Code of Colorado Regulations
700 - Department of Regulatory Agencies
723 - Public Utilities Commission
4 CCR 723-3 - RULES REGULATING ELECTRIC UTILITIES
INTERCONNECTION PROCEDURES AND STANDARDS
Section 3853 - General Interconnection Procedures
Universal Citation: 700 CO Code Regs 3853
Current through Register Vol. 48, No. 6, March 25, 2025
(a) Pre-application procedures.
(I) Prior to
submitting its interconnection request, the interconnection customer may ask
the utility interconnection contact employee or office whether the proposed
interconnection is subject to these procedures. The utility shall respond
within 15 business days.
(II) The
utility shall designate an employee or office from which information on the
application process and on an affected system can be obtained through informal
requests from the interconnection customer presenting a proposed project for a
specific site. The name, telephone number, and e-mail address of such contact
employee or office shall be made available on the utility's web site.
(III) In response to an informal
pre-application request, the utility shall provide electric system information
for specific locations, feeders, or small areas to the interconnection customer
upon request and may include relevant system studies, interconnection studies,
and other materials useful to an understanding of an interconnection at a
particular point on the utility's system, to the extent such provision does not
violate confidentiality provisions of prior agreements or critical
infrastructure requirements. The utility shall comply with reasonable requests
for such information unless such information is proprietary or confidential and
cannot be provided pursuant to a confidentiality agreement.
(IV) In addition to the information described
in subparagraphs 3853(a)(I) and (III), which may be provided in response to an
informal request, an interconnection customer may submit a formal written
request for a pre-application report on a proposed interconnection at a
specific site using a form supplied by the utility, unless such information is
confidential and cannot be provided pursuant to a confidentiality agreement.
The utility may charge up to a Commission-approved fee for the pre-application
report. Upon completion, each pre-application report shall be dated and
publicly posted to the utility's website with any customer identifying
information redacted.
(A) The utility shall
provide the pre-application report to the interconnection customer within 20
business days of receipt of the completed request form and payment of the
fee.
(B) The pre-application report
shall be non-binding on the utility and shall not confer any rights to the
interconnection customer. The provided information does not guarantee that an
interconnection may be completed. Data provided in the pre-application report
may become outdated at the time of the submission of the complete
interconnection request.
(C) The
pre-application report need only include existing information. A
pre-application report request does not obligate the utility to conduct a study
or other analysis of the proposed interconnection resource in the event that
data is not readily available.
(D)
If the utility cannot complete all or some of a pre- application report due to
lack of available data, the utility should nonetheless explain what information
is not available and why it is not available, and the utility shall provide the
interconnection customer with a pre- application report that includes the data
that is available.
(E) The utility
shall, in good faith, include data in the pre- application report that
represents the best available information at the time of reporting. The
pre-application report will include the following information:
(i) total capacity (in MVA) of
substation/area bus, bank or circuit based on normal or operating ratings
likely to serve the proposed point of interconnection;
(ii) existing aggregate generation DER
capacity (in MW AC) interconnected to a substation/area bus, bank or circuit
(i.e., amount of DER online) likely to serve the proposed point of
interconnection;
(iii) aggregate
queued DER capacity (in MW AC) for a substation/area bus, bank or circuit
(i.e., amount of DER in the queue) likely to serve the proposed point of
interconnection;
(iv) available
capacity (in MW AC) of substation/area bus or bank and circuit likely to serve
the proposed point of interconnection (i.e., total capacity less the sum of
existing aggregate DER capacity and aggregate queued DER capacity);
(v) substation nominal distribution voltage
and/or transmission nominal voltage, if applicable;
(vi) nominal distribution or transmission
circuit voltage at the proposed point of interconnection whether the proposed
DER is eligible for the Level 1, Level 2 or non-export process;
(vii) approximate circuit distance between
the proposed point of interconnection and the substation;
(viii) relevant line section(s) actual or
estimated peak load and minimum load data, including daytime minimum load as
described in the supplemental review minimum load screen in subparagraph
3855(d)(VI)(A) and absolute minimum load at the time of DER production, when
available;
(ix) number and rating
of protective devices and number and type (standard, bi-directional) of voltage
regulating devices between the proposed point of interconnection and the
substation/area. Identify whether the substation has a load tap
changer;
(x) number of phases
available at the proposed point of interconnection. If a single phase, distance
from the three-phase circuit;
(xi)
whether the point of interconnection is located on a spot network, grid
network, or radial supply; and
(xii) existing or known constraints such as,
but not limited to, electrical dependencies at that location, short circuit
interrupting capacity issues, power quality or stability issues on the circuit,
capacity constraints, or secondary networks, based on the proposed point of
interconnection.
