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Case: 19-30088 Doc# 4402-2 Filed: 10/22/19 Entered: 10/22/19 23:38:56 Page 1

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California Independent System Operator Corporation

Fifth Replacement Tariff

November 27, 2018

Appendix V

Table of Contents

Appendix V STANDARD LARGE GENERATOR INTERCONNECTION AGREEMENT............................. 6

Article 1. Definitions.................................................................................................................................. 7

Article 2. Effective Date and Term .........................................................................................................13

2.1 Effective Date.......................................................................................................................................13

2.2 Term of Agreement..............................................................................................................................13

2.3 Termination Procedures. .....................................................................................................................13

2.3.1 Written Notice..........................................................................................................................13

2.3.2 Default.....................................................................................................................................13

2.3.3 Suspension of Work. ...............................................................................................................13

2.3.4 .....................................................................................................................................................13

2.4 Termination Costs................................................................................................................................13

2.4.1 .....................................................................................................................................................13

2.4.2 .....................................................................................................................................................14

2.4.3 .....................................................................................................................................................14

2.5 Disconnection. .....................................................................................................................................14

2.6 Survival. ...............................................................................................................................................14

Article 3. Regulatory Filings and CAISO Tariff Compliance...................................................................14

3.1 Filing. ...................................................................................................................................................14

3.2 Agreement Subject to CAISO Tariff.....................................................................................................14

3.3 Relationship Between this LGIA and the CAISO Tariff........................................................................14

3.4 Relationship Between this LGIA and the Net Scheduled PGA............................................................14

Article 4. Scope of Service .....................................................................................................................15

4.1 Interconnection Service. ......................................................................................................................15

4.2 Provision of Service. ............................................................................................................................15

4.3 Performance Standards.......................................................................................................................15

4.4 No Transmission Service.....................................................................................................................15

4.5 Interconnection Customer Provided Services. ....................................................................................15

Appendix 5. Facilities, Engineering Procurement, and Construction......................................................15

5.1 Options.................................................................................................................................................15

5.1.1 Standard Option. .....................................................................................................................15

5.1.2 Alternate Option. .....................................................................................................................16

5.1.3 Option to Build.........................................................................................................................16

5.1.4 Negotiated Option. ..................................................................................................................16

5.2 General Conditions Applicable to Option to Build................................................................................16

5.3 Liquidated Damages............................................................................................................................18

5.4 Power System Stabilizers....................................................................................................................18

5.5 Equipment Procurement. .....................................................................................................................19

5.5.1 .....................................................................................................................................................19

5.5.2 .....................................................................................................................................................19

5.5.3 .....................................................................................................................................................19

5.6 Construction Commencement. ............................................................................................................19

5.6.1 .....................................................................................................................................................19

5.6.2 .....................................................................................................................................................19

5.6.3 .....................................................................................................................................................19

5.6.4 .....................................................................................................................................................19

5.7 Work Progress. ....................................................................................................................................19

5.8 Information Exchange..........................................................................................................................19

5.9 Limited Operation.................................................................................................................................20

5.10Interconnection Customer's Interconnection Facilities. .......................................................................20

5.10.1 Large Generating Facility and Interconnection Customer’s Interconnection Facilities 

Specifications.......................................................................................................................................20

5.10.2 Participating TO’s and CAISO’s Review. ............................................................................20

5.10.3 Interconnection Customer’s Interconnection Facilities Construction. ................................. 20

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Appendix V

5.10.4 Interconnection Customer to Meet Requirements of the Participating TO’s Interconnection 

Handbook.............................................................................................................................................21

5.11Participating TO's Interconnection Facilities Construction. ................................................................. 21

5.12Access Rights. .....................................................................................................................................21

5.13Lands of Other Property Owners.........................................................................................................21

5.14 Permits. ...................................................................................................................................21

5.15Early Construction of Base Case Facilities..........................................................................................21

5.16Suspension. .........................................................................................................................................22

5.17Taxes. ..................................................................................................................................................22

5.17.1 Interconnection Customer Payments Not Taxable. ............................................................22

5.17.2 Representations and Covenants.........................................................................................23

5.17.3 Indemnification for the Cost Consequence of Current Tax Liability Imposed Upon the 

Participating TO. ..................................................................................................................................23

5.17.4 Tax Gross-Up Amount. .......................................................................................................23

5.17.5 Private Letter Ruling or Change or Clarification of Law......................................................24

5.17.6 Subsequent Taxable Events. ..............................................................................................24

5.17.7 Contests. .............................................................................................................................24

5.17.8 Refund.................................................................................................................................25

5.17.9 Taxes Other Than Income Taxes........................................................................................26

5.18Tax Status............................................................................................................................................26

5.19Modification..........................................................................................................................................26

5.19.1 General................................................................................................................................26

5.19.2 Standards............................................................................................................................27

5.19.3 Modification Costs...............................................................................................................27

Article 6. Testing and Inspection............................................................................................................27

6.1 Pre-Commercial Operation Date Testing and Modifications. ..............................................................27

6.2 Post-Commercial Operation Date Testing and Modifications..............................................................27

6.3 Right to Observe Testing. ....................................................................................................................27

6.4 Right to Inspect....................................................................................................................................27

Article 7. Metering ..................................................................................................................................28

7.1 General. ...............................................................................................................................................28

7.2 Check Meters.......................................................................................................................................28

7.3 Participating TO Retail Metering. ............................................................................................28

Article 8. Communications......................................................................................................................28

8.1 Interconnection Customer Obligations.................................................................................................28

8.2 Remote Terminal Unit..........................................................................................................................28

8.3 No Annexation. ....................................................................................................................................29

Article 9. Operations...............................................................................................................................29

9.1 General. ...............................................................................................................................................29

9.2 Balancing Authority Area Notification. ................................................................................................. 29

9.3 CAISO and Participating TO Obligations.............................................................................................29

9.4 Interconnection Customer Obligations.................................................................................................29

9.5 Start-Up and Synchronization..............................................................................................................30

9.6 Reactive Power....................................................................................................................................30

9.6.1 Power Factor Design Criteria.................................................................................................. 30

9.6.2 Voltage Schedules. .................................................................................................................30

9.6.3 Payment for Reactive Power...................................................................................................31

9.7 Outages and Interruptions. ..................................................................................................................31

9.7.1 Outages...................................................................................................................................31

9.7.2 Interruption of Service. ............................................................................................................31

9.7.3 Under-Frequency and Over Frequency Conditions. ...............................................................32

9.7.4 System Protection and Other Control Requirements..............................................................32

9.7.5 Requirements for Protection. ..................................................................................................33

9.7.6 Power Quality..........................................................................................................................33

9.8 Switching and Tagging Rules. .............................................................................................................33

9.9 Use of Interconnection Facilities by Third Parties. ..............................................................................34

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9.9.1 Purpose of Interconnection Facilities. .....................................................................................34

9.9.2 Third Party Users. ...................................................................................................................34

9.10Disturbance Analysis Data Exchange. ................................................................................................34

Article 10. Maintenance........................................................................................................................34

10.1Participating TO Obligations................................................................................................................34

10.2Interconnection Customer Obligations.................................................................................................34

10.3 Coordination............................................................................................................................34

10.4 Secondary Systems. ...............................................................................................................34

10.5Operating and Maintenance Expenses. ..............................................................................................34

Article 11. Performance Obligation ......................................................................................................35

11.1Interconnection Customer’s Interconnection Facilities. .......................................................................35

11.2Participating TO’s Interconnection Facilities........................................................................................35

11.3Network Upgrades and Distribution Upgrades. ...................................................................................35

11.4Transmission Credits. ..........................................................................................................................35

11.4.1 Repayment of Amounts Advanced for Network Upgrades. ................................................35

11.4.2 Special Provisions for Affected Systems. ...........................................................................36

11.4.3 ...................................................................................................................................................36

11.5Provision of Security. ...........................................................................................................................36

11.5.1 ...................................................................................................................................................36

11.5.2 ...................................................................................................................................................36

11.5.3 ...................................................................................................................................................36

11.6Interconnection Customer Compensation. ..........................................................................................36

11.6.1 Interconnection Customer Compensation for Actions During Emergency Condition. ........36

Article 12. Invoice................................................................................................................................. 37

12.1General. ...............................................................................................................................................37

12.2Final Invoice.........................................................................................................................................37

12.3Payment...............................................................................................................................................37

12.4 Disputes. ................................................................................................................................. 37

Article 13. Emergencies .......................................................................................................................37

13.1[Reserved]............................................................................................................................................37

13.2Obligations...........................................................................................................................................37

13.3Notice...................................................................................................................................................38

13.4 Immediate Action. ...................................................................................................................38

13.5CAISO and Participating TO Authority.................................................................................................38

13.5.1 General................................................................................................................................38

13.5.2 Reduction and Disconnection. ............................................................................................38

13.6Interconnection Customer Authority. ...................................................................................................39

13.7Limited Liability. ...................................................................................................................................39

Article 14. Regulatory Requirements ...................................................................................................39

14.1Regulatory Requirements....................................................................................................................39

14.2Governing Law.....................................................................................................................................39

14.2.1 ...................................................................................................................................................39

14.2.2 ...................................................................................................................................................39

14.2.3 ...................................................................................................................................................39

Article 15. Notices ................................................................................................................................39

15.1General. ...............................................................................................................................................39

15.2Billings and Payments. ........................................................................................................................40

15.3Alternative Forms of Notice. ................................................................................................................40

15.4Operations and Maintenance Notice. ..................................................................................................40

Article 16. Force Majeure .....................................................................................................................40

16.1Force Majeure......................................................................................................................................40

16.1.1 ...................................................................................................................................................40

16.1.2 ...................................................................................................................................................40

Article 17. Default................................................................................................................................. 40

17.1Default..................................................................................................................................................40

17.1.1 General................................................................................................................................40

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Appendix V

17.1.2 Right to Terminate...............................................................................................................40

Article 18. Indemnity, Consequential Damages, and Insurance ..........................................................41

18.1Indemnity. ............................................................................................................................................41

18.1.1 Indemnified Party. ...............................................................................................................41

18.1.2 Indemnifying Party...............................................................................................................41

18.1.3 Indemnity Procedures. ........................................................................................................41

18.2Consequential Damages. ....................................................................................................................41

18.3Insurance. ............................................................................................................................................42

18.3.1 ...................................................................................................................................................42

18.3.2 ...................................................................................................................................................42

18.3.3 ...................................................................................................................................................42

18.3.4 ...................................................................................................................................................42

18.3.5 ...................................................................................................................................................42

18.3.6 ...................................................................................................................................................42

18.3.7 ...................................................................................................................................................42

18.3.8 ...................................................................................................................................................42

18.3.9 ...................................................................................................................................................42

18.3.10.................................................................................................................................................43

18.3.11.................................................................................................................................................43

Article 19. Assignment..........................................................................................................................43

19.1 Assignment......................................................................................................................................43

Article 20. Severability..........................................................................................................................43

20.1Severability. .........................................................................................................................................43

21.1Comparability.......................................................................................................................................43

Article 22. Confidentiality......................................................................................................................44

22.1Confidentiality. .....................................................................................................................................44

22.1.1 Term. ...................................................................................................................................44

22.1.2 Scope. ................................................................................................................................. 44

22.1.3 Release of Confidential Information....................................................................................44

22.1.4 Rights. ................................................................................................................................. 44

22.1.5 No Warranties. ....................................................................................................................44

22.1.6 Standard of Care.................................................................................................................45

22.1.7 Order of Disclosure. ............................................................................................................45

22.1.8 Termination of Agreement...................................................................................................45

22.1.9 Remedies. ...........................................................................................................................45

22.1.10 Disclosure to FERC, its Staff, or a State.............................................................................45

22.1.11.................................................................................................................................................46

Article 23. Environmental Releases .....................................................................................................46

23.146

Article 24. Information Requests ..........................................................................................................46

24.1Information Acquisition. .......................................................................................................................46

24.2Information Submission by Participating TO. ......................................................................................46

24.3Updated Information Submission by Interconnection Customer. ........................................................46

24.4Information Supplementation...............................................................................................................47

Article 25. Information Access and Audit Rights ..................................................................................47

25.1Information Access. .............................................................................................................................47

25.2Reporting of Non-Force Majeure Events. ............................................................................................47

25.3Audit Rights..........................................................................................................................................48

25.3.1 ...................................................................................................................................................48

25.3.2 ...................................................................................................................................................48

25.4Audit Rights Periods. ...........................................................................................................................48

25.4.1 Audit Rights Period for Construction-Related Accounts and Records................................48

25.4.2 Audit Rights Period for All Other Accounts and Records....................................................48

25.5Audit Results. .......................................................................................................................................48

25.5.1 ...................................................................................................................................................48

Article 26. Subcontractors ....................................................................................................................49

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Appendix V

26.1General. ...............................................................................................................................................49

26.2Responsibility of Principal....................................................................................................................49

26.3No Limitation by Insurance. .................................................................................................................49

Article 27. Disputes ..............................................................................................................................49

27.1Submission. .........................................................................................................................................49

27.2External Arbitration Procedures...........................................................................................................49

27.3Arbitration Decisions............................................................................................................................50

27.4Costs....................................................................................................................................................50

Article 28. Representations, Warranties, and Covenants ....................................................................50

28.1General. ...............................................................................................................................................50

28.1.1 Good Standing. ...................................................................................................................50

28.1.2 Authority. .............................................................................................................................50

28.1.3 No Conflict...........................................................................................................................50

28.1.4 Consent and Approval.........................................................................................................50

Article 29. [Reserved]...........................................................................................................................50

Article 30. Miscellaneous......................................................................................................................50

30.1Binding Effect.......................................................................................................................................50

30.2 Conflicts...................................................................................................................................51

30.3 Rules of Interpretation.............................................................................................................51

30.4Entire Agreement.................................................................................................................................51

30.5No Third Party Beneficiaries................................................................................................................51

30.6Waiver..................................................................................................................................................51

30.7Headings..............................................................................................................................................51

30.8Multiple Counterparts...........................................................................................................................51

30.9Amendment..........................................................................................................................................51

30.10 Modification by the Parties..............................................................................................................52

30.11 Reservation of Rights......................................................................................................................52

30.12 No Partnership. ...............................................................................................................................52

30.13 Joint and Several Obligations. ........................................................................................................52

Appendix A to LGIA Interconnection Facilities, Network, and Distribution Upgrades................................55

Appendix B to LGIA Milestones .................................................................................................................56

Appendix C to LGIA Interconnection Details...............................................................................................57

Appendix D to LGIA Security Arrangements Details ..................................................................................58

Appendix E to LGIA Commercial Operation Date.......................................................................................59

Appendix F to LGIA Addresses for Delivery of Notices and Billings...........................................................60

Appendix G to LGIA [Not Used] .................................................................................................................61

Appendix H to LGIA INTERCONNECTION REQUIREMENTS FOR A WIND GENERATING PLANT......62

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California Independent System Operator Corporation

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November 27, 2018

Appendix V

Appendix V 

STANDARD LARGE GENERATOR INTERCONNECTION AGREEMENT

[INTERCONNECTION CUSTOMER]

[PARTICIPATING TO]

CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION

THIS STANDARD LARGE GENERATOR INTERCONNECTION AGREEMENT (“LGIA”) is made and 

entered into this ____ day of _______________ 20___, by and among ________________, a 

_______________ organized and existing under the laws of the State/Commonwealth of _________ 

("Interconnection Customer" with a Large Generating Facility), ________________, a corporation 

organized and existing under the laws of the State of California ("Participating TO"), and California 

Independent System Operator Corporation, a California nonprofit public benefit corporation organized and 

existing under the laws of the State of California ("CAISO"). Interconnection Customer, Participating TO, 

and CAISO each may be referred to as a "Party" or collectively as the "Parties."

RECITALS

WHEREAS, CAISO exercises Operational Control over the CAISO Controlled Grid; and

WHEREAS, the Participating TO owns, operates, and maintains the Participating TO’s Transmission 

System; and

WHEREAS, Interconnection Customer intends to own, lease and/or control and operate the Generating

Facility identified as a Large Generating Facility in Appendix C to this LGIA; and

WHEREAS, Interconnection Customer, Participating TO, and CAISO have agreed to enter into this LGIA 

for the purpose of interconnecting the Large Generating Facility with the Participating TO’s Transmission 

System;

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

agreed:

When used in this LGIA, terms with initial capitalization that are not defined in Article 1 shall have the 

meanings specified in the Article in which they are used.

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Appendix V

Article 1. Definitions 

Adverse System Impact shall mean the negative effects due to technical or operational limits on 

conductors or equipment being exceeded that may compromise the safety and reliability of the 

electric system.

Affected System shall mean an electric system other than the CAISO Controlled Grid that may 

be affected by the proposed interconnection, including the Participating TO’s electric system that 

is not part of the CAISO Controlled Grid.

Affiliate shall mean, with respect to a corporation, partnership or other entity, each such other 

corporation, partnership or other entity that directly or indirectly, through one or more 

intermediaries, controls, is controlled by, or is under common control with, such corporation, 

partnership or other entity.

Applicable Laws and Regulations shall mean all duly promulgated applicable federal, state and 

local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or 

administrative orders, permits and other duly authorized actions of any Governmental Authority.

Applicable Reliability Council shall mean the Western Electricity Coordinating Council or its 

successor.

Applicable Reliability Standards shall mean the requirements and guidelines of NERC, the 

Applicable Reliability Council, and the Balancing Authority Area of the Participating TO’s 

Transmission System to which the Generating Facility is directly connected, including 

requirements adopted pursuant to Section 215 of the Federal Power Act.

Balancing Authority shall mean the responsible entity that integrates resource plans ahead of 

time, maintains load-interchange-generation balance within a Balancing Authority Area, and 

supports Interconnection frequency in real time.

Balancing Authority Area shall mean the collection of generation, transmission, and loads 

within the metered boundaries of the Balancing Authority. The Balancing Authority maintains 

load-resource balance within this area.

Base Case shall mean the base case power flow, short circuit, and stability data bases used for 

the Interconnection Studies.

Breach shall mean the failure of a Party to perform or observe any material term or condition of 

this LGIA.

Breaching Party shall mean a Party that is in Breach of this LGIA.

Business Day shall mean Monday through Friday, excluding federal holidays and the day after 

Thanksgiving Day.

Calendar Day shall mean any day including Saturday, Sunday or a federal holiday.

Commercial Operation shall mean the status of an Electric Generating Unit at a Generating 

Facility that has commenced generating electricity for sale, excluding electricity generated during 

Trial Operation.

Commercial Operation Date of an Electric Generating Unit shall mean the date on which the 

Electric Generating Unit at the Generating Facility commences Commercial Operation as agreed 

to by the applicable Participating TO and the Interconnection Customer pursuant to Appendix E to 

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Appendix V

this LGIA.

Confidential Information shall mean any confidential, proprietary or trade secret information of a 

plan, specification, pattern, procedure, design, device, list, concept, policy or compilation relating 

to the present or planned business of a Party, which is designated as confidential by the Party 

supplying the information, whether conveyed orally, electronically, in writing, through inspection, 

or otherwise, subject to Article 22.1.2.

Default shall mean the failure of a Breaching Party to cure its Breach in accordance with Article 

17 of this LGIA.

Distribution System shall mean those non-CAISO-controlled transmission and distribution 

facilities owned by the Participating TO.

Distribution Upgrades shall mean the additions, modifications, and upgrades to the Participating 

TO’s Distribution System. Distribution Upgrades do not include Interconnection Facilities.

Effective Date shall mean the date on which this LGIA becomes effective upon execution by the 

Parties subject to acceptance by FERC, or if filed unexecuted, upon the date specified by FERC.

Electric Generating Unit shall mean an individual electric generator and its associated plant and 

apparatus whose electrical output is capable of being separately identified and metered.

Emergency Condition shall mean a condition or situation: (1) that in the judgment of the Party 

making the claim is imminently likely to endanger life or property; or (2) that, in the case of the 

CAISO, is imminently likely (as determined in a non-discriminatory manner) to cause a material 

adverse effect on the security of, or damage to, the CAISO Controlled Grid or the electric systems 

of others to which the CAISO Controlled Grid is directly connected; (3) that, in the case of the 

Participating TO, is imminently likely (as determined in a non-discriminatory manner) to cause a 

material adverse effect on the security of, or damage to, the Participating TO’s Transmission 

System, Participating TO’s Interconnection Facilities, Distribution System, or the electric systems 

of others to which the Participating TO’s electric system is directly connected; or (4) that, in the 

case of the Interconnection Customer, is imminently likely (as determined in a non-discriminatory 

manner) to cause a material adverse effect on the security of, or damage to, the Generating 

Facility or Interconnection Customer’s Interconnection Facilities. System restoration and black 

start shall be considered Emergency Conditions; provided, that Interconnection Customer is not 

obligated by this LGIA to possess black start capability.

Environmental Law shall mean Applicable Laws or Regulations relating to pollution or protection 

of the environment or natural resources.

Federal Power Act shall mean the Federal Power Act, as amended, 16 U.S.C. §§ 791a et seq.

FERC shall mean the Federal Energy Regulatory Commission or its successor.

Force Majeure shall mean any act of God, labor disturbance, act of the public enemy, war, 

insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment, 

any order, regulation or restriction imposed by governmental, military or lawfully established 

civilian authorities, or any other cause beyond a Party’s control. A Force Majeure event does not 

include acts of negligence or intentional wrongdoing by the Party claiming Force Majeure.

Generating Facility shall mean the Interconnection Customer's Electric Generating Unit(s) used 

for the production of electricity identified in the Interconnection Customer’s Interconnection 

Request, but shall not include the Interconnection Customer's Interconnection Facilities.

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Appendix V

Generating Facility Capacity shall mean the net capacity of the Generating Facility and the 

aggregate net capacity of the Generating Facility where it includes multiple energy production 

devices.

Good Utility Practice shall mean any of the practices, methods and acts engaged in or approved 

by a significant portion of the electric utility industry during the relevant time period, or any of the 

practices, methods and acts which, in the exercise of reasonable judgment in light of the facts 

known at the time the decision was made, could have been expected to accomplish the desired 

result at a reasonable cost consistent with good business practices, reliability, safety and 

expedition. Good Utility Practice is not intended to be any one of a number of the optimum 

practices, methods, or acts to the exclusion of all others, but rather to be acceptable practices, 

methods, or acts generally accepted in the region.

