SGIA- Small Generator Interconnection Agreement

SMALL GENERATOR
INTERCONNECTION AGREEMENT (SGIA)

(For Generating Facilities No Larger Than 20 MW)

TABLE OF CONTENTS
Page No.
Article 1. Scope and Limitations of Agreement. .................................................................. - 1 1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8

Applicability....................................................................................................... - 1 Purpose............................................................................................................... - 1 No Agreement to Purchase or Deliver Power .................................................... - 1 Limitations ......................................................................................................... - 1 Responsibilities of the Parties ............................................................................ - 2 Parallel Operation Obligations........................................................................... - 2 Metering ............................................................................................................. - 3 Reactive Power .................................................................................................. - 3 -

Article 2. Inspection, Testing, Authorization, and Right of Access.................................... - 4 2.1
2.2
2.3

Equipment Testing and Inspection..................................................................... - 4 Authorization Required Prior to Parallel Operation. ......................................... - 4 Right of Access .................................................................................................. - 4 -

Article 3. Effective Date, Term, Termination, and Disconnection..................................... - 5 3.1
3.2
3.3
3.4

Effective Date .................................................................................................... - 5 Term of Agreement ............................................................................................ - 5 Termination........................................................................................................ - 5 Temporary Disconnection.................................................................................. - 6 3.4.1 Emergency Conditions ........................................................................... - 6 3.4.2 Routine Maintenance, Construction, and Repair ................................... - 6 3.4.3 Forced Outages ...................................................................................... - 7 3.4.4 Adverse Operating Effects..................................................................... - 7 3.4.5 Modification of the Small Generating Facility ...................................... - 7 3.4.6 Reconnection.......................................................................................... - 7 -

Article 4. Cost Responsibility for Interconnection Facilities and Distribution Upgrades - 8 4.1
4.2

Interconnection Facilities ................................................................................... - 8 Distribution Upgrades........................................................................................ - 8 -

Article 5. Cost Responsibility for Network Upgrades ......................................................... - 8 5.1
5.2
5.3
5.4

Applicability....................................................................................................... - 8 Network Upgrades ............................................................................................. - 8 5.2.1 Repayment of Amounts Advanced for Network Upgrades ................... - 8 Special Provisions for Affected Systems ........................................................... - 9 Rights Under Other Agreements...................................................................... - 10 -

Article 6. Billing, Payment, Milestones, and Financial Security ...................................... - 10 6.1
6.2

Billing and Payment Procedures and Final Accounting .................................. - 10 Milestones. ....................................................................................................... - 10 - i-

6.3

Financial Security Arrangements..................................................................... - 11 -

Article 7. Assignment, Liability, Indemnity, Force Majeure, Consequential Damages, and
Default ......................................................................................................................... - 11 7.1
7.2
7.3
7.4
7.5
7.6

Assignment ....................................................................................................... - 11 Limitation of Liability...................................................................................... - 12 Indemnity ......................................................................................................... - 12 Consequential Damages ................................................................................... - 13 Force Majeure. ................................................................................................. - 13 Default.............................................................................................................. - 14 -

Article 8. Insurance ............................................................................................................... - 14 Article 9. Confidentiality ...................................................................................................... - 15 Article 10. Disputes ............................................................................................................... - 16 Article 11. Taxes.................................................................................................................... - 16 Article 12. Miscellaneous ...................................................................................................... - 16 12.1
12.2
12.3
12.4
12.5
12.6
12.7
12.8
12.9
12.10
12.11
12.12

Governing Law, Regulatory Authority, and Rules .......................................... - 17 Amendment ...................................................................................................... - 17 No Third-Party Beneficiaries........................................................................... - 17 Waiver .............................................................................................................. - 17 Entire Agreement ............................................................................................. - 17 Multiple Counterparts. ..................................................................................... - 17 No Partnership .................................................................................................. - 18 Severability ...................................................................................................... - 18 Security Arrangements..................................................................................... - 18 Environmental Releases ................................................................................... - 18 Subcontractors.................................................................................................. - 18 Reservation of Rights....................................................................................... - 19 -

Article 13. Notices ................................................................................................................. - 19 13.1
13.2
13.3
13.4
13.5

General............................................................................................................. - 19 Billing and Payment......................................................................................... - 20 Alternative Forms of Notice ............................................................................ - 20 Designated Operating Representative .............................................................. - 20 Changes to the Notice Information.................................................................. - 21 -

Article 14. Signatures............................................................................................................ - 21 Attachment 1 – Glossary of Terms
Attachment 2 – Description and Costs of the Small Generating Facility, Interconnection
Facilities, and Metering Equipment
Attachment 3 – One- line Diagram Depicting the Small Generating Facility, Interconnection
Facilities, Metering Equipment, and Upgrades
Attachment 4 – Milestones
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Attachment 5 – Additional Operating Requirements for the Transmission Provider's
Transmission System and Affected Systems Needed to Support the Interconnection Customer’s
Needs
Attachment 6 – Transmission Provider's Description of its Upgrades and Best Estimate of
Upgrade Costs

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This Interconnection Agreement ("Agreement") is made and entered into this ________ day of
________________, 20__, by ___________________________________________________
("Transmission Provider"), and _________________________________________________
("Interconnection Customer") each hereinafter sometimes referred to individually as "Party" or
both referred to collectively as the "Parties."
Transmission Provider Information
Transmission Provider: ______________________________________________
Attention: _________________________________________________________
Address: __________________________________________________________
City: _______________________________ State: ______________ Zip: ______
Phone: ________________
Fax: _________________
Interconnection Customer Information
Interconnection Customer: ____________________________________________
Attention: _________________________________________________________
Address: __________________________________________________________
City: _______________________________ State: ______________ Zip: ______
Phone: ________________
Fax: _________________
Interconnection Customer Application No: _____________
In consideration of the mutual cove nants set forth herein, the Parties agree as follows:
Article 1. Scope and Limitations of Agreement
1.1

This Agreement shall be used for all Interconnection Requests submitted under the Small
Generator Interconnection Procedures (SGIP) except for those submitted under the 10
kW Inverter Process contained in SGIP Attachment 5.

