Level 1

Applicability

To qualify for a Level 1 interconnection process, the proposed Distributed Energy Resource (DER) must be inverter based and no larger than 25 kW (AC). In addition to submitting an Interconnection Application and paying the MPEI Interconnection Tariff, the DER Interconnection Application must pass the following Screens:

1. The proposed interconnection resource point of interconnection must be on a portion of MPEI’s distribution system that is subject to MPEI’s tariffs. Proposed interconnection resources on highly seasonal circuits shall also be subject to the supplemental review (pursuant to 4 CCR 723-3 3855(d)) which includes additional screens such as:

• Minimum Load Screen
• Voltage and Power Quality Screen
• Safety and Reliability Screen

2. For interconnection of a proposed interconnection resource to a radial distribution circuit, the aggregated generation, including the proposed interconnection resources, on the line section(s) shall not exceed 15 percent of the line section’s annual peak load as most recently measured at the substation or calculated for the line section(s). A line section is that portion of a utility’s electric system connected to a customer bounded by automatic sectionalizing devices or the end of the distribution line.

3. The proposed interconnection resource, in aggregation with other generation on the distribution circuit, shall not contribute more than 10% (ten percent) to the distribution circuit’s maximum fault current at the point on the distribution feeder voltage (primary) level nearest the proposed point of interconnection.

4. The proposed interconnection resource, in aggregate with other interconnection resources on the distribution circuit, shall not cause any distribution protective devices and equipment (including, but not limited to, substation breakers, fuse cutouts, and line reclosers), or interconnection customer equipment on the system to exceed 87.5 percent of the short circuit interrupting capability; nor shall the interconnection be proposed for a circuit that already exceeds 87.5 percent of the short circuit interrupting capability.

5. The type of interconnection to a primary distribution line shall be determined based on the table below, including a review of the type of electrical service provided to the interconnection customer, line configuration, and the transformer connection to limit the potential for creating over-voltages on the utility’s electric power system due to a loss of ground during the operating time of any anti-islanding function.

6. If the proposed interconnection resource is to be interconnected on a single-phase secondary, the aggregate generation capacity on the shared secondary, including the proposed small generating facility, shall not exceed 25 kW.

7. If the proposed interconnection resource is single-phase and is to be interconnected on a center tap neutral of a 240 volt service, its addition shall not create an imbalance between te two sides of the 240 volt service of more than 20% (twenty percent) of the nameplate rating of the service transformer.

8. No construction of facilities by the utility on its own system shall be required to accommodate the small generating facility.

Application Procedures

1. The Interconnection Customer contacts MPEI and obtains an Interconnection Application.

2. The Interconnection Customer submits the Application to MPEI with all design data required by MPEI and submits the Interconnection Application Fee as listed in the MPEI Interconnection Tariff

3. MPEI shall notify the Interconnection Customer within three (3) business days of receipt of the Application and Fee.

4. MPEI evaluates the Application for completeness and notifies the Interconnection Customer, within ten (10) business days of receipt, whether the Application is complete and, if not, advises the Interconnection Customer what material is missing. The Interconnection Customer may submit the missing information or request an extension within ten (10) business days of receipt of MPEI’s notice of incompleteness. If the Interconnection Customer does not provide the missing information or submit a request for extension, the Application is deemed withdrawn and the Interconnection Customer may re-submit the Application within one year without paying an additional fee.

5. Within ten (10) business days of receiving a complete Application, MPEI conducts preliminary engineering studies, if warranted, to determine the effect the Facility might have on existing MPEI customers and equipment.

6. Any material modification to the Application by the Interconnection Customer may be deemed by MPEI to be a withdrawal of the Application and may require a new submission. MPEI shall evaluate whether the proposed modification constitutes a material modification within ten (10) business days of receipt of the proposed modification.

7. If the Application requires an increase in capacity for an existing distributed energy resource, the request shall be evaluated on the basis of the new total capacity. If the request is for a distributed energy resource that includes multiple components at a site for which the Interconnection Customer seeks a single point of interconnection, the request shall be evaluated on the basis of the aggregate capacity of the multiple components.

8. If it is determined that the interconnection of the Facility will require upgrades to the existing MPEI equipment, MPEI will estimate the costs to complete the interconnection and notify the Interconnection Customer of the added costs. If the Interconnection Customer desires to proceed this will require a system design job.

9. Provided all the criteria in the Interconnection Standards are met, unless MPEI determines and demonstrates that the applicable Facility cannot be interconnected safely and reliably, MPEI approves the Application and returns an executed copy to the Interconnection Customer.

10. The Interconnection Customer pays Interconnection costs to MPEI, if applicable.

11. MPEI designs and constructs the interconnection and modifies the existing MPEI system as necessary to accept the Facility.

12. Interconnection Customer provides the State inspection report (or other as applicable) and notifies MPEI that the system is prepared for parallel operation.

13. MPEI validates system information, executes a meter exchange, and provides notification to the Interconnection Customer of MPEI’s readiness for parallel operation of the system.

Interconnection Terms and Conditions

1. Construction of the Facility

The Interconnection Customer may proceed to construct the interconnection resource with MPEI approves the interconnection request (the Application) and returns it to the Interconnection Customer.

2. Interconnection and Operation

The Interconnection Customer may operate the interconnection resource and interconnect with MPEI”s electric system after all of the following have occurred:

• Upon completing construction, the Interconnection Customer will cause the interconnection resource to be inspected or otherwise certified by the appropriate local electrical wiring inspector with jurisdiction:
• The Interconnection Customer returns the certificate of completion and/or the State electrical inspection verification to MPEI; and
• If not previously waived by MPEI, MPEI has completed its inspection of the interconnection resource. All inspections must be conducted by MPEI, at MPEI’s expense, within ten (10) business days after receipt of the certificate of completion and shall take place at a time agreeable to the parties. MPEI shall provide a written statement that the interconnection resource has passed inspection or shall notify the customer of what steps it must take to pass inspection as soon as practicable after the inspection takes place.
• MPEI has the right to disconnect the interconnection resource in the event of improper installation or failure to return the certificate of completion.

3. Safe Operations and Maintenance

The Interconnection Customer shall be fully responsible to operate, maintain, and repair the interconnection resource as required to ensure that it complies at all times with the interconnections standards to which it has been certified.

4. Access

MPEI shall have access to the disconnect switch and metering equipment of the interconnection resources at all times. MPEI shall provide reasonable notice to the customer when possible prior to using its right of access.

5. Disconnection

MPEI may temporarily disconnect the interconnection resource as allowed in the interconnection agreement upon the following conditions:

• For scheduled outages per notice requirements in MPEI’s tariff or CPUC rules;
• For unscheduled outages or emergency conditions pursuant to MPEI’s tariff or CPUC rules; or
• If the interconnection resource does not operate in the manner consistent with these terms and conditions.
• MPEI shall inform the Interconnection Customer in advance of any scheduled disconnection, or as is reasonable after an unscheduled disconnection.

6. Indemnification

The parties shall at all times indemnify, defend, and save the other party harmless from, any and all damages, losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demand, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other party’s action or inactions of its obligations under this agreement on behalf of the indemnifying party, except in cases of gross negligence or intentional wrongdoing by the indemnified party.

7. Insurance

The Interconnection Customer is not required to provide general liability insurance coverage as part of this agreement, or through any other MPEI requirement.

