Florida PSC Approves Changes to TECO Interconnection Agreements

On July 7, 2010, the Florida PSC issued an order approving changes to Tampa Electric Company’s (TECO) standard interconnection agreements for non-export parallel generators and renewable generators.

As provided under TECO’s previously approved tariff for non-parallel operator agreements, customers were only required to sign an interconnection agreement if their backup generator would be operating in parallel with TECO’s system. The standard interconnection agreements for Tier 1, Tier 2, and Tier 3 customer-owned renewable generation are intended to provide customers a simplified process to expedite the interconnection of their renewable generation in order to take advantage of net metering. Standard Interconnection Agreements are defined as Tier 1 generators rated at 10 kW or less; Tier 2 generators rated greater than 10kW, and less than or equal to 100kW; or Tier 3 generators rated greater than 100kWand less than or equal to 2000kW.

The recently approved revisions to TECO’s tariffs will clarify the indemnity portion of the agreement by adding “claims” to its indemnification of “liability, loss, damage, cost, or expenses.” TECO has added “claims” to the list for both the customer’s and Company’s indemnity obligation to make clear that the indemnification attaches at the point of a claim. To date, TECO has not filed a claim, nor has a claim been filed against the Company. Also, TECO proposes to include in the indemnity portions of each standard interconnection agreement language that would indemnify subsidiaries, affiliates, employees, officers and directors of both the customer and the Company. This proposed revision will provide an additional level of flexibility and protection to both the customer and the Company.

TECO also proposes to allow customers with non-export parallel operator and Tier 2 and Tier 3 customer-owned renewable generation standard interconnection agreements to self-insure equipment and liability, upon approval by the Company. According to information provided by TECO, customers must provide proof of sufficient capital to insure any loss, liability, damage, claims or expenses while operating their power generating equipment.

The proposed tariff amendments provide an additional degree of flexibility allowing customers to self-insure, and they add fairness to the indemnity portion of the agreement. TECO currently has 49 non-parallel operator facilities connected for 5 different customers.

Source:  Florida PSC Order 10-0435-TRF-EQ


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