NEW
TITLE 14. BOARD OF PUBLIC UTILITIES
CHAPTER 4. ENERGY COMPETITION
SUBCHAPTER 9. NET METERING AND INTERCONNECTION STANDARDS FOR CLASS I RENEWABLE
ENERGY SYSTEMS
N.J.A.C. 14:4-9 (2006)
§ 14:4-9.1 Scope
(a) This subchapter sets forth net metering requirements that
apply to electric power suppliers, basic generation service providers and
electric distribution companies, as defined at N.J.A.C. 14:4-9.2, which have
residential or small commercial customers who generate electricity using class
I renewable energy.
(b) This subchapter also sets forth requirements for the interconnection of
customer-generator facilities, including those that generate class I renewable
energy, with electric distribution systems, as those terms are defined at
N.J.A.C. 14:4-9.2.
§ 14:4-9.2. Definitions
The following words and terms, when used in this subchapter,
shall have the following meanings, unless the context clearly indicates
otherwise.
"Annualized period" means a period of 12 consecutive
monthly billing periods. A customer-generator's first annualized period begins
on the first day of the first full monthly billing period after which the
customer-generator's facility is interconnected and is generating electricity.
"Applicant" means a person who has filed an
application to interconnect a customer-generator facility to an electric
distribution system.
"Area network" means a type of electric
distribution system served by multiple transformers interconnected in an
electrical network circuit, which is generally used in large metropolitan areas
that are densely populated, in order to provide high reliability of service.
This term has the same meaning as the term "secondary grid network"
as defined in IEEE standard 1547 Section 4.1.4 (published July 2003), as
amended and supplemented, which is incorporated herein by reference. IEEE
standard 1547 can be obtained through the IEEE website at www.ieee.org.
"Avoided cost of wholesale power" means the average
locational marginal price of energy in the applicable
utility's transmission zone. This cost can be obtained through the website
maintained by PJM Interconnection at www.pjm.com.
"Basic generation service" has the meaning assigned
to this term at N.J.A.C. 14:4-8.2.
"Board" means the New Jersey Board of Public
Utilities or any successor agency.
"Class I renewable energy" has the meaning assigned
to this term in N.J.A.C. 14:4-8.2.
"Customer-generator" means a residential or small
commercial customer that generates electricity, on the customer's side of the
meter.
"Customer-generator facility" means the equipment
used by a customer-generator to generate, manage, and monitor electricity. A
customer-generator facility typically includes an electric generator and/or an
equipment package, as defined herein.
"Electric distribution company" or "EDC"
means an electric public utility, as the term is defined in N.J.S.A. 48:2-13,
that transmits or distributes electricity to end users within
"Electric distribution system" means that portion
of an electric system which delivers electricity from transformation points on
the transmission system to points of connection at a customer's premises. An
electric distribution system generally carries less than 69 kilovolts of
electricity.
"Electric power supplier" has the meaning assigned
to this term at N.J.A.C. 14:4-8.2.
"Equipment package" means a group of components
connecting an electric generator with an electric distribution system, and
includes all interface equipment including switchgear, inverters, or other
interface devices. An equipment package may include an integrated generator or
electric source.
"Fault current" means electrical current that flows
through a circuit and is produced by an electrical fault, such as to ground,
double-phase to ground, three-phase to ground,
phase-to-phase, and three-phase. A fault current is several times larger in
magnitude than the current that normally flows through a circuit.
"Good utility practice" has the same meaning as is
assigned to this term in the Amended and Restated Operating Agreement of PJM
Interconnection (October 2003), as amended and supplemented, which is incorporated
herein by reference. The Operating Agreement can be obtained on the PJM
Interconnection website at www.pjm.com. As of October 4, 2004, the Operating
Agreement defines this term as "a practice, method, policy, or action
engaged in and/or accepted by a significant portion of the electric industry in
a region, which a reasonable utility official would expect, in light of the
facts reasonably discernable at the time, to accomplish the desired result
reliably, safely and expeditiously."
"IEEE standards" means the standards published by
the
"Interconnection agreement" means an agreement
between a customer-generator and an EDC, which governs the connection of the
customer-generator facility to the electric distribution system, as well as the
ongoing operation of the customer-generator facility after it is connected to
the system. An interconnection agreement shall follow the standard form
agreement developed by the Board and posted on the Board's website at www.bpu.state.nj.us.
"kW" means kilowatts, a unit of power representing
1,000 watts. A kW equals 1/1,000 of a MW, as defined in this section.
"MW" means megawatts, a unit of power representing
1,000,000 watts. A MW equals 1,000 kW.
