TITLE 20. PUBLIC UTILITIES AND TELECOMMUNICATIONS

STATE CORPORATION COMMISSION

Final Regulation

Title of Regulation: 20VAC5-314. Regulations Governing Interconnection of Small Electrical Generators and Storage (amending 20VAC5-314-10, 20VAC5-314-20, 20VAC5-314-38, 20VAC5-314-39, 20VAC5-314-70, 20VAC5-314-100, 20VAC5-314-150, 20VAC5-314-160, 20VAC5-314-170).

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

Effective Date: September 1, 2026.

Agency Contact: Mike Cizenski, Deputy Director, Division of Public Utility Regulation, State Corporation Commission, P.O. Box 1197, Richmond, VA 23218, telephone (804) 371-9441, or email mike.cizenski@scc.virginia.gov.

Summary:

The amendments (i) define "distributed energy resources" or "DER," (ii) specify treatment of material modifications to DER interconnection requests, (iii) modify the provisions for dispute resolution applicable to utilities and interconnecting generators, (iv) revise the insurance requirements applicable to DERs, (v) require DERs to follow cybersecurity standards, and (vi) revise schedules.

Changes to the proposed regulation include (i) refining the interconnection procedures for interdependent projects; (ii) clarifying when project downsizing, inverter, and transformer changes and certain energy storage modifications are not considered material modifications; and (iii) clarifying study and restudy procedures, missed deadline notifications, unresolved dispute reporting, and the administrative review of subsequent changes to utility technical interconnection and interoperability requirements.

AT RICHMOND, JUNE 30, 2026

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. PUR-2023-00069

Ex Parte: In the matter of revising

the Commission's Regulations Governing

Interconnection of Small Electrical Generators

and Storage

ORDER ADOPTING REGULATIONS

On May 8, 2009, the State Corporation Commission (Commission) adopted Regulations Governing Interconnection of Small Electrical Generators, 20VAC5-314-10 et seq. (Interconnection Regulations) in Case No. PUE-2008-00004.¹ The Commission initiated that rulemaking in accordance with Code § 56-578 C, which provides, in part:

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.

On July 29, 2020, in Case No. PUR-2018-00107, the Commission revised the Interconnection Regulations.²

On March 3, 2023, in Case No. PUR-2022-00073 - a docket initiated to explore interconnection issues related to utility distribution energy resources (DER) - the Commission determined it would be appropriate to initiate a rulemaking proceeding to examine potential changes to certain topics in the Interconnection Regulations.³

As a result, on May 2, 2023, the Commission issued an Order Initiating Rulemaking Proceeding in the present docket to determine whether the Commission's Interconnection Regulations should be revised. As part of its Order Initiating Rulemaking Proceeding, the Commission directed the Commission's Staff (Staff) to: (i) solicit comments from, and to schedule a meeting or meetings (as necessary) with, stakeholders and persons having an interest in the Commission's Interconnection Regulations and the interconnection of small electrical generators and storage in the Commonwealth of Virginia; (ii) consider whether amendments to the Interconnection Regulations on the topics addressed in Case No. PUR-2022-00073 are needed;⁴ (iii) develop, with appropriate input from stakeholders and interested persons, a proposal for any revisions, if necessary, to the current Interconnection Regulations; and (iv) prepare and file a report (Report) on its findings and recommendations in this proceeding.

On August 7, 2024, the Commission issued an Order in Case No. PUR-2022-00073 further directing Staff to consider as part of the present docket: (i) updating Schedules 7-9 in 20VAC5-314-170 to include a field specifying a completion date for each study; and (ii) implementing a requirement for utilities to notify developers of any missed study deadlines and provide a new expected deadline.⁵ The Commission also directed Staff to propose minimum filing requirements for a Technical Interconnection and Interoperability Requirements (TIIR) document related to the Institute of Electrical and Electronics Engineers (IEEE) Standard 1547.⁶

On January 21, 2025, Staff filed its Report. In its Report, Staff noted that in accordance with the Commission's directive, Staff solicited comments from interested persons regarding the topics addressed in PUR-2022-00073.⁷ Staff received written comments from Appalachian Power Company (APCo); Appalachian Voices; Dominion Energy Virginia (Dominion); East Point Energy; Kentucky Utilities/Old Dominion Power; Virginia Distributed Solar Alliance; and the Virginia Electric Cooperatives (Cooperatives).⁸ Staff also received joint comments from the Coalition for Community Solar Access (CCSA), the Solar Energy Industries Association, and the Chesapeake Solar and Storage Association. Staff stated in its Report that it convened working group meetings with interested participants on April 18, 2024, to discuss the comments received and to determine whether amendments to the Interconnection Regulations were necessary, and on May 21, 2024, to discuss cybersecurity. Sixty stakeholders attended the April 18, 2024 meeting, and 30 stakeholders were in attendance at the May 21, 2024 meeting.⁹ Based on the input received from the working group participants and commenters, Staff prepared proposed revisions to the Interconnection Regulations (Proposed Rules).

On April 15, 2025, the Commission issued an Order for Notice and Comment in this docket, which: (i) found that the Staff's Proposed Rules should be considered for adoption; (ii) directed that a copy of the Proposed Rules should be sent to the Registrar of Regulations for publication in the Virginia Register of Regulations; (iii) provided any interested person an opportunity to comment on, propose modifications or supplements to, or request a hearing on the Proposed Rules; (iv) and directed Staff to file a response to any comments, proposals, or requests for hearing submitted to the Commission on the Proposed Rules (Staff Response or Response).

Written comments were received from APCo (APCo Comments), Appalachian Voices (Appalachian Voices Comments), CCSA (CCSA Comments), Collaborative Utility Solutions (CUS Comments), Dominion (Dominion Comments), and the Cooperatives (Cooperatives Comments). No requests for a hearing were received. Staff filed its Response on July 16, 2025.

NOW THE COMMISSION, upon consideration of this matter, is of the opinion and finds that the revised regulations attached hereto as Appendix A should be adopted as final rules, as discussed herein. In developing these revised regulations, we have reviewed the Proposed Rules and considered and weighed all arguments and comments presented in this proceeding in support of each participant's requests.

Material Modifications

The Interconnection Regulations discuss the types of changes that are considered material modifications to an interconnection request.¹⁰ Several revisions to this section were included in the Proposed Rules.

First, regarding the downsizing of an interconnection request, we find as follows:

A one-time change reducing the maximum generating capacity of a facility by up to 75% will not be considered a material modification;¹¹

This one-time downsizing change will not be considered a material modification if it occurs at a point after the Feasibility Study, but before execution of the System Impact Study Agreement;¹²

If a developer elects to downsize, the Feasibility Study timeline should reset, providing utilities a 30-day window to complete a new study of the downsized project;¹³ and

For projects that proceed under a combined study agreement, a one-time downsizing of up to 10% will not be deemed a material modification.¹⁴

The Proposed Rules also amend when a change in the point of interconnection (POI) constitutes a material modification. Under the Proposed Rules, a change in POI to a new location constitutes a material modification, unless the new POI is within the same protection zone as the original location and the change in POI is agreeable to the utility. We find the proposed language on POI, including the addition of language that POI changes must be agreeable to the utility in order to be deemed non-material, to be reasonable.¹⁵ We concur with Staff that this language provides "necessary flexibility for utility discretion" and that concerns related to a perceived abuse of discretion may be addressed through the Interconnection Regulation's existing dispute resolution process.¹⁶

Next, the Interconnection Regulations currently state that any change in the direct current (DC) system configuration to include additional equipment that impacts the maximum generating capacity, daily production profile, or the proposed alternating current (AC) configuration of a facility or energy storage system constitutes a material modification.¹⁷ Dominion and Staff support leaving the current language unchanged at this time and recommend establishing a separate docket dedicated to addressing energy storage-related issues.¹⁸ In contrast, CCSA and Appalachian Voices oppose the existing restriction in 20VAC5-314-39 C that prevents changes to a facility's "daily production profile," arguing that this language unnecessarily precludes the addition of DC-coupled storage, even when AC export limits are unchanged.¹⁹ Appalachian Voices claims limiting energy storage to systems that included such storage in their original interconnection request is impractical, especially considering significant interconnection backlogs and the growing deployment of solar-plus-storage systems, and CCSA emphasizes the system benefits of expanded energy storage deployment.²⁰

We concur with CCSA and Appalachian Voices that greater flexibility for adding storage without triggering a material modification is appropriate for the reasons listed above. As such, we find that the addition of DC-coupled storage, when AC export limits are unchanged, shall not be considered a material modification.²¹

