GIP Net Zero Interconnection Service.

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1 GIP and GIA Energy Displacement Agreement shall mean an agreement between an Interconnection Customer with a commercially operating Generating Facility on the Transmission Provider s Transmission System and Interconnection Customer with a proposed Generating Facility seeking to interconnect with Net Zero Interconnection Service. The Energy Displacement Agreement specifies the term of operation, the total Generating Facility Capacity, and the mode of operation for energy production (common or singular operation). Monitoring and Consent Agreement shall mean an agreement that defines the terms and conditions applicable to a Generating Facility acquiring Net Zero Interconnection Service. The Monitoring and Consent Agreement will list the roles and responsibilities of an Interconnection Customer seeking to interconnect with Net Zero Interconnection Service and Transmission Owner to maintain the total output of the Generating Facility inside the parameters delineated in the GIA. Net Zero Interconnection Service shall mean a form of ER Interconnection Service that allows an Interconnection Customer to alter the characteristics of a Generating Facility in Commercial Operation, with the consent of Interconnection Customer for that existing Generating Facility, at the same POI such that the net MW capability remains the same. GIP 3.2 Identification of Types of Interconnection Services. At the time the Interconnection Request is submitted, Interconnection Customer must request NR Interconnection Service, ER Interconnection Service or Net Zero Interconnection Service, as described; provided, however, any Interconnection Customer requesting NR Interconnection Service may also request that it be concurrently studied as an ER Interconnection Service, up to the point when an Interconnection Facilities Study for Network Upgrades commences. Interconnection Customer may then elect to proceed with NR Interconnection Service or to proceed under a lower level of Interconnection Service to the extent that only certain upgrades will be completed Net Zero Interconnection Service The Product. Net Zero Interconnection Service is conditional ER Interconnection Service that allows an Interconnection Customer to increase the gross generating capability at the same Point of Interconnection of an existing Generating Facility without increasing the existing Generating Facility Capacity at that Point of Interconnection. Net Zero Interconnection Service does not convey any right to deliver electricity to any specific customer or Point of Delivery.

2 The Study. The Interconnection Study for Net Zero Interconnection Service consists of reactive power, short circuit/fault duty, and stability analyses. Steady-state (thermal/voltage) analyses may be performed as necessary to ensure that all required reliability conditions are studied. The Interconnection Study will identify the Interconnection Facilities required and the Network Upgrades necessary to address reliability issues associated with the Interconnection Facilities. Paragraph in 3.3 Valid IR A request for Net Zero Interconnection Service made by an Interconnection Customer which is not the owner or a subsidiary of the owner of the existing Generating Facility must include with the application an executed Energy Displacement Agreement. Any request for Net Zero Interconnection Service must include with the application a memorandum of understanding with the Transmission Owner to enter a Monitoring and Consent Agreement upon execution of a GIA. If at any time prior to execution of the GIA the Energy Displacement Agreement or memorandum of understanding required above is no longer in effect, the Interconnection Request for Net Zero Interconnection Service shall be deemed to have been withdrawn Additional Requirements for a Net Zero Interconnection Request application A request for Net Zero Interconnection Service made by an Interconnection Customer must meet the requirements listed in section above, plus the following requirements: 1. The existing Generating Facility must request that MISO post on its website that it is willing to enter into a Net Zero arrangement with a suitable proposal. Such posting will include the name of the existing generator, the state and county of the existing generator, and a valid address and phone number to contact the representative of the existing generator. Such posting must be in place for sixty (60) days prior to the Transmission Provider receiving an Interconnection Request for Net Zero Interconnection Service at that existing generator. Interconnection Requests received less than sixty (60) days of the posting will receive an Initial Queue Date of sixty-one (61) days after the posting. 2. The Interconnection Customer must include the System Impact Study performed for the existing Generating Facility with its application. Formatted: Indent: Left: 1.75", No bullets or numbering

