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DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES LABOR AND ECONOMIC
GROWTH
PUBLIC SERVICE COMMISSION
ELECTRIC INTERCONNECTION STANDARDS
(By authority conferred on the public service commission by section 7 of 1909
PA 106, MCL 460.557, section 5 of 1919 PA 419, MCL 460.55, and sections 4, 6,
and 10e of 1939 PA 3, MCL 460.4, 460.6, and 460.10e)
DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES LABOR AND ECONOMIC GROWTH
R 460.481 Definitions.
Rule 1. (1) As used in these rules:
(a) “Applicant” means the legally responsible person applying to an electric utility to
interconnect a project with the electric utility’s distribution system.
(b) “Application review” means a review by the electric utility of the completed standard
application form for interconnection, to determine if an engineering review or distribution
system study is needed.
(c) “Category 1” means a project of 20 kW or less.
(d) “Category 2” means a project of greater than 20 kW and not more than 200 kW.
(e) “Category 3” means a project of greater than 200 kW and not more than 1 MW.
(f) “Category 4” means a project of greater than 1 MW.
(g) “Certified equipment” means a generating, control or protective system that has been
certified by a nationally recognized testing laboratory as meeting acceptable safety and reliability
standards.
(h) “Commission” means the Michigan Public Service Commission (“MPSC”).
(i) “Commissioning test” mean the process of documenting and verifying the performance of
a project to confirm that it operates in conformity with its design specifications.
(j) “Customer” means any person who is receiving electric service from an electric utility’s
distribution system.
(k) "Distribution system" means the structures, equipment, and facilities operated by an
electric utility to deliver electricity to end users, not including transmission facilities that are
subject to the jurisdiction of the federal energy regulatory commission.
(l) “Distribution system study” means a study to determine if a distribution system upgrade is
needed to accommodate the proposed project and to determine the cost of any such upgrade.
(m) “Engineering review” means a study that may be undertaken by an electric utility, in
response to its receipt of a completed standard application form for interconnection, to determine
the suitability of the installation.
(n) "Interconnection" means the process administered by an electric utility to implement the
electrical connection of a project with a distribution system, so that parallel operation can occur.
(o) “Interconnection disconnect switch” means a mechanical device used to disconnect a
project from a distribution system.
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(p) "Interconnection procedures" mean the requirements adopted by each electric utility and
approved by the commission to govern interconnection.
(q) “Islanding” means a condition on the distribution system in which a project delivers
power to customers using a portion of the distribution system that is electrically isolated from the
remainder of the distribution system.
(r) “kW” means kilowatt.
(s) “Material modification” means any modification that changes the maximum electrical
output of a project or changes the interconnection equipment, including:
(i) Changing from certified to non-certified devices.
(ii) Replacing a component with a component of different functionality or UL listing.
(t) “MW” means megawatt.
(u) “Nationally recognized testing laboratory” means any testing laboratory recognized by
the U.S. Department of Labor Occupational Safety and Health Administration’s accreditation
program.
(v) “Parallel operation” means the operation, for longer than 100 milliseconds, of an on-site
project while connected to the energized distribution system.
(w) "Project" means a merchant plant or other electric generating equipment and associated
facilities that are not owned or operated by an electric utility.
(x) “Standard application form” means MPSC form xxxx for Category 1 projects or MPSC
form xxx for Category 2 to 4 projects, or an essentially equivalent form published by an electric
utility and approved by the commission.
(y) “Standard interconnection agreement” means MPSC form xxxx for Category 1 projects or
MPSC form xxx for Category 2 to 4 projects, or an essentially equivalent form published by an
electric utility and approved by the commission.
(z) “UL” means Underwriters Laboratory.
(aa) “Working days” means days excluding Saturdays, Sundays, and other days when the
offices of the electric utility are not open to the public.
(2) A term defined in section 10g of 1939 PA 3, MCL 460.10g, has the same meaning when
used in these rules.
R 460.482 Designated point of contact.
Rule 2. (1) Each electric utility shall designate one initial point of contact for all customer
inquiries related to interconnection and from which interested parties can obtain interconnection
procedures and the appropriate standard application and interconnection agreement forms. Each
electric utility shall have current information concerning its designated point of contact on file
with the commission.
