Interconnection Agreement (Sample) - Eugene Water & Electric Board

EUGENE WATER & ELECTRIC BOARDSolar Electric Program Interconnection AgreementNameAddressThis Agreement is entered into between __ (hereinafter referred to as "Customer”), and theEugene Water & Electric Board (EWEB). Customer has elected to operate a distributed electricgenerating (DG) facility on their premises in parallel and interconnected with EWEB’s electricsystem.1. Term of AgreementThis Agreement shall become effective when signed by the Customer and executed by EWEB.This Agreement shall remain in effect as long as the DG Facility is interconnected to EWEB’selectric system, unless terminated by either Party with thirty (30) days prior written notice.2. Preauthorization RequirementCustomer agrees that EWEB is not obligated to interconnect Customer’s DG facility to EWEB’ssystem if installation of such DG facility was initiated prior to EWEB and Customer signing thisAgreement. Under no circumstances shall EWEB allow interconnection of any DG facilitywithout a signed Interconnection Agreement and final authorization by EWEB.3. Project Description and SpecificationsCustomer agrees to install the DG facility as described in Exhibit 1 of the __ Agreementapplicable to this DG Facility and to notify EWEB in a timely manner if there are any changes tothe DG Facility after this Interconnection Agreement has been executed. Failure to comply withthis provision could cause this Agreement and the Customer’s __ Agreement to be terminated.4. EWEB Interconnection RequirementsCustomer shall comply with all applicable requirements and specifications described in EWEB’sDG Interconnection Requirements found in Exhibit A of this Agreement.5. Independent PartiesThe Parties agree that the Customer and EWEB are independent parties and shall not be deemedto be partners, joint ventures, employees, franchisees or franchisers, servants or agents of eachother for any purpose whatsoever under or in connection with this Agreement.6. EWEB ResponsibilitiesEWEB’s responsibilities under this Agreement are limited to (1) inspecting and either approvingor disapproving the Customer’s interconnection design and equipment for purposes ofinterconnection to EWEB facilities, (2) designing and installing EWEB facilities and equipmentDG Interconnection Agreement_2009.doc 09/01/2009 Page 1 of 13

to interconnect with the DG facility as represented by the Customer, and (3) ensuring the DGfacility does not interfere with the safety and reliability of EWEB’s electric distribution system.EWEB’s approval of the interconnection of Customer’s DG facility to EWEB’s facilities shallnot be deemed to be approval of the DG facility’s quality, utility, durability, or functionality, orverification of proper installation, or any other approval of the DG facility’s design orengineering or its ability to meet any intended use and purpose. EWEB’s approval is solely toverify that safety devices are in place to protect EWEB’s system during interconnection. Anyfailure of or repairs and modifications thereof to the Customer’s system, once connected, are atthe sole expense, responsibility, and liability of the Customer. EWEB shall not be liable for anydirect, special, or consequential damages to the Customer or the Customer’s system.7. Customer ResponsibilitiesCustomer assumes full responsibility for the design, purchase, installation, contracting,subcontracting, supervision of the installation and operation of the proposed DG facility, togetherwith making application, obtaining permits and complying with EWEB InterconnectionRequirements, EWEB Policies and Procedures, and all federal, state, or local laws, regulations,and ordinances for the design, installation and operation of the DG facility. Customer shall beresponsible for confirming that the DG facility meets any other particular requirements.Customer agrees to supervise installation and to complete the project in a workmanlike manner,correct any defects, and ensure performance that neither adversely affects the electrical energyoutput expected from the DG facility nor adversely affects property or human health and safety.Customer shall maintain and operate the DG facility and interconnection facilities in a safe andprudent manner and in conformance with EWEB's Interconnection Requirements (Exhibit A)and all applicable laws, regulations, codes, ordinances, and administrative rules of every kind.Customer is responsible for and shall pay for all EWEB facilities required to be installed solelyto interconnect Customer’s DG facility to the EWEB system including, but not limited to,connection, transformation, switching, protective relaying, metering and safety equipment,including a lockable, visibly-open, Disconnect Switch and any other requirements as outlined orreferenced in Exhibit A. All such Customer facilities are to be installed by Customer atCustomer’s expense. In the event that additional facilities are required on the EWEB system toaccommodate the Customer’s generation, EWEB will install, and Customer will pay for suchfacilities and installation.The Customer of the DG shall be responsible for the cost of any short circuit analyses,engineering, modeling, or testing that may be required to incorporate the DG into EWEB’sdistribution system.The Customer is solely responsible for the protection of Customer’s DG equipment fromautomatic reclosing or other actions by EWEB.If the generating equipment is removed at a later date, the Customer of the DG is responsible forgiving EWEB reasonable notice prior to removing or disconnecting such equipment and forreimbursing EWEB for the cost of removing any equipment provided by EWEB to serve the DG.Any Customer equipment installed, moved, or removed as a result of this project will remain theproperty of the Customer.DG Interconnection Agreement_2009.doc 09/01/2009 Page 2 of 13

