UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

18 CFR Part 35 

[Docket No. RM02-12-002; Order No. 2006-B] 

Standardization of Small Generator Interconnection Agreements and Procedures 

(Issued July 20, 2006) 

AGENCY: Federal Energy Regulatory Commission. 

ACTION: Order on Clarification 

SUMMARY: The Federal Energy Regulatory Commission clarifies one issue regarding 

Order No. 2006-A. Order Nos. 2006-A and 2006 require all public utilities that own, 

control, or operate facilities for transmitting electric energy in interstate commerce to file 

revised open access transmission tariffs containing standard small generator 

interconnection procedures and a standard small generator interconnection agreement, 

and to provide interconnection service under them to small generating facilities of no 

more than 20 megawatts. 

EFFECTIVE DATE: [insert date that is 30 days after publication in the FEDERAL 

REGISTER.] 
FOR FURTHER INFORMATION CONTACT: 

Michael G. Henry (Legal Information) 

Office of the General Counsel 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

(202) 502-8532 

Kirk F. Randall 

Office of Energy Markets and Reliability 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

(202) 502-8092 

SUPPLEMENTARY INFORMATION:
UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

Before Commissioners: Joseph T. Kelliher, Chairman; 

 Nora Mead Brownell, and Suedeen G. Kelly. 

 

Standardization of Small Generator 

Interconnection Agreements and Procedures Docket No. RM02-12-002 

ORDER NO. 2006-B 

ORDER ON CLARIFICATION 

(Issued July 20, 2006) 

I. Introduction

1. This order grants a request for clarification of Order No. 2006-A submitted by 

Southern California Edison (SoCal Edison).1

 Order Nos. 2006 and 2006-A require that 

all public utilities that own, control, or operate facilities used for transmitting electric 

energy in interstate commerce2

 have on file with the Commission standard generator 

 

1

 Standardization of Small Generator Interconnection Agreements and Procedures, 

Order No. 2006, 70 FR 34100 (Jun. 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). 

2

 A public utility is a utility that owns, controls, or operates facilities used for 

transmitting electric energy in interstate commerce, as defined in section 201(e) of the 

Federal Power Act (FPA). 16 U.S.C. § 824(e) (2000). A non-public utility that seeks 

voluntary compliance with the reciprocity condition of an open access transmission tariff 

may satisfy that condition by adopting these procedures and agreement, or by filing 

interconnection rules that substantially conform with, or are superior to, the pro forma

SGIP and pro forma SGIA. 
Docket No. RM02-12-002 - 2 - 

interconnection procedures (pro forma SGIP) and a standard small generator 

interconnection agreement (pro forma SGIA) for interconnecting with the Transmission 

Provider’s Transmission System any Small Generating Facility capable of producing no 

more than 20 megawatts of power.3

 Order No. 2006 requires that all public utilities 

subject to it modify their open access transmission tariffs (OATTs) to include the pro 

forma SGIP and pro forma SGIA. On November 22, 2005, the Commission issued Order 

No. 2006-A, which modified portions of Order No. 2006. 4 

 3

 Capitalized terms used in this order have the meanings specified in the 

Glossaries of Terms or the text of the pro forma SGIP or the pro forma SGIA. Small 

Generating Facility means the device for which the Interconnection Customer (the owner 

or operator of the Small Generating Facility) has requested interconnection. The utility 

with which the Small Generating Facility is interconnecting is the Transmission Provider. 

A Small Generating Facility is a device used for the production of electricity having a 

capacity of no more than 20 megawatts. The interconnection process begins when the 

Interconnection Customer submits an application for interconnection (Interconnection 

Request) to the Transmission Provider. 

4

 Comparable documents for generators larger than 20 megawatts in size are set 

forth in Order No. 2003 and are referred to as the LGIP and LGIA. See Standardization 

of Generator Interconnection Agreements and Procedures, Order No. 2003, 68 FR 49845 

(Aug. 19, 2003), FERC Stats. & Regs. ¶ 31,146 (2003) (Order No. 2003), order on reh’g, 

Order No. 2003-A, 69 FR 15932 (Mar. 26, 2004), FERC Stats. & Regs. ¶ 31,160 (2004) 

(Order No. 2003-A), order on reh’g, Order No. 2003-B, 70 FR 265 (Jan. 4, 2005), FERC 

Stats. & Regs. ¶ 31,171 (2005) (Order No. 2003-B), order on reh’g, Order No. 2003-C, 

70 FR 37661 (Jun. 30, 2005), FERC Stats. & Regs. ¶ 31,190 (2005) (Order No. 2003-C); 

see also Notice Clarifying Compliance Procedures, 106 FERC ¶ 61,009 (2004). 
Docket No. RM02-12-002 - 3 - 

II. Background

2. Under Order No. 2006, if the proposed interconnection of the Interconnection 

Customer’s Small Generating Facility with the Transmission Provider’s Transmission 

System does not qualify for review under the accelerated Fast Track Process or the 

10 kW Inverter Process, it is evaluated using industry-standard interconnection studies. 

