that the Interconnection Request Form is incomplete, so notify the IC, including a written list detailing all information that must be provided to complete the Interconnection Request Form.

The interconnection customer will shall have 10 business days after receipt of the notice of incomplete information to submit the listed information or to request an extension of time to provide such information. If the interconnection customer IC does not provide the listed information or a request for an extension of time within the deadline, the Interconnection Request Form will be deemed withdrawn. An Interconnection Request Form will be deemed complete upon submission of the listed information to the utility.

The utility shall provide a copy of the final completed date- and time-stamped Interconnection Request Form to the commission's Division of Energy Regulation.

B. Any material modification to machine data or equipment configuration or to the interconnection site of the small generating facility as specified in the Interconnection Request Form but not agreed to in writing by the utility and the interconnection customer IC may be deemed a withdrawal of the Interconnection Request Form and may require submission of a new Interconnection Request Form, unless proper notification of each party by the other and a reasonable time to cure the problems created by the changes are undertaken.

C. Site control documentation must be submitted with the interconnection request Interconnection Request Form. Any information appearing in public records may not be labeled Confidential. (Confidential information is discussed in 20VAC5-314-110.) Site control may be demonstrated through:

1. Ownership of, a leasehold interest in, or a right to develop a site for the purpose of constructing the small generating facility;

2. An option to purchase or acquire a leasehold site for such purpose;

3. An exclusivity or other business relationship between the interconnection customer and the entity having the right to sell, lease, or grant the interconnection customer IC the right to possess or occupy a site for such purpose.

[ 4. An existing permanent service metered account with the utility at the site and in the name of the IC. ]

D. The utility shall place interconnection requests in into a [ first come, first served first-come, first-served ] order per queue that is based on the interconnection's distribution feeder and per distribution substation. The queue position shall be based upon the date- and time-stamp of the completed Interconnection Request Form. The order of each Interconnection Request Form queue position of an interconnection request will be used to determine the cost responsibility for the necessary upgrades necessary to accommodate the interconnection. At the utility's option, interconnection requests may be studied serially or in clusters for the purpose of the system impact study.

E. The utility shall not be required to maintain an interconnection with an SGF if the SGF or associated equipment is found to be out of compliance with the codes, standards and certification applicable to the SGF.

20VAC5-314-60. Level 2 interconnection process.

A. The Level 2 interconnection process is available to an interconnection customer proposing to interconnect a small generating facility with the utility's distribution utility system if the small generating facility SGF is no larger than 2 MW and if the interconnection customer's proposed small generating facility does not qualify for the Level 1 process, and meets the codes, standards, and certification requirements of Schedules 2 and 3 in 20VAC5-314-170.

B. Within 15 business days after the utility notifies the interconnection customer IC it has received a complete interconnection request Interconnection Request Form, the utility shall perform an initial review using the screens set forth below [ (20VAC5-314-60 C or 20VAC5-314-60 D, as applicable) ] and shall notify the interconnection customer IC of the results [ , ] including copies of the analysis and data underlying the utility's determinations under the screens.

1. The proposed small generating facility's point of interconnection must be on a portion of the utility's distribution system that is subject to the tariff.

C. [ Interconnection Screens for interconnections ] to radial circuits.

2. 1. For interconnection of a proposed small generating facility to a radial distribution circuit, the aggregated generation, including the proposed small generating facility, on the circuit shall not exceed 15% of the line section's annual peak load as most recently measured at the substation or calculated for the line segment section. A line section is that portion of a utility's electric system distribution circuit connected to a customer that is bounded by automatic sectionalizing devices or the end of the distribution line circuit.

3. 2. The proposed small generating facility SGF, in aggregation with other generation on the distribution circuit, shall not contribute more than 10% to the distribution circuit's maximum fault current at the point on the distribution feeder feeder's (primary) voltage (primary) level that is nearest the proposed point of change of ownership interconnection.

4. 3. The proposed small generating facility SGF, in aggregate with other generation on the distribution circuit, shall not cause any distribution protective devices and equipment (including, but not limited to, substation breakers, fuse fused cutouts, and line reclosers), or interconnection customer equipment on the system to exceed 87.5% of the short circuit interrupting capability; nor shall the interconnection be proposed for permitted on a circuit that already exceeds where 87.5% of the short circuit interrupting capability is already exceeded.

5. Using 4. For interconnections to the distribution primary voltage, use the table below, to determine the acceptable type of interconnection to a primary distribution line circuit. This screen includes a review of the type of electrical service provided to the interconnection customer IC, including line configuration and the transformer connection, to limit the potential for creating over-voltages on the utility's electric power distribution system due to a loss of ground during the operating time of any anti-islanding function.

Primary Distribution Line Type	Type of Interconnection to Primary Distribution Line	Result/Criteria
Three-phase, three wire	Three-phase, or single phase, phase-to-phase	Pass screen
Three-phase, four wire	Effectively-grounded three phase, or single-phase, line-to-neutral	Pass screen

6. 5. If the proposed small generating facility is to be interconnected on to a single-phase shared secondary, the aggregate generation capacity on the shared secondary, including the proposed small generating facility SGF, shall not exceed 20 kW.

7. 6. If the proposed small generating facility SGF is single-phase and is to be interconnected on a center tap neutral of a 240 volt service, its addition shall not create an imbalance between the two sides of the 240 volt service of more than 20% of the nameplate rating of the service transformer.

8. 7. The small generating facility SGF, in aggregate with other generation interconnected to the transmission side of a the substation transformer feeding that feeds the distribution circuit where the small generating facility SGF proposes to interconnect, shall not exceed 10 MW in an area where there are known, or posted, transient stability limitations to generating units located in the general electrical vicinity (e.g., [ within ] three or four transmission busses from the point of interconnection).

9. 8. No construction of facilities by the utility on its own system shall be required to accommodate the small generating facility SGF [ , except minor modifications ].

C. D. [ Interconnections to ] distribution systems [ secondary voltage networks (120 volts to 480 volts) Screens for interconnections involving networks ].

1. For interconnection of a proposed small generating facility to the load side of spot network protectors serving more than a single customer, the proposed small generating facility SGF must utilize an inverter-based equipment package and, together with the aggregated other inverter-based generation, shall not exceed the smaller of 5.0% of a spot network's maximum load or 300 kW. For spot networks serving a single customer, the small generating facility SGF must use an inverter-based equipment package and either meet the requirements above, or shall use a protection scheme, or operate the generator so as not to exceed on-site load or otherwise prevent nuisance operation of the spot network protectors.

2. For interconnection of a proposed small generating facility an SGF to the load side of area network protectors, the proposed small generating facility SGF must utilize an inverter-based equipment package and, together with the aggregated other inverter-based generation, shall not exceed the smaller of 10% of an area network's minimum load, or 500 kW.

[ 3. If the SGF is single-phase, the IC's load net of generation on each phase shall not create an imbalance between the phases of a polyphase service, or if applicable, between each leg of single-phase service.

4. For interconnection of an SGF to a distribution circuit in an area where there are known or posted transient stability limitations to generating units located in the general electrical vicinity (e.g., within three or four transmission busses from the point of interconnection), the SGF, in aggregate with generation interconnected to the transmission side of the substation transformer that feeds the distribution circuit, shall not exceed the following limits:

a. For a distribution circuit that supplies only secondary voltage networks, 30% of the distribution circuit's load.

b. For a distribution circuit not exclusively supplying secondary networks, 10 MW.

5. For interconnection of an SGF to the line side of network protectors:

a. For a distribution circuit that supplies only secondary networks, the interconnection fails the screen.

b. For a distribution circuit not exclusively supplying secondary networks, the interconnections shall be evaluated in accordance with 20VAC5-314-60 C.

6. No construction of facilities by the utility on its own system shall be required to accommodate the SGF. ]

[ 3. 7. ] Notwithstanding subdivision 1 or 2 of this subsection, each utility may incorporate into its interconnection standards any change in interconnection guidelines related to networks pursuant to standards developed under IEEE 1547 for interconnections to networks. To the extent the any new IEEE standards conflict with this chapter, in particular IEEE 1547, the new standards shall apply. In addition, and with the consent of the utility, a small generating facility may be interconnected consent shall not be unreasonably withheld from an SGF interconnecting to a spot or area network provided the facility SGF utilizes a protection scheme that will prevent any power export from the customer's IC's site including inadvertent export under fault conditions or, and otherwise prevent nuisance operation of the network protectors.

D. E. If the proposed interconnection passes the screens, the interconnection request shall be approved and the utility will provide the interconnection customer an executable interconnection agreement within 10 five business days after the determination.

E. F. If the proposed interconnection fails any screens, but the utility determines that the small generating facility may nevertheless be interconnected consistent with safety, reliability, and power quality standards, the utility shall provide the interconnection customer IC an executable interconnection agreement within five business days after the determination.

F. G. If the proposed interconnection fails the any screens, but the utility does not or cannot determine from the initial review that the small generating facility SGF may nevertheless be interconnected consistent with safety, reliability, and power quality standards, unless the interconnection customer IC is willing to consider minor modifications or further study, the utility shall provide the interconnection customer IC with the opportunity to attend a customer options meeting.

G. H. If the utility determines [ that ] the Interconnection Request Form interconnection cannot be approved without minor modifications at minimal cost; a supplemental [ study review ] or other [ additional ] studies or actions; or [ modifications or installations ] at significant cost to address safety, reliability, or power quality problems, within the five business day period after the determination, the utility shall notify the interconnection customer IC and provide copies of the data and analyses underlying its conclusion within five business days after determination. Within 10 business days of the utility's determination, the utility shall offer to convene a customer options meeting with the utility to review possible interconnection customer IC facility modifications, or the screen analysis and related results, to determine what further steps are needed to permit the small generating facility SGF to be connected safely and reliably. At the time of notification of the utility's determination, or at the customer options meeting, the utility shall:

1. Offer to perform facility modifications or minor modifications to the [ utility's electric utility ] system (e.g., changing meters, fuses, [ and ] relay settings) and provide a nonbinding good faith an estimate of the limited cost to make such modifications to the [ utility's electric utility ] system;

2. Offer to perform a supplemental review if the utility concludes that the supplemental review might determine that the small generating facility SGF could continue to qualify for interconnection pursuant to the fast track Level 2 process, and provide a nonbinding good faith an estimate of the costs and time of such review; or

3. Obtain the interconnection customer's agreement Offer to continue evaluating the interconnection request, but under the Level 3 study interconnection process.

H. I. Supplemental review. If the interconnection customer agrees to a supplemental review, is offered to the interconnection customer shall agree in writing within 15 business days of the offer and submit a deposit for the estimated costs provided in subdivision G 2 of this section and the IC agrees to the supplemental review, the utility shall, within 10 business days of the request, provide to the IC an appropriate supplemental review agreement. To maintain its position in the utility's interconnection queue, the IC must execute the supplemental review agreement and return it to the utility, along with a deposit for the estimated cost of the supplemental review, within 15 business days after receipt of the agreement. If the IC fails to return the executed supplemental review agreement along with the deposit within 15 business days after receipt, the interconnection request shall be deemed withdrawn and shall lose its place in the utility's interconnection queue.

The interconnection customer IC shall be responsible for the utility's actual costs for of conducting the supplemental review. The interconnection customer IC shall pay any review costs that exceed the deposit within 20 30 business days of receipt of the invoice or resolution of any dispute. If the deposit exceeds the invoiced costs, the utility will return such excess within 20 30 business days of the invoice without interest.

Within 10 business days following receipt of the supplemental review agreement and deposit for a supplemental review, the utility will determine if the small generating facility SGF can be interconnected safely and reliably.

1. If so, and if the supplemental review reveals that no [ modification modifications ] are required to the [ customer's IC's ] interconnection facilities, or to the system, or to an affected system, the utility shall forward an executable [ interconnection agreement SGIA ] to the interconnection customer within five business days after the determination.

2. If so, and interconnection customer facility [ the customer's interconnection facilities ] modifications are required to [ the IC's interconnection facilities that ] allow the small generating facility SGF to be interconnected consistent with safety, reliability, and power quality standards under these procedures, the utility shall forward an executable [ interconnection agreement SGIA ] to the interconnection customer IC within five business days after confirmation that the interconnection customer IC has agreed to make the necessary changes at the interconnection customer's IC's cost.

3. If so, and minor modifications to the [ utility's electric utility ] system are required to allow the small generating facility SGF to be interconnected consistent with safety, reliability, and power quality standards under [ the Level 2 process these procedures ], the utility shall [ , within 10 business days after the determination, ] forward an executable [ interconnection agreement SGIA ] to the interconnection customer IC [ within 10 business days after the determination ] that requires the interconnection customer IC to pay the costs of such system modifications prior to interconnection.

4. If not, the interconnection request will continue to be evaluated under elevated to the Level 3 study interconnection process.

[ Interconnection may occur when, as may be required under the applicable subdivisions 1, 2, or 3 of this subsection, the SGIA is fully executed and returned to the utility, the IC has made required payments to the utility, and required modifications are complete. If subdivision I 4 of this section is applicable, interconnection shall occur in accordance with the Level 3 interconnection process.

J. Small generating facilities of 500 kW or less. For an SGF of 500 kW or less, the requirements in this section shall be deemed satisfied when: (i) an Interconnection Request Form as required under 20VAC5-314-40 B is properly completed and all of the certifications and acknowledgements required in Sections 5, 6, and 7 of the Interconnection Request Form are affixed and (ii) the IC and the utility have exchanged appropriate written commitments to effect the necessary installations and modifications to the SGF and the utility system. The timing of such commitments shall follow the timing prescribed in this section. ]

20VAC5-314-70. Level 3 interconnection process.

A. The Level 3 interconnection process shall be used by an IC interconnection customer proposing to interconnect a small generating facility with the utility's distribution utility system if the small generating facility SGF is (i) larger than 2 MW but no larger than 20 MW, (ii) not certified, or (iii) certified but did and does not pass or qualify for the Level 1 or Level 2 interconnection process processes. A study process consisting of As needed, a scoping meeting, feasibility study, system impact study, and facilities study shall precede the preparation of an interconnection agreement a Small Generator Interconnection Agreement (Schedule 6 of 20VAC5-314-170). Feasibility studies, scoping studies, and facility Any of the studies may be combined for simpler projects by mutual agreement of the utility and the parties.

