.06 General Requirements.

A. For small generator facilities at a site for which the applicant seeks a single point of interconnection, the interconnection request shall be evaluated for total exports on the basis of the net system capacity.

B. An interconnection request is required for the interconnection of a new small generator facility, or to increase the total exports, change the energy sales strategy pursuant to Regulation .01C of this chapter, or change the proposed use of an existing small generator facility. Any time a new interconnection request is processed for an existing small generator facility, the utility will apply any standards in effect at the time of the interconnection request and, if approved, a new interconnection agreement will be required. The interconnection request shall be evaluated on the basis of the total net system capacity of the small generator facility.

C. Utility Provided Information.

(1) A utility shall designate a contact person, and provide contact information on its website and for the Commission's website for submission of all interconnection requests, and from whom information on the interconnection request process and the utility's electric distribution system can be obtained.

(2) The information provided by the utility on its website shall include studies and other materials useful to an understanding of the feasibility of interconnecting a small generator facility on the utility electric distribution system, except to the extent providing the materials would violate security requirements or confidentiality agreements, or be contrary to law.

(3) For projects with a nameplate capacity over 20kW, the utility shall:

(a) Provide the applicant an opportunity to request a pre-application report, which may require payment of a fee listed in the utility’s tariff;

(b) Publicly post the fee amount on the utility’s website; and

(c) Provide the pre-application report within 20 business days, once the fee is paid.

(4) The pre-application report shall rely largely on pre-existing utility data and shall, at a minimum, include the following items:

(a) Initial proposed point of interconnection of the small generator facility, including address or GIS coordinates;

(b) Closest electrical facilities to the initial proposed point of interconnection of the small generator facility, including voltage level, feeder identification, substation, and including distance to that substation;

(c) Amount of generation hosting capacity available on the closest feeder, if this information is in possession of or easily obtainable by the utility; and

(d) Any other items specified by the Commission.

(5) In appropriate circumstances, the utility may require an applicant to execute an appropriate confidentiality agreement prior to release or access to confidential or restricted information.

D. If an interconnection request is determined to be complete, any material modification, other than a minor equipment modification, that is not agreed to in writing by the utility, shall require submission of a new interconnection request.

E. If an applicant is not currently a customer of the utility at the location for the proposed small generator facility, upon request from the utility, the applicant shall provide proof of site control evidenced by a property tax bill, deed, lease agreement, contract, or other acceptable document.

F. Connection of Multiple Small Generator Facilities by Single Interconnection.

(1) To minimize the cost of interconnecting multiple small generator facilities, the utility or the applicant may propose a single point of interconnection for multiple small generator facilities located at a single site.

(2) If an applicant rejects a utility proposal for a single point of interconnection, the applicant shall pay any additional cost of providing separate points of interconnection for each small generator facility.

(3) If a utility unreasonably rejects a customer proposal for a single point of interconnection without providing a written technical explanation, the utility shall pay any additional cost of providing separate points of interconnection for each small generator facility.

G. Electrical Isolation of a Small Generator Facility.

(1) A small generator facility shall be capable of being isolated from the utility electric distribution system.

(2) For a small generator facility interconnecting to a primary or secondary line, the isolation shall be by means of a lockable, visible-break isolation device accessible by the utility.

(3) The isolation device shall be installed, owned, and maintained by the interconnection customer for the small generator facility, and located electrically between the small generator facility and the point of interconnection.

(4) A draw-out type circuit breaker with a provision for padlocking at the draw-out position satisfies the requirement for an isolation device.

H. Use of Lockbox for Access to Isolation Device.

(1) An interconnection customer may elect to provide the utility access to an isolation device that is contained in a building or area that may be unoccupied and locked or not otherwise readily accessible to the utility, by installing a lockbox provided by the utility that shall allow ready access to the isolation device.

(2) The lockbox shall be in a location that is readily accessible by the utility, and the interconnection customer shall permit the utility to affix a placard in a location of its choosing that provides clear instructions to utility operating personnel on access to the isolation device.

