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FERC Small Generator Interconnection Procedures (SGIP) and Agreement (SGIA)

Date Last Updated11/15/2012
Policy TypeInterconnection Standard
State/FederalU.S./Federal
Policy Administrator/Contact OfficeFederal Energy Regulatory Commission (FERC)
Policy Initiation Date8/26/2006
Policy SummaryFERC with SGIP and SGIA sets standard terms and conditions for public utilities to interconnect new sources of distributed generation. These requirements are developed based on requirements in FERC Orders 2006, 2006-A and 2006-B. Though the procedures and agreement do not directly reference CHP, they can affect CHP. More specifically, they apply to FERC-jurisdictional interconnections that interconnect at the transmission level. The FERC standards generally do not apply to distribution-level interconnection, which is regulated by state public utilities commissions. The SGIP contain technical procedures as well as standard contractual provisions. They provide three ways to evaluate an interconnection request:
  • Level 1 - 10 kW Inverter Process: applies to certified, inverter-based systems 10 kW or less. There is a $100 processing fee.
  • Level 2 - Fast Track Process: applies to certified systems 2 MW or less. There is a $500 processing fee.
  • Level 3 - Study Process: applies to systems greater than 2 MW but less than or equal to 20 MW. There is a $1,000 processing fee.
The procedures lay out specific timelines for utility responses, interconnection charges and standard study fees. The review processes for Levels 1 and 2 include technical screens. If the screens are not met, the application would go to the Level 3 review process. The procedures provide guidelines for dispute resolution and require liability insurance "sufficient to insure against all reasonably foreseeable direct liabilities given the size and nature of the generating equipment being interconnected, the interconnection itself, and the characteristics of the system to which the interconnection is made."

The SGIP require interconnection equipment to be certified according to IEEE Standards 1547 and UL 1741. The SGIP address interconnection to spot networks for inverter-based distribution generation. They do not address other interconnections to spot and area networks. The SGIP also do not cover any external disconnect switch requirements.

The SGIA was developed for all interconnection requests submitted under the SGIP and governs the terms and conditions under which the Interconnection Customer's Small Generating Facility will interconnect with, and operate in parallel with, the Transmission Provider's Transmission System. The SGIA is the agreement used for Levels 2 and 3. There is no standardized form for Level 1.
CHP Eligibility RequirementsThe SGIP apply to all distributed generation technologies including CHP.
Eligible Project Size (MW)Applies to distributed generation systems 20 MW or less.
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