B. Scoping study meeting.

1. A scoping meeting will be held within 10 business days after the interconnection request Interconnection Request Form is deemed complete, or as otherwise mutually agreed to by the parties. The utility and the interconnection customer IC shall bring to the meeting personnel, including system engineers and other resources as may be reasonably required to accomplish the purpose of the meeting.

2. The purpose of the scoping meeting is to discuss the interconnection request. The parties shall further discuss whether the utility should perform a feasibility study or proceed directly to a system impact study, or a facilities study, or an interconnection agreement the studies and the cost responsibilities for the studies. If the parties agree that a feasibility study should be performed, the utility shall provide the interconnection customer, as soon as possible, but not later than five business days after the scoping meeting, a feasibility study agreement including an outline of the scope of the study and a nonbinding good faith estimate of the cost to perform the study.

3. The scoping meeting may be omitted by mutual agreement. In order to remain in consideration for interconnection, an interconnection customer who has requested a feasibility study must return the executed feasibility study agreement within 15 business days. If the parties agree not to perform a feasibility study, the utility shall provide the interconnection customer, no later than five business days after the scoping meeting, a system impact study agreement including an outline of the scope of the study and a nonbinding good faith estimate of the cost to perform the study.

C. Feasibility study.

1. If the parties agree that a feasibility study should be performed, the utility shall provide the IC with a feasibility study agreement, including an outline of the scope of the feasibility study and an estimate of the cost to perform the study no later than five business days after the scoping meeting or five business days after the decision is made to not have a scoping meeting [ and otherwise pursuant to subsection D of this section ].

If the parties agree to not perform a feasibility study, the utility shall provide the IC a system impact study agreement including an outline of the scope of the study and an estimate of the cost to perform the study no later than five business days after the scoping meeting, or five business days after the decision is made to not have a scoping meeting.

2. To maintain its position in the utility's interconnection queue, the IC must execute the feasibility study agreement and return it to the utility along with the deposit for the feasibility study within 15 business days after receipt of the agreement. If the IC fails to return the executed feasibility study agreement along with the deposit within 15 business days after receipt of the agreement, the interconnection request shall be deemed withdrawn and the interconnection request shall lose its place in the utility's interconnection queue.

1. 3. A feasibility study shall identify any potential adverse system impacts that would result from the interconnection of the small generating facility SGF.

2. 4. A deposit of the lesser of no more than 50% of the good faith estimated feasibility study costs or earnest money of $1,000 may be required from the interconnection customer.

a. Any study fees Study costs shall be based on the distribution company's utility's actual incremental costs and will be invoiced to the interconnection customer IC after the study is completed and delivered and will include a summary of professional time.

b. The interconnection customer must IC shall pay any study costs that exceed the deposit without interest within 30 calendar days on receipt of the invoice or resolution of any dispute. If the deposit exceeds the invoiced fees, the distribution company utility shall refund such excess within 30 calendar days of the invoice without interest.

3. 5. The feasibility study shall be based on the technical information provided by the interconnection customer IC in the interconnection request Interconnection Request Form, as may be modified as the result of the scoping meeting. The distribution company utility reserves the right to request additional technical information from the interconnection customer IC as may reasonably become necessary consistent with Good Utility Practice during the course of the feasibility study and as designated in accordance with the standard small generator interconnection procedures. All modification made to the interconnection request shall be made in writing to the utility. If the interconnection customer modifies its interconnection request, the time to complete the feasibility study may be extended by agreement of the parties.

4. 6. In performing the feasibility study, the distribution company utility shall rely, to the extent reasonably practicable, on recent studies. The interconnection customer IC shall not be charged for such existing studies; however, the interconnection customer IC shall be responsible for charges associated with any new study or modifications to existing studies that are reasonably necessary to perform the feasibility study.

5. 7. The feasibility study report shall provide the following analyses for the purpose of identifying any potential adverse system impacts that would result from the interconnection of the small generating facility as proposed SGF:

a. Initial identification of any circuit breaker short circuit capability limits exceeded as a result of the interconnection;

b. Initial identification of any thermal overload or voltage limit violations resulting from the interconnection;

c. Initial review of grounding requirements and electric system protection; and

d. Description and nonbonding estimated cost of facilities and estimated construction time required to interconnect the proposed small generating facility SGF and to address the identified short circuit and power flow issues.

6. 8. The feasibility study shall model the impact of the small generating facility regardless of purpose SGF for all purposes identified in the Interconnection Request Form in order to avoid the further expense and interruption of operation for reexamination of feasibility and impacts if the interconnection customer IC later changes the purpose for which the small generating facility SGF is being installed.

7. 9. The feasibility study shall include the feasibility of any interconnection at a proposed project site where there could be multiple all potential points of interconnection, as requested by the interconnection customer IC and at the interconnection customer's IC's cost.

8. Once the feasibility study is completed, a 10. A feasibility study report shall be prepared and transmitted to the interconnection customer. Barring unusual circumstances, the feasibility study must be completed and the feasibility study report transmitted IC within 30 business days of the interconnection customer's agreement to conduct a feasibility study utility's receipt of the complete executed feasibility study agreement and required deposit.

9. 11. If the feasibility study shows no potential for adverse system impacts, then within five business days the utility shall send the interconnection customer IC either an executable Small Generator Interconnection Agreement (Schedule 5, 20VAC5-314-170) or a facilities study agreement, including an outline of the scope of the study and a nonbinding good faith an estimate of the cost to perform the study.

10. 12. If the feasibility study shows the potential for adverse system impacts, the review process shall proceed to the appropriate system impact study or studies.

D. System impact study.

1. No later than five business days after the parties agree that a system impact study should be performed, the utility shall provide the IC a system impact study agreement including an outline of the scope of the system impact study and an estimate of the cost to perform the study.

2. To maintain its position in the utility's interconnection queue, the IC must execute the system impact study agreement and return it to the utility along with the deposit for the system impact study within 15 business days after receipt of the agreement. If the IC fails to return the executed system impact study agreement along with the deposit within 15 business days after receipt of the agreement, the interconnection request shall be deemed withdrawn and the interconnection request shall lose its place in the utility's interconnection queue.

3. A deposit equal to the estimated cost of a system impact study may be required from the IC.

a. Study cost shall be the utility's actual incremental costs and will be invoiced to the IC after the study is completed and delivered and will include a summary of professional time.

b. The IC shall pay any study costs that exceed the deposit within 30 calendar days on receipt of the invoice or resolution of any dispute. If the deposit exceeds the invoiced fees, the utility shall refund the excess within 30 calendar days of the invoice without interest.

1. 4. A system impact study shall identify and detail the electric system impacts that would result if the proposed small generating facility SGF were interconnected without project modifications or electric system modifications, focusing on the adverse electric system impacts identified in the feasibility study, or to study potential impacts, including but not limited to those identified in the scoping meeting. A system impact study shall evaluate the impact of the proposed interconnection on the reliability of the electric system.

2. 5. A system impact study will be based upon the results of the feasibility study and the technical information provided by the interconnection customer in the interconnection request. The distribution company utility reserves the right to request additional technical information from the interconnection customer IC as may reasonably become necessary consistent with Good Utility Practice during the course of the system impact study. If the interconnection customer IC modifies its designated point of interconnection, or interconnection request, or the technical information provided therein is modified, the time to complete the system impact study may be extended.

3. 6. A system impact study shall consist of a study of the potentially impacted transmission and distribution systems, a short circuit analysis, a stability analysis, a power flow analysis, voltage drop and flicker studies, protection and set point coordination studies, and grounding reviews, distribution load flow study, analysis of equipment interrupting ratings, protection coordination study, and impacts on electric system operation, as necessary. A system impact study shall state the assumptions upon which it is based, state the results of the analyses, and provide the requirement or potential impediments to providing the requested interconnection service, including a preliminary indication of the cost and length of time that would be necessary to correct any problems identified in those analyses and implement the interconnection. A system impact study shall provide a list of facilities and modifications that are would be required as a result of the interconnection request and nonbinding good faith along with estimates of cost responsibility and time to construct. If arranged with the utility prior to the utility preparing the system impact study agreement, the system impact study may, at the IC's cost, include one or more alternatives to the point of interconnection; however, such alternative points must be on the same distribution circuit as the point of interconnection the IC specified as the proposed point of interconnection.

4. A distribution system impact study shall incorporate a distribution load flow study, an analysis of equipment interrupting ratings, protection coordination study, voltage drop and flicker studies, protection and set point coordination studies, grounding reviews, and the impact on electric system operation, as necessary.

5. 7. Affected systems may participate in the preparation of a system impact study, with a division of costs among such entities as they may agree. All affected systems shall be afforded an opportunity to review and comment upon a system impact study that covers potential adverse system impacts on their electric systems, and the distribution company utility has 20 additional business days to complete a system impact study requiring review by affected systems.

6. 8. If the utility uses a queuing procedure for sorting or prioritizing projects and their associated cost responsibilities for any required network upgrades, the system impact study shall consider all generating facilities (and with respect to clause iii below, any identified upgrades associated with such higher queued interconnection) that, on the date the system impact study is commenced are: (i) directly interconnected with the distribution company's electric utility system; or (ii) interconnected with affected systems and may have an impact on the proposed interconnection; and (iii) have a pending higher queued interconnection request to interconnect with the utility's electric utility system.

7. 9. A distribution system impact study, if required, shall be completed and the results transmitted to the interconnection customer IC within 30 45 business days after an agreement is signed by the parties. A transmission system impact study, if required, shall be completed and the results transmitted to the interconnection customer within 45 business days after an agreement is signed by the parties, or in accordance with the utility's queuing procedures.

8. A deposit of the equivalent of the good faith estimated cost of a distribution system impact study and one-half of the good faith estimated cost of a transmission system impact study may be required from the interconnection customer.

9. Any study fees shall be based on the utility's actual costs and will be invoiced to the interconnection customer after the study is completed and delivered and will include a summary of professional time.

10. The interconnection customer shall pay any study costs that exceed the deposit within 30 calendar days on receipt of the invoice or resolution of any dispute. If the deposit exceeds the invoiced fees, the utility shall refund such excess within 30 calendar days of the invoice. Interest shall not apply.

11. If no transmission system impact study is required, adverse distribution system impacts are identified in the scoping meeting or shown in the feasibility study, a distribution system impact study shall be performed. The utility shall send the interconnection customer a distribution system impact study agreement within 15 business days of transmittal of the feasibility study report, including an outline of the scope of the study and a nonbinding good faith estimate of the cost to perform the study, or following the scoping meeting if no feasibility study is to be performed.

12. In instances where the feasibility study or the distribution system impact study shows potential for transmission system adverse system impacts, within five business days following transmittal of the feasibility study report, the utility shall send the interconnection customer a transmission system impact study agreement, including an outline of the scope of the study and a nonbinding good faith estimate of the cost to perform the study, if such a study is required.

13. If a transmission system impact study is not required, but adverse distribution system impacts are shown by the feasibility study to be possible and no distribution system impact study has been conducted, the utility shall send the interconnection customer a distribution system impact study agreement.

14. If the feasibility study shows no potential for transmission system or distribution system adverse impacts, the utility shall send the interconnection customer either an executable Small Generator Interconnection Agreement (SGIA) included in this chapter as Schedule 5 in 20VAC5-314-170, or a facilities study agreement, including an outline of the scope of the study and a nonbinding good faith estimate of the cost to perform the study, as applicable.

15. In order to remain under consideration for interconnection, the interconnection customer shall return executed system impact study agreements, if applicable, within 30 business days.

10. If the system impact study shows that facility modifications are needed to accommodate the SGF, then within five business days following transmittal of the system impact study report, the utility shall send the IC a facilities study agreement, including an outline of the scope of the study and an estimate of the cost to perform the study.

E. Facilities study.

1. Once the required system impact study (or studies) is completed, a system impact study report shall be prepared and transmitted to the interconnection customer along with a facilities study agreement within five business days, including an outline of the scope of the study and a nonbinding good faith estimate of the cost to perform the facilities study. In the case where one or both impact studies are determined to be unnecessary, a notice of the fact shall be transmitted to the interconnection customer within the same timeframe. The facilities study shall specify and estimate the cost of the equipment, engineering, procurement, and construction work needed to implement the conclusion of the feasibility and/or system impact study and to allow SGF to be interconnected and operate safely and reliably.

2. In order to remain under consideration for interconnection, or, as appropriate, in the utility's interconnection queue, the interconnection customer shall provide the following information, or a request for an extension of time within 30 business days, and the facilities study shall be based on the responses of the IC to the following queries:

a. Provide a location plan and simplified one-line diagram of the plant and station facilities. For staged projects, please indicate future generation, transmission circuits, etc. On the one-line diagram, indicate the generation capacity attached at each metering location. (Maximum load on CT (current transformer)/PT (partial transformer) On the one-line diagram, indicate the location of auxiliary power. (Minimum load on CT/PT) Amps

b. One set of metering is required for each generation connection to the new ring bus or existing distribution company station.

Number of generation connections: _____________________

c. Will an alternate source of auxiliary power be available during CT/PT maintenance?

Yes ___________ No ___________

d. Will a transfer bus on the generation side of the metering require that each meter set be designed for the total plant generation?

Yes ___________ No ___________ (Please indicate on the one-line diagram).

e. What type of control system or Programmable Logic Controller (PLC) will be located at the small generating facility?

______________________________________________

f. What protocol does the control system or PLC use?

______________________________________________

g. Provide a 7.5-minute quadrangle map of the site. Indicate the plant, station, transmission line, and property lines.

h. Physical dimensions of the proposed interconnection station: ______________________________________________

i. Bus length from generation to interconnection station: ______________________________

j. Line length from interconnection station to utility's transmission system. ________________________________________

k. Tower number observed in the field. (Painted on tower leg)*: ______________________________________________

l. Number of third party easements required for transmission lines*: _____________________________________________

*To be completed in coordination with distribution company.

m. Is the small generating facility located in utility's service area?Yes ___________ No___________;

If No, please provide name of local provider:

______________________________________________

n. Please provide the following proposed schedule dates:

Begin Construction Date:____________________________

Generator step-up transformers receive back feed power date: ___________________

Generation Testing Date:____________________________

Commercial Operation Date:_________________________

3. The facilities study shall specify and estimate the cost of the equipment, engineering, procurement, and construction work (including overheads) needed to implement the conclusions of the system impact study or studies.

4. A deposit of the good faith estimated facilities study costs may be required from the interconnection customer.

5. Any study fees shall be based on the distribution company's actual costs and will be invoiced to the interconnection customer after the study is completed and delivered and will include a summary of professional time.

