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Interconnection Agreement for Utilities (NAICS 22)

Utilities · NAICS 22 · Interconnection Agreement

An interconnection agreement is a critical contract between a utility and a party seeking to connect to the electric grid, whether for generation, load, or distributed energy resources. This agreement defines the technical, operational, and financial terms under which the interconnection is permitted, ensuring safety, reliability, and cost clarity. In the utilities industry, these agreements are essential for projects ranging from residential solar to large-scale wind farms. This tool generates a comprehensive draft tailored to your specific project, incorporating industry standards and regulatory considerations.

When you need this document

When a customer or developer wants to install distributed generation (e.g., solar, battery storage) and connect to the distribution grid.
When a utility needs to formalize the connection of a new industrial load or substation.
When a large generator (>10 MW) is interconnecting to the transmission system under FERC jurisdiction.
When two utilities need to establish a tie-line for reliability or emergency power exchange.
When updating an existing interconnection due to changes in capacity or equipment.

What the generated draft includes

Recitals and definitions of key terms (e.g., Point of Interconnection, Interconnection Facilities).
Technical requirements and standards (e.g., IEEE 1547, utility-specific requirements).
Cost allocation and payment terms for studies, construction, and maintenance.
Insurance, liability, and indemnification provisions.
Operation, metering, and testing requirements.
Term, termination, and dispute resolution mechanisms.

Frequently asked questions

What is the difference between an interconnection agreement and a power purchase agreement?

An interconnection agreement covers the physical and operational connection to the grid, including technical standards and costs. A power purchase agreement (PPA) governs the sale of electricity between parties. Both may be needed for a generation project.

Do I need a lawyer to review this draft?

Yes, this draft is a starting point. Utility interconnection agreements are complex and must comply with specific tariffs and regulations. A qualified attorney should review and finalize the agreement before execution.

What standards are typically referenced?

For distributed energy resources, IEEE 1547 is the most common standard. For larger generators, FERC's pro forma Large Generator Interconnection Agreement is often used. Your utility may also have its own technical requirements.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.