8. Interruption or Reduction of DeliveriesEWEB may require Customer to interrupt or reduce generation as follows:a. When necessary in order to construct, install, maintain, repair, replace, remove,investigate, or inspect any of EWEB’s equipment or part of EWEB’s system orb. If EWEB determines that curtailment, interruption, or reduction is necessary becauseof potential danger to property or human health and safety, or for compliance withprudent electrical practices.When practical in non-emergency situations, EWEB shall give Customer reasonable notice ofthe possibility that interruption or reduction of generation may be required.Notwithstanding any other provision of this Agreement, if at any time EWEB determines thateither:a. The facility may endanger EWEB personnel orb. The continued operation of Customer's facility may endanger the integrity of EWEB’ssystemEWEB shall have the right to disconnect Customer's DG facility without notice from EWEB'selectric system. Customer's DG facility shall remain disconnected until such time as EWEB issatisfied that such condition(s) have been corrected.In the event EWEB or its authorized agents lock open the Disconnect Switch, Customer shall notremove or tamper with such lock. If tampering occurs, Customer shall be assessed a tamperingcharge in accordance with EWEB’s Customer Services Policies and Procedures and thisInterconnection Agreement shall be subject to termination for cause.9. InterconnectionEWEB reserves the right to disallow the interconnection of a DG facility if, upon review of theCustomer’s design, EWEB determines that the proposed design is not in compliance withEWEB’s Interconnection Requirements, applicable safety codes, or is such that it couldconstitute a potentially unsafe or hazardous condition.If EWEB determines that the proposed generation system cannot be interconnected to EWEB’ssystem as designed or without additional distribution improvements, EWEB and the Customershall enter into an Interconnection Study Agreement. Customer shall reimburse EWEB for allcosts to perform additional analysis, design, and engineering to establish an acceptableinterconnection. Upon completion, EWEB shall provide the Customer with the specificrequirements and costs to accommodate interconnecting the DG Facility to EWEB’s distributionsystem.Prior to operation, the DG and associated interconnection equipment shall be inspected andtested in accordance with procedures and requirements established by EWEB. EWEB shall notinspect or interconnect any equipment that has not already been approved by code complianceofficials. If, upon inspection and testing, the proposed system does not meet EWEB’srequirements, EWEB will not allow the equipment to be interconnected to EWEB’s distributionDG Interconnection Agreement_2009.doc 09/01/2009 Page 3 of 13