"Net metering" means a system of metering
electricity in which the EDC:
1. Credits a customer-generator at the full retail rate
for each kilowatt-hour produced by a class I renewable energy system installed
on the customer-generator's side of the electric revenue meter, up to the total
amount of electricity used by that customer during an annualized period; and
2. Compensates the customer-generator at the end of the
annualized period for any remaining credits, at a rate equal to the
supplier/provider's avoided cost of wholesale power.
"Point of common coupling" has the same meaning as
assigned to the term under IEEE Standard 1547 Section 3.0 (published July
2003), as amended and supplemented, which is incorporated herein by reference.
IEEE Standard 1547 Section 3.0 can be obtained through the IEEE website at
www.ieee.org. As of October 4, 2004, IEEE Standard 1547 defined this term as
"the point in the interconnection of a customer-generator facility with an
electric distribution system at which the harmonic limits are applied."
"Solar electric generation" has the meaning
assigned to this term at N.J.A.C. 14:4-8.2.
"Small commercial customer" means a non-residential
electrical customer with less than 10 MW of peak demand, as determined by the
most recently measured annual peak demand on the customer's demand meter, or by
the peak load contribution for the customer as submitted by the EDC to the PJM
RTO for load planning purposes.
"Spot network" has the same meaning as assigned to
the term under IEEE Standard 1547 Section 4.1.4 (published July 2003), as
amended and supplemented, which is incorporated herein by reference. IEEE
standard can be obtained through the IEEE website at www.ieee.org. As of
October 4, 2004, IEEE Standard 1547 defined "spot network" as "a
type of electric distribution system that uses two or more inter-tied
transformers to supply an electrical network circuit." A spot network is
generally used to supply power to a single customer or a small group of
customers.
"Supplier/provider" means an electric power
supplier or a basic generation service provider.
§ 14:4-9.3. Net metering
general provisions
(a) All electric distribution companies (EDCs) and supplier/providers, as defined at N.J.A.C. 14:4-9.2,
shall offer net metering to their residential and small commercial customers,
as defined at N.J.A.C. 14:4-9.2, that generate electricity, on the customer's
side of the meter, using class I renewable energy sources, provided that the
generating capacity of the customer-generator's facility does not exceed two
MW, and does not exceed the amount of electricity supplied by the electric
power supplier or basic generation service provider to the customer over an
annualized period.
(b) The EDC shall develop a tariff providing for net
metering. Each supplier/provider and EDC shall make net metering available to
eligible customer-generators on a first-come, first-served basis.
(c) If, in a given monthly billing period, a
customer-generator supplies more electricity to the electric distribution
system than the EDC or supplier/provider delivers to the customer-generator,
the EDC and supplier/provider shall credit the customer-generator for the
excess. To do this, the EDC or supplier/provider shall reduce the
customer-generator's bill for the next monthly billing period to compensate for
the excess electricity from the customer-generator in the previous billing
period.
(d) The EDC and supplier/provider shall carry over
credit earned under (c) above from monthly billing period to monthly billing
period, and the credit shall accumulate until the end of the annualized period,
as defined at N.J.A.C. 14:4-9.2.
(e) At the end of each annualized period, the
supplier/provider shall compensate the customer-generator for any excess
kilowatt hours generated, at the electric power supplier's or basic generation
service provider's avoided cost of wholesale power, as defined at N.J.A.C.
14:4-9.2.
(f) If a customer-generator switches electric suppliers,
the electric power supplier or basic generation service provider with whom
service is terminating shall treat the end of the service period as if it were
the end of the annualized period.
(g) Each supplier/provider or EDC shall submit an annual
net metering report to the Board. The report shall be submitted by June 30th of
each year, and shall include the following information for the one-year period
ending May 31st of that year:
1. The total number of customer-generator facilities;
2. The total estimated rated generating capacity of its
net metering customer-generators;
3. The total estimated net kilowatt-hours received from
customer-generators; and
4. The total estimated amount of energy produced by the
customer-generators, which shall be calculated using protocols approved by the
Board.
(h) A customer-generator that is eligible for net
metering owns the renewable attributes of the electricity it generates on or
after October 4, 2004 unless there is a contract with an express provision that
assigns ownership of the renewable attributes.
(i) A customer-generator that
owns renewable attributes may trade or sell the attributes to another person,
or may apply to the Board in accordance with N.J.A.C. 14:4-8.9 for issuance of
Solar Renewable Energy Certificates, or SRECs, based
on solar electric generation. Once the PJM's
Generation Attribute Tracking System (GATS), or another tracking system
approved by the Board, is operational, the owner of renewable attributes may
apply for issuance of class I renewable energy RECs.
If RECs or SRECs are
issued, the customer-generator or other recipient of the RECs
or SRECs may trade or sell the REC or SREC, or may
trade or sell the REC or SREC through an aggregator, or through a trading
program authorized by the Board.