Next, the Interconnection Regulations currently provide that a change of transformer connections or grounding, or a change to certified inverters with different specifications or different inverter control specifications than originally proposed, represents a material modification to an interconnection request.22 CCSA proposes allowing a one-time equipment modification during the interconnection process, specifically at the stage when the Small Generator Interconnection Agreement (SGIA) is executed.23 CCSA notes that the time between submission of an initial interconnection application and the execution of an SGIA can span several years, during which time inverter models initially selected may be discontinued, increase significantly in cost, or become technologically outdated.24 Given that transformer design is closely tied to inverter selection, CCSA asserts that a change in inverter model will often require updates to transformer specifications as well.25 Conversely, Dominion and Staff recommend retaining the existing language regarding certified inverters as well as transformer connections and grounding.26

We concur with CCSA that given the continually evolving nature of inverter technology and the often significant time between submission of an initial interconnection request and the execution of an SGIA, a one-time modification in inverter and/or transformer design or specification, without such change being considered a material modification, is reasonable.27

Dispute Resolution Process

With regard to the dispute resolution process, we find as follows:

The proposal in the Proposed Rules to toll the specified time periods for an interconnection request during the period in which parties are engaged in a dispute resolution process is reasonable and is adopted;²⁸

Establishing an ombudsperson to participate in the dispute resolution process is unnecessary at this time, as the Interconnection Regulations already provide multiple procedures, including both informal and formal options, for the resolution of disputes;²⁹

If a dispute remains unresolved after 30 business days, the utility shall provide written notice to Staff.³⁰

DER Definitions

There is no disagreement amongst participants concerning the definitions for DERs and Energy Storage Systems included in the Proposed Rules. As such, those definitions are adopted.³¹

Cybersecurity Standards

Dominion, the Cooperatives, Appalachian Voices, APCo, and Staff all provided input on cybersecurity requirements for DER interconnections.³² There was general alignment between the commenters on the need for minimum cybersecurity standards, though differences on scope, implementation, and flexibility existed.³³ We find that, as set forth in the Proposed Rules, each utility shall establish its own utility-specific minimum cybersecurity standards that are based on, and are not in conflict with, nationally recognized guidelines, including but not limited to: (i) the IEEE Standard 1547.3 - Guide for Cybersecurity of Distributed Energy Resources Interconnected with Electric Power Systems (2023), and (ii) the National Association of Regulatory Utility Commissioners' Cybersecurity Baselines for Electric Distribution Systems and DERs.³⁴ We concur with Dominion that these national standards are appropriate sources for minimum cybersecurity requirements for interconnections at the distribution level, and that utilities should retain flexibility to implement more stringent standards if necessary.³⁵

We decline to change the language in the Proposed Rules to "based on, and not to materially exceed, nationally recognized guidelines," as suggested by Appalachian Voices.³⁶ We concur with Staff that the amendments to the Interconnection Regulations should not establish a ceiling that prevents a utility from developing effective security capabilities or hampers its ability to manage emerging cyber threats and vulnerabilities.³⁷ However, we do direct utilities to implement standards, to the extent possible, that are not unduly burdensome or costly for interconnection customers.³⁸

Finally, APCo asserts that developing and coordinating standards will take time and effort.³⁹ We find that utilities shall, within 18 months of the date of this Order, develop cybersecurity standards, including an associated implementation plan with milestones for interconnection customers to achieve compliance with the standards.⁴⁰

Updates to Schedules 7-9

The Proposed Rules include revisions to subsections C through E of 20VAC5-314-70 to require utilities to: (i) notify developers no later than five business days before a deadline if the utility anticipates missing the deadline; and (ii) provide the new expected completion date. Correspondingly, proposed changes to Schedules 7-9 in 20VAC5-314-170 added a completion date for each study. Dominion, Appalachian Voices, CCSA, and Staff all generally support these proposed revisions.⁴¹ Dominion, however, recommends amending the proposed language in subsections C through E of 20VAC5-314-70 to require utilities to "provide the new expected completion date to the extent the information is available."⁴² We adopt the revisions to 20VAC5-314-70 and 20VAC5-314-170, with Dominion's proposed change.

Appalachian Voices and CCSA support the inclusion of deadlines, but suggest that deadlines without enforcement are insufficient.⁴³ Appalachian Voices recommends financial penalties for missed interconnection study deadlines and CCSA recommends the adoption of a timeline enforcement mechanism (TEM) where utility performance is assessed based on the average time taken to process interconnection applications.⁴⁴ We decline to establish monetary penalties or establish a TEM at this time as part of the Interconnection Regulations.⁴⁵ However, we acknowledge the concerns raised by CCSA and Appalachian Voices. We note that certain utilities (collectively, "Phase I and Phase II Utilities) must file biennial reviews pursuant to Code § 56-585.1 A, which include a review of the utility's generating plant performance, customer service, and operating efficiency when setting the utility's rate of return on equity.⁴⁶ As such, parties are invited to bring evidence as to a Phase I or Phase II Utility's performance in this regard in a future biennial review proceeding.

TIIR

Participants generally support the creation of a TIIR document, though they differ on the scope of the document and the process for approving and updating the document.⁴⁷ With regard to TIIR requirements, we find as follows:

As supported by Dominion, the Cooperatives, CCSA and Staff, we find that every investor-owned electric utility and electric cooperative in the Commonwealth shall develop a utility-specific TIIR document that outlines key interconnection settings and protocols;⁴⁸

Each TIIR shall include, at a minimum: (i) voltage and frequency trip settings; (ii) frequency drop settings; (iii) activated reactive power control function and settings; (iv) voltage-active power mode activation and settings; (v) enter service settings; and (vi) communication protocols and port requirements.⁴⁹ A range of acceptable values may be included in a utility's TIIR document to address differences in location;⁵⁰

Each investor-owned electric utility and electric cooperative in the Commonwealth must submit a TIIR document to the Commission for approval,⁵¹ and, once approved, each shall make its TIIR document publicly available on its website;⁵²

Any subsequent changes to TIIR documents shall be submitted to Staff for administrative review. Staff shall review the proposed changes administratively; however, if any proposed change appears to be material, Staff shall subsequently recommend that a formal approval process, including an opportunity for comments from interested persons, be conducted;⁵³ and

Each investor-owned electric utility and electric cooperative must file their initial TIIR document within nine (9) months of the date of this Order. These TIIR documents shall be filed in the present docket.

Miscellaneous

Several additional matters were raised by commenters in this case.⁵⁴ While we have reviewed and considered the arguments and requests concerning these matters, we do not find that the Interconnection Regulations should be further amended at this time beyond the changes discussed above and included in Appendix A.

Accordingly, IT IS ORDERED THAT:

(1) The Regulations Governing Interconnection of Small Electrical Generators and Storage, as shown in Appendix A to this Order, are hereby adopted and are effective as of September 1, 2026.

(2) The Commission's Office of General Counsel forthwith shall send a copy of this Final Order and the attached regulations to the Registrar of Regulations for publication in the Virginia Register of Regulations.

(3) A copy of this Final Order and the attached regulations forthwith shall be posted on the website of the Division of Public Utility Regulation. In addition, the Staff of the Division of Public Utility Regulation shall email a copy of the Final Order and attached regulations to all persons and entities who participated in the workgroup meetings held to receive input on the regulations or filed comments in this docket.

(4) The Clerk of the Commission hereby is directed to serve a copy of the attached regulations on every investor-owned electric utility and electric cooperative in the Commonwealth, who shall forthwith thereafter notify all their interconnection customers.

(5) This case is continued.

A COPY hereof shall be sent electronically by the Clerk of the Commission to all persons on the official Service List in this matter and to all persons on the official Service List in Case No. PUR-2022-00073. The Service Lists are available from the Clerk of the Commission.

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

A. This chapter is promulgated pursuant to § 56-578 of the Virginia Electric Utility Regulation Act (§ 56-576 et seq. of the Code of Virginia). This chapter establishes standardized interconnection and operating requirements for the safe operation of electric generating facilities in Virginia. This chapter applies to utilities providing interconnections to retail electric customers, independently owned generators, and any other parties operating, or intending to operate, a distributed generating facility in parallel with utility systems. This chapter also applies to equipment used for the storage of electricity for later injection to utility systems. This chapter does not apply to customer generators operating pursuant to the 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).

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 in this chapter will be adjusted as necessary to satisfy the RTE's requirements with respect to such upgrades.

There are three review paths for the interconnection of generating facilities subject to this chapter in Virginia:

Level 1 - A request to interconnect a certified 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 SGF 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 an SGF not qualifying for the Level 1 process or Level 2 process, shall be evaluated under the Level 3 process.

The utility may place restrictions upon the interconnection of an SGF to a distribution feeder 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 interconnection customer (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 Virginia State Corporation Commission.

