Comparing Utility Interconnection Timelines 08 for Small...

08Fall

ComparingUtilityInterconnectionTimelinesforSmall-ScaleSolarPV2ndEdition

ChelseaBarnes,JustinBarnes,BlakeElder&

BenjaminInskeepwww.eq-research.com

October2016

AcknowledgmentsTheauthorswouldliketothankthefollowingindividualsandorganizationsfortheircontributionstothiswork:TheSolarFoundation,theNorthCarolinaSustainableEnergyAssociation,AmandaVanegaandRustyHaynes(EQResearch),JasonKeyes(Keyes,Fox&WiedmanLLP),TomHarris(ARiSEIA),BlankaAnderson(TucsonElectricPower),DavidFerrante(Eversource),andthePVinstallersthatcontributeddataandinsight.

AboutEQResearchEQResearchLLCprovidespolicyresearch,analysisandincentivedataservicestobusinesses,non-profitsandothersactiveinthecleanenergysector.EQmonitorsandanalyzeslegislativeandregulatoryactivitiesinall50U.S.states,withafocusonsolarenergy,distributedgeneration,energystorage,electricvehicles,netmeteringandelectricutilityratecases.

TableofContents

AcronymsandAbbreviations.............................................................................................1

TableofFigures..................................................................................................................2

ExecutiveSummary............................................................................................................3

1.Introduction...................................................................................................................51.1.TheInterconnectionApprovalProcess................................................................................51.2.TheProblemwithDelays.....................................................................................................6

2.DataCollection...............................................................................................................9

3.SurveyResults..............................................................................................................103.1.DataConsiderationsandVariability..................................................................................113.2.Pre-ConstructionApproval................................................................................................123.3.PermissiontoOperate.......................................................................................................163.4.FullInterconnectionProcess.............................................................................................203.5.GridReliabilityDenials.......................................................................................................20

4.Discussion.....................................................................................................................214.1.ImprovingApplicationSystemsandContent....................................................................22

4.1.1.MethodofApplicationDelivery&Processing............................................................224.1.2.AdministrationandWorkflow....................................................................................244.1.3.ApplicationContentandClarity.................................................................................254.1.4.IncentiveProgramDesignandAdministration..........................................................26

4.2.ConsolidatingPre-andPost-ConstructionApproval.........................................................274.3.RegulatingTimelines.........................................................................................................284.4.IncreasingConsistency......................................................................................................324.5.ImprovingCommunicationandTransparency..................................................................334.6.CoordinatingwithLocalJurisdictions................................................................................344.7.ExpeditingMeterExchange...............................................................................................354.8.IncreasingGridCapacityTransparency.............................................................................364.9.PreparingforIncreasedDGPenetration...........................................................................40

5.Recommendations.......................................................................................................425.1.Policymakers......................................................................................................................425.2.Utilities..............................................................................................................................435.3.Installers............................................................................................................................43

6.Conclusions..................................................................................................................44

AppendixA.......................................................................................................................45

AppendixB.......................................................................................................................48

ComparingUtilityInterconnectionTimelines,2ndEdition 1

AcronymsandAbbreviationsACE AtlanticCityElectricCompanyAHJ AuthorityHavingJurisdictionAMI AdvancedMeteringInfrastructureAPS ArizonaPublicServiceCompanyBGE BaltimoreGas&ElectricCL&P ConnecticutLight&Power(Eversource)ConEd ConsolidatedEdisonCompanyComEd CommonwealthEdisonDEC DelawareElectricCooperativeDER DistributedEnergyResourceDG DistributedGenerationDSIP DistributionSystemImplementationPlanEIA U.S.EnergyInformationAdministrationEPE ElPasoElectricEPRI ElectricPowerResearchInstituteHECO HawaiianElectricCompanyHELCO HawaiiElectricLightCompanyIREA IntermountainRuralElectricAssociationIREC InterstateRenewableEnergyCouncilIID ImperialIrrigationDistrictIOU Investor-OwnedUtilityJCP&L JerseyCentralPower&LightLADWP LosAngelesDepartmentofWaterandPowerLIPA LongIslandPowerAuthorityMECO MauiElectricCompanyNREL NationalRenewableEnergyLaboratoryNWA Non-WiresAlternativesNYSEG NewYorkStateElectric&GasCorp.ORU OrangeandRocklandUtilitiesPG&E PacificGas&ElectricPGE PortlandGeneralElectricPSE&G PublicServiceElectric&GasCo.PTO PermissiontoOperatePV PhotovoltaicREV ReformingtheEnergyVisionSCE SouthernCaliforniaEdisonSCE&G SouthCarolinaElectric&Gas SDG&E SandDiegoGas&ElectricSEIA SolarEnergyIndustriesAssociationSMUD SacramentoMunicipalUtilityDistrictSDG&E SanDiegoGas&ElectricSRP SaltRiverProjectSPP SierraPacificPowerTEM TimelineEnforcementMechanismTEP TucsonElectricPowerUI TheUnitedIlluminatingCo.WMECO WesternMassachusettsElectricCo.


TableofFiguresFigure1:TypicalPVInstallationProcess.......................................................................................................................6Figure2:U.S.PVInstallationForecast,2010-2021E.....................................................................................................8Figure3:MapofSurveyResponses............................................................................................................................11Figure4:2015Pre-ConstructionApplicationTimelines,inDays(18DaysorLess)....................................................13Figure5:2015Pre-ConstructionApplicationTimelines,inDays(Morethan18Days)..............................................14Figure6:UtilitieswherePre-ConstructionApplicationTimelinesImprovedin2015,DecreaseinDays....................15Figure7:UtilitieswherePre-ConstructionApplicationTimelinesWorsenedin2015,IncreaseinDays....................15Figure8:2015UtilityPTOTimelines,inDays(Lessthan2Months)...........................................................................17Figure9:2015UtilityPTOTimelines,inDays(Morethan2Months).........................................................................18Figure10:UtilitieswherePTOTimelinesImprovedorStayedtheSamein2015,DecreaseinDays..........................18Figure11:UtilitieswherePTOWorsenedin2015,IncreaseinDays..........................................................................19Figure12:StateRulesSettingInterconnectionApprovalTimelinesforSystems10kWorLess................................29Figure13:NYSEGandRG&EDistributedInterconnectionGuideMap.......................................................................38Figure14:ScreenshotsofContrastingInterconnectionOpportunitieswithinSCEServiceTerritory.........................39


ExecutiveSummaryTherulesandproceduresthatgovernhowadistributedsolarsystemconnectstothegridarecrucialtoensuringgridsafetyandreliability,butstandardsvarywidelyacrosstheUnitedStates,andprocedurescanbelongandcomplicated.1Assolar’spopularitycontinuestogrow,solarcustomersandinstallersareexperiencinglongertimelinesforreceivingapplicationapprovalandpermissiontooperate(PTO)asutilities’existingproceduresandresourcesareunabletokeepupwithdemand.Furthermore,increasinglevelsofdistributedgeneration(DG)systemsarebeginningtoputpressureongridcapacity,andmoreutilitiesarerequiringexpensiveupgradesinorderforsystemstoconnecttothegrid,addingdelaysandcomplicationsforcustomerswishingtoinstallevenrelativelysmallsystems.However,asutilitiesandregulatorsgainmoreexperiencewithsolarandotherDGsystems,technical,policy,andadministrativesolutionsareallowingutilitiestoprocesslargenumbersofDGapplicationsthroughquickandeasyprocedures.Inthefirsteditionofthisreport,publishedinJuly2015,EQResearchquantifiedinterconnectiontimelinesforPVsystems10kilowatts(kW)orlessbysurveyingPVinstallersregardingtimelinesforPTOin34utilities’serviceterritoriesfor2013and2014.Inthissecondedition,wecollecteddatafor62utilitieswiththehighestamountsofresidentialPVcustomers,covering20statesandWashington,D.C.,andquantifiedbothpre-constructionapprovaltimelinesandPTOtimelinesin2014and2015.Installerswereaskedtoreporttheaveragenumberofdaysindividualutilitiestooktoapproveinitialapplicationsforinterconnection(i.e.,pre-construction)andtograntPTOafterasysteminstallationforboth2014and2015,aswellasthenumberofapplicationsdeniedbytheutilityduetogridreliabilityconcerns.Overall,utilitiestooklongertoapproveinterconnectionapplicationsandPTOin2015comparedto2014,althoughthedelayincreasesweremuchmoresignificantforPTOthanforpre-constructionapplications.Forpre-constructionwaitingperiods,themedianutilitywaittimeincreasedfrom14in2014to18in2015;forPTOwaitingperiods,themedianutilitywaittimeincreasedfrom28in2014to45in2015.ThroughinterviewswithPVinstallersandutilityinterconnectionstaff,weidentifiedanumberofcontributingfactorsthatcausedelays,aswellasbestpracticesforstreamliningtheinterconnectionprocesswhilemaintaininggridsafetyandreliability.2Inordertoaccommodateincreasingapplicationnumbers,utilitiesmustmovetowardonlineapplicationsystemsandincreasedautomationtoreduceadministrativeburden.Additionalapplicationsmayalsorequireadditionalstafftimeandchangestoemployeeworkflow.Utilitiesandregulatorsmightconsiderincreasingthetransparencyofgridcapacityinordertoallowinstallerstoavoidapre-constructionapplicationandtohelpthemavoidareasofthegridwithcapacityconcerns.Policymakersshouldmakeimprovementstoregulationsregardinginterconnectionproceduretimelines,whichareoftenunclearorabsent.Asstatescontinuetoworktowardmoreaggressiverenewableenergygoals,comprehensivedistributionplanningshouldincorporateplansforDGgrowthandintegration.Streamliningtheinterconnectionprocesscansave

1Thisreportusestheterm“solar”torefertosolarphotovoltaic(PV)systems(i.e.,systemssubjecttoelectricutilityinterconnectionrequirements).2Whilethestandardsurveyonlyrequesteddatathrough2015,inafewinstanceswerefertomorerecent2016developmentsbasedoninterviewsandotherresearch.


customers,installers,andutilitiesmoney,andcanbringrenewableenergytoamorelevelplayingfieldwithtraditionalenergyresourcessothatstatescanmoreeasilymeetenergyandenvironmentalpolicyobjectives.


1.IntroductionEvenasdistributedsolarcontinuestogrowrapidlyintheUnitedStates,connectingaPVsystemtothegridcanstillbeachallengingandtime-consumingprocessforinstallersandcustomers.Thetimeandeffortrequiredtoconnecttothegridvariesconsiderablyfromstatetostate,andbyelectricutilityserviceterritory.Thiscreatesthepotentialforcostlydelaysindeployingrooftopsolaracrossthenation,aswellasinequitiesamongconsumerswithrespecttotheirabilitytoexercisetheirright,asagrid-connectedcustomer,togosolar.3Inthefirsteditionofthisreport,publishedin2015(covering2013-2014applications),EQResearchprovidedinsightintotheextentofthischallengebyconductingaquantitativeanalysisoftheamountoftimethatacustomermustwaitafterasystemisinstalledtoreceivePTOfromtheutility.4Inthisedition,werevisitPTOtimelinesusingupdateddatathroughtheendof2015.Additionally,wequantifytheinterconnectionpre-constructionapplicationtimeperiod.

1.1.TheInterconnectionApprovalProcessDuringthepre-constructionreviewperiod,theutilityreviewstheprospectivesolarcustomer’sapplicationtoensurethattheapplicationcontainsallofthenecessaryinformation,thatanyapplicationfeeshavebeenpaid,thattheproposedsystemmeetsallnecessarytechnicalstandards,andthattheproposedsystemwillnotexceedthecapacityavailableonconnecteddistributioncircuits,linesections,ornetworks.Aftercompletingthepre-constructionreview,theutilityinformstheapplicantoftheresults,afterwhichthePVsystemmaybeinstalled(assumingtheapplicationwasapproved).Followingtheinstallationofthesystem,thelocalpermittingauthority–orAuthorityHavingJurisdiction(AHJ),oftenacountyorcitygovernment–typicallyrequiresabuildingand/orelectricalinspection.Thefinalstepbeforethesystemmaybegingeneratingelectricityisapost-constructionreview.Theutility’spost-constructionreviewmayincludeautilityinspectionorwitnesstest(althoughwitnesstestsareoftenwaivedforsmallsystems5),andisintendedtoensurethatthesystemhasbeeninstalledpursuanttolocalelectricalandbuildingcodesandisoperatingproperly.Aftertheutilityreviewsthisfinalpaperworkandinstallation,itgrantsPTO.Largersystemsorthoseconnectedtothegridinareaswithcapacityconcernsmayberequiredtoundergoadditionalreviewstepsandmayrequireupgradestogridinfrastructure,oftenatthecustomer’sexpense.Theutility’sreviewstepsrepresenttwooffourbasicstepsintheinterconnectionprocess;theconstructionofthesystemandreviewbylocalinspectorsaccountfortheothertwosteps(Figure1).

3Wellinghoff,J.andS.Weissman.TheRighttoSelf-GenerateasaGrid-ConnectedCustomer.EnergyLawJournal,Vol.36:305-326.Availableat:http://felj.org/sites/default/files/docs/elj362/23-305-326-Wellinghoff_FINAL%20%5B11.10%5D.pdf4EQResearch.ComparingUtilityInterconnectionTimelinesforSmall-ScaleSolar.July2015.Availableat:http://eq-research.com/eq-publications/comparing-utility-interconnection-timelines-for-small-scale-solar-pv/5Frompersonalcommunicationwithinstallersandutilitystaff.


Figure1:TypicalPVInstallationProcess6

1.2.TheProblemwithDelaysWhydointerconnectiontimelinesmatter?Thereareseveralreasons,butultimately,allofthemrelatetocostsincurredbycustomersandinstallersasaresultofdelays.

• ForegoneEnergyProduction:Delaysininterconnectionareamonetarycosttocustomersintheformoflostenergyproduction.ThisisparticularlyfrustratinginthecontextofdelaysforPTOauthorization,asthesystemmustsitidlewhenitcouldotherwisebeproducingenergy.Forexample,ahypotheticalcustomerinConnecticutwhoinstallsa7-kWsystemwouldbedeprivedofmorethan$150inelectricitygenerationforeverymonththatinterconnectionisdelayed.7Multipliedovermanyindividualsystems,thecumulativecostsareconsiderable.

