Chapter 9 An Overview of Transmission and Interconnection
D. Assignment, Resale of Transmission, and the
A Transmission Customer 72 may sell, assign, or transfer to another Eligible Customer (the Assignee) all, or a portion of, its rights under its Service Agreement. 73 Compensation to the Transmission Customer (known as a Reseller, following assignment) may not exceed the greater of (1) the original rate paid by the Reseller, (2) the Transmission Provider’s maximum rate on file at the time of such assignment, or (3) the Reseller’s opportunity cost, which is capped at the amount of the Transmission Provider’s cost of expansion. 74 Any sale or assignment of capacity must be either conducted or posted on the Transmission Provider’s OASIS, 75 on or prior to the date that the reassigned services begin. 76
An Assignee must enter into a Service Agreement with the Transmission Provider prior to the commencement date for the reassigned service. 77 The Assignee will receive the same services as the Reseller, and the same priority of service, so long as the
67 Id. § 33.5.
68 Id.
69 Id. § 33.2.
70 Id.
71 Id.
72 A Transmission Customer is “[a]ny Eligible Customer . . . that (i) executes a Service Agreement, or (ii) requests in writing that the Transmission Provider fi le with [FERC], a proposed unexe- cuted Service Agreement to receive transmission service under [the OATT].” Id. § 1.49.
73 Id. § 23.1. The right to assign is subject to FERC approval of necessary fi lings. Id.
74 Id. § 23.1. Note, however, that compensation rates for service prior to Oct. 1, 2010, are to be established by agreement between the Reseller and the Assignee. Id.
75 OASIS is the acronym for the Open Access Same-Time Information System. It is “[t]he infor- mation system and standards of conduct contained in Park 37 of the [FERC’s] regulations and all additional requirements implemented by subsequent [FERC] orders dealing with OASIS.”
Id. § 1. A Reseller may also use the Transmission Provider’s OASIS to post-transmission capacity that is available for resale. Id. § 23.3.
76 Id. § 23.3.
77 Id. § 23.1.
LARGE GENERATOR INTERCONNECTION PROCEDURES
Assignee does not request any changes in the Point of Receipt or Point of Delivery. 78 If requested, however, the Transmission Provider must consent, so long as they will not impair the operation and reliability of the Transmission Provider’s generation, transmission, or distribution systems. 79 The Reseller remains liable for the performance of all of the Assignee’s obligations under the Service Agreement, unless otherwise specifically agreed to between the Transmission Provider and the Reseller. 80
IV. LARGE GENERATOR INTERCONNECTION PROCEDURES
The Large Generator Interconnection Procedures (LGIP) provides standardized proce- dures to interconnect a Large Generator, i.e., a generator with more than 20 megawatts of capacity, to the power grid. 81 The Large Generator Interconnection Agreement (LGIA) sets forth the legal rights and obligations of the owner of the Generating Facility (Interconnection Customer), 82 and the Transmission Provider. 83 Figure 9.4 depicts the interconnection process, beginning with the filing of an Interconnection Application and ending with a project’s interconnection.
78 Id. § 23.2.
79 Id.
80 Id. A specifi c agreement to release the Reseller from the Assignee’s obligations must be incor- porated into the Service Agreement as an amendment. Id.
81 Order No. 2003, supra note 25 at 3. FERC has also issued a separate set of procedures and an agreement applicable to generators with a capacity of no larger than 20 megawatts (Small Generators). Standardization of Small Generator Interconnection Agreements and Procedures, Order No. 2006, 70 Fed. Reg. 34,190 (June 13, 2005) (codifi ed at 18 C.F.R. pt. 35), order on reh’g, Order 2006-A, 70 Fed. Reg. 71,760 (Nov. 30, 2005) (codifi ed at 18 C.F.R. pt. 35), order on clarifi cation, Order 2006-B, 71 Fed. Reg. 42,587 (July 27, 2006) (codifi ed at 18 C.F.R.
pt. 35).
82 A Generating Facility is a “device for the production of electricity identifi ed in the Interconnection Request . . . .” Id. § 1.
83 Order No. 2003, supra note 25 at 49,848 (Aug. 19, 2003) (codifi ed at 18 C.F.R. pt. 35).
Interconnection “plays a crucial role in bringing much-needed generation into the market to meet the growing needs of electricity customers.” Id. FERC has determined that a single set of procedures and a standardized agreement could help to eliminate some of the costly, time-consuming, and complicated disputes regarding feasibility, cost, and the allocation of responsibility under the then-current system of requests for interconnection. Id. In particular, FERC found that the lack of uniformity for interconnecting created an unfair advantage for generators of electric energy that owned both transmission and generation facilities. Id. FERC created uniform interconnection procedures and a standardized agreement to expedite the interconnection process, minimize opportunities for discrimination, and enable new electric energy generation. Id.
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# (20% err.)/
# (10% err.) Acknowledge Request receipt, Provide draft Feasibility StudyAgreement, provide notice of application deficiencies
Submit Request, Including:
1. Completed Application 2. Deposit ($10,000) 3. Evidence of Site Control or Deposit ($10,000) Remedy Application Deficiencies
Identify interconnection point and alternatives
Supply technical data
Return Feasibility Study Agreement and Deposit ($10,000)
Return SIS Agreement ($50,000), and evidence of Site Control
Remedy deficiencies in data
Point at which Customer can request additional studies
Return Facility Study Agreement and deposit and data
Return comments
Terminate LGIA Appendice negotiation
Request filing of Unexecuted LGIA or give notice of dispute Arrange scoping meeting
Provide FSA with Interconnection Point and Study cost estimates
Complete Feasibility Study, provide System Impact Study Agreement
Provide estimates of SIS time and costs
Provide notice of deficiencies in data deficiency
Complete SIS, Provide Facility Study Agreement
Provide estimates of Facility Study time and costs
Complete Facility Study
Issue Facility Study report Provide LGIA with draft appendices
TP’s Responsibility
Business Days
* Est.
Calendar Days
Customer’s Responsibility
5
5 5
5
5 2 10 30
45
10
10
10
10
20
15
15 15 10 90
90 3
3 17
17 10 10
20
60 60
30 Attend Scoping meeting
Discuss Feasibility Study conclusions
Discuss SIS conclusions
Discuss Facility Study conclusions Begin negotiating LGIA Appendices
Restudy Process start point examples File LGIA with FERC
Provide final LGIA
Finish negotiation of LGIA Appendices
Return LGIA. Provide site control or deposit ($250,000) and evidence of milestones Return complete draft appendices
Deadline for returning applicable study agreement Withdraw modification or place new request Request to evaluate modification Modification process
Evaluation result (Y/N)
Figure 9.4 LGIP Timeline
LARGE GENERATOR INTERCONNECTION PROCEDURES