20240904PAC to Bayer 75-2 Attachment - Q0802 LGIA.pdf

Original Sheet No. 1
STANDARD LARGE GENERATOR
INTERCONNECTION AGREEMENT (LGIA)
between
PACIFICORP
and
DINOSOLAR, LLC
Dinosolar 4
TABLE OF CONTENTS
Page
RECITALS .................................................. 9
Article 1. Definitions ................................... 9
ARTICLE 2. Effective Date, Term, and Termination
2.1 Effective Date ................................. 22
2.2 Term of Agreement .............................. 22
2.3 Termination Procedures ......................... 23
2.3.1 Written Notice .......................... 23
2.3.2 Default ................................. 23
2.3.3
2.4 Termination Costs .............................. 23
2.4.1
2.4.2
2.4.3
2.5 Disconnection ................................. 25
2.6 Survival ....................................... 25
Article 3. Regulatory Filings ........................... 25
3.1 Filing ......................................... 25
Article 4. Scope of Service ............................. 26
4.1 Interconnection Product Options ................ 26
4.1.1 Energy Resource Interconnection Service .. 26
4.1.1.1 The Product ...................... 26
4.1.1.2 Transmission Delivery
Service Implications ............. 26
4.1.2 Network Resource Interconnection Service 28
4.1.2.1 The Product ...................... 28
4.1.2.2 Transmission Delivery
Service Implications ............. 28
4.2 Provision of Service ........................... 31
Original Sheet No. 2
4.3 Performance Standards .......................... 32
4.4 No Transmission Delivery Service .............. 32
4.5 Interconnection Customer Provided Services ..... 32
Article 5. Interconnection Facilities Engineering,
Procurement, & Construction .................. 32
5.1 Options ........................................ 32
5.1.1 Standard Option ......................... 33
5.1.2 Alternate Option ........................ 33
5.1.3 Option to Build ......................... 34
5.1.4 Negotiated Option ....................... 34
5.2 General Conditions Applicable to Option to
Build ............................................... 35
5.3 Liquidated Damages ............................. 37
5.4 Power System Stabilizers ....................... 39
5.5 Equipment Procurement .......................... 39
5.5.1
5.5.2
5.5.3
5.6 Construction Commencement ...................... 40
5.6.1
5.6.2
5.6.3
5.6.4
5.7 Work Progress .................................. 40
5.8 Information Exchange ........................... 40
5.9 Other Interconnection Options .................. 40
5.9.1 Limited Operation ....................... 41
5.9.2 Provisional Interconnection Service ..... 40
5.10 Interconnection Customer's Interconnection
Facilities ('ICIF') ........................... 43
5.10.1 Interconnection Customer's
Interconnection
Facility Specifications ................ 43
5.10.2 Transmission Provider's Review ......... 43
5.10.3 ICIF Construction ...................... 44
5.11 Transmission Provider's Interconnection
Facilities Construction ....................... 44
5.12 Access Rights ................................. 45
5.13 Lands of Other Property Owners ................ 45
5.14 Permits ....................................... 46
5.15 Early Construction of Base Case Facilities .... 46
5.16 Suspension .................................... 46
5.17 Taxes ......................................... 47
5.17.1 Interconnection Customer Payments Not
Taxable ................................ 47
5.17.2 Representations and Covenants .......... 47
Original Sheet No. 3
5.17.3 Indemnification for the Cost Consequences
of Current Tax Liability Imposed Upon the
Transmission Provider .................. 48
5.17.4 Tax Gross-Up Amount .................... 50
5.17.5 Private Letter Ruling or Change or
Clarification of Law ................... 51
5.17.6 Subsequent Taxable Events .............. 52
5.17.7 Contests ............................... 52
5.17.8 Refund ................................. 54
5.17.9 Taxes Other Than Income Taxes .......... 56
5.17.10 Transmission Owners Who Are Not
Transmission Providers ................ 56
5.18 Tax Status .................................... 57
5.19 Modification .................................. 57
5.19.1 General ................................ 57
5.19.2 Standards .............................. 58
5.19.3 Modification Costs ..................... 58
Article 6. Testing and Inspection ....................... 58
6.1 Pre-Commercial Operation Date Testing and
Modifications .................................. 58
6.2 Post-Commercial Operation Date Testing and
Modifications .................................. 59
6.3 Right to Observe Testing ....................... 59
6.4 Right to Inspect ............................... 59
Article 7. Metering ..................................... 60
7.1 General ........................................ 60
7.2 Check Meters ................................... 60
7.3 Standards ...................................... 60
7.4 Testing of Metering Equipment .................. 61
7.5 Metering Data .................................. 61
Article 8. Communications ............................... 62
8.1 Interconnection Customer Obligations ........... 62
8.2 Remote Terminal Unit ........................... 62
8.3 No Annexation .................................. 63
8.4 Provision of Data from a Variable Energy
Resource ............................................ 59
Article 9. Operations ................................... 64
9.1 General ........................................ 64
9.2 Control Area Notification ...................... 64
9.3 Transmission Provider Obligations .............. 64
9.4 Interconnection Customer Obligations ........... 65
9.5 Start-Up and Synchronization ................... 65
9.6 Reactive Power and Primary Frequency Response .. 65
Original Sheet No. 4
9.6.1 Power Factor Design Criteria ............ 65
9.6.1.1 Synchronous Generation ........... 63
9.6.1.2 Non-Synchronous Generation ....... 63
9.6.2 Voltage Schedules ....................... 67
9.6.2.1 Voltage Regulators ............... 67
9.6.3 Payment for Reactive Power .............. 68
9.6.4 Primary Frequency Response.............. 65
9.6.4.1 Governor or Equivalent Controls .. 67
9.6.4.2 Timely and Sustained Response .... 68
9.6.4.3 Exemptions ....................... 69
9.6.4.4 Electric Storage Resources ....... 69
9.7 Outages and Interruptions ...................... 75
9.7.1 Outages ................................. 75
9.7.1.1 Outage Authority and Coordination 75
9.7.1.2 Outage Schedules ................. 75
9.7.1.3 Outage Restoration ............... 76
9.7.2 Interruption of Service ................. 77
9.7.2.1
9.7.2.2
9.7.2.3
9.7.2.4
9.7.2.5
9.7.3 Under-Frequency and Over Frequency
Conditions .............................. 78
9.7.4 System Protection and Other Control
Requirements ............................ 79
9.7.4.1 System Protection Facilities ..... 79
9.7.4.2
9.7.4.3
9.7.4.4
9.7.4.5
9.7.4.6
9.7.5 Requirements for Protection ............. 81
9.7.6 Power Quality ........................... 81
9.8 Switching and Tagging Rules .................... 81
9.9 Use of Interconnection Facilities by Third
Parties ............................................. 82
9.9.1 Purpose of Interconnection Facilities ... 82
9.9.2 Third Party Users ....................... 82
9.10 Disturbance Analysis Data Exchange ............ 83
Article 10. Maintenance ................................. 83
10.1 Transmission Provider Obligations ............. 83
10.2 Interconnection Customer Obligations .......... 83
10.3 Coordination .................................. 83
10.4 Secondary Systems ............................. 83
10.5 Operating and Maintenance Expenses ............ 84
Original Sheet No. 5
Article 11. Performance Obligation ...................... 84
11.1 Interconnection Customer Interconnection
Facilities .................................... 84
11.2 Transmission Provider's Interconnection
Facilities .................................... 84
11.3 Network Upgrades and Distribution Upgrades .... 84
11.4 Transmission Credits .......................... 85
11.4.1 Repayment of Amounts Advanced for Network
Upgrades ............................... 85
11.4.2 Special Provisions for Affected Systems . 86
11.4.3
11.5 Provision of Security ......................... 87
11.5.1
11.5.2
11.5.3
11.6 Interconnection Customer Compensation ......... 88
11.6.1 Interconnection Customer Compensation for
Actions During Emergency Condition ..... 89
Article 12. Invoice ..................................... 89
12.1 General ....................................... 89
12.2 Final Invoice ................................. 89
12.3 Payment ....................................... 90
12.4 Disputes ...................................... 90
Article 13. Emergencies ................................. 90
13.1 Definition .................................... 90
13.2 Obligations ................................... 91
13.3 Notice ........................................ 91
13.4 Immediate Action .............................. 92
13.5 Transmission Provider Authority ............... 92
13.5.1 General ................................ 92
13.5.2 Reduction and Disconnection ............ 93
13.6 Interconnection Customer Authority ............ 94
13.7 Limited Liability ............................. 94
Article 14. Regulatory Requirements and Governing Law ... 94
14.1 Regulatory Requirements ....................... 94
14.2 Governing Law ................................. 95
14.2.1
14.2.2
14.2.3
Article 15. Notices ..................................... 95
15.1 General ....................................... 95
15.2 Billings and Payments ......................... 95
15.3 Alternative Forms of Notice ................... 95
Original Sheet No. 6
15.4 Operations and Maintenance Notice ............. 96
Article 16. Force Majeure ............................... 96
16.1 Force Majeure
16.1.1
16.1.2
Article 17. Default ..................................... 97
17.1 Default ....................................... 97
17.1.1 General ................................ 97
17.1.2 Right to Terminate ..................... 97
Article 18. Indemnity, Consequential Damages and
Insurance ................................................ 98
18.1 Indemnity ..................................... 98
18.1.1 Indemnified Person ..................... 98
18.1.2 Indemnifying Party ..................... 98
18.1.3 Indemnity Procedures ................... 98
18.2 Consequential Damages ........................ 100
18.3 Insurance .................................... 100
18.3.1
18.3.2
18.3.3
18.3.4
18.3.5
18.3.6
18.3.7
18.3.8
18.3.9
18.3.10
18.3.11
Article 19. Assignment ................................. 103
19.1 Assignment
Article 20. Severability ............................... 104
20.1 Severability
Article 21. Comparability .............................. 104
21.1 Comparability
Article 22. Confidentiality ............................ 105
22.1 Confidentiality .............................. 105
22.1.1 Term .................................. 105
22.1.2 Scope ................................. 105
22.1.3 Release of Confidential Information ... 106
22.1.4 Rights ................................ 107
22.1.5 No Warranties ......................... 107
22.1.6 Standard of Care ...................... 107
22.1.7 Order of Disclosure ................... 107
22.1.8 Termination of Agreement .............. 108
22.1.9 Remedies .............................. 108
Original Sheet No. 7
22.1.10 Disclosure to FERC, its Staff, or a
State ......................................... 109
22.1.11
Article 23. Environmental Releases ..................... 110
23.1
Article 24. Information Requirements ................... 111
24.1 Information Acquisition ...................... 111
24.2 Information Submission by Transmission
Provider ........................................... 111
24.3 Updated Information Submission by
Interconnection
Customer ..................................... 111
24.4 Information Supplementation .................. 112
Article 25. Information Access and Audit Rights ........ 113
25.1 Information Access ........................... 113
25.2 Reporting of Non-Force Majeure Events ........ 113
25.3 Audit Rights ................................. 114
25.4 Audit Rights Periods ......................... 114
25.4.1 Audit Rights Period for Construction-
Related
Accounts and Records .................. 114
25.4.2 Audit Rights Period for All Other
Accounts
and Records ........................... 115
25.5 Audit Results ................................ 115
Article 26. Subcontractors ............................. 115
26.1 General ...................................... 115
26.2 Responsibility of Principal .................. 115
26.3 No Limitation by Insurance ................... 116
Article 27. Disputes ................................... 116
27.1 Submission ................................... 116
27.2 External Arbitration Procedures .............. 116
27.3 Arbitration Decisions ........................ 117
27.4 Costs ........................................ 117
Article 28. Representations, Warranties, and Covenants . 118
28.1 General ...................................... 118
28.1.1 Good Standing ......................... 118
28.1.2 Authority ............................. 118
28.1.3 No Conflict ........................... 118
28.1.4 Consent and Approval .................. 119
Article 29. Joint Operating Committee .................. 119
29.1 Joint Operating Committee
Original Sheet No. 8
29.1.1
29.1.2
29.1.3
29.1.4
29.1.5
29.1.6
Article 30. Miscellaneous .............................. 120
30.1 Binding Effect ............................... 120
30.2 Conflicts .................................... 120
30.3 Rules of Interpretation ...................... 120
30.4 Entire Agreement ............................. 121
30.5 No Third Party Beneficiaries ................. 122
30.6 Waiver ....................................... 122
30.7 Headings ..................................... 122
30.8 Multiple Counterparts ........................ 122
30.9 Amendment .................................... 122
30.10 Modification by the Parties ................. 122
30.11 Reservation of Rights ....................... 123
30.12 No Partnership .............................. 123
Appendix A - Interconnection Facilities, Network Upgrades,
Distribution Upgrades, and Contingent Facilities
Appendix B – Milestones
Appendix C – Interconnection Details
Appendix D – Security Arrangements Details
Appendix E – Commercial Operation Date
Appendix F – Addresses for Delivery of Notices and Billings
Appendix G – Interconnection Requirements for a Wind
Generating Plant
Original Sheet No. 9
STANDARD LARGE GENERATOR INTERCONNECTION AGREEMENT
THIS STANDARD LARGE GENERATOR INTERCONNECTION
AGREEMENT ("Agreement") is made and entered into this ___
day of ____________, 20 by and between Dinosolar, LLC, a
limited liability company organized and existing under the
laws of the State of Delaware ("Interconnection Customer")
with a Large Generating Facility), and PacifiCorp a
corporation organized and existing under the laws of the
State of Oregon ("Transmission Provider and/or Transmission
Owner"). Interconnection Customer and Transmission
Provider each may be referred to as a "Party" or
collectively as the "Parties."
Recitals
WHEREAS, Transmission Provider operates the Transmission
System; and
WHEREAS,Interconnection Customer intends to own, lease
and/or control and operate the Generating Facility identified
as a Large Generating Facility in Appendix C to this
Agreement; and,
WHEREAS, Interconnection Customer and Transmission
Provider have agreed to enter into this Agreement for the
purpose of interconnecting the Large Generating Facility with
the Transmission System;
NOW, THEREFORE,in consideration of and subject to the
mutual covenants contained herein, it is agreed:
When used in this Standard Large Generator
Interconnection Agreement, terms with initial
capitalization that are not defined in Article 1 shall have
the meanings specified in the Article in which they are
used or the Open Access Transmission Tariff (Tariff).
Article 1. Definitions
Adverse System Impact shall mean the negative effects
due to technical or operational limits on conductors or
12th
February 20
Original Sheet No. 10
equipment being exceeded that may compromise the safety and
reliability of the electric system.
Affected System shall mean an electric system other
than the Transmission Provider's Transmission System that
may be affected by the proposed interconnection.
Affected System Operator shall mean the entity that
operates an Affected System.
Affiliate shall mean, with respect to a corporation,
partnership or other entity, each such other corporation,
partnership or other entity that directly or indirectly,
through one or more intermediaries, controls, is controlled
by, or is under common control with, such corporation,
partnership or other entity.
Ancillary Services shall mean those services that are
necessary to support the transmission of capacity and
energy from resources to loads while maintaining reliable
operation of the Transmission Provider's Transmission
System in accordance with Good Utility Practice.
Applicable Laws and Regulations shall mean all duly
promulgated applicable federal, state and local laws,
regulations, rules, ordinances, codes, decrees, judgments,
directives, or judicial or administrative orders, permits
and other duly authorized actions of any Governmental
Authority.
Applicable Reliability Council shall mean the
reliability council applicable to the Transmission System
to which the Generating Facility is directly
interconnected.
Applicable Reliability Standards shall mean the
requirements and guidelines of NERC, the Applicable
Reliability Council, and the Control Area of the
Transmission System to which the Generating Facility is
directly interconnected.
Base Case shall mean the base case power flow, short
circuit, and stability data bases used for the
Interconnection Studies by the Transmission Provider or
Interconnection Customer.
Original Sheet No. 11
Breach shall mean the failure of a Party to perform or
observe any material term or condition of the Standard
Large Generator Interconnection Agreement.
Breaching Party shall mean a Party that is in Breach
of the Standard Large Generator Interconnection Agreement.
Business Day shall mean Monday through Friday,
excluding Federal Holidays.
Calendar Day shall mean any day including Saturday,
Sunday or a Federal Holiday.
Clustering shall mean the process whereby a group of
Interconnection Requests is studied together, instead of
serially, for the purpose of conducting the Interconnection
System Impact Study.
Commercial Operation shall mean the status of a
Generating Facility that has commenced generating
electricity for sale, excluding electricity generated
during Trial Operation.
Commercial Operation Date of a unit shall mean the
date on which the Generating Facility commences Commercial
Operation as agreed to by the Parties pursuant to Appendix
E to the Standard Large Generator Interconnection
Agreement.
Confidential Information shall mean any confidential,
proprietary or trade secret information of a plan,
specification, pattern, procedure, design, device, list,
concept, policy or compilation relating to the present or
planned business of a Party, which is designated as
confidential by the Party supplying the information,
whether conveyed orally, electronically, in writing,
through inspection, or otherwise.
Control Area shall mean an electrical system or
systems bounded by interconnection metering and telemetry,
capable of controlling generation to maintain its
interchange schedule with other Control Areas and
contributing to frequency regulation of the
interconnection. A Control Area must be certified by the
Applicable Reliability Council.
Original Sheet No. 12
Default shall mean the failure of a Breaching Party to
cure its Breach in accordance with Article 17 of the
Standard Large Generator Interconnection Agreement.
Dispute Resolution shall mean the procedure for
resolution of a dispute between the Parties in which they
will first attempt to resolve the dispute on an informal
basis.
Distribution System shall mean the Transmission
Provider's facilities and equipment used to transmit
electricity to ultimate usage points such as homes and
industries directly from nearby generators or from
interchanges with higher voltage transmission networks
which transport bulk power over longer distances. The
voltage levels at which distribution systems operate differ
among areas.
Distribution Upgrades shall mean the additions,
modifications, and upgrades to the Transmission Provider's
Distribution System at or beyond the Point of
Interconnection to facilitate interconnection of the
Generating Facility and render the transmission service
necessary to effect Interconnection Customer's wholesale
sale of electricity in interstate commerce. Distribution
Upgrades do not include Interconnection Facilities.
Effective Date shall mean the date on which the
Standard Large Generator Interconnection Agreement becomes
effective upon execution by the Parties subject to
acceptance by FERC, or if filed unexecuted, upon the date
specified by FERC.
Emergency Condition shall mean a condition or
situation: (1) that in the judgment of the Party making the
claim is imminently likely to endanger life or property; or
(2) that, in the case of a Transmission Provider, is
imminently likely (as determined in a non-discriminatory
manner) to cause a material adverse effect on the security
of, or damage to Transmission Provider's Transmission
System, Transmission Provider's Interconnection Facilities
or the electric systems of others to which the Transmission
Provider's Transmission System is directly connected; or
(3) that, in the case of Interconnection Customer, is
imminently likely (as determined in a non-discriminatory
manner) to cause a material adverse effect on the security
of, or damage to, the Generating Facility or
Original Sheet No. 13
Interconnection Customer's Interconnection Facilities.
System restoration and black start shall be considered
Emergency Conditions; provided, that Interconnection
Customer is not obligated by the Standard Large Generator
Interconnection Agreement to possess black start
capability.
Energy Resource Interconnection Service shall mean an
Interconnection Service that allows the Interconnection
Customer to connect its Generating Facility to the
Transmission Provider's Transmission System to be eligible
to deliver the Generating Facility's electric output using
the existing firm or nonfirm capacity of the Transmission
Provider's Transmission System on an as available basis.
Energy Resource Interconnection Service in and of itself
does not convey transmission service.
Engineering & Procurement (E&P) Agreement shall mean
an agreement that authorizes the Transmission Provider to
begin engineering and procurement of long lead-time items
necessary for the establishment of the interconnection in
order to advance the implementation of the Interconnection
Request.
Environmental Law shall mean Applicable Laws or
Regulations relating to pollution or protection of the
environment or natural resources.
Federal Power Act shall mean the Federal Power Act, as
amended, 16 U.S.C. §§ 791a et seq.
FERC shall mean the Federal Energy Regulatory
Commission (Commission) or its successor.
Force Majeure shall mean any act of God, labor
disturbance, act of the public enemy, war, insurrection,
riot, fire, storm or flood, explosion, breakage or accident
to machinery or equipment, any order, regulation or
restriction imposed by governmental, military or lawfully
established civilian authorities, or any other cause beyond
a Party's control. A Force Majeure event does not include
acts of negligence or intentional wrongdoing by the Party
claiming Force Majeure.
Generating Facility shall mean Interconnection
Customer's device for the production and/or storage for
later injection of electricity identified in the
Original Sheet No. 14
Interconnection Request, but shall not include the
Interconnection Customer's Interconnection Facilities.
Generating Facility Capacity shall mean the net
capacity of the Generating Facility and the aggregate net
capacity of the Generating Facility where it includes
multiple energy production devices.
Good Utility Practice shall mean any of the practices,
methods and acts engaged in or approved by a significant
portion of the electric industry during the relevant time
period, or any of the practices, methods and acts which, in
the exercise of reasonable judgment in light of the facts
known at the time the decision was made, could have been
expected to accomplish the desired result at a reasonable
cost consistent with good business practices, reliability,
safety and expedition. Good Utility Practice is not
intended to be limited to the optimum practice, method, or
act to the exclusion of all others, but rather to be
acceptable practices, methods, or acts generally accepted
in the region.
Governmental Authority shall mean any federal, state,
local or other governmental regulatory or administrative
agency, court, commission, department, board, or other
governmental subdivision, legislature, rulemaking board,
tribunal, or other governmental authority having
jurisdiction over the Parties, their respective facilities,
or the respective services they provide, and exercising or
entitled to exercise any administrative, executive, police,
or taxing authority or power; provided, however, that such
term does not include Interconnection Customer,
Transmission Provider, or any Affiliate thereof.
Hazardous Substances shall mean any chemicals,
materials or substances defined as or included in the
definition of "hazardous substances," "hazardous wastes,"
"hazardous materials," "hazardous constituents,"
"restricted hazardous materials," "extremely hazardous
substances," "toxic substances," "radioactive substances,"
"contaminants," "pollutants," "toxic pollutants" or words
of similar meaning and regulatory effect under any
applicable Environmental Law, or any other chemical,
material or substance, exposure to which is prohibited,
limited or regulated by any applicable Environmental Law.
Original Sheet No. 15
Initial Synchronization Date shall mean the date upon
which the Generating Facility is initially synchronized and
upon which Trial Operation begins.
In-Service Date shall mean the date upon which the
Interconnection Customer reasonably expects it will be
ready to begin use of the Transmission Provider's
Interconnection Facilities to obtain back feed power.
Interconnection Customer shall mean any entity,
including the Transmission Provider, Transmission Owner or
any of the Affiliates or subsidiaries of either, that
proposes to interconnect its Generating Facility with the
Transmission Provider's Transmission System.
Interconnection Customer's Interconnection Facilities
shall mean all facilities and equipment, as identified in
Appendix A of the Standard Large Generator Interconnection
Agreement, that are located between the Generating Facility
and the Point of Change of Ownership, including any
modification, addition, or upgrades to such facilities and
equipment necessary to physically and electrically
interconnect the Generating Facility to the Transmission
Provider's Transmission System. Interconnection Customer's
Interconnection Facilities are sole use facilities.
Interconnection Facilities shall mean the Transmission
Provider's Interconnection Facilities and the
Interconnection Customer's Interconnection Facilities.
Collectively, Interconnection Facilities include all
facilities and equipment between the Generating Facility
and the Point of Interconnection, including any
modification, additions or upgrades that are necessary to
physically and electrically interconnect the Generating
Facility to the Transmission Provider's Transmission
System. Interconnection Facilities are sole use facilities
and shall not include Distribution Upgrades, Stand Alone
Network Upgrades or Network Upgrades.
Interconnection Facilities Study shall mean a study
conducted by the Transmission Provider or a third party
consultant for the Interconnection Customer to determine a
list of facilities (including Transmission Provider's
Interconnection Facilities and Network Upgrades as
identified in the Interconnection System Impact Study), the
cost of those facilities, and the time required to
interconnect the Generating Facility with the Transmission
Original Sheet No. 16
Provider's Transmission System. The scope of the study is
defined in Section 43 of the Standard Large Generator
Interconnection Procedures.
Interconnection Facilities Study Agreement shall mean
the form of agreement contained in Appendix 4 of the
Standard Large Generator Interconnection Procedures for
conducting the Interconnection Facilities Study.
Interconnection Feasibility Study shall mean a
preliminary evaluation of the system impact and cost of
interconnecting the Generating Facility to the Transmission
Provider's Transmission System, the scope of which is
described in Section 41 of the Standard Large Generator
Interconnection Procedures.
Interconnection Feasibility Study Agreement shall mean
the form of agreement contained in Appendix 2 of the
Standard Large Generator Interconnection Procedures for
conducting the Interconnection Feasibility Study.
Interconnection Request shall mean an Interconnection
Customer's request, in the form of Appendix 1 to the
Standard Large Generator Interconnection Procedures, in
accordance with the Tariff, to interconnect a new
Generating Facility, or to increase the capacity of, or
make a Material Modification to the operating
characteristics of, an existing Generating Facility that is
interconnected with the Transmission Provider's
Transmission System.
Interconnection Service shall mean the service
provided by the Transmission Provider associated with
interconnecting the Interconnection Customer's Generating
Facility to the Transmission Provider's Transmission System
and enabling it to receive electric energy and capacity
from the Generating Facility at the Point of
Interconnection, pursuant to the terms of the Standard
Large Generator Interconnection Agreement and, if
applicable, the Transmission Provider's Tariff.
Interconnection Study shall mean any of the following
studies: the Interconnection Feasibility Study, the
Interconnection System Impact Study, and the
Interconnection Facilities Study described in the Standard
Large Generator Interconnection Procedures.
Original Sheet No. 17
Interconnection System Impact Study shall mean an
engineering study that evaluates the impact of the proposed
interconnection on the safety and reliability of
Transmission Provider's Transmission System and, if
applicable, an Affected System. The study shall identify
and detail the system impacts that would result if the
Generating Facility were interconnected without project
modifications or system modifications, focusing on the
Adverse System Impacts identified in the Interconnection
Feasibility Study, or to study potential impacts, including
but not limited to those identified in the Scoping Meeting
as described in the Standard Large Generator
Interconnection Procedures.
Interconnection System Impact Study Agreement shall
mean the form of agreement contained in Appendix 3 of the
Standard Large Generator Interconnection Procedures for
conducting the Interconnection System Impact Study.
IRS shall mean the Internal Revenue Service.
Joint Operating Committee shall be a group made up of
representatives from Interconnection Customers and the
Transmission Provider to coordinate operating and technical
considerations of Interconnection Service.
