CC list suppressed...



Generator Interconnections Docket # EX01-5-000



Oct. 16 (Btu Watch)

FERC Interconnection Study Team recommends a two-step
approach for Commission to adopt in order to resolve
generation interconnection issues. If adopted, the new
approach would quickly put in place standard procedures
and solidify a standard interconnection agreement that
would accelerate the interconnection process and allow
more time to resolve cost-related issues.

Full Story:

The FERC Interconnection Study Team proposed a two-step
approach, which includes a variety of options for
addressing issues concerning generator interconnection. If
adopted, the new approach would quickly put in place
standard procedures and solidify an interconnection
agreement that would accelerate the interconnection
process and allow more time to resolve cost-related
issues.

FERC staff members Roland Wentworth, Jerry Pederson and
Patrick Rooney are all members of the Interconnection
Study Team. Their two-step approach includes an issue of a
short turn-around NOPR to address contract and product
issues. In Step 1, the Commission would first propose an
adapted version of the ERCOT standard generation
interconnection agreement and procedures for interested
parties to use as an example to aid in the creation of the
final standard interconnection agreement and procedures.
The NOPR would propose standard interconnection studies
and resulting rights, such as establishing a minimum
interconnection standard and defining standard
interconnection products. In order to accelerate the
process, the NOPR should state that any proposed
modifications that benefit only a single entity rather
than the market as a whole would be rejected.

The Study Team encourages that the short turn-around NOPR
could result in a final rule within 120 days. The rule
would apply nationwide; however, the Commission may take
consideration to requests by RTOs/ISOs to propose
adaptations that reflect regional practice and provide
benefit to the market.

Step 2 addresses the issue of cost responsibility. In Step
2, the Commission would issue a second NOPR that would
address the assignment of cost responsibility for
interconnections and associated system upgrades. These
proposed rules would take into account the effect of
various cost responsibility rules on the incentives of
generators and transmission providers to facilitate
interconnections and to make efficient and timely
investment decisions. These rules would be written in
reference to the interconnection rules noted in Step 1,
including any products that are unique to RTOs/ISOs. There
are hopes that this process would be complete
approximately nine months after issuing the Step 2
proposed rules.