1 STATUTORY OR OTHER AUTHORITY: The Washington utilities and transportation commission (commission) takes this action under Notice No. WSR 07-14-150, filed with the code reviser on July 5, 2007. The commission brings this proceeding pursuant to RCW 80.01.040 and 80.04.160.

     2 STATEMENT OF COMPLIANCE: This proceeding complies with the Administrative Procedure Act (chapter 34.05 RCW), the State Register Act (chapter 34.08 RCW), the State Environmental Policy Act of 1971 (chapter 43.21C RCW), and the Regulatory Fairness Act (chapter 19.85 RCW).

     3 DATE OF ADOPTION: The commission adopts this rule on the date this order is entered.

     4 CONCISE STATEMENT OF PURPOSE AND EFFECT OF THE RULE: RCW 34.05.325(6) requires that the commission prepare and provide to commenters a concise explanatory statement about an adopted rule. The statement must include the commission's reasons for adopting the rule, a description of any differences between the version of the proposed rules published in the register and the rules as adopted (other than editing changes), along with a statement of the reasons for any differences, a summary of the comments received regarding the proposed rule changes, and the commission's responses to the comments, reflecting the commission's consideration of them.

     5 The commission includes a discussion of those matters in its rule adoption order. To avoid unnecessary duplication, the commission designates the discussion in this order as its concise explanatory statement, supplemented where not inconsistent by the staff memoranda, which are available on the commission's web pages at http://www.wutc.wa.gov/060649. Together, the documents provide a complete and concise explanation of the agency's actions and its reasons for taking those actions.

     6 The rules establish standards for interconnection of consumer-owned power generation facilities up to 20 megawatts (MW) capacity to the delivery systems of electric utilities subject to commission jurisdiction. These regulations include standards for applications for interconnection, processing of such applications, technical and engineering standards for interconnections, safety standards, insurance and liability provisions, and other provisions.

     7 The commission is adopting this rule to advance state policy to encourage generally the use of distributed generation and particularly renewable energy technologies.¹ In addition to this general state policy, the commission's rule-making inquiry considered the following as pertinent policy context:

•	The requirement in RCW 82.16.120 that uniform state-wide interconnection standards be in place before certain tax credits for small-scale renewable projects are available.
•	Amendments to chapter 80.60 RCW enacted in 2006 to increase the generator capacity ceiling for net metering from 25 kW to 100 kW.2
•	The requirement under the 2005 federal Energy Policy Act that state utility regulatory agencies consider adoption by August 8, 2008, of interconnection standards pursuant to the Public Utility Regulatory Policies Act (PURPA).3
•	The federal Energy Regulatory Commission's (FERC) adoption of a rule governing interconnection of small generators to delivery facilities over which it holds jurisdiction.4

     8 Section 1 of SSB 5101, chapter 300, Laws of 2005, states that "the legislature intends to provide incentives for the greater use of locally created renewable energy technologies." SSB 5101 also provides that utilities, in return for a credit against the public utility excise tax, may supply an incentive payment to consumers for consumer-generated electricity from renewable energy systems. However, the incentive payments created by section 3 of SSB 5101, now codified at RCW 82.16.120(2), are only available to customers connected to the distribution system of a light and power business if "uniform standards for interconnection to the electric distribution system" are in effect for utilities serving 80% of total customer load in the state. The commission's rule adoption will encourage small-scale, customer-owned distributed generation facilities by establishing uniformity among the investor-owned utilities regarding technical and process standards for interconnection of such facilities to certain utility delivery systems.

     9 Chapter 80.60 RCW was amended in 2006 to increase the maximum capacity for customer-owned generation qualifying for net metering from 25 kW to 100 kW. Chapter 480-108 WAC establishes the interconnection requirements that apply to customer-owned, net-metered generation. Adopting this rule addresses the change in chapter 80.60 RCW by increasing the capacity of consumer-owned generation covered under chapter 480-108 WAC.

     10 The federal Energy Policy Act of 2005 included amendments to Section 111(d) of PURPA (16 U.S.C. 2621(d)) that require the commission to consider and determine by August 8, 2008, whether to establish standards for interconnection. The commission's inquiry and adoption of this rule complies with this requirement.

     11 The FERC has adopted requirements for utility interconnection of generation facilities up to 20 MW when those facilities are to be interconnected to delivery facilities that fall within its jurisdiction. The commission is adopting rules governing interconnection of generation facilities up to 20 MW when those facilities are to be interconnected to delivery facilities within its jurisdiction and outside of FERC's jurisdiction. For generation facilities with generating capacity greater than 300 kW, the commission's rules refer to the FERC requirements in order to both "fill the gap" and maintain consistency of standards for larger generation facilities.

     12 REFERENCE TO AFFECTED RULES: This order amends certain sections and adds new sections to chapter 480-108 WAC, Electric companies -- Interconnection with electric generators.

     13 This order amends and adopts the following sections of Washington Administrative Code:

     Amend WAC 480-108-001 Purpose and scope.

     Amend WAC 480-108-005 Application of rules.

     Amend WAC 480-108-010 Definitions.

     Adopt WAC 480-108-015 Scope of Part 1.

     Amend WAC 480-108-020 Technical standards for interconnection.

     Amend WAC 480-108-030 Application for interconnection.

     Adopt WAC 480-108-035 Model interconnection agreement, review and acceptance of interconnection agreements and costs.

     Amend WAC 480-108-040 General terms and conditions of interconnection.

     Amend WAC 480-108-050 Certificate of completion.

     Adopt WAC 480-108-055 Dispute resolution.

     Amend WAC 480-108-060 Required filings -- Exceptions.

     Adopt WAC 480-108-065 Cumulative effects of interconnections with a nameplate capacity rating of 300 kW or less.

     Adopt WAC 480-108-070 Scope of Part 2.

     Adopt WAC 480-108-080 Interconnection service tariffs.

     Adopt WAC 480-108-090 Alternative interconnection service tariff.

     Adopt WAC 480-108-100 Dispute resolution.

     Adopt WAC 480-108-110 Required filings -- Exceptions.

     Adopt WAC 480-108-120 Cumulative effects of interconnections with a nameplate capacity rating greater than 300 kW but no more than 20 MW.

     Amend WAC 480-108-999 Adoption by reference.

     14 PREPROPOSAL STATEMENT OF INQUIRY AND ACTIONS THEREUNDER: The commission filed a preproposal statement of inquiry (CR-101) on June 7, 2006, at WSR 06-12-104. The statement advised interested persons that the commission intended to examine whether new or modified regulations are needed to govern aspects of investor-owned electric utility operations for which new federal standards are included in the Energy Policy Act of 2005. These new federal standards address: (1) Net-metering, (2) fuel sources, (3) fossil fuel generation efficiency, (4) smart metering, and (5) interconnection. With regard to interconnection, the statement advised that the commission's inquiry could lead to proposed amendments to chapter 480-108 WAC.

     15 ADDITIONAL NOTICE AND ACTIVITY PURSUANT TO PREPROPOSAL STATEMENT: The commission informed persons of its inquiry into this matter by providing notice of the subject and the CR-101 to all persons on the commission's list of persons requesting such information pursuant to RCW 34.05.320(3), the commission's lists of all registered electric and gas companies, persons on the list of persons that received notices in the commission's previous interconnection rule making in Docket UE-051106, persons interested in electric and gas issues, as well as to attorneys representing these companies. The commission posted the relevant rule-making information on its internet web site at http://www.wutc.wa.gov/060649. In its notice, the commission posed four questions regarding electrical interconnection and invited interested persons to respond and make proposals in writing by August 11, 2006. The four questions were:

     (1) Should chapter 480-108 WAC be amended to include customer-owned facilities up to 100 kW? If so, would the increase to facility size necessitate any other changes to the rule?

     (2) Is there another "break-point" to which it would be appropriate for practical reasons to increase the scope of chapter 480-108 WAC (e.g., 300 kW, 500 kW)? If so, would the increase in facility size necessitate any other changes to the rule?

     (3) Should interconnection of facilities larger than those covered currently by chapter 480-108 WAC be governed by a standard rule? If so, would the FERC's Small Generator Interconnection Rule serve as a good model?⁵ If so, how should the FERC rule be adapted to Washington circumstances?

     (4) If interconnection of facilities larger than those covered currently under chapter 480-108 WAC should not be governed by a standard rule, what principles should apply to such interconnections?

     The commission also welcomed any comprehensive recommendations or proposals that stakeholders or utilities might propose for state-wide standards for interconnection.

     16 Pursuant to the notice, the commission received written comments from the following companies, organizations, and interested persons: Industrial Customers of Northwest Utilities (ICNU), Puget Sound Energy (PSE), the Washington Load-Serving Utilities (Utilities)⁶, Avista Utilities, Vote Solar Initiative, PacifiCorp and the U.S. Environmental Protection Agency (U.S. EPA).

     17 The utilities proposed a set of standards that they jointly developed and recommended as a framework for establishing interconnection standards for facilities up to nameplate capacity of 300 kW to be used by both commission-jurisdictional utilities and public utilities that are not jurisdictional to the commission.⁷ The utilities also stated that, given the complexity of interconnecting generation in excess of 300 kW to utility distribution systems, each utility should develop standards that take into account each utility's unique circumstances. The groups' interconnection standards include a set of principles they contend should govern each utility's standards for facilities greater than 300 kW. According to the joint comments, these interconnection standards are intended to insure the safe and reliable operation of the distribution system.

     18 The commission convened a workshop on December 15, 2006, to discuss interconnection issues and the utilities' proposal and eight related questions:

     (1) What criteria should be used to distinguish customers eligible to apply for interconnection to a utility's distribution system from customers eligible to apply for interconnection to the utility's transmission system under FERC rules?

     (2) Should standards governing distribution-level interconnections be limited in application to net-metered facilities and if so, why?

     (3) Should standards governing distribution-level interconnections apply to interconnection of qualifying facilities (QF) under the PURPA and if not, why not?

     (4) Do the engineering requirements and limitations relevant to distribution-level interconnections up to 300 kW vary among utility distribution systems? If so, what characteristics of the distribution system cause the engineering requirements and limitations to vary? How might this be addressed via rule?

     (5) Do the engineering requirements and limitations relevant to distribution-level interconnections up to 2 MW vary among utility distribution systems? If so, what characteristics of the distribution system cause the engineering requirements and limitations to vary? How might this be addressed via rule?

     (6) Should the requirement of an external disconnect switch contained in chapter 480-108 WAC be retained?

     (7) Should utilities be allowed the option to require an interconnecting customer to bear the cost of a dedicated distribution transformer if one is deemed necessary by the utility?

     (8) Given the commission's general authority to address disputes (chapter 480-107 WAC) what, if any, additional dispute resolution processes are needed to apply specifically to generator interconnection?

