Interconnection Process (Afternoon Detailed Session) 0 Topics to Cover • Interconnection Process Overview • Application Timing and Completeness • Technical Scoping Meeting • Study Process • Interconnection Agreement • Project Implementation • Deliverability • References 1 Overview of Wholesale Generation Interconnection Process Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation Transmission Interconnections – Governed by California Independent System Operator Corporation (CAISO) Tariff • PG&E’s transmission interconnections are for 60 kV and higher • All applications must be submitted to the CAISO • These slides are per CAISO Tariff which is subject to the CAISO Distribution Interconnections – Governed by PG&E’s Wholesale Distribution Tariff (WDT) • PG&E’s distribution voltage level is defined as facilities operating below 60 kV • All applications must be submitted to PG&E • These slides assume FERC approval of the proposed WDT to be filed in February 2011 2 Application Processing Timeline Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation Application Process Milestone Duration Responsible Party Application Submission Clock Start Customer Application Deemed Complete or Notice of Outstanding Items 10 Business Days (BD) PG&E or CAISO* Customer to provide outstanding items or request extension 10 BD Customer Customer to provide outstanding items if extension requested 20 BD** Customer Application Deemed Complete PG&E or CAISO* * Subject to CAISO ** PG&E Extension Business Rule 3 What is in a complete application? Application Processing Technical Scoping Meeting Technical Studies Transmission Interconnections Interconnection Agreement Project Implementation Distribution Interconnections – Completed Application – Completed Application – Site Plan Diagram – Site Plan Diagram – Single Line Diagram – Single Line Diagram – Application Fee – Application Fee – Site Control or – Site Control In-Lieu Financial Security 4 PG&E Application Note this application is a DRAFT form 5 PG&E Application Note this application is a DRAFT form The Application must be completed in its entirety – Point of Interconnection must be identified – Commercial Operation Date must be identified 6 PG&E Application Note this application is a DRAFT form Site Control Requirements must be met 7 Attachment A Generating Facility Data Section Content Applies to 1 General Directions All 2 Generating Facility Information All 3 Synchronous Generator – General Information Synchronous 4 Excitation System Information Non-Inverter 5 Power System Stabilizer Information Synchronous >30MVA 6 Turbine-Governor Information Turbine 7 Induction Generator Data Induction 8 Generator Short Circuit Data Non-Inverter 9 Step-Up Transformer Data All 10 Interconnection Facilities Line Data All 11 Wind Generators Wind 12 Load Flow and Dynamic Models All* * Typically applies to Transmission 8 Scoping Meeting Purpose Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation Scoping Meeting is designed to provide the Interconnection Customer: • Ensure common understanding of Interconnection Customer’s project • Ensure understanding of Generator Interconnection Procedure • Come to agreement on Point of Interconnection and generator size • PG&E will provide technical system details, limitations, and queued ahead projects • PG&E will advise regarding which process Interconnection Customer qualifies for and study to be conducted • Next Steps 5 Business Days after Scoping Meeting, the Developer must: • Provide confirmation on the Point of Interconnection • Provide confirmation on Generator Size 9 Scope of Studies Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation Technical Studies are intended to provide: • Impact of generation on PG&E’s electric system • Scope of Capital Improvements to PG&E’s electric system to ensure the safety, reliability, and integrity of the grid: -Interconnection Facilities Generator Specific facilities required for interconnection -Distribution Upgrades Upgrades to the Distribution System triggered by Generator or Cluster -Network Upgrades Upgrades to the Network (CAISO Controlled Grid) triggered by Generator or Cluster • Cost Estimate for Scope of Capital Improvements Required and Schedule 10 Study Results + Cost Estimate Accuracy Supplemental Review Initial Review System Impact Study Facilities Study Construction Phase 2 Study Phase 1 Study •Provides the Customer +/- 50% Accuracy - Project Implementation Contract Technical Studies •Determines acceptance of Fast Track Process •Provides a Rough Scope of Work •Provides the Customer +/- 25% Accuracy •Provides a Scope of Work. Project In-Service •Designs the job and estimates the job with a +/- 10% Accuracy •Provides a detailed Scope of Work. 11 Interconnection Study Processes Initial and Supplemental Review Fast Track • 2 MW on 12kV and 3 MW on 21 kV and 5 MW on higher voltages • Fast Track Screens • Electrical Independence Screens System Impact and Facilities Study Independent Study Process • Commercial Operation Date Screen (CAISO) • No MW limit • Financial security requirements • Default process, no MW limit Phase I and II Studies Cluster Study • One annual study • Financial security requirements • All