GENERATION OPERATION PROTOCOL BETWEEN A VERMONT UTILITY AND SAMPLE Discussion Draf of July 30, 2009 Provided Without Prejudice Operation Protocol A VERMONT UTILITY GENERATION OPERATION PROTOCOL Customer Name This OPERATIONAL PROTOCOL is to be used between A VERMONT UTILITY, (“A VERMONT UTILITY”), a Vermont corporation, and Customer, “Non-Utility Generator” or “NUG”). Location: On the electrical grid known as the OPERATING REQUIREMENTS 1. General Operating Requirements THE NUG shall operate and maintain the generating facility in accordance with Prudent Engineering and Operating Practice and comply with all aspects of the Company’s Guidelines for Generator Interconnections and tariffs. In the event that A VERMONT UTILITY has reason to believe that the THE NUG generating facility may be a source of problems on the A VERMONT UTILITY’ electrical power system, A VERMONT UTILITY has the right to install monitoring equipment at a mutually agreed upon location to determine the source of the problems. If the NUG’s generator equipment interferes with A VERMONT UTILITY’s equipment and/or operations or other customer’s equipment, THE NUG must immediately take corrective action to resolve the problem. If THE NUG fails to take immediate corrective action then A VERMONT UTILITY may disconnect the generating facility pursuant to this Agreement. The cost of the monitoring equipment will be borne by A VERMONT UTILITY unless the problem or problems are demonstrated to be caused by NUG’s generating facility or if the test was performed at the request of the NUG. 2. No Adverse Effects; Non-interference A VERMONT UTILITY shall notify the NUG if there is evidence that the operation of the NUG’s generating facility could cause disruption or deterioration of service to other A VERMONT UTILITY’ customers served from the same A VERMONT UTILITY electrical power system or if operation of the NUG could cause damage to A VERMONT UTILITY’s electrical power system or affected systems. The deterioration of service could be, but is not limited to, harmonic injection in excess of IEEE STD519, as well as voltage fluctuations caused by large step changes in loading at the generating facility. Each Party will notify the other of any emergency or hazardous condition or occurrence with its equipment or facility which could effect the operation of the other Party’s equipment or facilities. Each Party shall use reasonable efforts to provide the other Party with advance notice of such conditions. A VERMONT UTILITY will operate its electric system in such a manner so as to not unreasonably interfere with the operation of the NUG’s generating facility. THE NUG will protect itself from normal disturbances propagating through the A VERMONT UTILITY electric system. Examples of such disturbances could be, but are not limited to, single-phase events, voltage sags from remote faults on the A VERMONT UTILITY electric system, and Discussion Draf of July 30, 2009 Provided Without Prejudice Operation Protocol outages on the A VERMONT UTILITY’ electric system. SAFE OPERATIONS AND MAINTENANCE 1. General – Each Party shall operate, maintain, repair and inspect and shall be fully responsible for, the respective generating facility or electric system facilities that it now or hereafter may own unless otherwise specified in this Agreement. Each Party shall be responsible for the maintenance, repair, and condition of its respective lines and appurtenances on that Party’s respective side of the Recloser. A VERMONT UTILITY and the NUG shall each provide equipment on its respective side of the Recloser that adequately protects the A VERMONT UTILITY electric system, personnel, and other persons from damage and injury. If A VERMONT UTILITY has constructed or owns facilities that are identified at the time of interconnection as specifically required by or as a result of the interconnection. 2. Ongoing Maintenance – Testing of generating facilities. Maintenance testing of the protective relaying is imperative for safe, reliable operation. The test cycle for protective relaying must not be less frequent than once every 60 calendar months or manufacturer’s recommendation, which ever is more frequent. the NUG must provide copies of these test records to A VERMONT UTILITY. Failure to adhere to these guidelines may be sufficient cause to require the NUG’s generating facility to be disconnected from the A VERMONT UTILITY’ electric system. ACCESS 1. A VERMONT UTILITY and NUG Representatives Each party shall provide and update as necessary the telephone number that can be used at all times to allow either party to report an emergency. 