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INTERCONNECTION AGREEMENT

Agreement Number: [________________________________]

Queue Position (if applicable): [________________________________]

Effective Date: [__/__/____]


PARTIES

INTERCONNECTION CUSTOMER (Generator):

Name: [________________________________]

Address: [________________________________]

City, State, ZIP: [________________________________]

Phone: [________________________________]

Email: [________________________________]

INTERCONNECTING UTILITY (Transmission/Distribution Provider):

Company Name: [________________________________]

Address: [________________________________]

City, State, ZIP: [________________________________]

Phone: [________________________________]

Email: [________________________________]

TRANSMISSION PROVIDER (if different):

Name: [________________________________]

Address: [________________________________]


RECITALS

WHEREAS, Interconnection Customer owns or operates a generating facility that it seeks to interconnect with the Interconnecting Utility's system;

WHEREAS, Interconnecting Utility operates an electric transmission and/or distribution system;

WHEREAS, the parties have completed the required interconnection studies and procedures;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:


ARTICLE 1: DEFINITIONS

1.1 "Commercial Operation Date" means the date on which the Generating Facility first produces energy for delivery to the Grid.

1.2 "Generating Facility" means the equipment used to produce electric energy, as described in Exhibit A.

1.3 "In-Service Date" means the date on which the Interconnection Facilities are complete and ready for operation.

1.4 "Interconnection Customer" means the party identified above that owns or operates the Generating Facility.

1.5 "Interconnection Facilities" means the facilities required to interconnect the Generating Facility to the Grid, as described in Exhibit B.

1.6 "Interconnection Request" means the request submitted by Interconnection Customer to interconnect the Generating Facility.

1.7 "Network Upgrades" means modifications to the Utility's system required to accommodate the Generating Facility.

1.8 "Point of Interconnection" or "POI" means the physical location where the Generating Facility connects to the Grid.

1.9 "System Impact Study" means the engineering study evaluating the impact of the Generating Facility on the Grid.


ARTICLE 2: GENERATING FACILITY INFORMATION

2.1 Facility Description

Parameter Specification
Facility Name [________________________________]
Technology Type ☐ Solar PV ☐ Wind ☐ Natural Gas ☐ Battery Storage ☐ Hydro ☐ Other: [________]
Nameplate Capacity [________] MW AC
Maximum Facility Output [________] MW
Minimum Operating Level [________] MW
Reactive Power Capability [________] MVAR
Number of Generating Units [________]

2.2 Facility Location

Physical Address: [________________________________]

Latitude: [________________________________]

Longitude: [________________________________]

County: [________________________________]

State: [________________________________]

2.3 Interconnection Type

☐ Energy Resource Interconnection Service (ERIS)

☐ Network Resource Interconnection Service (NRIS)

☐ Small Generator Interconnection (< 20 MW)

☐ Fast Track Interconnection (< [____] MW)

☐ Net Metering Interconnection

2.4 Voltage Level

☐ Transmission Level: [________] kV

☐ Distribution Level: [________] kV

☐ Secondary Level: [________] V


ARTICLE 3: INTERCONNECTION FACILITIES

3.1 Interconnection Customer's Facilities

Interconnection Customer shall design, construct, own, operate, and maintain the following facilities:

☐ Generation equipment

☐ Step-up transformer(s): [________] MVA, [________]/[________] kV

☐ Collector system

☐ Metering equipment

☐ Protective relays and equipment

☐ SCADA/Communications equipment

☐ Interconnection line to POI: [________] feet/miles of [________] kV line

☐ Other: [________________________________]

3.2 Utility's Interconnection Facilities

Utility shall design, construct, own, operate, and maintain the following facilities:

☐ Metering equipment

☐ Disconnect switches

☐ Protective relays

☐ Breaker(s)

☐ Communications equipment

☐ Other: [________________________________]

3.3 Network Upgrades

The following Network Upgrades are required:

Upgrade Description Estimated Cost Responsibility
[________________________________] $[________] [________]
[________________________________] $[________] [________]
[________________________________] $[________] [________]

Total Estimated Network Upgrade Cost: $[________________________________]


ARTICLE 4: POINT OF INTERCONNECTION

4.1 Location

The Point of Interconnection shall be located at:

[________________________________]

[________________________________]

4.2 Voltage

Nominal voltage at POI: [________] kV

4.3 Configuration

☐ Single radial line

☐ Loop configuration

☐ Network configuration

☐ Other: [________________________________]

4.4 Ownership Demarcation

The point of ownership demarcation shall be: [________________________________]


ARTICLE 5: COSTS AND PAYMENTS

5.1 Study Costs

Study Cost Paid
Feasibility Study $[________] ☐ Yes ☐ No
System Impact Study $[________] ☐ Yes ☐ No
Facilities Study $[________] ☐ Yes ☐ No

5.2 Interconnection Facility Costs

Cost Category Estimated Cost Actual Cost
Interconnection Customer's Facilities $[________] $[________]
Utility's Interconnection Facilities $[________] $[________]
Network Upgrades $[________] $[________]
Total $[________] $[________]

5.3 Payment Terms

☐ Interconnection Customer shall pay 100% of costs prior to construction.