These studies – the Feasibility Study, the System Impact Study, and the Facilities Study – 

are performed by the Transmission Provider under the pro forma study agreements in the 

pro forma SGIP. These study agreements, to be signed by the Transmission Provider and 

Interconnection Customer, are similar to, but less complex than, similar agreements for 

Large Generators contained in Order No. 2003. The Commission developed the pro 

forma SGIP and SGIA to offer a simple process for interconnecting Small Generating 

Facilities with the nation’s electric grid.5

 To this end, the three pro forma SGIP study 

agreements did not include boilerplate contract provisions addressing issues such as 

waiver, amendment, and governing law. 

III. Request for Clarification

3. Previously, in its request for rehearing of Order No. 2006, SoCal Edison urged the 

Commission to adopt miscellaneous boilerplate contract provisions in the pro forma

study agreements. It proposed that the Commission include in the pro forma study 

 5

 See Order No. 2006 at P 1, 509. 
Docket No. RM02-12-002 - 4 - 

agreements the miscellaneous provisions contained in article 12 of the pro forma SGIA. 

The Commission did not address this issue in Order No. 2006-A, and on rehearing of that 

order, SoCal Edison repeats its request. 

Commission Conclusion

4. We agree with SoCal Edison that the pro forma SGIP study agreements should 

contain standard legal terms and conditions. Although these added provisions will 

lengthen the study agreements, we conclude that their inclusion will benefit both 

generators and Transmission Providers. Since the period of time between when the study 

agreements are signed and when the studies are complete is short, we expect that 

including standard legal protections will clarify each party’s legal rights under the study 

agreements and minimize disputes. 

5. We agree with SoCal Edison that certain of the provisions in article 12 of the 

SGIA provide the necessary clarity and legal protections to the parties, and will therefore 

adopt several of those provisions, with some minor editorial revisions, into each study 

agreement. Specifically, we will add to each study agreement articles 12.1 through 12.4 

and 12.6 through 12.8 (including provisions on governing law, amendment, third-party 

beneficiaries, waiver, multiple counterparts, partnership, and severability); as well as 

articles 12.11 and 12.12 (subcontractors and reservation of rights).6

 We will not include 

 6

 The revised study agreements (not including unchanged attachments) are 

included as Appendices 1 – 3 to this order . 
Docket No. RM02-12-002 - 5 - 

article 12.9 (security arrangements) or article 12.10 (environmental releases) since neither 

of these provisions is relevant during the study phase of an interconnection project. Nor 

do we include article 12.5 (entirety of agreement), since it suggests that the SGIP may not 

be used to interpret the parties’ obligations under the study agreements. The new 

provisions will become articles 13 through 21 of the Feasibility Study Agreement and the 

System Impact Study Agreement; and articles 11 through 19 of the Facilities Study 

Agreement. While this will increase the length of each study agreement, the increase in 

certainty justifies the inclusion of additional legal boilerplate. 

6. We also clarify that section 4 of the pro forma SGIP (dealing with matters such as 

dispute resolution, confidentiality, record retention, etc.) also applies to the 

interconnection study process. These provisions, along with the contractual provisions 

being added to the study agreements themselves, provide the parties with a way to 

resolve disputes and the necessary legal protections should a dispute arise. 

IV. Additional Changes to the SGIA

7. Finally, we note that articles 1.1 through 1.4 of the pro forma SGIA are not listed 

in the pro forma SGIA’s Table of Contents. We will correct that here. The corrections to 

article 1 of the Table of Contents are included as Appendix 4 of this order. 

V. Compliance

8. As in Order No. 2006, the tariffs of non-independent Transmission Providers will 

be deemed to have been modified to include the revised pro forma SGIP study 
Docket No. RM02-12-002 - 6 - 

agreements and SGIA on the effective date of this order. The non-independent 

Transmission Provider is not required to make any additional filing before it is otherwise 

required to do so by Order No. 2006.7

 If a non-independent Transmission Provider seeks 

to modify the pro forma study agreements it must make an FPA section 205 filing 

explaining why its changes are “consistent with or superior to” the Commission’s pro 

forma study agreements.8 

9. Independent Transmission Providers will be given an additional 60 days after the 

effective date of this order to make conforming changes. If the Commission has already 

acted on the independent Transmission Provider’s Order Nos. 2006 and 2006-A 

compliance filing by the effective date of this order, the independent Transmission 

Provider must make a new compliance filing to incorporate the new provisions (or 

request variation). If the Commission has not yet acted on the independent Transmission 

Provider’s Order Nos. 2006 or 2006-A compliance filings, the independent Transmission 

Provider must submit an amendment to its pending filing. Independent Transmission 

Providers that have been given an extension of time to make Order Nos. 2006 and 2006-

 7

 See Order No. 2006 at P 544 (stating that a non-independent Transmission 

Provider wishing to adopt the pro forma SGIP and pro forma SGIA without modification 

may wait until it complies with the Commission’s Electronic Tariff Filings rulemaking); 

see also Electronic Tariff Filings, Notice of Proposed Rulemaking, 69 FR 43929 (Jul. 23, 

2004), FERC Stats. & Regs. ¶ 32,575 (2004). 

8

 See Order No. 2006 at P 546. 
Docket No. RM02-12-002 - 7 - 

A compliance filings beyond the effective date of this order must include the changes to 

their study agreements in that filing. 

10. Any study agreements signed before the effective date of this order are 

grandfathered and need not be revised to include the revisions set forth in this order. All 

study agreements signed on or after the effective date of this order must include the 

revisions set forth in this order. 

