2004 NJ Clean Energy Symposium Rowan University Interconnection with Conectiv Power Delivery Russ Ehrlich

Welcome Thank you for your attendance today What we want to achieve in 30 minutes or less…. –Who we are, what we do, when, where and why? –Existing available tariff options –Interconnection Process –Overview of technical requirements for interconnection Thank you for your attendance today What we want to achieve in 30 minutes or less…. –Who we are, what we do, when, where and why? –Existing available tariff options –Interconnection Process –Overview of technical requirements for interconnection

Why is there a need for DG? If utilities can supply power to customers why would customers want the option to run local generation? –Economics –Environment –Power Quality –Reliability If utilities can supply power to customers why would customers want the option to run local generation? –Economics –Environment –Power Quality –Reliability

CPD NJ Tariff Options RIDER NEM Net Energy Metering AVAILABILITY This Rider is available to any Customer served under Company Rate Schedules RS, MGS- Secondary, and MGSPrimary who owns and operates an electric generation facility that: –1. Has a maximum capacity of 100 kilowatts, provided that the generation facility is sized no greater than the current peak electric needs of the customer's facility; and –2. Uses a wind or solar photovoltaic system; and –3. Is located on the Customer’s premises; and –4. Is interconnected and operated in parallel with the Company’s transmission and/or distribution facilities; –5. Is intended primarily to offset all or part of the Customer’s own electricity requirements. –6. Is not a Qualifying Facility (QF) served under Rate Schedule SPP, Small Power Purchase RIDER NEM Net Energy Metering AVAILABILITY This Rider is available to any Customer served under Company Rate Schedules RS, MGS- Secondary, and MGSPrimary who owns and operates an electric generation facility that: –1. Has a maximum capacity of 100 kilowatts, provided that the generation facility is sized no greater than the current peak electric needs of the customer's facility; and –2. Uses a wind or solar photovoltaic system; and –3. Is located on the Customer’s premises; and –4. Is interconnected and operated in parallel with the Company’s transmission and/or distribution facilities; –5. Is intended primarily to offset all or part of the Customer’s own electricity requirements. –6. Is not a Qualifying Facility (QF) served under Rate Schedule SPP, Small Power Purchase

Rider NEM CONNECTION TO THE COMPANY’S SYSTEM Any Customer who elects this Rider must notify the Company, via submittal of a Conectiv Power Delivery New Jersey Interconnection Application Form, at least 30 days prior to activating the electric generation facility. The electric generation facility shall not be connected to the Company’s system unless it meets all applicable safety and performance standards established by the National Electric Code, The Institute of Electrical and Electronics Engineers (IEEE), Underwriters Laboratories, and as currently detailed in the Technical Considerations Covering Parallel Operations of Customer Owned Generation of Less than One (1) Megawatt and Interconnected with the Conectiv Power Delivery System in the State of New Jersey, dated July 11, 2001, and the applicable codes of the local public authorities. Special attention should be given to IEEE Standard Recommended Practice for Utility Interface of Photovoltaic Systems. The Customer must obtain, at the Customer’s expense, all necessary inspections and approvals required by the local public authorities before the electric generation facility is connected to the Company’s electric system. CONNECTION TO THE COMPANY’S SYSTEM Any Customer who elects this Rider must notify the Company, via submittal of a Conectiv Power Delivery New Jersey Interconnection Application Form, at least 30 days prior to activating the electric generation facility. The electric generation facility shall not be connected to the Company’s system unless it meets all applicable safety and performance standards established by the National Electric Code, The Institute of Electrical and Electronics Engineers (IEEE), Underwriters Laboratories, and as currently detailed in the Technical Considerations Covering Parallel Operations of Customer Owned Generation of Less than One (1) Megawatt and Interconnected with the Conectiv Power Delivery System in the State of New Jersey, dated July 11, 2001, and the applicable codes of the local public authorities. Special attention should be given to IEEE Standard Recommended Practice for Utility Interface of Photovoltaic Systems. The Customer must obtain, at the Customer’s expense, all necessary inspections and approvals required by the local public authorities before the electric generation facility is connected to the Company’s electric system.