8. Limitation of Liability

Each party’s liability to the other party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in its performance of the interconnection agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either party be liable to the other party for any indirect, incidental, special, consequential, or punitive damages of any kind whatsoever, except as allowed under Section 6 of these terms.

9. Termination

The interconnection agreement to operate in parallel may be terminated under the following conditions:

• By the customer by providing written notice to MPEI
• By MPEI in the interconnection resource fails to operate for any consecutive 12-month period or the customer fails to remedy a violation of these terms and conditions.
• Permanent disconnection. In the event the interconnection agreement is terminated, MPEI shall have the right to disconnect its facilities or direct the customer to disconnect its interconnection resource.
• Survival rights. The interconnection agreement shall continue in effect after termination to the extent necessary to allow or require either party to fulfill rights or obligation that arose under the agreement.

10. Assignment/Transfer of ownership of the facility. The interconnection agreement shall survive the transfer of ownership of the small generation facility to a new owner when the new oner agrees in writing to comply with the terms of the agreements and so notifies MPEI. Alternative, the new owner can enter into a new Interconnection Agreement with MPEI.

Certification Codes & Standards

When stated version of the following codes and standards is superseded by an approved revision, then that revision shall apply.

• IEEE Std 1547-2018, IEEE Standard for Interconnection and Interoperability of Distributed Energy Resources with Associated Electric Power Systems Interfaces (including 1547.1 testing protocols to establish conformity)
• UL 1741 Inverters, Converters, and Controllers for Use in Independent Power Systems
• NFPA 70 (2017), National Electrical Code
• ANSI C84.1-2016 Electric Power Systems and Equipment – Voltage Ratings (60 Hertz)
• ANSI/NEMA MG 1—2016, Motors and Generators
• IEEE Std C37.90.1-2012, IEEE Standard Surge Withstand Capability (SWC) Tests for Protective Relays and Relay Systems
• IEEE std C37.90.2-2004, IEEE Standard Withstand Capability of Relay Systems to Radiated Electromagnetic Interference from Transceivers
• IEEE Std C62.41.2-2002/Cor 1-2012, IEEE Recommended Practice on Characterization of Surges in Low Voltage (1000V and Less) AC Power Circuits Corrigendum 1: Deletion of Table A.2 and Associated Text
• IEEE Std C62.45-2002, IEEE Recommended Practice on Surge Testing for Equipment Connectyed to Low-Voltage (1000V and Less) AC Power Circuits
• IEEE Std 100-2000, The Authoritative Dictionary of IEEE Standards Terms, Seventh Edition
• IEEE Std 519-2014, IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems
• IEEE Std 1453-2015 IEEE Recommended Practice for the Analysis of Fluctuating Installation on Power Systems

Certification of DER Packages

1. Small generating facility equipment proposed for use separately or packaged with other equipment in an interconnection system shall be considered certified for interconnected operation if it has been tested in accordance with industry standards for continuous utility interactive operation in compliance with the appropriate codes and standards referenced below by any Nationally Recognized Testing Laboratory (NRTL) recognized by the United States Occupational Safety and Health Administration to test and certify interconnection equipment pursuant to the relevant codes and standards listed in rule 4 CCR 723-3 (3857); it has been labeled and is publicly listed by such NRTL at the time of the interconnection application; and, such NRTL makes readily available for verification all test standards and procedures it utilized in performing such equipment certification, and, with consumer approval, the test data itself. The NRTL may make such information available on its website and by encouraging such information to be included in the manufacturer’s literature accompanying the equipment.

2. The Interconnection Customer must verify that the intended use of the equipment falls within the use or uses for which the equipment was tested, labeled, and listed by the NRTL.

3. Certified equipment shall not require further type-test review, testing, or additional equipment to meet the requirements of this interconnection procedure; however, nothing herein shall preclude the need for an on-site commissioning test by the parties to the interconnection for follow-up production testing by the NRTL.

4. If the certified equipment package includes only interface components (switchgear, inverters, or other interface devices), then an Interconnection Customer must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and is consistent with the testing listing specified for this type of interconnection equipment.

5. Provided the generator or electric source, when combined with the equipment package, is within the range of capabilities for which it was tested by the NRTL and does not violate the interface components’ labeling and listing performed by the NRTL, no further design review, testing or additional equipment on the customer side of the point of interconnection shall be required to meet the requirements of these interconnection procedures.

6. An equipment package does not include equipment provided by MPEI.

Interconnection Terms and Conditions

1. Construction of the Facility

The Interconnection Customer may proceed to construct the interconnection resource with MPEI approves the interconnection request (the Application) and returns it to the Interconnection Customer.

2. Interconnection and Operation

The Interconnection Customer may operate the interconnection resource and interconnect with MPEI”s electric system after all of the following have occurred:

• Upon completing construction, the Interconnection Customer will cause the interconnection resource to be inspected or otherwise certified by the appropriate local electrical wiring inspector with jurisdiction:
• The Interconnection Customer returns the certificate of completion and/or the State electrical inspection verification to MPEI; and
• If not previously waived by MPEI, MPEI has completed its inspection of the interconnection resource. All inspections must be conducted by MPEI, at MPEI’s expense, within ten (10) business days after receipt of the certificate of completion and shall take place at a time agreeable to the parties. MPEI shall provide a written statement that the interconnection resource has passed inspection or shall notify the customer of what steps it must take to pass inspection as soon as practicable after the inspection takes place.
• MPEI has the right to disconnect the interconnection resource in the event of improper installation or failure to return the certificate of completion.

3. Safe Operations and Maintenance

The Interconnection Customer shall be fully responsible to operate, maintain, and repair the interconnection resource as required to ensure that it complies at all times with the interconnections standards to which it has been certified.

4. Access

MPEI shall have access to the disconnect switch and metering equipment of the interconnection resources at all times. MPEI shall provide reasonable notice to the customer when possible prior to using its right of access.

5. Disconnection

MPEI may temporarily disconnect the interconnection resource as allowed in the interconnection agreement and upon the following conditions:

• For scheduled outages per notice requirements in MPEI’s tariff or CPUC rules;
• For unscheduled outages or emergency conditions pursuant to MPEI’s tarif or CPUC rules; or
• If the interconnection resource does not operate in the manner consistent with these terms and conditions.
• MPEI shall inform the Interconnection Customer in advance of any scheduled disconnection, or as is reasonable after an unscheduled disconnection.

6. Indemnification

The parties shall at all times indemnify, defend, and save the other party harmless from, any and all damages, losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demand, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other party’s action or inactions of its obligations under this agreement on behalf of the indemnifying party, except in cases of gross negligence or intentional wrongdoing by the indemnified party.

7. Insurance

The Interconnection Customer is not required to provide general liability insurance coverage as part of this agreement, or through any other MPEI requirement.

8. Limitation of Liability

Each party’s liability to the other party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in its performance of the interconnection agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either party be liable to the other party for any indirect, incidental, special, consequential, or punitive damages of any kind whatsoever, except as allowed under Section 6 of these terms.

