Virginia Law

The following schedules shall be used in the administration of this chapter.

Schedule 1

Schedule 2

Certification of Small Generator Equipment Packages

Small generating facility equipment proposed for use separately or packaged with other equipment in an interconnection system shall be considered certified for interconnected operation if (i) it has been tested in accordance with industry standards for continuous utility interactive operation in compliance with the appropriate codes and standards referenced in this Schedule 2 by any Nationally Recognized Testing Laboratory (NRTL) recognized by the United States Occupational Safety and Health Administration to test and certify interconnection equipment pursuant to the relevant codes and standards listed in SGIP Schedule 3 of 20VAC5-314-170; (ii) it has been labeled and is publicly listed by such NRTL at the time of the interconnection application; and (iii) such NRTL makes readily available for verification all test standards and procedures it utilized in performing such equipment certification, and, with consumer approval, the test data itself. The NRTL may make such information available on its website and by encouraging such information to be included in the manufacturer's literature accompanying the equipment.

The interconnection customer must verify that the intended use of the equipment falls within the uses for which the equipment was tested, labeled, and listed by the NRTL.

Certified equipment shall not require further type-test review, testing, or additional equipment to meet the requirements of this interconnection procedure; however, nothing in this Schedule 2 shall preclude the need for an on-site commissioning test by the parties to the interconnection nor follow up production testing by the NRTL.

If the certified equipment package includes only interface components (switchgear, inverters, or other interface devices), then an IC must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and is consistent with the testing and listing specified for this type of interconnection equipment.

Provided the generator or electric source, when combined with the equipment package is within the range of capabilities for which it was tested by the NRTL and does not violate the interface components' labeling and listing performed by the NRTL, no further design review, testing, or additional equipment on the customer side of the point of interconnection shall be required to meet the requirements of this interconnection procedure.

An equipment package does not include equipment provided by the utility.

Schedule 3

Certification Codes and Standards

Attachment 3 of the FERC Small Generator Interconnection Procedures (SGIP) in 70 FR 34189 (June 13, 2005):

IEEE Std 1547 Standard for Interconnecting Distributed Resources with Electric Power Systems (including use of IEEE Std 1547.1 testing protocols to establish conformity)

UL 1741 Inverters, Converters, and Controllers for Use in Independent Power Systems

IEEE Std 929‑2000 IEEE Recommended Practice for Utility Interface of Photovoltaic (PV) Systems

NFPA 70 (2005), National Electrical Code

IEEE Std C37.90.1‑1989 (R1994), IEEE Standard Surge Withstand Capability (SWC) Tests for Protective Relays and Relay Systems

IEEE Std C37.90.2 (1995), IEEE Standard Withstand Capability of Relay Systems to Radiated Electromagnetic Interference from Transceivers

IEEE Std C37.108‑1989 (R2002), IEEE Guide for the Protection of Network Transformers

IEEE Std C57.12.44‑2000, IEEE Standard Requirements for Secondary Network Protectors

IEEE Std C62.41.2‑2002, IEEE Recommended Practice on Characterization of Surges in Low Voltage (1000V and Less) AC Power Circuits

IEEE Std C62.45‑1992 (R2002), IEEE Recommended Practice on Surge Testing for Equipment Connected to Low-Voltage (1000V and Less) AC Power Circuits

ANSI C84.1‑1995 Electric Power Systems and Equipment – Voltage Ratings (60 Hertz)

IEEE Std 100‑2000, IEEE Standard Dictionary of Electrical and Electronic Terms

NEMA MG 1‑1998, Motors and Small Resources, Revision 3

IEEE Std 519‑1992, IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems

NEMA MG 1‑2003 (Rev 2004), Motors and Generators, Revision 1

Schedule 4

GENERATING FACILITY PREAPPLICATION REPORT REQUEST FORM

Preamble and Instructions

An interconnection customer who requests a preapplication report must submit this preapplication report request by hand delivery, mail, email, or fax to the utility along with the nonrefundable fee of $500.

DISCLAIMER: Be aware that this preapplication report is simply a snapshot in time and is nonbinding. System conditions can and do change frequently.

Check here if payment is enclosed. Fee is required for application to be considered complete.

Date:______________

Interconnection Customer Name (print):________________________________

________________________________________________________________

Contact Person:___________________________________________________

________________________________________________________________

Mailing Address:___________________________________________________

________________________________________________________________

City:___________________________State:___________Zip Code:__________

Telephone (Daytime):_________________

Email Address:____________________________________________________

Alternative Contact Information (e.g., system installation contractor or

coordinating company)

Name (print): ___________________________________

Role:_____________________________________________________________

Contact Person:____________________________________________________

_________________________________________________________________

Mailing Address:____________________________________________________

City:___________________________State:___________Zip Code:___________

Telephone (Daytime):_________________

Email Address:____________________________________________________

Facility Information:

1. Proposed facility location

Address (or cross-roads):_________________________________________

City:_____________________State:__________________Zip Code:_______

Site map provided (Google, MapQuest, etc.)

Grid coordinates - Latitude: __________ Longitude: ______________

Pole or tower number if available:_____________________________

2. Primary energy source

Choose one:

3. Prime mover

Choose one:

4. Type of generator

Choose one:

5. Generator/Storage Nameplate Capacity: _____ kW

Maximum Generating Capacity requested: _____ kW_AC

(The maximum continuous electrical output of the generating facility at any time at a power factor of approximately unity as measured at the point of interconnection and the maximum kW delivered to the utility during any metering period.)

Storage Nameplate Energy: ______kWh

6. Generator configuration: Single-phase Three-phase

7. Interconnection configuration

New generation

Stand-alone

Addition to existing commercial or industrial customer's delivery

Customer's electric utility account number:___________________

Customer's electric meter number:_________________________

Is Customer's kW load going to increase or decrease?

No

Yes, Details,

______________________________________________________________

Proposed point of interconnection on customer-side of utility meter

______________________________________________________________

**OR**

Addition to existing generation

Stand-alone

Addition to existing commercial or industrial customer's delivery

Customer's electric utility account number:

________________________________________________

Customer's electric meter number:

________________________________________________

Is Customer's kW load going to increase or decrease?

No

Yes, Details,____________________________________

Type of existing generation:__________________________

________________________________________________

________________________________________________

Size of existing generation:______________________ kW_AC

Proposed point of interconnection on customer-side of utility meter

Additional comments

______________________________________________________________

______________________________________________________________

______________________________________________________________

Schedule 5

LEVEL 1 INTERCONNECTION REQUEST FORM FOR SMALL GENERATING FACILITY NOT EXCEEDING 500 kW

PURSUANT TO 20VAC5-314-40, APPLICANT HEREBY GIVES NOTICE OF INTENT TO OPERATE A GENERATING FACILITY.

Section 1. Interconnection Customer Information

This Interconnection Request Form is considered complete when the IC provides all applicable and correct information required in this Schedule 5 and complies with the processing fee in Section 2 of this Schedule.

An IC who requests a commission jurisdictional interconnection must submit this Interconnection Request Form by hand delivery, mail, email, or fax to the utility.

Section 2. Processing Fee

The nonrefundable processing fee payable to the utility is $100.

Section 3. Small Generating Facility Information

Facility schematic and equipment layout must be attached to this form.

If not available prior to the completion of the Interconnection Request Form, the IC must provide an address for SGF that has been issued conforming to the 911 emergency response group for the area to the utility within 15 business days of issuance.

Section 4. Information for Generators with an AC Capacity in Excess of 25 kW

Section 5. Site Control

Enclose a copy of the site control documentation. Any information appearing in public records may not be labeled confidential. (Confidential information is discussed in 20VAC5-314-110.) Site control may be demonstrated through:

1. Ownership of, a leasehold interest in, or a right to develop a site for the purpose of constructing the SGF;

2. An option to purchase or acquire a leasehold interest in a site for such purpose;

3. An exclusive or other business relationship between the IC and the entity having the right to sell, lease, or grant the IC the right to possess or occupy a site for such purpose; or

4. An existing permanent service metered account with the utility at the site and in the name of the IC.

Section 6. Vendor Certification

Section 7. Electrician Certification

Section 8. Applicant Signature

Section 9. Utility Acknowledgment of Receipt

Schedule 6

LEVELS 2 AND 3 INTERCONNECTION REQUEST FORM FOR SMALL GENERATING FACILITY

Section 1. Interconnection Customer Information

Name:_________________________________________________________

Contact person:_________________________________________________

Mailing address:_________________________________________________

City, State, Zip:__________________________________________________

Telephone (Day):________________ (Evening):________________________

Fax:__________________________ Email:___________________________

Alternative contact information

Contact Name:__________________________________________________

Title:__________________________________________________________

Mailing Address:_________________________________________________

City, State, Zip:__________________________________________________

Telephone (Day):________________ (Evening):________________________

Fax:__________________________ Email:___________________________

Application is for: New Small Generating Facility______ Capacity addition_____

If capacity addition to existing facility, please describe:

________________________________________________________________

The Small Generating Facility will supply: Interconnection Customer __ Others __

Point of Interconnection:_____________________________________________

Interconnection Customer's requested in-service date:____________________

This Interconnection Request Form is considered complete when the Interconnection Customer provides all applicable and correct information required in this Schedule 6 and complies with the processing fee in Section 2 of this Schedule.

An Interconnection Customer who requests a commission jurisdictional interconnection must submit this Interconnection Request Form by hand delivery, mail, email, or fax to the utility.

Request for:

Level 2 Process ____

Level 3 Process ____

Standby Generator / Closed Transition ____

Section 2. Processing Fee and Deposit

If the interconnection request is submitted as Level 2, the nonrefundable processing fee payable to the utility is $1,000.

If the interconnection request is submitted as Level 3, the IC shall submit to the utility a nonrefundable processing fee of $1,000. Upon being designated by the Utility as a Project A or if the IC elects to proceed with the Project B, Level 3 Interconnection Customers shall also be obligated to submit an interconnection request study deposit of $10,000 plus $1.00 per kW_AC.

An IC transferring from the Level 1 process shall pay the nonrefundable processing fee of $1,000 minus any previously paid Level 1 processing fee.

An IC transferring from the Level 2 to the Level 3 process shall not be required to pay an additional $1,000 processing fee.

If the SGF is a standby generating facility, the interconnection request shall be designated a Project A and the IC shall be obligated to submit an interconnection request study deposit of $5,000 in conjunction with the initial study agreement as provided for in 20VAC5-314-38 and 20VAC5-314-70.

If the interconnection request is submitted solely due to a transfer of ownership or change of control of the SGF, the nonrefundable processing fee is $500.

Section 3. Small Generating Facility Information

Data apply only to the small generating facility, not the interconnection facilities.

SGF Location (if different from information listed in Section 1 of this Schedule):

Site Address: ____________________________________________________________

City, State, Zip: __________________________________________________________

Utility and Account Number: _________________________________________________

Energy Service Provider and Account Number: __________________________________

If not available prior to the completion of the Interconnection Request Form, the Interconnection Customer must provide an address for SGF that has been issued conforming to the 911 emergency response group for the area to the utility within 15 business days of issuance.

Primary energy source

Choose one:

Prime mover

Choose one:

Type of generator

Choose one:

Additional comments

_______________________________________________________________________________________________________________________________________________________________________________________________________________

Is the SGF located in utility's service area?

