Although FERC’s recent effort to clarify its interconnectionpolicy was a “major step” in the right direction, the ElectricPower Supply Association (EPSA) said greater reforms are needed toprotect new generators seeking to interconnect to the power grid.It has asked the Commission to issue a policy statement that would”comprehensively” spell out “the rights, obligations andexpectations” of interconnecting generators and providers ofinterconnection/transmission services.

In an effort to “jump start” the process, the EPSA has submitteda “Bill of Rights” that outlines the specific rights of newgenerators when trying to hook up to the electric grid. Theassociation of power suppliers asked that any interconnectionpolicy statement reflect these rights.

Additionally, it has urged the Commission to convene anindustry-wide collaborative to develop a FERC-approved modelinterconnection agreement. The EPSA has proposed its own modelinterconnection agreement as a starting point for negotiating theterms of future hook-ups. It characterized the proposed agreementas a “good-faith attempt at balancing the disparate interests ofgenerators and interconnection service providers.”

In the event FERC should agree to a collaborative, the EPSAwants the Commission to defer ruling on the pro formainterconnection and operating agreement proposed by EntergyServices Inc. earlier this month [ER00-1743]. “If, however, theCommission does not pursue a collaborative approach, then it shouldset Entergy’s interconnection agreement for hearing for the purposeof reconciling its proposal with the EPSA’s generator Bill ofRights and the model agreement.”

Without a greater response from FERC on grid interconnections,the EPSA said certain transmission-owning utilities will continueto impede the interconnection process, which in turn will block theconstruction of new generation. Some utilities are preventing newgenerators from interconnecting to the grid “by imposing cumbersomeand oftentimes largely secretive review process, unreasonablequeuing procedures, delays in the negotiation of pertinentagreements, and other burdensome interconnection requirements,including, for example, tying interconnection to transmissionservice, insisting upon unnecessary system upgrades or requiringexcessive security deposits.”

Absent certain reforms to the interconnection process, the154,000 MW of merchant generating capacity that’s planned fordevelopment over the next several years won’t see the light of day,the power marketer group said. “…..[I]f this merchant generationis to be built, it must be expeditiously and predictablyinterconnected to the grid.”

To ensure grid access, the EPSA proposed that new generatorsplanning to interconnect be afforded nine rights, including theright to: 1) inject power into the grid at the point ofinterconnection without having to purchase transmission services;2) request interconnection services “pursuant to a FERC-approvednondiscriminatory interconnection service tariff,” or other clearlydefined rules and procedures; and 3) have all interconnectionstudies and analyses performed by an ISO/RTO or other qualifiedindependent contractor.

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