system until modifications are made to meet EWEB’s requirements. EWEB shall have the rightto have representatives present at the initial testing of Customer's protective apparatus.10. Access to PremisesEWEB (including its employees, agents and representatives) shall have the right to enterCustomer’s premises to: (a) inspect Customer’s DG facility, protective devices, and to read ortest instrumentation equipment that EWEB may install; (b) install, maintain or repair EWEBequipment; (c) disconnect the generating facility; (d) install instrumentation equipment for loadresearch purposes.11. Indemnity and LiabilityCustomer shall indemnify, hold harmless, and defend EWEB, its board, officers, employees andagents from any and all claims, demands, liabilities, suits, or actions for any resulting propertydamage, bodily injury, or death arising out of or which in the future may result, directly orindirectly from or in connection with performance of the Agreement or which may occur or besustained by EWEB or others on account of any claim or action brought against EWEB arisingout of or related to the operation of the customer’s DG facility and interconnection with EWEB,including but not limited to loss to the electrical system of the Customer caused by or arising outof an electrical disturbance. Submission of design plans and specifications to EWEB andinspections by EWEB shall in no way imply any responsibility on the part of EWEB for thedesign, installation, or operation of the Project. Customer shall indemnify, hold harmless anddefend EWEB, its board, officers, employees and agents from any and all claims, demands,liabilities, suits or actions for any failure of Customer, or Customer’s agents or contractors, tocomply with all federal, state or local laws, regulations and ordinances for the design, completionor operation of the DG Facility specified in this agreement.EWEB shall have no liability, ownership interest, control or responsibility for the DG Facility orits interconnection with EWEB’s electric system, regardless of what EWEB knows or shouldknow about the DG Facility or its interconnection.12. InsuranceCustomer of commercial facilities shall maintain, during the term of this Agreement commercialgeneral liability insurance with a combined single limit in an amount equivalent to the industrystandard for this type of insurance, but not less than $1,000,000. Customer shall provide EWEBwith a copy of said insurance policy if requested.Residential Customers operating a DG facility with rated capacity less than 10 kW are exemptfrom this requirement; however, Residential Customers are required to maintain homeowner’scoverage for the site where the DG facility is located with general liability coverage or a generalliability rider that adequately covers any and all potential claims relating to the DG Facility.Such insurance shall, by endorsement to the policy or policies, provide for thirty (30) calendardays written notice to EWEB prior to cancellation, termination, attention, or material change ofsuch insurance.DG Interconnection Agreement_2009.doc 09/01/2009 Page 4 of 13

All written notices to the Customer shall be directed to the address set forth in the Signaturessection of this Agreement.17. EWEB Customer Services Policies and ProceduresPolicies and procedures specific to EWEB billing, collection, tampering, and termination ofservices are applicable to this Agreement. These applicable policies and procedures are on fileand can be reviewed at the EWEB offices, or may be obtained electronically from the EWEBwebsite, www.eweb.org.18. AssignmentThe rights and obligations of the Parties to this Agreement may not be assigned by either Party,except upon the expressed written consent of the other Party, which consent shall not beunreasonably withheld or delayed. As a condition of such consent, any third party to whom anassignment is made will be required to demonstrate to reasonable satisfaction of the nonassigningParty that the third party is capable of fulfilling the assigning Party’s obligations underthis Agreement.19. Dispute ResolutionIf the Parties are unable to resolve a dispute with respect to this Agreement, either Party maysend a notice to the other requesting a meeting at which senior officers or officials of the Partieswill attempt to resolve the dispute. If the Parties are unable to resolve the dispute within ten (10)days after the meeting notice is received by the Party to whom it is directed, either Party maydemand that the matter be submitted to a single neutral arbitrator with significant experience inthe power industry. If the Parties are unable to agree upon an arbitrator within ten (10) days ofthe demand, the arbitrator shall be selected by the Presiding Judge of the Circuit Court of LaneCounty, Oregon, and the Party applying for the selection of the arbitrator shall request that theselection be made on an expedited basis. Within ten (10) days of the selection of the arbitrator,the Party demanding arbitration shall submit to the arbitrator a reasonably detailed description ofits position together with supporting material. Within a further ten (10) days, the other Partyshall respond by submitting to the arbitrator a reasonably detailed statement of its positiontogether with supporting material. Each Party shall deliver copies of its submissions to the otherParty and shall promptly provide any additional explanation or information requested by thearbitrator. The arbitrator shall be instructed to use all reasonable efforts to render a writtendecision setting forth its findings and conclusions within thirty (30) days of the date on which thearbitration proceedings are concluded. The arbitrator’s decision concerning the item or items indispute shall be final and binding on the Parties. Each Party shall bear the arbitrator’s expensesequally.DG Interconnection Agreement_2009.doc 09/01/2009 Page 6 of 13