9. Termination

The interconnection agreement to operate in parallel may be terminated under the following conditions:

• By the customer by providing written notice to MPEI
• By MPEI in the interconnection resource fails to operate for any consecutive 12-month period or the customer fails to remedy a violation of these terms and conditions.
• Permanent disconnection: In the event the interconnection agreement is terminated, MPIE shall have the right to disconnect its facilities or direct the customer to disconnect its interconnection resource.
• Survival rights: The interconnection agreement shall continue in effect after termination to the extent necessary to allow or require either party to fulfill rights or obligation that arose under the agreement.

10. Assignment/Transfer of ownership of the facility. The interconnection agreement shall survive the transfer of ownership of the small generation facility to a new owner when the new owner agrees in writing to comply with the terms of the agreements and so notifies MPEI. Alternative, the new owner can enter into a new Interconnection Agreement with MPEI.

Certification Codes & Standards

When stated version of the following codes and standards is superseded by an approved revision, then that revision shall apply.

• IEEE Std 1547-2018, IEEE Standard for Interconnection and Interoperability of Distributed Energy Resources with Associated Electric Power Systems Interfaces (including 1547.1 testing protocols to establish conformity)
• UL 1741 Inverters, Converters, and Controllers for Use in Independent Power Systems
• NFPA 70 (2017), National Electrical Code
• ANSI C84.1-2016 Electric Power Systems and Equipment – Voltage Ratings (60 Hertz)
• ANSI/NEMA MG 1—2016, Motors and Generators
• IEEE Std C37.90.1-2012, IEEE Standard Surge Withstand Capability (SWC) Tests for Protective Relays and Relay Systems
• IEEE std C37.90.2-2004, IEEE Standard Withstand Capability of Relay Systems to Radiated Electromagnetic Interference from Transceivers
• IEEE Std C62.41.2-2002/Cor 1-2012, IEEE Recommended Practice on Characterization of Surges in Low Voltage (1000V and Less) AC Power Circuits Corrigendum 1: Deletion of Table A.2 and Associated Text
• IEEE Std C62.45-2002, IEEE Recommended Practice on Surge Testing for Equipment Connectyed to Low-Voltage (1000V and Less) AC Power Circuits
• IEEE Std 100-2000, The Authoritative Dictionary of IEEE Standards Terms, Seventh Edition
• IEEE Std 519-2014, IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems
• IEEE Std 1453-2015 IEEE Recommended Practice for the Analysis of Fluctuating Installation on Power Systems

Certification of DER Packages

1. Small generating facility equipment proposed for use separately or packaged with other equipment in an interconnection system shall be considered certified for interconnected operation if it has been tested in accordance with industry standards for continuous utility interactive operation in compliance with the appropriate codes and standards referenced below by any Nationally Recognized Testing Laboratory (NRTL) recognized by the United States Occupational Safety and Health Administration to test and certify interconnection equipment pursuant to the relevant codes and standards listed in rule 3857; it has been labeled and is publicly listed by such NRTL at the time of the interconnection application; and, such NRTL makes readily available for verification all test standards and procedures it utilized in performing such equipment certification, and, with consumer approval, the test data itself. The NRTL may make such information available on its website and by encouraging such information to be included in the manufacturer’s literature accompanying the equipment.

2. The Interconnection Customer must verify that the intended use of the equipment falls within the use or uses for which the equipment was tested, labeled, and listed by the NRTL.

3. Certified equipment shall not require further type-test review, testing, or additional equipment to meet the requirements of this interconnection procedure; however, nothing herein shall preclude the need for an on-site commissioning test by the parties to the interconnection for follow-up production testing by the NRTL.

4. If the certified equipment package includes only interface components (switchgear, inverters, or other interface devices), then an Interconnection Customer must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and is consistent with the testing listing specified for this type of interconnection equipment.

5. Provided the generator or electric source, when combined with the equipment package, is within the range of capabilities for which it was tested by the NRTL and does not violate the interface components’ labeling and listing performed by the NRTL, no further design review, testing or additional equipment on the customer side of the point of interconnection shall be required to meet the requirements of these interconnection procedures.

6. An equipment package does not include equipment provided by MPEI

Level 2

Applicability

To qualify for a Level 2 interconnection process, the proposed Distributed Energy Resource (DER) must meet the criteria listed below in the Table - Level 2 Process Eligibility for Inverter Based Systems or Be no larger than 2 MW AC if the DER system is a synchronous or induction facility.

Level 2 Process Eligibility for Inverter-Based Systems

In addition to submitting an Interconnection Application and paying the MPEI Interconnection Tariff, the DER Interconnection Application must pass the following Screens:

1. The proposed interconnection resource point of interconnection must be on a portion of MPEI’s distribution system that is subject to MPEI’s tariffs. Proposed interconnection resources on highly seasonal circuits shall also be subject to the supplemental review (pursuant to 4 CCR 723-3 3855(d)) which includes additional screens such as:

• Minimum Load Screen
• Voltage and Power Quality Screen
• Safety and Reliability Screen

2. For interconnection of a proposed interconnection resource to a radial distribution circuit, the aggregated generation, including the proposed interconnection resources, on the line section(s) shall not exceed 15 percent of the line section’s annual peak load as most recently measured at the substation or calculated for the line section(s). A line section is that portion of a utility’s electric system connected to a customer bounded by automatic sectionalizing devices or the end of the distribution line.

3. The proposed interconnection resource, in aggregation with other generation on the distribution circuit, shall not contribute more than 10% (ten percent) to the distribution circuit’s maximum fault current at the point on the distribution feeder voltage (primary) level nearest the proposed point of interconnection.

4. The proposed interconnection resource, in aggregate with other interconnection resources on the distribution circuit, shall not cause any distribution protective devices and equipment (including, but not limited to, substation breakers, fuse cutouts, and line reclosers), or interconnection customer equipment on the system to exceed 87.5 percent of the short circuit interrupting capability; nor shall the interconnection be proposed for a circuit that already exceeds 87.5 percent of the short circuit interrupting capability.

5. The proposed interconnection resource shall meet the rapid voltage change and flicker requirements of IEEE Standard 1453 (2015) and IEEE Standard 1547-2018, until January 1, 2022, or until such time new DERs applying for interconnection will comply with IEEE 1547- 2018 based on the appropriate test. This rule does not include any later amendments or editions of these standards. These standards are available for public inspection at the Commission’s office, 1560 Broadway, Suite 250, Denver, CO 80202.

6. The type of interconnection to a primary distribution line shall be determined based on the table below, including a review of the type of electrical service provided to the interconnection customer, line configuration, and the transformer connection to limit the potential for creating over-voltages on MPEI’s electric power system due to a loss of ground during the operating time of any anti-islanding function.

7. If the proposed interconnection resource is to be interconnected on a single-phase secondary, the aggregate generation capacity on the shared secondary, including the proposed small generating facility, shall not exceed 25 kW.

8. If the proposed interconnection resource is single-phase and is to be interconnected on a center tap neutral of a 240 volt service, its addition shall not create an imbalance between the two sides of the 240 volt service of more than 20% (twenty percent) of the nameplate rating of the service transformer.

9. No construction of facilities by MPEI on its own system shall be required to accommodate the small generating facility.

10. For interconnection of a proposed interconnection resource to the load side of spot network protectors serving more than a single customer, the proposed interconnection resource must utilize an inverter-based equipment package and, together with the aggregated other invert-based interconnection resource, shall not exceed the smaller of 5 percent of a spot network’s maximum load or 300 kW. For spot networks serving a single customer, the interconnection resource must use an inverter-based equipment package and either meet the requirements above or shall use a protection scheme or operate the generator so as not to exceed on-site load or otherwise prevent nuisance operation of the spot network protectors.

