Cooperative Policy

Policy Number:    120

Subject:                Interconnection Of Member-Owned Generating Facilities

Objective:             To state the Cooperative's policy regarding interconnection of distributive generating facilities 

                               with the Cooperative's distribution system in compliance with the Energy Policy Act of 2005,

                               PURPA 111(d) Standard (15).

Reference:            Energy Policy Act of 2005, PURPA Title I Standards, SEIEC Management Recommendations,

                               April 18, 2007

Policy: This policy applies to a distributive generating facility that is interconnected with the Cooperative's distribution system that permits parallel operation of the facilities.  This policy does not apply to generation facilities that are used only as backup supply which is only operated thru an approved transfer switch or other appropriate isolation method that completely isolates the generation facility from the Cooperative's distribution system and does not permit parallel operation of the facilities.

All distributive generation facilities that request interconnection to the Cooperative's facilities must comply with the following specifications and standards:

In addition, any distributive generating facility with a nameplate rating of 50 KW or more for residential applications and 200 KW or more for all other applications shall also comply with Southern Illinois Power Cooperative's Facilities Connection Requirements.

All distributive generation facilities must include a disconnect device between the Cooperative's facilities and those facilities owned by the generation facility.  The disconnect device shall meet all requirements of IEEE Standard 1547, National Electric Safety Code, National Electric Code, Underwriters Laboratories and must provide a visible opening between Cooperative facilities and the generation facilities.  The disconnect device shall be readily accessible and be lockable by Cooperative employees.

When the Cooperative receives a request for a qualified distributed generating facility with a nameplate rating of less than 50 KW for residential applications and a nameplate rating of less than 200 KW for all other application, the Cooperative will:

          1.  Provide the applicant with an application (SEIEC Application for Operation of Customer-Owned Generation) that shall

               be completed by the applicant.

          2.  After receipt of the application, the Cooperative will determine if a system impact study is required.  If the system

               impact study is required, the Cooperative will provide the applicant with the cost to perform the study.  The applicant

               will then make the decision to pay for the study and proceed or to abandon the project.

          3.  In the event the system impact study indicates that the generation capacity must be limited, the Cooperative will work

               with the applicant to determine the capacity limit of the generation on a case by case basis.

          4.  The Cooperative will determine the costs of the required system upgrades or additional work that must be performed in

               order to accommodate the interconnection with the facility.  The Cooperative will also perform feasibility studies to

               determine the amount, if any, of stranded costs (reasonable expenses recovered through electric rates that the

               Cooperative charges to pay for the cost to construct and deliver power in a safe, reliable manner) that must be

               recovered by the Cooperative.  The Cooperative may recover the stranded cost thru an upfront contribution or an

               increased facility charge. 

          5.  If the applicant agrees to pay for the required system upgrades, additional work required and the stranded cost

               recovery amount, the applicant will be provided with the interconnection agreement (SEIEC Agreement For

               Interconnection and Parallel Operation of Distributed Generation) which states the requirements of the applicant for

               installation.

          6.  Once the interconnection agreement is executed by both parties and the applicant has paid for all required amounts,

               the Cooperative will proceed with its responsibilities as shown in the agreement.

When the Cooperative receives a request for a qualified, distributive generating facility with a nameplate rating of 50 KW or more for residential applications and a nameplate rating of 200 KW or more for all other applications, the Cooperative and SIPC will:

          1.  Provide the applicant with an application (SEIEC Application for Operation of Customer-Owned Generation) that shall

               be completed by the applicant.

          2.  After receipt of the application, the Cooperative and SIPC will determine if a system impact study is required.  If the

               system impact study is required, the Cooperative will provide the applicant with the cost to perform the study.  The

               applicant will then make the decision to pay for the study and proceed or to abandon the project.

          3.  In the event the system impact study indicates that the generation capacity must be limited, the Cooperative and SIPC

               will work with the applicant to determine the capacity limit of the generation on a case by case basis.

          4.  The Cooperative and SIPC will determine the costs of the required system upgrades or additional work that must be

               performed in order to accommodate the interconnection with the facility.  The Cooperative will also perform feasibility

               studies to determine the amount, if any, of stranded costs (reasonable expenses recovered through electric rates that

               the Cooperative charges to pay for the cost to construct and deliver power in a safe, reliable manner) that must be

               recovered by the Cooperative.  The Cooperative may recover the stranded cost thru an upfront contribution or an

               increased facility charge. 

          5.  If the applicant agrees to pay for the required system upgrades, additional work required and the stranded cost

               recovery amount, the applicant will be provided with the interconnection agreement which states the requirements of

               the applicant for installation.

          6.  Once the interconnection agreement is executed by all parties and the applicant has paid for all required amounts,

               the Cooperative and SIPC will proceed with the respective responsibilities for installation.

The Cooperative retains the right to review the amount of distributed generation interconnected to the distribution system and may limit the total amount connected, if necessary.

Approved:  August 7, 2007