NORTH CAROLINA – NCUC Adopts New State Interconnection Rules

On June 9, 2008, the North Carolina Utilities Commission issued a final order which adopts a modified version of the FERC small generator interconnection standard. (Docket E-100, Sub 101, see order dated 6/9/08, Appendix A.) The state’s investor-owned utilities are required to file tariffs to this effect by July 9, 2008. Key points: applies to generators of any capacity which connect to either the investor-owned utility distribution or transmission systems; fast track application process for generators no larger than 2 MW; timely, non-discriminatory processing of all applications, generally on a first-come-first-serve basis; reasonable application fees and insurance requirements, with self-insurance permitted in certain cases; no external disconnect switch is required; and, while interconnection agreements are not transferrable to new owners, re-application fees are nominal. Examples of the standardized interconnection application forms and agreements are also exhibited in Appendix A of this order.

Also on June 9, 2008, the NCUC issued an order which establishes a procedural schedule for possible changes to the net metering tariffs of the state’s investor-owned utilities (Docket E-100, Sub 83.) The NCUC will consider whether or not to raise the allowable net metering capacity for individual generators to 1 MW, from the current limit of 25 kW for residential and 100 kW for non-residential systems. The NCUC will also decide whether or not to increase, or eliminate, each utility’s allowable aggregated amount of net metering, which is currently set at 0.2 percent of each utility’s prior year peak load. The NCUC will accept commentary in this docket until August 29, 2008 and has provided several questions it would like the commentators to consider.

The investigation into the IC/NM tariffs is in compliance with legislation (S.B. 3) enacted in August 2007.

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