Large Generating Facility shall mean a Generating
Facility having a Generating Facility Capacity of more than
20 MW.
Loss shall mean any and all losses 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
performance, or non-performance of its obligations under
the Standard Large Generator Interconnection Agreement on
behalf of the indemnifying Party, except in cases of gross
negligence or intentional wrongdoing by the indemnifying
Party.
Material Modification shall mean those modifications
that have a material impact on the cost or timing of any
Interconnection Request with a later queue priority date.
Metering Equipment shall mean all metering equipment
installed or to be installed at the Generating Facility
Original Sheet No. 18
pursuant to the Standard Large Generator Interconnection
Agreement at the metering points, including but not limited
to instrument transformers, MWh-meters, data acquisition
equipment, transducers, remote terminal unit,
communications equipment, phone lines, and fiber optics.
NERC shall mean the North American Electric
Reliability Council or its successor organization.
Network Resource shall mean any designated generating
resource owned, purchased, or leased by a Network Customer
under the Network Integration Transmission Service Tariff.
Network Resources do not include any resource, or any
portion thereof, that is committed for sale to third
parties or otherwise cannot be called upon to meet the
Network Customer's Network Load on a non-interruptible
basis.
Network Resource Interconnection Service shall mean an
Interconnection Service that allows the Interconnection
Customer to integrate its Large Generating Facility with
the Transmission Provider's Transmission System (1) in a
manner comparable to that in which the Transmission
Provider integrates its generating facilities to serve
native load customers; or (2) in an RTO or ISO with market
based congestion management, in the same manner as Network
Resources. Network Resource Interconnection Service in and
of itself does not convey transmission service.
Network Upgrades shall mean the additions,
modifications, and upgrades to the Transmission Provider's
Transmission System required at or beyond the point at
which the Interconnection Facilities connect to the
Transmission Provider's Transmission System to accommodate
the interconnection of the Large Generating Facility to the
Transmission Provider's Transmission System.
Notice of Dispute shall mean a written notice of a
dispute or claim that arises out of or in connection with
the Standard Large Generator Interconnection Agreement or
its performance.
Optional Interconnection Study shall mean a
sensitivity analysis based on assumptions specified by the
Interconnection Customer in the Optional Interconnection
Study Agreement.
Original Sheet No. 19
Optional Interconnection Study Agreement shall mean
the form of agreement contained in Appendix 5 of the
Standard Large Generator Interconnection Procedures for
conducting the Optional Interconnection Study.
Party or Parties shall mean Transmission Provider,
Transmission Owner, Interconnection Customer or any
combination of the above.
Point of Change of Ownership shall mean the point, as
set forth in Appendix A to the Standard Large Generator
Interconnection Agreement, where the Interconnection
Customer's Interconnection Facilities connect to the
Transmission Provider's Interconnection Facilities.
Point of Interconnection shall mean the point, as set
forth in Appendix A to the Standard Large Generator
Interconnection Agreement, where the Interconnection
Facilities connect to the Transmission Provider's
Transmission System.
Provisional Interconnection Service shall mean
Interconnection Service provided by Transmission Provider
associated with interconnecting the Interconnection
Customer’s Generating Facility to Transmission Provider’s
Transmission System and enabling that Transmission System
to receive electric energy and capacity from the Generating
Facility at the Point of Interconnection, pursuant to the
terms of the Provisional Large Generator Interconnection
Agreement and, if applicable, the Tariff.
Provisional Large Generator Interconnection Agreement
shall mean the interconnection agreement for Provisional
Interconnection Service established between Transmission
Provider and/or the Transmission Owner and the
Interconnection Customer. This agreement shall take the
form of the Large Generator Interconnection Agreement,
modified for provisional purposes.
Queue Position shall mean the order of a valid
Interconnection Request, relative to all other pending
valid Interconnection Requests, that is established based
upon the date and time of receipt of the valid
Interconnection Request by the Transmission Provider.
Reasonable Efforts shall mean, with respect to an
action required to be attempted or taken by a Party under
Original Sheet No. 20
the Standard Large Generator Interconnection Agreement,
efforts that are timely and consistent with Good Utility
Practice and are otherwise substantially equivalent to
those a Party would use to protect its own interests.
Scoping Meeting shall mean the meeting between
representatives of the Interconnection Customer and
Transmission Provider conducted for the purpose of
discussing alternative interconnection options, to exchange
information including any transmission data and earlier
study evaluations that would be reasonably expected to
impact such interconnection options, to analyze such
information, and to determine the potential feasible Points
of Interconnection.
Site Control shall mean documentation reasonably
demonstrating: (1) ownership of, a leasehold interest in,
or a right to develop a site for the purpose of
constructing the Generating Facility; (2) an option to
purchase or acquire a leasehold site for such purpose; or
(3) an exclusivity or other business relationship between
Interconnection Customer and the entity having the right to
sell, lease or grant Interconnection Customer the right to
possess or occupy a site for such purpose.
Small Generating Facility shall mean a Generating
Facility that has a Generating Facility Capacity of no more
than 20 MW.
Stand Alone Network Upgrades shall mean Network
Upgrades that are not part of an Affected System that an
Interconnection Customer may construct without affecting
day-to-day operations of the Transmission System during
their construction. Both the Transmission Provider and the
Interconnection Customer must agree as to what constitutes
Stand Alone Network Upgrades and identify them in Appendix
A to the Standard Large Generator Interconnection
Agreement. If the Transmission Provider and Interconnection
Customer disagree about whether a particular Network
Upgrade is a Stand Alone Network Upgrade, the Transmission
Provider must provide the Interconnection Customer a
written technical explanation outlining why the
Transmission Provider does not consider the Network Upgrade
to be a Stand Alone Network Upgrade within 15 days of its
determination.
Original Sheet No. 21
Standard Large Generator Interconnection Agreement
(LGIA)shall mean the form of interconnection agreement
applicable to an Interconnection Request pertaining to a
Large Generating Facility that is included in the
Transmission Provider's Tariff.
Standard Large Generator Interconnection Procedures
(LGIP)shall mean the interconnection procedures applicable
to an Interconnection Request pertaining to a Large
Generating Facility that are included in the Transmission
Provider's Tariff.
Surplus Interconnection Service shall mean any
unneeded portion of Interconnection Service established in
a Large Generator Interconnection Agreement, such that if
Surplus Interconnection Service is utilized the total
amount of Interconnection Service at the Point of
Interconnection would remain the same.
System Protection Facilities shall mean the equipment,
including necessary protection signal communications
equipment, required to protect (1) the Transmission
Provider's Transmission System from faults or other
electrical disturbances occurring at the Generating
Facility and (2) the Generating Facility from faults or
other electrical system disturbances occurring on the
Transmission Provider's Transmission System or on other
delivery systems or other generating systems to which the
Transmission Provider's Transmission System is directly
connected.
Tariff shall mean the Transmission Provider's Tariff
through which open access transmission service and
Interconnection Service are offered, as filed with FERC,
and as amended or supplemented from time to time, or any
successor tariff.
Transmission Owner shall mean an entity that owns,
leases or otherwise possesses an interest in the portion of
the Transmission System at the Point of Interconnection and
may be a Party to the Standard Large Generator
Interconnection Agreement to the extent necessary.
Transmission Provider shall mean the public utility
(or its designated agent) that owns, controls, or operates
transmission or distribution facilities used for the
transmission of electricity in interstate commerce and
Original Sheet No. 22
provides transmission service under the Tariff. The term
Transmission Provider should be read to include the
Transmission Owner when the Transmission Owner is separate
from the Transmission Provider.
Transmission Provider's Interconnection Facilities
shall mean all facilities and equipment owned, controlled
or operated by the Transmission Provider from the Point of
Change of Ownership to the Point of Interconnection as
identified in Appendix A to the Standard Large Generator
Interconnection Agreement, including any modifications,
additions or upgrades to such facilities and equipment.
Transmission Provider's Interconnection Facilities are sole
use facilities and shall not include Distribution Upgrades,
Stand Alone Network Upgrades or Network Upgrades.
Transmission System shall mean the facilities owned,
controlled or operated by the Transmission Provider or
Transmission Owner that are used to provide transmission
service under the Tariff.
Trial Operation shall mean the period during which
Interconnection Customer is engaged in on-site test
operations and commissioning of the Generating Facility
prior to Commercial Operation.
Variable Energy Resource shall mean a device for the
production of electricity that is characterized by an
energy source that: (1) is renewable; (2) cannot be stored
by the facility owner or operator; and (3) has variability
that is beyond the control of the facility owner or
operator.
Article 2. Effective Date, Term, and Termination
2.1 Effective Date.This LGIA shall become effective
upon execution by the Parties subject to acceptance
by FERC (if applicable), or if filed unexecuted, upon
the date specified by FERC. Transmission Provider
shall promptly file this LGIA with FERC upon
execution in accordance with Article 3.1, if
required.
2.2 Term of Agreement.Subject to the provisions of
Article 2.3, this LGIA shall remain in effect for a
period of ten (10) years from the Effective Date or
Original Sheet No. 23
such other longer period as Interconnection Customer
may request (Term to be specified in individual
agreements) and shall be automatically renewed for
each successive one-year period thereafter.
2.3 Termination Procedures.
2.3.1 Written Notice. This LGIA may be
terminated by Interconnection Customer
after giving Transmission Provider ninety
(90) Calendar Days advance written notice,
or by Transmission Provider notifying FERC
after the Generating Facility permanently
ceases Commercial Operation.
2.3.2 Default. Either Party may terminate this
LGIA in accordance with Article 17.
2.3.3 Notwithstanding Articles 2.3.1 and 2.3.2,
no termination shall become effective
until the Parties have complied with all
Applicable Laws and Regulations applicable
to such termination, including the filing
with FERC of a notice of termination of
this LGIA, which notice has been accepted
for filing by FERC.
2.4 Termination Costs.If a Party elects to terminate
this Agreement pursuant to Article 2.3 above, each
Party shall pay all costs incurred (including any
cancellation costs relating to orders or contracts
for Interconnection Facilities and equipment) or
charges assessed by the other Party, as of the date
of the other Party's receipt of such notice of
termination, that are the responsibility of the
Terminating Party under this LGIA. In the event of
termination by a Party, the Parties shall use
commercially Reasonable Efforts to mitigate the
costs, damages and charges arising as a consequence
of termination. Upon termination of this LGIA,
unless otherwise ordered or approved by FERC:
2.4.1 With respect to any portion of
Transmission Provider's Interconnection
Facilities that have not yet been
constructed or installed, Transmission
Provider shall to the extent possible and
Original Sheet No. 24
with Interconnection Customer's
authorization cancel any pending orders
of, or return, any materials or equipment
for, or contracts for construction of,
such facilities; provided that in the
event Interconnection Customer elects not
to authorize such cancellation,
Interconnection Customer shall assume all
payment obligations with respect to such
materials, equipment, and contracts, and
Transmission Provider shall deliver such
material and equipment, and, if necessary,
assign such contracts, to Interconnection
Customer as soon as practicable, at
Interconnection Customer's expense. To
the extent that Interconnection Customer
has already paid Transmission Provider for
any or all such costs of materials or
equipment not taken by Interconnection
Customer, Transmission Provider shall
promptly refund such amounts to
Interconnection Customer, less any costs,
including penalties incurred by
Transmission Provider to cancel any
pending orders of or return such
materials, equipment, or contracts.
If an Interconnection Customer terminates
this LGIA, it shall be responsible for all
costs incurred in association with that
Interconnection Customer's
interconnection, including any
cancellation costs relating to orders or
contracts for Interconnection Facilities
and equipment, and other expenses
including any Network Upgrades for which
Transmission Provider has incurred
expenses and has not been reimbursed by
Interconnection Customer.
2.4.2 Transmission Provider may, at its option,
retain any portion of such materials,
equipment, or facilities that
Interconnection Customer chooses not to
accept delivery of, in which case
Transmission Provider shall be responsible
Original Sheet No. 25
for all costs associated with procuring
such materials, equipment, or facilities.
2.4.3 With respect to any portion of the
Interconnection Facilities, and any other
facilities already installed or
constructed pursuant to the terms of this
LGIA, Interconnection Customer shall be
responsible for all costs associated with
the removal, relocation or other
disposition or retirement of such
materials, equipment, or facilities.
2.5 Disconnection. Upon termination of this LGIA, the
Parties will take all appropriate steps to disconnect
the Large Generating Facility from the Transmission
System. All costs required to effectuate such
disconnection shall be borne by the terminating
Party, unless such termination resulted from the non-
terminating Party's Default of this LGIA or such non-
terminating Party otherwise is responsible for these
costs under this LGIA.
2.6 Survival. This LGIA shall continue in effect after
termination to the extent necessary to provide for
final billings and payments and for costs incurred
hereunder, including billings and payments pursuant
to this LGIA; to permit the determination and
enforcement of liability and indemnification
obligations arising from acts or events that occurred
while this LGIA was in effect; and to permit each
Party to have access to the lands of the other Party
pursuant to this LGIA or other applicable agreements,
to disconnect, remove or salvage its own facilities
and equipment.
Article 3. Regulatory Filings
3.1 Filing. Transmission Provider shall file this LGIA
(and any amendment hereto) with the appropriate
Governmental Authority, if required. Interconnection
Customer may request that any information so provided
be subject to the confidentiality provisions of
Article 22. If Interconnection Customer has executed
this LGIA, or any amendment thereto, Interconnection
Customer shall reasonably cooperate with Transmission
Original Sheet No. 26
Provider with respect to such filing and to provide
any information reasonably requested by Transmission
Provider needed to comply with applicable regulatory
requirements.
Article 4. Scope of Service
4.1 Interconnection Product Options. Interconnection
Customer has selected the following (checked) type of
Interconnection Service:
X 4.1.1 Energy Resource Interconnection Service.
4.1.1.1 The Product. Energy Resource
Interconnection Service allows
Interconnection Customer to
connect the Large Generating
Facility to the Transmission
System and be eligible to deliver
the Large Generating Facility's
output using the existing firm or
non-firm capacity of the
Transmission System on an "as
available" basis. To the extent
Interconnection Customer wants to
receive Energy Resource
Interconnection Service,
Transmission Provider shall
construct facilities identified
in Appendix A.
4.1.1.2 Transmission Delivery Service
Implications. Under Energy
Resource Interconnection Service,
Interconnection Customer will be
eligible to inject power from the
Large Generating Facility into
and deliver power across the
interconnecting Transmission
Provider's Transmission System on
an "as available" basis up to the
amount of MWs identified in the
applicable stability and steady
state studies to the extent the
upgrades initially required to
Original Sheet No. 27
qualify for Energy Resource
Interconnection Service have been
constructed. Where eligible to
do so (e.g., PJM, ISO-NE, NYISO),
Interconnection Customer may
place a bid to sell into the
market up to the maximum
identified Large Generating
Facility output, subject to any
conditions specified in the
interconnection service approval,
and the Large Generating Facility
will be dispatched to the extent
Interconnection Customer's bid
clears. In all other instances,
no transmission delivery service
from the Large Generating
Facility is assured, but
Interconnection Customer may
obtain Point-to-Point
Transmission Service, Network
Integration Transmission Service,
or be used for secondary network
transmission service, pursuant to
Transmission Provider's Tariff,
up to the maximum output
identified in the stability and
steady state studies. In those
instances, in order for
Interconnection Customer to
obtain the right to deliver or
inject energy beyond the Large
Generating Facility Point of
Interconnection or to improve its
ability to do so, transmission
delivery service must be obtained
pursuant to the provisions of
Transmission Provider's Tariff.
The Interconnection Customer's
ability to inject its Large
Generating Facility output beyond
the Point of Interconnection,
therefore, will depend on the
existing capacity of Transmission
Provider's Transmission System at
such time as a transmission
service request is made that
Original Sheet No. 28
would accommodate such delivery.
The provision of firm Point-to-
Point Transmission Service or
Network Integration Transmission
Service may require the
construction of additional
Network Upgrades.
Ƒ 4.1.2 Network Resource Interconnection Service.
4.1.2.1 The Product. Transmission
Provider must conduct the
necessary studies and construct
the Network Upgrades needed to
integrate the Large Generating
Facility (1) in a manner
comparable to that in which
Transmission Provider integrates
its generating facilities to
serve native load customers; or
(2) in an ISO or RTO with market
based congestion management, in
the same manner as all Network
Resources. To the extent
Interconnection Customer wants to
receive Network Resource
Interconnection Service,
Transmission Provider shall
construct the facilities
identified in Appendix A to this
LGIA.
4.1.2.2 Transmission Delivery Service
Implications. Network Resource
Interconnection Service allows
Interconnection Customer's Large
Generating Facility to be
designated by any Network
Customer under the Tariff on
Transmission Provider's
Transmission System as a Network
Resource, up to the Large
Generating Facility's full
output, on the same basis as
existing Network Resources
interconnected to Transmission
Original Sheet No. 29
Provider's Transmission System,
and to be studied as a Network
Resource on the assumption that
such a designation will occur.
Although Network Resource
Interconnection Service does not
convey a reservation of
transmission service, any Network
Customer under the Tariff can
utilize its network service under
the Tariff to obtain delivery of
energy from the interconnected
Interconnection Customer's Large
Generating Facility in the same
manner as it accesses Network
Resources. A Large Generating
Facility receiving Network
Resource Interconnection Service
may also be used to provide
Ancillary Services after
technical studies and/or periodic
analyses are performed with
respect to the Large Generating
Facility's ability to provide any
applicable Ancillary Services,
provided that such studies and
analyses have been or would be
required in connection with the
provision of such Ancillary
Services by any existing Network
Resource. However, if an
Interconnection Customer's Large
Generating Facility has not been
designated as a Network Resource
by any load, it cannot be
required to provide Ancillary
Services except to the extent
such requirements extend to all
generating facilities that are
similarly situated. The
provision of Network Integration
Transmission Service or firm
Point-to-Point Transmission
Service may require additional
studies and the construction of
additional upgrades. Because
such studies and upgrades would
Original Sheet No. 30
be associated with a request for
delivery service under the
Tariff, cost responsibility for
the studies and upgrades would be
in accordance with FERC's policy
for pricing transmission delivery
services.
Network Resource Interconnection
Service does not necessarily
provide Interconnection Customer
with the capability to physically
deliver the output of its Large
Generating Facility to any
particular load on Transmission
Provider's Transmission System
without incurring congestion
costs. In the event of
transmission constraints on
Transmission Provider's
Transmission System,
Interconnection Customer's Large
Generating Facility shall be
subject to the applicable
congestion management procedures
in Transmission Provider's
Transmission System in the same
manner as Network Resources.
There is no requirement either at
the time of study or
interconnection, or at any point
in the future, that
Interconnection Customer's Large
Generating Facility be designated
as a Network Resource by a
Network Service Customer under
the Tariff or that
Interconnection Customer identify
a specific buyer (or sink). To
the extent a Network Customer
does designate the Large
Generating Facility as a Network
Resource, it must do so pursuant
to Transmission Provider's
Tariff.
Original Sheet No. 31
Once an Interconnection Customer
satisfies the requirements for
obtaining Network Resource
Interconnection Service, any
future transmission service
request for delivery from the
Large Generating Facility within
Transmission Provider's
Transmission System of any amount
of capacity and/or energy, up to
the amount initially studied,
will not require that any
additional studies be performed
or that any further upgrades
associated with such Large
Generating Facility be
undertaken, regardless of whether
or not such Large Generating
Facility is ever designated by a
Network Customer as a Network
Resource and regardless of
changes in ownership of the Large
Generating Facility. However,
the reduction or elimination of
congestion or redispatch costs
may require additional studies
and the construction of
additional upgrades.
To the extent Interconnection
Customer enters into an
arrangement for long term
transmission service for
deliveries from the Large
Generating Facility outside
Transmission Provider's
Transmission System, such request
may require additional studies
and upgrades in order for
Transmission Provider to grant
such request.
4.2 Provision of Service. Transmission Provider shall
provide Interconnection Service for the Large
Generating Facility at the Point of Interconnection.
Original Sheet No. 32
4.3 Performance Standards. Each Party shall perform all
of its obligations under this LGIA in accordance with
Applicable Laws and Regulations, Applicable
Reliability Standards, and Good Utility Practice, and
to the extent a Party is required or prevented or
limited in taking any action by such regulations and
standards, such Party shall not be deemed to be in
Breach of this LGIA for its compliance therewith. If
such Party is a Transmission Provider or Transmission
Owner, then that Party shall amend the LGIA and
submit the amendment to FERC for approval.
4.4 No Transmission Delivery Service. The execution of
this LGIA does not constitute a request for, nor the
provision of, any transmission delivery service under
Transmission Provider's Tariff, and does not convey
any right to deliver electricity to any specific
customer or Point of Delivery.
4.5 Interconnection Customer Provided Services. The
services provided by Interconnection Customer under
this LGIA are set forth in Article 9.6 and Article
13.5.1.
Interconnection Customer shall be paid for such
services in accordance with Article 11.6.
Article 5. Interconnection Facilities Engineering,
Procurement, and Construction
5.1 Options. Unless otherwise mutually agreed to between
the Parties, Interconnection Customer shall select
the In-Service Date, Initial Synchronization Date,
and Commercial Operation Date; and either the
Standard Option or Alternate Option set forth below,
and such dates and selected option shall be set forth
in Appendix B, Milestones. At the same time,
Interconnection Customer shall indicate whether it
elects to exercise the Option to Build set forth in
Article 5.1.3 below. If the dates designated by
Interconnection Customer are not acceptable to
Transmission Provider, Transmission Provider shall so
notify Interconnection Customer within thirty (30)
Calendar Days. Upon receipt of the notification that
Interconnection Customer’s designated dates are not
acceptable to Transmission Provider, the
Original Sheet No. 33
Interconnection Customer shall notify Transmission
Provider within thirty (30) Calendar Days whether it
elects to exercise the Option to Build if it has not
already elected to exercise the Option to Build.
5.1.1 Standard Option. Transmission Provider
shall design, procure, and construct
Transmission Provider's Interconnection
Facilities and Network Upgrades, using
Reasonable Efforts to complete
Transmission Provider's Interconnection
Facilities and Network Upgrades by the
dates set forth in Appendix B, Milestones.
Transmission Provider shall not be
required to undertake any action which is
inconsistent with its standard safety
practices, its material and equipment
specifications, its design criteria and
construction procedures, its labor
agreements, and Applicable Laws and
Regulations. In the event Transmission
Provider reasonably expects that it will
not be able to complete Transmission
Provider's Interconnection Facilities and
Network Upgrades by the specified dates,
Transmission Provider shall promptly
provide written notice to Interconnection
Customer and shall undertake Reasonable
Efforts to meet the earliest dates
thereafter.
5.1.2 Alternate Option. If the dates designated
by Interconnection Customer are acceptable
to Transmission Provider, Transmission
Provider shall so notify Interconnection
Customer within thirty (30) Calendar Days,
and shall assume responsibility for the
design, procurement and construction of
Transmission Provider's Interconnection
Facilities by the designated dates.
If Transmission Provider subsequently
fails to complete Transmission Provider's
Interconnection Facilities by the In-
Service Date, to the extent necessary to
provide back feed power; or fails to
complete Network Upgrades by the Initial
Original Sheet No. 34
Synchronization Date to the extent
necessary to allow for Trial Operation at
full power output, unless other
arrangements are made by the Parties for
such Trial Operation; or fails to complete
the Network Upgrades by the Commercial
Operation Date, as such dates are
reflected in Appendix B, Milestones;
Transmission Provider shall pay
Interconnection Customer liquidated
damages in accordance with Article 5.3,
Liquidated Damages, provided, however, the
dates designated by Interconnection
Customer shall be extended day for day for
each day that the applicable RTO or ISO
refuses to grant clearances to install
equipment.
5.1.3 Option to Build.Interconnection Customer
shall have the option to assume
responsibility for the design, procurement
and construction of Transmission
Provider's Interconnection Facilities and
Stand Alone Network Upgrades on the dates
specified in Article 5.1.2. Transmission
Provider and Interconnection Customer must
agree as to what constitutes Stand Alone
Network Upgrades and identify such Stand
Alone Network Upgrades in Appendix A.
Except for Stand Alone Network Upgrades,
Interconnection Customer shall have no
right to construct Network Upgrades under
this option.
5.1.4 Negotiated Option. If the dates
designated by interconnection Customer are
not acceptable to Transmission Provider
the Parties shall in good faith attempt to
negotiate terms and conditions (including
revision of the specified dates and
liquidated damages, the provision of
incentives, or the procurement and
construction of all facilities other than
Transmission Provider’s Interconnection
Facilities and Stand Alone Network
Upgrades if the Interconnection Customer
elects to exercise the Option to Build
Original Sheet No. 35
under Article 5.1.3). If the Parties are
unable to reach agreement on such terms
and conditions, then, pursuant to Article
5.1.1 (Standard Option), Transmission
Provider shall assume responsibility for
the design, procurement and construction
of all facilities other than Transmission
Provider’s Interconnection Facilities and
Stand Alone Network Upgrades if the
Interconnection Customer elects to
exercise the Option to Build.
5.2 General Conditions Applicable to Option to Build.If
Interconnection Customer assumes responsibility for
the design, procurement and construction of
Transmission Provider's Interconnection Facilities
and Stand Alone Network Upgrades,
(1) Interconnection Customer shall engineer,
procure equipment, and construct
Transmission Provider's Interconnection
Facilities and Stand Alone Network
Upgrades (or portions thereof) using Good
Utility Practice and using standards and
specifications provided in advance by
Transmission Provider;
(2) Interconnection Customer's engineering,
procurement and construction of
Transmission Provider's Interconnection
Facilities and Stand Alone Network
Upgrades shall comply with all
requirements of law to which Transmission
Provider would be subject in the
engineering, procurement or construction
of Transmission Provider's Interconnection
Facilities and Stand Alone Network
Upgrades;
(3) Transmission Provider shall review and
approve the engineering design, equipment
acceptance tests, and the construction of
Transmission Provider's Interconnection
Facilities and Stand Alone Network
Upgrades;
Original Sheet No. 36
(4) prior to commencement of construction,
Interconnection Customer shall provide to
Transmission Provider a schedule for
construction of Transmission Provider's
Interconnection Facilities and Stand Alone
Network Upgrades, and shall promptly
respond to requests for information from
Transmission Provider;
(5) at any time during construction,
Transmission Provider shall have the right
to gain unrestricted access to
Transmission Provider's Interconnection
Facilities and Stand Alone Network
Upgrades and to conduct inspections of the
same;
(6) at any time during construction, should
any phase of the engineering, equipment
procurement, or construction of
Transmission Provider's Interconnection
Facilities and Stand Alone Network
Upgrades not meet the standards and
specifications provided by Transmission
Provider, Interconnection Customer shall
be obligated to remedy deficiencies in
that portion of Transmission Provider's
Interconnection Facilities and Stand Alone
Network Upgrades;
(7) Interconnection Customer shall indemnify
Transmission Provider for claims arising
from Interconnection Customer's
construction of Transmission Provider's
Interconnection Facilities and Stand Alone
Network Upgrades under the terms and
procedures applicable to Article 18.1
Indemnity;
(8) Interconnection Customer shall transfer
control of Transmission Provider's
Interconnection Facilities and Stand Alone
Network Upgrades to Transmission Provider;
(9) Unless Parties otherwise agree,
Interconnection Customer shall transfer
ownership of Transmission Provider's
Original Sheet No. 37
Interconnection Facilities and Stand-Alone
Network Upgrades to Transmission Provider;
(10) Transmission Provider shall approve and
accept for operation and maintenance
Transmission Provider's Interconnection
Facilities and Stand Alone Network
Upgrades to the extent engineered,
procured, and constructed in accordance
with this Article 5.2; and
(11) Interconnection Customer shall deliver to
Transmission Provider "as-built" drawings,
information, and any other documents that
are reasonably required by Transmission
Provider to assure that the
Interconnection Facilities and Stand-Alone
Network Upgrades are built to the
standards and specifications required by
Transmission Provider.
