An Interconnection Agreement (IA) is a formal legal document detailing the terms and conditions for interconnection service administered by the ISO. If you’ve submitted an interconnection request (IR) to the ISO for a generator or elective transmission upgrade (ETU), you must enter into an IA before you can begin construction and operation.
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Interconnection Agreement
You have the option to waive the Facilities Study (FAC) and elect expedited interconnection and enter into an Engineering and Procurement Agreement (E&P) instead. This election obligates you to certain milestone and cost requirements, and your decision cannot be reversed.
Interconnection Governing Tariff Rules
Schedule 22, Section 11, Standard Large Generator Interconnection Agreement (LGIA), includes the interconnection agreement development process for large generators; Schedule 25 includes those for Elective Transmission Upgrade Interconnection Agreements (ETUIAs); and Schedule 23, Section 4.8, SGIA (Small Generator Interconnection Agreement), includes those for small generators. A summary of key points follows.
Interconnection Agreement Development Timeframe
To elect expedited interconnection, notify the ISO in writing within 10 business days following your System Impact Study (SIS) results meeting waiving the FAC. Associated deadlines are as follows:
- The ISO shall initiate the LGIA/ETUIA development process within 15 calendar days after the SIS comments are submitted or waived by tendering you a draft LGIA/ETUIA, together with draft appendices completed by the ISO and the interconnecting transmission owner (ITO).
- Within 30 calendar days after receiving the draft from the ISO, you must return the completed LGIA form with the appendices (LGIA/ETUIA), including the specific IC information that the interconnection customer is willing to execute. Schedule 22, Appendix 6, contains the pro forma LGIA; Schedule 25, Appendix 6, contains the pro forma ETUIA.
- You must return the SGIA form (Schedule 23, Exhibit 1) with the IC-specific information, including the attachments, within 15 business days of receiving a draft SGIA from the ISO and interconnecting transmission owner.
- Within five business days after receiving the SGIA form and attachments, the ISO and ITO must issue a final draft of the SGIA to the interconnection customer.
Interconnection Agreement Milestones
Expedited interconnection commits you to one or more of the following milestones under the LGIA (Schedule 22):
- The execution of a contract for the supply or transportation of fuel to the large generating facility
- The execution of a contract for the supply of cooling water to the large generating facility
- The execution of a contract for the engineering work for the large generating facility, the procurement of major equipment for the facility, or the construction of the facility
- The execution of a contract for the sale of electric energy or capacity from the large generating facility
- An application for an air, water, or land-use permit
- A commitment to a schedule for the payment of upgrades
- Provision of either evidence of major permits obtained OR a refundable deposit of 20% of the total costs for the interconnection facilities and other upgrades identified in the interconnection studies. If the ITO’s expenditure schedule for the interconnection facilities and other upgrades calls for an initial payment of greater than 20% of the total upgrade costs, the scheduled initial payment must instead be made at the time of the IA execution.
The dates for the following milestones under Appendix B in the LGIA are negotiated with the interconnecting transmission owner and directly influence the development of an overall schedule and commitment of your project:
- Milestone 7C—when you provide written authorization to the ITO to start spending
- Milestone 10A—commitment to ordering long-lead-time materials and equipment
- Milestone 15A—start of the construction of the interconnection facilities
Expedited interconnection commits you to one or more of the following milestones under the ETUIA (Schedule 25) upon execution:
- The submission of filings for regulatory siting
- Execution of a contract for the engineering for, procurement of major equipment for, or construction of the ETU
- Execution of an agreement regarding the use of the ETU
- Application for environmental or land use permit
- A commitment to a schedule for the payment of upgrades
- Provision of either evidence of major permits obtained OR a refundable deposit of 20% of the total costs for the interconnection facilities and other upgrades identified in the interconnection studies. If the ITO’s expenditure schedule for the interconnection facilities and other upgrades calls for an initial payment of greater than 20% of the total upgrade costs, the scheduled initial payment must instead be made at the time of the IA execution.
The Interconnection Agreement process and milestones also directly influence the timing of construction that will lead to meeting the key milestones and ultimately your project’s commercial operation date.
Please also refer to Appendix B in the LGIA/ETUIA and Attachment 4 of the SGIA for additional milestones set forth by the Interconnection Agreement.
Enter into an Engineering and Procurement Agreement with the Interconnection Transmission Owner
To expedite the interconnection of a large generator or elective transmission upgrade, you can request an Engineering and Procurement Agreement from the interconnecting transmission owner. This is done in advance of executing an Interconnection Agreement and gives you the option to waive the Facilities Study (FAC).
While small generators cannot request an E&P, they have a different option—see the Facilities Study information to learn more.
An E&P accomplishes the following:
- Authorizes the interconnecting transmission owner and any other affected party to begin engineering and procurement of necessary long-lead-time items
- Obligates you to assume the risks and costs associated with the equipment, engineering, procurement, and construction work—these would typically be estimated by the FAC
- Gives you the option to waive the FAC—a decision that cannot be reversed.
Governing Tariff Rules
The ISO’s Open Access Transmission Tariff (OATT) details the interconnection process rules. See Schedule 22, Section 9, Engineering and Procurement Agreement for large generators, or Schedule 25 for ETUs.
Questions
Email IRTT Participant Support at irtt@iso-ne.com, or contact ISO Participant Support.
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