The utility shall designate an employee or office from which the IC may request information concerning the interconnection application process. The name, telephone number, and email address of such contact employee or office shall be made available on the utility's website. Readily available electric system information relevant to the location of the proposed SGF shall be provided to the IC upon request, in writing, and may include interconnection studies and any other relevant materials, to the extent such provision does not violate confidentiality provisions of prior agreements or release critical infrastructure 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 prior confidentiality agreement. If the information is proprietary or confidential and cannot be provided, the utility shall state as such. Any one developer shall have no more than five active informal requests for information at one time.

The utility shall make reasonable efforts to meet all timeframes provided in these regulations unless the utility and the IC agree to a different schedule. If the utility cannot meet a deadline provided in this chapter, it shall notify the IC in writing, 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.

Should an IC fail to meet a timeframe or default on another requirement under this chapter or fail to respond to a request for information from the utility, the utility shall also provide the IC written notice identifying the missed deadline or requirement and allow the IC an opportunity to cure on or before the close of business on the 10th business day following the posted date of such notice to cure, prior to the utility taking action to withdraw the IC's interconnection request.

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.

C. This chapter shall not apply to SGFs already interconnected as of October 15, 2020, unless:

1. The IC proposes a material modification; or

2. Application of this chapter is agreed to in writing by the utility and the IC.

D. This chapter shall apply if the IC has not actually interconnected the SGF as of October 15, 2020.

Any IC that has not executed an interconnection agreement with the utility prior to October 15, 2020, shall have 30 calendar days following the later of October 15, 2020, or the posted date of notice in writing from the utility to (i) demonstrate site control pursuant to Schedule 5 or 6 of 20VAC5-314-170; (ii) execute a combined study agreement as provided for in 20VAC5-314-70 or individual revised study agreements conforming with those set forth in Schedules 7, 8, and 9 of 20VAC5-314-170; and (iii) to post the deposit as specified in Schedule 6 of 20VAC5-314-170 minus any study costs previously paid.

Any IC that has executed an interconnection agreement with the utility prior to October 15, 2020, but where the utility has not actually interconnected the SGF or where the IC has not begun making payments, shall have 60 calendar days following the later of October 15, 2020, or the posted date of notice in writing from the utility to submit upgrade and interconnection facility payments (or financial security acceptable to the utility for attachment facilities and distribution upgrades) required pursuant to 20VAC5-314-50 F 2. Any amount previously paid by the IC at the time the deposit or payment is due under this subsection shall be credited toward the deposit amount or other payment required under this subsection.

Should an IC fail to comply with the provisions of this subsection following receipt of a written notice specifying how the IC failed to comply and the expiration of an opportunity to cure by the close of business on the 10th business day following the posted date of such notice to cure, the IC will lose its queue number and the interconnection request shall be deemed withdrawn.

E. Each SGF shall comply with IEEE 1547 Standard for Interconnection and Interoperability of Distributed Energy Resources with Associated Electric Power Systems Interfaces, 2018, and shall conform with the following minimum requirements:

1. Abnormal operating performance category: Category III capabilities must be supported for inverter-based SGFs. Rotating SGFs must meet Category I capabilities; and

2. Normal operating performance category: inverter-based SGFs must meet Category B capabilities and rotating SGFs must meet Category A capabilities.

F. Each utility shall post the utility's preferred settings in the utility's public-facing technical interconnection and interoperability requirements (TIIR) document. TIIR documents shall be submitted to the commission for approval with opportunity for public comment. Subsequent changes to TIIRs shall also be submitted to the [ commission Division of Public Utility Regulation ] for [ approval with opportunity for public comment administrative review ]. At a minimum, the following shall be identified in the TIIR documents: (i) voltage and frequency trip settings, (ii) frequency drop settings, (iii) activated reactive power control function and settings, (iv) voltage-active power mode activation and settings, (v) enter service settings, and (vi) communication protocols and ports requirements.

G. Each utility shall establish the utility's own utility-specific minimum cybersecurity standards based on, and not in conflict with, nationally recognized guidelines, including IEEE Standard 1547.3, Guide for Cybersecurity of Distributed Energy Resources Interconnected with Electric Power Systems, 2023, and the National Association of Regulatory Utility Commissioners' Cybersecurity Baselines for Electric Distribution Systems and DERs. These standards shall also include requirements for testing, validation, and auditing of the implemented cybersecurity measures. Each utility shall ensure these standards are publicly accessible by publishing these standards on the utility's respective websites.

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 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.

"Bulk power system" means any electric generation resources, transmission lines, interconnections with neighboring systems, and associated equipment.

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

"Calendar day" means Sunday through Saturday, including all holidays.

"Certified" has the meaning ascribed to it in Schedule 2 of 20VAC5-314-170.

"Commission" means the Virginia State Corporation Commission.

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

"Default" means the failure of a breaching party to cure its breach under the SGIA.

"Distribution system" means 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 this chapter, all portions of the utility's transmission system regulated by the commission for which interconnections are not within FERC jurisdiction are considered also to be subject to this chapter.

"Distributed energy resource" or "DER" means a source of electric power that is not directly connected to the bulk power system. A DER includes both generators and energy storage facilities operating in parallel to the distribution system and capable of exporting active power to an electric power system.

"Distribution upgrades" means the additions, modifications, and enhancements made to the utility's distribution system on the utility's side of the point of interconnection necessary to ensure continued system reliability and power quality on the utility's distribution system caused by the interconnection of the SGF. Distribution upgrades do not include network upgrades or the customer's interconnection facilities or the utility's attachment facilities.

"Electric power system" means a facility that delivers electric power to a load.

"Energy storage system" has the meaning ascribed to it in 20VAC5-335-20.

"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 that, 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 include 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 IC, the utility, or a utility affiliate.

"Interconnection customer" or "IC" means any entity proposing to interconnect a new small generating facility with the utility system.

"Interconnection request" means the IC's request, in accordance with 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 system.

"Interconnection studies" means the studies conducted by the utility, or, if agreed to by the utility and the IC, a third party supervised by the utility, 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.

"Interdependent customer" or "interdependent project" means an IC or project whose upgrades to the utility system or attachment facilities are impacted by another earlier-queued generating facility, as determined by the utility.

"Material modification" has the meaning ascribed to it in 20VAC5-314-39.

"Maximum generating capacity" means the maximum continuous electrical output of the SGF at any time as measured at the point of interconnection or the maximum kW delivered to the utility during any metering period, whichever is greater. Requested maximum generating capacity will be specified by the IC in the interconnection request and an approved maximum generating capacity will subsequently be included as a limitation in the interconnection agreement.

"Network upgrades" means additions, modifications, and enhancements to the utility's transmission system that are required in order to accommodate the interconnection of the small generating facility with the utility's system. Network upgrades do not include distribution upgrades.

"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 SGIA.

"Party" means the utility or the IC.

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

"Processing fee" means a nonrefundable cost to administer or file an application.

"Project A" means any interconnection request that is not interdependent with another interconnection request.

"Project B" means any interconnection request that is interdependent with only one other interconnection request and has a higher queue number than a designated Project A.

"Queue number" refers to the number assigned by the utility, establishing a customer's interconnection request position in the study queue relative to all other valid interconnection requests. A lower queue number will be studied prior to a higher queue number, except in the case of interdependent projects.

"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 "generating facility" or "generator" or "SGF" means the IC's equipment used for the production of electricity, as identified in the interconnection request.

"Small Generator Interconnection Agreement" or "SGIA" means the agreement between the utility and the IC as set forth in Schedule 10 of 20VAC5-314-170.

"Standby generating facility" means an electric generating facility primarily designed for standby or backup power in the event of a loss of power supply from the utility. Such facilities may operate in parallel with the utility for a brief period of time when transferring load back to the utility after an outage, or when testing the operation of the facility and transferring load from and back to the utility.

"Supplemental review" has the meaning ascribed to it in 20VAC5-314-60 H.

"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 in 20VAC5-314-70 D.

"System upgrades" means distribution upgrades and network upgrades collectively.

"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.

"Technical interconnection and interoperability requirements" or "TIIR" means the public documents, often utility specific, that include requirements for interconnection, interoperability, capabilities, their utilization (settings), and grid integration.

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

"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 or service quality, to whose system the IC proposes to interconnect a small generating facility.

20VAC5-314-38. Queue number and interdependent projects.

A. Queue number and queue position. The utility shall assign a queue number to an interconnection request based upon the date-stamp and time-stamp of receipt of a completed Interconnection Request Form by the utility. A later received Interconnection Request Form shall be assigned a higher numerical queue number than an earlier received Interconnection Request Form. The queue number and relative position of each interconnection request will be used to determine the cost responsibility for the upgrades necessary to accommodate the interconnection.