(12) If Interconnection Customer exercises the
Option to Build pursuant to Article 5.1.3,
Interconnection Customer shall pay
Transmission Provider the agreed upon
amount of $84,900 for Transmission
Provider to execute the responsibilities
enumerated to Transmission Provider under
Article 5.2. Transmission Provider shall
invoice Interconnection Customer for this
total amount to be divided on a monthly
basis pursuant to Article 12.
5.3 Liquidated Damages. The actual damages to
Interconnection Customer, in the event Transmission
Provider's Interconnection Facilities or Network
Upgrades are not completed by the dates designated by
Interconnection Customer and accepted by Transmission
Provider pursuant to subparagraphs 5.1.2 or 5.1.4,
above, may include Interconnection Customer's fixed
operation and maintenance costs and lost opportunity
costs. Such actual damages are uncertain and
impossible to determine at this time. Because of
such uncertainty, any liquidated damages paid by
Transmission Provider to Interconnection Customer in
the event that Transmission Provider does not
complete any portion of Transmission Provider's
Original Sheet No. 38
Interconnection Facilities or Network Upgrades by the
applicable dates, shall be an amount equal to ½ of 1
percent per day of the actual cost of Transmission
Provider's Interconnection Facilities and Network
Upgrades, in the aggregate, for which Transmission
Provider has assumed responsibility to design,
procure and construct.
However, in no event shall the total liquidated
damages exceed 20 percent of the actual cost of
Transmission Provider's Interconnection Facilities
and Network Upgrades for which Transmission Provider
has assumed responsibility to design, procure, and
construct. The foregoing payments will be made by
Transmission Provider to Interconnection Customer as
just compensation for the damages caused to
Interconnection Customer, which actual damages are
uncertain and impossible to determine at this time,
and as reasonable liquidated damages, but not as a
penalty or a method to secure performance of this
LGIA. Liquidated damages, when the Parties agree to
them, are the exclusive remedy for the Transmission
Provider's failure to meet its schedule.
No liquidated damages shall be paid to
Interconnection Customer if: (1) Interconnection
Customer is not ready to commence use of Transmission
Provider's Interconnection Facilities or Network
Upgrades to take the delivery of power for the Large
Generating Facility's Trial Operation or to export
power from the Large Generating Facility on the
specified dates, unless Interconnection Customer
would have been able to commence use of Transmission
Provider's Interconnection Facilities or Network
Upgrades to take the delivery of power for Large
Generating Facility's Trial Operation or to export
power from the Large Generating Facility, but for
Transmission Provider's delay; (2) Transmission
Provider's failure to meet the specified dates is the
result of the action or inaction of Interconnection
Customer or any other Interconnection Customer who
has entered into an LGIA with Transmission Provider
or any cause beyond Transmission Provider's
reasonable control or reasonable ability to cure; (3)
the interconnection Customer has assumed
responsibility for the design, procurement and
construction of Transmission Provider's
Original Sheet No. 39
Interconnection Facilities and Stand Alone Network
Upgrades; or (4) the Parties have otherwise agreed.
5.4 Power System Stabilizers. The Interconnection
Customer shall procure, install, maintain and operate
Power System Stabilizers in accordance with the
guidelines and procedures established by the
Applicable Reliability Council. Transmission
Provider reserves the right to reasonably establish
minimum acceptable settings for any installed Power
System Stabilizers, subject to the design and
operating limitations of the Large Generating
Facility. If the Large Generating Facility's Power
System Stabilizers are removed from service or not
capable of automatic operation, Interconnection
Customer shall immediately notify Transmission
Provider's system operator, or its designated
representative. The requirements of this paragraph
shall not apply to wind generators.
5.5 Equipment Procurement. If responsibility for
construction of Transmission Provider's
Interconnection Facilities or Network Upgrades is to
be borne by Transmission Provider, then Transmission
Provider shall commence design of Transmission
Provider's Interconnection Facilities or Network
Upgrades and procure necessary equipment as soon as
practicable after all of the following conditions are
satisfied, unless the Parties otherwise agree in
writing:
5.5.1 Transmission Provider has completed the
Facilities Study pursuant to the
Facilities Study Agreement;
5.5.2 Transmission Provider has received written
authorization to proceed with design and
procurement from Interconnection Customer
by the date specified in Appendix B,
Milestones; and
5.5.3 Interconnection Customer has provided
security to Transmission Provider in
accordance with Article 11.5 by the dates
specified in Appendix B, Milestones.
Original Sheet No. 40
5.6 Construction Commencement. Transmission Provider
shall commence construction of Transmission
Provider's Interconnection Facilities and Network
Upgrades for which it is responsible as soon as
practicable after the following additional conditions
are satisfied:
5.6.1 Approval of the appropriate Governmental
Authority has been obtained for any
facilities requiring regulatory approval;
5.6.2 Necessary real property rights and rights-
of-way have been obtained, to the extent
required for the construction of a
discrete aspect of Transmission Provider's
Interconnection Facilities and Network
Upgrades;
5.6.3 Transmission Provider has received written
authorization to proceed with construction
from Interconnection Customer by the date
specified in Appendix B, Milestones; and
5.6.4 Interconnection Customer has provided
security to Transmission Provider in
accordance with Article 11.5 by the dates
specified in Appendix B, Milestones.
5.7 Work Progress. The Parties will keep each other
advised periodically as to the progress of their
respective design, procurement and construction
efforts. Either Party may, at any time, request a
progress report from the other Party. If, at any
time, Interconnection Customer determines that the
completion of Transmission Provider's
Interconnection Facilities will not be required until
after the specified In-Service Date, Interconnection
Customer will provide written notice to Transmission
Provider of such later date upon which the completion
of Transmission Provider's Interconnection Facilities
will be required.
5.8 Information Exchange. As soon as reasonably
practicable after the Effective Date, the Parties
shall exchange information regarding the design and
compatibility of the Parties' Interconnection
Facilities and compatibility of the Interconnection
Original Sheet No. 41
Facilities with Transmission Provider's Transmission
System, and shall work diligently and in good faith
to make any necessary design changes.
5.9 Other Interconnection Options.
5.9.1 Limited Operation.If any of Transmission
Provider's Interconnection Facilities or
Network Upgrades are not reasonably
expected to be completed prior to the
Commercial Operation Date of the Large
Generating Facility, Transmission Provider
shall, upon the request and at the expense
of Interconnection Customer, perform
operating studies on a timely basis to
determine the extent to which the Large
Generating Facility and Interconnection
Customer's Interconnection Facilities may
operate prior to the completion of
Transmission Provider's Interconnection
Facilities or Network Upgrades consistent
with Applicable Laws and Regulations,
Applicable Reliability Standards, Good
Utility Practice, and this LGIA.
Transmission Provider shall permit
Interconnection Customer to operate the
Large Generating Facility and
Interconnection Customer's Interconnection
Facilities in accordance with the results
of such studies.
5.9.2 Provisional Interconnection Service.Upon
the request of Interconnection Customer,
and prior to completion of requisite
Interconnection Facilities, Network
Upgrades, Distribution Upgrades, or System
Protection Facilities Transmission
Provider may execute a Provisional Large
Generator Interconnection Agreement or
Interconnection Customer may request the
filing of an unexecuted Provisional Large
Generator Interconnection Agreement with
the Interconnection Customer for limited
Interconnection Service at the discretion
of Transmission Provider based upon an
evaluation that will consider the results
of available studies. Transmission
Original Sheet No. 42
Provider shall determine, through
available studies or additional studies as
necessary, whether stability, short
circuit, thermal, and/or voltage issues
would arise if Interconnection Customer
interconnects without modifications to the
Generating Facility or Transmission
System. Transmission Provider shall
determine whether any Interconnection
Facilities, Network Upgrades, Distribution
Upgrades, or System Protection Facilities
that are necessary to meet the
requirements of NERC, or any applicable
Regional Entity for the interconnection of
a new, modified and/or expanded Generating
Facility are in place prior to the
commencement of Interconnection Service
from the Generating Facility. Where
available studies indicate that such,
Interconnection Facilities, Network
Upgrades, Distribution Upgrades, and/or
System Protection Facilities that are
required for the interconnection of a new,
modified and/or expanded Generating
Facility are not currently in place,
Transmission Provider will perform a
study, at the Interconnection Customer’s
expense, to confirm the facilities that
are required for Provisional
Interconnection Service. The maximum
permissible output of the Generating
Facility in the Provisional Large
Generator Interconnection Agreement shall
be studied and updated as system
conditions warrant (in the determination
of the Transmission Provider in its
discretion) but no less frequently than
annually. Interconnection Customer assumes
all risk and liabilities with respect to
changes between the Provisional Large
Generator Interconnection Agreement and
the Large Generator Interconnection
Agreement, including changes in output
limits and Interconnection Facilities,
Network Upgrades, Distribution Upgrades,
and/or System Protection Facilities cost
responsibilities.
Original Sheet No. 43
5.10 Interconnection Customer's Interconnection Facilities
('ICIF'). Interconnection Customer shall, at its
expense, design, procure, construct, own and install
the ICIF, as set forth in Appendix A, Interconnection
Facilities, Network Upgrades and Distribution
Upgrades.
5.10.1 Interconnection Customer's Interconnection
Facility Specifications. Interconnection
Customer shall submit initial
specifications for the ICIF, including
System Protection Facilities, to
Transmission Provider at least one hundred
eighty (180) Calendar Days prior to the
Initial Synchronization Date; and final
specifications for review and comment at
least ninety (90) Calendar Days prior to
the Initial Synchronization Date.
Transmission Provider shall review such
specifications to ensure that the ICIF are
compatible with the technical
specifications, operational control, and
safety requirements of Transmission
Provider and comment on such
specifications within thirty (30) Calendar
Days of Interconnection Customer's
submission. All specifications provided
hereunder shall be deemed confidential.
5.10.2 Transmission Provider's Review.
Transmission Provider's review of
Interconnection Customer's final
specifications shall not be construed as
confirming, endorsing, or providing a
warranty as to the design, fitness,
safety, durability or reliability of the
Large Generating Facility, or the ICIF.
Interconnection Customer shall make such
changes to the ICIF as may reasonably be
required by Transmission Provider, in
accordance with Good Utility Practice, to
ensure that the ICIF are compatible with
the technical specifications, operational
control, and safety requirements of
Transmission Provider.
Original Sheet No. 44
5.10.3 ICIF Construction. The ICIF shall be
designed and constructed in accordance
with Good Utility Practice. Within one
hundred twenty (120) Calendar Days after
the Commercial Operation Date, unless the
Parties agree on another mutually
acceptable deadline, Interconnection
Customer shall deliver to Transmission
Provider "as-built" drawings, information
and documents for the ICIF, such as: a
one-line diagram, a site plan showing the
Large Generating Facility and the ICIF,
plan and elevation drawings showing the
layout of the ICIF, a relay functional
diagram, relaying AC and DC schematic
wiring diagrams and relay settings for all
facilities associated with Interconnection
Customer's step-up transformers, the
facilities connecting the Large Generating
Facility to the step-up transformers and
the ICIF, and the impedances (determined
by factory tests) for the associated step-
up transformers and the Large Generating
Facility. The Interconnection Customer
shall provide Transmission Provider
specifications for the excitation system,
automatic voltage regulator, Large
Generating Facility control and protection
settings, transformer tap settings, and
communications, if applicable.
5.11 Transmission Provider's Interconnection Facilities
Construction. Transmission Provider's
Interconnection Facilities shall be designed and
constructed in accordance with Good Utility Practice.
Upon request, within one hundred twenty (120)
Calendar Days after the Commercial Operation Date,
unless the Parties agree on another mutually
acceptable deadline, Transmission Provider shall
deliver to Interconnection Customer the following
"as-built" drawings, information and documents for
Transmission Provider's Interconnection Facilities
[include appropriate drawings and relay diagrams].
Transmission Provider will obtain control of
Transmission Provider's Interconnection Facilities
Original Sheet No. 45
and Stand Alone Network Upgrades upon completion of
such facilities.
5.12 Access Rights. Upon reasonable notice and
supervision by a Party, and subject to any required
or necessary regulatory approvals, a Party ("Granting
Party") shall furnish at no cost to the other Party
("Access Party") any rights of use, licenses, rights
of way and easements with respect to lands owned or
controlled by the Granting Party, its agents (if
allowed under the applicable agency agreement), or
any Affiliate, that are necessary to enable the
Access Party to obtain ingress and egress to
construct, operate, maintain, repair, test (or
witness testing), inspect, replace or remove
facilities and equipment to: (i) interconnect the
Large Generating Facility with the Transmission
System; (ii) operate and maintain the Large
Generating Facility, the Interconnection Facilities
and the Transmission System; and (iii) disconnect or
remove the Access Party's facilities and equipment
upon termination of this LGIA. In exercising such
licenses, rights of way and easements, the Access
Party shall not unreasonably disrupt or interfere
with normal operation of the Granting Party's
business and shall adhere to the safety rules and
procedures established in advance, as may be changed
from time to time, by the Granting Party and provided
to the Access Party.
5.13 Lands of Other Property Owners. If any part of
Transmission Provider or Transmission Owner's
Interconnection Facilities and/or Network Upgrades is
to be installed on property owned by persons other
than Interconnection Customer or Transmission
Provider or Transmission Owner, Transmission Provider
or Transmission Owner shall at Interconnection
Customer's expense use efforts, similar in nature and
extent to those that it typically undertakes on its
own behalf or on behalf of its Affiliates, including
use of its eminent domain authority, and to the
extent consistent with state law, to procure from
such persons any rights of use, licenses, rights of
way and easements that are necessary to construct,
operate, maintain, test, inspect, replace or remove
Transmission Provider or Transmission Owner's
Original Sheet No. 46
Interconnection Facilities and/or Network Upgrades
upon such property.
5.14 Permits.Transmission Provider or Transmission Owner
and Interconnection Customer shall cooperate with
each other in good faith in obtaining all permits,
licenses and authorizations that are necessary to
accomplish the interconnection in compliance with
Applicable Laws and Regulations. With respect to
this paragraph, Transmission Provider or Transmission
Owner shall provide permitting assistance to
Interconnection Customer comparable to that provided
to Transmission Provider's own, or an Affiliate's
generation.
5.15 Early Construction of Base Case Facilities.
Interconnection Customer may request Transmission
Provider to construct, and Transmission Provider
shall construct, using Reasonable Efforts to
accommodate Interconnection Customer's In-Service
Date, all or any portion of any Network Upgrades
required for Interconnection Customer to be
interconnected to the Transmission System which are
included in the Base Case of the Facilities Study for
Interconnection Customer, and which also are required
to be constructed for another Interconnection
Customer, but where such construction is not
scheduled to be completed in time to achieve
Interconnection Customer's In-Service Date.
5.16 Suspension.Interconnection Customer reserves the
right, upon written notice to Transmission Provider,
to suspend
at any time all work by Transmission Provider
associated with the construction and installation of
Transmission Provider's Interconnection Facilities
and/or Network Upgrades required under this LGIA with
the condition that Transmission System shall be left
in a safe and reliable condition in accordance with
Good Utility Practice and Transmission Provider's
safety and reliability criteria. In such event,
Interconnection Customer shall be responsible for all
reasonable and necessary costs which Transmission
Provider (i) has incurred pursuant to this LGIA prior
to the suspension and (ii) incurs in suspending such
work, including any costs incurred to perform such
work as may be necessary to ensure the safety of
Original Sheet No. 47
persons and property and the integrity of the
Transmission System during such suspension and, if
applicable, any costs incurred in connection with the
cancellation or suspension of material, equipment and
labor contracts which Transmission Provider cannot
reasonably avoid; provided, however, that prior to
canceling or suspending any such material, equipment
or labor contract, Transmission Provider shall obtain
Interconnection Customer's authorization to do so.
Transmission Provider shall invoice Interconnection
Customer for such costs pursuant to Article 12 and
shall use due diligence to minimize its costs. In
the event Interconnection Customer suspends work by
Transmission Provider required under this LGIA
pursuant to this Article 5.16, and has not requested
Transmission Provider to recommence the work required
under this LGIA on or before the expiration of three
(3) years following commencement of such suspension,
this LGIA shall be deemed terminated. The three-year
period shall begin on the date the suspension is
requested, or the date of the written notice to
Transmission Provider, if no effective date is
specified.
5.17 Taxes.
5.17.1 Interconnection Customer Payments Not
Taxable.The Parties intend that all
payments or property transfers made by
Interconnection Customer to Transmission
Provider for the installation of
Transmission Provider's Interconnection
Facilities and the Network Upgrades shall
be non-taxable, either as contributions to
capital, or as an advance, in accordance
with the Internal Revenue Code and any
applicable state income tax laws and shall
not be taxable as contributions in aid of
construction or otherwise under the
Internal Revenue Code and any applicable
state income tax laws.
5.17.2 Representations and Covenants.In
accordance with IRS Notice 2001-82 and IRS
Notice 88-129, Interconnection Customer
represents and covenants that (i)
Original Sheet No. 48
ownership of the electricity generated at
the Large Generating Facility will pass to
another party prior to the transmission of
the electricity on the Transmission
System, (ii) for income tax purposes, the
amount of any payments and the cost of any
property transferred to Transmission
Provider for Transmission Provider's
Interconnection Facilities will be
capitalized by Interconnection Customer as
an intangible asset and recovered using
the straight-line method over a useful
life of twenty (20) years, and (iii) any
portion of Transmission Provider's
Interconnection Facilities that is a
"dual-use intertie," within the meaning of
IRS Notice 88-129, is reasonably expected
to carry only a de minimis amount of
electricity in the direction of the Large
Generating Facility. For this purpose,
"de minimis amount" means no more than 5
percent of the total power flows in both
directions, calculated in accordance with
the "5 percent test" set forth in IRS
Notice 88-129. This is not intended to be
an exclusive list of the relevant
conditions that must be met to conform to
IRS requirements for non-taxable
treatment.
At Transmission Provider's request,
Interconnection Customer shall provide
Transmission Provider with a report from
an independent engineer confirming its
representation in clause (iii), above.
Transmission Provider represents and
covenants that the cost of Transmission
Provider's Interconnection Facilities paid
for by Interconnection Customer will have
no net effect on the base upon which rates
are determined.
5.17.3 Indemnification for the Cost Consequences
of Current Tax Liability Imposed Upon the
Transmission Provider.Notwithstanding
Article 5.17.1, Interconnection Customer
shall protect, indemnify and hold harmless
Original Sheet No. 49
Transmission Provider from the cost
consequences of any current tax liability
imposed against Transmission Provider as
the result of payments or property
transfers made by Interconnection Customer
to Transmission Provider under this LGIA
for Interconnection Facilities, as well as
any interest and penalties, other than
interest and penalties attributable to any
delay caused by Transmission Provider.
Transmission Provider shall not include a
gross-up for the cost consequences of any
current tax liability in the amounts it
charges Interconnection Customer under
this LGIA unless (i) Transmission Provider
has determined, in good faith, that the
payments or property transfers made by
Interconnection Customer to Transmission
Provider should be reported as income
subject to taxation or (ii) any
Governmental Authority directs
Transmission Provider to report payments
or property as income subject to taxation;
provided, however, that Transmission
Provider may require Interconnection
Customer to provide security for
Interconnection Facilities, in a form
reasonably acceptable to Transmission
Provider (such as a parental guarantee or
a letter of credit), in an amount equal to
the cost consequences of any current tax
liability under this Article 5.17.
Interconnection Customer shall reimburse
Transmission Provider for such costs on a
fully grossed-up basis, in accordance with
Article 5.17.4, within thirty (30)
Calendar Days of receiving written
notification from Transmission Provider of
the amount due, including detail about how
the amount was calculated.
The indemnification obligation shall
terminate at the earlier of (1) the
expiration of the ten year testing period
and the applicable statute of limitation,
as it may be extended by Transmission
Original Sheet No. 50
Provider upon request of the IRS, to keep
these years open for audit or adjustment,
or (2) the occurrence of a subsequent
taxable event and the payment of any
related indemnification obligations as
contemplated by this Article 5.17.
5.17.4 Tax Gross-Up Amount.Interconnection
Customer's liability for the cost
consequences of any current tax liability
under this Article 5.17 shall be
calculated on a fully grossed-up basis.
Except as may otherwise be agreed to by
the parties, this means that
Interconnection Customer will pay
Transmission Provider, in addition to the
amount paid for the Interconnection
Facilities and Network Upgrades, an amount
equal to (1) the current taxes imposed on
Transmission Provider ("Current Taxes") on
the excess of (a) the gross income
realized by Transmission Provider as a
result of payments or property transfers
made by Interconnection Customer to
Transmission Provider under this LGIA
(without regard to any payments under this
Article 5.17) (the "Gross Income Amount")
over (b) the present value of future tax
deductions for depreciation that will be
available as a result of such payments or
property transfers (the "Present Value
Depreciation Amount"), plus (2) an
additional amount sufficient to permit
Transmission Provider to receive and
retain, after the payment of all Current
Taxes, an amount equal to the net amount
described in clause (1).
For this purpose, (i) Current Taxes shall
be computed based on Transmission
Provider's composite federal and state tax
rates at the time the payments or property
transfers are received and Transmission
Provider will be treated as being subject
to tax at the highest marginal rates in
effect at that time (the "Current Tax
Rate"), and (ii) the Present Value
Original Sheet No. 51
Depreciation Amount shall be computed by
discounting Transmission Provider's
anticipated tax depreciation deductions as
a result of such payments or property
transfers by Transmission Provider's
current weighted average cost of capital.
Thus, the formula for calculating
Interconnection Customer's liability to
Transmission Owner pursuant to this
Article 5.17.4 can be expressed as
follows: (Current Tax Rate x (Gross Income
Amount – Present Value of Tax
Depreciation))/(1-Current Tax Rate).
Interconnection Customer's estimated tax
liability in the event taxes are imposed
shall be stated in Appendix A,
Interconnection Facilities, Network
Upgrades and Distribution Upgrades.
5.17.5 Private Letter Ruling or Change or
Clarification of Law. At Interconnection
Customer's request and expense,
Transmission Provider shall file with the
IRS a request for a private letter ruling
as to whether any property transferred or
sums paid, or to be paid, by
Interconnection Customer to Transmission
Provider under this LGIA are subject to
federal income taxation. Interconnection
Customer will prepare the initial draft of
the request for a private letter ruling,
and will certify under penalties of
perjury that all facts represented in such
request are true and accurate to the best
of Interconnection Customer's knowledge.
Transmission Provider and Interconnection
Customer shall cooperate in good faith
with respect to the submission of such
request.
Transmission Provider shall keep
Interconnection Customer fully informed of
the status of such request for a private
letter ruling and shall execute either a
privacy act waiver or a limited power of
attorney, in a form acceptable to the IRS,
that authorizes Interconnection Customer
Original Sheet No. 52
to participate in all discussions with the
IRS regarding such request for a private
letter ruling. Transmission Provider
shall allow Interconnection Customer to
attend all meetings with IRS officials
about the request and shall permit
Interconnection Customer to prepare the
initial drafts of any follow-up letters in
connection with the request.
5.17.6 Subsequent Taxable Events. If, within 10
years from the date on which the relevant
Transmission Provider's Interconnection
Facilities are placed in service, (i)
Interconnection Customer Breaches the
covenants contained in Article 5.17.2,
(ii) a "disqualification event" occurs
within the meaning of IRS Notice 88-129,
or (iii) this LGIA terminates and
Transmission Provider retains ownership of
the Interconnection Facilities and Network
Upgrades, Interconnection Customer shall
pay a tax gross-up for the cost
consequences of any current tax liability
imposed on Transmission Provider,
calculated using the methodology described
in Article 5.17.4 and in accordance with
IRS Notice 90-60.
5.17.7 Contests. In the event any Governmental
Authority determines that Transmission
Provider's receipt of payments or property
constitutes income that is subject to
taxation, Transmission Provider shall
notify Interconnection Customer, in
writing, within thirty (30) Calendar Days
of receiving notification of such
determination by a Governmental Authority.
Upon the timely written request by
Interconnection Customer and at
Interconnection Customer's sole expense,
Transmission Provider may appeal, protest,
seek abatement of, or otherwise oppose
such determination. Upon Interconnection
Customer's written request and sole
expense, Transmission Provider may file a
claim for refund with respect to any taxes
Original Sheet No. 53
paid under this Article 5.17, whether or
not it has received such a determination.
Transmission Provider reserves the right
to make all decisions with regard to the
prosecution of such appeal, protest,
abatement or other contest, including the
selection of counsel and compromise or
settlement of the claim, but Transmission
Provider shall keep Interconnection
Customer informed, shall consider in good
faith suggestions from Interconnection
Customer about the conduct of the contest,
and shall reasonably permit
Interconnection Customer or an
Interconnection Customer representative to
attend contest proceedings.
Interconnection Customer shall pay to
Transmission Provider on a periodic basis,
as invoiced by Transmission Provider,
Transmission Provider's documented
reasonable costs of prosecuting such
appeal, protest, abatement or other
contest. At any time during the contest,
Transmission Provider may agree to a
settlement either with Interconnection
Customer's consent or after obtaining
written advice from nationally-recognized
tax counsel, selected by Transmission
Provider, but reasonably acceptable to
Interconnection Customer, that the
proposed settlement represents a
reasonable settlement given the hazards of
litigation. Interconnection Customer's
obligation shall be based on the amount of
the settlement agreed to by
Interconnection Customer, or if a higher
amount, so much of the settlement that is
supported by the written advice from
nationally-recognized tax counsel selected
under the terms of the preceding sentence.