Yes _____ No _____ If No, please provide name of local provider:______

Generator nameplate rating:________ kW ___ Generator nameplate kVAR:_______

Interconnection customer or customer-site load:__________kW

Typical reactive load:_________________

Maximum generating capacity requested:______________ kW_AC

List components of the small generating facility equipment package that are currently certified:

Equipment Certifying Entity

1.____________________________ 1.____________________________

2.____________________________ 2.____________________________

3.____________________________ 3.____________________________

4.____________________________ 4.____________________________

5.____________________________ 5.____________________________

Is the prime mover compatible with the certified protective relay package?

Yes____No____

Generator (or solar collector)

Manufacturer, Model Name, and Number:_________________________________

Version Number:_________________________________________________

Nameplate Output Power Rating in kW: (Summer)_________ (Winter)______

Nameplate Output Power Rating in kVA: (Summer)________ (Winter)______

Individual Generator Power Factor

Rated Power Factor: Leading:_____________ Lagging:________________

Total number of generators in wind farm to be interconnected pursuant to this interconnection request: Elevation:_______ Single Phase___ Three Phase___

Inverter Manufacturer, Model Name, and Number:__________________________

List of adjustable set points for the protective equipment or software:_________

Note: A completed power systems load flow data sheet must be supplied with the interconnection request.

Small Generating Facility Characteristic Data (for inverter-based machines)

Max design fault contribution current:______ Instantaneous___ or RMS_______

Harmonics characteristics:__________________________________________

Start-up requirements:_____________________________________________

Small Generating Facility Characteristic Data (for rotating machines)

RPM Frequency:_______________________________________________

Neutral Grounding Resistor (if applicable):____________

Synchronous Generators:

Direct Axis Synchronous Reactance, X_d:_______ P.U.

Direct Axis Transient Reactance, X_d:___________ P.U.

Direct Axis Subtransient Reactance, X_d:______________ P.U.

Negative Sequence Reactance, X₂:_________ P.U.

Zero Sequence Reactance, X₀:____________ P.U.

KVA Base:___________________________

Field Volts:______________

Field Amperes:___________

Induction Generators:

Motoring Power (kW):______________

I²t or K (Heating Time Constant):______________

Rotor Resistance, R_r:______________

Stator Resistance, R_s:______________

Stator Reactance, X_s:______________

Rotor Reactance, X_r:______________

Magnetizing Reactance, X_m:_____________

Short Circuit Reactance, X_d:______________

Exciting Current:______________

Temperature Rise:______________

Frame Size:______________

Design Letter:______________

Reactive Power Required In Vars (No Load):______________

Reactive Power Required In Vars (Full Load):______________

Total Rotating Inertia, H:_____________ Per Unit on kVA base

Excitation and Governor System Data for Synchronous Generators Only:

Provide appropriate IEEE model block diagram of excitation system, governor system, and power system stabilizer (PSS) in accordance with the regional reliability council criteria. A PSS may be determined to be required by applicable studies. A copy of the manufacturer's block diagram may not be substituted.

Section 4. Customer's Interconnection Facilities Information

Will a transformer be used between the generator and the point of interconnection?

Yes ____No ____

Will the transformer be provided by the IC? Yes ____No ____

Transformer Data (If applicable, for IC-owned transformer):

Is the transformer: Single Phase_____ Three Phase____ Size: kVA_____

Transformer Impedance:_______% on __________kVA base

If Three Phase:

Transformer Primary:_____ Volts _____ Delta _____ Wye _____ Wye Grounded

Transformer Secondary:___ Volts _____ Delta _____ Wye _____ Wye Grounded

Transformer Tertiary:_____ Volts _____ Delta _____ Wye _____ Wye Grounded

Transformer Fuse Data (if applicable, for IC-owned fuse):

(Attach copy of fuse manufacturer's minimum melt and total clearing time-current curves.)

Manufacturer:____________ Type:__________ Size:______ Speed:_______

Interconnecting Circuit Breaker (if applicable):

Manufacturer:____________________________ Type:__________

Load Rating (amps):___ Interrupting Rating (amps):___ Trip Speed (cycles):___

Interconnection Protective Relays (if applicable):

If Microprocessor-Controlled:

Manufacturer:__________________________ Type:____________________

Model No. ___________ Firmware ID:_______ Instruction Book No. _________

List of functions and adjustable setpoints for the protective equipment or software:

Setpoint Function Minimum Maximum

1.________________________________ ____________ __________

2.________________________________ ____________ __________

3.________________________________ ____________ __________

4.________________________________ ____________ __________

5.________________________________ ____________ __________

6.________________________________ ____________ __________

If Discrete Components:

(Enclose copy of any proposed time-overcurrent coordination curves.)

Manufacturer:___________ Type:_______ Style/Catalog No.:______ Proposed Setting:______

Manufacturer:___________ Type:_______ Style/Catalog No.:______ Proposed Setting:______

Manufacturer:___________ Type:_______ Style/Catalog No.:______ Proposed Setting:______

Manufacturer:___________ Type:_______ Style/Catalog No.:______ Proposed Setting:______

Manufacturer:___________ Type:_______ Style/Catalog No.:______ Proposed Setting:______

Current Transformer Data (if applicable):

(Enclose copy of manufacturer's excitation and ratio correction curves.)

Manufacturer:_________________________________________________

Type:_______ Accuracy Class:________ Proposed Ratio Connection:_____

Manufacturer:_________________________________________________

Type:_______ Accuracy Class:________ Proposed Ratio Connection:_____

Potential Transformer Data (if applicable):

Manufacturer:_________________________________________________

Type:________ Accuracy Class:_______ Proposed Ratio Connection:_____

Manufacturer:_________________________________________________

Type:________ Accuracy Class:_______ Proposed Ratio Connection:_____

Section 5. General Information

Enclose a copy of the site electrical one-line diagram showing the configuration of the small generating facility equipment, current and potential circuits, and protection and control schemes.

Enclose a copy of any site documentation that indicates the precise physical location of the proposed SGF (e.g., United States Geological Survey topographic map or other diagram or documentation).

Describe the proposed location of the protective interface equipment on the property:____________________________________________________

Enclose a copy of any site documentation that describes and details the operation of the protection and control schemes. Is available documentation enclosed? Yes___ No____

Enclose copies of schematic drawings for all protection and control circuits, relay current circuits, relay potential circuits, and alarm or monitoring circuits (if applicable).

Are schematic drawings enclosed? Yes____ No____

Section 6. Site Control

Enclose a copy of the site control documentation. Any information appearing in public records may not be labeled confidential. (Confidential information is discussed in 20VAC5-314-110.) Site control may be demonstrated through:

1. Ownership of, a leasehold interest in, or a right to develop a site for the purpose of constructing the SGF;

2. An option to purchase or acquire a leasehold interest in a site for such purpose;

3. An exclusive or other business relationship between the IC and the entity having the right to sell, lease, or grant the IC the right to possess or occupy a site for such purpose; or

4. An existing permanent service metered account with the utility at the site and in the name of the IC.

Section 7. Interconnection Customer Signature

I hereby certify that, to the best of my knowledge, all the information provided in this interconnection request is true and correct.

Signature:_____________________________ Date:________________

Section 8. Utility Acknowledgment of Receipt

Signed:_____________________________________

Title:_______________________________________

Utility:______________________________________

Date:______________________________________

Utility signature signifies only receipt of this form, in compliance with 20VAC5-314-50.

Schedule 7

LEVEL 3 FEASIBILITY STUDY AGREEMENT FOR SMALL GENERATING FACILITIES

This Agreement is made and entered into this _____day of ________20___ by and between_____________________________________________________________, a ____________________________organized and existing under the laws of the state of __________________________________________, ("Interconnection Customer,") and ____________________________________, a________________existing under the laws of the state of____________________________________, ("Utility"). Interconnection Customer and Utility each may be referred to as a "Party" or collectively as the "Parties."

RECITALS

WHEREAS, Interconnection Customer is proposing to develop an SGF or generating capacity addition to an existing SGF consistent with the interconnection request completed by Interconnection Customer on_________________________; and

WHEREAS, Interconnection Customer desires to interconnect the SGF with the Utility's system; and

WHEREAS, Interconnection Customer has requested the Utility to perform a feasibility study to assess the feasibility of interconnecting the proposed SGF with the Utility's system, and of any affected systems;

NOW, THEREFORE, in consideration of and subject to the mutual covenants contained in this Agreement the Parties agreed as follows:

1.0 The terms defined in Schedule 1 of 20VAC5-314-170 shall apply to this Schedule 7 of 20VAC 5-314-170.

2.0 The Interconnection Customer elects and the Utility shall cause to be performed an interconnection feasibility study consistent with the standard small generator interconnection procedures.

3.0 The scope of the feasibility study shall be subject to the assumptions set forth in Attachment A to this Agreement.

4.0 Feasibility study costs will be deducted from the interconnection request study deposit, as set forth in Schedule 6 of 20VAC5-314-170.

4.1 Study cost shall be the Utility's actual incremental costs and will be invoiced to the Interconnection Customer no later than 60 business days after the study is completed and delivered and will include a summary of professional time. Actual study costs may be reconciled during the final accounting process described in Article 6 of the Interconnection Agreement, as applicable.

4.2 The Interconnection Customer shall pay any study costs that exceed the deposit within 20 business days after receipt of the invoice or resolution of any dispute. If the deposit exceeds the invoiced fees, the Utility shall refund the excess within 20 business days of the invoice without interest unless additional studies are required.

5.0 The feasibility study shall be based on the technical information provided by the Interconnection Customer in the interconnection request, as may be modified as the result of the scoping meeting. The Utility reserves the right to request additional technical information from the Interconnection Customer as may reasonably become necessary consistent with Good Utility Practice during the course of the feasibility study and as designated in accordance with the standard small generator interconnection procedures. If the information requested by the Utility is not provided by the Interconnection Customer within a reasonable timeframe to be identified by the Utility in writing, the Utility shall provide the Interconnection Customer written notice providing an opportunity to cure such failure by the close of business on the 10th business day following the posted date of such notice, where failure to provide the information requested within this period shall result in the study being terminated and the interconnection request being deemed withdrawn. The period of time for the Utility to complete the feasibility study shall be tolled during any period that the Utility has requested information in writing from the Interconnection Customer necessary to complete the study and such request is outstanding.

6.0 In performing the study, the Utility shall rely, to the extent reasonably practicable, on recent studies. The Interconnection Customer shall not be charged for such existing studies; however, the Interconnection Customer shall be responsible for charges associated with any new study or modifications to existing studies that are reasonably necessary to perform the feasibility study.

7.0 The feasibility study report shall provide the following analyses for the purpose of identifying any potential adverse system impacts that would result from the interconnection of the SGF as proposed:

7.1 Initial identification of any circuit breaker short circuit capability limits exceeded as a result of the interconnection;

7.2 Initial identification of any thermal overload or voltage limit violations resulting from the interconnection;

7.3 Initial review of grounding requirements and electric system protection; and

7.4 Description and nonbinding estimated cost of facilities required to interconnect the proposed SGF and to address the identified short circuit and power flow issues.

