Interconnected Generation Preliminary Engineering Work Related to Fees

Level 1 Inverter Based Less than 10 kVA NRTL Certified to UL 1741 Net Metering

First Energy’s Experience on 689 Applications – New Jersey Administrative / Processing 3.17 Hr. Policy / Technical Support0.45 Hr. Engineering Review0.50 Hr. Witness Test1.50 Hr. Total5.62 Hr. Note: First Energy also had meter change-out time at 1.89 Hr. that would not be applicable to MD Net Metering Customers.

Level 1 Application Costs 5.62 $60 per Hr. $ $70 per Hr.$ $80 per Hr.$450

Level 2 Generation Less than 2,000 kW Interconnected to a radial distribution circuit Lab Certified or constructed to PJM Small Generator requirements. No Utility Upgrades

Distribution Fast Feasibility Study (Screening) Location on the Circuit Circuit Substation Interface Transformer Customer/Applicant Load –Min / Max –Metering Circuit Loading –kW, rkVA - Min/Max –Summer/WInter Line Section Loading –kW, rkVA - Min/Max –Summer/WInter Voltage Regulation Scheme/Equipment –LTCs –Regulators –Capacitors Conductor Types –Overhead –Underground Overcurrent Protection Scheme/Equipment –Fault Current at Location Outage Restoration Plan –Sectionalizing –Number of Customers

Level 2 Proposed Administrative / Processing 3.17 Hr. Policy / Technical Support4.00 Hr. Engineering Review Hr. Witness Test Hr. Meter Change Out*2.00 Hr. Total Hr. * Loads larger than Net Metering.

Level 2 Application Costs $60 per Hr. $2, $70 per Hr.$2, $80 per Hr.$3,294

Level 3 Generation Less than 10,000 kW Interconnected to a radial distribution circuit Reverse Power Relays. No Shared Transformers No New Facilities Highly unusual on AP’s System (Rare) Application Typically Level 2 or 4.

Level 4 Generation Less than 10,000 kW Not Level 1, 2, or 3 Common on AP’s System (Typical)

Meetings and Studies Scoping Meeting(s) / Information Exchange Feasibility Study Engineering Materials / Information Exchange Generator Impact Study (Safety, Reliability, Operations) Engineering Review / Custom Design / Issue Mitigation Price Facilities Study

Feasibility Study Location on the Circuit Circuit Substation Interface Transformer Customer/Applicant Load –Min / Max –Metering Circuit Loading –kW, rkVA - Min/Max –Summer/WInter Line Section Loading –kW, rkVA - Min/Max –Summer/WInter Voltage Regulation Scheme/Equipment –LTCs –Regulators –Capacitors Conductor Types –Overhead –Underground Overcurrent Protection Scheme/Equipment –Fault Current at Location Outage Restoration Plan –Sectionalizing –Number of Customers

Impact Study Base Case –Without Proposed Generation –Min Load / Max Load –Summer / Winter Proposed Case –With Proposed Generation –Min Load / Max Load –Min / Max rkVA –Summer / WInter Determine Impact on Distribution Circuit –Safety / Potential for Equipment Damage –Loading / Equip Sizing –Cold Load Pick up –Voltage Regulation –Transient Voltage (flicker) (harmonics) –Fault Current/ Overcurrent Protection/Coordination –Outage Restoration / Operation –Impacts on other customers

Level 4 Proposed Administrative / Processing 3.17 Hr. Mtgs. / Technical Exch Hr. Engineering Review # Hr. Total Hr. # Feasibility Study and Impact Study

Level 4 Application Costs $70 per Hr.$7, $80 per Hr.$8, per Hr. $10,717 Note: PJM Charges $10,000 for a Feasibility Study

Facilities Study Preliminary Engineering to Construct Interconnection Facilities Costs for engineering, equipment, procurement and construction Costs for system upgrades. Equipment Lists and Configuration Estimate of Construction Time Estimate of Right-of- way acquisition Operational Limitations/ Requirements