Section 8.04 - Interconnection. Metering, and Payment(1) Distribution Company Procedures for Interconnection, Metering, and Payment. Each Distribution Company shall file with the Department written procedures addressing provisions 220 CMR 8.04(2) through (9), within 60 days of the effective date of 220 CMR 8.00.(2)Inspection. At the request of a Qualifying Facility or an On-site Generating Facility, a Distribution Company shall conduct an initial site inspection of the proposed Qualifying Facility or On-site Generating Facility to determine the equipment necessary for protecting the Distribution Company's system, and, where necessary to estimate the cost of additional engineering studies that will be used to provide a more accurate assessment of interconnection costs. Such initial inspection shall be made within 45 days of the request by the Qualifying Facility or On-site Generating Facility at the Distribution Company's expense.(3)Interconnection Cost Estimate. If a thorough estimate of interconnection costs cannot be determined after the initial site inspection, the Distribution Company shall provide a complete estimate of interconnection costs upon request by the Qualifying Facility or On-site Generating Facility. The cost of providing this estimate, including engineering studies where necessary, shall be paid by the Qualifying Facility or On-site Generating Facility to the Distribution Company. Each Distribution Company shall develop, for public review, written procedures for estimating interconnection costs. If the parties cannot reach an agreement on interconnection costs within 90 days of the Qualifying Facility's or the On-site Generating Facility's request for an estimate, the parties may petition the Department to review the reasonableness of the Distribution Company's interconnection cost estimate.(4)Standards for Interconnection.(a) All Qualifying Facility and On-site Generating Facility interconnections shall provide protection against the following: 1. Inadvertent and unwanted reenergization of a Distribution Company dead line or bus;2. Interconnection while out of synchronization;3. Ground faults and phase fault;4. Frequency outside permissible limits; and5. Voltage generated outside permissible limits.(b) Protections proposed for implementation, in addition to those listed in 220 CMR 8.04(4)(a), require a thorough explanation, particularly if applicable to On-site Generating Facilities.(c) The Qualifying Facility or On-site Generating Facility equipment must be compatible with the character of service supplied by the Distribution Company at the location of the Qualifying Facility or On-site Generating Facility.(d) Prior to delivering power to a Distribution Company, the Qualifying Facility or On-site Generating Facility shall provide the Distribution Company with written certification by qualified personnel or from a qualified testing agency that protective devices and related equipment are installed and have been successfully tested.(5)Distribution Company Right to Inspect. The Distribution Company has the right to periodically inspect, test, and certify in writing the accuracy of any metering equipment owned by the Qualifying Facility or the On-site Generating Facility. The Distribution Company has the right to periodically inspect, test, and certify in writing the Qualifying Facility's or the On-site Generating Facility's compliance with the protection standards described in 220 CMR 8.04(4)(a). The Distribution Company has the right to inspect and test the electrical interface at any time to certify its proper operation. There will be no charge to the Qualifying Facility or On-site Generating Facility for such inspections, tests, or certifications by the Distribution Company.(6)Conditions for Interconnection.(a)Distribution Company's Obligation to Interconnect. A Distribution Company is not required to interconnect with a Qualifying Facility or On-site Generating Facility until 90 days after the Qualifying Facility or On-Site Generating Facility has notified the Distribution Company in writing that it intends to interconnect with the Distribution Company's system. Upon notice to the Qualifying Facility or On-site Generating Facility and the Department, the Distribution Company may petition the Department for additional time when extensive modifications or additions to the Distribution Company transmission or distribution system are required to accommodate an interconnection. Additional time may also be granted by the Department if a petition under 220 CMR 8.03(1)(c) or 220 CMR 8.04(3) is before the Department. The Department, upon a petition by a Qualifying Facility or On-site Generating Facility, or on its own motion, may, after notice and public hearing, order a Distribution Company to interconnect with a Qualifying Facility or On-site Generating Facility in a timely manner.(b)Notice of Intent to Interconnect. A Qualifying Facility or On-site Generating Facility shall provide the following information, in writing, to the Distribution Company at the time it files its notice of intent to interconnect: 1. The name and address of the applicant and location of the Qualifying Facility or On-site Generating Facility;2. A brief description of the type of Qualifying Facility or On-site Generating Facility, including a statement indicating whether such Qualifying Facility or On-site Generating Facility is a small power production facility or a cogeneration facility;3. The primary energy source used or to be used by the Qualifying Facility or On-site Generating Facility;4. The power production capacity of the Qualifying Facility or On-site Generating Facility and the maximum net energy that may be delivered to the Distribution Company's system;5. The owners of the Qualifying Facility or On-site Generating Facility, including the percentage ownership by any electric utility or by any public utility holding company, or by any entity owned by either;6. The expected date of installation and the anticipated on-line date;7. The anticipated purchase and sale of power to the Distribution Company (simultaneous purchase and sale, net purchase and sale, net metering, or other method);8. A description of any power conditioning equipment to be located between the Qualifying Facility or On-site Generating Facility and the Distribution Company's system; and9. A description of the type of generator used in the Qualifying Facility or On-site Generating Facility installation (synchronous, induction, photovoltaic, or other).