6. The interconnection customer shall pay any study costs that exceed the deposit within 30 calendar days on receipt of the invoice or resolution of any dispute. If the deposit exceeds the invoiced fees, the distribution company shall refund such excess within 30 calendar days of the invoice. Interest shall not apply.

2. To maintain its position in the utility's interconnection queue, the IC must execute the facilities study agreement and return it to the utility along with a completed Facilities Study Information Form (Schedule 5, 20VAC5-314-170) and deposit for the facilities study within 30 business days after receipt of the agreement, unless an extension has been agreed to with the utility. Otherwise, the interconnection request shall be deemed withdrawn and the interconnection request shall lose its place in the utility's interconnection queue.

3. A deposit equal to the estimated cost of a facilities study may be required from the IC.

a. Study cost shall be the utility's actual incremental costs and will be invoiced to the IC after the study is completed and delivered and will include a summary of professional time.

b. The IC shall pay any study costs that exceed the deposit within 30 calendar days after receipt of the invoice or resolution of any dispute. If the deposit exceeds the invoiced fees, the utility shall refund the excess within 30 calendar days of the invoice without interest.

7. 4. Design for any required customer's interconnection facilities, attachment facilities, and/or upgrades shall be performed under the facilities study agreement. The utility may contract with consultants to perform activities required under the facilities study agreement. The interconnection customer IC and the utility may agree to allow the interconnection customer IC to separately arrange for the design of some of the customer's interconnection facilities. In such cases, facilities design will be reviewed and/or modified prior to acceptance by the utility, under the provisions of the facilities study agreement. If the parties agree to separately arrange for design and construction, and provided security and confidentiality requirements can be met, the utility shall make sufficient information available to the interconnection customer IC in accordance with confidentiality and critical infrastructure requirements, to permit the interconnection customer IC to obtain an independent design and cost estimate for any necessary facilities.

8. 5. The facilities study shall specify and estimate the cost of the equipment, engineering, procurement and construction work (including overheads) needed to implement the conclusions of the system impact study or studies. The facilities study shall also identify (i) the electrical switching configuration of the equipment, including, without limitation, transformer, switchgear, meters, and other station equipment, (ii) the nature and estimated cost of the utility's interconnection attachment facilities and distribution upgrades necessary to accomplish the interconnection, and (iii) an estimate of the time required to complete the construction and installation of such facilities.

9. 6. The utility may propose to group facilities required for more than one interconnection customer IC in order to minimize facilities costs through economies of scale, but any interconnection customer IC may require the installation of facilities required for its own small generating facility if it is willing to pay pays the costs of those facilities.

10. Once the facilities study is completed, a facilities study report shall be prepared and transmitted to the interconnection customer. Barring unusual circumstances, the facilities study must be completed and the facilities study report transmitted within 30 business days of the interconnection customer's agreement to conduct a facilities study 11. In cases where upgrades are required, the facilities study must be completed within 45 business days of the receipt of this facilities study agreement. In cases where no upgrades are necessary, and the required facilities are limited to interconnection facilities, the facilities study must be completed within 30 business days.

7. In cases where system upgrades are required, the utility shall transmit the facilities study report within 45 business days after receipt of the complete facilities study agreement, Facilities Study Information Form, and the deposit. In cases where no system upgrades are necessary, and the required facilities are limited to customer's interconnection facilities and attachment facilities only, the utility shall transmit the facilities study report within 30 business days after receipt of the complete facilities study agreement, Facilities Study Information Form and the deposit.

F. Interconnection agreement Small Generator Interconnection Agreement.

1. Upon completion of the facilities study, and with the agreement of the interconnection customer to pay for interconnection facilities and upgrades identified in the facilities study, the utility shall provide the interconnection customer an executable SGIA within five business days Within five business days after transmittal of the final study (i.e. the facilities study, or if applicable, a combined study that satisfies all study requirements), the utility shall provide the interconnection customer an executable SGIA (Schedule 6, 20VAC5-314-170).

2. After receiving an interconnection agreement the SGIA from the utility, the interconnection customer IC shall have 30 business days or another mutually agreeable time frame deadline, to sign and return the interconnection agreement, or request that the utility file an unexecuted interconnection agreement with the commission SGIA. If the interconnection customer IC does not sign return the interconnection agreement, or ask that it be filed unexecuted by the utility within 30 business days SGIA within the deadline, the interconnection request shall be deemed withdrawn and the IC shall lose its place in the utility's queue. After the interconnection agreement SGIA is signed by the parties, the interconnection of the small generating facility SGF shall proceed under the provisions of the SGIA.

20VAC5-314-80. Interconnection metering.

Any metering [ , including telemetering, ] necessitated by the use of the small generating facility [ and any additional utility metering requested by the interconnection customer and agreed to by the utility ] shall be [ installed provided by the utility ] at the [ interconnection customer's IC's ] expense in accordance with commission requirements or the utility's specifications. [ The IC shall be responsible for the utility's reasonable and necessary cost for the purchase, installation, operation, maintenance, testing, repair, and replacement of metering and telemetering equipment. ]

20VAC5-314-90. Commissioning tests.

Commissioning tests of the interconnection customer's installed equipment shall be performed pursuant to applicable codes and standards, including IEEE 1547.1 2005 "IEEE Standard Conformance Test Procedures for Equipment Interconnecting Distributed Resources with Electric Power Systems." The utility shall be given at least five business days written notice, or notice as otherwise mutually agreed to by the parties, of the tests and may the utility shall be allowed to be present to witness the commissioning tests. The utility shall not be compensated by the interconnection customer IC for its expense in witnessing Level 2 and Level 3 commissioning tests.

20VAC5-314-100. Disputes.

A. The parties agree to attempt to resolve all disputes arising out of the interconnection process according to the provisions of this section.

B. In the event of a dispute, either party shall provide the other party with a written notice of dispute. The notice shall describe in detail the nature of the dispute. If the dispute has not been resolved within five business days after receipt of the notice, either party may contact a mutually agreed upon third party dispute resolution service for assistance in resolving the dispute The parties shall make a good faith effort to resolve the dispute informally within 10 business days.

C. If the dispute has not been resolved within 10 business days after receipt of the notice, either party may seek resolution assistance from the commission’s Division of Energy Regulation where the matter will be handled as an informal complaint. [ If that process is unsatisfactory, either party may petition the commission to handle the dispute as a formal complaint. ]

Alternatively, the parties may [ , upon mutual agreement, ] seek resolution through the assistance of a dispute resolution service. The dispute resolution service will assist the parties in either resolving the dispute or in selecting an appropriate dispute resolution venue (e.g., mediation, settlement judge, early neutral evaluation, or technical expert) to assist the parties in resolving their dispute. Each party [ agrees to shall ] conduct all negotiations in good faith and [ will shall ] be responsible for [ one half one-half ] of any costs paid to neutral third parties.

D. Each party agrees to conduct all negotiations in good faith and will be responsible for 1/2 of any costs paid to neutral third parties.

E. D. If neither party elects to seek assistance from the dispute resolution service, or if the [ attempted dispute resolution fails to satisfy one or both of the parties, then the dispute remains unresolved ] either party may [ petition the commission to handle the dispute as a formal complaint or may ] exercise whatever rights and remedies it may have in equity or law [ consistent with the terms of the ] agreements between the parties or it may seek resolution at the commission [ agreement ].

20VAC5-314-110. Confidential information.

A. Confidential information shall mean any confidential and/or proprietary information provided by one party to the other party that is clearly marked or otherwise designated "Confidential." All design, operating specifications, and metering data provided by the interconnection customer IC shall be deemed confidential information regardless of whether it is clearly marked or otherwise designated as such.

B. Confidential information does not include information previously in the public domain, required to be publicly submitted or divulged by governmental authorities (after notice to the other party and after exhausting any opportunity to oppose such publication or release), or necessary to be divulged in an action to enforce an agreement between the parties. Each party receiving confidential information shall hold such information in confidence and shall not disclose it to any third party nor to the public without the prior written authorization from the party providing that information, except to fulfill obligations under agreements between the parties, or to fulfill legal or regulatory requirements.

1. Each party shall employ at least the same standard of care to protect confidential information obtained from the other party as it employs to protect its own confidential information.

2. Each party is entitled to equitable relief, by injunction or otherwise, to enforce its rights under this section to prevent the release of confidential information without bond or proof of damages, and may seek other remedies available at law or in equity for breach of this provision.

C. Notwithstanding anything in this chapter to the contrary, if the commission, during the course of an investigation or otherwise, requests information from one of the parties that is otherwise required to be maintained in confidence, the party shall provide the requested information to the commission, within the time provided for in the request for information. In providing the information to the commission, the party may request that the information be treated as confidential and nonpublic by the commission and that the information be withheld from public disclosure. Parties are prohibited from notifying the other party prior to the release of the confidential information to the commission. The party shall notify the other party when it is notified by the commission that a request to release confidential information has been received by the commission, at which time either of the parties may respond before such information would be made public. [ A party shall notify the other party when it is notified by the commission that a request to release confidential information has been received by the commission, at which time either party may respond to the commission before such information would be made public. ]

20VAC5-314-120. Comparability Equal treatment.

The utility shall receive, process, and analyze all interconnection requests in a timely manner as set forth in this chapter. The utility shall use the same reasonable efforts in processing and analyzing interconnection requests from all Interconnection customers, whether the small generating facility SGF is owned or operated by the utility, its subsidiaries or affiliates, or others.

20VAC5-314-130. Record retention.

The utility shall maintain, subject to audit, records for three years of (i) all interconnection requests received pursuant to this chapter, (ii) the times required to complete interconnection request approvals and disapprovals, and (iii) justification for the actions taken on the interconnection requests.

20VAC5-314-140. Coordination with affected systems.

The utility shall coordinate the conduct of any studies required to determine the impact of the interconnection request small generating facility on affected systems with affected system operators and, if possible, include those results (if available) in its applicable interconnection study studies within the time frame specified in this chapter. The utility will include such affected system operators in all meetings held with the interconnection customer IC as required by this chapter. The interconnection customer IC shall cooperate with the utility in all matters related to the conduct of studies and the determination of modifications to affected systems. A utility which that may be an affected system shall cooperate with the utility with whom which interconnection has been requested in all matters related to the conduct of studies and the determination of modifications to affected systems. The utility owning or operating the system to which the IC desires to interconnect shall not be held responsible or liable for any delays in the interconnection process attributable to the lack of information or cooperation from the owners or operators of affected systems.

20VAC5-314-150. Capacity of the small generating facility.

A. If the interconnection request is for an increase in capacity for an existing small generating facility, the interconnection request shall be evaluated on the basis of the new total capacity of the small generating facility SGF.

B. If the interconnection request is for a small generating facility SGF that includes multiple energy production devices at a site for which the interconnection customer seeks a single point of interconnection, the interconnection request shall be evaluated on the basis of the aggregate capacity of the multiple devices.

C. The interconnection request shall be evaluated using the maximum rated capacity of the small generating facility SGF.

20VAC5-314-160. Insurance.

A. For systems of 500 kW or less a small generating facility with a rated capacity not exceeding 10 kW, the IC, at its own expense, shall secure and maintain in effect during the term of the agreement liability insurance with a combined single limit for bodily injury and property damage of not less than $300,000 $100,000 for each occurrence.

For an SGF with a rated capacity exceeding 10 kW but not exceeding 500 kW, the IC, at its own expense, shall secure and maintain in effect during the term of the agreement liability insurance with a combined single limit for bodily injury and property damage of not less than $300,000 for each occurrence.

For systems greater than an SGF with a rated capacity exceeding 500 kW but smaller than not exceeding 2 MW, the IC, at its own expense, shall secure and maintain in effect during the term of the agreement liability insurance with a combined single limit for bodily injury and property damage of not less than $2 million for each occurrence. Insurance coverage for systems greater than an SGF with a rated capacity exceeding 2 MW shall be determined on a case-by-case basis by the utility and shall reflect the size of the installation and the potential for system damage.

[ B. Except for those photovoltaic inverter-based systems installed on a residential premise that have a design rated capacity of 500 kW or less, the utility shall be named as an additional insured by endorsement to the insurance policy and the policy shall provide that written notice be given to the utility at least 30 days prior to any cancellation or reduction of any coverage. Such liability insurance shall provide, by endorsement to the policy, that the utility shall not by reason of its inclusion as an additional insured incur liability to the insurance carrier for the payment of premium of such insurance. For all photovoltaic inverter-based systems, the liability insurance shall not exclude coverage for any incident related to the subject generator or its operation.

C. B. ] Certificates of insurance evidencing the requisite coverage and provision shall be furnished to a the utility prior to the date of interconnection of the small generating facility SGF. Utilities The utility shall be permitted to periodically obtain proof of current insurance coverage [ form from ] the producer IC in order to verify continuing proper liability insurance coverage. The IC will not be allowed to commence or continue interconnected operations unless evidence is provided that satisfactory required insurance coverage is in effect at all times.

20VAC5-314-170. Schedules for Chapter 314.

The following schedules shall be used in the administration of this chapter.

Schedule 1

LEVEL 1 INTERCONNECTION REQUEST FORM FOR SMALL GENERATING FACILITY LESS THAN NOT EXCEEDING 500 kW

PURSUANT TO 20VAC5-314-40 OF THE COMMISSION'S REGULATIONS GOVERNING INTERCONNECTION OF SMALL [ ELECTRIC ELECTRICAL ] GENERATORS, APPLICANT HEREBY GIVES NOTICE OF INTENT TO OPERATE A GENERATING FACILITY.

Section 1. Applicant Interconnection Customer Information

Name:___________________________________________________________

Mailing Address:___________________________________________________

City: ____________________________State: _____________ Zip Code:_____

City, State, Zip:_____________________________________________________

Street Address:____________________________________________________

City: ____________________________State: _____________ Zip Code: _____

City, State, Zip:____________________________________________________

Phone Number(s):__________________________________________________

Fax Number:______________________ Email Address:__________________

Facility location (if different from above): _________________________________

Distribution Company Utility: __________________________________________

Distribution Company Utility Account Number:_____________________________

[ Energy Competitive ] Service Provider (ESP) (if different than electric distribution company):________________________________

ESP [ CSP ] Account Number (if applicable):_____________________________

Proposed Interconnection Date:_______________________________________

Section 2. Processing Fee [ or Deposit ]

The nonrefundable processing fee payable to the utility is $100.