• IncreasingSystemCosts:Interconnectiondelaysalsocontributetosoftcoststhataccountforanestimated64%ofthecostofaresidentialPVinstallation.8Softcostsarenotexclusivetointerconnection;theyincludecustomeracquisition,installationlabor,permitting,andinspectionaswell.9However,differentsoftcostscanberelated,where

6NationalRenewableEnergyLaboratory(NREL).“PVInterconnectionIssues:AreYouthe15%?”October29,2014.https://www.nrel.gov/tech_deployment/state_local_governments/blog/pv-interconnection-issues_dgic7Assumingaretailelectricitypriceof20.96centsperkWhandasystemthatproduces8,713kWhperyear.EnergyInformationAdministration(EIA).ConnecticutStateEnergyProfile.September15,2016.Availableat:http://www.eia.gov/state/print.cfm?sid=ct;NRELPVWattsCalculator.AccessedAugust2016.Availableat:http://pvwatts.nrel.gov/8NREL.“BenchmarkingNon-HardwareBalance-of-System(Soft)CostsforU.S.PhotovoltaicSystems,UsingaBottom-UpApproachandInstallerSurvey–SecondEdition.”October2013.Availableat:http://www.nrel.gov/docs/fy14osti/60412.pdf9Ibid.


delaysinoneareacausefurtherdelaysinanother(e.g.,delaysintheprocessrequireappointmentstoberescheduled,makingitdifficultforinstallerstobalanceschedulesformultipleprojects)andcontributetocustomerfrustrationthatinturncanaffectcustomeracquisitioncosts.Furthermore,makingthePTOprocessmoreefficientisimportanttoinstallerswhencontractsarestructuredsuchthattheydonotreceivepaymentfromthecustomeruntilthesystemisenergized.Idleassetsthatarenotgeneratingrevenueareacosttoratepayersandelectricityproviders,contributingtooverallsystemcosts.

• CustomerDissatisfaction:Asnotedabove,longapprovalprocessesleadtocustomerdissatisfaction,whichcanhavearippleeffectthroughoutthesolarmarket.StudieshaveconcludedthatthemostsignificantdriverofPVadoptionispeerinfluence,whichoftentakestheformoflearningaboutthebenefitsofPVfromfriendsorfamily.10,11Ifacustomerisunsatisfiedwiththeinstallationprocess,apoorreviewcanerodethereputationofsolar,oftheindustry,orboth–evenifthedelaysarenottheinstaller’sfault–andrepresstheword-of-mouthadvertisingthathasbeenasignificantdriverofPVadoptiontodate.

Inthefirsteditionofthisreport,wefoundthatproblemswithinterconnectiondelayshaveincreasedinrecentyears:amongsurveyedutilities,themedianwaittimeforPTOincreasedfrom18daysin2013to25daysin2014,withcustomerswaitingmonthstoreceivePTOinsomeutilityserviceareas.Thisincreaseinprocessingtimeisattributableinparttorisingvolumesofapplicationsthatmanyutilitiesarereceivingasaresultofsolar’sincreasingpopularityandpoliciesencouragingitsadoption.Annualsolarinstallationscontinuetogrow,reachingasignificantmilestoneof1millioninstallationsintheUnitedStatesinMay2016.12Approximately7.3gigawatts(GW)ofsolarwereinstalledin2015,andthatsumisexpectedtomorethandouble–toroughly16GW–in2016.13Theresidentialsectorwasthefastest-growingsectorinthesolarindustryin2015,adding2.099GWduringthatyear–a66%increaseover2014installedcapacity.14Growthinthesolarindustryisexpectedtoremainstrongthroughthenextfiveyearsaswell(Figure2).

10TheWashingtonPost.Whydopeopleputsolarontheirroofs?Becauseotherpeopleputsolarontheirroofs.October23,2014.Availableat:http://www.washingtonpost.com/blogs/wonkblog/wp/2014/10/23/study-solar-energy-isnt-just-for-rich-liberals-any-more/11PVSolarReport.DriversofResidentialSolarAdoption:EnvironmentalPreferenceorPeerPressure?January27,2014.Availableat:http://pvsolarreport.com/drivers-of-residential-solar-adoption-environmental-or-peer/12SolarIndustryMagazine.“U.S.SolarReachesMajorMilestone:1MillionInstallations!”May3,2016.Availableat:http://solarindustrymag.com/u-s-solar-reaches-major-milestone-1-million-installations13SolarIndustryIndustriesAssociation(SEIA).“USSolarMarketSettoGrow119%in2016,InstallationstoReach16GW.”March9,2016.Availableat:http://www.seia.org/news/us-solar-market-set-grow-119-2016-installations-reach-16-gw14SEIA.“SolarMarketInsight2015Q4.”Availableat:https://www.seia.org/research-resources/solar-market-insight-2015-q4


Figure2:U.S.PVInstallationForecast,2010-2021E15

AhighlevelofDGinautility’sserviceterritorydoesnotnecessarilymeanautility’sprocesshasslowed;infact,manyutilitieswithhighDGlevelshaveupdatedtheirprocessestoaccommodatetheincreaseinapplicationsandareabletoprocessapplicationsfasterthanutilitieswithmuchlowerDGlevels.However,asaresultofthisgrowth,insomelocations,gridreliabilityisincreasinglyconcerningtoutilitiesandregulators.AsPVadoptionexpands,utilitiesmayexercisemorecautionwhenconsideringnewinterconnectionapplications,andapplicationsaremorelikelytobesubmittedforareasofthegridthatarereachingcapacitylimitations.SomePVinstallersbelievethatutilitiesareoverlycautiousinsomecases,orthatutilitiesinvokegridreliabilityconcernsasanexcusetodelayapplicationprocessing.Conversely,utilitystaffsometimesbelievethatthePVindustryseeksspecialtreatmentnotgrantedtootherindustries.16,17Inour2015report,basedonconversationswithutilityinterconnectionstaffandinstallers,weidentifiedseveralkeyareasthatcanimpactthetimelinessofinterconnectionprocessing:(1)thequalityandsystemofapplying,(2)thepresenceofapre-constructionapproval

15SEIA/GTMResearch,U.S.SolarMarketInsight2015YearinReview.March9,2016.Availableat:http://www.seia.org/research-resources/solar-market-insight-2015-q416Frompersonalcommunicationwithinstallers,utilitystaff,andsurveyresponses.17Randazzo,R.AZCentral.“APSsolarcustomersfacingapprovaldelayswhilepayingelectricbills.”February15,2016.Availableat:http://www.azcentral.com/story/money/business/energy/2016/02/15/rooftop-solar-aps-delays-arizona-electric-bills/79842702/


requirement,(3)thepresenceofstate-regulateddeadlinesandenforcementofthosedeadlines,(4)communicationfromutilitystaff,(5)transparencyofanapplication’sstatusintheprocessandrequirementsforinterconnection,(6)thelevelofcoordinationbetweentheutility,installer,andAHJs,and(7)thestate’sorutility’slevelofpreparationforincreasedDGpenetration.Inthisedition,weexpandedthesurveyanddataanalysistoencompasspre-constructionapplicationwaitingperiodsinadditiontoPTOtimelinesinordertoquantifytheentireutilityapprovalprocessandtoprovideamorecomprehensiveanalysisoftheprocess.TheresearchfocusesonPVsystemsupto10kW,whichposelowerrisksintermsofgridreliability,aretypicallyinstalledwitharelativelystandardizedconfiguration,andmovethroughtheinterconnectionprocessthroughanexpeditedorsimplifiedprocess.However,manyofthelessonslearnedandareasforimprovementareapplicabletoprocessesforlargersystemsaswell.

2.DataCollectionThedataforthisreportisbasedonsurveysemailedtoPVinstallersthatoperateinthe100utilityserviceterritorieswiththemostnet-meteredresidentialPVcustomersbasedon2015datafromtheU.S.EnergyInformationAdministration.18For2014and2015,installerswereaskedtoprovidethefollowingdataforeachindividualutility:

• Thenumberofinterconnectionapplicationssubmitted• Theaveragepre-installationwaitingperiod(i.e.,theamountoftimepre-installation

beforetheutilityapprovedtheinterconnectionapplication)• TheaveragePTOwaitingperiod(i.e.,theamountoftimepost-installationbeforethe

utilityapprovedoperation)• Thenumberofapplicationsdeniedduetogridreliabilityconcerns

Datacollectedin2016wascombinedwithdatacollectedfromthesurveysin2015.SomePVinstallerstrackinterconnectiontimelinesverypreciselyusingspreadsheetsand/ordatabases,whileotherinstallersdonothavesuchgranulardata.Inordertoaccommodatethesedifferences,weallowedinstallerstoreporttheirdatainaprecisenumberofdays,orbyselectingfromdateranges.Therangesprovidedinthesurveyincluded:

• Lessthan1week• 1-2weeks• 3-4weeks• Morethan1month,butlessthan2months• 2monthsormore

Installerswerealsoposedanumberofqualitativequestionsthatallowedthemtodescribetheirgeneralimpressionsofutilityinterconnectionproceduresandapplications,aswellasareasforimprovement.18EIA.ElectricityData–Netmeteringcustomersandcapacitybytechnologytype,byendusesector.http://www.eia.gov/electricity/data.cfm#sales


Inaddition,surveyswereemailedtothe100utilities.For2014and2015,weaskedutilitystafftoprovidethefollowingdata:

• Thenumberofinterconnectionapplicationssubmitted• Theaveragepre-installationwaitingperiod(i.e.,theamountoftimepre-installation

beforetheutilityapprovedtheinterconnectionapplication)• TheaveragePTOwaitingperiod(i.e.,theamountoftimepost-installationbeforethe

utilityapprovedoperation)• Thenumberofapplicationsdeniedduetogridreliabilityconcerns

Inaddition,weaskedutilitiesqualitativequestionsregardingtheirprocesses,includingwhichissuesmaydelayinterconnectionapprovalandhowtheirprocessescouldbeimproved.Mostutilitiesdeclinedtoparticipateinthesurvey,butweconductedinterviewswithutilityinterconnectionpersonnelwhowereresponsivetothesurvey.Thus,whilemuchoftheinformationpresentedinthisreportcomesfrominstallers,wealsostrivedtoobtainsimilardatafromutilitiesandrepresenttheirviewpointsonthevariousissuesdiscussed.

3.SurveyResultsIntotal,weanalyzeddatafrom38PVinstallers,covering62utilitiesin20statesandWashington,D.C.(Figure3).19Solarinstallersdidnotnecessarilyreportbothpre-andpost-constructiondata;eitherbecausethetimelinewasnottracked,orbecauseinterconnectionproceduresaresometimestiedtoincentiveapplications(andthereforeitisdifficulttoseparatethetimelinesforeach).Forpre-constructiondata,surveyedPVinstallersreporteddataforatotalof28,607applicationssubmittedin2014(in32utilityterritories),and90,107applicationssubmittedin2015(in59utilityterritories).Intotal,60utilitieswerecoveredinthepre-applicationanalysis.Forpost-construction(i.e.,PTO)data,surveyedinstallersreporteddataforatotalof60,169applicationssubmittedin2014(in49utilityterritories),and91,474applicationssubmittedin2015(in59utilityterritories).Intotal,61utilitieswerecoveredinthePTOanalysis(Table1).

19Bothyears,wereceiveddatafromadditionalinstallersandforadditionalutilityterritoriesbeyondthedatareportedinthisreport,butweexcludeddatawherefewerthanfiveapplicationswerereportedforanindividualutility.


Figure3:MapofSurveyResponses

2014#ofApplications

2014#ofUtilities

2015#ofApplications

2015#ofUtilities

Total#ofUtilities

Pre-Construction 28,607 32 90,107 59 60Post-Construction 60,169 49 91,474 59 61

Table1:InstallerResponsesBytheNumbers

3.1.DataConsiderationsandVariabilityAsnotedinthe“DataCollection”sectionofthisreport,someinstallerstrackinterconnectiontimelinesveryprecisely,whileothersdonothaveprecisetrackingsystemsinplace.Thoughthemajorityofinterconnectiontimelineswerereportedasapreciseaverage,inordertoallowforcontributionsfromasmanyinstallersaspossible,weallowedinstallerstoselectfromarangeofoptionstoreportinterconnectiontimelines.Weusedthefollowingconversionsinordertoincorporatethislessprecisedataintotheanalysis:

• Lessthan1week=3.5days• 1-2weeks=10.5days• 3-4weeks=24.5days• Morethan1month,lessthan2months=45days• 2monthsormore=60days

Inaddition,timelinessometimesvariedsignificantlywithinindividualutilityterritories,evenforindividualinstallers.Theseissuescanariseforanumberofdifferentreasons,suchaschangesinprocedures,highDGpenetrationlevelsleadingtogridreliabilityconcerns,variationsin


permittingproceduresacrosslocaljurisdictions,installerexperience,orcommunicationandtransparencyissuesintheinterconnectionprocess.Ultimately,weincludedalldatawhencalculatingtheaveragesbecausetheextremesarealsoimportantforillustratingwhereproblemsmayexist.Forexample,agenerallyfastprocessthatshowsinstancesofmuchlongertimelines,eveniftheyareinfrequent,maypointtoaweakpointorgapintheprocess.

3.2.Pre-ConstructionApprovalIn2014,theaveragepre-constructionwaitingperiodrangedfromzerodaysforSanDiegoGas&ElectricCo.(SDG&E)to120daysfortheHawaiianElectricCo.(HECO).20Individualinstallersreportedpre-constructionwaitingtimesranginganywherefromzerodaysforSDG&E,SouthernCaliforniaEdison(SCE),andPacificGas&Electric(PG&E)(threeCaliforniautilitieswhichoftendonotrequirepre-constructionapproval),to120daysforHECO.Themedianutilitywaittimewas14days;theaveragewaittimeperapplicationwas12days.In2015,theaveragepre-constructionwaitingperiodrangedfromonedayforAmerenIllinoisto75daysforMauiElectricCo.(MECO).Themedianutilitywaittimeincreasedto18,andtheaveragewaittimeperapplicationroseto13days.Individualinstallersreportedpre-constructionwaittimesranginganywherefromzerodaysforSCE,SDG&E,andPG&E,to240daysforImperialIrrigationDistrict(IID),allinCalifornia.Figures4and5andAppendixAshowpre-constructionwaittimedataforeachutilityforeachyear.Forthe31utilitiesforwhichwereceiveddataforboth2014and2015,thewaittimeincreasedfor15utilitiesanddecreasedfor15utilities(oneutility’swaittimestayedthesame)(Figures6and7).Theincreasesexperiencedinindividualutilityserviceterritoriesweregreaterthanthedecreases;overall,thepre-applicationwaitingperiodperutilityrose57%in2015comparedto2014.ThelargestincreaseforasingleutilitywasSacramentoMunicipalUtilityDistrict(SMUD)inCalifornia,wherecustomersexperiencedan18-dayincreaseinpre-constructionwaittimes,jumpingfromtwodaysto20days.ThelargestdecreaseintermsofnumberofdayswasforHECO,whichwasanaverageof82daysfasterinapprovinginterconnectionapplications,droppingfrom120daysto38days.Orange&RocklandUtilities(ORU),inNewYork,experiencedthelargestpercentagedecrease,droppingbyapproximately68%from36daystofivedays.

20Allaveragetimesdescribedinthereportareweightedbasedonthenumberofapplications.Forexample,ifoneinstallerwith100applicationsreportedfivedaysandaoneinstallerwith50applicationsreported10days,theaveragetimeisreportedassevendays(roundedupfrom6.67).Alldaysanddurationsarereportedincalendardays(asopposedtobusinessdays)unlessotherwisespecified.