     19 The Cogen Coalition, Clark County PUD, Grant County PUD, International Brotherhood of Electrical Workers (IBEW) and department of community, trade and economic development attended the workshop in person and another seven persons attended by phone due to inclement weather. Persons participating on the phone included representatives of: Tacoma Power, PacifiCorp, Benton County REA, ICNU, Avista Corp., U.S. EPA, and Inland Power and Light. PSE, Benton REA and Mr. Parker Holden submitted written responses to the workshop questions.

     20 Drawing on the initial written comments received and the workshop discussion and written responses to the workshop questions, the commission circulated on January 25, 2007, a first draft rule for discussion and comment. The commission received detailed written comments and suggestions on the discussion draft on February 28, 2007, from: Avista and PSE commenting jointly, PacifiCorp, Northwest Combined Heat and Power (NWCHP) Center, United States Combined Heat & Power Association (USCHP), Allied Electric, LLC. (Allied), ICNU, U.S. EPA, and IBEW Local Union 77.

     21 Most comments on the first draft focused on procedural aspects of interconnection service with technical aspects of the rule's requirements drawing very little comment. In particular, persons representing the interests of potential combined heat and power and other interconnection customers raised a number of concerns regarding the application and review process, as well as cost assignment and dispute resolution. These interests advocated for better balance in the relationship between interconnection customers and utilities. The utilities sought more clarity in the requirements as well as specific language to prohibit "back-feeding" in distribution networks and authority to require remotely accessible metering.

     22 Considering the comments and recommendations made on the first draft, the commission circulated on April 30, 2007, a second draft rule for discussion and comment. On May 25, 2007, the commission received written comments and suggestions from: Avista and PSE filing jointly, PacifiCorp, NWCHP Center, USCHP, Allied, and ICNU.

     23 Detailed comments on the second discussion draft focused principally on further refinements and clarifications to the application, study and review, and cost assignment processes. Potential interconnection customers advocated that the costs of interconnection should be shared between the utility and the interconnection customer, if other customers on the utility's system benefit from the interconnection. In the alternative, the interconnection customers sought protection against excessive interconnection fees through the requirement that charges be cost-based and follow generally accepted engineering practice. In addition, the interconnection customers recommended that certain rule language be made more specific and that dispute resolution should include cost-assignment. Utilities sought clarification of how the rule would apply to net metering and certain distribution grid networks.

     24 NOTICE OF PROPOSED RULE MAKING: After considering and addressing the comments and recommendations received on the second discussion draft, the commission filed a notice of proposed rule making (CR-102) on July 5, 2007, at WSR 07-14-150, scheduling the matter for oral comment and adoption at 1:30 p.m., Wednesday, August 15, 2007, in the Commission's Hearing Room, Second Floor, Richard Hemstad Building, 1300 South Evergreen Park Drive S.W., Olympia, WA. The notice provided interested persons the opportunity to submit written comments to the commission by August 2, 2007.

     25 COMMENTERS (WRITTEN COMMENTS): The commission received written comments from ICNU and the public counsel section of the Washington office of the attorney general (public counsel) both supporting adoption of the rule as proposed. PacifiCorp filed written comments generally supporting adoption of the rule as proposed while advocating clarification of three aspects of the proposed rule. Avista filed written comments prior to the hearing supporting the rule as proposed and agreeing with PacifiCorp's requested clarifications. No other parties submitted formal written comments by August 2, 2007, in response to the CR-102 proposed rules.

     26 RULE-MAKING HEARING: The commission considered the rule proposal for adoption, pursuant to the notice in WSR 07-14-150, at a rule-making hearing before Chairman Mark H. Sidran, Commissioner Patrick J. Oshie, and Commissioner Philip B. Jones. Mr. Les Bahls of PacifiCorp testified in support of the proposed rule. Mr. David Van Holde, representing King County, and Mr. Chuck Collins, representing Allied, testified expressing concerns with several aspects of the proposed rules. Chairman Sidran offered any person at the hearing an opportunity to submit further written comments by August 22, 2007.

     27 The commission received additional written comments by August 22, 2007, from Allied and the Northwest Energy Coalition (NWEC). In addition, the commission received letters from Representative Jeff Morris and Representative Zack Hudgins expressing concerns regarding the effect of proposed WAC 480-108-020 (2)(e) on consumer opportunity to participate in net-metering programs and on uniformity among interconnection standards.

     28 COMMISSION DISCUSSION AND RESPONSE TO COMMENTS: Chapter 480-108 WAC requires electric utilities under commission jurisdiction to offer customers a new interconnection service that the utilities would not otherwise be required, or authorized, to offer. Our task is to establish rules governing this new service that advance Washington state's policies encouraging net-metering and uniformity in standards addressing interconnection of customer-owned generation, while at the same time fulfilling our longstanding statutory obligation to ensure safe and reliable electric utility service for all customers at prices that are just and reasonable. With that task in mind, we turn to the comments and recommendations received regarding the proposed rules.

     29 Application of the Proposed Rules to PURPA Qualifying Facilities: PacifiCorp and Avista ask us to clarify that proposed WAC 480-108-001(4) does not govern the interconnection of PURPA qualifying facilities. The rule as proposed states "This chapter does not govern electric company services to PURPA qualifying facilities pursuant to chapter 480-107 WAC." The intent of the rule was to state that all services to qualifying facilities addressed by chapter 480-107 WAC, including interconnection, are governed by that chapter and not by chapter 480-108 WAC. We have clarified the proposed rule text as requested.

     30 Metering for Net-Metered Systems: PacifiCorp and Avista ask [asked] us to clarify that proposed WAC 480-108-040 (7)(a) applies only to net-metered systems that qualify under chapter 80.60 RCW. WAC 480-108-040 (7)(a) is qualified by the language "as set forth in chapter 80.60 RCW." Thus, it is clear that the proposed rule encompasses only systems qualifying under chapter 80.60 RCW. We do not find that the text of the proposed rule requires modification to clarify this intent.

     31 Study of Cumulative Effects of Interconnection: PacifiCorp and Avista ask [asked] us to clarify that the requirements set out in proposed WAC 480-108-065 and 480-108-120, may be fulfilled jointly with a distribution system planning study that includes interconnections of all capacity levels. The two proposed rules require, respectively, recordkeeping and study of the effects of interconnections from zero to 300 kW of nameplate capacity and the same for interconnections greater than 300 kW up to 20 MW of nameplate capacity. Although there are separate rules governing interconnection up to 300 kW and those greater than 300 kW, the rule language does not require separate studies. In appropriate circumstances, a single study may be used to meet the requirements of both rules so long as records are sufficiently detailed to identify the number, date of interconnection, and cumulative nameplate capacity within each of these two generation categories.

     32 Codes and Standards: At WAC 480-108-020 (1)(f)(i) the proposed rule deleted the standards of the Institute of Electrical and Electronics Engineers (IEEE) from the list of codes and standards with which electric company interconnections must comply. In addition, this section adds a utility's "written electricity service requirement" to the list of such codes and standards.

     33 King County, Allied Electric, and NWEC recommend that IEEE should be included in the list of codes and standards. They contend that IEEE publishes the most important standard regarding interconnection of distributed electrical generation - IEEE Standard 1547 - which, Allied points out, is referenced elsewhere in WAC 480-108-020.

     34 We agree with the commenters that IEEE standards are important to interconnection of customer generation to utility electric systems. IEEE's Standard 1547 is referenced throughout the proposed rules where it specifically applies and IEEE Standard 1547 is adopted by reference in WAC 480-108-999(3). Deletion of IEEE from WAC 480-108-020 (1)(f)(i) appears to have been a drafting error. The text of the proposed rule, as adopted here, includes IEEE standards in the list of codes and standards with which the electric company interconnections must comply.

     35 King County expresses a concern that the codes and standards listed in WAC 480-108-020 (1)(f)(i) include those of the Western Electricity Coordinating Council (WECC) and National Electricity Reliability Corporation (NERC). The county contends that these requirements are regional as opposed to national or international in scope and may represent regional issues or interests that do not serve the goal of promoting an industry-wide consistency that will assist equipment manufacturers to meet technical requirements.

     36 Utilities must comply under federal law with reliability criteria established by the WECC and NERC as overseen by the FERC. The codes and standards of these entities are necessary and appropriate to include in WAC 480-108-020 (1)(f)(i).

     37 Allied, King County and NWEC recommend that compliance with "the electric company's written electric service requirement, if any" should be deleted from WAC 480-108-020 (1)(f)(i). They argue that a utility's service requirements could contain unique or utility-specific provisions that might override the interconnection requirements and allow a utility to avoid offering a standardized service. This result, they argue, is inimical to the objective of uniformity in the standards governing interconnection.

     38 The intent of the proposed rule is to require that electric company interconnections comply with the general provisions and requirements included in the electric company's tariff, usually in a section entitled "general rules and regulations" or similar. These rules and requirements are approved by the commission and include many aspects of service not specifically addressed by proposed chapter 480-108 WAC. Examples include such topics as restoration of service, credit terms and meter testing. Where electric company services are provided under a specific tariff pursuant to commission rules, as will be the case for interconnection of customer-owned generation, the terms and conditions of the tariff shall control in the event of any conflict with general rules and regulations.

     39 To avoid any ambiguity, we have addressed the concern raised by the commenters by clarifying the rule text to make clear that the written service requirements referenced in this section are those approved by the commission.

     40 Prohibition on Reverse Current Flow Through Network Protectors: Proposed WAC 480-108-020 (2)(e) states:

     (e) The electrical company must verify on the basis of evidence provided by the interconnection customer that the generating facility will never cause reverse current flow through the electrical company's network protectors.

     41 King County comments that this provision applies only to secondary network distribution systems. King County observes that the provision may cause some confusion because it appears in the rule without a "header" or some other introduction to make clear that it only applies to these circumstances.

     42 Allied comments that this provision is "prohibitive" because it does not reflect cases where a utility has approved a grid or spot network interconnection. Allied recommends qualifying the provision with the clause "unless approved by the electrical company through net metering or some other commission-approved power exchange contract."

     43 Representative Jeff Morris expresses a concern that this provision will prohibit net-metering customer-generators from exporting electrical power generated by a net-metering system connected to the grid. He requests that the proposed language be modified to ensure that the opportunity to net meter for small and mid-size distributed generation in Washington is not compromised.

     44 Representative Zack Hudgins expresses a concern that this provision will prohibit net-metering customer-generators from exporting electrical power generated by a net-metering system connected to the grid. Representative Hudgins expresses the opinion that this language would undermine any net metering in our state and undermine the legislation creating net metering because net metering "must reverse current flow from a small generator into the grid." He acknowledges that the language may be prompted by safety concerns and recommends that the provision be clarified.

     45 The prohibition on reverse current flow through network protectors is not a newly proposed rule, it exists in current WAC 480-108-020 (2)(e). The application of the rule is limited to distribution system configurations that include network protectors, so called "network distribution systems." These systems present unique engineering and operational challenges in terms of safety and reliability, and are few in number.

