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 (Schedule TOU-8-S or TOU-8-RTP-S for site load greater than 500 kW, or Schedule S for site load equal to or less than 500 kW).

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

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