Figure4:2015Pre-ConstructionApplicationTimelines,inDays(18DaysorLess)


Figure5:2015Pre-ConstructionApplicationTimelines,inDays(Morethan18Days)


Figure6:UtilitieswherePre-ConstructionApplicationTimelinesImprovedin2015,DecreaseinDays

Figure7:UtilitieswherePre-ConstructionApplicationTimelinesWorsenedin2015,IncreaseinDays


3.3.PermissiontoOperateIn2014,theaveragePTOwaitingperiodrangedfromtwodaysforColoradoSpringsUtilities(CSU)to94daysforIntermountainRuralElectricAssociation(IREA),bothinColorado.IndividualinstallersreportedPTOwaitingperiodsranginganywherefromtwodaysforCSUto154daysfortheTurlockIrrigationDistrict(CA).ThemedianutilityPTOwaittimewas28days;theaveragetimeperapplicationwas24days.21In2015,theaveragePTOwaitingperiodrangedfromonedayforComEd(IL),to154daysforWesternMassachusettsElectricCompany(WMECO).22IndividualinstallersreportedPTOwaitingperiodsrangingfromonedayforComEdto274daysforXcelEnergy(CO).ThemedianPTOwaittimeincreasedto45days,whiletheaveragetimeperapplicationalsowas45days.Figure8and9andAppendixBshowPTOdataforeachutility.Installersreportedthatinmostutilityserviceterritories,PTOwaitingperiodsincreasedin2015comparedto2014.TheaveragePTOperiodperutilityrose103%in2015comparedto2014.Ofthe47utilitieswherewereceiveddataforbothyears,onlyfiveutilitiesreducedtheiraveragePTOwaitingperiod:FirstEnergy(MD),ConEd(NY),Delmarva(MD),TucsonElectricPower(TEP)(AZ),andDelawareElectricCooperative(DEC),asshowninFigure10.FortyutilitiestookmoretimetoprocessPTOin2015comparedto2014,andtwosawnochange:UnitedPower(CO)andLongIslandPowerAuthority(LIPA)(NY).FirstEnergy(MD)improvedthemost,decreasingby17daysfrom69daysto52.WMECOhadthegreatestincreaseinPTO,increasingfromsevendaysto31days.Figures10and11showPTOtimelinechangesbetween2014and2015.

21Inthefirsteditionofthisreport,wereportedamedianPTOwaittimeof25daysfor2014.Theincreaseto28daysfor2014inthiseditioncanbeattributedtotheinclusionofadditionalutilities.Furthermore,additional2014datawascollectedforutilitiesthatwereincludedinthe2015report;ourdatawasupdatedtoincludethisadditionaldata.Where2014timelineswereupdatedinthisedition,itisnotedinthetablesintheappendices.22WesternMassachusettsElectricCompanyandNSTARhavebeenrebrandedasEversource,butwerefertotheseutilitiesusingtheirformernamestoavoidconfusion.


Figure8:2015UtilityPTOTimelines,inDays(Lessthan2Months)


Figure9:2015UtilityPTOTimelines,inDays(Morethan2Months)

Figure10:UtilitieswherePTOTimelinesImprovedorStayedtheSamein2015,DecreaseinDays


Figure11:UtilitieswherePTOWorsenedin2015,IncreaseinDays


3.4.FullInterconnectionProcessConsideringthefullinterconnectionprocessforsmallsystems(i.e.addingpre-andpost-constructionapprovaltimes),theaveragenumberofdaysthatutilitiestooktoprocessinterconnectionapplicationswas46in2014,increasingto67in2015.Themedianwaittimewas36.5daysin2014and62in2015.CSUhadthefastesttotalaverageprocessingtimein2014atfivedays,andAmerenIllinoishadthefastestin2015atsixdays.HECO(HI)hadtheslowest2014processingtime,at155days,andWMECO(MA)hadtheslowesttimein2015at177days.Notethatthesefiguresonlycovertheamountoftimetheapplicationwasbeinghandledbytheutility,anddonotrepresentthefullamountoftimeittakestoconnectasystemtothegrid.

3.5.GridReliabilityDenialsInstallersreportedapplicationsbeingdeniedforgridreliabilityconcernsinatotalof25utilityterritories–14in2014and22in2015.Manyinstallersdonottrackthespecificreasonsforinterconnectiondenials,sothisareaofinquiryhasfewerdatapoints.IncalculatingpercentagesofapplicationsdeniedduetogridreliabilityconcernsinTable2below,onlydatafrominstallersthattrackthistypeofdatawasincluded.Forthoseutilitieswheredatawasreportedforbothyears,installersreportedadecreaseinthepercentageofgridreliabilitydenialsinsixutilityterritoriesin2015comparedto2014,andanincreaseinthreeutilityterritories.Thehighestpercentagereportedin2015wasinDelmarva(MD)at7.04%–muchlowerthanthehighestpercentagesreportedin2014(35.71%inHELCO)–althoughoneinstallerestimatedthatasmanyas20%ofitsapplicationsinTheUnitedIlluminatingCompany(UI)territory,inConnecticut,arerejectedorrequireexpensiveupgradesduetogridreliabilityconcerns.23Morerecently,installersinPECO(PA)territoryreportedthatin2016,theyhaveexperiencedalargeincreaseinthenumberofapplicationdenialsduetogridcapacityissues,increasingfromroughly1%ofapplicationssubmittedin2015to28%forapplicationssubmittedduring2016.24ThisisoccurringasPECOhasreceivedmorethan13timesthenumberofinterconnectionrequestsinduringEnergyYear2016(June1,2015-May31,2016)comparedtoEnergyYear2015.25

23Frompersonalcommunicationwithinstallers.24Ibid.25PennsylvaniaPublicUtilitiesCommission.Net-MeteringandInterconnectionReport2014-16.August2016.Availableat:http://www.puc.state.pa.us/Electric/pdf/AEPS/Net_Metering-Interconnection_Report_2014-16.pdf


Utility

%ApplicationsDeniedCiting

GridReliability,

2014

%ApplicationsDeniedCiting

GridReliability,

2015Delmarva(MD) N/A 7.04%FirstEnergy(MD) N/A 5.26%

CentralHudson(NY) 5.28% 4.05%Eversource(NH) N/A 2.86%

ACE(NJ) 0.81% 2.56%HECO(HI) 11.32% 1.72%NYSEG(NY) 9.38% 1.38%

PECOEnergyCo(PA) N/A 1.37%NationalGrid(MA) 0.31% 1.36%

Unitil(MA) N/A 0.74%Delmarva(DE) 0.72% 0.63%WMECO(MA) N/A 0.32%

UI(CT) N/A 0.28%Eversource(CT) N/A 0.26%Pepco(MD) 0.15% 0.24%

NationalGrid(NY) 0.35% 0.22%PSE&G(NJ) 0.68% 0.19%TEP(AZ) N/A 0.11%

NSTAR(MA) N/A 0.04%PG&E(CA) N/A 0.02%HELCO(HI) 35.71% N/AMECO(HI) 1.50% N/A

Orange&Rockland(NY) 0.49% N/ABGE(MD) 0.09% N/AXcel(CO) 0.07% N/A

Table2.ApplicationsDeniedDuetoGridReliabilityConcerns

N/Aindicatednogridreliabilitydenialsreported

4.DiscussionIncreasesinaveragePTOtimewereevenmoresignificantin2015relativeto2014thanthoseobservedin2014relativeto2013.Installersattributedthisbothtohighervolumesofinterconnectionapplicationsingeneralandmanyutilities’lackofattentiontoapplicationprocessing.Someinstallersreportedthat2016hasbeenayearofimprovement,however,withmanyutilitieshiringadditionalstaffandinvestinginonlineapplicationsystems.Severalstateshavealsobeenaddressinginterconnectionproceduresinlegislationandregulatoryproceedingsthisyear,whichmayalsocontributeto2016improvements.26Pre-applicationwaitingperiodsroseonaverageoverall,butnotnearlyasdrasticallyasPTOwaitingperiods,andmorethanhalfoftheutilitiessurveyeddidnothavehigherpre-applicationprocessingtimesin2015.Thiscouldbebecausepre-constructiontimelinesareregulatedinmoststatesincludedinthesurvey,andbecausetheprocessforutilitiestoreviewpre-

26Frompersonalcommunicationwithinstallersandsurveyresponses.


constructionapplicationsisbetterdefinedthanPTOapprovalprocesses,asdiscussedinmoredetailbelow.Installerscontinuetoseemanyofthesameissuesdocumentedinour2015report:(1)applicationsremainasourceofheadachesforcustomers,installers,andutilities;(2)alackofenforceabletimelinesforutilitiestoprocessapplicationsleavesapplicationsinlimbo;(3)alackofresourcessupportingutilityinterconnectionprocessingdepartmentsleadstocommunicationandtransparencyissues;and(4)higherDGlevelsleadstoincreaseddelaysandapplicationdenials.Utilitystaffattributeanydelaystohighervolumesofapplications,installersnotfullyunderstandingtherequiredprocessesorsubmittingincompleteapplications,aneedforadditionalstaffing,andaneedforsoftwareortechnicalimprovements.27,28However,asDGpenetrationcontinuestoincreasearoundthecountry,moretechnicalandregulatorysolutionsarise,andmorestatesandutilitiesareadaptingtothechangingelectricindustry.Below,wediscussindetailtheissuesthatcontributetodelaysandthepotentialsolutions.

4.1.ImprovingApplicationSystemsandContentUtilities,installers,andcustomerscanallbenefitfromawell-designedapplicationsystemandadministrativeprocessing.Utilitystaffstatedthatimprovementstotheapplicationprocessareoftenputoffbecauseotherissuestakepriorityoverinterconnectionprocessimprovements.However,utilitystaffinterviewedforthisreportalsostatedthatimprovementstotheinterconnectionprocesstypicallyyieldcostsavingsfortheutility,inthatthemoreuser-friendlyandautomatedtheinterconnectionapplicationsystemis,thelessstafftimeisneededtomanagetheprocess.29,30Thechallengeinthisareamaybeconvincingdecision-makersthatthelong-termbenefitsoutweightheshort-termcosts.

4.1.1.MethodofApplicationDelivery&ProcessingApplicationdeliveryprotocolsvary,fromthosethatarefullyonline,tothosethatpermitelectronicsubmission(e-mailorfax),tothosethatstillrelyonmailedorhand-deliveredpaperapplications.Manyutilitiesstillusesystemsthatrelyonhumanprocessingratherthanonlinesystems,andinstallerscontinuetoexperienceproblemswhereutilitieshaveyettoimplementonlineapplicationsystems.Mailed,hand-delivered,e-mailed,andfaxedinterconnectionapplicationsareoftenlostintransit,andmistakesoccurwhenutilityemployeesarerequiredtoreadinstallerorcustomerhandwritingandmanuallytypedataintoutilities’datasystems.Forinstance,inPSE&G(NJ)andPepco(DCandMD)territories,installersreportedthatpaperapplicationsarefrequentlylostbytheutilitiesandmustberesent.31Someutilitiesthatrequirepaperapplicationsalsorequireapplicantstosubmitpaperworkwithwetsignatures.Hawaiiutilities,forexample,havehistoricallyrequiredwetsignaturesonforms,

27Frompersonalcommunicationwithinstallers,utilitystaff,andsurveyresponses.28Randazzo,R.AZCentral.“APSsolarcustomersfacingapprovaldelayswhilepayingelectricbills.”February15,2016.Availableat:http://www.azcentral.com/story/money/business/energy/2016/02/15/rooftop-solar-aps-delays-arizona-electric-bills/79842702/29Frompersonalcommunicationwithutilitystaff.30Ardani,K.andR.Margolis.NREL.DecreasingSoftCostsforSolarPhotovoltaicsbyImprovingtheInterconnectionProcess:ACaseStudyofPacificGasandElectric.September2015.Availableat:http://www.nrel.gov/docs/fy15osti/65066.pdf31Frompersonalcommunicationwithinstallersandsurveyresponses.


buttheynowallowphotocopiesofsignatures.32Requiringwetsignaturespreventscustomersfromemailingorfaxingapplications,andforcescustomerstouseslowermethodsofsubmissionwithahigherriskofamisplacedapplication.Non-electronicapplicationprocessingcanalsocausesignificantproblemswherechecksmustbemailedtotheutility.Forexample,installersinPepco(DCandMD)territoryhavestatedthatchecksareoftenseparatedfromapplicationsandthenlost(requiringacustomertopaytocancelthecheckandreissueanewcheck),orcashedbytheutilitybutwithoutupdatingthestatusoftheapplication,leavingtheapplicationdeemedincomplete.33,34TheseproblemsultimatelyledtotheD.C.PublicServiceCommissioneliminatingtheinterconnectionfeeforLevel1applicationsinJuly2016.35Evenifchecksarenotlostorseparatedfromtheapplication,requiringachecktobemailedratherthanallowingonlinepaymentaddsasignificantdelaytotheapplicationprocessing.SolutionsStaffforsomeutilities,includingTEP(AZ),PG&E(CA),andEversource(CT),attributefasterinterconnectiontimelinestoadministrativesoftwareimprovementsandonlineapplicationsystems.36,37Utilitiesshouldconsidermovingtoonlineapplicationsystems,andregulatorsshouldconsiderrequiringonlineapplicationoptionsforcustomers.Asanexample,NewYorkutilitiesarenowrequiredtoimplementonlineapplicationportalsaspartofthecomprehensive“ReformingtheEnergyVision”(REV)proceeding.38Anonlineapplicationsystemdoesnotguaranteeasmoothinterconnectionprocess,andasmoreutilitiesadoptthesesystems,utilitiesandinstallersarebeginningtoidentifybestpractices.InstallersinComEd(IL)territoryreportthatComEd’sapplicationsystemrequiresinstallerstofillouteveryfieldmanually,notingthatthesystemwouldbemoreefficientifcertainfieldshadpre-populatedoptionsorweremultiplechoice.Someutilities,includingPG&E(CA),havelinkedexistingcustomerdatasystemstointerconnectionandnetmeteringapplicationsystemssothatDGapplicationsystemscanpullorverifyinformationsuchasusagedata,address,accountnumbers,andevenpaymentinformationfromexistingcustomeraccounts.ThissynchronizationcanreduceerrorsandallowsutilitiestomoreeasilyorautomaticallycomparetheproposedPVsystemsizetousagehistoryinordertodeterminenet