Section 2. 3. Small Generating Facility Information

Facility owner and/or Operator name (if different from Applicant): _____________

SGF owner:_____________________________________________________

SGF operator:___________________________________________________

Business relationship to applicant:____________________________________

Mailing address:__________________________________________________

City: _____________________________State: ____________ Zip Code: ____

City, State, Zip:__________________________________________________

Street SGF Address: _______________________________________________

City: _____________________________State: ____________ Zip Code: ____

City, State, Zip:__________________________________________________

Phone Number(s):________________________________________________

Fax Number:_________________________ Email Address:______________

Fuel Type:______________________________________________________

Generator Manufacturer and Model:___________________________________

Rated Capacity in kilowatts: AC:_________________________ DC:________

Inverter Manufacturer and Model:_____________________________________

Battery Backup (circle one): Yes_____ No_____

[ Facility schematic and equipment layout must be attached to this form. ]

Section 3 4. Information for Generators with an AC capacity in excess of 25 kilowatts kW
Is the proposed generator inverter based? Yes ____ No ____
Generator Type (circle one): Inverter	Induction	Synchronous
Frequency: ____________ Hz; Number of phases (circle one): One___			Three___
Rated Capacity: DC _________ [ W kW ]; AC apparent ___________ [ KVA kVA ]; AC real _________ [ W kW ];
Power factor ____________%; AC voltage _________; AC amperage___________
Facility schematic and equipment layout must be attached to this form.

Section 4. 5. Vendor Certification

The system hardware SGF equipment is listed by Underwriters Laboratories to be in compliance with UL-1741.

Signed (Vendor):____________________________________ Date:_________

Name (printed):___________________________________________________

Company:_______________________________________________________

Phone Number:___________________________________________________

Mailing Address:__________________________________________________

City: __________________________ State: _____________ Zip Code: ______

City, State, Zip:_____________________________________________________

Section 5 6. Electrician Certification

The system generator equipment has been installed in accordance with the manufacturer's specifications as well as all applicable provisions of the National Electrical Code.

Signed (Licensed Electrician):__________________________ Date:_________

Name (printed):___________________________________________________

License Number:__________________________ Phone Number:___________

Mailing Address:__________________________________________________

City: ___________________________ State: _____________ Zip Code: _____

City, State, Zip:____________________________________________________

Utility signature signifies only receipt of this form, in compliance with the State Corporation Commission's net energy metering regulations, 20 VAC 5-315-30.

Signed (Utility Representative): _________________________ Date: ________

Section 7. Applicant Signature

I hereby certify that, to the best of my knowledge, all of the information provided in this Request Form is true and correct.

Signature of Applicant:___________________________________________

Date:________________________

Section 8. Utility Acknowledgement of Receipt

Signed:_______________________________________________________

Title:_________________________________________________________

Utility:________________________________________________________

Date:______________________________

Utility signature signifies only receipt of this form, in compliance with 20VAC5-314-40, the State Corporation Commission's Regulations Governing Interconnection of Small Electrical Generators.

Schedule 2

Certification of Small Generator Equipment Packages

Small generating facility equipment proposed for use separately or packaged with other equipment in an interconnection system shall be considered certified for interconnected operation if (i) it has been tested in accordance with industry standards for continuous utility interactive operation in compliance with the appropriate codes and standards referenced below by any Nationally Recognized Testing Laboratory (NRTL) recognized by the United States Occupational Safety and Health Administration to test and certify interconnection equipment pursuant to the relevant codes and standards listed in SGIP Schedule 3, (ii) it has been labeled and is publicly listed by such NRTL at the time of the interconnection application, and (iii) such NRTL makes readily available for verification all test standards and procedures it utilized in performing such equipment certification, and, with consumer approval, the test data itself. The NRTL may make such information available on its website and by encouraging such information to be included in the manufacturer's literature accompanying the equipment.

The interconnection customer must verify that the intended use of the equipment falls within the use or uses for which the equipment was tested, labeled, and listed by the NRTL.

Certified equipment shall not require further type-test review, testing, or additional equipment to meet the requirements of this interconnection procedure; however, nothing herein shall preclude the need for an on-site commissioning test by the parties to the interconnection nor follow up production testing by the NRTL.

If the certified equipment package includes only interface components (switchgear, inverters, or other interface devices), then an interconnection customer IC must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and is consistent with the testing and listing specified for this type of interconnection equipment.

Provided the generator or electric source, when combined with the equipment package, is within the range of capabilities for which it was tested by the NRTL, and does not violate the interface components' labeling and listing performed by the NRTL, no further design review, testing or additional equipment on the customer side of the point of common coupling interconnection shall be required to meet the requirements of this interconnection procedure.

An equipment package does not include equipment provided by the utility.

Schedule 3

Certification Codes and Standards

IEEE [ Std ] 1547 Standard for Interconnecting Distributed Resources with Electric Power Systems (including use of IEEE [ Std ] 1547.1 testing protocols to establish conformity)

UL 1741 Inverters, Converters, and Controllers for Use in Independent Power Systems

IEEE Std 929-2000 IEEE Recommended Practice for Utility Interface of Photovoltaic (PV) Systems

NFPA 70 (2005), National Electrical Code

IEEE Std C37.90.1-1989 (R1994), IEEE Standard Surge Withstand Capability (SWC) Tests for Protective Relays and Relay Systems

IEEE Std C37.90.2 (1995), IEEE Standard Withstand Capability of Relay Systems to Radiated Electromagnetic Interference from Transceivers

IEEE Std C37.108-1989 (R2002), IEEE Guide for the Protection of Network Transformers

IEEE Std C57.12.44-2000, IEEE Standard Requirements for Secondary Network Protectors

IEEE Std C62.41.2-2002, IEEE Recommended Practice on Characterization of Surges in Low Voltage (1000V and Less) AC Power Circuits

IEEE Std C62.45-1992 (R2002), IEEE Recommended Practice on Surge Testing for Equipment Connected to Low-Voltage (1000V and Less) AC Power Circuits

ANSI C84.1-1995 Electric Power Systems and Equipment – Voltage Ratings (60 Hertz)

IEEE Std 100-2000, IEEE Standard Dictionary of Electrical and Electronic Terms

NEMA MG 1-1998, Motors and Small Resources, Revision 3

IEEE Std 519-1992, IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems

NEMA MG 1-2003 (Rev 2004), Motors and Generators, Revision 1

Schedule 4

LEVEL LEVELS 2 AND 3 INTERCONNECTION REQUEST FORM FOR SMALL GENERATING FACILITIES FACILITY LESS THAN 20 MW

Distribution Company:________________________________________

Designated Contact Person: ___________________________________

Address: __________________________________________________

Telephone Number: ____________________

Fax:________________________________

E-Mail Address: ____________________________________________

An Interconnection Request is considered complete when it provides all applicable and correct information required below.

Processing Fee or Deposit

If the Interconnection Request is submitted as Level 2, the nonrefundable processing fee payable to the distribution company is $500.

If the interconnection request is submitted as Level 3, the interconnection customer shall submit to the distribution company a deposit not to exceed $1,000 towards the cost of the feasibility study.

Interconnection Customer Information

Legal Name of the Interconnection Customer (or, if an individual, individual's name)

Name:___________________________________________________

Account Number: ___________________________________________

Contact person:_____________________________________________

Mailing Address:___________________________________________

City: State: Zip:____________________________________________

Facility location (if different from above):_________________________

Telephone (Day): _______________ Telephone (Evening): __________

Fax: _________________________ E-Mail Address:______________

Alternative contact information (if different from the interconnection customer)

Contact Name: ____________________________________________

Title: ____________________________________________________

Address:_________________________________________________

________________________________________________________

Telephone (Day): _____________ Telephone (Evening): ____________

Fax: _______________________ E-Mail Address: ________________

Application is for:		New Small Generating Facility
		Capacity addition to Existing Small Generating Facility
If capacity addition to existing facility, please describe: ________________________________________________________
Will the Small Generating Facility be used for any of the following?
	To supply power to the interconnection customer? Yes ___No ___
	To supply power to others? Yes ___ No ___
Contact Name: ___________________________________________
Title: ___________________________________________________
Address: _________________________________________________
Telephone (Day): ______________ Telephone (Evening): __________
Fax: ________________________ E-Mail Address: ______________
Requested point of interconnection: ___________________________
Interconnection customer's requested in-service date: ______________

Section 1. Interconnection Customer Information

Name:_________________________________________________

Contact person:__________________________________________

Mailing address:_________________________________________

[ City: State: Zip City, State, Zip ]:____________________________

Utility and account number:_________________________________

Energy Service Provider and account number:__________________

Facility address:_________________________________________

Telephone (Day):________________ (Evening):________________

Fax:__________________________ E-Mail:__________________

Alternative contact information

Contact Name:__________________________________________

Title:__________________________________________________

Mailing Address:_________________________________________

[ City: State: Zip City, State, Zip ]:____________________________

Telephone (Day):________________ (Evening):________________

Fax:__________________________ E-Mail:___________________

Application is for: New Small Generating Facility ______ Capacity addition ____

If capacity addition to existing facility, please describe:
______________________________________________________

The Small Generating Facility will supply: Interconnection Customer __ others __

Point of Interconnection:____________________________________

Interconnection Customer's requested in-service date:_____________

Section 2. Processing Fee or Deposit

If the Interconnection Request is submitted as Level 2, the nonrefundable processing fee payable to the utility is $500.

If the Interconnection Request is submitted as Level 3, the Interconnection Customer shall submit to the Utility the deposit is $1,000, or 50% of the estimated cost of the Feasibility Study, whichever is less.

Section 3. Small Generating Facility Information

Data apply only to the small generating facility, not the interconnection facilities.
Energy Source: Solar ___ Wind ___ Hydro ___ Hydro Type (e.g. Run-of-River):_________
Diesel ___ Natural Gas ___ Fuel Oil ___ Other (state type) (describe) ______________________________
Prime Mover: Fuel Cell___ Recip Engine___ Gas Turb___ Steam Turb___ Microturbine___ PV___ Other (describe)__________________________
Type of Generator: ____ Synchronous_____Induction_____ Inverter_____
Generator Nameplate Rating: ________kW (Typical) [ ___ ] Generator Nameplate kVAR:______
Interconnection customer or customer-site load: __________kW (if none, so state)
Typical reactive load (if known):_________________
Maximum physical export capability requested: ______________ kW
List components of the small generating facility equipment package that are currently certified:
Equipment Type	Certifying Entity
1.____________________________	1.____________________________
2.____________________________	2.____________________________
3.____________________________	3.____________________________
4.____________________________	4.____________________________
5.____________________________	5.____________________________
Is the prime mover compatible with the certified protective relay package? ____Yes____ No____
Generator (or solar collector)
Manufacturer, model name & number:_______________________________
Version Number:_______________________________________________
Nameplate Output Power Rating in kW: (Summer)_________ (Winter)______
Nameplate Output Power Rating in kVA: (Summer)________ (Winter)______
Individual Generator Power Factor
Rated Power Factor: Leading:_____________ Lagging:________________
Total number of generators in wind farm to be interconnected pursuant to this Interconnection Request: _______ Elevation: Single phase___ Three phase_____
Inverter manufacturer, model name & number (if used):__________________
List of adjustable set points for the protective equipment or software:________
Note: A completed power systems load flow data sheet must be supplied with the Interconnection Request.

Small Generating Facility Characteristic Data (for inverter-based machines)

Max design fault contribution current:______ Instantaneous___ or RMS?_______

Harmonics characteristics:__________________________________________

Start-up requirements:_____________________________________________

Small Generating Facility Characteristic Data (for rotating machines)

RPM Frequency:__________________________________________

(*) Neutral Grounding Resistor (If Applicable):____________________

Synchronous Generators:

Direct Axis Synchronous Reactance, [ Xd X_d ]:_______ P.U.

Direct Axis Transient Reactance, X'_d:___________ P.U.

Direct Axis Subtransient Reactance, X"_d:______________P.U.

Negative Sequence Reactance, X₂:_________ P.U.

Zero Sequence Reactance, X₀:____________ P.U.

KVA Base:__________________________

Field Volts:______________

Field Amperes:______________

Induction Generators:

Motoring Power (kW):______________

I2 2t I²t or K (Heating Time Constant):______________

Rotor Resistance, [ Rr R_r ]:______________

Stator Resistance, [ Rs R_s ]:______________

Stator Reactance, [ Xs X_s ]:______________

Rotor Reactance, [ Xr X_r ]:______________

Magnetizing Reactance, [ Xm X_m ]:______________

Short Circuit Reactance, [ Xd" X_d" ]':______________

Exciting Current:______________

Temperature Rise:______________

Frame Size:______________

Design Letter:______________

Reactive Power Required In Vars (No Load):______________

Reactive Power Required In Vars (Full Load):______________

Total Rotating Inertia, H: _____________ Per Unit on kVA Base base

Excitation and Governor System Data for Synchronous Generators Only [ : ]

Provide appropriate IEEE model block diagram of excitation system, governor system and power system stabilizer (PSS) in accordance with the regional reliability council criteria. A PSS may be determined to be required by applicable studies. A copy of the manufacturer's block diagram may not be substituted.