     46 Network distribution systems are electrical system designs used by distribution utilities to serve dense, usually urban, load centers with enhanced reliability. The systems accomplish enhanced reliability by serving network elements (i.e., segments of customer load) from multiple primary circuits (i.e., distribution substations). Service reliability is enhanced because in the event of an outage on one primary circuit, the network element can continue to be served by a second, or even a third, primary feeder. This design depends on the principle that the network element can be isolated from any of its multiple primary feeders in the event of a fault on that feeder in order to ensure that one primary fault is not fed by, and does not produce cascading faults on, the other primary feeders. The job of isolating the network elements is performed by the "network protectors." These are essentially one-way circuit breakers that open in the event of a primary circuit fault to prevent reverse current flow into the faulted feeder circuit.⁸

     47 It is well recognized by engineering and standard-setting bodies that network distribution systems present special problems and warrant special protections to ensure that interconnections do not present hazards to safety or reliability. But while they warrant special treatment, it is also true that such networks constitute a very limited proportion of utility service territories. One example is Seattle City Light's service in downtown Seattle. Use of such networks on the investor-owned utility systems is rare. PSE has only one example of network service: Southcenter Mall in Tukwila is served with a spot distribution network. PacifiCorp has no customers in Washington served by a distribution network. Avista has approximately 20 spot distribution networks serving large office buildings and shopping centers in downtown Spokane. These networks serve only about 3% of Avista's load.⁹

     48 King County's comment indicates that the proposed rule does not make clear that this provision is limited to network distribution systems. These systems require special treatment to ensure safety and reliability, but such protections will not adversely affect the broad opportunities for net metering and interconnection of customer-owned generation because the systems are rare and represent a very small proportion of electric company service territories.

     49 To avoid any confusion or ambiguity as to the necessity and application of WAC 480-108-020 (2)(e) we have clarified the text of the rule as follows to make clear that it applies only to network distribution systems and is intended only to protect safety and reliability:

     The electrical company must verify on the basis of evidence provided by the interconnection customer that a generating facility interconnected to a grid network distribution system or a spot network distribution system will not impair public safety or quality of service to the electrical company's other customers as a result of reverse current flow through the electrical company's network protectors.

     50 Metering. Proposed rule WAC 480-108-040 (7)(b) states:

     (b) Production metering: The electrical company may require separate metering, including metering capable of being remotely accessed, for production. This meter will record all generation produced and may be billed separately from any net metering or customer usage metering. Costs associated with production metering will be paid by the interconnection customer.

     51 King County comments that by allowing the utility to require "remotely accessed" meters the proposed rule could make small-scale renewable projects prohibitively expensive.

     52 Allied recommends that the utility should not be allowed to require remotely accessible metering and that all metering costs should be the responsibility of the utility and not the interconnection customer. Allied contends that requiring interconnection customers to pay for production metering is "discriminatory" because other customers are not required to install such metering.

     53 NWEC comments that more clarity is necessary regarding the "meter parameters" a utility may require so that future conflicts and uncertainty are avoided. The NWEC recommends that the provision allowing the utility to require production metering should be eliminated because it could increase costs and is unnecessary.

     54 Requiring interconnection customers to bear the cost of production meters is not unusual. In fact, a clear majority of states that have adopted interconnection rules, and the FERC, require that the cost of production metering be borne by interconnection customers.¹⁰ This is also the case in existing WAC 480-108-040 (7)(b). Many of the standards in other states allow the utility to require remotely accessible meters, subject to some constraints and utility proof that the added capability is necessary.

     55 Allied's contention that requiring interconnection customers to pay for production metering when other customers are not required to pay for meters is unavailing. Unlawful discrimination may exist when "similarly situated" customers are treated differently. But, interconnection customers are not similarly situated to ordinary retail customers whose meter costs are borne by the utility because interconnection customers impose different costs and different service requirements on the utility than do retail customers.¹¹

     56 In response to the concern that remotely accessible metering could be unnecessarily expensive, we have modified the text in the proposed rule to clarify that a utility may only require an interconnection customer to pay for remotely accessible metering when such capability is necessary to protect safety or reliability.

     57 Cost Responsibility for Modifications to Interconnection Customer Facilities made Necessary by Utility Distribution System Modifications. Proposed WAC 480-108-040(14) states:

     The interconnection customer is responsible for costs associated with future upgrades or modification to its generating facility or interconnection facilities made necessary by modifications the electrical company makes to its electric system.

     58 King County, Allied and NWEC recommend that interconnection customers should not be responsible for costs to their systems made necessary by a utility's modification of its distribution system.

     59 King County contends that this provision will preclude investment in distributed generation because it introduces uncertainty. King County recommends that the utility should pay the interconnection customer for any modifications it must make to accommodate decisions the utility makes regarding its system.

     60 NWEC states that it believes post-interconnection changes made "to the utility system" should be covered by the utility. NWEC's comment appears to be off the point. The provision in question addresses post-interconnection changes to the customer's system, not the utility's system.

     61 Allied contends that requiring the interconnection customer to bear the cost of modifying its system is "discriminatory." Allied recommends that these costs be shared by the utility and the customer, but offers no suggestion for a process to determine such sharing.

     62 A customer's right to interconnect to the utility's facilities is not unqualified. The specific and general requirements contained in existing and proposed chapter 480-108 WAC specify the conditions a customer's facilities must meet to be safe and otherwise compatible with the utility system with which the customer interconnects. Changes the utility makes to its system may change the conditions that the interconnection must meet in order to qualify for continued service. Absent a change in the qualifications a customer must meet for service, there is no reason additional cost responsibility should shift to the utility simply because the utility has found it necessary to modify its facilities after an interconnection service has begun.

     63 Allied's contention about discrimination is again misplaced, because the qualifications an interconnection customer must meet are substantially different than those required of an ordinary retail customer.

     64 The provision of the proposed rule in question is included in existing WAC 480-108-040(13). We understand that substantially the same provision is included in the interconnections standards of many municipal utilities in Washington. State policy favors uniformity in the rules and standards governing interconnections.¹² Where uniformity in standards exists, we should not depart without good reason. In this instance, we do not find good reason to depart from the uniformity existing among the interconnection standards. The provision is appropriate and should not be changed.

     65 Restriction of Interconnection on Certain Feeders, Circuits, or Networks. Proposed WAC 480-108-040(11) reads:

     The electric company also may restrict or prohibit new or expanded interconnected generating capacity on any feeder, circuit or network if engineering, safety or reliability studies indicate a need for restriction or prohibition.

     66 King County and NWEC express concern that this provision may give the electric company too much flexibility to deny interconnections. King County asks who will determine what evidence supplied by the studies is sufficient to allow restriction of interconnection and who determines that standard. NWEC recommends that any decision to restrict interconnection under this provision should be subject to public review and approval of the commission.

     67 The dispute resolution provision at WAC 480-108-055 is available for any interconnection customer to dispute an electrical company's "denial or rejection" of an application for interconnection. In response to the concern raised by King County and NWEC, we clarify that the engineering, safety or reliability studies must establish, rather than indicate, a need for restrictions and we emphasize that the dispute resolution process is appropriate for resolving any conflicts regarding restrictions imposed under this section.

     68 Interconnection Service Tariffs for Facilities Between 300 kW and 20 MW: WAC 480-108-080 requires electric companies to file interconnection service tariffs "equivalent in all procedural and technical respects" with the interconnection service the company is required to offer under its FERC tariff. WAC 480-108-090 allows a utility to file an alternative to its FERC tariff if it can demonstrate the provisions of the FERC tariff "will impair service adequacy, reliability, or safety or will otherwise be incompatible with its electric system."

     69 Allied argues that allowing utilities to file "separate interconnection procedures" does not "comprise a state standard" as intended by the PURPA amendments in the Energy Policy Act. The commission's authority is limited to investor-owned utilities. Accordingly, the commission is not empowered to establish a "state standard."

     70 We recognize that practical uniformity among utilities and states regarding interconnection standards has value for promoting development of distributed generation resources. The proposed rules promote uniformity in several ways.

     71 First, even though the rules would apply only to investor-owned utilities, they include a section addressing the category of facilities from zero to 300 kW of nameplate capacity in order to preserve as much as possible of a consensus proposal made jointly by the investor-owned and public utilities. This category is also intended to preserve the consistency that exists among the interconnection standards currently in force.

     72 Second, the 300 kW to 20 MW provisions recognize that investor-owned utilities are required to offer interconnection service to grid facilities that are under FERC jurisdiction. The proposed rules require utilities to file interconnection service tariffs equivalent "in all procedural and technical respects" with the FERC tariffs in order to maintain uniformity in UTC-jurisdictional tariffs among the investor-owned utilities and between UTC- and FERC-jurisdictional tariffs. Indeed, reference to the FERC standards will help advance uniformity both in this state and with utilities in other states.

     73 The proposed rules allow a utility to file an interconnection service tariff for 300 kW to 20 MW facilities that differs from the FERC tariff, but only if the utility proves the need for the variation. Any such variation will require commission approval.

     74 NWEC argues that the opportunity to file an alternative tariff under WAC 480-108-090 allows a utility to either "not comply or establish a different standard." According to NWEC this is "inappropriate" and has no place in an interconnection standard because it is counter to a common standard across the state.

     75 While the proposed rules establish a clear priority for the FERC standards, the alternative path is included in WAC 480-108-090 for two important reasons. First, the FERC standards may not have anticipated all circumstances affecting distribution systems, since FERC is most familiar with engineering at the transmission rather than distribution system level. Second, if some shortcoming or problem surfaces with the FERC standard, utilities need the ability to address the problem while continuing to offer interconnection service.

     76 Disconnect Switch. Proposed WAC 480-108-020 (2)(a) reads in relevant part:

     The electrical company must verify that the interconnection customer has furnished and installed on its side of the meter a UL-approved safety disconnect switch that can fully disconnect the interconnection customer's generating facility from the electrical company's electric system.

     77 King County comments that requiring a disconnect switch for very small systems is costly and could discourage investment that would otherwise be made.

     78 This provision exists in current WAC 480-108-020 (2)(a). The question whether to retain the requirement of a disconnect switch was addressed at the December 15, 2006, rule-making workshop. All participating parties and those submitting written comments on the workshop questions recommended that the requirement be retained. In particular, IBEW strongly supported retaining the disconnect switch requirement to protect worker safety.

     79 The proposed rule allows the utility to waive this requirement if customer interconnection facilities perform disconnection internally. This is typically the case for the inverter-type facilities used by most small scale projects.

     80 We will make no changes to the proposed text of WAC 480-108-020 (2)(a), but we state our expectation that utilities will exercise discretion regarding this requirement, while at the same time ensuring that worker safety is not compromised. Any conflicts that arise under this requirement may be resolved under the dispute resolution processes provided in WAC 480-108-055.