Governmental Authority shall mean any federal, state, local or other governmental, regulatory 

or administrative agency, court, commission, department, board, or other governmental 

subdivision, legislature, rulemaking board, tribunal, or other governmental authority having 

jurisdiction over the Parties, their respective facilities, or the respective services they provide, and 

exercising or entitled to exercise any administrative, executive, police, or taxing authority or 

power; provided, however, that such term does not include the Interconnection Customer, 

CAISO, Participating TO, or any Affiliate thereof.

Hazardous Substances shall mean any chemicals, materials or substances defined as or

included in the definition of "hazardous substances," "hazardous wastes," "hazardous materials," 

"hazardous constituents," "restricted hazardous materials," "extremely hazardous substances," 

"toxic substances," "radioactive substances," "contaminants," "pollutants," "toxic pollutants" or 

words of similar meaning and regulatory effect under any applicable Environmental Law, or any 

other chemical, material or substance, exposure to which is prohibited, limited or regulated by any 

applicable Environmental Law.

Initial Synchronization Date shall mean the date upon which an Electric Generating Unit is 

initially synchronized and upon which Trial Operation begins.

In-Service Date shall mean the date upon which the Interconnection Customer reasonably 

expects it will be ready to begin use of the Participating TO’s Interconnection Facilities to obtain 

back feed power.

Interconnection Customer's Interconnection Facilities shall mean all facilities and equipment, 

as identified in Appendix A of this LGIA, that are located between the Generating Facility and the 

Point of Change of Ownership, including any modification, addition, or upgrades to such facilities 

and equipment necessary to physically and electrically interconnect the Generating Facility to the 

Participating TO’s Transmission System. Interconnection Customer's Interconnection Facilities 

are sole use facilities.

Interconnection Facilities shall mean the Participating TO’s Interconnection Facilities and the 

Interconnection Customer's Interconnection Facilities. Collectively, Interconnection Facilities 

include all facilities and equipment between the Generating Facility and the Point of 

Interconnection, including any modification, additions or upgrades that are necessary to 

physically and electrically interconnect the Generating Facility to the Participating TO’s 

Transmission System. Interconnection Facilities are sole use facilities and shall not include 

Distribution Upgrades, Stand Alone Network Upgrades or Network Upgrades.

Interconnection Facilities Study shall mean the study conducted or caused to be performed by 

the CAISO, in coordination with the applicable Participating TO(s), or a third party consultant for 

the Interconnection Customer to determine a list of facilities (including the Participating TO’s 

Interconnection Facilities, Network Upgrades, and Distribution Upgrades), the cost of those 

facilities, and the time required to interconnect the Generating Facility with the Participating TO’s 

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Appendix V

Transmission System.

Interconnection Facilities Study Agreement shall mean the agreement between the 

Interconnection Customer and the CAISO for conducting the Interconnection Facilities Study.

Interconnection Feasibility Study shall mean the preliminary evaluation conducted or caused to 

be performed by the CAISO, in coordination with the applicable Participating TO(s), or a third 

party consultant for the Interconnection Customer of the system impact and cost of 

interconnecting the Generating Facility to the Participating TO’s Transmission System.

Interconnection Handbook shall mean a handbook, developed by the Participating TO and 

posted on the Participating TO’s web site or otherwise made available by the Participating TO, 

describing technical and operational requirements for wholesale generators and loads connected 

to the Participating TO's portion of the CAISO Controlled Grid, as such handbook may be 

modified or superseded from time to time. Participating TO's standards contained in the 

Interconnection Handbook shall be deemed consistent with Good Utility Practice and Applicable 

Reliability Standards. In the event of a conflict between the terms of this LGIA and the terms of 

the Participating TO's Interconnection Handbook, the terms in this LGIA shall apply.

Interconnection Request shall mean a request, in the form of Appendix 1 to the Standard Large 

Generator Interconnection Procedures, in accordance with the CAISO Tariff.

Interconnection Service shall mean the service provided by the Participating TO and CAISO 

associated with interconnecting the Interconnection Customer’s Generating Facility to the 

Participating TO’s Transmission System and enabling the CAISO Controlled Grid to receive 

electric energy and capacity from the Generating Facility at the Point of Interconnection, pursuant 

to the terms of this LGIA, the Participating TO’s Transmission Owner Tariff, and the CAISO Tariff.

Interconnection Study shall mean any of the following studies: the Interconnection Feasibility 

Study, the Interconnection System Impact Study, and the Interconnection Facilities Study 

conducted or caused to be performed by the CAISO, in coordination with the applicable 

Participating TO(s), or a third party consultant for the Interconnection Customer pursuant to the 

Standard Large Generator Interconnection Procedures.

Interconnection System Impact Study shall mean the engineering study conducted or caused 

to be performed by the CAISO, in coordination with the applicable Participating TO(s), or a third 

party consultant for the Interconnection Customer that evaluates the impact of the proposed 

interconnection on the safety and reliability of the Participating TO’s Transmission System and, if 

applicable, an Affected System. The study shall identify and detail the system impacts that would 

result if the Generating Facility were interconnected without project modifications or system 

modifications, focusing on the Adverse System Impacts identified in the Interconnection 

Feasibility Study, or to study potential impacts, including but not limited to those identified in the 

Scoping Meeting as described in the Standard Large Generator Interconnection Procedures.

IRS shall mean the Internal Revenue Service.

CAISO Controlled Grid shall mean the system of transmission lines and associated facilities of 

the parties to the Transmission Control Agreement that have been placed under the CAISO’s 

Operational Control.

CAISO Tariff shall mean the CAISO’s tariff, as filed with FERC, and as amended or 

supplemented from time to time, or any successor tariff.

Large Generating Facility shall mean a Generating Facility having a Generating Facility 

Capacity of more than 20 MW.

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Loss shall mean any and all damages, losses, and claims, including claims and actions relating 

to injury to or death of any person or damage to property, demand, suits, recoveries, costs and 

expenses, court costs, attorney fees, and all other obligations by or to third parties.

Material Modification shall mean those modifications that have a material impact on the cost or 

timing of any Interconnection Request or any other valid interconnection request with a later 

queue priority date.

Metering Equipment shall mean all metering equipment installed or to be installed for measuring 

the output of the Generating Facility pursuant to this LGIA at the metering points, including but 

not limited to instrument transformers, MWh-meters, data acquisition equipment, transducers, 

remote terminal unit, communications equipment, phone lines, and fiber optics.

NERC shall mean the North American Electric Reliability Corporation or its successor 

organization.

Net Scheduled Generating Unit shall mean an Electric Generating Unit identified in a Net 

Scheduled PGA operated as a single unit such that the energy bid or self-schedule with the 

CAISO is the net value of the aggregate electrical net output of the Electric Generating Unit and 

the self-provided load.

Net Scheduled PGA shall mean a Net Scheduled Participating Generator Agreement specifying 

the special provisions for the operating relationship between a Net Scheduled Generating Unit 

and the CAISO, a pro forma version of which is set forth in Appendix B.3 of the CAISO Tariff.

Network Upgrades shall be Participating TO’s Delivery Network Upgrades and Participating 

TO’s Reliability Network Upgrades.

Operational Control shall mean the rights of the CAISO under the Transmission Control 

Agreement and the CAISO Tariff to direct the parties to the Transmission Control Agreement how 

to operate their transmission lines and facilities and other electric plant affecting the reliability of 

those lines and facilities for the purpose of affording comparable non-discriminatory transmission 

access and meeting applicable reliability criteria.

Participating TO’s Delivery Network Upgrades shall mean the additions, modifications, and 

upgrades to the Participating TO’s Transmission System at or beyond the Point of 

Interconnection, other than Reliability Network Upgrades, identified in the Interconnection 

Studies, as identified in Appendix A, to relieve constraints on the CAISO Controlled Grid.

Participating TO’s Interconnection Facilities shall mean all facilities and equipment owned, 

controlled or operated by the Participating TO from the Point of Change of Ownership to the Point 

of Interconnection as identified in Appendix A to this LGIA, including any modifications, additions 

or upgrades to such facilities and equipment. Participating TO’s Interconnection Facilities are 

sole use facilities and shall not include Distribution Upgrades, Stand Alone Network Upgrades or 

Network Upgrades.

Participating TO’s Reliability Network Upgrades shall mean the additions, modifications, and 

upgrades to the Participating TO’s Transmission System at or beyond the Point of 

Interconnection, identified in the Interconnection Studies, as identified in Appendix A, necessary 

to interconnect the Large Generating Facility safely and reliably to the Participating TO’s 

Transmission System, which would not have been necessary but for the interconnection of the 

Large Generating Facility, including additions, modifications, and upgrades necessary to remedy 

short circuit or stability problems resulting from the interconnection of the Large Generating 

Facility to the Participating TO’s Transmission System. Participating TO’s Reliability Network 

Upgrades also include, consistent with Applicable Reliability Council practice, the Participating 

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TO’s facilities necessary to mitigate any adverse impact the Large Generating Facility’s 

interconnection may have on a path’s Applicable Reliability Council rating.

Participating TO’s Transmission System shall mean the facilities owned and operated by the 

Participating TO and that have been placed under the CAISO’s Operational Control, which 

facilities form part of the CAISO Controlled Grid.

Party or Parties shall mean the Participating TO, CAISO, Interconnection Customer or the 

applicable combination of the above.

Point of Change of Ownership shall mean the point, as set forth in Appendix A to this LGIA, 

where the Interconnection Customer's Interconnection Facilities connect to the Participating TO’s 

Interconnection Facilities.

Point of Interconnection shall mean the point, as set forth in Appendix A to this LGIA, where the 

Interconnection Facilities connect to the Participating TO’s Transmission System.

Reasonable Efforts shall mean, with respect to an action required to be attempted or taken by a 

Party under this LGIA, efforts that are timely and consistent with Good Utility Practice and are 

otherwise substantially equivalent to those a Party would use to protect its own interests.

Scoping Meeting shall mean the meeting among representatives of the Interconnection 

Customer, the Participating TO(s), other Affected Systems, and the CAISO conducted for the 

purpose of discussing alternative interconnection options, to exchange information including any 

transmission data and earlier study evaluations that would be reasonably expected to impact 

such interconnection options, to analyze such information, and to determine the potential feasible 

Points of Interconnection.

Stand Alone Network Upgrades shall mean Network Upgrades that the Interconnection 

Customer may construct without affecting day-to-day operations of the CAISO Controlled Grid or 

Affected Systems during their construction. The Participating TO, the CAISO, and the 

Interconnection Customer must agree as to what constitutes Stand Alone Network Upgrades and 

identify them in Appendix A to this LGIA.

Standard Large Generator Interconnection Procedures (LGIP) shall mean the CAISO 

protocol that sets forth the interconnection procedures applicable to an Interconnection Request 

pertaining to a Large Generating Facility that is included in CAISO Tariff Appendix U.

System Protection Facilities shall mean the equipment, including necessary protection signal

communications equipment, that protects (1) the Participating TO’s Transmission System, 

Participating TO’s Interconnection Facilities, CAISO Controlled Grid, and Affected Systems from 

faults or other electrical disturbances occurring at the Generating Facility and (2) the Generating 

Facility from faults or other electrical system disturbances occurring on the CAISO Controlled 

Grid, Participating TO’s Interconnection Facilities, and Affected Systems or on other delivery 

systems or other generating systems to which the CAISO Controlled Grid is directly connected.

Transmission Control Agreement shall mean CAISO FERC Electric Tariff No. 7.

Trial Operation shall mean the period during which the Interconnection Customer is engaged in 

on-site test operations and commissioning of an Electric Generating Unit prior to Commercial 

Operation.

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Article 2. Effective Date and Term

2.1 Effective Date. This LGIA shall become effective upon execution by the Parties subject to 

acceptance by FERC (if applicable), or if filed unexecuted, upon the date specified by FERC. 

The CAISO and Participating TO shall promptly file this LGIA with FERC upon execution in 

accordance with Article 3.1, if required.

2.2 Term of Agreement. Subject to the provisions of Article 2.3, this LGIA shall remain in effect for a 

period of ____ years from the Effective Date (Term Specified in Individual Agreements to be ten 

(10) years or such other longer period as the Interconnection Customer may request) and shall 

be automatically renewed for each successive one-year period thereafter.

2.3 Termination Procedures.

2.3.1 Written Notice. This LGIA may be terminated by the Interconnection Customer after giving the 

CAISO and the Participating TO ninety (90) Calendar Days advance written notice, or by the 

CAISO and the Participating TO notifying FERC after the Generating Facility permanently ceases 

Commercial Operation.

2.3.2 Default. A Party may terminate this LGIA in accordance with Article 17.

2.3.3 Suspension of Work. This LGIA may be deemed terminated in accordance with Article 5.16.

2.3.4 Notwithstanding Articles 2.3.1, 2.3.2, and 2.3.3, no termination shall become effective until the 

Parties have complied with all Applicable Laws and Regulations applicable to such termination, 

including the filing with FERC of a notice of termination of this LGIA, which notice has been 

accepted for filing by FERC.

2.4 Termination Costs. If this LGIA terminates pursuant to Article 2.3 above, the Interconnection 

Customer shall pay all costs incurred or irrevocably committed to be incurred in association with 

the Interconnection Customer’s interconnection (including any cancellation costs relating to 

orders or contracts for Interconnection Facilities and equipment) and other expenses, including 

any Network Upgrades and Distribution Upgrades for which the Participating TO or CAISO has 

incurred expenses or has irrevocably committed to incur expenses and has not been reimbursed 

by the Interconnection Customer, as of the date of the other Parties’ receipt of the notice of 

termination, subject to the limitations set forth in this Article 2.4. Nothing in this Article 2.4 shall 

limit the Parties’ rights under Article 17.

2.4.1 Notwithstanding the foregoing, in the event of termination by a Party, all Parties shall use 

commercially Reasonable Efforts to mitigate the costs, damages and charges arising as a 

consequence of termination. With respect to any portion of the Participating TO’s Interconnection 

Facilities that have not yet been constructed or installed, the Participating TO shall to the extent 

possible and with the Interconnection Customer's authorization cancel any pending orders of, or 

return, any materials or equipment for, or contracts for construction of, such facilities; provided 

that in the event the Interconnection Customer elects not to authorize such cancellation, the 

Interconnection Customer shall assume all payment obligations with respect to such materials, 

equipment, and contracts, and the Participating TO shall deliver such material and equipment, 

and, if necessary, assign such contracts, to the Interconnection Customer as soon as practicable, 

at the Interconnection Customer's expense. To the extent that the Interconnection Customer has 

already paid the Participating TO for any or all such costs of materials or equipment not taken by 

the Interconnection Customer, the Participating TO shall promptly refund such amounts to the 

Interconnection Customer, less any costs, including penalties, incurred by the Participating TO to 

cancel any pending orders of or return such materials, equipment, or contracts.

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2.4.2 The Participating TO may, at its option, retain any portion of such materials, equipment, or 

facilities that the Interconnection Customer chooses not to accept delivery of, in which case the 

Participating TO shall be responsible for all costs associated with procuring such materials, 

equipment, or facilities.

2.4.3 With respect to any portion of the Interconnection Facilities, and any other facilities already 

installed or constructed pursuant to the terms of this LGIA, Interconnection Customer shall be 

responsible for all costs associated with the removal, relocation or other disposition or retirement 

of such materials, equipment, or facilities.

2.5 Disconnection. Upon termination of this LGIA, the Parties will take all appropriate steps to 

disconnect the Large Generating Facility from the Participating TO’s Transmission System. All 

costs required to effectuate such disconnection shall be borne by the terminating Party, unless 

such termination resulted from the non-terminating Party’s Default of this LGIA or such nonterminating Party otherwise is responsible for these costs under this LGIA.

2.6 Survival. This LGIA shall continue in effect after termination to the extent necessary to provide 

for final billings and payments and for costs incurred hereunder, including billings and payments 

pursuant to this LGIA; to permit the determination and enforcement of liability and indemnification 

obligations arising from acts or events that occurred while this LGIA was in effect; and to permit 

each Party to have access to the lands of the other Parties pursuant to this LGIA or other 

applicable agreements, to disconnect, remove or salvage its own facilities and equipment.

Article 3. Regulatory Filings and CAISO Tariff Compliance 

3.1 Filing. The Participating TO and the CAISO shall file this LGIA (and any amendment hereto) with 

the appropriate Governmental Authority(ies), if required. The Interconnection Customer may 

request that any information so provided be subject to the confidentiality provisions of Article 22. 

If the Interconnection Customer has executed this LGIA, or any amendment thereto, the 

Interconnection Customer shall reasonably cooperate with the Participating TO and CAISO with 

respect to such filing and to provide any information reasonably requested by the Participating TO 

or CAISO needed to comply with applicable regulatory requirements.

3.2 Agreement Subject to CAISO Tariff. The Interconnection Customer will comply with all 

applicable provisions of the CAISO Tariff, including the LGIP.

3.3 Relationship Between this LGIA and the CAISO Tariff. With regard to rights and obligations 

between the Participating TO and the Interconnection Customer, if and to the extent a matter is 

specifically addressed by a provision of this LGIA (including any appendices, schedules or other 

attachments to this LGIA), the provisions of this LGIA shall govern. If and to the extent a 

provision of this LGIA is inconsistent with the CAISO Tariff and dictates rights and obligations 

between the CAISO and the Participating TO or the CAISO and the Interconnection Customer, 

the CAISO Tariff shall govern.

3.4 Relationship Between this LGIA and the Net Scheduled PGA. With regard to the rights and 

obligations of a Net Scheduled Generating Unit that has entered into a Net Scheduled PGA with 

the CAISO and has entered into this LGIA, if and to the extent a matter is specifically addressed 

by a provision of the Net Scheduled PGA that is inconsistent with this LGIA, the terms of the Net 

Scheduled PGA shall govern.

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Article 4. Scope of Service

4.1 Interconnection Service. Interconnection Service allows the Interconnection Customer to 

connect the Large Generating Facility to the Participating TO’s Transmission System and be 

eligible to deliver the Large Generating Facility’s output using the available capacity of the CAISO 

Controlled Grid. To the extent the Interconnection Customer wants to receive Interconnection 

Service, the Participating TO shall construct facilities identified in Appendices A and C that the 

Participating TO is responsible to construct.

Interconnection Service does not necessarily provide the Interconnection Customer with the 

capability to physically deliver the output of its Large Generating Facility to any particular load on 

the CAISO Controlled Grid without incurring congestion costs. In the event of transmission

constraints on the CAISO Controlled Grid, the Interconnection Customer's Large Generating 

Facility shall be subject to the applicable congestion management procedures in the CAISO Tariff 

in the same manner as all other resources.

4.2 Provision of Service. The Participating TO and the CAISO shall provide Interconnection 

Service for the Large Generating Facility.

4.3 Performance Standards. Each Party shall perform all of its obligations under this LGIA in 

accordance with Applicable Laws and Regulations, Applicable Reliability Standards, and Good 

Utility Practice, and to the extent a Party is required or prevented or limited in taking any action by 

such regulations and standards, such Party shall not be deemed to be in Breach of this LGIA for 

its compliance therewith. If such Party is the CAISO or Participating TO, then that Party shall 

amend the LGIA and submit the amendment to FERC for approval.

4.4 No Transmission Service. The execution of this LGIA does not constitute a request for, nor the 

provision of, any transmission service under the CAISO Tariff, and does not convey any right to 

deliver electricity to any specific customer or point of delivery.

4.5 Interconnection Customer Provided Services. The services provided by Interconnection 

Customer under this LGIA are set forth in Article 9.6 and Article 13.5.1. Interconnection 

Customer shall be paid for such services in accordance with Article 11.6.

Appendix 5. Facilities, Engineering Procurement, and Construction 

Interconnection Facilities, Network Upgrades, and Distribution Upgrades shall be studied, designed, and 

constructed pursuant to Good Utility Practice. Such studies, design and construction shall be based on 

the assumed accuracy and completeness of all technical information received by the Participating TO and 

the CAISO from the Interconnection Customer associated with interconnecting the Large Generating 

Facility.

5.1 Options. Unless otherwise mutually agreed among the Parties, the Interconnection Customer 

shall select the In-Service Date, Initial Synchronization Date, and Commercial Operation Date; 

and either Standard Option or Alternate Option set forth below for completion of the Participating 

TO's Interconnection Facilities and Network Upgrades as set forth in Appendix A, Interconnection 

Facilities, Network Upgrades, and Distribution Upgrades, and such dates and selected option 

shall be set forth in Appendix B, Milestones.

5.1.1 Standard Option. The Participating TO shall design, procure, and construct the Participating 

TO's Interconnection Facilities, Network Upgrades, and Distribution Upgrades, using Reasonable 

Efforts to complete the Participating TO's Interconnection Facilities, Network Upgrades, and 

Distribution Upgrades by the dates set forth in Appendix B, Milestones. The Participating TO 

shall not be required to undertake any action which is inconsistent with its standard safety 

practices, its material and equipment specifications, its design criteria and construction 

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procedures, its labor agreements, and Applicable Laws and Regulations. In the event the 

Participating TO reasonably expects that it will not be able to complete the Participating TO's 

Interconnection Facilities, Network Upgrades, and Distribution Upgrades by the specified dates, 

the Participating TO shall promptly provide written notice to the Interconnection Customer and the 

CAISO and shall undertake Reasonable Efforts to meet the earliest dates thereafter.

5.1.2 Alternate Option. If the dates designated by the Interconnection Customer are acceptable to the 

Participating TO, the Participating TO shall so notify the Interconnection Customer within thirty 

(30) Calendar Days, and shall assume responsibility for the design, procurement and construction 

of the Participating TO's Interconnection Facilities by the designated dates.

If the Participating TO subsequently fails to complete the Participating TO's Interconnection 

Facilities by the In-Service Date, to the extent necessary to provide back feed power; or fails to 

complete Network Upgrades by the Initial Synchronization Date to the extent necessary to allow 

for Trial Operation at full power output, unless other arrangements are made by the Parties for 

such Trial Operation; or fails to complete the Network Upgrades by the Commercial Operation 

Date, as such dates are reflected in Appendix B, Milestones; the Participating TO shall pay the 

Interconnection Customer liquidated damages in accordance with Article 5.3, Liquidated 

Damages, provided, however, the dates designated by the Interconnection Customer shall be 

extended day for day for each day that the CAISO refuses to grant clearances to install 

equipment.

