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Regulatory Perspective: IEEE 1547 Revision and DER InterconnectionStandardsSpring 2018 Joint CREPC-WIRAB Meeting (August 21, 2018)https://mn.gov/puc

DisclaimerThe ideas expressed are the views of the presenter, and not the MinnesotaPublic Utilities Commission.8/21/2018https://mn.gov/puc2

Interconnection Update Takeaways Identify a well-balanced workgroup or informal group of individuals fromutilities, DER industry, and consumer advocates. Establish a clear process (scope and timeframe) that groundsrecommendations in guiding principles and facts. Encourage shared learning and include Commission. Keep in mind future proofing versus driving specific outcomes. Engage outside expertise in a transparent way.8/21/2018https://mn.gov/puc3

Future Proofing and Grid ModernizationSource: ICF, Integrated Distribution Planning,August 2016, prepared for MN PUC

Commission OrderJanuary 24, 2017 The Commission hereby delegates authority to the Executive Secretary to issue Notice(s), set schedules, and designatecomment periods for the scope outlined in paragraphs 2 – 3 below. The Executive Secretary will, in cooperation with theDepartment of Commerce, convene a work group of appropriate size and composition, and may select a facilitator, to developthe record more fully. The Commission will transition the Minnesota Interconnection Process to one based on the FERC SGIP and SGIA. TheExecutive Secretary will set schedules and take comments. It is anticipated that the Commission will consider the record andcomments within 18 months of this order, to replace Attachments 1, 3, 4, and 5 to its 2004 Interconnection Standards in thisDocket. The Executive Secretary will use the Joint Movants’ May 12, 2016 filing, generally, as the starting point for comments. In the longer-term (nine to twenty-two months), the Executive Secretary will set schedules and take comments on updating theMinnesota interconnection technical standards. It is anticipated that the Commission will consider the record and commentswithin 24 months of this Order, to replace Attachment 2 to the Commission’s 2004 Interconnection Standards. This stage ofwork would incorporate newly revised national technical standards, and other issues identified as areas in need of updating. The Commission hereby designates Commissioner Matthew Schuerger as lead commissioner pursuant to Minn. Stat. § 216A.03,Subd. 9, with authority to help develop the record necessary for resolution of the issues, and to develop recommendations tothe Commission in this docket.

Minnesota Interconnection UpdatePhase IPhase IIInterconnection Process,Applications, AgreementsTechnical Requirements consistentwith newly revised IEEE 1547(Published April 6, 2018)Phase IPhase III?- Compensation?- Rate Design?- Incentive for the utility?Phase II3 initial documents (FERC SGIP/SGIA, Joint Movants’ Red-line 1 initial document (Regulated Utilities’ Technicalof FERC; Dakota Electric Red-line of MN existing stds)Interconnection and Interoperability Requirements Proposal)15 organizations (engineers, regulatory staff, lawyers,advocates)9 organizations (engineers, technical experts)5 full day In Person meetings – 1 year8 half day web meetings – 7 months; 3 full day In PersonmtgsDraft staff recommendations (4 rounds of comments)Edits as we go ( 2 rounds of comments)8/21/2018https://mn.gov/puc6

Workgroup Topics & Timeline2017June 2July 28Sept 15Nov 3Dec 1PHASE I In-Person TopicsPre-app report; Application requirements; Queuetype & process; Material Modification Definition;Fast Track; Site ControlDefinitions; Transmission Provider’s role;Engineering screens; Study process; processtimelines/extensions; dispute resolutionInsurance; Disconnect Switch; metering;Commissioning/inspection, testing, authorization;Design, procure, install, constructfacilities/upgrades; advanced invertersInterconnection Agreement; process for updating;Transition issues; any outstanding issuesWebinar for feedback on some of the draft staffrecommendations and descriptions of outstandingissues2018PHASE II Web Meeting TopicsMarch 23 Scope/Overview; Inventory of Definitions to DiscussApril 13Performance Categories; Response in Normal andAbnormal Conditions; MISO Bulk Power SystemMay 18Reactive Power and Voltage/Power ControlPerformance; Protection RequirementsJune 8Energy Storage; Non-export; Inadvertent export;Limited exportAug 24Interoperability (Monitor and Control Criteria);Metering; Cyber securitySept 14Test and Verification; Witness Test ProtocolSept 21Full Day In Person to Revisit and Reconcile EditsOct 3References; Definitions; 1-line diagramrequirements; Agreements