Rider NEM INTERCONNECTION AND PARALLEL OPERATION Interconnection with the Company’s system requires the installation of protective equipment which provides safety for personnel, affords adequate protection against damage to the Company’s system or to the Customer’s property, and prevents any interference with the Company’s supply of service to other Customers. Such protective equipment shall be installed, owned and maintained by the Customer at the Customer’s expense. The Customer’s equipment must be installed and configured so that parallel operation must cease immediately and automatically during system outages or loss of the Company’s primary electric source. The Customer must also cease parallel operation upon notification by the Company of a system emergency, abnormal condition, or in cases where such operation is determined to be unsafe, interferes with the supply of service to other Customers, or interferes with the Company’s system maintenance or operation. Generation systems and equipment that comply with the standards established in the previous Section of this Rider shall be deemed by the Company to have generally complied with the requirements of this Section INTERCONNECTION AND PARALLEL OPERATION Interconnection with the Company’s system requires the installation of protective equipment which provides safety for personnel, affords adequate protection against damage to the Company’s system or to the Customer’s property, and prevents any interference with the Company’s supply of service to other Customers. Such protective equipment shall be installed, owned and maintained by the Customer at the Customer’s expense. The Customer’s equipment must be installed and configured so that parallel operation must cease immediately and automatically during system outages or loss of the Company’s primary electric source. The Customer must also cease parallel operation upon notification by the Company of a system emergency, abnormal condition, or in cases where such operation is determined to be unsafe, interferes with the supply of service to other Customers, or interferes with the Company’s system maintenance or operation. Generation systems and equipment that comply with the standards established in the previous Section of this Rider shall be deemed by the Company to have generally complied with the requirements of this Section

Rate Schedule “SPP” Small Power Purchase –Availability Available to a "Qualifying Facility" (QF) as defined in Section 210 of the Public Utility Regulatory Policies Act of 1978 who also receives service under regular Company Rate Schedules RS, RS TOU-D, RS TOUE, MGS, AGS, or TS. The generation capacity of such facility must be less than 1000 kW. Qualifying facilities with capacity greater than 1000 kW must negotiate customer specific contracts. These facilities are entitled to a contract at full avoided energy costs and, if eligible, capacity costs. Customer specific contracts are subject to approval by the New Jersey Board of Public Utilities. Small Power Purchase –Availability Available to a "Qualifying Facility" (QF) as defined in Section 210 of the Public Utility Regulatory Policies Act of 1978 who also receives service under regular Company Rate Schedules RS, RS TOU-D, RS TOUE, MGS, AGS, or TS. The generation capacity of such facility must be less than 1000 kW. Qualifying facilities with capacity greater than 1000 kW must negotiate customer specific contracts. These facilities are entitled to a contract at full avoided energy costs and, if eligible, capacity costs. Customer specific contracts are subject to approval by the New Jersey Board of Public Utilities.

Rate Schedule “SPP” SPECIAL PROVISIONS 1. The customer must pay all interconnection charges before the Company will purchase electric power. 2. A customer's installation must conform to Company specifications for Qualifying Facility interconnection as outlined in the Company's Technical Guidelines for Cogeneration and Small Power Producers. 3. Qualifying Facilities with 10 kW or less generating capacity must sign an Electric Interconnection/Small Power Purchase Agreement. 4. Purchases from a QF will receive a capacity credit when the capacity exceeds 100 kilowatts and that capacity meets certain reliability criteria. The Company will make capacity payments to the QF to the extent that the capacity of the QF reduces any capacity deficiency payments by the Company to PJM or increases any capacity payments to the Company from PJM. Capacity credits, if applicable, will be based on the average on-peak capacity in any billing month, such capacity to be defined as the on- peak kilowatt-hours divided by the on-peak hours in that month. The seller may be eligible for an additional credit where the presence of the QF allows the deferral of local transmission or distribution capacity cost. 5. The Service Charge will be waived for QF's with 10 kW or less generating capacity. 6. Due to simplified metering, QF's with 10 kW or less generating capacity will be credited based on the average non-load weighted PJM billing rate for the month the energy is received. SPECIAL PROVISIONS 1. The customer must pay all interconnection charges before the Company will purchase electric power. 2. A customer's installation must conform to Company specifications for Qualifying Facility interconnection as outlined in the Company's Technical Guidelines for Cogeneration and Small Power Producers. 3. Qualifying Facilities with 10 kW or less generating capacity must sign an Electric Interconnection/Small Power Purchase Agreement. 4. Purchases from a QF will receive a capacity credit when the capacity exceeds 100 kilowatts and that capacity meets certain reliability criteria. The Company will make capacity payments to the QF to the extent that the capacity of the QF reduces any capacity deficiency payments by the Company to PJM or increases any capacity payments to the Company from PJM. Capacity credits, if applicable, will be based on the average on-peak capacity in any billing month, such capacity to be defined as the on- peak kilowatt-hours divided by the on-peak hours in that month. The seller may be eligible for an additional credit where the presence of the QF allows the deferral of local transmission or distribution capacity cost. 5. The Service Charge will be waived for QF's with 10 kW or less generating capacity. 6. Due to simplified metering, QF's with 10 kW or less generating capacity will be credited based on the average non-load weighted PJM billing rate for the month the energy is received.

