South Dakota Issues Proposed Rules for Small Generator Interconnection

SOUTH DAKOTA – On April 3, the South Dakota Public Utilities Commission issued proposed rules under the current ongoing interconnection proceeding. The proposed South Dakota Small Generation Interconnection Rules would apply to small generator facilities of 10 MW or less, interconnected to the distribution system of a public utility. These rules are also intended to “be used as the basis for the interconnection process and technical framework for facilities greater than 10 MW that may be subject to the commission’s interconnection jurisdiction.”

The proposed rules, similar to Illinois’ rules for small generator interconnections, specify four tiered applicability:

  • Tier 1: Inverter based facilities of 10 kW or less;
  • Tier 2: Facilities up to 2 MW not qualifying for Tier 1, connecting to either a radial distribution circuit or a spot network distribution circuit limited to serving one premise
  • Tier 3: Non-exporting facilities of 10 MW or less not connected to a transmission line
  • Tier 4: Facilities of 10 MW or less that do not qualify for tiers one through three.

Liability insurance requirements are waived for systems of 10 kW or less; however, all other systems must have the following as endorsements on existing policies: (1) The public utility as an additional insured; (2) A severability of interest clause or cross-liability clause; (3) A provision that the public utility may not by reason of its inclusion as an additional insured incur liability to the insurance carrier for the payment of premium for the insurance; and (4) A 30 calendar days’ written notice to the public utility prior to cancellation, termination, alteration, or material change of the insurance. Applicable customers may self-insure.

Application fees for each tier are specified as: (1) Tier 1: $50; (2) Tier 2: $50 plus $1 per kilowatt of rated generation output up to a maximum of $500; (3) Tier 3: $100 plus $2 per kilowatt of rated generation output up to a maximum of $1,000; (4) Tier 4: $100 plus $2 per kilowatt of rated generation output up to a maximum of $1,000.

If the interconnection request is for a facility that includes multiple small generator systems at a site for which the applicant seeks a single point of interconnection, the application shall be evaluated on the basis of the aggregate electric nameplate capacity of the multiple small generator facilities.

For further details, refer to Docket RM08-002.


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