(j) A supplier/provider or EDC shall provide net
metering at non-discriminatory rates that are identical, with respect to rate
structure, retail rate components, and any monthly charges, to the rates that a
customer-generator would be charged if not a customer-generator, except that a
supplier/provider or EDC may use a special load profile for the
customer-generator, which incorporates the customer-generator's real time
generation, provided the special load profile is approved by the Board.
(k) A supplier/provider or EDC shall not charge a
customer-generator any fee or charge; or require additional equipment,
insurance or any other requirement; unless the fee, charge, or other
requirement is specifically authorized under this subchapter, or the fee would
apply to other customers that are not customer-generators.
(l) Nothing in this subchapter shall abrogate any
person's obligation to comply with all applicable Federal or State laws, or
codes.
§ 14:4-9.4 Meters and metering
(a) A customer-generator facility used for net metering shall be
equipped with metering equipment that can measure the flow of electricity in
both directions at the same rate. This is typically accomplished through use of
a single bi-directional meter.
(b) A customer-generator may choose to use an existing electric revenue meter
if the following criteria are met:
1. The meter is capable of measuring the flow of electricity both into and out
of the customer-generator's facility at the same rate; and
2. The meter is accurate to within plus or minus five percent when measuring
electricity flowing from the customer-generator facility to the electric
distribution system.
(c) If the customer-generator's existing electric revenue meter does not meet
the requirements at (b) above, the EDC shall install a new revenue meter for
the customer-generator, at the company's expense. Any subsequent revenue meter
change necessitated by the customer-generator, whether because of a decision to
stop net metering or for any other reason, shall be paid for by the
customer-generator.
(d) The electric distribution company shall not require more than one meter per
customer-generator. However, an additional meter may be installed under either
of the following circumstances:
1. The electric distribution company may install an additional meter at its own
expense if the customer-generator consents; or
2. The customer-generator may request that the EDC install a meter, in addition
to the revenue meter addressed in (c) above, at the customer-generator's expense.
In such a case, the EDC shall charge the customer-generator no more than the
actual cost of the meter and its installation.
§ 14:4-9.5. General
interconnection provisions
(a) Each EDC shall provide the following three review
procedures for applications for interconnection of customer-generator
facilities:
1. Level 1: An EDC shall use this review procedure for
all applications to connect inverter-based customer-generator facilities, which
have a power rating of 10 kW or less, and which meet the certification
requirements at N.J.A.C. 14:4-9.6. Level 1 interconnection review procedures
are set forth at N.J.A.C. 14:4-9.7;
2. Level 2: An EDC shall use this review procedure for
applications to connect customer-generator facilities with a power rating of
two MW or less, which meet the certification requirements at N.J.A.C. 14:4-9.6.
Level 2 interconnection review procedures are set forth at N.J.A.C. 14:4-9.8;
and
3. Level 3: An EDC shall use this review procedure for
applications to connect customer-generator facilities with a power rating of
two MW or less, which do not qualify for either the level 1 or level 2
interconnection review procedures. Level 3 interconnection review procedures
are set forth at N.J.A.C. 14:4-9.9.
(b) Each EDC shall designate an employee or office from
which an applicant can obtain basic application forms and information through
an informal process. On request, this employee or office shall provide all
relevant forms, documents, and technical requirements for submittal of a
complete application for interconnection review under this section, as well as
specific information necessary to contact the EDC representatives assigned to
review the application.
(c) Upon request, the EDC shall meet with an applicant
who qualifies for level 2 or level 3 interconnection review,
to assist them in preparing the application.
(d) An application for interconnection review shall be
submitted on a standard form, available from the EDC and posted on the Board's
website at www.bpu.state.nj.us. The application form
will require the following types of information:
1. Basic information regarding the applicant and the
electricity supplier(s) involved;
2. Information regarding the type and specifications of
the customer-generator facility;
3. Information regarding the contractor who will install
the customer-generator facility;
4. Certifications and agreements regarding utility
access to the customer-generator's property, emergency procedures, liability,
compliance with electrical codes, proper operation and maintenance, receipt of
basic information; and
5. Other similar information that is necessary to
determine compliance with this chapter.
(e) An EDC shall not be responsible for the cost of
determining the rating of equipment owned by a customer-generator, or of
equipment owned by other local customers.
(f) The provisions of this subchapter that apply to
interconnection are primarily intended for customer-generator facilities that
are eligible for net metering; that is, renewable generation facilities with a
capacity for no greater than two megawatts, which generate electricity for
retail transactions. However, these provisions may be used for review of other
interconnections at the discretion of the EDC.
(g) If the interconnection of a customer-generator
facility is subject to interconnection requirements of FERC or PJM, the
provisions of this subchapter that apply to interconnection apply to that
facility only to the extent that they do not conflict with the interconnection
requirements of FERC or PJM.
