A. The utility shall use the Level 3 review procedure for an interconnection request that meets the Level 3 criteria in Regulation .08 of this chapter.
B. Queue Position.
(1) Once the interconnection request is considered complete by the utility, the utility shall assign a queue position based upon the date and time the interconnection request is determined to be complete if there is more than one interconnection request pending for the same line section.
(2) The queue position of each interconnection request shall be used to determine the potential adverse system impact of the small generator facility based on the relevant screening criteria.
(3) The utility shall notify the applicant of any other higher queue position applicants on the same radial line or area network that the applicant is seeking to interconnect to.
(4) Queue position may not be forfeited or otherwise impacted by any pending dispute submitted under the provisions of Regulation .13 of this chapter.
C. Interconnection requests meeting the requirements set forth in Regulation .08 of this chapter for nonexporting small generator facilities interconnecting to an area network shall be presumed by the utility to be appropriate for interconnection. The utility shall process the interconnection request to area networks using the following procedures:
(1) The utility shall evaluate the interconnection request under Level 2 interconnection review procedures as set forth in Regulation .10 of this chapter, except that the utility shall have 25 business days to conduct an area network impact study to determine any potential adverse system impact of interconnecting to the utility's area network; however, the utility is not obligated to meet the 25 business day limit for reviewing the interconnection request until the utility has completed the review of all other interconnection requests that have a higher queue position;
(2) If the area network impact study identifies potential adverse system impacts, the utility may determine at its sole discretion that it is inappropriate for the small generator facility to interconnect to the area network, in which case the interconnection request shall be denied; however, the applicant may elect to submit a new interconnection request for consideration under Level 4 procedures, in which case the queue position assigned to the Level 3 interconnection request will be retained provided the request is made within 15 business days of notification that the current application is denied;
(3) The utility shall conduct the area network impact study at its own expense; and
(4) In the event the utility denies the interconnection request, the utility shall provide the applicant with a copy of its area network impact study and written justification for denying the interconnection request.
D. When an interconnection request meets the requirements of Regulation .08 of this chapter for nonexporting small generator facilities interconnecting to a radial distribution circuit, the utility shall:
(1) Evaluate the interconnection request using the Level 2 review in Regulation .10 of this chapter; and
(2) Approve the interconnection request if all of the applicable Level 2 screens are satisfied, except that the peak line section value indicated in Regulation .10A(1(a) shall be 25 percent instead of 15 percent.
E. Interconnection Agreement.
(1) If a small generator facility satisfies the criteria in §C or D of this regulation, the utility shall approve the interconnection request and provide a standard interconnection agreement for the applicant to sign.
(2) The applicant shall have 30 calendar days, or other mutually agreeable time frame after receipt of the standard small generator interconnection agreement, to sign and return the standard small generator interconnection agreement.
(3) If the applicant does not sign the standard small generator interconnection agreement within 30 calendar days, the interconnection request shall be considered withdrawn unless the applicant and utility mutually agree to extend the time period for executing the standard small generator interconnection agreement prior to the expiration of the 30 business day period. A request for extension may not be unreasonably denied by the utility.
(4) After the standard small generator interconnection agreement is signed by the applicant and utility, interconnection of the small generator facility shall proceed according to any milestones agreed to by the applicant and utility in the standard small generator interconnection agreement.
(5) The interconnection agreement is not final until:
(a) All milestones agreed to in the standard small generator interconnection agreement are satisfied;
(b) The small generator facility is approved by electric code officials with jurisdiction over the interconnection;
(c) The applicant provides a certificate of completion to the utility; and
(d) There is a successful completion of the witness test, if conducted by the utility.
F. Level 3 Review Failure.
(1) If the small generator facility is not approved under a Level 3 review, the utility shall provide the applicant a letter explaining its reasons for denying the interconnection request.
(2) If the small generator facility is not approved under a Level 3 review, the applicant may submit a new interconnection request for consideration under the Level 4 procedures; however, the queue position assigned to the Level 3 interconnection request shall be retained provided the request is submitted within 15 business days of the notice that the current Level 3 request was not approved.