Authorization
On February 28, 2013 the Rules for connecting electricity generating plants to electric grids as approved by NERC Resolution No.32 dated 17.01.2013 entered into force. According to the Rules, electricity transmission companies shall not deny access to its gird provided that the customer meets the requirements of the Rules.
Connection services shall be provided pursuant to the connection agreement.
The fee for connection to the grid is determined by the electricity transmitting organization according to the relevant fee calculation method as approved by NERC on 12.02.2013, No.115.
The Methodology provides for standard vs. non-standard connection. Thus, customer payment for standard connection shall be based on appropriate rates approved by NERC and the power capacity claimed by the customer.
Fees for non-standard connections shall be determined in each case on the basis of design documentation establishing the cost of electric grid development to ensure the customer's access with regard to the customer's share in the financing of capital construction and/or renovation of facilities for general needs.
In addition, on March 11, 2013 NERC published the Draft Resolution "On Approving the Financing procedure for electric grid connection services." According to the above Procedure, standard connection services shall be rendered solely based on connection fees after concluding an Agreement on Connection to Electric Grid.
Access of customers' facilities intended for the production of electricity from alternative energy sources shall be finance by 50% from the funds provided in the tariffs for electricity transmission, and by 50% due to the return of financial aid provided to customers by electricity transmission organizations. The payback term for such aid is up to 10 years. Also, the document regulates the order of including connection costs and financial aid payback in the electricity transmission tariff.
Source: Arzinger Newsletter
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