1.2

This Agreement governs the terms and conditions under which the Interconnection
Customer’s Small Generating Facility will interconnect with, and operate in parallel with,
the Transmission Provider's Transmission System.

1.3

This Agreement does not constitute an agreement to purchase or deliver the
Interconnection Customer's power. The purchase or delivery of power and other services
that the Interconnection Customer may require will be covered under separate
agreements, if any. The Interconnection Customer will be responsible for separately
making all necessary arrangements (including scheduling) for delivery of electricity with
the applicable Transmission Provider.

1.4

Nothing in this Agreement is intended to affect any other agreement between the
Transmission Provider and the Interconnection Customer.

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1.5

1.6

Responsibilities of the Parties
1.5.1

The Parties shall perform all obligations of this Agreement in accordance with all
Applicable Laws and Regulations, Operating Requirements, and Good Utility
Practice.

1.5.2

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

1.5.3

The Transmission Provider shall construct, operate, and maintain its Transmission
System and Interconnection Facilities in accordance with this Agreement, and
with Good Utility Practice.

1.5.4

The Interconnection Customer agrees to construct its facilities or systems in
accordance with applicable specifications that meet or exceed those provided by
the National Electrical Safety Code, the American National Standards Institute,
IEEE, Underwriter's Laboratory, and Operating Requirements in effect at the time
of construction and other applicable national and state codes and standards. The
Interconnection Customer agrees to design, install, maintain, and operate its Small
Generating Facility so as to reasonably minimize the likelihood of a disturbance
adversely affecting or impair ing the system or equipment of the Transmission
Provider and any Affected Systems.

1.5.5

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

1.5.6

The Transmission Provider shall coordinate with all Affected Systems to support
the interconnection.

Parallel Operation Obligations
Once the Small Generating Facility has been authorized to commence parallel operation,
the Interconnection Customer shall abide by all rules and procedures pertaining to the

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parallel operation of the Small Generating Facility in the applicable control area,
including, but not limited to; 1) the rules and procedures concerning the operation of
generation set forth in the Tariff or by the applicable system operator(s) for the
Transmission Provider's Transmission System and; 2) the Operating Requirements set
forth in Attachment 5 of this Agreement.
1.7

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

1.8

Reactive Power

1.9

1.8.1

The Interconnection Customer shall design its Small Generating Facility to
maintain a composite power delivery at continuous rated power output at the
Point of Interconnection at a power factor within the range of 0.95 leading to 0.95
lagging, unless the Transmission Provider has established different requirements
that apply to all similarly situated generators in the control area on a comparable
basis. The requirements of this paragraph shall not apply to wind generators.

1.8.2

The Transmission Provider is required to pay the Interconnection Customer for
reactive power that the Interconnection Customer provides or absorbs from the
Small Generating Facility when the Transmission Provider requests the
Interconnection Customer to operate its Small Generating Facility outside the
range specified in article 1.8.1. In addition, if the Transmission Provider pays its
own or affiliated generators for reactive power service within the specified range,
it must also pay the Interconnection Customer.

1.8.3

Payments shall be in accordance with the Interconnection Customer's applicable
rate schedule then in effect unless the provision of such service(s) is subject to a
regional transmission organization or independent system operator FERCapproved rate schedule. To the extent that no rate schedule is in effect at the time
the Interconnection Customer is required to provide or absorb reactive power
under this Agreement, the Parties agree to expeditiously file such rate schedule
and agree to support any request for waiver of the Commission's prior notice
requirement in order to compensate the Interconnection Customer from the time
service commenced.

Capitalized terms used herein shall have the meanings specified in the Glossary of Terms
in Attachment 1 or the body of this Agreement.

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Article 2. Inspection, Testing, Authorization, and Right of Access
2.1

2.2

2.3

Equipment Testing and Inspection
2.1.1

The Interconnection Customer shall test and inspect its Small Generating Facility
and Interconnection Facilities prior to interconnection. The Interconnection
Customer shall notify the Transmission Provider of such activities no fewer than
five Business Days (or as may be agreed to by the Parties) prior to such testing
and inspection. Testing and inspection shall occur on a Business Day. The
Transmission Provider may, at its own expense, send qualified personnel to the
Small Generating Facility site to inspect the interconnection and observe the
testing. The Interconnection Customer shall provide the Transmission Provider a
written test report when such testing and inspection is completed.

2.1.2

The Transmission Provider shall provide the Interconnection Customer written
acknowledgment that it has received the Interconnection Customer's written test
report. Such written acknowledgment shall not be deemed to be or construed as
any representation, assurance, guarantee, or warranty by the Transmission
Provider of the safety, durability, suitability, or reliability of the Small Generating
Facility or any associated control, protective, and safety devices owned or
controlled by the Interconnection Customer or the quality of power produced by
the Small Generating Facility.