(b) Capacity of the DER.
(I) If the interconnection request is for an
increase in capacity for an existing DER, the interconnection request shall be
evaluated on the basis of the new total capacity of the DER, except as provided
below in subparagraph 3853(c)(III).
(II) If the interconnection request is for a
DER that includes multiple components at a site for which the interconnection
customer seeks a single point of interconnection, the interconnection request
shall be evaluated on the basis of the aggregate capacity of the multiple
components, except as provided below in subparagraph 3853(c)(III).
(III) The interconnection request shall be
evaluated using the maximum rated capacity of the DER, except as provided below
in subparagraph 3853(c)(III). At the utility's discretion in accordance with
subparagraph 3853(c)(III), the interconnection request may be evaluated using
less than the maximum rated capacity of the DER if the utility determines that
the DER is only capable of injecting less power into the utility's
system.
(c) Energy storage interconnections.
(I) Non-exporting
energy storage may inadvertently export, so long as the magnitude is less than
the energy storage's nameplate rating (kW-gross) and the duration of export of
power from the customer's energy storage is less than 30 seconds for any single
event. There are no limits to the number of events. Inadvertent export events
shall not exceed thermal, service voltage, power quality or network limits
defined within Commission rules or interconnection requirements. For good cause
shown, the Commission may grant a variance of this section.
(II) When a storage system is installed in
conjunction with a DER facility, both shall be reviewed at the same time and be
included in one interconnection agreement.
(III) Interconnection requests are reviewed
based on the combined nameplate ratings of systems accounting for their export
capacity, and energy storage operating mode. The ongoing operation capacity
portion of the interconnection review is based on the actual simultaneous
performance AC ratings, taking into account the operational differences of load
offset and export. If the contribution of the energy storage to the total
contribution is limited by programing of the maximum active power output, use
of a power control system, use of a power relay, or some other mutually
agreeable, on-site limiting element, only the capacity that is designed to
inject electricity to the utility's distribution or transmission system (other
than inadvertent exports and fault contribution) will be used within certain
technical screens and evaluations as specified in paragraphs 3855(b) and
(d).
(IV) Failure of hardware or
software system(s) intended to limit energy storage export capacity shall cause
the energy storage system to enter a safe operating state. An energy storage
system combined with a UL 1741 certified power control system shall be
considered capable of entering a safe operating state upon failure of hardware
or software system(s). When mutually agreed fail-safe provisions are not
provided, at the utility's discretion, the interconnection request may be
evaluated using the maximum rated capacity of the energy storage
system.
(V) When a storage system
is installed at the same point of interconnection location as an existing
interconnected DER facility, the review level will be based upon the
incremental addition of the DER rated capacity and the exporting storage system
rated capacity as provided in subparagraph 3853(c)(III).
(VI) A storage system may be located on the
same side of a production meter as a generating facility when a production
meter is required by these rules provided that the storage system is either
non-exporting at the service meter or is charged exclusively by the generating
facility and only the production recorded by the production meter will be
eligible for incentives.
(d) Interconnection requests.
(I) The interconnection customer shall submit
its interconnection request to the utility, together with the processing fee or
deposit specified in the interconnection request. Additional fees or deposits
shall not be required, except as otherwise specified in these procedures. A
single request to interconnect may be submitted by the interconnection customer
distributed generation paired with energy storage systems and shall be subject
to one interconnection agreement.
(II) The interconnection request shall be
date-stamped and time-stamped upon receipt. The original date-stamp and
time-stamp applied to the interconnection request at the time of its original
submission shall be the order in which the utility reviews applications to
determine completeness.
(III) The
interconnection customer shall be notified of receipt by the utility within
three business days of receiving the interconnection request which notification
may be to an email address or fax number provided by the IC.