     81 Ability of the electric company to deny an interconnection request as not feasible. Proposed WAC 480-108-035(4) states in relevant part:

     If the studies determine that the interconnection is not feasible, the electrical company will provide notice of the denial to the interconnection customer and the reasons for the denial.

     82 Allied asserts that "all generator interconnection requests under 20 MW are "feasible."["] Allied observes that the studies and costs will be detailed as a part of the supplemental review process and recommends that the interconnection customer should be able to choose whether to go ahead with a project.

     83 WAC 480-108-055 and 480-108-100 provide that any interconnection customer can dispute a utility's denial of an interconnection request. In this case, the studies would produce the information regarding the necessary facilities and cost and the customer could argue that the project is feasible as long as the customer is willing to pay the cost.

     84 Third-party cost estimates. Proposed WAC 480-108-035(4) states in relevant part: Supplemental review process. If the electrical company determines that additional studies are required to determine the feasibility of the interconnection, the electrical company must notify the interconnection customer within thirty business days of when the application is deemed complete and provide the interconnection customer a form of agreement that includes a description of what studies are required and a good faith estimate of the cost and time necessary to perform the studies.

     85 NWEC recommends that an interconnection customer should be allowed to consider a third-party estimate of costs for the necessary studies along with the utility's cost estimate.

     86 We agree that consideration of cost estimates from third-parties willing and qualified to do the engineering studies found necessary by the utility would be beneficial. We have modified the text of proposed WAC 480-108-035(4) to provide that an interconnection customer may respond to the utility's good faith estimate of cost with a third-party cost estimate and proposal to accomplish the study work required by the utility. Should the utility and customer not reach agreement on study costs, the dispute resolution provisions at WAC 480-108-055 and 480-108-100 specifically include "electrical company study costs."

     87 Equipment precertification list. Proposed WAC 480-108-020(4) reads in relevant part:

     Electrical companies may require interconnection customers to pay for testing and approval of the equipment proposed to be installed to ensure compliance with applicable technical specifications, in their most current approved version.

     88 Allied recommends that an "equipment precertification" list be developed by either a technical standards working group or a state-sanctioned third-party. Allied argues that such a list will minimize the need for redundant testing and facilitate interconnection by informing customers and utilities of what equipment is acceptable.

     89 We agree in principle that development of an equipment precertification list might well improve efficiency by eliminating the need for redundant studies. However, establishing a state-wide, continuing process to develop such a list to which all utilities in the state would defer is beyond the practical scope of our rule making. To avoid redundant studies and promote consistent and fair treatment of interconnection customers, we have qualified a utility's authority to require interconnection customers to pay for testing and approval of the equipment. When a utility has previously studied and approved equipment pursuant to WAC 480-108-020(4) it may not require additional or redundant studies of the same equipment without demonstrating why the additional study is necessary.

     90 We acknowledge that a precertified list of approved equipment may be a good idea and encourage the utilities to work together and with the industry to establish a list to which each utility will defer. The proposed rule gives utilities the discretion to require equipment testing. We expect utilities will exercise this discretion in as cost-effective a way as possible.

     91 COMMISSION ACTION: After considering all of the information regarding this proposal, the commission finds and concludes that it should adopt the rules in the CR-102 notice at WSR 07-14-150, with the modifications discussed in this order.

     92 CHANGES FROM PROPOSAL: The commission adopts the proposal noticed at WSR 07-14-150 with minor editorial changes and the following changes to text necessary for clarification and response to comments as discussed above. In addition, in light of the time required for the additional process opportunities the commission provided stakeholders following the adoption hearing in this docket, the date by which electrical companies must file tariffs under WAC 480-108-060, 480-108-080, and 480-108-090 is set at January 31, 2008, instead of December 31, 2007, as previously stated in the proposed rules.

     93 For clarification, proposed WAC 480-108-001(4) is modified to read as follows:

     (4) This chapter does not govern interconnection of, or electrical company services to, PURPA qualifying facilities pursuant to chapter 480-107 WAC.

     94 For clarification, proposed WAC 480-108-020 (1)(f)(i) is modified to read as follows:

     (i) Code and standards. All interconnections must conform to all applicable codes and standards for safe and reliable operation. Among these are the National Electric Code (NEC); National Electric Safety Code (NESC); the standards of the Institute of Electrical and Electronics Engineers (IEEE); standards of the North American Electric Reliability Corporation (NERC); the standards of the Western Electricity Coordinating Council (WECC); American National Standards Institute (ANSI); Underwriters Laboratories (UL) standards; local, state and federal building codes, and the any electrical company's written electric service requirement, if any. approved by the commission. Electrical companies may require verification that an interconnection customer has obtained all applicable permit(s) for the equipment installations on its property.

     95 For clarification, proposed WAC 480-108-020 (2)(e) is modified to read as follows:

     (e) The electrical company must verify on the basis of evidence provided by the interconnection customer that the a generating facility interconnected to a grid network distribution system or a spot network distribution system will not never cause impair public safety or quality of service to the electrical company's other customers as a result of reverse current flow through the electrical company's network protectors.

     96 For clarification, WAC 480-108-040 (7)(b) is modified to read as follows:

     (b) Production metering: The electrical company may require separate metering for production, including, if necessary for safety or reliability, metering capable of being remotely accessed. This meter will record all generation produced and may be billed separately from any net metering or customer usage metering. Costs associated with production metering will be paid by the interconnection customer.

     97 Proposed WAC 480-108-035(4) is modified to read as follows:

     (4) Supplemental review process. If the electrical company determines that additional studies are required to determine the feasibility of the interconnection, the electrical company must notify the interconnection customer within thirty business days of when the application is deemed complete and provide the interconnection customer a form of agreement that includes a description of what studies are required and a good faith estimate of the cost and time necessary to perform the studies. Within thirty business days after receiving the agreement, the interconnection customer may supply an alternative cost estimate from a third-party qualified to perform the studies required by the electrical company. After the electrical company and the interconnection customer agree on the estimated cost of the required studies and the identity of parties to perform the required studies the interconnection customer must execute and return the completed agreement within thirty business days along with any deposit required by the electrical company not to exceed the lower of one thousand dollars, or fifty percent of the estimated study cost.

     98 Proposed WAC 480-108-020(4) is modified to read as follows:

     (4) In addition to the requirements in subsections (2) and (3) of this section, all noninverter-based interconnections and all inverter-based interconnections failing to meet the requirements of subsection (3) of this section may require more detailed electrical company review. The electrical company must demonstrate the need for additional testing and approval of equipment if the same equipment has been tested and approved previously for any of the electrical company's interconnection customers. Electrical companies may require interconnection customers to pay for needed testing and approval of the equipment proposed to be installed to ensure compliance with applicable technical specifications, in their most current approved version, including:

     (a) IEEE Standard 1547, Standard for Interconnecting Distributed Resources with Electric Power Systems, for systems 10 MVA or less; and

     (b) ANSI Standard C37.90, IEEE Standard for Relays and Relay Systems Associated with Electric Power Apparatus.

     99 For clarification, proposed WAC 480-108-040(11) is modified to read as follows:

     The electric company also may restrict or prohibit new or expanded interconnected generating capacity on any feeder, circuit or network if engineering, safety or reliability studies indicate establish a need for restriction or prohibition.

     100 For clarification, proposed WAC 480-108-060(1) is modified to read as follows:

     (1) By January 31, 2008, the electrical company must file for commission approval, as part of its tariff, and maintain on file for inspection at its place of business, the charges, terms and conditions for interconnections pursuant to Part 1 of this chapter. Such filing must include model forms of the following documents and contracts:

     (a) Application;

     (b) Interconnection agreement;

     (c) Feasibility study agreement;

     (d) Construction agreement; and

     (e) Certificate of completion.

     101 Proposed WAC 480-108-080(1) is modified to read as follows:

     (1) No later than January 31, 2008, December 31, 2007, each electrical company over which the commission has jurisdiction must file an interconnection service tariff for facilities with nameplate generating capacity greater than 300 kW but no more than 20 MW.

     102 Proposed WAC 480-108-090(1) is modified to read as follows:

     (1) If an electrical company demonstrates that the small generator interconnection provisions will impair service adequacy, reliability or safety or will otherwise be incompatible with its electric system, the electrical company may file no later than January 31, 2008 December 31, 2007, an alternative to the interconnection service tariff required in WAC 480-108-080.

     103 STATEMENT OF ACTION; STATEMENT OF EFFECTIVE DATE: After reviewing the entire record, the commission determines that WAC 480-108-001, 480-108-005, 480-108-010, 480-108-020, 480-108-030, 480-108-040, 480-108-050, 480-108-060, and 480-108-999 should be revised as set forth in Appendix A, as rules of the Washington utilities and transportation commission, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the code reviser.

     104 After reviewing the entire record, the commission determines that WAC 480-108-015, 480-108-035, 480-108-055, 480-108-065, 480-108-070, 480-108-080, 480-108-090, 480-108-100, 480-108-110, and 480-108-120 should be adopted as set forth in Appendix A, as rules of the Washington utilities and transportation commission, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the code reviser.

     105 By revising and adopting these rules, the commission has fulfilled its obligations under amendments made to PURPA in Section 1245(a) of the 2005 Energy Policy Act codified at 16 U.S.C 2621 (d)(15).

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 10, Amended 9, Repealed 0; or Recently Enacted State Statutes: New 10, Amended 9, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 10, Amended 9, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

     107 The commission amends WAC 480-108-001, 480-108-005, 480-108-010, 480-108-020, 480-108-030, 480-108-040, 480-108-050, 480-108-060, and 480-108-999 to read as set forth in Appendix A, as rules of the Washington utilities and transportation commission, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the code reviser.

     108 The commission adopts WAC 480-108-015, 480-108-035, 480-108-055, 480-108-065, 480-108-070, 480-108-080, 480-108-090, 480-108-100, 480-108-110, and 480-108-120, as set forth in Appendix A, as rules of the Washington utilities and transportation commission, to take effect on the thirty-first day after the date of filing with the code reviser pursuant to RCW 34.05.380(2).

     109 This order and the rules set out below, after being recorded in the register of the Washington utilities and transportation commission, shall be forwarded to the code reviser for filing pursuant to chapters 80.01, 34.05 RCW and 1-21 WAC.

¹ RCW 80.28.025 establishes a state policy to encourage electric power resources from renewable sources through use of incentives.

² Chapter 201, Laws of 2006.

³ 2005 Energy Policy Act §1254(a) codified at 16 U.S.C. §2621 (d)(15).

⁴ Standardization of Small Generator Interconnection Agreements and Procedures, Order No. 2006, 70 F.R. 34100 (June 13, 2005), FERC Stats. & Regs. ¶ 31,180 (2005) (Order No. 2006), order on reh'g, Order No. 2006-A, 70 F.R. 71760 (Nov. 30, 2005), FERC Stats. & Regs. ¶ 31,196 (2005), order on clarif'n, Order No. 2006-B, 71 F.R. 42587 (July 27, 2006), FERC Stats. & Regs. ¶ 61,046 (2006).