3 Transmission Provider will use that System Impact Study to appropriately scope the Interconnection Customer s System Impact Study described in Section 8.3 of this GIP. 3. If the Interconnection Customer is not the owner or a subsidiary of the owner of the existing Generating Facility the Interconnection Customer must include with the Interconnection Request an executed Energy Displacement Agreement in the form of _[Pointer to Pro Forma EDA inclusionappendix 10 of the GIP]_ to be effective upon execution of a GIA and must remain in effect during the term of the GIA. 4. Any request for Net Zero Interconnection Service must include with the Interconnection Request an executed Monitoring and Consent Agreement in the form of _[Pointer to Pro Forma MCA inclusionappendix 9 of the GIP] with the Transmission Owner, to be effective upon execution of a GIA and must remain in effect during the term of the GIA. 5. If at any time prior to execution of the GIA the Energy Displacement Agreement or Monitoring and Consent Agreement required above is no longer in effect, the Interconnection Request for Net Zero Interconnection Service shall be deemed to have been withdrawn. 6.2 Scope of Interconnection Feasibility Study. Upon the determination by Transmission Provider of a valid Interconnection Request, including requests for Net Zero Interconnection Service, Transmission Provider shall commence the performance of the Interconnection Feasibility Study. The Interconnection Feasibility Study shall preliminarily evaluate the impact of the proposed Interconnection Request on the Transmission System. The Interconnection Feasibility Study will consider the Base Case as well as all generating facilities (and with respect to subparts iii, iv and v), any identified Network Upgrades, Distribution Upgrades and Generator Upgrades that, on the date the Interconnection Feasibility Study is commenced: (i) are interconnected to the Transmission System or Distribution System, as applicable; (ii) are interconnected to Affected Systems and may have an impact on the Interconnection Request; (iii) where known by Transmission Provider, have an executed interconnection agreement to interconnect to the Distribution System or Affected System; (iv) have a pending Interconnection Request to interconnect to the Transmission System being evaluated in the Definitive Planning Phase or (v) have executed a GIA or requested that an unexecuted GIA be filed and is filed

4 with FERC. The Interconnection Feasibility Study will consist of a power flow and may include limited stability analysis of known stability issues. The Interconnection Feasibility Study will provide a list of apparent reliability and operating issues. Paragraph in 8.3 Interconnection System Impact Studies for Net Zero Interconnection Service requests will consist of short circuit and stability analyses as described above in this Section 8.3. If Transmission Provider determines upon a review of the Interconnection Studies performed for the existing Generating Facility in Commercial Operation (against which the Net Zero Interconnection Service is sought) that power flow analyses are required, then the system impact study may include such analyses as well. Item 3 in the IR Appendix 1 to GIP 3. The type of interconnection service requested (check one as appropriate): Energy Resource Interconnection Service Network Resource Interconnection Service Network Resource Interconnection Service in connection with a resource solicitation process Net Zero Interconnection Service Item 4k in the IR Appendix 1 to GIP k. If this Interconnection Request is for Net Zero Interconnection Service, attach a copy of the Energy Displacement Agreement and the memo of understanding to enter a Monitoring and Consent Agreement. In GIA Net Zero Interconnection Service. Where this GIA provides for Net Zero Interconnection Service and the Energy Displacement Agreement or the Monitoring and Consent Agreement required for Net Zero

5 Interconnection Service are no longer in effect, Interconnection Customer shall immediately cease Commercial Operation of the Generating Facility and this GIA shall be deemed terminated. Appendix I Requirements Applicable to Net Zero Interconnection Service Where this GIA provides for Net Zero Interconnection Service, Interconnection Customer acknowledges, agrees to, and will be required to operate under the following conditions: 1) The combined Real-Time Offers, including Energy and Operating Reserves, of the Generating Facility and the existing Generation Resource with which Interconnection Customer has an executed Energy Displacement Agreement must be less than or equal to the level of Interconnection Service provided to that existing Generating Resource. 2) The Actual Energy Injection resulting from the combined output of the Generating Facility and the existing Generation Resource with which Interconnection Customer has an executed Energy Displacement Agreement must be less than or equal to the level of Interconnection Service provided to that existing Generating Resource. 3) The existing Generating Resource with which Interconnection Customer has an executed Energy Displacement Agreement is not relieved of any applicable requirements under Module E of the Tariff.