32PublicUtilitiesCommissionoftheStateofHawaii.TransmittalNo.16-04.DecisionandOrderNo.33752.June9,2016.Availableat:http://dms.puc.hawaii.gov/dms/DocumentViewer?pid=A1001001A16F13B10905H2892633Frompersonalcommunicationwithinstallers.34Varnado,Paul.PublicServiceCommissionoftheDistrictofColumbia.FC1050.“Late-filedcommentsinFormalMatterNo.1050byPaulVarnado.”August27,2015.Availableat:http://edocket.dcpsc.org/edocket/holder.asp?url=/pdf_files/edocket/upload/May%5F8282015%5F130%5F1%5FFC%5F%2D%5F1050%5F%2D%5F2015%5F%2D%5FPAUL%2Epdf35PublicServiceCommissionoftheDistrictofColumbia.FC1050.OrderNo.18269.July14,2016.Availableat:http://edocket.dcpsc.org/pdf_files/commorders/orderpdf/orderno_18269_FC1050.pdf36Frompersonalcommunicationwithutilitystaffandutilitysurveyresponses.37Ardani,K.andR.Margolis.NREL.DecreasingSoftCostsforSolarPhotovoltaicsbyImprovingtheInterconnectionProcess:ACaseStudyofPacificGasandElectric.September2015.Availableat:http://www.nrel.gov/docs/fy15osti/65066.pdf38NewYorkPublicServiceCommission.DocketNo.14-M-0101.OrderAdoptingRegulatoryPolicyFrameworkandImplementationPlan.February26,2015.Availableat:http://documents.dps.ny.gov/public/Common/ViewDoc.aspx?DocRefId={0B599D87-445B-4197-9815-24C27623A6A0}


meteringeligibility.Ifutilitieslinksystemsinthisway,caremustbetakentoprotectcustomerdataprivacy,sinceinstallerswillbeaccessingthecustomer’spersonaldata.ConEd(NY)haspurposefullyavoidedlinkingDGapplicationsystemswithcustomerbillingsystemstoprotectcustomerdata.39However,itispossibletodesignanintegratedsystemthatprotectscustomerdata.Utilitiesthatstillusepaperapplicationsshouldremoverequirementsforwetsignatures.Onlineapplicationsystemscanhelputilitiestoverifycustomerapprovalandpreventfraudwithoutrequiringwetsignatures.Additionally,wherepossible,utilitiesshouldallowuserstosubmitpaymentsonlineinadditiontoallowingonlineapplications.Someregulators,includingtheMinnesotaDepartmentofCommerce,haverequiredutilitiestoimplementonlinepaymentsystemsforDGapplications.40Intheabsenceofanonlinepaymentsystem,Eversource(CT)interconnectionstaffhasstatedthatlargerinstallerssometimessendinapplicationfeesinbatchesasapplicationsarestillbeingsubmitted,sothatthepaymentarrivesclosertothepointintimewhentheapplicationisreceivedbytheutility.41Otherutilitiesandinstallersmightconsiderworkingoutsimilararrangementswherepossible,butanonlinepaymentsystemistheidealsolution.Regulatorsandutilitiesshouldbegintomoveapplicationstoonlinesystems,andtoworkwithotherutilitiesandinstallerstounderstandandincorporatebestpracticesanddesignstandards.Policymakersmayconsiderimprovingcustomerinterconnectionexperiencesbyrequiringutilitiestocreateonlineapplicationssystems,toallowonlinepaymentforapplicationfees,andtoallowonlinesignatureverificationinplaceofwetsignaturerequirements.Ifsuchrequirementsareimplementedstatewide,regulatorscanstandardizeapplicationsystems,makingtheapplicationprocesseasier–andfaster–forinstallerstonavigate.

4.1.2.AdministrationandWorkflowUtilities’onlineapplicationsystemshavebeenautomatedtovaryingdegrees,butsimplyallowingapplicationstobesubmittedonlinedoesnotnecessarilyguaranteereducedstafftimeandcostsavings.Applicationsmustbedesignedtoimprovestaffefficiencies–nottoaddadditionalstepstothereviewprocess.Forexample,NewYorkutilitieshaveseparatedatabasesforcustomerdataandDGfacilitiesdata,butCentralHudsonGas&Electric’sdatabasesarenotintegrated,requiringutilityemployeestocopycustomerapplicationdatafromonedatabasetotheother.42Utilitieshavelongstandingprocessesinplaceforworkorders,servicerequests,customerpayments,etc.;changestoautility’sapplicationsystemthatdonotintegratewell39NewYorkStateEnergyResearchandDevelopmentAuthority.InterconnectionofDistributedGenerationinNewYorkState:AUtilityReadinessAssessment.September2015.Availableat:http://www3.dps.ny.gov/W/PSCWeb.nsf/96f0fec0b45a3c6485257688006a701a/dcf68efca391ad6085257687006f396b/$FILE/83930296.pdf/EPRI%20Rpt%20-%20Interconnection%20of%20DG%20in%20NY%20State-complete%20-%20Sept%202015.pdf40MinnesotaDepartmentofCommerce.E002/M-13-1015.“Decision.”November20,2015.Availableat:https://www.edockets.state.mn.us/EFiling/edockets/searchDocuments.do?method=showPoup&documentId={CA62C315-92FC-4A73-91C6-5A47B3A74AC4}&documentTitle=201511-115834-0141Frompersonalcommunicationwithutilitystaff.42NewYorkStateEnergyResearchandDevelopmentAuthority.InterconnectionofDistributedGenerationinNewYorkState:AUtilityReadinessAssessment.September2015.Availableat:http://www3.dps.ny.gov/W/PSCWeb.nsf/96f0fec0b45a3c6485257688006a701a/dcf68efca391ad6085257687006f396b/$FILE/83930296.pdf/EPRI%20Rpt%20-%20Interconnection%20of%20DG%20in%20NY%20State-complete%20-%20Sept%202015.pdf


intoexistingprocesseswillcomplicateworkflowandleadtoredundanciesandadministrativeheadaches.SolutionsEversource(CT)staffisworkingtomaketheutility’sonlineapplicationsystemmoreuser-friendlybyintegratingautomaticdataverification,andbytryingtoautomatemoreoftheprocessontheutility’ssidesothatprocessingislesslabor-intensiveforutilityemployees.EversourceexpectstoissueaRequestforProposalstomakesuchimprovementsin2016.43Likewise,ORUandConEd,inNewYork,haveintegratedtheircustomerandDGsystemdatabasessothatcustomers’applicationdatafeedsfromonetotheotherautomatically.44Themoredataverification,workorders,andinstaller/customercommunicationthatcanbeautomated,thelesstime-consumingtheprocesswillbeforutilitystaff.Withorwithoutanonlineapplication,NationalGrid(MA)andEversource(CT)staffstatedthatproperly-managedstaffworkflowisimportanttoprocessingapplicationsquickly.Bothhaveimplementedan“assembly-line”workflowforapplicationprocessing.NationalGrid(MA)stilldoesnotuseanonlineapplicationsystem;however,itusesadedicatedsoftwareprogramtomanageandtracktheprogressionofindividualinterconnectionprojects,andhasstreamlinedapplicationreviewthroughworkflowimprovements.45PG&E(CA)hasmodifieditsprocessessothatoneteamhandlesallinterconnectionscentrally,insteadofdifferentdepartmentshandlingdifferenttypesofsystems(e.g.,net-meteredsystemsvs.exportingsystems).Thismodificationhasmeantthatprocessimprovementsarerealizedbyallinterconnectionapplicants.46Thereisnoone-size-fits-allapproachtomaximizingstafftimeandresources;improvementstoemployeeworkflowandadministrationrequireflexibilityandresponsivenesstochangesintheindustry.47

4.1.3.ApplicationContentandClarityApplicationforms,regardlessofwhetherornottheyarepartofanonlineapplicationsystem,aresometimesreportedlyconfusingorredundant.InstallersinComEd(IL)territoryreportthatcertainquestionsintheapplicationsystemsareunclear,andthatclarificationfromtheutilityisoftenneededinordertocompleteapplications.Furthermore,whereutilitiesstillrequireamailedoremailedapplicationform,installersreportthatapplicationshavebeenrejectedbecausetheinstallerunknowinglyusedanout-of-dateapplicationform.48Installersinmanyserviceterritories,includingMohaveElectricCooperative(AZ)andIID(CA),reportthatinformationrequiredbyapplicationmaterialsisoftenredundant.49

43Frompersonalcommunicationwithutilitystaff.44NewYorkStateEnergyResearchandDevelopmentAuthority.InterconnectionofDistributedGenerationinNewYorkState:AUtilityReadinessAssessment.September2015.Availableat:http://www3.dps.ny.gov/W/PSCWeb.nsf/96f0fec0b45a3c6485257688006a701a/dcf68efca391ad6085257687006f396b/$FILE/83930296.pdf/EPRI%20Rpt%20-%20Interconnection%20of%20DG%20in%20NY%20State-complete%20-%20Sept%202015.pdf45Frompersonalcommunicationwithutilitystaff.46Ardani,K.andR.Margolis.NREL.DecreasingSoftCostsforSolarPhotovoltaicsbyImprovingtheInterconnectionProcess:ACaseStudyofPacificGasandElectric.September2015.Availableat:http://www.nrel.gov/docs/fy15osti/65066.pdf47Ibid.48Frominstallersurveyresponses.49Ibid.


SolutionsApplicationforms,regardlessofwhethertheyarepartofanonlineapplicationsystemornot,shouldbeclearandeasytounderstand.Onlineapplicationsystemscanhelptoreducetheneedforinstallersandcustomerstoenterredundantinformation,especiallywherecustomersareapplyingforinterconnection,netmetering,and/orincentivesallatthesametime.Additionally,especiallyforutilitiesthatareunabletoprovideanonlineapplicationsystem,applicationinformationandformsshouldbeup-to-dateandpubliclyavailabletoinstallersandcustomers.UtilitiescanalsopostFrequentlyAskedQuestions,holdwebinarsandtrainings,and/orpostinstructionalvideosandsampleformsinordertohelpnewinstallersunderstandtheutility’sprocessortohelpinstallersadapttochangestoregulationsandprocedures.Policymakerscanencouragemorestreamlinedinterconnectioninnumerousways,includingrequiringstandardizedformsacrossallutilities,settingstandardinterconnectionscreensforallutilities,andrequiringutilitiestopostapplicationchecklistsandup-to-dateformsonpublicwebsites.

4.1.4.IncentiveProgramDesignandAdministrationWhereutilitiesareprocessinginterconnectionrequestsaspartofanincentiveprogram,interconnectionprocessingtimelinescanalsodependheavilyonthedesignandmanagementoftheincentiveprogram.InstallersinDukeEnergyProgress(NC)territorystatedthatwhentheutilitywasprocessingapplicationsunderitsSunSenserebateprogram(nowexpired),applicationprocessingwasquickandeasy,whichmeantinterconnectionprocessingwassimpleaswell.Conversely,installersinIID(CA)territoryreportalong,complicated,andcostlyinterconnectionprocessthatcantakeasmuchasoneyearbeforeasystemisenergized.EvenafterarebatereservationisgrantedbyIID(amulti-monthprocess),acustomercanwaitovertwomonthsforanewmetertobeinstalled,andthenthecustomermustwaitlongertoreceivePTO–reportedlyuptothreemonths.Throughouttheprocess,theutilityisreportedlyunreachableandunresponsivetoinstallerandcustomercalls.50,51Thedesignofanincentiveprogramcanalsoimpacttheebbandflowofinterconnectionapplications,whichcanmakeitdifficultforutilitiestoplanforstaffingandresources.Forexample,autilitywithonlyoneincentiveapplicationperiodopenannuallyforabriefperiodoftime(e.g.,oneweekoronemonth)mayreceiveallofitsinterconnectionapplicationsfortheentireyearduringthatsamebriefperiod.Instatesorutilityterritorieswherethefutureofincentiveprogramsisuncertainorwhereincentivefundingismadeavailableinunpredictablechunks,utilitiesmaybeforcedtoendureboom-or-bustapplicationperiods.Utilitiescansometimescontractoutforadditionalhelpprocessingapplications,52butcontractworkersmaybelessfamiliarwiththerulesorprocessesinthatutility’sterritory,leadingtolessefficientprocessing.

50Frominstallersurveyresponses.51Roth,S.TheDesertSun.IIDcriticizedfor‘atrocious’customerservice.June9,2016.Availableat:http://www.desertsun.com/story/tech/science/energy/2016/06/08/iid-criticized-atrocious-customer-service/85586532/52NewYorkStateEnergyResearchandDevelopmentAuthority.InterconnectionofDistributedGenerationinNewYorkState:AUtilityReadinessAssessment.September2015.Availableat:http://www3.dps.ny.gov/W/PSCWeb.nsf/96f0fec0b45a3c6485257688006a701a/dcf68efca391ad6085257687006f396b/$FILE/83930296.pdf/EPRI%20Rpt%20-%20Interconnection%20of%20DG%20in%20NY%20State-complete%20-%20Sept%202015.pdf


SolutionsThetwocontrastingexperiencesdescribedabovehighlighttheimportanceofastreamlinedinternalutilitysystemforprocessinginterconnectionandrebateapplications,ofallocatingsufficientresources(includingstafftimetosupportincentiveprograms),andofawell-defined,transparentprocess.Policyandincentiveuncertaintyareknowntocauseproblemsforinstallersandcustomersinsolarmarkets,53butlawmakersandregulatorsshouldconsidertheimpactofpolicyuncertaintyand“stop-and-go”solarmarketsonutilityresourcesaswell.Incentiveprogramswithfundinglevelsthatdeclineovertimeoraregraduallydisbursedencouragemarketcertaintyandimprovedlong-termplanning.

4.2.ConsolidatingPre-andPost-ConstructionApprovalStateinterconnectionrulesgenerallyrequirebothpre-andpost-constructionapprovalbeforeasystemisenergized,thereforerequiringthecustomertowaitforutilityapprovalontwoseparateoccasions.Whilethisiscommonpractice,itaddswhatsomeconsidertobeanunnecessarydelayintheinstallationprocess,especiallyinstateswithmaturesolarmarketsandtechnicalsolutionsthatcanhelpexpeditetheinstallationprocess.SolutionsCalifornia’slargeinvestor-ownedutilities(IOUs)havestreamlinedtheinterconnectionprocess,allowingcertainPVsystemstoavoidthepre-constructionapprovalprocesspreviouslyrequiredforallsystems.SolarinstallersforcustomersofPG&E,SCE,andSDG&Ecanusetheutilities’respectiveonlinemaps(see“GridCapacityTransparency”sectionbelowfordetails)todeterminewherespecificsubstationsandfeederscanaccommodateadditionalsolarwithouttheneedforadditionalstudies.Usingthesetools,installerscanbeginconstructionwithoutwaitingforutilitypre-approval,expeditingtheinstallationprocessforstandard-designresidentialsystemsinterconnectingtonon-congestedgridlocations.Installersstillmayrequestapre-applicationreportorsubmitapre-constructionapplication,andsystemsnotmeetingCalifornia’sFastTrackrequirementsmuststillsubmitapre-constructionapplication.Eliminatingthepre-constructionapprovalrequirementhassignificantlyreducedinterconnectiontimelinesformanycustomers.54ThesepracticesinCaliforniademonstratethatpre-constructionapprovalmaynotalwaysbeanecessarypartoftheinterconnectionprocessforstandard-design,smallPVsystems.Transparentandup-to-datetoolsandinformation–suchasinteractive,onlinemapsdetailingthegrid’sabilitytoaccommodateadditionalsolarinstallations–canhelpexpeditetheinterconnectionprocessbyremovingunnecessarystepsandcanreducethenumberofapplicationsthatutilitystaffmustprocess.Whileaformalpre-applicationprocessmaystillbenecessaryforsomesystemconfigurationsorforgridlocationslesscapableofaccommodatingadditionalDG,consolidatingthepre-andpost-approvalprocessesremainsapromisingopportunitytoreducegridinterconnectioncostsinmanyutilityserviceterritories.