The settlement amount shall be calculated
on a fully grossed-up basis to cover any
related cost consequences of the current
tax liability. Any settlement without
Interconnection Customer's consent or such
written advice will relieve
Original Sheet No. 54
Interconnection Customer from any
obligation to indemnify Transmission
Provider for the tax at issue in the
contest.
5.17.8 Refund.In the event that (a) a private
letter ruling is issued to Transmission
Provider which holds that any amount paid
or the value of any property transferred
by Interconnection Customer to
Transmission Provider under the terms of
this LGIA is not subject to federal income
taxation, (b) any legislative change or
administrative announcement, notice,
ruling or other determination makes it
reasonably clear to Transmission Provider
in good faith that any amount paid or the
value of any property transferred by
Interconnection Customer to Transmission
Provider under the terms of this LGIA is
not taxable to Transmission Provider, (c)
any abatement, appeal, protest, or other
contest results in a determination that
any payments or transfers made by
Interconnection Customer to Transmission
Provider are not subject to federal income
tax, or (d) if Transmission Provider
receives a refund from any taxing
authority for any overpayment of tax
attributable to any payment or property
transfer made by Interconnection Customer
to Transmission Provider pursuant to this
LGIA, Transmission Provider shall promptly
refund to Interconnection Customer the
following:
(i) any payment made by
Interconnection Customer under
this Article 5.17 for taxes that
is attributable to the amount
determined to be non-taxable,
together with interest thereon,
(ii) interest on any amounts paid by
Interconnection Customer to
Transmission Provider for such
taxes which Transmission Provider
Original Sheet No. 55
did not submit to the taxing
authority, calculated in
accordance with the methodology
set forth in FERC's regulations
at 18 CFR §35.19a(a)(2)(iii) from
the date payment was made by
Interconnection Customer to the
date Transmission Provider
refunds such payment to
Interconnection Customer, and
(iii) with respect to any such taxes
paid by Transmission Provider,
any refund or credit Transmission
Provider receives or to which it
may be entitled from any
Governmental Authority, interest
(or that portion thereof
attributable to the payment
described in clause (i), above)
owed to Transmission Provider for
such overpayment of taxes
(including any reduction in
interest otherwise payable by
Transmission Provider to any
Governmental Authority resulting
from an offset or credit);
provided, however, that
Transmission Provider will remit
such amount promptly to
Interconnection Customer only
after and to the extent that
Transmission Provider has
received a tax refund, credit or
offset from any Governmental
Authority for any applicable
overpayment of income tax related
to Transmission Provider's
Interconnection Facilities.
The intent of this provision is to leave
the Parties, to the extent practicable, in
the event that no taxes are due with
respect to any payment for Interconnection
Facilities and Network Upgrades hereunder,
in the same position they would have been
in had no such tax payments been made.
Original Sheet No. 56
5.17.9 Taxes Other Than Income Taxes. Upon the
timely request by Interconnection
Customer, and at Interconnection
Customer's sole expense, Transmission
Provider may appeal, protest, seek
abatement of, or otherwise contest any tax
(other than federal or state income tax)
asserted or assessed against Transmission
Provider for which Interconnection
Customer may be required to reimburse
Transmission Provider under the terms of
this LGIA. Interconnection Customer shall
pay to Transmission Provider on a periodic
basis, as invoiced by Transmission
Provider, Transmission Provider's
documented reasonable costs of prosecuting
such appeal, protest, abatement, or other
contest. Interconnection Customer and
Transmission Provider shall cooperate in
good faith with respect to any such
contest. Unless the payment of such taxes
is a prerequisite to an appeal or
abatement or cannot be deferred, no amount
shall be payable by Interconnection
Customer to Transmission Provider for such
taxes until they are assessed by a final,
non-appealable order by any court or
agency of competent jurisdiction. In the
event that a tax payment is withheld and
ultimately due and payable after appeal,
Interconnection Customer will be
responsible for all taxes, interest and
penalties, other than penalties
attributable to any delay caused by
Transmission Provider.
5.17.10 Transmission Owners Who Are Not
Transmission Providers.If Transmission
Provider is not the same entity as the
Transmission Owner, then (i) all
references in this Article 5.17 to
Transmission Provider shall be deemed also
to refer to and to include the
Transmission Owner, as appropriate, and
(ii) this LGIA shall not become effective
until such Transmission Owner shall have
Original Sheet No. 57
agreed in writing to assume all of the
duties and obligations of Transmission
Provider under this Article 5.17 of this
LGIA.
5.18 Tax Status. Each Party shall cooperate with the
other to maintain the other Party's tax status.
Nothing in this LGIA is intended to adversely affect
any Transmission Provider's tax exempt status with
respect to the issuance of bonds including, but not
limited to, Local Furnishing Bonds.
5.19 Modification.
5.19.1 General.Either Party may undertake
modifications to its facilities. If a
Party plans to undertake a modification
that reasonably may be expected to affect
the other Party's facilities, that Party
shall provide to the other Party
sufficient information regarding such
modification so that the other Party may
evaluate the potential impact of such
modification prior to commencement of the
work. Such information shall be deemed to
be confidential hereunder and shall
include information concerning the timing
of such modifications and whether such
modifications are expected to interrupt
the flow of electricity from the Large
Generating Facility. The Party desiring
to perform such work shall provide the
relevant drawings, plans, and
specifications to the other Party at least
ninety (90) Calendar Days in advance of
the commencement of the work or such
shorter period upon which the Parties may
agree, which agreement shall not
unreasonably be withheld, conditioned or
delayed.
In the case of Large Generating Facility
modifications that do not require
Interconnection Customer to submit an
Interconnection Request, Transmission
Provider shall provide, within thirty (30)
Calendar Days (or such other time as the
Original Sheet No. 58
Parties may agree), an estimate of any
additional modifications to the
Transmission System, Transmission
Provider's Interconnection Facilities or
Network Upgrades necessitated by such
Interconnection Customer modification and
a good faith estimate of the costs
thereof.
5.19.2 Standards.Any additions, modifications,
or replacements made to a Party's
facilities shall be designed, constructed
and operated in accordance with this LGIA
and Good Utility Practice.
5.19.3 Modification Costs.Interconnection
Customer shall not be directly assigned
for the costs of any additions,
modifications, or replacements that
Transmission Provider makes to
Transmission Provider's Interconnection
Facilities or the Transmission System to
facilitate the interconnection of a third
party to Transmission Provider's
Interconnection Facilities or the
Transmission System, or to provide
transmission service to a third party
under Transmission Provider's Tariff.
Interconnection Customer shall be
responsible for the costs of any
additions, modifications, or replacements
to Interconnection Customer's
Interconnection Facilities that may be
necessary to maintain or upgrade such
Interconnection Customer's Interconnection
Facilities consistent with Applicable Laws
and Regulations, Applicable Reliability
Standards or Good Utility Practice.
Article 6. Testing and Inspection
6.1 Pre-Commercial Operation Date Testing and
Modifications. Prior to the Commercial Operation
Date, Transmission Provider shall test Transmission
Provider's Interconnection Facilities and Network
Upgrades and Interconnection Customer shall test the
Original Sheet No. 59
Large Generating Facility and Interconnection
Customer's Interconnection Facilities to ensure their
safe and reliable operation. Similar testing may be
required after initial operation. Each Party shall
make any modifications to its facilities that are
found to be necessary as a result of such testing.
Interconnection Customer shall bear the cost of all
such testing and modifications. Interconnection
Customer shall generate test energy at the Large
Generating Facility only if it has arranged for the
delivery of such test energy.
6.2 Post-Commercial Operation Date Testing and
Modifications. Each Party shall at its own expense
perform routine inspection and testing of its
facilities and equipment in accordance with Good
Utility Practice as may be necessary to ensure the
continued interconnection of the Large Generating
Facility with the Transmission System in a safe and
reliable manner. Each Party shall have the right,
upon advance written notice, to require reasonable
additional testing of the other Party's facilities,
at the requesting Party's expense, as may be in
accordance with Good Utility Practice.
6.3 Right to Observe Testing. Each Party shall notify
the other Party in advance of its performance of
tests of its Interconnection Facilities. The other
Party has the right, at its own expense, to observe
such testing.
6.4 Right to Inspect. Each Party shall have the right,
but shall have no obligation to: (i) observe the
other Party's tests and/or inspection of any of its
System Protection Facilities and other protective
equipment, including Power System Stabilizers;
(ii) review the settings of the other Party's System
Protection Facilities and other protective equipment;
and (iii) review the other Party's maintenance
records relative to the Interconnection Facilities,
the System Protection Facilities and other protective
equipment. A Party may exercise these rights from
time to time as it deems necessary upon reasonable
notice to the other Party. The exercise or non-
exercise by a Party of any such rights shall not be
construed as an endorsement or confirmation of any
element or condition of the Interconnection
Original Sheet No. 60
Facilities or the System Protection Facilities or
other protective equipment or the operation thereof,
or as a warranty as to the fitness, safety,
desirability, or reliability of same. Any
information that a Party obtains through the exercise
of any of its rights under this Article 6.4 shall be
deemed to be Confidential Information and treated
pursuant to Article 22 of this LGIA.
Article 7. Metering
7.1 General.Each Party shall comply with the Applicable
Reliability Council requirements. Unless otherwise
agreed by the Parties, Transmission Provider shall
install Metering Equipment at the Point of
Interconnection prior to any operation of the Large
Generating Facility and shall own, operate, test and
maintain such Metering Equipment. Power flows to and
from the Large Generating Facility shall be measured
at or, at Transmission Provider's option, compensated
to, the Point of Interconnection. Transmission
Provider shall provide metering quantities, in analog
and/or digital form, to Interconnection Customer upon
request. Interconnection Customer shall bear all
reasonable documented costs associated with the
purchase, installation, operation, testing and
maintenance of the Metering Equipment.
7.2 Check Meters. Interconnection Customer, at its
option and expense, may install and operate, on its
premises and on its side of the Point of
Interconnection, one or more check meters to check
Transmission Provider's meters. Such check meters
shall be for check purposes only and shall not be
used for the measurement of power flows for purposes
of this LGIA, except as provided in Article 7.4
below. The check meters shall be subject at all
reasonable times to inspection and examination by
Transmission Provider or its designee. The
installation, operation and maintenance thereof shall
be performed entirely by Interconnection Customer in
accordance with Good Utility Practice.
7.3 Standards. Transmission Provider shall install,
calibrate, and test revenue quality Metering
Original Sheet No. 61
Equipment in accordance with applicable ANSI
standards.
7.4 Testing of Metering Equipment. Transmission Provider
shall inspect and test all Transmission Provider-
owned Metering Equipment upon installation and at
least once every two (2) years thereafter. If
requested to do so by Interconnection Customer,
Transmission Provider shall, at Interconnection
Customer's expense, inspect or test Metering
Equipment more frequently than every two (2) years.
Transmission Provider shall give reasonable notice of
the time when any inspection or test shall take
place, and Interconnection Customer may have
representatives present at the test or inspection.
If at any time Metering Equipment is found to be
inaccurate or defective, it shall be adjusted,
repaired or replaced at Interconnection Customer's
expense, in order to provide accurate metering,
unless the inaccuracy or defect is due to
Transmission Provider's failure to maintain, then
Transmission Provider shall pay. If Metering
Equipment fails to register, or if the measurement
made by Metering Equipment during a test varies by
more than two percent from the measurement made by
the standard meter used in the test, Transmission
Provider shall adjust the measurements by correcting
all measurements for the period during which Metering
Equipment was in error by using Interconnection
Customer's check meters, if installed. If no such
check meters are installed or if the period cannot be
reasonably ascertained, the adjustment shall be for
the period immediately preceding the test of the
Metering Equipment equal to one-half the time from
the date of the last previous test of the Metering
Equipment.
7.5 Metering Data. At Interconnection Customer's
expense, the metered data shall be telemetered to one
or more locations designated by Transmission Provider
and one or more locations designated by
Interconnection Customer. Such telemetered data
shall be used, under normal operating conditions, as
the official measurement of the amount of energy
delivered from the Large Generating Facility to the
Point of Interconnection.
Original Sheet No. 62
Article 8. Communications
8.1 Interconnection Customer Obligations.
Interconnection Customer shall maintain satisfactory
operating communications with Transmission Provider's
Transmission System dispatcher or representative
designated by Transmission Provider. Interconnection
Customer shall provide standard voice line, dedicated
voice line and facsimile communications at its Large
Generating Facility control room or central dispatch
facility through use of either the public telephone
system, or a voice communications system that does
not rely on the public telephone system.
Interconnection Customer shall also provide the
dedicated data circuit(s) necessary to provide
Interconnection Customer data to Transmission
Provider as set forth in Appendix D, Security
Arrangements Details. The data circuit(s) shall
extend from the Large Generating Facility to the
location(s) specified by Transmission Provider. Any
required maintenance of such communications equipment
shall be performed by Interconnection Customer.
Operational communications shall be activated and
maintained under, but not be limited to, the
following events: system paralleling or separation,
scheduled and unscheduled shutdowns, equipment
clearances, and hourly and daily load data.
8.2 Remote Terminal Unit. Prior to the Initial
Synchronization Date of the Large Generating
Facility, a Remote Terminal Unit, or equivalent data
collection and transfer equipment acceptable to the
Parties, shall be installed by Interconnection
Customer, or by Transmission Provider at
Interconnection Customer's expense, to gather
accumulated and instantaneous data to be telemetered
to the location(s) designated by Transmission
Provider through use of a dedicated point-to-point
data circuit(s) as indicated in Article 8.1. The
communication protocol for the data circuit(s) shall
be specified by Transmission Provider. Instantaneous
bi-directional analog real power and reactive power
flow information must be telemetered directly to the
location(s) specified by Transmission Provider.
Original Sheet No. 63
Each Party will promptly advise the other Party if it
detects or otherwise learns of any metering,
telemetry or communications equipment errors or
malfunctions that require the attention and/or
correction by the other Party. The Party owning such
equipment shall correct such error or malfunction as
soon as reasonably feasible.
8.3 No Annexation.Any and all equipment placed on the
premises of a Party shall be and remain the property
of the Party providing such equipment regardless of
the mode and manner of annexation or attachment to
real property, unless otherwise mutually agreed by
the Parties.
8.4 Provision of Data from a Variable Energy Resource.
The Interconnection Customer whose Generating
Facility is a Variable Energy Resource shall provide
meteorological and forced outage data to the
Transmission Provider to the extent necessary for the
Transmission Provider’s development and deployment of
power production forecasts for that class of Variable
Energy Resources. The Interconnection Customer with a
Variable Energy Resource having wind as the energy
source, at a minimum, will be required to provide the
Transmission Provider with site-specific
meteorological data including: temperature, wind
speed, wind direction, and atmospheric pressure. The
Interconnection Customer with a Variable Energy
Resource having solar as the energy source, at a
minimum, will be required to provide the Transmission
Provider with site-specific meteorological data
including: temperature, atmospheric pressure, and
irradiance. The Transmission Provider and
Interconnection Customer whose Generating
Facility is a Variable Energy Resource shall mutually
agree to any additional meteorological data that are
required for the development and deployment of a
power production forecast. The Interconnection
Customer whose Generating Facility is a Variable
Energy Resource also shall submit data to the
Transmission Provider regarding all forced outages to
the extent necessary for the Transmission Provider’s
development and deployment of power production
forecasts for that class of Variable Energy
Resources. The exact specifications of the
meteorological and forced outage data to be provided
Original Sheet No. 64
by the Interconnection Customer to the Transmission
Provider, including the frequency and timing of data
submittals, shall be made taking into account the
size and configuration of the Variable Energy
Resource, its characteristics, location, and its
importance in maintaining generation resource
adequacy and transmission system reliability in its
area. All requirements for meteorological and forced
outage data must be commensurate with the power
production forecasting employed by the Transmission
Provider. Such requirements for meteorological and
forced outage data are set forth in Appendix C,
Interconnection Details, of this LGIA, as they may
change from time to time.
Article 9. Operations
9.1 General.Each Party shall comply with the Applicable
Reliability Council requirements. Each Party shall
provide to the other Party all information that may
reasonably be required by the other Party to comply
with Applicable Laws and Regulations and Applicable
Reliability Standards.
9.2 Control Area Notification. At least three months
before Initial Synchronization Date, Interconnection
Customer shall notify Transmission Provider in
writing of the Control Area in which the Large
Generating Facility will be located. If
Interconnection Customer elects to locate the Large
Generating Facility in a Control Area other than the
Control Area in which the Large Generating Facility
is physically located, and if permitted to do so by
the relevant transmission tariffs, all necessary
arrangements, including but not limited to those set
forth in Article 7 and Article 8 of this LGIA, and
remote Control Area generator interchange agreements,
if applicable, and the appropriate measures under
such agreements, shall be executed and implemented
prior to the placement of the Large Generating
Facility in the other Control Area.
9.3 Transmission Provider Obligations. Transmission
Provider shall cause the Transmission System and
Transmission Provider's Interconnection Facilities to
be operated, maintained and controlled in a safe and
reliable manner and in accordance with this LGIA.
Original Sheet No. 65
Transmission Provider may provide operating
instructions to Interconnection Customer consistent
with this LGIA and Transmission Provider's operating
protocols and procedures as they may change from time
to time. Transmission Provider will consider changes
to its operating protocols and procedures proposed by
Interconnection Customer.
9.4 Interconnection Customer Obligations.
Interconnection Customer shall at its own expense
operate, maintain and control the Large Generating
Facility and Interconnection Customer's
Interconnection Facilities in a safe and reliable
manner and in accordance with this LGIA.
Interconnection Customer shall operate the Large
Generating Facility and Interconnection Customer's
Interconnection Facilities in accordance with all
applicable requirements of the Control Area of which
it is part, as such requirements are set forth in
Appendix C, Interconnection Details, of this LGIA.
Appendix C, Interconnection Details, will be modified
to reflect changes to the requirements as they may
change from time to time. Either Party may request
that the other Party provide copies of the
requirements set forth in Appendix C, Interconnection
Details, of this LGIA.
9.5 Start-Up and Synchronization.Consistent with the
Parties' mutually acceptable procedures,
Interconnection Customer is responsible for the
proper synchronization of the Large Generating
Facility to Transmission Provider's Transmission
System.
9.6 Reactive Power and Primary Frequency Response.
9.6.1 Power Factor Design Criteria.
Interconnection Customer shall design the
Large Generating Facility to maintain a
composite power delivery at continuous
rated power output at the Point of
Interconnection at a power factor within
the range of 0.95 leading to 0.95 lagging,
unless Transmission Provider has
established different requirements that
apply to all generators in the Control
Area on a comparable basis. The
Original Sheet No. 66
requirements of this paragraph shall not
apply to wind generators.
9.6.1.1 Synchronous Generation.
Interconnection Customer shall
design the Large Generating
Facility to maintain a composite
power deliver at continuous rated
power output at the Point of
Interconnection at a power factor
within the range of 0.95 leading
to 0.95 lagging, unless the
Transmission Provider has
established different
requirements that apply to all
synchronous generators in the
Control Area on a comparable
basis.
9.6.1.2 Non-Synchronous Generation.
Interconnection Customer shall
design the Large Generating
Facility to maintain composite
power delivery at continuous
rated power output at the high-
side of the generator
substation at a power factor
within the range of 0.95
leading to 0.95 lagging, unless
the Transmission Provider has
established a different power
factor range that applies to
all non-synchronous generators
in the Control Area on a
comparable basis. This power
factor range standard shall be
dynamic and can be met using,
for example, power electronics
designed to supply this level
of reactive capability (taking
into account any limitations
due to voltage level, real
power output, etc.) or fixed
and switched capacitors, or a
combination of the two. This
Original Sheet No. 67
requirement shall only apply to
newly interconnecting non-
synchronous generators that
have not yet executed a
Facilities Study Agreement as
of the effective date of the
Final Rule establishing this
requirement (Order No. 827).
9.6.2 Voltage Schedules.Once Interconnection
Customer has synchronized the Large
Generating Facility with the Transmission
System, Transmission Provider shall
require Interconnection Customer to
operate the Large Generating Facility to
produce or absorb reactive power within
the design limitations of the Large
Generating Facility set forth in Article
9.6.1 (Power Factor Design Criteria).
Transmission Provider's voltage schedules
shall treat all sources of reactive power
in the Control Area in an equitable and
not unduly discriminatory manner.
Transmission Provider shall exercise
Reasonable Efforts to provide
Interconnection Customer with such
schedules at least one (1) day in advance,
and may make changes to such schedules as
necessary to maintain the reliability of
the Transmission System. Interconnection
Customer shall operate the Large
Generating Facility to maintain the
specified output voltage or power factor
at the Point of Interconnection within the
design limitations of the Large Generating
Facility set forth in Article 9.6.1 (Power
Factor Design Criteria). If
Interconnection Customer is unable to
maintain the specified voltage or power
factor, it shall promptly notify the
System Operator.
9.6.2.1 Voltage Regulators. Whenever the
Large Generating Facility is
operated in parallel with the
Transmission System and voltage
regulators are capable of
Original Sheet No. 68
operation, Interconnection
Customer shall operate the Large
Generating Facility with its
voltage regulators in automatic
operation. If the Large
Generating Facility's voltage
regulators are not capable of
such automatic operation,
Interconnection Customer shall
immediately notify Transmission
Provider's system operator, or
its designated representative,
and ensure that such Large
Generating Facility's reactive
power production or absorption
(measured in MVARs) are within
the design capability of the
Large Generating Facility's
generating unit(s) and steady
state stability limits.
Interconnection Customer shall
not cause its Large Generating
Facility to disconnect
automatically or instantaneously
from the Transmission System or
trip any generating unit
comprising the Large Generating
Facility for an under or over
frequency condition unless the
abnormal frequency condition
persists for a time period beyond
the limits set forth in ANSI/IEEE
Standard C37.106, or such other
standard as applied to other
generators in the Control Area on
a comparable basis.
9.6.3 Payment for Reactive Power.Transmission
Provider is required to pay Interconnection
Customer for reactive power that
Interconnection Customer provides or absorbs
from the Large Generating Facility when
Transmission Provider requests
Interconnection Customer to operate its
Large Generating Facility outside the range
specified in Article 9.6.1, provided that if
Transmission Provider pays its own or
Original Sheet No. 69
affiliated generators for reactive power
service within the specified range, it must
also pay Interconnection Customer. Payments
shall be pursuant to Article 11.6 or such
other agreement to which the Parties have
otherwise agreed.
9.6.4 Primary Frequency Response. Interconnection
Customer shall ensure the primary frequency
response capability of its Large Generating
Facility by installing, maintaining, and
operating a functioning governor or
equivalent controls. The term “functioning
governor or equivalent controls” as used
herein shall mean the required hardware
and/or software that provides frequency
responsive real power control with the
ability to sense changes in system frequency
and autonomously adjust the Large Generating
Facility’s real power output in accordance
with the droop and deadband parameters and
in the direction needed to correct frequency
deviations. Interconnection Customer is
required to install a governor or equivalent
controls with the capability of operating:
(1) with a maximum 5 percent droop and
±0.036 Hz deadband; or (2) in accordance
with the relevant droop, deadband, and
timely and sustained response settings from
an approved NERC Reliability Standard
providing for equivalent or more stringent
parameters. The droop characteristic shall
be: (1) based on the nameplate capacity of
the Large Generating Facility, and shall be
linear in the range of frequencies between
59 to 61 Hz that are outside of the deadband
parameter; or (2) based an approved NERC
Reliability Standard providing for an
equivalent or more stringent parameter. The
deadband parameter shall be: the range of
frequencies above and below nominal (60 Hz)
in which the governor or equivalent controls
is not expected to adjust the Large
Generating Facility’s real power output in
response to frequency deviations. The
deadband shall be implemented: (1) without a
step to the droop curve, that is, once the
Original Sheet No. 70
frequency deviation exceeds the deadband
parameter, the expected change in the Large
Generating Facility’s real power output in
response to frequency deviations shall start
from zero and then increase (for under-
frequency deviations) or decrease (for over-
frequency deviations) linearly in proportion
to the magnitude of the frequency deviation;
or (2) in accordance with an approved NERC
Reliability Standard providing for an
equivalent or more stringent parameter.
Interconnection Customer shall notify
Transmission Provider that the primary
frequency response capability of the Large
Generating Facility has been tested and
confirmed during commissioning. Once
Interconnection Customer has synchronized
the Large Generating Facility with the
Transmission System, Interconnection
Customer shall operate the Large Generating
Facility consistent with the provisions
specified in Sections 9.6.4.1 and 9.6.4.2 of
this Agreement. The primary frequency
response requirements contained herein shall
apply to both synchronous and non-
synchronous Large Generating Facilities.
9.6.4.1 Governor or Equivalent Controls.
Whenever the Large Generating
Facility is operated in parallel
with the Transmission System,
Interconnection Customer shall
operate the Large Generating
Facility with its governor or
equivalent controls in service
and responsive to frequency.
Interconnection Customer shall:
(1) in coordination with
Transmission Provider and/or the
relevant balancing authority, set
the deadband parameter to: (1) a
maximum of ±0.036 Hz and set the
droop parameter to a maximum of 5
percent; or (2) implement the
relevant droop and deadband
settings from an approved NERC
Reliability Standard that
Original Sheet No. 71
provides for equivalent or more
stringent parameters.
Interconnection Customer shall be
required to provide the status
and settings of the governor or
equivalent controls to
Transmission Provider and/or the
relevant balancing authority upon
request. If Interconnection
Customer needs to operate the
Large Generating Facility with
its governor or equivalent
controls not in service,
Interconnection Customer shall
immediately notify Transmission
Provider and the relevant
balancing authority, and provide
both with the following
information: (1) the operating
status of the governor or
equivalent controls (i.e.,
whether it is currently out of
service or when it will be taken
out of service); (2) the reasons
for removing the governor or
equivalent controls from service;
and (3) a reasonable estimate of
when the governor or equivalent
controls will be returned to
service. Interconnection Customer
shall make Reasonable Efforts to
return its governor or equivalent
controls into service as soon as
practicable. Interconnection
Customer shall make Reasonable
Efforts to keep outages of the
Large Generating Facility’s
governor or equivalent controls
to a minimum whenever the Large
Generating Facility is operated
in parallel with the Transmission
System.
9.6.4.2 Timely and Sustained Response.
Interconnection Customer shall
ensure that the Large Generating
Facility’s real power response to
Original Sheet No. 72
sustained frequency deviations
outside of the deadband setting
is automatically provided and
shall begin immediately after
frequency deviates outside of the
deadband, and to the extent the
Large Generating Facility has
operating capability in the
direction needed to correct the
frequency deviation.
