DG Industry Proposal

1
DG Industry Proposal

• Introduction
• Guiding Principals for Interconnection
• Proposed Interconnection Standard Framework

2
So what about technical issues associated with
interconnection?

• First, a definition
• Distributed Generation Generation sited at the
  point of use, designed for the economic benefit
  of the end-user
• Second, our objective
• To address the technical challenges of
  interconnection
• Not to resolve utility or rate payer revenue
  issues, nor to theorize about the optimal way to
  allocate the costs and benefits of DG amongst
  various parties
• Third, the facts
• 8 of all the power consumed in the United States
  is already generated with DG- and has done so
  safely and without jeopardizing system
  reliability

3
DG All Stakeholders Benefit
Three Classes of Benefits that Accrue from
Accelerated Deployment of Distributed Generation
4
DG INTERCONNECTION GUIDING PRINCIPLES

• Safety and Reliability Concerns are Paramount and
  Addressable
• Technical Interconnection Review Should Be
  Focused on Grid Impact
• Commercial Terms need to recognize and not be
  prohibitive for DG provider market
• Standardized Process and Defined Requirements to
  remove uncertainty
• Build on Consensus Progress to Date Synchronize
  with FERC Standards

5
Safety and Reliability Concerns are Paramount but
Addressable

• Existing national IEEE and UL standards,
  certified equipment and engineering design review
  criteria offer basis for simplified process
• Utilities should share experience with other
  utilities nationally, DG providers can facilitate

6
Interconnection Review Must Be Focused on Grid
Impact

• Size is relative DG system attributes in
  relation to utility line attributes
• Limit arbitrary classifications and size
  distinctions
• Avoid worst case planning. Build standard for
  most likely scenarios but include process for
  exemptions for special circumstances

7
Commercial Terms need to recognize and not be
prohibitive of DG Provider Market

• Recognize Export v. Non-export and simplify
  contracts and process for Non-export
• Metering issues based on commercial objectives
  (net metering, wholesale market involvement) not
  technical
• ADR process must be efficient and effective,
  cognizant of resource disparity between the DG
  party and utility
• Owner/ operator must retain operating control
  without restraint by utility, including ability
  to shut-down DG absent contractual agreement
• Utility must provide for third party DG ownership
  in interconnection procedures
• Fair allocation of interconnection costs

8
Standardized Process and Defined Requirements

• These are the objectives of both Utility and DG
  industry plan
• Technical standards and screens are proxy for de
  novo review
• If pre-certified equipment and technical screens
  passed, then presumption of interconnection and
  expedited, low-cost procedures
• Clearly defined timing and procedures for
  interconnection review
• Minimize costs for application and limit costs of
  DG studies

9
Build on Consensus Progress to Date Synchronize
with FERC Standards

• Move toward national interconnection standards,
  avoid balkanization of state interconnection
  standards
• Utility plan includes positive components to be
  incorporated
• Do not re-invent the wheel we should take
  advantage of good work done to date by FERC ANOPR
  process
• Applicability of FERC ANOPR is about process and
  standards, not jurisdiction

10
Moving Forward Together

• Reach Consensus on Basic Principles for
  Interconnection Standard
• Combine Utility Framework with new policies and
  procedures that are consistent with Consensus
  Principals from the FERC negotiations

11
GUIDING PRINCIPLES Application

• Procedures should cover wide range of DG but
  provide faster tracking for smaller DG
• Standardized, expedited procedures should exist
  for DG up to 20 MW based on FERC standard
• DG below 2MW should receive expedited
  interconnection if certain conditions are met,
  including
• Use of pre-certified equipment, and
• Passing technical screens relating to DG system
  potential for grid impact.
• Meeting certain criteria relating aggregated DG
  equipment capabilities to PPC grid feeder
  capabilities
• Fast tracking even further for under 10kw based
  on Utility Plan