B. Interdependent projects.

1. Upon an IC's submission of an interconnection request for the 20VAC5-314-40 Level 1 interconnection process, 20VAC5-314-60 Level 2 interconnection process, or 20VAC5-314-70 Level 3 interconnection process, the utility shall review the interconnection request and make a preliminary determination of whether any interdependencies exist between the IC's proposed SGF and any other IC with a lower queue number. If the interconnection request is for a standby SGF with zero export, then the proposed SGF shall be studied as a Project A. For all other interconnections, any preliminary determination by the utility that the SGF does not create an interdependency will result in the interconnection request being preliminarily designated as a Project A, and the utility shall proceed immediately to either the 20VAC5-314-40, 20VAC5-314-60, or 20VAC5-314-70 Level 1, 2, or 3 study process, as applicable. At the 20VAC5-314-70 B scoping meeting, the utility shall advise the IC regarding its preliminary determination of whether interdependency would be created by the SGF. If no 20VAC5-314-70 B scoping meeting is scheduled, then the utility shall notify the IC in writing within five business days after making its preliminary determination of whether interdependency would be created by the SGF. If applicable, the Project A IC will pay the interconnection request study deposit required for the 20VAC5-314-70 Level 3 study process as identified in Schedule 6 of 20VAC5-314-170 in conjunction with the execution of the initial study agreement delivered by the utility pursuant to 20VAC5-314-70. An SGF preliminarily reviewed for system impacts and designated as a Project A may still be determined later to create an interdependency and may then be redesignated by the utility as an interdependent project during the 20VAC314-70 D system impact study process, thereby losing its Project A designation. Once the system impact study report is issued by the utility and the report designates an SGF as a Project A for purposes of the 20VAC314-70 E facilities study, the interconnection request shall retain this Project A designation during the facilities study, without change.

2. If the utility determines that the IC's proposed SGF is interdependent with one other interconnection request with a lower queue number (i.e., an earlier submitted interconnection request), the utility shall notify the IC in writing or at the 20VAC5-314-70 B scoping meeting that the interconnection request is designated as a Project B.

a. Following the 20VAC5-314-70 B scoping meeting, the Project B IC shall then have the option to either:

(1) Wait without further advancement of the interconnection request until Project A has executed a final interconnection agreement and begun making payments for any required upgrades, customer interconnection facilities, and other charges under 20VAC314-50 F. Under this option, Project B is not required to adhere to the timeline in 20VAC5-314-70 C until Project A has signed an SGIA and begun making payments or withdrawn its interconnection request; or

(2) Proceed Wait without further advancement of the interconnection request until Project A has received the [ Facilities System Impact ] Study Agreement pursuant to the 20VAC314-70 D system impact study process [ 10 1 ]. If the Project B IC chooses this option, the utility shall provide the Project B IC a Feasibility Study Agreement pursuant to 20VAC5-314-70 C or a System Impact Study Agreement pursuant to 20VAC5-314-70 D within 10 business days. If the Project B IC signs a [ System Impact Feasibility ] Study Agreement and pays the interconnection request study deposit pursuant to Schedule 6 of 20VAC5-314-170, the Project B shall receive a [ system impact feasibility ] study report that assumes the Project A interconnection request with the lower queue number completes construction and interconnection, and another [ system impact feasibility ] study report that assumes the Project A interconnect request with the lower queue number is not constructed and is withdrawn. [ Upon receipt of the feasibility study reports pursuant to 20VAC5-314-70 C or the determination that a feasibility study is not required, if the Project B IC signs a System Impact Study Agreement and pays the interconnection request study deposit pursuant to Schedule 6 of 20VAC5-314-170, the Project B shall receive a system impact study report that assumes the Project A interconnection request with the lower queue number completes construction and interconnection, and another system impact study report that assumes the Project A interconnect request with the lower queue number is not constructed and is withdrawn. ] The Project B IC is responsible for all costs for studying with and without Project A.

b. The utility shall not proceed to a Project B facilities study until after the Project B IC returns a signed Facilities Study Agreement to the utility and the utility has issued the 20VAC314-70 E facilities study report for Project A. Once the Project A facilities study report has been issued, the Project B IC shall then have the option to either:

(1) Wait without further advancement of the interconnection request until Project A has executed a final interconnection agreement and begun making payments for any required upgrades, customer interconnection facilities, and other charges under 20VAC314-50 F. Under this option, Project B is not required to adhere to the timeline in 20VAC5-314-70 E until Project A has signed an SGIA and begun making payments or withdrawn its interconnection request; or

(2) Proceed with a 20VAC314-70 E facilities study process. If the Project B IC chooses this option, the utility shall provide the Project B IC a Facilities Study Agreement pursuant to 20VAC5-314-70 E within 10 business days. If the Project B IC signs a Facilities Study Agreement prior to Project A committing to construction by signing the final interconnection agreement and beginning to make payments, then Project B's facilities study shall assume that the Project A interconnection request with the lower queue number will complete construction and interconnection. If Project A is later canceled prior to the Project A IC making payment for the required upgrades, the utility shall revise the Project B facilities study at the Project B IC's expense.

3. If the utility determines that the IC's proposed SGF is interdependent with more than one other interconnection request with a lower queue number (i.e., an earlier submitted interconnection request), the utility shall notify the IC at the 20VAC5-314-70 B scoping meeting and describe generally the number and type of interdependencies of interconnection requests with lower queue numbers.

a. The utility shall not study a project if it is interdependent with more than one earlier queued project. The utility will study a project when interdependency with only one earlier queued project exists. The removal of interdependency with multiple projects may be the result of (i) upgrades to the utility system that eliminate the cause of the interdependency, (ii) withdrawal of interdependent projects with lower queue numbers, or (iii) a lower queue number project signing an interconnection agreement and making payments identified in their SGIA.

b. Within five business days of an interconnection request becoming a Project B interconnection request that is interdependent with only one other interconnection request with a lower queue number, the utility shall schedule the 20VAC5-314-70 B scoping meeting and provide the new Project B IC the options specified in subdivision 2 a of this subsection. Upon being designated by the utility as a Project B, the IC's queue number shall be used to determine the order in which the interconnection request is studied under 20VAC314-70 D relative to all other interconnection requests.

C. Interconnection requests submitted prior to October 15, 2020. Other than as set forth in 20VAC5-314-10 C, nothing in this chapter affects an IC's queue number assigned before October 15, 2020. Interconnection requests that have received a system impact study report as of October 15, 2020, that did not identify any interdependency with another project shall be deemed a Project A. Any interconnection requests for which the utility has not completed the system impact study and issued a system impact study report (or combined study report, as applicable) to the IC as of October 15, 2020, shall be reviewed for interdependency pursuant to this section.

Should an IC fail to comply with 20VAC5-314-10 C following receipt of written notice specifying how the IC failed to comply and the expiration of an opportunity to cure by the close of business on the 10th business day following the posted date of such notice to cure, the IC shall lose its queue number and the interconnection request shall be deemed withdrawn.

20VAC5-314-39. Modification of the interconnection request.

A. As used in this chapter, "material modification" means a modification to machine data or equipment configuration or to the interconnection site of the SGF that has a material impact on the cost, timing, or design of any customer interconnection facilities or upgrades or that may adversely impact other interdependent interconnection requests with higher queue numbers. Material modifications include certain project revisions as defined in subsection B of this section, but exclude certain project revisions as defined in subsection C of this section.

B. Changes that qualify as material modifications are described as follows:

1. A change in point of interconnection to a new location, unless the change in a point of interconnection is on the same circuit less than two poles away from the original location, and the new point of interconnection is within the same protection zone as the original location and the change in the point of interconnection is agreeable to the utility;

2. A change or replacement of generating equipment, such as generators, inverters, transformers, relaying, or controls, that is not a like-kind substitution in size, ratings, impedances, efficiencies, or capabilities of the equipment specified in the original or preceding interconnection request [ , except as permitted under subsection C 4 of this section ];

3. A change from certified to noncertified devices ("Certified" means certified by an Occupational Safety and Health Administration recognized Nationally Recognized Test Laboratory, to relevant Underwriters Laboratories and Institute of Electrical and Electronics Engineers standards, authorized to perform tests to such standards.);

4. A change of transformer connections or grounding from that originally proposed [ , except as permitted under subdivision C 4 of this section ];

5. A change to certified inverters with different specifications or different inverter control specifications or set-up than originally proposed [ , except as permitted under subdivision C 4 of this section ];

6. An increase of the maximum generating capacity of an SGF; or

7. A change reducing the maximum generating capacity of the SGF (i) by more than 25% before the Feasibility Study Agreement or Combined Study Agreement has been executed the amount specified in subdivision C 3 of this section [ or, ] (ii) by more than 10% after the Feasibility Study Agreement or Combined Study Agreement has been executed through more than one request [ , or (iii) by more than 10% after the Combined Study Agreement has been executed ].