8.0 The feasibility study shall model the impact of the SGF for all purposes identified in the Interconnection Request Form in order to avoid the further expense and interruption of operation for reexamination of feasibility and impacts if the Interconnection Customer later changes the purpose for which the SGF is being installed.

9.0 The study shall include the feasibility of all potential points of interconnection as requested by the Interconnection Customer and at the Interconnection Customer's cost.

10.0 A feasibility study report shall be prepared and transmitted to the Interconnection Customer within 30 business days of the Utility's receipt of the complete executed feasibility study agreement and required deposit.

11.0 If the feasibility study shows no potential for adverse system impacts, then within 10 business days, the Utility shall send the Interconnection Customer either an executable Small Generator Interconnection Agreement (Schedule 10 of 20VAC5-314-170) or a Facilities Study Agreement, including an outline of the scope of the study.

12.0 If the feasibility study shows potential for adverse system impacts, the review process shall proceed to the system impact study.

13.0 Governing law, regulatory authority, and rules. The validity, interpretation, and enforcement of this Agreement and each of its provisions shall be governed by the laws of the Commonwealth of Virginia, without regard to its conflicts of law principles. This Agreement is subject to all applicable laws and regulations. Each Party expressly reserves the right to seek changes in, appeal, or otherwise contest any laws, orders, or regulations of a governmental authority.

14.0 Amendment. The Parties may amend this Agreement by a written instrument duly executed by both Parties.

15.0 No third-party beneficiaries. This Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations in this Agreement assumed are solely for the use and benefit of the Parties, their successors in interest and where permitted, their assigns.

16.0 Waiver.

16.1 The failure of a Party to this Agreement to insist, on any occasion, upon strict performance of any provision of this Agreement will not be considered a waiver of any obligation, right, or duty of or duty imposed upon such Party.

16.2 Any waiver at any time by either Party of its rights with respect to this Agreement shall not be deemed a continuing waiver or a waiver with respect to any other failure to comply with any other obligation, right, or duty of this Agreement. Termination or default of this Agreement for any reason by an Interconnection Customer shall not constitute a waiver of the Interconnection Customer's legal rights to obtain an interconnection from the Utility. Any waiver of this Agreement shall, if requested, be provided in writing.

17.0 Entire agreement. This Agreement, including all attachments, constitutes the entire agreement between the Parties with reference to the subject matter hereof and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of this Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party's compliance with its obligations under this Agreement.

18.0 Multiple counterparts. This Agreement may be executed in two or more counterparts, each of which is deemed an original but all constitute one and the same instrument.

19.0 No partnership. This Agreement shall not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power, or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party.

20.0 Severability. If any provision or portion of this Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (i) such portion or provision shall be deemed separate and independent, (ii) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (iii) the remainder of this Agreement shall remain in full force and effect.

21.0 Subcontractors. Nothing in this Agreement shall prevent a Party from utilizing the services of any subcontractor as it deems appropriate to perform its obligations under this Agreement; however, each Party shall require its subcontractors to comply with all applicable terms and conditions of this Agreement in providing such services and each Party shall remain primarily liable to the other Party for the performance of such subcontractor.

21.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under this Agreement. The hiring Party shall be fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made; provided that in no event shall the Utility be liable for the actions or inactions of the Interconnection Customer or its subcontractors with respect to obligations of the Interconnection Customer under this Agreement. Any applicable obligation imposed by this Agreement upon the hiring Party shall be equally binding upon and shall be construed as having application to any subcontractor of such Party.

21.2 The obligations under this Section 21.0 of this Agreement will not be limited in any way by any limitation of subcontractor's insurance.

22.0 Reservation of rights. The Utility shall have the right to make a unilateral filing with the State Corporation Commission to modify this Agreement with respect to any rates, terms, and conditions, charges, or classifications of service, and the Interconnection Customer shall have the right to make a unilateral filing with the State Corporation Commission to modify this Agreement; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the State Corporation Commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties except to the extent that the Parties otherwise agree as provided in this Agreement.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their duly authorized officers or agents on the day and year of this Agreement.

(Insert name of Utility) (Insert name of Interconnection Customer)

________________________________ ________________________________

Signed: _________________________ Signed:__________________________

Name (Printed): Name (Printed):

________________________________ _________________

Title: ___________________________ Title: ____________________________

Attachment A to Schedule 7

Feasibility Study Agreement

Assumptions Used in Conducting the Feasibility Study

The feasibility study will be based upon the information set forth in the interconnection request and agreed upon in the scoping meeting held on _____________________:

1. Designation of point of interconnection and configuration to be studied.

2. Designation of alternative points of interconnection and configuration.

Questions 1 and 2 are to be completed by the Interconnection Customer. Any other assumptions are to be provided by the Interconnection Customer and the Utility.

_____________________________________________________________

_____________________________________________________________

Schedule 8

LEVEL 3 SYSTEM IMPACT STUDY AGREEMENT FOR SMALL GENERATING FACILITIES

This Agreement is made and entered into this _____day of___________________20_______by and between______________________ ____________________________________________________________________, a ___________________________ organized and existing under the laws of the state of__________________________________________, ("Interconnection Customer,") and__________________________________________, a_________________existing under the laws of the state of________, ("Utility"). Interconnection Customer and Utility each may be referred to as a "Party," or collectively as the "Parties."

RECITALS

WHEREAS, the Interconnection Customer is proposing to develop an SGF or generating capacity addition to an existing SGF consistent with the interconnection request completed by the Interconnection Customer on______________________; and

WHEREAS, the Interconnection Customer desires to interconnect the SGF with the Utility's system; and

WHEREAS, the Utility has completed a feasibility study and provided the results of said study to the Interconnection Customer (This recital to be omitted if the Parties have agreed to forgo the feasibility study.); and

WHEREAS, the Interconnection Customer has requested the Utility to perform a system impact study to assess the impact of interconnecting the SGF with the Utility's system, and of any affected systems;

NOW, THEREFORE, in consideration of and subject to the mutual covenants contained in this Agreement the Parties agreed as follows:

1.0 The terms defined in Schedule 1 of 20VAC5-314-170 shall apply to this Schedule 8 of 20VAC 5-314-170.

2.0 The Interconnection Customer elects and the Utility shall cause to be performed a system impact study consistent with the standard small generator interconnection procedures.

3.0 System impact study costs will be deducted from the interconnection request study deposit as set forth in Schedule 6 of 20VAC5-314-170.

3.1 Study cost shall be the Utility's actual incremental costs and will be invoiced to the Interconnection Customer no later than 60 business days after the study is completed and delivered and will include a summary of professional time. Actual study costs may be reconciled during the final accounting process described in Article 6 of the Interconnection Agreement, as applicable.

3.2 The Interconnection Customer shall pay any study costs that exceed the deposit within 20 business days after receipt of the invoice or resolution of any dispute. If the deposit exceeds the invoiced fees, the Utility shall refund the excess within 20 business days of the invoice without interest unless additional studies are required.

4.0 A system impact study shall identify and detail the electric system impacts that would result if the SGF were interconnected without project modifications or electric system modifications, focusing on the adverse electric system impacts identified in the feasibility study or in the scoping meeting. A system impact study shall evaluate the impact of the proposed interconnection on the reliability of the electric system.

5.0 A system impact study will be based upon the results of the feasibility study and the technical information provided by Interconnection Customer in the interconnection request. The Utility reserves the right to request additional technical information from the Interconnection Customer as may reasonably become necessary consistent with Good Utility Practice during the course of the system impact study. If the information requested by the Utility is not provided by the Interconnection Customer within a reasonable timeframe to be identified by the Utility in writing, the Utility shall provide the Interconnection Customer written notice providing an opportunity to cure such failure by the close of business on the 10th business day following the posted date of such notice, where failure to provide the information requested within this period shall result in the study being terminated, and the interconnection request being deemed withdrawn. The period of time for the Utility to complete the system impact study shall be tolled during any period that the Utility has requested information in writing from the Interconnection Customer necessary to complete the study and such request is outstanding.

6.0 A system impact study shall consist of a study of the potentially impacted transmission and distribution systems, a short circuit analysis, a stability analysis, a power flow analysis, voltage drop and flicker studies, grounding reviews, distribution load flow study, analysis of equipment interrupting ratings, protection coordination study, and impacts on electric system operation, as necessary. A system impact study shall state the assumptions upon which it is based, state the results of the analyses, and provide the requirement or potential impediments to providing the requested interconnection service, including a preliminary indication of the cost and length of time that would be necessary to correct any problems identified in those analyses and implement the interconnection. A system impact study shall provide a list of facilities and modifications that would be required as a result of the interconnection along with estimates of cost responsibility and time to construct. If arranged with the Utility prior to the Utility preparing the system impact study agreement, the system impact study may, at the Interconnection Customer's cost, include one or more alternatives to the point of interconnection; however, such alternative points must be on the same distribution circuit as the point of interconnection the Interconnection Customer specified as the proposed point of interconnection.

7.0 Affected systems may participate in the preparation of a system impact study, with a division of costs among such entities as they may agree. All affected systems shall be afforded an opportunity to review and comment upon a system impact study that covers potential adverse system impacts on their electric systems, and the Utility has 20 additional business days to complete a system impact study requiring review by affected systems.

8.0 If the Utility uses a queuing procedure for sorting or prioritizing projects and associated cost responsibilities for any required network upgrades, the system impact study shall consider all generating facilities (and with respect to Section 8.3 of this Agreement, any identified upgrades associated with such higher queued interconnection) that, on the date the system impact study is commenced:

8.1 Are directly interconnected with the Utility's system; or

8.2 Are interconnected with affected systems and may have an impact on the proposed interconnection; and

8.3 Have a pending higher queued interconnection request to interconnect with the Utility's system.

9.0 A system impact study, if required, shall be completed and the results transmitted to the Interconnection Customer within 45 business days after this Agreement is signed by the Parties or in accordance with the Utility's queuing procedures.

10.0 If the system impact study shows that facility modifications are needed to accommodate the SGF, then within 10 business days following transmittal of the system impact study report, the Utility shall send the Interconnection Customer a Facilities Study Agreement, including an outline of the scope of the study.

11.0 Governing law, regulatory authority, and rules. The validity, interpretation, and enforcement of this Agreement and each of its provisions shall be governed by the laws of the Commonwealth of Virginia, without regard to its conflicts of law principles. This Agreement is subject to all applicable laws and regulations. Each Party expressly reserves the right to seek changes in, appeal, or otherwise contest any laws, orders, or regulations of a governmental authority.

12.0 Amendment. The Parties may amend this Agreement by a written instrument duly executed by both Parties.

13.0 No third-party beneficiaries. This Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations pursuant to this Agreement assumed are solely for the use and benefit of the Parties, their successors in interest, and where permitted, their assigns.

14.0 Waiver.

14.1 The failure of a Party to this Agreement to insist, on any occasion, upon strict performance of any provision of this Agreement will not be considered a waiver of any obligation, right, or duty of or duty imposed upon such Party.

14.2 Any waiver at any time by either Party of its rights with respect to this Agreement shall not be deemed a continuing waiver or a waiver with respect to any other failure to comply with any other obligation, right, or duty of this Agreement. Termination or default of this Agreement for any reason by Interconnection Customer shall not constitute a waiver of the Interconnection Customer's legal rights to obtain an interconnection from the Utility. Any waiver of this Agreement shall if requested, be provided in writing.

