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Comprehensive Report on Distributed Resources Interconnection Policies

This report presents a proposal addressing distributed resource interconnection issues within transmission organizations, focusing on standards, policies, and challenges. It offers insights, solutions, and recommendations for evolving regulatory landscapes.

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Comprehensive Report on Distributed Resources Interconnection Policies

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  1. Distributed Resources Interconnection Policies:A Report to EEI Members Presentation of ProposalEdison Electric Institute DG Task ForceMilwaukee, Wisconsin20 June 2001

  2. Introduction and agenda • Introduction to UMC and its affiliates • Key people and experience basis • Problem statement • Excerpts - DRAFT EEI Policy on Distributed Resources • Scope definition and limitations • Objective and approach • Transmission Organizations • Sorting and Filtering • Pro forma deliverable • Discussion

  3. Introduction to UMC and its affiliates UMC is the strategic and operational consulting affiliate of: • Bailey, Calhoun & Associates • Engineering and Design • Primary Power Corporation • Construction and Maintenance Management All three companies are active in the utility as well as large energy user marketplaces

  4. Introduction to UMC and its affiliates Key People • Principals • Mark Brozina • Robert J. Bailey • Barry A. Bailey, P.E. • Executive Consultants • John R. Redmon • Jack Urban • plus many others with extensive industry experience

  5. Introduction to UMC and its affiliates Experience basis • UMC Principals and Executive Consultants have over 100 years’ cumulative experience in: • Utility operations • End-user power distribution systems • Design, installation and operation of over 10,000 kW of dispersed generation • UMC: • is the interconnection consultant for the merchant affiliate of an EEI member utility • has supported interconnection and infrastructure for two other developers in PJM

  6. Problem statement • Interconnection standards vary from state to state, region to region and control area to control area • Standards are evolving at all levels, and are becoming an issue of concern for EEI members • Distributed resources have been identified as a potential alternative to T&D system reinforcements, as well as a capacity resource in constrained markets

  7. Problem statement Excerpts - DRAFT EEI Policy on Distributed Resources • Regulations should be neutral, neither discouraging nor encouraging D/R • State policies should • provide comparable, non-discriminatory treatment of all market participants including utility distribution companies • not set upper or lower limits on size of D/R when governing installation requirements • Policymakers should encourage interconnection standards that provide for • safety of public and utility employees • protection of current levels of reliability and cost • distribution facilities upgrade cost recovery

  8. Scope definition and limitation There are three major aspects to distributed resource interconnection: • Physical interconnection • Communication interface • Market interface In addition, there are three major issues associated with distributed resource interconnection: • Technical issues • Process issues • Form-of-contract issues The scope of UMC’s proposal to EEI is presently limited to the electrical interconnection issues at the transmission-organization level

  9. Objective and approach Objective • Provide a baseline report on distributed resources (D/R) policies of evolving transmission organizations (RTOs, ISOs and ITCs) in the U.S. Approach • Transmission Organizations • Sorting and filtering • Base Case • Restructured states only • Option • The entire “lower 48”

  10. Transmission organizations - Sorting WESTERN INTERCONNECTION EASTERN INTERCONNECTION TEXAS

  11. Transmission Organizations - Sorting Source: NERC

  12. Transmission Organizations - Filtering Restructured States Source: EIA

  13. Transmission Organizations • Identify markets that are under stress (e.g. California, New York, etc.) • Identify transmission organizations with D/R policies and/or pilot programs • Tabulate performance in terms of results • Identify transmission organizations with interconnection standards • Real costs to connect • Permitting issues • Protection requirements • IEEE P1547 standard • Summarize in report to EEI members

  14. Pro forma deliverable Report • Consider one possible presentation format • Introduction • Tabular summary • Trends and recent developments • Highlights for current period of report (e.g. 2Q01) • Individual write-ups by transmission organization This format is similar to that for the EEI Municipalization report

  15. Pro forma deliverable

  16. Transmission Organizations Scope limitation • UMC scope as proposed does not include: • Market interfaces • Communications interfaces • Process standardization • Form of contract standardization As part of today’s discussion, UMC’s scope can be expanded to include any of the above

  17. Deliverables and Discussion • Deliverables • Report in format similar to EEI Municipalization Report • Discussion • Is the scope adequate? • Is the IEEE 1547 standard appropriate as a reference? • Should there be periodic updates, and how often? • Other questions and concerns

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