1. > 30 kW Interconnection Work Group Meeting June 19, 2007

2. Meeting Purpose Review comments received to date Share MPSC Staff strawman proposals in response to those comments Identify areas of consensus and issues for further investigation and discussion Set schedule for continued work in this process

3. Agenda 1.NREL/DOE Interconnection Assistance Activities – Brad Johnson, ACN Energy Ventures (National Renewable Energy Lab Contractor) 2.Unity Power Factor Discussion – Adam Jacob, Senior Engineer, Distributed Resources Planning, The Detroit Edison Company 3.Discussion and consensus building on 30 kW & Larger Interconnection Procedures Issues 4.Next steps

4. Discussion Six issues: 1.Timelines for Interconnection 2.Assuring Reasonable Interconnection Costs 3.Consultations with Transmission Companies 4.Areas of Opportunity for Interconnections 5.Miscellaneous Issues Raised in Comments 6.Power Factor Requirements

5. 1. Timelines 1.1 Pre-Application Meetings 1.2 3-days from receipt for utility to acknowledge application, in writing 1.3 10-days from receipt for utility to notify applicant, in writing, if application is incomplete and explain how to remedy 1.4 Until rules can be revised, use existing timelines but allow utilities to “toll” time when delays are outside of utility control 1.5 Utilities could stock “standard” equipment

6. 2. Interconnection Costs 2.1 Utilities develop conceptual cost estimates, based on generic interconnections 2.2 Utilities maintain list of qualified contractors 2.3 Utilities obtain 3 bids; applicant pays lowest bid amount

7. 3. Transmission Studies 3.1 Utilities determine if interconnection will result in transmission effects. If yes – or if generator is (A) > 2 MW or (B) capable of generating > minimum load on circuit – then utility notifies MISO and Transmission Owner (TO) 3.2 If yes, Utility informs MISO & TO of study schedule. MISO & TO inform utility whether they will participate in study or if transmission system impacts need not be studied. 3.3 Utility asks MISO & TO to acknowledge receipt of notice within three days and inform of interest in participating within 10 days of the notice being provided.

8. 4. Areas of Opportunity 4.1 Three types of issues about where to interconnect: (1) on a customer’s property; (2) in a specific small geographic area defined by the developer; or (3) anywhere in the utility’s service territory. 4.2 For type (1), at or ASAP after pre-application meeting, utility notifies applicant of options & estimated costs. 4.3 For type (2 ), Applicant notifies utility of a general area where interconnection is desired. At or ASAP after pre-application meeting, utility notifies applicant of options & estimated costs. 4.4 For type (3), Utility develop map to indicate best locations for interconnections.

9. 5. Miscellaneous Issues 5.1 Liability insurance. 5.2 Streamlining engineering studies. 5.3Simplified one-line diagrams. 5.4Standby rates. 5.5Criteria/Standards for Grid Interface Equipment. 5.6Payments/Ownership for Grid Interface Equipment. 5.7Utility incentives & financial interests

10. 6. Power Factor 6.1Match requirements for customer type under rate serving interconnected customer 6.2Consider using “Reactive Power” language from recently approved Maryland interconnection standards.

11. Next Steps Areas of agreement… Areas for more investigation & discussion Schedule for continued work in this process…