processes may apply for full capacity. Deliverability assessment will be conducted by CAISO in CAISO’s cluster process. • PG&E plans on filing a reformed Wholesale Distribution Tariff at the end of Feb seeking approval for a March 1 effective date. These slides assume acceptance 12 by FERC. Fast Track Distribution Transmission Tariff Section 2 Section 5 Applicability Must Pass Screens Must Pass Screens MW Limit 5MW, Rule of Thumb 3MW on 21kV 2MW on 12kV 5MW Application Fee $1000 (includes Initial Review) $500 Study Distribution Distribution Timing Fee Transmission Timing Transmission Fee Initial Review 10 BD Included 15 BD $1000 Supplemental Review 20 BD Estimated Fee 10 BD Estimated Fee BD – Business Day 13 Independent Study Process Distribution Transmission Tariff Section 3 Section 4 Applicability Electrical Independence Test Electrical Independence Test & Commercial Operation Date Test MW Limit No Limit (corrected from Conference No Limit (corrected from Conference handouts) handouts) Application Fee $2000 $50k plus $1k/MW (max $250k) Study Distribution Distribution Timing Fee Transmission Timing Transmission Fee System Impact Study 60 BD Estimated Fee 90 BD Included Facilities Study 60 BD Estimated Fee 90 BD Included Facilities Study begins when Initial Posting is made BD – Business Day, CD – Calendar Day 14 Cluster Study Process Distribution Transmission Tariff Section 4 Section 6 & 7 Applicability Default Default Cluster Window March 1-31 March 1-31 Application Fee $50k plus $1k/MW (max $250k) $50k plus $1k/MW (max $250k) Study Distribution Timing Distribution Transmission Transmission Study Fee Timing Fee Start Phase I 134 CD Included 134 CD Included Jun 1 Phase II 196 CD Included 196 CD Included Jan 1 BD – Business Day, CD – Calendar Day 15 Financial Security Postings Posting Number Posting Type Posting Amount Timing Phase Initial Interconnection Facilities and Distribution Upgrades 20% 30 CD WDT 60 CD CAISO After System Impact Study (SIS) Network Upgrades 15% or $20k/MW or $7.5M (>20MW) 90 CD After Phase I Interconnection Facilities and Distribution Upgrades 30% 120 CD After Facilities Study Network Upgrades 30% or $1M (<20MW) or $15M (>20MW) 180 CD After Phase II Interconnection Facilities and Distribution Upgrades 100% On or before the start of construction After IA (acquisition of permits) Network Upgrades 100% Second Third BD – Business Day, CD – Calendar Day 16 Interconnection Agreement (IA) Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation Small Generator Interconnection Agreement (SGIA) – 20MW or less Large Generator Interconnection Agreement (LGIA) – greater than 20 MW CAISO GIA is a three-party Agreement between CAISO, PG&E, and Interconnection Customer IA Process Milestone Duration Responsible Party Tender IA after Phase II or Facilities Study* 30 CD PG&E or CAISO** Tender IA after Initial or Supplemental Review (Fast Track) 15 BD PG&E or CAISO** Respond to Draft 30 CD All parties PG&E or CAISO to issue executable IA All parties IA execution All parties * Tariff timing regarding tendering an Interconnection Agreement post Facilities Study not identified ** Subject to CAISO BD – Business Day, CD – Calendar Day 17 Project Implementation Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation • Post Interconnection Agreement, PG&E and Interconnection Customer should be engineering and designing, procuring, and constructing the electrical interconnection • PG&E will be engineering the Capital Improvements as agreed upon in the Interconnection Agreement • Interconnection Customer will be engineering the electrical system on the Interconnection Customer’s side of the meter and any upgrades that will be applicant built and deeded • Post EPC, PG&E, CAISO (if applicable), Interconnection Customer will coordinate a pre-parallel inspection and commissioning to achieve Commercial Operation. 18 Deliverability • RA deliverability? What is it? • How do you get it? • Timing? • Participants are required to apply for CAISO deliverability studies to qualify for providing Resource Adequacy PG&E and Socal Edison and CAISO are currently developing the process to allow WDT projects to obtain Resource Adequacy. PG&E will provide guidance prior to the upcoming Cluster. 19 Interconnection Resources PG&E Wholesale Generator Interconnections Website: http://www.pge.com/mybusiness/customerservice/nonpgeutility/generateownpower/w holesalegeneratorinterconnection/#thesmallgeneratorinterconnectionproceduresfortra nsmissionsysteminterconnectionstransmissionsgip Email for Interconnection Website: gen@pge.com Please check PG&E’s Wholesale Generator Interconnection Website March 1 for new application forms and filed tariff. CAISO: http://www.caiso.com/docs/2002/06/11/2002061110300427214.html Or via www.pge.com/rfo, select “Solar PV PPA Program RFO”. 20 Appendix: Distribution Schedule These diagrams are for estimating purposes. It assumes immediate response from Customer. Summary Fast Track Process Independent Study Process Cluster Process 21 Appendix: Transmission Schedule These diagrams are for estimating purposes. It assumes immediate response from Customer. Summary Fast Track Process Independent Study Process Cluster Process 22