Interconnection Customer shall
not block or otherwise inhibit
the ability of the governor or
equivalent controls to respond
and shall ensure that the
response is not inhibited, except
under certain operational
constraints including, but not
limited to, ambient temperature
limitations, physical energy
limitations, outages of
mechanical equipment, or
regulatory requirements. The
Large Generating Facility shall
sustain the real power response
at least until system frequency
returns to a value within the
deadband setting of the governor
or equivalent controls. A
Commission-approved Reliability
Standard with equivalent or more
stringent requirements shall
supersede the above requirements.
9.6.4.3 Exemptions.Large Generating
Facilities that are regulated by
the United States Nuclear
Regulatory Commission shall be
exempt from Sections 9.6.4,
9.6.4.1, and 9.6.4.2 of this
Agreement. Large Generating
Facilities that are behind the
meter generation that is sized-
to-load (i.e., the thermal load
and the generation are near-
balanced in real-time operation
and the generation is primarily
Original Sheet No. 73
controlled to maintain the unique
thermal, chemical, or mechanical
output necessary for the
operating requirements of its
host facility) shall be required
to install primary frequency
response capability in accordance
with the droop and deadband
capability requirements specified
in Section 9.6.4, but shall be
otherwise exempt from the
operating requirements in
Sections 9.6.4, 9.6.4.1, 9.6.4.2,
and 9.6.4.4 of this Agreement.
9.6.4.4 Electric Storage Resources.
Interconnection Customer
interconnecting an electric
storage resource shall establish
an operating range in Appendix C
of its LGIA that specifies a
minimum state of charge and a
maximum state of charge between
which the electric storage
resource will be required to
provide primary frequency
response consistent with the
conditions set forth in Sections
9.6.4, 9.6.4.1, 9.6.4.2, and
9.6.4.3 of this Agreement.
Appendix C shall specify whether
the operating range is static or
dynamic, and shall consider (1)
the expected magnitude of
frequency deviations in the
interconnection; (2) the expected
duration that system frequency
will remain outside of the
deadband parameter in the
interconnection; (3) the expected
incidence of frequency deviations
outside of the deadband parameter
in the interconnection; (4) the
physical capabilities of the
electric storage resource; (5)
operational limitations of the
electric storage resource due to
Original Sheet No. 74
manufacturer specifications; and
(6) any other relevant factors
agreed to by Transmission
Provider and Interconnection
Customer, and in consultation
with the relevant transmission
owner or balancing authority as
appropriate. If the operating
range is dynamic, then Appendix C
must establish how frequently the
operating range will be
reevaluated and the factors that
may be considered during its
reevaluation.
Interconnection Customer’s
electric storage resource is
required to provide timely and
sustained primary frequency
response consistent with Section
9.6.4.2 of this Agreement when it
is online and dispatched to
inject electricity to the
Transmission System and/or
receive electricity from the
Transmission System. This
excludes circumstances when the
electric storage resource is not
dispatched to inject electricity
to the Transmission System and/or
dispatched to receive electricity
from the Transmission System. If
Interconnection Customer’s
electric storage resource is
charging at the time of a
frequency deviation outside of
its deadband parameter, it is to
increase (for over-frequency
deviations) or decrease (for
under-frequency deviations) the
rate at which it is charging in
accordance with its droop
parameter. Interconnection
Customer’s electric storage
resource is not required to
change from charging to
discharging, or vice versa,
Original Sheet No. 75
unless the response necessitated
by the droop and deadband
settings requires it to do so and
it is technically capable of
making such a transition.
9.7 Outages and Interruptions.
9.7.1 Outages.
9.7.1.1 Outage Authority and
Coordination. Each Party may in
accordance with Good Utility
Practice in coordination with the
other Party remove from service
any of its respective
Interconnection Facilities or
Network Upgrades that may impact
the other Party's facilities as
necessary to perform maintenance
or testing or to install or
replace equipment. Absent an
Emergency Condition, the Party
scheduling a removal of such
facility(ies) from service will
use Reasonable Efforts to
schedule such removal on a date
and time mutually acceptable to
the Parties. In all
circumstances, any Party planning
to remove such facility(ies) from
service shall use Reasonable
Efforts to minimize the effect on
the other Party of such removal.
9.7.1.2 Outage Schedules.Transmission
Provider shall post scheduled
outages of its transmission
facilities on the OASIS.
Interconnection Customer shall
submit its planned maintenance
schedules for the Large
Generating Facility to
Transmission Provider for a
minimum of a rolling twenty-four
month period. Interconnection
Customer shall update its planned
Original Sheet No. 76
maintenance schedules as
necessary. Transmission Provider
may request Interconnection
Customer to reschedule its
maintenance as necessary to
maintain the reliability of the
Transmission System; provided,
however, adequacy of generation
supply shall not be a criterion
in determining Transmission
System reliability. Transmission
Provider shall compensate
Interconnection Customer for any
additional direct costs that
Interconnection Customer incurs
as a result of having to
reschedule maintenance, including
any additional overtime, breaking
of maintenance contracts or other
costs above and beyond the cost
Interconnection Customer would
have incurred absent Transmission
Provider's request to reschedule
maintenance. Interconnection
Customer will not be eligible to
receive compensation, if during
the twelve (12) months prior to
the date of the scheduled
maintenance, Interconnection
Customer had modified its
schedule of maintenance
activities.
9.7.1.3 Outage Restoration. If an outage
on a Party's Interconnection
Facilities or Network Upgrades
adversely affects the other
Party's operations or facilities,
the Party that owns or controls
the facility that is out of
service shall use Reasonable
Efforts to promptly restore such
facility(ies) to a normal
operating condition consistent
with the nature of the outage.
The Party that owns or controls
the facility that is out of
Original Sheet No. 77
service shall provide the other
Party, to the extent such
information is known, information
on the nature of the Emergency
Condition, an estimated time of
restoration, and any corrective
actions required. Initial verbal
notice shall be followed up as
soon as practicable with written
notice explaining the nature of
the outage.
9.7.2 Interruption of Service. If required by
Good Utility Practice to do so,
Transmission Provider may require
Interconnection Customer to interrupt or
reduce deliveries of electricity if such
delivery of electricity could adversely
affect Transmission Provider's ability to
perform such activities as are necessary
to safely and reliably operate and
maintain the Transmission System. The
following provisions shall apply to any
interruption or reduction permitted under
this Article 9.7.2:
9.7.2.1 The interruption or reduction
shall continue only for so long
as reasonably necessary under
Good Utility Practice;
9.7.2.2 Any such interruption or
reduction shall be made on an
equitable, non-discriminatory
basis with respect to all
generating facilities directly
connected to the Transmission
System;
9.7.2.3 When the interruption or
reduction must be made under
circumstances which do not allow
for advance notice, Transmission
Provider shall notify
Interconnection Customer by
telephone as soon as practicable
of the reasons for the
Original Sheet No. 78
curtailment, interruption, or
reduction, and, if known, its
expected duration. Telephone
notification shall be followed by
written notification as soon as
practicable;
9.7.2.4 Except during the existence of an
Emergency Condition, when the
interruption or reduction can be
scheduled without advance notice,
Transmission Provider shall
notify Interconnection Customer
in advance regarding the timing
of such scheduling and further
notify Interconnection Customer
of the expected duration.
Transmission Provider shall
coordinate with Interconnection
Customer using Good Utility
Practice to schedule the
interruption or reduction during
periods of least impact to
Interconnection Customer and
Transmission Provider;
9.7.2.5 The Parties shall cooperate and
coordinate with each other to the
extent necessary in order to
restore the Large Generating
Facility, Interconnection
Facilities, and the Transmission
System to their normal operating
state, consistent with system
conditions and Good Utility
Practice.
9.7.3 Under-Frequency and Over Frequency
Conditions. The Transmission System is
designed to automatically activate a load-
shed program as required by the Applicable
Reliability Council in the event of an
under-frequency system disturbance.
Interconnection Customer shall implement
under-frequency and over-frequency relay
set points for the Large Generating
Facility as required by the Applicable
Original Sheet No. 79
Reliability Council to ensure "ride
through" capability of the Transmission
System. Large Generating Facility
response to frequency deviations of pre-
determined magnitudes, both under-
frequency and over-frequency deviations,
shall be studied and coordinated with
Transmission Provider in accordance with
Good Utility Practice. The term "ride
through" as used herein shall mean the
ability of a Generating Facility to stay
connected to and synchronized with the
Transmission System during system
disturbances within a range of under-
frequency and over-frequency conditions,
in accordance with Good Utility Practice.
9.7.4 System Protection and Other Control
Requirements.
9.7.4.1 System Protection Facilities.
Interconnection Customer shall,
at its expense, install, operate
and maintain System Protection
Facilities as a part of the Large
Generating Facility or
Interconnection Customer's
Interconnection Facilities.
Transmission Provider shall
install at Interconnection
Customer's expense any System
Protection Facilities that may be
required on Transmission
Provider's Interconnection
Facilities or the Transmission
System as a result of the
interconnection of the Large
Generating Facility and
Interconnection Customer's
Interconnection Facilities.
9.7.4.2 Each Party's protection
facilities shall be designed and
coordinated with other systems in
accordance with Good Utility
Practice.
Original Sheet No. 80
9.7.4.3 Each Party shall be responsible
for protection of its facilities
consistent with Good Utility
Practice.
9.7.4.4 Each Party's protective relay
design shall incorporate the
necessary test switches to
perform the tests required in
Article 6. The required test
switches will be placed such that
they allow operation of lockout
relays while preventing breaker
failure schemes from operating
and causing unnecessary breaker
operations and/or the tripping of
Interconnection Customer's units.
9.7.4.5 Each Party will test, operate and
maintain System Protection
Facilities in accordance with
Good Utility Practice.
9.7.4.6 Prior to the In-Service Date, and
again prior to the Commercial
Operation Date, each Party or its
agent shall perform a complete
calibration test and functional
trip test of the System
Protection Facilities. At
intervals suggested by Good
Utility Practice and following
any apparent malfunction of the
System Protection Facilities,
each Party shall perform both
calibration and functional trip
tests of its System Protection
Facilities. These tests do not
require the tripping of any in-
service generation unit. These
tests do, however, require that
all protective relays and lockout
contacts be activated.
Original Sheet No. 81
9.7.5 Requirements for Protection. In
compliance with Good Utility Practice, Interconnection
Customer shall provide, install, own, and maintain relays,
circuit breakers and all other devices necessary to remove
any fault contribution of the Large Generating Facility to
any short circuit occurring on the Transmission System not
otherwise isolated by Transmission Provider's equipment,
such that the removal of the fault contribution shall be
coordinated with the protective requirements of the
Transmission System. Such protective equipment shall
include, without limitation, a disconnecting device or
switch with load-interrupting capability located between
the Large Generating Facility and the Transmission System
at a site selected upon mutual agreement (not to be
unreasonably withheld, conditioned or delayed) of the
Parties. Interconnection Customer shall be responsible for
protection of the Large Generating Facility and
Interconnection Customer's other equipment from such
conditions as negative sequence currents, over- or under-
frequency, sudden load rejection, over- or under-voltage,
and generator loss-of-field. Interconnection Customer
shall be solely responsible to disconnect the Large
Generating Facility and Interconnection Customer's other
equipment if conditions on the Transmission System could
adversely affect the Large Generating Facility.
9.7.6 Power Quality. Neither Party's facilities
shall cause excessive voltage flicker nor
introduce excessive distortion to the
sinusoidal voltage or current waves as
defined by ANSI Standard C84.1-1989, in
accordance with IEEE Standard 519, or any
applicable superseding electric industry
standard. In the event of a conflict
between ANSI Standard C84.1-1989, or any
applicable superseding electric industry
standard, ANSI Standard C84.1-1989, or the
applicable superseding electric industry
standard, shall control.
9.8 Switching and Tagging Rules.Each Party shall
provide the other Party a copy of its switching and
tagging rules that are applicable to the other
Party's activities. Such switching and tagging rules
shall be developed on a non-discriminatory basis.
The Parties shall comply with applicable switching
and tagging rules, as amended from time to time, in
Original Sheet No. 82
obtaining clearances for work or for switching
operations on equipment.
9.9 Use of Interconnection Facilities by Third Parties.
9.9.1 Purpose of Interconnection Facilities.
Except as may be required by Applicable
Laws and Regulations, or as otherwise
agreed to among the Parties, the
Interconnection Facilities shall be
constructed for the sole purpose of
interconnecting the Large Generating
Facility to the Transmission System and
shall be used for no other purpose.
9.9.2 Third Party Users. If required by
Applicable Laws and Regulations or if the
Parties mutually agree, such agreement not
to be unreasonably withheld, to allow one
or more third parties to use Transmission
Provider's Interconnection Facilities, or
any part thereof, Interconnection Customer
will be entitled to compensation for the
capital expenses it incurred in connection
with the Interconnection Facilities based
upon the pro rata use of the
Interconnection Facilities by Transmission
Provider, all third party users, and
Interconnection Customer, in accordance
with Applicable Laws and Regulations or
upon some other mutually-agreed upon
methodology. In addition, cost
responsibility for ongoing costs,
including operation and maintenance costs
associated with the Interconnection
Facilities, will be allocated between
Interconnection Customer and any third
party users based upon the pro rata use of
the Interconnection Facilities by
Transmission Provider, all third party
users, and Interconnection Customer, in
accordance with Applicable Laws and
Regulations or upon some other mutually
agreed upon methodology. If the issue of
such compensation or allocation cannot be
resolved through such negotiations, it
shall be submitted to FERC for resolution.
Original Sheet No. 83
9.10 Disturbance Analysis Data Exchange. The Parties will
cooperate with one another in the analysis of
disturbances to either the Large Generating Facility
or Transmission Provider's Transmission System by
gathering and providing access to any information
relating to any disturbance, including information
from oscillography, protective relay targets, breaker
operations and sequence of events records, and any
disturbance information required by Good Utility
Practice.
Article 10. Maintenance
10.1 Transmission Provider Obligations.Transmission
Provider shall maintain the Transmission System and
Transmission Provider's Interconnection Facilities in
a safe and reliable manner and in accordance with
this LGIA.
10.2 Interconnection Customer Obligations.
Interconnection Customer shall maintain the Large
Generating Facility and Interconnection Customer's
Interconnection Facilities in a safe and reliable
manner and in accordance with this LGIA.
10.3 Coordination. The Parties shall confer regularly to
coordinate the planning, scheduling and performance
of preventive and corrective maintenance on the Large
Generating Facility and the Interconnection
Facilities.
10.4 Secondary Systems. Each Party shall cooperate with
the other in the inspection, maintenance, and testing
of control or power circuits that operate below 600
volts, AC or DC, including, but not limited to, any
hardware, control or protective devices, cables,
conductors, electric raceways, secondary equipment
panels, transducers, batteries, chargers, and voltage
and current transformers that directly affect the
operation of a Party's facilities and equipment which
may reasonably be expected to impact the other Party.
Each Party shall provide advance notice to the other
Party before undertaking any work on such circuits,
especially on electrical circuits involving circuit
Original Sheet No. 84
breaker trip and close contacts, current
transformers, or potential transformers.
10.5 Operating and Maintenance Expenses. Subject to the
provisions herein addressing the use of facilities by
others, and except for operations and maintenance
expenses associated with modifications made for
providing interconnection or transmission service to
a third party and such third party pays for such
expenses, Interconnection Customer shall be
responsible for all reasonable expenses including
overheads, associated with: (1) owning, operating,
maintaining, repairing, and replacing Interconnection
Customer's Interconnection Facilities; and (2)
operation, maintenance, repair and replacement of
Transmission Provider's Interconnection Facilities.
Article 11. Performance Obligation
11.1 Interconnection Customer Interconnection Facilities.
Interconnection Customer shall design, procure,
construct, install, own and/or control
Interconnection Customer Interconnection Facilities
described in Appendix A, Interconnection Facilities,
Network Upgrades and Distribution Upgrades, at its
sole expense.
11.2 Transmission Provider's Interconnection Facilities.
Transmission Provider or Transmission Owner shall
design, procure, construct, install, own and/or
control the Transmission Provider's Interconnection
Facilities described in Appendix A, Interconnection
Facilities, Network Upgrades and Distribution
Upgrades, at the sole expense of the Interconnection
Customer.
11.3 Network Upgrades and Distribution Upgrades.
Transmission Provider or Transmission Owner shall
design, procure, construct, install, and own the
Network Upgrades and Distribution Upgrades described
in Appendix A, Interconnection Facilities, Network
Upgrades and Distribution Upgrades. The
Interconnection Customer shall be responsible for all
costs related to Distribution Upgrades. Unless
Transmission Provider or Transmission Owner elects to
fund the capital for the Network Upgrades, they shall
Original Sheet No. 85
be solely funded by Interconnection Customer. In the
event that Transmission Provider must change the
voltage levels of a discrete portion of the
Transmission System to which the Interconnection
Customer is connected, Transmission Provider shall
give reasonable notice of such change and the
Interconnection Customer shall be solely responsible
for all costs related to upgrades or modifications to
Interconnection Customer’s Interconnection Facilities
resulting from Transmission Provider’s increase in
the voltage levels of the Transmission System, in
order to remain interconnected with the Transmission
System at the new operating voltage. To the extent
that the modifications necessary to upgrade
Interconnection Facilities qualify as Network
Upgrades, Transmission Provider shall be solely
responsible for the expense of such modifications or
upgrades.
11.4 Transmission Credits.
11.4.1 Repayment of Amounts Advanced for Network
Upgrades. Interconnection Customer shall
be entitled to a cash repayment, equal to
the total amount paid to Transmission
Provider and Affected System Operator, if
any, for the Network Upgrades, including
any tax gross-up or other tax-related
payments associated with Network Upgrades,
and not refunded to Interconnection
Customer pursuant to Article 5.17.8 or
otherwise, to be paid to Interconnection
Customer on a dollar-for-dollar basis for
the non-usage sensitive portion of
transmission charges, as payments are made
under Transmission Provider's Tariff and
Affected System's Tariff for transmission
services with respect to the Large
Generating Facility. Any repayment shall
include interest calculated in accordance
with the methodology set forth in FERC=s
regulations at 18 C.F.R. §
35.19a(a)(2)(iii) from the date of any
payment for Network Upgrades through the
date on which the Interconnection Customer
receives a repayment of such payment
pursuant to this subparagraph.
Original Sheet No. 86
Interconnection Customer may assign such
repayment rights to any person.
Notwithstanding the foregoing,
Interconnection Customer, Transmission
Provider, and Affected System Operator may
adopt any alternative payment schedule
that is mutually agreeable so long as
Transmission Provider and Affected System
Operator take one of the following actions
no later than five years from the
Commercial Operation Date: (1) return to
Interconnection Customer any amounts
advanced for Network Upgrades not
previously repaid, or (2) declare in
writing that Transmission Provider or
Affected System Operator will continue to
provide payments to Interconnection
Customer on a dollar-for-dollar basis for
the non-usage sensitive portion of
transmission charges, or develop an
alternative schedule that is mutually
agreeable and provides for the return of
all amounts advanced for Network Upgrades
not previously repaid; however, full
reimbursement shall not extend beyond
twenty (20) years from the Commercial
Operation Date.
If the Large Generating Facility fails to
achieve commercial operation, but it or
another Generating Facility is later
constructed and makes use of the Network
Upgrades, Transmission Provider and
Affected System Operator shall at that
time reimburse Interconnection Customer
for the amounts advanced for the Network
Upgrades. Before any such reimbursement
can occur, the Interconnection Customer,
or the entity that ultimately constructs
the Generating Facility, if different, is
responsible for identifying the entity to
which reimbursement must be made.
11.4.2 Special Provisions for Affected Systems.
Unless Transmission Provider provides,
under the LGIA, for the repayment of
Original Sheet No. 87
amounts advanced to Affected System
Operator for Network Upgrades,
Interconnection Customer and Affected
System Operator shall enter into an
agreement that provides for such
repayment. The agreement shall specify
the terms governing payments to be made by
Interconnection Customer to the Affected
System Operator as well as the repayment
by the Affected System Operator.
11.4.3 Notwithstanding any other provision of
this LGIA, nothing herein shall be
construed as relinquishing or foreclosing
any rights, including but not limited to
firm transmission rights, capacity rights,
transmission congestion rights, or
transmission credits, that Interconnection
Customer, shall be entitled to, now or in
the future under any other agreement or
tariff as a result of, or otherwise
associated with, the transmission
capacity, if any, created by the Network
Upgrades, including the right to obtain
cash reimbursements or transmission
credits for transmission service that is
not associated with the Large Generating
Facility.
11.5 Provision of Security. At least thirty (30) Calendar
Days prior to the commencement of the first of the
following to occur: design, procurement,
installation, or construction of a discrete portion
of a Transmission Provider's Interconnection
Facilities, Network Upgrades, or Distribution
Upgrades, Interconnection Customer shall provide
Transmission Provider, at Interconnection Customer's
option, a guarantee, a surety bond, letter of credit
or other form of security that is reasonably
acceptable to Transmission Provider and is consistent
with the Uniform Commercial Code of the jurisdiction
identified in Article 14.2.1. Such security for
payment shall be in an amount sufficient to cover the
costs for constructing, designing, procuring, and
installing the applicable portion of Transmission
Provider's Interconnection Facilities, Network
Upgrades, or Distribution Upgrades and shall be
Original Sheet No. 88
reduced on a dollar-for-dollar basis for payments
made to Transmission Provider for these purposes.
In addition:
11.5.1 The guarantee must be made by an entity
that meets the creditworthiness
requirements of Transmission Provider, and
contain terms and conditions that
guarantee payment of any amount that may
be due from Interconnection Customer, up
to an agreed-to maximum amount.
11.5.2 The letter of credit must be issued by a
financial institution reasonably
acceptable to Transmission Provider and
must indicate that it would only expire
upon final payment made to Transmission
Provider to cover all relevant costs for
designing, procuring, installing, and
constructing the applicable portion of
Interconnection Facilities, Network
Upgrades, or Distribution Upgrades for
which the letter of credit was provided.
11.5.3 The surety bond must be issued by an
insurer reasonably acceptable to
Transmission Provider and must indicate
that it would only expire upon final
payment made to Transmission Provider to
cover all relevant costs for designing,
procuring, installing, and constructing
the applicable portion of Interconnection
Facilities, Network Upgrades, or
Distribution Upgrades for which the surety
bond was provided.
11.6 Interconnection Customer Compensation. If
Transmission Provider requests or directs
Interconnection Customer to provide a service
pursuant to Articles 9.6.3 (Payment for Reactive
Power), or 13.5.1 of this LGIA, Transmission Provider
shall compensate Interconnection Customer in
accordance with Interconnection Customer's applicable
rate schedule then in effect unless the provision of
such service(s) is subject to an RTO or ISO FERC-
approved rate schedule. Interconnection Customer
Original Sheet No. 89
shall serve Transmission Provider or RTO or ISO with
any filing of a proposed rate schedule at the time of
such filing with FERC. To the extent that no rate
schedule is in effect at the time the Interconnection
Customer is required to provide or absorb any
Reactive Power under this LGIA, Transmission Provider
agrees to compensate Interconnection Customer in such
amount as would have been due Interconnection
Customer had the rate schedule been in effect at the
time service commenced; provided, however, that such
rate schedule must be filed at FERC or other
appropriate Governmental Authority within sixty (60)
Calendar Days of the commencement of service.
11.6.1 Interconnection Customer Compensation for
Actions During Emergency Condition.
Transmission Provider or RTO or ISO shall
compensate Interconnection Customer for
its provision of real and reactive power
and other Emergency Condition services
that Interconnection Customer provides to
support the Transmission System during an
Emergency Condition in accordance with
Article 11.6.
Article 12. Invoice
12.1 General.Each Party shall submit to the other Party,
on a monthly basis, invoices of amounts due for the
preceding month. Each invoice shall state the month
to which the invoice applies and fully describe the
services and equipment provided. The Parties may
discharge mutual debts and payment obligations due
and owing to each other on the same date through
netting, in which case all amounts a Party owes to
the other Party under this LGIA, including interest
payments or credits, shall be netted so that only the
net amount remaining due shall be paid by the owing
Party.
12.2 Final Invoice. Within six months after completion of
the construction of Transmission Provider's
Interconnection Facilities and the Network Upgrades,
Transmission Provider shall provide an invoice of the
final cost of the construction of Transmission
Provider's Interconnection Facilities and the Network
Upgrades and shall set forth such costs in sufficient
Original Sheet No. 90
detail to enable Interconnection Customer to compare
the actual costs with the estimates and to ascertain
deviations, if any, from the cost estimates.
Transmission Provider shall refund to Interconnection
Customer any amount by which the actual payment by
Interconnection Customer for estimated costs exceeds
the actual costs of construction within thirty (30)
Calendar Days of the issuance of such final
construction invoice.
12.3 Payment. Invoices shall be rendered to the paying
Party at the address specified in Appendix F. The
Party receiving the invoice shall pay the invoice
within thirty (30) Calendar Days of receipt. All
payments shall be made in immediately available funds
payable to the other Party, or by wire transfer to a
bank named and account designated by the invoicing
Party. Payment of invoices by either Party will not
constitute a waiver of any rights or claims either
Party may have under this LGIA.
12.4 Disputes. In the event of a billing dispute between
Transmission Provider and Interconnection Customer,
Transmission Provider shall continue to provide
Interconnection Service under this LGIA as long as
Interconnection Customer: (i) continues to make all
payments not in dispute; and (ii) pays to
Transmission Provider or into an independent escrow
account the portion of the invoice in dispute,
pending resolution of such dispute. If
Interconnection Customer fails to meet these two
requirements for continuation of service, then
Transmission Provider may provide notice to
Interconnection Customer of a Default pursuant to
Article 17. Within thirty (30) Calendar Days after
the resolution of the dispute, the Party that owes
money to the other Party shall pay the amount due
with interest calculated in accord with the
methodology set forth in FERC's regulations at 18 CFR
§ 35.19a(a)(2)(iii).
Article 13. Emergencies
13.1 Definition. "Emergency Condition" shall mean a
condition or situation: (i) that in the judgment of
the Party making the claim is imminently likely to
endanger life or property; or (ii) that, in the case
Original Sheet No. 91
of Transmission Provider, is imminently likely (as
determined in a non-discriminatory manner) to cause a
material adverse effect on the security of, or damage
to the Transmission System, Transmission Provider's
Interconnection Facilities or the Transmission
Systems of others to which the Transmission System is
directly connected; or (iii) that, in the case of
Interconnection Customer, is imminently likely (as
determined in a non-discriminatory manner) to cause a
material adverse effect on the security of, or damage
to,the Large Generating Facility or Interconnection
Customer's Interconnection Facilities' System
restoration and black start shall be considered
Emergency Conditions; provided, that Interconnection
Customer is not obligated by this LGIA to possess
black start capability.
13.2 Obligations. Each Party shall comply with the
Emergency Condition procedures of the applicable
ISO/RTO, NERC, the Applicable Reliability Council,
Applicable Laws and Regulations, and any emergency
procedures agreed to by the Joint Operating
Committee.