5.1.3 Option to Build. If the dates designated by the Interconnection Customer are not acceptable to 

the Participating TO, the Participating TO shall so notify the Interconnection Customer within 

thirty (30) Calendar Days, and unless the Parties agree otherwise, the Interconnection Customer 

shall have the option to assume responsibility for the design, procurement and construction of the 

Participating TO's Interconnection Facilities and Stand Alone Network Upgrades. If the 

Interconnection Customer elects to exercise its option to assume responsibility for the design, 

procurement and construction of the Participating TO’s Interconnection Facilities and Stand Alone 

Network Upgrades, it shall so notify the Participating TO within thirty (30) Calendar Days of 

receipt of the Participating TO’s notification that the designated dates are not acceptable to the 

Participating TO. The Participating TO, CAISO, and Interconnection Customer must agree as to 

what constitutes Stand Alone Network Upgrades and identify such Stand Alone Network 

Upgrades in Appendix A to this LGIA. Except for Stand Alone Network Upgrades, the 

Interconnection Customer shall have no right to construct Network Upgrades under this option.

5.1.4 Negotiated Option. If the Interconnection Customer elects not to exercise its option under 

Article 5.1.3, Option to Build, the Interconnection Customer shall so notify the Participating TO 

within thirty (30) Calendar Days of receipt of the Participating TO’s notification that the designated 

dates are not acceptable to the Participating TO, and the Parties shall in good faith attempt to 

negotiate terms and conditions (including revision of the specified dates and liquidated damages, 

the provision of incentives or the procurement and construction of a portion of the Participating 

TO's Interconnection Facilities and Stand Alone Network Upgrades by the Interconnection 

Customer) pursuant to which the Participating TO is responsible for the design, procurement and 

construction of the Participating TO's Interconnection Facilities and Network Upgrades. If the 

Parties are unable to reach agreement on such terms and conditions, the Participating TO shall 

assume responsibility for the design, procurement and construction of the Participating TO's 

Interconnection Facilities and Network Upgrades pursuant to Article 5.1.1, Standard Option.

5.2 General Conditions Applicable to Option to Build. If the Interconnection Customer assumes 

responsibility for the design, procurement and construction of the Participating TO's 

Interconnection Facilities and Stand Alone Network Upgrades,

(1) the Interconnection Customer shall engineer, procure equipment, and construct the 

Participating TO's Interconnection Facilities and Stand Alone Network Upgrades (or 

portions thereof) using Good Utility Practice and using standards and specifications 

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provided in advance by the Participating TO;

(2) The Interconnection Customer’s engineering, procurement and construction of the 

Participating TO's Interconnection Facilities and Stand Alone Network Upgrades shall 

comply with all requirements of law to which the Participating TO would be subject in the 

engineering, procurement or construction of the Participating TO's Interconnection 

Facilities and Stand Alone Network Upgrades;

(3) the Participating TO shall review, and the Interconnection Customer shall obtain the 

Participating TO’s approval of, the engineering design, equipment acceptance tests, and 

the construction of the Participating TO's Interconnection Facilities and Stand Alone 

Network Upgrades, which approval shall not be unreasonably withheld, and the CAISO 

may, at its option, review the engineering design, equipment acceptance tests, and the 

construction of the Participating TO's Interconnection Facilities and Stand Alone Network 

Upgrades;

(4) prior to commencement of construction, the Interconnection Customer shall provide to 

the Participating TO, with a copy to the CAISO for informational purposes, a schedule for 

construction of the Participating TO's Interconnection Facilities and Stand Alone Network 

Upgrades, and shall promptly respond to requests for information from the Participating 

TO; 

(5) at any time during construction, the Participating TO shall have the right to gain 

unrestricted access to the Participating TO's Interconnection Facilities and Stand Alone 

Network Upgrades and to conduct inspections of the same;

(6) at any time during construction, should any phase of the engineering, equipment 

procurement, or construction of the Participating TO's Interconnection Facilities and 

Stand Alone Network Upgrades not meet the standards and specifications provided by 

the Participating TO, the Interconnection Customer shall be obligated to remedy 

deficiencies in that portion of the Participating TO's Interconnection Facilities and Stand 

Alone Network Upgrades;

(7) the Interconnection Customer shall indemnify the CAISO and Participating TO for claims 

arising from the Interconnection Customer's construction of the Participating TO's 

Interconnection Facilities and Stand Alone Network Upgrades under the terms and 

procedures applicable to Article 18.1 Indemnity;

(8) The Interconnection Customer shall transfer control of the Participating TO's 

Interconnection Facilities to the Participating TO and shall transfer Operational Control of 

Stand Alone Network Upgrades to the CAISO;

(9) Unless the Parties otherwise agree, the Interconnection Customer shall transfer 

ownership of the Participating TO's Interconnection Facilities and Stand Alone Network 

Upgrades to the Participating TO. As soon as reasonably practicable, but within twelve 

months after completion of the construction of the Participating TO’s Interconnection 

Facilities and Stand Alone Network Upgrades, the Interconnection Customer shall 

provide an invoice of the final cost of the construction of the Participating TO’s 

Interconnection Facilities and Stand Alone Network Upgrades to the Participating TO, 

which invoice shall set forth such costs in sufficient detail to enable the Participating TO 

to reflect the proper costs of such facilities in its transmission rate base and to identify the 

investment upon which refunds will be provided;

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(10) the Participating TO shall accept for operation and maintenance the Participating TO's 

Interconnection Facilities and Stand Alone Network Upgrades to the extent engineered, 

procured, and constructed in accordance with this Article 5.2; and

(11) The Interconnection Customer’s engineering, procurement and construction of the 

Participating TO's Interconnection Facilities and Stand Alone Network Upgrades shall 

comply with all requirements of the "Option to Build" conditions set forth in Appendix C. 

Interconnection Customer shall deliver to the Participating TO "as-built" drawings, 

information, and any other documents that are reasonably required by the Participating 

TO to assure that the Interconnection Facilities and Stand-Alone Network Upgrades are 

built to the standards and specifications required by the Participating TO.

5.3 Liquidated Damages. The actual damages to the Interconnection Customer, in the event the 

Participating TO's Interconnection Facilities or Network Upgrades are not completed by the dates 

designated by the Interconnection Customer and accepted by the Participating TO pursuant to 

subparagraphs 5.1.2 or 5.1.4, above, may include Interconnection Customer’s fixed operation 

and maintenance costs and lost opportunity costs. Such actual damages are uncertain and 

impossible to determine at this time. Because of such uncertainty, any liquidated damages paid 

by the Participating TO to the Interconnection Customer in the event that the Participating TO 

does not complete any portion of the Participating TO's Interconnection Facilities or Network 

Upgrades by the applicable dates, shall be an amount equal to 1⁄2 of 1 percent per day of the 

actual cost of the Participating TO's Interconnection Facilities and Network Upgrades, in the 

aggregate, for which the Participating TO has assumed responsibility to design, procure and 

construct.

However, in no event shall the total liquidated damages exceed 20 percent of the actual cost of 

the Participating TO’s Interconnection Facilities and Network Upgrades for which the Participating 

TO has assumed responsibility to design, procure, and construct. The foregoing payments will be 

made by the Participating TO to the Interconnection Customer as just compensation for the 

damages caused to the Interconnection Customer, which actual damages are uncertain and 

impossible to determine at this time, and as reasonable liquidated damages, but not as a penalty 

or a method to secure performance of this LGIA. Liquidated damages, when the Parties agree to 

them, are the exclusive remedy for the Participating TO’s failure to meet its schedule.

No liquidated damages shall be paid to the Interconnection Customer if: (1) the Interconnection 

Customer is not ready to commence use of the Participating TO's Interconnection Facilities or 

Network Upgrades to take the delivery of power for the Electric Generating Unit's Trial Operation 

or to export power from the Electric Generating Unit on the specified dates, unless the 

Interconnection Customer would have been able to commence use of the Participating TO's 

Interconnection Facilities or Network Upgrades to take the delivery of power for Electric 

Generating Unit's Trial Operation or to export power from the Electric Generating Unit, but for the 

Participating TO’s delay; (2) the Participating TO’s failure to meet the specified dates is the result 

of the action or inaction of the Interconnection Customer or any other interconnection customer 

who has entered into an interconnection agreement with the CAISO and/or Participating TO, 

action or inaction by the CAISO, or any cause beyond the Participating TO's reasonable control 

or reasonable ability to cure; (3) the Interconnection Customer has assumed responsibility for the 

design, procurement and construction of the Participating TO's Interconnection Facilities and 

Stand Alone Network Upgrades; or (4) the Parties have otherwise agreed.

In no event shall the CAISO have any responsibility or liability to the Interconnection Customer for 

liquidated damages pursuant to the provisions of this Article 5.3.

5.4 Power System Stabilizers. The Interconnection Customer shall procure, install, maintain and 

operate Power System Stabilizers in accordance with the guidelines and procedures established 

by the Applicable Reliability Council and in accordance with the provisions of Section 4.6.5.1 of 

the CAISO Tariff. The CAISO reserves the right to establish reasonable minimum acceptable 

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settings for any installed Power System Stabilizers, subject to the design and operating limitations 

of the Large Generating Facility. If the Large Generating Facility’s Power System Stabilizers are 

removed from service or not capable of automatic operation, the Interconnection Customer shall 

immediately notify the CAISO and the Participating TO and restore the Power System Stabilizers 

to operation as soon as possible. The CAISO shall have the right to order the reduction in output 

or disconnection of the Large Generating Facility if the reliability of the CAISO Controlled Grid 

would be adversely affected as a result of improperly tuned Power System Stabilizers. The 

requirements of this Article 5.4 shall not apply to wind generators of the induction type.

5.5 Equipment Procurement. If responsibility for construction of the Participating TO's 

Interconnection Facilities or Network Upgrades is to be borne by the Participating TO, then the 

Participating TO shall commence design of the Participating TO's Interconnection Facilities or 

Network Upgrades and procure necessary equipment as soon as practicable after all of the 

following conditions are satisfied, unless the Parties otherwise agree in writing:

5.5.1 The CAISO, in coordination with the applicable Participating TO(s), has completed the 

Interconnection Facilities Study pursuant to the Interconnection Facilities Study Agreement;

5.5.2 The Participating TO has received written authorization to proceed with design and procurement 

from the Interconnection Customer by the date specified in Appendix B, Milestones; and

5.5.3 The Interconnection Customer has provided security to the Participating TO in accordance with 

Article 11.5 by the dates specified in Appendix B, Milestones.

5.6 Construction Commencement. The Participating TO shall commence construction of the 

Participating TO's Interconnection Facilities and Network Upgrades for which it is responsible as 

soon as practicable after the following additional conditions are satisfied:

5.6.1 Approval of the appropriate Governmental Authority has been obtained for any facilities requiring 

regulatory approval;

5.6.2 Necessary real property rights and rights-of-way have been obtained, to the extent required for 

the construction of a discrete aspect of the Participating TO's Interconnection Facilities and 

Network Upgrades;

5.6.3 The Participating TO has received written authorization to proceed with construction from the 

Interconnection Customer by the date specified in Appendix B, Milestones; and

5.6.4 The Interconnection Customer has provided payment and security to the Participating TO in 

accordance with Article 11.5 by the dates specified in Appendix B, Milestones.

5.7 Work Progress. The Parties will keep each other advised periodically as to the progress of their 

respective design, procurement and construction efforts. Any Party may, at any time, request a 

progress report from another Party. If, at any time, the Interconnection Customer determines that 

the completion of the Participating TO's Interconnection Facilities will not be required until after 

the specified In-Service Date, the Interconnection Customer will provide written notice to the 

Participating TO and CAISO of such later date upon which the completion of the Participating 

TO's Interconnection Facilities will be required.

5.8 Information Exchange. As soon as reasonably practicable after the Effective Date, the Parties 

shall exchange information regarding the design and compatibility of the Interconnection 

Customer’s Interconnection Facilities and Participating TO’s Interconnection Facilities and 

compatibility of the Interconnection Facilities with the Participating TO’s Transmission System, 

and shall work diligently and in good faith to make any necessary design changes.

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5.9 Limited Operation. If any of the Participating TO's Interconnection Facilities or Network 

Upgrades are not reasonably expected to be completed prior to the Commercial Operation Date 

of the Electric Generating Unit, the Participating TO and/or CAISO, as applicable, shall, upon the 

request and at the expense of the Interconnection Customer, perform operating studies on a 

timely basis to determine the extent to which the Electric Generating Unit and the Interconnection 

Customer’s Interconnection Facilities may operate prior to the completion of the Participating 

TO's Interconnection Facilities or Network Upgrades consistent with Applicable Laws and 

Regulations, Applicable Reliability Standards, Good Utility Practice, and this LGIA. The

Participating TO and CAISO shall permit Interconnection Customer to operate the Electric 

Generating Unit and the Interconnection Customer’s Interconnection Facilities in accordance with 

the results of such studies.

5.10 Interconnection Customer's Interconnection Facilities. The Interconnection Customer shall, 

at its expense, design, procure, construct, own and install the Interconnection Customer’s 

Interconnection Facilities, as set forth in Appendix A.

5.10.1 Large Generating Facility and Interconnection Customer’s Interconnection Facilities 

Specifications. The Interconnection Customer shall submit initial specifications for the 

Interconnection Customer’s Interconnection Facilities and Large Generating Facility, including 

System Protection Facilities, to the Participating TO and the CAISO at least one hundred eighty 

(180) Calendar Days prior to the Initial Synchronization Date; and final specifications for review 

and comment at least ninety (90) Calendar Days prior to the Initial Synchronization Date. The

Participating TO and the CAISO shall review such specifications pursuant to this LGIA and the 

LGIP to ensure that the Interconnection Customer’s Interconnection Facilities and Large 

Generating Facility are compatible with the technical specifications, operational control, safety 

requirements, and any other applicable requirements of the Participating TO and the CAISO and 

comment on such specifications within thirty (30) Calendar Days of the Interconnection 

Customer's submission. All specifications provided hereunder shall be deemed confidential.

5.10.2 Participating TO’s and CAISO’s Review. The Participating TO’s and the CAISO’s review of the 

Interconnection Customer's final specifications shall not be construed as confirming, endorsing, 

or providing a warranty as to the design, fitness, safety, durability or reliability of the Large 

Generating Facility, or the Interconnection Customer’s Interconnection Facilities. Interconnection 

Customer shall make such changes to the Interconnection Customer’s Interconnection Facilities 

as may reasonably be required by the Participating TO or the CAISO, in accordance with Good 

Utility Practice, to ensure that the Interconnection Customer’s Interconnection Facilities are 

compatible with the technical specifications, Operational Control, and safety requirements of the 

Participating TO or the CAISO.

5.10.3 Interconnection Customer’s Interconnection Facilities Construction. The Interconnection 

Customer’s Interconnection Facilities shall be designed and constructed in accordance with Good 

Utility Practice. Within one hundred twenty (120) Calendar Days after the Commercial Operation 

Date, unless the Participating TO and Interconnection Customer agree on another mutually 

acceptable deadline, the Interconnection Customer shall deliver to the Participating TO and 

CAISO "as-built" drawings, information and documents for the Interconnection Customer’s 

Interconnection Facilities and the Electric Generating Unit(s), such as: a one-line diagram, a site 

plan showing the Large Generating Facility and the Interconnection Customer’s Interconnection 

Facilities, plan and elevation drawings showing the layout of the Interconnection Customer’s 

Interconnection Facilities, a relay functional diagram, relaying AC and DC schematic wiring 

diagrams and relay settings for all facilities associated with the Interconnection Customer's stepup transformers, the facilities connecting the Large Generating Facility to the step-up

transformers and the Interconnection Customer’s Interconnection Facilities, and the impedances 

(determined by factory tests) for the associated step-up transformers and the Electric Generating 

Units. The Interconnection Customer shall provide the Participating TO and the CAISO 

specifications for the excitation system, automatic voltage regulator, Large Generating Facility 

control and protection settings, transformer tap settings, and communications, if applicable. Any 

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deviations from the relay settings, machine specifications, and other specifications originally 

submitted by the Interconnection Customer shall be assessed by the Participating TO and the 

CAISO pursuant to the appropriate provisions of this LGIA and the LGIP.

5.10.4 Interconnection Customer to Meet Requirements of the Participating TO’s Interconnection 

Handbook. The Interconnection Customer shall comply with the Participating TO’s 

Interconnection Handbook.

5.11 Participating TO's Interconnection Facilities Construction. The Participating TO's 

Interconnection Facilities shall be designed and constructed in accordance with Good Utility 

Practice. Upon request, within one hundred twenty (120) Calendar Days after the Commercial 

Operation Date, unless the Participating TO and Interconnection Customer agree on another 

mutually acceptable deadline, the Participating TO shall deliver to the Interconnection Customer 

and the CAISO the following "as-built" drawings, information and documents for the Participating 

TO's Interconnection Facilities [include appropriate drawings and relay diagrams].

The Participating TO will obtain control for operating and maintenance purposes of the 

Participating TO's Interconnection Facilities and Stand Alone Network Upgrades upon completion 

of such facilities. Pursuant to Article 5.2, the CAISO will obtain Operational Control of the Stand 

Alone Network Upgrades prior to the Commercial Operation Date.

5.12 Access Rights. Upon reasonable notice and supervision by a Party, and subject to any required 

or necessary regulatory approvals, a Party ("Granting Party") shall furnish at no cost to the other 

Party ("Access Party") any rights of use, licenses, rights of way and easements with respect to 

lands owned or controlled by the Granting Party, its agents (if allowed under the applicable 

agency agreement), or any Affiliate, that are necessary to enable the Access Party to obtain 

ingress and egress to construct, operate, maintain, repair, test (or witness testing), inspect, 

replace or remove facilities and equipment to: (i) interconnect the Large Generating Facility with 

the Participating TO’s Transmission System; (ii) operate and maintain the Large Generating 

Facility, the Interconnection Facilities and the Participating TO’s Transmission System; and (iii) 

disconnect or remove the Access Party’s facilities and equipment upon termination of this LGIA. 

In exercising such licenses, rights of way and easements, the Access Party shall not 

unreasonably disrupt or interfere with normal operation of the Granting Party’s business and shall 

adhere to the safety rules and procedures established in advance, as may be changed from time 

to time, by the Granting Party and provided to the Access Party.

5.13 Lands of Other Property Owners. If any part of the Participating TO’s Interconnection Facilities 

and/or Network Upgrades are to be installed on property owned by persons other than the 

Interconnection Customer or Participating TO, the Participating TO shall at the Interconnection 

Customer's expense use efforts, similar in nature and extent to those that it typically undertakes 

on its own behalf or on behalf of its Affiliates, including use of its eminent domain authority, and to 

the extent consistent with state law, to procure from such persons any rights of use, licenses, 

rights of way and easements that are necessary to construct, operate, maintain, test, inspect, 

replace or remove the Participating TO’s Interconnection Facilities and/or Network Upgrades 

upon such property.

5.14 Permits. Participating TO and Interconnection Customer shall cooperate with each other in good 

faith in obtaining all permits, licenses and authorization that are necessary to accomplish the 

interconnection in compliance with Applicable Laws and Regulations. With respect to this 

paragraph, the Participating TO shall provide permitting assistance to the Interconnection 

Customer comparable to that provided to the Participating TO’s own, or an Affiliate's generation.

5.15 Early Construction of Base Case Facilities. The Interconnection Customer may request the 

Participating TO to construct, and the Participating TO shall construct, using Reasonable Efforts 

to accommodate Interconnection Customer's In-Service Date, all or any portion of any Network 

Upgrades required for Interconnection Customer to be interconnected to the Participating TO’s 

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Transmission System which are included in the Base Case of the Interconnection Studies for the 

Interconnection Customer, and which also are required to be constructed for another 

interconnection customer, but where such construction is not scheduled to be completed in time 

to achieve Interconnection Customer's In-Service Date.

5.16 Suspension. The Interconnection Customer may request to suspend at any time all work 

associated with the construction and installation of the Participating TO’s Interconnection 

Facilities, Network Upgrades, and/or Distribution Upgrades required under this LGIA. 

Interconnection Customers seeking to suspend construction will provide the CAISO and 

Participating TO a request for assessment pursuant to Section 4.4.6 of the LGIP, a modification 

assessment deposit, and an anticipated end date of the suspension. Interconnection Customers 

may request a suspension for the maximum amount of time in lieu of providing an anticipated end 

date. The CAISO and Participating TO will approve suspension requests where:

(a) the Participating TO’s electrical system and the CAISO Controlled Grid shall be left in a 

safe and reliable condition in accordance with Good Utility Practice and the Participating 

TO’s safety and reliability criteria and the CAISO’s Applicable Reliability Standards; and

(b) the CAISO and Participating TO determine the suspension will not result in a Material 

Modification.

During suspension, the Interconnection Customer may request to extend or shorten their 

suspension period, consistent with the maximum period provided in this Article. The CAISO and 

Participating TO will approve such requests where they meet criteria (a) and (b), above. 

Requests to extend or shorten extensions will require a new modification assessment request 

and deposit. The Interconnection Customer shall be responsible for all reasonable and 

necessary costs for suspension for which the Participating TO (i) has incurred pursuant to this 

LGIA prior to the suspension and (ii) incurs in suspending such work, including any costs incurred 

to perform such work as may be necessary to ensure the safety of persons and property and the 

integrity of the Participating TO’s electric system during such suspension and, if applicable, any 

costs incurred in connection with the cancellation or suspension of material, equipment and labor 

contracts which the Participating TO cannot reasonably avoid; provided, however, that prior to 

canceling or suspending any such material, equipment or labor contract, the Participating TO 

shall obtain Interconnection Customer's authorization to do so. 

The Participating TO shall invoice the Interconnection Customer for such costs pursuant to Article 

12 and shall use due diligence to minimize its costs. In the event Interconnection Customer 

suspends work required under this LGIA pursuant to this Article 5.16, and has not requested the 

Participating TO to recommence the work or has not itself recommenced work required under this 

LGIA on or before the expiration of three (3) years following commencement of such suspension, 

this LGIA shall be deemed terminated. The three-year period shall begin on the date the

Interconnection Customer provides in its request, if approved. Ninety (90) days before the 

anticipated end date of the suspension, the Participating TO and the CAISO will tender an 

amended draft LGIA with new construction milestones. The Parties agree to negotiate the 

amended draft LGIA in good faith such that it can be executed by the end of the suspension. 

5.17 Taxes.

5.17.1 Interconnection Customer Payments Not Taxable. The Parties intend that all payments or 

property transfers made by the Interconnection Customer to the Participating TO for the 

installation of the Participating TO's Interconnection Facilities and the Network Upgrades shall be 

non-taxable, either as contributions to capital, or as a refundable advance, in accordance with the 

Internal Revenue Code and any applicable state income tax laws and shall not be taxable as 

contributions in aid of construction or otherwise under the Internal Revenue Code and any 

applicable state income tax laws.