VI. Information Collection Statement

11. Order Nos. 2006 and 2006-A contain information collection requirements for 

which the Commission obtained approval from the Office of Management and Budget 

(OMB). The OMB Control Number for this collection of information is 1902-0203. By 

clarifying the provisions of Order Nos. 2006 and 2006-A, this order does not make 

substantive modifications to the Commission’s information collection requirements and, 

accordingly, OMB approval for this order is not necessary. However, the Commission 

will send a copy of this order to OMB for informational purposes.

VII. Document Availability

12. The Commission will publish the full text of this document in the Federal 

Register. Interested persons also may obtain this document from the Commission’s 

Public Reference Room during normal business hours (8:30 a.m. to 5:00 p.m. Eastern 

Time) at 888 First Street, N.E., Room 2A, Washington, D.C. This document is also 

available electronically from the Commission’s eLibrary system (www.ferc.gov/docs-
Docket No. RM02-12-002 - 8 - 

filing/elibrary.asp) in PDF and Microsoft Word format. To access this document in 

eLibrary, type “RM02-12” in the docket number field and specify a date range that 

includes this document’s issuance date. User assistance is available for eLibrary and the 

Commission’s website during normal business hours from the Commission’s Help Line 

at 202-502-8222 or the Public Reference Room at 202-502-8371 Press 0, TTY 202-502-

8659. E-Mail the Public Reference Room at public.referenceroom@ferc.gov. 

VIII. Effective Date

13. Changes to Order Nos. 2006 and 2006-A made in this Order on Rehearing will 

become effective on [insert date 30 days after publication in the Federal Register]. 

IX. List of Subjects 18 CFR Part 35

14. Electric power rates, Electric utilities, Reporting and recordkeeping requirements. 

By the Commission. 

( S E A L ) 

Magalie R. Salas, 

Secretary. 

 
Docket No. RM02-12-002 - 9 - 

Appendix 1: Revised Feasibility Study Agreement

Attachment 6 

Feasibility Study Agreement 

THIS AGREEMENT is made and entered into this_____day of______________ 

20___ by and between_____________________________________________________, 

a____________________________organized and existing under the laws of the State of 

__________________________________________, ("Interconnection Customer,") and 

_____________________________________________________, a________________ 

existing under the laws of the State of________________________________________, 

("Transmission Provider"). Interconnection Customer and Transmission Provider each 

may be referred to as a "Party," or collectively as the "Parties." 

RECITALS

WHEREAS, Interconnection Customer is proposing to develop a Small Generating 

Facility or generating capacity addition to an existing Small Generating Facility 

consistent with the Interconnection Request completed by Interconnection Customer 

on_________________________; and 

WHEREAS, Interconnection Customer desires to interconnect the Small Generating 

Facility with the Transmission Provider's Transmission System; and 

WHEREAS, Interconnection Customer has requested the Transmission Provider to 

perform a feasibility study to assess the feasibility of interconnecting the proposed Small 

Generating Facility with the Transmission Provider's Transmission System, and of any 

Affected Systems; 

NOW, THEREFORE, in consideration of and subject to the mutual covenants contained 

herein the Parties agreed as follows: 

1.0 When used in this Agreement, with initial capitalization, the terms specified shall 

have the meanings indicated or the meanings specified in the standard Small 

Generator Interconnection Procedures. 

2.0 The Interconnection Customer elects and the Transmission Provider shall cause to 

be performed an interconnection feasibility study consistent the standard Small 
Docket No. RM02-12-002 - 10 - 

 Generator Interconnection Procedures in accordance with the Open Access 

Transmission Tariff. 

3.0 The scope of the feasibility study shall be subject to the assumptions set forth in 

Attachment A to this Agreement. 

4.0 The feasibility study shall be based on the technical information provided by the 

Interconnection Customer in the Interconnection Request, as may be modified as 

the result of the scoping meeting. The Transmission Provider reserves the right to 

request additional technical information from the Interconnection Customer as 

may reasonably become necessary consistent with Good Utility Practice during the 

course of the feasibility study and as designated in accordance with the standard 

Small Generator Interconnection Procedures. If the Interconnection Customer 

modifies its Interconnection Request, the time to complete the feasibility study 

may be extended by agreement of the Parties. 

5.0 In performing the study, the Transmission Provider shall rely, to the extent 

reasonably practicable, on existing studies of recent vintage. The Interconnection 

Customer shall not be charged for such existing studies; however, the 

Interconnection Customer shall be responsible for charges associated with any 

new study or modifications to existing studies that are reasonably necessary to 

perform the feasibility study. 

6.0 The feasibility study report shall provide the following analyses for the purpose of 

identifying any potential adverse system impacts that would result from the 

interconnection of the Small Generating Facility as proposed: 

6.1 Initial identification of any circuit breaker short circuit capability limits 

exceeded as a result of the interconnection; 

6.2 Initial identification of any thermal overload or voltage limit violations 

resulting from the interconnection; 

6.3 Initial review of grounding requirements and electric system protection; 

and 

6.4 Description and non-binding estimated cost of facilities required to 

interconnect the proposed Small Generating Facility and to address the 

identified short circuit and power flow issues. 
Docket No. RM02-12-002 - 11 - 

7.0 The feasibility study shall model the impact of the Small Generating Facility 

regardless of purpose in order to avoid the further expense and interruption of 

operation for reexamination of feasibility and impacts if the Interconnection 

Customer later changes the purpose for which the Small Generating Facility is 

being installed. 