Authorization Required Prior to Parallel Operation
2.2.1

The Transmission Provider shall use Reasonable Efforts to list applicable parallel
operation requirements in Attachment 5 of this Agreement. Additionally, the
Transmission Provider shall notify the Interconnection Customer of any changes
to these requirements as soon as they are known. The Transmission Provider
shall make Reasonable Efforts to cooperate with the Interconnection Customer in
meeting requirements necessary for the Interconnection Customer to commence
parallel operations by the in-service date.

2.2.2

The Interconnection Customer shall not operate its Small Generating Facility in
parallel with the Transmission Provider's Transmission System without prior
written authorization of the Transmission Provider. The Transmission Provider
will provide such authorization once the Transmission Provider receives
notification that the Interconnection Customer has complied with all applicable
parallel operation requirements. Such authorization shall not be unreasonably
withheld, conditioned, or delayed.

Right of Access
2.3.1

Upon reasonable notice, the Transmission Provider may send a qualified person to
the premises of the Interconnection Customer at or immediately before the time

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the Small Generating Facility first produces energy to inspect the interconnection,
and observe the commissioning of the Small Generating Facility (including any
required testing), startup, and operation for a period of up to three Business Days
after initial start- up of the unit. In addition, the Interconnection Customer shall
notify the Transmission Provider at least five Business Days prior to conducting
any on-site verification testing of the Small Generating Facility.
2.3.2

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

2.3.3

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

Article 3. Effective Date, Term, Termination, and Disconnection
3.1

Effective Date
This Agreement shall become effective upon execution by the Parties subject to
acceptance by FERC (if applicable), or if filed unexecuted, upon the date specified by the
FERC. The Transmission Provider shall promptly file this Agreement with the FERC
upon execution, if required.

3.2

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

3.3

Termination
No termination shall become effective until the Parties have complied with all Applicable
Laws and Regulations applicable to such termination, including the filing with FERC of a
notice of termination of this Agreement (if required), which notice has been accepted for
filing by FERC.
3.3.1

The Interconnection Customer may terminate this Agreement at any time by
giving the Transmission Provider 20 Business Days written notice.

3.3.2

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

3.3.3

Upon termination of this Agreement, the Small Generating Facility will be

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disconnected from the Transmission Provider's Transmission System. All costs
required to effectuate such disconnection shall be borne by the terminating Party,
unless such termination resulted from the non-terminating Party’s Default of this
SGIA or such non-terminating Party otherwise is responsible for these costs under
this SGIA.

3.4

3.3.4

The termination of this Agreement shall not relieve either Party of its liabilities
and obligations, owed or continuing at the time of the termination

3.3.5

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

Temporary Disconnection
Temporary disconnection shall continue only for so long as reasonably necessary under
Good Utility Practice.
3.4.1

Emergency Conditions -- "Emergency Condition" shall mean a condition or
situation: (1) that in the judgment of the Party making the claim is imminently
likely to endanger life or property; or (2) that, in the case of the Transmission
Provider, is imminently likely (as determined in a non-discriminatory manner) to
cause a material adverse effect on the security of, or damage to the Transmission
System, the Transmission Provider's Interconnection Facilities or the
Transmission Systems of others to which the Transmission System is directly
connected; or (3) that, in the case of the Interconnection Customer, is imminently
likely (as determined in a non-discriminatory manner) to cause a material adverse
effect on the security of, or damage to, the Small Generating Facility or the
Interconnection Customer's Interconnection Facilities. Under Emergency
Conditions, the Transmission Provider may immediately suspend interconnection
service and temporarily disconnect the Small Generating Facility. The
Transmission Provider shall notify the Interconnection Customer promptly when
it becomes aware of an Emergency Condition that may reasonably be expected to
affect the Interconnection Customer's operation of the Small Generating Facility.
The Interconnection Customer shall notify the Transmission Provider promptly
when it becomes aware of an Emergency Condition that may reasonably be
expected to affect the Transmission Provider's Transmission System or any
Affected Systems. To the extent information is known, the notification shall
describe the Emergency Condition, the extent of the damage or deficiency, the
expected effect on the operation of both Parties' facilities and operations, its
anticipated duration, and the necessary corrective action.

3.4.2

Routine Maintenance, Construction, and Repair
The Transmission Provider may interrupt interconnection service or curtail the
output of the Small Generating Facility and temporarily disconnect the Small
Generating Facility from the Transmission Provider's Transmissio n System when
necessary for routine maintenance, construction, and repairs on the Transmission

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Provider's Transmission System. The Transmission Provider shall provide the
Interconnection Customer with five Business Days notice prior to such
interruption. The Transmission Provider shall use Reasonable Efforts to
coordinate such reduction or temporary disconnection with the Interconnection
Customer.
3.4.3

Forced Outages
During any forced outage, the Transmission Provider may suspend
interconnection service to effect immediate repairs on the Transmission Provider's
Transmission System. The Transmission Provider shall use Reasonable Efforts to
provide the Interconnection Customer with prior notice. If prior notice is not
given, the Transmission Provider shall, upon request, provide the Interconnection
Customer written documentation after the fact explaining the circumstances of the
disconnection.