15.0 Entire agreement. This Agreement, including all attachments, constitutes the entire agreement between the Parties with reference to the subject matter hereof and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of this Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party's compliance with its obligations under this Agreement.

16.0 Multiple counterparts. This Agreement may be executed in two or more counterparts, each of which is deemed an original but all constitute one and the same instrument.

17.0 No partnership. This Agreement shall not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power, or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party.

18.0 Severability. If any provision or portion of this Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (i) such portion or provision shall be deemed separate and independent, (ii) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (iii) the remainder of this Agreement shall remain in full force and effect.

19.0 Subcontractors. Nothing in this Agreement shall prevent a Party from utilizing the services of any subcontractor as it deems appropriate to perform its obligations under this Agreement; however, each Party shall require its subcontractors to comply with all applicable terms and conditions of this Agreement in providing such services, and each Party shall remain primarily liable to the other Party for the performance of such subcontractor.

19.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under this Agreement. The hiring Party shall be fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made; provided that in no event shall the Utility be liable for the actions or inactions of the Interconnection Customer or its subcontractors with respect to obligations of the Interconnection Customer under this Agreement. Any applicable obligation imposed by this Agreement upon the hiring Party shall be equally binding upon and shall be construed as having application to any subcontractor of such Party.

19.2 The obligations under this Section 19.0 of this Agreement will not be limited in any way by any limitation of subcontractor's insurance.

20.0 Reservation of rights. The Utility shall have the right to make a unilateral filing with the State Corporation Commission to modify this Agreement with respect to any rates, terms and conditions, charges, or classifications of service, and the Interconnection Customer shall have the right to make a unilateral filing with the State Corporation Commission to modify this Agreement; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the State Corporation Commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties except to the extent that the Parties otherwise agree as provided in this Agreement.

IN WITNESS THEREOF, the Parties have caused this Agreement to be duly executed by their duly authorized officers or agents on the day and year of this Agreement.

(Insert name of Utility) (Insert name of Interconnection Customer)

___________________________________________________________________

Signed: _________________________ Signed: ____________________________

Name (Printed): Name (Printed):

__________________________________ ______________________________

Title: ______________________________ Title: __________________________

Schedule 9

LEVEL 3 FACILITIES STUDY AGREEMENT FOR SMALL GENERATING FACILITIES

This Agreement is made and entered into this _____day of______________20___ by and between________________________________________________________, a ____________________________organized and existing under the laws of the state of____________________________________________, ("Interconnection Customer,") and________________________________________________________________, a__________________existing under the laws of the state of____________________________________________________________, ("Utility"). Interconnection Customer and Utility each may be referred to as a "Party," or collectively as the "Parties."

RECITALS

WHEREAS, the Interconnection Customer is proposing to develop an SGF or generating capacity addition to an existing SGF consistent with the interconnection request completed by the Interconnection Customer on______________________; and

WHEREAS, the Interconnection Customer desires to interconnect the SGF with the Utility's system; and

WHEREAS, the Utility has completed a system impact study and provided the results of the study to the Interconnection Customer; and

WHEREAS, the Interconnection Customer has requested the Utility to perform a facilities study to specify and estimate the cost of the equipment, engineering, procurement, and construction work needed to implement the conclusions of the system impact study in accordance with Good Utility Practice to physically and electrically connect the SGF with the Utility's system.

NOW, THEREFORE, in consideration of and subject to the mutual covenants contained in this Agreement the Parties agreed as follows:

1.0 The terms defined in Schedule 1 of 20VAC5-314-170 shall apply to this Schedule 9 of 20VAC 5-314-170.

2.0 The Interconnection Customer elects and the Utility shall cause a facilities study consistent with the standard small generator interconnection procedures.

3.0 The scope of the facilities study shall be subject to data provided in Attachment A to this Agreement.

4.0 The facilities study shall specify and estimate the cost of the equipment, engineering, procurement, and construction work needed to implement the conclusions of the feasibility study or system impact study and to allow the SGF to be interconnected and operate safely and reliably.

5.0 Facilities study costs will be deducted from the interconnection request study deposit, as set forth in Schedule 6 of 20VAC5-314-170.

5.1 Study cost shall be the Utility's actual incremental costs and will be invoiced to the Interconnection Customer no later than 60 business days after the study is completed and delivered and will include a summary of professional time. Actual study costs may be reconciled during the final accounting process described in Article 6 of the Interconnection Agreement, as applicable.

5.2 The Interconnection Customer shall pay any study costs that exceed the deposit within 20 business days on receipt of the invoice or resolution of any dispute. If the deposit exceeds the invoiced fees, the Utility shall refund the excess within 20 business days of the invoice without interest.

6.0 Design for any required customer's interconnection facilities, attachment facilities, or distribution upgrades shall be performed under the facilities study. The Utility may contract with consultants to perform activities required under the facilities study. The Interconnection Customer and the Utility may agree to allow the Interconnection Customer to separately arrange for the design of some of the customer's interconnection facilities. In such cases, facilities design will be reviewed or modified prior to acceptance by the Utility, under the provisions of the facilities study. If the Parties agree to separately arrange for design and construction, and provided security and confidentiality requirements can be met, the Utility shall make sufficient information available to the Interconnection Customer in accordance with confidentiality and critical infrastructure requirements, to permit the Interconnection Customer to obtain an independent design and cost estimate for any necessary facilities.

7.0 The facilities study shall also identify (i) the electrical switching configuration of the equipment, including transformer, switchgear, meters, and other station equipment; (ii) the nature and estimated cost of the attachment facilities and distribution upgrades necessary to accomplish the interconnection; and (iii) an estimate of the time required to complete the construction and installation of such facilities.

8.0 The Utility may propose to group facilities required for more than one Interconnection Customer in order to minimize facilities costs through economies of scale, but any Interconnection Customer may require the installation of facilities required for its own SGF if it is willing to pay the costs of those facilities.

9.0 In cases where system upgrades are required, the Utility shall transmit the facilities study report within 45 business days after receipt of the complete Facilities Study Agreement and the deposit. In cases where no system upgrades are necessary, and the required facilities are limited to customer's interconnection facilities and attachment facilities only, the Utility shall transmit the facilities study report within 30 business days after receipt of this Agreement and the deposit. The Utility reserves the right to request additional technical information from the Interconnection Customer as may reasonably become necessary consistent with Good Utility Practice during the course of the facilities study. If the information requested by the Utility is not provided by the Interconnection Customer within a reasonable timeframe to be identified by the Utility in writing, the Utility shall provide the Interconnection Customer written notice providing an opportunity to cure such failure by the close of business on the 10th business day following the posted date of such notice, where failure to provide the information requested within this period shall result in the study being terminated, and the interconnection request being deemed withdrawn. The period of time for the Utility to complete the facilities study shall be tolled during any period that the Utility has requested information in writing from the Interconnection Customer necessary to complete the study and such request is outstanding.

10.0 Governing law, regulatory authority, and rules. The validity, interpretation, and enforcement of this Agreement and each of its provisions shall be governed by the laws of the Commonwealth of Virginia, without regard to its conflicts of law principles. This Agreement is subject to all applicable laws and regulations. Each Party expressly reserves the right to seek changes in, appeal, or otherwise contest any laws, orders, or regulations of a governmental authority.

11.0 Amendment. The Parties may amend this Agreement by a written instrument duly executed by both Parties.

12.0 No third-party beneficiaries. This Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations assumed in this Agreement are solely for the use and benefit of the Parties, their successors in interest and where permitted, their assigns.

13.0 Waiver.

13.1 The failure of a Party to this Agreement to insist, on any occasion, upon strict performance of any provision of this Agreement will not be considered a waiver of any obligation, right, or duty of or duty imposed upon such Party.

13.2 Any waiver at any time by either Party of its rights with respect to this Agreement shall not be deemed a continuing waiver or a waiver with respect to any other failure to comply with any other obligation, right, or duty of this Agreement. Termination or default of this Agreement for any reason by the Interconnection Customer shall not constitute a waiver of the Interconnection Customer's legal rights to obtain an interconnection from the Utility. Any waiver of this Agreement shall, if requested, be provided in writing.

14.0 Entire agreement. This Agreement, including all attachments, constitutes the entire agreement between the Parties with reference to the subject matter hereof and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of this Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party's compliance with its obligations under this Agreement.

15.0 Multiple counterparts. This Agreement may be executed in two or more counterparts, each of which is deemed an original but all constitute one and the same instrument.

16.0 No partnership. This Agreement shall not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power, or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party.

17.0 Severability. If any provision or portion of this Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (i) such portion or provision shall be deemed separate and independent, (ii) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (iii) the remainder of this Agreement shall remain in full force and effect.

18.0 Subcontractors. Nothing in this Agreement shall prevent a Party from utilizing the services of any subcontractor as it deems appropriate to perform its obligations under this Agreement; however, each Party shall require its subcontractors to comply with all applicable terms and conditions of this Agreement in providing such services, and each Party shall remain primarily liable to the other Party for the performance of such subcontractor.

18.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under this Agreement. The hiring Party shall be fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made; provided that in no event shall the Utility be liable for the actions or inactions of the Interconnection Customer or its subcontractors with respect to obligations of the Interconnection Customer under this Agreement. Any applicable obligation imposed by this Agreement upon the hiring Party shall be equally binding upon and shall be construed as having application to any subcontractor of such Party.

18.2 The obligations under this Section 18.0 of this Agreement will not be limited in any way by any limitation of subcontractor's insurance.

19.0 Reservation of rights. The Utility shall have the right to make a unilateral filing with the State Corporation Commission to modify this Agreement with respect to any rates, terms and conditions, charges, or classifications of service, and the Interconnection Customer shall have the right to make a unilateral filing with the State Corporation Commission to modify this Agreement; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the State Corporation Commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties except to the extent that the Parties otherwise agree as provided in this Agreement.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their duly authorized officers or agents on the day and year of this Agreement.

(Insert name of Utility) (Insert name of Interconnection Customer)

___________________________________ _________________________________

Signed______________________________ Signed___________________________

Name (Printed): Name (Printed):____________________

___________________________________ ______________________________

Title_______________________________ Title___________________________

Attachment A to Schedule 9

Facilities Study Agreement

Data to Be Provided by the Interconnection Customer

with the Facilities Study Agreement

1. Provide a location plan and simplified one-line diagram of the plant and station facilities. For staged projects, indicate future generation, future transmission circuits, and other major future facilities. On the one-line diagram, show (i) each generator, its electric connection configuration, and its generation capacity; (ii) the location and capacity of auxiliary power; and (iii) minimum load on CT/PT.

2. One set of metering is required for each generation connection to the new ring bus or existing Utility station. Indicate the number of generation connections requiring a metering set:_______

3. Indicate whether an alternate source of auxiliary power will be available during CT/PT maintenance. Yes_______ No_______

4. Indicate whether a transfer bus on the generation side of the metering will require that each meter set be designed for the total plant generation. Indicate such on the one-line diagram.

5. State the type of control system or programmable logic controller (PLC) that will be located at the SGF.

__________________________________________________________________________________________________________________________________________

6. State the protocol used by the control system or PLC. __________________________________________________________________________________________________________________________________________

7. Describe the operation sequence and timing of the protection scheme during disconnection and reconnection to the Utility by the SGF.