Proposed interconnection resource must utilize an inverter-based equipment package and, together with the aggregated other inverter-based interconnection resource, shall not exceed the smaller of 10 percent of an area network’s minimum load or 500 kW AC.

12. The nameplate capacity of a proposed interconnection resource, in combination with the nameplate capacity of any previously interconnected interconnection resource, shall not exceed the capacity of the customer’s existing electrical service unless there is a simultaneous request for an upgrade to the customer’s electrical service, regardless of exporting or non-exporting designations for any of the interconnection resources. 

Application Procedures

1. The Interconnection Customer contacts MPEI and obtains an Interconnection Application.

2. The Interconnection Customer submits the Application to MPEI with all design data required by MPEI and submits the Interconnection Application Fee as listed in the MPEI Interconnection Tariff

3. MPEI shall notify the Interconnection Customer within three (3) business days of receipt of the Application and Fee.

4. MPEI evaluates the Application for completeness and notifies the Interconnection Customer, within ten (10) business days of receipt, whether the Application is complete and, if not, advises the Interconnection Customer what material is missing. The Interconnection Customer may submit the missing information or request an extension within ten (10) business days of receipt of MPEI’s notice of incompleteness. If the Interconnection Customer does not provide the missing information or submit a request for extension, the Application is deemed withdrawn and the Interconnection Customer may re-submit the Application within one year without paying an additional fee.

5. Within fifteen (15) business days of receiving a complete Application, MPEI conducts its initial review and notifies the interconnection customer of the results.

6. If MPEI’s initial review of the application determines the proposed interconnection fails the screening criteria (summarized in the Applicability Section above and listed in 4 CCR 723-3 (3855)) and MPEI cannot determine from its initial review if the interconnection resource may, after minor modifications, be interconnected consistent with safety, reliability, and power quality standards, MPEI will provide an opportunity for the interconnection customer to have a customer options meeting with MPEI, and MPEI will provide the interconnection customer with reasons for failure.

7. If MPEI determines the interconnection request cannot be approved:

• without minor modifications at minimal cost;
• without a supplemental study or other additional studies or actions;
• and without significant costs to address safety, reliability, or power quality problems,

MPEI shall notify the interconnection customer within five (5) business days after the determination. Within 10 (ten) business days of MPEI’s determination, MPEI will offer the interconnection customer the option of convening a customer options meeting with MPEI to review results and determine what further steps are needed to permit the interconnection of the customer’s small generating facility. MPEI shall, in the customer options meeting or at when notifying the interconnection customer of MPEI’s determination, offer to:

• perform modifications to the MPEI electric system and provide a non-binding good faith estimate to make such modifications if such modifications would permit the interconnection of the customer’s small generating facility;
• perform a supplemental review and provide a non-binding good faith estimate of the costs and time of such review; and
• obtain the interconnection customer’s agreement to continue evaluation of the customer’s interconnection request under the Level 3 study process.

8. To accept MPEI’s offer to conduct a supplemental review, the Interconnection Customer, within 15 (fifteen) business days of MPEI’s offer, shall agree in writing to the supplemental review and submit a deposit for the estimated costs. If the written agreement and deposit have not been received by MPEI within the 15 (fifteen) business days, the interconnection request shall continue to be evaluated under the Level 3 Process, unless the request is withdrawn by the Interconnection Customer. The Interconnection Customer must pay any review costs that exceed the deposit within 20 (twenty) business days of receipt of the invoice or resolution of any dispute. If the deposit exceeds the invoiced costs, MPEI will return such excess within 20 (twenty) business days of the invoice without interest.

• Within 30 business days following receipt of the deposit for a supplemental review, MPEI will perform a supplemental review of the proposed interconnection resource using the screens set forth below, notify the interconnection customer of the results of the screens in writing, and include with the notification copies of the analysis and data underlying MPEI’s determinations.
• The interconnection customer may specify the order in which MPEI completes the supplemental review screens.
• MPEI shall notify the interconnection customer of the failure of the interconnection resource in any supplement review screen or of MPEI’s inability to perform any screen for the interconnection resource. Within 2 (two) business days of the receipt of such notice, the interconnection customer may grant MPEI permission:
  • to continue evaluating the proposed interconnection under 4 CCR 723-3 (3855(d));
  • to continue evaluating the proposed interconnection under 4 CCR 723-3 (3855(d)) subject to MPEI’s determination of minor modifications;
  • to terminate the supplemental review and instead to continue evaluating the interconnection resource under the Level 3 Process; or
  • to terminate the supplemental review upon withdrawal of the interconnection request by the interconnection customer.
• Minimum load, minimum loading, and minimum load data shall be specific to time(s) that the interconnection resource exports active power to MPEI.
• Supplemental Review Screens:
  • Minimum load screen:
    • The interconnection resource capacity on the line section(s) shall be less than 100 percent of the minimum load for all line sections bounded by automatic sectionalizing devices upstream of the proposed interconnection resource. Energy storage system(s), proposed and aggregated capacity for purposes of this screen, shall be based on 4 CCR 723-3 subparagraph 3853(c)(III).
    • This screen shall be determined using 12 months of line section(s) minimum load data (including onsite load but not station service load served by the proposed interconnection resource), calculated minimum load data, or estimated minimum load data using existing data a power flow model. If minimum load data is not available or the minimum load data cannot be calculated or estimated, MPEI shall include the reason(s) that it is unable to calculate, estimate or determine minimum load in its supplemental review results notification under 4 CCR 723-3 subparagraph 3855(d)(IV).
    • The type of interconnection resource shall be taken into account when calculating or estimating circuit or line section(s) minimum load. MPEI shall use daytime minimum load for solar photovoltaic (PV) interconnection resource with no battery storage (i.e.,10 a.m. to 4 p.m. for fixed panel systems and 8 a.m. to 6 p.m. for PV systems utilizing tracking systems). MPEI shall use absolute minimum load for all other types of interconnection resource.
    • Only the net injection into MPEI’s electric system shall be considered as part of the interconnection resource when this screen is applied to interconnection resource serving some station service load.
    • MPEI shall not consider as part of the interconnection resource the capacity known to be already reflected in the minimum load data.
  • Voltage and power quality screen:
    • In aggregate with existing interconnection resource on the circuit and line section(s), the voltage regulation on the circuit and line section(s) shall be maintained in compliance with relevant requirements under all system conditions;
    • In aggregate with existing interconnection resource on the circuit and line section(s), the voltage fluctuation shall be within acceptable limits as defined by IEEE Standard 1453-2015 and conforming with IEEE Standard 1453-2015, while also taking into account activated inverter functionality, and by the limits defined by IEEE Standard 1547-2018. This rule does not include any later amendments or editions of these standards. These standards are available for public inspection at the Commission’s office, 1560 Broadway, Suite 250, Denver, CO 80202; and
    • In aggregate with existing interconnection resource on the circuit and line section(s), the harmonic levels shall meet IEEE Standard 519 (2014) limits. This rule does not include any later amendments or editions of these standards. These standards are available for public inspection at the Commission’s office, 1560 Broadway, Suite 250, Denver, CO 80202.
  • Safety and reliability screen:
    • The location of the proposed interconnection resource and the aggregate interconnection resource capacity on the line section(s) shall not create impacts to safety or reliability that cannot be adequately addressed without application of the Level 3 Process.
    • Minimum load, minimum loading and minimum load data shall be specific to time(s) of interconnection resource export capacity.
    • MPEI shall consider whether the line section(s) has significant minimum loading levels dominated by a small number of customers (e.g., several large commercial customers).
    • MPEI shall consider whether the loading along the line section(s) is uniform or even given the sources of the screening data.
    • MPEI shall consider whether the proposed interconnection resource is located in close proximity to a substation (i.e., less than 2.5 electrical circuit miles) and whether the line section(s) from the substation to the point of interconnection is a mainline rated for normal and emergency ampacity.
    • MPEI shall consider whether the proposed interconnection resource incorporates a time delay function to prevent reconnection of the interconnection resource to MPEI’s system until system voltage and frequency are within normal limits for a prescribed time.
    • MPEI shall consider whether operational flexibility is reduced by the proposed interconnection resource, such that transfer of the line distribution circuit/substation may trigger overloads or voltage issues.
    • MPEI shall consider whether the proposed interconnection resource employs equipment or systems certified by a recognized standards organization to address technical issues such as, but not limited to, islanding, reverse power flow, and voltage quality.