(IV) The utility shall notify the
interconnection customer within ten business days of the receipt of the
interconnection request as to whether the interconnection request is complete
or incomplete. If the interconnection request is incomplete, the utility shall
provide, along with the notice that the interconnection request is incomplete,
a written list detailing all information that must be provided to complete the
interconnection request. The interconnection customer will have ten business
days after receipt of the notice to submit the listed information or to request
an extension of time to provide such information. If the IC does not provide
the listed information or a request for an extension of time within the
deadline, the interconnection request will be deemed withdrawn. The IC may
re-submit the application within one year without paying an additional
interconnection application fee.
(V) An interconnection request will be deemed
complete upon submission of the listed information to the utility. The
interconnection request shall be date-stamped and time-stamped upon being
deemed complete. This date shall be accepted as the qualifying date-stamp and
time-stamp for the purposes of any timetable in subsequent
procedures.
(VI) Any modification
to interconnection resource data or equipment configuration or to the
interconnection site that is a material modification, may be deemed by the
utility to be a withdrawal of the interconnection request and may require
submission of a new interconnection request. A new interconnection request
shall not be required for minor modifications to interconnection resource data
or equipment configuration or to the interconnection site. Within ten business
days of receipt of a proposed modification, the utility, in consultation with
an affected system owner, if applicable, shall evaluate whether a proposed
modification constitutes a material modification.
(A) If the proposed modification is
determined to be a material modification, then the utility shall notify the IC
in writing that the customer may: withdraw the proposed modification; or
proceed with a new interconnection request for such modification. The IC shall
provide its determination in writing to the utility within ten business days
after the utility provides the material modification determination results. If
the IC does not provide its determination, the customer's request shall be
deemed withdrawn.
(B) If the
proposed modification is determined not to be a material modification, then the
utility shall notify the IC in writing that the modification has been accepted
and that the IC shall retain its eligibility for interconnection, including its
place in the interconnection queue.
(C) Any dispute as to the utility's
determination that a modification constitutes a material modification shall
proceed in accordance with the dispute resolution provisions in these
procedures.
(VII)
Documentation of site control must be submitted with the interconnection
request. Site control may be demonstrated through:
(A) ownership of, a leasehold interest in, or
a right to develop a site for the purpose of constructing the interconnection
resource;
(B) an option to purchase
or acquire a leasehold site for such purpose which may include a letter of
intent; or
(C) an exclusivity or
other business relationship between the IC and the entity having the right to
sell, lease, or grant the IC the right to possess or occupy a site for such
purpose.
(D) For generating
facilities utilizing the Level 1 25 kW AC inverter process, proof of site
control may be demonstrated by the IC's signature on the interconnection
application.
(VIII) The
utility shall place interconnection requests in a first come, first served
order per feeder, per substation transformer, and per substation based upon the
date an application is complete pursuant to subparagraph 3853(d)(V). The order
of each interconnection request will be used to determine the cost
responsibility for the upgrades necessary to accommodate the interconnection.
At the utility's option, interconnection requests may be studied serially or in
clusters for the purpose of the system impact study.
(e) Evaluation of interconnection requests.
(I) A request to interconnect an
interconnection resource no larger than 25 kW AC, which may be paired with a
non-exporting storage system no larger than 25 kW AC, shall be evaluated under
the Level 1 Process.
(II) If not
eligible for Level 1, a request to interconnect an interconnection resource
with a combined nameplate rating larger than 25 kW AC shall be evaluated under
the Level 2 Process (Fast Track) in accordance with the eligibility
requirements in paragraph 3855(a).
(III) A request to interconnect an
interconnection resource that does not pass the Level 1 or Level 2 Process
shall be evaluated under the Level 3 Process.
(IV) Non-exporting interconnection resources
shall be evaluated under the "non-export" interconnection process. The
"non-export" interconnection process is also applicable to additions of new
non-exporting interconnection resources paired with existing interconnection
resources when the existing interconnection resources have already executed an
interconnection agreement.
(f) Interconnection agreements.
(I) Any interconnection resource operating in
parallel with the utility's system is required to have an interconnection
agreement with the utility to ensure safety, system reliability, and
operational compatibility. References in these procedures to interconnection
agreement are to the utility's interconnection agreement as provided on its
website, which interconnection agreement is subject to Commission approval upon
request.