(h) If an applicant for interconnection disagrees with
an EDC's determination of fact or need regarding
matters covered in this subchapter, or if any person has a complaint regarding
matters covered herein, the applicant or other person may file an informal
complaint with the Board under N.J.A.C. 14:1-5.13, or may file a petition with
the Board under N.J.A.C. 14:1-5.
§ 14:4-9.6 Certification of
customer-generator facilities
(a) In order to qualify for the level 1 and the level 2
interconnection review procedures described at N.J.A.C. 14:4-9.7 and 9.8, a
customer-generator facility must be certified as complying with the following
standards, as applicable:
1. IEEE 1547, Standard for Interconnecting Distributed Resources with Electric
Power Systems (published July 2003), as amended or supplemented, and which is
incorporated by reference herein. IEEE Standard 1547 can be obtained through
the IEEE website at www.ieee.org; and
2. UL 1741 Inverters, Converters, and Controllers for Use in Independent Power
Systems (January 2001), as amended or supplemented, which is incorporated by
reference herein. UL 1741 can be obtained through the Underwriters Laboratories
website at www.ul.com.
(b) An equipment package shall be considered certified for interconnected
operation if it has been submitted by a manufacturer to a nationally recognized
testing and certification laboratory, and has been tested and listed by the
laboratory for continuous interactive operation with an electric distribution
system in compliance with the applicable codes and standards listed in (a)
above.
(c) If the equipment package has been tested and listed in accordance with this
section as an integrated package, which includes a generator or other electric
source, the equipment package shall be deemed certified, and the EDC shall not
require further design review, testing or additional equipment.
(d) If the equipment package includes only the interface components
(switchgear, inverters, or other interface devices), an interconnection
applicant must show that the generator or other electric source being utilized
with the equipment package is compatible with the equipment package and
consistent with the testing and listing specified for the package. If the
generator or electric source being utilized with the equipment package is
consistent with the testing and listing performed by the nationally recognized
testing and certification laboratory, the equipment package shall be deemed
certified, and the EDC shall not require further design review, testing or
additional equipment.
(e) A certified equipment package does not include equipment provided by the
EDC.
§ 14:4-9.7 Level 1 interconnection review
(a) Each EDC shall adopt a level 1 interconnection review
procedure. The EDC shall use the level 1 review procedure only for an
application to interconnect a customer-generator facility that meets all of the
following criteria:
1. The facility is inverter-based;
2. The facility has a capacity of 10 kW or less; and
3. The facility has been certified in accordance with N.J.A.C. 14:4-9.6.
(b) For a customer-generator facility described at (a) above, the EDC shall
approve interconnection under the level 1 interconnection review procedure if
all of the applicable requirements at (c) through (g) below are met. An EDC
shall not impose additional requirements not specifically authorized under this
section.
(c) The aggregate generation capacity on the distribution circuit to which the
customer-generator facility will interconnect, including the capacity of the
customer-generator facility, shall not contribute more than 10 percent to the
distribution circuit's maximum fault current at the point on the high voltage
(primary) level that is nearest the proposed point of common coupling.
(d) A customer-generator facility's point of common coupling shall not be on a
transmission line, a spot network, or an area network.
(e) If a customer-generator facility is to be connected to a radial
distribution circuit, the aggregate generation capacity connected to the
circuit, including that of the customer-generator facility, shall not exceed 10
percent (15 percent for solar electric generation) of the circuit's total
annual peak load, as most recently measured at the substation.
(f) If a customer-generator facility is to be connected to a single-phase
shared secondary, the aggregate generation capacity connected to the shared
secondary, including the customer-generator facility, shall not exceed 20
kilovolt-amps (kVA).
(g) If a single-phase customer-generator facility is to be connected to a
transformer center tap neutral of a 240 volt service, the addition of the
customer-generator facility shall not create an imbalance between the two sides
of the 240 volt service of more than 20 percent of nameplate rating of the
service transformer.
(h) An applicant shall submit an application for level 1 interconnection review
on a standard form, available from the EDC and posted on the Board's website at
www.bpu.state.nj.us. See N.J.A.C. 14:4-9.5(d). An
applicant may choose to simultaneously submit an EDC's
standard form interconnection agreement executed by the applicant.
(i) Within three business days after receiving an
application for level 1 interconnection review, the EDC shall provide written
or e-mail notice to the applicant that it received the application and whether
the application is complete. If the application is incomplete, the written
notice shall include a list of all of the information needed to complete the
application.
(j) Within 10 business days after the EDC notifies the applicant that the
application is complete under (i) above, the EDC
shall notify the applicant that:
1. The customer-generator facility meets all of the criteria at (c) through (g)
above that apply to the facility, and the interconnection will be finally
approved upon completion of the process set forth at (k) through (o) below; or
2. The customer-generator facility has failed to meet one or more of the
applicable criteria at (c) through (g) above, and the interconnection
application is denied.