9. Interconnection agreements.

• If the proposed interconnection passes the screens, the interconnection request shall be approved and MPEI will provide the Interconnection Customer an executable interconnection agreement within five business days after the determination.
• If the proposed interconnection fails the screens, but MPEI determines that the small generating facility may nevertheless be interconnected consistent with safety, reliability, and power quality standards, MPEI shall provide the IC an executable interconnection agreement within 5 (five) business days after the determination.
• If the interconnection customer agrees to pay for the modifications to MPEI’s electric system as identified by MPEI pursuant to 4 CCR 723-3 subparagraph 3855(c)(II)(A), MPEI will provide the interconnection customer with an executable interconnection agreement within 10 (ten) business days of the customer options meeting.
• If the interconnection customer agrees to pay for the modifications to MPEI’s electric system as identified by MPEI pursuant to 4 CCR 723-3 subparagraph 3855(d)(VII), MPEI will provide the interconnection customer with an executable interconnection agreement within 5 (five) business days of IC agreement to pay.

10. If the supplemental screening meets utility determined adequacy with minor modifications, MPEI shall provide a non-binding good faith estimate of the limited cost to make such modifications to MPEI's electric system upon notification of review results.

11. Any material modification to the Application by the Interconnection Customer may be deemed by MPEI to be a withdrawal of the Application and may require a new submission. MPEI shall evaluate whether the proposed modification constitutes a material modification within ten (10) business days of receipt of the proposed modification.

12. If the Application requires an increase in capacity for an existing distributed energy resource, the request shall be evaluated on the basis of the new total capacity. If the request is for a distributed energy resource that includes multiple components at a site for which the Interconnection Customer seeks a single point of interconnection, the request shall be evaluated on the basis of the aggregate capacity of the multiple components.

13. If it is determined that the interconnection of the Facility will require upgrades to the existing MPEI equipment, MPEI will estimate the costs to complete the interconnection and notify the Interconnection Customer of the added costs. If the Interconnection Customer desires to proceed this will require a system design job.

14. Provided all the criteria in the Interconnection Standards are met, unless MPEI determines and demonstrates that the applicable Facility cannot be interconnected safely and reliably, MPEI approves the Application and returns an executed copy to the Interconnection Customer.

15. The Interconnection Customer pays Interconnection costs to MPEI, if applicable.

16. MPEI designs and constructs the interconnection and modifies the existing MPEI system as necessary to accept the Facility.

17. Interconnection Customer provides the State inspection report (or other as applicable) and notifies MPEI that the system is prepared for parallel operation.

18. MPEI validates system information, executes a meter exchange, and provides notification to the Interconnection Customer of MPEI’s readiness for parallel operation of the system.

Interconnection Terms and Conditions

1. Construction of the Facility

The Interconnection Customer may proceed to construct the interconnection resource with MPEI approves the interconnection request (the Application) and returns it to the Interconnection Customer.

2. Interconnection and Operation

The Interconnection Customer may operate the interconnection resource and interconnect with MPEI”s electric system after all of the following have occurred:

• Upon completing construction, the Interconnection Customer will cause the interconnection resource to be inspected or otherwise certified by the appropriate local electrical wiring inspector with jurisdiction:
• The Interconnection Customer returns the certificate of completion and/or the State electrical inspection verification to MPEI; and
• If not previously waived by MPEI, MPEI has completed its inspection of the interconnection resource. All inspections must be conducted by MPEI, at MPEI’s expense, within ten (10) business days after receipt of the certificate of completion and shall take place at a time agreeable to the parties. MPEI shall provide a written statement that the interconnection resource has passed inspection or shall notify the customer of what steps it must take to pass inspection as soon as practicable after the inspection takes place.
• MPEI has the right to disconnect the interconnection resource in the event of improper installation or failure to return the certificate of completion.

3. Safe Operations and Maintenance

The Interconnection Customer shall be fully responsible to operate, maintain, and repair the interconnection resource as required to ensure that it complies at all times with the interconnections standards to which it has been certified.

4. Access

MPEI shall have access to the disconnect switch and metering equipment of the interconnection resources at all times. MPEI shall provide reasonable notice to the customer when possible prior to using its right of access.

5. Disconnection

MPEI may temporarily disconnect the interconnection resource as allowed in the interconnection agreement and upon the following conditions:

• For scheduled outages per notice requirements in MPEI’s tariff or CPUC rules;
• For unscheduled outages or emergency conditions pursuant to MPEI’s tarif or CPUC rules; or
• If the interconnection resource does not operate in the manner consistent with these terms and conditions.
• MPEI shall inform the Interconnection Customer in advance of any scheduled disconnection, or as is reasonable after an unscheduled disconnection.

6. Indemnification

The parties shall at all times indemnify, defend, and save the other party harmless from, any and all damages, losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demand, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other party’s action or inactions of its obligations under this agreement on behalf of the indemnifying party, except in cases of gross negligence or intentional wrongdoing by the indemnified party.

7. Insurance

The Interconnection Customer is not required to provide general liability insurance coverage as part of this agreement, or through any other MPEI requirement.

8. Limitation of Liability

Each party’s liability to the other party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in its performance of the interconnection agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either party be liable to the other party for any indirect, incidental, special, consequential, or punitive damages of any kind whatsoever, except as allowed under Section 6 of these terms.

9. Termination

The interconnection agreement to operate in parallel may be terminated under the following conditions:

• By the customer by providing written notice to MPEI
• By MPEI in the interconnection resource fails to operate for any consecutive 12-month period or the customer fails to remedy a violation of these terms and conditions.
• Permanent disconnection. In the event the interconnection agreement is terminated, MPIE shall have the right to disconnect its facilities or direct the customer to disconnect its interconnection resource.
• Survival rights. Ther interconnection agreement shall continue in effect after termination to the extent necessary to allow or require either party to fulfill rights or obligation that arose under the agreement.