20. SignaturesIn witness whereof, the Parties hereto have caused this to Agreement to be executed by their dulyauthorized representatives. This Agreement is effective as of the last date set forth below.Eugene Water & Electric Board (EWEB)By:SignatureDated:Print NameCustomerBy:SignatureDated:Print NameMailing Address:System Installation Address:Telephone Number:Tax Identification Number:DG Interconnection Agreement_2009.doc 09/01/2009 Page 7 of 13

. Disconnect Switch capable of being locked in a visibly open position by a standardEWEB padlock that will completely isolate the Customer's generating facility fromthe EWEB system. The Disconnect Switch blades, jaws and the air-gap betweenthem shall all be clearly visible when the switch is in the open position. It is notacceptable to have any of the visible open components obscured by the switch caseor an arc-shield, etc. Only switches specifically designed to provide a true visibleopen are acceptable.c. Disconnect Switch shall be installed in a place so as to provide easy and unrestrictedaccessibility to EWEB personnel on a 24-hour basis. It shall be installed within fivefeet of the meter.d. Disconnect switch shall have provisions for locking in closed position with standardEWEB double hasp. Customer shall provide a lock on one side of the hasp andEWEB will install an EWEB lock on the other side of the hasp which will alloweither the Customer or EWEB to remove one lock, remove the double hasp andopen the disconnect switch.e. EWEB shall have the right to lock open the Disconnect Switch without notice toCustomer when interconnected operation of the Customer’s generating facility withEWEB system could adversely affect EWEB’s system or endanger life or property,or upon termination of the interconnection agreement.f. The Disconnect Switch must be rated for the voltage and load and short circuitcurrent requirements of the generation facility, and must meet all applicable UL,NEMA, ANSI and IEEE standards.g. The switch enclosure shall be NEMA 250 Type 3R and shall beproperly grounded per the requirements of the National ElectricalCode (NEC).4. Customer’s overcurrent device at the service panel shall be marked to indicate circuit isa power source and is connected to EWEB’s distribution system.5. Customer generating equipment must deliver at the Point of Interconnection, 60 Hertz,either single or three-phase power at one standard voltage compatible with EWEB’sinterfacing facilities as specified by EWEB. Output shall be balanced between phases asequally as practical.6. CG facilities and power output control systems shall comply with NEC Articles 690 and705; Institute of Electrical and Electronics Engineers (IEEE) Standards 929, 519 and1547; Underwriters Laboratories (UL) Standard 1741; which identify minimumspecifications and functional standards for parallel operation with EWEB; in particularthe:a. Power output control system shall have anti-islanding capability and for inverterbasedgenerators, shall be certified as Utility Interactive per IEEE 929 and UL 1741requirements. These requirements provide for the automatic disconnection of CGfacilities from EWEB upon loss of EWEB source voltage and prevent CG reconnectionuntil EWEB source voltage has been safely restored.b. Power output control system shall automatically disconnect from EWEB source ifCustomer’s voltage fluctuates beyond plus or minus 10% (ten percent).DG Interconnection Agreement_2009.doc 09/01/2009 Page 10 of 13

