Mich. Admin. Code R. 460.964 - Interconnection agreement

Rule 64.

(1) For level 1, 2, or 3 interconnection applications, where no construction of interconnection facilities or distribution upgrades is required, an electric utility shall transmit its standard level 1, 2, and 3 interconnection agreement, which may include modifications to address any special operating conditions, to an applicant within 3 business days of reaching this stage.

(2) For level 1, 2, or 3 interconnection applications, where construction of interconnection facilities or distribution upgrades is required, an electric utility shall provide its standard level 1, 2, and 3 interconnection agreement with modifications to address any special operating conditions, required construction activities, estimated construction milestone timing, and estimated cost to an applicant within 5 business days of reaching this stage. The applicant and electric utility shall mutually agree on the timing of construction milestones.

(3) For an applicant with level 1, 2, or 3 interconnection applications, the applicant shall sign and return the standard level 1, 2, and 3 interconnection agreement with payment, if applicable, within 20 business days of receiving the agreement.

(a) If the applicant did not sign and return the standard level 1, 2, and 3 interconnection agreement and payment, if applicable, within 20 business days, the electric utility shall notify the applicant of the missed deadline and grant an extension of 15 business days. If the electric utility did not receive the signed standard level 1, 2, and 3 interconnection agreement and any applicable payment during the 15-business-day extension, the electric utility may consider the interconnection application withdrawn subject to subdivision (b) of this subrule.

(b) If the applicant begins either the informal mediation pursuant to R 460.904, the formal mediation pursuant to R 460.906, or the complaint process pursuant to R 792.10439 to R 792.10446 within the 20 business days, the outcome of that process must establish a time frame for the applicant to return the signed interconnection agreement and any applicable payment.

(4) For level 1, 2, or 3 projects, the electric utility shall countersign and provide a completed copy of the standard level 1, 2, and 3 interconnection agreement within 10 business days of the applicant returning the signed standard level 1, 2, and 3 interconnection agreement and the interconnection application must proceed under R 460.966.

(5) For level 4 or 5 projects, the electric utility shall provide its level 4 and 5 interconnection agreement, which may include modifications to address any special operating conditions, within 15 business days of reaching this stage. When construction of interconnection facilities or distribution upgrades is necessary, the level 4 and 5 interconnection agreement must contain either estimated timelines for completion of activities and estimates of construction costs or a timetable when these requirements can be determined. The interconnection agreement must include a payment schedule that corresponds to the milestones established and must require the electric utility to refund any unspent and unobligated funds if the agreement is terminated.

(6) For an applicant with level 4 or 5 DERs, the applicant shall sign and return with payment, if applicable, a level 4 and 5 interconnection agreement within 30 business days.

(a) If the applicant does not sign and return the level 4 and 5 interconnection agreement with payment within 30 business days, an electric utility shall notify the applicant of the missed deadline and grant an extension of 15 business days. If the electric utility does not receive the signed level 4 and 5 interconnection agreement and payment, if applicable, during the 15-business-day extension, the electric utility may consider the interconnection application withdrawn, subject to subdivision (b) of this subrule.

(b) If the applicant begins either the informal mediation pursuant to R 460.904, formal mediation pursuant to R 460.906, or the complaint process pursuant to R 792.10439 to R 792.10446 within 30 business days, the outcome of that process must establish a time frame for the applicant to return the signed interconnection agreement and applicable payment. There is a rebuttable presumption in the complaint proceeding that the electric utility's standard construction, procurement, installation, design, and cost practices are lawful, reasonable, and prudent.

(i) For study track interconnection applications filed with an electric utility conducting individual studies, electrically coincident applications filed after the interconnection application must be placed on hold for not more than 60 business days. If either informal mediation pursuant to R 460.904, formal mediation pursuant to R 460.906, or the complaint process pursuant to R 792.10439 to R 792.10446 does not result in the applicant returning a signed interconnection agreement with any applicable payment within 60 business days and there are electrically coincident interconnection applications in progress behind this application, the electric utility may require the withdrawal of the interconnection application.

(7) For level 4 or 5 projects, an electric utility shall countersign and provide a completed copy of the level 4 and 5 interconnection agreement within 10 business days of the applicant returning a mutually agreed-upon and signed level 4 and 5 interconnection agreement and the interconnection application must proceed under R 460.966.

(8) An applicant shall pay the actual cost of the interconnection facilities and distribution upgrades. The cost to the applicant for interconnection facilities and distribution upgrades may not exceed 110% of the estimate without an itemized summary and explanation of cost increases being provided to the applicant. If the costs are expected to exceed 125% of the estimate, the electric utility shall provide further explanation to the applicant prior to the costs being incurred. If the applicant does not consent in writing to pay the additional costs within 20 business days after receiving further explanation from the electric utility, the electric utility shall initiate informal mediation pursuant to R 460.904 no later than 5 business days after the conclusion of the 20-business day applicant consent period. The applicant may dispute the expected costs pursuant to either informal mediation pursuant to R 460.904, formal mediation pursuant to R 460.906, or the complaint process pursuant to R 792.10439 to R 792.10446. If there is a dispute, the applicant shall make payment within 30 business days after final resolution of the dispute.

(9) A party's obligations under the interconnection agreement may be extended by agreement. If a party anticipates that it will be unable to meet a milestone for any reason other than an unforeseen event, the party shall do all of the following:

(a) Immediately notify the other party of the reason or reasons for not meeting the milestone.

(b) Propose the earliest alternate date when it can attain this and future milestones.

(c) Request amendments to the interconnection agreement, if needed to address the changed milestones.

(10) The party affected by the failure to meet a milestone shall not withhold agreement to any amendments proposed in subrule (9)(c) of this rule unless 1 of the following applies:

(a) The party affected will suffer significant uncompensated economic or operational harm from the amendment or amendments.

(b) The milestone under question has been previously delayed and the affected party has reason to believe that the delay in meeting the milestone is intentional or unwarranted notwithstanding the circumstances explained by the party proposing the amendment.

(11) If the party affected by the failure to meet a milestone disputes the proposed extension, the affected party may pursue either informal mediation pursuant to R 460.904, formal mediation pursuant to R 460.906, or the complaint process pursuant to R 792.10439 to R 792.10446.

(12) The electric utility shall provide the applicant with a final accounting report of any difference between costs charged to the applicant and previous payments to the electric utility for interconnection facilities or distribution upgrades. Both of the following apply to a final accounting:

(a) If the costs charged to the applicant exceed its previous aggregate payments, the electric utility shall bill the applicant for the amount due and the applicant shall make a payment to the electric utility within 20 business days of the final accounting report. The applicant may dispute the invoice pursuant to either informal mediation pursuant to R 460.904, formal mediation pursuant to R 460.906, or the complaint process pursuant to R 792.10439 to R 792.10446. If there is a dispute, the applicant shall make payment within 30 business days of final resolution of the dispute. Failure by the applicant to pay its costs is cause for disconnection of the applicant's DER.

(b) If the applicant's previous aggregate payments exceed its costs under the interconnection agreement, the electric utility shall refund to the applicant an amount equal to the difference within 20 business days of the final accounting report.

(13) The electric utility is responsible for specifying requirements in interconnection agreements to support independent system operator regulations or regional transmission operator regulations.

(14) The electric utility may propose to the commission that a signed interconnection agreement be modified to require compliance with changes to an independent system operator, a regional transmission operator, or the state's regulations. Unless the electric utility has the consent of the applicant or interconnection customer in writing, an electric utility shall not modify a signed interconnection agreement without commission approval.

Notes

Mich. Admin. Code R. 460.964

2023 MR 8, Eff. 4/25/2023