10. Assignment/Transfer of ownership of the facility. The interconnection agreement shall survive the transfer of ownership of the small generation facility to a new owner when the new oner agrees in writing to comply with the terms of the agreements and so notifies MPEI. Alternative, the new owner can enter into a new Interconnection Agreement with MPEI.

Certification Codes & Standards

When stated version of the following codes and standards is superseded by an approved revision, then that revision shall apply.

• IEEE Std 1547-2018, IEEE Standard for Interconnection and Interoperability of Distributed Energy Resources with Associated Electric Power Systems Interfaces (including 1547.1 testing protocols to establish conformity)
• UL 1741 Inverters, Converters, and Controllers for Use in Independent Power Systems
• NFPA 70 (2017), National Electrical Code
• ANSI C84.1-2016 Electric Power Systems and Equipment – Voltage Ratings (60 Hertz)
• ANSI/NEMA MG 1—2016, Motors and Generators
• IEEE Std C37.90.1-2012, IEEE Standard Surge Withstand Capability (SWC) Tests for Protective Relays and Relay Systems
• IEEE std C37.90.2-2004, IEEE Standard Withstand Capability of Relay Systems to Radiated Electromagnetic Interference from Transceivers
• IEEE Std C62.41.2-2002/Cor 1-2012, IEEE Recommended Practice on Characterization of Surges in Low Voltage (1000V and Less) AC Power Circuits Corrigendum 1: Deletion of Table A.2 and Associated Text
• IEEE Std C62.45-2002, IEEE Recommended Practice on Surge Testing for Equipment Connectyed to Low-Voltage (1000V and Less) AC Power Circuits
• IEEE Std 100-2000, The Authoritative Dictionary of IEEE Standards Terms, Seventh Edition
• IEEE Std 519-2014, IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems
• IEEE Std 1453-2015 IEEE Recommended Practice for the Analysis of Fluctuating Installation on Power Systems

Certification of DER Packages

1. Small generating facility equipment proposed for use separately or packaged with other equipment in an interconnection system shall be considered certified for interconnected operation if it has been tested in accordance with industry standards for continuous utility interactive operation in compliance with the appropriate codes and standards referenced below by any Nationally Recognized Testing Laboratory (NRTL) recognized by the United States Occupational Safety and Health Administration to test and certify interconnection equipment pursuant to the relevant codes and standards listed in rule 3857; it has been labeled and is publicly listed by such NRTL at the time of the interconnection application; and, such NRTL makes readily available for verification all test standards and procedures it utilized in performing such equipment certification, and, with consumer approval, the test data itself. The NRTL may make such information available on its website and by encouraging such information to be included in the manufacturer’s literature accompanying the equipment.

2. The Interconnection Customer must verify that the intended use of the equipment falls within the use or uses for which the equipment was tested, labeled, and listed by the NRTL.

3. Certified equipment shall not require further type-test review, testing, or additional equipment to meet the requirements of this interconnection procedure; however, nothing herein shall preclude the need for an on-site commissioning test by the parties to the interconnection for follow-up production testing by the NRTL.

4. If the certified equipment package includes only interface components (switchgear, inverters, or other interface devices), then an Interconnection Customer must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and is consistent with the testing listing specified for this type of interconnection equipment.

5. Provided the generator or electric source, when combined with the equipment package, is within the range of capabilities for which it was tested by the NRTL and does not violate the interface components’ labeling and listing performed by the NRTL, no further design review, testing or additional equipment on the customer side of the point of interconnection shall be required to meet the requirements of these interconnection procedures.

6. An equipment package does not include equipment provided by MPEI.

Level 3

Applicability

This study process shall be used by an interconnection customer proposing to interconnect its interconnection resource with MPEI’s system if the interconnection resource does not meet the size limitations for the Level 2 Process, is not certified; or, is certified but did not pass the Level 1 Process or Level 2 Process.

In addition to submitting an Interconnection Application and paying the MPEI Interconnection Tariff, the DER Interconnection Application must pass the following Screens –

1. The proposed interconnection resource point of interconnection must be on a portion of MPEI’s distribution system that is subject to MPEI’s tariffs. Proposed interconnection resources on highly seasonal circuits shall also be subject to the supplemental review (pursuant to 4 CCR 723-3 3855(d)) which includes additional screens such as:

• Minimum Load Screen
• Voltage and Power Quality Screen
• Safety and Reliability Screen

2. For interconnection of a proposed interconnection resource to a radial distribution circuit, the aggregated generation, including the proposed interconnection resources, on the line section(s) shall not exceed 15 percent of the line section’s annual peak load as most recently measured at the substation or calculated for the line section(s). A line section is that portion of a utility’s electric system connected to a customer bounded by automatic sectionalizing devices or the end of the distribution line.

3. The proposed interconnection resource, in aggregation with other generation on the distribution circuit, shall not contribute more than 10% (ten percent) to the distribution circuit’s maximum fault current at the point on the distribution feeder voltage (primary) level nearest the proposed point of interconnection.

4. The proposed interconnection resource, in aggregate with other interconnection resources on the distribution circuit, shall not cause any distribution protective devices and equipment (including, but not limited to, substation breakers, fuse cutouts, and line reclosers), or interconnection customer equipment on the system to exceed 87.5 percent of the short circuit interrupting capability; nor shall the interconnection be proposed for a circuit that already exceeds 87.5 percent of the short circuit interrupting capability.

5. The type of interconnection to a primary distribution line shall be determined based on the table below, including a review of the type of electrical service provided to the interconnection customer, line configuration, and the transformer connection to limit the potential for creating over-voltages on MPEI’s electric power system due to a loss of ground during the operating time of any anti-islanding function.

6. If the proposed interconnection resource is to be interconnected on a single-phase secondary, the aggregate generation capacity on the shared secondary, including the proposed small generating facility, shall not exceed 25 kW.

7. If the proposed interconnection resource is single-phase and is to be interconnected on a center tap neutral of a 240 volt service, its addition shall not create an imbalance between the two sides of the 240 volt service of more than 20% (twenty percent) of the nameplate rating of the service transformer.

8. No construction of facilities by MPEI on its own system shall be required to accommodate the small generating facility.

9. For interconnection of a proposed interconnection resource to the load side of spot network protectors serving more than a single customer, the proposed interconnection resource must utilize an inverter-based equipment package and, together with the aggregated other invert-based interconnection resource, shall not exceed the smaller of 5 Percent of a spot network’s maximum load or 300 kW. For spot networks serving a single customer, the interconnection resource must use an inverter-based equipment package and either meet the requirements above or shall use a protection scheme or operate the generator so as not to exceed on-site load or otherwise prevent nuisance operation of the spot network protectors.

10. For interconnection of a proposed interconnection resource to the load side of area network protectors, the proposed interconnection resource must utilize an inverter-based equipment package and, together with the aggregated other inverter-based interconnection resource, shall not exceed the smaller of 10 percent of an area network’s minimum load or 500 kW AC.

11. The nameplate capacity of a proposed interconnection resource, in combination with the nameplate capacity of any previously interconnected interconnection resource, shall not exceed the capacity of the customer’s existing electrical service unless there is a simultaneous request for an upgrade to the customer’s electrical service, regardless of exporting or non-exporting designations for any of the interconnection resources.