☐ Interconnection Customer shall pay [________]% deposit, balance upon completion.

☐ Costs to be paid in installments: [________________________________]

5.4 Cost Responsibility

☐ Interconnection Customer responsible for all Interconnection Facility costs.

☐ Interconnection Customer responsible for all Network Upgrade costs.

☐ Network Upgrade costs subject to reimbursement per [________________________________].

5.5 True-Up

Final costs shall be reconciled within [________] days of completion, with refund or additional payment as applicable.


ARTICLE 6: MILESTONES AND SCHEDULE

6.1 Critical Milestones

Milestone Target Date Actual Date
Execution of this Agreement [__/__/____] [__/__/____]
Initial Payment Received [__/__/____] [__/__/____]
Engineering Design Complete [__/__/____] [__/__/____]
Permits Obtained [__/__/____] [__/__/____]
Equipment Procurement [__/__/____] [__/__/____]
Construction Start [__/__/____] [__/__/____]
Construction Complete [__/__/____] [__/__/____]
Testing Complete [__/__/____] [__/__/____]
In-Service Date [__/__/____] [__/__/____]
Commercial Operation Date [__/__/____] [__/__/____]

6.2 Extensions

Extensions may be granted for:

☐ Force Majeure events

☐ Delays caused by Utility

☐ Permitting delays beyond Interconnection Customer's control

☐ Other: [________________________________]

6.3 Delay Consequences

Failure to meet milestones may result in:

☐ Loss of queue position

☐ Termination of this Agreement

☐ Forfeiture of deposits

☐ Other: [________________________________]


ARTICLE 7: TESTING AND COMMISSIONING

7.1 Pre-Parallel Testing

Prior to initial parallel operation, the following tests shall be completed:

☐ Protective relay testing

☐ Metering verification

☐ Communication system testing

☐ Control system testing

☐ Generator performance testing

7.2 Parallel Operation Testing

☐ Synchronization testing

☐ Real and reactive power control

☐ Voltage regulation

☐ Frequency response

☐ Fault response

7.3 Witness Testing

☐ Utility shall have the right to witness all tests.

☐ [________] days advance notice of testing required.

7.4 Test Results

Interconnection Customer shall provide test results to Utility within [________] days of testing.


ARTICLE 8: TECHNICAL REQUIREMENTS

8.1 Applicable Standards

The Generating Facility shall comply with:

☐ IEEE 1547 (Standard for Interconnection)

☐ IEEE 1547.1 (Testing Requirements)

☐ UL 1741 (Inverter Safety Standard)

☐ NERC Reliability Standards

☐ RTO/ISO requirements: [________________________________]

☐ Utility's interconnection requirements

☐ National Electrical Code (NEC)

8.2 Power Quality

Parameter Requirement
Voltage Regulation ±[____]% of nominal
Frequency Range [____] Hz to [____] Hz
Power Factor [____] lagging to [____] leading
Harmonic Distortion (THD) < [____]%
Flicker Per IEEE 1547

8.3 Protective Requirements

The Generating Facility shall include the following protective functions:

☐ Over/Under Voltage Protection (27/59)

☐ Over/Under Frequency Protection (81O/81U)

☐ Reverse Power Protection (32)

☐ Ground Fault Protection (50G/51G)

☐ Phase Fault Protection (50/51)

☐ Synchronization Check (25)

☐ Anti-Islanding Protection

☐ Other: [________________________________]

8.4 Disconnection Requirements

The Generating Facility shall automatically disconnect for:

Condition Setting Trip Time
Overvoltage (V > [____]%) [____] V [____] seconds
Undervoltage (V < [____]%) [____] V [____] seconds
Overfrequency [____] Hz [____] seconds
Underfrequency [____] Hz [____] seconds

8.5 Reactive Power Requirements

☐ Facility shall be capable of operating at power factor of [____] lagging to [____] leading.

☐ Facility shall provide voltage support per [________________________________].


ARTICLE 9: METERING

9.1 Revenue Metering

☐ Utility shall install and own revenue meters.

☐ Interconnection Customer shall install and own revenue meters.

☐ Meters shall meet ANSI C12 standards.

