FERC News Release, Proposed Rule

January 17, 2013
News Media Contact
Craig Cano | 202-502-8680
Docket No. RM13-2-000

FERC Proposes Reforms for Small Generator Interconnections
The Federal Energy Regulatory Commission (FERC) today proposed reforms intended to reduce the time and cost to
process small generator interconnection requests and allow for more efficient interconnection of these resources to
benefit customers. These reforms also would maintain reliability, increase energy supply and remove barriers to the
development of new energy sources.
The reforms, outlined in a Notice of Proposed Rulemaking (NOPR), are driven by market changes spurred in part by
state renewable energy goals and policies. They affect FERC’s pro forma Small Generator Interconnection Procedures
(SGIP) and Small Generator Interconnection Agreement (SGIA), which set the terms and conditions for interconnecting
facilities of 20 megawatts (MW) or smaller.
Today’s NOPR proposes four reforms to the SGIP and SGIA.
The first reform would allow interconnection customers to request from transmission providers a pre-application report
to help them better evaluate points of interconnection before submitting a formal interconnection request. This added
transparency could increase the efficiency of the interconnection process for both transmission providers and
interconnection customers.
The second reform would revise the current 2 MW threshold for participation in the Fast Track Process under section 2
of the SGIP. Fast Track eligibility instead would be based on individual system and resource characteristics, up to a
limit of 5 MW.
A third reform would revise the customer options meeting and supplemental review for projects that fail the Fast Track
screens that identify reliability or safety issues.
Finally, the NOPR would revise the pro forma SGIP Facilities Study Agreement by giving interconnection customers an
opportunity to provide written comments on the upgrades that are necessary for the interconnection. The Commission
believes transmission providers should make the final decision on required upgrades, but is concerned that failing to
allow customers to review and comment on the upgrades may result in unjust and unreasonable costs.
Comments are due 120 days after publication in the Federal Register. Because of the technical nature of the reforms,
the Commission directed staff to convene a workshop before the end of the comment period.
R-13-14

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