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5.17.2 Representations and Covenants. In accordance with IRS Notice 2001-82 and IRS Notice 88-

129, the Interconnection Customer represents and covenants that (i) ownership of the electricity 

generated at the Large Generating Facility will pass to another party prior to the transmission of 

the electricity on the CAISO Controlled Grid, (ii) for income tax purposes, the amount of any 

payments and the cost of any property transferred to the Participating TO for the Participating 

TO's Interconnection Facilities will be capitalized by the Interconnection Customer as an 

intangible asset and recovered using the straight-line method over a useful life of twenty (20) 

years, and (iii) any portion of the Participating TO's Interconnection Facilities that is a "dual-use 

intertie," within the meaning of IRS Notice 88-129, is reasonably expected to carry only a de 

minimis amount of electricity in the direction of the Large Generating Facility. For this purpose, 

"de minimis amount" means no more than 5 percent of the total power flows in both directions, 

calculated in accordance with the "5 percent test" set forth in IRS Notice 88-129. This is not 

intended to be an exclusive list of the relevant conditions that must be met to conform to IRS 

requirements for non-taxable treatment.

At the Participating TO’s request, the Interconnection Customer shall provide the Participating TO 

with a report from an independent engineer confirming its representation in clause (iii), above. 

The Participating TO represents and covenants that the cost of the Participating TO's 

Interconnection Facilities paid for by the Interconnection Customer without the possibility of 

refund or credit will have no net effect on the base upon which rates are determined.

5.17.3 Indemnification for the Cost Consequence of Current Tax Liability Imposed Upon the 

Participating TO. Notwithstanding Article 5.17.1, the Interconnection Customer shall protect, 

indemnify and hold harmless the Participating TO from the cost consequences of any current tax 

liability imposed against the Participating TO as the result of payments or property transfers made 

by the Interconnection Customer to the Participating TO under this LGIA for Interconnection 

Facilities, as well as any interest and penalties, other than interest and penalties attributable to 

any delay caused by the Participating TO.

The Participating TO shall not include a gross-up for the cost consequences of any current tax 

liability in the amounts it charges the Interconnection Customer under this LGIA unless (i) the 

Participating TO has determined, in good faith, that the payments or property transfers made by 

the Interconnection Customer to the Participating TO should be reported as income subject to 

taxation or (ii) any Governmental Authority directs the Participating TO to report payments or 

property as income subject to taxation; provided, however, that the Participating TO may require 

the Interconnection Customer to provide security for Interconnection Facilities, in a form 

reasonably acceptable to the Participating TO (such as a parental guarantee or a letter of credit), 

in an amount equal to the cost consequences of any current tax liability under this Article 5.17. 

The Interconnection Customer shall reimburse the Participating TO for such costs on a fully 

grossed-up basis, in accordance with Article 5.17.4, within thirty (30) Calendar Days of receiving 

written notification from the Participating TO of the amount due, including detail about how the 

amount was calculated.

The indemnification obligation shall terminate at the earlier of (1) the expiration of the ten year 

testing period and the applicable statute of limitation, as it may be extended by the Participating 

TO upon request of the IRS, to keep these years open for audit or adjustment, or (2) the 

occurrence of a subsequent taxable event and the payment of any related indemnification 

obligations as contemplated by this Article 5.17.

5.17.4 Tax Gross-Up Amount. The Interconnection Customer's liability for the cost consequences of 

any current tax liability under this Article 5.17 shall be calculated on a fully grossed-up basis. 

Except as may otherwise be agreed to by the parties, this means that the Interconnection 

Customer will pay the Participating TO, in addition to the amount paid for the Interconnection 

Facilities and Network Upgrades, an amount equal to (1) the current taxes imposed on the 

Participating TO ("Current Taxes") on the excess of (a) the gross income realized by the 

Participating TO as a result of payments or property transfers made by the Interconnection 

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Customer to the Participating TO under this LGIA (without regard to any payments under this 

Article 5.17) (the "Gross Income Amount") over (b) the present value of future tax deductions for 

depreciation that will be available as a result of such payments or property transfers (the "Present 

Value Depreciation Amount"), plus (2) an additional amount sufficient to permit the Participating 

TO to receive and retain, after the payment of all Current Taxes, an amount equal to the net 

amount described in clause (1).

For this purpose, (i) Current Taxes shall be computed based on the Participating TO’s composite 

federal and state tax rates at the time the payments or property transfers are received and the 

Participating TO will be treated as being subject to tax at the highest marginal rates in effect at 

that time (the "Current Tax Rate"), and (ii) the Present Value Depreciation Amount shall be 

computed by discounting the Participating TO’s anticipated tax depreciation deductions as a 

result of such payments or property transfers by the Participating TO’s current weighted average 

cost of capital. Thus, the formula for calculating the Interconnection Customer's liability to the 

Participating TO pursuant to this Article 5.17.4 can be expressed as follows: (Current Tax Rate x 

(Gross Income Amount – Present Value of Tax Depreciation))/(1-Current Tax Rate). 

Interconnection Customer's estimated tax liability in the event taxes are imposed shall be stated 

in Appendix A, Interconnection Facilities, Network Upgrades and Distribution Upgrades.

5.17.5 Private Letter Ruling or Change or Clarification of Law. At the Interconnection Customer's 

request and expense, the Participating TO shall file with the IRS a request for a private letter 

ruling as to whether any property transferred or sums paid, or to be paid, by the Interconnection 

Customer to the Participating TO under this LGIA are subject to federal income taxation. The 

Interconnection Customer will prepare the initial draft of the request for a private letter ruling, and 

will certify under penalties of perjury that all facts represented in such request are true and 

accurate to the best of the Interconnection Customer's knowledge. The Participating TO and 

Interconnection Customer shall cooperate in good faith with respect to the submission of such 

request, provided, however, the Interconnection Customer and the Participating TO explicitly 

acknowledge (and nothing herein is intended to alter) Participating TO’s obligation under law to 

certify that the facts presented in the ruling request are true, correct and complete.

The Participating TO shall keep the Interconnection Customer fully informed of the status of such 

request for a private letter ruling and shall execute either a privacy act waiver or a limited power 

of attorney, in a form acceptable to the IRS, that authorizes the Interconnection Customer to 

participate in all discussions with the IRS regarding such request for a private letter ruling. The 

Participating TO shall allow the Interconnection Customer to attend all meetings with IRS officials 

about the request and shall permit the Interconnection Customer to prepare the initial drafts of 

any follow-up letters in connection with the request.

5.17.6 Subsequent Taxable Events. If, within 10 years from the date on which the relevant 

Participating TO's Interconnection Facilities are placed in service, (i) the Interconnection 

Customer Breaches the covenants contained in Article 5.17.2, (ii) a "disqualification event" occurs 

within the meaning of IRS Notice 88-129, or (iii) this LGIA terminates and the Participating TO 

retains ownership of the Interconnection Facilities and Network Upgrades, the Interconnection 

Customer shall pay a tax gross-up for the cost consequences of any current tax liability imposed 

on the Participating TO, calculated using the methodology described in Article 5.17.4 and in 

accordance with IRS Notice 90-60.

5.17.7 Contests. In the event any Governmental Authority determines that the Participating TO’s 

receipt of payments or property constitutes income that is subject to taxation, the Participating TO

shall notify the Interconnection Customer, in writing, within thirty (30) Calendar Days of receiving 

notification of such determination by a Governmental Authority. Upon the timely written request 

by the Interconnection Customer and at the Interconnection Customer's sole expense, the 

Participating TO may appeal, protest, seek abatement of, or otherwise oppose such 

determination. Upon the Interconnection Customer's written request and sole expense, the 

Participating TO may file a claim for refund with respect to any taxes paid under this Article 5.17, 

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whether or not it has received such a determination. The Participating TO reserve the right to 

make all decisions with regard to the prosecution of such appeal, protest, abatement or other 

contest, including the selection of counsel and compromise or settlement of the claim, but the 

Participating TO shall keep the Interconnection Customer informed, shall consider in good faith 

suggestions from the Interconnection Customer about the conduct of the contest, and shall 

reasonably permit the Interconnection Customer or an Interconnection Customer representative 

to attend contest proceedings.

The Interconnection Customer shall pay to the Participating TO on a periodic basis, as invoiced 

by the Participating TO, the Participating TO’s documented reasonable costs of prosecuting such 

appeal, protest, abatement or other contest, including any costs associated with obtaining the 

opinion of independent tax counsel described in this Article 5.17.7. The Participating TO may 

abandon any contest if the Interconnection Customer fails to provide payment to the Participating 

TO within thirty (30) Calendar Days of receiving such invoice.

At any time during the contest, the Participating TO may agree to a settlement either with the

Interconnection Customer's consent or, if such consent is refused, after obtaining written advice 

from independent nationally-recognized tax counsel, selected by the Participating TO, but 

reasonably acceptable to the Interconnection Customer, that the proposed settlement represents 

a reasonable settlement given the hazards of litigation. The Interconnection Customer's 

obligation shall be based on the amount of the settlement agreed to by the Interconnection 

Customer, or if a higher amount, so much of the settlement that is supported by the written advice 

from nationally-recognized tax counsel selected under the terms of the preceding paragraph. The 

settlement amount shall be calculated on a fully grossed-up basis to cover any related cost 

consequences of the current tax liability. The Participating TO may also settle any tax 

controversy without receiving the Interconnection Customer's consent or any such written advice; 

however, any such settlement will relieve the Interconnection Customer from any obligation to 

indemnify the Participating TO for the tax at issue in the contest (unless the failure to obtain 

written advice is attributable to the Interconnection Customer’s unreasonable refusal to the 

appointment of independent tax counsel).

5.17.8 Refund. In the event that (a) a private letter ruling is issued to the Participating TO which holds 

that any amount paid or the value of any property transferred by the Interconnection Customer to 

the Participating TO under the terms of this LGIA is not subject to federal income taxation, (b) any 

legislative change or administrative announcement, notice, ruling or other determination makes it 

reasonably clear to the Participating TO in good faith that any amount paid or the value of any 

property transferred by the Interconnection Customer to the Participating TO under the terms of 

this LGIA is not taxable to the Participating TO, (c) any abatement, appeal, protest, or other 

contest results in a determination that any payments or transfers made by the Interconnection

Customer to the Participating TO are not subject to federal income tax, or (d) if the Participating 

TO receives a refund from any taxing authority for any overpayment of tax attributable to any 

payment or property transfer made by the Interconnection Customer to the Participating TO 

pursuant to this LGIA, the Participating TO shall promptly refund to the Interconnection Customer 

the following:

(i) any payment made by Interconnection Customer under this Article 5.17 for taxes that is 

attributable to the amount determined to be non-taxable, together with interest thereon,

(ii) interest on any amounts paid by the Interconnection Customer to the Participating TO for 

such taxes which the Participating TO did not submit to the taxing authority, calculated in 

accordance with the methodology set forth in FERC’s regulations at 18 C.F.R. 

§35.19a(a)(2)(iii) from the date payment was made by the Interconnection Customer to 

the date the Participating TO refunds such payment to the Interconnection Customer, and

(iii) with respect to any such taxes paid by the Participating TO, any refund or credit the 

Participating TO receives or to which it may be entitled from any Governmental Authority, 

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interest (or that portion thereof attributable to the payment described in clause (i), above) 

owed to the Participating TO for such overpayment of taxes (including any reduction in 

interest otherwise payable by the Participating TO to any Governmental Authority 

resulting from an offset or credit); provided, however, that the Participating TO will remit 

such amount promptly to the Interconnection Customer only after and to the extent that 

the Participating TO has received a tax refund, credit or offset from any Governmental 

Authority for any applicable overpayment of income tax related to the Participating TO's 

Interconnection Facilities.

The intent of this provision is to leave the Parties, to the extent practicable, in the event 

that no taxes are due with respect to any payment for Interconnection Facilities and 

Network Upgrades hereunder, in the same position they would have been in had no such 

tax payments been made.

5.17.9 Taxes Other Than Income Taxes. Upon the timely request by the Interconnection Customer, 

and at the Interconnection Customer’s sole expense, the CAISO or Participating TO may appeal, 

protest, seek abatement of, or otherwise contest any tax (other than federal or state income tax) 

asserted or assessed against the CAISO or Participating TO for which the Interconnection 

Customer may be required to reimburse the CAISO or Participating TO under the terms of this 

LGIA. The Interconnection Customer shall pay to the Participating TO on a periodic basis, as 

invoiced by the Participating TO, the Participating TO’s documented reasonable costs of 

prosecuting such appeal, protest, abatement, or other contest. The Interconnection Customer, 

the CAISO, and the Participating TO shall cooperate in good faith with respect to any such 

contest. Unless the payment of such taxes is a prerequisite to an appeal or abatement or cannot 

be deferred, no amount shall be payable by the Interconnection Customer to the CAISO or 

Participating TO for such taxes until they are assessed by a final, non-appealable order by any 

court or agency of competent jurisdiction. In the event that a tax payment is withheld and 

ultimately due and payable after appeal, the Interconnection Customer will be responsible for all 

taxes, interest and penalties, other than penalties attributable to any delay caused by the 

Participating TO.

5.18 Tax Status. Each Party shall cooperate with the others to maintain the other Parties’ tax status. 

Nothing in this LGIA is intended to adversely affect the CAISO’s or any Participating TO’s tax 

exempt status with respect to the issuance of bonds including, but not limited to, Local Furnishing 

Bonds.

5.19 Modification.

5.19.1 General. The Interconnection Customer or the Participating TO may undertake modifications to 

its facilities, Section 25.1(c) and Section 25 of the CAISO Tariff if the Interconnection Customer 

has achieved its Commercial Operation Date, and subject to Section 4.4 of the LGIP if it has not. 

If a Party plans to undertake a modification that reasonably may be expected to affect the other 

Parties’ facilities, that Party shall provide to the other Parties sufficient information regarding such 

modification so that the other Parties may evaluate the potential impact of such modification prior 

to commencement of the work. Such information shall be deemed to be confidential hereunder 

and shall include information concerning the timing of such modifications and whether such 

modifications are expected to interrupt the flow of electricity from the Large Generating Facility. 

The Party desiring to perform such work shall provide the relevant drawings, plans, and 

specifications to the other Parties at least ninety (90) Calendar Days in advance of the 

commencement of the work or such shorter period upon which the Parties may agree, which 

agreement shall not unreasonably be withheld, conditioned or delayed.

Notwithstanding Section 7.5 of Appendix DD, at any time after achieving its Commercial 

Operation Date, the Interconnection Customer may reduce the megawatt generating capacities of 

its Generating Facilities, subject to Section 25.1(c) of the CAISO Tariff. Section 7.5.11 of 

Appendix DD will still apply to such requests to reduce capacity.

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5.19.2 Standards. Any additions, modifications, or replacements made to a Party’s facilities shall be 

designed, constructed and operated in accordance with this LGIA and Good Utility Practice.

5.19.3 Modification Costs. The Interconnection Customer shall not be directly assigned the costs of 

any additions, modifications, or replacements that the Participating TO makes to the Participating 

TO's Interconnection Facilities or the Participating TO’s Transmission System to facilitate the 

interconnection of a third party to the Participating TO's Interconnection Facilities or the 

Participating TO’s Transmission System, or to provide transmission service to a third party under 

the CAISO Tariff. The Interconnection Customer shall be responsible for the costs of any 

additions, modifications, or replacements to the Interconnection Facilities that may be necessary 

to maintain or upgrade such Interconnection Facilities consistent with Applicable Laws and 

Regulations, Applicable Reliability Standards or Good Utility Practice.

Article 6. Testing and Inspection 

6.1 Pre-Commercial Operation Date Testing and Modifications. Prior to the Commercial 

Operation Date, the Participating TO shall test the Participating TO’s Interconnection Facilities, 

Network Upgrades, and Distribution Upgrades and the Interconnection Customer shall test the 

Large Generating Facility and the Interconnection Customer’s Interconnection Facilities to ensure 

their safe and reliable operation. Similar testing may be required after initial operation. Each

Party shall make any modifications to its facilities that are found to be necessary as a result of 

such testing. The Interconnection Customer shall bear the cost of all such testing and 

modifications. The Interconnection Customer shall not commence initial parallel operation of an 

Electric Generating Unit with the Participating TO’s Transmission System until the Participating 

TO provides prior written approval, which approval shall not be unreasonably withheld, for 

operation of such Electric Generating Unit. The Interconnection Customer shall generate test 

energy at the Large Generating Facility only if it has arranged for the delivery of such test energy.

6.2 Post-Commercial Operation Date Testing and Modifications. Each Party shall at its own 

expense perform routine inspection and testing of its facilities and equipment in accordance with 

Good Utility Practice as may be necessary to ensure the continued interconnection of the Large 

Generating Facility with the Participating TO’s Transmission System in a safe and reliable 

manner. Each Party shall have the right, upon advance written notice, to require reasonable 

additional testing of the other Party’s facilities, at the requesting Party’s expense, as may be in 

accordance with Good Utility Practice.

6.3 Right to Observe Testing. Each Party shall notify the other Parties at least fourteen (14) days in 

advance of its performance of tests of its Interconnection Facilities or Generating Facility. The 

other Parties have the right, at their own expense, to observe such testing.

6.4 Right to Inspect. Each Party shall have the right, but shall have no obligation to: (i) observe 

another Party’s tests and/or inspection of any of its System Protection Facilities and other 

protective equipment, including Power System Stabilizers; (ii) review the settings of another 

Party’s System Protection Facilities and other protective equipment; and (iii) review another 

Party’s maintenance records relative to the Interconnection Facilities, the System Protection 

Facilities and other protective equipment. A Party may exercise these rights from time to time as 

it deems necessary upon reasonable notice to the other Party. The exercise or non-exercise by a 

Party of any such rights shall not be construed as an endorsement or confirmation of any element 

or condition of the Interconnection Facilities or the System Protection Facilities or other protective 

equipment or the operation thereof, or as a warranty as to the fitness, safety, desirability, or 

reliability of same. Any information that a Party obtains through the exercise of any of its rights 

under this Article 6.4 shall be deemed to be Confidential Information and treated pursuant to 

Article 22 of this LGIA.

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Article 7. Metering 

7.1 General. Each Party shall comply with the Applicable Reliability Council requirements. The 

Interconnection Customer and CAISO shall comply with the provisions of the CAISO Tariff 

regarding metering, including Section 10 of the CAISO Tariff. Unless otherwise agreed by the 

Participating TO and the Interconnection Customer, the Participating TO may install additional 

Metering Equipment at the Point of Interconnection prior to any operation of any Electric 

Generating Unit and shall own, operate, test and maintain such Metering Equipment. Power 

flows to and from the Large Generating Facility shall be measured at or, at the CAISO’s or 

Participating TO’s option for its respective Metering Equipment, compensated to, the Point of 

Interconnection. The CAISO shall provide metering quantities to the Interconnection Customer 

upon request in accordance with the CAISO Tariff by directly polling the CAISO’s meter data 

acquisition system. The Interconnection Customer shall bear all reasonable documented costs 

associated with the purchase, installation, operation, testing and maintenance of the Metering 

Equipment.

7.2 Check Meters. The Interconnection Customer, at its option and expense, may install and 

operate, on its premises and on its side of the Point of Interconnection, one or more check meters 

to check the CAISO-polled meters or the Participating TO’s meters. Such check meters shall be 

for check purposes only and shall not be used for the measurement of power flows for purposes 

of this LGIA, except in the case that no other means are available on a temporary basis at the 

option of the CAISO or the Participating TO. The check meters shall be subject at all reasonable 

times to inspection and examination by the CAISO or Participating TO or their designees. The 

installation, operation and maintenance thereof shall be performed entirely by the Interconnection 

Customer in accordance with Good Utility Practice.

7.3 Participating TO Retail Metering. The Participating TO may install retail revenue quality meters 

and associated equipment, pursuant to the Participating TO’s applicable retail tariffs.

Article 8. Communications 

8.1 Interconnection Customer Obligations. The Interconnection Customer shall maintain 

satisfactory operating communications with the CAISO in accordance with the provisions of the 

CAISO Tariff and with the Participating TO’s dispatcher or representative designated by the 

Participating TO. The Interconnection Customer shall provide standard voice line, dedicated 

voice line and facsimile communications at its Large Generating Facility control room or central 

dispatch facility through use of either the public telephone system, or a voice communications 

system that does not rely on the public telephone system. The Interconnection Customer shall 

also provide the dedicated data circuit(s) necessary to provide Interconnection Customer data to 

the CAISO and Participating TO as set forth in Appendix D, Security Arrangements Details. The 

data circuit(s) shall extend from the Large Generating Facility to the location(s) specified by the 

CAISO and Participating TO. Any required maintenance of such communications equipment 

shall be performed by the Interconnection Customer. Operational communications shall be 

activated and maintained under, but not be limited to, the following events: system paralleling or 

separation, scheduled and unscheduled shutdowns, equipment clearances, and hourly and daily 

load data.

8.2 Remote Terminal Unit. Prior to the Initial Synchronization Date of each Electric Generating Unit, 

a Remote Terminal Unit, or equivalent data collection and transfer equipment acceptable to the 

Parties, shall be installed by the Interconnection Customer, or by the Participating TO at the 

Interconnection Customer's expense, to gather accumulated and instantaneous data to be 

telemetered to the location(s) designated by the CAISO and by the Participating TO through use 

of a dedicated point-to-point data circuit(s) as indicated in Article 8.1.

Telemetry to the CAISO shall be provided in accordance with the CAISO’s technical standards for 

direct telemetry. For telemetry to the Participating TO, the communication protocol for the data 

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circuit(s) shall be specified by the Participating TO. Instantaneous bi-directional real power and 

reactive power flow and any other required information must be telemetered directly to the 

location(s) specified by the Participating TO.

Each Party will promptly advise the other Parties if it detects or otherwise learns of any metering, 

telemetry or communications equipment errors or malfunctions that require the attention and/or 

correction by another Party. The Party owning such equipment shall correct such error or 

malfunction as soon as reasonably feasible.

8.3 No Annexation. Any and all equipment placed on the premises of a Party shall be and remain 

the property of the Party providing such equipment regardless of the mode and manner of 

annexation or attachment to real property, unless otherwise mutually agreed by the Parties.

Article 9. Operations 

9.1 General. Each Party shall comply with the Applicable Reliability Council requirements. Each 

Party shall provide to the other Party all information that may reasonably be required by the other 

Party to comply with Applicable Laws and Regulations and Applicable Reliability Standards.