8.0 The study shall include the feasibility of any interconnection at a proposed project 

site where there could be multiple potential Points of Interconnection, as requested 

by the Interconnection Customer and at the Interconnection Customer's cost. 

9.0 A deposit of the lesser of 50 percent of good faith estimated feasibility study costs 

or earnest money of $1,000 may be required from the Interconnection Customer. 

10.0 Once the feasibility study is completed, a feasibility study report shall be prepared 

and transmitted to the Interconnection Customer. Barring unusual circumstances, 

the feasibility study must be completed and the feasibility study report transmitted 

within 30 Business Days of the Interconnection Customer's agreement to conduct 

a feasibility study. 

11.0 Any study fees shall be based on the Transmission Provider's actual costs and will 

be invoiced to the Interconnection Customer after the study is completed and 

delivered and will include a summary of professional time. 

12.0 The Interconnection Customer must pay any study costs that exceed the deposit 

without interest within 30 calendar days on receipt of the invoice or resolution of 

any dispute. If the deposit exceeds the invoiced fees, the Transmission Provider 

shall refund such excess within 30 calendar days of the invoice without interest. 

13.0 Governing Law, Regulatory Authority, and Rules

The validity, interpretation and enforcement of this Agreement and each of its 

provisions shall be governed by the laws of the state of __________________ 

(where the Point of Interconnection is located), without regard to its conflicts of 

law principles. This Agreement is subject to all Applicable Laws and Regulations. 

Each Party expressly reserves the right to seek changes in, appeal, or otherwise 

contest any laws, orders, or regulations of a Governmental Authority. 

14.0 Amendment

The Parties may amend this Agreement by a written instrument duly executed by 

both Parties. 
Docket No. RM02-12-002 - 12 - 

15.0 No Third-Party Beneficiaries

This Agreement is not intended to and does not create rights, remedies, or benefits 

of any character whatsoever in favor of any persons, corporations, associations, or 

entities other than the Parties, and the obligations herein assumed are solely for the 

use and benefit of the Parties, their successors in interest and where permitted, 

their assigns. 

16.0 Waiver

16.1 The failure of a Party to this Agreement to insist, on any occasion, upon 

strict performance of any provision of this Agreement will not be 

considered a waiver of any obligation, right, or duty of, or imposed upon, 

such Party. 

16.2 Any waiver at any time by either Party of its rights with respect to this 

Agreement shall not be deemed a continuing waiver or a waiver with 

respect to any other failure to comply with any other obligation, right, duty 

of this Agreement. Termination or default of this Agreement for any 

reason by Interconnection Customer shall not constitute a waiver of the 

Interconnection Customer's legal rights to obtain an interconnection from 

the Transmission Provider. Any waiver of this Agreement shall, if 

requested, be provided in writing. 

17.0 Multiple Counterparts

This Agreement may be executed in two or more counterparts, each of which is 

deemed an original but all constitute one and the same instrument. 

18.0 No Partnership

This Agreement shall not be interpreted or construed to create an association, joint 

venture, agency relationship, or partnership between the Parties or to impose any 

partnership obligation or partnership liability upon either Party. Neither Party 

shall have any right, power or authority to enter into any agreement or undertaking 

for, or act on behalf of, or to act as or be an agent or representative of, or to 

otherwise bind, the other Party. 

19.0 Severability

If any provision or portion of this Agreement shall for any reason be held or 

adjudged to be invalid or illegal or unenforceable by any court of competent 

jurisdiction or other Governmental Authority, (1) such portion or provision shall 

be deemed separate and independent, (2) the Parties shall negotiate in good faith to 
Docket No. RM02-12-002 - 13 - 

restore insofar as practicable the benefits to each Party that were affected by such 

ruling, and (3) the remainder of this Agreement shall remain in full force and 

effect. 

20.0 Subcontractors

Nothing in this Agreement shall prevent a Party from utilizing the services of any 

subcontractor as it deems appropriate to perform its obligations under this 

Agreement; provided, however, that each Party shall require its subcontractors to 

comply with all applicable terms and conditions of this Agreement in providing 

such services and each Party shall remain primarily liable to the other Party for the 

performance of such subcontractor. 

20.1 The creation of any subcontract relationship shall not relieve the hiring 

 Party of any of its obligations under this Agreement. The hiring Party shall 

be fully responsible to the other Party for the acts or omissions of any 

subcontractor the hiring Party hires as if no subcontract had been made; 

provided, however, that in no event shall the Transmission Provider be 

liable for the actions or inactions of the Interconnection Customer or its 

subcontractors with respect to obligations of the Interconnection Customer 

under this Agreement. Any applicable obligation imposed by this 

Agreement upon the hiring Party shall be equally binding upon, and shall 

be construed as having application to, any subcontractor of such Party. 

 20.2 The obligations under this article will not be limited in any way by any 

 limitation of subcontractor’s insurance. 