2. A VERMONT UTILITY Rights to Access Company-Owned Facilities and Equipment THE NUG shall allow A VERMONT UTILITY access to A VERMONT UTILITY equipment and the A VERMONT UTILITY facilities located on the generating facility’s premises. To the extent that the NUG does not own all or part of the property on which A VERMONT UTILITY is required to locate its equipment or facilities to serve the generating facility, the NUG shall secure and provide to A VERMONT UTILITY the necessary rights for access to such equipment or facilities, including easements in a form acceptable to A VERMONT UTILITY. 3. Disconnect Switch A VERMONT UTILITY shall have access to the primary voltage air break disconnect switch located at Line XXX Pole XXX on the property of the NUG’s facility at all times. 4. Right to Review Information A VERMONT UTILITY shall have the right to review and obtain copies of the NUG’s 3 Operation Protocol operations and maintenance records, logs, or other information such as generator unit availability, maintenance outages, circuit breaker operation requiring manual reset, relay targets and unusual events pertaining to the NUG’s generating facility or it’s interconnection with the A VERMONT UTILITY electric system. This information will be treated by A VERMONT UTILITY as confidential and used only for the purpose of determining the NUG’s compliance with this Agreement. DISCONNECTION 1. Temporary Disconnection a. Emergency Conditions: A VERMONT UTILITY shall have the right to immediately and temporarily disconnect the NUG’s generating facility without prior notification in cases where, in the reasonable judgment of A VERMONT UTILITY, continuance of such service to the generating facility is imminently likely to (1) endanger persons or damage property or (2) cause a material adverse effect on the integrity or security of, or damage to, the A VERMONT UTILITY electric system or to the electric system of others to which the A VERMONT UTILITY electric system is directly connected. A NUG representative shall notify A VERMONT UTILITY promptly when the NUG becomes aware of an emergency condition that affects the generators that may reasonably be expected to affect the A VERMONT UTILITY electric system. To the extent information is known, the notification shall describe the emergency condition, the extent of the damage or deficiency, or the expected effect on the operation of both Parties’ facilities and operations, its anticipated duration and the necessary corrective action. b. Routine Maintenance, Construction and Repair: A VERMONT UTILITY shall have the right to disconnect the NUG’s generating facility from the A VERMONT UTILITY’ electric system when necessary for routine maintenance, construction and repairs on the A VERMONT UTILITY electric system. See the details found in the document below regarding routine line maintenance and emergency line work disconnect procedures. If THE NUG requests disconnection by A VERMONT UTILITY at the Recloser, the NUG will provide a minimum of five (5) days notice to A VERMONT UTILITY. A VERMONT UTILITY shall make an effort to schedule such curtailment or temporary disconnection with the NUG c. Forced Outages: During any forced outage, A VERMONT UTILITY shall have the right to suspend interconnection service to effect immediate repairs on the A VERMONT UTILITY electric system. A VERMONT UTILITY shall use reasonable efforts to provide THE NUG with prior notice. Where circumstances do not permit such prior notice to the NUG, A VERMONT UTILITY may interrupt interconnection service and disconnect the NUG’s generating facility from the A VERMONT UTILITY’ electric system without such notice. d. Non-Emergency Adverse Operating Effects: A VERMONT UTILITY may disconnect the NUG’s generating facility if the generating facility is having an adverse operating effect on the A VERMONT UTILITY’ electric system or other A VERMONT UTILITY’ customers. A VERMONT UTILITY may disconnect the 4 Operation Protocol NUG’s generating facility if the generator fails to correct such adverse operating effect after written notice has been provided and a minimum of thirty (30) calendar days to correct such adverse operating effect has elapsed. 