C. Changes that do not qualify as material modifications are described as follows:

1. A change in ownership of an SGF; the new owner, however, will be required to execute a new Interconnection Request Form and study agreements for any study that has not been completed and the report issued by the utility;

2. A change or replacement of generating equipment, such as generators, inverters, solar panels, transformers, relaying, or controls, that is a like-kind substitution in size, ratings, impedances, efficiencies, or capabilities of the equipment specified in the original or preceding interconnection request;

3. A one-time change reducing the maximum generating capacity of the SGF by up to 75% before the [ Facilities System Impact ] Study Agreement;

4. [ A one-time change of certified inverters and transformer design, provided that (i) the inverters remain UL 1741 certified, (ii) the change does not increase the maximum AC output capability of the generating facility, and (iii) any associated transformer specification changes are limited to those required to accommodate the updated inverter model;

5. ] An increase in the DC/AC ratio that does not increase the maximum AC output capability of the generating facility;

4. [ 5. 6. ] A decrease in the DC/AC ratio that does not reduce the AC output capability of the generating facility by more than the amount specified in [ subdivision subdivisions B 7 and ] C 3 of this section.

5. [ 6. 7. ] A change in the DC system configuration to include additional equipment that does not impact the maximum generating capacity [ , daily production profile, ] or the proposed AC configuration of the SGF or energy storage device system, including DC optimizers, DC-DC converters, DC charge controllers, powerplant controllers, and energy storage devices systems such that the output is delivered during the same periods and with the same profile considered during the system impact study.

D. To the extent an IC proposes to modify any information provided in the interconnection request deemed complete by the utility, the IC shall submit any such modifications to the utility in writing. If the utility determines that the proposed modifications constitute a material modification, the utility shall notify the IC in writing within 10 business days that the modification is a material modification, and the interconnection request shall be withdrawn from the queue unless the IC withdraws the proposed material modification within 10 business days of receipt of the utility's written notification. If the modification is determined by the utility not to be a material modification, then the utility shall notify the IC in writing that the modification has been accepted and that the IC shall retain its queue number. An IC may seek an informal determination from the utility of whether a proposed modification constitutes a material modification in accordance with subdivision E of this section.

E. Modification inquiry.

1. Prior to making any modification, the IC may submit an informal modification inquiry in writing that requests the utility to evaluate whether the proposed modifications to the original or most recent interconnection request is a material modification. The IC shall provide specific details on all changes that are to be considered by the utility.

2. In response to IC's informal request, if the utility evaluates the proposed modifications and determines that the changes are not material modifications, the utility shall inform the IC in writing within 10 business days. If the IC wishes to proceed with the proposed modifications, the IC shall submit a revised Interconnection Request Form that reflects the approved modifications.

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

A. The Level 3 interconnection process shall be used by an IC proposing to interconnect an SGF with the utility system if the SGF does not pass or qualify for the Level 1 or Level 2 interconnection processes. As needed, a scoping meeting, feasibility study, system impact study, and facilities study shall precede the preparation of an SGIA (Schedule 10 of 20VAC5-314-170). Any of the studies may be combined by mutual, written agreement of the parties along with payment of applicable interconnection study deposit, set forth in Schedule 6 of 20VAC5-314-170. Such agreement for a combined study shall, at a minimum, include milestones for completion. The combined study timeframes and fees shall not exceed the aggregate timeframes and fees of the individual studies as specified in this section. To maintain its position in the utility's interconnection queue, the IC must execute the agreement for combined study, return it to the utility, and pay the interconnection request study deposit set forth in Schedule 6 of 20VAC5-314-170 within 15 business days after receipt of the agreement. If the IC fails to return the executed agreement for combined study or make the full payment of the interconnection request study 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.

B. Scoping meeting.

1. The purpose of the scoping meeting is to discuss the interconnection request and the utility's preliminary interdependency determination. The parties shall discuss the studies potentially required to safely and reliably interconnect the IC to the utility's system, including the cost responsibilities for the studies.

2. A scoping meeting shall be held no later than 10 business days after the Interconnection Request Form is deemed complete or as otherwise mutually agreed to in writing by the parties. The utility and the IC shall bring to the meeting all resources as may be reasonably required to accomplish the purpose of the meeting, such as system engineers and other personnel.

3. The scoping meeting may be omitted by mutual, written agreement of the parties.

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 (Schedule 7 of 20VAC5-314-170), including an outline of the scope of the feasibility study and an estimate of the cost to perform the study, no later than 10 business days after the scoping meeting or 10 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 (Schedule 8 of 20VAC5-314-170) including an outline of the scope of the study and an estimate of the cost to perform the study no later than 10 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, return it to the utility, and pay the interconnection request study deposit set forth in Schedule 6 of 20VAC5-314-170 within 15 business days after receipt of the agreement. If the IC fails to return the executed Feasibility Study Agreement or make the full payment of the interconnection request study 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 feasibility study shall identify any potential adverse system impacts that would result from the interconnection of the SGF.

4. Feasibility study costs will be deducted from the interconnection request study deposit pursuant to Schedule 7 of 20VAC5-314-170.

5. The feasibility study shall be based on the technical information provided by the IC in the Interconnection Request Form, as may be modified as the result of the scoping meeting. The utility reserves the right to request additional technical information from the 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 modifications made to the interconnection request shall be made in writing to the utility. If the IC submits a modification to its interconnection request in writing and the utility determines the modification is not a material modification, the time to complete the feasibility study may be extended by mutual, written agreement of the parties.

6. In performing the feasibility study, the utility shall rely, to the extent reasonably practicable, on recent studies. The IC shall not be charged for such existing studies; however, the 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.

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 SGF:

a. Initial identification of any circuit breaker short circuit capability limits exceeded;

b. Initial identification of any thermal overload or voltage limit violations;

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

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

8. The feasibility study shall model the impact of the 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 IC later changes the purpose for which the SGF is being installed.

9. The feasibility study shall include a determination of the feasibility of all potential points of interconnection for an SGF at the specified site as requested by the IC and shall be at the IC's cost.

10. A feasibility study report shall be prepared and transmitted to the IC within 30 business days of the utility's receipt of the complete executed Feasibility Study Agreement and required deposit. If the utility expects to miss the 30-business-day deadline, the utility must notify the IC in writing at least five business days before the deadline and provide a new expected completion date [ to the extent the information is available ].

11. If the feasibility study shows no potential for adverse system impacts, then within 10 business days of the completion of the study, the utility shall send the IC either an SGIA (Schedule 10 of 20VAC5-314-170) or a Facilities Study Agreement (Schedule 9 of 20VAC5-314-170), including an outline of the scope of the facilities study and an estimate of the cost to perform the study.

12. If the feasibility study shows potential for adverse system impacts, [ the IC can request a one-time change reducing the maximum generating capacity according to the amount specified in 20VAC-5-314-39 C 3 or ] the review process shall proceed to the system impact study. [ The IC is responsible for all costs in the restudies required for the downsized SGF. If restudy is requested, the utility shall have an additional 30 business days to prepare and transmit the updated feasibility study report pursuant to 20VAC5-314-39 C 10. ]

D. System impact study.

1. No later than 10 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 (Schedule 8 of 20VAC5-314-170), 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, return it to the utility, and if applicable, pay the interconnection request study deposit set forth in Schedule 6 of 20VAC5-314-170 within 15 business days after receipt of the agreement. If the IC fails to return the executed System Impact Study Agreement or make the full payment of the applicable interconnection request study 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. System impact study costs will be deducted from the interconnection request study deposit pursuant to Schedule 8 of 20VAC5-314-170.

4. A system impact study shall identify and detail the electric system impacts that would result if the SGF were interconnected without project modifications or electric system modifications, including addressing any adverse electric system impacts identified in the feasibility study or in the scoping meeting. A system impact study shall evaluate the impact of the proposed interconnection on the reliability of the electric system.

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

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, grounding reviews, distribution load flow study, analysis of equipment interrupting ratings, protection coordination study, communications 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 would be required as a result of the interconnection 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 and the SGF must be at the same site.

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 utility has 20 additional business days to complete a system impact study requiring review by affected systems.

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 of this subdivision, 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 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 system.

9. A system impact study, if required, shall be completed and the results transmitted to the IC within 45 business days after the System Impact Study Agreement is signed by the parties. If the utility expects to miss the 45-business-day deadline, the utility must notify the IC in writing at least five business days before the deadline and provide a new expected completion date [ to the extent the information is available ].