Technical Interconnection Issues Compliance with Tariff rules and CPD regulations Purpose of the requirements? –Technical requirements to promote safe & reliable parallel operation. –Enhance the reliability of electric service –Facilitate implementation –Enhance economic efficiency –Help promote distributed resources Who will use the technical considerations? –Below 1 MW –34.5 kV & below, non transmission. –Non inverter based technologies Compliance with Tariff rules and CPD regulations Purpose of the requirements? –Technical requirements to promote safe & reliable parallel operation. –Enhance the reliability of electric service –Facilitate implementation –Enhance economic efficiency –Help promote distributed resources Who will use the technical considerations? –Below 1 MW –34.5 kV & below, non transmission. –Non inverter based technologies

Where do you start? Contact CPD or other local distribution companies early in the process! –CPD Contact Conectiv Power Delivery PO Box 9239, Mail stop 79NC82 (302) Office (302) Fax Attn: Russ Ehrlich Or to Contact CPD or other local distribution companies early in the process! –CPD Contact Conectiv Power Delivery PO Box 9239, Mail stop 79NC82 (302) Office (302) Fax Attn: Russ Ehrlich Or to

Application Process Interconnection Applications –Short Form 10 kW or Less Available on BPU’s Clean Energy Web site –Long Form System >100 kW – 1000kW Contact Conectiv Power Delivery –1 MW or Greater – PJM/ Conectiv ISA Submit partial application to begin process After system is installed & inspected submit completed application to CPD Application review CPD departmental notification Interconnection Applications –Short Form 10 kW or Less Available on BPU’s Clean Energy Web site –Long Form System >100 kW – 1000kW Contact Conectiv Power Delivery –1 MW or Greater – PJM/ Conectiv ISA Submit partial application to begin process After system is installed & inspected submit completed application to CPD Application review CPD departmental notification

CPD Internal Review System Protection Review –Relaying, settings, technology –Pre-interconnection Study Inverter based technologies exempt System Planning –Power Delivery systems must be designed to handle peak circuit load without generation Grid reliability Metering Billing System Operations System Protection Review –Relaying, settings, technology –Pre-interconnection Study Inverter based technologies exempt System Planning –Power Delivery systems must be designed to handle peak circuit load without generation Grid reliability Metering Billing System Operations

Technical Interconnection Issues General Interconnection and Protection Requirements The Generator Owner’s generation and interconnection installation must meet all applicable national, state, and local construction and safety codes. The Generator Owner’s generator shall be equipped with protective hardware and software designed to prevent the generator from energizing one of the Company’s de-energized circuits. The Generator Owner’s generator must automatically disconnect from the Company’s system if the Grid source is lost, irrespective of connected loads or other generators. The generator shall be equipped with the necessary protective hardware and software designed to prevent sustained parallel operation of the generating equipment with the Company’s system unless the system service voltage and frequency are within acceptable magnitudes as defined in Section XIV.B. Pre-approved equipment shall be accepted as part of an interconnection proposal without the need to re-review the equipment itself. However, the application, design and setting of pre- approved units and/or equipment must be reviewed and coordinated according to the unique needs of the specific location of the proposed installation. Where a complete unit or system has been pre-approved, only location-specific issues will typically need to be reviewed. General Interconnection and Protection Requirements The Generator Owner’s generation and interconnection installation must meet all applicable national, state, and local construction and safety codes. The Generator Owner’s generator shall be equipped with protective hardware and software designed to prevent the generator from energizing one of the Company’s de-energized circuits. The Generator Owner’s generator must automatically disconnect from the Company’s system if the Grid source is lost, irrespective of connected loads or other generators. The generator shall be equipped with the necessary protective hardware and software designed to prevent sustained parallel operation of the generating equipment with the Company’s system unless the system service voltage and frequency are within acceptable magnitudes as defined in Section XIV.B. Pre-approved equipment shall be accepted as part of an interconnection proposal without the need to re-review the equipment itself. However, the application, design and setting of pre- approved units and/or equipment must be reviewed and coordinated according to the unique needs of the specific location of the proposed installation. Where a complete unit or system has been pre-approved, only location-specific issues will typically need to be reviewed.

