Interconnection and Standby Rates


Facts about Standby Rates and Interconnection

Standby rates are required if you self-generate some or all of your electrical power from your own generating facility. If your generating facility does not qualify for Net Energy Metering (or otherwise qualify for another exemption), you will be placed on one of three Standby rates.

Connecting to Our Grid

To connect your generating facility to our utility grid, you will need to apply for interconnection. Interconnection ensures that your generating facility is safe to operate and will not impact grid operations, and notifies our field personnel that you have a generating system on your property.

Your generating facility must comply with:

  • Rule 21
  • Electric Service Requirements
  • Interconnection Handbooks
  • National Electrical Code
  • Applicable local codes and regulations

Understanding Your Account on Standby

Standby Demand Values

For All Standby Accounts
Standby (SB) is the “back-up” demand provided by us when your generating facility is not operating. SB demand is generally equal to the maximum recorded demand in excess of the demand regularly served by us. The SB demand cannot exceed the generating facility’s nameplate capacity and cannot be less than zero.

We establish your initial SB demand values by gathering specific information and data (including historical usage from your site). We communicate these values to you when your account is established on Standby and anytime the values are changed.

For Standby Accounts without Metered Connection

We determine Supplemental Contract Capacity (SCC) based on the most frequent daily maximum demand over the past 36 months, or the longest period of usage history available (not less than 14 months).1

You are required to notify us of any changes to your site load or generating facility operation in order for us to evaluate the need to adjust your established SB demand values.

Standby Billing

When you are served on a Standby rate, your monthly bill will consist of Energy (kWh) and Demand (kW) charges similar to those on a comparable non-Standby rate. The major difference of a Standby rate is how your demand charges are calculated. Standby rates are designed to differentiate the portion of your load as either Supplemental service or Backup service. Supplemental service is power we supply when your generation (under normal operations) does not meet all of your energy needs. Backup service is power we supply during either a scheduled or unscheduled outage or curtailment of your generating facility. Properly identifying the service as Supplemental or Backup helps ensure that the appropriate prices are used to calculate your applicable monthly billed demand charges.

All Standby customers are responsible for a monthly Customer Charge.

All Standby customers are responsible for monthly Energy (kWh) charges that, when applicable, may be differentiated by:

  • Season
  • Time-of-Use Period
  • Voltage Level
  • Temperature and Day Type (only on the optional RTP rate)

All Standby customers are responsible for the following Demand (kW) charges:

Standby Capacity Reservation Charge (CRC)

A monthly charge based on the established Standby demand value. This charge is calculated by multiplying your Standby demand value by the applicable CRC price. The CRC is billed every month regardless of the maximum demand registered on the meter.

Facilities Related Demand (FRD) Charge

FRD charges apply year round and are based on the maximum demand in excess of your established Standby demand value. The FRD charge is calculated by multiplying your excess demand by the applicable FRD price. When the maximum demand of your operations does not exceed your established Standby demand value during a billing period, no FRD charges will be billed. Standby customers are also responsible for the following Demand (kW) charges:

Time-Related Demand (TRD) Charge 

TRD charges apply year round and are calculated per kW according to the highest recorded demand during summer On-Peak and winter Mid-Peak TOU periods, weekdays excluding weekends and holidays. Prior to us calculating your monthly charges, the On-Peak and Mid-Peak maximum demands are properly identified as either Supplemental service or Backup service, with the end result producing four unique demand-billing determinant values as follows: 

On-Peak kW

  • Supplemental Time Related Demand Charge
  • Backup Time Related Demand Charge

Mid-Peak kW

  • Supplemental Time Related Demand Charge
  • Backup Time Related Demand Charge

Each of the four TRD demand billing determinants are multiplied by a respective TRD price to determine monthly billed TRD charges. Note: For customers sized at 500 kW and below, TRD charges are not differentiated between Supplemental service and Backup service.

Other charges (such as power factor) may be applicable depending on your rate schedule.

Departing Load Charges may also apply: Departing Load charges are designed to recover your share of our market portfolio costs that are “stranded” by the departure from our system due to your self-generation, and other charges designated by the Commission as non-bypassable.

Standby Rates and Interconnection: Frequently Asked Questions

Standby is our electric rate for accounts with generators that interconnect to and operate in parallel with our electric system. With this rate, we provide back-up electric service when your generator is not operating as intended.

Renewable technology generators that are served on a Net Energy Metering rate schedule are exempt from the Standby rate. Generators used solely for emergency backup purposes when our electric service is not available are also not subject to the Standby rate.