(II) Interconnection
agreements shall survive transfer of ownership of the interconnection resource
to a new owner when the new owner agrees in writing to comply with the terms of
the agreement and so notifies the utility.
(III) After receiving an interconnection
agreement from the utility, the IC shall have 30 business days to sign and
return the interconnection agreement, or request that the utility file an
unexecuted interconnection agreement with the Commission. If the IC does not
sign the interconnection agreement or ask that it be filed unexecuted by the
utility within 30 business days, the interconnection request shall be deemed
withdrawn. The utility shall provide the IC a fully executed interconnection
agreement within two business days after receiving a signed interconnection
agreement from the IC. After the parties sign the interconnection agreement,
the interconnection of the interconnection resource shall proceed under the
provisions of the interconnection agreement.
(IV) Once the interconnection resource has
been authorized by the utility to commence operation in parallel with the
utility system, the interconnection customer shall abide by all rules and
procedures pertaining to parallel operation in the utility's tariffs and in the
interconnection agreement.
(V) The
interconnection customer shall be responsible for the utility's reasonable and
necessary cost for the purchase, installation, operation, maintenance, testing,
repair and replacement of utility upgrades or utility interconnection
facilities not required to serve other utility customers. Such upgrades or
facilities shall be specified in the interconnection agreement unless otherwise
covered by the utility's tariff or excluded by interconnection agreement.
Utilities may not refuse to provide an IC with a fixed dollar amount to cover
reasonable and necessary utility upgrades or utility interconnection facilities
in order to facilitate an interconnection.
(g) Reasonable efforts. The utility and IC shall make reasonable efforts to meet all time frames provided in these procedures unless the utility and the IC agree to a different schedule. If the utility or IC cannot meet a deadline provided herein, it shall notify the IC or the utility if the notifying party is the IC, and explain the reason for the failure to meet the deadline, and provide an estimated time by which it will complete the applicable interconnection procedure in the process.
(h) Disputes.
(I) The utility and IC shall agree to attempt
to resolve all disputes arising out of the interconnection process according to
the provisions of this subparagraph.
(II) In the event of a dispute, either party
shall provide the other party with a written notice of dispute. Such notice
shall describe in detail the nature of the dispute. If the dispute has not been
resolved within five business days after receipt of the notice, either party
may contact a mutually agreed upon third party dispute resolution service for
assistance in resolving the dispute.
(III) The dispute resolution service will
assist the parties in either resolving their dispute or in selecting an
appropriate dispute resolution venue (e.g., mediation, settlement judge, early
neutral evaluation, or technical expert) to assist the parties in resolving
their dispute.
(IV) Each party
agrees to conduct all negotiations in good faith and will be responsible for
one-half of any costs paid to neutral third-parties.
(V) If neither party elects to seek
assistance from the dispute resolution service, or if the attempted dispute
resolution fails, then either party may exercise whatever rights and remedies
it may have in equity or law consistent with the terms of the agreements
between the parties or it may seek resolution at the Commission, pursuant to
the Rules of Practice and Procedure, 4 Code of Colorado Regulations
723-1.
(i) Interconnection metering. Except as otherwise required by other Commission's rules or by the terms of a Commission-approved program offered by the utility, any metering necessitated by the use of the interconnection resource shall be installed at the IC's expense in accordance with Commission requirements or the utility's specifications. For energy storage systems below 25 kW AC, additional metering shall not be required by the utility for the purposes of monitoring energy storage systems.
(j) Commissioning tests. Commissioning tests of the IC's installed interconnection resource shall be performed pursuant to applicable codes and standards, including IEEE 1547.1 "IEEE Standard Conformance Test Procedures for Equipment Interconnecting Distributed Resources with Electric Power Systems" (2020). This rule does not include any later amendments or editions of this standard. This standard is available for public inspection at the Commission's office, 1560 Broadway, Suite 250, Denver, CO 80202. The utility must be given at least five business days' written notice, or as otherwise mutually agreed to by the parties, of the tests and may be present to witness the commissioning tests. The utility shall be compensated by the IC for its expense in witnessing Level 2 and Level 3 commissioning tests. The utility shall provide to the IC an operational approval letter within three business days after notification that the commissioning test has been successfully completed. Such letter may be provided via e-mail.