3.4.4

Adverse Operating Effects
The Transmission Provider shall notify the Interconnection Customer as soon as
practicable if, based on Good Utility Practice, operation of the Small Generating
Facility may cause disruption or deterioration of service to other customers served
from the same electric system, or if operating the Small Generating Facility could
cause damage to the Transmission Provider's Transmission System or Affected
Systems. Supporting documentation used to reach the decision to disconnect shall
be provided to the Interconnectio n Customer upon request. If, after notice, the
Interconnection Customer fails to remedy the adverse operating effect within a
reasonable time, the Transmission Provider may disconnect the Small Generating
Facility. The Transmission Provider shall provide the Interconnection Customer
with five Business Day notice of such disconnection, unless the provisions of
article 3.4.1 apply.

3.4.5

Modification of the Small Generating Facility
The Interconnection Customer must receive written authorization from the
Transmission Provider before making any change to the Small Generating Facility
that may have a material impact on the safety or reliability of the Transmission
System. Such authorization shall not be unreasonably withheld. Modifications
shall be done in accordance with Good Utility Practice. If the Interconnection
Customer makes such modification without the Transmission Provider's prior
written authorization, the latter shall have the right to temporarily disconnect the
Small Generating Facility.

3.4.6

Reconnection
The Parties shall cooperate with each other to restore the Small Generating
Facility, Interconnection Facilities, and the Transmission Provider's Transmission
System to their normal operating state as soon as reasonably practicable following
a temporary disconnection.

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Article 4. Cost Responsibility for Interconnection Facilities and Distribution Upgrades
4.1

4.2

Interconnection Facilities
4.1.1

The Interconnection Customer shall pay for the cost of the Interconnection
Facilities itemized in Attachment 2 of this Agreement. The Transmission
Provider shall provide a best estimate cost, including overheads, for the purchase
and construction of its Interconnection Facilities and provide a detailed
itemization of such costs. Costs associated with Interconnection Facilities may be
shared with other entities that may benefit from such facilities by agreeme nt of
the Interconnection Customer, such other entities, and the Transmission Provider.

4.1.2

The Interconnection Customer shall be responsible for its share of all reasonable
expenses, including overheads, associated with (1) owning, operating,
maintaining, repairing, and replacing its own Interconnection Facilities, and (2)
operating, maintaining, repairing, and replacing the Transmission Provider's
Interconnection Facilities.

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

Article 5. Cost Responsibility for Network Upgrades
5.1

Applicability
No portion of this article 5 shall apply unless the interconnection of the Small Generating
Facility requires Network Upgrades.

5.2

Network Upgrades
The Transmission Provider or the Transmission Owner shall design, procure, construct,
install, and own the Network Upgrades described in Attachment 6 of this Agreement. If
the Transmission Provider and the Interconnection Customer agree, the Interconnection
Customer may construct Network Upgrades that are located on land owned by the
Interconnection Customer. Unless the Transmission Provider elects to pay for Network
Upgrades, the actual cost of the Network Upgrades, including overheads, shall be borne
initially by the Interconnection Customer.
5.2.1

Repayment of Amounts Advanced for Network Upgrades
The Interconnection Customer shall be entitled to a cash repayment, equal to the

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total amount paid to the Transmission Provider and Affected System operator, if
any, for Network Upgrades, including any tax gross-up or other tax-related
payments associated with the Network Upgrades, and not otherwise refunded to
the Interconnection Customer, to be paid to the Interconnection Customer on a
dollar- for-dollar basis for the non- usage sensitive portion of transmission charges,
as payments are made under the Transmission Provider's Tariff and Affected
System's Tariff for transmission services with respect to the Small Generating
Facility. Any repayment shall include interest calculated in accordance with the
methodology set forth in FERC’s regulations at 18 C.F.R. § 35.19a(a)(2)(iii) from
the date of any payment for Network Upgrades through the date on which the
Interconnection Customer receives a repayment of such payment pursuant to this
subparagraph. The Interconnection Customer may assign such repayment rights
to any person.

5.3

5.2.1.1

Notwithstanding the foregoing, the Interconnection Customer, the
Transmission Provider, and any applicable Affected System
operators may adopt any alternative payment schedule that is
mutually agreeable so long as the Transmission Provider and said
Affected System operators take one of the following actions no
later than five years from the Commercial Operation Date: (1)
return to the Interconnection Customer any amounts advanced for
Network Upgrades not previously repaid, or (2) declare in writing
that the Transmission Provider or any applicable Affected System
operators will continue to provide payments to the Interconnection
Customer on a dollar-for-dollar basis for the non-usage sensitive
portion of transmission charges, or develop an alternative schedule
that is mutually agreeable and provides for the return of all
amounts advanced for Network Upgrades not previously repaid;
however, full reimbursement shall not extend beyond twenty (20)
years from the commercial operation date.

5.2.1.2

If the Small Generating Facility fails to achieve commercial
operation, but it or another generating facility is later constructed
and requires use of the Network Upgrades, the Transmission
Provider and Affected System operator shall at that time reimburse
the Interconnection Customer for the amounts advanced for the
Network Upgrades. Before any such reimbursement can occur, the
Interconnection Customer, or the entity that ultimately constructs
the generating facility, if different, is responsible for identifying
the entity to which reimbursement must be made.