Expose as Block

There are different non-optional rate schedules applicable to Standby service depending upon whether or not your site load (i.e., maximum demand kW) is 500 kW or less.

If 500 kW or less, you will be billed on their otherwise applicable tariff (OAT), in addition to Standby (Schedule S). If greater than 500 kW, you will be billed on Schedule TOU-8-S (or TOU-8-RTP-S, if selected by you). Unlike the 500 kW and less customer class, Schedule TOU-8-S/TOU-8-RTP-S incorporates both non-standby and standby charges into a single rate schedule.

With your generator interconnected to and operating in parallel with our transmission or distribution lines, we are “standing by” to provide you with electric service when your generator experiences a partial or complete shutdown.

To be established on a Standby rate, your generation must be interconnected to the grid and the following Standby billing determinants must be established.

  • Supplemental Contract Capacity (SCC): The amount of electricity service (kW) we regularly provide you
  • Standby Demand: The amount of backup electricity service (kW) we provide you when your generating facility is not operating

The establishment of your Standby billing determinants is required to determine the portion of demand charges to be billed at supplemental rates (i.e., OAT charges) vs. backup rates (i.e., Standby charges).

Supplemental Contract Capacity (SCC) is the level of demand kW that we regularly serve. It is used to determine the portion of your total peak period demand (if applicable) to be billed at the Backup Time Related Demand price vs. the Supplemental Time Related Demand price.

The SCC value is the most frequent daily maximum demand kW over the past 36 months or the longest period of relevant usage history available (not less than 14 months). The number of months is based on how long your generator has been interconnected with our system and whether or not there has been any changes in your generation operation.

Standby kW represents the entire reserve capacity that we must serve when your generating facility is not operating per normal conditions or is shut down for maintenance. Standby kW excludes the load we regularly serve. The Standby kW cannot exceed the nameplate capacity of your generating facility and cannot be less than zero. If applicable, Capacity Reservation Charge and Backup Time-Related Demand charges are determined by the Standby kW.

We will use the best available information (including historical usage when available) to establish the billing determinants required for billing your account on Standby. Your usage history will typically determine the Standby and Supplemental Contract Capacity demands (“Standby billing determinants”). If there is not sufficient usage history (14 months), you may be required to provide us with additional information, such as estimated load you will need us to regularly supply.

Once your Standby billing determinants are established, you will be billed on the applicable Standby rate. Your Account Manager will communicate your established Standby billing determinants.

Yes. If you have a change in operation of your generating facility, please notify your Account Manager right away so we can evaluate the potential impact to your Standby billing determinants.

Also, once 14 months of recorded interval data is available (excluding 60 days of generation start-up), we will leverage this data to determine whether or not an adjustment to the Standby billing determinants are required.

If your generator or electricity demand change, you are required to notify us of the change in your generation operation. Upon receipt of this notification, we will evaluate your account to determine if an adjustment to your Standby billing determinants is required. This change could also require a change to your Interconnection Agreement.

To notify us of a change in operations, please contact your Account Manager. You may also need to contact your Interconnection Contract Manager. To determine if a change to your Interconnection Agreement is required, contact your Grid Contract Manager or send an e-mail to

Expose as Block

If your generator is no longer operating at your facility, you will need to first contact your Grid Contract Manager by sending an e-mail to and terminate your Interconnection Agreement. Once the Interconnection Agreement is terminated, we will remove your account from the Standby rate.

"Load is considered Departing Load if you reduce your purchase of electricity from us or you replace the purchase of electricity from us with another source and remain at the same location or within our service area."

Departing Load charges will be determined after you receive permission to operate your generator. Generally, your account will be established on the Standby and Departing Load rates in the same billing month.

To learn more about Departing Load requirements.

Expose as Block

Departing Load is determined based on the amount of load (kWh) served by your generator.

  • When a Net Generation Output Meter (NGOM) is installed, Departing Load equals the monthly kWh registered on the NGOM.
  • If there is no NGOM, then Departing Load is calculated based on the monthly average kWh usage prior to the operation of the generator less the current usage in the billing month, up to the generator’s maximum output.


A Departing Load bill is calculated by multiplying the Departing Load (in kWh) for the billing month by the corresponding (non-exempt) rates in the two Departing Load tariffs.

For more information regarding the Standby rate, contact your Account Manager or call 1-800-990-7788.
Frequently Asked Questions