Section 4. Customer's Interconnection Facilities Information

Will a transformer be used between the generator and the point of common coupling interconnection ? ___ Yes____ No____
Will the transformer be provided by the interconnection customer? ____ Yes____ No____
Transformer Data (If applicable, for interconnection customer-owned transformer):
Is the transformer: ____ single phase_____ three phase?___ Size:_________ kVA_____
Transformer Impedance:_______% on __________kVA Base base
If Three Phase:
Transformer Primary: _____Volts _____Delta _____Wye _____Wye Grounded
Transformer Secondary: __Volts _____Delta _____Wye _____Wye Grounded
Transformer Tertiary: _____Volts _____Delta _____Wye _____Wye Grounded
Transformer Fuse Data (If applicable, for interconnection customer-owned fuse):
(Attach copy of fuse manufacturer's minimum melt and total clearing time-current curves)
Manufacturer:____________ Type:__________ Size:______ Speed:_______
Interconnecting Circuit Breaker (if applicable):
Manufacturer:____________________________ Type:__________
Load Rating (Amps):___ Interrupting Rating (Amps):___ Trip Speed (Cycles):___
Interconnection Protective Relays (If Applicable):
If microprocessor-controlled: Manufacturer:__________________________ Type:____________________ Model No. ___________ Firmware ID:_______ Instruction Book No. _________ List of functions and adjustable setpoints for the protective equipment or software:
Setpoint Function	Minimum	Maximum
1.________________________________	____________	__________
2.________________________________	____________	__________
3.________________________________	____________	__________
4.________________________________	____________	__________
5.________________________________	____________	__________
6.________________________________	____________	__________

If Discrete Components:

(Enclose copy of any proposed time-overcurrent coordination curves)

Manufacturer:___________ Type:_______ Style/Catalog No.:______ Proposed Setting:______

Manufacturer:___________ Type:_______ Style/Catalog No.:______ Proposed Setting:______

Manufacturer:___________ Type:_______ Style/Catalog No.:______ Proposed Setting:______

Manufacturer:___________ Type:_______ Style/Catalog No.:______ Proposed Setting:______

Manufacturer:___________ Type:_______ Style/Catalog No.:______ Proposed Setting:______

Current Transformer Data (If applicable):

(Enclose copy of manufacturer's excitation and ratio correction curves)

Manufacturer:_________________________________________________

Type:_______ Accuracy Class:________ Proposed Ratio Connection:____

Manufacturer:_________________________________________________

Type:_______ Accuracy Class:________ Proposed Ratio Connection:____

Potential Transformer Data (If applicable):

Manufacturer:_________________________________________________

Type:________ Accuracy Class:_______ Proposed Ratio Connection:____

Manufacturer:_________________________________________________

Type:________ Accuracy Class:_______ Proposed Ratio Connection:____

Section 5. General Information

Enclose a copy of the site electrical one-line diagram showing the configuration of all the small generating facility equipment, current and potential circuits, and protection and control schemes.

Enclose a copy of any site documentation that indicates the precise physical location of the proposed small generating facility SGF (e.g., United States Geological Survey (USGS) topographic map or other diagram or documentation).

Proposed Describe the proposed location of the protective interface equipment on the property (include address if different from the interconnection customer's address) [ : ] ____________________________________________________

Enclose a copy of any site documentation that describes and details the operation of the protection and control schemes. Is available documentation enclosed? Yes____ No____

Enclose copies of schematic drawings for all protection and control circuits, relay current circuits, relay potential circuits, and alarm/monitoring circuits (if applicable).

Are schematic drawings enclosed?___ Yes ____ No____

Applicant Section 6. Interconnection Customer Signature

I hereby certify that, to the best of my knowledge, all the information provided in this Interconnection Request is true and correct.

For Interconnection Customer Signature:_____________________________ Date:_____________

Section 7. Utility Acknowledgement of Receipt

Signed:__________________________________

Title:____________________________________

Utility:___________________________________

Date:____________________________________

Utility signature signifies only receipt of this form, in compliance with 20VAC5-314-50 of the State Corporation Commission's Regulations Governing Interconnection of Small Electrical Generators.

Schedule 5

LEVELS 2 AND 3 FACILITIES STUDY INFORMATION FORM FOR SMALL GENERATING FACILITIES LESS THAN 20 MW

1. Provide a location plan and simplified one-line diagram of the plant and station facilities. For staged projects, indicate future generation, future transmission circuits, and other major future facilities. On the one-line diagram, show (i) each generator, its electric connection configuration, and its generation capacity, (ii) the location and capacity of auxiliary power, and (iii) minimum load on CT/PT.

2. One set of metering is required for each generation connection to the new ring bus or existing utility station. Indicate the number of generation connections requiring a metering set:_____________________

3. Indicate whether an alternate source of auxiliary power will be available during CT/PT maintenance. Yes ____ No ____

4. Indicate whether a transfer bus on the generation side of the metering will require that each meter set be designed for the total plant generation. Indicate such on the one-line diagram. [ Yes ________ No _____ ]

5. State the type of control system or Programmable Logic Controller (PLC) that will be located at the small generating facility.

______________________________________________________________________________________________________

6. State the protocol used by the control system or PLC. _____________________________________________________________________

7. [ Describe the operation sequence and timing of the protection scheme during disconnection and reconnection to the utility by the SGF.

8. ] Provide a 7.5-minute quadrangle map of the site. Indicate the plant, station, transmission line, and property lines.

[ 8. 9. ] State the physical dimensions of the proposed interconnection station.

______________________________________________________________________________________________________

[ 9. 10. ] State the bus length from generation to interconnection station.

______________________________________________________________________________________________________

[ 10. 11. ] Provide a diagram or description of the point of interconnection desired by the IC that is to be the point of interconnection in the system impact study report.

[ 11. 12. ] State the line length from interconnection station to utility system.

______________________________________________________________________________________________________

[ 12. 13. ] State the pole or tower number observed in the field affixed to the pole or tower leg. _________________________________________

[ 13. 14. ] State the number of third party easements required for distribution or transmission lines.

______________________________________________________________________________________________________

[ 14. 15. ] Provide the following proposed schedule dates:

a. Date IC to begin construction:_________________________________________________

b. Date generator step-up transformers to receive back feed power:______________________

c. Date IC will test SGF:_______________________________________________________

d. Date IC will place SGF into commercial operation:_________________________________

Schedule 5 6

[ LEVEL 3 ] SMALL GENERATOR INTERCONNECTION AGREEMENT (SGIA)
(For Small Generating Facilities Subject to the Level 3 Process)

This Small Generator Interconnection Agreement ("Agreement") is made and entered into this ______ day of ____________, 20__, by __________________ ("Distribution Company Utility"), and _________________________________ ("Interconnection Customer") each hereinafter sometimes referred to individually as "Party" or both referred to collectively as the "Parties."

Distribution Company Utility Information

Distribution Company Utility:_________________________________________

Attention:_______________________________________________________

Address:_______________________________________________________

City: ________________________ State: ________________ Zip: _________

City, State, Zip:__________________________________________________

Phone:_____________________ Fax:_______________________________

Interconnection Customer Information

Interconnection Customer:__________________________________________

Attention:_______________________________________________________

Address:_______________________________________________________

City: _________________________ State: _______________ Zip: _________

City, State, Zip:__________________________________________________

Phone:_______________________ Fax:_____________________________

Interconnection Customer Application No:_____________

In consideration of the mutual covenants set forth herein, the Parties agree as follows:

Article 1. Scope and Limitations of Agreement

1.1 This Agreement shall be used for all Interconnection Requests [ for generators in excess of 500 kW ] submitted [ under the ] Small Generator Interconnection Procedures (SGIP) [ Level 3 interconnections ] pursuant to the Commission's Regulations Governing Interconnection of Small Electrical Generators, Chapter 314 of the Virginia Administrative Code.

1.2 This Agreement governs the terms and conditions under which the Interconnection Customer's ("IC") Small Generating Facility ("SGF") will interconnect with, and operate in parallel with, the utility's distribution utility system.

1.3 This Agreement does not constitute an agreement to purchase or deliver the Interconnection Customer's power. The purchase or delivery of power and other services, including station service or backup power, that the Interconnection Customer IC may require will be covered under separate agreements, possibly with other parties. The Interconnection Customer IC will be responsible for separately making all necessary arrangements (including scheduling) for delivery of electricity with the applicable Distribution Company utility and provider of transmission service.

1.4 Nothing in this Agreement is intended to affect any other agreement between the Distribution Company utility and the Interconnection Customer IC.

1.5 Responsibilities of the Parties

1.5.1 The Parties shall perform all obligations of this Agreement in accordance with all applicable laws and regulations, operating requirements, and Good Distribution Company Utility Practice.

1.5.2 The Interconnection Customer IC shall construct, interconnect, operate and maintain its Small Generating Facility SGF and construct, operate, and maintain its Customer's Interconnection Facilities in accordance with the applicable manufacturer's recommended maintenance schedule, in accordance with this Agreement, and with Good Distribution Company Utility Practice.

1.5.3 The Distribution Company utility shall construct, operate, and maintain its distribution and transmission system and interconnection attachment facilities in accordance with this Agreement, and with Good Distribution Company Utility Practice.

1.5.4 The Interconnection Customer IC agrees to construct its facilities or systems in accordance with applicable specifications that meet or exceed those provided by the National Electrical Safety Code, the American National Standards Institute, IEEE, Underwriter's Laboratory, and operating requirements in effect at the time of construction and other applicable national and state codes and standards. The Interconnection Customer IC agrees to design, install, maintain, and operate its small generating facility SGF so as to reasonably minimize the likelihood of a disturbance adversely affecting or impairing the system or equipment of the Distribution Company utility or affected systems and to otherwise maintain and operate its SGF in accordance with the specifications and certifications under which the SGF was initially installed and interconnected.

1.5.5 Each Party shall operate, maintain, repair, and inspect, and shall be fully responsible for the facilities that it now or subsequently may own unless otherwise specified in the Attachments to this Agreement. Each Party shall be responsible for the safe installation, maintenance, repair and condition of their respective lines and appurtenances on their respective sides of the point of change of ownership. The Distribution Company utility and the Interconnection Customer IC, as appropriate, shall provide Interconnection Attachment Facilities and Customer's Interconnection Facilities that adequately protect the Distribution Company's Transmission System, utility's personnel, and other persons from damage and injury. The allocation of responsibility for the design, installation, operation, maintenance and ownership of Interconnection Attachment Facilities and Customer's Interconnection Facilities shall be delineated in the Attachments to this Agreement. The design, installation, operation, and maintenance of such facilities shall be the responsibility of the owner except as otherwise provided for in this Agreement.

1.5.6 The Distribution Company utility shall coordinate with all affected systems to support the interconnection.

1.6 Parallel operation obligations

Once the small generating facility SGF has been authorized to commence parallel operation, the Interconnection Customer IC shall abide by all rules and procedures pertaining to the parallel operation of the small generating facility SGF including, but not limited to the rules and procedures concerning the operation of generation set forth in the tariff.

1.7 Metering

The Interconnection Customer IC shall be responsible for the Distribution Company's utility's reasonable and necessary cost for the purchase, installation, operation, maintenance, testing, repair, and replacement of metering and data acquisition equipment specified in Attachments 2 and 3 of this Agreement. The Interconnection Customer's IC's metering (and data acquisition, as required) equipment shall conform to applicable industry rules and operating requirements.

1.8 Reactive power

1.8.1 The Interconnection Customer IC shall design its small generating facility SGF to maintain a composite power delivery at continuous rated power output at the point of interconnection at a power factor within the range of 0.95 leading to 0.95 lagging, unless the Distribution Company utility has established different requirements that apply to all similarly situated generators in the control area on a comparable basis. The requirements of this paragraph shall not apply to wind generators.

1.8.2 The Distribution Company utility is required to pay the Interconnection Customer for reactive power that the Interconnection Customer IC provides or absorbs from the small generating facility SGF when the Distribution Company utility requests the Interconnection Customer IC to operate its small generating facility SGF outside the range specified in article 1.8.1. In addition, if the Distribution Company utility pays its own or affiliated generators for reactive power service within the specified range, it must also similarly pay the Interconnection Customer IC.

1.8.3 Payments shall be in accordance with the Interconnection Customer's IC's applicable rate schedule then as may be in effect and accepted by the appropriate government authority. To the extent that no rate schedule is in effect at the time the Interconnection Customer is required to provide or absorb reactive power under this Agreement, the Parties agree to IC may expeditiously file such rate schedule and agree with the appropriate government authority, and the utility agrees to support any request for waiver of the State Corporation Commission's any prior notice requirement of such authority in order to compensate permit compensation to the Interconnection Customer IC from the time service commenced.

1.9 Capitalized terms used herein shall have the meanings specified in the Glossary of Terms definitions in Attachment 1 to Schedule 5 6 or in the body of this Agreement.

Article 2. Inspection, Testing, Authorization, and Right of Access

2.1 Equipment testing and inspection

2.1.1 The Interconnection Customer shall test and inspect its small generating facility and interconnection facilities prior to interconnection. The Interconnection Customer IC shall notify the Distribution Company utility of such activities no fewer than five business days (or as may be agreed to by the Parties) prior to such testing and inspection. Testing and inspection shall occur on a business day. The Distribution Company utility may, at its own expense, send qualified personnel to the small generating facility SGF site to inspect the interconnection and observe the testing. The Interconnection Customer IC shall provide the Distribution Company utility a written test report when such testing and inspection is completed.

2.1.2 The Distribution Company utility shall provide the Interconnection Customer IC written acknowledgment that it has received the Interconnection Customer's IC's written test report. Such written acknowledgment shall not be deemed to be or construed as any representation, assurance, guarantee, or warranty by the Distribution Company utility of the safety, durability, suitability, or reliability of the small generating facility SGF or any associated control, protective, and safety devices owned or controlled by the Interconnection Customer IC or the quality of power produced by the small generating facility SGF.

2.2 Authorization required prior to parallel operation

2.2.1 The Distribution Company utility shall use reasonable efforts to list applicable parallel operation requirements in Attachment 5 of this Agreement. Additionally, the Distribution Company utility shall notify the Interconnection Customer of any changes to these requirements as soon as they are known. The Distribution Company utility shall make reasonable efforts to cooperate with the Interconnection Customer IC in meeting requirements necessary for the Interconnection Customer IC to commence parallel operations by the in-service date.

2.2.2 The Interconnection Customer IC shall not operate its small generating facility SGF in parallel with the Distribution Company's utility's system without prior written authorization of the Distribution Company utility. The Distribution Company utility will provide such authorization once the Distribution Company utility receives notification that the Interconnection Customer IC has complied with all applicable parallel operation requirements. Such authorization shall not be unreasonably withheld, conditioned, or delayed.

2.3 Right of access

2.3.1 Upon reasonable notice, the Distribution Company utility may send a qualified person to the premises of the Interconnection Customer at or immediately before the time the small generating facility SGF first produces energy to inspect the interconnection, and observe the commissioning of the small generating facility SGF (including any required testing), startup, and operation for a period of up to three business days after initial start-up of the unit. In addition, the Interconnection Customer IC shall notify the Distribution Company utility at least five business days prior to conducting any on-site verification testing of the small generating facility SGF.

2.3.2 Following the initial inspection process described above, at reasonable hours, and upon reasonable notice, or at any time without notice in the event of an emergency or hazardous condition, the Distribution Company utility shall have access to the Interconnection Customer's premises for any reasonable purpose in connection with the performance of the obligations imposed on it by this Agreement or if necessary to meet its legal obligation to provide service to its customers.