9.2 Balancing Authority Area Notification. At least three months before Initial Synchronization 

Date, the Interconnection Customer shall notify the CAISO and Participating TO in writing of the 

Balancing Authority Area in which the Large Generating Facility intends to be located. If the 

Interconnection Customer intends to locate the Large Generating Facility in a Balancing Authority 

Area other than the Balancing Authority Area within whose electrically metered boundaries the 

Large Generating Facility is located, and if permitted to do so by the relevant transmission tariffs, 

all necessary arrangements, including but not limited to those set forth in Article 7 and Article 8 of 

this LGIA, and remote Balancing Authority Area generator interchange agreements, if applicable, 

and the appropriate measures under such agreements, shall be executed and implemented prior 

to the placement of the Large Generating Facility in the other Balancing Authority Area.

9.3 CAISO and Participating TO Obligations. The CAISO and Participating TO shall cause the 

Participating TO’s Transmission System to be operated and controlled in a safe and reliable 

manner and in accordance with this LGIA. The Participating TO at the Interconnection 

Customer’s expense shall cause the Participating TO’s Interconnection Facilities to be operated, 

maintained and controlled in a safe and reliable manner and in accordance with this LGIA. The 

CAISO and Participating TO may provide operating instructions to the Interconnection Customer 

consistent with this LGIA and Participating TO and CAISO operating protocols and procedures as 

they may change from time to time. The Participating TO and CAISO will consider changes to 

their operating protocols and procedures proposed by the Interconnection Customer.

9.4 Interconnection Customer Obligations. The Interconnection Customer shall at its own 

expense operate, maintain and control the Large Generating Facility and the Interconnection 

Customer’s Interconnection Facilities in a safe and reliable manner and in accordance with this 

LGIA. The Interconnection Customer shall operate the Large Generating Facility and the 

Interconnection Customer’s Interconnection Facilities in accordance with all applicable 

requirements of the Balancing Authority Area of which it is part, including such requirements as 

set forth in Appendix C, Interconnection Details, of this LGIA. Appendix C, Interconnection 

Details, will be modified to reflect changes to the requirements as they may change from time to 

time. A Party may request that another Party provide copies of the requirements set forth in 

Appendix C, Interconnection Details, of this LGIA. The Interconnection Customer shall not 

commence Commercial Operation of an Electric Generating Unit with the Participating TO’s 

Transmission System until the Participating TO provides prior written approval, which approval 

shall not be unreasonably withheld, for operation of such Electric Generating Unit.

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9.5 Start-Up and Synchronization. Consistent with the Parties’ mutually acceptable procedures, 

the Interconnection Customer is responsible for the proper synchronization of each Electric 

Generating Unit to the CAISO Controlled Grid.

9.6 Reactive Power.

9.6.1 Power Factor Design Criteria. The Interconnection Customer shall design the Large 

Generating Facility to maintain a composite power delivery at continuous rated power output at 

the terminals of the Electric Generating Unit at a power factor within the range of 0.95 leading to 

0.90 lagging, unless the CAISO has established different requirements that apply to all 

generators in the Balancing Authority Area on a comparable basis. Power factor design criteria 

for wind generators are provided in Appendix H of this LGIA.

For Asynchronous Generating Facilities submitting a written request to continue a re-study under 

Section 6.4 of Appendix U of the CAISO Tariff on or after September 21, 2016, the 

Interconnection Customer shall design the Large Generating Facility to maintain a composite 

power delivery at continuous rated power output at the high-side of the generator substation at a 

power factor within the range of 0.95 leading to 0.95 lagging, unless the CAISO has established a 

different power factor range that applies to all Asynchronous Generating Facilities on a 

comparable basis. This power factor range standard shall be dynamic and can be met using, for 

example, power electronics designed to supply this level of reactive capability (taking into account 

any limitations due to voltage level, real power output, etc.) or fixed and switched capacitors and 

reactors, or a combination of the two. 

9.6.2 Voltage Schedules. Once the Interconnection Customer has synchronized an Electric 

Generating Unit with the CAISO Controlled Grid, the CAISO or Participating TO shall require the 

Interconnection Customer to maintain a voltage schedule by operating the Electric Generating 

Unit to produce or absorb reactive power within the design limitations of the Electric Generating 

Unit set forth in Article 9.6.1 (Power Factor Design Criteria). CAISO’s voltage schedules shall 

treat all sources of reactive power in the Balancing Authority Area in an equitable and not unduly 

discriminatory manner. The Participating TO shall exercise Reasonable Efforts to provide the 

Interconnection Customer with such schedules at least one (1) day in advance, and the CAISO or 

Participating TO may make changes to such schedules as necessary to maintain the reliability of 

the CAISO Controlled Grid or the Participating TO’s electric system. The Interconnection 

Customer shall operate the Electric Generating Unit to maintain the specified output voltage or 

power factor within the design limitations of the Electric Generating Unit set forth in Article 9.6.1 

(Power Factor Design Criteria), and as may be required by the CAISO to operate the Electric 

Generating Unit at a specific voltage schedule within the design limitations set forth in Article 

9.6.1. If the Interconnection Customer is unable to maintain the specified voltage or power factor, 

it shall promptly notify the CAISO and the Participating TO.

9.6.2.1 Governors and Regulators. Whenever an Electric Generating Unit is operated in parallel with 

the CAISO Controlled Grid and the speed governors (if installed on the Electric Generating Unit 

pursuant to Good Utility Practice) and voltage regulators are capable of operation, the 

Interconnection Customer shall operate the Electric Generating Unit with its speed governors and 

voltage regulators in automatic operation. If the Electric Generating Unit’s speed governors and 

voltage regulators are not capable of such automatic operation, the Interconnection Customer 

shall immediately notify the CAISO and the Participating TO and ensure that the Electric 

Generating Unit operates as specified in Article 9.6.2 through manual operation and that such 

Electric Generating Unit’s reactive power production or absorption (measured in MVARs) are 

within the design capability of the Electric Generating Unit(s) and steady state stability limits. The 

Interconnection Customer shall restore the speed governors and voltage regulators to automatic 

operation as soon as possible. If the Large Generating Facility’s speed governors and voltage 

regulators are improperly tuned or malfunctioning, the CAISO shall have the right to order the 

reduction in output or disconnection of the Large Generating Facility if the reliability of the CAISO 

Controlled Grid would be adversely affected. The Interconnection Customer shall not cause its 

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Large Generating Facility to disconnect automatically or instantaneously from the CAISO 

Controlled Grid or trip any Electric Generating Unit comprising the Large Generating Facility for 

an under or over frequency condition unless the abnormal frequency condition persists for a time 

period beyond the limits set forth in ANSI/IEEE Standard C37.106, or such other standard as 

applied to other generators in the Balancing Authority Area on a comparable basis.

9.6.3 Payment for Reactive Power. CAISO is required to pay the Interconnection Customer for 

reactive power that Interconnection Customer provides or absorbs from an Electric Generating 

Unit when the CAISO requests the Interconnection Customer to operate its Electric Generating 

Unit outside the range specified in Article 9.6.1, provided that if the CAISO pays other generators 

for reactive power service within the specified range, it must also pay the Interconnection 

Customer. Payments shall be pursuant to Article 11.6 or such other agreement to which the 

CAISO and Interconnection Customer have otherwise agreed.

9.7 Outages and Interruptions.

9.7.1 Outages.

9.7.1.1 Outage Authority and Coordination. Each Party may in accordance with Good Utility Practice 

in coordination with the other Parties remove from service any of its respective Interconnection 

Facilities or Network Upgrades that may impact another Party's facilities as necessary to perform 

maintenance or testing or to install or replace equipment. Absent an Emergency Condition, the 

Party scheduling a removal of such facility(ies) from service will use Reasonable Efforts to 

schedule such removal on a date and time mutually acceptable to all Parties. In all 

circumstances any Party planning to remove such facility(ies) from service shall use Reasonable 

Efforts to minimize the effect on the other Parties of such removal.

9.7.1.2 Outage Schedules. The CAISO shall post scheduled outages of CAISO Controlled Grid facilities 

in accordance with the provisions of the CAISO Tariff. The Interconnection Customer shall 

submit its planned maintenance schedules for the Large Generating Facility to the CAISO in 

accordance with the CAISO Tariff. The Interconnection Customer shall update its planned 

maintenance schedules in accordance with the CAISO Tariff. The CAISO may request the 

Interconnection Customer to reschedule its maintenance as necessary to maintain the reliability 

of the CAISO Controlled Grid in accordance with the CAISO Tariff. Such planned maintenance 

schedules and updates and changes to such schedules shall be provided by the Interconnection 

Customer to the Participating TO concurrently with their submittal to the CAISO. The CAISO 

shall compensate the Interconnection Customer for any additional direct costs that the 

Interconnection Customer incurs as a result of having to reschedule maintenance in accordance 

with the CAISO Tariff. The Interconnection Customer will not be eligible to receive compensation, 

if during the twelve (12) months prior to the date of the scheduled maintenance, the 

Interconnection Customer had modified its schedule of maintenance activities.

9.7.1.3 Outage Restoration. If an outage on a Party's Interconnection Facilities or Network Upgrades 

adversely affects another Party's operations or facilities, the Party that owns or controls the 

facility that is out of service shall use Reasonable Efforts to promptly restore such facility(ies) to a 

normal operating condition consistent with the nature of the outage. The Party that owns or 

controls the facility that is out of service shall provide the other Parties, to the extent such 

information is known, information on the nature of the Emergency Condition, if the outage is 

caused by an Emergency Condition, an estimated time of restoration, and any corrective actions 

required. Initial verbal notice shall be followed up as soon as practicable with written notice 

explaining the nature of the outage, if requested by a Party, which may be provided by e-mail or 

facsimile.

9.7.2 Interruption of Service. If required by Good Utility Practice to do so, the CAISO or the

Participating TO may require the Interconnection Customer to interrupt or reduce deliveries of 

electricity if such delivery of electricity could adversely affect the CAISO’s or the Participating 

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TO’s ability to perform such activities as are necessary to safely and reliably operate and 

maintain the Participating TO’s electric system or the CAISO Controlled Grid. The following 

provisions shall apply to any interruption or reduction permitted under this Article 9.7.2:

9.7.2.1 The interruption or reduction shall continue only for so long as reasonably necessary under Good 

Utility Practice;

9.7.2.2 Any such interruption or reduction shall be made on an equitable, non-discriminatory basis with 

respect to all generating facilities directly connected to the CAISO Controlled Grid, subject to any 

conditions specified in this LGIA;

9.7.2.3 When the interruption or reduction must be made under circumstances which do not allow for 

advance notice, the CAISO or Participating TO, as applicable, shall notify the Interconnection 

Customer by telephone as soon as practicable of the reasons for the curtailment, interruption, or 

reduction, and, if known, its expected duration. Telephone notification shall be followed by written 

notification, if requested by the Interconnection Customer, as soon as practicable;

9.7.2.4 Except during the existence of an Emergency Condition, the CAISO or Participating TO shall 

notify the Interconnection Customer in advance regarding the timing of such interruption or 

reduction and further notify the Interconnection Customer of the expected duration. The CAISO 

or Participating TO shall coordinate with the Interconnection Customer using Good Utility Practice 

to schedule the interruption or reduction during periods of least impact to the Interconnection 

Customer, the CAISO, and the Participating TO;

9.7.2.5 The Parties shall cooperate and coordinate with each other to the extent necessary in order to 

restore the Large Generating Facility, Interconnection Facilities, the Participating TO’s 

Transmission System, and the CAISO Controlled Grid to their normal operating state, consistent 

with system conditions and Good Utility Practice.

9.7.3 Under-Frequency and Over Frequency Conditions. The CAISO Controlled Grid is designed to 

automatically activate a load-shed program as required by the Applicable Reliability Council in the 

event of an under-frequency system disturbance. The Interconnection Customer shall implement 

under-frequency and over-frequency protection set points for the Large Generating Facility as 

required by the Applicable Reliability Council to ensure "ride through" capability. Large 

Generating Facility response to frequency deviations of pre-determined magnitudes, both underfrequency and over-frequency deviations, shall be studied and coordinated with the Participating 

TO and CAISO in accordance with Good Utility Practice. The term "ride through" as used herein 

shall mean the ability of a Generating Facility to stay connected to and synchronized with the 

CAISO Controlled Grid during system disturbances within a range of under-frequency and overfrequency conditions, in accordance with Good Utility Practice.

9.7.4 System Protection and Other Control Requirements.

9.7.4.1 System Protection Facilities. The Interconnection Customer shall, at its expense, install, 

operate and maintain System Protection Facilities as a part of the Large Generating Facility or the 

Interconnection Customer’s Interconnection Facilities. The Participating TO shall install at the 

Interconnection Customer's expense any System Protection Facilities that may be required on the 

Participating TO’s Interconnection Facilities or the Participating TO’s Transmission System as a 

result of the interconnection of the Large Generating Facility and the Interconnection Customer’s 

Interconnection Facilities.

9.7.4.2 The Participating TO’s and Interconnection Customer’s protection facilities shall be designed and 

coordinated with other systems in accordance with Applicable Reliability Council criteria and 

Good Utility Practice.

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9.7.4.3 The Participating TO and Interconnection Customer shall each be responsible for protection of its 

facilities consistent with Good Utility Practice.

9.7.4.4 The Participating TO’s and Interconnection Customer’s protective relay design shall incorporate 

the necessary test switches to perform the tests required in Article 6. The required test switches 

will be placed such that they allow operation of lockout relays while preventing breaker failure 

schemes from operating and causing unnecessary breaker operations and/or the tripping of the 

Interconnection Customer's Electric Generating Units.

9.7.4.5 The Participating TO and Interconnection Customer will test, operate and maintain System 

Protection Facilities in accordance with Good Utility Practice and, if applicable, the requirements 

of the Participating TO’s Interconnection Handbook.

9.7.4.6 Prior to the in-service date, and again prior to the Commercial Operation Date, the Participating 

TO and Interconnection Customer or their agents shall perform a complete calibration test and 

functional trip test of the System Protection Facilities. At intervals suggested by Good Utility 

Practice, the standards and procedures of the Participating TO, including, if applicable, the 

requirements of the Participating TO’s Interconnection Handbook, and following any apparent 

malfunction of the System Protection Facilities, each Party shall perform both calibration and 

functional trip tests of its System Protection Facilities. These tests do not require the tripping of 

any in-service generation unit. These tests do, however, require that all protective relays and 

lockout contacts be activated.

9.7.5 Requirements for Protection. In compliance with Good Utility Practice and, if applicable, the 

requirements of the Participating TO’s Interconnection Handbook, the Interconnection Customer 

shall provide, install, own, and maintain relays, circuit breakers and all other devices necessary to 

remove any fault contribution of the Large Generating Facility to any short circuit occurring on the 

Participating TO’s Transmission System not otherwise isolated by the Participating TO’s 

equipment, such that the removal of the fault contribution shall be coordinated with the protective 

requirements of the Participating TO’s Transmission System. Such protective equipment shall 

include, without limitation, a disconnecting device with fault current-interrupting capability located 

between the Large Generating Facility and the Participating TO’s Transmission System at a site 

selected upon mutual agreement (not to be unreasonably withheld, conditioned or delayed) of the 

Parties. The Interconnection Customer shall be responsible for protection of the Large 

Generating Facility and the Interconnection Customer's other equipment from such conditions as 

negative sequence currents, over- or under-frequency, sudden load rejection, over- or undervoltage, and generator loss-of-field. The Interconnection Customer shall be solely responsible to 

disconnect the Large Generating Facility and the Interconnection Customer's other equipment if 

conditions on the CAISO Controlled Grid could adversely affect the Large Generating Facility.

9.7.6 Power Quality. Neither the Participating TO’s nor the Interconnection Customer’s facilities shall 

cause excessive voltage flicker nor introduce excessive distortion to the sinusoidal voltage or 

current waves as defined by ANSI Standard C84.1-1989, in accordance with IEEE Standard 519, 

any applicable superseding electric industry standard, or any alternative Applicable Reliability 

Council standard. In the event of a conflict between ANSI Standard C84.1-1989, any applicable 

superseding electric industry standard, or any alternative Applicable Reliability Council standard, 

the alternative Applicable Reliability Council standard shall control.

9.8 Switching and Tagging Rules. Each Party shall provide the other Parties a copy of its switching 

and tagging rules that are applicable to the other Parties’ activities. Such switching and tagging 

rules shall be developed on a non-discriminatory basis. The Parties shall comply with applicable 

switching and tagging rules, as amended from time to time, in obtaining clearances for work or for 

switching operations on equipment.

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9.9 Use of Interconnection Facilities by Third Parties.

9.9.1 Purpose of Interconnection Facilities. Except as may be required by Applicable Laws and 

Regulations, or as otherwise agreed to among the Parties, the Interconnection Facilities shall be 

constructed for the sole purpose of interconnecting the Large Generating Facility to the 

Participating TO’s Transmission System and shall be used for no other purpose.

9.9.2 Third Party Users. If required by Applicable Laws and Regulations or if the Parties mutually 

agree, such agreement not to be unreasonably withheld, to allow one or more third parties to use 

the Participating TO’s Interconnection Facilities, or any part thereof, the Interconnection 

Customer will be entitled to compensation for the capital expenses it incurred in connection with 

the Interconnection Facilities based upon the pro rata use of the Interconnection Facilities by the 

Participating TO, all third party users, and the Interconnection Customer, in accordance with 

Applicable Laws and Regulations or upon some other mutually-agreed upon methodology. In 

addition, cost responsibility for ongoing costs, including operation and maintenance costs 

associated with the Interconnection Facilities, will be allocated between the Interconnection 

Customer and any third party users based upon the pro rata use of the Interconnection Facilities 

by the Participating TO, all third party users, and the Interconnection Customer, in accordance 

with Applicable Laws and Regulations or upon some other mutually agreed upon methodology. If 

the issue of such compensation or allocation cannot be resolved through such negotiations, it 

shall be submitted to FERC for resolution.

9.10 Disturbance Analysis Data Exchange. The Parties will cooperate with one another in the 

analysis of disturbances to either the Large Generating Facility or the CAISO Controlled Grid by 

gathering and providing access to any information relating to any disturbance, including 

information from oscillography, protective relay targets, breaker operations and sequence of 

events records, and any disturbance information required by Good Utility Practice.

Article 10. Maintenance 

10.1 Participating TO Obligations. The Participating TO shall maintain the Participating TO’s 

Transmission System and the Participating TO’s Interconnection Facilities in a safe and reliable 

manner and in accordance with this LGIA.

10.2 Interconnection Customer Obligations. The Interconnection Customer shall maintain the 

Large Generating Facility and the Interconnection Customer’s Interconnection Facilities in a safe 

and reliable manner and in accordance with this LGIA.

10.3 Coordination. The Parties shall confer regularly to coordinate the planning, scheduling and 

performance of preventive and corrective maintenance on the Large Generating Facility and the 

Interconnection Facilities.

10.4 Secondary Systems. The Participating TO and Interconnection Customer shall cooperate with 

the other Parties in the inspection, maintenance, and testing of control or power circuits that 

operate below 600 volts, AC or DC, including, but not limited to, any hardware, control or 

protective devices, cables, conductors, electric raceways, secondary equipment panels, 

transducers, batteries, chargers, and voltage and current transformers that directly affect the 

operation of a Party's facilities and equipment which may reasonably be expected to impact the 

other Parties. Each Party shall provide advance notice to the other Parties before undertaking 

any work on such circuits, especially on electrical circuits involving circuit breaker trip and close 

contacts, current transformers, or potential transformers.

10.5 Operating and Maintenance Expenses. Subject to the provisions herein addressing the use of 

facilities by others, and except for operations and maintenance expenses associated with 

modifications made for providing interconnection or transmission service to a third party and such 

third party pays for such expenses, the Interconnection Customer shall be responsible for all 

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reasonable expenses including overheads, associated with: (1) owning, operating, maintaining, 

repairing, and replacing the Interconnection Customer’s Interconnection Facilities; and (2) 

operation, maintenance, repair and replacement of the Participating TO’s Interconnection 

Facilities

Article 11. Performance Obligation 

11.1 Interconnection Customer’s Interconnection Facilities. The Interconnection Customer shall 

design, procure, construct, install, own and/or control the Interconnection Customer’s 

Interconnection Facilities described in Appendix A at its sole expense.

11.2 Participating TO’s Interconnection Facilities. The Participating TO shall design, procure, 

construct, install, own and/or control the Participating TO’s Interconnection Facilities described in 

Appendix A at the sole expense of the Interconnection Customer. Unless the Participating TO 

elects to fund the capital for the Participating TO’s Interconnection Facilities, they shall be solely 

funded by the Interconnection Customer.

11.3 Network Upgrades and Distribution Upgrades. The Participating TO shall design, procure, 

construct, install, and own the Network Upgrades and Distribution Upgrades described in 

Appendix A. The Interconnection Customer shall be responsible for all costs related to 

Distribution Upgrades. Unless the Participating TO elects to fund the capital for the Distribution 

Upgrades and Network Upgrades, they shall be solely funded by the Interconnection Customer.

11.4 Transmission Credits. No later than thirty (30) days prior to the Commercial Operation Date, 

the Interconnection Customer may make a one-time election by written notice to the CAISO and 

the Participating TO to (a) receive Congestion Revenue Rights as defined in and as available 

under the CAISO Tariff at the time of the election in accordance with the CAISO Tariff, in lieu of a 

refund of the cost of Network Upgrades in accordance with Article 11.4.1, and/or (b) declare all or 

a part of a refund of the cost of Network Upgrades entitled to the Interconnection Customer in 

accordance with Article 11.4.1.

11.4.1 Repayment of Amounts Advanced for Network Upgrades. Upon the Commercial Operation 

Date, the Interconnection Customer shall be entitled to a repayment, equal to the total amount 

paid to the Participating TO for the cost of Network Upgrades. Such amount shall include any tax 

gross-up or other tax-related payments associated with Network Upgrades not refunded to the 

Interconnection Customer pursuant to Article 5.17.8 or otherwise, and shall be paid to the 

Interconnection Customer by the Participating TO on a dollar-for-dollar basis either through (1) 

direct payments made on a levelized basis over the five-year period commencing on the 

Commercial Operation Date; or (2) any alternative payment schedule that is mutually agreeable 

to the Interconnection Customer and Participating TO, provided that such amount is paid within 

five (5) years from the Commercial Operation Date. Notwithstanding the foregoing, if this LGIA 

terminates within five (5) years from the Commercial Operation Date, the Participating TO’s 

obligation to pay refunds to the Interconnection Customer shall cease as of the date of 

termination. Any repayment shall include interest calculated in accordance with the methodology 

set forth in FERC’s regulations at 18 C.F.R. §35.19a(a)(2)(iii) from the date of any payment for 

Network Upgrades through the date on which the Interconnection Customer receives a 

repayment of such payment. Interest shall continue to accrue on the repayment obligation so 

long as this LGIA is in effect. The Interconnection Customer may assign such repayment rights 

to any person.