(3) In the event the interconnection customer fails to comply with the terms of this section and the utility needs to gain access to the isolation device, the utility may not be held liable for any damages resulting from any necessary utility action to isolate the small generator facility.

I. Metering.

(1) Any metering necessitated by a small generator facility interconnection shall be installed, operated, and maintained in accordance with the applicable utility tariff.

(2) Any small generator facility metering requirements shall be clearly identified as part of the interconnection agreement executed by the interconnection customer and the utility.

J. Utility Monitoring and Control of Small Generator Facility.

(1) Utility monitoring or control of a small generator facility shall be permitted subject to the conditions in §J of this regulation.

(2) Any utility monitoring or control requirements shall be:

(a) Consistent with the utility published requirements, as available on the utility’s website; and

(b) Clearly identified in an interconnection agreement executed by the interconnection customer and the utility.

(3) For a small generator facility under a nameplate capacity of 2 MW, utility monitoring or control is not permitted unless:

(a) The Commission approves a utility monitoring and control plan addressing such facilities in the aggregate; or

(b) The interconnection customer consents to utility monitoring or control.

(4) Equipment certified under the latest published editions of IEEE 1547, IEEE 1547.1, and UL 1741 shall be permitted to be used for monitoring or control upon mutual agreement of the utility and the interconnection customer.

(5) A utility monitoring and control plan submitted to the Commission pursuant to §J(3)(a) of this regulation shall include:

(a) Technical requirements;

(b) Cost;

(c) Benefits;

(d) Comparison to IEEE 1547-2018 compliant monitoring and control alternatives, if applicable;

(e) Customer permissions plan; and

(f) Project management plan.

K. Good Small Generator Facility Cybersecurity Practice. A small generator facility’s cybersecurity shall be:

(1) Designed;

(2) Installed;

(3) Maintained; and

(4) Operated to the extent reasonable and practical, in accordance with accepted industry standards and meet utility cybersecurity requirements

L. Witness Test of Small Generator Facility.

(1) The utility shall have the option of performing a witness test after construction of the small generator facility is completed.

(2) The applicant shall provide the utility at least 5 business days notice of the planned commissioning test for the small generator facility.

(3) If the utility elects to perform a witness test, the utility shall contact the applicant to schedule the witness test at a mutually agreeable time within 10 business days of the scheduled commissioning test.

(4) If the utility does not perform the witness test within 10 business days of the commissioning test, the witness test is considered waived unless the utility and applicant agree to extend the time for conducting the witness test.

(5) If the results of the witness test are not acceptable to the utility, the applicant shall address and resolve any deficiencies within 30 calendar days, which may be extended upon the request of the applicant prior to the expiration of the 30-calendar-day period. A request for extension may not be unreasonably denied by the utility.

(6) If the applicant fails to address and resolve the deficiencies to the satisfaction of the utility, the interconnection request shall be considered withdrawn.

(7) If a witness test is not performed by the utility or an entity approved by the utility, the applicant shall satisfy the interconnection test specifications and requirements specified in Section 8 of IEEE Standard 1547.1-2020.

(8) For interconnection equipment that has not been certified or approved under Regulation .07 of this chapter, the witness test may also include the verification by the utility specified in Section 8 of IEEE Standard 1547.1-2020.

(9) All tests verified by the utility shall be performed in accordance with the test procedures specified in Section 8 of IEEE Standard 1547.1-2020.

(10) The applicant shall, if requested by the utility, provide a copy of all documentation in its possession regarding testing conducted under Section 8 of IEEE Standard 1547.1-2020.

(11) The applicant shall demonstrate that it meets the smart inverter requirements of §O of this regulation, if applicable.

M. Interconnection Studies and Applicant Information.

(1) If requested by the applicant, the utility shall provide the applicant copies of any interconnection studies performed in analyzing an interconnection request.

(2) An applicant may provide any other prospective applicant copies of interconnection studies to aid in streamlining a future utility review.