(k) If a customer-generator facility meets all of the applicable criteria at
(c) through (g) above, the EDC shall, within three business days after sending
the notice of approval under (j)1 above, do the following:
1. Notify the applicant if an EDC inspection of the customer-generator facility
for compliance with this subchapter is required prior to starting operation of
the facility; and
2. Execute and send to the applicant a level 1 interconnection agreement, unless:
i. The EDC does not require an interconnection
agreement for customer-generator facilities that qualify for level 1
interconnection review; or
ii. The applicant has already submitted such an agreement with its application
for interconnection, in accordance with (h) above.
(l) An applicant that receives an interconnection agreement under (k) above
shall execute the agreement and return it to the EDC at least five business
days prior to starting operation of the customer-generator facility (unless the
EDC does not so require). The applicant shall indicate the anticipated start
date for operation of the customer-generator facility. If the EDC requires an
inspection of the customer-generator facility, the applicant shall not begin
operating the facility until completion of the inspection.
(m) Upon receipt of the executed interconnection agreement from the
customer-generator, and satisfactory completion of an inspection if required,
the EDC shall approve the interconnection, conditioned on approval by the
electrical code officials with jurisdiction over the interconnection.
(n) If an EDC does not notify a level 1 applicant in writing or by e-mail
whether the interconnection is approved or denied within 20 business days after
the receipt of an application, the interconnection shall be deemed approved.
The 20 days shall begin on the date that the EDC sends the written or e-mail
notice or application receipt required under (i)
above.
(o) A customer-generator shall notify the EDC of the anticipated start date for
operation of the customer-generator facility at least five days prior to
starting operation, either through the submittal of the interconnection
agreement or in a separate notice.
(p) If an application for level 1 interconnection review is denied because it
does not meet one or more of the applicable requirements in this section, an
applicant may resubmit the application under the level 2 or level 3
interconnection review procedure, as appropriate.
§ 14:4-9.8 Level 2 interconnection review
(a) Each EDC shall adopt a level 2 interconnection review
procedure. The EDC shall use the level 2 interconnection review procedure for
an application to interconnect a customer-generator facility that meets both of
the following criteria:
1. The facility has a capacity of two megawatts or less; and
2. The facility has been certified in accordance with N.J.A.C. 14:4-9.6.
(b) For a customer-generator facility described at (a) above, the EDC shall
approve interconnection under the level 2 interconnection review procedure if
all of the applicable requirements at (c) through (l) below are met. An EDC
shall not impose additional requirements not specifically authorized under this
section.
(c) The aggregate generation capacity on the distribution circuit to which the
customer-generator facility will interconnect, including the capacity of the
customer-generator facility, shall not cause any distribution protective
equipment (including, but not limited to, substation breakers, fuse cutouts,
and line reclosers), or customer equipment on the
electric distribution system, to exceed 90 percent of the short circuit
interrupting capability of the equipment. In addition, a customer-generator
facility shall not be connected to a circuit that already exceeds 90 percent of
the short circuit interrupting capability, prior to interconnection of the
facility.
(d) If there are posted transient stability limits to generating units located
in the general electrical vicinity of the proposed point of common coupling
(for example, within three or four transmission voltage level busses), the
aggregate generation capacity (including the customer-generator facility)
connected to the distribution low voltage side of the substation transformer
feeding the distribution circuit containing the point of common coupling shall
not exceed 10 MW.
(e) The aggregate generation capacity connected to the distribution circuit,
including the customer-generator facility, shall not contribute more than 10
percent to the distribution circuit's maximum fault current at the point on the
high voltage (primary) level nearest the proposed point of common coupling.
(f) If a customer-generator facility is to be connected to a radial
distribution circuit, the aggregate generation capacity connected to the
electric distribution system by non-EDC sources, including the
customer-generator facility, shall not exceed 10 percent (or 15 percent for
solar electric generation) of the total circuit annual peak load. For the
purposes of this paragraph, annual peak load shall be based on measurements
taken over the 12 months previous to the submittal of the application, measured
at the substation nearest to the customer-generator facility.
(g) If a customer-generator facility is to be connected to three-phase, three
wire primary EDC distribution lines, a three-phase or single-phase generator
shall be connected phase-to-phase.
(h) If a customer-generator facility is to be connected to three-phase, four
wire primary EDC distribution lines, a three-phase or single phase generator
shall be connected line-to-neutral and shall be effectively grounded.
(i) If a customer-generator facility is to be
connected to a single-phase shared secondary, the aggregate generation capacity
on the shared secondary, including the customer-generator facility, shall not
exceed 20 kilovolt-amps (kVA).