Technical Requirements Considered; Not Explicit in IEEE1547 Definition and application of limits to a DER’s “capacity” versus nameplaterating. Non-export or Limited export; including inadvertent export. Metering requirements Distribution upgrades for remote control and monitoring 1-line diagrams8/21/2018https://mn.gov/puc8

Phase II Preliminary Take Aways1. Familiarize yourself with IEEE 1547.2. Establish a technical subgroup with utility and DER expertise.3. Work with your RTO/ISO and neighboring states.4. Recognize the elephant in the room (may not be in scope) and frame your processappropriately.5. Work with technical experts in a transparent way.6. Interim implementation requires consideration.8/21/2018https://mn.gov/puc9

1. Familiarize yourself with IEEE 1547 Authority Governing Interconnection Requirements:authority governing interconnection requirements (AGIR): A cognizant and responsible entity that defines, codifies,communicates, administers, and enforces the policies and procedures for allowing electrical interconnection of DER to theArea EPS. This may be a regulatory agency, public utility commission, municipality, cooperative board of directors, etc. Thedegree of AGIR involvement will vary in scope of application and level of enforcement across jurisdictional boundaries. Thisauthority may be delegated by the cognizant and responsible entity to the Area EPS operator or bulk power system operator.NOTE—Decisions made by an authority governing interconnection requirements should consider various stakeholder interests,including but not limited to Load Customers, Area EPS Operators, DER Operators, and bulk power system Operator. Capabilities Æ Enabling Capabilities Æ Utilization Æ Reporting Annex B is an informational guide for setting performance categories Provide engineering support to your staff. IEEE 1547 available for purchase: 2018.html8/21/2018https://mn.gov/puc10

2. Establish a Technical Subgroup w/ Utility & DERExpertise 6 utility representatives (IOU, cooperative, municipal) and 5 non-utility representatives (DER, customers,etc.) Green formed “Regulated Utilities” and submitted a draft MN Technical Interconnection andInteroperability Requirements proposal that serves as the working document for edits. 3 representatives participated in IEEE 1547 revision (including 2 from “Regulated Utilities”). EPRI and NREL participate as technical assistance with goal of creating a road map for other utilities andstates going through this update.Jeff Schoenecker/Craig Turner, Dakota Electric Assn.(Rate-regulated cooperative)Lise Trudeau, Dept of CommerceMike McCarty/Katie Bell, Energy Freedom Coalitionof AmericaBrian Lydic/Sky Stanfield/Laura Hannah – InterstateRenewable Energy Council, Fresh Energy,Environmental Law & Policy Center (Joint Movants)8/21/2018Robert Jagusch, MN MunicipalUtilities AssnKevin McLean/Jenna Warmuth, MNPowerKristi Robinson, MN Rural ElectricCooperative Assn.Dean Pawlowski, Otter Tail Powerhttps://mn.gov/pucPatrick Dalton/John Harlander/Alan Urban, XcelEnergyTam Kemabonta/Professor Mahmoud Kabalan,Academic/unaffiliatedJohn Dunlop/Chris Jarosch, MN Solar EnergyIndustry Assn.Commissioner Matt Schuerger; Staff: MichelleRosier; Cezar Panait.11

