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

Date Last Updated8/12/2014
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. The standards were most recently revised in November 2013 under Order No. 792. Original SGIP and SGIA requirements were 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. The SGIP provides 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 with a capacity less than 5 MW. There is a $500 processing fee. The following fast track eligibility criteria applies for inverter-based systems:
    • If line voltage is less than 5 kV, systems up to 500 kW are eligible for fast track processing
    • If line voltage is between 5 kV and 15 kV, systems up to 2 MW are eligible for fast track processing, and systems up to 3 MW that are on a mainline and within 2.5 miles from a substation are eligible for fast track processing
    • If line voltage is between 15 kV and 30 kV, systems up to 3 MW are eligible for fast track processing, and systems up to 4 MW that are on a mainline and within 2.5 miles from a substation are eligible for fast track processing
    • If line voltage is between 30 kV and 69 kV, systems up to 4 MW are eligible for fast track processing, and systems up to 5 MW that are on a mainline and within 2.5 miles from a substation are eligible for fast track processing
    • Level 3 - Study Process: applies to systems greater than 2 MW but less than or equal to 20 MW. There is a $1,000 deposit, which can be used towards the cost of the required feasibility study. FERC's 2013 revisions to the SGIP also now allows for interconnection customers to obtain a pre-application report, at a cost of $300, on system conditions at possible interconnection points - this is meant to help interconnection customers make more informed siting decisions.
    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. Revisions made in the 2013 rules altered the procedures governing customer options meetings and supplemental review under the Fast Track process. If a customer fails any of the Fast Track technical screens and elects to attend a customer options meeting, the transmission provider must offer certain additional options that make it easier for the customer to move forward with interconnection. The supplemental review process has been updated so that it is now similar to California's process and is expected to enhance transparency and consistency. 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.
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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