21.0 Reservation of Rights

The Transmission Provider shall have the right to make a unilateral filing with 

FERC to modify this Agreement with respect to any rates, terms and conditions, 

charges, classifications of service, rule or regulation under section 205 or any 

other applicable provision of the Federal Power Act and FERC's rules and 

regulations thereunder, and the Interconnection Customer shall have the right to 

make a unilateral filing with FERC to modify this Agreement under any applicable 

provision of the Federal Power Act and FERC's rules and regulations; provided 

that each Party shall have the right to protest any such filing by the other Party and 

to participate fully in any proceeding before FERC in which such modifications 

may be considered. Nothing in this Agreement shall limit the rights of the Parties 

or of FERC under sections 205 or 206 of the Federal Power Act and FERC's rules 

and regulations, except to the extent that the Parties otherwise agree as provided 

herein. 
Docket No. RM02-12-002 - 14 - 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed 

by their duly authorized officers or agents on the day and year first above written. 

[Insert name of Transmission Provider] [Insert name of Interconnection 

Customer]

___________________________________ _________________________________ 

Signed______________________________ Signed___________________________ 

Name (Printed): Name (Printed): 

___________________________________ ________________________________ 

Title_______________________________ Title____________________________ 
Docket No. RM02-12-002 - 15 - 

Appendix 2: Revised System Impact Study Agreement

Attachment 7 

System Impact Study Agreement

THIS AGREEMENT is made and entered into this_____day of______________ 

20___ by and between_____________________________________________________, 

a____________________________organized and existing under the laws of the State of 

__________________________________________, ("Interconnection Customer,") and 

_____________________________________________________, a________________ 

existing under the laws of the State of________________________________________, 

("Transmission Provider"). Interconnection Customer and Transmission Provider each 

may be referred to as a "Party," or collectively as the "Parties." 

RECITALS

WHEREAS, the Interconnection Customer is proposing to develop a Small Generating 

Facility or generating capacity addition to an existing Small Generating Facility 

consistent with the Interconnection Request completed by the Interconnection Customer 

on________________________; and 

WHEREAS, the Interconnection Customer desires to interconnect the Small Generating 

Facility with the Transmission Provider's Transmission System; 

WHEREAS, the Transmission Provider has completed a feasibility study and provided 

the results of said study to the Interconnection Customer (This recital to be omitted if the 

Parties have agreed to forego the feasibility study.); and 

WHEREAS, the Interconnection Customer has requested the Transmission Provider to 

perform a system impact study(s) to assess the impact of interconnecting the Small 

Generating Facility with the Transmission Provider's Transmission System, and of any 

Affected Systems; 

NOW, THEREFORE, in consideration of and subject to the mutual covenants contained 

herein the Parties agreed as follows: 

1.0 When used in this Agreement, with initial capitalization, the terms specified shall 

have the meanings indicated or the meanings specified in the standard Small 

Generator Interconnection Procedures. 
Docket No. RM02-12-002 - 16 - 

2.0 The Interconnection Customer elects and the Transmission Provider shall cause to 

be performed a system impact study(s) consistent with the standard Small 

Generator Interconnection Procedures in accordance with the Open Access 

Transmission Tariff. 

3.0 The scope of a system impact study shall be subject to the assumptions set forth in 

Attachment A to this Agreement. 

4.0 A system impact study will be based upon the results of the feasibility study and 

the technical information provided by Interconnection Customer in the 

Interconnection Request. The Transmission Provider reserves the right to request 

additional technical information from the Interconnection Customer as may 

reasonably become necessary consistent with Good Utility Practice during the 

course of the system impact study. If the Interconnection Customer modifies its 

designated Point of Interconnection, Interconnection Request, or the technical 

information provided therein is modified, the time to complete the system impact 

study may be extended. 

5.0 A system impact study shall consist of a short circuit analysis, a stability analysis, 

a power flow analysis, voltage drop and flicker studies, protection and set point 

coordination studies, and grounding reviews, as necessary. A system impact study 

shall state the assumptions upon which it is based, state the results of the analyses, 

and provide the requirement or potential impediments to providing the requested 

interconnection service, including a preliminary indication of the cost and length 

of time that would be necessary to correct any problems identified in those 

analyses and implement the interconnection. A system impact study shall provide 

a list of facilities that are required as a result of the Interconnection Request and 

non-binding good faith estimates of cost responsibility and time to construct. 

6.0 A distribution system impact study shall incorporate a distribution load flow study, 

an analysis of equipment interrupting ratings, protection coordination study, 

voltage drop and flicker studies, protection and set point coordination studies, 

grounding reviews, and the impact on electric system operation, as necessary. 

7.0 Affected Systems may participate in the preparation of a system impact study, 

with a division of costs among such entities as they may agree. All Affected 

Systems shall be afforded an opportunity to review and comment upon a system 

impact study that covers potential adverse system impacts on their electric 
Docket No. RM02-12-002 - 17 - 

 systems, and the Transmission Provider has 20 additional Business Days to 

complete a system impact study requiring review by Affected Systems. 

