The Federal Energy Regulatory Commission (“FERC”) recently proposed reforms to the interconnection regulations for small generators – those with a capacity of 20 MW or less. These reforms are meant to make the interconnection process for solar and wind faster and cheaper. Details on the proposed rules and how to participate in the currently open comment period can be found here.
It is essential to both know the rules and when the rules apply. Understanding how energy is governed – whether by federal, state, or local entities – is essential for crafting a financially successful endeavor. As Frederick R. Fucci and Natara Feller put in The Law of Clean Energy: Efficiency and Renewables, “interconnection problems and delays are the single greatest impediment to the successful installation of distributed energy equipment and are holding back the greater development of distributed resources.”
So, when will a small generation facility be impacted by FERC’s proposed reforms? When does FERC’s jurisdiction become relevant when entering into an interconnection agreement?