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TITLE 16ECONOMIC REGULATION
PART 2PUBLIC UTILITY COMMISSION OF TEXAS
CHAPTER 25SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
SUBCHAPTER ITRANSMISSION AND DISTRIBUTION
DIVISION 2TRANSMISSION AND DISTRIBUTION APPLICABLE TO ALL ELECTRIC UTILITIES
RULE §25.211Interconnection of On-Site Distributed Generation (DG)

  (3) A utility may postpone processing an application for an individual distributed generation facility under this section if the total existing distributed generation on the targeted feeder represents more than 25% of the total load of the secondary network under consideration. If that is the case, the utility should conduct interconnection and network studies to determine whether, and in what amount, additional distributed generation facilities can be safely added to the feeder or accommodated in some other fashion. These studies should be completed within six weeks, and application processing should then resume.

  (4) A utility may reject applications for a distributed generation facility under this section if the utility can demonstrate specific reliability or safety reasons why the distributed generation should not be interconnected at the requested site. However, in such cases the utility shall work with the customer to attempt to resolve such problems to their mutual satisfaction.

  (5) A utility shall make all reasonable efforts to seek methods to safely and reliably interconnect distributed generation facilities that will export power. This may include switching service to a radial feed if practical and if acceptable to the customer.

(i) Pre-Interconnection studies for network interconnection of distributed generation. Prior to charging a pre-interconnection study fee for a network interconnection of distributed generation, a utility shall first advise the customer of the potential problems associated with interconnection of distributed generation with its network system. For potential interconnections to network systems there shall be no pre-interconnection study fee assessed for a facility with inverter systems under 20 kW. For all other facilities the utility may charge the customer a fee to offset its costs incurred in the conduct of the pre-interconnection study. In those instances where a utility conducts an interconnection study, the following shall apply:

  (1) The conduct of such pre-interconnection studies shall take no more than four weeks;

  (2) A utility shall prepare written reports of the study findings and make them available to the customer;

  (3) The studies shall consider both the costs incurred and the benefits realized as a result of the interconnection of distributed generation to the utility’s system; and

  (4) The customer shall receive an estimate of the study cost before the utility initiates the study.

(j) Communications concerning proposed distributed generation projects. In the course of processing applications for interconnection and parallel operation and in the conduct of pre-interconnection studies, customers shall provide the utility detailed information concerning proposed distributed generation facilities. Such communications concerning the nature of proposed distributed generation facilities shall be made subject to the terms of §25.84 of this title (relating to Annual Reporting of Affiliate Transactions for Electric Utilities), §25.272 of this title (relating to Code of Conduct for Electric Utilities and their Affiliates), and §25.273 of this title (relating to Contracts between Electric Utilities and their Competitive Affiliates). A utility and its affiliates shall not use such knowledge of proposed distributed generation projects submitted to it for interconnection or study to prepare competing proposals to the customer that offer either discounted rates in return for not installing the distributed generation, or offer competing distributed generation projects.

(k) Equipment pre-certification.

  (1) Entities performing pre-certification. The commission may approve one or more entities that shall pre-certify equipment as defined pursuant to this section.

  (2) Standards for entities performing pre-certification. Testing organizations and/or facilities capable of analyzing the function, control, and protective systems of distributed generation units may request to be certified as testing organizations.

  (3) Effect of pre-certification. Distributed generation units which are certified to be in compliance by an approved testing facility or organization as described in this subsection shall be installed on a company utility system in accordance with an approved interconnection control and protection scheme without further review of their design by the utility.

(l) Designation of utility contact persons for matters relating to distributed generation interconnection.

  (1) Each electric utility shall designate a person or persons who will serve as the utility’s contact for all matters related to distributed generation interconnection.

  (2) Each electric utility shall identify to the commission its distributed generation contact person.

  (3) Each electric utility shall provide convenient access through its internet web site to the names, telephone numbers, mailing addresses and electronic mail addresses for its distributed generation contact person.

(m) Time periods for processing applications for interconnection and parallel operation. In order to apply for interconnection the customer shall provide the utility a completed application for interconnection and parallel operation. The interconnection of distributed generation shall take place within the following schedule:

  (1) For a facility with pre-certified equipment, interconnection shall take place within four weeks of the utility’s receipt of a completed application.

  (2) For other facilities, interconnection shall take place within six weeks of the utility’s receipt of a completed application.

  (3) If interconnection of a particular facility will require substantial capital upgrades to the utility system, the company shall provide the customer an estimate of the schedule and customer’s cost for the upgrade. If the customer desires to proceed with the upgrade, the customer and the company will enter into a contract for the completion of the upgrade. The interconnection shall take place no later than two weeks following the completion of such upgrades, except in situations in which a customer is not able to connect within two weeks following the completion of such upgrades, this time may be extended by agreement of the electric utility and the customer. The utility shall employ best reasonable efforts to complete such system upgrades in the shortest time reasonably practical.

  (4) A utility shall use best reasonable efforts to interconnect facilities within the time frames described in this subsection. If in a particular instance, a utility determines that it cannot interconnect a facility within the time frames stated in this subsection, it will notify the applicant in writing of that fact. The notification will identify the reason or reasons interconnection could not be performed in accordance with the schedule and provide an estimated date for interconnection.

  (5) All applications for interconnection and parallel operation shall be processed by the utility in a non-discriminatory manner. Applications shall be processed in the order that they are received. It is recognized that certain applications may require minor modifications while they are being reviewed by the utility. Such minor modifications to a pending application shall not require that it be considered incomplete and treated as a new or separate application.

(n) Reporting requirements. Each electric utility shall maintain records concerning applications received for interconnection and parallel operation of distributed generation. Such records will include the name of the applicant, the business address of the applicant, and the location of the proposed facility by county, the capacity rating of the facility in kilowatts, whether the facility is a renewable energy resource as defined in §25.173 of this title (relating to Goal for Renewable Energy), the date each application is received, documents generated in the course of processing each application, correspondence regarding each application, and the final disposition of each application. The owner of a distributed generation facility that is interconnected under this section shall report to the utility any change in ownership of the facility and the cessation of operations of a facility within 14 days of such change. By March 30 of each year, every electric utility shall file with the commission a distributed generation interconnection report for the preceding calendar year that identifies each distributed generation facility interconnected with the utility’s distribution system. The report shall list the new distributed generation facilities interconnected with the system since the previous year’ report, any change in ownership or the cessation of operations of any distributed generation that has been reported to the electric utility and not included in the previous report, the capacity of each facility and whether it is a renewable energy resource, and the feeder or other point on the company’s utility system where the facility is connected. The annual report shall also identify all applications for interconnection received during the previous one-year period, and the disposition of such applications.

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