(3) Queue position for all small generator facilities shall be prioritized based on the date the interconnection request is submitted.

(4) Each utility shall publicly and electronically provide an interconnection queue, updated monthly, that includes the following information about each interconnection request for any small generator facility with a nameplate capacity greater than 500 kW:

(a) Size (MW or kW);

(b) Proposed circuit number and substation;

(c) County and zip code;

(d) Interconnection request received date;

(e) Queue position on the system’s proposed circuit number and substation;

(f) Review status;

(g) Interconnection request approved date; and

(h) Any other information requested by the Commission.

(5) A small generator facility shall remain on the list for at least 3 years after the interconnection request was approved by the utility, unless subsequently cancelled or removed from the interconnection queue pursuant to §N of this regulation.

(6) A utility may provide any additional information to a prospective applicant if the utility determines that doing so would streamline the utility’s review of an interconnection request.

(7) A utility has no obligation to provide any prospective applicant any information regarding prior interconnection requests, including a prior applicant's name, copies of prior interconnection studies performed by the utility, or any other information regarding a prior applicant or request.

N. Validity of Conditional Approval.

(1) The notice of conditional approval shall clearly identify the applicable deadline and the consequences of failing to either deliver the certification of completion or request an extension by the deadline.

(2) Once the utility delivers notice of conditional approval to the applicant, the applicant shall deliver the certification of completion within the following time frames:

(a) For an application for a small generator facility with a nameplate capacity smaller than or equal to 100 kW, the applicant:

(i) Shall deliver the certification of completion within 6 months;

(ii) Shall receive a 6-month extension of the specified deadline, upon request; and

(iii) May receive one or more additional extensions of at least 6 months upon good cause shown after an initial 6-month extension; and

(b) For an application for a small generator facility with a nameplate capacity larger than 100 kW, the applicant:

(i) Shall deliver the certification of completion within 12 months;

(ii) Shall receive a 6-month extension of the specified deadline, upon request; and

(iii) May receive one or more additional extensions of at least 6 months upon good cause shown after an initial 6-month extension.

(3) A project participating in the Community Solar pilot program under COMAR 20.62 is not subject to this section.

O. Smart Inverters.

(1) After January 1, 2024, any small generator facility requiring an inverter that submits an interconnection request shall use a smart inverter with either a default or a site-specific utility required inverter settings profile, as determined by a utility.

(2) Any small generator facility may replace an existing inverter with a similar spare inverter that was purchased prior to January 1, 2024, for use at the small generator facility. This requirement does not apply to inverter replacements conducted under manufacturer warranty.

(3) Prior to January 1, 2024, all utilities will establish default utility required inverter settings profiles for smart inverters pursuant to §O(5) of this regulation. A utility with a total number of less than 150,000 customers served in Maryland may use a Statewide utility required inverter settings profile as their default utility required inverter settings profile.

(4) To the extent reasonable, pursuant to any modifications required by §O(5) of this regulation, all utility required inverter setting profiles shall be consistent with applicable smart inverter recommendations from PJM Interconnection, LLC that are applicable.

(5) A default utility required inverter settings profile shall be established by a utility to optimize the safe and reliable operation of the electric distribution system, and shall serve the following objectives:

(a) The primary objective is to incur no involuntary real power inverter curtailments incurred during normal operating conditions and minimal real power involuntary curtailments during abnormal operating conditions.

(b) The secondary objective is to enhance electric distribution system hosting capacity and to optimize the provision of grid support services.

(6) A site-specific utility required inverter settings profile may be established by a utility as necessary to optimally meet the objectives established in §O(5) of this regulation.

(7) All default and site-specific utility required inverter settings profiles shall be documented in interconnection agreements.

(8) A default utility required inverter settings profile shall be published on the utility’s website.

(9)  A utility with a total number of 150,000 or more customers served in Maryland shall:

(a) File an initial default utility required inverter settings profile with the Commission for approval by October 1, 2023 to be effective by January 1, 2024.