Special Provisions for Affected Systems
Unless the Transmission Provider provides, under this Agreement, for the repayment of
amounts advanced to any applicable Affected System operators for Network Upgrades,
the Interconnection Customer and Affected System operator shall enter into an agreement

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that provides for such repayment. The agreement shall specify the terms governing
payments to be made by the Interconnection Customer to Affected System operator as
well as the repayment by Affected System operator.
5.4

Rights Under Other Agreements
Notwithstanding any other provision of this Agreement, nothing herein shall be construed
as relinquishing or foreclosing any rights, including but not limited to firm transmission
rights, capacity rights, transmission congestion rights, or transmission credits, that the
Interconnection Customer shall be entitled to, now or in the future, under any other
agreement or tariff as a result of, or otherwise associated with, the transmission capacity,
if any, created by the Network Upgrades, including the right to obtain cash
reimbursements or transmission credits for transmission service that is not associated
with the Small Generating Facility.

Article 6. Billing, Payment, Milestones, and Financial Security
6.1

6.2

Billing and Payment Procedures and Final Accounting
6.1.1

The Transmission Provider shall bill the Interconnection Customer for the design,
engineering, construction, and procurement costs of Interconnection Facilities and
Upgrades contemplated by this Agreement on a monthly basis, or as otherwise
agreed by the Parties. The Interconnection Customer shall pay each bill within 30
calendar days of receipt, or as otherwise agreed to by the Parties.

6.1.2

Within three months of completing the construction and installation of the
Transmission Provider's Interconnection Facilities and/or Upgrades described in
the Attachments to this Agreement, the Transmission Provider shall provide the
Interconnection Customer with a final accounting report of any difference
between (1) the Interconnection Customer's cost responsibility for the actual cost
of such facilities or Upgrades, and (2) the Interconnection Customer's previous
aggregate payments to the Transmission Provider for such facilities or Upgrades.
If the Interconnection Customer's cost responsibility exceeds its previous
aggregate payments, the Transmission Provider shall invoice the Interconnection
Customer for the amount due and the Interconnection Customer shall make
payment to the Transmission Provider within 30 calendar days. If the
Interconnection Customer's previous aggregate payments exceed its cost
responsibility under this Agreement, the Transmission Provider shall refund to the
Interconnection Customer an amount equal to the difference within 30 calendar
days of the final accounting report.

Milestones
The Parties shall agree on milestones for which each Party is responsible and list them in
Attachment 4 of this Agreement. A Party's obligations under this provision may be
extended by agreement. If a Party anticipates that it will be unable to meet a milestone

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for any reason other tha n a Force Majeure Event, it shall immediately notify the other
Party of the reason(s) for not meeting the milestone and (1) propose the earliest
reasonable alternate date by which it can attain this and future milestones, and (2)
requesting appropriate amendments to Attachment 4. The Party affected by the failure to
meet a milestone shall not unreasonably withhold agreement to such an amendment
unless it will suffer significant uncompensated economic or operational harm from the
delay, (2) attainment of the same milestone has previously been delayed, or (3) it has
reason to believe that the delay in meeting the milestone is intentional or unwarranted
notwithstanding the circumstances explained by the Party proposing the amendment.
6.3

Financial Security Arrangements
At least 20 Business Days prior to the commencement of the design, procurement,
installation, or construction of a discrete portion of the Transmission Provider's
Interconnection Facilities and Upgrades, the Interconnection Customer shall provide the
Transmission Provider, at the Interconnection Customer's option, a guarantee, a surety
bond, letter of credit or other form of security that is reasonably acceptable to the
Transmission Provider and is consistent with the Uniform Commercial Code of the
jurisdiction where the Point of Interconnection is located. Such security for payment
shall be in an amount sufficient to cover the costs for constructing, designing, procuring,
and installing the applicable portion of the Transmission Provider's Interconnection
Facilities and Upgrades and shall be reduced on a dollar-for-dollar basis for payments
made to the Transmission Provider under this Agreement during its term. In addition:
6.3.1

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

6.3.2

The letter of credit or surety bond must be issued by a financial institution
or insurer reasonably acceptable to the Transmission Provider and must
specify a reasonable expiration date.

Article 7. Assignment, Liability, Indemnity, Force Majeure , Consequential Damages, and
Default
7.1

Assignment
This Agreement may be assigned by either Party upon 15 Business Days prior written
notice and opportunity to object by the other Party; provided that:
7.1.1

Either Party may assign this Agreement without the consent of the other Party to
any affiliate of the assigning Party with an equal or greater credit rating and with
the legal authority and operational ability to satisfy the obligations of the
assigning Party under this Agreement, provided that the Interconnection Customer
promptly notifies the Transmission Provider of any such assignment ;

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7.1.2

The Interconnection Customer shall have the right to assign this Agreement,
without the consent of the Transmission Provider, for collateral security purposes
to aid in providing financing for the Small Generating Facility, provided that the
Interconnection Customer will promptly notify the Transmission Provider of any
such assignment.