Technical Interconnection Issues The Generator Owner will be responsible for protecting its own generating and interconnection equipment in such a manner so that Company system outages, short circuits, single phasing conditions or other disturbances including zero sequence currents and ferroresonant over-voltages do not damage the Generator Owner’s generating equipment. The protective equipment shall also prevent excessive or unnecessary tripping that would adversely affect the Company’s service reliability to other Generator Owners and Customers. The Generator and interface protection schemes shall be continuously monitored and functioning and the generator shall immediately disconnect from the Company’s system for any condition that would make the protection scheme inoperable. The operating power required for the protection and control schemes for the generator and the control power used to disconnect the generator from the Company must not be dependent on local Company grid power. Where multiple generators are connected to the system through a single point of common coupling, the sum of the ratings of the generators will be used to determine the applicability of these guidelines. Protection scheme performance with one or more units off line will have to be considered. Applicable circuit breakers or other interrupting devices at the Generator Owner’s facility must be capable of interrupting the maximum available fault current at the site, including any contribution from the Owner’s generator(s). The Generator Owner will be responsible for protecting its own generating and interconnection equipment in such a manner so that Company system outages, short circuits, single phasing conditions or other disturbances including zero sequence currents and ferroresonant over-voltages do not damage the Generator Owner’s generating equipment. The protective equipment shall also prevent excessive or unnecessary tripping that would adversely affect the Company’s service reliability to other Generator Owners and Customers. The Generator and interface protection schemes shall be continuously monitored and functioning and the generator shall immediately disconnect from the Company’s system for any condition that would make the protection scheme inoperable. The operating power required for the protection and control schemes for the generator and the control power used to disconnect the generator from the Company must not be dependent on local Company grid power. Where multiple generators are connected to the system through a single point of common coupling, the sum of the ratings of the generators will be used to determine the applicability of these guidelines. Protection scheme performance with one or more units off line will have to be considered. Applicable circuit breakers or other interrupting devices at the Generator Owner’s facility must be capable of interrupting the maximum available fault current at the site, including any contribution from the Owner’s generator(s).