Application Procedures

1. The Interconnection Customer contacts MPEI and obtains an Interconnection Application.

2. The Interconnection Customer submits the Application to MPEI with all design data required by MPEI and submits the Interconnection Application Fee as listed in the MPEI Interconnection Tariff

3. MPEI shall notify the Interconnection Customer within three (3) business days of receipt of the Application and Fee.

4. MPEI evaluates the Application for completeness and notifies the Interconnection Customer, within ten (10) business days of receipt, whether the Application is complete and, if not, advises the Interconnection Customer what material is missing. The Interconnection Customer may submit the missing information or request an extension within ten (10) business days of receipt of MPEI’s notice of incompleteness. If the Interconnection Customer does not provide the missing information or submit a request for extension, the Application is deemed withdrawn and the Interconnection Customer may re-submit the Application within one year without paying an additional fee.

5. Scoping meeting.

• A scoping meeting will be held within 10 (ten) business days after the interconnection request is deemed complete, or as otherwise mutually agreed to by the parties. MPEI and the Interconnection Customer will bring to the meeting personnel, including system engineers and other resources as may be reasonably required to accomplish the purpose of the meeting.
• The purpose of the scoping meeting is to discuss the interconnection request. The parties shall further discuss whether MPEI should perform a feasibility study or proceed directly to a system impact study, or a facilities study, or an interconnection agreement. If the parties agree that a feasibility study should be performed, MPEI shall provide the Interconnection Customer, as soon as possible, but not later than five business days after the scoping meeting, a feasibility study agreement including an outline of the scope of the study and a non-binding good faith estimate of the cost to perform the study.
• The scoping meeting may be omitted by mutual agreement. In order to remain in consideration for interconnection, an Interconnection Customer who has requested a feasibility study must return the executed feasibility study agreement within 15 (fifteen) business days. If the Interconnection Customer elects not to perform a feasibility study, MPEI shall provide the Interconnection Customer, no later than five business days after the scoping meeting, a system impact study agreement including an outline of the scope of the study and a non-binding good faith estimate of the cost to perform the study.
• Feasibility studies, scoping studies, and facility studies may be combined or waived for simpler projects by mutual agreement of MPEI and the Interconnection Customer. If all such studies are waived, MPEI shall provide the Interconnection Customer an executable interconnection agreement within ten business days after the scoping meeting. If the scoping meeting is also omitted by mutual agreement, MPEI shall provide the Interconnection Customer an executable interconnection agreement within ten business days after the interconnection request is deemed complete and this Level 2 Process is completed.
• If feasibility studies, system impact studies, and facility studies are combined, or required to be completed for a single application, MPEI shall perform the combined studies within no more than 90 (ninety) business days of the date upon which the Interconnection Customer authorizes the utility to proceed with the Level 3 Process.
• MPEI must offer a developer the opportunity to pay full fees upfront and proceed straight to the system impact study.

6. Feasibility study.

• Within 30 business days of executing a feasibility study agreement, MPEI shall perform a feasibility study. The feasibility study shall identify any potential adverse system impacts that would result from the interconnection of the interconnection resource. At its discretion, MPEI may use the Level 2 supplemental review as described in paragraph 3855(d) as the feasibility study.
• A deposit of the lesser of 50 percent of the good faith estimated feasibility study costs or earnest money of $1,000 may be required from the interconnection customer.
• The scope of and cost responsibilities for the feasibility study are described in the feasibility study agreement.
• If the feasibility study shows no potential for adverse system impacts, MPEI shall send the Interconnection Customer a facilities study agreement, including an outline of the scope of the study and a non-binding good faith estimate of the cost to perform the study.
• If the feasibility study shows the potential for adverse system impacts, the review process shall proceed to the appropriate system impact study(s).
• If no system impact study is required and no facilities study is required for the interconnection resource, MPEI shall provide the Interconnection Customer an executable interconnection agreement within five business days after the completion of the feasibility study.

7. System impact study.

• Within 30 business days of executing a system impact study agreement, MPEI shall perform a system impact study using the screens set forth below. A system impact study shall identify and detail the electric system impacts that would result if the proposed interconnection resource were interconnected without project modifications or electric system modifications, focusing on the adverse system impacts identified in the feasibility study, or to study potential impacts, including but not limited to those identified in the scoping meeting. A system impact study shall evaluate the impact of the proposed interconnection on the reliability of the electric system.
• If no transmission system impact study is required, but potential electric power distribution system adverse system impacts are identified in the scoping meeting or shown in the feasibility study, a distribution system impact study must be performed. MPEI shall send the Interconnection Customer a distribution system impact study agreement within 15 business days of transmittal of the feasibility study report, including an outline of the scope of the study and a non-binding good faith estimate of the cost to perform the study, or following the scoping meeting if no feasibility study is to be performed.
• In instances where the feasibility study or the distribution system impact study shows potential for adverse impacts on MPEI’s transmission system, within five business days following transmittal of the feasibility study report, MPEI shall send the Interconnection Customer a transmission system impact study agreement, including an outline of the transmission-supplied scope of the study and a transmission-supplied non-binding good faith estimate of the cost to perform the study, if such a study is required.
• If a transmission system impact study is not required, but electric power distribution system adverse system impacts are shown by the feasibility study to be possible and no distribution system impact study has been conducted, MPEI shall send the Interconnection Customer a distribution system impact study agreement.
• If the feasibility study shows no potential for transmission system or distribution system adverse system impacts, MPEI shall send the Interconnection Customer either a facilities study agreement, including an outline of the scope of the study and a non binding good faith estimate of the cost to perform the study, or an executable interconnection agreement, as applicable.
• In order to remain under consideration for interconnection, the Interconnection Customer must return executed system impact study agreements, if applicable, within 30 business days.
• A deposit of the good faith estimated costs for each system impact study may be required from the Interconnection Customer.
• The scope of and cost responsibilities for a system impact study are described in the system impact study agreement.
• Where transmission systems and distribution systems have separate owners, such as is the case with transmission-dependent utilities whether investor-owned or not – the Interconnection Customer may apply to the nearest utility (transmission owner, regional transmission operator, or independent utility) providing transmission service to the transmission-dependent utility to request project coordination. Affected systems shall participate in the study and provide all information necessary to prepare the study.
• If no facilities study is required for the interconnection resource, MPEI shall provide the Interconnection Customer an executable interconnection agreement within five business days after the completion of the system impact study.

8. Facilities study.

• Within 45 (forty five) business days of executing an appropriate agreement or contract, MPEI shall perform a facilities study. Once the required system impact study(s) is completed, a system impact study report shall be prepared and transmitted to the Interconnection Customer along with a facilities study agreement within five business days, including an outline of the scope of the study and a non-binding good faith estimate of the cost to perform the facilities study. In the case where one or both impact studies are determined to be unnecessary, a notice of the fact shall be transmitted to the Interconnection Customer within the same timeframe.
• In order to remain under consideration for interconnection, or, as appropriate, in MPEI's interconnection queue, the Interconnection Customer must return the executed facilities study agreement or a request for an extension of time within 30 business days.
• The facilities study shall include a detailed list of necessary system upgrades and an overall cost estimate, with the detailed list to indicate types of equipment, labor, operation and maintenance and other evaluated item costs, within the estimate for completing such upgrades, and identify which itemized cost estimates are uncertain and could be exceed by 125 percent if actual upgrades are completed.
• Design for any required interconnection facilities and/or upgrades shall be performed under the facilities study agreement. MPEI may contract with consultants to perform activities required under the facilities study agreement.
• A deposit of the good faith estimated costs for the facilities study may be required from the Interconnection Customer.
• The scope of and cost responsibilities for the facilities study are described in a facilities study agreement.
• Upon completion of the facilities study, and with the agreement of the Interconnection Customer to pay for interconnection facilities and upgrades identified in the facilities study, MPEI shall provide the Interconnection Customer an executable interconnection agreement within five business days.