(j) If a customer-generator facility is single-phase and is to be connected to
a transformer center tap neutral of a 240 volt service, the addition of the
customer-generator facility shall not create an imbalance between the two sides
of the 240 volt service, which is greater than 20 percent of the nameplate
rating of the service transformer.
(k) A customer-generator facility's point of common coupling shall not be on a
transmission line.
(l) If a customer-generator facility's proposed point of common coupling is on
a spot or area network, the interconnection shall meet the following
requirements, in addition to the requirements in (c) through (k) above:
1. For a customer-generator facility that will be connected to a spot network
circuit, the aggregate generation capacity connected to that spot network from
customer-generator facilities, including the customer-generator facility, shall
not exceed five percent of the spot network's maximum load;
2. For a customer-generator facility that utilizes inverter based protective
functions, which will be connected to an area network, the customer-generator
facility, combined with other exporting customer-generator facilities on the
load side of network protective devices, shall not exceed 10 percent of the
minimum annual load on the network, or 500 kW, whichever is less. For the
purposes of this paragraph, the percent of minimum load for solar electric
generation customer-generator facility shall be calculated based on the minimum
load occurring during an off-peak daylight period; and
3. For a customer-generator facility that will be connected to a spot or an
area network that does not utilize inverter based protective functions, or for
an inverter based customer-generator facility that does not meet the
requirements of (l)1 or 2 above, the customer-generator facility shall utilize
reverse power relays or other protection devices that ensure no export of power
from the customer-generator facility, including inadvertent export (under fault
conditions) that could adversely affect protective devices on the network.
(m) An applicant shall submit an application for level 2 interconnection review on a standard form, available from the EDC and posted
on the Board's website at www.bpu.state.nj.us. See
N.J.A.C. 14:4-9.5(d). An applicant may choose to simultaneously submit an EDC's standard form interconnection agreement executed by
the applicant.
(n) Within three business days after receiving an application for level 2 interconnection
review, the EDC shall provide written or e-mail notice to the applicant that it
received the application and whether the application is complete. If the
application is incomplete, the written notice shall include a list of all of
the information needed to complete the application.
(o) Within 15 business days after the EDC notifies the applicant that the
application is complete under (n) above, the EDC shall perform an initial
review of the proposed interconnection to determine whether the interconnection
meets the applicable requirements at (c) through (l) above. During this initial
review, the EDC may, at its own expense, conduct any studies or tests it deems
necessary to evaluate the proposed interconnection. The initial review shall
result in one of the following determinations:
1. The customer-generator facility meets the applicable requirements in (c)
through (l) above. In this case, the EDC shall notify the applicant that the
interconnection will be finally approved upon completion of the process set
forth at (p) through (r) below. Within three business days after this notice,
the EDC shall provide the applicant with an executable interconnection
agreement;
2. The customer-generator facility has failed to meet one or more of the
applicable requirements at (c) through (l) above, but the EDC has nevertheless
determined that the customer-generator facility can be interconnected
consistent with safety, reliability, and power quality. In this case, the EDC
shall notify the applicant that the interconnection will be finally approved
upon completion of the process set forth at (p) through (r) below. Within five
business days after this notice, the EDC shall provide the applicant with an
executable interconnection agreement;
3. The customer-generator facility has failed to meet one or more of the
applicable requirements at (c) through (k) above, but the initial review
indicates that additional review may enable the EDC to determine that the
customer-generator facility can be interconnected consistent with safety,
reliability, and power quality. In such a case, the EDC shall offer to perform
additional review to determine whether minor modifications to the electric
distribution system (for example, changing meters, fuses, or relay settings)
would enable the interconnection to be made consistent with safety, reliability
and power quality. The EDC shall provide to the applicant a nonbinding, good
faith estimate of the costs of such additional review, and/or such minor
modifications. The EDC shall undertake the additional review or modifications
only after the applicant consents to pay for the review and/or modifications;
or
4. The customer-generator facility has failed to meet one or more of the
applicable requirements at (c) through (l) above, and the initial review
indicates that additional review would not enable the EDC to determine that the
customer-generator facility could be interconnected consistent with safety,
reliability, and power quality. In such a case, the EDC shall notify the
applicant that the interconnection application has been denied, and shall
provide an explanation of the reason(s) for the denial, including a list of
additional information and/or modifications to the customer-generator's
facility, which would be required in order to obtain an approval under level 2
interconnection procedures.
(p) An applicant that receives an interconnection agreement under (o)1 or 2
above shall:
1. Execute the agreement and return it to the EDC at least 10 business days
prior to starting operation of the customer-generator facility (unless the EDC
does not so require); and
2. Indicate to the EDC the anticipated start date for operation of the
customer-generator facility.