⁵ Standardization of Small Generator Interconnection Agreements and Procedures, Order No. 2006, 70 F.R. 34100 (June 13, 2005), FERC Stats. & Regs. ¶ 31,180 (2005) (Order No. 2006), order on reh'g, Order No. 2006-A, 70 F.R. 71760 (Nov. 30, 2005), FERC Stats. & Regs. ¶ 31,196 (2005), order on clarif'n, Order No. 2006-B, 71 F.R. 42587 (July 27, 2006), FERC Stats. & Regs. ¶ 61,046 (2006).

⁶ The Load-Serving Utilities is a group consisting of Puget Sound Energy, Avista Corporation, Benton REA, Big Bend Rural Electric Cooperative, Chelan County PUD, City of Port Angeles, Clark Public Utilities, Elmhurst Mutual, Grant County PUD, Kittitas County PUD, Lewis County PUD, Seattle City Light, Snohomish County PUD, Tacoma Power, the Washington PUD Association, Western Rural Electric Cooperative Association, and the Association of Washington Cities.

⁷ The commission commends the investor-owned and public utilities for working cooperatively to develop a proposed set of uniform interconnection standards. We particularly appreciate the constructive participation in our inquiry and rule-making process of the public utilities that are not within our jurisdiction.

⁸ Staff memorandum in Docket UE-060649 re: Network Distribution Systems, September 5, 2007.

⁹ Id.

¹⁰ Survey of Interconnection Rules. United States Environmental Protection Agency filing in Docket UE-060649. July 25, 2006.

¹¹ See, Cole v. Washington Utils. & Transp. Comm'n, 79 Wn.2d 302, 310-11, 485 P.2d 71 (1971) (unlawful rate discrimination does not result if groups of customers pay different rates based upon reasonable differences in the conditions or cost of service).

¹² SSB 5101, chapter 300, Laws of 2005, codified at RCW 82.16.120(2).

     DATED at Olympia, Washington, September 27, 2007.

     Washington State Utilities and Transportation Commission

Mark H. Sidran, Chairman

Patrick J. Oshie, Commissioner

Philip B. Jones, Commissioner

OTS-9844.5

AMENDATORY SECTION(Amending Docket No. UE-051106, General Order No. R-528, filed 3/6/06, effective 4/6/06)

WAC 480-108-001   Purpose and scope.   (1) The purpose of this chapter is ((to establish rules for determining the terms and conditions governing the interconnection of electric generating facilities with a nameplate generating capacity of not more than 25 kilowatts to the electric system of an electrical company over which the commission has jurisdiction)) two-fold:

     (a) Part 1 of this chapter establishes rules for determining the charges, terms and conditions governing the interconnection of customer-owned electric generating facilities with a nameplate generating capacity of no more than 300 kilowatts (kW) to the electric system of an electrical company over which the commission has jurisdiction.

     (b) Part 2 of this chapter establishes rules requiring each electrical company to file interconnection service tariffs for interconnection of electric generating facilities with a nameplate generating capacity greater than 300 kW but no more than 20 megawatts (MW) to the electric system of an electrical company over which the commission has jurisdiction. The terms and conditions in such interconnection service tariffs must be either equivalent in all procedural and technical respects with the electrical company's interconnection service offered under its open access transmission tariff approved by the Federal Energy Regulatory Commission, or they must comply with a specified set of requirements set out in WAC 480-108-090.

     (2) These rules are intended:

     (a) To be consistent with the requirements of chapter 80.60 RCW, Net metering of electricity; ((to partially))

     (b) To comply with Section 1254 of the Energy Policy Act of 2005, Pub. L. No. 109-58 (2005) that amended section 111(d) of the Public Utility Regulatory Policy Act (PURPA) relating to Net Metering (subsection 11) and Interconnection (subsection 15); and

     (c) To promote the purposes of ((Substitute Senate Bill No. 5101, chapter 300, Laws of 2005)) RCW 82.16.120 (effective July 1, 2005).

     (3) This chapter governs the terms and conditions under which ((the applicant's)) an interconnection customer's generating facility, including without limitation net-metered facilities, will interconnect with, and operate in parallel with, the electrical company's electric system. This chapter does not govern the settlement, purchase or delivery of any power generated by ((the applicant's)) an interconnection customer's net-metered or production-metered generating facility.

     (4) This chapter does not govern interconnection of, or electrical company services to, PURPA qualifying facilities pursuant to chapter 480-107 WAC.

     (5) This chapter does not govern standby generators designed and used only to provide power to the customer when the local electric distribution company service is interrupted and that operate in parallel with the electric distribution company for less than 0.5 seconds both to and from emergency service.

[Statutory Authority: RCW 80.01.040 and 80.04.160. 06-07-017 (Docket No. UE-051106, General Order No. R-528), § 480-108-001, filed 3/6/06, effective 4/6/06.]

     (2) This chapter governs interconnections subject to the jurisdiction of the commission and does not govern interconnections subject to the jurisdiction of the Federal Energy Regulatory Commission.

     (3) The tariff provisions filed by electrical companies must conform to these rules. If the commission accepts a tariff that conflicts with these rules, the acceptance does not constitute a waiver of these rules unless the commission specifically approves the variation consistent with WAC 480-100-008.

     (4) Electrical companies shall modify((, if necessary, any)) existing tariffs, ((including)) if necessary, to conform to these rules. This includes, but is not limited to, tariffs implementing chapter 80.60 RCW, Net metering of electricity((, which are currently on file and approved by the commission to conform to these rules)).

     (((3))) (5) Disputes that arise under this chapter will be addressed in accordance with chapter 480-07 WAC. Any existing or potential interconnection customer may ask the commission to review the interpretation or application of these rules by an electrical company by making an informal complaint under WAC 480-07-910, Informal complaints, or by filing a formal complaint under WAC 480-07-370, Pleadings -- General.

[Statutory Authority: RCW 80.01.040 and 80.04.160. 06-07-017 (Docket No. UE-051106, General Order No. R-528), § 480-108-005, filed 3/6/06, effective 4/6/06.]

     "Application" means the written notice as defined in WAC 480-108-030 ((provided by the applicant)) that the interconnection customer provides to the electrical company ((that)) to initiate((s)) the interconnection process.

     "Business day" means Monday through Friday excluding official federal and state holidays.

     "Certificate of completion" means the form ((as defined)) described in WAC 480-108-050 that must be completed by the ((applicant or generator)) interconnection customer and the electrical inspector having jurisdiction over the installation of the facilities indicating completion of installation and inspection of the interconnection. As provided in WAC 480-108-050, the certificate of completion must be reviewed and approved, in writing, by the electrical company before the interconnection customer's generation facility may be connected and operated in parallel with the electrical company's electrical system.

     "Commission" means the Washington utilities and transportation commission.

     "Electric system" means all electrical wires, equipment, and other facilities owned ((or provided)) by the electrical company that are used to transmit electricity to customers.

     "Electrical company" means any public service company, as defined by RCW 80.04.010, engaged in the generation, distribution, sale or furnishing of electricity and ((which is)) subject to the jurisdiction of the commission.

     "Generating facility" means a source of electricity owned by the ((applicant or generator)) interconnection customer that is located on the ((applicant's)) interconnection customer's side of the point of common coupling, and all ((facilities)) ancillary and appurtenant ((thereto)) facilities, including interconnection facilities, which the ((applicant)) interconnection customer requests to interconnect to the electrical company's electric system.

     (("Generator" means the entity that owns and/or operates the generating facility interconnected to the electrical company's electric system.))     "Grid network distribution system" means electrical service from a distribution system consisting of two or more primary circuits from one or more substations or transmission supply points arranged such that they collectively feed secondary circuits serving more than one location and more than one electrical company customer.

     "Interconnection customer" means the person, corporation, partnership, government agency, or other entity that owns and operates a generating facility interconnected or requested to be interconnected to the electrical company's electric system. The interconnection customer may assign to another party responsibility for compliance with the requirements of this rule only with the express written permission of the electrical company.

     "Initial operation" means the first time the generating facility is in parallel operation with the electric system.

     "In-service date" means the date on which the generating facility and any related facilities are complete and ready for service, even if the generating facility is not placed in service on or by that date.

     "Interconnection" means the physical connection of a generating facility to the electric system so that parallel operation may occur.

     "Interconnection facilities" means the electrical wires, switches and other equipment owned by the electrical company or the interconnection customer and used to interconnect a generating facility to the electric system. Interconnection facilities are located between the generating facility and the point of common coupling. Interconnection facilities do not include system upgrades.

     "Model interconnection agreement" means a written agreement including standardized terms and conditions that govern the interconnection of generating facilities pursuant to this chapter. The model interconnection agreement may be modified to accommodate terms and conditions specific to individual interconnections, subject to the conditions set forth in these rules.

     "Net metering" means measuring the difference between the electricity supplied by an electrical company and the electricity generated by a generating facility that is fed back to the electrical company over the applicable billing period.

     (("Network distribution system (grid or spot)" means electrical service from a distribution system consisting of two or more primary circuits from one or more substations or transmission supply points arranged such that they collectively feed secondary circuits serving one (a spot network) or more (a grid network) electrical company customers.))

     "Network protectors" means devices installed on a spot network distribution system designed to detect and interrupt reverse current-flow (flow out of the network) as quickly as possible, typically within three to six cycles.

     "Parallel operation" or "operate in parallel" means the synchronous operation of a generating facility while interconnected with an electrical company's electric system.

     "Point of common coupling" or "PCC" means the point where the generating facility's local electric power system connects to the electrical company's electric system, such as the electric power revenue meter or at the location of the equipment designated to interrupt, separate or disconnect the connection between the generating facility and electrical company. The point of common coupling is the point of measurement for the application of IEEE 1547, clause 4.

     "PURPA qualifying facility" means a generating facility that meets the criteria specified by the Federal Energy Regulatory Commission (FERC) in 18 CFR Part 292 Subpart B and that sells power to an electrical company under chapter 480-107 WAC.

     "Spot network distribution system" means electrical service from a distribution system consisting of two or more primary circuits from one or more substations or transmission supply points arranged such that they collectively feed a secondary circuit serving a single location (e.g., a large facility or campus) containing one or more electrical company customers.

     "System upgrades" means the additions, modifications and upgrades to the electrical company's electrical system at or beyond the point of common coupling necessary to facilitate the interconnection of the generating facility. System upgrades do not include interconnection facilities.

[Statutory Authority: RCW 80.01.040 and 80.04.160. 06-07-017 (Docket No. UE-051106, General Order No. R-528), § 480-108-010, filed 3/6/06, effective 4/6/06.]

     Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.PART 1: INTERCONNECTION OF GENERATION FACILITIES WITH NAMEPLATE CAPACITY RATING OF 300 KW OR LESS
NEW SECTION
WAC 480-108-015   Scope of Part 1.   The provisions in Part 1 of this chapter apply to interconnections, and to applications to interconnect, customer-owned generating facilities with a nameplate capacity rating of 300 kW or less to an electrical company's electrical system under this chapter.

[]

     (1) General interconnection requirements.

     (a) ((Any)) The interconnection of a generating facility ((desiring to interconnect)) with the electrical company's electric system, the modification of a generating facility that is currently interconnected to the electrical company's electric system, or ((modify)) the modification of an existing interconnection must meet all minimum technical specifications applicable, in their most current approved version, as set forth in ((this chapter)) WAC 480-108-999.

     (b) ((The specifications and requirements in this section are intended to mitigate possible adverse impacts caused by the generating facility on electrical company equipment and personnel and on other customers of the electrical company. They are not intended to address protection of the generating facility itself, generating facility personnel, or its internal load. It is the responsibility of the generating facility to comply with the requirements of all appropriate standards, codes, statutes and authorities to protect its own facilities, personnel, and loads)) Interconnection of a generation facility with a nameplate capacity rating of 300 kW or less must comply with all applicable requirements in Table 1.

Table 1. 300 kW Capacity or Less.

	Single-Phase		Three-Phase
Feature	< 50 kW Inverter based	< 50 kW Noninverter based	< 300 kW Inverter based	< 300 kW Noninverter based
IEEE 1547 compliant	X	X	X	X
UL 1741 listed	X		X
Interrupting devices (capable of interrupting maximum available fault current)	X (8)	X	X (8)	X
Interconnection disconnect device (manual, lockable, visible, accessible)	X (1)	X	X	X
System protection		X (3)(4)(6)		X (3)(4)(5)(6)
Over-voltage trip	X (8)	X	X (8)	X
Under-voltage trip	X (8)	X	X (8)	X
Over/under frequency trip	X (8)	X	X (8)	X
Automatic synchronizing check		X		X
Ground over-voltage or over-current trip for utility system faults				X (2)
Power factor		X (7)		X (7)

	Notes:
	X - Required feature (blank = not required).
	(1) - Electrical company may choose to waive this requirement.
	(2) - May be required by electrical company; selection based on grounding system.
	(3) - No single point of failure shall lead to loss of protection.
	(4) - All protective devices shall fully meet the requirements of American National Standards Institute C37.90.
	(5) - Electrical company will specify the transformer connection.
	(6) - It is the customer's responsibility to ensure that its system is effectively grounded as defined by IEEE Std. 142 at the point of common coupling.
	(7) - Variance may be allowed based upon specific requirements per electrical company review. Charges may be incurred for losses.
	(8) - UL 1741 listed equipment provides required protection.

     (c) Any single or aggregated generating facility with a capacity greater than 50 kW requires a three-phase interconnection.

     (d) The specification and requirements in this section are intended to mitigate possible adverse impacts caused by the generating facility on electrical company equipment and personnel and on other customers of the electrical company. The specifications and requirements in this section are not intended to address protection of the generating facility or its internal load, or generating facility personnel. The interconnection customer is responsible for complying with the requirements of all appropriate standards, codes, statutes, and authorities to protect its own facilities, personnel, and loads.

     (((c))) (e) The specifications and requirements in this section ((shall)) apply generally to the ((nonelectrical company-owned electric generation equipment to which this standard and)) interconnection to an electrical company's electric system of customer-owned and operated electric equipment and any other facilities or equipment not owned by the electrical company to which interconnection agreement(s) apply throughout the period encompassing the ((generator's)) interconnection customer's installation, testing and commissioning, operation, maintenance, decommissioning and removal of ((said)) equipment. The electrical company may verify compliance at any time, with reasonable notice.

     (((d))) (f) The ((generator shall)) electrical company may refuse to establish or maintain interconnection with any interconnection customer that fails to comply with the requirements in (((d))) (f)(i), (ii) and (iii) of this subsection. However, at its sole discretion, the electrical company may approve alternatives that satisfy the intent of, and/or may excuse compliance with, any specific elements of these requirements except local, state and federal building codes.

     (i) Code and standards. ((Applicant shall)) All interconnections must conform to all applicable codes and standards for safe and reliable operation. Among these are the National Electric Code (NEC)((,)); National Electric Safety Code (NESC)((,)); the standards of the Institute of Electrical and Electronics Engineers (IEEE); the ((Institute of Electrical and Electronics Engineers (IEEE), American National Standards Institute (ANSI), and)) standards of the North American Electric Reliability Corporation (NERC); the standards of the Western Electricity Coordinating Council (WECC); American National Standards Institute (ANSI); Underwriters Laboratories (UL) standards((, and)); local, state and federal building codes, and any electrical company's written electric service requirement approved by the commission. ((The generator shall be responsible to obtain)) Electrical companies may require verification that an interconnection customer has obtained all applicable permit(s) for the equipment installations on its property.

     (ii) Safety. All safety and operating procedures for ((joint use equipment shall be in compliance)) interconnection facilities must comply with the Occupational Safety and Health Administration (OSHA) Standard at 29 CFR 1910.269, the NEC, Washington Administrative Code (WAC) rules, the Washington Industrial Safety and Health Administration (WISHA) Standard, and equipment manufacturer's safety and operating manuals.

     (iii) Power quality. Installations ((will)) must be in compliance with all applicable standards including, without limitation, IEEE Standard 519((-1992)) Harmonic Limits, and IEEE Standard 141 Flicker as measured at the PCC.

     (2) Specific interconnection requirements.

     (a) ((Applicant shall furnish)) The electrical company must verify that the interconnection customer has furnished and ((install)) installed on ((applicant's)) its side of the meter, a UL-approved safety disconnect switch ((which shall be capable of)) that can fully ((disconnecting)) disconnect the ((applicant's)) interconnection customer's generating facility from the electrical company's electric system. The disconnect switch ((shall)) must be located adjacent to electrical company meters and shall be of the visible break type in a metal enclosure ((which)) that can be secured by a padlock. The disconnect switch ((shall)) must be accessible to electrical company personnel at all times.

     (b) The requirement in (a) of this subsection may be waived by the electrical company if the interconnection customer:

     (i) ((Applicant)) Provides interconnection ((equipment)) facilities that ((applicant)) the interconnection customer can demonstrate, to the satisfaction of electrical company, perform((s)) physical disconnection of the generating equipment supply internally; and

     (ii) ((Applicant)) Agrees that its service may be disconnected entirely if generating equipment must be physically disconnected for any reason.

     Such waiver granted by the electrical company to the interconnection customer must be explicit and in writing.

     (c) The electrical company ((shall have)) has the right to disconnect the generating facility at the disconnect switch ((under the following circumstances)):

     (i) When necessary to maintain safe electrical operating conditions;

     (ii) If the generating facility does not meet required standards; or

     (iii) If the generating facility at any time adversely affects or endangers any person, the property of any person, the electrical company's operation of its electric system or the quality of electrical company's service to other customers.

     (d) Nominal voltage and phase configuration of ((applicant's)) interconnection customer's generating facility must be compatible ((to)) with the electrical company's system within generally accepted engineering standards including without limitation IEEE Standards 141 and 519 at the point of common coupling.

     (e) ((Applicant must provide evidence that its generation)) The electrical company must verify on the basis of evidence provided by the interconnection customer that a generating facility interconnected to a grid network distribution system or a spot network distribution system will ((never result in)) not impair public safety or quality of service to the electrical company's other customers as a result of reverse current flow through the electrical company's network protectors.

     (f) All instances of interconnection to ((secondary)) spot network distribution ((networks shall)) systems require review, studies as necessary, and written ((preapproval)) approval by the electrical company.

     (g) All instances of interconnection to ((distribution secondary)) grid network((s is not allowed)) distribution systems require review, studies as necessary, and written approval by the electrical company.

     (h) Closed transition transfer switches are not allowed in ((secondary)) network distribution systems.

     (3) Specifications applicable to all inverter-based interconnections. In addition to the requirements contained in subsections (1) and (2) of this section, the interconnection of any inverter-based generating facility ((desiring to interconnect)) with the electrical company's electric system, or ((modify)) the modification of an existing interconnection with an inverter-based generating facility must meet the following additional technical specifications, in their most current approved version((, as set forth below.)):

     (a) IEEE Standard 1547, Standard for Interconnecting Distributed Resources with Electric Power Systems((.));

     (b) UL Standard 1741, Inverters, Converters, and Controllers for Use in Independent Power Systems. Equipment must be UL listed((.)); and

     (c) IEEE Standard 929, IEEE Recommended Practice for Utility Interface of Photovoltaic (PV) Systems.

     (4) ((Requirements applicable to)) In addition to the requirements in subsections (2) and (3) of this section, all noninverter-based interconnections((. Noninverter-based interconnection requests)) and all inverter-based interconnections failing to meet the requirements of subsection (3) of this section may require more detailed electrical company review((, testing, and approval, at applicant cost,)). The electrical company must demonstrate the need for additional testing and approval of equipment if the same equipment has been tested and approved previously for any of the electrical company's interconnection customers. Electrical companies may require interconnection customers to pay for needed testing and approval of the equipment proposed to be installed to ensure compliance with applicable technical specifications, in their most current approved version, including:

     (a) IEEE Standard 1547, Standard for Interconnecting Distributed Resources with Electric Power Systems((.)), for systems 10 MVA or less; and

     (b) ANSI Standard C37.90, IEEE Standard for Relays and Relay Systems Associated with Electric Power Apparatus.

     (((c) Applicants proposing such interconnection)) (5) The electric company may ((also be required)) require interconnection customers proposing noninverter-based interconnection to submit a power factor mitigation plan for electrical company review and approval.

[Statutory Authority: RCW 80.01.040 and 80.04.160. 06-07-017 (Docket No. UE-051106, General Order No. R-528), § 480-108-020, filed 3/6/06, effective 4/6/06.]

     (3) Prior to submitting its interconnection request, a potential interconnection customer may ask the electrical company whether and how the proposed interconnection is subject to this chapter. The electrical company must respond within fifteen business days.

     (((2))) (4) Application fees. The electrical company ((may require)) must establish a nonrefundable interconnection application fee ((of no more than one hundred dollars)) set according to facility size to be paid by the interconnection customer to the electrical company when the interconnection customer submits its application. The fee, intended to cover the costs of processing the application, will be no greater than:

     (a) One hundred dollars for facilities 0 to 25 kW; and

     (b) Five hundred dollars for facilities 26 to 300 kW.

     (((3) Application prioritization. All generation interconnection requests pursuant to this chapter will be prioritized by the electrical company in the same manner as any new load requests. Preference will not be given to either request type. The electrical company will process the application and provide interconnection in a time frame consistent with the average of other service connections.

     (4))) (5) Interconnection application. The electrical company must stamp all interconnection requests to document the date and time received. The original date and time stamp affixed to the interconnection request will serve as the beginning point for purposes of any timetables in the application and review process.