Photovoltaic systems shall meet the requirements of Table 2 of IEEE 929,IEEERecommended Practice for Utility Interface of Photovoltaic (PV) Systems.c. Power output control system shall automatically disconnect from EWEB ifCustomer and EWEB’s frequency fluctuates plus or minus 1 cycle (Hertz).d. The power factor of the CG facility shall not be less that ninety-five percent (95%)lagging (based on peak KW and KVAR readings) as referenced from EWEB, butshall not be leading unless agreed to by EWEBe. The electrical output of Customer’s generating facility shall not contain harmoniccontent which may cause disturbances on or damage to EWEB’s electrical system,or other party’s systems, such as but not limited to computer, telephone,communication and other sensitive electronic or control systems. The harmonicoutput of the CG facility shall comply with the practices and requirements specifiedin the most current version of IEEE Std. 519 (IEEE Recommended Practices andRequirements for Harmonic Control in Electrical Power Systems), and shall in noinstance exceed 5% THD.f. If Customer utilizes the EWEB system to facilitate start-up of its generating facility,the voltage flicker level shall not exceed EWEB standards. Voltage flicker is causedby voltage variations from load fluctuations that can be visually detected asflickering of lighting systems. In general, any voltage flicker should not exceed thelimits defined by the Maximum Borderline of Irritation Curve identified in IEEEStd. 519.D. Protective Relay Requirements:1. The Customer shall be solely responsible for properly protecting and synchronizing theirCG facility with the EWEB system.2. Customer facility shall include a UL approved automatic interrupting device that is ratedto interrupt available short circuit current. The interrupting devices shall be tripped, as aminimum, by all protective devices identified and required herein.3. In addition to the required relays for overvoltage, undervoltage, overfrequency,underfrequency, and overcurrent, all CG facilities shall be consistent with the guidelinesset forth in IEEE Std. C37.102, IEEE Guide for AC Generator Protection.DG Interconnection Agreement_2009.doc 09/01/2009 Page 11 of 13

E. Metering Requirements1. Customer shall provide and install at no expense to EWEB and in accordance withEWEB Electric Utility Customer Services Policies and Procedures, meter sockets andmetering cabinets in a suitable location to be determined by EWEB Electric Distributionor Electric Meter Department. All new meter bases shall be grouped with, and installedwithin five feet of any existing meters.2. For Net Metered Generation, only one bi-directional electric meter is required. Thesame meter will be used to measure the power used by the Customer as well as anyexcess power delivered to EWEB.3. For Generation, a dedicated electric meter is required to measure the power delivered toEWEB, in addition to the meter(s) to measure the power used by the Customer.4. EWEB shall furnish, own, install and maintain all meters that register the sales of powerto, and the purchase or transfer of energy from Customer.F. Labeling Requirements1. All labels shall be laminated nameplates with engraved letters with wording as describedbelow, permanently attached to the front of the equipment enclosure in a clearly visiblelocation.2. The Disconnect Switch nameplate shall read “UTILITY DISCONNECT SWITCH FORGENERATOR MAY BE ENERGIZED FROM BOTH LINE AND LOAD”.3. The Meter Base and current transformer can (if applicable) nameplate(s) shall read“NET-METERED GENERATION MAY BE ENERGIZED FROM BOTH LINE ANDLOAD”, or “GENERATION ONLY MAY BE ENERGIZED FROM BOTH LINEAND LOAD ” as applicable.G. Testing Requirements1. Customer shall, at a minimum, have all specified interface equipment, shutdown andassociated protective devices tested and calibrated at the time of installation by qualifiedpersonnel and shall also perform functional trip testing of these relays and associatedgenerator or inverter breaker. Calibration shall include on-site bench testing of pickupand timing characteristics of the relays. Functional testing shall demonstrate that eachminimum protective relay trip function as required herein, upon a simulated out oftolerance input signal, will trip the generator breaker as designed, and shall also includea simulated loss of control power to demonstrate that the generator breaker will open.DG Interconnection Agreement_2009.doc 09/01/2009 Page 12 of 13

2. If requested, Customer shall provide EWEB with a copy of calibration and functionaltest results. Customer shall also notify EWEB at least five (5) working days in advancethat such tests are to be performed and allow EWEB personnel to witness such tests.Customer will not commence interconnected operation of its generating facility until theinstallation has been inspected by an authorized EWEB representative and final writtenapproval is received from EWEB to commence interconnected operation, whichapproval shall not be unreasonably withheld. Customer shall give EWEB at least five(5) working day’s prior to notice of when initial startup is to begin. EWEB shall havethe right to have a representative present during initial energizing and testing ofCustomer’s generating facility.H. SafetyAll safety and operating procedures for CG facilities shall be in compliance with theOccupational Safety and Health Administration (OSHA) Standard 29 CFR 1910.269, theNational Electrical Code (NEC), the National Electrical Safety Code (NESC), EWEB safe workpractices, and equipment manufacturer’s safety and operating manuals.DG Interconnection Agreement_2009.doc 09/01/2009 Page 13 of 13