7.1.3

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

7.2

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

7.3

Indemnity
7.3.1

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

7.3.2

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

7.3.3

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

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7.3.4

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

7.3.5

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

7.4

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

7.5

Force Majeure
7.5.1

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

7.5.2

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

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Affected Party will use Reasonable Efforts to resume its performance as soon as
possible.
7.6

Default
7.6.1

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

7.6.2

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

Article 8. Insurance
8.1

The Interconnection Customer shall, at its own expense, maintain in force general
liability insurance without any exclusion for liabilities related to the interconnection
undertaken pursuant to this Agreement. The amount of such insurance shall be sufficient
to insure against all reasonably foreseeable direct liabilities given the size and nature of
the generating equipment being interconnected, the interconnection itself, and the
characteristics of the system to which the interconnection is made. The Interconnection
Customer shall obtain additional insurance only if necessary as a function of owning and
operating a generating facility. Such insurance shall be obtained from an insurance
provider authorized to do business in the State where the interconnection is located.
Certification that such insurance is in effect shall be provided upon request of the
Transmission Provider, except that the Interconnection Customer shall show proof of
insurance to the Transmission Provider no later than ten Business Days prior to the
anticipated commercial operation date. An Interconnection Customer of sufficient creditworthiness may propose to self- insure for such liabilities, and such a proposal shall not be
unreasonably rejected.

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8.2

The Transmission Provider agrees to maintain general liability insurance or selfinsurance consistent with the Transmission Provider’s commercial practice. Such
insurance or self- insurance shall not exclude coverage for the Transmission Provider's
liabilities undertaken pursuant to this Agreement.

8.3

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

Article 9. Confidentiality
9.1

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

9.2

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

9.3

9.2.1

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

9.2.2

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

Notwithstanding anything in this article to the contrary, and pursuant to 18 CFR § 1b.20,
if FERC, during the course of an investigation or otherwise, requests information from
one of the Parties that is otherwise required to be maintained in confidence pursuant to
this Agreement, the Party shall provide the requested information to FERC, within the
time provided for in the request for information. In providing the information to FERC,
the Party may, consistent with 18 CFR § 388.112, request that the information be treated
as confidential and non-public by FERC and that the information be withheld from public
disclosure. Parties are prohibited from notifying the other Party to this Agreement prior
to the release of the Confidential Information to FERC. The Party shall notify the other

Small Generator Interconnection Agreement (SGIA)

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Party to this Agreement when it is notified by FERC that a request to release Confidential
Information has been received by FERC, at which time either of the Parties may respond
before such information would be made public, pursuant to 18 CFR § 388.112. Requests
from a state regulatory body conducting a confidential investigation shall be treated in a
similar manner if consistent with the applicable state rules and regulations.

Article 10. Disputes
10.1

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

10.2

In the event of a dispute, either Party shall provide the other Party with a written Notice
of Dispute. Such Notice shall describe in detail the nature of the dispute.

10.3

If the dispute has not been resolved within two Business Days after receipt of the Notice,
either Party may contact FERC's Dispute Resolution Service (DRS) for assistance in
resolving the dispute.

10.4

The DRS will assist the Parties in eithe r resolving their 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. DRS can
be reached at 1-877-337-2237 or via the internet at http://www.ferc.gov/legal/adr.asp.

10.5

Each Party agrees to conduct all negotiations in good faith and will be responsible for
one-half of any costs paid to neutral third-parties.

10.6

If neither Party elects to seek assistance from the DRS, or if the attempted dispute
resolution fails, then either Party may exercise whatever rights and remedies it may have
in equity or law consistent with the terms of this Agreement.

Article 11. Taxes
11.1

The Parties agree to follow all applicable tax laws and regulations, consistent with FERC
policy and Internal Revenue Service requirements.

11.2

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

Article 12. Miscellaneous
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12.1

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 state of __________________ (where the Point of
Interconnection is located), without regard to its conflicts of law principles. This
Agreement is subject to all Applicable Laws and Regulations. Each Party expressly
reserves the right to seek changes in, appeal, or otherwise contest any laws, orders, or
regulations of a Governmental Authority.

12.2

Amendment
The Parties may amend this Agreement by a written instrument duly executed by both
Parties, or under article 12.12 of this Agreement.

12.3

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 herein assumed are solely for the use and benefit of
the Parties, their successors in interest and where permitted, their assigns.

12.4

Waiver
12.4.1 The failure of a Party to this Agreement to insist, on any occasion, upon strict
performance of any provision of this Agreement will not be considered a waiver
of any obligation, right, or duty of, or imposed upon, such Party.
12.4.2 Any waiver at any time by either Party of its rights with respect to this Agreement
shall not be deemed a continuing waiver or a waiver with respect to any other
failure to comply with any other obligation, right, 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 Transmission Provider. Any waiver
of this Agreement shall, if requested, be provided in writing.

12.5

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

12.6

Multiple Counterparts
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.

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12.7

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.

12.8

Severability
If any provision or portion of this Agreement shall for any reason be held or adjudged to
be invalid or illegal or unenforceable by any court of competent jurisdiction or other
Governmental Authority, (1) such portion or provision shall be deemed separate and
independent, (2) the Parties shall negotiate in good faith to restore insofar as practicable
the benefits to each Party that were affected by such ruling, and (3) the remainder of this
Agreement shall remain in full force and effect.

12.9

Security Arrangements
Infrastructure security of electric system equipment and operations and control hardware
and software is essential to ensure day-to-day reliability and operational security. FERC
expects all Transmission Providers, market participants, and Interconnection Customers
interconnected to electric systems to comply with the recommendations offered by the
President's Critical Infrastructure Protection Board and, eventually, best practice
recommendations from the electric reliability authority. All public utilities are expected
to meet basic standards for system infrastructure and operational security, including
physical, operational, and cyber-security practices.