Technical Interconnection Issues The Generator Owner will furnish and install a manual disconnect device which, when opened, will have the affect of isolating the generator from the Company’s system. This disconnect device shall have a visual break (a disconnect switch, a draw-out breaker, fuse block, etc. as appropriate to the voltage level), will, at all times, be accessible to Company’s personnel, and shall be capable of being locked in the open position via a Company padlock. The Company shall use reasonable efforts to utilize padlocks of a size consistent with typical manufacturer’s specifications. The Generator Owner shall follow the Company’s switching, clearance and tagging procedures which the Company shall provide and attached the Warning Label noted in Section X. On generation installations of 25kW or less, the Generator Owner may elect not to install a manual disconnect switch provided that the meter can be safely “pulled” by Conectiv to isolate the generation equipment from the Company. If the Generator Owner elects not to install a manual disconnect device, the Generator Owner assumes all risks and consequences when a meter must be “pulled” to disconnect the generator thereby also interrupting electric service to the Customer. The design, procurement, installation, and maintenance of the equipment at the Generator Owner’s site is the responsibility of the Generator Owner and at the Generator Owner’s expense. Any necessary enhancements or improvements needed within the Company’s system and/or at other Customer sites to accommodate the parallel interconnection of the Generator Owner’s generation will be at the Generator Owner’s expense. The Generator Owner will furnish and install a manual disconnect device which, when opened, will have the affect of isolating the generator from the Company’s system. This disconnect device shall have a visual break (a disconnect switch, a draw-out breaker, fuse block, etc. as appropriate to the voltage level), will, at all times, be accessible to Company’s personnel, and shall be capable of being locked in the open position via a Company padlock. The Company shall use reasonable efforts to utilize padlocks of a size consistent with typical manufacturer’s specifications. The Generator Owner shall follow the Company’s switching, clearance and tagging procedures which the Company shall provide and attached the Warning Label noted in Section X. On generation installations of 25kW or less, the Generator Owner may elect not to install a manual disconnect switch provided that the meter can be safely “pulled” by Conectiv to isolate the generation equipment from the Company. If the Generator Owner elects not to install a manual disconnect device, the Generator Owner assumes all risks and consequences when a meter must be “pulled” to disconnect the generator thereby also interrupting electric service to the Customer. The design, procurement, installation, and maintenance of the equipment at the Generator Owner’s site is the responsibility of the Generator Owner and at the Generator Owner’s expense. Any necessary enhancements or improvements needed within the Company’s system and/or at other Customer sites to accommodate the parallel interconnection of the Generator Owner’s generation will be at the Generator Owner’s expense.

Technical Interconnection Issues The Generator Owner has full responsibility and liability for the safe and proper operation and control of their equipment and the power originating from their generator. The Generator Owner is also responsible for synchronizing their generator(s) with the Company’s system and maintaining a synchronous condition. The Generator Owner must immediately cease parallel operation upon notification by the Company if such operation is determined to be unsafe, interferes with the supply of service to other customers, or interferes with the Company’s system maintenance or operation. The Company reserves the right to specify the type of transformer connection (e.g. delta-delta, wye-delta, wye-wye) that will be employed for all multiphase interface transformers consistent, where reasonable, with the Generator Owner’s power system. The Generator Owner has full responsibility and liability for the safe and proper operation and control of their equipment and the power originating from their generator. The Generator Owner is also responsible for synchronizing their generator(s) with the Company’s system and maintaining a synchronous condition. The Generator Owner must immediately cease parallel operation upon notification by the Company if such operation is determined to be unsafe, interferes with the supply of service to other customers, or interferes with the Company’s system maintenance or operation. The Company reserves the right to specify the type of transformer connection (e.g. delta-delta, wye-delta, wye-wye) that will be employed for all multiphase interface transformers consistent, where reasonable, with the Generator Owner’s power system.

Technical Overview Application processing – CPD wants to get your system up and running so you can maximize the return on your investment! Ensure - IEEE/UL/NEC Requirements Customer & Utility system protection Customer & Utility safety! Application processing – CPD wants to get your system up and running so you can maximize the return on your investment! Ensure - IEEE/UL/NEC Requirements Customer & Utility system protection Customer & Utility safety!

Facts & Figures CPD has approximately 1.1 Million customers 75 CPD customers have installed Renewable systems that are operating in parallel with our system. –Largest system 200kW Solar system –Smallest system 1.8kW Solar System –10kW wind Govt. facility Total Renewable Generation - Approximately 500 kW CPD has approximately 1.1 Million customers 75 CPD customers have installed Renewable systems that are operating in parallel with our system. –Largest system 200kW Solar system –Smallest system 1.8kW Solar System –10kW wind Govt. facility Total Renewable Generation - Approximately 500 kW

In Closing…. Type of Generation ….(renewable fuels) Size of Generation …..(residential up to mWs) How is the unit operated….. (Connected or isolated from the grid/Emergency/Parallel) Type of Generation ….(renewable fuels) Size of Generation …..(residential up to mWs) How is the unit operated….. (Connected or isolated from the grid/Emergency/Parallel)

Last but not least….. Conectiv Power Delivery supports alternative energy generation projects & will help customers work through the interconnection process. –Contact Conectiv Power Delivery early –Fill out necessary interconnection application(s) –Build safety & reliability into the system Conectiv Power Delivery supports alternative energy generation projects & will help customers work through the interconnection process. –Contact Conectiv Power Delivery early –Fill out necessary interconnection application(s) –Build safety & reliability into the system

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