     (6) Application evaluation. ((All generation interconnection requests pursuant to this chapter will be reviewed by the utility for compliance with the rules of this chapter. If the utility in its sole discretion finds that the application does not comply with this chapter, the utility may reject the application. If the utility rejects the application, it shall provide the applicant with written notification stating its reasons for rejecting the application.)) Upon receipt of an interconnection application, the electrical company must notify the interconnection customer within ten business days whether the interconnection request is complete. If the application is not complete, the electrical company must provide a written list detailing all additional information necessary to complete the application. The interconnection customer must supply the necessary information or request an extension of time within ten business days. If the interconnection customer does not provide within ten business days the listed information necessary to complete the application or request an extension of time, the electrical company may reject the application.

[Statutory Authority: RCW 80.01.040 and 80.04.160. 06-07-017 (Docket No. UE-051106, General Order No. R-528), § 480-108-030, filed 3/6/06, effective 4/6/06.]

     (2) Simplified review process. Once an application is accepted by the electrical company as complete, the electrical company will review the application to determine if the interconnection request complies with the technical standards established in WAC 480-108-020 and to determine whether any additional engineering, safety, reliability or other studies are required. The electrical company must notify the interconnection customer of the result of these determinations within thirty business days of when the application is deemed complete.

     (3) If the electrical company notifies the interconnection customer that the request complies with the technical requirements established in WAC 480-108-020 and no additional studies are required to determine the feasibility of the interconnection, the electrical company must offer the interconnection customer an executable interconnection agreement within five business days of such notification. The electrical company also will provide any additional interim agreements, such as construction agreements, that may be necessary and a good faith estimate of the cost and time necessary to complete the interconnection. The interconnection customer must execute and return the completed agreement(s) within thirty business days following receipt. The interconnection customer must simultaneously pay any deposit required by the electrical company not to exceed fifty percent of the estimated costs to complete the interconnection.

     (4) Supplemental review process. If the electrical company determines that additional studies are required to determine the feasibility of the interconnection, the electrical company must notify the interconnection customer within thirty business days of when the application is deemed complete and provide the interconnection customer a form of agreement that includes a description of what studies are required and a good faith estimate of the cost and time necessary to perform the studies. Within thirty business days after receiving the agreement, the interconnection customer may supply an alternative cost estimate from a third-party qualified to perform the studies required by the electrical company. After the electrical company and the interconnection customer agree on the estimated cost of the required studies and the identity of parties to perform the required studies the interconnection customer must execute and return the completed agreement within thirty business days along with any deposit required by the electrical company not to exceed the lower of one thousand dollars, or fifty percent of the estimated study cost.

     (5) The electrical company will provide the interconnection customer with the results of the studies conducted under subsection (4) of this section. If the studies determine that the interconnection is not feasible, the electrical company will provide notice of denial to the interconnection customer and the reasons for the denial.

     (6) If the studies conducted under subsection (4) of this section determine that the interconnection is feasible, the electrical company will notify the interconnection customer and provide an executable interconnection agreement to the interconnection customer within five business days of such notification. The electrical company also will provide any additional interim agreements, such as construction agreements, that may be necessary and a good faith estimate of the cost and time necessary to complete the interconnection. The interconnection customer must execute and return the completed agreement(s) within thirty business days following receipt. The interconnection customer must simultaneously pay any deposit required by the electrical company not to exceed fifty percent of the estimated costs to complete the interconnection.

     (7) An interconnection customer's failure to execute and return completed agreements and required deposits within the time frames specified in subsections (3), (4) and (6) of this section may result in termination of the application process by the electrical company under terms and conditions stated in such agreements.

     (8) The interconnection customer shall be responsible for all reasonable costs incurred by the electrical company to study the proposed interconnection and to design, construct, operate and maintain any required interconnection facilities or system upgrades all as required under the charges, terms and conditions stated in the study agreement(s) and interconnection agreement required above.

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     (1) Any electrical generating facility with a maximum ((electrical generating)) nameplate capacity rating of ((25)) 300 kW or less must comply with these rules to be eligible to interconnect and operate in parallel with the electrical company's electric system. The rules under this chapter ((shall)) apply to all ((interconnecting)) interconnection customer-owned generating facilities that are intended to operate in parallel with an electrical company's electric system irrespective of whether the ((applicant)) interconnection customer intends to generate energy to serve all or a part of the ((applicant's)) interconnection customer's load; or to sell the output to the electrical company or any third party purchaser.

     (2) ((In order)) To ensure system safety and reliability of interconnected operations, all interconnected generating facilities ((shall)) must be constructed and operated ((by generator)) in accordance with this chapter and all other applicable federal, state, and local laws and regulations.

     (3) Prior to initial operation, all ((generators)) interconnection customers must submit a completed certificate of completion to the electrical company, execute an appropriate interconnection agreement and any other agreement(s) required for the disposition of the generating facility's electric power output as described in WAC 480-108-040(((14))) (15). The interconnection agreement between the electrical company and ((generator)) the interconnection customer outlines the interconnection standards, cost allocation and billing agreements, and on-going maintenance and operation requirements.

     (4) ((Applicant or generator)) The interconnection customer shall promptly furnish the electrical company with copies of such plans, specifications, records, and other information relating to the generating facility or the ownership, operation, use, electrical company access to, or maintenance of the generating facility, as may be reasonably requested by the electrical company from time to time.

     (5) For the purposes of public and working personnel safety, ((any nonapproved generation interconnections discovered will be)) the electrical company may immediately ((disconnected)) disconnect from the electrical company system any nonapproved generation interconnections.

     (6) To ensure reliable service to all electrical company customers and to minimize possible problems for other customers, the electrical company will review the need for a dedicated-to-single-customer distribution transformer. ((Interconnecting generating facilities under 25 kW may require a separate transformer.)) If the electrical company requires a dedicated distribution transformer, the ((applicant or generator shall)) interconnection customer must pay ((for)) all reasonable costs of the new transformer and related facilities in accordance with subsection (13) of this section.

     (7) Metering.

     (a) Net metering for solar, wind, hydropower ((and)) fuel cells and facilities that simultaneously produce electricity and useful thermal energy as set forth in chapter 80.60 RCW((:)). The electrical company ((shall)) will install, own and maintain a kilowatt-hour meter, or meters as the installation may determine, capable of registering the bi-directional flow of electricity at the point of common coupling at a level of accuracy that meets all applicable standards, regulations and statutes. The meter(s) may measure such parameters as time of delivery, power factor, voltage and such other parameters as the electrical company ((shall specify)) specifies. The ((applicant shall)) interconnection customer must provide space for metering equipment. ((It will be the applicant's responsibility to)) The interconnection customer must provide the current transformer enclosure (if required), meter socket(s) and junction box after the ((applicant)) interconnection customer has submitted drawings and equipment specifications for electrical company approval. The electrical company may approve other generating sources for net metering but is not required to do so.

     (b) Production metering: The electrical company may require separate metering, including, if necessary for safety or reliability, metering capable of being remotely accessed, for production. This meter will record all generation produced and may be billed separately from any net metering or customer usage metering. ((All)) Costs associated with ((the installation of)) production metering will be paid by the ((applicant)) interconnection customer.

     (8) Common labeling furnished or approved by the electrical company and in accordance with NEC requirements must be posted on the meter base, disconnects, and transformers informing working personnel that generation is operating at or is located on the premises.

     (9) As currently set forth for qualifying generation under chapter 80.60 RCW (net metering), ((for solar, wind, hydro or fuel cells,)) no additional insurance will be necessary for interconnections that qualify for net metering. For ((other generating facilities permitted under these standards but not contained within)) generation other than qualifying generation under chapter 80.60 RCW, additional insurance, limitations of liability and indemnification may be required by the electrical company.

     (10) ((Prior to any future modification or expansion of the generating facility, the generator will obtain)) The electrical company must review and ((approval)) approve any future modification or expansion of an interconnected generating facility. The electrical company ((reserves the right to require the generator, at the generator's expense, to provide corrections or additions to existing electrical devices in the event of modification of government or industry regulations and standards)) may require the interconnection customer to provide and pay for corrections or additions to existing interconnection facilities if government or industry regulations and standards are modified. The electric company must notify the interconnection customer in writing of any such requirement. The electrical company may terminate interconnection service if the interconnection customer does not within thirty business days of the date of the notice arrange with the electrical company a mutually agreed schedule to comply with such requirements.

     (11) For the overall safety and protection of the electrical company system, chapter 80.60 RCW ((currently)) limits interconnection of generation for net metering to ((0.1%)) .25 percent of the electrical company's peak demand during 1996 and, beginning in 2014, to .50 percent of the electrical company's peak demand during 1996. Additionally, interconnection of generating facilities for net metering to individual distribution feeders ((will be)) is limited to 10((%)) percent of the feeder's peak capacity. ((However,)) The electrical company also may((, in its sole discretion, allow additional generation interconnection beyond these stated limits)) restrict or prohibit new or expanded interconnected generation capacity on any feeder, circuit or network if engineering, safety or reliability studies establish a need for restriction or prohibition.

     (12) ((It)) The interconnection customer is ((the responsibility of the generator to protect)) responsible for protecting its facilities, loads and equipment and ((comply)) complying with the requirements of all appropriate standards, codes, statutes and authorities.

     (13) Charges by the electrical company to the ((applicant or generator)) interconnection customer in addition to the application fee, if any, ((will)) must be ((compensatory and applied as appropriate)) cost-based and consistent with generally accepted engineering practices. Such ((costs)) charges may include, but are not limited to, the cost of engineering studies; the cost of transformers, production meters, and electrical company testing((,)); the cost of qualification, and approval of non-UL 1741 listed equipment; the cost of interconnection facilities, and the cost of any required system upgrades. Unless an electrical company demonstrates by reference to its integrated resource plan prepared pursuant to WAC 480-100-238, its conservation targets pursuant to RCW 19.285.040, its studies performed under WAC 480-108-065, or other evidence that an interconnection will provide quantifiable benefits to the electrical company's other customers, electrical company charges to the interconnection customer will include all costs made necessary by the requested interconnection service. If an electrical company demonstrates that an interconnection will produce quantifiable benefits for the electrical company's other customers, it may incur a portion of these costs for commission consideration for recovery in its general rates commensurate with such benefits. If after consideration of any costs approved by the commission for recovery in general rates the remaining costs are less than any amounts paid by the interconnection customer, the electrical company must refund the excess amount to the interconnection customer. ((The generator shall be responsible for any costs associated with any future upgrade or modification to its interconnected system required by modifications in the electrical company's electric system.))

