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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)

  (4) Routine maintenance, repairs, and modifications. A utility may disconnect a customer or a customer’s facility with seven business days prior written notice of a service interruption for routine maintenance, repairs, and utility system modifications. The utility shall reconnect the customer as quickly as reasonably possible following any such service interruption.

  (5) Lack of approved application and interconnection agreement. In order to interconnect distributed generation to a utility system, a customer must first submit to the utility an application for interconnection and parallel operation with the utility system and execute an interconnection agreement on the forms prescribed by the commission. The utility may refuse to connect or may disconnect the customer’s facility if such application has not been received and approved.

(f) Incremental demand charges. During the term of an interconnection agreement a utility may require that a customer disconnect its distributed generation unit and/or take it off-line as a result of utility system conditions described in subsection (e)(3) and (4) of this section. Incremental demand charges arising from disconnecting the distributed generator as directed by company during such periods shall not be assessed by company to the customer.

(g) Pre-interconnection studies for non-network interconnection of distributed generation. A utility may conduct a service study, coordination study or utility system impact study prior to interconnection of a distributed generation facility. In instances where such studies are deemed necessary, the scope of such studies shall be based on the characteristics of the particular distributed generation facility to be interconnected and the utility’s system at the specific proposed location. By agreement between the utility and its customer, studies related to interconnection of on-site distributed generation on the customer’s premises may be conducted by a qualified third party.

  (1) Distributed generation facilities for which no pre-interconnection study fees may be charged. A utility may not charge a customer a fee to conduct a pre-interconnection study for pre-certified distributed generation units up to 500 kW that export not more than 15% of the total load on a single radial feeder and contribute not more than 25% of the maximum potential short circuit current on a single radial feeder.

  (2) Distributed generation facilities for which pre-interconnection study fees may be charged. Prior to the interconnection of a distributed generation facility not described in paragraph (1) of this subsection, a utility may charge a customer a fee to offset its costs incurred in the conduct of a pre-interconnection study. In those instances where a utility conducts an interconnection study the following shall apply:

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

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

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

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

(h) Network interconnection of distributed generation. Certain aspects of secondary network systems create technical difficulties that may make interconnection more costly to implement. In instances where customers request interconnection to a secondary network system, the utility and the customer shall use best reasonable efforts to complete the interconnection and the utility shall utilize the following guidelines:

  (1) A utility shall approve applications for distributed generation facilities that use inverter-based protective functions unless total distributed generation (including the new facility) on affected feeders represents more than 25% of the total load of the secondary network under consideration.

  (2) A utility shall approve applications for other on-site generation facilities whose total generation is less than the local customer’s load unless total distributed generation (including the new facility) on affected feeders represents more than 25% of the total load of the secondary network under consideration.

  (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.

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