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Distributed Resources in Wisconsin
Collaborative Group
Uniform Interconnection Rules Now in Effect in Wisconsin!!
Wisconsin Administrative Code Chapter PSC 119
RULES FOR INTERCONNECTING DISTRIBUTED GENERATION FACILITIES took effect on on February 1, 2004.
on this page . . . . . .
- Wisconsin Interconnections Guidelines & Overview
- Advisory Group
- Rule-making/ Draft Rules
- Guidelines
- DG Categories
- 20 kW Dividing Line & Net Energy Billing Regulation
- Processing Response Time & Other Requirements
- Timeline for Adoption by the Wisconsin Legislature
The Interconnection Reform Project . . . . . . . . . .
Wisconsin Distributed Generation Interconnection Guidelines
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ADVISORY GROUP ACTIVITIES
Rule-making - - - - -
A broad-based Advisory Committee created by the Public Service Commission (PSC) is putting the final touches on new rules that will establish uniform standards for the interconnection of small, independently owned generating units that will feed power into the electric distribution system. Once adopted, these rules will apply to all public utilities, and to all customer-owned distributed generators, defined as electricity-producing facilities up to 15 MW in size, operating in parallel with the utility.
Composed of utility distribution engineers, renewable system installers, technical experts and state agency officials, the PSC’s Interconnection Advisory Committee is very close to reaching consensus on a rules package, which will be forwarded to the Commission for review in late July or early August. While differences of opinion remain at the detail level, participants now appear to be in agreement on all of the major issues addressed in this docket, including insurance requirements, supervision of installations, disconnect switching and equipment certification.
Guidelines - - - - -
In addition to crafting rules that will apply to utilities, the Committee is finalizing a guidelines document designed for customers interesting in owning a grid-intertied distributed generating (DG) system. With this document a prospective customer-generator will have a clear idea of the technical and procedural requirements involved in interconnecting generating facilities to the grid. The guidelines document contains a standard interconnection agreement which, under the new rules, must be signed by the applicant and the utility before parallel operation can commence.
DG Categories - - - - -
Under the new rules, there will be four categories of DG facilities, differentiated by the installation’s nameplate capacity.
Category 1
20 kW or less
Category 2
Greater than 20 kW to 200 kW
Category 3
Greater than 200 kW to 1 MW
Category 4
Greater than 1 MW to 15 MW
Generally speaking, the technical and financial requirements become more stringent as installation size increases. Applicants for Category 1 installations, for example, need not pay an application fee or an interconnection study fee, whereas Category 4 applicants can expect to pay an application fee of $1,000 as well as absorb the cost of an interconnection study if one is needed. The rules also set forth a more streamlined application procedure for smaller-scale installations.
20 kW Dividing Line & Net Energy Billing Regulation
The 20 kW dividing line between Category 1 and Category 2 installations corresponds with the maximum capacity allowable under the state’s net energy billing regulation. While installations that provide power to the grid under a net energy billing arrangement are not considered to be commercial ventures, installations larger than the 20 kW automatically are. The new rules require commercial liability insurance coverage for DG systems larger than 20 kW, starting at $1 million (per occurrence) for Category 2 installations, while Category 1 applicants must maintain a minimum of $300,000 in liability insurance, which is typically available from a homeowner’s policy.
Processing Response Time & Other Requirements
Under the application procedures set forth in the new rule, utilities must respond to inquiries and conduct engineering reviews within a specified amount of time that vary according to installation size. All applicants are expected to furnish a site plan that shows the location of the disconnect switch and a one-line schematic diagram as part of their application to interconnect.
Timeline for Adoption by the Wisconsin Legislature
The interconnection rulemaking, which commenced last August, grew out of a stakeholder effort that RENEW launched in early 2001. Operating on a $50,000 grant from the Chicago-based Joyce Foundation, RENEW assembled a collaborative body that closely resembles the PSC’s Interconnection Advisory Committee, which met regularly to discuss ways of removing or reducing barriers to interconnection that customer-generators routinely experience. Much of the technical and legal research, and drafting of the guidelines occurred in this initial phase, before the Commission was directed last summer to convene a docket for the purpose of establishing “interconnection rules that are uniform across the state and promote distributed generation.”
WISCONSIN LEGISLATIVE ACTION UPDATES
On May 18, 2001,
the Joint Finance Committee of the Wisconsin Legislature voted unanimously to include some DR provisions in the state budget.
The motion, introduced by Senate co-chair Brian Burke on behalf of Rep. Dan Schooff of Beloit, requires the Public Service Commission to promulgate rules regarding interconnection standards, safety and reliability issues, tariffs, net metering, real time pricing, fees, etc. It also requires the PSC to complete draft rules within six months of the effective date of the budget. Normally, the budget is completed by July 4. However, the last two budgets have stretched into October.