3. Work with your RTO/ISO, NERC ReliabilityCoordinators and neighboring states IEEE 1547 considers and seeks to address bulk power system issues. Establish contact early and identify the right people. Ask for an update on: 1) DER impact analysis efforts, and 2) Existing Bulk PowerSystem voltage and frequency concerns and causes. If possible, work collaboratively with respect for each other’s roles.8/21/2018https://mn.gov/puc12

4. Capabilities vs. Utilization and State Requirements Utilization of IEEE 1547 required capabilities brings questions re: compensation; visibility;dispute resolution. How do you address the gap between setting a performance requirement (re: capability) and theArea EPS utilizing those capabilities? FERC Order 842: Frequency Response “While we are requiring newly interconnecting generating facilities to install equipment capable of providingfrequency response and adhere to specified operating requirements, we are not mandating headroom,which is a necessary component for the provision of primary frequency response service.” Utilization can have impacts on DER owners (active power curtailment, reactive power exchange, head room) anddistribution utilities (voltage or frequency ridethrough with extended trip settings) Utilizing interoperability and communication enabled with IEEE 1547 at the DER local interface may requireadditional equipment and investment in areas outside IEEE 1547’s scope by utility and/or DER customer/operator. What should the role of statewide technical requirements be?8/21/2018https://mn.gov/puc13

5. Work w/ Technical Experts in Transparent Way National Renewable Energy Laboratory (NREL), Electric Power Research Institute (EPRI), RegulatoryAssistance Project (RAP), and Dept of Energy Solar Energy Innovator Program have provided significanttechnical assistance to our process. Check IEEE 1547 list to see who participated in the revision. MN PUC is fortunate to have a Lead Commissioner and engaged utility and DER representatives who participated in theIEEE 1547 revision. They help provide additional insights into what is meant by IEEE 1547 and suggestions on how towork through the state requirements. If possible, offer shared learning opportunities. IEEE has hosted 3 full day trainings on IEEE 1547 in the US; including one MN PUC and Organization for MISO statesjointly hosted. IEEE also has a webinar series. EPRI has a number of white papers and webinar content. NREL has the Distributed Generation Interconnection Collaborative (white papers, webinars) and lessons learned fromother states. Our local experts provided their insights during the drafting and helped identify areas of crossover with Phase I update.8/21/2018https://mn.gov/puc14

Interim Implementation?StepTimelineIEEE 1547 2nd Edition (2018) PublishedApril 6, 2018MN Statewide Technical Requirements Approved1Q 2019UL 1741 Interim SRD for IEEE 1547 2nd Edition(2018)TBD. Expected to address about 85% of 1547 2ndEdition.IEEE 1547.1 PublishedMid-to-late 2019UL 1741 Certified Products Available on Market18 months after IEEE 1547.1 Published ( 2020) Some areas (CA, HI, ISO-NE) are developing interim implementation using UL 1741SA (contains some, but not allof the functionality required in IEEE 1547-2018.) If this approach, TSG must discuss the Source RequirementsDocument (SRD):LocationSRD8/21/2018CaliforniaRule 21Hawaii14HISO-NE1547-2018https://mn.gov/puc15

Resources FERC Small Generator Interconnection Process (SGIP) & Interconnection Agreement dus-act/gi/small-gen.asp NREL Distributed Generation Interconnection Collaborative:https://www.nrel.gov/dgic/ Database of State Incentives Renewable Energy (DSIRE) Interconnection type 14& NERC and IEEE Workshop on IEEE 1547-2018 – Sept 26, 2018 in Atlanta, -eps.html IEEE 1547 available for ard/1547-2018.html8/21/2018https://mn.gov/puc16

Thank You!Michelle 2018https://mn.gov/puc17

Aug 21, 2018 · Implementation of IEEE 1547 Standard: Interconnection of DERs and Utility Electric Power Systems Tuesday, August 21, 2018 2:00 - 3:00 Mountain Time 1:00 -2:00 Pacific Time 1. Outline of Today’s IEEE 1547 Webinar Debbie Lew, GE: The revised 15