13.3 Notice.Transmission Provider shall notify
Interconnection Customer promptly when it becomes
aware of an Emergency Condition that affects
Transmission Provider's Interconnection Facilities or
the Transmission System that may reasonably be
expected to affect Interconnection Customer's
operation of the Large Generating Facility or
Interconnection Customer's Interconnection
Facilities. Interconnection Customer shall notify
Transmission Provider promptly when it becomes aware
of an Emergency Condition that affects the Large
Generating Facility or Interconnection Customer's
Interconnection Facilities that may reasonably be
expected to affect the Transmission System or
Transmission Provider's Interconnection Facilities.
To the extent information is known, the notification
shall describe the Emergency Condition, the extent of
the damage or deficiency, the expected effect on the
operation of Interconnection Customer's or
Transmission Provider's facilities and operations,
its anticipated duration and the corrective action
taken and/or to be taken. The initial notice shall
Original Sheet No. 92
be followed as soon as practicable with written
notice.
13.4 Immediate Action. Unless, in Interconnection
Customer's reasonable judgment, immediate action is
required, Interconnection Customer shall obtain the
consent of Transmission Provider, such consent to not
be unreasonably withheld, prior to performing any
manual switching operations at the Large Generating
Facility or Interconnection Customer's
Interconnection Facilities in response to an
Emergency Condition either declared by Transmission
Provider or otherwise regarding the Transmission
System.
13.5 Transmission Provider Authority.
13.5.1 General. Transmission Provider may take
whatever actions or inactions with regard to
the Transmission System or Transmission
Provider's Interconnection Facilities it
deems necessary during an Emergency
Condition in order to (i) preserve public
health and safety, (ii) preserve the
reliability of the Transmission System or
Transmission Provider's Interconnection
Facilities, (iii) limit or prevent damage,
and (iv) expedite restoration of service.
Transmission Provider shall use Reasonable
Efforts to minimize the effect of such
actions or inactions on the Large Generating
Facility or Interconnection Customer's
Interconnection Facilities. Transmission
Provider may, on the basis of technical
considerations, require the Large Generating
Facility to mitigate an Emergency Condition
by taking actions necessary and limited in
scope to remedy the Emergency Condition,
including, but not limited to, directing
Interconnection Customer to shut-down,
start-up, increase or decrease the real or
reactive power output of the Large
Generating Facility; implementing a
Original Sheet No. 93
reduction or disconnection pursuant to
Article 13.5.2; directing Interconnection
Customer to assist with blackstart (if
available) or restoration efforts; or
altering the outage schedules of the Large
Generating Facility and Interconnection
Customer's Interconnection Facilities.
Interconnection Customer shall comply with
all of Transmission Provider's operating
instructions concerning Large Generating
Facility real power and reactive power
output within the manufacturer's design
limitations of the Large Generating
Facility's equipment that is in service and
physically available for operation at the
time, in compliance with Applicable Laws and
Regulations.
13.5.2 Reduction and Disconnection. Transmission
Provider may reduce Interconnection Service
or disconnect the Large Generating Facility
or Interconnection Customer's
Interconnection Facilities, when such,
reduction or disconnection is necessary
under Good Utility Practice due to Emergency
Conditions. These rights are separate and
distinct from any right of curtailment of
Transmission Provider pursuant to
Transmission Provider's Tariff. When
Transmission Provider can schedule the
reduction or disconnection in advance,
Transmission Provider shall notify
Interconnection Customer of the reasons,
timing and expected duration of the
reduction or disconnection. Transmission
Provider shall coordinate with
Interconnection Customer using Good Utility
Practice to schedule the reduction or
disconnection during periods of least impact
to Interconnection Customer and Transmission
Provider. Any reduction or disconnection
shall continue only for so long as
reasonably necessary under Good Utility
Practice. The Parties shall cooperate with
each other to restore the Large Generating
Facility, the Interconnection Facilities,
and the Transmission System to their normal
Original Sheet No. 94
operating state as soon as practicable
consistent with Good Utility Practice.
13.6 Interconnection Customer Authority. Consistent with
Good Utility Practice and the LGIA and the LGIP,
Interconnection Customer may take actions or
inactions with regard to the Large Generating
Facility or Interconnection Customer's
Interconnection Facilities during an Emergency
Condition in order to (i) preserve public health and
safety, (ii) preserve the reliability of the Large
Generating Facility or Interconnection Customer's
Interconnection Facilities, (iii) limit or prevent
damage, and (iv) expedite restoration of service.
Interconnection Customer shall use Reasonable Efforts
to minimize the effect of such actions or inactions
on the Transmission System and Transmission
Provider's
Interconnection Facilities. Transmission Provider
shall use Reasonable Efforts to assist
Interconnection Customer in such actions.
13.7 Limited Liability. Except as otherwise provided in
Article 11.6.1 of this LGIA, neither Party shall be
liable to the other for any action it takes in
responding to an Emergency Condition so long as such
action is made in good faith and is consistent with
Good Utility Practice.
Article 14. Regulatory Requirements and Governing Law
14.1 Regulatory Requirements. Each Party's obligations
under this LGIA shall be subject to its receipt of
any required approval or certificate from one or more
Governmental Authorities in the form and substance
satisfactory to the applying Party, or the Party
making any required filings with, or providing notice
to, such Governmental Authorities, and the expiration
of any time period associated therewith. Each Party
shall in good faith seek and use its Reasonable
Efforts to obtain such other approvals. Nothing in
this LGIA shall require Interconnection Customer to
take any action that could result in its inability to
obtain, or its loss of, status or exemption under the
Federal Power Act, the Public Utility Holding Company
Original Sheet No. 95
Act of 1935, as amended, or the Public Utility
Regulatory Policies Act of 1978.
14.2 Governing Law.
14.2.1 The validity, interpretation and
performance of this LGIA and each of its
provisions shall be governed by the laws
of the state where the Point of
Interconnection is located, without regard
to its conflicts of law principles.
14.2.2 This LGIA is subject to all Applicable
Laws and Regulations.
14.2.3 Each Party expressly reserves the right to
seek changes in, appeal, or otherwise
contest any laws, orders, rules, or
regulations of a Governmental Authority.
Article 15. Notices.
15.1 General. Unless otherwise provided in this LGIA, any
notice, demand or request required or permitted to be
given by either Party to the other and any instrument
required or permitted to be tendered or delivered by
either Party in writing to the other shall be
effective when delivered and may be so given,
tendered or delivered, by recognized national
courier, or by depositing the same with the United
States Postal Service with postage prepaid, for
delivery by certified or registered mail, addressed
to the Party, or personally delivered to the Party,
at the address set out in Appendix F, Addresses for
Delivery of Notices and Billings.
Either Party may change the notice information in
this LGIA by giving five (5) Business Days written
notice prior to the effective date of the change.
15.2 Billings and Payments. Billings and payments shall
be sent to the addresses set out in Appendix F.
15.3 Alternative Forms of Notice. Any notice or request
required or permitted to be given by a Party to the
other and not required by this Agreement to be given
Original Sheet No. 96
in writing may be so given by telephone, facsimile or
email to the telephone numbers and email addresses
set out in Appendix F.
15.4 Operations and Maintenance Notice. Each Party shall
notify the other Party in writing of the identity of
the person(s) that it designates as the point(s) of
contact with respect to the implementation of
Articles 9 and 10.
Article 16. Force Majeure
16.1 Force Majeure.
16.1.1 Economic hardship is not considered a
Force Majeure event.
16.1.2 Neither Party shall be considered to be in
Default with respect to any obligation
hereunder, (including obligations under
Article 4), other than the obligation to
pay money when due, if prevented from
fulfilling such obligation by Force
Majeure. A Party unable to fulfill any
obligation hereunder (other than an
obligation to pay money when due) by
reason of Force Majeure shall give notice
and the full particulars of such Force
Majeure to the other Party in writing or
by telephone as soon as reasonably
possible after the occurrence of the cause
relied upon. Telephone notices given
pursuant to this article shall be
confirmed in writing as soon as reasonably
possible and shall specifically state full
particulars of the Force Majeure, the time
and date when the Force Majeure occurred
and when the Force Majeure is reasonably
expected to cease. The Party affected
shall exercise due diligence to remove
such disability with reasonable dispatch,
but shall not be required to accede or
agree to any provision not satisfactory to
it in order to settle and terminate a
strike or other labor disturbance.
Original Sheet No. 97
Article 17. Default
17.1 Default
17.1.1 General.No Default shall exist where
such failure to discharge an obligation
(other than the payment of money) is the
result of Force Majeure as defined in this
LGIA or the result of an act of omission
of the other Party. Upon a Breach, the
non-breaching Party shall give written
notice of such Breach to the breaching
Party. Except as provided in Article
17.1.2, the breaching Party shall have
thirty (30) Calendar Days from receipt of
the Default notice within which to cure
such Breach; provided however, if such
Breach is not capable of cure within
thirty (30) Calendar Days, the breaching
Party shall commence such cure within
thirty (30) Calendar Days after notice and
continuously and diligently complete such
cure within ninety (90) Calendar Days from
receipt of the Default notice; and, if
cured within such time, the Breach
specified in such notice shall cease to
exist.
17.1.2 Right to Terminate. If a Breach is not
cured as provided in this article, or if a
Breach is not capable of being cured
within the period provided for herein, the
non-breaching Party shall have the right
to declare a Default and terminate this
LGIA by written notice at any time until
cure occurs, and be relieved of any
further obligation hereunder and, whether
or not that Party terminates this LGIA, to
recover from the breaching Party all
amounts due hereunder, plus all other
damages and remedies to which it is
entitled at law or in equity. The
provisions of this article will survive
termination of this LGIA.
Original Sheet No. 98
Article 18. Indemnity, Consequential Damages and
Insurance
18.1 Indemnity. The Parties shall at all times indemnify,
defend, and hold 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 LGIA on
behalf of the Indemnifying Party, except in cases of
gross negligence or intentional wrongdoing by the
Indemnified Party.
18.1.1 Indemnified Person. If an Indemnified
Person is entitled to indemnification
under this Article 18 as a result of a
claim by a third party, and the
indemnifying Party fails, after notice and
reasonable opportunity to proceed under
Article 18.1, to assume the defense of
such claim, such Indemnified Person may at
the expense of the indemnifying Party
contest, settle or consent to the entry of
any judgment with respect to, or pay in
full, such claim.
18.1.2 Indemnifying Party. If an Indemnifying
Party is obligated to indemnify and hold
any Indemnified Person harmless under this
Article 18, the amount owing to the
Indemnified Person shall be the amount of
such Indemnified Person's actual Loss, net
of any insurance or other recovery.
18.1.3 Indemnity Procedures. Promptly after
receipt by an Indemnified Person of any
claim or notice of the commencement of any
action or administrative or legal
proceeding or investigation as to which
the indemnity provided for in Article 18.1
may apply, the Indemnified Person shall
notify the Indemnifying Party of such
fact. Any failure of or delay in such
notification shall not affect a Party's
Original Sheet No. 99
indemnification obligation unless such
failure or delay is materially prejudicial
to the indemnifying Party.
The Indemnifying Party shall have the
right to assume the defense thereof with
counsel designated by such Indemnifying
Party and reasonably satisfactory to the
Indemnified Person. If the defendants in
any such action include one or more
Indemnified Persons and the Indemnifying
Party and if the Indemnified Person
reasonably concludes that there may be
legal defenses available to it and/or
other Indemnified Persons which are
different from or additional to those
available to the Indemnifying Party, the
Indemnified Person shall have the right to
select separate counsel to assert such
legal defenses and to otherwise
participate in the defense of such action
on its own behalf. In such instances, the
Indemnifying Party shall only be required
to pay the fees and expenses of one
additional attorney to represent an
Indemnified Person or Indemnified Persons
having such differing or additional legal
defenses.
The Indemnified Person shall be entitled,
at its expense, to participate in any such
action, suit or proceeding, the defense of
which has been assumed by the Indemnifying
Party. Notwithstanding the foregoing, the
Indemnifying Party (i) shall not be
entitled to assume and control the defense
of any such action, suit or proceedings if
and to the extent that, in the opinion of
the Indemnified Person and its counsel,
such action, suit or proceeding involves
the potential imposition of criminal
liability on the Indemnified Person, or
there exists a conflict or adversity of
interest between the Indemnified Person
and the Indemnifying Party, in such event
the Indemnifying Party shall pay the
reasonable expenses of the Indemnified
Original Sheet No. 100
Person, and (ii) shall not settle or
consent to the entry of any judgment in
any action, suit or proceeding without the
consent of the Indemnified Person, which
shall not be reasonably withheld,
conditioned or delayed.
18.2 Consequential Damages. Other than the Liquidated
Damages heretofore described, in no event shall
either Party be liable under any provision of this
LGIA for any losses, damages, costs or expenses for
any special, indirect, incidental, consequential, or
punitive damages, including but not limited to loss
of profit or revenue, loss of the use of equipment,
cost of capital, cost of temporary equipment or
services, whether based in whole or in part in
contract, in tort, including negligence, strict
liability, or any other theory of liability;
provided, however, that damages for which a Party may
be liable to the other Party under another agreement
will not be considered to be special, indirect,
incidental, or consequential damages hereunder.
18.3 Insurance. Each party shall, at its own expense,
maintain in force throughout the period of this LGIA,
and until released by the other Party, the following
minimum insurance coverages, with insurers authorized
to do business in the state where the Point of
Interconnection is located:
18.3.1 Employers' Liability and Workers'
Compensation Insurance providing statutory
benefits in accordance with the laws and
regulations of the state in which the
Point of Interconnection is located.
18.3.2 Commercial General Liability Insurance
including premises and operations,
personal injury, broad form property
damage, broad form blanket contractual
liability coverage (including coverage for
the contractual indemnification) products
and completed operations coverage,
coverage for explosion, collapse and
underground hazards, independent
contractors coverage, coverage for
pollution to the extent normally available
Original Sheet No. 101
and punitive damages to the extent
normally available and a cross liability
endorsement, with minimum limits of One
Million Dollars ($1,000,000) per
occurrence/One Million Dollars
($1,000,000) aggregate combined single
limit for personal injury, bodily injury,
including death and property damage.
18.3.3 Comprehensive Automobile Liability
Insurance for coverage of owned and non-
owned and hired vehicles, trailers or
semi-trailers designed for travel on
public roads, with a minimum, combined
single limit of One Million Dollars
($1,000,000) per occurrence for bodily
injury, including death, and property
damage.
18.3.4 Excess Public Liability Insurance over and
above the Employers' Liability Commercial
General Liability and Comprehensive
Automobile Liability Insurance coverage,
with a minimum combined single limit of
Twenty Million Dollars ($20,000,000) per
occurrence/Twenty Million Dollars
($20,000,000) aggregate.
18.3.5 The Commercial General Liability
Insurance, Comprehensive Automobile
Insurance and Excess Public Liability
Insurance policies shall name the other
Party, its parent, associated and
Affiliate companies and their respective
directors, officers, agents, servants and
employees ("Other Party Group") as
additional insured. All policies shall
contain provisions whereby the insurers
waive all rights of subrogation in
accordance with the provisions of this
LGIA against the Other Party Group and
provide thirty (30) Calendar Days advance
written notice to the Other Party Group
prior to anniversary date of cancellation
or any material change in coverage or
condition.
Original Sheet No. 102
18.3.6 The Commercial General Liability
Insurance, Comprehensive Automobile
Liability Insurance and Excess Public
Liability Insurance policies shall contain
provisions that specify that the policies
are primary and shall apply to such extent
without consideration for other policies
separately carried and shall state that
each insured is provided coverage as
though a separate policy had been issued
to each, except the insurer's liability
shall not be increased beyond the amount
for which the insurer would have been
liable had only one insured been covered.
Each Party shall be responsible for its
respective deductibles or retentions.
18.3.7 The Commercial General Liability
Insurance, Comprehensive Automobile
Liability Insurance and Excess Public
Liability Insurance policies, if written
on a Claims First Made Basis, shall be
maintained in full force and effect for
two (2) years after termination of this
LGIA, which coverage may be in the form of
tail coverage or extended reporting period
coverage if agreed by the Parties.
18.3.8 The requirements contained herein as to
the types and limits of all insurance to
be maintained by the Parties are not
intended to and shall not in any manner,
limit or qualify the liabilities and
obligations assumed by the Parties under
this LGIA.
18.3.9 Within ten (10) days following execution
of this LGIA, and as soon as practicable
after the end of each fiscal year or at
the renewal of the insurance policy and in
any event within ninety (90) days
thereafter, each Party shall provide
certification of all insurance required in
this LGIA, executed by each insurer or by
an authorized representative of each
insurer.
Original Sheet No. 103
18.3.10 Notwithstanding the foregoing, each Party
may self-insure to meet the minimum
insurance requirements of Articles 18.3.2
through 18.3.8 to the extent it maintains
a self-insurance program; provided that,
such Party's senior secured debt is rated
at investment grade or better by Standard
& Poor's and that its self-insurance
program meets the minimum insurance
requirements of Articles 18.3.2 through
18.3.8. For any period of time that a
Party's senior secured debt is unrated by
Standard & Poor's or is rated at less than
investment grade by Standard & Poor's,
such Party shall comply with the insurance
requirements applicable to it under
Articles 18.3.2 through 18.3.9. In the
event that a Party is permitted to self-
insure pursuant to this article, it shall
notify the other Party that it meets the
requirements to self-insure and that its
self-insurance program meets the minimum
insurance requirements in a manner
consistent with that specified in Article
18.3.9.
18.3.11 The Parties agree to report to each other
in writing as soon as practical all
accidents or occurrences resulting in
injuries to any person, including death,
and any property damage arising out of
this LGIA.
Article 19. Assignment
19.1 Assignment. This LGIA may be assigned by either
Party only with the written consent of the other;
provided that either Party may assign this LGIA
without the consent of the other Party to any
Affiliate of the assigning Party with an equal or
greater credit rating and with the legal authority
and operational ability to satisfy the obligations of
the assigning Party under this LGIA; and provided
further that Interconnection Customer shall have the
right to assign this LGIA, without the consent of
Transmission Provider, for collateral security
Original Sheet No. 104
purposes to aid in providing financing for the Large
Generating Facility, provided that Interconnection
Customer will promptly notify Transmission Provider
of any such assignment. Any financing arrangement
entered into by Interconnection Customer pursuant to
this article will provide that prior to or upon the
exercise of the secured Party's, trustee's or
mortgagee's assignment rights pursuant to said
arrangement, the secured creditor, the trustee or
mortgagee will notify Transmission Provider of the
date and particulars of any such exercise of
assignment right(s), including providing the
Transmission Provider with proof that it meets the
requirements of Articles 11.5 and 18.3. Any
attempted assignment that violates this article is
void and ineffective. Any assignment under this LGIA
shall not relieve a Party of its obligations, nor
shall a Party's obligations be enlarged, in whole or
in part, by reason thereof. Where required, consent
to assignment will not be unreasonably withheld,
conditioned or delayed.
Article 20. Severability
20.1 Severability. If any provision in this LGIA is
finally determined to be invalid, void or
unenforceable by any court or other Governmental
Authority having jurisdiction, such determination
shall not invalidate, void or make unenforceable any
other provision, agreement or covenant of this LGIA;
provided that if Interconnection Customer (or any
third party, but only if such third party is not
acting at the direction of Transmission Provider)
seeks and obtains such a final determination with
respect to any provision of the Alternate Option
(Article 5.1.2), or the Negotiated Option (Article
5.1.4), then none of these provisions shall
thereafter have any force or effect and the Parties'
rights and obligations shall be governed solely by
the Standard Option (Article 5.1.1).
Article 21. Comparability
Original Sheet No. 105
21.1 Comparability. The Parties will comply with all
applicable comparability and code of conduct laws,
rules and regulations, as amended from time to time.
Article 22. Confidentiality
22.1 Confidentiality.Confidential Information shall
include, without limitation, all information relating
to a Party's technology, research and development,
business affairs, and pricing, and any information
supplied by either of the Parties to the other prior
to the execution of this LGIA.
Information is Confidential Information only if it is
clearly designated or marked in writing as
confidential on the face of the document, or, if the
information is conveyed orally or by inspection, if
the Party providing the information orally informs
the Party receiving the information that the
information is confidential.
If requested by either Party, the other Party shall
provide in writing, the basis for asserting that the
information referred to in this Article 22 warrants
confidential treatment, and the requesting Party may
disclose such writing to the appropriate Governmental
Authority. Each Party shall be responsible for the
costs associated with affording confidential
treatment to its information.
22.1.1 Term. During the term of this LGIA, and
for a period of three (3) years after the
expiration or termination of this LGIA,
except as otherwise provided in this
Article 22, each Party shall hold in
confidence and shall not disclose to any
person Confidential Information.
22.1.2 Scope. Confidential Information shall not
include information that the receiving
Party can demonstrate: (1) is generally
available to the public other than as a
result of a disclosure by the receiving
Party; (2) was in the lawful possession of
the receiving Party on a non-confidential
basis before receiving it from the
Original Sheet No. 106
disclosing Party; (3) was supplied to the
receiving Party without restriction by a
third party, who, to the knowledge of the
receiving Party after due inquiry, was
under no obligation to the disclosing
Party to keep such information
confidential; (4) was independently
developed by the receiving Party without
reference to Confidential Information of
the disclosing Party; (5) is, or becomes,
publicly known, through no wrongful act or
omission of the receiving Party or Breach
of this LGIA; or (6) is required, in
accordance with Article 22.1.7 of the
LGIA, Order of Disclosure, to be disclosed
by any Governmental Authority or is
otherwise required to be disclosed by law
or subpoena, or is necessary in any legal
proceeding establishing rights and
obligations under this LGIA. Information
designated as Confidential Information
will no longer be deemed confidential if
the Party that designated the information
as confidential notifies the other Party
that it no longer is confidential.
22.1.3 Release of Confidential Information.
Neither Party shall release or disclose
Confidential Information to any other
person, except to its Affiliates (limited
by the Standards of Conduct requirements),
subcontractors, employees, consultants, or
to parties who may be or considering
providing financing to or equity
participation with Interconnection
Customer, or to potential purchasers or
assignees of Interconnection Customer, on
a need-to-know basis in connection with
this LGIA, unless such person has first
been advised of the confidentiality
provisions of this Article 22 and has
agreed to comply with such provisions.
Notwithstanding the foregoing, a Party
providing Confidential Information to any
person shall remain primarily responsible
for any release of Confidential
Original Sheet No. 107
Information in contravention of this
Article 22.
22.1.4 Rights. Each Party retains all rights,
title, and interest in the Confidential
Information that each Party discloses to
the other Party. The disclosure by each
Party to the other Party of Confidential
Information shall not be deemed a waiver
by either Party or any other person or
entity of the right to protect the
Confidential Information from public
disclosure.
22.1.5 No Warranties. By providing Confidential
Information, neither Party makes any
warranties or representations as to its
accuracy or completeness. In addition, by
supplying Confidential Information,
neither Party obligates itself to provide
any particular information or Confidential
Information to the other Party nor to
enter into any further agreements or
proceed with any other relationship or
joint venture.
22.1.6 Standard of Care. Each Party shall use at
least the same standard of care to protect
Confidential Information it receives as it
uses to protect its own Confidential
Information from unauthorized disclosure,
publication or dissemination. Each Party
may use Confidential Information solely to
fulfill its obligations to the other Party
under this LGIA or its regulatory
requirements.
22.1.7 Order of Disclosure. If a court or a
Government Authority or entity with the
right, power, and apparent authority to do
so requests or requires either Party, by
subpoena, oral deposition,
interrogatories, requests for production
of documents, administrative order, or
otherwise, to disclose Confidential
Information, that Party shall provide the
other Party with prompt notice of such
Original Sheet No. 108
request(s) or requirement(s) so that the
other Party may seek an appropriate
protective order or waive compliance with
the terms of this LGIA.
Notwithstanding the absence of a
protective order or waiver, the Party may
disclose such Confidential Information
which, in the opinion of its counsel, the
Party is legally compelled to disclose.
Each Party will use Reasonable Efforts to
obtain reliable assurance that
confidential treatment will be accorded
any Confidential Information so furnished.
22.1.8 Termination of Agreement. Upon
termination of this LGIA for any reason,
each Party shall, within ten (10) Calendar
Days of receipt of a written request from
the other Party, use Reasonable Efforts to
destroy, erase, or delete (with such
destruction, erasure, and deletion
certified in writing to the other Party)
or return to the other Party, without
retaining copies thereof, any and all
written or electronic Confidential
Information received from the other Party.
22.1.9 Remedies. The Parties agree that monetary
damages would be inadequate to compensate
a Party for the other Party's Breach of
its obligations under this Article 22.
Each Party accordingly agrees that the
other Party shall be entitled to equitable
relief, by way of injunction or otherwise,
if the first Party Breaches or threatens
to Breach its obligations under this
Article 22, which equitable relief shall
be granted without bond or proof of
damages, and the receiving Party shall not
plead in defense that there would be an
adequate remedy at law. Such remedy shall
not be deemed an exclusive remedy for the
Breach of this Article 22, but shall be in
addition to all other remedies available
at law or in equity. The Parties further
acknowledge and agree that the covenants
Original Sheet No. 109
contained herein are necessary for the
protection of legitimate business
interests and are reasonable in scope. No
Party, however, shall be liable for
indirect, incidental, or consequential or
punitive damages of any nature or kind
resulting from or arising in connection
with this Article 22.
22.1.10 Disclosure to FERC, its Staff, or a State.
Notwithstanding anything in this Article
22 to the contrary, and pursuant to 18 CFR
section 1b.20, if FERC or its staff,
during the course of an investigation or
otherwise, requests information from one
of the Parties that is otherwise required
to be maintained in confidence pursuant to
this LGIA, the Party shall provide the
requested information to FERC or its
staff, within the time provided for in the
request for information. In providing the
information to FERC or its staff, the
Party must, consistent with 18 CFR section
388.112, request that the information be
treated as confidential and non-public by
FERC and its staff and that the
information be withheld from public
disclosure. Parties are prohibited from
notifying the other Party to this LGIA
prior to the release of the Confidential
Information to FERC or its staff. The
Party shall notify the other Party to the
LGIA when it is notified by FERC or its
staff that a request to release
Confidential Information has been received
by FERC, at which time either of the
Parties may respond before such
information would be made public, pursuant
to 18 CFR section 388.112. Requests from
a state regulatory body conducting a
confidential investigation shall be
treated in a similar manner if consistent
with the applicable state rules and
regulations.