53Bird,L.,A.Reger,andJ.Heeter.NREL.DistributedSolarIncentivePrograms:RecentExperienceandBestPracticesforDesignandImplementation.December2012.Availableat:http://www.nrel.gov/docs/fy13osti/56308.pdf54Frompersonalcommunicationwithinstallersandutilitystaff.


4.3.RegulatingTimelinesAlthoughthemajorityofstateshaveadoptedinterconnectionstandardsforconnectingDGsystemstothegrid,suchrulesdonotalwayssetdeadlinesforutilitiestomeetforprocessingapplicationsorPTO.55Furthermore,statesoftensetguidelinesforIOUsonly,leavingcustomersofmunicipalutilitiesandelectriccooperativeswithoutclearexpectations.Evenwherestaterulesregardinginterconnectiondeadlinesdoexist,therulesareoftenvagueorincompletewithregardstotimelines,leavingpiecesoftheprocesswithoutadeadlinefortheutilitytomeet.TimelinesforPTOarecommonlyleftunspecified;manystates’rulesrelatedtograntingPTOoftensetatimebywhichautilitymustscheduleorconductawitnesstest,butoffernospecificsonhowlongautilitymaytaketograntPTOortochangeameter.Wheregapssuchastheseexist,applicationscansitforlongperiodsoftimewithoututilityconsideration.Themapbelowillustrateswhichstatesincludedinthesurveyhaveinterconnectionrules,andwhichofthoserulesincludetimelinesforpre-constructionandPTOapprovalforsystems10kWorlessasof2015(inordertocomparetherulestocustomerexperiencesrevealedinthesurvey).Forutilitiesincludedinthesurvey,pre-constructiontimelinemaximumsvaryfrom10to30businessdays(includingnotificationofreceipt,completeness,andapplicationofscreens),andPTOtimelinemaximumsvaryfromfiveto30businessdays.56Notably,Arizonaistheonlystateincludedinthesurveythathasnotadoptedstate-levelinterconnectionrules.(Otherstatesincludedinthesurvey,includingRhodeIslandandSouthCarolina,alsodidnothavebroadstaterulesasof2015,butstateregulatorshaverequiredutilitiesincludedinthesurveytofileandseekapprovalfortheirinterconnectiontariffs).Twostates,NewHampshireandOregon,haveadoptedstate-levelrules,buttherulesdonotclearlydefinedeadlinesforcriticalstepsintheinterconnectionapprovalprocess.Sevenstatesspecifypre-constructionapprovaltimelinesbutnotPTO,and11statessettimelinesforbothpre-andpost-constructionapproval.Threestates(Delaware,NewYork,andCalifornia)haveadoptedrulesthatdonotapplytoallutilitiescoveredinthesurvey,althoughmunicipalorcooperativeutilitiesnotsubjecttostaterulesmayhaveadoptedsimilarrules(Figure12).Severalinstallersexpressedaneedforstaterulestoincludeclearly-definedtimeframesforutilitiestoapproveordenyapplications,andtimeframesforutilitiestoinstallandre-programmeterswhennecessary.57

55VoteSolar.FreeingtheGrid.“StateGrades.”AccessedAugust2016.Availableat:http://freeingthegrid.org/56AssumingLevel1orsimplifiedinterconnectionwithouttheneedforsupplementalrevieworstudy.57Frompersonalcommunicationwithinstallerandsurveyresponses.


Figure12:StateRulesSettingInterconnectionApprovalTimelinesforSystems10kWorLess

Formanystatesincludedinthesurvey,staterulesallowapprovaltimelineslongerthanthetimelinesintheInterstateRenewableEnergyCouncil(IREC)’smodelinterconnectionprocedures.IREC’smodelrulesrecommendthatforfacilitieslessthan25kW,theutilityshouldacknowledgereceiptoftheapplicationwithinthreebusinessdaysandinformtheapplicantofwhetherornottheapplicationiscomplete.IREC’smodelallowssevenbusinessdaysfortheutilitytoreviewwhetherornotthesystempassesLevel1screens.Ifthesystemdoesnotrequiretheconstructionofadditionalfacilitiesbytheutility,aninterconnectionagreementshouldbeprovidedtotheapplicantwithinthreebusinessdays.Withinsixmonthsofformationoftheinterconnectionagreement,theapplicantshouldprovidenoticetotheutilityatleast10businessdaysbeforethesystem’santicipatedcommissioning,andautilitymaychoosetoinspectthesystemwithinthat10-daytimeframe.Theapplicantmaybeginoperatingthefacilityifthereisaninterconnectionagreementineffect,ifutilityhasreceivedproofofanelectricalcodeofficial’sapproval,andifthesystemhaspassedanyinspectionrequiredbytheutility.58Evenwhereutilitiesaresubjecttotimelinerules,manystaterules(e.g.,ColoradoandConnecticut)includeprovisionsthatrequireutilitiestomakea“reasonableeffort”tomeetdeadlines,butallowautilitytonotifythecustomeriftheutilityisunabletomeetadeadline,thusgivingutilitiesflexibilityinmeetingregulateddeadlines.59,60Whileexceptionsshouldbe58InterstateRenewableEnergyCouncil,Inc.ModelInterconnectionProcedures.April2013.Availableat:http://www.irecusa.org/publications/model-interconnection-procedures/594CodeColo.Regs.§723-3-3667(e).Availableat:https://www.sos.state.co.us/CCR/GenerateRulePdf.do?ruleVersionId=6747&fileName=4%20CCR%20723-3


madeforextenuatingcircumstances,broadlanguageleavestheresponsibilityforpushingapplicationsthroughtheprocessininstallers’andcustomers’hands.Instateswithorwithoutwell-defineddeadlinesforutilities,alackofcleardisputeresolutionprocedurescanmakethatprocessdifficult.Inaddition,aninstallermighthesitatetousedisputeresolutionproceduresorfileacomplaintwithstateregulatorsbecausetheinstallerdoesnotwanttocreatefrictionwithutilityinterconnectionstaffwithwhomtheyworkwithonaregularbasis,orbecausetheinstallerisawarethattheutility’sinterconnectionstaffisover-stretched.61Furtherexacerbatingthesepolicyissuesisthefactthatveryfewstatesrequireanyformofinterconnectiontimelineperformancereporting(includingCalifornia,Hawaii,Massachusetts,andNewYork).62Alackofenforceabletimelinesormechanismstoevenexamineautility’sperformanceleavesutilitieswithfewreasonstoprioritizeinterconnectionprocessingimprovements,leavesregulatorswithoutdatatobeabletoidentifyorquantifyproblems,andleavesinstallersandcustomerswithfewtoolstoadvocateforimprovements.SolutionsWhiletheIRECmodelrulesoffersomeguidance,legislatorsand/orregulatorsshouldworkwithutilitiesandstakeholderstosetreasonable,enforceabledeadlinesforutilitiestoprocessinterconnectionapplicationsandreportingrequirementsinordertomeasureperformance.Severalstateshaveenactedlegislationorupdatedregulationsregardinginterconnectiontimelinesin2016.InApril,theSouthCarolinaPublicServiceCommissionapprovednewinterconnectionstandardsforIOUs,whichrequireutilitiestoreviewinterconnectionapplicationswithin15businessdaysforsystems20kWorless.Afterinstallation,theutilitymustconductawitnesstestwithin20businessdaysafterreceivingaCertificateofCompletionfromthecustomer.63ArizonaenactedlegislationinMarch2016(furtherclarifiedinMay)whichallowsinstallerstobeginconstructiononaDGsystemiftheutilityhasfailedtoapproveordenytheapplicationwithin60daysafterthefilingdate.64,65Thisisnotanidealruleorbestpractice,asmostutilitiesareabletomeetmuchfasterdeadlines,butArizona’snewlawatleastprovidessomeguaranteeforinstallersandcustomers.Arizonaisalsocurrentlyundergoinganinterconnectionrulemaking;draftinterconnectionrulesproposedinJune2015includetimelinesforinterconnectionapproval.66

60ConnecticutLightandPowerCompanyandUnitedIlluminatingCompany.GuidelinesforGeneratorInterconnection.May12,2010.22.Availableat:https://www.uinet.com/wps/wcm/connect/189354804138460aaf4eef7a239a91d1/web_Guidelines+for+Generator+Interconnection+Fast+Track+and+Study+Process+-+5-12-10.pdf?MOD=AJPERES&CACHEID=189354804138460aaf4eef7a239a91d161Frompersonalcommunicationwithinstallers.62NREL.“DGICInterconnectionInsights.”May27,2015.Availableat:http://www.nrel.gov/tech_deployment/dgic_interconnection_insights_2015-03.html63PublicServiceCommissionofSouthCarolina.DocketNo.2015-362-E,OrderNo.2016-191.OrderAdoptingInterconnectionStandardandSupplementalProvisions.April26,2016.Availableat:https://dms.psc.sc.gov/Attachments/Order/11891e05-689d-4fe7-8816-c959480feb4e64ArizonaSenate.Act56.2016Session.March21,2016.Availableat:http://www.azleg.gov//FormatDocument.asp?inDoc=/legtext/52leg/2r/laws/0056.htm&Session_ID=11565ArizonaHouse.Act120.2016Session.May10,2016.Availableat:http://www.azleg.gov//FormatDocument.asp?inDoc=/legtext/52leg/2r/laws/0120.htm&Session_ID=11566ArizonaCorporationCommission.RE-00000A-07-0609.RequestforInformalComment.June16,2015.Availableat:http://images.edocket.azcc.gov/docketpdf/0000161063.pdf


Additionally,Marylandenactedlegislationin2016toestablishatimelimitforutilitiestoapprovePTOforsolarfacilities.UtilitiesmustgrantPTOwithin20businessdaysafterreceivingallrequireddocumentation.Maryland’snewlawalsorequiresutilitiestomeetthe20-daylimitforatleast90%oftheapplicationsprocessedeachyear.TheMarylandPublicServiceCommissionmaywaivetheserequirementsonashowingofgoodcause.67Maryland’sDelmarvaandPepcoarealsonowsubjecttoa20-business-dayPTOstandardasaresultofthemergerofPepcoHoldingsandExelonCorporation.Pepcoutilitiesinotherstateswillalsoberequiredtomeetthe20-business-daytimeline,includingPepcointheDistrictofColumbia,DelmarvainDelaware,andAtlanticCityElectric(ACE)inNewJersey(althoughACEisalreadysubjecttoashortertimelimitunderstaterules).68Regulatorsshouldimplementrulesrequiringutilitiestoreportinterconnectiontimelineperformancedata.Interconnectionperformancedatacanimproveutility-customerrelationships,allowregulatorstoidentifybarrierstomeetingpolicygoals,allowinstallerstobetterutilizetheirassetsandsetmorerealisticexpectationsforcustomers,andprovideadvocateswiththedataneededtopressforbetterprocesses.69Massachusettsisthefirstandonlystate(sofar)tocreatespecificfinancialpenaltiesforutilitiesthatfailtomeetinterconnectiontimeframes.TheMassachusettsDepartmentofPublicUtilitiesissuedanorderinJuly2014requiringdistributionutilitiestofileanInterconnectionTimelineEnforcementMechanismreport(TEM)annuallyonApril1.TheTEMmeasuresthedistributionutility’sperformanceundertheStandardsforInterconnectionofDistributedGenerationtariff,includingtheaveragenumberofbusinessdaysittakestoexecuteanearlyInterconnectionServiceAgreementorfinalInterconnectionServiceAgreement(asappropriate)aftertheapplicationwasreceived.Thedistributionutilityisassessedpenaltiesforfailingtomeetrequiredtimeframesinaggregate,butitmayalsoearnoffsetsthatmaybeusedagainstpenaltiesinthefollowingreportingyearifitsaverageinterconnectiontimesareshorterthanrequired.Anyassessedpenaltiesarebornebytheutility’sshareholdersandnotratepayers,withthefundsgoingtoMassachusetts’sgeneralfund.70Despitethisstatepolicy,WMECOhadthelongestPTOtimeofanyutilityincludedinthesurveyin2015.InaregulatoryproceedingtoevaluateWMECO’s2015AnnualInterconnectionTEMreport,WMECOattributedlongertimelinesforreviewingapplicationstoa“significantincreaseinapplicationsreceived”comparedtopreviousyears.SolarizeMassachusettsprogramswereheldinthreetownsinWMECOserviceterritory,andWMECOnotedthatitsstaffhadtospend67MarylandHouse.Chapter431.May10,2016.Availableat:http://mgaleg.maryland.gov/2016RS/Chapters_noln/CH_431_hb0440e.pdf68PepcoHoldings,LLC.PublicServiceCommissionofMaryland.CaseNo.9361.“InterconnectionofDistributedEnergyResources.”June21,2016.Availableat:http://webapp.psc.state.md.us/Intranet/maillog/content.cfm?filepath=C:\Casenum\Admin%20Filings\160000-199999\192949%5C9361-MergerConditions15and16062116.pdf69NREL.“DGICInterconnectionInsights:BenefitsAchievedbyPublicInterconnectionPerformanceReporting.”May27,2015.Availableat:http://www.nrel.gov/tech_deployment/pdfs/benefits-achieved-by-public-interconnection-performance-reporting.pdf70MassachusettsDepartmentofPublicUtilities.D.P.U.11-75-F.OrderonaTimelineEnforcementMechanism.July31,2014.Availableat:http://web1.env.state.ma.us/DPU/FileRoomAPI/api/Attachments/Get/?path=11-75%2fOrder.pdf


timeeducatingnewinstallersandnewemployees.71Atimelineenforcementmechanismdoesnotpreventinterconnectiondelays,butpubliclyavailabletimelinedataallowsutilities,regulators,andotherstakeholderstoidentifyproblemareasandpotentialsolutions.

