Generators must have an interconnection agreement to operate connected to the electric system. For existing generators that will transition from an existing PPA to one of the new contracts outlined above, it will be necessary that you work with SCE’s Grid Interconnections department to address the need for a new and separate agreement for interconnection and distribution service to be executed between the QF and SCE. This is because, in most “legacy” QF PPAs, the functions of power purchase contract and interconnection agreement are combined in a single agreement, the PPA. This means that, when the PPA terminates, the QF’s right to be interconnected with the SCE system is also ended. This process of conversion to a new interconnection agreement may require technical review and administrative activities that could need substantial lead time and, potentially, cost, to complete, so it is advisable to start this process well in advance of the date on which you expect your Legacy QF PPA to terminate.
Please note that this interconnection conversion process only applies if your existing PPA is terminating. If this is not the case, then the interconnection rights provided by your PPA will remain in effect as long as your PPA remains in effect. In that case, it is still advisable that you initiate the request for a new interconnection, as discussed above, well in advance of your PPA termination date to minimize the chances of an interruption in your ability to deliver power to the SCE electric system.
New generators must request interconnection service and potentially distribution service with the electric system, to initiate the appropriate technical review and studies. Interconnection facilities and system upgrades which may be needed to interconnect the generator will also be identified in this process, and will provide the basis of the interconnection agreement. This study process and related construction may take months or years to complete, depending on project size and location, among other factors. Therefore, parties are encouraged to understand the impacts that interconnection and transmission may have on any potential project plans and contractual commitments.