22.1.11 Subject to the exception in Article
22.1.10, any information that a Party
Original Sheet No. 110
claims is competitively sensitive,
commercial or financial information under
this LGIA ("Confidential Information")
shall not be disclosed by the other Party
to any person not employed or retained by
the other Party, except to the extent
disclosure is (i) required by law; (ii)
reasonably deemed by the disclosing Party
to be required to be disclosed in
connection with a dispute between or among
the Parties, or the defense of litigation
or dispute; (iii) otherwise permitted by
consent of the other Party, such consent
not to be unreasonably withheld; or (iv)
necessary to fulfill its obligations under
this LGIA or as a transmission service
provider or a Control Area operator
including disclosing the Confidential
Information to an RTO or ISO or to a
regional or national reliability
organization. The Party asserting
confidentiality shall notify the other
Party in writing of the information it
claims is confidential. Prior to any
disclosures of the other Party's
Confidential Information under this
subparagraph, or if any third party or
Governmental Authority makes any request
or demand for any of the information
described in this subparagraph, the
disclosing Party agrees to promptly notify
the other Party in writing and agrees to
assert confidentiality and cooperate with
the other Party in seeking to protect the
Confidential Information from public
disclosure by confidentiality agreement,
protective order or other reasonable
measures.
Article 23. Environmental Releases
23.1 Each Party shall notify the other Party, first orally
and then in writing, of the release of any Hazardous
Substances, any asbestos or lead abatement
activities, or any type of remediation activities
related to the Large Generating Facility or the
Original Sheet No. 111
Interconnection Facilities, each of which may
reasonably be expected to affect the other Party.
The notifying Party shall: (i) provide the notice as
soon as practicable, provided such Party makes a good
faith effort to provide the notice no later than
twenty-four hours after such Party becomes aware of
the occurrence; and (ii) promptly furnish to the
other Party copies of any publicly available reports
filed with any Governmental Authorities addressing
such events.
Article 24. Information Requirements
24.1 Information Acquisition. Transmission Provider and
Interconnection Customer shall submit specific
information regarding the electrical characteristics
of their respective facilities to each other as
described below and in accordance with Applicable
Reliability Standards.
24.2 Information Submission by Transmission Provider. The
initial information submission by Transmission
Provider shall occur no later than one hundred eighty
(180) Calendar Days prior to Trial Operation and
shall include Transmission System information
necessary to allow Interconnection Customer to select
equipment and meet any system protection and
stability requirements, unless otherwise agreed to by
the Parties. On a monthly basis Transmission
Provider shall provide Interconnection Customer a
status report on the construction and installation of
Transmission Provider's Interconnection Facilities
and Network Upgrades, including, but not limited to,
the following information: (1) progress to
date; (2) a description of the activities since the
last report; (3) a description of the action items for
the next period; and (4) the delivery status of
equipment ordered.
24.3 Updated Information Submission by Interconnection
Customer. The updated information submission by
Interconnection Customer, including manufacturer
information, shall occur no later than one hundred
eighty (180) Calendar Days prior to the Trial
Operation. Interconnection Customer shall submit a
completed copy of the Large Generating Facility data
Original Sheet No. 112
requirements contained in Appendix 1 to the LGIP. It
shall also include any additional information
provided to Transmission Provider for the Feasibility
and Facilities Study. Information in this submission
shall be the most current Large Generating Facility
design or expected performance data. Information
submitted for stability models shall be compatible
with Transmission Provider standard models. If there
is no compatible model, Interconnection Customer will
work with a consultant mutually agreed to by the
Parties to develop and supply a standard model and
associated information.
If Interconnection Customer's data is materially
different from what was originally provided to
Transmission Provider pursuant to the Interconnection
Study Agreement between Transmission Provider and
Interconnection Customer, then Transmission Provider
will conduct appropriate studies to determine the
impact on Transmission Provider Transmission System
based on the actual data submitted pursuant to this
Article 24.3. The Interconnection Customer shall not
begin Trial Operation until such studies are
completed.
24.4 Information Supplementation. Prior to the Operation
Date, the Parties shall supplement their information
submissions described above in this Article 24 with
any and all "as-built" Large Generating Facility
information or "as-tested" performance information
that differs from the initial submissions or,
alternatively, written confirmation that no such
differences exist. The Interconnection Customer
shall conduct tests on the Large Generating Facility
as required by Good Utility Practice such as an open
circuit "step voltage" test on the Large Generating
Facility to verify proper operation of the Large
Generating Facility's automatic voltage regulator.
Unless otherwise agreed, the test conditions shall
include: (1) Large Generating Facility at synchronous
speed; (2) automatic voltage regulator on and in
voltage control mode; and (3) a five percent change
in Large Generating Facility terminal voltage
initiated by a change in the voltage regulators
reference voltage. Interconnection Customer shall
provide validated test recordings showing the
Original Sheet No. 113
responses of Large Generating Facility terminal and
field voltages. In the event that direct recordings
of these voltages is impractical, recordings of other
voltages or currents that mirror the response of the
Large Generating Facility's terminal or field voltage
are acceptable if information necessary to translate
these alternate quantities to actual Large Generating
Facility terminal or field voltages is provided.
Large Generating Facility testing shall be conducted
and results provided to Transmission Provider for
each individual generating unit in a station.
Subsequent to the Operation Date, Interconnection
Customer shall provide Transmission Provider any
information changes due to equipment replacement,
repair, or adjustment. Transmission Provider shall
provide Interconnection Customer any information
changes due to equipment replacement, repair or
adjustment in the directly connected substation or
any adjacent Transmission Provider-owned substation
that may affect Interconnection Customer's
Interconnection Facilities equipment ratings,
protection or operating requirements. The Parties
shall provide such information no later than thirty
(30) Calendar Days after the date of the equipment
replacement, repair or adjustment.
Article 25. Information Access and Audit Rights
25.1 Information Access. Each Party (the "disclosing
Party") shall make available to the other Party
information that is in the possession of the
disclosing Party and is necessary in order for the
other Party to: (i) verify the costs incurred by the
disclosing Party for which the other Party is
responsible under this LGIA; and (ii) carry out its
obligations and responsibilities under this LGIA.
The Parties shall not use such information for
purposes other than those set forth in this Article
25.1 and to enforce their rights under this LGIA.
25.2 Reporting of Non-Force Majeure Events. Each Party
(the "notifying Party") shall notify the other Party
when the notifying Party becomes aware of its
inability to comply with the provisions of this LGIA
for a reason other than a Force Majeure event. The
Original Sheet No. 114
Parties agree to cooperate with each other and
provide necessary information regarding such
inability to comply, including the date, duration,
reason for the inability to comply, and corrective
actions taken or planned to be taken with respect to
such inability to comply. Notwithstanding the
foregoing, notification, cooperation or information
provided under this article shall not entitle the
Party receiving such notification to allege a cause
for anticipatory breach of this LGIA.
25.3 Audit Rights. Subject to the requirements of
confidentiality under Article 22 of this LGIA, each
Party shall have the right, during normal business
hours, and upon prior reasonable notice to the other
Party, to audit at its own expense the other Party's
accounts and records pertaining to either Party's
performance or either Party's satisfaction of
obligations under this LGIA. Such audit rights shall
include audits of the other Party's costs,
calculation of invoiced amounts, Transmission
Provider's efforts to allocate responsibility for the
provision of reactive support to the Transmission
System, Transmission Provider's efforts to allocate
responsibility for interruption or reduction of
generation on the Transmission System, and each
Party's actions in an Emergency Condition. Any audit
authorized by this article shall be performed at the
offices where such accounts and records are
maintained and shall be limited to those portions of
such accounts and records that relate to each Party's
performance and satisfaction of obligations under
this LGIA. Each Party shall keep such accounts and
records for a period equivalent to the audit rights
periods described in Article 25.4.
25.4 Audit Rights Periods.
25.4.1 Audit Rights Period for Construction-
Related Accounts and Records. Accounts
and records related to the design,
engineering, procurement, and construction
of Transmission Provider's Interconnection
Facilities and Network Upgrades shall be
subject to audit for a period of twenty-
four months following Transmission
Original Sheet No. 115
Provider's issuance of a final invoice in
accordance with Article 12.2.
25.4.2 Audit Rights Period for All Other Accounts
and Records. Accounts and records related
to either Party's performance or
satisfaction of all obligations under this
LGIA other than those described in Article
25.4.1 shall be subject to audit as
follows: (i) for an audit relating to
cost obligations, the applicable audit
rights period shall be twenty-four months
after the auditing Party's receipt of an
invoice giving rise to such cost
obligations; and (ii) for an audit
relating to all other obligations, the
applicable audit rights period shall be
twenty-four months after the event for
which the audit is sought.
25.5 Audit Results. If an audit by a Party determines
that an overpayment or an underpayment has occurred,
a notice of such overpayment or underpayment shall be
given to the other Party together with those records
from the audit which support such determination.
Article 26. Subcontractors
26.1 General. Nothing in this LGIA shall prevent a Party
from utilizing the services of any subcontractor as
it deems appropriate to perform its obligations under
this LGIA; provided, however, that each Party shall
require its subcontractors to comply with all
applicable terms and conditions of this LGIA in
providing such services and each Party shall remain
primarily liable to the other Party for the
performance of such subcontractor.
26.2 Responsibility of Principal. The creation of any
subcontract relationship shall not relieve the hiring
Party of any of its obligations under this LGIA. The
hiring Party shall be fully responsible to the other
Party for the acts or omissions of any subcontractor
the hiring Party hires as if no subcontract had been
made; provided, however, that in no event shall
Transmission Provider be liable for the actions or
Original Sheet No. 116
inactions of Interconnection Customer or its
subcontractors with respect to obligations of
Interconnection Customer under Article 5 of this
LGIA. Any applicable obligation imposed by this LGIA
upon the hiring Party shall be equally binding upon,
and shall be construed as having application to, any
subcontractor of such Party.
26.3 No Limitation by Insurance. The obligations under
this Article 26 will not be limited in any way by any
limitation of subcontractor's insurance.
Article 27. Disputes
27.1 Submission.In the event either Party has a dispute,
or asserts a claim, that arises out of or in
connection with this LGIA or its performance, such
Party (the "disputing Party") shall provide the other
Party with written notice of the dispute or claim
("Notice of Dispute"). Such dispute or claim shall
be referred to a designated senior representative of
each Party for resolution on an informal basis as
promptly as practicable after receipt of the Notice
of Dispute by the other Party. In the event the
designated representatives are unable to resolve the
claim or dispute through unassisted or assisted
negotiations within thirty (30) Calendar Days of the
other Party's receipt of the Notice of Dispute, such
claim or dispute may, upon mutual agreement of the
Parties, be submitted to arbitration and resolved in
accordance with the arbitration procedures set forth
below. In the event the Parties do not agree to
submit such claim or dispute to arbitration, each
Party may exercise whatever rights and remedies it
may have in equity or at law consistent with the
terms of this LGIA.
27.2 External Arbitration Procedures. Any arbitration
initiated under this LGIA shall be conducted before a
single neutral arbitrator appointed by the Parties.
If the Parties fail to agree upon a single arbitrator
within ten (10) Calendar Days of the submission of
the dispute to arbitration, each Party shall choose
one arbitrator who shall sit on a three-member
arbitration panel. The two arbitrators so chosen
shall within twenty (20) Calendar Days select a third
Original Sheet No. 117
arbitrator to chair the arbitration panel. In either
case, the arbitrators shall be knowledgeable in
electric utility matters, including electric
transmission and bulk power issues, and shall not
have any current or past substantial business or
financial relationships with any party to the
arbitration (except prior arbitration). The
arbitrator(s) shall provide each of the Parties an
opportunity to be heard and, except as otherwise
provided herein, shall conduct the arbitration in
accordance with the Commercial Arbitration Rules of
the American Arbitration Association ("Arbitration
Rules") and any applicable FERC regulations or RTO
rules; provided, however, in the event of a conflict
between the Arbitration Rules and the terms of this
Article 27, the terms of this Article 27 shall
prevail.
27.3 Arbitration Decisions.Unless otherwise agreed by
the Parties, the arbitrator(s) shall render a
decision within ninety (90) Calendar Days of
appointment and shall notify the Parties in writing
of such decision and the reasons therefore. The
arbitrator(s) shall be authorized only to interpret
and apply the provisions of this LGIA and shall have
no power to modify or change any provision of this
Agreement in any manner. The decision of the
arbitrator(s) shall be final and binding upon the
Parties, and judgment on the award may be entered in
any court having jurisdiction. The decision of the
arbitrator(s) may be appealed solely on the grounds
that the conduct of the arbitrator(s), or the
decision itself, violated the standards set forth in
the Federal Arbitration Act or the Administrative
Dispute Resolution Act. The final decision of the
arbitrator must also be filed with FERC if it affects
jurisdictional rates, terms and conditions of
service, Interconnection Facilities, or Network
Upgrades.
27.4 Costs.Each Party shall be responsible for its own
costs incurred during the arbitration process and for
the following costs, if applicable: (1) the cost of
the arbitrator chosen by the Party to sit on the
three member panel and one half of the cost of the
third arbitrator chosen; or (2) one half the cost of
the single arbitrator jointly chosen by the Parties.
Original Sheet No. 118
Article 28. Representations, Warranties, and Covenants
28.1 General. Each Party makes the following
representations, warranties and covenants:
28.1.1 Good Standing. Such Party is duly
organized, validly existing and in good
standing under the laws of the state in
which it is organized, formed, or
incorporated, as applicable; that it is
qualified to do business in the state or
states in which the Large Generating
Facility, Interconnection Facilities and
Network Upgrades owned by such Party, as
applicable, are located;and that it has
the corporate power and authority to own
its properties, to carry on its business
as now being conducted and to enter into
this LGIA and carry out the transactions
contemplated hereby and perform and carry
out all covenants and obligations on its
part to be performed under and pursuant to
this LGIA.
28.1.2 Authority. Such Party has the right,
power and authority to enter into this
LGIA, to become a Party hereto and to
perform its obligations hereunder. This
LGIA is a legal, valid and binding
obligation of such Party, enforceable
against such Party in accordance with its
terms, except as the enforceability
thereof may be limited by applicable
bankruptcy, insolvency, reorganization or
other similar laws affecting creditors'
rights generally and by general equitable
principles (regardless of whether
enforceability is sought in a proceeding
in equity or at law).
28.1.3 No Conflict. The execution, delivery and
performance of this LGIA does not violate
or conflict with the organizational or
formation documents, or bylaws or
operating agreement, of such Party, or any
Original Sheet No. 119
judgment, license, permit, order, material
agreement or instrument applicable to or
binding upon such Party or any of its
assets.
28.1.4 Consent and Approval. Such Party has
sought or obtained, or, in accordance with
this LGIA will seek or obtain, each
consent, approval, authorization, order,
or acceptance by any Governmental
Authority in connection with the
execution, delivery and performance of
this LGIA, and it will provide to any
Governmental Authority notice of any
actions under this LGIA that are required
by Applicable Laws and Regulations.
Article 29. Joint Operating Committee
29.1 Joint Operating Committee. Except in the case of
ISOs and RTOs, Transmission Provider shall constitute a
Joint Operating Committee to coordinate operating and
technical considerations of Interconnection Service. At
least six (6) months prior to the expected Initial
Synchronization Date, Interconnection Customer and
Transmission Provider shall each appoint one representative
and one alternate to the Joint Operating Committee. Each
Interconnection Customer shall notify Transmission Provider
of its appointment in writing. Such appointments may be
changed at any time by similar notice. The Joint Operating
Committee shall meet as necessary, but not less than once
each calendar year, to carry out the duties set forth
herein. The Joint Operating Committee shall hold a meeting
at the request of either Party, at a time and place agreed
upon by the representatives. The Joint Operating Committee
shall perform all of its duties consistent with the
provisions of this LGIA. Each Party shall cooperate in
providing to the Joint Operating Committee all information
required in the performance of the Joint Operating
Committee's duties. All decisions and agreements, if any,
made by the Joint Operating Committee, shall be evidenced
in writing. The duties of the Joint Operating Committee
shall include the following:
Original Sheet No. 120
29.1.1 Establish data requirements and operating
record requirements.
29.1.2 Review the requirements, standards, and
procedures for data acquisition equipment,
protective equipment, and any other
equipment or software.
29.1.3 Annually review the one (1) year forecast
of maintenance and planned outage
schedules of Transmission Provider's and
Interconnection Customer's facilities at
the Point of Interconnection.
29.1.4 Coordinate the scheduling of maintenance
and planned outages on the Interconnection
Facilities, the Large Generating Facility
and other facilities that impact the
normal operation of the interconnection of
the Large Generating Facility to the
Transmission System.
29.1.5 Ensure that information is being provided
by each Party regarding equipment
availability.
29.1.6 Perform such other duties as may be
conferred upon it by mutual agreement of
the Parties.
Article 30. Miscellaneous
30.1 Binding Effect. This LGIA and the rights and
obligations hereof, shall be binding upon and shall
inure to the benefit of the successors and assigns of
the Parties hereto.
30.2 Conflicts. In the event of a conflict between the
body of this LGIA and any attachment, appendices or
exhibits hereto, the terms and provisions of the body
of this LGIA shall prevail and be deemed the final
intent of the Parties.
30.3 Rules of Interpretation. This LGIA, unless a clear
contrary intention appears, shall be construed and
interpreted as follows: (1) the singular number
Original Sheet No. 121
includes the plural number and vice versa; (2)
reference to any person includes such person's
successors and assigns but, in the case of a Party,
only if such successors and assigns are permitted by
this LGIA, and reference to a person in a particular
capacity excludes such person in any other capacity
or individually; (3) reference to any agreement
(including this LGIA), document, instrument or tariff
means such agreement, document, instrument, or tariff
as amended or modified and in effect from time to
time in accordance with the terms thereof and, if
applicable, the terms hereof; (4) reference to any
Applicable Laws and Regulations means such Applicable
Laws and Regulations as amended, modified, codified,
or reenacted, in whole or in part, and in effect from
time to time, including, if applicable, rules and
regulations promulgated thereunder; (5) unless
expressly stated otherwise, reference to any Article,
Section or Appendix means such Article of this LGIA
or such Appendix to this LGIA, or such Section to the
LGIP or such Appendix to the LGIP, as the case may
be; (6) "hereunder", "hereof", "herein", "hereto" and
words of similar import shall be deemed references to
this LGIA as a whole and not to any particular
Article or other provision hereof or thereof; (7)
"including" (and with correlative meaning "include")
means including without limiting the generality of
any description preceding such term; and (8) relative
to the determination of any period of time, "from"
means "from and including", "to" means "to but
excluding" and "through" means "through and
including".
30.4 Entire Agreement. This LGIA, including all
Appendices and Schedules attached hereto, constitutes
the entire agreement between the Parties with
reference to the subject matter hereof, and
supersedes all prior and contemporaneous
understandings or agreements, oral or written,
between the Parties with respect to the subject
matter of this LGIA. There are no other agreements,
representations, warranties, or covenants which
constitute any part of the consideration for, or any
condition to, either Party's compliance with its
obligations under this LGIA.
Original Sheet No. 122
30.5 No Third Party Beneficiaries.This LGIA is not
intended to and does not create rights, remedies, or
benefits of any character whatsoever in favor of any
persons, corporations, associations, or entities
other than the Parties, and the obligations herein
assumed are solely for the use and benefit of the
Parties, their successors in interest and, where
permitted, their assigns.
30.6 Waiver. The failure of a Party to this LGIA to
insist, on any occasion, upon strict performance of
any provision of this LGIA will not be considered a
waiver of any obligation, right, or duty of, or
imposed upon, such Party. Any waiver at any time by
either Party of its rights with respect to this LGIA
shall not be deemed a continuing waiver or a waiver
with respect to any other failure to comply with any
other obligation, right, duty of this LGIA.
Termination or Default of this LGIA for any reason by
Interconnection Customer shall not constitute a
waiver of Interconnection Customer's legal rights to
obtain an interconnection from Transmission Provider.
Any waiver of this LGIA shall, if requested, be
provided in writing.
30.7 Headings. The descriptive headings of the various
Articles of this LGIA have been inserted for
convenience of reference only and are of no
significance in the interpretation or construction of
this LGIA.
30.8 Multiple Counterparts.This LGIA may be executed in
two or more counterparts, each of which is deemed an
original but all constitute one and the same
instrument.
30.9 Amendment.The Parties may by mutual agreement amend
this LGIA by a written instrument duly executed by
the Parties.
30.10 Modification by the Parties. The Parties may by
mutual agreement amend the Appendices to this LGIA by
a written instrument duly executed by the Parties.
Such amendment shall become effective and a part of
this LGIA upon satisfaction of all Applicable Laws
and Regulations.
Original Sheet No. 123
30.11 Reservation of Rights. Transmission Provider shall
have the right to make a unilateral filing with FERC
to modify this LGIA with respect to any rates, terms
and conditions, charges, classifications of service,
rule or regulation under section 205 or any other
applicable provision of the Federal Power Act and
FERC's rules and regulations thereunder, and
Interconnection Customer shall have the right to make
a unilateral filing with FERC to modify this LGIA
pursuant to section 206 or any other applicable
provision of the Federal Power Act and FERC's rules
and regulations thereunder; provided that each Party
shall have the right to protest any such filing by
the other Party and to participate fully in any
proceeding before FERC in which such modifications
may be considered. Nothing in this LGIA shall limit
the rights of the Parties or of FERC under sections
205 or 206 of the Federal Power Act and FERC's rules
and regulations thereunder, except to the extent that
the Parties otherwise mutually agree as provided
herein.
30.12 No Partnership. This LGIA shall not be interpreted
or construed to create an association, joint venture,
agency relationship, or partnership between the
Parties or to impose any partnership obligation or
partnership liability upon either Party. Neither
Party shall have any right, power or authority to
enter into any agreement or undertaking for, or act
on behalf of, or to act as or be an agent or
representative of, or to otherwise bind, the other
Party.
Original Sheet No. 124
IN WITNESS WHEREOF, the Parties have executed this LGIA in
duplicate originals, each of which shall constitute and be
an original effective Agreement between the Parties.
PACIFICORP
By:
Rick Vail
Title: VP, Transmission
Date:
DINOSOLAR, LLC
By:
Title:
Date:

Manager
February 11, 2020
Rick Vail Digitally signed by Rick Vail
Date: 2020.02.12 12:47:34
-08'00'
2/12/2020
Original Sheet No. 125
Appendix A to LGIA
Interconnection Facilities, Network Upgrades, Distribution
Upgrades, and Contingent Facilities
1. Interconnection Facilities:
(a) Interconnection Customer's Interconnection
Facilities:a short (less than 800 feet) tie line
and a circuit breaker on the high side of the
generator step-up transformer connected to a
takeoff point on Interconnection Facilities for
the Large Generating Facility. Tie line built for
previous Large Generating Facility.
(b) Transmission Provider's Interconnection
Facilities:a line position at the Bar Nunn
substation with bus tie, disconnection switch(es),
and metering with appurtenant equipment (built for
previous Large Generating Facility). Also includes
separate metering for the three (3) Large
Generating Facilities.
2. Network Upgrades:
(a) Stand Alone Network Upgrades:None
(b) Other Network Upgrades:None
3. Distribution Upgrades:None
4. Contingent Facilities:As identified in the Facilities
Study for this project dated September 27, 2019 the
following Network Upgrades are required to be in-service
prior to this project:
x All requirements of higher priority Interconnection
Request Q0783 including:
o Construction in Bar Nunn substation to finalize the
115 kV ring bus and create line position.
o Re-termination of the Bar Nunn-Casper transmission
line in Bar Nunn substation.
o Installation of all required protection & control,
communications and metering equipment.
Original Sheet No. 126
x All requirements of higher priority Interconnection
Request Q0801 including:
o Installation of metering equipment to separate the
multiple Large Generating Facilities sharing the
same Point of Interconnection.
x Portions of the Transmission Provider’s Energy Gateway
Transmission Projects
o Construction of the Gateway West Segment D2 500 kV
transmission line (Aeolus-Anticline/Bridger). (2020)
o A Remedial Action Scheme (“RAS”) that will drop
approximately 600 MW of generation for various 500
kV outages. (2020)
o Construction of a new 230 kV transmission line
between Windstar and Shirley Basin substations.
(2024)
o A rebuild of the existing Dave Johnston-Amasa –
Difficulty– Shirley Basin 230 kV line. (2024)
o Construction of the Gateway South 500 kV
transmission line (Aeolus-Clover). (2024)
x A rebuild of the existing 230 kV line between Shirley
Basin and Aeolus substation assigned to a higher
priority Interconnection Request. (2020)
x A new 230 kV line between Shirley Basin and Aeolus
substations assigned to a higher priority
Interconnection Request. (2020)
x A rebuild of the 230 kV transmission line between
Aeolus–Freezeout-Standpipe substations assigned to a
higher priority Interconnection Request. (2020)
x A Transmission Provider planned upgrade of the Jim
Bridger substation 345/230 kV #2 transformer to 700
MVA. (2020)
5. Point of Interconnection (“POI”): The point at which
Transmission Provider Interconnection Facilities connect to
the substation bus at the Bar Nunn POI substation (see
Exhibit 1 to Appendix A).
6. Point of Change of Ownership: The point at which
Interconnection Customer and Transmission Provider
Interconnection Facilities meet (see Exhibit 1 to Appendix
A).
Original Sheet No. 127
7. One-Line Diagram: is attached to this Agreement as
Exhibit 1 to Appendix A.
8. Estimated Project Cost: $256,000
Direct Assigned: $256,000
Network Upgrades: $0
Original Sheet No. 128
Appendix B To LGIA
Milestones
Interconnection Customer Execute Interconnection Agreement
February 14, 2020
†Interconnection Customer Provides of Financial Security
January 15, 2023
Interconnection Customer Approval for Transmission Provider
to Commence Engineering and Procurement Activities
April 1, 2023
Interconnection Customer provides shared facilities
agreement to Transmission Provider
April 1, 2023
Interconnection Customer Design Information Provided
April 15, 2023
*Interconnection Customer Submits Energy Imbalance Market
Modeling Data
April 15, 2023
**Transmission Provider Engineering & Procurement Commences
May 1, 2023
Interconnection Customer Property/Permits/ROW Procured
August 1, 2023
Transmission Provider Engineering Design Complete
November 1, 2023
Interconnection Customer Approval for Transmission Provider
to Commence Construction Activities
January 30, 2024
Transmission Provider Construction Begins
March 1, 2024
Interconnection Customer and Transmission Provider
Construction Complete
August 25, 2024
Transmission Provider Commissioning Activities Complete
October 7, 2024
Original Sheet No. 129
Transmission Provider Commissioning Document Review
Complete
October 14, 2024
Interconnection Customer’s Facilities Receive Backfeed
Power
October 15, 2024
Contingent Facilities Complete
November 1, 2024
Initial Synchronization/Generation Testing
November 2, 2024
Commercial Operations
December 15, 2024
Interconnection Customer to request backfeed, first sync,
and commercial operations in writing (email acceptable).