Interconnection Terms and Conditions

1. Construction of the Facility

The Interconnection Customer may proceed to construct the interconnection resource with MPEI approves the interconnection request (the Application) and returns it to the Interconnection Customer.

2. Interconnection and Operation

The Interconnection Customer may operate the interconnection resource and interconnect with MPEI”s electric system after all of the following have occurred:

• Upon completing construction, the Interconnection Customer will cause the interconnection resource to be inspected or otherwise certified by the appropriate local electrical wiring inspector with jurisdiction:
• The Interconnection Customer returns the certificate of completion and/or the State electrical inspection verification to MPEI; and
• If not previously waived by MPEI, MPEI has completed its inspection of the interconnection resource. All inspections must be conducted by MPEI, at MPEI’s expense, within ten (10) business days after receipt of the certificate of completion and shall take place at a time agreeable to the parties. MPEI shall provide a written statement that the interconnection resource has passed inspection or shall notify the customer of what steps it must take to pass inspection as soon as practicable after the inspection takes place.
• MPEI has the right to disconnect the interconnection resource in the event of improper installation or failure to return the certificate of completion.

3. Safe Operations and Maintenance

The Interconnection Customer shall be fully responsible to operate, maintain, and repair the interconnection resource as required to ensure that it complies at all times with the interconnections standards to which it has been certified.

4. Access

MPEI shall have access to the disconnect switch and metering equipment of the interconnection resources at all times. MPEI shall provide reasonable notice to the customer when possible prior to using its right of access.

5. Disconnection

MPEI may temporarily disconnect the interconnection resource as allowed in the interconnection agreement and upon the following conditions:

• For scheduled outages per notice requirements in MPEI’s tariff or CPUC rules;
• For unscheduled outages or emergency conditions pursuant to MPEI’s tariff or CPUC rules; or
• If the interconnection resource does not operate in the manner consistent with these terms and conditions.
• MPEI shall inform the Interconnection Customer in advance of any scheduled disconnection, or as is reasonable after an unscheduled disconnection.

6. Indemnification

The parties shall at all times indemnify, defend, and save the other party harmless from, any and all damages, losses, claims, including claims and actions relating to injury to or death of any person or damage to property, demand, suits, recoveries, costs and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other party’s action or inactions of its obligations under this agreement on behalf of the indemnifying party, except in cases of gross negligence or intentional wrongdoing by the indemnified party.

7. Insurance

The Interconnection Customer is not required to provide general liability insurance coverage as part of this agreement, or through any other MPEI requirement.

8. Limitation of Liability

Each party’s liability to the other party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in its performance of the interconnection agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either party be liable to the other party for any indirect, incidental, special, consequential, or punitive damages of any kind whatsoever, except as allowed under Section 6 of these terms.

9. Termination

The interconnection agreement to operate in parallel may be terminated under the following conditions:

• By the customer by providing written notice to MPEI
• By MPEI in the interconnection resource fails to operate for any consecutive 12-month period or the customer fails to remedy a violation of these terms and conditions.
• Permanent disconnection. In the event the interconnection agreement is terminated, MPIE shall have the right to disconnect its facilities or direct the customer to disconnect its interconnection resource.
• Survival rights. Ther interconnection agreement shall continue in effect after termination to the extent necessary to allow or require either party to fulfill rights or obligation that arose under the agreement.

10. Assignment/Transfer of ownership of the facility. The interconnection agreement shall survive the transfer of ownership of the small generation facility to a new owner when the new oner agrees in writing to comply with the terms of the agreements and so notifies MPEI. Alternative, the new owner can enter into a new Interconnection Agreement with MPEI.

Certification Codes & Standards

When stated version of the following codes and standards is superseded by an approved revision, then that revision shall apply.

• IEEE Std 1547-2018, IEEE Standard for Interconnection and Interoperability of Distributed Energy Resources with Associated Electric Power Systems Interfaces (including 1547.1 testing protocols to establish conformity)
• UL 1741 Inverters, Converters, and Controllers for Use in Independent Power Systems
• NFPA 70 (2017), National Electrical Code
• ANSI C84.1-2016 Electric Power Systems and Equipment – Voltage Ratings (60 Hertz)
• ANSI/NEMA MG 1—2016, Motors and Generators
• IEEE Std C37.90.1-2012, IEEE Standard Surge Withstand Capability (SWC) Tests for Protective Relays and Relay Systems
• IEEE std C37.90.2-2004, IEEE Standard Withstand Capability of Relay Systems to Radiated Electromagnetic Interference from Transceivers
• IEEE Std C62.41.2-2002/Cor 1-2012, IEEE Recommended Practice on Characterization of Surges in Low Voltage (1000V and Less) AC Power Circuits Corrigendum 1: Deletion of Table A.2 and Associated Text
• IEEE Std C62.45-2002, IEEE Recommended Practice on Surge Testing for Equipment Connectyed to Low-Voltage (1000V and Less) AC Power Circuits
• IEEE Std 100-2000, The Authoritative Dictionary of IEEE Standards Terms, Seventh Edition
• IEEE Std 519-2014, IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems
• IEEE Std 1453-2015 IEEE Recommended Practice for the Analysis of Fluctuating Installation on Power Systems

Certification of DER Packages

1. Small generating facility equipment proposed for use separately or packaged with other equipment in an interconnection system shall be considered certified for interconnected operation if it has been tested in accordance with industry standards for continuous utility interactive operation in compliance with the appropriate codes and standards referenced below by any Nationally Recognized Testing Laboratory (NRTL) recognized by the United States Occupational Safety and Health Administration to test and certify interconnection equipment pursuant to the relevant codes and standards listed in rule 3857; it has been labeled and is publicly listed by such NRTL at the time of the interconnection application; and, such NRTL makes readily available for verification all test standards and procedures it utilized in performing such equipment certification, and, with consumer approval, the test data itself. The NRTL may make such information available on its website and by encouraging such information to be included in the manufacturer’s literature accompanying the equipment.

2. The Interconnection Customer must verify that the intended use of the equipment falls within the use or uses for which the equipment was tested, labeled, and listed by the NRTL.

3. Certified equipment shall not require further type-test review, testing, or additional equipment to meet the requirements of this interconnection procedure; however, nothing herein shall preclude the need for an on-site commissioning test by the parties to the interconnection for follow-up production testing by the NRTL.

4. If the certified equipment package includes only interface components (switchgear, inverters, or other interface devices), then an Interconnection Customer must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and is consistent with the testing listing specified for this type of interconnection equipment.

5. Provided the generator or electric source, when combined with the equipment package, is within the range of capabilities for which it was tested by the NRTL and does not violate the interface components’ labeling and listing performed by the NRTL, no further design review, testing or additional equipment on the customer side of the point of interconnection shall be required to meet the requirements of these interconnection procedures.

6. An equipment package does not include equipment provided by MPEI.