Large Generator Interconnection Generator, Transmission, & Distribution Asset Responsibilities Effective Date: May 12, 2014 Revision History Date May 1, 2013 May 12, 2014 Description Initial document Revision to Figure 1b (Clarify Tie Breaker Switches are Network Upgrades Page 1 of 9
1.0 Purpose: The purpose of this document is to provide guidance for LG&E/KU on, how to determine responsibility, ownership, and construction expenses of assets identified with the interconnection of a Large Generator Interconnection? 2.0 Definitions: Distribution Upgrades shall mean the additions, modifications, and upgrades to the Transmission Owner's Distribution System at or beyond the Point of Interconnection to facilitate interconnection of the Generating Facility and render the transmission service necessary to effect Interconnection Customer's wholesale sale of electricity in interstate commerce. Distribution Upgrades do not include Interconnection Facilities. (**Note the TO (as LG&E/KU) does not own operate or maintain Distribution Systems. They are owned by the Distribution group and rolled into the Retail Rates, not the TO FERC formula Rates). Interconnection Customer's Interconnection Facilities: (Generator Owner Facilities) shall mean all facilities and equipment, as identified in Appendix A of the Standard LGIA, that are located between the Generating Facility and the Point of Change of Ownership, including any modification, addition, or upgrades to such facilities and equipment necessary to physically and electrically interconnect the Generating Facility to the Transmission Owner's Transmission System. Interconnection Customer's Interconnection Facilities are sole use facilities. Transmission Owner's Interconnection Facilities: (Interconnection Facilities) shall mean all facilities and equipment owned, controlled, or operated by the Transmission Owner from the Point of Change of Ownership to the Point of Interconnection as identified in Appendix A to the Standard LGIA or Interim LGIA, including any modifications, additions or upgrades to such facilities and equipment. Transmission Owner's Interconnection Facilities are sole use facilities and shall not include Distribution Upgrades, Stand Alone Network Upgrades or Network Upgrades. Network Upgrades shall mean the additions, modifications, and upgrades to the Transmission Owner's Transmission System required at or beyond the point at which the Interconnection Facilities connect to the Transmission Owner's Transmission System to accommodate the interconnection of the Large Generating Facility to the Transmission Owner's Transmission System. Page 2 of 9
3.0 LG&E/KU OATT: Under the FERC Approved Pro-Forma Open Access Transmission Tariff (OATT) specifically the Large Generator Interconnection Agreement (LGIA) there are four types of defined facilities: (Article 11 of the LGIA) (detailed description in Exhibit A). 1. Interconnection Customer Interconnection Facilities (Generation Owner Facilities) 2. Transmission Owner Interconnection Facilities (Interconnection Facilities) 3. Network Upgrades (Network Facilities) 4. Distribution Upgrades (Distribution Facilities) Article 11 of the LGIA specifies which party (Transmission or Generator Owner) has a construction obligation and who bears the expense of that obligation. Based on the requirements within the LGIA: 1. Generator Owner Facilities a. Generator Owner is responsible for building, owning and maintaining the assets b. Generator Owner bears the expense for these assets 2. Interconnection Facilities a. LG&E/KU Transmission is responsible for building, owning, and maintaining the assets b. LG&E/KU Transmission Assets ($0 Asset value and $0 O&M in FERC rates) c. Generator Owner bears the non-refundable expense for these assets (Generation contribution to Transmission) 3. Network Facilities a. LG&E/KU Transmission is responsible for building, owning, and maintaining the assets b. LG&E/KU Transmission FERC rate assets (The Transmission Owner continues to include the Network Upgrades in the rate base and earns a ROE). c. Generator Owner funds the initial expense for the Network Upgrades (Generation deposit only) unless LG&E/KU Transmission chooses to fund them. Any funds received from the Generator will be refunded to the Generator, plus interest, as the Generator takes transmission service, or repayment can be set up over a defined period (up to 20 years). 4. Distribution Facilities a. LG&E/KU Transmission does not own any Distribution Assets. b. Distribution Asset Costs identified would be reviewed and determined with the local distribution utility. In the preparation of design and cost estimated the following 2 interconnection designs may be considered 1. Breaker and Half (Figure 1a & 1b) 2. Direct Breaker Configuration (Figure 2a & 2b) 4.0 Good Faith Estimate Page 3 of 9
In preparing Good Faith Estimates for System Impact Studies (SIS) the following language may be utilized as template language in the SIS report. Methodology: Under the FERC Approved Pro-Forma Open Access Transmission Tariff (OATT) specifically the Large Generator Interconnection Agreement (LGIA) there are four types of defined facilities: (Article 11 of the LGIA) (detailed description in Exhibit A). 1. Interconnection Customer Interconnection Facilities (Generation Owner Facilities) 2. Transmission Owner Interconnection Facilities (Interconnection Facilities) 3. Network Upgrades (Network Facilities) 4. Distribution Upgrades (Distribution Facilities) Article 11 of the LGIA specifies which party (Transmission or Generator Owner) has a construction obligation and who bears the expense of that obligation. Based on the requirements within the LGIA: 1. Generator Owner Facilities: The Generator Owner is responsible for building, owning and maintaining the assets. Generator Owner bears the expense for these assets The 2. Interconnection Facilities: LG&E/KU Transmission is responsible for building, owning, and maintaining the assets. The Generator Owner bears the non-refundable expense for these assets (Generation contribution to Transmission). 3. Network Facilities: LG&E/KU Transmission is responsible for building, owning, and maintaining the assets. However, the Generator Owner funds the initial expense for the Network Facilities (Generation deposit only) unless LG&E/KU Transmission chooses to fund them. Any funds received from the Generator will be refunded to the Generator, plus interest, as the Generator takes transmission service, or repayment can be set up over a defined period (up to 20 years). The Terms of payment for the Network Facilities will be determined in the negotiation period (identified in the LG&E/KU OATT: Attachment M Section 11) of the LGIA. 4. Distribution Facilities: LG&E/KU Transmission does not own any Distribution Assets. So, Distribution Asset Costs identified would be reviewed and determined with the local distribution utility. Page 4 of 9
Based on the LG&E/KU OATT, the identified facilities LG&E/KU Transmission will build are the Interconnection Facilities and Network Facilities. The costs and facilities identified are: Interconnection Facilities: (Total Estimated Cost $XX,XXX k) [BREAKOUT] Network Facilities: (Total Estimated Cost $XX,XXX k) [BREAKOUT] Page 5 of 9
Figure 1a: Breaker & a Half Configuration: (Profile) Point of Interconnection Generator Breaker Tie Breaker Line Breaker Page 6 of 9
Figure 1b: Breaker & a Half Configuration: (One-Line) Point of Interconnection Line Breaker Tie Breaker Generator Breaker Page 7 of 9
Figure 2a: Direct Breaker Configuration: (Profile) Point of Interconnection Tie Breaker Page 8 of 9
Figure 2b: Direct Breaker Configuration: (One-Line) Point of Interconnection Page 9 of 9