__________________________________________________________________________________________________________________________________________

8. Provide a 7.5-minute quadrangle map of the site. Indicate the plant, station, transmission line, and property lines.

9. State the physical dimensions of the proposed interconnection station.

__________________________________________________________________________________________________________________________________________

10. State the bus length from generation to interconnection station.

__________________________________________________________________________________________________________________________________________

11. Provide a diagram or description of the point of interconnection desired by the Interconnection Customer that is to be the point of interconnection in the system impact study report.

__________________________________________________________________________________________________________________________________________

12. State the line length from interconnection station to Utility system.

__________________________________________________________________________________________________________________________________________

13. State the pole or tower number observed in the field affixed to the pole or tower leg. ______________________________________________________________

14. State the number of third-party easements required for distribution or transmission lines.

__________________________________________________________________________________________________________________________________________

15. Provide the following proposed schedule dates:

a. Date Interconnection Customer to begin construction: ___________________

b. Date generator step-up transformers to receive back feed power: __________________

c. Date Interconnection Customer will test SGF: ______________________

d. Date Interconnection Customer will place SGF into commercial operation: ______________________

Schedule 10

SMALL GENERATOR INTERCONNECTION AGREEMENT (SGIA)

This Small Generator Interconnection Agreement ("Agreement") is made and entered into this ______ day of ____________, 20__, by __________________ ("Utility"), and _________________________________ ("Interconnection Customer" or "IC"), each sometimes referred to individually as "Party" or both referred to collectively as the "Parties."

If not available prior to the completion of the Agreement, the Interconnection Customer must provide an address for the small generating facility ("small generating facility" or "SGF") that has been issued conforming to the 911 emergency response group for the area to the Utility within 15 business days of issuance.

In consideration of the mutual covenants set forth in this Agreement, the Parties agree as follows:

Article 1. Scope and Limitations of Agreement

1.1 This Agreement shall be used for all interconnection requests for generators in excess of 500 kW submitted pursuant to the Regulations Governing Interconnection of Small Electrical Generators (20VAC5-314).

1.2 This Agreement governs the terms and conditions under which the Interconnection Customer's small generating facility will interconnect with and operate in parallel with the Utility system.

1.3 This Agreement does not constitute an agreement to purchase or deliver the IC's power. The purchase or delivery of power and other services, including station service or backup power, that the IC may require will be covered under separate agreements, possibly with other parties. The IC will be responsible for separately making all necessary arrangements (including scheduling) for delivery of electricity with the applicable Utility and provider of transmission service.

1.4 Nothing in this Agreement is intended to affect any other agreement between the Utility and the IC.

1.5 Responsibilities of the Parties.

1.5.1 The Parties shall perform all obligations of this Agreement in accordance with all applicable laws and regulations, operating requirements, and Good Utility Practice.

1.5.2 The IC shall construct, interconnect, operate, and maintain its SGF and construct, operate, and maintain its customer's interconnection facilities in accordance with the applicable manufacturer's recommended maintenance schedule, all applicable operating requirements, and in accordance with this Agreement and with Good Utility Practice.

1.5.3 The Utility shall construct, operate, and maintain its distribution and transmission system and attachment facilities in accordance with this Agreement and with Good Utility Practice.

1.5.4 The IC agrees to construct its facilities in accordance with applicable specifications that meet or exceed those provided by the National Electrical Safety Code, American National Standards Institute, Institute of Electrical and Electronics Engineers (IEEE), Underwriter's Laboratory, and operating requirements in effect at the time of construction and other applicable national and state codes and standards. The IC agrees to design, install, maintain, and operate its SGF so as to reasonably minimize the likelihood of a disturbance adversely affecting or impairing the system or equipment of the Utility or affected systems and to otherwise maintain and operate its SGF in accordance with the specifications and certifications under which the SGF was initially installed and interconnected.

1.5.5 Each Party shall operate, maintain, repair, and inspect and shall be fully responsible for the facilities that it now or subsequently may own unless otherwise specified in the Attachments to this Agreement. Each Party shall be responsible for the safe installation, maintenance, repair, and condition of their respective lines and appurtenances on their respective sides of the point of change of ownership. The Utility and the IC, as appropriate, shall provide attachment facilities and customer's interconnection facilities that adequately protect the Utility's personnel and other persons from damage and injury. The allocation of responsibility for the design, installation, operation, maintenance, and ownership of attachment facilities and Interconnection Customer's interconnection facilities shall be delineated in the Attachments to this Agreement. The design, installation, operation, and maintenance of such facilities shall be the responsibility of the owner except as otherwise provided for in this Agreement.

1.5.6 The Utility shall coordinate with all affected systems to support the interconnection.

1.5.7 The IC shall ensure "frequency ride through" capability and "voltage ride through" capability of its SGF. At the discretion of the Utility, the IC shall enable these capabilities such that its SGF shall not disconnect automatically or instantaneously from the system or equipment of the Utility and any affected systems for a defined under-frequency or over-frequency condition or for an under-voltage or over-voltage condition. The defined conditions shall be in accordance with Good Utility Practice and consistent with any standards and guidelines that are applied to other generating facilities in the balancing authority area on a comparable basis. The SGF's protective equipment settings shall comply with the Utility's automatic load-shed program. The Utility shall review the protective equipment settings to confirm compliance with the automatic load-shed program. The term "ride through" as used in this Agreement shall mean the ability of an SGF to stay connected to and synchronized with the system or equipment of the Utility and any affected systems during system disturbances within a range of conditions, in accordance with Good Utility Practice and consistent with any standards and guidelines that are applied to other generating facilities in the balancing authority on a comparable basis. The term "frequency ride through" as used in this Agreement shall mean the ability of an SGF to stay connected to and synchronized with the system or equipment of the Utility and any affected systems during system disturbances within a range of under-frequency and over-frequency conditions, in accordance with Good Utility Practice and consistent with any standards and guidelines that are applied to other generating facilities in the balancing authority area on a comparable basis. The term "voltage ride through" as used in this Agreement shall mean the ability of an SGF to stay connected to and synchronized with the system or equipment of the Utility and any affected systems during system disturbances within a range of under-voltage and over-voltage conditions, in accordance with Good Utility Practice and consistent with any standards and guidelines that are applied to other generating facilities in the balancing authority area on a comparable basis.

1.5.8 The IC shall not operate the SGF in such a way that the SGF would exceed the maximum generating capacity.

1.6 Parallel operation obligations. Once the SGF has been authorized to commence parallel operation, the IC shall abide by all rules and procedures pertaining to the parallel operation of the SGF in the applicable control area, including (i) any rules and procedures concerning the operation of generation set forth in commission-approved tariffs or by the applicable system operator for the Utility's system and (ii) the operating requirements set forth in Attachment 5 of this Agreement.

1.7 Metering. The IC shall be responsible for the Utility's reasonable and necessary cost for the purchase, installation, operation, maintenance, testing, repair, and replacement of metering and data acquisition equipment specified in Attachments 2 and 3 of this Agreement. The IC's metering (and data acquisition, as required) equipment and reporting shall conform to applicable industry rules and operating requirements.

1.8 Reactive power.

1.8.1 The IC shall design its SGF to maintain a composite power delivery at continuous rated power output at the point of interconnection at a power factor within the range of 0.95 leading to 0.95 lagging, unless mutually agreed upon or the Utility has established different requirements that apply to all similarly situated generators in the control area on a comparable basis. The requirements of this article shall not apply to wind generators.

1.8.2 The Utility is required to pay the IC for reactive power that the IC provides or absorbs from the SGF when the Utility requests the IC to operate its SGF outside the range specified in Section 1.8.1 of this Agreement, unless mutually agreed upon by the Parties. In addition, if the Utility pays its own or affiliated generators for reactive power service within the specified range, it must similarly pay the IC.

1.8.3 Payments shall be in accordance with the IC's applicable rate schedule as may be in effect and accepted by the appropriate government authority. To the extent that no rate schedule is in effect at the time the IC is required to provide or absorb reactive power under this Agreement, the IC may expeditiously file such rate schedule with the appropriate government authority, and the Utility agrees to support any request for waiver of any prior notice requirement of such authority in order to permit compensation to the IC from the time service commenced.

1.9 Terms used in this Agreement shall have the meanings specified in the definitions in Attachment 1 of this Agreement.

Article 2. Inspection, Testing, Authorization, and Right of Access

2.1 Equipment testing and inspection.

2.1.1 The IC shall test and inspect its SGF and interconnection facilities prior to interconnection. The IC shall notify the Utility of such activities no fewer than 10 business days (or as may be agreed to by the Parties) prior to such testing and inspection. Testing and inspection shall occur on a business day, unless otherwise agreed to by the Parties. The Utility may, at its own expense, send qualified personnel to the SGF site to inspect the interconnection and observe the testing. The IC shall provide the Utility a written test report when such testing and inspection is completed.

2.1.2 The Utility shall provide the IC written acknowledgment that it has received the IC's written test report. Such written acknowledgment shall not be deemed to be or construed as any representation, assurance, guarantee, or warranty by the Utility of the safety, durability, suitability, or reliability of the SGF or any associated control, protective, and safety devices owned or controlled by the IC or the quality of power produced by the SGF.

2.1.3 In addition to the Utility's observation of this IC's testing and inspection of its SGF and interconnection facilities pursuant to this Agreement, the Utility may also require inspection and testing of interconnection facilities that can impact the integrity or safety of the Utility's system or otherwise cause adverse operating effects, as described in Section 3.4.4 of this Agreement and in accordance to Good Utility Practice. Such inspection and testing activities will be performed by the Utility or a third-party independent contractor approved by the Utility and at a time mutually agreed to with the IC and will be performed at the IC's expense. The scope of required inspection and testing will be consistent across similar types of generating facilities.

2.2 Authorization required prior to parallel operation.

2.2.1 The Utility shall make reasonable efforts to list applicable parallel operation requirements in Attachment 5 of this Agreement. Additionally, the Utility shall notify the IC of any changes to these requirements as soon as they are known. The Utility shall make reasonable efforts to cooperate with the IC in meeting requirements necessary for the IC to commence parallel operations by the in-service date.

2.2.2 The IC shall not operate its SGF in parallel with the Utility's system without prior written authorization of the Utility. The Utility will provide such authorization once the Utility receives notification that the IC has complied with all applicable parallel operation requirements. Such authorization shall not be unreasonably withheld, conditioned, or delayed.

2.3 Right of access.

2.3.1 Upon reasonable notice, the Utility may send a qualified person to the premises of the IC at or before the time the SGF first produces energy to inspect the interconnection, and observe the commissioning of the SGF (including any required testing), startup, and operation for a period of up to three business days after initial start-up of the unit. In addition, the IC shall notify the Utility at least five business days prior to conducting any on-site verification testing of the SGF.

2.3.2 Following the initial inspection process described in Section 2.3 of this Agreement at reasonable hours and upon reasonable notice or at any time without notice in the event of an emergency or hazardous condition, the Utility shall have access to the IC's premises for any reasonable purpose in connection with the performance of the obligations imposed on it by this Agreement or if necessary to meet its legal obligation to provide service to its customers.