If the Large Generating Facility fails to achieve commercial operation, but it or another Generating 

Facility is later constructed and makes use of the Network Upgrades, the Participating TO shall at 

that time reimburse Interconnection Customer for the amounts advanced for the Network 

Upgrades. Before any such reimbursement can occur, the Interconnection Customer, or the 

entity that ultimately constructs the Generating Facility, if different, is responsible for identifying 

the entity to which reimbursement must be made.

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11.4.2 Special Provisions for Affected Systems. The Interconnection Customer shall enter into an 

agreement with the owner of the Affected System and/or other affected owners of portions of the 

CAISO Controlled Grid, as applicable, in accordance with the LGIP. Such agreement shall 

specify the terms governing payments to be made by the Interconnection Customer to the owner 

of the Affected System and/or other affected owners of portions of the CAISO Controlled Grid as 

well as the repayment by the owner of the Affected System and/or other affected owners of 

portions of the CAISO Controlled Grid. In no event shall the Participating TO be responsible for 

the repayment for any facilities that are not part of the Participating TO’s Transmission System.

11.4.3 Notwithstanding any other provision of this LGIA, nothing herein shall be construed as 

relinquishing or foreclosing any rights, including but not limited to firm transmission rights, 

capacity rights, Congestion Revenue Rights, or transmission credits, that the Interconnection 

Customer shall be entitled to, now or in the future under any other agreement or tariff as a result 

of, or otherwise associated with, the transmission capacity, if any, created by the Network 

Upgrades, including the right to obtain cash reimbursements or transmission credits for 

transmission service that is not associated with the Large Generating Facility.

11.5 Provision of Security. At least thirty (30) Calendar Days prior to the commencement of the 

procurement, installation, or construction of a discrete portion of a Participating TO’s 

Interconnection Facilities, Network Upgrades, or Distribution Upgrades, the Interconnection 

Customer shall provide the Participating TO, at the Interconnection Customer's option, a 

guarantee, a surety bond, letter of credit or other form of security that is reasonably acceptable to 

the Participating TO and is consistent with the Uniform Commercial Code of the jurisdiction 

identified in Article 14.2.1. Such security for payment shall be in an amount sufficient to cover the 

costs for constructing, procuring and installing the applicable portion of the Participating TO’s 

Interconnection Facilities, Network Upgrades, or Distribution Upgrades. Such security shall be 

reduced on a dollar-for-dollar basis for payments made to the Participating TO for these 

purposes.

In addition:

11.5.1 The guarantee must be made by an entity that meets the creditworthiness requirements of the 

Participating TO, and contain terms and conditions that guarantee payment of any amount that 

may be due from the Interconnection Customer, up to an agreed-to maximum amount.

11.5.2 The letter of credit must be issued by a financial institution reasonably acceptable to the 

Participating TO and must specify a reasonable expiration date.

11.5.3 The surety bond must be issued by an insurer reasonably acceptable to the Participating TO and 

must specify a reasonable expiration date.

11.6 Interconnection Customer Compensation. If the CAISO requests or directs the 

Interconnection Customer to provide a service pursuant to Articles 9.6.3 (Payment for Reactive 

Power) or 13.5.1 of this LGIA, the CAISO shall compensate the Interconnection Customer in 

accordance with the CAISO Tariff.

11.6.1 Interconnection Customer Compensation for Actions During Emergency Condition. The 

CAISO shall compensate the Interconnection Customer in accordance with the CAISO Tariff for 

its provision of real and reactive power and other Emergency Condition services that the 

Interconnection Customer provides to support the CAISO Controlled Grid during an Emergency 

Condition in accordance with Article 11.6.

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Article 12. Invoice 

12.1 General. The Participating TO shall submit to the Interconnection Customer, on a monthly basis, 

invoices of amounts due pursuant to this LGIA for the preceding month. Each invoice shall state 

the month to which the invoice applies and fully describe the services and equipment provided. 

The Parties may discharge mutual debts and payment obligations due and owing to each other 

on the same date through netting, in which case all amounts a Party owes to the other Party 

under this LGIA, including interest payments or credits, shall be netted so that only the net 

amount remaining due shall be paid by the owing Party. Notwithstanding the foregoing, any 

invoices between the CAISO and another Party shall be submitted and paid in accordance with 

the CAISO Tariff.

12.2 Final Invoice. As soon as reasonably practicable, but within twelve months after completion of 

the construction of the Participating TO’s Interconnection Facilities, Network Upgrades, and 

Distribution Upgrades, the Participating TO shall provide an invoice of the final cost of the 

construction of the Participating TO’s Interconnection Facilities, Network Upgrades, and 

Distribution Upgrades, and shall set forth such costs in sufficient detail to enable the 

Interconnection Customer to compare the actual costs with the estimates and to ascertain 

deviations, if any, from the cost estimates. The Participating TO shall refund to the 

Interconnection Customer any amount by which the actual payment by the Interconnection 

Customer for estimated costs exceeds the actual costs of construction within thirty (30) Calendar 

Days of the issuance of such final construction invoice; or, in the event the actual costs of 

construction exceed the Interconnection Customer’s actual payment for estimated costs, then the 

Interconnection Customer shall pay to the Participating TO any amount by which the actual costs 

of construction exceed the actual payment by the Interconnection Customer for estimated costs 

within thirty (30) Calendar Days of the issuance of such final construction invoice.

12.3 Payment. Invoices shall be rendered to the Interconnection Customer at the address specified in 

Appendix F. The Interconnection Customer shall pay, or Participating TO shall refund, the 

amounts due within thirty (30) Calendar Days of the Interconnection Customer’s receipt of the 

invoice. All payments shall be made in immediately available funds payable to the 

Interconnection Customer or Participating TO, or by wire transfer to a bank named and account 

designated by the invoicing Interconnection Customer or Participating TO. Payment of invoices 

by any Party will not constitute a waiver of any rights or claims any Party may have under this 

LGIA.

12.4 Disputes. In the event of a billing dispute between the Interconnection Customer and the

Participating TO, the Participating TO and the CAISO shall continue to provide Interconnection 

Service under this LGIA as long as the Interconnection Customer: (i) continues to make all 

payments not in dispute; and (ii) pays to the Participating TO or into an independent escrow 

account the portion of the invoice in dispute, pending resolution of such dispute. If the 

Interconnection Customer fails to meet these two requirements for continuation of service, then 

the Participating TO may provide notice to the Interconnection Customer of a Default pursuant to 

Article 17. Within thirty (30) Calendar Days after the resolution of the dispute, the Party that owes 

money to the other Party shall pay the amount due with interest calculated in accordance with the 

methodology set forth in FERC's Regulations at 18 C.F.R. § 35.19a(a)(2)(iii). Notwithstanding the 

foregoing, any billing dispute between the CAISO and another Party shall be resolved in 

accordance with the provisions of Article 27 of this LGIA.

Article 13. Emergencies 

13.1 [Reserved]

13.2 Obligations. Each Party shall comply with the Emergency Condition procedures of the CAISO, 

NERC, the Applicable Reliability Council, Applicable Laws and Regulations, and any emergency 

procedures set forth in this LGIA.

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13.3 Notice. The Participating TO or the CAISO shall notify the Interconnection Customer promptly 

when it becomes aware of an Emergency Condition that affects the Participating TO’s 

Interconnection Facilities or Distribution System or the CAISO Controlled Grid, respectively, that 

may reasonably be expected to affect the Interconnection Customer's operation of the Large 

Generating Facility or the Interconnection Customer's Interconnection Facilities. The 

Interconnection Customer shall notify the Participating TO and the CAISO promptly when it 

becomes aware of an Emergency Condition that affects the Large Generating Facility or the 

Interconnection Customer’s Interconnection Facilities that may reasonably be expected to affect 

the CAISO Controlled Grid or the Participating TO’s Interconnection Facilities. To the extent 

information is known, the notification shall describe the Emergency Condition, the extent of the 

damage or deficiency, the expected effect on the operation of the Interconnection Customer's or 

Participating TO’s facilities and operations, its anticipated duration and the corrective action taken 

and/or to be taken. The initial notice shall be followed as soon as practicable with written notice, 

if requested by a Party, which may be provided by electronic mail or facsimile, or in the case of 

the CAISO may be publicly posted on the CAISO’s internet web site.

13.4 Immediate Action. Unless, in the Interconnection Customer's reasonable judgment, immediate 

action is required, the Interconnection Customer shall obtain the consent of the CAISO and the 

Participating TO, such consent to not be unreasonably withheld, prior to performing any manual 

switching operations at the Large Generating Facility or the Interconnection Customer’s 

Interconnection Facilities in response to an Emergency Condition declared by the Participating 

TO or CAISO or in response to any other emergency condition.

13.5 CAISO and Participating TO Authority.

13.5.1 General. The CAISO and Participating TO may take whatever actions or inactions, including 

issuance of dispatch instructions, with regard to the CAISO Controlled Grid or the Participating 

TO’s Interconnection Facilities or Distribution System they deem necessary during an Emergency 

Condition in order to (i) preserve public health and safety, (ii) preserve the reliability of the CAISO 

Controlled Grid or the Participating TO’s Interconnection Facilities or Distribution System, (iii) limit 

or prevent damage, and (iv) expedite restoration of service.

The Participating TO and the CAISO shall use Reasonable Efforts to minimize the effect of such 

actions or inactions on the Large Generating Facility or the Interconnection Customer’s 

Interconnection Facilities. The Participating TO or the CAISO may, on the basis of technical 

considerations, require the Large Generating Facility to mitigate an Emergency Condition by 

taking actions necessary and limited in scope to remedy the Emergency Condition, including, but 

not limited to, directing the Interconnection Customer to shut-down, start-up, increase or 

decrease the real or reactive power output of the Large Generating Facility; implementing a 

reduction or disconnection pursuant to Article 13.5.2; directing the Interconnection Customer to 

assist with black start (if available) or restoration efforts; or altering the outage schedules of the 

Large Generating Facility and the Interconnection Customer’s Interconnection Facilities. 

Interconnection Customer shall comply with all of the CAISO’s Dispatch Instructions and 

Operating Instructions and Participating TO’s dispatch instructions or Operating Instructions 

concerning Large Generating Facility real power and reactive power output within the 

manufacturer’s design limitations of the Large Generating Facility's equipment that is in service 

and physically available for operation at the time, in compliance with Applicable Laws and 

Regulations.

13.5.2 Reduction and Disconnection. The Participating TO or the CAISO may reduce Interconnection 

Service or disconnect the Large Generating Facility or the Interconnection Customer’s 

Interconnection Facilities when such reduction or disconnection is necessary under Good Utility 

Practice due to Emergency Conditions. These rights are separate and distinct from any right of 

curtailment of the CAISO pursuant to the CAISO Tariff. When the CAISO or Participating TO can 

schedule the reduction or disconnection in advance, the CAISO or Participating TO shall notify 

the Interconnection Customer of the reasons, timing and expected duration of the reduction or 

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disconnection. The CAISO or Participating TO shall coordinate with the Interconnection 

Customer using Good Utility Practice to schedule the reduction or disconnection during periods of 

least impact to the Interconnection Customer and the CAISO and Participating TO. Any reduction 

or disconnection shall continue only for so long as reasonably necessary under Good Utility 

Practice. The Parties shall cooperate with each other to restore the Large Generating Facility, 

the Interconnection Facilities, and the CAISO Controlled Grid to their normal operating state as 

soon as practicable consistent with Good Utility Practice.

13.6 Interconnection Customer Authority. Consistent with Good Utility Practice, this LGIA, and the 

CAISO Tariff, the Interconnection Customer may take actions or inactions with regard to the 

Large Generating Facility or the Interconnection Customer’s Interconnection Facilities during an 

Emergency Condition in order to (i) preserve public health and safety, (ii) preserve the reliability 

of the Large Generating Facility or the Interconnection Customer’s Interconnection Facilities, (iii) 

limit or prevent damage, and (iv) expedite restoration of service. Interconnection Customer shall 

use Reasonable Efforts to minimize the effect of such actions or inactions on the CAISO 

Controlled Grid and the Participating TO’s Interconnection Facilities. The CAISO and 

Participating TO shall use Reasonable Efforts to assist Interconnection Customer in such actions.

13.7 Limited Liability. Except as otherwise provided in Article 11.6.1 of this LGIA, no Party shall be 

liable to any other Party for any action it takes in responding to an Emergency Condition so long 

as such action is made in good faith and is consistent with Good Utility Practice.

Article 14. Regulatory Requirements 

14.1 Regulatory Requirements. Each Party’s obligations under this LGIA shall be subject to its 

receipt of any required approval or certificate from one or more Governmental Authorities in the 

form and substance satisfactory to the applying Party, or the Party making any required filings 

with, or providing notice to, such Governmental Authorities, and the expiration of any time period 

associated therewith. Each Party shall in good faith seek and use its Reasonable Efforts to 

obtain such other approvals. Nothing in this LGIA shall require the Interconnection Customer to 

take any action that could result in its inability to obtain, or its loss of, status or exemption under 

the Federal Power Act or the Public Utility Holding Company Act of 1935, as amended, or the 

Public Utility Regulatory Policies Act of 1978, or the Energy Policy Act of 2005.

14.2 Governing Law.

14.2.1 The validity, interpretation and performance of this LGIA and each of its provisions shall be 

governed by the laws of the state where the Point of Interconnection is located, without regard to 

its conflicts of law principles.

14.2.2 This LGIA is subject to all Applicable Laws and Regulations.

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

laws, orders, rules, or regulations of a Governmental Authority.

Article 15. Notices

15.1 General. Unless otherwise provided in this LGIA, any notice, demand or request required or 

permitted to be given by a Party to another and any instrument required or permitted to be 

tendered or delivered by a Party in writing to another shall be effective when delivered and may 

be so given, tendered or delivered, by recognized national courier, or by depositing the same with 

the United States Postal Service with postage prepaid, for delivery by certified or registered mail, 

addressed to the Party, or personally delivered to the Party, at the address set out in Appendix F, 

Addresses for Delivery of Notices and Billings.

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A Party must update the information in Appendix F as information changes. A Party may change 

the notice information in this LGIA by giving five (5) Business Days written notice prior to the 

effective date of the change. Such changes shall not constitute an amendment to this LGIA.

15.2 Billings and Payments. Billings and payments shall be sent to the addresses set out in

Appendix F.

15.3 Alternative Forms of Notice. Any notice or request required or permitted to be given by a Party 

to another and not required by this LGIA to be given in writing may be so given by telephone, 

facsimile or e-mail to the telephone numbers and e-mail addresses set out in Appendix F.

15.4 Operations and Maintenance Notice. Each Party shall notify the other Parties in writing of the 

identity of the person(s) that it designates as the point(s) of contact with respect to the 

implementation of Articles 9 and 10.

Article 16. Force Majeure 

16.1 Force Majeure.

16.1.1 Economic hardship is not considered a Force Majeure event.

16.1.2 No Party shall be considered to be in Default with respect to any obligation hereunder, (including 

obligations under Article 4), other than the obligation to pay money when due, if prevented from 

fulfilling such obligation by Force Majeure. A Party unable to fulfill any obligation hereunder 

(other than an obligation to pay money when due) by reason of Force Majeure shall give notice 

and the full particulars of such Force Majeure to the other Party in writing or by telephone as soon 

as reasonably possible after the occurrence of the cause relied upon. Telephone notices given 

pursuant to this Article shall be confirmed in writing as soon as reasonably possible and shall 

specifically state full particulars of the Force Majeure, the time and date when the Force Majeure 

occurred and when the Force Majeure is reasonably expected to cease. The Party affected shall 

exercise due diligence to remove such disability with reasonable dispatch, but shall not be 

required to accede or agree to any provision not satisfactory to it in order to settle and terminate a 

strike or other labor disturbance.

Article 17. Default

17.1 Default

17.1.1 General. No Default shall exist where such failure to discharge an obligation (other than the 

payment of money) is the result of Force Majeure as defined in this LGIA or the result of an act or 

omission of the other Party. Upon a Breach, the affected non-Breaching Party(ies) shall give 

written notice of such Breach to the Breaching Party. Except as provided in Article 17.1.2, the 

Breaching Party shall have thirty (30) Calendar Days from receipt of the Default notice within 

which to cure such Breach; provided however, if such Breach is not capable of cure within thirty 

(30) Calendar Days, the Breaching Party shall commence such cure within thirty (30) Calendar 

Days after notice and continuously and diligently complete such cure within ninety (90) Calendar 

Days from receipt of the Default notice; and, if cured within such time, the Breach specified in 

such notice shall cease to exist.

17.1.2 Right to Terminate. If a Breach is not cured as provided in this Article, or if a Breach is not 

capable of being cured within the period provided for herein, the affected non-Breaching 

Party(ies) shall have the right to declare a Default and terminate this LGIA by written notice at any 

time until cure occurs, and be relieved of any further obligation hereunder and, whether or not 

such Party(ies) terminates this LGIA, to recover from the Breaching Party all amounts due 

hereunder, plus all other damages and remedies to which it is entitled at law or in equity. The 

provisions of this Article will survive termination of this LGIA.

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Article 18. Indemnity, Consequential Damages, and Insurance 

18.1 Indemnity. Each Party shall at all times indemnify, defend, and hold the other Parties harmless 

from, any and all Losses arising out of or resulting from another Party's action or inactions of its 

obligations under this LGIA on behalf of the indemnifying Party, except in cases of gross 

negligence or intentional wrongdoing by the Indemnified Party.

18.1.1 Indemnified Party. If an Indemnified Party is entitled to indemnification under this Article 18 as a 

result of a claim by a third party, and the Indemnifying Party fails, after notice and reasonable 

opportunity to proceed under Article 18.1, to assume the defense of such claim, such Indemnified 

Party may at the expense of the Indemnifying Party contest, settle or consent to the entry of any 

judgment with respect to, or pay in full, such claim.

18.1.2 Indemnifying Party. If an Indemnifying Party is obligated to indemnify and hold any Indemnified 

Party harmless under this Article 18, the amount owing to the Indemnified Party shall be the 

amount of such Indemnified Party’s actual Loss, net of any insurance or other recovery.

18.1.3 Indemnity Procedures. Promptly after receipt by an Indemnified Party of any claim or notice of 

the commencement of any action or administrative or legal proceeding or investigation as to 

which the indemnity provided for in Article 18.1 may apply, the Indemnified Party shall notify the 

Indemnifying Party of such fact. Any failure of or delay in such notification shall not affect a 

Party's indemnification obligation unless such failure or delay is materially prejudicial to the 

indemnifying Party.

The Indemnifying Party shall have the right to assume the defense thereof with counsel 

designated by such Indemnifying Party and reasonably satisfactory to the Indemnified Party. If 

the defendants in any such action include one or more Indemnified Parties and the Indemnifying 

Party and if the Indemnified Party reasonably concludes that there may be legal defenses 

available to it and/or other Indemnified Parties which are different from or additional to those 

available to the Indemnifying Party, the Indemnified Party shall have the right to select separate 

counsel to assert such legal defenses and to otherwise participate in the defense of such action 

on its own behalf. In such instances, the Indemnifying Party shall only be required to pay the fees 

and expenses of one additional attorney to represent an Indemnified Party or Indemnified Parties 

having such differing or additional legal defenses.

The Indemnified Party shall be entitled, at its expense, to participate in any such action, suit or 

proceeding, the defense of which has been assumed by the Indemnifying Party. Notwithstanding 

the foregoing, the Indemnifying Party (i) shall not be entitled to assume and control the defense of 

any such action, suit or proceedings if and to the extent that, in the opinion of the Indemnified 

Party and its counsel, such action, suit or proceeding involves the potential imposition of criminal 

liability on the Indemnified Party, or there exists a conflict or adversity of interest between the 

Indemnified Party and the Indemnifying Party, in such event the Indemnifying Party shall pay the 

reasonable expenses of the Indemnified Party, and (ii) shall not settle or consent to the entry of 

any judgment in any action, suit or proceeding without the consent of the Indemnified Party, 

which shall not be unreasonably withheld, conditioned or delayed.

18.2 Consequential Damages. Other than the liquidated damages heretofore described in Article 

5.3, in no event shall any Party be liable under any provision of this LGIA for any losses, 

damages, costs or expenses for any special, indirect, incidental, consequential, or punitive 

damages, including but not limited to loss of profit or revenue, loss of the use of equipment, cost 

of capital, cost of temporary equipment or services, whether based in whole or in part in contract, 

in tort, including negligence, strict liability, or any other theory of liability; provided, however, that 

damages for which a Party may be liable to another Party under another agreement will not be 

considered to be special, indirect, incidental, or consequential damages hereunder.

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18.3 Insurance. Each Party shall, at its own expense, maintain in force throughout the period of this 

LGIA, and until released by the other Parties, the following minimum insurance coverages, with 

insurers rated no less than A- (with a minimum size rating of VII) by Bests’ Insurance Guide and 

Key Ratings and authorized to do business in the state where the Point of Interconnection is 

located, except in the case of the CAISO, the State of California:

18.3.1 Workers' Compensation and Employers’ Liability Insurance providing statutory benefits in 

accordance with the laws and regulations of the state in which the Point of Interconnection is 

located, except in the case of the CAISO, the State of California.

18.3.2 Commercial General Liability Insurance including coverage for premises and operations, bodily 

injury (including death), personal injury, property damage, products and completed operations 

coverage, coverage for explosion, collapse and underground hazards, independent contractors 

coverage, and (i) liability of Participating TO and the Interconnection Customer that would be 

imposed without the LGIA, or (ii) liability assumed by the Participating TO and the Interconnection 

Customer in a contract or agreement that is an “insured contract” under commercial general 

liability insurance policy. Such insurance shall include no cross liability exclusions or separation 

of insured clause endorsement exclusions, with minimum limits of One Million Dollars 

($1,000,000) per occurrence/One Million Dollars ($1,000,000) aggregate.