4.4.IncreasingConsistencySolarinstallersmustnavigateamyriadoffederal,state,utility,andlocalregulationsforpermitting,interconnection,inspections,netmetering,licensing,etc.,makingitchallengingtomoveintonewserviceterritories.EspeciallyinstateswithnumerousutilitiesandwhereAHJshavewidely-varyingrequirementsforpermittingandinspections,theinterconnectionprocesscanbesignificantlydifferentfromtowntotown,makinginstallers’jobsunnecessarilycomplicated.Variationsinrequirementsandprocedurescanalsoexistbetweenthesametypesofutilitiesinthesamestate.Forexample,installersinConnecticutnotethatthestate’stwoIOUs,EversourceandUI,haveverydifferenttimelines,andthatUIrequiressignificantlymoreadditionalreviewsduringtheinterconnectionapprovalprocessandalwaysrequiresawitnesstest,whereasEversourcewaivesthewitnesstestafteracontractordemonstratesproficiency.Furthermore,Eversourceallowselectronicsignatures,butUIdoesnot.Eversourceordersameterforacustomerassoonastheinitialapplicationisapproved,whereasUIwaitsuntilafterthesystemisconstructed.AllofthesefactorsleadtoamuchfasterinterconnectiontimeinEversourceterritorycomparedtoUI.72SolutionsSolaradvocatesconsistentlyencouragethestandardizationofforms,processes,andrequirementsacrossjurisdictionswithinstatesandregionstomakeiteasierforinstallerstoexpandtheirserviceareaandtoreducethenumberofapplicationerrors.Regulators,AHJs,utilities,andstakeholdersshouldworkcollaborativelytomaketheseimprovementswherepossible,andutilitiesshouldmakesureproceduresareconsistentinternally.Asanexample,inNewYork,regulatorsarerequiringutilitiestoprovidestandardizedcontractformsandtermsaspartoftheREVproceeding.73Thereare,ofcourse,reasonswhydifferentjurisdictions’requirementswillvary.Forexample,inNewYork,ConEdhasahighlynetworkedgridstructure,whereasotherutilitieshaveprimarilyradialstructures.Forsomeutilities,islandingisthebiggestconcernwheninterconnectingDG,andforothers,voltageissuesaremoreprominent.Thesedifferencesresultindifferenttechnicalreviewprocessforutilitiesinthestate,whichcanmeandifferenttypesofupgrades

71MassachusettsDepartmentofPublicUtilities.D.P.U.16-43.WesternMassachusettsElectricCompanyd/b/aEversourceEnergyResponsetoInformationRequestDPU-1-3.July15,2016.Availableat:http://web1.env.state.ma.us/DPU/FileRoomAPI/api/Attachments/Get/?path=16-43%2fEversource_resp_DPU_Set1.pdf72Frompersonalcommunicationwithinstallers.73NewYorkStateEnergyResearchandDevelopmentAuthority.InterconnectionofDistributedGenerationinNewYorkState:AUtilityReadinessAssessment.September2015.Availableat:http://www3.dps.ny.gov/W/PSCWeb.nsf/96f0fec0b45a3c6485257688006a701a/dcf68efca391ad6085257687006f396b/$FILE/83930296.pdf/EPRI%20Rpt%20-%20Interconnection%20of%20DG%20in%20NY%20State-complete%20-%20Sept%202015.pdf


anddifferenttimelines.74However,wherestateregulatorsmustapproveinterconnectiontariffsandforms,theyshouldconsiderstandardizingelementssuchasapplicationforms,fees,contractformsandterms,applicationchecklistsandrequirements,deadlines,andengineeringstudyproceduresandrequirementswherepossible.

4.5.ImprovingCommunicationandTransparencyCommunicationandprocesstransparencyarecriticaltoasmoothinterconnectionprocess.Severalinstallersstatedthatthepaceoftheinterconnectionprocessingvariesdependingonthespecificstaffpersonhandlingtheapplicationorrespondingtoacall.75Installersinmanyutilityserviceterritories,includingIID(CA),WestPenn(PA),PSE&G(NJ),ConEd(NY),andDelmarvaandPepcoutilities(DC,MD,DE,NJ),allcomplainofutilitystaffthatisdifficultorimpossibletoreachattimes.76Theseproblemsarearesultofnumerousfactors,includinginsufficientresourcesandstafftimeavailableforapplicationprocessingandcustomerservice,administrativeorworkflowissues,alackofwell-defined,transparentprocesses,ortakinganapproachthatefficientinterconnectionprocessingissimplynotapriority.SolutionsUtilitystaff,installers,andadvocatesallsaythatthekeytoimprovingDGcustomerserviceistreatingDGcustomersliketraditionalcustomers–becausetheyaretraditionalcustomers–andallocatingtheappropriateresourcestoimprovingthecustomerexperience.InstallersreportingrelativelyfastinterconnectionapprovaltimesstatedthatstronginterpersonalrelationshipswithutilityinterconnectionstaffandAHJsarecrucialtosmoothandpromptprocessing.77SuchrelationshipsareonlypossiblewhereutilityandAHJemployeesareaccessibletoinstallers,whichrequiresufficientstafftimetobeallocatedtoprocessingapplicationsaswellasrespondingtoquestionsfrominstallersandcustomers.Well-designedonlineapplicationsystemscaneasesomeofthedemandforstafftimeneededforcommunication.Systemsthatprovideautomaticemailupdatesandallowcustomersandinstallerstocheckanapplicationstatusprovidecustomersandinstallerswithimportantinformationwithoutconsumingutilitystafftime.Inlieuofanonlineapplicationsystem(orinadditiontosuchasystem),utilitiesandregulatorscanincreasetransparencyandimprovecommunicationbyutilizingonlinepublicinterconnectionqueuesandreportinginterconnectiontimelineperformancedata.Apublicinterconnectionqueueprovidescustomersandinstallersaccesstoproject-specificdata;providestransparencyofapplicationpositionsandstatuses;andallowsforallstakeholders,includingresearchers,installers,andregulators,toseetheamountofpotentialgeneration

74NewYorkStateEnergyResearchandDevelopmentAuthority.InterconnectionofDistributedGenerationinNewYorkState:AUtilityReadinessAssessment.September2015.Availableat:http://www3.dps.ny.gov/W/PSCWeb.nsf/96f0fec0b45a3c6485257688006a701a/dcf68efca391ad6085257687006f396b/$FILE/83930296.pdf/EPRI%20Rpt%20-%20Interconnection%20of%20DG%20in%20NY%20State-complete%20-%20Sept%202015.pdf75Fromsurveyresponses.76Frominstallersurveyresponsesandpersonalcommunications.77Frompersonalcommunicationwithinstallers.


comingonline.78Whilemanystateshavebegunusinginterconnectionqueues(withvaryinglevelsofdetailandfrequency),fewstates(includingCalifornia,Hawaii,Massachusetts,andNewYork)requireutilitiestoreportinterconnectiontimelinedata.79Asdiscussedabove,requiringutilitiestoreportinterconnectiontimelinedatacanimproveutility-customerrelationships,allowregulatorstoidentifybarrierstomeetingpolicygoals,allowinstallerstobetterutilizetheirassetsandsetmorerealisticexpectationsforcustomers,andprovideadvocateswiththedataneededtopressforbetterprocesses,amongotherbenefits.80Inadditiontoimprovedcommunicationbetweeninstallers,customers,andutilities,utilityinterconnectionstaffcanalsobenefitfromcommunicationwitheachother.Performancereportingcanhelputilitiesindifferentjurisdictionslearnfromeachother;utilitystaffreportedthattheyhavelearnednewmethodsofimprovingtheirprocessesbyspeakingwithotherutilitystaff.81ThismaybeespeciallytrueforutilitiesbeginningtoexperiencemoreDGgrowth;thoseutilitiescanlearnfromtheexperiencesofotherutilitieswithhigherDGlevels.Regulatorscanhelptoencouragesuchconversationsandlearningexperiencesbycommissioningreportsandevaluationstoassessoptionsforimprovinginterconnectionprocesses,orbyarrangingworkshopsforutilitystaff.

4.6.CoordinatingwithLocalJurisdictionsTypically,inorderforautilitytograntPTO,theutilitymustwaitfortheapprovalofbuildingand/orelectricalpermitsandinspectionsfromoneormorelocaljurisdictions.Thetimelinesandrequirementsvarybyjurisdiction,evenwithinasingleutility’sserviceterritory.UtilitystaffstatedthatsomeAHJsaremorewilingthanotherstoadaptandworkwiththeutility,whichcontributestovaryingcustomerexperiences.82MiscommunicationordelaysbetweentheAHJsandtheutilitycancontributetodelayedPTO.Forexample,installersinDukeEnergyCarolinas(NC)territorystatedthatinspectionpaperworksentfromAHJstotheutilityis“always”lost,requiringinstallerstoasktheAHJtoresendthepaperworktoDuke–sometimesuptothreetimes.83SolutionsUtilitystaffstatedthatcoordinationwithAHJsiscrucialforstreamlininginterconnection,especiallyforgrantingPTOquickly.84Eversource(CT)andPG&E(CA)havebothbeenincorporatingchangesintotheirprocedurestostreamlinetheapprovalprocessbetweenAHJsandfinalutilityapproval.Whentheinitialinterconnectionapplicationisapproved,Eversource(CT)assignstheinstalleraworkrequestnumbertosubmittothelocalbuildinginspector.Eversourceallowsthelocalbuildinginspectorsaccesstoanonlineportalwherethebuilding

78NREL.“DistributedGenerationInterconnectionCollaborative(DGIC).”June3,2015.Availableat:http://www.nrel.gov/tech_deployment/pdfs/2015-06-03_improving-data-transparency-for-distributed-pv.pdf79NREL.“DGICInterconnectionInsights.”May27,2015.Availableat:http://www.nrel.gov/tech_deployment/dgic_interconnection_insights_2015-03.html80NREL.“DGICInterconnectionInsights:BenefitsAchievedbyPublicInterconnectionPerformanceReporting.”May27,2015.Availableat:http://www.nrel.gov/tech_deployment/pdfs/benefits-achieved-by-public-interconnection-performance-reporting.pdf81Frompersonalcommunicationwithutilitystaff.82Ibid.83Frominstallersurveyresponses.84Frompersonalcommunicationwithutilitystaff.


inspectorcanusetheworkrequestnumbertoindicatethataninspectionhasbeencompleted.Uponreceiptofthatnotification,Eversourcecanscheduleameterexchange,speedingupPTOapproval.85PG&E(CA)isworkingtowardagoalofsame-dayPTOapproval(i.e.,grantingPTOwithinonedayofthesubmissionofabuildingpermitapplication)aspartoftheU.S.DepartmentofEnergy(DOE)SunShotInitiative’sRaceto7DaySolarcompetition.86Currently,inmostjurisdictions,anAHJengineermustvisitaprojectsite,andthensignallrelevantpermitsorapprovals.Theengineerprovidesthepaperworktotheinstaller,whomustmailorscanandemailtheformstotheutility.PG&Emustthenreviewthepaperworkforaccuracyandcompleteness.ThegoalofthePG&ESunShotprojectistoallowtheengineertoaccesstheutility’ssoftwaredirectlyandnotifytheutilityofpermitapprovalimmediately.87TheseexamplesofimprovementsrelyonAHJparticipationandattentiveness.Eversource(CT)staffstatedthatontherareoccasionwhenaninspectorforgetstonotifyitthattheinspectionhasbeencompleted,theutility’sstaffdoesnotknowthatitshouldhavereceivednoticefromtheinspector.Thecurrentsystemrequiresinstallerstoaccesstheonlinesystemtoconfirmthatthisstephasbeencompleted.Eversourcestaffstatedthatithopestoimprovetheonlinesystemtoallowinstallerstomonitoralloftheirprojectsmoreefficiently.88Implementingthesetypesofimprovementsrequireswillinglocalgovernmentstaff.Furthermore,whenautomatingcoordinationbetweenAHJsandutilities,caremustbetakentopreventfraudandtoprotectconsumerdata.Utilitystaffstatedthatpaperpermitshavehistoricallybeenrequiredforallelectricalworkinordertopreventfraud.NewsystemsthatallowforonlineapprovalmustbedesignedtoverifythatacertifiedAHJengineerhasindeedapprovedtheproject.89Additionally,allowingoutsidepartiesaccesstoanonlinedatabasethatmightcontaincustomerdatameansthatcaremustbetakentorestrictdatabaseaccesssothatcustomerdataisaccessibleonlytothosewithexplicitpermission.Regulatorsshouldensurethatcustomerdataprivacyisprotectedwheneverdataisaccessiblethroughonlinedatasystems.Furthermore,regulatorsandindustryadvocatesmaybeabletofacilitatecoordinationbetweenAHJsandutilitiesthroughpilotprogramsorworkshops.

4.7.ExpeditingMeterExchangeInstallersreportedthatdelaysoftenoccurwhenthecustomeriswaitingfortheutilitytochangeouttheirmeter.Forexample,installersinDukeEnergyCarolinas(NC)serviceterritoryreportthatwhenacustomer’smetermustbereplacedwithabi-directionalmeter,thatprocesscantakeuptoamonth.InstallersinIID(CA)serviceterritoryreportthatthisprocessalonecantakeuptotwomonths.90

85Frompersonalcommunicationwithutilitystaff.86DOE.SunShotPrizeTeams.Availableat:http://energy.gov/eere/sunshot/sunshot-prize-teams87Frompersonalcommunicationwithutilitystaff.88Ibid.89Ibid.90Frominstallersurveyresponses.


SolutionsRegulatorscanencourageaspeedymeterexchangebycreatingadeadlinespecificallytoaddressthisprocessintheinterconnectionrules.Asanexample,forsystemsintheexpeditedprocessinNewYork,theutilitymustinstallanewmeterwithin10businessdaysofapplicationapproval.91UtilitiescanproactivelyidentifywheremoreresourceswillbeneededasthenumberofDGinstallationsrises,especiallywherepolicychangesorincentiveprogramsthatencourageDGareimplemented.Pepcoisconsideringimprovementstothemeterexchangeprocessforitsserviceterritories,includingcompletingtheexchangeearlierinthenetmeteringapplicationprocess,andimplementingover-the-airmeterreprogrammingsothatutilitypersonneldonothavetomakeanadditionaltriptothecustomer’ssite.92Eversource(CT)staffnowordersameterassoonasitreceivesanapplicationforasystemupto10kWsothatthemeterisreadywhenthesystemfinishesconstruction,achangethathashelpedEversourcekeepupwithrapidlyincreasinginterconnectionrequests.93Utilitiesinareaswheresolarinstallationsareexpectedtoincreaseasaresultofpolicychangesorincentiveprogramsshouldtakemeasurestoprepareforincreasedapplicationprocessing,inspections,andmeterinstallations.