9.2 Meter Location

Revenue meters shall be located at: [________________________________]

9.3 Metering Configuration

☐ Bi-directional metering

☐ Separate meters for generation and consumption

☐ Net metering

☐ Other: [________________________________]

9.4 Meter Data

☐ Meter data shall be transmitted to: [________________________________]

☐ Meter data intervals: [________] minutes

☐ Data access provided to: ☐ Interconnection Customer ☐ RTO/ISO ☐ Other

9.5 Meter Testing

Meters shall be tested:

☐ Before initial operation

☐ Annually

☐ Upon request by either party


ARTICLE 10: OPERATIONS

10.1 Operating Requirements

Interconnection Customer shall:

☐ Operate in compliance with Good Utility Practice

☐ Maintain 24/7 contact capability

☐ Coordinate with Utility's system operations

☐ Comply with dispatch instructions (if applicable)

☐ Participate in required market operations

10.2 Curtailment

☐ Utility may curtail output for:

☐ System reliability

☐ System emergencies

☐ Transmission constraints

☐ Maintenance

☐ [________] minutes advance notice required (except emergencies)

☐ Compensation for curtailment: [________________________________]

10.3 Outage Coordination

☐ [________] days advance notice required for scheduled outages.

☐ Parties shall coordinate maintenance schedules.

☐ Emergency outage notification as soon as practicable.

10.4 SCADA/Telemetry

☐ Real-time data transmission required.

☐ Data points to be provided: [________________________________]

☐ Communication protocol: [________________________________]


ARTICLE 11: TERM AND TERMINATION

11.1 Term

This Agreement shall become effective on the Effective Date and continue for [________] years, unless earlier terminated.

11.2 Renewal

☐ Agreement shall automatically renew for successive [________] year terms unless terminated.

☐ Renewal requires written agreement.

11.3 Termination

This Agreement may be terminated:

☐ By either party upon [________] months written notice

☐ By Utility upon default by Interconnection Customer

☐ By Interconnection Customer upon permanent retirement of Generating Facility

☐ Upon failure to achieve Commercial Operation by [__/__/____]

11.4 Effect of Termination

Upon termination:

☐ Interconnection Customer shall disconnect and remove facilities

☐ Security deposits shall be returned (less amounts owed)

☐ Surviving obligations: [________________________________]


ARTICLE 12: SECURITY

12.1 Security Requirement

Interconnection Customer shall provide security in the amount of:

☐ $[________] (fixed amount)

☐ $[________] per MW of capacity

☐ [________]% of estimated Network Upgrade costs

12.2 Form of Security

☐ Cash deposit

☐ Letter of credit

☐ Surety bond

☐ Parent company guarantee

12.3 Security Reduction

Security may be reduced upon:

☐ Achievement of Commercial Operation

☐ Completion of Network Upgrades

☐ Other: [________________________________]


ARTICLE 13: LIABILITY AND INDEMNIFICATION

13.1 Limitation of Liability

NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR INDIRECT DAMAGES.

13.2 Interconnection Customer's Indemnification

Interconnection Customer shall indemnify Utility for claims arising from:

☐ Operation of the Generating Facility

☐ Interconnection Customer's negligence

☐ Breach of this Agreement

13.3 Utility's Indemnification

Utility shall indemnify Interconnection Customer for claims arising from:

☐ Utility's negligence

☐ Breach of this Agreement


ARTICLE 14: INSURANCE

14.1 Required Insurance

Interconnection Customer shall maintain:

Type Minimum Coverage
Commercial General Liability $[________] per occurrence
Property Insurance Full replacement cost
Workers' Compensation Statutory limits

14.2 Additional Insured

Utility shall be named as additional insured.

14.3 Proof of Insurance

Certificates of insurance shall be provided:

☐ Upon execution

☐ Annually

☐ Upon request


ARTICLE 15: DISPUTE RESOLUTION

15.1 Informal Resolution

Parties shall attempt good faith resolution for [________] days.

15.2 Formal Resolution

☐ FERC dispute resolution procedures

☐ State commission dispute resolution procedures

☐ Arbitration under [________________________________]

☐ Litigation in courts of [________________________________]

15.3 Governing Law

This Agreement shall be governed by the laws of [________________________________].


ARTICLE 16: MISCELLANEOUS

16.1 Assignment

☐ Assignment requires prior written consent.

☐ Assignment to lenders permitted without consent.

16.2 Amendments

Amendments must be in writing signed by both parties.

16.3 Notices

All notices to addresses above or as updated in writing.

16.4 Entire Agreement

This Agreement constitutes the entire agreement.

16.5 Counterparts

May be executed in counterparts.


EXHIBITS

☐ Exhibit A: Generating Facility Description

☐ Exhibit B: Interconnection Facilities

☐ Exhibit C: One-Line Diagram

☐ Exhibit D: Milestone Schedule

☐ Exhibit E: Technical Specifications

☐ Exhibit F: Metering Diagram

☐ Exhibit G: Insurance Requirements


SIGNATURES

INTERCONNECTION CUSTOMER:

Signature: [________________________________]

Printed Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

INTERCONNECTING UTILITY:

Signature: [________________________________]

Printed Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]


This Interconnection Agreement template is provided for informational purposes only. Interconnection requirements vary significantly by utility, RTO/ISO, and jurisdiction. Consult with qualified legal and engineering professionals before execution.

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