Northern Lights, Inc.

Member Service Policy # 106

SUBJECT:                           Interconnection Standard for Small Power Producers
Date Approved:                October 29, 2001

OBJECTIVE:
 

A.        To permit any member to operate generating equipment of 25 kVa or smaller in parallel with Northern Lights’ electric system as long as there are no adverse affects to the operation of NLI’s electrical system or to the safety of the general public or NLI employees.

B.        To ensure that the NLI membership will not subsidize any member’s generating system (e.g., through the rates paid for the generation, the cost of the equipment and labor required to interconnect the generating system with NLI’s electrical system, or the cost of metering the generating system).

POLICY:      It shall be the policy of the Cooperative:
 

A.                That Northern Lights Inc. shall purchase energy delivered to NLI’s system from member-owned generation that meets NLI’s requirements for interconnection.  All energy delivered to NLI’s system shall be metered for periods that correspond to NLI’s monthly billing periods.  After each NLI billing period, an amount equal to the quantity of energy delivered to NLI’s system measured in kilowatt-hours multiplied by NLI’s avoided cost per kilowatt hour shall be credited on the member’s next billing from NLI.  Credit balances shall be paid to the member by NLI yearly.  The member is responsible for paying NLI’s billings each month.

B.                That the energy supplied to NLI will be purchased by NLI at avoided cost.  The avoided cost shall be defined as a weighted average of the monthly BPA PF rates including any cost recovery additions that BPA imposes.  The average will be weighted between heavy load hours, 60 percent (0.06) and low load hours 40 percent (0.04).
 

C.                That for the safety of NLI personnel and the general public, no generation will be paralleled with NLI’s electric system without prior knowledge and approval of NLI.  A parallel system is defined as one in which the member’s generation can be connected to a bus common with NLI’s electrical system.  With parallel operation, the parallel generator

will be considered part of NLI’s electrical system and must be considered in the electrical protection of NLI’s electrical system.

D.        That a member shall notify NLI of their desire to install generation.  The notification shall include a listing of the electrical parameters associated with the generator power conditioning equipment, a description of the protective functions of the facility, including hardware, a range of the protective device settings, and the maximum power rating and expected kWH production from the generator.  To help NLI prepare load curves, any information on the expected use of the generator and patterns of seasonal availability also shall be provided.

            E.        That NLI will supply a cost estimate of the required modifications or additions to the distribution system that are necessary to interconnect the member-owned generation.  The member will pay this estimated cost to NLI before the interconnection work is started.  When the final costs of the project are received, NLI will compare the actual cost to the estimate and either refund money collected over the cost of the project or bill the member for any costs over the estimate.
 

            F.        That the member will provide a generation system that is self-protected from normal, abnormal, and system emergency conditions, and that will have a disconnect switch, accessible to and able to be padlocked by NLI on the generator side of the meter.  The member shall carry adequate liability insurance to protect against damage to other members due to operation of the generation equipment.  NLI will be absolved from any liability for damages to the member’s generation facility.

            G.        That the member may be required to install a phone line to the meter point for the purpose of remote metering data acquisition either when the generation is connected to NLI’s system, or at a future date when this method of collecting metering data is required.  The cost of the communication equipment and phone line will be the responsibility of the member.
 

            H.        That NLI shall not be responsible for loss of revenues or any costs incurred because NLI’s system is not able to take delivery of the generation.

            I.         That NLI reserves the right to isolate any existing generation or to refuse to interconnect new generation when it is in the best interest of the Cooperative to do so.
 

            J.         That NLI shall comply with Federal and State law relative to the interconnection of generation projects larger than the 25 kW class.

RESPONSIBILITY:

            A.        Board of Directors

                        1.         To review this policy.

B.                General Manager

                        1.         Develop adequate Administrative Bulletins to carry out the Interconnection Standard for Small Power Producers Policy.

This policy supersedes any existing policy that may be in conflict with the provisions of this policy.

Adoption & Revision History:

Adopted by Board:           October 29, 2001
Revised:                                 May 22, 2006