R 460.483 Electric utility interconnection procedures.
Rule 3. (1) Each electric utility shall file an application for approval of proposed
interconnection procedures within 30 days of the effective date of these rules. Two or more
electric utilities may file a joint application proposing a single set of interconnection procedures.
(2) The commission may approve, modify, or reject the proposed interconnection procedures.
The commission shall issue its approval if the procedures, as proposed by the electric utility or
with modifications required by the commission, meet all of the following requirements:
(a) The interconnection procedures shall prescribe a process for an applicant to apply to an
electric utility for an interconnection. The procedures shall include standard form applications
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applicable to all Categories 1 projects and Category 2 to 4 projects and standard interconnection
agreements applicable to all Category 1 projects and Category 2 to 4 projects. A separate
application shall be required for each project or project site.
(b) The interconnection procedures shall adopt the steps for processing an application as
provided in R 460.485.
(c) The interconnection procedures shall specify technical, engineering, and operational
requirements that are suitable for the electric utility's distribution system. The procedures shall
include provisions that apply specifically to a project that designates some or all of its electrical
output for sale to an electric utility or a third party using an electric utility’s distribution system.
(d) The interconnection procedures shall make provisions that are appropriate for the size and
capacity of a project as they affect the technical and engineering complexity of the
interconnection. The procedures shall include a distinct set of requirements for each of the
following project capacity classifications:
(i) Category 1, 20 kilowatts or less.
(ii) Category 2, greater than 20 kW to 200 kW.
(iii) Category 3, greater than 200 kW to 1 MW.
(iv) Category 4, greater than 1 megawatt.
(e) The interconnection procedures shall include a schedule of application review fees,
engineering review fees, and distribution study fees established by the commission.
(f) The interconnection procedures shall include a schedule of liability insurance requirements
established by the commission.
(g) The interconnection procedures must be consistent with generally accepted industry practices
and guidelines.
(h) The interconnection procedures must ensure the reliability of electric service and the safety of
customers, utility employees, and the general public.
(i) The interconnection procedures may include an informal process for obtaining a waiver to
technical requirements described in the interconnection procedures provided compliance with
these rules is ensured.
(j) The interconnection procedures shall ensure compliance with these rules.
R 460.484 Fees.
Rule 4. (1) The electric utility shall specify the amount of any engineering review or
distribution system study fees. Application review fees shall be credited toward the cost of any
engineering review or distribution system study. The commission shall establish a fee schedule
for each interconnection size category for application reviews, engineering reviews and
distribution system studies. The fee schedule may be updated by the commission.
(2) Engineering review or distribution system study fees shall not be required if the project’s
aggregate export capacity is less than 15% of the line section peak load and the project does not
contribute more than 25% of the maximum short circuit current at the Point of Common
Coupling (PCC) as defined by generally accepted industry practices and guidelines..
(3) Total review and study fees shall not exceed the lesser of either of the following:
(a) Five percent of the estimated total cost of the project.
(b) Ten thousand dollars.
(4) No electric utility may charge a commissioning test fee for initial start-up of the project. A
utility may charge for retesting an installation that upon initial testing did not conform to the
requirements set forth in this chapter.
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(5) An electric utility may not charge additional fees, unless they are authorized by these rules.
R 460.485 Application process.
Rule 5. (1) If requested by the applicant, an electric utility shall provide a technical consultation
prior to the filing of the application for the purpose of providing electric utility system
information needed by the applicant to prepare its application.
(2) For Category 2 through 4 applications, a one-line diagram sealed by a professional engineer
licensed by the State of Michigan is required.
(3) Within 10 working days of receiving a new or revised application, the electric utility shall
notify the applicant whether the application is complete.
(4) Within 10 working days of determining that the application is complete, the electric utility
shall complete its application review. If the application review shows that an engineering review
is not needed, the applicant may install the project and need not complete the steps described in
subsections (5) to (9) of this rule. If the electric utility determines, on the basis of the application
review that an engineering review is needed, it shall notify the applicant of the need and cost of
that review. An applicant shall have one year in which to request, in writing, that the utility
proceed with an engineering review at the cost indicated.