2. e. Modification of the NUG’s Generating Facility: A VERMONT UTILITY has the right to immediately suspend interconnection service in cases where material modification to the generating facility or interconnection facilities have been implemented without prior written authorization from A VERMONT UTILITY. f. Re-connection: Any curtailment, reduction or disconnection shall continue only for so long as reasonably necessary. The NUG and A VERMONT UTILITY will cooperate with each other to restore the NUG’s generators and the A VERMONT UTILITY’ electric system respectively, to their normal operating state as soon as reasonably practicable following the cessation or remedy of the event that led to the temporary disconnection. Permanent Disconnection a. THE NUG has the right to permanently disconnect at any time with thirty (30) calendar days written notice to A VERMONT UTILITY. b. A VERMONT UTILITY may permanently disconnect the NUG’s generating facility upon termination of this Agreement in accordance with the terms hereof and in the case of the NUG’s inability to correct an adverse operating effect after notice thereof. GENERATOR RESTARTS The NUG’s generators can be manually restarted once live line conditions on the A VERMONT UTILITY’ electric system are detected for a minimum of two (2) minutes. However, based on recommendations made in the System Impact Study, the NUG’s generators are can only start once per five minute period due to power quality issues. ROUTINE LINE MAINTENANCE (“Hot” Line Work): 1. Disconnection: All A VERMONT UTILITY switching and tagging procedures must be followed, in particular see A VERMONT UTILITY Electrical Safety Standards Section D1 (5h). A. The A VERMONT UTILITY Resource Planning Scheduler will notify the NUG via telephone of a required disconnection of the generators for routine “HOT” line maintenance work. No less than 1 hour of prior notice shall be given. Such notice shall communicate the reason for the disconnection to the NUG and the expected duration of the disconnection. B. The NUG will then: 5 Operation Protocol a. Have its generators disconnected by the required time. b. Wait for A VERMONT UTILITY to open the principal disconnect device 1 (blades) opened and visual clearance provided for the A VERMONT UTILITY personnel. 1 Principal Disconnect Device – is an A VERMONT UTILITY owned primary voltage three phase air break, load break capable, manually operated, visible open blades, lockable device located at Line XXX Pole XXX. 6 Operation Protocol C. 2. Upon arrival at the NUG: a. A VERMONT UTILITY line personnel will check the principal disconnect device, open three blades. b. A VERMONT UTILITY personnel will install a A VERMONT UTILITY utility lock on the principal disconnect device (blades in the open position). c. A VERMONT UTILITY personnel will install a yellow tag on the principal disconnect device. d. A VERMONT UTILITY personnel will then contact the circuit (specific line and pole information required). Report that the NUG’S’ generators principal disconnect device has been opened, locked open and yellow tagged. The truck numbers involved in the work and the distance from the closest upstream protective device that is placed on manual and also yellow tagged. Re-Energizing A. Once “HOT” line work has been completed, A VERMONT UTILITY personnel will remove the yellow tag from the customer owned principal disconnect, unlock and remove the A VERMONT UTILITY lock. B. A VERMONT UTILITY personnel will contact the Control Center and report that “HOT” line work on this line is complete, the yellow tag and the utility company lock have both been removed from the customer owned principal disconnect device. C. A VERMONT UTILITY personnel will call the A VERMONT UTILITY Resource Scheduler to inform him or her that the line work has been completed, the yellow tag and company lock have been removed from the customer owned principal disconnect device and we are giving the generator customer permission to “tie” to our system. D. The A VERMONT UTILITY Resource Scheduler will in turn contact the NUG (see Contact Information) and give permission to tie back onto our system. EMERGENCY LINE WORK (Grounded Work): A VERMONT UTILITY personnel will operate the protective equipment as necessary on the electric system to maintain a safe, dependable and reliable source of power to its customers. Upon notification of a power outage, A VERMONT UTILITY personnel will be dispatched to patrol, locate any and all problems, do the proper switching and tagging as needed, repair any and all problems on the distribution system and restore power to its customers in a safe and timely manner. 