(b) File any changes to its established default utility required inverter settings profile with the Commission for approval.

(10) Commission Staff shall file any changes to the established statewide utility required inverter settings profile with the Commission for approval.

(11) A utility required inverter settings profile or statewide utility required inverter settings profile shall be deemed approved within 90 days upon filing, unless directed otherwise by the Commission.

P. Flexible Interconnection Options.

(1) Utilities shall approve interconnection requests while considering flexible interconnection options under a limited export agreement or, for inadvertent export, net system capacity and a proposed use subject to the requirements of this section.

(2) Inadvertent Export for Energy Storage Devices.

(a) Small generator facilities using Level 3 interconnection requests are non-exporting systems and are not allowed to utilize inadvertent exports.

(b) A utility may not approve an inadvertent export option if the interconnection customer lacks the appropriate standardized controls to ensure that the small generator facility operates as agreed upon in interconnection agreements.

(c) Small generator facilities may inadvertently export power of a magnitude and duration as evaluated and allowed by the utility and as specified in their interconnection agreement. Thirty seconds shall be used as a default inadvertent export duration unless the utility determines that this level duration violates utility evaluation criteria.

(d) There are no limits on the number of times inadvertent exports occur in any given customer billing cycle.

(e) Small generator facilities may not have total inadvertent exports greater than the generating facility nameplate capacity multiplied by 1 hour per customer in each billing cycle.

(f) In the event that a small generator facility exceeds approved inadvertent export magnitude or duration limits, the small generator facility shall immediately cease to export power to the grid until acceptable output control has been reestablished.

(3) Net System Capacity and Proposed Use.

(a) An interconnection customer may request that its interconnection request be based on the proposed use of the small generator facility and the impact of its proposed use on net system capacity.

(b) A utility may not approve a proposed use if the interconnection customer lacks the appropriate standardized controls to ensure that the small generator facility operates as agreed upon in interconnection agreements.

(c) In the event that a small generator facility exceeds the approved net system capacity for the proposed use, the small generator facility shall immediately cease to export power to the grid until acceptable output control has been reestablished.

(4) Limited Export Agreements.

(a) By January 1, 2025, a utility shall publish on its interconnection website a description of their limited export agreement policies and provide a process for interconnection customers to request these agreements to avoid the need for a hosting capacity upgrade project to accommodate an interconnection request, including the following:

(i) Limited export agreements shall be made available upon request only to Level 2 and Level 4 interconnection customers;

(ii) Limited export agreement terms shall be mutually agreed upon between a utility and an interconnection customer for operating conditions as specified in the interconnection agreement or in a separate limited export interconnection customer agreement; and

(iii) The method of implementation and control of the limited export agreement terms shall be mutually agreed upon between a utility and the interconnection customer and specified in the interconnection agreement or in a separate limited export interconnection customer agreement.

(b) A utility may not approve a limited export agreement if the interconnection customer lacks the appropriate standardized controls to ensure that the small generator facility operates as agreed upon in interconnection agreements.

(c) In the event that a small generator facility does not curtail and exceeds the approved limited export parameters stated in the interconnection agreement or a separate limited export interconnection customer agreement, the small generator facility shall immediately cease to export real power to the grid until acceptable output control has been reestablished.

(5) If required by the utility, the small generator facility shall be subject to a verification reporting plan to monitor the small generator facility’s compliance with any flexible interconnection option limits involving net system capacity, inadvertent export, proposed use, and limited export agreement requirements as documented in the interconnection agreement. A verification reporting plan may include periodic reports, online monitoring, or other verification methods, or it may be waived as agreed upon by the utility and interconnection customer.

(6) Utilities may include a recurring administrative fee in utility tariffs as a term in flexible interconnection option agreements to reimburse the utility for estimated additional costs to administer these agreements and the stated limiting conditions.

(7) Failure of a small generator facility to demonstrate compliance with the facility’s verification reporting plan may result in the suspension of utility approvals in this section until the small generator facility agrees and implements an acceptable corrective action plan with the utility within 30 calendar days of notification by the utility.