2.3.3 Each Party shall be responsible for its own costs associated with this article.

Article 3. Effective Date, Term, Termination, and Disconnection

3.1 Effective date. This Agreement shall become effective upon execution by the Parties.

3.2 Term of agreement. This Agreement shall remain in effect for a period of 10 years from the effective date or such other longer period as the IC may request and shall be automatically renewed for each successive one-year period thereafter, unless terminated earlier in accordance with Section 3.3 of this Agreement.

3.3 Termination. No termination shall become effective until the Parties have complied with all laws and regulations applicable to such termination, such as any local or Virginia Department of Environmental Quality decommissioning requirements.

3.3.1 The IC may terminate this Agreement at any time by giving the Utility 20 business days written notice and physically and permanently disconnecting the SGF from the Utility's system.

3.3.2 The Utility may terminate this Agreement upon the IC's failure to timely make the payment required by Section 6.1 of this Agreement pursuant to the milestones specified in Attachment 4 to this Agreement, or to comply with the requirements of Section 7.1.2 or 7.1.3 of this Agreement.

3.3.3 Either Party may terminate this Agreement after default pursuant to Section 7.6 of this Agreement.

3.3.4 Upon termination of this Agreement, the small generating facility will be disconnected from the Utility system. The termination of this Agreement shall not relieve either Party of its liabilities and obligations, owed or continuing, at the time of the termination.

3.4 Temporary disconnection. Temporary disconnection shall continue only for so long as reasonably necessary under Good Utility Practice.

3.4.1 "Emergency conditions" means a condition or situation that (i) in the judgment of the Party making the claim is imminently likely to endanger life or property; (ii) in the case of the Utility, is imminently likely (as determined in a nondiscriminatory manner) to cause a material adverse effect on the security of or damage to the utility system, the attachment facilities, or the electrical facilities of others to which the utility system is directly connected; or (iii) in the case of the IC, is imminently likely (as determined in a nondiscriminatory manner) to cause a material adverse effect on the security of or damage to the SGF or the customer's interconnection facilities. Under emergency conditions, the Utility may immediately suspend interconnection service and temporarily disconnect the SGF. The Utility shall notify the IC promptly when it becomes aware of an emergency condition that may reasonably be expected to affect the IC's operation of the SGF. The IC shall notify the Utility promptly when it becomes aware of an emergency condition that may reasonably be expected to affect the utility system or other affected systems. To the extent information is known, the notification shall describe the emergency condition, the extent of the damage or deficiency, the expected effect on the operation of both Parties' facilities and operations, its anticipated duration, and the necessary corrective action.

3.4.2 Routine maintenance, construction, and repair. The Utility may interrupt interconnection service or curtail the output of the SGF and temporarily disconnect the SGF from the Utility's system when necessary for routine maintenance, construction, and repairs on the Utility system. The Utility shall provide the IC with at least five business days' notice prior to such interruption unless circumstances require shorter notice. The Utility shall use reasonable efforts to coordinate such reduction or temporary disconnection with the IC.

3.4.3 Forced outages. During any forced outage, the Utility may suspend interconnection service to effect immediate repairs on the Utility system. The Utility shall use reasonable efforts to provide the IC with prior notice. If prior notice is not given, the Utility shall, upon request, provide the IC written documentation after the fact explaining the circumstances of the disconnection.

3.4.4 Adverse operating effects. The Utility shall notify the IC as soon as practicable if based on Good Utility Practice, operation of the SGF may cause disruption or deterioration of service to other customers served from the Utility system or affected systems or if operating the SGF could cause damage to the Utility system or affected systems. Supporting documentation used to reach the decision to disconnect shall be provided to the IC upon request. If, after notice, the IC fails to remedy the adverse operating effect within a reasonable time, the Utility may disconnect the SGF. The Utility shall provide the IC with a five-business-day notice of such disconnection, unless the provisions of Section 3.4.1 of this Agreement apply.

3.4.5 Modification of the small generating facility. The IC must receive written authorization from the Utility before making changes to the SGF or mode of operations that may have a material impact on the safety or reliability of the utility system or affected system. Such authorization shall not be unreasonably withheld. Modifications shall be done in accordance with Good Utility Practice. If the IC makes such modifications without the Utility's prior written authorization, the latter shall have the right to temporarily disconnect the SGF.

3.4.6 Reconnection. The Parties shall cooperate with each other to restore the SGF, interconnection facilities, and the utility system to their normal operating state as soon as reasonably practicable following a temporary disconnection.

Article 4. Cost Responsibility for Interconnection Customer's Interconnection Facilities, Attachment Facilities, and Distribution Upgrades

4.1 Customer's interconnection facilities. The IC shall be responsible for the costs associated with owning, operating, maintaining, repairing, and replacing the customer's interconnection facilities.

4.2 Attachment facilities. The IC shall pay for one-time and ongoing costs of installing, owning, operating, maintaining, and replacing the attachment facilities itemized in Attachment 2 of this Agreement. The Utility shall provide an estimated cost for the purchase and construction of the attachment facilities and provide a detailed itemization of such costs. Costs associated with attachment facilities may be shared with other entities that may benefit from such facilities by agreement of the IC, such other entities, and the Utility.

4.3 Distribution upgrades. The Utility shall design, procure, construct, install, and own the distribution upgrades described in Attachment 6 of this Agreement. The actual cost of the distribution upgrades shall be directly assigned to the IC. If the Utility and the IC agree, the IC may construct distribution upgrades that are located on land owned by the IC.

Article 5. Transmission System

5.1 Transmission system upgrades.

5.1.1 No portion of Section 5.1 of this Agreement shall apply unless the interconnection of the SGF requires transmission system upgrades.

5.1.2 The Utility shall design, procure, construct, install, and own the transmission system upgrades described in Attachment 6 of this Agreement. If the Utility and the IC agree, the IC may construct transmission system upgrades that are located on land owned by the IC. The costs of the transmission system upgrades shall be borne by the IC.

5.1.3 Notwithstanding any other provision of Section 5.1 of Agreement, in the event and to the extent an RTE has rules, tariffs, agreements, or procedures properly applying to transmission system upgrades, the provisions of Section 5.2 of this Agreement shall apply to such upgrades.

5.2 Regional transmission entities. Notwithstanding any other provision of this Agreement, if the Utility's transmission system is under the control of an RTE and the RTE has rules, tariffs, agreements, or procedures properly governing operation of the SGF, transmission of the output of the SGF, sale of the output of the SGF, system upgrades required for interconnection of the SGF, or other aspects of the interconnection and operation of the SGF, the IC and the Utility shall comply with the applicable agreements, rules, tariffs, or procedures.

5.3 Rights under other agreements. Notwithstanding any other provision of this Agreement, nothing in this Agreement shall be construed as relinquishing or foreclosing any rights, including firm transmission rights, capacity rights, transmission congestion rights, or transmission credits, that the IC shall be entitled to now or in the future under any other agreement or tariff as a result of or otherwise associated with system upgrades, including the right to obtain cash reimbursements or transmission credits for transmission service that is not associated with the SGF.

Article 6. Billing, Payment, Milestones, and Financial Security

6.1 Billing and payment procedures and final accounting. The IC shall be responsible for pre-payment of all estimated Interconnection Facilities, Attachment Facilities, and Upgrade costs identified in Attachment 2 and Attachment 6 to this Agreement, or the provision of financial security, if acceptable to the Utility as provided for in Section 6.3. Payment or financial security must be received by close of business 30 business days after the date the SGIA is delivered to the IC for signature. Failure to comply with the requirements of this section after an opportunity to cure shall result in the interconnection request being deemed withdrawn. Within 120 business days of the Utility completing the construction and installation of the attachment facilities or distribution upgrades described in the Attachments to this Agreement, the Utility shall provide the IC with a final accounting report of any difference between (i) the IC's cost responsibility for the actual cost of such facilities or upgrades and (ii) the IC's previous aggregate payments to the Utility for such facilities or upgrades. The Utility shall make reasonable efforts to meet the timeframe for issuance of the Final Accounting Report. If the Utility is unable to timely issue the Final Accounting Report, the Utility shall provide written notice to the IC explaining the reason or reasons for the delay and provide an estimated time by which it can issue the Final Accounting Report. If the IC's cost responsibility exceeds its previous aggregate payments, the Utility shall invoice the IC for the amount due, and the IC shall make payment to the Utility within 20 business days. If the IC's previous aggregate payments exceed its cost responsibility under this Agreement, the Utility shall refund to the IC an amount equal to the difference within 20 business days of the final accounting report.

6.2 Milestones. The Parties shall agree on milestones for which each Party is responsible, and such milestone shall be listed in Attachment 4 of this Agreement. A Party's milestones obligations may be modified by agreement. If a Party anticipates that it will be unable to meet a milestone for any reason other than a force majeure event, it shall immediately (i) notify the other Party of the reason for not meeting the milestone, (ii) propose the earliest reasonable alternate date by which it can attain this and future milestones, and (iii) request appropriate amendments to Attachment 4. The Party affected by the failure to meet a milestone shall not withhold agreement to such an amendment unless it will suffer uncompensated economic or operational harm from the delay, the delay will materially affect the schedule of another IC with subordinate queue position, attainment of the same milestone has previously been delayed, or it has reason to believe that the delay in meeting the milestone is intentional or unwarranted notwithstanding the circumstances explained by the Party proposing the amendment.

6.3 Financial security arrangements. Within the timeframe provided for in Section 6.1, the IC may provide the Utility, at the IC's option, in lieu of prepayment, a guarantee, a surety bond, letter of credit, or other form of security that is reasonably acceptable to the Utility and is consistent with the Uniform Commercial Code of Virginia. Such security for payment shall be accepted prior to the Utility's commencement of the design, procurement, installation, or construction of a discrete portion of the attachment facilities and distribution upgrades and shall be in an amount sufficient to cover the costs for designing, procuring, installing, and constructing the applicable portion of the attachment facilities and distribution upgrades. The IC's financial security under this provision shall be reduced on a dollar-for-dollar basis for payments made to the Utility under this Agreement during its term pursuant to the milestone schedule established in Appendix 4. In addition:

6.3.1 The guarantee must be made by an entity that meets the creditworthiness requirements of the Utility and contain terms and conditions that guarantee payment of any amount that may be due from the IC, up to an agreed-to maximum amount.

6.3.2 The letter of credit or surety bond must be issued by a financial institution or insured reasonably acceptable to the Utility and must specify a reasonable expiration date.

Article 7. Assignment, Liability, Indemnity, Force Majeure, Consequential Damages, and Default

7.1 Assignment.

7.1.1 The IC shall notify the Utility of the pending sale of an existing SGF in writing. The IC shall provide the Utility with information regarding whether the sale is a change of ownership of the SGF to a new legal entity or a change of control of the existing legal entity.

7.1.2 The IC shall promptly notify the Utility of the final date of sale and transfer date of ownership in writing. The purchaser of the SGF shall confirm to the Utility the final date of sale and transfer date of ownership in writing.

7.1.3 This Agreement shall not survive the transfer of ownership of the SGF to a new legal entity owner. The new owner shall submit a new interconnection request along with a processing fee of $500 to the Utility within 20 business days of the transfer of ownership or, if the facility has been constructed, the Utility's interconnection facilities shall be removed or disabled and the SGF disconnected from the Utility's system. The Utility shall not study or inspect the SGF unless the new owner's interconnection request indicates that a material modification has occurred or is proposed.