10. If the system impact study shows that facility modifications are needed to accommodate the SGF, then within 10 business days following transmittal of the system impact study report, [ the IC may request a one-time change reducing the maximum generating capacity according to the amount specified in 20VAC5-314-39 C 3 or ] the utility shall send the IC a Facilities Study Agreement (Schedule 9 of 20VAC5-314-170), including an outline of the scope of the study and an estimate of the cost to perform the study. [ The IC is responsible for all costs for the restudies required for the downsized SGF. ]

E. Facilities study.

1. 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 impact study or system impact study and to allow the SGF to be interconnected and operate safely and reliably.

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 and, if applicable, pay the interconnection request study deposit set forth in Schedule 6 of 20VAC5-314-170 within 30 business days after receipt of the agreement, unless an extension has been agreed to in writing 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. Facilities study costs will be deducted from the interconnection request deposit pursuant to Schedule 9 of 20VAC5-314-170.

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

5. The facilities study shall identify (i) the electrical switching configuration of the equipment, including transformer, switchgear, meters, and other station equipment; (ii) the nature and estimated cost of the 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.

6. The utility may propose to group facilities required for more than one IC in order to minimize facilities costs through economies of scale, but any IC may direct the utility to install those facilities required for only the IC's own SGF if it pays the costs of those facilities.

7. In cases where system upgrades are required, the utility shall transmit the facilities study report within 45 business days after receipt of the completed Facilities Study Agreement. In cases where no system upgrades are necessary and the required facilities are limited to the IC's interconnection facilities and attachment facilities only, the utility shall transmit the facilities study report within 30 business days after receipt of the completed Facilities Study Agreement. If the utility expects to miss the 45-business-day or 30-business-day deadline, the utility must notify the IC in writing at least five business days before the deadline and provide a new expected completion date [ to the extent the information is available ].

F. Construction planning meeting.

1. Within 15 business days of receipt of the report for the final study (i.e., the facilities study or, if applicable, a combined study that satisfies all study requirements), the IC shall request a construction planning meeting where failure to comply shall result in the interconnection request being deemed withdrawn. The construction planning meeting request shall be in writing and shall include the IC's reasonably requested date for completion of the construction of the customer's interconnection facilities and upgrades.

2. The construction planning meeting shall be scheduled within 15 business days of the request from the IC as stated in subdivision F 1 of this section, or as otherwise mutually agreed to in writing by the parties.

3. The purpose of the construction planning meeting is to identify the tasks for each party and discuss and determine the milestones for the construction of the system upgrades and attachment facilities. Agreed upon milestones shall be specific as to scope of action, responsible party, and dates of deliverables and shall be recorded in the SGIA (see Schedule 10 of 20VAC5-314-170) to be provided to the IC.

G. Small Generator Interconnection Agreement. No later than 10 business days after the construction planning meeting, the utility shall provide the IC an executable SGIA as set forth in 20VAC5-314-50 F (Schedule 10 of 20VAC5-314-170).

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. 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 Division of Public Utility Regulation where the matter will be handled as an informal 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 shall conduct all negotiations in good faith and shall be responsible for one-half of any costs paid to neutral third parties.

D. If 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.

E. The specified time periods for the interconnection request shall be tolled during the period in which the parties are engaged in any of the dispute resolution processes described in this section. Tolling shall commence upon the initiation of a dispute resolution process and shall end upon the termination of such process. This tolling ensures that neither party is prejudiced by the time taken to resolve the dispute through informal or formal mechanisms. If the dispute remains unresolved after [ 20 30 ] business days, the utility shall provide a written notice to commission staff at the Division of Public Utility Regulation.

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

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

B. If the interconnection request is for a facility that includes multiple energy production or energy storage devices systems at a site for which the IC seeks a single point of interconnection, the interconnection request shall be evaluated on the basis of the maximum generating capacity of the facility.

C. The interconnection request shall be evaluated using the maximum capacity that the SGF is capable of injecting into the utility's electric system. However, if the maximum generating capacity that the SGF is capable of injecting into the utility's electric system is limited (e.g., through use of a control system, power relays, or other similar device settings or adjustments), then the IC must obtain the utility's agreement, with such agreement not to be unreasonably withheld, that the manner in which the IC proposes to implement such a limit will not adversely affect the safety and reliability of the utility's system. If the utility does not so agree, then the interconnection request must be withdrawn or revised to specify the maximum capacity that the SGF is capable of injecting into the utility's electric system without such limitations. Nothing in this section shall prevent a utility from considering an output higher than the limited output, if appropriate, when evaluating system protection impacts.

20VAC5-314-160. Insurance, liability, and indemnification.

A. For an SGF 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 $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 an SGF with a rated capacity 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 $2 million for each occurrence.

An IC of sufficient creditworthiness, as determined by the utility, may propose to provide this insurance via a self-insurance program if it has a self-insurance program established in accordance with commercially acceptable risk management practices, and such a proposal shall not be reasonably rejected.

B. Certificates of insurance evidencing the requisite coverage and provision shall be furnished to the utility prior to the date of interconnection of the SGF, as required by the utility. The utility shall be permitted to periodically obtain proof of current insurance coverage from the IC in order to verify continuing proper liability insurance coverage. The utility reserves the right to refuse to commence or continue interconnected operations unless evidence is provided that required insurance coverage is in effect at all times.

C. Utility and IC liability to the other party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney fees, relating to or arising from any act or omission pursuant to this chapter 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, incidental, consequential, or punitive damages of any kind.

D. The utility and the IC shall at all times indemnify, defend, and save the other party harmless from any damages; losses; claims, including claims and actions relating to injury 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 inaction of its obligations pursuant to this chapter on behalf of the indemnifying party, except in cases of gross negligence or intentional wrongdoing by the indemnified party.

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

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

Schedule 7

LEVEL 3 FEASIBILITY STUDY AGREEMENT FOR SMALL GENERATING FACILITIES

This Agreement is made and entered into this _____day of ________20___ by and between_____________________________________________________________, a ____________________________organized and existing under the laws of the state of __________________________________________, ("Interconnection Customer,") and ____________________________________, a________________existing under the laws of the state of____________________________________, ("Utility"). Interconnection Customer and Utility each may be referred to as a "Party" or collectively as the "Parties."

RECITALS

WHEREAS, Interconnection Customer is proposing to develop an SGF or generating capacity addition to an existing SGF consistent with the interconnection request completed by Interconnection Customer on_________________________; and

WHEREAS, Interconnection Customer desires to interconnect the SGF with the Utility's system; and

WHEREAS, Interconnection Customer has requested the Utility to perform a feasibility study to assess the feasibility of interconnecting the proposed SGF with the Utility's system, and of any affected systems;

NOW, THEREFORE, in consideration of and subject to the mutual covenants contained in this Agreement the Parties agreed as follows:

1.0 The terms defined in Schedule 1 of 20VAC5-314-170 shall apply to this Schedule 7 of 20VAC 5-314-170.

2.0 The Interconnection Customer elects and the Utility shall cause to be performed an interconnection feasibility study consistent with the standard small generator interconnection procedures.

3.0 The scope of the feasibility study shall be subject to the assumptions set forth in Attachment A to this Agreement.

4.0 Feasibility study costs will be deducted from the interconnection request study deposit, as set forth in Schedule 6 of 20VAC5-314-170.

4.1 Study cost shall be the Utility's actual incremental costs and will be invoiced to the Interconnection Customer no later than 60 business days after the study is completed and delivered and will include a summary of professional time. Actual study costs may be reconciled during the final accounting process described in Article 6 of the Interconnection Agreement, as applicable.

4.2 The Interconnection Customer shall pay any study costs that exceed the deposit within 20 business 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 20 business days of the invoice without interest unless additional studies are required.

5.0 The feasibility study shall be based on the technical information provided by the Interconnection Customer in the interconnection request, as may be modified as the result of the scoping meeting. The Utility reserves the right to request additional technical information from the Interconnection Customer 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. If the information requested by the Utility is not provided by the Interconnection Customer within a reasonable timeframe to be identified by the Utility in writing, the Utility shall provide the Interconnection Customer written notice providing an opportunity to cure such failure by the close of business on the 10th business day following the posted date of such notice, where failure to provide the information requested within this period shall result in the study being terminated and the interconnection request being deemed withdrawn. The period of time for the Utility to complete the feasibility study shall be tolled during any period that the Utility has requested information in writing from the Interconnection Customer necessary to complete the study and such request is outstanding.

6.0 In performing the study, the Utility shall rely, to the extent reasonably practicable, on recent studies. The Interconnection Customer shall not be charged for such existing studies; however, the Interconnection Customer shall be responsible for charges associated with any new study or modifications to existing studies that are reasonably necessary to perform the feasibility study.

7.0 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 SGF as proposed:

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

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

7.3 Initial review of grounding requirements and electric system protection; and

7.4 Description and nonbinding estimated cost of facilities required to interconnect the proposed SGF and to address the identified short circuit and power flow issues.

