VII. Interconnection Rules for Network Systems

The CEC report recognizes a need to develop rules for DG interconnections to distribution systems that have a network configuration. There are already a few major network systems in San Francisco, Oakland, and Sacramento. According to the CEC's report, the interconnections to these systems have been difficult, requiring the utilities to study each DG project and fashion their interconnection requirements individually due to lack of experience and guidelines.

The Working Group believes this is an issue that requires substantial attention in the near future. Its recommendations for pursuing this matter, which no party opposed, are as follows:

1. Develop definitions, characteristics, and design philosophies for different types of networks to provide a common basis of understanding

2. Identify network systems in California

· Locations

· Physical characteristics

3. Identify the stakeholders nationwide who may be able to provide information

· Utilities with network systems

· DG suppliers

· Customers on network systems who may be interested in DG

· Regulators

· Network equipment providers and other experts

4. Identify and investigate other projects and sources of documentation

· DUIT proposed network meeting and network-related testing

· FOCUS-III project monitoring network-system DG sites

· Massachusetts DG Collaborative

· PG&E white paper and other technical literature

· Institute of Electrical and Electronics Engineers (IEEE) Standard 1547.6 (SCC21 Chairman DeBlasio hopes to submit a Project Authorization Request to the IEEE board for this new activity in the first half of 2005)

· Manufacturer data sheets/white papers

5. Identify and investigate the availability of other rules and requirements

6. Identify and investigate existing distributed energy resources on networks

7. Identify problems and solutions

· Experience from utilities

· Experience from system integrators

8. Investigate costs of protection schemes and protector rework

The CEC supports this process. We will direct the Working Group to pursue it and report its progress to the CEC and this Commission in a formal filing to be made no later than March 31, 2006.

Assignment of Proceeding

Michael R. Peevey is the Assigned Commissioner and Kim Malcolm is the assigned Administrative Law Judge (ALJ) in this proceeding.