18.3.3 Business Automobile Liability Insurance for coverage of owned and non-owned and hired 

vehicles, trailers or semi-trailers designed for travel on public roads, with a minimum, combined 

single limit of One Million Dollars ($1,000,000) per occurrence for bodily injury, including death, 

and property damage.

18.3.4 Excess Liability Insurance over and above the Employer's Liability Commercial General Liability 

and Business Automobile Liability Insurance coverage, with a minimum limit of Twenty Million 

Dollars ($20,000,000) per occurrence/Twenty Million Dollars ($20,000,000) aggregate.

18.3.5 The Commercial General Liability Insurance, Business Automobile Insurance and Excess Liability 

Insurance policies shall include the other Parties, their parents, their subsidiaries, respective 

directors, officers, agents, servants and employees ("Other Party Group"), and the CAISO as 

additional insured. All policies shall contain provisions whereby the insurers waive all rights of 

subrogation in accordance with the provisions of this LGIA against the Other Party Group.

18.3.6 The Commercial General Liability Insurance, Business Automobile Liability Insurance and Excess 

Liability Insurance policies shall contain provisions that specify that the policies are primary and 

non-contributory. Each Party shall be responsible for its respective deductibles or self-insured 

retentions.

18.3.7 The Commercial General Liability Insurance, Business Automobile Liability Insurance and Excess 

Liability Insurance policies, if written on a Claims First Made Basis, shall be maintained in full 

force and effect for two (2) years after termination of this LGIA, which coverage may be in the 

form of extended reporting period coverage if agreed by the Parties.

18.3.8 [Not Used.]

18.3.9 Thirty (30) Calendar Days prior to the start of any work at the construction site related to 

Interconnection Facilities or Generating Facility under this LGIA, and as soon as practicable after 

the end of each fiscal year or at the renewal of the insurance policy and in any event within ninety 

(90) Calendar Days thereafter, the Participating TO and the Interconnection Customer shall 

provide a certificate of insurance for all insurance required in this LGIA, executed by each insurer 

or by an authorized representative of each insurer.

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18.3.10 Notwithstanding the foregoing, each Party may self-insure to meet the minimum insurance 

requirements of Articles 18.3.2 through 18.3.8 to the extent it maintains a self-insurance program; 

provided that, such Party’s senior unsecured debt or issuer rating is BBB-, or better, as rated by 

Standard & Poor’s and that its self-insurance program meets the minimum insurance 

requirements of Articles 18.3.2 through 18.3.8. For any period of time that a Party’s senior

unsecured debt rating and issuer rating are both unrated by Standard & Poor’s or are both rated 

at less than BBB- by Standard & Poor’s, such Party shall comply with the insurance requirements 

applicable to it under Articles 18.3.2 through 18.3.9. In the event that a Party is permitted to selfinsure pursuant to this Article 18.3.10, it shall notify the other Parties that it meets the 

requirements to self-insure and that its self-insurance program meets the minimum insurance 

requirements in a manner consistent with that specified in Article 18.3.9.

18.3.11 The Parties agree to report to each other in writing as soon as practical all accidents or 

occurrences resulting in injuries to any person, including death, and any property damage greater 

than $25,000, including within the scope of coverage of such insurance whether or not such 

coverage is sought.

Article 19. Assignment 

19.1 Assignment. This LGIA may be assigned by a Party only with the written consent of the other 

Parties; provided that a Party may assign this LGIA without the consent of the other Parties to 

any Affiliate of the assigning Party with an equal or greater credit rating and with the legal 

authority and operational ability to satisfy the obligations of the assigning Party under this LGIA;

and provided further that the Interconnection Customer shall have the right to assign this LGIA, 

without the consent of the CAISO or Participating TO, for collateral security purposes to aid in 

providing financing for the Large Generating Facility, provided that the Interconnection Customer 

will promptly notify the CAISO and Participating TO of any such assignment. Any financing 

arrangement entered into by the Interconnection Customer pursuant to this Article will provide 

that prior to or upon the exercise of the secured party’s, trustee’s or mortgagee’s assignment 

rights pursuant to said arrangement, the secured creditor, the trustee or mortgagee will notify the 

CAISO and Participating TO of the date and particulars of any such exercise of assignment 

right(s), including providing the CAISO and Participating TO with proof that it meets the 

requirements of Articles 11.5 and 18.3. Any attempted assignment that violates this Article is void 

and ineffective. Any assignment under this LGIA shall not relieve a Party of its obligations, nor 

shall a Party’s obligations be enlarged, in whole or in part, by reason thereof. Where required, 

consent to assignment will not be unreasonably withheld, conditioned or delayed.

Article 20. Severability 

20.1 Severability. If any provision in this LGIA is finally determined to be invalid, void or 

unenforceable by any court or other Governmental Authority having jurisdiction, such 

determination shall not invalidate, void or make unenforceable any other provision, agreement or 

covenant of this LGIA; provided that if the Interconnection Customer (or any third party, but only if 

such third party is not acting at the direction of the Participating TO or CAISO) seeks and obtains 

such a final determination with respect to any provision of the Alternate Option (Article 5.1.2), or 

the Negotiated Option (Article 5.1.4), then none of the provisions of Article 5.1.2 or 5.1.4 shall 

thereafter have any force or effect and the Parties’ rights and obligations shall be governed solely 

by the Standard Option (Article 5.1.1).

Article 21. Comparability 

21.1 Comparability. The Parties will comply with all applicable comparability and code of conduct 

laws, rules and regulations, as amended from time to time.

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Article 22. Confidentiality 

22.1 Confidentiality. Confidential Information shall include, without limitation, all information relating 

to a Party’s technology, research and development, business affairs, and pricing, and any 

information supplied by any of the Parties to the other Parties prior to the execution of this LGIA.

Information is Confidential Information only if it is clearly designated or marked in writing as 

confidential on the face of the document, or, if the information is conveyed orally or by inspection, 

if the Party providing the information orally informs the Parties receiving the information that the 

information is confidential.

If requested by any Party, the other Parties shall provide in writing, the basis for asserting that the 

information referred to in this Article 22 warrants confidential treatment, and the requesting Party 

may disclose such writing to the appropriate Governmental Authority. Each Party shall be 

responsible for the costs associated with affording confidential treatment to its information.

22.1.1 Term. During the term of this LGIA, and for a period of three (3) years after the expiration or 

termination of this LGIA, except as otherwise provided in this Article 22, each Party shall hold in 

confidence and shall not disclose to any person Confidential Information.

22.1.2 Scope. Confidential Information shall not include information that the receiving Party can 

demonstrate: (1) is generally available to the public other than as a result of a disclosure by the 

receiving Party; (2) was in the lawful possession of the receiving Party on a non̻confidential 

basis before receiving it from the disclosing Party; (3) was supplied to the receiving Party without 

restriction by a third party, who, to the knowledge of the receiving Party after due inquiry, was 

under no obligation to the disclosing Party to keep such information confidential; (4) was 

independently developed by the receiving Party without reference to Confidential Information of 

the disclosing Party; (5) is, or becomes, publicly known, through no wrongful act or omission of 

the receiving Party or Breach of this LGIA; or (6) is required, in accordance with Article 22.1.7 of 

this LGIA, Order of Disclosure, to be disclosed by any Governmental Authority or is otherwise 

required to be disclosed by law or subpoena, or is necessary in any legal proceeding establishing 

rights and obligations under this LGIA. Information designated as Confidential Information will no 

longer be deemed confidential if the Party that designated the information as confidential notifies

the other Parties that it no longer is confidential.

22.1.3 Release of Confidential Information. No Party shall release or disclose Confidential 

Information to any other person, except to its employees, consultants, Affiliates (limited by the 

Standards of Conduct requirements set forth in Part 358 of FERC’s Regulations, 18 C.F.R. 358), 

subcontractors, or to parties who may be or considering providing financing to or equity 

participation with the Interconnection Customer, or to potential purchasers or assignees of the 

Interconnection Customer, on a need̻to̻know basis in connection with this LGIA, unless such 

person has first been advised of the confidentiality provisions of this Article 22 and has agreed to 

comply with such provisions. Notwithstanding the foregoing, a Party providing Confidential 

Information to any person shall remain primarily responsible for any release of Confidential 

Information in contravention of this Article 22.

22.1.4 Rights. Each Party retains all rights, title, and interest in the Confidential Information that each 

Party discloses to the other Parties. The disclosure by each Party to the other Parties of 

Confidential Information shall not be deemed a waiver by a Party or any other person or entity of 

the right to protect the Confidential Information from public disclosure.

22.1.5 No Warranties. The mere fact that a Party has provided Confidential Information does not 

constitute a warranty or representation as to its accuracy or completeness. In addition, by 

supplying Confidential Information, no Party obligates itself to provide any particular information 

or Confidential Information to the other Parties nor to enter into any further agreements or 

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proceed with any other relationship or joint venture.

22.1.6 Standard of Care. Each Party shall use at least the same standard of care to protect 

Confidential Information it receives as it uses to protect its own Confidential Information from 

unauthorized disclosure, publication or dissemination. Each Party may use Confidential 

Information solely to fulfill its obligations to the other Parties under this LGIA or its regulatory 

requirements.

22.1.7 Order of Disclosure. If a court or a Government Authority or entity with the right, power, and 

apparent authority to do so requests or requires any Party, by subpoena, oral deposition, 

interrogatories, requests for production of documents, administrative order, or otherwise, to 

disclose Confidential Information, that Party shall provide the other Parties with prompt notice of 

such request(s) or requirement(s) so that the other Parties may seek an appropriate protective 

order or waive compliance with the terms of this LGIA. Notwithstanding the absence of a 

protective order or waiver, the Party may disclose such Confidential Information which, in the 

opinion of its counsel, the Party is legally compelled to disclose. Each Party will use Reasonable 

Efforts to obtain reliable assurance that confidential treatment will be accorded any Confidential 

Information so furnished.

22.1.8 Termination of Agreement. Upon termination of this LGIA for any reason, each Party shall,

within ten (10) Calendar Days of receipt of a written request from another Party, use Reasonable 

Efforts to destroy, erase, or delete (with such destruction, erasure, and deletion certified in writing 

to the other Party) or return to the other Party, without retaining copies thereof, any and all written 

or electronic Confidential Information received from the other Party.

22.1.9 Remedies. The Parties agree that monetary damages would be inadequate to compensate a 

Party for another Party’s Breach of its obligations under this Article 22. Each Party accordingly 

agrees that the other Parties shall be entitled to equitable relief, by way of injunction or otherwise, 

if the first Party Breaches or threatens to Breach its obligations under this Article 22, which 

equitable relief shall be granted without bond or proof of damages, and the receiving Party shall 

not plead in defense that there would be an adequate remedy at law. Such remedy shall not be 

deemed an exclusive remedy for the Breach of this Article 22, but shall be in addition to all other 

remedies available at law or in equity. The Parties further acknowledge and agree that the 

covenants contained herein are necessary for the protection of legitimate business interests and 

are reasonable in scope. No Party, however, shall be liable for indirect, incidental, or 

consequential or punitive damages of any nature or kind resulting from or arising in connection 

with this Article 22.

22.1.10 Disclosure to FERC, its Staff, or a State. Notwithstanding anything in this Article 22 to the 

contrary, and pursuant to 18 C.F.R. section 1b.20, if FERC or its staff, during the course of an 

investigation or otherwise, requests information from one of the Parties that is otherwise required 

to be maintained in confidence pursuant to this LGIA, the Party shall provide the requested 

information to FERC or its staff, within the time provided for in the request for information. In 

providing the information to FERC or its staff, the Party must, consistent with 18 C.F.R. section 

388.112, request that the information be treated as confidential and non-public by FERC and its 

staff and that the information be withheld from public disclosure. Parties are prohibited from 

notifying the other Parties to this LGIA prior to the release of the Confidential Information to FERC 

or its staff. The Party shall notify the other Parties to the LGIA when it is notified by FERC or its 

staff that a request to release Confidential Information has been received by FERC, at which time 

any of the Parties may respond before such information would be made public, pursuant to 18 

C.F.R. section 388.112. Requests from a state regulatory body conducting a confidential 

investigation shall be treated in a similar manner if consistent with the applicable state rules and 

regulations.

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22.1.11 Subject to the exception in Article 22.1.10, Confidential Information shall not be disclosed by the 

other Parties to any person not employed or retained by the other Parties, except to the extent 

disclosure is (i) required by law; (ii) reasonably deemed by the disclosing Party to be required to 

be disclosed in connection with a dispute between or among the Parties, or the defense of 

litigation or dispute; (iii) otherwise permitted by consent of the other Parties, such consent not to 

be unreasonably withheld; or (iv) necessary to fulfill its obligations under this LGIA or as a 

transmission service provider or a Balancing Authority including disclosing the Confidential 

Information to an RTO or ISO or to a regional or national reliability organization. The Party 

asserting confidentiality shall notify the other Parties in writing of the information it claims is 

confidential. Prior to any disclosures of another Party’s Confidential Information under this 

subparagraph, or if any third party or Governmental Authority makes any request or demand for 

any of the information described in this subparagraph, the disclosing Party agrees to promptly 

notify the other Party in writing and agrees to assert confidentiality and cooperate with the other 

Party in seeking to protect the Confidential Information from public disclosure by confidentiality 

agreement, protective order or other reasonable measures.

Article 23. Environmental Releases 

23.1 Each Party shall notify the other Parties, first orally and then in writing, of the release of any 

Hazardous Substances, any asbestos or lead abatement activities, or any type of remediation 

activities related to the Large Generating Facility or the Interconnection Facilities, each of which 

may reasonably be expected to affect the other Parties. The notifying Party shall: (i) provide the 

notice as soon as practicable, provided such Party makes a good faith effort to provide the notice 

no later than twenty-four hours after such Party becomes aware of the occurrence; and (ii) 

promptly furnish to the other Parties copies of any publicly available reports filed with any 

Governmental Authorities addressing such events.

Article 24. Information Requests 

24.1 Information Acquisition. The Participating TO and the Interconnection Customer shall submit 

specific information regarding the electrical characteristics of their respective facilities to each 

other as described below and in accordance with Applicable Reliability Standards.

24.2 Information Submission by Participating TO. The initial information submission by the 

Participating TO shall occur no later than one hundred eighty (180) Calendar Days prior to Trial 

Operation and shall include the Participating TO’s Transmission System information necessary to 

allow the Interconnection Customer to select equipment and meet any system protection and 

stability requirements, unless otherwise agreed to by the Participating TO and the Interconnection 

Customer. On a monthly basis the Participating TO shall provide the Interconnection Customer 

and the CAISO a status report on the construction and installation of the Participating TO’s 

Interconnection Facilities and Network Upgrades, including, but not limited to, the following 

information: (1) progress to date; (2) a description of the activities since the last report; (3) a 

description of the action items for the next period; and (4) the delivery status of equipment 

ordered.

24.3 Updated Information Submission by Interconnection Customer. The updated information 

submission by the Interconnection Customer, including manufacturer information, shall occur no 

later than one hundred eighty (180) Calendar Days prior to the Trial Operation. The 

Interconnection Customer shall submit a completed copy of the Electric Generating Unit data 

requirements contained in Appendix 1 to the LGIP. It shall also include any additional information 

provided to the Participating TO and the CAISO for the Interconnection Studies. Information in 

this submission shall be the most current Electric Generating Unit design or expected 

performance data. Information submitted for stability models shall be compatible with the 

Participating TO and CAISO standard models. If there is no compatible model, the 

Interconnection Customer will work with a consultant mutually agreed to by the Parties to develop 

and supply a standard model and associated information.

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If the Interconnection Customer's data is materially different from what was originally provided to 

the Participating TO and the CAISO for the Interconnection Studies, then the Participating TO 

and the CAISO will conduct appropriate studies pursuant to the LGIP to determine the impact on 

the Participating TO’s Transmission System and affected portions of the CAISO Controlled Grid 

based on the actual data submitted pursuant to this Article 24.3. The Interconnection Customer 

shall not begin Trial Operation until such studies are completed and all other requirements of this 

LGIA are satisfied.

24.4 Information Supplementation. Prior to the Trial Operation date, the Parties shall supplement

their information submissions described above in this Article 24 with any and all "as-built" Electric 

Generating Unit information or "as-tested" performance information that differs from the initial 

submissions or, alternatively, written confirmation that no such differences exist. The 

Interconnection Customer shall conduct tests on the Electric Generating Unit as required by Good 

Utility Practice such as an open circuit "step voltage" test on the Electric Generating Unit to verify 

proper operation of the Electric Generating Unit's automatic voltage regulator.

Unless otherwise agreed, the test conditions shall include: (1) Electric Generating Unit at 

synchronous speed; (2) automatic voltage regulator on and in voltage control mode; and (3) a five 

percent (5 percent) change in Electric Generating Unit terminal voltage initiated by a change in 

the voltage regulators reference voltage. The Interconnection Customer shall provide validated 

test recordings showing the responses of Electric Generating Unit terminal and field voltages. In 

the event that direct recordings of these voltages is impractical, recordings of other voltages or 

currents that mirror the response of the Electric Generating Unit’s terminal or field voltage are 

acceptable if information necessary to translate these alternate quantities to actual Electric 

Generating Unit terminal or field voltages is provided. Electric Generating Unit testing shall be 

conducted and results provided to the Participating TO and the CAISO for each individual Electric 

Generating Unit in a station.

Subsequent to the Commercial Operation Date, the Interconnection Customer shall provide the 

Participating TO and the CAISO any information changes due to equipment replacement, repair, 

or adjustment. The Participating TO shall provide the Interconnection Customer any information 

changes due to equipment replacement, repair or adjustment in the directly connected substation 

or any adjacent Participating TO-owned substation that may affect the Interconnection 

Customer’s Interconnection Facilities equipment ratings, protection or operating requirements. 

The Parties shall provide such information pursuant to Article 5.19.

Article 25. Information Access and Audit Rights 

25.1 Information Access. Each Party (the "disclosing Party") shall make available to the other Party 

information that is in the possession of the disclosing Party and is necessary in order for the other 

Party to: (i) verify the costs incurred by the disclosing Party for which the other Party is 

responsible under this LGIA; and (ii) carry out its obligations and responsibilities under this LGIA. 

The Parties shall not use such information for purposes other than those set forth in this Article 

25.1 and to enforce their rights under this LGIA. Nothing in this Article 25 shall obligate the 

CAISO to make available to a Party any third party information in its possession or control if 

making such third party information available would violate a CAISO Tariff restriction on the use 

or disclosure of such third party information.

25.2 Reporting of Non-Force Majeure Events. Each Party (the "notifying Party") shall notify the 

other Parties when the notifying Party becomes aware of its inability to comply with the provisions 

of this LGIA for a reason other than a Force Majeure event. The Parties agree to cooperate with 

each other and provide necessary information regarding such inability to comply, including the 

date, duration, reason for the inability to comply, and corrective actions taken or planned to be 

taken with respect to such inability to comply. Notwithstanding the foregoing, notification, 

cooperation or information provided under this Article shall not entitle the Party receiving such 

notification to allege a cause for anticipatory breach of this LGIA.

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25.3 Audit Rights. Subject to the requirements of confidentiality under Article 22 of this LGIA, the 

Parties’ audit rights shall include audits of a Party’s costs pertaining to such Party's performance 

or satisfaction of obligations owed to the other Party under this LGIA, calculation of invoiced 

amounts, the CAISO’s efforts to allocate responsibility for the provision of reactive support to the 

CAISO Controlled Grid, the CAISO’s efforts to allocate responsibility for interruption or reduction 

of generation on the CAISO Controlled Grid, and each such Party’s actions in an Emergency 

Condition.

25.3.1 The Interconnection Customer and the Participating TO shall each have the right, during normal 

business hours, and upon prior reasonable notice to the other Party, to audit at its own expense 

the other Party's accounts and records pertaining to either such Party's performance or either 

such Party’s satisfaction of obligations owed to the other Party under this LGIA. Subject to Article 

25.3.2, any audit authorized by this Article shall be performed at the offices where such accounts 

and records are maintained and shall be limited to those portions of such accounts and records 

that relate to each such Party’s performance and satisfaction of obligations under this LGIA. 

Each such Party shall keep such accounts and records for a period equivalent to the audit rights 

periods described in Article 25.4.

25.3.2 Notwithstanding anything to the contrary in Article 25.3, each Party’s rights to audit the CAISO’s 

accounts and records shall be as set forth in Section 22.1 of the CAISO Tariff.

25.4 Audit Rights Periods.

25.4.1 Audit Rights Period for Construction-Related Accounts and Records. Accounts and records 

related to the design, engineering, procurement, and construction of Participating TO’s 

Interconnection Facilities, Network Upgrades, and Distribution Upgrades constructed by the 

Participating TO shall be subject to audit for a period of twenty-four months following the

Participating TO’s issuance of a final invoice in accordance with Article 12.2. Accounts and 

records related to the design, engineering, procurement, and construction of Participating TO’s 

Interconnection Facilities and/or Stand Alone Network Upgrades constructed by the 

Interconnection Customer shall be subject to audit and verification by the Participating TO and 

the CAISO for a period of twenty-four months following the Interconnection Customer’s issuance 

of a final invoice in accordance with Article 5.2(8).

25.4.2 Audit Rights Period for All Other Accounts and Records. Accounts and records related to a 

Party’s performance or satisfaction of all obligations under this LGIA other than those described 

in Article 25.4.1 shall be subject to audit as follows: (i) for an audit relating to cost obligations, the 

applicable audit rights period shall be twenty-four months after the auditing Party’s receipt of an 

invoice giving rise to such cost obligations; and (ii) for an audit relating to all other obligations, the 

applicable audit rights period shall be twenty-four months after the event for which the audit is 

sought; provided that each Party’s rights to audit the CAISO’s accounts and records shall be as 

set forth in Section 22.1 of the CAISO Tariff.

25.5 Audit Results. If an audit by the Interconnection Customer or the Participating TO determines 

that an overpayment or an underpayment has occurred with respect to the other Party, a notice of 

such overpayment or underpayment shall be given to the other Party together with those records 

from the audit which supports such determination. The Party that is owed payment shall render 

an invoice to the other Party and such invoice shall be paid pursuant to Article 12 hereof.

25.5.1 Notwithstanding anything to the contrary in Article 25.5, the Interconnection Customer’s and 

Participating TO’s rights to audit the CAISO’s accounts and records shall be as set forth in 

Section 22.1 of the CAISO Tariff, and the CAISO’s process for remedying an overpayment or 

underpayment shall be as set forth in the CAISO Tariff.