8.0 The feasibility study shall model the impact of the 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 later changes the purpose for which the SGF is being installed.

9.0 The study shall include the feasibility of all potential points of interconnection as requested by the Interconnection Customer and at the Interconnection Customer's cost.

10.0 A feasibility study report shall be prepared and transmitted to the Interconnection Customer within 30 business days of the Utility's receipt of the complete executed feasibility study agreement and required deposit. If the Utility expects to miss the 30-business-day deadline, it must notify the Interconnection Customer in writing at least five business days before the deadline and provide a new expected completion date [ to the extent the information is available ].

11.0 If the feasibility study shows no potential for adverse system impacts, then within 10 business days, the Utility shall send the Interconnection Customer either an executable Small Generator Interconnection Agreement (Schedule 10 of 20VAC5-314-170) or a Facilities Study Agreement, including an outline of the scope of the study.

12.0 If the feasibility study shows potential for adverse system impacts, the review process shall proceed to the system impact study.

13.0 Governing 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 Commonwealth 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.

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

15.0 No 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 in this Agreement assumed are solely for the use and benefit of the Parties, their successors in interest and where permitted, their assigns.

16.0 Waiver.

16.1 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 duty imposed upon such Party.

16.2 Any waiver at any time by either Party of its rights with respect to this Agreement shall not be deemed 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 an Interconnection Customer shall not constitute a waiver of the Interconnection Customer's legal rights to obtain an interconnection from the Utility. Any waiver of this Agreement shall, if requested, be provided in writing.

17.0 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 that constitute any part of the consideration for, or any condition to, either Party's compliance with its obligations under this Agreement.

18.0 Multiple 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.

19.0 No 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.

20.0 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.

21.0 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.

21.1 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; provided that in no event shall the Utility be liable for the actions or inactions of the Interconnection Customer or its subcontractors with respect to obligations of the Interconnection Customer 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.

21.2 The obligations under this Section 21.0 of this Agreement will not be limited in any way by any limitation of subcontractor's insurance.

22.0 Reservation of rights. The Utility shall have the right to make a unilateral filing with the State Corporation Commission to modify this Agreement with respect to any rates, terms, and conditions, charges, or classifications of service, and the Interconnection Customer shall have the right to make a unilateral filing with the State Corporation Commission to modify this Agreement; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the State Corporation Commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties except to the extent that the Parties otherwise agree as provided in this Agreement.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their duly authorized officers or agents on the day and year of this Agreement.

(Insert name of Utility) (Insert name of Interconnection Customer)

________________________________ ________________________________

Signed: _________________________ Signed:__________________________

Name (Printed): Name (Printed):

________________________________ _________________

Title: ___________________________ Title: ____________________________

Feasibility Study Due Date: ______________________________________

Attachment A to Schedule 7

Feasibility Study Agreement

Assumptions Used in Conducting the Feasibility Study

The feasibility study will be based upon the information set forth in the interconnection request and agreed upon in the scoping meeting held on _____________________:

1. Designation of point of interconnection and configuration to be studied.

2. Designation of alternative points of interconnection and configuration.

Questions 1 and 2 are to be completed by the Interconnection Customer. Any other assumptions are to be provided by the Interconnection Customer and the Utility.

_____________________________________________________________

_____________________________________________________________

Schedule 8

LEVEL 3 SYSTEM IMPACT STUDY AGREEMENT FOR SMALL GENERATING FACILITIES

This Agreement is made and entered into this _____day of___________________20_______by and between______________________ ____________________________________________________________________, a ___________________________ organized and existing under the laws of the state of__________________________________________, ("Interconnection Customer,") and__________________________________________, a_________________existing under the laws of the state of________, ("Utility"). Interconnection Customer and Utility each may be referred to as a "Party," or collectively as the "Parties."

RECITALS

WHEREAS, the Interconnection Customer is proposing to develop an SGF or generating capacity addition to an existing SGF consistent with the interconnection request completed by the Interconnection Customer on______________________; and

WHEREAS, the Interconnection Customer desires to interconnect the SGF with the Utility's system; and

WHEREAS, the Utility has completed a feasibility study and provided the results of said study to the Interconnection Customer (This recital to be omitted if the Parties have agreed to forgo the feasibility study.); and

WHEREAS, the Interconnection Customer has requested the Utility to perform a system impact study to assess the impact of interconnecting the SGF with the Utility's system, and of any affected systems;

NOW, THEREFORE, in consideration of and subject to the mutual covenants contained in this Agreement the Parties agreed as follows:

1.0 The terms defined in Schedule 1 of 20VAC5-314-170 shall apply to this Schedule 8 of 20VAC 5-314-170.

2.0 The Interconnection Customer elects and the Utility shall cause to be performed a system impact study consistent with the standard small generator interconnection procedures.

3.0 System impact study costs will be deducted from the interconnection request study deposit as set forth in Schedule 6 of 20VAC5-314-170.

3.1 Study cost shall be the Utility's actual incremental costs and will be invoiced to the Interconnection Customer no later than 60 business days after the study is completed and delivered and will include a summary of professional time. Actual study costs may be reconciled during the final accounting process described in Article 6 of the Interconnection Agreement, as applicable.

3.2 The Interconnection Customer shall pay any study costs that exceed the deposit within 20 business 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 20 business days of the invoice without interest unless additional studies are required.

4.0 A system impact study shall identify and detail the electric system impacts that would result if the SGF were interconnected without project modifications or electric system modifications, focusing on the adverse electric system impacts identified in the feasibility study or in the scoping meeting. A system impact study shall evaluate the impact of the proposed interconnection on the reliability of the electric system.

5.0 A system impact study will be based upon the results of the feasibility study and the technical information provided by Interconnection Customer in the interconnection request. The Utility reserves the right to request additional technical information from the Interconnection Customer as may reasonably become necessary consistent with Good Utility Practice during the course of the system impact study. If the information requested by the Utility is not provided by the Interconnection Customer within a reasonable timeframe to be identified by the Utility in writing, the Utility shall provide the Interconnection Customer written notice providing an opportunity to cure such failure by the close of business on the 10th business day following the posted date of such notice, where failure to provide the information requested within this period shall result in the study being terminated, and the interconnection request being deemed withdrawn. The period of time for the Utility to complete the system impact study shall be tolled during any period that the Utility has requested information in writing from the Interconnection Customer necessary to complete the study and such request is outstanding.

6.0 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, 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 would be required as a result of the interconnection 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 Interconnection Customer'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 Interconnection Customer specified as the proposed point of interconnection.

7.0 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 Utility has 20 additional business days to complete a system impact study requiring review by affected systems.

8.0 If the Utility uses a queuing procedure for sorting or prioritizing projects and associated cost responsibilities for any required network upgrades, the system impact study shall consider all generating facilities (and with respect to Section 8.3 of this Agreement, any identified upgrades associated with such higher queued interconnection) that, on the date the system impact study is commenced:

8.1 Are directly interconnected with the Utility's system; or

8.2 Are interconnected with affected systems and may have an impact on the proposed interconnection; and

8.3 Have a pending higher queued interconnection request to interconnect with the Utility's system.

9.0 A system impact study, if required, shall be completed and the results transmitted to the Interconnection Customer within 45 business days after this Agreement is signed by the Parties or in accordance with the Utility's queuing procedures. If the Utility expects to miss the 45-business-day deadline, it must notify the Interconnection Customer in writing at least five business days before the deadline and provide a new expected completion date [ to the extent the information is available ].

10.0 If the system impact study shows that facility modifications are needed to accommodate the SGF, then within 10 business days following transmittal of the system impact study report, the Utility shall send the Interconnection Customer a Facilities Study Agreement, including an outline of the scope of the study.

11.0 Governing 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 Commonwealth 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.

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

13.0 No 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 pursuant to this Agreement assumed are solely for the use and benefit of the Parties, their successors in interest, and where permitted, their assigns.

14.0 Waiver.

14.1 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 duty imposed upon such Party.

14.2 Any waiver at any time by either Party of its rights with respect to this Agreement shall not be deemed 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 Interconnection Customer shall not constitute a waiver of the Interconnection Customer's legal rights to obtain an interconnection from the Utility. Any waiver of this Agreement shall if requested, be provided in writing.

15.0 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 that constitute any part of the consideration for, or any condition to, either Party's compliance with its obligations under this Agreement.

16.0 Multiple 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.

17.0 No 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.

18.0 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.

19.0 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.

19.1 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; provided that in no event shall the Utility be liable for the actions or inactions of the Interconnection Customer or its subcontractors with respect to obligations of the Interconnection Customer 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.