(5) Upon receiving applicant’s written notification to proceed with the engineering review and
applicable payment, the electric utility shall complete an engineering review and notify the
applicant of the results within the following times:
(a) Category 1 application, 10 working days.
(b) Category 2 application, 15 working days.
(c) Category 3 application, 20 working days.
(d) Category 4 application, 40 working days.
(6) If the engineering review indicates that a distribution system study is necessary, the electric
utility shall include, in writing, the cost of the study in its engineering review findings. The
distribution system study cost shall be valid for one year and the applicant shall have one year
from receipt of the cost in which to notify the electric utility to proceed with the distribution
system study. Upon receiving written notification to proceed and payment of the applicable fee,
the electric utility shall conduct the distribution system study.
(7) The electric utility shall within the following time periods complete the distribution system
study and provide study results to the applicant:
(a) Category 1 application, 10 working days.
(b) Category 2 application, 15 working days.
(c) Category 3 application, 20 working days.
(d) Category 4 application, 60 working days unless a different time period is mutually agreed
upon.
(8) The electric utility shall notify the applicant of its completed distribution system study
findings along with any distribution system construction or modification costs to be paid by the
applicant. The cost may include up to a 10% contingency fee. Any payment made in excess of
actual costs will be refunded to the applicant.
(9) If the applicant agrees, in writing, to pay the cost identified in subsection (8) of this rule, the
electric utility shall complete the distribution system upgrades and the applicant shall install the
project within a time frame that is mutually agreed upon. The applicant shall notify the electric
utility when project construction is complete. In no event is the time frame for the electric utility
to complete the distribution system upgrades to be longer than 3 months unless the applicant and
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electric utility agree otherwise in writing or upon commission approval. The payment agreement
may include the applicant making as many as 12 monthly payments, with interest charged at the
short term borrowing rate available to the electric utility. The applicant shall make the initial
payment prior to the electric utility commencing construction activities. The cost must be paid in
full to the electric utility by the end of the time period specified in the payment agreement.
(10) (a) The applicant shall give the electric utility the opportunity to witness or verify the
system testing, as required in R 460.486. Upon receiving notification that an installation is
complete, the electric utility has 10 working days, for a Category 1 or 2 project, or 20 working
days, for a Category 3 or 4 project, to complete the following:
(i) Witness commissioning tests.
(ii) Perform an anti-islanding test or verify the protective equipment settings at its expense.
(iii) Waive its right, in writing, to witness or verify the commissioning tests.
(b) The applicant shall provide the electric utility with the results of any required tests.
(11) The electric utility may review the results of the on-site tests and shall notify the applicant
within 5 working days, for a Category 1 project, or within 10 working days, for a Category 2 to 4
project, of its approval or disapproval of the interconnection. If approved, the electric utility
shall provide a written statement of final acceptance and cost reconciliation. Any applicant for a
system that passes the commissioning test may sign a standard interconnection agreement and
interconnect. If the electric utility does not approve the interconnection, the applicant may take
corrective action and request the electric utility to reexamine its interconnection request.
(12) A standard interconnection agreement shall be signed by the applicant and electric utility
before parallel operation commences.
R 460.486 Testing of project installations.
Rule 6. (1)The electric utility may perform an anti-islanding test or observe the automatic
shutdown before giving final written approval for interconnection of the project. The
anti-islanding test requires that the unit shut down upon sensing the loss of power on the
distribution system. This can be simulated by either removing the customer meter or opening an
interconnection disconnect switch while the generator is operating. Voltage across the customer
side of the meter or disconnect switch shall be measured and must be observed to reduce to zero
within two seconds after disconnection. The test shall be conducted with the generation as close
to its full output as possible. If a voltage is sustained after the disconnection, approval of the
installation shall not be given until corrective measures are taken with a subsequent successful
shutdown test.
(2) The electric utility shall provide the acceptable range of settings for the paralleling
equipment of a Category 2, 3, or 4 project. The applicant shall program protective equipment
settings into this paralleling equipment. The electric utility may verify the protective equipment
settings prior to allowing the project to interconnect to the distribution system.