(8) A small generator facility shall cease to export power if it fails to provide an acceptable corrective action plan to the utility, pursuant to §P(7) of this regulation .

Q. Hosting Capacity.

(1) Utilities shall establish hosting capacity policies subject to the following requirements:

(a) A utility shall designate a circuit a closed circuit if there is no remaining hosting capacity.

(b) A utility shall designate a circuit a restricted circuit if only reserve hosting capacity is available.

(c) A utility shall determine the amount of reserve hosting capacity on a restricted circuit based on a circuit-specific assessment of distributed energy resource forecasts or other factors, including customer density, type of area served, and customer demographics of the circuit.

(d) A utility may determine the aggregate generation of a small generator facility permitted to use an electric distribution circuit’s reserve hosting capacity and publish this information on their website.

(e) A utility shall report their closed circuits, restricted circuits, and reserve hosting capacity in their hosting capacity reporting system.

(2) A utility may submit for the Commission’s review and approval a hosting capacity upgrade plan or multiple plans to address or otherwise increase the utility’s existing distribution aggregate circuit hosting capacity limits across the system, or in a specific area of an electric utility’s system, that are forecasted to be congested in the future if the utility’s forecast of distributed energy resource growth exceeds existing hosting capacity. These plans may be considered by the Commission if primary voltage hosting capacity upgrade fees, pursuant to §R of this regulation, exceed a threshold of the utility’s average cost per kilowatt for their aggregate customer funded hosting capacity upgrade projects completed in the previous year, unless good cause exists for a utility to request a waiver of this requirement.

( 3) Hosting capacity upgrade plans that are submitted by a utility shall include:

(a) A description of the electric system areas to be included in the hosting capacity upgrade plan at the feeder and substation level;

(b) A description of the assumptions used for establishing and prioritizing the area covered by the hosting capacity upgrade plan and associated forecasts and timeline for hosting capacity utilization;

(c) A description of the assumptions used for modeling and establishing the cost of the hosting capacity upgrade plan;

(d) If the plan proposes that ratepayers bear any costs that would not be paid by future interconnection customers, a justification for the percentage cost allocation proposed between interconnection customers and ratepayers, including descriptions of:

(i) How the proposed cost allocation was developed and what alternatives were considered, explaining and quantifying the benefits ratepayers are expected to receive from the upgrade; and

(ii) How the utility engaged with stakeholders, particularly the ratepayer advocate’s office, the Maryland Office of People’s Counsel, in the development of the utility’s cost allocation proposal ;

(e) A description of the proposed cost allocation method in terms of dollars per kilowatt for a primary voltage hosting capacity fee for an interconnection customer;

(f) A description of the proposed cost allocation to ratepayers and the risks to ratepayers of unallocated hosting capacity upgrade costs if the hosting capacity upgrade does not become fully utilized ; and

(g) A proposal for utility cost recovery that describes how hosting capacity upgrade costs shall be offset by future utility revenues from interconnection customers.

(4) A utility shall have a procedure for calculating hosting capacity accounting for either gross peak or gross minimum loading based on good engineering practice.

(5) The utility shall perform a representative sample of hosting capacity calculation validation checks at least annually, or more frequently in areas experiencing significant growth or distributed energy resource penetration. The hosting capacity calculation validation check frequency shall account for the utility's experience, good engineering practices, and judgment.

R. Maryland Cost Allocation Method.

(1) Within 1 year of the effective date of this regulation, electric utilities shall submit an electric utility service tariff for Commission approval for a primary voltage hosting capacity cost sharing and allocation methodology for interconnection customers, as follows:

(a) The default hosting capacity cost sharing and allocation methodology for primary voltage interconnection customers shall be based on locational pricing to incentivize interconnection in areas with higher available hosting capacity and disincentivize interconnection in areas with lower available hosting capacity.

(b) A utility may petition the Commission to implement a hosting capacity cost sharing and allocation methodology for primary voltage interconnection customers that is not locationally based for “good cause” in their tariff filing.