8.0 If the Transmission Provider uses a queuing procedure for sorting or prioritizing 

projects and their associated cost responsibilities for any required Network 

Upgrades, the system impact study shall consider all generating facilities (and with 

respect to paragraph 8.3 below, any identified Upgrades associated with such 

higher queued interconnection) that, on the date the system impact study is 

commenced – 

8.1 Are directly interconnected with the Transmission Provider's electric 

system; or 

8.2 Are interconnected with Affected Systems and may have an impact 

on the proposed interconnection; and 

8.3 Have a pending higher queued Interconnection Request to 

interconnect with the Transmission Provider's electric system. 

9.0 A distribution system impact study, if required, shall be completed and the results 

transmitted to the Interconnection Customer within 30 Business Days after this 

Agreement is signed by the Parties. A transmission system impact study, if 

required, shall be completed and the results transmitted to the Interconnection 

Customer within 45 Business Days after this Agreement is signed by the Parties, 

or in accordance with the Transmission Provider's queuing procedures. 

10.0 A deposit of the equivalent of the good faith estimated cost of a distribution 

system impact study and the one half the good faith estimated cost of a 

transmission system impact study may be required from the Interconnection 

Customer. 

11.0 Any study fees shall be based on the Transmission Provider's actual costs and will 

be invoiced to the Interconnection Customer after the study is completed and 

delivered and will include a summary of professional time. 

12.0 The Interconnection Customer must pay any study costs that exceed the deposit 

without interest within 30 calendar days on receipt of the invoice or resolution of 

any dispute. If the deposit exceeds the invoiced fees, the Transmission Provider 

shall refund such excess within 30 calendar days of the invoice without interest. 
Docket No. RM02-12-002 - 18 - 

13.0 Governing Law, Regulatory Authority, and Rules

The validity, interpretation and enforcement of this Agreement and each of its 

provisions shall be governed by the laws of the state of __________________ 

(where the Point of Interconnection is located), without regard to its conflicts of 

law principles. This Agreement is subject to all Applicable Laws and Regulations. 

Each Party expressly reserves the right to seek changes in, appeal, or otherwise 

contest any laws, orders, or regulations of a Governmental Authority. 

14.0 Amendment

The Parties may amend this Agreement by a written instrument duly executed by 

both Parties. 

15.0 No Third-Party Beneficiaries

This Agreement is not intended to and does not create rights, remedies, or benefits 

of any character whatsoever in favor of any persons, corporations, associations, or 

entities other than the Parties, and the obligations herein assumed are solely for the 

use and benefit of the Parties, their successors in interest and where permitted, 

their assigns. 

16.0 Waiver

16.1 The failure of a Party to this Agreement to insist, on any occasion, upon 

strict performance of any provision of this Agreement will not be 

considered a waiver of any obligation, right, or duty of, or imposed upon, 

such Party. 

16.2 Any waiver at any time by either Party of its rights with respect to this 

Agreement shall not be deemed a continuing waiver or a waiver with 

respect to any other failure to comply with any other obligation, right, duty 

of this Agreement. Termination or default of this Agreement for any 

reason by Interconnection Customer shall not constitute a waiver of the 

Interconnection Customer's legal rights to obtain an interconnection from 

the Transmission Provider. Any waiver of this Agreement shall, if 

requested, be provided in writing. 

17.0 Multiple Counterparts

This Agreement may be executed in two or more counterparts, each of which is 

deemed an original but all constitute one and the same instrument. 
Docket No. RM02-12-002 - 19 - 

18.0 No Partnership

This Agreement shall not be interpreted or construed to create an association, joint 

venture, agency relationship, or partnership between the Parties or to impose any 

partnership obligation or partnership liability upon either Party. Neither Party 

shall have any right, power or authority to enter into any agreement or undertaking 

for, or act on behalf of, or to act as or be an agent or representative of, or to 

otherwise bind, the other Party. 

19.0 Severability

If any provision or portion of this Agreement shall for any reason be held or 

adjudged to be invalid or illegal or unenforceable by any court of competent 

jurisdiction or other Governmental Authority, (1) such portion or provision shall 

be deemed separate and independent, (2) the Parties shall negotiate in good faith to 

restore insofar as practicable the benefits to each Party that were affected by such 

ruling, and (3) the remainder of this Agreement shall remain in full force and 

effect. 

20.0 Subcontractors

Nothing in this Agreement shall prevent a Party from utilizing the services of any 

subcontractor as it deems appropriate to perform its obligations under this 

Agreement; provided, however, that each Party shall require its subcontractors to 

comply with all applicable terms and conditions of this Agreement in providing 

such services and each Party shall remain primarily liable to the other Party for the 

performance of such subcontractor. 

 20.1 The creation of any subcontract relationship shall not relieve the hiring 

Party of any of its obligations under this Agreement. The hiring Party shall 

be fully responsible to the other Party for the acts or omissions of any 

subcontractor the hiring Party hires as if no subcontract had been made; 

provided, however, that in no event shall the Transmission Provider be 

liable for the actions or inactions of the Interconnection Customer or its 

subcontractors with respect to obligations of the Interconnection Customer 

under this Agreement. Any applicable obligation imposed by this 

Agreement upon the hiring Party shall be equally binding upon, and shall 

be construed as having application to, any subcontractor of such Party. 