2.3.3 Each Party shall be responsible for its own costs associated with following this article.

Article 3. Effective Date, Term, Termination, and Disconnection

3.1 Effective date

This Agreement shall become effective upon execution by the Parties subject to acceptance by the State Corporation Commission's Division of Energy Regulation (if applicable), or if filed unexecuted, upon the date specified by the State Corporation Commission's Division of Energy Regulation. The Distribution Company utility shall promptly file this Agreement with the State Corporation Commission's Division of Energy Regulation upon execution, if required.

3.2 Term of Agreement

This Agreement shall become effective on the effective date and shall remain in effect for a period of 10 years from the effective date or such other longer period as the Interconnection Customer may request and shall be automatically renewed for each successive one-year period thereafter, unless terminated earlier in accordance with article 3.3 of this Agreement.

3.3 Termination

No termination shall become effective until the Parties have complied with all applicable laws and regulations applicable to such termination, including the filing with the State Corporation Commission's Division of Energy Regulation of a notice of termination of this Agreement (if required), which notice has been accepted for filing by commission's Division of Energy Regulation.

3.3.1 The Interconnection Customer may terminate this Agreement at any time by giving the Distribution Company utility 20 business days written notice.

3.3.2 Either Party may terminate this Agreement after default pursuant to article 7.6.

3.3.3 Upon termination of this Agreement, the small generating facility Small Generating Facility will be disconnected from the Distribution Company's utility system. The termination of this Agreement shall not relieve either Party of its liabilities and obligations, owed or continuing at the time of the termination.

3.3.4 This provisions of this article shall survive termination or expiration of this Agreement.

3.4 Temporary disconnection

Temporary disconnection shall continue only for so long as reasonably necessary under Good Distribution Company Utility Practice.

3.4.1 Emergency Conditions -- "Emergency Condition" shall mean a condition or situation: (i) that in the judgment of the Party making the claim is imminently likely to endanger life or property; or (ii) that, in the case of the Distribution Company utility, is imminently likely (as determined in a non-discriminatory manner) to cause a material adverse effect on the security of, or damage to the distribution utility system, the Distribution Company's Interconnection Attachment Facilities or the electrical facilities of others to which the Distribution Company's distribution utility system is directly connected; or (iii) that, in the case of the Interconnection Customer, is imminently likely (as determined in a non-discriminatory manner) to cause a material adverse effect on the security of, or damage to, the small generating facility Small Generating Facility or the Interconnection Customer's interconnection facilities Interconnection Facilities. Under emergency conditions, the Distribution Company utility may immediately suspend interconnection service and temporarily disconnect the small generating facility SGF. The Distribution Company utility shall notify the Interconnection Customer IC promptly when it becomes aware of an emergency condition that may reasonably be expected to affect the Interconnection Customer's IC's operation of the small generating facility SGF. The Interconnection Customer IC shall notify the Distribution Company utility promptly when it becomes aware of an emergency condition that may reasonably be expected to affect the Distribution Company's utility system or other affected systems. To the extent information is known, the notification shall describe the emergency condition, the extent of the damage or deficiency, the expected effect on the operation of both Parties' facilities and operations, its anticipated duration, and the necessary corrective action.

3.4.2 Routine maintenance, construction, and repair

The Distribution Company utility may interrupt interconnection service or curtail the output of the small generating facility SGF and temporarily disconnect the small generating facility SGF from the Distribution Company's distribution utility's system when necessary for routine maintenance, construction, and repairs on the Distribution Company's distribution utility system. The Distribution Company utility shall provide the Interconnection Customer IC with at least five business days notice prior to such interruption unless circumstances require shorter notice. The Distribution Company utility shall use reasonable efforts to coordinate such reduction or temporary disconnection with the Interconnection Customer IC.

3.4.3 Forced outages

During any forced outage, the Distribution Company utility may suspend interconnection service to effect immediate repairs on the Distribution Company's distribution utility system. The Distribution Company utility shall use reasonable efforts to provide the Interconnection Customer IC with prior notice. If prior notice is not given, the Distribution Company utility shall, upon request, provide the Interconnection Customer IC written documentation after the fact explaining the circumstances of the disconnection.

3.4.4 Adverse operating effects

The Distribution Company utility shall notify the Interconnection Customer IC as soon as practicable if, based on Good Distribution Company Utility Practice, operation of the small generating facility SGF may cause disruption or deterioration of service to other customers served from the same electric utility system or affected systems, or if operating the small generating facility SGF could cause damage to the Distribution Company's distribution utility system or affected systems. Supporting documentation used to reach the decision to disconnect shall be provided to the Interconnection Customer IC upon request. If, after notice, the Interconnection Customer IC fails to remedy the adverse operating effect within a reasonable time, the Distribution Company utility may disconnect the small generating facility SGF. The Distribution Company utility shall provide the Interconnection Customer IC with a five business day notice of such disconnection, unless the provisions of article 3.4.1 apply.

3.4.5 Modification of the small generating facility Small Generating Facility

The Interconnection Customer must receive written authorization from the Distribution Company utility before making any change changes to the small generating facility SGF or mode of operations that may have a material impact on the safety or reliability of the Distribution Company's utility system or affected system. Such authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good Distribution Company Utility Practice. If the Interconnection Customer IC makes such modification modifications without the Distribution Company's utility's prior written authorization, the latter shall have the right to temporarily disconnect the small generating facility SGF.

3.4.6 Reconnection

The Parties shall cooperate with each other to restore the small generating facility SGF, interconnection facilities, and the Distribution Company's distribution utility system to their normal operating state as soon as reasonably practicable following a temporary disconnection.

Article 4. Cost Responsibility for Customer's Interconnection Facilities, Attachment Facilities, and Distribution Upgrades

4.1 Customer's Interconnection facilities Facilities

The IC shall be responsible for the costs associated with owning, operating, maintaining, repairing, and replacing the Customer's Interconnection Facilities.

4.1.1 4.2 Attachment Facilities

The Interconnection Customer IC shall pay for the cost of one-time and ongoing costs of installing, owning, operating, maintaining and replacing the interconnection attachment facilities itemized in Attachment 2 of this Agreement. The Distribution Company utility shall provide a best estimate an estimated cost, including overheads, for the purchase and construction of its interconnection the attachment facilities and provide a detailed itemization of such costs. Costs associated with interconnection attachment facilities may be shared with other entities that may benefit from such facilities by agreement of the Interconnection Customer IC, such other entities, and the Distribution Company utility.

4.1.2 The Interconnection Customer shall be responsible for its share of all reasonable expenses, including overheads, associated with (i) owning, operating, maintaining, repairing, and replacing its own interconnection facilities, and (ii) operating, maintaining, repairing, and replacing the Distribution Company's interconnection facilities.

4.2 4.3 Distribution upgrades

The Distribution Company utility shall design, procure, construct, install, and own the distribution upgrades described in Attachment 6 of this Agreement. The actual cost of the distribution upgrades shall be directly assigned to the IC. If the Distribution Company utility and the Interconnection Customer IC agree, the Interconnection Customer IC may construct distribution upgrades that are located on land owned by the Interconnection Customer IC. The actual cost of the distribution upgrades, including overheads, shall be directly assigned to the Interconnection Customer.

Article 5. Cost Responsibility for System Upgrades

5.1 Applicability

No portion of this article 5 shall apply unless the interconnection of the small generating facility requires system upgrades.

5.2 System upgrades

The Distribution Company shall design, procure, construct, install, and own the system upgrades described in Attachment 3 of this Agreement. If the Distribution Company and the Interconnection Customer agree, the Interconnection Customer may construct system upgrades that are located on land owned by the Interconnection Customer. Unless the Distribution Company elects to pay for system upgrades, the actual cost of the system upgrades, including overheads, shall be borne initially by the Interconnection Customer.

5.2.1 Repayment of amounts advanced for system upgrades

The Interconnection Customer shall be entitled to a cash repayment, equal to the total amount paid to the Distribution Company and affected system operator, if any, for system upgrades, including any tax gross-up or other tax-related payments associated with the system upgrades, and not otherwise refunded to the Interconnection Customer, to be paid to the Interconnection Customer on a dollar-for-dollar basis for the nonusage sensitive portion of transmission charges, as payments are made under the Distribution Company's tariff and affected system's tariff for distribution services with respect to the small generating facility. Upgrades through the date on which the Interconnection Customer receives a repayment of such payment pursuant to this subparagraph. The Interconnection Customer may assign such repayment rights to any person.

5.2.1.1 Notwithstanding the foregoing, the Interconnection Customer, the Distribution Company, and affected system operator may adopt any alternative payment schedule that is mutually agreeable so long as the Distribution Company and affected system operator take one of the following actions no later than five years from the commercial operation date: (i) return to the Interconnection Customer any amounts advanced for system upgrades not previously repaid, or (ii) declare in writing that the Distribution Company or affected system operator will continue to provide payments to the Interconnection Customer on a dollar-for-dollar basis for the nonusage sensitive portion of transmission charges, or develop an alternative schedule that is mutually agreeable and provides for the return of all amounts advanced for system upgrades not previously repaid; however, full reimbursement shall not extend beyond 20 years from the commercial operation date.

5.2.1.2 If the small generating facility fails to achieve commercial operation, but it or another generating facility is later constructed and requires use of the system upgrades, the Distribution Company and affected system operator shall at that time reimburse the Interconnection Customer for the amounts advanced for the system upgrades. Before any such reimbursement can occur, the Interconnection Customer, or the entity that ultimately constructs the generating facility, if different, is responsible for identifying the entity to which reimbursement must be made.

5.3 Special provisions for affected systems

Unless the Distribution Company provides, under this Agreement, for the repayment of amounts advanced to affected system operator for system upgrades, the Interconnection Customer and affected system operator shall enter into an agreement that provides for such repayment. The agreement shall specify the terms governing payments to be made by the Interconnection Customer to affected system operator as well as the repayment by affected system operator.

Article 5. Transmission System

5.1 Transmission system upgrades

5.1.1 No portion of section 5.1 of this article 5 shall apply unless the interconnection of the Small Generating Facility requires transmission system upgrades.

5.1.2 The utility shall design, procure, construct, install, and own the transmission system upgrades described in Attachment 6 of this Agreement. If the utility and the Interconnection Customer agree, the IC may construct transmission system upgrades that are located on land owned by the IC. The costs of the transmission system upgrades shall be borne by the IC.

5.1.3 Notwithstanding any other provision of section 5.1 of article 5, in the event and to the extent an RTE has rules, tariffs, agreements, or procedures properly applying to transmission system upgrades, the provisions of section 5.2 of article 5 shall apply to such upgrades.

5.2 Regional Transmission Entities

Notwithstanding any other provision of this Agreement, if the utility's transmission system is under the control of an RTE and the RTE has rules, tariffs, agreements or procedures properly governing operation of the SGF, transmission of the output of the SGF, sale of the output of the SGF, system upgrades required for interconnection of the SGF, or other aspects of the interconnection and operation of the SGF, the IC and the utility shall comply with the applicable of such agreements, rules, tariffs, or procedures.

5.4 5.3 Rights under other agreements

Notwithstanding any other provision of this Agreement, nothing herein shall be construed as relinquishing or foreclosing any rights, including but not limited to firm transmission rights, capacity rights, transmission congestion rights, or transmission credits, that the Interconnection Customer IC shall be entitled to, now or in the future, under any other agreement or tariff as a result of, or otherwise associated with system upgrades, including the right to obtain cash reimbursements or transmission credits for transmission service that is not associated with the small generating facility SGF.

Article 6. Billing, Payment, Milestones, and Financial Security

6.1 Billing and payment procedures and final accounting

6.1.1 The Distribution Company utility shall bill the Interconnection Customer IC for the design, engineering, construction, and procurement costs of interconnection attachment facilities and upgrades contemplated by this Agreement on a monthly basis, or as otherwise agreed by the Parties. The Interconnection Customer IC shall pay each bill within 30 calendar days of receipt, or as otherwise agreed to by the Parties.

6.1.2 Within three months 120 calendar days of completing the construction and installation of the Distribution Company's interconnection attachment facilities and/or distribution upgrades described in the Attachments to this Agreement, the Distribution Company utility shall provide the Interconnection Customer IC with a final accounting report of any difference between (i) the Interconnection Customer's IC's cost responsibility for the actual cost of such facilities or upgrades, and (ii) the Interconnection Customer's IC's previous aggregate payments to the Distribution Company utility for such facilities or upgrades. If the Interconnection Customer's IC's cost responsibility exceeds its previous aggregate payments, the Distribution Company utility shall invoice the Interconnection Customer IC for the amount due and the Interconnection Customer IC shall make payment to the Distribution Company utility within 30 calendar days. If the Interconnection Customer's IC's previous aggregate payments exceed its cost responsibility under this Agreement, the Distribution Company utility shall refund to the Interconnection Customer IC an amount equal to the difference within 30 calendar days of the final accounting report.

6.2 Milestones

The Parties shall agree on milestones for which each Party is responsible and list them such milestone shall be listed in Attachment 4 of this Agreement. A Party's milestones obligations under this provision may be extended modified by agreement. If a Party anticipates that it will be unable to meet a milestone for any reason other than a Force Majeure Event event, it shall immediately (i) notify the other Party of the reason(s) for not meeting the milestone, and (i) (ii) propose the earliest reasonable alternate date by which it can attain this and future milestones, and (ii) requesting (iii) request appropriate amendments to Attachment 4. The Party affected by the failure to meet a milestone shall not unreasonably withhold agreement to such an amendment unless it will suffer significant uncompensated economic or operational harm from the delay, attainment of the same milestone has previously been delayed, or it has reason to believe that the delay in meeting the milestone is intentional or unwarranted notwithstanding the circumstances explained by the Party proposing the amendment.

6.3 Financial security arrangements

At least 20 business days prior to the commencement of the design, procurement, installation, or construction of a discrete portion of the Distribution Company's interconnection attachment facilities and distribution upgrades, the Interconnection Customer shall provide the Distribution Company utility, at the Interconnection Customer's IC's option, a guarantee, a surety bond, letter of credit or other form of security that is reasonably acceptable to the Distribution Company utility and is consistent with the Uniform Commercial Code of the jurisdiction where the point of interconnection is located. Such security for payment shall be in an amount sufficient to cover the costs for constructing, designing, procuring, and installing, and constructing the applicable portion of the Distribution Company's interconnection attachment facilities and distribution upgrades and shall be reduced on a dollar-for-dollar basis for payments made to the Distribution Company utility under this Agreement during its term. In addition:

6.3.1 The guarantee must be made by an entity that meets the creditworthiness requirements of the Distribution Company utility, and contain terms and conditions that guarantee payment of any amount that may be due from the Interconnection Customer IC, up to an agreed-to maximum amount.