Background reading . . . . . . . . . . . . . . . . . . .
Distributed Resources (DR) . . . . . . . . . .
include distributed generation, energy storage and other power quality devices, conservation and demand-side management.
The Interconnection Reform Project . . . . . . . . . .
The interconnection reform project, which commenced last August, grew out of a stakeholder effort that RENEW launched in early 2001. A collaborative group, comprising a broad range of interests,
Operating on a $50,000 grant from the Chicago-based Joyce Foundation, RENEW assembled a collaborative body that closely resembles the PSC's Interconnection Advisory Committee, which met regularly to discuss ways of removing or reducing barriers to interconnection that customer-generators routinely experience.
The collaborative's intial purpose was to recommend changes to Wisconsin's interconnection standards for small, customer-sited distributed generating units. That process quickly led to consideration of standards for interconnection of distributed generation up to 15 MW in size.
Much of the technical and legal research, and drafting of the guidelines occurred in this initial phase, before the Commission was directed last summer to convene a docket for the purpose of establishing "interconnection rules that are uniform across the state and promote distributed generation."
The RENEW Wisconsin Interconnection Standards Reform Project,
Last revised in 1982, existing standards are antiquated and need to be updated to reflect widespread improvements in the engineering of small, parallel generators. Recommended revisions will be forwarded to the Public Service Commission for adoption.
The PSC Report . . . . . . . . . . . . . . . . . . . . . . . . . .
While RENEW's Interconnection Standards Reform Project took shape, the following report was issued in response to a directive from the Wisconsin Legislature:
PUBLIC SERVICE COMMISSION OF WISCONSIN
 Report to the Legislature on the Development of Distributed Electric Generation in the State of Wisconsin
(05-EI-122, December 2000)
Executive Summary
In October 1999, the Legislature passed Wisconsin Act 9, which included a provision (Wis. Stat. § 196.025(4)) requiring the Public Service Commission (PSC or Commission) to "study the establishment of a program for providing incentives for the development of high-efficiency, small-scale electric generating facilities...." The legislative interest in what is generally referred to as Distributed Generation (DG) reflects a growing interest in decentralized electrical generation on the part electric consumers, utilities, and independent power producers. The United States Department of Energy (DOE) forecasts that DG could provide as much as 20 percent of all new US power generation capacity additions by 2010.
The small-scale, high-efficiency distributed generation technologies studied for this report include photovoltaics (solar), wind power, fuel cells, microturbines, internal combustion powered generators, and combined heat and power (CHP). The report and its findings and recommendations are based on a survey of stakeholders, comments from other states, extensive literature research, seminars, and input from the State of Wisconsin's Departments of Administration (DOA), Natural Resources (DNR), and Revenue (DOR).
The renewable energy technologies of wind and photovoltaics are considered high efficiency by definition. The study finds, for fossil fuel technologies, that it is reasonable to define "high efficiency" as a combined heat and power efficiency greater than 50 percent and that "smallscale" refers to a generator that has an average annual capacity of 1 megawatt (MW) or less.
The study compares air emissions for different technologies. It identifies a concern with the cumulative effects of numerous diesel or gas-powered distributed generators that individually would be exempt from the air permit requirements of the federal Clean Air Act (CAA).
Disincentives may exist for the growth of DG in Wisconsin in the form of complex rules and practices imposed on small, non-utility owned DG. Establishment of a stakeholder collaborative group to develop a set of streamlined rules and contract provisions would provide an incentive for properly sited, small-scale DG. The report further recommends that a statewide interconnection standard be created consistent with national standards developed by the Institute of Electrical and Electronics Engineers (IEEE), Underwriters Laboratories (UL), and the National Fire Protection Association (NFPA).
Financial incentives examined in the report include expansion of the net energy-billing tariffs; buy-back rates that are based on the environmental benefits, and a production tax credit for technologies with reduced environmental impacts. A recommendation is also made that state agencies provide assistance to local units of government in siting of small-scale, high-efficiency distributed generation.
WISCONSIN LEGISLATIVE ACTION
On May 18, 2001,
the Joint Finance Committee of the Wisconsin Legislature voted unanimously to include some DR provisions in the state budget.
The motion, introduced by Senate co-chair Brian Burke on behalf of Rep. Dan Schooff of Beloit, requires the Public Service Commission to promulgate rules regarding interconnection standards, safety and reliability issues, tariffs, net metering, real time pricing, fees, etc. It also requires the PSC to complete draft rules within six months of the effective date of the budget. Normally, the budget is completed by July 4. However, the last two budgets have stretched into October.
Interconnection Standards
U.S. Government sites
State sites
Organization sites
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