(3) The electric utility or applicant may, upon reasonable notice, re-test the project installation.
The party requesting such re-testing shall bear the cost of the re-tests.
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R 460.487 Pre-certified equipment.
Rule 7. (1) The interconnection procedures shall include provisions for creating and
maintaining an up-to-date listing of pre-certified types, makes, and models of manufactured
generating equipment. The electric utility's listing may reference or incorporate listings of
equipment certified by recognized national testing laboratories as suitable for
connection with a distribution system. The electric utility shall include an item of equipment in
its pre-certified list if the item is generally acceptable for interconnection with the distribution
system and a detailed review of the item's engineering design, characteristics, or
suitability is not necessary to approve its use or installation by a project developer.
R 460.488 Insurance and indemnification.
Rule 8. (1) An applicant seeking to interconnect a project to the distribution system of an
electric utility shall maintain liability insurance equal to or greater than the amounts approved by
the commission, per occurrence, or prove financial responsibility by another means mutually
agreeable to the applicant and the electric utility. For Category 2 to 4 projects, the applicant shall
name the electric utility as an additional insured party in the liability insurance policy. Liability
insurance requirements may be updated by the Commission.
(2) Each party to the standard interconnection agreement shall indemnify, hold harmless and
defend the other party, its officers, directors, employees and agents from and against any and all
claims, suits, liabilities, damages, costs and expenses resulting from the installation, operation,
modification, maintenance or removal of the project. The liability of each party shall be limited
to direct actual damages, and all other damages at law or in equity shall be waived.
R 460.489 Modifications to the project.
Rule 9. (1) The applicant shall notify the electric utility of plans for any material modification to
the project. The applicant shall provide this notification by submitting a revised standard
application form and application fee along with all such supporting materials as may be
reasonably requested by the electric utility. The applicant may not commence any material
modification to the project until the electric utility has approved the revised application,
including any necessary engineering review or distribution system study. The application shall
be processed in accordance with Rule 5.
R 460.490 Disconnection.
Rule 10. (1) A public utility may refuse to connect or may disconnect a project from the
distribution system only under any of the following conditions:
(a) Lack of approved standard application form or standard interconnection agreement.
(b) Termination of interconnection by mutual agreement.
(c) Non-compliance with the technical or contractual requirements.
(d) Distribution System Emergency.
(e) Routine maintenance, repairs, and modifications, but only for a reasonable length of time
necessary to perform the required work and upon reasonable notice.
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R 460.491 Easements and rights−of−way.
Rule 11. (1) If an electric utility line extension is required to accommodate an interconnection,
the applicant is responsible for the cost of providing or obtaining easements or rights of way.
R 460.492 Appointment of experts.
Rule 12. (1) If a complaint is filed against an electric utility regarding these rules, then the
commission may appoint from 1 to 3 experts to investigate the complaint and report findings to
the commission within the scope of these rules. The commission shall consider expert
individuals based on, but not limited to, all of the following criteria:
(a) Expertise specific to generator interconnection issues.
(b) Objectivity – individuals not directly impacted by the resolution.
(c) Neutral third-party.
(d) Training and expertise in primary and secondary distribution systems.
(2) The experts shall limit their conclusions and reports to the subject of the dispute and the facts
and circumstances of the specific case for which they were appointed.
(3) The expert(s) shall submit a report to the commission with the results and conclusions of
their inquiry, which may suggest corrective measures for resolving the complaint. The reports of
the experts shall be received in evidence and the experts shall be made available for
cross-examination by the parties at any hearing. The experts shall report to the commission
within 30 days of their employ. The commission may grant up to a 30-day extension.
(4) The reasonable expenses of experts, including a reasonable hourly fee or fee determined by
the commission, shall be submitted to the commission for approval and, if approved, shall be
funded under subrule (5) of this rule.
(5) The electric utility shall reimburse the experts appointed by the commission for the
reasonable expenses incurred in the course of investigating the complaint.
R 460.493 Waivers.
Rule 13. (1) An electric utility may apply for a waiver from 1 or more provisions of these rules.
The Commission may grant a waiver upon a showing of good cause.
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