Commission Issues Standard Rule For Small Generator
Interconnection; Action Will Facilitate
Needed Infrastructure Development
The Federal Energy Regulatory Commission today issued standard procedures
for the interconnection of generators no larger than 20 megawatts - a
move that removes barriers to the development of needed infrastructure
by reducing interconnection uncertainty, time and costs. In light
of the importance of the rulemaking, the Commission has designated
it as Order No. 2006.
Today's rule will help preserve grid reliability, increase energy
supply, and lower wholesale electric costs for customers by increasing
the number and types of new generators available in the electric
market, including development of non-polluting alternative energy
resources, the Commission said.
The rule reflects input from a broad-based group of utilities, small
generators, state commission representatives, and other interested
entities who came together to recommend a unified approach to small
generator interconnection. This rule reflects many of these consensus
positions as well as those of the National Association of Regulatory
Utility Commissioners (NARUC). The rule harmonizes state and federal
practices by adopting many of the best interconnection practices
recommended by NARUC. It should help promote consistent, nationwide
interconnection rules for small generators, the Commission said.
FERC Chairman Pat Wood, III said: "Today's rule takes us a step
closer to truly non-discriminatory, competitive bulk power markets.
Advances in technology have led to a growing industry of small power
plants that offer economic and environmental benefits. Standardization
of interconnection practices across the nation will lower costs for
small generators, help ensure reliability, and help ensure reasonably-priced
electric service for the nation's wholesale power customers."
The rule directs public utilities to amend their Order No. 888 open
access transmission tariffs to offer non-discriminatory, standardized
interconnection service for small generators.
The amendments should include a Small Generator Interconnection Procedures (SGIP)
document and a Small Generator Interconnection Agreement (SGIA).
The SGIP contains the technical procedures that the small generator
and utility must follow in the course of connecting the generator
with the utility's lines. The SGIA contains the contractual provisions
for the interconnection and spells out who pays for improvements
to the utility's electric system, if needed to complete the interconnection.
The rule applies only to interconnections with facilities already
subject to the jurisdiction of the Commission; the Commission emphasized
that it does not apply to local distribution facilities.
In July 2003, the Commission issued a final rule for facilities larger
than 20 megawatts (Order No. 2003). At that time, the Commission
proposed the rule for small generators. Approximately 70 entities
commented on the proposed rule; they generally supported the Commission's
efforts to remove barriers to the development of small generators.
The final rule, Standardization of Small Generator Interconnection
Agreements and Procedures, is effective 60 days after its publication
in the Federal
Register  . Regional transmission organizations (RTOs)
and independent system operators (ISOs) have an additional 90 days
to comply.
R-05- 21
(30)
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Contact
Information:
Barbara A. Connors
Telephone: 202-502-8680 |
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