(c) An interconnection request shall be eligible for hosting capacity cost sharing and allocation under this section unless they are exempted for the following reasons:

(i) The interconnection request is subject to the PJM Interconnection, LLC Tariff;

(ii) The interconnection request is in an area with its cost allocation governed by a hosting capacity upgrade plan approved by the Commission;

(iii) The interconnection is on a dedicated primary voltage feeder that may not benefit any other interconnection customer;

(iv) The interconnection is on a dedicated secondary voltage facility that may not benefit any other interconnection customer;

(v) The interconnection request is on an AC distribution grid or spot network; or

(vi) Other good cause as documented by the utility and reported, pursuant to Regulation .14 of this chapter.

(d) If an interconnection request is exempted, pursuant to §R(1)(c) of this regulation, the interconnection customer shall pay all interconnection costs as determined by the utility, unless the interconnection request is subject to the PJM Tariff or the interconnection request is in an area with its cost allocation governed by a hosting capacity upgrade plan approved by the Commission.

(e) If sufficient hosting capacity is not available at a point of interconnection for a primary voltage interconnection customer, an electric utility may propose a hosting capacity upgrade project to the interconnection customer or customers, as follows:

(i) The utility shall charge the primary voltage interconnection customer a hosting capacity fee for its share of the primary voltage hosting capacity upgrade cost proportional to the interconnection customer’s utilization of hosting capacity.

(ii) If more than one interconnection request exists in the interconnection queue that shall benefit from the electric utility proposed hosting capacity upgrade project, these interconnection customers shall be clustered together for the purpose of calculating hosting capacity fees.

(iii) Hosting capacity fees for clustered interconnection customers shall be calculated proportional to each interconnection customer’s utilization of the hosting capacity created by the hosting capacity upgrade project.

(iv) All hosting capacity upgrade costs in excess of hosting capacity fees collected shall be accumulated in a separate unallocated primary voltage hosting capacity upgrade cost account for future allocation to primary voltage interconnection customers.

(v) Unallocated hosting capacity upgrade costs for primary voltage interconnection customers shall be shared and allocated to other primary voltage interconnection customers using a primary voltage hosting capacity cost sharing and allocation methodology in an electric utility service tariff approved by the Commission.

(2) Within 1 year of the effective date of this regulation, electric utilities shall submit an electric utility service tariff for Commission approval for a secondary voltage cost sharing and fee for both residential and commercial interconnection customers, as follows:

(a) If sufficient hosting capacity is not available at a point of interconnection for a secondary voltage interconnection customer, an electric utility may construct a hosting capacity upgrade project for the interconnection customer or customers.

(b) All secondary voltage hosting capacity upgrade costs shall be accumulated in separate unallocated accounts for both residential and commercial secondary voltage interconnection customers for future allocation in hosting capacity fees.

(c) Unallocated hosting capacity upgrade costs for both residential and commercial secondary voltage interconnection customers shall be shared and allocated to other secondary voltage interconnection customers using a hosting capacity cost sharing and allocation fee in an electric utility service tariff approved by the Commission.

(3) Hosting capacity fees for primary voltage interconnection customers shall be reset using a cost sharing and allocation methodology approved by the Commission in an electric utility service tariff filing whenever a change in methodology is proposed, unless the fee is zero or the fee change is less than $1 per kilowatt.

(4) Hosting capacity fees for secondary voltage interconnection customers shall be reset annually using a cost sharing and allocation methodology approved by the Commission unless the fee is zero or the fee change is less than $1 per kilowatt from the current fee in the electric utility’s service tariff.

(5) A utility may submit for Commission approval an administrative charge in its service tariff to recover its administrative costs for managing the cost sharing and allocation methodology for primary and secondary voltage interconnection customers.

(6) A utility shall describe all hosting capacity upgrade project rightsizing projects describing their forecasts, inputs, and assumptions in their next rate case to assist stakeholders in a prudency review.