     (14) ((This section does not govern the settlement, purchase or delivery of any power generated by applicant's generating facility. The purchase or delivery of power, including net metering of electricity pursuant to chapter 80.60 RCW, and other services that the applicant may require will be covered by separate agreement or pursuant to the terms, conditions and rates as may be from time to time approved by the commission. Any such agreement shall be complete prior to initial operation and filed with the commission.)) The interconnection customer is responsible for costs associated with future upgrades or modification to its generating facility or interconnection facilities made necessary by modifications the electrical company makes to its electric system.

     (15) ((Generator may disconnect the generating facility at any time; provided, that the generator provide reasonable advance notice to the electrical company.)) This section does not govern the settlement, purchase or delivery of any power generated by the interconnection customer's generating facility. The purchase or delivery of power, including net metering of electricity pursuant to chapter 80.60 RCW, power purchases and sales to PURPA qualifying facilities pursuant to chapter 480-107 WAC, and other services that the interconnection customer may require will be covered by separate agreement or pursuant to the terms, conditions and rates as may be from time to time approved by the commission. Any such agreement shall be completed prior to initial operation and filed with the commission.

     (16) ((Generator shall notify the electrical company prior to the sale or transfer of the generating facility, the interconnection facilities or the premises upon which the facilities are located. The applicant or generator shall not assign its rights or obligations under any agreement entered into pursuant to these rules without the prior written consent of electrical company, which consent shall not be unreasonably withheld.)) The interconnection customer may disconnect the generating facility at any time after providing reasonable advance notice to the electrical company.

     (17) The electrical company must require an interconnection customer to provide notice of the sale or transfer of the interconnection customer's generating facility, interconnection facilities or the premises upon which the interconnection facilities are located. To continue interconnection service to a new owner, the electrical company must require the new owner to execute a new interconnection agreement.

[Statutory Authority: RCW 80.01.040 and 80.04.160. 06-07-017 (Docket No. UE-051106, General Order No. R-528), § 480-108-040, filed 3/6/06, effective 4/6/06.]

[Statutory Authority: RCW 80.01.040 and 80.04.160. 06-07-017 (Docket No. UE-051106, General Order No. R-528), § 480-108-050, filed 3/6/06, effective 4/6/06.]

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     (a) Application((.));

     (b) ((Model)) Interconnection agreement((.));

     (c) Feasibility study agreement;

     (d) Construction agreement; and

     (e) Certificate of completion.

     (2) The commission may grant such exceptions to these rules as may be appropriate in individual cases.

[Statutory Authority: RCW 80.01.040 and 80.04.160. 06-07-017 (Docket No. UE-051106, General Order No. R-528), § 480-108-060, filed 3/6/06, effective 4/6/06.]

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     (2) Interconnection service tariffs must offer service equivalent in all procedural and technical respects to the interconnection service the electrical company offers under the small generator interconnection provisions of its open access transmission tariff as approved by the Federal Energy Regulatory Commission (FERC).

     (3) For purposes of Part 2 of this chapter, "small generator interconnection provisions" means the procedural and technical requirements established by the FERC in Standardization of Small Generator Interconnection Agreements and Procedures, Order No. 2006, 70 FR 34100 (June 13, 2005), FERC Stats. & Regs. ¶ 31,180 (2005) (Order No. 2006), order on reh'g, Order No. 2006-A, 70 FR 71760 (Nov. 30, 2005), FERC Stats. & Regs. ¶ 31,196 (2005), order on clarif'n, Order No. 2006-B, 71 FR 42587 (July 27, 2006), FERC Stats. & Regs. ¶ 61,046 (2006). "Small generator interconnection provisions" does not include the 10 kW inverter process required under the above-listed FERC regulations.

     (4) Interconnection service includes only the terms and conditions that govern physical interconnection to the electrical company's delivery system and does not include sale or transmission of power by the interconnecting customer or retail service to the interconnecting customer.

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     (2) An interconnection service tariff filed under this section must meet the following requirements.

     (a) All interconnection customers with generating facilities with nameplate capacity greater than 300 kW but no more than 20 MW must be treated equally without undue discrimination or preference.

     (b) Electrical companies must ensure that interconnection service will not impair safe, adequate and reliable electric service to its retail electric customers.

     (c) Technical requirements for all interconnections must comply with IEEE, NESC, NEC, North American Electric Reliability Corporation, Western Electric Coordinating Council and other applicable safety and reliability standards.

     (d) Charges by the electrical company to the interconnection customer in addition to the application fee, if any, must be cost-based and consistent with generally accepted engineering practices. Unless an electrical company demonstrates by reference to its integrated resource plan prepared pursuant to WAC 480-100-238, its conservation targets pursuant to RCW 19.285.040, the studies it performs under WAC 480-108-120, or other evidence that an interconnection will provide quantifiable benefits to the electrical company's other customers, an interconnecting customer must pay all costs made necessary by the requested interconnection service. Such costs include, but are not limited to, the cost of engineering studies, upgrades to utility facilities made necessary by the interconnection, metering and insurance. If an electrical company demonstrates that an interconnection will produce quantifiable benefits for the electrical company's other customers, it may incur a portion of these costs for commission consideration for recovery in its general rates commensurate with such benefits. If after consideration of any costs approved by the commission for recovery in general rates the remaining costs are less than any amounts paid by the interconnection customer, the electrical company must refund the excess to the interconnection customer.

     (e) Interconnection customers must be responsible for all operation, maintenance and code compliance for facilities and equipment on the customer's side of the point of common coupling.

     (f) Interconnection service tariffs must describe:

     (i) The process, timelines and cost of feasibility and facility impact studies the electrical company may require before allowing interconnection.

     (ii) The prioritization or other processes by which the electrical company will manage multiple requests for interconnection service.

     (g) Interconnection service tariffs must state:

     (i) Specific time frames for electrical companies to respond to interconnection applications.

     (ii) Specific time frames for interconnection customers to respond to study and interconnection agreements offered by the electrical company. Time frames must be adequate for the electrical company and the interconnection customer to have adequate opportunity to examine engineering studies and project design options.

     (h) The electrical company must make knowledgeable personnel available to answer questions regarding applicability of the interconnection service tariff and otherwise provide assistance to a customer seeking interconnection service. The electrical company must comply with reasonable requests for information including relevant system studies, interconnection studies, and other materials useful for an interconnection customer to understand the circumstances of an interconnection at a particular point on the electrical company's electric system, to the extent provision of such information does not violate confidentiality provisions of prior electrical company agreements.

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     (a) Application;

     (b) Feasibility Study Agreement;

     (c) System Impact Study Agreement;

     (d) Facilities Study Agreement;

     (e) Construction Agreement;

     (f) Interconnection Agreement; and

     (g) Certificate of Completion.

     (2) The commission may grant such exceptions to these rules as may be appropriate in individual cases.

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     (1) The National Electrical Code is published by the National Fire Protection Association (NFPA).

     (a) The commission adopts the version published in 2005.

     (b) This publication is referenced in WAC 480-108-020.

     (c) The National Electrical Code is a copyrighted document. Copies are available from the NFPA at 1 Batterymarch Park, Quincy, Massachusetts, 02169 or at internet address http://www.nfpa.org.

     (2) National Electric Safety Code (NESC).

     (a) The commission adopts the version published in 2002.

     (b) This publication is referenced in WAC 480-108-020.

     (c) Copies of the National Electric Safety Code are available from the Institute of Electrical and Electronics Engineers at http://standards.ieee.org/nesc.

     (3) Institute of Electrical and Electronics Engineers (IEEE) Standard 1547, Standard for Interconnecting Distributed Resources with Electric Power Systems.

     (a) The commission adopts the version published in 2003.

     (b) This publication is referenced in WAC 480-108-020.

     (c) Copies of IEEE Standard 1547 are available from the Institute of Electrical and Electronics Engineers at http://www.ieee.org/web/standards/home.

     (4) Institute of Electrical and Electronics Engineers (IEEE) Standard 929, Recommended Practice for Utility Interface of Photovoltaic (PV) Systems.

     (a) The commission adopts the version published in 2000.

     (b) This publication is referenced in WAC 480-108-020.

     (c) Copies of IEEE Standard 929 are available from the Institute of Electrical and Electronics Engineers at http://www.ieee.org/web/standards/home.

     (5) American National Standards Institute (ANSI) Standard C37.90, IEEE Standard for Relays and Relay Systems Associated with Electric Power Apparatus.

     (a) The commission adopts the version published in 2005.

     (b) This publication is referenced in WAC 480-108-020.

     (c) Copies of IEEE Standard C37.90 are available from the Institute of Electrical and Electronics Engineers at http://www.ieee.org/web/standards/home.

     (6) Institute of Electrical and Electronics Engineers (IEEE) Standard 519, Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems.

     (a) The commission adopts the version published in 1992.

     (b) This publication is referenced in WAC 480-108-020.

     (c) Copies of IEEE Standard 519 are available from the Institute of Electrical and Electronics Engineers at http://www.ieee.org/web/standards/home.

     (7) Institute of Electrical and Electronics Engineers (IEEE) Standard 141, Recommended Practice for Electric Power Distribution for Industrial Plants.

     (a) The commission adopts the version published in 1994 and reaffirmed in 1999.

     (b) This publication is referenced in WAC 480-108-020.

     (c) Copies of IEEE Standard 141 are available from the Institute of Electrical and Electronics Engineers at http://www.ieee.org/web/standards/home.

     (8) Institute of Electrical and Electronics Engineers (IEEE) Standard 142, Recommended Practice for Grounding of Industrial and Commercial Power Systems.

     (a) The commission adopts the version published in 1991.

     (b) This publication is referenced in WAC 480-108-020.

     (c) Copies of IEEE Standard 142 are available from the Institute of Electrical and Electronics Engineers at http://www.ieee.org/web/standards/home.

     (9) Underwriters Laboratories (UL), including UL Standard 1741, Inverters, Converters, and Controllers for Use in Independent Power Systems.

     (a) The commission adopts the version published in 2005.

     (b) This publication is referenced in WAC 480-108-020.

     (c) UL Standard 1741 is available from Underwriters Laboratory at http://www.ul.com.

     (((8))) (10) Occupational Safety and Health Administration (OSHA) Standard at 29 CFR 1910.269.

     (a) The commission adopts the version published in 1994.

     (b) This publication is referenced in WAC 480-108-020.

     (c) Copies of Title 29 Code of Federal Regulations are available from the U.S. Government Online Bookstore, http://bookstore.gpo.gov/, and from various third-party vendors.

     (((9))) (11) Washington Industrial Safety and Health Administration (WISHA) Standard, chapter 296-155 WAC.

     (a) The commission adopts the version in effect on March 1, 2006.

     (b) This publication is referenced in WAC 480-108-020.

     (c) The WISHA Standard is available from the Washington Department of Labor and Industries at P.O. Box 44000, Olympia, WA 98504-4000, or at internet address http://www.lni.wa.gov.

[Statutory Authority: RCW 80.01.040 and 80.04.160. 06-07-017 (Docket No. UE-051106, General Order No. R-528), § 480-108-999, filed 3/6/06, effective 4/6/06.]

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