(k) Confidentiality.
(I) Confidential information
shall mean any confidential and/or proprietary information provided by one
party to the other party that is clearly marked or otherwise designated
"Confidential." All design, operating specifications, and metering data
provided by the IC shall be deemed confidential information regardless of
whether it is clearly marked or otherwise designated as such.
(II) Confidential information does not
include information previously in the public domain, required to be publicly
submitted or divulged by governmental authorities (after notice to the other
party and after exhausting any opportunity to oppose such publication or
release), or necessary to be divulged in an action to enforce an agreement
between the parties. Each party receiving confidential information shall hold
such information in confidence and shall not disclose it to any third party nor
to the public without the prior written authorization from the party providing
that information, except to fulfill obligations under agreements between the
parties, or to fulfill legal or regulatory requirements.
(A) Each party shall employ at least the same
standard of care to protect confidential information obtained from the other
party as it employs to protect its own confidential information.
(B) Each party is entitled to equitable
relief, by injunction or otherwise, to enforce its rights under this provision
to prevent the release of confidential information without bond or proof of
damages, and may seek other remedies available at law or in equity for breach
of this provision.
(III)
Notwithstanding anything in this article to the contrary, if the Commission,
during the course of an investigation or otherwise, requests information from
one of the parties that is otherwise required to be maintained in confidence,
the party shall provide the requested information to the Commission, within the
time provided for in the request for information. In providing the information
to the Commission, the party may request that the information be treated as
confidential and non public by the Commission and that the information be
withheld from public disclosure. Parties are prohibited from notifying the
other party prior to the release of the confidential information to the
Commission. The party shall notify the other party when it is notified by the
Commission that a request to release confidential information has been received
by the Commission, at which time either of the parties may respond before such
information would be made public.
(l) Comparability. The utility shall receive, process, and analyze all interconnection requests in a timely manner as set forth in this rule. The utility shall use the same reasonable and expeditious efforts in processing and analyzing interconnection requests from all interconnection customers, whether the interconnection resource is owned or operated by the utility, its subsidiaries or affiliates, or others.
(m) Record retention. The utility shall maintain for three years, records, subject to audit, of all interconnection requests received under these procedures, the times required to complete each step of the interconnection request approvals and disapprovals, enumerated in these rules and justification for the actions taken on the interconnection requests.
(n) Coordination with affected systems. The utility shall coordinate the conduct of any studies required to determine the impact of the interconnection request on affected systems with affected system operators and, if possible, include those results (if available) in its applicable interconnection study within the time frame specified in this rule. The utility will include such affected system operators in all meetings held with the IC as required by this rule. The IC will cooperate with the utility in all matters related to the conduct of studies and the determination of modifications to affected systems. A utility which may be an affected system shall cooperate with the utility with which interconnection has been requested in all matters related to the conduct of studies and the determination of modifications to affected systems and shall provide to the IC any analysis and data underlying the affected system utility's determinations.
(o) Insurance. A Utility may only require an applicant (i.e., an interconnection customer) to purchase insurance covering Utility damages, and then only in amounts stated below. An interconnection customer, at its own expense, shall secure and maintain in effect during the term of the interconnection agreement, insurance coverage in the following amounts:
(I) For
non-inverter-based Generating Facilities:
Nameplate Rating > 5 MW $3,000,000 for each occurrence
2 MW < Nameplate Rating < 5 MW $2,000,000 for each occurrence
500 kW < Nameplate Rating < 2 MW $1,000,000 for each occurrence
50 kW < Nameplate Rating < 500 kW $500,000 for each occurrence
Nameplate Rating < 50 kW - no additional insurance
(II) For
inverter-based Generating Facilities:
Nameplate Rating > 5 MW $2,000,000 for each occurrence
1 MW < Nameplate Rating < 5 MW $1,000,000 for each occurrence
Nameplate Rating < 1 MW no insurance
(III) Colorado governmental entities that
self-insure against liability in amounts above those required in paragraph (o)
for interconnection resources up to 2 MW or to the replacement value of the
interconnection resource for those interconnection resource above 2 MW, shall
not be required to purchase additional insurance or to add the utility as an
additional insured to any policy, nor shall they be obligated to indemnify the
utility, though they shall be liable for any negligent or intentional act or
omission of the municipality, its employees, contractors, subcontractors, or
agents.