(q) The EDC may require an EDC inspection of a customer-generator facility for compliance
with this subchapter prior to operation, and may require and arrange for
witness of commissioning tests as set forth in IEEE standard 1547 (published
July 2003), as amended and supplemented, which is incorporated by reference
herein. The EDC shall schedule any inspections or tests under this section
promptly and within a reasonable time after submittal of the application. The
applicant shall not begin operating the customer-generator facility until after
the inspection and testing is completed.
(r) For an applicant that receives an interconnection agreement under (p)1 or 2 above, approval of interconnected operation of the
customer-generator facility shall be conditioned on all of the following
occurring:
1. The interconnection has been approved by the electrical code official with
jurisdiction over the interconnection;
2. Any EDC inspection and/or witnessing of commissioning tests arranged under
(q) above are successfully completed; and
3. The planned start date provided by the applicant under (q) above has passed.
(s) If an application for level 2 interconnection review
is denied because it does not meet one or more of the requirements in this
section, the applicant may resubmit the application under the level 3
interconnection review procedure.
§ 14:4-9.9 Level 3 interconnection review
(a) Each EDC shall adopt a level 3 interconnection review
procedure. The EDC shall use the level 3 review procedure for an application to
interconnect a customer-generator facility that has a capacity less than two
megawatts and does not qualify for the level 1 or level 2 interconnection
review procedures set forth at N.J.A.C. 14:4-9.7 and 9.8.
(b) The EDC shall conduct an initial review of the application and shall offer
the applicant an opportunity to meet with EDC staff to discuss the application.
At the meeting, the EDC shall provide pertinent information to the applicant,
such as the available fault current at the proposed interconnection location,
the existing peak loading on the lines in the general vicinity of the
customer-generator facility, and the configuration of the distribution lines at
the proposed point of common coupling.
(c) The EDC shall provide an impact study agreement to the applicant, which
shall include a good faith cost estimate for an impact study to be performed by
the EDC. An impact study is an engineering analysis of the probable impact of a
customer-generator facility on the safety and reliability of the EDC's electric distribution system. An impact study shall
be conducted in accordance with good utility practice, as defined at N.J.A.C.
14:4-9.2, and shall:
1. Detail the impacts to the electric distribution system that would result if
the customer-generator facility were interconnected without modifications to
either the customer-generator facility or to the electric distribution system;
2. Identify any modifications to the EDC's electric
distribution system that would be necessary to accommodate the proposed
interconnection; and
3. Focus on power flows and utility protective devices, including control
requirements.
(d) If the proposed interconnection may affect electric transmission or
delivery systems other than that controlled by the EDC, operators of these
other systems may require additional studies to determine the potential impact
of the interconnection on these systems. If such additional studies are
required, the EDC shall coordinate the studies but shall not be responsible for
their timing. The applicant shall be responsible for the costs of any such
additional studies required by another affected system. Such studies shall be
conducted only after the applicant has provided written authorization.
(e) After the applicant has executed the impact study agreement and has paid
the EDC the amount of the good faith estimate required under (c) above, the EDC
shall conduct the impact study and shall notify the applicant of the results as
follows:
1. If the impact study indicates that only insubstantial modifications to the EDC's electric distribution system are necessary to accommodate
the proposed interconnection, the EDC shall send the applicant an
interconnection agreement that details the scope of the necessary modifications
and an estimate of their cost; or
2. If the impact study indicates that substantial modifications to the EDC's electric distribution system are necessary to
accommodate the proposed interconnection, the EDC shall provide an estimate of
the cost of the modifications, which shall be accurate to within plus or minus
25 percent. In addition, the EDC shall offer to conduct a facilities study at
the applicant's expense, which will identify the types and cost of equipment
needed to safely interconnect the applicant's customer-generator facility.
(f) If an applicant requests a facilities study under (e)2
above, the EDC shall provide a facilities study agreement. The facilities study
agreement shall describe the work to be undertaken in the facilities study and
shall include a good faith estimate of the cost to the applicant for completion
of the study. Upon the execution by the applicant of the facilities study
agreement, the EDC shall conduct a facilities study, which shall identify the
facilities necessary to safely interconnect the customer-generator facility
with the EDC's electric distribution system, the cost
of those facilities, and the time required to build and install those
facilities.
(g) Upon completion of a facilities study, the EDC shall provide the applicant
with the results of the study and an executable interconnection agreement. The
agreement shall list the conditions and facilities necessary for the
customer-generator facility to safely interconnect with the EDC's
electric distribution system, the cost of those facilities, and the estimated
time required to build and install those facilities.
(h) If the applicant wishes to interconnect, it shall execute the
interconnection agreement, provide a deposit of not more than 50 percent of the
cost of the facilities identified in the facilities study, complete
installation of the customer-generator facility, and agree to pay the EDC the
amount required for the facilities needed to interconnect as identified in the
facilities study.