Transmission Provider to not delay approval(s).
†Financial Security determined to be $60,000
*Any design modifications to the Interconnection Customer’s
Generating Facility after this date requiring updates to
the Transmission Provider’s network model will result in a
minimum of 3 months added to all future milestones
including Commercial Operation. Design changes that impact
the Transmission Provider’s network model included GSU
transformers and high voltage circuit breakers. Changes to
inverters will not impact the network model.
**As applicable and determined by the Transmission
Provider, within 60 days of the Interconnection Customer’s
authorization for the Transmission Provider to begin
engineering, the Interconnection Customer shall provide a
detailed short circuit model of its generation system. This
model must be constructed using the ASPEN OneLine short
circuit simulation program and contain all individual
electrical components of the Interconnection Customer’s
generation system.
For the avoidance of doubt, the Commercial Operation Date
in Appendix B of this LGIA is contingent upon the
completion of all of the Contingent Facilities listed in
Appendix A. If the completion of ANY of the Contingent
Facilities is delayed beyond the estimated completion
Original Sheet No. 130
date(s) contained in Appendix A, the Transmission Provider
will determine in its sole discretion whether the
Commercial Operation Date and associated milestones listed
in Appendix B of this LGIA need to be modified accordingly,
and will inform the Interconnection Customer at the
earliest reasonable opportunity that such a change is
necessary. The Transmission Provider and Interconnection
Customer will in good faith attempt to negotiate an
alternative Commercial Operation Date and associated
milestones, consistent with the rights and obligations set
forth in this LGIA. If the completion of ALL of the
Contingent Facilities occurs before the estimated dates
contained in this Appendix B of this LGIA, the Transmission
Provider will determine in its sole discretion whether the
Commercial Operation Date and associated milestones listed
in this Appendix B can be modified accordingly, and will
inform the Interconnection Customer at the earliest
reasonable opportunity that the Commercial Operation Date
can be advanced. In such event, the Interconnection
Customer will determine in its sole discretion whether it
wishes to advance its Commercial Operation Date. If it
elects to do so, the Transmission Provider and
Interconnection Customer will in good faith attempt to
negotiate an alternative Commercial Operation Date and
associated milestones, consistent with the rights and
obligations set forth in this LGIA. Any change to the
Commercial Operation Date and associated milestones will
necessitate an amendment to this LGIA.
Original Sheet No. 131
Appendix C To LGIA
Interconnection Details
Description of the Large Generating Facility:The
Interconnection Customer’s Large Generating Facility consists
of eighteen (18) Power Electronics 2.9 MW (3.11 MVA) inverters
for a total requested output of 50 MW as measured at the Point
of Interconnection. Each inverter is connected individually
to a step up transformer (3/3.5 MVA, Z=6%). The inverter units
are then connected to a single 30/40/50 MVA 34.5 – 115 kV (8%
impedance) transformer. The Large Generating Facility is
located in Natrona County, Wyoming.
Please see Exhibit 1 to Attachment A.
Control Area Requirements:Interconnection Customer shall
interconnect and operate the Large Generating Facility in
accordance with the Transmission Provider's Facility
Interconnection Requirements for Transmission Systems, as may
be revised from time to time, attached hereto as Exhibit 1 to
Appendix C and by this reference incorporated herein.
Interconnection Details:
Metering. With reference to Article 7.1, Transmission
Provider will own and maintain the bi-directional revenue
Metering Equipment in Transmission Provider's Point of
Interconnection substation at the Interconnection Customer's
expense.
Under Frequency and Over Frequency Conditions. Consistent
with LGIA Article 9.7.3, Transmission Provider shall design,
procure, install and maintain frequency and voltage
protection to trip feeder breakers in accordance with the
settings shown in Exhibit 1 to Appendix C.
Reactive Power and Voltage Schedule. All interconnecting
synchronous and non-synchronous generators are required to
design their Generating Facilities with reactive power
capabilities necessary to operate within the full power
factor range of 0.95 leading to 0.95 lagging. This power
factor range shall be dynamic and can be met using a
combination of the inherent dynamic reactive power capability
of the generator or inverter, dynamic reactive power devices
and static reactive power devices. For non-synchronous
generators, the power factor requirement is to be measured at
the high-side of the generator substation. The Generating
Original Sheet No. 132
Facility must provide dynamic reactive power to the system
over the full range of real power output. If the Generating
Facility is not capable of providing positive reactive
support (i.e., supplying reactive power to the system)
immediately following the removal of a fault or other
transient low voltage perturbations, the facility will be
required to add dynamic voltage support equipment. These
additional dynamic reactive devices shall have correct
protection settings such that the devices will remain on line
and active during and immediately following a fault event.
Generators shall be equipped with automatic voltage-control
equipment and normally operated with the voltage regulation
control mode enabled unless written authorization, or
directive, from the Transmission Provider is given to operate
in another control mode (e.g., constant power factor
control). The control mode of generating units shall be
accurately represented in operating studies. The generators
shall be capable of operating continuously at their rated
power output within +/- 5% of its rated terminal voltage.
Phasor Measurement Units will be required at any Generating
Facilities with an individual or aggregate nameplate capacity
of 75 MVA or greater.
As required by NERC standard VAR-001-1a, the Transmission
Provider will provide a voltage schedule for the Point of
Interconnection. In general, Generating Facilities should be
operated so as to maintain the voltage at the Point of
Interconnection, or other designated point as deemed
appropriated by Transmission Provider, in accordance with
Transmission Provider Policy 139.
Generating Facilities capable of operating with a voltage
droop are required to do so. Studies will be required to
coordinate voltage droop settings if there are other
facilities in the area. It will be the Interconnection
Customer’s responsibility to ensure that a voltage
coordination study is performed, in coordination with
Transmission Provider, and implemented with appropriate
coordination settings prior to unit testing. If the need for
a master controller is identified, the cost and all related
installation requirements will be the responsibility of the
Interconnection Customer. Participation by the Generation
Facility in subsequent interaction/coordination studies will
be required pre- and post-commercial operation in order
ensure system reliability.
Original Sheet No. 133
All generators must meet the Federal Energy Regulatory
Commission (FERC) and WECC low voltage ride-through
requirements.
As the Transmission Provider cannot submit a user written
model to WECC for inclusion in base cases, a standard model
from the WECC Approved Dynamic Model Library is required 180
days prior to trial operation. The list of approved generator
models is continually updated and is available on the
http://www.WECC.biz website.
Property Requirements. Subject to LGIA Articles 5.12 and
5.13, Interconnection Customer is required to obtain for the
benefit of Transmission Provider at Interconnection
Customer’s sole cost and expense all real property rights,
including but not limited to fee ownership, easements and/or
rights of way, as applicable, for Transmission Provider owned
facilities using forms acceptable to Transmission Provider.
Transmission Provider shall not be obligated to accept any
such real property right that does not, at Transmission
Provider’s sole discretion, confer sufficient rights to
access, operate, construct, modify, maintain, place and
remove Transmission Provider owned facilities or is otherwise
conveyed using forms unacceptable to Transmission Provider.
Further, all real property on which Transmission Provider’s
facilities are to be located must be environmentally,
physically and operationally acceptable to the Transmission
Provider in accordance with Good Utility Practice.
Subject to LGIA Article 5.14, Interconnection Customer is
responsible for obtaining all permits required by all
relevant jurisdictions for the project, including but not
limited to, conditional use permits and construction permits;
provided however, Transmission Provider shall obtain, at
Interconnection Customer’s cost and schedule risk, the
permits necessary to construct Transmission Provider’s
facilities that are to be located on real property currently
owned or held in fee or right by Transmission Provider.
Subject to applicable provisions in the Agreement and an
express written waiver by an authorized officer of
Transmission Provider, all of the foregoing permits and real
property rights (conferring rights on real property that is
environmentally, physically and operationally acceptable to
Transmission Provider) shall be acquired as provided herein
as a condition to Transmission Provider’s contractual
obligation to construct or take possession of facilities to
Original Sheet No. 134
be owned by the Transmission Provider under this Agreement.
Transmission Provider shall have no liability for any project
delays or cost overruns caused by delays in acquiring any of
the foregoing permits and/or real property rights, whether
such delay results from the failure to obtain such permits or
rights or the failure of such permits or rights to meet the
requirements set forth herein. Further, any completion dates,
if any, set forth herein with regard to Transmission
Provider’s obligations shall be equitably extended based on
the length and impact of any such delays.
With respect to the fiber optic cable on Interconnection
Customer’s tie line that will be owned by the Transmission
Provider, the Interconnection Customer and the Transmission
Provider agree that Transmission Provider’s ownership and
operation of fiber optic cable that is attached to poles or
other structures that are owned or maintained by the
Interconnection Customer is subject to LGIA Article 5.12,
Good Utility Practice, and Transmission Provider’s
Interconnection Policy 139 (Exhibit 1 to Appendix C to LGIA).
Original Sheet No. 135
Appendix D To LGIA
Security Arrangements Details
Infrastructure security of Transmission System equipment
and operations and control hardware and software is
essential to ensure day-to-day Transmission System
reliability and operational security. FERC will expect all
Transmission Providers, market participants, and
Interconnection Customers interconnected to the
Transmission System to comply with the recommendations
offered by the President's Critical Infrastructure
Protection Board and, eventually, best practice
recommendations from the electric reliability authority.
All public utilities will be expected to meet basic
standards for system infrastructure and operational
security, including physical, operational, and cyber-
security practices.
Automatic Data Transfer.Throughout the term of this
Agreement, Interconnection Customer shall provide the data
specified below by automatic data transfer to the
Transmission Provider Control Center specified by
Transmission Provider or to a Third-Party System Operator
designated by Transmission Provider (or both):
From the Interconnection Customer’s collector substation:
Analogs:
o Net Generation MW
o Net Generator MVAR
o Interchange metering kWH
o 34.5 kV Real power F1
o 34.5 kV Reactive power F1
o 34.5 kV Real power F2
o 34.5 kV Reactive power F2
Status:
o 115 kV transformer breaker
o 34.5 kV breaker F1
o 34.5 kV breaker F2
Billing Meter Data.Bi-directional revenue meter at the
Point of Interconnection will not be configured to allow
direct dial-up access by Interconnection Customer. The
Transmission Provider will provide alternatives, at the
Interconnection Customer’s expense, upon request.
Original Sheet No. 136
Additional Data.Interconnection Customer shall, at its
sole expense, provide any additional Generating Facility
data reasonably required and necessary for the Transmission
Provider to operate the Transmission System in accordance
with Good Utility Practice and Exhibit 1 to Appendix C,
Facility Interconnection Requirements for Transmission
Systems.
Relay and Control Settings
If Interconnection Customer requires modifications to the
settings associated with control/protective devices
connected to the distribution and/or transmission system,
Interconnection Customer will contact Transmission Provider
and provide in writing the justification for the proposed
modifications. This will allow Transmission Provider to
analyze the modifications and ensure there will be no
negative impacts to connected systems and customers.
Original Sheet No. 137
Appendix E To LGIA
Commercial Operation Date
This Appendix E is a part of the LGIA between Transmission
Provider and Interconnection Customer.
[Date]
[Transmission Provider Address]
Re: Large Generating Facility
Dear :
On [Date] [Interconnection Customer]has completed
Trial Operation of Unit No. . This letter confirms that
[Interconnection Customer] commenced Commercial Operation
of Unit No. at the Large Generating Facility, effective
as of [Date plus one day].
Thank you.
[Signature]
[Interconnection Customer Representative]
Original Sheet No. 138
Appendix F to LGIA
Addresses for Delivery of Notices and Billings
Notices, Billings and Payments:
Transmission Provider:
US Mail Deliveries: PacifiCorp Transmission Services
Attn: Central Cashiers Office
PO Box 2757
Portland, OR 97208-2757
Other Deliveries: Central Cashiers Office
Attn: PacifiCorp Transmission Services
825 NE Multnomah Street, Suite 550
Portland OR 97232
Phone Number: 503-813-6774
Interconnection Customer:
Christine Mikell
Dinosolar, LLC
3434 E. Bengal Blvd. #180
Salt Lake City, UT 84121
Alternative Forms of Delivery of Notices (telephone,
facsimile or email):
Transmission Provider:
Director, Transmission Services 503-813-7237
Manager, Transmission Scheduling 503-813-5342
Director, Interconnection Services 503-813-6496
Transmission Business Facsimile 503-813-6893
OASIS Address:
http://www.oasis.pacificorp.com/oasis/ppw/main.htmlx
Interconnection Customer:
Christine Mikell
Dinosolar, LLC
[e-mail]
801-455-1045
Original Sheet No. 139
Appendix G to LGIA
INTERCONNECTION REQUIREMENTS FOR A WIND GENERATING PLANT
Appendix G sets forth requirements and provisions
specific to a wind generating plant. All other
requirements of this LGIA continue to apply to wind
generating plant interconnections.
A. Technical Standards Applicable to a Wind
Generating Plant
i. Low Voltage Ride-Through (LVRT) Capability
A wind generating plant shall be able to remain online
during voltage disturbances up to the time periods and
associated voltage levels set forth in the standard below.
The LVRT standard provides for a transition period standard
and a post-transition period standard.
Transition Period LVRT Standard
The transition period standard applies to wind
generating plants subject to FERC Order 661 that have
either: (i) interconnection agreements signed and filed
with the Commission, filed with the Commission in
unexecuted form, or filed with the Commission as non-
conforming agreements between January 1, 2006 and December
31, 2006, with a scheduled in-service date no later than
December 31, 2007, or (ii) wind generating turbines subject
to a wind turbine procurement contract executed prior to
December 31, 2005, for delivery through 2007.
1. Wind generating plants are required to remain in-
service during three-phase faults with normal
clearing (which is a time period of approximately 4 –
9 cycles) and single line to ground faults with
delayed clearing, and subsequent post-fault voltage
recovery to prefault voltage unless clearing the
fault effectively disconnects the generator from the
system. The clearing time requirement for a three-
phase fault will be specific to the wind generating
plant substation location, as determined by and
documented by the transmission provider. The maximum
clearing time the wind generating plant shall be
required to withstand for a three-phase fault shall
be 9 cycles at a voltage as low as 0.15 p.u., as
measured at the high side of the wind generating
Original Sheet No. 140
plant step-up transformer (i.e. the transformer that
steps the voltage up to the transmission
interconnection voltage or “GSU”), after which, if
the fault remains following the location-specific
normal clearing time for three-phase faults, the wind
generating plant may disconnect from the transmission
system.
2. This requirement does not apply to faults that would
occur between the wind generator terminals and the
high side of the GSU or to faults that would result
in a voltage lower than 0.15 per unit on the high
side of the GSU serving the facility.
3. Wind generating plants may be tripped after the fault
period if this action is intended as part of a
special protection system.
4. Wind generating plants may meet the LVRT requirements
of this standard by the performance of the generators
or by installing additional equipment (e.g., Static
VAr Compensator, etc.) within the wind generating
plant or by a combination of generator performance
and additional equipment.
5. Existing individual generator units that are, or have
been, interconnected to the network at the same
location at the effective date of the Appendix G LVRT
Standard are exempt from meeting the Appendix G LVRT
Standard for the remaining life of the existing
generation equipment. Existing individual generator
units that are replaced are required to meet the
Appendix G LVRT Standard.
Post-transition Period LVRT Standard
All wind generating plants subject to FERC Order No.
661 and not covered by the transition period described
above must meet the following requirements:
1. Wind generating plants are required to remain in-
service during three-phase faults with normal
clearing (which is a time period of approximately 4 –
9 cycles) and single line to ground faults with
delayed clearing, and subsequent post-fault voltage
recovery to prefault voltage unless clearing the
Original Sheet No. 141
fault effectively disconnects the generator from the
system. The clearing time requirement for a three-
phase fault will be specific to the wind generating
plant substation location, as determined by and
documented by the transmission provider. The maximum
clearing time the wind generating plant shall be
required to withstand for a three-phase fault shall
be 9 cycles after which, if the fault remains
following the location-specific normal clearing time
for three-phase faults, the wind generating plant may
disconnect from the transmission system. A wind
generating plant shall remain interconnected during
such a fault on the transmission system for a voltage
level as low as zero volts, as measured at the high
voltage side of the wind GSU.
2. This requirement does not apply to faults that would
occur between the wind generator terminals and the
high side of the GSU.
3. Wind generating plants may be tripped after the fault
period if this action is intended as part of a
special protection system.
4. Wind generating plants may meet the LVRT requirements
of this standard by the performance of the generators
or by installing additional equipment (e.g., Static
VAr Compensator) within the wind generating plant or
by a combination of generator performance and
additional equipment.
5. Existing individual generator units that are, or have
been, interconnected to the network at the same
location at the effective date of the Appendix G LVRT
Standard are exempt from meeting the Appendix G LVRT
Standard for the remaining life of the existing
generation equipment. Existing individual generator
units that are replaced are required to meet the
Appendix G LVRT Standard.
ii. Power Factor Design Criteria (Reactive
Power)
The following reactive power requirements apply only
to a newly interconnecting wind generating plant that has
executed a Facilities Study Agreement as of the effective
Original Sheet No. 142
date of the Final Rule establishing the reactive power
requirements for non-synchronous generators in section
9.6.1 of this LGIA (Order No. 827). A wind generating plant
to which this provision applies shall maintain a power
factor within the range of 0.95 leading to 0.95 lagging,
measured at the Point of Interconnection as defined in this
LGIA, if the Transmission Provider's System Impact Study
shows that such a requirement is necessary to ensure safety
or reliability. The power factor range standard can be met
by using, for example, power electronics designed to supply
this level of reactive capability (taking into account any
limitations due to voltage level, real power output, etc.)
or fixed and switched capacitors if agreed to by the
Transmission Provider, or a combination of the two. The
Interconnection Customer shall not disable power factor
equipment while the wind plant is in operation. Wind plants
shall also be able to provide sufficient dynamic voltage
support in lieu of the power system stabilizer and
automatic voltage regulation at the generator excitation
system if the System Impact Study shows this to be required
for system safety or reliability.
iii. Supervisory Control and Data Acquisition
(SCADA) Capability
The wind plant shall provide SCADA capability to
transmit data and receive instructions from the
Transmission Provider to protect system reliability. The
Transmission Provider and the wind plant Interconnection
Customer shall determine what SCADA information is
essential for the proposed wind plant, taking into account
the size of the plant and its characteristics, location,
and importance in maintaining generation resource adequacy
and transmission system reliability in its area.
Original Sheet No. 143
Exhibit 1 to Appendix A to LGIA
One-Line Diagram
800 ft
M
Point of
Change of
Ownership
Casper
Point of
Interconnection
Bar Nunn
Substation
30/40/50 MVA
Z = 8 %
Large
Generating
Facility
34.5 kV
600 V
3/3.5 MVA
Z=6%
3.11
MVA
DC/AC
9 inverters
total
M
M
Q0783
F2
9 inverters
F1
M
Q0801
12.5 kV
115 kVInterconnection
Customer’s
Interconnection
Facilities
Transmission
Providers’s
Interconnection
Facilities
Original Sheet No. 144
Exhibit 1 to Appendix B to LGIA
Scope of Work
Generating Facility Modifications
The following outlines the design, procurement,
construction, installation, and ownership of equipment at
the Interconnection Customer’s Generation Facility.
Interconnection Customer to be Responsible For
x Procure all necessary permits, lands, rights of way
and easements required for the construction and
continued maintenance of the Interconnection
Customer’s Generating Facility and collector
substation.
x Design, procure, construct, own and maintain the
Interconnection Customer’s Generating Facility and
associated collector substation. The collector
substation is to be constructed adjacent to (within
800’ between deadend structures) the POI substation.
x Procure any necessary agreements to allow the
Interconnection Customer to utilize the
Interconnection Facilities constructed and owned by
the Interconnection Customer that submitted the
Interconnection Request studied under queue position
Q0783.
x Design the Generating Facility with reactive power
capabilities necessary to operate within the full
power factor range of 0.95 leading to 0.95 lagging as
measured at the high side of the Interconnection
Customer’s GSU transformer. This power factor range
shall be dynamic and can be met using a combination
of the inherent dynamic reactive power capability of
the generator or inverter, dynamic reactive power
devices and static reactive power devices to make up
for losses.
x Design the generating facility such that it can
provide positive reactive support (i.e., supply
reactive power to the system) immediately following
the removal of a fault or other transient low voltage
perturbations or install dynamic voltage support
equipment. These additional dynamic reactive devices
shall have correct protection settings such that the
devices will remain on line and active during and
immediately following a fault event.
Original Sheet No. 145
x Equip the Generating Facility with automatic voltage-
control equipment and operate with the voltage
regulation control mode enabled unless explicitly
authorized to operate another control mode by the
Transmission Provider.
x Install, maintain and operate a functioning governor
or equivalent controls to ensure primary frequency
capability as required under FERC Order 842.
x Facilitate the provision of data to the Phasor
Measurement Unit to be installed as part of the
Interconnection Request assigned Q0801. The data must
be collected, held for a minimum of 90 days and be
able to stream to the Planning Coordinator for each
of the Generator Facility’s step-up transformers
measured on the low side of the GSU at a sample rate
of at least 60 samples per second and synchronized
within +/- 2 milliseconds of the Coordinated Universal
Time (UTC). Initially, the following data must be
collected:
o Three phase voltage and voltage angle (analog)
o Three phase current (analog)
Data requirements are subject to change as deemed
necessary to comply with local and federal
regulations.
x Operate the Generating Facility so as to maintain the
voltage at the Point of Interconnection, or other
designated point as deemed appropriate by
Transmission Provider, at a voltage schedule to be
provided by the Transmission Provider following
testing. Voltage will typically be required to
operate between 1.00 and 1.04 per unit.
x Operate the Generating Facility with a voltage droop.
x Have any Transmission Provider required studies, such
as a voltage coordination study, performed and provide
results to Transmission Provider. Any additional
requirements identified in these studies will be the
responsibility of the Interconnection Customer.
x Meet the Federal Energy Regulatory Commission (FERC)
and WECC low voltage ride-through requirements as
specified in the interconnection agreement.
x Provide test results to the Transmission Provider
verifying that the inverters for this Project have
been programmed to meet all PRC-024 requirements
rather than manufacturer IEEE distribution standards.
x Provide the Transmission Provider a standard model
from the WECC Approved Dynamic Model Library.
Original Sheet No. 146
x Design and construct the collector substation such
that the ground grid can be connected to Q0783
collector substation, the Q0801 collector substation
and the POI substation ground grids to support the
installation of a Transmission Provider owned and
maintained bus differential scheme. The Interconnect
Customer is responsible to ensure the ground grid
design supports safe step and touch potentials.
x Perform a CDEGS grounding analysis of the collector
substation location and provide results to the
Transmission Provider.
x Design, provide and install conduits between the
Interconnection Customer collector substation and the
marshalling cabinet installed just inside the fence
of the POI substation to support copper circuits
installed between the facilities.
x Provide and install a set of current transformers to
be fed into the bus differential relays with a maximum
current transformer ratio matching the maximum CT
ratio of the breakers at the POI substation. Provide
and install conduit and cabling to the POI substation
marshalling cabinet with these outputs.
x Design, provide and install control cabling (number
and size TBD) and hard wire the Interconnection
Customer’s source devices to the marshalling cabinet.
Replicated values are not acceptable.
x Provide the following data points from the collector
substation via hardwire to the marshalling cabinet
located in the POI substation. Please note that these
points are based on the most recent design information
provided by the Interconnection Customer and could
change based on final design:
x From the collector substation:
Analogs:
o Q0802 Net Generation MW
o Q0802 Net Generator MVAR
o Q0802 Interchange metering kWH
o 34.5 kV Real power F1
o 34.5 kV Reactive power F1
o 34.5 kV Real power F2
o 34.5 kV Reactive power F2
Status:
o 115 kV line breaker
o 34.5 kV breaker F1
o 34.5 kV breaker F2
Original Sheet No. 147
x Procure and install Transmission Provider approved H-
Frame structures for the Transmission Provider’s 115
kV instrument transformers. The installation location
shall be coordinated with the Transmission Provider.
x Install the Transmission Provider’s instrument
transformers.
x Install complete conduit and control cable provided
by the Transmission Provider from the Transmission
Provider’s instrument transformers to the POI
substation fence.
x Procure and install disconnect switches on both sides
of the Transmission Provider instrument transformers.
x Provide Transmission Provider unfettered and
maintained access to the Transmission Provider’s
instrument transformers.
x Establish permanent station retail service with the
Transmission Provider’s retail business unit for
power that will flow from the Transmission Provider’s
system when the Project is not generating.
x Provide any construction or backup retail service
necessary for the Project.
Transmission Provider to be Responsible For
x Provide the Interconnection Customer the designated
point at which the voltage is to be maintained and
the associated voltage schedule.
x Identify any necessary studies that the
Interconnection Customer must have performed.
x Identify the values to be stored in the PMU.
x Provide the Interconnection Customer the
specifications for the instrument transformer
structures.
x Procure and provide the Interconnection Customer a
set of 115 kV instrument transformers. Observe the
Interconnection Customer’s installation of the
instrument transformers.
x Provide the Interconnection Customer the control
cable to be installed from the Transmission Provider’s
instrument transformers to the POI substation fence.
x Coordinate with the Interconnection Customer on the
installation of control cable from the Transmission
Provider’s instrument transformers to the POI
substation fence.
Original Sheet No. 148
Point of Interconnection
The following outlines the design, procurement,
construction, installation, and ownership of equipment at
the Point of Interconnection.
Transmission Provider to be Responsible For
x Modify the bus differential relay system installed
for the Q0783 project for the connection to the
Interconnection Customer’s collector substation.
x Develop and implement new settings for the line relays
to monitor the voltage and frequency of the
Interconnection Customer’s Generating Facility.
x Modify the current ratio of the main Interconnection
Customer interchange meter.
x Design, procure and install a set of 115 kV revenue
metering equipment including metering panels, primary
and secondary revenue quality meters, test switches,
junction boxes and secondary metering wire.
x Install control cable from the metering panels in the
POI substation control building to the substation
fence and splice to the control cable installed by
the Interconnection Customer. The Transmission
Provider will own all control cable from the POI
substation to the Interconnection Customer’s
collector substation.
x Procure and install the required communications
equipment to establish an Ethernet connection for
retail sales and generation accounting via the MV-90
translation system.
Other
The following outlines the design, procurement,
construction, installation, and ownership of equipment
past the Point of Interconnection.
Transmission Provider to be Responsible For
x System Operations Centers
o Update databases to include the Interconnection
Customer’s Generating Facility, Interconnection
Facilities and Network Upgrades.
Original Sheet No. 149
Exhibit 1 to Appendix C to LGIA
Facility Connection Requirements for Transmission Systems