12.10 Environmental Releases
Each Party shall notify the other Party, first orally and then in writing, of the release of
any hazardous substances, any asbestos or lead abatement activities, or any type of
remediation activities related to the Small Generating Facility or the Interconnection
Facilities, each of which may reasonably be expected to affect the other Party. The
notifying Party shall (1) provide the notice as soon as practicable, provided such Party
makes a good faith effort to provide the notice no later than 24 hours after such Party
becomes aware of the occurrence, and (2) promptly furnish to the other Party copies of
any publicly available reports filed with any governmental authorities addressing such
events.
12.11 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;
provided, however, that 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.
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12.11.1

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, however, that in no event
shall the Transmission Provider 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.

12.11.2

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

12.12 Reservation of Rights
The Transmission Provider shall have the right to make a unilateral filing with FERC to
modify this Agreement with respect to any rates, terms and conditions, charges,
classifications of service, rule or regulation under section 205 or any other applicable
provision of the Federal Power Act and FERC's rules and regulations thereunder, and the
Interconnection Customer shall have the right to make a unilateral filing with FERC to
modify this Agreement under any applicable provision of the Federal Power Act and
FERC's rules and regulations; 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 FERC in
which such modifications may be considered. Nothing in this Agreement shall limit the
rights of the Parties or of FERC under sections 205 or 206 of the Federal Power Act and
FERC's rules and regulations, except to the extent that the Parties otherwise agree as
provided herein.

Article 13. Notices
13.1

General
Unless otherwise provided in this Agreement, any written notice, demand, or request
required or authorized in connection with this Agreement ("Notice") shall be deemed
properly given if delivered in person, delivered by recognized national currier service, or
sent by first class mail, postage prepaid, to the person specified belo w:
If to the Interconnection Customer:
Interconnection Customer: ____________________________________________
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
Phone: ________________
Fax: _________________

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If to the Transmission Provider:
Transmission Provider: _____________________________________________
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
Phone: ________________
Fax: _________________
13.2

Billing and Payment
Billings and payme nts shall be sent to the addresses set out below:
Interconnection Customer: ____________________________________________
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
Transmission Provider: _____________________________________________
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______

13.3

Alternative Forms of Notice
Any notice or request required or permitted to be given by either Party to the other and
not required by this Agreement to be given in writing may be so given by telephone,
facsimile or e- mail to the telephone numbers and e- mail addresses set out below:
If to the Interconnection Customer:
Interconnection Customer: ____________________________________________
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
Phone: ________________
Fax: _________________
If to the Transmission Provider:
Transmission Provider: _____________________________________________
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
Phone: ________________
Fax: _________________

13.4

Designated Operating Representative
The Parties may also designate operating representatives to conduct the communications
which may be necessary or convenient for the administration of this Agreement. This

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person will also serve as the point of contact with respect to operations and maintena nce
of the Party’s facilities.
Interconnection Customer’s Operating Representative :
Interconnection Customer: ____________________________________________
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
Phone: ________________
Fax: _________________
Transmission Provider’s Operating Representative :
Transmission Provider: _____________________________________________
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
Phone: ________________
Fax: _________________

13.5

Changes to the Notice Information
Either Party may change this information by giving five Business Days written notice
prior to the effective date of the change.

Article 14. Signatures
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized representatives.
For the Transmission Provider

Name: ___________________________________________
Title: ___________________________________________
Date: ___________________

For the Interconnection Customer

Name: ___________________________________________
Small Generator Interconnection Agreement (SGIA)

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Title: ___________________________________________
Date: ___________________

Small Generator Interconnection Agreement (SGIA)

- 22 -

Attachment 1

Glossary of Terms
Affected System – An electric system other than the Transmission Provider's Transmission
System that may be affected by the proposed interconnection.
Applicable Laws and Regulations – All duly promulgated applicable federal, state and local
laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or
administrative orders, permits and other duly authorized actions of any Governmental Authority.
Business Day – Monday through Friday, excluding Federal Holidays.
Default – The failure of a breaching Party to cure its breach under the Small Generator
Interconnection Agreement.
Distribution System – The Transmission Provider's facilities and equipment used to transmit
electricity to ultimate usage points such as homes and industries directly from nearby generators
or from interchanges with higher voltage transmission networks which transport bulk power over
longer distances. The voltage levels at which Distribution Systems operate differ among areas.
Distribution Upgrades – The additions, modifications, and upgrades to the Transmission
Provider's Distribution System at or beyond the Point of Interconnection to facilitate
interconnection of the Small Generating Facility and render the transmission service necessary to
effect the Interconnection Customer's wholesale sale of electricity in interstate commerce.
Distribution Upgrades do not include Interconnection Facilities.
Good Utility Practice – Any of the practices, methods and acts engaged in or approved by a
significant portion of the electric industry during the relevant time period, or any of the practices,
methods and acts which, in the exercise of reasonable judgment in light of the facts known at the
time the decision was made, could have been expected to accomplish the desired result at a
reasonable cost consistent with good business practices, reliability, safety and expedition. Good
Utility Practice is not intended to be limited to the optimum practice, method, or act to the
exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted
in the region.
Governmental Authority – 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,
however, that such term does not include the Interconnection Customer, the Interconnectio n
Provider, or any Affiliate thereof.
Interconnection Customer – Any entity, including the Transmission Provider, the Transmission
Owner or any of the affiliates or subsidiaries of either, that proposes to interconnect its Small