6.3.2 The letter of credit or surety bond must be issued by a financial institution or insured reasonably acceptable to the Distribution Company utility and must specify a reasonable expiration date.

Article 7. Assignment, Liability, Indemnity, Force Majeure, Consequential Damages, and Default

7.1 Assignment

This Agreement may be assigned by either Party upon 15 business days prior written notice and opportunity to object by the other Party; provided that:

7.1.1 Either Party may assign this Agreement without the consent of the other Party to any affiliate of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement;

7.1.2 The Interconnection Customer shall have the right to assign this Agreement, without the consent of the Distribution Company utility, for collateral security purposes to aid in providing financing for the small generating facility SGF, provided that the Interconnection Customer IC will promptly notify the Distribution Company utility of any such assignment.

7.1.3 Any attempted assignment that violates this article is void and ineffective.

Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be enlarged, in whole or in part, by reason thereof. An assignee is responsible for meeting the same financial, credit, and insurance obligations as the Interconnection Customer IC. Where required, consent to assignment will not be unreasonably withheld, conditioned or delayed.

7.2 Limitation of liability

Each Party's liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney's fees, relating to or arising from any act or omission in its performance of this Agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either Party be liable to the other Party for any indirect, special, consequential, or punitive damages, except as authorized by this Agreement.

7.3 Indemnity

7.3.1 This provision protects each Party from liability incurred to third parties as a result of carrying out the provisions of this Agreement. Liability under this provision is exempt from the general limitations on liability found in article 7.2.

7.3.2 The Parties shall at all times indemnify, defend, and hold the other Party harmless from, any and all damages, losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demand, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other Party's action or failure to meet its obligations under this Agreement on behalf of the indemnifying Party, except in cases of gross negligence or intentional wrongdoing by the indemnified Party.

7.3.3 If an indemnified person Party is entitled to indemnification under this article as a result of a claim by a third party, and the indemnifying Party fails, after notice and reasonable opportunity to proceed under this article, to assume the defense of such claim, such indemnified person may at the expense of the indemnifying Party contest, settle or consent to the entry of any judgment with respect to, or pay in full, such claim.

7.3.4 If an indemnifying party Party is obligated to indemnify and hold any indemnified person harmless under this article, the amount owing to the indemnified person shall be the amount of such indemnified person's actual loss, net of any insurance or other recovery.

7.3.5 Promptly after receipt by an indemnified person of any claim or notice of the commencement of any action or administrative or legal proceeding or small generator investigation as to which the indemnity provided for in this article may apply, the indemnified person shall notify the indemnifying party Party of such fact. Any failure of or delay in such notification shall not affect a Party's indemnification obligation unless such failure or delay is materially prejudicial to the indemnifying party.

7.4 Consequential damages

Other than as expressly provided for in this Agreement, neither Party shall be liable under any provision of this Agreement for any losses, damages, costs or expenses for any special, indirect, incidental, consequential, or punitive damages, including but not limited to loss of profit or revenue, loss of the use of equipment, cost of capital, cost of temporary equipment or services, whether based in whole or in part in contract, in tort, including negligence, strict liability, or any other theory of liability; provided that damages for which a Party may be liable to the other Party under another agreement will not be considered to be special, indirect, incidental, or consequential damages hereunder.

7.5 Force Majeure

7.5.1 As used in this article, a Force Majeure Event event means "any act of God, labor disturbance, act of the public enemy, war, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment, any order, regulation or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party's control. A Force Majeure Event event does not include an act of negligence or intentional wrongdoing."

7.5.2 If a Force Majeure Event event prevents a Party from fulfilling any obligations under this Agreement, the Party affected by the Force Majeure Event event ("Affected Party") shall promptly notify the other Party, either in writing or via the telephone, of the existence of the Force Majeure Event event. The notification must specify in reasonable detail the circumstances of the Force Majeure Event event, its expected duration, and the steps that the Affected Party is taking to mitigate the effects of the event on its performance. The Affected Party shall keep the other Party informed on a continuing basis of developments relating to the Force Majeure Event event until the event ends. The Affected Party will be entitled to suspend or modify its performance of obligations under this Agreement (other than the obligation to make payments) only to the extent that the effect of the Force Majeure Event event cannot be mitigated by the use of reasonable efforts. The Affected Party will use reasonable efforts to resume its performance as soon as possible.

7.6 Default

7.6.1 No default shall exist where such failure to discharge an obligation (other than the payment of money) is the result of a Force Majeure Event event as defined in this Small Generator Interconnection Agreement or the result of an act or omission of the other Party. Upon a default, the nondefaulting Nondefaulting Party shall give written notice of such default to the defaulting Defaulting Party. Except as provided in article 7.6.2, the defaulting Defaulting Party shall have 60 calendar days from receipt of the default notice within which to cure the default; however, if the default is not capable of cure within 60 calendar days, the defaulting Defaulting Party shall commence the cure within 20 calendar days after notice and continuously and diligently complete the cure within six months from receipt of the default notice; and, if cured within such time, the default specified in such notice shall cease to exist.

7.6.2 If a default is not cured as provided in this article, or if a default is not capable of being cured within the period provided for herein, the nondefaulting Nondefaulting Party shall have the right to terminate this Agreement by written notice at any time until cure occurs, and be relieved of any further obligation hereunder and, whether or not that Party terminates this Agreement, to recover from the defaulting Defaulting Party all amounts due hereunder, plus all other damages and remedies to which it is entitled at law or in equity. The provisions of this article will survive termination of this Agreement.

Article 8. Insurance

8.1 The Interconnection Customer shall, at its own expense, maintain in force general liability insurance without any exclusion for liabilities related to the interconnection undertaken pursuant to this Agreement. The amount of such insurance shall be sufficient to insure against all reasonably foreseeable direct liabilities given the size and nature of the generating equipment being interconnected, the interconnection itself, and the characteristics of the system to which the interconnection is made in accordance with 20VAC5-314-160 of the Commission's Regulations Governing the Interconnection of Small Electrical Generators. The Interconnection Customer IC shall obtain additional insurance only if necessary as a function of owning and operating a generating facility. Insurance shall be obtained from an insurance provider authorized to do business in the State where the interconnection is located of Virginia. Certification that such insurance is in effect shall be provided upon request of the Distribution Company utility, except that the Interconnection Customer IC shall show proof of insurance to the Distribution Company utility no later than 10 business days prior to the anticipated commercial operation date of the SGF. An Interconnection Customer IC of sufficient creditworthiness may propose to self-insure for such liabilities, and such a proposal shall not be unreasonably rejected.

8.2 The Distribution Company utility agrees to maintain general liability insurance or self insurance consistent with the Distribution Company's utility's commercial practice. Such insurance or self-insurance shall not exclude coverage for the Distribution Company's utility's liabilities undertaken pursuant to this Agreement.

8.3 The Parties further agree to notify each other whenever an accident or incident occurs resulting in any injuries or damages that are included within the scope of coverage of such insurance, whether or not such coverage is sought.

Article 9. Confidentiality

9.1 Confidential information shall mean any confidential and/or proprietary information provided by one Party to the other Party that is clearly marked or otherwise designated "Confidential." For purposes of this Agreement all design, operating specifications, and metering data provided by the Interconnection Customer shall be deemed confidential information regardless of whether it is clearly marked or otherwise designated as such.

9.2 Confidential information does not include information previously in the public domain, required to be publicly submitted or divulged by governmental authorities (after notice to the other Party and after exhausting any opportunity to oppose such publication or release), or necessary to be divulged in an action to enforce this Agreement. Each Party receiving confidential information shall hold such information in confidence and shall not disclose it to any third party nor to the public without the prior written authorization from the Party providing that information, except to fulfill obligations under this Agreement, or to fulfill legal or regulatory requirements.

9.2.1 Each Party shall employ at least the same standard of care to protect confidential information obtained from the other Party as it employs to protect its own confidential information.

9.2.2 Each Party is entitled to equitable relief, by injunction or otherwise, to enforce its rights under this provision to prevent the release of confidential information without bond or proof of damages, and may seek other remedies available at law or in equity for breach of this provision.

9.3 Notwithstanding anything in this Agreement to the contrary, if the Virginia State Corporation Commission ("Commission"), during the course of an investigation or otherwise, requests information from one of the Parties that is otherwise required to be maintained in confidence, the Party shall provide the requested information to the Commission, within the time provided for in the request for information. In providing the information to the Commission, the Party may request that the information be treated as confidential and nonpublic by the Commission and that the information be withheld from public disclosure. Parties are prohibited from notifying the other Party prior to the release of the confidential information to the Commission. [ A Party shall notify the other Party when it is notified by the Commission that a request to release confidential information has been received by the Commission, at which time either Party may respond to the Commission before such information would be made public. ]

Article 10. Disputes

10.1 The Parties agree to attempt to resolve all disputes arising out of the interconnection process according to the provisions of this article.

10.2 In the event of a dispute, either Party shall provide the other Party with a written Notice of Dispute. Such Notice shall describe in detail the nature of the dispute. The Parties shall make a good faith effort to resolve the dispute informally within 10 business days.

10.3 If the dispute has not been resolved within two 10 business days after receipt of the Notice, either Party may contact seek resolution assistance from the Commission's Division of Energy Regulation for assistance in resolving the dispute where the matter will be handled as an informal complaint. [ If that process is unsatisfactory, either Party may petition the Commission to handle the dispute as a formal complaint. ]

Alternatively, either Party may [ , upon mutual agreement, ] seek resolution through the assistance of a dispute resolution service. The dispute resolution service will assist the Parties in either resolving the dispute or in selecting an appropriate dispute resolution venue (e.g., mediation, settlement judge, early neutral evaluation, or technical expert) to assist the Parties in resolving their dispute. Each Party [ agrees to shall ] conduct all negotiations in good faith and [ will shall ] be responsible for [ ½ one-half ] of any costs paid to neutral third parties.

10.4 Each Party agrees to conduct all negotiations in good faith and will be responsible for one-half of any costs paid to neutral third-parties If [ attempted dispute resolutions fail to satisfy one or both of the Parties, then the dispute remains unresolved ] either Party may [ petition the Commission to handle the dispute as a formal complaint or may ] exercise whatever rights and remedies it may have in equity or law consistent with the terms of this Agreement.

10.5 If neither Party elects to seek assistance from the State Corporation Commission's Division of Energy Regulation, or if the attempted dispute resolution fails, then either Party may exercise whatever rights and remedies it may have in equity or law consistent with the terms of this Agreement.

Article 11. Taxes

11.1 The Parties agree to follow all applicable tax laws and regulations

11.2 Each Party shall cooperate with the other to maintain the other Party's tax status. Nothing in this Agreement is intended to adversely affect the Distribution Company's utility's tax exempt status with respect to the issuance of bonds including, but not limited to, local furnishing bonds.

Article 12. Miscellaneous

12.1 Governing Law, Regulatory Authority, and Rules law, regulatory authority, and rules

The validity, interpretation and enforcement of this Agreement and each of its provisions shall be governed by the laws of the state State of Virginia without regard to its conflicts of law principles. This Agreement is subject to all applicable laws and regulations. Each Party expressly reserves the right to seek changes in, appeal, or otherwise contest any laws, orders, or regulations of a governmental authority.

12.2 Amendment

The Parties may amend this Agreement by a written instrument duly executed by both Parties.

12.3 No Third-Party Beneficiaries third-party beneficiaries

This Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, their successors in interest and where permitted, their assigns.

12.4 Waiver

12.4.1 The failure of a Party to this Agreement to insist, on any occasion, upon strict performance of any provision of this Agreement will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party.

12.4.2 Any waiver at any time by either Party of its rights with respect to this Agreement shall not be deemed to be a continuing waiver or a waiver with respect to any other failure to comply with any other obligation, right, or duty of this Agreement. Termination or default of this Agreement for any reason by the Interconnection Customer shall not constitute a waiver of the Interconnection Customer's IC's legal rights to obtain an interconnection from the Distribution Company utility. Any waiver of this Agreement shall, if requested, be provided in writing.

12.5 Entire Agreement

This Agreement, including all Attachments, constitutes the entire agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of this Agreement. There are no other agreements, representations, warranties, or covenants which constitute any part of the consideration for, or any condition to, either Party's compliance with its obligations under this Agreement.

12.6 Multiple Counterparts counterparts

This Agreement may be executed in two or more counterparts, each of which is deemed an original but all constitute one and the same instrument.

12.7 No Partnership partnership

This Agreement shall not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party.

12.8 Severability

If any provision or portion of this Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (i) such portion or provision shall be deemed separate and independent, (ii) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (iii) the remainder of this Agreement shall remain in full force and effect.

12.9 Environmental Releases releases

Each Party shall notify the other Party, first orally and then in writing, of the release of any hazardous substances, any asbestos or lead abatement activities, or any type of remediation activities related to the small generating facility or Small Generating Facility, the customer's interconnection facilities, or attachment facilities, each of which may reasonably be expected to affect the other Party. The notifying Party shall (i) provide the notice as soon as practicable, provided such Party makes a good faith effort to provide the notice no later than 24 hours after such Party becomes aware of the occurrence, and (ii) promptly furnish to the other Party copies of any publicly available reports filed with any governmental authorities addressing such events.

12.10 Subcontractors

Nothing in this Agreement shall prevent a Party from utilizing the services of any subcontractor as it deems appropriate to perform its obligations under this Agreement; however, each Party shall require its subcontractors to comply with all applicable terms and conditions of this Agreement in providing such services and each Party shall remain primarily liable to the other Party for the performance of such subcontractor.

12.10.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under this Agreement. The hiring Party shall be fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made; however, in no event shall the Distribution Company utility be liable for the actions or inactions of the Interconnection Customer IC or its subcontractors with respect to obligations of the Interconnection Customer IC under this Agreement. Any applicable obligation imposed by this Agreement upon the hiring Party shall be equally binding upon, and shall be construed as having application to, any subcontractor of such Party.

12.10.2 The obligations under this article will not be limited in any way by any limitation of subcontractor's insurance.

12.11 Reservation of Rights rights

The Distribution Company utility shall have the right to make a unilateral filing with the Commission to modify this Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule or regulation.