(IV) Certificates of
Insurance evidencing the requisite coverage and provision(s) when required
shall be furnished to utility prior to the date of interconnection of the
interconnection resource. Utilities shall be permitted to periodically obtain
proof of current insurance coverage from the interconnection customer in order
to verify proper liability insurance coverage. Customers will not be allowed to
commence or continue interconnected operations unless they provide to the
utility evidence that satisfactory insurance coverage is in effect at all
times.
(p) Implementation by tariff.
(I) Each utility
shall have on file with the Commission an interconnection tariff that sets
forth fees, deadlines and interconnection procedures. A utility's
interconnection tariff shall comply with these Interconnection Rules, but when
appropriate may include shorter deadlines for certain procedures.
(II) The interconnection tariff shall be
filed along with an advice letter. Tariffs filed by cooperative electric
associations shall be informational only. Tariffs filed by investor-owned
electric utilities may be set for hearing and suspended in accordance with the
Commission Rules of Practice and Procedure and applicable statutes.
(III) The tariff shall include the following
provisions:
(A) timelines: paragraphs
3853(a),(d),(f), 3854(a), 3855(b),(c),(d), 3856(a),(b),(c),(d);
(B) any fees: including but not limited to
those referenced at paragraphs 3853(a),(d),(f),(j), 3854(a) and (b), and
3856(a);
(i) the utility shall demonstrate
that any fee established in tariff is cost-based;
(C) material modification withdrawals:
paragraph 3853(d); and
(D) maximum
rated capacity: paragraph 3853(b), and (c).
(q)Reporting.
(I) Each utility shall submit an
interconnection report to the Commission two times per year and shall make it
available to the public on its website. A cooperative electric association that
has voted to exempt itself from regulation pursuant to C.R.S. §
40-9.5-103 shall submit an
interconnection report to the Commission once per year. The first
interconnection report shall be due 180 days after the effective date of these
interconnection rules. Upon a filing by a party with proper standing showing
good cause, and when necessary and appropriate, the Commission may by order
increase the frequency of such reporting on a temporary basis. The report shall
contain relevant totals for both the year and the most recent reporting period,
including the following information listed in subparagraphs (q)(II) and (III)
of this rule. The report shall also contain the total number of missed
deadlines contained in these rules in the reporting period as well as copies of
any notices of delay or missed deadlines issued by the utility to an
interconnection customer pursuant to paragraph 3853(g).
(II) Pre-application reports:
(A) total number of reports
requested;
(B) total number of
reports in process;
(C) total
number of reports issued;
(D) total
number of requests withdrawn;
(E)
maximum, mean, and median processing times from receipt of request to issuance
of report; and
(F) number of
reports processed in more than the 20 business days allowed in subparagraph
3853(a)(IV)(A).
(III)
Interconnection applications:
(A) total number
received, broken down by:
(i) primary fuel
type (e.g., solar, wind, bio-gas, etc.); and
(ii) system size (e.g., <25 kW, <1 MW,
<5MW, >5MW).
(B)
Level 1 review process.
(i) total number of
applications processed; and
(ii)
maximum, mean, and median processing times from receipt of complete application
to provision of a counter-signed interconnection agreement.
(C) Level 2 review process.
(i) total number of applications that passed
the screens in paragraph 3855(b);
(ii) total number of applications that failed
the screens in paragraph 3855(b); and
(iii) maximum, mean, and median processing
times from receipt of complete application to issuance of an interconnection
agreement.
(D)
Supplemental review.
(i) total number of
applications that passed the screens in paragraph 3855(d);
(ii) total number of applications that failed
the screens in paragraph 3855(d); and
(iii) maximum, mean, and median processing
times from receipt of complete application to issuance of interconnection
agreement.
(E) Level 3
review process:
(i) system impact
studies
(ii) total number of system
impact studies completed under paragraph 3856(c); and
(iii) maximum, mean, and median processing
times from receipt of a signed interconnection system impact study agreement to
provision of study results.
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