Glossary of Terms

-1-

Generating Facility with the Transmission Provider's Transmission System.
Interconnection Facilities – The Transmission Provider's Interconnection Facilities and the
Interconnection Customer's Interconnection Facilities. Collectively, Interconnection Facilities
include all facilities and equipment between the Small Generating Facility and the Point of
Interconnection, including any modification, additions or upgrades that are necessary to
physically and electrically interconnect the Small Generating Facility to the Transmission
Provider's Transmission System. Interconnection Facilities are sole use facilities and shall not
include Distribution Upgrades or Network Upgrades.
Interconnection Request – The Interconnection Customer's request, in accordance with the
Tariff, to interconnect a ne w 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 Transmission Provider’s Transmission System.
Material Modification – A modification that has a material impact on the cost or timing of any
Interconnection Request with a later queue priority date.
Network Upgrades – Additions, modifications, and upgrades to the Transmission Provider's
Transmission System required at or beyond the point at which the Small Generating Facility
interconnects with the Transmission Provider’s Transmission System to accommodate the
interconnection of the Small Generating Facility with the Transmission Provider’s Transmission
System. Network Upgrades do not include Distribution Upgrades.
Operating Requirements – Any operating and technical requirements that may be applicable
due to Regional Transmission Organization, Independent System Operator, control area, or the
Transmission Provider's requirements, including those set forth in the Small Generator
Interconnection Agreement.
Party or Parties – The Transmission Provider, Transmission Owner, Interconnection Customer
or any combination of the above.
Point of Interconnection – The point where the Interconnection Facilities connect with the
Transmission Provider's Transmission System.
Reasonable Efforts – With respect to an action required to be attempted or taken by a Party
under the Small Generator Interconnection Agreeme nt, efforts that are timely and consistent with
Good Utility Practice and are otherwise substantially equivalent to those a Party would use to
protect its own interests.
Small Generating Facility – The Interconnection Customer's device for the production of
electricity identified in the Interconnection Request, but shall not include the Interconnection
Customer's Interconnection Facilities.
Tariff – The Transmission Provider or Affected System's Tariff through which open access
transmission service and Interconnection Service are offered, as filed with the FERC, and as

Glossary of Terms

-2-

amended or supplemented from time to time, or any successor tariff.
Transmission Owner – The entity that owns, leases or otherwise possesses an interest in the
portion of the Transmission System at the Point of Interconnection and may be a Party to the
Small Generator Interconnection Agreement to the extent necessary.
Transmission Provider – The public utility (or its designated agent) that owns, controls, or
operates transmission or distribution facilities used for the transmission of electricity in interstate
commerce and provides transmission service under the Tariff. The term Transmission Provider
should be read to include the Transmission Owner when the Transmission Owner is separate
from the Transmission Provider.
Transmission System – The facilities owned, controlled or operated by the Transmission
Provider or the Transmission Owner that are used to provide transmission service under the
Tariff.
Upgrades – The required additions and modifications to the Transmission Provider's
Transmission System at or beyond the Point of Interconnection. Upgrades may be Network
Upgrades or Distribution Upgrades. Upgrades do not include Interconnection Facilities.

Glossary of Terms

-3-

Attachment 2

Description and Costs of the Small Generating Facility,
Interconnection Facilities, and Metering Equipment
Equipment, including the Small Generating Facility, Interconnection Facilities, and metering
equipment shall be itemized and identified as being owned by the Interconnection Customer, the
Transmission Provider, or the Transmission Owner. The Transmission Provider will provide a
best estimate itemized cost, including overheads, of its Interconnection Facilities and metering
equipment, and a best estimate itemized cost of the annual operation and maintenance expenses
associated with its Interconnection Facilities and metering equipment.

Attachment 3

One-line Diagram Depicting the Small Generating Facility, Interconnection
Facilities, Metering Equipment, and Upgrades

Attachment 4

Milestones
In-Service Date:

___________________

Critical milestones and responsibility as agreed to by the Parties:
Milestone/Date

Responsible Party

(1)

_______________________________________

______________________

(2)

_______________________________________

______________________

(3)

_______________________________________

______________________

(4)

_______________________________________

______________________

(5)

_______________________________________

______________________

(6)

_______________________________________

______________________

(7)

_______________________________________

______________________

(8)

_______________________________________

______________________

(9)

_______________________________________

______________________

(10)

_______________________________________

______________________

Agreed to by:
For the Transmission Provider__________________________ Date______________
For the Transmission Owner (If Applicable) ________________________ Date_____________
For the Interconnection Customer________________________ Date______________

Attachment 5

Additional Operating Requirements for the Transmission Provider's
Transmission System and Affected Systems Needed to Support
the Interconnection Customer's Needs

The Transmission Provider shall also provide requirements that must be met by the
Interconnection Customer prior to initiating parallel operation with the Transmission Provider's
Transmission System.

Attachment 6

Transmission Provider's Description of its Upgrades
and Best Estimate of Upgrade Costs

The Transmission Provider shall describe Upgrades and provide an itemized best estimate of the
cost, including overheads, of the Upgrades and annual operation and maintenance expenses
associated with such Upgrades. The Transmission Provider shall functionalize Upgrade costs
and annual expenses as either transmission or distribution related.