7.1.4 This Agreement shall survive a change of control of the SGF's legal entity owner, where only the contact information in the interconnection agreement must be modified. The new owner shall submit a new interconnection request along with a processing fee of $500 to the Utility within 20 business days of the change of control and provide the new contact information. The Utility shall not study or inspect the SGF unless the new owner's interconnection request indicates that a material modification has occurred or is proposed.

7.1.5 The IC shall have the right to assign this Agreement, without the consent of the Utility, for collateral security purposes to aid in providing financing for the SGF, provided that the IC will promptly notify the Utility of any such assignment. Assignment shall not relieve a Party of its obligations, nor shall a Party's obligations be enlarged, in whole or in part, by reason thereof.

7.1.6 Any attempted assignment that violates this article is void and ineffective.

7.2 Limitation of liability. Each Party's liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney fees, relating to or arising from any act or omission in its performance of this Agreement shall be limited to the amount of direct damage actually incurred. In no event shall either Party be liable to the other Party for any indirect, special, incidental, consequential, or punitive damages of any kind, except as authorized by this Agreement.

7.3 Indemnity.

7.3.1 This provision protects each Party from liability incurred to third parties as a result of carrying out the provisions of this Agreement. Liability under this provision is exempt from the general limitations on liability found in Section 7.2 of this Agreement.

7.3.2 The Parties shall at all times indemnify, defend, and hold the other Party harmless from all damages; losses; claims, including claims and actions relating to injury to or death of any person or damage to property; demand; suits; recoveries; costs and expenses; court costs; attorney fees; and all other obligations by or to third parties arising out of or resulting from the other Party's action or failure to meet its obligations under this Agreement on behalf of the indemnifying Party, except in cases of gross negligence or intentional wrongdoing by the indemnified Party.

7.3.3 If an indemnified Party is entitled to indemnification under this Article 7 of this Agreement as a result of a claim by a third party, and the indemnifying Party fails, after notice and reasonable opportunity, to proceed under this Article 7 of this Agreement to assume the defense of such claim, such indemnified person may at the expense of the indemnifying Party contest, settle, or consent to the entry of any judgment with respect to, or pay in full, such claim.

7.3.4 If an indemnifying Party is obligated to indemnify and hold any indemnified person harmless under this Article 7 of this Agreement, the amount owing to the indemnified person shall be the amount of such indemnified person's actual loss, net of any insurance or other recovery.

7.3.5 Promptly after receipt by an indemnified person of any claim or notice of the commencement of any action or administrative or legal proceeding or small generator investigation as to which the indemnity provided for in this Article 7 of this Agreement may apply, the indemnified person shall notify the indemnifying Party of such fact. Any failure of or delay in such notification shall not affect a Party's indemnification obligation unless such failure or delay is materially prejudicial to the indemnifying Party.

7.4 Consequential damages. Other than as expressly provided for in this Agreement, neither Party shall be liable under any provision of this Agreement for any losses, damages, costs, or expenses for any special, indirect, incidental, consequential, or punitive damages, including loss of profit or revenue; loss of the use of equipment; cost of capital; cost of temporary equipment or services, whether based in whole or in part in contract; in tort, including negligence, strict liability; or any other theory of liability; provided that damages for which a Party may be liable to the other Party under another agreement will not be considered to be special, indirect, incidental, or consequential damages.

7.5 Force majeure.

7.5.1 As used in this article, "force majeure event" means any act of God; labor disturbance; act of the public enemy; war; insurrection; riot; fire; storm or flood; explosion; breakage or accident to machinery or equipment; any order, regulation, or restriction imposed by governmental, military, or lawfully established civilian authorities; or any other cause beyond a Party's control. A "force majeure event" does not include an act of negligence or intentional wrongdoing.

7.5.2 If a force majeure event prevents a Party from fulfilling any obligation under this Agreement, the Party affected by the force majeure event ("Affected Party") shall promptly notify the other Party, either in writing or via the telephone, of the existence of the force majeure event. The notification must specify in reasonable detail the circumstances of the force majeure event, its expected duration, and the steps that the Affected Party is taking to mitigate the effects of the event on its performance. The Affected Party shall keep the other Party informed on a continuing basis of developments relating to the force majeure event until the event ends. The Affected Party will be entitled to suspend or modify its performance of obligations under this Agreement (other than the obligation to make payments) only to the extent that the effect of the force majeure event cannot be mitigated by the use of reasonable efforts. The Affected Party will use reasonable efforts to resume its performance as soon as possible.

7.6 Default.

7.6.1 No default shall exist where such failure to discharge an obligation (other than the payment of money) is the result of a force majeure event as defined in this Agreement or the result of an act or omission of the other Party. Upon a default, the nondefaulting Party shall give written notice of such default to the defaulting Party. Except as provided in Section 7.6.2 of this Agreement, the defaulting Party shall have 40 business days from receipt of the default notice within which to cure the default; however, if the default is not capable of cure within 40 business days, the defaulting Party shall commence the cure within 10 business days after notice and continuously and diligently complete the cure within six months from receipt of the default notice, and if cured within such time, the default specified in such notice shall cease to exist.

7.6.2 If a default is not cured as provided in this Article 7 of this Agreement or if a default is not capable of being cured within the period provided for in this Article 7 of this Agreement, the nondefaulting Party shall have the right to terminate this Agreement by written notice at any time until cure occurs and be relieved of any further obligation in this Agreement, and whether or not that Party terminates this Agreement, to recover from the defaulting Party all amounts due pursuant to this Agreement, plus all other damages and remedies to which it is entitled at law or in equity. The provisions of this Article 7 of this Agreement will survive termination of this Agreement.

Article 8. Insurance

8.1 The IC shall, at its own expense, maintain in force general liability insurance without any exclusion for liabilities related to the interconnection undertaken pursuant to this Agreement. The amount of such insurance shall be in accordance with 20VAC5-314-160. The IC shall obtain additional insurance only if necessary as a function of owning and operating a generating facility. Insurance shall be obtained from an insurance provider authorized to conduct business in the Commonwealth of Virginia. Certification that such insurance is in effect shall be provided upon request of the Utility, except that the IC shall show proof of insurance to the Utility no later than 10 business days prior to the anticipated commercial operation date of the SGF. An IC of sufficient creditworthiness may propose to self-insure for such liabilities, and such a proposal shall not be unreasonably rejected.

8.2 The Utility agrees to maintain general liability insurance or self-insurance consistent with the Utility's commercial practice. Such insurance or self-insurance shall not exclude coverage for the Utility's liabilities undertaken pursuant to this Agreement.

8.3 The Parties further agree to notify each other whenever an accident or incident occurs resulting in any injuries or damages that are included within the scope of coverage of such insurance, whether or not such coverage is sought.

Article 9. Confidentiality

9.1 Confidential information shall mean any confidential or proprietary information provided by one Party to the other Party that is clearly marked or otherwise designated "Confidential." For purposes of this Agreement all design, operating specifications, and metering data provided by the IC shall be deemed confidential information regardless of whether it is clearly marked or otherwise designated as such.

9.2 Confidential information does not include information previously in the public domain, required to be publicly submitted or divulged by governmental authorities (after notice to the other Party and after exhausting any opportunity to oppose such publication or release), or necessary to be divulged in an action to enforce this Agreement. Each Party receiving confidential information shall hold such information in confidence and shall not disclose it to any third party or the public without the prior written authorization from the Party providing that information, except to fulfill obligations under this Agreement or to fulfill legal or regulatory requirements.

9.2.1 Each Party shall employ at least the same standard of care to protect confidential information obtained from the other Party as it employs to protect its own confidential information.

9.2.2 Each Party is entitled to equitable relief, by injunction or otherwise, to enforce its rights under this provision to prevent the release of confidential information without bond or proof of damages and may seek other remedies available at law or in equity for breach of this provision.

9.3 Notwithstanding anything in this Agreement to the contrary, if the Virginia State Corporation Commission ("Commission"), during the course of an investigation or otherwise, requests information from one of the Parties that is otherwise required to be maintained in confidence, the Party shall provide the requested information to the commission, within the time provided for in the request for information. In providing the information to the commission, the Party may request that the information be treated as confidential and nonpublic by the commission and that the information be withheld from public disclosure. Parties are prohibited from notifying the other Party prior to the release of the confidential information to the commission. A Party shall notify the other Party when it is notified by the commission that a request to release confidential information has been received by the commission, at which time either Party may respond to the commission before such information would be made public.

Article 10. Disputes

10.1 The Parties agree to attempt to resolve all disputes arising out of the interconnection process according to the provisions of this Article 10 of this Agreement.

10.2 In the event of a dispute, either Party shall provide the other Party with a written notice of dispute. Such notice shall describe in detail the nature of the dispute. The Parties shall make a good faith effort to resolve the dispute informally within 10 business days.

10.3 If the dispute has not been resolved within 10 business days after receipt of the notice, either Party may seek resolution assistance from the Division of Public Utility Regulation where the matter will be handled as an informal complaint.

Alternatively, either Party may, upon mutual agreement, seek resolution through the assistance of a dispute resolution service. The dispute resolution service will assist the Parties in either resolving the dispute or in selecting an appropriate dispute resolution venue (e.g., mediation, settlement judge, early neutral evaluation, or technical expert) to assist the Parties in resolving their dispute. Each Party shall conduct all negotiations in good faith and shall be responsible for one-half of any costs paid to neutral third parties.

10.4 If the dispute remains unresolved, either Party may petition the commission to handle the dispute as a formal complaint or may exercise whatever rights and remedies it may have in equity or law consistent with the terms of this Agreement.

Article 11. Taxes

11.1 The Parties agree to follow all applicable tax laws and regulations.

11.2 Each Party shall cooperate with the other to maintain the other Party's tax status. Nothing in this Agreement is intended to adversely affect the Utility's tax exempt status with respect to the issuance of bonds including local furnishing bonds.

Article 12. Miscellaneous

12.1 Governing law, regulatory authority, and rules. The validity, interpretation, and enforcement of this Agreement and each of its provisions shall be governed by the laws of the Commonwealth of Virginia without regard to its conflicts of law principles. This Agreement is subject to all applicable laws and regulations. Each Party expressly reserves the right to seek changes in, appeal, or otherwise contest any laws, orders, or regulations of a governmental authority.

12.2 Amendment. The Parties may amend this Agreement by a written instrument duly executed by both Parties.

12.3 No third-party beneficiaries. This Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations in this Agreement assumed are solely for the use and benefit of the Parties, their successors in interest, and where permitted, their assigns.

12.4 Waiver.

12.4.1 The failure of a Party to this Agreement to insist, on any occasion, upon strict performance of any provision of this Agreement will not be considered a waiver of any obligation, right, or duty of or duty imposed upon such Party.

12.4.2 Any waiver at any time by either Party of its rights with respect to this Agreement shall not be deemed to be a continuing waiver or a waiver with respect to any other failure to comply with any other obligation, right, or duty of this Agreement. Termination or default of this Agreement for any reason by the IC shall not constitute a waiver of the IC's legal rights to obtain an interconnection from the Utility. Any waiver of this Agreement shall, if requested, be provided in writing.

12.5 Entire agreement. This Agreement, including all Attachments to this Agreement, constitutes the entire agreement between the Parties with reference to the subject matter hereof and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of this Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party's compliance with its obligations under this Agreement.

