FERC Clarifies and Revises Certain Aspects of Its Final Rule Reforming Large Generator Interconnection Procedures and Agreements

Mark R. Haskell, George D. Billinson, and Lamiya N. Rahman

On February 21, 2019, the Federal Energy Regulatory Commission issued an order (“Order No. 845-A”) granting in part and denying in part requests for rehearing and clarification of its final rule reforming the large generator interconnection procedures (“Order No. 845”).[1] Order No. 845 aimed to “improve certainty for interconnection customers, promote more informed interconnections decisions, and enhance the interconnection process”[2] by implementing various revisions to the Commission’s pro forma Large Generator Interconnection Procedures (“LGIP”) and pro forma Large Generator Interconnection Agreements (“LGIA”), including:

  • Option to Build: Removing the limitation that previously allowed interconnection customers to exercise the option to build transmission provider’s interconnection facilities and standalone network upgrades only in instances where the transmission provider could not meet the interconnection customer’s preferred construction timeline;
  • Dispute Resolution Procedures: Directing transmission providers to establish interconnection dispute resolution procedures permitting disputing parties to unilaterally pursue nonbinding dispute resolution;
  • Contingent Facilities: Directing transmission providers to outline and make public a method for determining contingent facilities;
  • Study Processes and Assumptions: Directing
  • transmission providers to post study processes and assumptions forming the basis of network models used in interconnection studies;
  • “Generating Facility” Definition: Amending the definition of “Generating Facility” to expressly cover electric storage resources;
  • Study Performance Reporting: Implementing reporting requirements for aggregate interconnection study performance;
  • Service below Generating Facility Capacity: Permitting interconnections customers to request levels of interconnection service below the generating facility’s capacity;
  • Provisional Interconnection Agreements: Directing transmission providers to allow provisional interconnection agreements providing for limited operation of the generating facility prior to full interconnection;
  • Surplus Interconnection: Directing transmission providers to allow interconnection customers to use surplus interconnection service at existing points of interconnection; and
  • Technology Changes: Directing transmission providers to establish procedures permitting transmission providers to assess and study the interconnection customer’s technology changes without changing the interconnection customer’s queued position.

Read the full Blank Rome Energy Alert on our website.

[1] Reform of Generator Interconnection Procedures and Agreements, Order No. 845-A, 166 FERC ¶ 61,137 (2019).

[2] Reform of Generator Interconnection Procedures and Agreements, Order No. 845, 163 FERC ¶ 61,043 at P 2 (2018).

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