1. Any and all grounded line work to be done on Line XXX in XXX (town) (including taps without protective devices or the main line not being properly sectionalized), will require the NUG generators to be off the electric system (see options #1 and #2 below). 7 Operation Protocol Option #1 - Taking the generators off the electric system (preferred) - A VERMONT UTILITY personnel as the option of using the provided push button “Generator Shutdown Switch” provided in the Line Pole # Recloser control cabinet to perform an orderly shutdown of the NUG’s generation equipment (if the generators are still operating and tied to the electric system), then open the Recloser. Orderly Shutdown: 2 to 3 minutes to ramp down and disconnect from the electric system, engine generator will transfer to back-up generator mode and may still be running. Option #2 - Taking the generators off the electric system - A VERMONT UTILITY personnel will also have a second option to do an “Emergency Shut-down” (if the NUG’s generators are still operating), then open the Recloser. Emergency Shutdown: 0.2 seconds to disconnect from the electric system 3 minutes until engine generator transfers in back-up generator mode and may s till be running 2. If step one cannot be accomplished, The Recloser at Line XXX will be opened, line crew will take proper visual clearance at the Line air break, and apply red tags for A VERMONT UTILITY line personnel. EMERGENCY LINE WORK (call out for Restoration of generation interconnection): 1. A VERMONT UTILITY personnel will verify the Recloser on Line XXX Pole XXX is open. 2. A VERMONT UTILITY personnel will verify that the NUG’s generators are disconnected from the A VERMONT UTILITY system using the indicator lights in the Recloser control cabinet. The “Normal Shutdown” (led # 3 on) and “Emergency Shutdown” (led # 4 on) indicators need to be on. Generator may be running in stand-by generator mode. 3. A VERMONT UTILITY personnel will remove the Red tag from Line and close the primary voltage air break and then close the Recloser. 4. A VERMONT UTILITY personnel will verify the Recloser closed properly and report the targets (if any are indicated) to the A VERMONT UTILITY Resource Scheduling Dept. Resources Scheduling Department will email the targets reported to the Division Engineer and to the Protection Engineer. 5. The A VERMONT UTILITY Resource Scheduler will in turn contact the NUG (see Contact Information) and give permission to tie back onto the A VERMONT UTILITY system. 6. Relay fault targets will remain on all of the relays at Line XXX , for a period of 4.5 hrs. with an automatic reset. 8 Operation Protocol CONTACT INFORMATION: Customer Name Person: Mailing Address: Priority Telephone Numbers: 1. 2. 3. Primary - Tel. # Secondary - Tel. # Alternate - Tel. # ) A Vermont Utility Person: Central Scheduling Priority Telephone Numbers: 1. Central Scheduling Tel # 1-800-788-2877 Additional Support (if required) in order: a. Regional On Call Field Technician b. The Operations Supervisor c. Senior Energy Advisor d. System Protection Engineer (Frank Stacom)(by phone or pager) e. On Call Lineman for district f. The Control Center NUG can call A VERMONT UTILITY Resource Scheduling for updates to report or check on the status of an outage, at any time. OPERATING COMMITTEE: Representative of each of the Parties shall meet from time to time, but in no event less frequently than annually, in order to confer on issues related to the interconnection operations of the NUG’s generating facility with the A VERMONT UTILITY’ electric system. At such meetings, the Parties shall provide each other updates to information necessary to assure that operations are conducted in accordance with Prudent Engineering and Operating Practice. The Parties shall have the right to modify, amend or restate the requirements hereof, upon consultation, with the mutual written consent of the Parties hereto. In the event that, during the first six months of operation, A VERMONT UTILITY shall determine that additional system upgrades are necessary to permit the interconnected operation of NUG’s generating facility with the A VERMONT UTILITY electric system, NUG shall remain responsible for the cost of said system upgrades. 9