(1) An EDC shall use the Level 2 interconnection review procedure for an interconnection request that meets the criteria in ARM 38.5.8406(1)(b). An EDC shall not impose additional requirements for Level 2 reviews not specifically authorized under this section unless the EDC and the applicant mutually agree to do so.

(2) The EDC shall evaluate the potential for adverse system impacts using the following screens which must be satisfied:

(a) For interconnection of a proposed small generator facility to a radial distribution circuit, the aggregated generation on the circuit, including the proposed small generator facility, may not exceed:

(i) 15% of the line section annual peak load as most recently measured at the substation; or

(ii) the annual minimum load of the line section.

(b) For interconnection of a proposed small generator facility to a spot network circuit where the generator or aggregate of total generation exceeds 5% of the spot network's maximum load, the generator must utilize a protective scheme that will ensure that its current flow will not affect the network protective devices, including reverse power relays or a comparable function;

(c) For interconnection of a proposed small generator facility that utilizes inverter-based protective functions to an area network, the generator facility, in aggregate with other exporting generator facilities interconnected on the load side of network protective devices, will not exceed the lesser of 10% of the minimum annual load on the network or 500 kW. For a photovoltaic generator facility without batteries, the 10% minimum shall be determined as a function of the minimum load occurring during an off-peak daylight period;

(d) For interconnection of generators to area networks that do not utilize inverter-based protective functions or inverter-based generators that do not meet the requirements of (2)(c), the generator must utilize reverse power relays or other protection devices and/or methods that ensure power is not exported from the customer's site including any inadvertent export (e.g. under fault conditions) that could adversely affect protective devices on the network circuit;

(e) The proposed small generator facility, in aggregation with other generation on the distribution circuit, may not contribute more than 10% to the distribution circuit's maximum fault current at the point on the primary line nearest the point of interconnection;

(f) The proposed small generator facility, in aggregate with other generation on the distribution circuit, may not cause any distribution protective devices and equipment (including substation breakers, fuse cutouts, and line reclosers), or other customer equipment on the electric distribution system to be exposed to fault currents exceeding 90% of the short circuit interrupting capability including X/R effects;

(g) When a customer-generator facility is to be connected to 3-phase, three wire primary EDC distribution lines, a 3-phase or single-phase generator will be connected phase-to-phase;

(h) When a customer-generator facility is to be connected to 3-phase, four wire primary EDC distribution lines, a 3-phase or single phase generator will be connected line-to-neutral and will be effectively grounded;

(i) When the proposed small generator facility is to be interconnected on single-phase shared secondary line, the aggregate generation capacity on the shared secondary line, including the proposed small generator facility, shall not exceed 20 kVA;

(j) When a proposed small generator facility is single-phase and is to be interconnected on a center tap neutral of a 240 volt service, its addition may not create an imbalance between the two sides of the 240 volt service of more than 20% of the nameplate rating of the service transformer;

(k) A small generator facility, in aggregate with other generation interconnected to the distribution side of a substation transformer feeding the circuit where the small generator facility proposes to interconnect, may not exceed 10 MW in an area where there are known or posted transient stability limitations to generating units located in the general electrical vicinity (for example, three or four distribution busses from the point of interconnection);

(l) The generator cannot exceed the capacity of the customer's existing electrical service; and

(m) Construction of facilities by the EDC on its own system is not required to accommodate the small generator facility.

(3) The Level 2 interconnection review must be conducted in accordance with the following procedures:

(a) An EDC shall, within ten business days after receipt of the interconnection request, inform the applicant that the interconnection request is complete or incomplete and what materials are missing;

(b) When an interconnection request is complete, the EDC shall assign a line section queue position if there is more than one interconnection request pending for the same line section. The line section queue position of the interconnection request shall be used to determine the potential adverse system impact of the small generator facility based on the relevant screening criteria. The EDC shall notify the applicant about other higher line section queued applicants on the same line section or spot network for which interconnection is sought. Line section queue position shall not be forfeited or otherwise impacted by any pending dispute submitted under the provisions of ARM 38.5.8413;

(c) Within 20 business days after the EDC notifies the applicant it has received a completed interconnection request, the EDC shall:

(i) Evaluate the interconnection request using the Level 2 review criteria;

(ii) Review the applicant's analysis, if provided by applicant, using the same criteria; and 

(iii) Provide the applicant with the EDC's evaluation, including a comparison of the results of its own analyses with those of applicant, if applicable. When an EDC does not have a record of receipt of the interconnection request and the applicant can demonstrate that the original interconnection request was delivered, the EDC shall expedite its review to complete the evaluation of the interconnection request within 20 business days of the applicant's resubmission of the interconnection request; but

(iv) The EDC shall not be obligated to meet the timeline for reviewing the interconnection request as provided for in (3)(c) until such time as the EDC has completed the review of all other interconnection requests that have a higher line section queue position.

(4) When an EDC determines that the interconnection request passes the Level 2 screening criteria, or fails one or more of the Level 2 screening criteria but determines that the small generator facility can be interconnected safely and reliably, it shall provide the applicant a standard small generator interconnection agreement within five business days after the determination.

(5) Additional review may be appropriate when a small generator facility has failed to meet one or more of the Level 2 screens. An EDC shall offer to perform additional reviews to determine whether minor modifications to the electric distribution system would enable the interconnection to be made consistent with safety, reliability, and power quality criteria. The EDC shall provide the applicant with a nonbinding, good faith estimate of the costs of additional review and minor modifications. The EDC shall undertake the additional review only after the applicant consents to pay for the review. If the review identifies the need for modifications, the EDC shall make the necessary modifications only if the interconnection customer agrees to pay for them.

(6) An applicant shall have 30 business days after receipt of an interconnection agreement to sign and return the agreement. When an applicant does not sign the agreement within 30 business days, the interconnection request shall be deemed withdrawn. If construction is required under the provisions of (5), the interconnection of the small generator facility shall proceed according to any milestones agreed to by the parties in the standard small generator interconnection agreement. The standard small generator interconnection agreement may not become final until:

(a) The milestones agreed to in the standard small generator interconnection agreement are satisfied;

(b) The small generator facility is approved by electric code officials with jurisdiction over the interconnection;

(c) The applicant provides a certificate of completion to the EDC. Completion of local inspections may be designated on inspection forms used by local inspecting authorities; and

(d) There is a successful completion of the witness test, unless waived. 

(7) If the small generator facility is not approved under a Level 2 review, the EDC shall provide the applicant a letter explaining its reasons for denying the interconnection request. The applicant may submit a new interconnection request for consideration under a Level 3 or Level 4 interconnection review; however, the line section queue position assigned to the Level 2 interconnection request shall be retained provided the request is made within 15 business days after notification that the current interconnection request has not been approved.