4.8.IncreasingGridCapacityTransparencyAsDGsystemsbecomemorecommonacrossthecountry,moreapplicantswillencountergridcapacityissues,absentinvestmentsingridimprovementsthatkeeppacewithDGgrowth.Evensmallsystemsarebeginningtoraiseflagsduringthereviewprocessinsomestates,requiringexpensivestudyproceduresorupgradesthatrenderresidentialprojectsinfeasible.Asthegridbecomesmorecongested,systemsthatcanbeconnectedwithoutfurtherstudyorupgradesstilloftentakelongerfortheutilitytoprocess,makingitdifficultforinstallerstosetexpectationsforcustomers.Forexample,a20-kWprojectmightspeedthroughtheinterconnectionprocessinonelocation,whileanearby3-kWsysteminthesameutility’sserviceterritoryisheldupinreviewforweeks.94Unlessutilitiesprovidegridcapacitydata,eitherpubliclyordirectlytoinstallers,installerscannotpreparecustomersforthepossibilityofcostlyupgradesanddelaysoravoidmorecongestedareasofthegrid.InDukeEnergyProgressandDukeEnergyCarolina(NC)serviceterritory,installershaveencounteredproblemsrelatedtogridcapacitytransparency.SurveyedinstallersexpressedconcernregardinganewinterconnectionrequirementcreatedforlargeDGinstallations,implementedwithoutapprovalfromtheNorthCarolinaUtilitiesCommission.InJune2016,DukeEnergyinformeddevelopersthatitscustomershaveexperiencedpowerqualityissues,

91NewYorkStateEnergyResearchandDevelopmentAuthority.InterconnectionofDistributedGenerationinNewYorkState:AUtilityReadinessAssessment.September2015.Availableat:http://www3.dps.ny.gov/W/PSCWeb.nsf/96f0fec0b45a3c6485257688006a701a/dcf68efca391ad6085257687006f396b/$FILE/83930296.pdf/EPRI%20Rpt%20-%20Interconnection%20of%20DG%20in%20NY%20State-complete%20-%20Sept%202015.pdf92PepcoHoldings,LLC.PublicServiceCommissionofMaryland.CaseNo.9361.“InterconnectionofDistributedEnergyResources.”June21,2016.Availableat:http://webapp.psc.state.md.us/Intranet/maillog/content.cfm?filepath=C:\Casenum\Admin%20Filings\160000-199999\192949%5C9361-MergerConditions15and16062116.pdf93Frompersonalcommunicationwithutilitystaff.94Frompersonalcommunicationwithinstallers.


potentiallybecauseoflargegeneratorsconnectedto“weakareasofthedistributionsystem.”95InJuly2016,DukeEnergybeganapplyinga“circuitstiffnessreview”inanattempttopreventthesepowerqualityissues,andnotifiedcustomersintheinterconnectionqueuewhosesystemsfailedthenewrequirement.ThestiffnessfactorcalculatedinthecircuitstiffnessreviewreliesondataonlyaccessibletoDukeEnergy.96,97SolutionsOneofthemainimprovementsthatregulatorscanadopttofacilitatesmootherDGintegrationistoprovideinstallerswithtimelygridcapacityinformationsothatdeveloperscananticipateandworkaroundproblemareas.Someutilities,includingPG&E(CA),SDG&E(CA),andNationalGrid(MA),haveintegratedprocessestoautomaticallycheckforpotentialgridreliabilityandsafetyconcernsaspartoftheinitialapplicationreview.Checkingforconcernsearlyintheapplicationprocesscansaveutilitiesandinstallerstimeandmoneybyavoidingthecostofengineerlabortoreviewpotentialconcerns.98Additionally,asdescribedinthe“ImprovingCommunicationandTransparency”sectionofthisreport,allinterconnectionrequirementsandreviewscreensshouldbeclearandpubliclyavailable.Tohelpinstallerssetexpectationsoravoid“problem”areasonthegrid,utilitiesandregulatorscangoastepfurtherandcommunicatetoinstallersinformationregardingspecificareasofthegridwherereliabilityissuesarebecomingaconcernbeforeinterconnectionapplicationsaresubmitted.Anincreasingnumberofutilitiesnowofferinteractive,web-basedmapsthatallowinstallerstoeasilyidentifygeographicareaswherenewDGfacilitiescouldencounterproblemsreceivingapprovalforinterconnectionasaresultofcapacityissues.99Forinstance,NewYorkutilitiesprovideonline,dynamicmapsthatindicatewherefacilitiesofcertainsizesmightrunintotroubleintheinterconnectionprocess,requiringpotentiallycostlyupgrades(Figure13).100InCalifornia,PG&E,SCE,andSDG&EpublishedonlineinterconnectionmapsinJuly2015aspartoftheongoingDistributionResourcesPlanproceeding.ThemapsincludeIntegrationCapacityAnalysis,whichestimatesthecapabilityofeachcircuittointegrateDG.101SCE’smapprovidesausablesearchfunctionandinteractivefeaturesthatallowuserstoclickthesubstationorcircuittolearnaboutcurrentcapacity,queuedcapacity,currentpenetrationlevel,maximumremainingcapacity,andwhetherpreviousinterconnectionstudiesintheareahaveidentifiedadequatedeliverability(Figure14).102

95Frompersonalcommunicationwithinstallers.96DukeEnergyCarolinas,LLCandDukeEnergyProgress,LLC.NorthCarolinaPublicUtilitiesCommission.DocketNo.E-100,Sub101.“SettlementAgreement.”August29,2016.Availableat:http://starw1.ncuc.net/NCUC/ViewFile.aspx?Id=34f82d71-19a7-4ef5-a039-7b621e60b65d97frompersonalcommunicationwithinstallers.98Frompersonalcommunicationwithutilitystaff.99Thedevelopmentofresourcesofthistypeisaniterativeprocess,andcurrenteffortsvaryconsiderablyIntermsofwhatinformationtheyprovide,themethodologyunderlyingthatinformation,andhowitisrepresented.100Seeforexample,NewYorkStateGas&ElectricandRochesterGas&Electric.DistributedInterconnectionGuideMap.AccessedAugust2016.Availableat:http://iusamsda.maps.arcgis.com/apps/webappviewer/index.html?id=93c86fbf9fbc47219f34aa303a724257101CaliforniaPublicUtilitiesCommission.DistributionResourcePlan(R.14-08-013).AccessedAugust2016.Availableat:http://www.cpuc.ca.gov/General.aspx?id=5071102SCE.DistributedEnergyResourceInterconnectionMap.AccessedAugust2016.Availableat:http://www.arcgis.com/home/webmap/viewer.html?webmap=e62dfa24128b4329bfc8b27c4526f6b7


Figure13:NYSEGandRG&EDistributedInterconnectionGuideMap103

103NewYorkStateGas&ElectricandRochesterGas&Electric.DistributedInterconnectionGuideMap.AccessedAugust2016.Availableat:http://iusamsda.maps.arcgis.com/apps/webappviewer/index.html?id=93c86fbf9fbc47219f34aa303a724257


Figure14:ScreenshotsofContrastingInterconnectionOpportunitieswithinSCEServiceTerritory(Blueboxes

indicatesubstations)104

InMaryland,Pepcoprovidesaninteractiveinterconnectionmapthatindicateswhencircuitsarerestricted.105Liketheaforementionedexamples,Pepco’smapincludesasearchfunctionthatallowsuserstoenteranaddresstodetermineifrestrictionscouldapplytoaspecificresidence.However,incontrasttoutilitymapsavailableinCalifornia,Pepco’smapsdonot

104SCE.DistributedEnergyResourceInterconnectionMap.Availableat:http://www.arcgis.com/home/webmap/viewer.html?webmap=e62dfa24128b4329bfc8b27c4526f6b7105PepcoHoldingsCompany.RestrictedCircuitsMap.Availableat:http://www.pepco.com/Restricted-Circuit-Map.aspx


providemorespecificdata;theyonlyallowforacursoryvisualidentificationofwhetheranareaispartofarestrictedcircuit.Utilitiesandregulatorsshouldworktomakegridcapacityinformationavailabletodeveloperssothattheycanavoidareasofconcernwhenpossibleorpreparecustomersforthepossibilityofcostlyupgradesordelays,andsothatutilityemployeesdonothavetospendvaluablestafftimereviewingapplicationsforsystemsthatultimatelycannotbeinstalled.

4.9.PreparingforIncreasedDGPenetrationAttherootofalloftheissuesrelatedtotheDGinterconnectionprocessisthefactthattheexistingelectricdistributiongridwasnotoriginallydesignedwithDGinmind.Duringthelastseveralyears,electricindustryparticipantshavebeguntorecognizethatthedistributionplanningprocessmustchangeinordertorealizethetruelong-termpotentialofDGandothercustomer-siteddistributedenergyresources(DERs).AsaptlystatedinarecentreportpublishedbytheElectricPowerResearchInstitute(EPRI),“Torealizefullythevalueofdistributedresourcesandtoserveallconsumersatestablishedstandardsofqualityandreliability,theneedhasarisentointegrateDERintheplanningandoperationoftheelectricitygridandtoexpanditsscopetoincludeDERoperation.”106Similarly,SolarCity,oneofthenation’sleadingDGproviders,hasproposedanIntegratedDistributionPlanningframework,characterizedasaninterminglingofimprovementstointerconnection,planning,sourcing,anddata-sharingprocesses,allofwhicharecriticaltoexpandingconsumeraccesstoDG.107Thevisionofan“integratedgrid”aspresentedinbothreportsinvolvesashiftinfocusawayfromthinkingofDGasalooseappendagetotheexistingsystem,andinsteadtoaholisticapproachthatrecognizesDGasanintegralpartandcontributortothesystem.Withrespecttointerconnectionspecifically,integrateddistributionplanningtakeswhatoftenamountstoa“squarepeg,roundhole”setofissues(i.e.,apoororinefficientfit)andseekstoadjustbothpiecestomakethemmoreflexibleandcompatiblewithoneanotherthroughproactiveplanning.SolutionsReformeffortsarecurrentlyunderwayinnumerousstates,largelythosewithrapidconsumeruptakeofDG.Mostprominentlyandfar-reachingamongtheseeffortsareproceedingsinHawaii,108California,109andNewYork,110althoughseveralotherstateshavebegunconsideringsimilar“gridmodernization”efforts.111

106EPRI.TheIntegratedGrid:RealizingtheFullValueofCentralandDistributedEnergyResources.February2014.Availableat:http://integratedgrid.com/category/resources/107SolarCity.IntegratedDistributionPlanning:AHolisticApproachtoMeetingGridNeedsandExpandingCustomerChoicebyUnlockingtheBenefitsofDistributedEnergyResources.September2015.Availableat:http://www.solarcity.com/company/distributed-energy-resources108HawaiiPublicUtilitiesCommission.DocketNo.2014-0192.InstitutingaProceedingtoInvestigateDistributedEnergyResourcePolicies.Otherrelatedandcomplementaryproceedingsarealsoinprocess,mostnotablytheconsiderationofutilityPowerSupplyImprovementPlansinDocketNo.2014-0183.109CaliforniaPublicUtilitiesCommission.DocketNo.R.14-08-013.OrderInstitutingRulemakingRegardingPolicies,ProceduresandRulesforDevelopmentofDistributionResourcesPlansPursuanttoPublicUtilitiesCodeSection769.Inpractice,thisproceedingisinformedbyandwillinformamultitudeofotherproceedingsaffectingDG,suchasDocketNo.R.14-10-003addressingthestate’soverallDGregulatoryframeworkandpolicy.


TheNewYorkproceeding,deemed“ReformingtheEnergyVision”(REV),standsoutinparticularasanexampleofproactivepolicymakingbecauseitwasestablishedasaspecificoverarchinginitiativeuntoitself(i.e.,notapiecemealapproach),andbecauseitwasinitiatedinanticipationofDGgrowth–ratherthanafterthefactandinresponsetoseriousDGintegrationissues(aswasthecaseinHawaii).WhilethescopeoftheREVproceedingisextremelybroad,underpinningtheoverallvisionaresignificantsub-elementsfocusedonimprovingDERinterconnectionprocessesandtheabilityofthegridtosupportandproperlyvaluethecontributionsofDERstothesystem.InFebruary2015,theNewYorkPublicServiceCommissionestablishedthepolicyframeworkforthislengthyprocess,which,amongotherthings,requiredutilitiestofileDistributionSystemImplementationPlans(DSIPs)layingoutnearandlong-termstrategiesforDERintegration.112TheinitialDSIPs,whichwerefiledinJune2016andwillberefinedovertime,addressnumerousareasrelatedtoDERintegration,including:113

• Theestablishmentofautomated,onlineinterconnectionapplicationprocessingandtrackingsystems

• Thedevelopmentofgranulardataandtoolsthatallowdeveloperstobetterunderstandandvisualizesystemconstraints,localhostingcapacity,andlocationswhereDERscouldprovidethegreatestgridbenefits

• Theuseofadvancedmeteringinfrastructure(AMI)andothertechnologiestosupportsystemplanningandenhanceDERmarketopportunities

• ReviseddistributionsystemplanningprocessesthatincorporateDERforecastsintotheidentificationofsystemneedsandofferopportunitiesforso-called“non-wiresalternatives”(NWA)projectstoprovideservicesthatavoidordefertraditionalgridupgradecapitalinvestments

• Amethodologyforapplyingbenefit-costanalysestoutilityexpenditures,includingtheevaluationofDERprocurementthroughcompetitiveprocessesorstandardoffertariffs

Thusfar,NewYork’sREVproceedingandproceedingsinCaliforniaandHawaiiarestilllargelyintheirearlystages.Progresshasbeenmadeonsomeelements,suchasthepublicationofinformationongridlocationswhereDGislikelytotriggerupgrades,butultimately,manyoftheobjectiveswilltakemuchlongertoaccomplish.Forthatreason,andgiventhelongtimehorizonsinvolvedindistributionplanning,itiscriticalthatregulatorsbegincomprehensiveproceedingslikethesesoonerratherthanlater.

110NewYorkPublicServiceCommission.DocketNo.14-M-0101.ProceedingonMotionoftheCommissioninRegardtoReformingtheEnergyVision.111ThesestatesincludebutarenotlimitedtoConnecticut,theDistrictofColumbia,Massachusetts,Minnesota,andRhodeIsland.Theseproceedingstendtobenarrowerinscopeordonotfeaturethetangibleorwell-definedoutcomesexpectedinHawaii,California,andNewYork.112NewYorkPublicServiceCommission.DocketNo.14-M-0101.OrderAdoptingRegulatoryPolicyFrameworkandImplementationPlan.February26,2015.Availableat:http://documents.dps.ny.gov/public/Common/ViewDoc.aspx?DocRefId={0B599D87-445B-4197-9815-24C27623A6A0}113ThesefilingsareavailableintheREVdocket(DocketNo.14-M-0101),thoughgiventhebreadthofREVtheCommissionhasbegundesignatingnewdocketstoaddressindividualREVareas,includingestablishingnewdocketsforconsiderationofutilityDSIPs(DocketNo.16-M-411)andutilitycost-benefithandbooks(16-M-0412).


5.RecommendationsPolicymakers,regulators,utilities,installers,andcustomerscanworktogethertomakeimprovementstotheinterconnectionprocessthatwillreduceinterconnectiontimelines,lowercosts,andimprovecustomerexperiences.Basedonthefindingsofthisstudy,wepresentaseriesofrecommendationsforpolicymakers,utilities,andinstallers,describedbelow.

5.1.Policymakers

1. Legislatorsandregulatorsshouldconsiderrequiringonlineapplicationandpaymentsystems,requiringstandardizedapplicationforms,andrequiringutilitiestopostapplicationchecklistsandup-to-dateformsandinstructionsonpublicwebsites.Requirementsforwetsignaturesshouldberepealed.

2. Regulators,AHJs,andutilitiesshouldcollaboratetostandardizeapplicationprocedures,requirements,andformsacrossdifferentjurisdictionswherepossible.PolicymakersandAHJsshouldimplementpoliciesandprocedurestoexpeditepermittingandinspectionsforPVsystems,whileutilitiesandAHJsshouldcoordinatetostreamlinepermittingandinterconnection.

3. RegulatorsandutilitiesshouldworktocombineinterconnectionapplicationsandPTOwherepossible,keepinginmindthepotentialforcostsavingsandimprovedcustomersatisfaction.

4. Legislatorsandregulatorsshouldconsidertheimpactofpolicyandincentiveprogramuncertaintyand“stop-and-go”incentiveprogramsonutilityresourceswhendesigningpoliciesandincentiveprograms,andfavorlong-termstepdownsorgradualfundingdisbursementsoverotherincentiveprogramdesigns.