(i) Within 15 business days after notice from the
applicant that the customer-generator facility has been installed, the EDC
shall inspect the customer-generator facility and shall arrange to witness any
commissioning tests required under IEEE Standard 1547. The EDC and the
applicant shall select a date by mutual agreement for the EDC to witness
commissioning tests.
(j) Provided that the customer-generator facility passes any required
commissioning tests satisfactorily, the EDC shall notify the applicant in
writing, within three business days after the tests, of one of the following:
1. The interconnection is approved and the customer-generator facility may
begin operation; or
2. The facilities study identified necessary construction that has not been
completed, the date upon which the construction will be completed and the date
when the customer-generator facility may begin operation.
(k) If the commissioning tests are not satisfactory, the customer-generator
shall repair or replace the unsatisfactory equipment and reschedule a
commissioning test pursuant to (i) above.
(l) Each EDC shall include in any tariff or published procedures for level 3
interconnection review each element of an impact
study, including a description of the review the EDC will undertake for each
element. An impact study shall include the following elements, as applicable:
1. A load flow study;
2. A short-circuit study;
3. A circuit protection and coordination study;
4. The impact on the operation of the electric distribution system;
5. A stability study (and the conditions that would justify including this
element in the impact study);
6. A voltage collapse study (and the conditions that would justify including
this element in the impact study); and
7. Additional elements, if approved in writing by Board staff prior to the
impact study.
§ 14:4-9.10 Interconnection fees
(a) An EDC or supplier/provider shall not charge an application or
other fee to an applicant that requests level 1 interconnection review.
However, if an application for level 1 interconnection review is denied because
it does not meet the requirements for level 1 interconnection review, and the
applicant resubmits the application under another review procedure in
accordance with N.J.A.C. 14:4-9.7(p), the EDC may impose a fee for the
resubmitted application, consistent with this section.
(b) For an level 2 interconnection review, the EDC may charge fees of up to $
50.00 plus $ 1.00 per kilowatt of the customer-generator facility's capacity,
plus the cost of any minor modifications to the electric distribution system or
additional review, if required under N.J.A.C. 14:4-9.8(o)3
or 4. Costs for such minor modifications or additional review shall be based on
EDC estimates and shall be subject to case by case review by the Board or its
designee. Costs for engineering work done as part of any additional review
shall not exceed $ 100.00 per hour.
(c) For a level 3 interconnection review, the EDC may charge fees of up to $
100.00 plus $ 2.00 per kilowatt of the customer-generator facility's capacity,
as well as charges for actual time spent on any impact and/or facilities
studies required under N.J.A.C. 14:4-9.9. Costs for engineering work done as
part of an impact study or facilities study shall not exceed $ 100.00 per hour.
If the EDC must install facilities in order to accommodate the interconnection
of the customer-generator facility, the cost of such facilities shall be the
responsibility of the applicant.
§ 14:4-9.11 Requirements after approval of
an interconnection
(a) An EDC shall not require an applicant whose facility meets the
criteria for interconnection approval under the level 1 or level 2
interconnection review procedure required pursuant to N.J.A.C. 14:4-9.7 and
9.8, to install additional controls or external disconnect switches not
included in the equipment package, to perform or pay for additional tests, or
to purchase additional liability insurance, except if agreed to by the
applicant.
(b) An EDC shall not charge any fee or other charge for connecting to the EDC's equipment or for operation of a customer-generator
facility for the purposes of net metering, except for the fees provided for
under this subchapter.
(c) Once a net metering interconnection has been approved under this
subchapter, the EDC shall not require a customer-generator to test or perform
maintenance on its facility except for the following:
1. An annual test in which the customer-generator's facility is disconnected
from the electric distribution company's equipment to ensure that the inverter
stops delivering power to the grid;
2. Any manufacturer-recommended testing or maintenance; and
3. Any post-installation testing necessary to ensure compliance with IEEE 1547
or to ensure safety.
(d) When a customer-generator facility approved through a level 2 or level 3 review undergoes maintenance or testing in accordance with
the requirements of this subchapter, the customer-generator shall retain
written records documenting the maintenance and the results of testing. No
recordkeeping is required for maintenance or testing performed on a
customer-generator facility approved through a level 1 review.
(e) An EDC shall have the right to inspect a customer-generator's facility
after interconnection approval is granted, at reasonable hours and with
reasonable prior notice to the customer-generator. If the EDC discovers that
the customer-generator's facility is not in compliance with the requirements of
this subchapter, and the noncompliance adversely affects the safety or
reliability of the electric distribution system, the EDC may require the
customer-generator to disconnect the customer-generator facility until
compliance is achieved.