19.2 The obligations under this Section 19.0 of this Agreement will not be limited in any way by any limitation of subcontractor's insurance.

20.0 Reservation of rights. The Utility shall have the right to make a unilateral filing with the State Corporation Commission to modify this Agreement with respect to any rates, terms and conditions, charges, or classifications of service, and the Interconnection Customer shall have the right to make a unilateral filing with the State Corporation Commission to modify this Agreement; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the State Corporation Commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties except to the extent that the Parties otherwise agree as provided in this Agreement.

IN WITNESS THEREOF, the Parties have caused this Agreement to be duly executed by their duly authorized officers or agents on the day and year of this Agreement.

(Insert name of Utility) (Insert name of Interconnection Customer)

___________________________________________________________________

Signed: _________________________ Signed: ____________________________

Name (Printed): Name (Printed):

__________________________________ ______________________________

Title: ______________________________ Title: __________________________

System Impact Study Due Date: __________________________

Schedule 9

LEVEL 3 FACILITIES STUDY AGREEMENT FOR SMALL GENERATING FACILITIES

This Agreement is made and entered into this _____day of______________20___ by and between________________________________________________________, a ____________________________organized and existing under the laws of the state of____________________________________________, ("Interconnection Customer,") and________________________________________________________________, a__________________existing under the laws of the state of____________________________________________________________, ("Utility"). Interconnection Customer and Utility each may be referred to as a "Party," or collectively as the "Parties."

RECITALS

WHEREAS, the Interconnection Customer is proposing to develop an SGF or generating capacity addition to an existing SGF consistent with the interconnection request completed by the Interconnection Customer on______________________; and

WHEREAS, the Interconnection Customer desires to interconnect the SGF with the Utility's system; and

WHEREAS, the Utility has completed a system impact study and provided the results of the study to the Interconnection Customer; and

WHEREAS, the Interconnection Customer has requested the Utility to perform a facilities study to specify and estimate the cost of the equipment, engineering, procurement, and construction work needed to implement the conclusions of the system impact study in accordance with Good Utility Practice to physically and electrically connect the SGF with the Utility's system.

NOW, THEREFORE, in consideration of and subject to the mutual covenants contained in this Agreement the Parties agreed as follows:

1.0 The terms defined in Schedule 1 of 20VAC5-314-170 shall apply to this Schedule 9 of 20VAC 5-314-170.

2.0 The Interconnection Customer elects and the Utility shall cause a facilities study consistent with the standard small generator interconnection procedures.

3.0 The scope of the facilities study shall be subject to data provided in Attachment A to this Agreement.

4.0 The facilities study shall specify and estimate the cost of the equipment, engineering, procurement, and construction work needed to implement the conclusions of the feasibility study or system impact study and to allow the SGF to be interconnected and operate safely and reliably.

5.0 Facilities study costs will be deducted from the interconnection request study deposit, as set forth in Schedule 6 of 20VAC5-314-170.

5.1 Study cost shall be the Utility's actual incremental costs and will be invoiced to the Interconnection Customer no later than 60 business days after the study is completed and delivered and will include a summary of professional time. Actual study costs may be reconciled during the final accounting process described in Article 6 of the Interconnection Agreement, as applicable.

5.2 The Interconnection Customer shall pay any study costs that exceed the deposit within 20 business 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 20 business days of the invoice without interest.

6.0 Design for any required customer's interconnection facilities, attachment facilities, or distribution upgrades shall be performed under the facilities study. The Utility may contract with consultants to perform activities required under the facilities study. The Interconnection Customer and the Utility may agree to allow the Interconnection Customer to separately arrange for the design of some of the customer's interconnection facilities. In such cases, facilities design will be reviewed or modified prior to acceptance by the Utility, under the provisions of the facilities study. 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 in accordance with confidentiality and critical infrastructure requirements, to permit the Interconnection Customer to obtain an independent design and cost estimate for any necessary facilities.

7.0 The facilities study shall also identify (i) the electrical switching configuration of the equipment, including transformer, switchgear, meters, and other station equipment; (ii) the nature and estimated cost of the 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.

8.0 The Utility may propose to group facilities required for more than one Interconnection Customer in order to minimize facilities costs through economies of scale, but any Interconnection Customer may require the installation of facilities required for its own SGF if it is willing to pay the costs of those facilities.

9.0 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 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 this Agreement and the deposit. The Utility reserves the right to request additional technical information from the Interconnection Customer as may reasonably become necessary consistent with Good Utility Practice during the course of the facilities study. If the information requested by the Utility is not provided by the Interconnection Customer within a reasonable timeframe to be identified by the Utility in writing, the Utility shall provide the Interconnection Customer written notice providing an opportunity to cure such failure by the close of business on the 10th business day following the posted date of such notice, where failure to provide the information requested within this period shall result in the study being terminated, and the interconnection request being deemed withdrawn. The period of time for the Utility to complete the facilities study shall be tolled during any period that the Utility has requested information in writing from the Interconnection Customer necessary to complete the study and such request is outstanding. If the Utility expects to miss the 45-business-day or 30-business-day deadline, it must notify the Interconnection Customer in writing at least five business days before the deadline and provide a new expected completion date [ to the extent the information is available ].

10.0 Governing 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 Commonwealth 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.

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

12.0 No 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 assumed in this Agreement are solely for the use and benefit of the Parties, their successors in interest and where permitted, their assigns.

13.0 Waiver.

13.1 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 duty imposed upon such Party.

13.2 Any waiver at any time by either Party of its rights with respect to this Agreement shall not be deemed 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 legal rights to obtain an interconnection from the Utility. Any waiver of this Agreement shall, if requested, be provided in writing.

14.0 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 that constitute any part of the consideration for, or any condition to, either Party's compliance with its obligations under this Agreement.

15.0 Multiple 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.

16.0 No 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.

17.0 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.

18.0 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.

18.1 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; provided that in no event shall the Utility be liable for the actions or inactions of the Interconnection Customer or its subcontractors with respect to obligations of the Interconnection Customer 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.

18.2 The obligations under this Section 18.0 of this Agreement will not be limited in any way by any limitation of subcontractor's insurance.

19.0 Reservation of rights. The Utility shall have the right to make a unilateral filing with the State Corporation Commission to modify this Agreement with respect to any rates, terms and conditions, charges, or classifications of service, and the Interconnection Customer shall have the right to make a unilateral filing with the State Corporation Commission to modify this Agreement; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the State Corporation Commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties except to the extent that the Parties otherwise agree as provided in this Agreement.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their duly authorized officers or agents on the day and year of this Agreement.

(Insert name of Utility) (Insert name of Interconnection Customer)

___________________________________ _________________________________

Signed______________________________ Signed___________________________

Name (Printed): Name (Printed):

___________________________________ ______________________________

Title_______________________________ Title___________________________

Facilities Study Due Date: ______________________

Attachment A to Schedule 9

Facilities Study Agreement

Data to Be Provided by the Interconnection Customer with the Facilities Study Agreement

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.

5. State the type of control system or programmable logic controller (PLC) that will be located at the SGF.

____________________________________________________________________________________________________________________________

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.

9. State the physical dimensions of the proposed interconnection station.

____________________________________________________________________________________________________________________________

10. State the bus length from generation to interconnection station.

____________________________________________________________________________________________________________________________

11. Provide a diagram or description of the point of interconnection desired by the Interconnection Customer that is to be the point of interconnection in the system impact study report.

____________________________________________________________________________________________________________________________

12. State the line length from interconnection station to Utility system.

____________________________________________________________________________________________________________________________

13. State the pole or tower number observed in the field affixed to the pole or tower leg.

____________________________________________________________________________________________________________________________

14. State the number of third-party easements required for distribution or transmission lines.

____________________________________________________________________________________________________________________________

15. Provide the following proposed schedule dates:

a. Date Interconnection Customer to begin construction: ___________________

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

c. Date Interconnection Customer will test SGF: ______________________

d. Date Interconnection Customer will place SGF into commercial operation: ______________________

DOCUMENTS INCORPORATED BY REFERENCE (20VAC5-314)

IEEE Standard for Interconnection and Interoperability of Distributed Energy Resources with Associated Electric Power Systems Interfaces, The Institute of Electrical and Electronics Engineers, Inc., Standard 1547, 2018.

IEEE Standard Conformance Test Procedures for Equipment Interconnecting Distributed Resources with Electric Power Systems, The Institute of Electrical and Electronics Engineers, Inc., Standard 1547.1, July 1, 2005.

IEEE Standard 1547.3, Guide for Cybersecurity of Distributed Energy Resources Interconnected with Electric Power Systems, June 5, 2023

National Association of Regulatory Utility Commissioners Cybersecurity Baselines for Electric Distribution Systems and DER, February 2024