Qualifying Facilities

Qualifications

Qualifying facilities (QF) are existing generators that are connected to PG&E's transmission or distribution systems, which produce power through wind, hydroelectric, biomass, waste, geothermal or cogeneration facilities. QFs generate about 25 percent of PG&E's energy supply. Energy deregulation has allowed these generators to choose the markets in which they sell the electricity they generate.

Process for Renewal

Below, you will find the different types of agreements detailing the terms of a facility's interconnection with PG&E:

If your QF is interconnected to the CAISO-controlled grid, you will need to execute either a Large Generator Interconnection Agreement (LGIA) for QFs larger than 20 megawatts (MW), or a Small Generator Interconnection Agreement (SGIA), for QFs smaller than 20 MW. This will be a three-party agreement between you, CAISO and PG&E. Under this agreement, you may select any Power Purchase Agreement (PPA), depending on whether you intend to sell power under the California Public Utilities Commission (CPUC) or the Federal Energy Regulatory Commission (FERC) jurisdiction. If you plan to sign a CAISO Tariff agreement, CAISO will oversee your agreement.
If your QF is interconnected to the PG&E-controlled grid, you will need to execute an Electric Rule 21 or a WDT agreement with PG&E. Similarly, you will need to execute either a LGIA (PDF, 197 KB), for QFs larger than 20 MW, or an SGIA (PDF, 86 KB), for QFs smaller than 20 MW. This will be a two-party agreement between you and PG&E. If you plan to sign an Electric Rule 21 agreement, the CPUC will oversee your agreement. If you sign a WDT agreement, the FERC will oversee your agreement.

Tariff Project size 0–20 MW TariffProject size ≥ 20 MWGoverning Agency
Electric Rule 21 Contact Rule21gen@pge.com for specific IA information CPUC
WDT/Distribution SGIA (2-party) LGIA (2-party) FERC
CAISO/Transmission SGIA (3-party) LGIA (3-party) FERC/CAISO
  • If you sign a Public Utility Regulatory Policy Act (PURPA) PPA, you are eligible to sign an Electric Rule 21 agreement.
  • If you sign a PPA other than a PURPA PPA, you must execute either a CAISO Tariff or a WDT agreement. An example of a PG&E PURPA PPA is the AB 1613 program
  • If you are a qualifying facility (QF) generator and your current PPA is expiring, or if you intend to sell power to additional or different markets, you will need to execute a new PPA as well as replace your current interconnection agreement with PG&E. The type of PPA you choose and whether you connect at the transmission level, 60 kV and above, or distribution level, less than 60 kV, will determine the type of interconnection agreement (IA) you sign with PG&E.

Costs

PG&E's Electric Generation Interconnection (EGI) team offers education about interconnection and helps you to manage the interconnection process. The majority of QF contract conversions can be carried out with no cost to the interconnection customer. However, in some cases, the conversion process requires the installation of new facilities, which may result in some capital outlay by the customer.

Timelines

Contract conversion timelines vary based on the type of interconnection agreement, whether the generating facility has undergone changes since its interconnection, current metering facilities and time associated with drafting the actual interconnection agreement. Additionally, some deadlines and process timelines are governed by CAISO's New Resource Implementation (NRI) process. The renewal process can be lengthy, so PG&E recommends that you begin taking the required steps at least six months before your current PPA expires.

 
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