 20.2 The obligations under this article will not be limited in any way by any 

 limitation of subcontractor’s insurance. 
Docket No. RM02-12-002 - 20 - 

21.0 Reservation of Rights

The Transmission Provider shall have the right to make a unilateral filing with 

FERC to modify this Agreement with respect to any rates, terms and conditions, 

charges, classifications of service, rule or regulation under section 205 or any 

other applicable provision of the Federal Power Act and FERC's rules and 

regulations thereunder, and the Interconnection Customer shall have the right to 

make a unilateral filing with FERC to modify this Agreement under any applicable 

provision of the Federal Power Act and FERC's rules and regulations; provided 

that each Party shall have the right to protest any such filing by the other Party and 

to participate fully in any proceeding before FERC in which such modifications 

IN WITNESS THEREOF, the Parties have caused this Agreement to be duly executed 

by their duly authorized officers or agents on the day and year first above written. 

[Insert name of Transmission Provider] [Insert name of Interconnection 

Customer]

___________________________________ _________________________________ 

Signed______________________________ Signed___________________________ 

Name (Printed): Name (Printed): 

___________________________________ ________________________________ 

Title_______________________________ Title____________________________ 
Docket No. RM02-12-002 - 21 - 

Appendix 3: Revised Facilities Study Agreement

Attachment 8 

Facilities Study Agreement

THIS AGREEMENT is made and entered into this_____day of______________ 

20___ by and between_____________________________________________________, 

a____________________________organized and existing under the laws of the State of 

__________________________________________, ("Interconnection Customer,") and 

_____________________________________________________, a________________ 

existing under the laws of the State of________________________________________, 

("Transmission Provider"). Interconnection Customer and Transmission Provider each 

may be referred to as a "Party," or collectively as the "Parties." 

RECITALS

WHEREAS, the Interconnection Customer is proposing to develop a Small Generating 

Facility or generating capacity addition to an existing Small Generating Facility 

consistent with the Interconnection Request completed by the Interconnection Customer 

on______________________; and 

WHEREAS, the Interconnection Customer desires to interconnect the Small Generating 

Facility with the Transmission Provider's Transmission System; 

WHEREAS, the Transmission Provider has completed a system impact study and 

provided the results of said study to the Interconnection Customer; and 

WHEREAS, the Interconnection Customer has requested the Transmission Provider to 

perform a facilities study to specify and estimate the cost of the equipment, engineering, 

procurement and construction work needed to implement the conclusions of the system 

impact study in accordance with Good Utility Practice to physically and electrically 

connect the Small Generating Facility with the Transmission Provider's Transmission 

System. 

NOW, THEREFORE, in consideration of and subject to the mutual covenants contained 

herein the Parties agreed as follows: 
Docket No. RM02-12-002 - 22 - 

1.0 When used in this Agreement, with initial capitalization, the terms specified shall 

have the meanings indicated or the meanings specified in the standard Small 

Generator Interconnection Procedures. 

2.0 The Interconnection Customer elects and the Transmission Provider shall cause a 

facilities study consistent with the standard Small Generator Interconnection 

Procedures to be performed in accordance with the Open Access Transmission 

Tariff. 

3.0 The scope of the facilities study shall be subject to data provided in Attachment A 

to this Agreement. 

4.0 The facilities study shall specify and estimate the cost of the equipment, 

engineering, procurement and construction work (including overheads) needed to 

implement the conclusions of the system impact study(s). The facilities study 

shall also identify (1) the electrical switching configuration of the equipment, 

including, without limitation, transformer, switchgear, meters, and other station 

equipment, (2) the nature and estimated cost of the Transmission Provider's 

Interconnection Facilities and Upgrades necessary to accomplish the 

interconnection, and (3) an estimate of the time required to complete the 

construction and installation of such facilities. 

5.0 The Transmission Provider may propose to group facilities required for more than 

one Interconnection Customer in order to minimize facilities costs through 

economies of scale, but any Interconnection Customer may require the installation 

of facilities required for its own Small Generating Facility if it is willing to pay the 

costs of those facilities. 

6.0 A deposit of the good faith estimated facilities study costs may be required from 

the Interconnection Customer. 

7.0 In cases where Upgrades are required, the facilities study must be completed 

within 45 Business Days of the receipt of this Agreement. In cases where no 

Upgrades are necessary, and the required facilities are limited to Interconnection 

Facilities, the facilities study must be completed within 30 Business Days. 

8.0 Once the facilities study is completed, a facilities study report shall be prepared 

and transmitted to the Interconnection Customer. Barring unusual circumstances, 

the facilities study must be completed and the facilities study report transmitted 
Docket No. RM02-12-002 - 23 - 

 within 30 Business Days of the Interconnection Customer's agreement to conduct 

a facilities study. 

9.0 Any study fees shall be based on the Transmission Provider's actual costs and will 

be invoiced to the Interconnection Customer after the study is completed and 

delivered and will include a summary of professional time. 

10.0 The Interconnection Customer must pay any study costs that exceed the deposit 

without interest within 30 calendar days on receipt of the invoice or resolution of 

any dispute. If the deposit exceeds the invoiced fees, the Transmission Provider 

shall refund such excess within 30 calendar days of the invoice without interest. 

11.0 Governing Law, Regulatory Authority, and Rules

The validity, interpretation and enforcement of this Agreement and each of its 

provisions shall be governed by the laws of the state of __________________ 

(where the Point of Interconnection is located), without regard to its conflicts of 

law principles. This Agreement is subject to all Applicable Laws and Regulations. 