Article 13. Notices

13.1 General

Unless otherwise provided in this Agreement, any written notice, demand, or request required or authorized in connection with this Agreement ("Notice") shall be deemed properly given if delivered in person, delivered by recognized national currier courier service, or sent by first class mail, postage prepaid, to the person specified below:

If to the Interconnection Customer:

Interconnection Customer:_______________________________________

Attention:____________________________________________________

Address:____________________________________________________

City: ___________________________ State:_____________ Zip:_______

City, State, Zip:_______________________________________________

Phone:_________________________ Fax:_________________________

If to the Distribution Company Utility:

Distribution Company Utility:______________________________________

Attention:____________________________________________________

Address:____________________________________________________

City: ___________________________ State:_____________ Zip:_______

City, State, Zip:________________________________________________

Phone:_________________________ Fax:_________________________

13.2 Billing and Payment payment

Billings and payments shall be sent to the addresses set out below:

If to the Interconnection Customer:

Interconnection Customer:_________________________________________

Attention:______________________________________________________

Address:______________________________________________________

City: ____________________________ State:_______________ Zip:______

City, State, Zip:_________________________________________________

If to the Distribution Company Utility:

Distribution Company Utility:_______________________________________

Attention:______________________________________________________

Address:______________________________________________________

City:___________________________ State:_______________ Zip:_______

City, State, Zip:_________________________________________________

13.3 Alternative Forms forms of Notice notice

Any notice or request required or permitted to be given by either Party to the other and not required by this Agreement to be given in writing may be so given by telephone, facsimile or e-mail to the telephone numbers and email addresses set out below:

If to the Interconnection Customer:

Interconnection Customer:__________________________________________

Attention:_______________________________________________________

Address:_______________________________________________________

City: _____________________________ State:_______________ Zip:______

City, State, Zip:___________________________________________________

Phone:___________________________ Fax:__________________________

If to the Distribution Company Utility:

Distribution Company Utility:_________________________________________

Attention:_______________________________________________________

Address:_______________________________________________________

City: ____________________________ State:_______________ Zip:_______

City, State, Zip:___________________________________________________

Phone:___________________________ Fax:__________________________

13.4 Designated Operating Representative operating representative

The Parties may also designate operating representatives to conduct the communications which may be necessary or convenient for the administration of this Agreement. This person will also serve as the point of contact with respect to operations and maintenance of the Party's facilities.

Interconnection Customer's Operating Representative:

Interconnection Customer:_______________________________________

Attention:____________________________________________________

Address:____________________________________________________

City: ___________________________ State:_____________ Zip:_______

City, State, Zip:_______________________________________________

Phone:_________________________ Fax:_________________________

Distribution Company's Utility's Operating Representative:

Distribution Company Utility:______________________________________

Attention:____________________________________________________

Address:_____________________________________________________

City: ___________________________ State:_____________ Zip:_______

City, State, Zip:________________________________________________

Phone:_________________________ Fax:_________________________

13.5 Changes to the Notice Information notice information

Either Party may change this information by giving five business days written notice prior to the effective date of the change.

Article 14. Signatures

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized representatives.

For the Distribution Company Utility

Name:____________________________________________________

Title:_____________________________________________________

Date:____________________________________________________

For the Interconnection Customer

Name:___________________________________________________

Title:_____________________________________________________

Date:____________________________________________________

Attachment 1 to

Schedule 5 6

Glossary of Terms

"Affected system– An" means an electric utility system other than that of the Distribution Company's transmission system utility that may be affected by the proposed interconnection.

"Affected system operator" means an entity that operates an affected system or, if the affected system is under the operational control of an independent system operator or a Regional Transmission Entity, such independent entity.

"Applicable laws and regulations– All" means all duly promulgated applicable federal, state and local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or administrative orders, permits and other duly authorized actions of any governmental authority.

"Attachment facilities" means the facilities and equipment owned, operated, and maintained by the utility that are built new in order to physically connect the customer's interconnection facilities to the utility system. Attachment facilities shall not include distribution upgrades or previously existing distribution and transmission facilities.

"Business [ Day" day" ] – means Monday through Friday, excluding federal holidays.

"Certified" has the meaning ascribed to it in Schedule 2 of Chapter 314 [ (20VAC5-314-10 et seq.) (20VAC5-314) ] of the Virginia Administrative Code.

[ "Commission" means the Virginia State Corporation Commission.

"Competitive service provider" means any entity, other than the utility, supplying electric energy service to the Interconnection Customer. ]

"Customer's interconnection facilities" means all the facilities and equipment owned, operated and maintained by the Interconnection Customer, between the Small Generating Facility and the point of interconnection necessary to physically and electrically interconnect the Small Generating Facility to the utility system.

[ "Commission means the Virginia State Corporation Commission. ]

"Default– The" means the failure of a breaching Party to cure its breach under the Small Generator Interconnection Agreement.

Distribution Company – The Utility that owns and/or operates the Distribution System located in Virginia to which the small generation facility proposes to interconnect its small generating facility.

"Distribution system– The Distribution Company's" means the utility's facilities and equipment used to transmit generally delivering electricity to ultimate usage points such as homes and industries directly from nearby generators or from interchanges with higher voltage transmission systems which transport bulk power over longer distances. The voltage levels at which distribution systems operate differ among areas customers from substations supplied by higher voltages (usually at transmission level). For purposes of this Agreement, all portions of the utility's transmission system regulated by the Commission for which interconnections are not within Federal Energy Regulatory Commission jurisdiction are considered also to be subject to Commission regulations.

"Distribution upgrades– The" means the additions, modifications, and upgrades to the Distribution Company's utility's distribution system at or beyond the point of interconnection necessary to facilitate abate problems on the utility's distribution system caused by the interconnection of the small generating facility and render the transmission service necessary to effect the Interconnection Customer's wholesale sale of electricity in interstate commerce Small Generating Facility. Distribution upgrades do not include customer's interconnection facilities or attachment facilities.

[ "Energy service provider" means any entity supplying electric energy service to the Interconnection Customer. ]

"Facilities study" has the meaning ascribed to it in the commission's regulations governing the interconnection of small generating facilities at 20VAC5-314-70 [ F E ].

"Feasibility study" has the meaning ascribed to it in the commission's regulations governing the interconnection of small generating facilities at 20VAC5-314-70 [ D C ].

"FERC" means the Federal Energy Regulatory Commission.

"Good Distribution Company Utility Practice– Any" means any of the practices, methods and acts engaged in or approved by a significant portion of the electric industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Distribution Company Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region.

"Governmental authority– Any" means any federal, state, local or other governmental regulatory or administrative agency, court, commission, department, board, or other governmental subdivision, legislature, rulemaking board, tribunal, or other governmental authority having jurisdiction over the Parties, their respective facilities, or the respective services they provide, and exercising or entitled to exercise any administrative, executive, police, or taxing authority or power; provided that such term does not include the Interconnection Customer, the interconnection provider, or any Affiliate thereof utility, or a utility affiliate.

"Interconnection Customer– Any" or "IC" means any entity, including the Distribution Company, the transmission owner or any of the affiliates or subsidiaries of either, that proposes to interconnect its small generating facility with the Distribution Company's transmission proposing to interconnect a new Small Generating Facility with the utility system.

Interconnection facilities – The Distribution Company's interconnection facilities and the Interconnection Customer's interconnection facilities. Collectively, interconnection facilities include all facilities and equipment between the small generating facility and the point of interconnection, including any modification, additions or upgrades that are necessary to physically and electrically interconnect the small generating facility to the Distribution Company's transmission system. Interconnection facilities are sole use facilities and shall not include distribution upgrades or system upgrades.

"Interconnection request– The Interconnection Customer's" means the IC's request, in accordance with [ the tariff Chapter 314 (20VAC5-314) of the Virginia Administrative Code ], to interconnect a new small generating facility Small [ General Generating ] Facility, or to increase the capacity of, or make a material modification to the operating characteristics of, an existing small generating facility Small Generating Facility that is interconnected with the Distribution Company's utility system.

"Interconnection studies" means the studies conducted by the utility, or a third party agreed to by the utility and the Interconnection Customer, in order to determine the interaction of the Small Generating Facility with the utility system and the affected systems in order to specify any modifications to the Small Generating Facility or the electric systems studied to ensure safe and reliable operation of the Small Generating Facility in parallel with the utility system.

"Material modification– A" means a modification that has a material impact on the cost or timing of any Interconnection Request with a later queue priority date.

System upgrades – Additions, modifications, and upgrades to the Distribution Company's distribution and transmission system required at or beyond the point at which the small generating facility interconnects with the system to accommodate the interconnection of the small generating facility with the Distribution Company's transmission system.

"Operating requirements– Any" means any operating and technical requirements that may be applicable due to Regional Transmission Organization, Independent System Operator regional transmission entity, independent system operator, control area, or the Distribution Company's utility's requirements, including those set forth in the Small Generator Interconnection Agreement.

"Party" or "Parties" – The Distribution Company means the utility, the Interconnection Customer or any combination of the above both.

"Point of interconnection– The" means the point where the customer's interconnection facilities connect with to the Distribution Company's transmission utility system.

Reasonable efforts – With respect to an action required to be attempted or taken by a Party under the Small Generator Interconnection Agreement, efforts that are timely and consistent with Good Distribution Company Practice and are otherwise substantially equivalent to those a Party would use to protect its own interests.

"Regional Transmission Entity" or "RTE" shall refer to an entity having the management and control of a utility's transmission system as further set forth in § 56-579 of the Code of Virginia.

"Small Generating Facility– The" or "generator" or "SGF" means the Interconnection Customer's device equipment for the production of electricity identified in the Interconnection Request, but shall not include the Interconnection Customer's interconnection facilities.

"Small Generator Interconnection Agreement" or "SGIA" means the agreement between the utility and the Interconnection Customer as set forth in Schedule 6 of [ 20VAC5-314-170 of the Commission's regulations governing interconnection of small electrical generators Chapter 314 (20VAC5-314) of the Virginia Administrative Code ].

"Supplemental review" has the meaning ascribed to it in the Commission's regulations governing the interconnection of small generating facilities at 20VAC5-314-70 [ E I ].

"System" or "utility system" means the distribution and transmission facilities owned, controlled, or operated by the utility that are used to deliver electricity.

"System impact study" has the meaning ascribed to it in the Commission's regulations governing the interconnection of small generating facilities at 20VAC5-314-70 [ E D ].

"Tariff– The" means the rates, terms and conditions filed by the utility with the State Corporation Commission for the purpose of providing commission-regulated Commission-regulated electric service to retail customers.

Upgrades – The required additions and modifications to the Distribution Company's distribution or transmission system at or beyond the point of interconnection. Upgrades do not include interconnection facilities.

"Transmission system" means the utility's facilities and equipment delivering electric energy to the distribution system, such facilities usually being operated at voltages above the utility's typical distribution system voltages.

"Utility" means the public utility company subject to regulation by the Commission pursuant to Chapter 10 (§ 56-232 et seq.) of Title 56 of the Code of Virginia with regard to rates and/or service quality to which the Interconnection Customer proposes to interconnect a Small Generating Facility.

Attachment 2 to

Schedule 5 6

Description and Costs of the Small Generating Facility, Customer's Interconnection Facilities, Attachment Facilities and Metering Equipment

Equipment, including the small generating facility, interconnection facilities, and metering equipment shall be itemized and identified as being The following shall be provided in this exhibit:

1. An itemization of the major equipment components owned by the Interconnection Customer or and the Distribution Company. The Distribution Company will provide a best estimate itemized cost, including overheads, of its interconnection facilities and metering equipment, and a best estimate itemized cost of the annual operation and maintenance expenses associated with its interconnection facilities and metering equipment utility, including components of the Small Generating Facility, the customer's interconnection facilities, attachment facilities, and metering equipment. Such itemization shall identify the owner of each item listed.

2. The utility's estimated itemized cost of its attachment facilities and its metering equipment.

3. The utility's estimated cost of its annual operation and maintenance expenses associated with attachment facilities and metering equipment to be charged to the Interconnection Customer.

Attachment 3 to

Schedule 5 6

Diagram to be provided by applicant

One-line Diagram Depicting the Small Generating Facility, Customer's Interconnection Facilities, Attachment Facilities, Metering Equipment, and Distribution Upgrades

(Diagram and description to be provided by Interconnection Customer [ unless the utility elects to prepare this schedule. If this schedule is prepared by the utility, the IC shall provide a one-line diagram of the SGF and IC's interconnection facilities for the utility to use as a data source for preparing this schedule. ] )

Attachment 4 to

Schedule 5 6

Milestones

In-Service Date:___________________

Critical milestones and responsibility as agreed to by the Parties:

Milestone/Date	Responsible Party
(1)______________________	___________________________
(2)______________________	___________________________
(3)______________________	___________________________
(4)______________________	___________________________
(5)______________________	___________________________
(6)______________________	___________________________
(7)______________________	___________________________
(8)______________________	___________________________
(9)______________________	___________________________
(10)_____________________	___________________________

Agreed to by:

For the Distribution Company Utility __________________ Date__________

For the Transmission Owner (If Applicable)_____________ Date__________

For the Interconnection Customer____________________ Date__________

Attachment 5 to

Schedule 5 6

Additional Operating Requirements for the Distribution Company's Utility System and Affected Systems Needed to Support the Interconnection Customer's Needs

The Distribution Company utility shall also provide requirements that must be met by the Interconnection Customer prior to initiating parallel operation with the Distribution Company's utility system.

Attachment 6 to

Schedule 5 6

Distribution Company's Utility's Description of its Distribution and Transmission Upgrades And Best and Estimate of Upgrade Costs

The Distribution Company shall describe upgrades and provide an itemized estimate of the cost, including overheads, of the upgrades and annual operation and maintenance expenses associated with such upgrades. The Distribution Company shall functionalize upgrade costs and annual expenses as either transmission or distribution related. utility shall provide the following in this attachment:

1. An itemized list of the upgrades required to be constructed by the utility prior to interconnection of the Small Generating Facility, with transmission and distribution related upgrades shown separately.

2. An estimate of the cost of each item listed pursuant to item 1.

3. An estimate of annual operation and maintenance expenses associated with such upgrades that are to be charged to the Interconnection Customer, shown separately for transmission and distribution related items.

[ Attestation ]

VA.R. Doc. No. R08-1147; Filed May 8, 2009, 1:29 p.m.