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Article 26. Subcontractors 

26.1 General. Nothing in this LGIA shall prevent a Party from utilizing the services of any 

subcontractor as it deems appropriate to perform its obligations under this LGIA; provided, 

however, that each Party shall require its subcontractors to comply with all applicable terms and 

conditions of this LGIA in providing such services and each Party shall remain primarily liable to 

the other Party for the performance of such subcontractor.

26.2 Responsibility of Principal. The creation of any subcontract relationship shall not relieve the 

hiring Party of any of its obligations under this LGIA. The hiring Party shall be fully responsible to 

the other Parties 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 CAISO or Participating 

TO be liable for the actions or inactions of the Interconnection Customer or its subcontractors with 

respect to obligations of the Interconnection Customer under Article 5 of this LGIA. Any 

applicable obligation imposed by this LGIA upon the hiring Party shall be equally binding upon, 

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

26.3 No Limitation by Insurance. The obligations under this Article 26 will not be limited in any way 

by any limitation of subcontractor’s insurance.

Article 27. Disputes

All disputes arising out of or in connection with this LGIA whereby relief is sought by or from the 

CAISO shall be settled in accordance with the provisions of Article 13 of the CAISO Tariff, except 

that references to the CAISO Tariff in such Article 13 of the CAISO Tariff shall be read as 

references to this LGIA. Disputes arising out of or in connection with this LGIA not subject to 

provisions of Article 13 of the CAISO Tariff shall be resolved as follows:

27.1 Submission. In the event either Party has a dispute, or asserts a claim, that arises out of or in 

connection with this LGIA or its performance, such Party (the "disputing Party") shall provide the 

other Party with written notice of the dispute or claim ("Notice of Dispute"). Such dispute or claim 

shall be referred to a designated senior representative of each Party for resolution on an informal 

basis as promptly as practicable after receipt of the Notice of Dispute by the other Party. In the 

event the designated representatives are unable to resolve the claim or dispute through 

unassisted or assisted negotiations within thirty (30) Calendar Days of the other Party’s receipt of 

the Notice of Dispute, such claim or dispute may, upon mutual agreement of the Parties, be 

submitted to arbitration and resolved in accordance with the arbitration procedures set forth 

below. In the event the Parties do not agree to submit such claim or dispute to arbitration, each 

Party may exercise whatever rights and remedies it may have in equity or at law consistent with 

the terms of this LGIA.

27.2 External Arbitration Procedures. Any arbitration initiated under this LGIA shall be conducted 

before a single neutral arbitrator appointed by the Parties. If the Parties fail to agree upon a 

single arbitrator within ten (10) Calendar Days of the submission of the dispute to arbitration, 

each Party shall choose one arbitrator who shall sit on a three-member arbitration panel. The two 

arbitrators so chosen shall within twenty (20) Calendar Days select a third arbitrator to chair the 

arbitration panel. In either case, the arbitrators shall be knowledgeable in electric utility matters, 

including electric transmission and bulk power issues, and shall not have any current or past 

substantial business or financial relationships with any party to the arbitration (except prior 

arbitration). The arbitrator(s) shall provide each of the Parties an opportunity to be heard and, 

except as otherwise provided herein, shall conduct the arbitration in accordance with the 

Commercial Arbitration Rules of the American Arbitration Association (“Arbitration Rules”) and 

any applicable FERC regulations; provided, however, in the event of a conflict between the 

Arbitration Rules and the terms of this Article 27, the terms of this Article 27 shall prevail.

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27.3 Arbitration Decisions. Unless otherwise agreed by the Parties, the arbitrator(s) shall render a 

decision within ninety (90) Calendar Days of appointment and shall notify the Parties in writing of 

such decision and the reasons therefor. The arbitrator(s) shall be authorized only to interpret and 

apply the provisions of this LGIA and shall have no power to modify or change any provision of 

this Agreement in any manner. The decision of the arbitrator(s) shall be final and binding upon 

the Parties, and judgment on the award may be entered in any court having jurisdiction. The 

decision of the arbitrator(s) may be appealed solely on the grounds that the conduct of the 

arbitrator(s), or the decision itself, violated the standards set forth in the Federal Arbitration Act or 

the Administrative Dispute Resolution Act. The final decision of the arbitrator must also be filed 

with FERC if it affects jurisdictional rates, terms and conditions of service, Interconnection 

Facilities, or Network Upgrades.

27.4 Costs. Each Party shall be responsible for its own costs incurred during the arbitration process 

and for the following costs, if applicable: (1) the cost of the arbitrator chosen by the Party to sit on 

the three member panel and one half of the cost of the third arbitrator chosen; or (2) one half the 

cost of the single arbitrator jointly chosen by the Parties.

Article 28. Representations, Warranties, and Covenants

28.1 General. Each Party makes the following representations, warranties and covenants:

28.1.1 Good Standing. Such Party is duly organized, validly existing and in good standing under the 

laws of the state in which it is organized, formed, or incorporated, as applicable; that it is qualified 

to do business in the state or states in which the Large Generating Facility, Interconnection 

Facilities and Network Upgrades owned by such Party, as applicable, are located; and that it has 

the corporate power and authority to own its properties, to carry on its business as now being 

conducted and to enter into this LGIA and carry out the transactions contemplated hereby and 

perform and carry out all covenants and obligations on its part to be performed under and 

pursuant to this LGIA.

28.1.2 Authority. Such Party has the right, power and authority to enter into this LGIA, to become a 

Party hereto and to perform its obligations hereunder. This LGIA is a legal, valid and binding 

obligation of such Party, enforceable against such Party in accordance with its terms, except as 

the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization or 

other similar laws affecting creditors’ rights generally and by general equitable principles 

(regardless of whether enforceability is sought in a proceeding in equity or at law).

28.1.3 No Conflict. The execution, delivery and performance of this LGIA does not violate or conflict 

with the organizational or formation documents, or bylaws or operating agreement, of such Party, 

or any judgment, license, permit, order, material agreement or instrument applicable to or binding 

upon such Party or any of its assets.

28.1.4 Consent and Approval. Such Party has sought or obtained, or, in accordance with this LGIA will 

seek or obtain, each consent, approval, authorization, order, or acceptance by any Governmental 

Authority in connection with the execution, delivery and performance of this LGIA, and it will 

provide to any Governmental Authority notice of any actions under this LGIA that are required by 

Applicable Laws and Regulations.

Article 29. [Reserved]

Article 30. Miscellaneous 

30.1 Binding Effect. This LGIA and the rights and obligations hereof, shall be binding upon and shall 

inure to the benefit of the successors and assigns of the Parties hereto.

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30.2 Conflicts. In the event of a conflict between the body of this LGIA and any attachment, 

appendices or exhibits hereto, the terms and provisions of the body of this LGIA shall prevail and 

be deemed the final intent of the Parties.

30.3 Rules of Interpretation. This LGIA, unless a clear contrary intention appears, shall be construed 

and interpreted as follows: (1) the singular number includes the plural number and vice versa; 

(2) reference to any person includes such person’s successors and assigns but, in the case of a 

Party, only if such successors and assigns are permitted by this LGIA, and reference to a person 

in a particular capacity excludes such person in any other capacity or individually; (3) reference to 

any agreement (including this LGIA), document, instrument or tariff means such agreement, 

document, instrument, or tariff as amended or modified and in effect from time to time in 

accordance with the terms thereof and, if applicable, the terms hereof; (4) reference to any 

Applicable Laws and Regulations means such Applicable Laws and Regulations as amended, 

modified, codified, or reenacted, in whole or in part, and in effect from time to time, including, if 

applicable, rules and regulations promulgated thereunder; (5) unless expressly stated otherwise, 

reference to any Article, Section or Appendix means such Article of this LGIA or such Appendix to 

this LGIA, or such Section to the LGIP or such Appendix to the LGIP, as the case may be; (6) 

"hereunder", "hereof", "herein", "hereto" and words of similar import shall be deemed references 

to this LGIA as a whole and not to any particular Article or other provision hereof or thereof; (7) 

"including" (and with correlative meaning "include") means including without limiting the generality 

of any description preceding such term; and (8) relative to the determination of any period of time, 

"from" means "from and including", "to" means "to but excluding" and "through" means "through 

and including".

30.4 Entire Agreement. This LGIA, including all Appendices and Schedules attached hereto, 

constitutes the entire agreement among the Parties with reference to the subject matter hereof, 

and supersedes all prior and contemporaneous understandings or agreements, oral or written, 

between or among the Parties with respect to the subject matter of this LGIA. There are no other 

agreements, representations, warranties, or covenants which constitute any part of the 

consideration for, or any condition to, any Party’s compliance with its obligations under this LGIA.

30.5 No Third Party Beneficiaries. This LGIA is not intended to and does not create rights, 

remedies, or benefits of any character whatsoever in favor of any persons, corporations, 

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

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

30.6 Waiver. The failure of a Party to this LGIA to insist, on any occasion, upon strict performance of 

any provision of this LGIA will not be considered a waiver of any obligation, right, or duty of, or 

imposed upon, such Party.

Any waiver at any time by either Party of its rights with respect to this LGIA shall not be deemed a 

continuing waiver or a waiver with respect to any other failure to comply with any other obligation, 

right, duty of this LGIA. Termination or Default of this LGIA for any reason by the Interconnection 

Customer shall not constitute a waiver of the Interconnection Customer's legal rights to obtain an 

interconnection from the Participating TO. Any waiver of this LGIA shall, if requested, be 

provided in writing.

30.7 Headings. The descriptive headings of the various Articles of this LGIA have been inserted for 

convenience of reference only and are of no significance in the interpretation or construction of 

this LGIA.

30.8 Multiple Counterparts. This LGIA may be executed in two or more counterparts, each of which 

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

30.9 Amendment. The Parties may by mutual agreement amend this LGIA by a written instrument 

duly executed by all of the Parties. Such amendment shall become effective and a part of this 

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LGIA upon satisfaction of all Applicable Laws and Regulations.

30.10 Modification by the Parties. The Parties may by mutual agreement amend the Appendices to 

this LGIA by a written instrument duly executed by all of the Parties. Such amendment shall 

become effective and a part of this LGIA upon satisfaction of all Applicable Laws and 

Regulations.

30.11 Reservation of Rights. The CAISO and Participating TO shall each have the right to make a 

unilateral filing with FERC to modify this LGIA pursuant to section 205 or any other applicable 

provision of the Federal Power Act and FERC’s rules and regulations thereunder with respect to 

the following Articles of this LGIA and with respect to any rates, terms and conditions, charges, 

classifications of service, rule or regulation covered by these Articles:

Recitals, 1, 2.1, 2.2, 2.3, 2.4, 2.6, 3.1, 3.3, 4.1, 4.2, 4.3, 4.4, 5 preamble, 5.4, 5.7, 5.8, 

5.9, 5.12, 5.13, 5.18, 5.19.1, 7.1, 7.2, 8, 9.1, 9.2, 9.3, 9.5, 9.6, 9.7, 9.8, 9.10, 10.3, 11.4, 

12.1, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24.3, 24.4, 25.1, 25.2, 25.3 (excluding 

subparts), 25.4.2, 26, 28, 29, 30, Appendix D, Appendix F, and any other Article not 

reserved exclusively to the Participating TO or the CAISO below.

The Participating TO shall have the exclusive right to make a unilateral filing with FERC to modify 

this LGIA pursuant to section 205 or any other applicable provision of the Federal Power Act and 

FERC’s rules and regulations thereunder with respect to the following Articles of this LGIA and 

with respect to any rates, terms and conditions, charges, classifications of service, rule or 

regulation covered by these Articles:

2.5 , 5.1, 5.2, 5.3, 5.5, 5.6, 5.10, 5.11, 5.14, 5.15, 5.16, 5.17, 5.19 (excluding 5.19.1), 6, 

7.3, 9.4, 9.9, 10.1, 10.2, 10.4, 10.5, 11.1, 11.2, 11.3, 11.5, 12.2, 12.3, 12.4, 24.1, 24.2, 

25.3.1, 25.4.1, 25.5 (excluding 25.5.1), 27 (excluding preamble), Appendix A, Appendix 

B, Appendix C, and Appendix E.

The CAISO shall have the exclusive right to make a unilateral filing with FERC to modify this 

LGIA pursuant to section 205 or any other applicable provision of the Federal Power Act and 

FERC’s rules and regulations thereunder with respect to the following Articles of this LGIA and 

with respect to any rates, terms and conditions, charges, classifications of service, rule or 

regulation covered by these Articles:

3.2 , 4.5, 11.6, 25.3.2, 25.5.1, and 27 preamble.

The Interconnection Customer, the CAISO, and the Participating TO shall have the right to make 

a unilateral filing with FERC to modify this LGIA pursuant to section 206 or any other applicable 

provision of the Federal Power Act and FERC’s rules and regulations thereunder; provided that 

each Party shall have the right to protest any such filing by another Party and to participate fully in 

any proceeding before FERC in which such modifications may be considered. Nothing in this 

LGIA shall limit the rights of the Parties or of FERC under sections 205 or 206 of the Federal 

Power Act and FERC’s rules and regulations thereunder, except to the extent that the Parties 

otherwise mutually agree as provided herein.

30.12 No Partnership. This LGIA shall not be interpreted or construed to create an association, joint 

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

obligation or partnership liability upon any Party. No 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, another Party.

30.13 Joint and Several Obligations. Except as otherwise provided in this LGIA, the obligations of the 

CAISO, the Participating TO, and the Interconnection Customer are several, and are neither joint 

nor joint and several.

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Appendix V

IN WITNESS WHEREOF, the Parties have executed this LGIA in multiple originals, each of which shall 

constitute and be an original effective agreement among the Parties.

[Insert name of Participating TO]

By: 

Title: 

Date: 

California Independent System Operator Corporation

By: 

Title: 

Date: 

[Insert name of Interconnection Customer]

By: 

Title: 

Date: 

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Appendix V

Appendices to LGIA

Appendix A Interconnection Facilities, Network Upgrades and Distribution Upgrades

Appendix B Milestones

Appendix C Interconnection Details

Appendix D Security Arrangements Details

Appendix E Commercial Operation Date

Appendix F Addresses for Delivery of Notices and Billings

Appendix G [NOT USED]

Appendix H Interconnection Requirements for a Wind Generating Plant

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Appendix V

Appendix A to LGIA 

Interconnection Facilities, Network, and Distribution Upgrades 

1. Interconnection Facilities:

(a) [insert Interconnection Customer's Interconnection Facilities]:

(b) [insert Participating TO’s Interconnection Facilities]:

2. Network Upgrades:

(a) [insert Stand Alone Network Upgrades]:

(b) [insert Other Network Upgrades]:

(i) [insert Participating TO’s Reliability Network Upgrades]

(ii) [insert Participating TO’s Delivery Network Upgrades]

3. Distribution Upgrades:

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Appendix V

Appendix B to LGIA 

Milestones 

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Appendix V

Appendix C to LGIA

Interconnection Details

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Appendix V

Appendix D to LGIA

Security Arrangements Details

Infrastructure security of CAISO Controlled Grid equipment and operations and control hardware and 

software is essential to ensure day-to-day CAISO Controlled Grid reliability and operational security. 

FERC will expect the CAISO, all Participating TOs, market participants, and Interconnection Customers 

interconnected to the CAISO Controlled Grid to comply with the recommendations offered by the 

President's Critical Infrastructure Protection Board and, eventually, best practice recommendations from 

the electric reliability authority. All public utilities will be expected to meet basic standards for system 

infrastructure and operational security, including physical, operational, and cyber-security practices.

The Interconnection Customer shall meet the requirements for security implemented pursuant to the 

CAISO Tariff, including the CAISO’s standards for information security posted on the CAISO’s internet 

web site at the following internet address: http://www.caiso.com/pubinfo/info-security/index.html. 

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Appendix V

Appendix E to LGIA

Commercial Operation Date

This Appendix E is a part of the LGIA.

[Date]

[CAISO Address]

[Participating TO Address]

Re: Electric Generating Unit

Dear : 

On [Date] [Interconnection Customer] has completed Trial Operation of Unit No. ___. This letter confirms 

that [Interconnection Customer] commenced Commercial Operation of Unit No. ___ at the Electric 

Generating Unit, effective as of [Date plus one day].

Thank you.

[Signature] 

[Interconnection Customer Representative]

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Appendix V

Appendix F to LGIA

Addresses for Delivery of Notices and Billings

Notices:

CAISO:

[To be supplied.]

Participating TO:

[To be supplied.]

Interconnection Customer:

[To be supplied.]

Billings and Payments:

Participating TO:

[To be supplied.]

Interconnection Customer:

[To be supplied.]

CAISO:

[To be supplied.]

Alternative Forms of Delivery of Notices (telephone, facsimile or e-mail):

CAISO:

[To be supplied.]

Participating TO:

[To be supplied.]

Interconnection Customer:

[To be supplied.]

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Appendix V

Appendix G to LGIA 

[Not Used]

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Appendix V

Appendix H to LGIA

INTERCONNECTION REQUIREMENTS FOR A WIND GENERATING PLANT

Appendix H sets forth requirements and provisions specific to a wind generating plant. All other 

requirements of this LGIA continue to apply to wind generating plant interconnections.

A. Technical Standards Applicable to a Wind Generating Plant

i. Low Voltage Ride-Through (LVRT) Capability

A wind generating plant shall be able to remain online during voltage disturbances up to 

the time periods and associated voltage levels set forth in the standard below. The LVRT 

standard provides for a transition period standard and a post-transition period standard.

Transition Period LVRT Standard

The transition period standard applies to wind generating plants subject to FERC Order 

661 that have either: (i) interconnection agreements signed and filed with FERC, filed 

with FERC in unexecuted form, or filed with FERC as non-conforming agreements 

between January 1, 2006 and December 31, 2006, with a scheduled In-Service Date no 

later than December 31, 2007, or (ii) wind generating turbines subject to a wind turbine 

procurement contract executed prior to December 31, 2005, for delivery through 2007.

1. Wind generating plants are required to remain in-service during three-phase 

faults with normal clearing (which is a time period of approximately 4 – 9 cycles) 

and single line to ground faults with delayed clearing, and subsequent post-fault 

voltage recovery to prefault voltage unless clearing the fault effectively 

disconnects the generator from the system. The clearing time requirement for a 

three-phase fault will be specific to the wind generating plant substation location, 

as determined by and documented by the Participating TO. The maximum 

clearing time the wind generating plant shall be required to withstand for a threephase fault shall be 9 cycles at a voltage as low as 0.15 p.u., as measured at the 

high side of the wind generating plant step-up transformer (i.e. the transformer 

that steps the voltage up to the transmission interconnection voltage or "GSU"), 

after which, if the fault remains following the location-specific normal clearing 

time for three-phase faults, the wind generating plant may disconnect from the

transmission system.

2. This requirement does not apply to faults that would occur between the wind 

generator terminals and the high side of the GSU or to faults that would result in 

a voltage lower than 0.15 per unit on the high side of the GSU serving the facility.

3. Wind generating plants may be tripped after the fault period if this action is 

intended as part of a special protection system.

4. Wind generating plants may meet the LVRT requirements of this standard by the 

performance of the generators or by installing additional equipment (e.g., Static 

VAr Compensator, etc.) within the wind generating plant or by a combination of 

generator performance and additional equipment.

5. Existing individual generator units that are, or have been, interconnected to the 

network at the same location at the effective date of the Appendix H LVRT 

Standard are exempt from meeting the Appendix H LVRT Standard for the 

remaining life of the existing generation equipment. Existing individual generator 

units that are replaced are required to meet the Appendix H LVRT Standard.

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Appendix V

Post-transition Period LVRT Standard

All wind generating plants subject to FERC Order No. 661 and not covered by the 

transition period described above must meet the following requirements:

1. Wind generating plants are required to remain in-service during three-phase 

faults with normal clearing (which is a time period of approximately 4 – 9 cycles) 

and single line to ground faults with delayed clearing, and subsequent post-fault 

voltage recovery to prefault voltage unless clearing the fault effectively 

disconnects the generator from the system. The clearing time requirement for a 

three-phase fault will be specific to the wind generating plant substation location, 

as determined by and documented by the Participating TO. The maximum 

clearing time the wind generating plant shall be required to withstand for a threephase fault shall be 9 cycles after which, if the fault remains following the 

location-specific normal clearing time for three-phase faults, the wind generating 

plant may disconnect from the CAISO Controlled Grid. A wind generating plant 

shall remain interconnected during such a fault on the CAISO Controlled Grid for 

a voltage level as low as zero volts, as measured at the high voltage side of the

wind GSU.

2. This requirement does not apply to faults that would occur between the wind 

generator terminals and the high side of the GSU.

3. Wind generating plants may be tripped after the fault period if this action is 

intended as part of a special protection system.

4. Wind generating plants may meet the LVRT requirements of this standard by the 

performance of the generators or by installing additional equipment (e.g., Static 

VAr Compensator) within the wind generating plant or by a combination of 

generator performance and additional equipment.

5. Existing individual generator units that are, or have been, interconnected to the 

CAISO Controlled Grid at the same location at the effective date of the Appendix 

H LVRT Standard are exempt from meeting the Appendix H LVRT Standard for 

the remaining life of the existing generation equipment. Existing individual 

generator units that are replaced are required to meet the Appendix H LVRT 

Standard.

ii. Power Factor Design Criteria (Reactive Power)

A wind generating plant shall operate within a power factor within the range of 0.95 

leading to 0.95 lagging, measured at the Point of Interconnection as defined in this LGIA 

in order to maintain a specified voltage schedule, if the Interconnection System Impact 

Study shows that such a requirement is necessary to ensure safety or reliability. The 

power factor range standard can be met by using, for example, power electronics 

designed to supply this level of reactive capability (taking into account any limitations due 

to voltage level, real power output, etc.) or fixed and switched capacitors, or a 

combination of the two, if agreed to by the Participating TO and CAISO. The 

Interconnection Customer shall not disable power factor equipment while the wind plant 

is in operation. Wind plants shall also be able to provide sufficient dynamic voltage 

support in lieu of the power system stabilizer and automatic voltage regulation at the 

generator excitation system if the Interconnection System Impact Study shows this to be 

required for system safety or reliability.

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Appendix V

iii. Supervisory Control and Data Acquisition (SCADA) Capability

The wind plant shall provide SCADA capability to transmit data and receive instructions 

from the Participating TO and CAISO to protect system reliability. The Participating TO 

and CAISO and the wind plant Interconnection Customer shall determine what SCADA 

information is essential for the proposed wind plant, taking into account the size of the 

plant and its characteristics, location, and importance in maintaining generation resource 

adequacy and transmission system reliability in its area.

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