Each Party expressly reserves the right to seek changes in, appeal, or otherwise 

contest any laws, orders, or regulations of a Governmental Authority. 

12.0 Amendment

The Parties may amend this Agreement by a written instrument duly executed by 

both Parties. 

13.0 No Third-Party Beneficiaries

This Agreement is not intended to and does not create rights, remedies, or benefits 

of any character whatsoever in favor of any persons, corporations, associations, or 

entities other than the Parties, and the obligations herein assumed are solely for the 

use and benefit of the Parties, their successors in interest and where permitted, 

their assigns. 

14.0 Waiver

14.1 The failure of a Party to this Agreement to insist, on any occasion, upon 

strict performance of any provision of this Agreement will not be 

considered a waiver of any obligation, right, or duty of, or imposed upon, 

such Party. 

14.2 Any waiver at any time by either Party of its rights with respect to this 

Agreement shall not be deemed a continuing waiver or a waiver with 
Docket No. RM02-12-002 - 24 - 

respect to any other failure to comply with any other obligation, right, duty 

of this Agreement. Termination or default of this Agreement for any 

reason by Interconnection Customer shall not constitute a waiver of the 

Interconnection Customer's legal rights to obtain an interconnection from 

the Transmission Provider. Any waiver of this Agreement shall, if 

requested, be provided in writing. 

15.0 Multiple Counterparts

This Agreement may be executed in two or more counterparts, each of which is 

deemed an original but all constitute one and the same instrument. 

16.0 No Partnership

This Agreement shall not be interpreted or construed to create an association, joint 

venture, agency relationship, or partnership between the Parties or to impose any 

partnership obligation or partnership liability upon either Party. Neither Party 

shall have any right, power or authority to enter into any agreement or undertaking 

for, or act on behalf of, or to act as or be an agent or representative of, or to 

otherwise bind, the other Party. 

17.0 Severability

If any provision or portion of this Agreement shall for any reason be held or 

adjudged to be invalid or illegal or unenforceable by any court of competent 

jurisdiction or other Governmental Authority, (1) such portion or provision shall 

be deemed separate and independent, (2) the Parties shall negotiate in good faith to 

restore insofar as practicable the benefits to each Party that were affected by such 

ruling, and (3) the remainder of this Agreement shall remain in full force and 

effect. 

18.0 Subcontractors

Nothing in this Agreement shall prevent a Party from utilizing the services of any 

subcontractor as it deems appropriate to perform its obligations under this 

Agreement; provided, however, that each Party shall require its subcontractors to 

comply with all applicable terms and conditions of this Agreement in providing 

such services and each Party shall remain primarily liable to the other Party for the 

performance of such subcontractor. 

 18.1 The creation of any subcontract relationship shall not relieve the hiring 

Party of any of its obligations under this Agreement. The hiring Party shall 

be fully responsible to the other Party for the acts or omissions of any 

subcontractor the hiring Party hires as if no subcontract had been made; 
Docket No. RM02-12-002 - 25 - 

provided, however, that in no event shall the Transmission Provider be 

liable for the actions or inactions of the Interconnection Customer or its 

subcontractors with respect to obligations of the Interconnection Customer 

under this Agreement. Any applicable obligation imposed by this 

Agreement upon the hiring Party shall be equally binding upon, and shall 

be construed as having application to, any subcontractor of such Party. 

 18.2 The obligations under this article will not be limited in any way by any 

 limitation of subcontractor’s insurance. 

19.0 Reservation of Rights

The Transmission Provider shall have the right to make a unilateral filing with 

FERC to modify this Agreement with respect to any rates, terms and conditions, 

charges, classifications of service, rule or regulation under section 205 or any 

other applicable provision of the Federal Power Act and FERC's rules and 

regulations thereunder, and the Interconnection Customer shall have the right to 

make a unilateral filing with FERC to modify this Agreement under any applicable 

provision of the Federal Power Act and FERC's rules and regulations; provided 

that each Party shall have the right to protest any such filing by the other Party and 

to participate fully in any proceeding before FERC in which such modifications 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed 

by their duly authorized officers or agents on the day and year first above written. 

[Insert name of Transmission Provider] [Insert name of Interconnection 

Customer]

___________________________________ _________________________________ 

Signed______________________________ Signed___________________________ 

Name (Printed): Name (Printed): 

___________________________________ ________________________________ 

Title_______________________________ Title____________________________ 
Docket No. RM02-12-002 - 26 - 

Appendix 4: Revised Table of Contents for Article 1 of the SGIA

TABLE OF CONTENTS

Page No. 

Article 1. Scope and Limitations of Agreement.........................................................- 1 -

 1.1 Applicability..............................................................................................- 1 - 

 1.2 Purpose......................................................................................................- 1 - 

 1.3 No Agreement to Purchase or Deliver Power...........................................- 1 - 

 1.4 Limitations................................................................................................- 1 - 

1.5 Responsibilities of the Parties...................................................................- 2 - 

1.6 Parallel Operation Obligations..................................................................- 2 - 

1.7 Metering ..... ..............................................................................................- 3 - 

1.8 Reactive Power .........................................................................................- 3 -