(7)Interconnection Costs. The Qualifying Facility or On-site Generating Facility shall reimburse the Distribution Company for the incremental cost, i.e., the costs resulting solely from interconnecting the power production equipment with the Distribution Company's system, including meter installation where applicable. Such costs are to be calculated as follows: (a) The incremental cost of interconnection shall be the sum of all costs incurred by the Distribution Company that are a direct result of connecting the Qualifying Facility or On-site Generating Facility power production equipment to the Distribution Company's system. This sum includes the costs of installation, the operations and maintenance expense, property taxes, and all incremental modifications to the distribution and transmission system to the extent that such incremental modifications are for the sole benefit of the Qualifying Facility or On-site Generating Facility and are necessary to incorporate its generation into the Distribution Company's system. Costs of system improvements and equipment installed to provide retail service to the Qualifying Facility or On-site Generating Facility consistent with each Distribution Company's. Terms and Conditions for Distribution Service shall be excluded from the incremental cost of interconnection.(b) In the case where, during the term of a contract, a Qualifying Facility or On-site Generating Facility will purchase electricity from the interconnecting Distribution Company under a standard rate tariff or special contract that includes interconnection costs, the incremental costs of interconnection shall be the difference between the interconnection cost of the Qualifying Facility or On-site Generating Facility and the customer interconnection costs recovered through the tariff or special contract.(c) For Qualifying Facilities selling electricity to the Distribution Company under Short-run Rates pursuant to 220 CMR 8.05, interconnection costs may be amortized over a period of up to three years, with the period of amortization chosen by the Qualifying Facility. If the charges are amortized, the Qualifying Facility will pay a monthly charge designed to recover the interconnection costs plus interest computed at the Distribution Company's average weighted cost of capital. The Qualifying Facility may instead elect to pay all interconnection costs at the time of interconnection.(8)Metering. The Qualifying Facility or On-site Generating Facility shall furnish and install the necessary meter socket and wiring in accordance with accepted electrical standards. The Distribution Company shall furnish, read, and maintain the metering equipment. (a) Qualifying Facilities with a design capacity of one megawatt (MW) or greater shall use bidirectional, interval recording metering with remote access capability. Such remote access capability may include telemetering to the extent required by NEPOOL standards. Such meter shall be in compliance with NEPOOL standards and requirements for meters on generation resources. The interval recording metering will be controlled, tested, maintained, and read by the Distribution Company.(b) Qualifying Facilities with a design capacity greater than 60 KW but less than one MW shall use a metering system that can record sales to the Distribution Company.(c) Qualifying Facilities with a design capacity of 60 KW or less shall use a metering system that can record sales to the Distribution Company.(d) On-site Generating Facilities with a design capacity of 60 KW or less that net meter shall use a standard service meter capable of running backwards.(e) Where the. Qualifying Facility or On-site Generating Facility chooses to own the meter, the Qualifying Facility or On-site Generating Facility shall pay to the Distribution Company a monthly charge to cover meter maintenance and incremental reading and billing costs.(f) Where the Qualifying Facility or On-site Generating Facility chooses to have the Distribution Company own the meter, the Qualifying Facility or On-site Generating Facility shall pay to the Distribution Company a monthly charge which covers taxes, meter maintenance, incremental reading and billing costs, the allowable return on the invoice cost of the meter, and the depreciation of the meter.(9)Payment.(a) A Qualifying Facility or On-site Generating Facility selling power to a Distribution Company may choose to receive a check from the Distribution Company as payment for power supplied or may have payment credited towards its bill from the Distribution Company.(b) Costs charged to a Qualifying Facility or On-site Generating Facility for interconnection equipment, meters, and meter reading shall be the standard charges approved by the Department in a tariff filed by the Distribution Company. Where standard charges are not applicable, the Distribution Company shall charge the Qualifying Facility or On-site Generating Facility the Distribution Company's invoice cost of such equipment. Interconnection costs which are not standardized or invoiced shall be estimated on a case-by-case basis.