12.6 Multiple counterparts. This Agreement may be executed in two or more counterparts, each of which is deemed an original but all constitute one and the same instrument.

12.7 No partnership. This Agreement shall not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power, or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party.

12.8 Severability. If any provision or portion of this Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (i) such portion or provision shall be deemed separate and independent, (ii) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (iii) the remainder of this Agreement shall remain in full force and effect.

12.9 Environmental releases. Each Party shall notify the other Party, first orally and then in writing, of the release of any hazardous substances, any asbestos or lead abatement activities, or any type of remediation activities related to the SGF, the customer's interconnection facilities, or attachment facilities, each of which may reasonably be expected to affect the other Party. The notifying Party shall (i) provide the notice as soon as practicable, provided such Party makes a good faith effort to provide the notice no later than 24 hours after such Party becomes aware of the occurrence, and (ii) promptly furnish to the other Party copies of any publicly available reports filed with any governmental authorities addressing such events.

12.10 Subcontractors. Nothing in this Agreement shall prevent a Party from utilizing the services of any subcontractor as it deems appropriate to perform its obligations under this Agreement; however, each Party shall require its subcontractors to comply with all applicable terms and conditions of this Agreement in providing such services, and each Party shall remain primarily liable to the other Party for the performance of such subcontractor.

12.10.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under this Agreement. The hiring Party shall be fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made; however, in no event shall the Utility be liable for the actions or inactions of the IC or its subcontractors with respect to obligations of the IC under this Agreement. Any applicable obligation imposed by this Agreement upon the hiring Party shall be equally binding upon and shall be construed as having application to any subcontractor of such Party.

12.10.2 The obligations under this article will not be limited in any way by any limitation of subcontractor's insurance.

12.11 Reservation of rights. The Utility shall have the right to make a unilateral filing with the commission to modify this Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule, or regulation, and the IC shall have the right to make a unilateral filing with the commission to modify this Agreement; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties except to the extent that the Parties otherwise agree as provided in this Agreement.

Article 13. Notices

13.1 General. Unless otherwise provided in this Agreement, any written notice, demand, or request required or authorized in connection with this Agreement shall be deemed properly given if delivered in person, delivered by recognized national courier service, or sent by first class mail, postage prepaid, to the person listed:

13.2 Billing and payment.

Billings and payments shall be sent to the addresses listed:

13.3 Alternative forms of notice. Any notice or request required or permitted to be given by either Party to the other and not required by this Agreement to be given in writing may be so given by telephone, facsimile, or email to the telephone numbers and email addresses listed:

13.4 Designated operating representative. The Parties may also designate operating representatives to conduct the communications that may be necessary or convenient for the administration of this Agreement. This person will also serve as the point of contact with respect to operations and maintenance of the Party's facilities.

13.5 Changes to the notice information. Either Party may change this information by giving five business days' written notice prior to the effective date of the change.

Article 14. Signatures

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized representatives.

Attachment 1 to Schedule 10

Glossary of Terms

The following terms when used in Schedule 10 of 20VAC5-314-170 will have the following meanings:

"Affected system" means an electric utility system other than that of the Utility that may be affected by the proposed interconnection.

"Affected system operator" means an entity that operates an affected system, or if the affected system is under the operational control of an independent system operator or a regional transmission entity, such independent entity.

"Applicable laws and regulations" means all duly promulgated applicable federal, state, and local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or administrative orders; permits; and other duly authorized actions of any governmental authority.

"Attachment facilities" means the facilities and equipment owned, operated, and maintained by the Utility that are built new in order to physically connect the customer's interconnection facilities to the Utility system. Attachment facilities shall not include distribution upgrades or previously existing distribution and transmission facilities.

"Balancing authority" means the responsible entity that integrates resource plans ahead of time, maintains load-interchange-generation balance within a balancing authority area, and supports interconnection frequency in real time.

"Balancing authority area" means the collection of generation, transmission, and loads within the metered boundaries of the balancing authority. The balancing authority maintains load-resource balance within this area.

"Business day" means Monday through Friday, excluding federal holidays.

"Calendar day" means Sunday through Saturday, including all holidays.

"Certified" has the meaning ascribed to it in Schedule 2 of 20VAC5-314-170.

"Commission" means the Virginia State Corporation Commission.

"Customer's interconnection facilities" means all the facilities and equipment owned, operated and maintained by the IC, between the SGF and the point of interconnection necessary to physically and electrically interconnect the SGF to the utility system.

"Default" means the failure of a breaching Party to cure its breach under the Small Generator Interconnection Agreement.

"Distribution system" means the Utility's facilities and equipment generally delivering electricity to ultimate customers from substations supplied by higher voltages (usually at transmission level). For purposes of this Agreement, all portions of the Utility's transmission system regulated by the commission for which interconnections are not within Federal Energy Regulatory Commission jurisdiction are considered also to be subject to commission regulations.

"Distribution upgrades" means the additions, modifications, and enhancements made to the Utility's distribution system on the Utility's side of the point of interconnection necessary to ensure continued system reliability and power quality on the Utility's distribution system caused by the interconnection of the small generating facility. Distribution upgrades do not include network upgrades or the customer's interconnection facilities or the Utility's attachment facilities.

"Facilities study" has the meaning ascribed to it in 20VAC5-314-70 E.

"Feasibility study" has the meaning ascribed to it in 20VAC5-314-70 C.

"FERC" means the Federal Energy Regulatory Commission.

"Good Utility Practice" means any of the practices, methods, and acts engaged in or approved by a significant portion of the electric industry during the relevant time period, or any of the practices, methods, and acts that, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost, consistent with good business practices, reliability, safety, and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others but rather to include practices, methods, or acts generally accepted in the region.

"Governmental authority" means any federal, state, local, or other governmental regulatory or administrative agency, court, commission, department, board, or other governmental subdivision or legislature or rulemaking board, tribunal, or other governmental authority having jurisdiction over the Parties, their respective facilities, or the respective services they provide and exercising or entitled to exercise any administrative, executive, police, or taxing authority or power; provided that such term does not include the IC, the Utility, or a Utility affiliate.

"Interconnection Customer" or "IC" means any entity proposing to interconnect a new SGF with the utility system.

"Interconnection request" means the IC's request, in accordance with the Regulations Governing Interconnection of Small Electrical Generators (20VAC5-314), to interconnect a new small generating facility or to increase the capacity of or make a material modification to the operating characteristics of an existing small generating facility that is interconnected with the Utility system.

"Interconnection studies" means the studies conducted by the Utility or a third party agreed to by the Utility and the IC in order to determine the interaction of the SGF with the Utility system and the affected systems in order to specify any modifications to the SGF or the electric systems studied to ensure safe and reliable operation of the SGF in parallel with the Utility system.

"Material modification" has the meaning ascribed to it in 20VAC5-314-39.

"Maximum generating capacity" means the maximum continuous electrical output of the SGF at any time as measured at the point of interconnection or the maximum kW delivered to the Utility during any metering period, whichever is greater. Requested maximum generating capacity will be specified by the IC in the interconnection request and an approved maximum generating capacity will subsequently be included as a limitation in the interconnection agreement.

"Network upgrades" means additions, modifications, and enhancements to the Utility's transmission system that are required in order to accommodate the interconnection of the small generating facility with the Utility's system. Network upgrades do not include distribution system upgrades.

"Operating requirements" means any operating and technical requirements that may be applicable due to regional transmission entity, independent system operator, control area, or the Utility's requirements, including those set forth in this Small Generator Interconnection Agreement.

"Party" means the Utility or the IC.

"Point of interconnection" means the point where the customer's interconnection facilities connect physically and electrically to the Utility system.

"Processing fee" means a nonrefundable cost to administer or file an application.

"Queue number" refers to the number assigned by the Utility that establishes a customer's interconnection request's position in the study queue relative to all other valid interconnection requests. A lower queue number will be studied prior to a higher queue number, except in the case of interdependent projects. The queue number of each interconnection request shall be used to determine the cost responsibility for the upgrades necessary to accommodate the interconnection.

"Queue position" means the order of a valid interconnection request relative to all other pending valid interconnection request based on queue number.

"Regional Transmission Entity" or "RTE" shall refer to an entity having the management and control of a Utility's transmission system as further set forth in § 56-579 of the Code of Virginia.

"Small generating facility" or "generating facility" or "generator" or "SGF" means the IC's equipment used for the production of electricity, as identified in the interconnection request.

"Small Generator Interconnection Agreement" or "SGIA" means the agreement between the Utility and the IC as set forth in this Schedule 10 of 20VAC5-314-170.

"Supplemental review" has the meaning ascribed to it in 20VAC5-314-60 H.

"System" or "Utility system" means the distribution and transmission facilities owned, controlled, or operated by the Utility that are used to deliver electricity.

"System impact study" has the meaning ascribed to it in 20VAC5-314-70 D.

"Tariff" means the rates, terms, and conditions filed by the Utility with the commission for the purpose of providing commission-regulated electric service to retail customers.

"Transmission system" means the Utility's facilities and equipment delivering electric energy to the distribution system; such facilities usually being operated at voltage levels above the Utility's typical distribution system voltage levels.

"Utility" means the public utility company subject to regulation by the Commission pursuant to Chapter 10 (§ 56-232 et seq.) of Title 56 of the Code of Virginia with regard to rates or service quality to whose system the IC proposes to interconnect a small generating facility.

Attachment 2 to Schedule 10

Description and Costs of the Small Generating Facility, Customer's Interconnection Facilities, Attachment Facilities, and Metering Equipment

The following shall be provided in this exhibit:

1. An itemization of the major equipment components owned by the IC and the Utility, including components of the SGF, the customer's interconnection facilities, attachment facilities, and metering equipment. Such itemization shall identify the owner of each item listed.

2. The Utility's estimated itemized cost of its attachment facilities and its metering equipment.

3. The Utility's estimated cost of its annual operation and maintenance expenses associated with attachment facilities and metering equipment to be charged to the IC.

Attachment 3 to Schedule 10

One-line Diagram Depicting the Small Generating Facility, Customer's Interconnection Facilities, Attachment Facilities, Metering Equipment, and Distribution Upgrades

(Diagram and description to be provided by IC unless the Utility elects to prepare this schedule. If this schedule is prepared by the Utility, the IC shall provide a one-line diagram of the SGF and IC's interconnection facilities for the Utility to use as a data source for preparing this schedule.)

Attachment 4 to Schedule 10

Milestones

In-Service Date:___________________

Critical milestones and responsibility as agreed to by the Parties:

Attachment 5 to Schedule 10

Additional Operating Requirements for the Utility System and Affected Systems Needed to Support the Interconnection Customer's Needs

The Utility shall provide requirements that must be met by the IC prior to initiating parallel operation with the utility system.

Attachment 6 to Schedule 10

Utility's Description of its Distribution and Transmission Upgrades and Estimate of Upgrade Costs

The Utility shall provide the following in this attachment:

1. An itemized list of the upgrades required to be constructed by the Utility prior to interconnection of the SGF, with transmission and distribution related upgrades shown separately.

2. An estimate of the cost of each item listed pursuant to Item 1 of this Attachment.

3. An estimate of annual operation and maintenance expenses associated with such upgrades that are to be charged to the IC, shown separately for transmission and distribution related items.