5. Legislatorsandregulatorsshouldsetclear,firmdeadlinesforutilitiestoapproveinterconnectionapplications,exchangemeterswhennecessary,andgrantPTOafterallpaperworkandinspectionsarecompleted,andshouldconsiderreducingthosetimelineswhenpossible.

6. Regulatorsshouldrequireutilitiestopostinterconnectionqueueswithclearprojectstatusinformation.Policymakersshouldrequireregularinterconnectiontimelineperformancereports.

7. Regulatorsshouldrequireutilitiestomakegridcapacitymapsordataavailabletoinstallerssothatinstallersareawareofpotentialproblemareasinadvance.Furthermore,regulatorsshouldincorporateastrategyforaccommodatingincreasinginterconnectionapplicationsaspartoflargerdistributionplanningandgridmodernizationprocesses.

8. Regulators,utilities,AHJs,installers,andcustomerscanallbenefitfromtheexperiencesandlessonslearnedinotherjurisdictionsandfromcommunicationamongstakeholders.Eachoftheseindustryparticipantscanencourageandfacilitateworkshops,webinars,trainings,andothereducationandoutreachactivitiestoenablesuchlearningexperiences.Newpoliciesandproceduresshouldalwaysbeaccompaniedbyeducationandoutreachefforts.


5.2.Utilities

1. Utilitiesshouldconsidervoluntarilyimplementingonline,automatedapplicationsystemstosimplifyapplicationandapprovalprocesses.Utilitiesshouldcreateonlinepaymentoptionsforcustomers.Requirementsforwetsignaturesshouldberepealed.

2. Utilitiesthatdonotimplementonlinesystemsshouldsystematicallyimprovetheirsystemsandprocessestofacilitatebettercommunicationbetweencustomers,installers,andutilitystaff.Changestoapplicationproceduresandrequirementsshouldtakeintoaccountutilityemployeeworkflowandadministrativeprocedures,andchangestointernalproceduresshouldbeconsidered.Utilitiesshouldensurethatappropriatestafftimeandresourcesareallocatedtointerconnectiondepartmentsespeciallywhereapplicationnumbersarerising.

3. UtilitiesandregulatorsshouldworktogethertocombineinterconnectionapplicationsandPTOwherepossible,keepinginmindthepotentialforcostsavingsandimprovedcustomersatisfaction.

4. UtilitiesshouldcollaboratewithregulatorsandAHJstostandardizeapplicationprocedures,requirements,andformsacrossdifferentjurisdictions,andtostreamlinepermittingandinterconnectionprocesseswherepossible.

5. Automaticscreeningforgridreliabilityandpenetrationissuesshouldbebuiltintoutilities’onlineapplicationsystems,andpre-applicationstudiesshouldbemadeavailabletocustomers,especiallyinhigherDGpenetrationareas.

6. Utilitiesshouldmakegridcapacitymapsordataavailabletoinstallerssothatinstallersareawareofpotentialproblemareasinadvance.

7. Utilitiesshouldensurethatanappropriatenumberofmetersareinstockandconsiderinitiatingthemeterexchangeprocessearlierintheinterconnectionprocess.

8. Regulators,utilities,AHJs,installers,andcustomerscanallbenefitfromtheexperiencesandlessonslearnedinotherjurisdictionsandfromcommunicationamongstakeholders.Eachoftheseindustryparticipantscanencourageandfacilitateworkshops,webinars,trainings,andothereducationandoutreachactivitiestoenablesuchlearningexperiences.Newpoliciesandproceduresshouldalwaysbeaccompaniedbyeducationandoutreachefforts.

5.3.Installers

1. Installersshouldsystematicallytrackutilityresponsetimesinordertoprovidesolarindustrystakeholders,utilities,andregulatorswithclearexamplesofproblemsintheinterconnectionprocess,ultimatelytoinformpolicymaking.

2. Regulators,utilities,AHJs,installers,andcustomerscanallbenefitfromtheexperiencesandlessonslearnedinotherjurisdictionsandfromcommunicationamongstakeholders.Eachoftheseindustryparticipantscanencourageandfacilitateworkshops,webinars,trainings,andothereducationandoutreachactivitiestoenablesuchlearningexperiences.


6.ConclusionsAsutilitiescontinuetoseestronggrowthindistributedsolarandaspolicymakerscontinuetoexpandrenewableenergygoals,interconnectiondelayswilllikelyremainaproblemfortheforeseeablefuture.DelaysinconnectingPVsystemstothegridarecostlytoconsumersandinstallers,andtheyhinderstateandlocaleffortstomovetowardacleanenergyeconomy.Utilitiesandpolicymakerscanworktogethertostreamlineinterconnectionprocessingbyimprovingregulationsandapplications,transitioningtoonlineapplicationsystems,andallocatingsufficientutilityresources.Furthermore,regulatorscanbegintostreamlinetheinterconnectionofhighlevelsofPVbyallowinginstallerstoaccessgridcapacitymapsordataandbyinitiatingcomprehensiveDGintegrationproceedingsaspartofdistributionplanningprocesses.Althoughinterconnectiondelayscontinuetoincrease,technologicaladvancementsandpolicychangesarebeginningtoimprovetheprocessforcustomers,utilities,andinstallers.SmartpolicymakingandcollaborativeimprovementstoDGintegrationprocesseswillmakeinterconnectionproceduresmorestreamlinedandlessburdensometoallstakeholders.


AppendixA2014and2015AveragePre-ConstructionApprovalTimes,NumberofApplicationsReportedbyInstallers,andTimeLimitsonPre-ConstructionApprovalTimeLimits

RequiredbyStateRules,SortedbyFastestProcessingTimein2015.TimelimitsperstaterulesassumebasicfasttrackorLevel1interconnectionnotrequiringadditionaldistributionequipmentinstallationsormodifications.Numberof

applicationsreporteddoesnotrepresenttotalofnumberofapplicationsreceivedbytheutility.Utility 2014

ApplicationsReported

2015ApplicationsReported

2014Pre-ApplicationApprovalTime(#ofDays)


PercentageIncreaseorDecreasefrom2014

ApplicationApprovalMaxperStateRulesasof2015(BDs=BusinessDays)

Ameren(IL) N/A 8 N/A 1 N/A 22BDsORU(NY) 219 619 36 5 -86% 10BDsTEP(AZ) 1446 1806 14 5 -64% N/ASDG&E(CA) 2404 6114 0 5 – 25BDsPG&E(CA) 1741 25074 1 5 400% 25BDsDEC(DE) N/A 61 N/A 5 N/A N/AWestPenn(PA) N/A 25 N/A 5 N/A 25BDsNationalGrid(NY) 852 1442 13 6 -54% 10BDEversource(NH) N/A 461 N/A 6 N/A N/AUnitedPower(CO) N/A 511 N/A 6 N/A 15BDsIREA(CO) N/A 370 N/A 8 N/A 15BDsSRP(AZ) 107 571 11 9 -18% N/AMohave(AZ) 52 45 8 9 13% N/ACOSprings 27 46 3 9 200% 15BDsSCE(CA) 7978 14405 3 9 200% 25BDsBGE(MD) 1089 1749 9 10 11% 20BDsNationalGrid(MA) 1605 3885 4 10 150% 25BDsComEd(IL) N/A 58 N/A 10 N/A 22BDsFirstEnergy(MD) N/A 190 N/A 10 N/A 20BDsCentralHudson(NY) 436 685 15 11 -27% 10BDs


Utility 2014ApplicationsReported






NSTAR(MA) 402 3006 12 11 -8% 25BDsEPE(NM) N/A 41 N/A 11 N/A 25BDsConEd(NY) 291 827 14 12 -14% 10BDsJCP&L(NJ) 294 813 10 13 30% 13BDsPPL(PA) N/A 15 N/A 13 N/A 25BDsPGE(OR) 32 770 6 14 133% N/APSE&G(NJ) 612 1682 8 17 113% 13BDsEversource(CT) 1022 2305 31 18 -42% 18BDsPacifiCorp(OR) N/A 29 N/A 18 N/A N/ATrico(AZ) N/A 164 N/A 18 N/A N/AUnitil(MA) N/A 137 N/A 19 N/A 25BDsPECO(PA) N/A 146 N/A 19 N/A 25BDsNYSEG 128 240 44 20 -55% 10BDsLIPA(NY) 1195 105 24 20 -17% N/ASMUD(CA) 7 1642 2 20 900% N/AXcel(CO) 4102 82 34 21 -38% 15BDsDukeProgress(NC) N/A 120 N/A 21 N/A 25BDsLADWP(CA) N/A 2153 N/A 21 N/A N/ANationalGrid(RI) N/A 6 N/A 21 N/A 20BDs*WMECO(MA) 103 371 48 23 -52% 25BDsModesto(CA) 381 563 13 23 77% N/ASPP(NV) N/A 603 N/A 23 N/A 20BDsUI(CT) N/A 424 N/A 24 N/A 18BDsACE(NJ) 615 1081 33 25 -24% 13BDsNVPower N/A 6361 N/A 25 N/A 20BDs


Utility 2014ApplicationsReported






DukeCarolinas(NC) N/A 151 N/A 26 N/A 25BDsPepco(MD) 646 1258 28 27 -4% 20BDDelmarva(MD) N/A 216 N/A 27 N/A 20BDTurlock(CA) N/A 99 N/A 27 N/A N/ASCE&G(SC) N/A 83 N/A 28 N/A 30Days*PacifiCorp(UT) 70 N/A 30 N/A N/A 25BDsDelmarva(DE) 279 461 28 33 18% 20BDsAPS(AZ) 276 4051 19 33 74% N/APepco(DC) 40 115 34 34 0% 25BDsFortCollins(CO) N/A 46 N/A 34 N/A 15BDsHECO(HI) 6 740 120 38 -68% 30BDsHELCO(HI) N/A 325 N/A 38 N/A 30BDsPNM(NM) N/A 11 N/A 40 N/A 25BDsImperial(CA) N/A 690 N/A 47 N/A N/AMECO(HI) 150 50 67 75 12% 30BDs

*RhodeIslandandSouthCarolinadidnothavestatewideinterconnectionrulesasof2015,butNationalGrid(RI)andSCE&G(SC)hadregulator-approvedinterconnectiontariffsthatincludedeadlines.


AppendixB2014and2015AveragePTOTimes,NumberofApplicationsReportedbyInstallers,andTimeLimitsonPTOApprovalRequiredbyStateRules,SortedbyFastedPTO

Timein2015.TimelimitsperstaterulesassumebasicfasttrackorLevel1interconnectionnotrequiringadditionaldistributionequipmentinstallationsormodifications.Numberof

applicationsreporteddoesnotrepresenttotalofnumberofapplicationsreceivedbytheutility.Utility Total2014

ApplicationsReported

Total2015ApplicationsReported

2014Post-ApplicationApprovalTime(#ofDays)



PTOApprovalMaxperStateRulesasof2015(BDs=BusinessDays)

ComEd(IL) N/A 58 N/A 1 N/A N/ACOSprings 27 39 2 5 150% 5-15BDsAmeren(IL) N/A 8 N/A 5 N/A N/AWestPenn(PA) N/A 25 N/A 5 N/A N/AMohave(AZ) 52 45 4 6 50% N/AEversource(CT) 1022 2197 5 12 140% N/AEPE(NM) N/A 41 N/A 12 N/A 15BDsUnitedPower(CO) 26 521 13 13 0% 5-15BDsPacifiCorp(UT) 70 N/A 15 N/A N/A 10BDsEversource(NH) N/A 461 N/A 18 N/A N/ATEP(AZ) 1446 1808 22 21 -5% N/AConEd(NY) 304 764 28 23 -18% 5-15BDsSDG&E(CA) 4860 6114 21 24 14% 30BDsDukeProgress(NC) N/A 105 N/A 24 N/A N/AFortCollins(CO) 58 46 17 27 59% 5-15BDsJCP&L(NJ) 294 770 10 27 170% 5-18BDsNSTAR(MA) 402 2886 25 29 16% 15BDsNationalGrid(NY) 852 1443 11 29 164% 5-15BDsDuke(NC) N/A 151 N/A 29 N/A N/ANationalGrid(MA) 1605 3663 7 31 343% 15BDs


Utility Total2014ApplicationsReported






PG&E(CA) 16440 25959 11 33 200% 30BDsLIPA(NY) 1196 113 34 34 0% N/APGE(OR) 717 770 26 35 35% N/AORU(NY) 219 604 21 37 76% 5-15BDsDEC(DE) 25 61 39 38 -3% N/ASCE(CA) 8486 15327 23** 38 65% 30BDsPNM(NM) N/A 9 N/A 39 N/A 15BDsNYSE&G 128 235 15 42 180% 5-15BDsPECO(PA) N/A 146 N/A 42 N/A N/ABGE(MD) 1097 1741 15 44 193% N/AACE(NJ) 610 985 30 45 50% 5-18BDsMECO(HI) 126 50 15 45 200% 15BDsUI(CT) 128 403 45 47 4% N/APSE&G(NJ) 612 1587 21 47 124% 5-18BDsCentralHudson(NY)

436 669 11 48 336% 5-15BD

Delmarva(DE) 279 530 30 49 63% N/AUNS(AZ) 30 N/A 49 N/A N/A N/ADelmarva(MD) 100 211 59 50 -15% N/AHELCO(HI) 196 325 31 50 61% 15BDsSMUD(CA) 1001 1649 29 51 76% N/APPL(PA) N/A 15 N/A 51 N/A N/AFirstEnergy(MD) 503 190 69 52 -25% N/AUnitil(MA) 66 136 45 54 20% 15BDsPacifiCorp(OR) 97 29 38 54 42% N/A


Utility Total2014ApplicationsReported






Modesto(CA) 384 561 25 56 124% N/APepco(DC) 64 89 44** 63 43% N/AHECO(HI) 954 1089 35 68 94% 15BDsSPP(NV) N/A 603 N/A 71 N/A 10BDsNVPower 754 6361 23 74 222% 10BDsTrico(AZ) 216 165 65 76 17% N/ATurlock(CA) 258 99 59 76 29% N/APepco(MD) 646 1253 76 79 4% N/ASCE&G(SC) N/A 83 N/A 88 N/A 25Days*SRP(AZ) 3312 572 22 94 327% N/AIREA(CO) 22 370 94 96 2% 5-15BDsXcel(CO) 4118 91 40 97 143% 5-15BDsImperial(CA) 57 655 75 100 33% N/AAPS(AZ) 4080 4052 38 108 184% N/ALADWP(CA) 1657 2187 46 114 148% N/APasadena(CA) 34 43 33 151 358% N/AWMECO(MA) 103 312 35 154 340% 15BDs

*SouthCarolinadidnothavestatewiderulesasof2015,butSCE&Ghadregulator-approvedinterconnectiontariffsthatincludedeadlines.**AdditionaldatacollectedfrominstallersresultedinchangestotheaveragePTOtimefortwoutilitiesthatwereincludedinour2015report.SCE(CA)isupdatedherefrom24daysto23days,andPepco(DC)isupdatedfrom51daysto44days.

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