6 Proposed Revisions to Appendix I Appendix I Requirements Applicable to Net Zero Interconnection Service Where this GIA provides for Net Zero Interconnection Service, Interconnection Customer acknowledges, agrees to, and will be required to operate under the following conditions: 1) The combined Real-Time Offers, including Energy and Operating Reserves, of the Generating Facility and the existing Generation Resource with which Interconnection Customer has an executed Energy Displacement Agreement must be less than or equal to the level of Interconnection Service provided to that existing Generating Resource. In the event that the sum of the simultaneous energy output of the Generating Facility and the Existing Generating Facility exceeds Existing Generating Facility s then-current Interconnection Service limit, MISO reserves the right to disconnect the Generating Facility immediately and file for termination of the Net Zero Interconnection Service Agreement with FERC In the event that the sum of the emergency and/or economic maximum offer limits of the Generating Facility and the Existing Generating Facility exceeds Existing Generating Facility s then-current Interconnection Service limit, MISO reserves the right to disconnect the Generating Facility immediately and file for termination of the Net Zero Interconnection Service Agreement with FERC. 2) The Actual Energy Injection resulting from the combined output of the Generating Facility and the existing Generation Resource with which Interconnection Customer has an executed Energy Displacement Agreement must be less than or equal to the level of Interconnection Service provided to that existing Generating Resource. 3) The existing Generating Resource with which Interconnection Customer has an executed Energy Displacement Agreement is not relieved of any applicable requirements under Module E of the Tariff. J183 App A as it relates to NZI NZI (Net Zero Interconnection): This Net Zero Interconnection service (ZERO ERIS and/or ZERO NRIS) requires the

7 Interconnection Customer have in effect at all times the Appendix I-2 Agreement with the Existing Generating Facility that is in Commercial Operation and remains in Commercial Operation at the same POI. At all times the Coordinated Output both real and reactive power requirements at the POI shall meet the same real and reactive output requirements as if only the Existing Generating Facility was operating at that output level. The real time instantaneous Coordinated Output of the Existing Generating Facility and the Interconnection Customers Generating Facility shall be monitored b the Interconnection Customer and if the output of the Interconnection Customer s Generating Facility and the Existing Generating Facility exceeds MW level in Appendix I-2 (Attachment A of GIP Appendix 10) at any time, the output of the Interconnection Customer s Generating Facility shall be reduced to zero by the Interconnection Customer until the Interconnection Customer implements corrective action acceptable to the Transmission Provider and Transmission Owner. Annually, the Interconnection Customer shall demonstrate/certify that it has coordinated and continues to have in effect GIP Appendix 10 agreement with Existing Generating Facility that limits the Interconnection Customer s output to the Coordinated Output values as shown in Appendix I-1 (executed Attachment X Appendix 9 MCA form ) and I-2 (executed Attachment X Appendix 10 EDA form ). The Interconnection Customer s output shall be curtailed to zero by the Interconnection Customer if output of the Interconnection Customer s Generating Facility and the Existing Generating Facility exceeds the Coordinated Output (until the Interconnection Customer implements corrective action acceptable to the Transmission Provider and Transmission Owner) or if either Appendix I-1 (see GIP Appendix 9 form) or Appendix I-2 (see

8 GIP Appendix 10 form) agreements are terminated.

9 Proposed MCA APPENDIX 9 TO GIP MONITORING AND CONSENT AGREEMENT entered into by the [Interconnection Customer] And [Local Balancing Authority and/or Transmission Owner] MONITORING AND CONSENT AGREEMENT entered into on the day of, 20 Interconnection Customer plans to own, lease and/or control and operate a Net Zero Interconnection Service (NZIS) Generating Facility ( Generating Facility or Facility ) and herby consents to have the operation of the Generating Facility be monitored in accordance with this Agreement as detailed in Attachment A of this Agreement and in accordance with the terms and conditions for NZIS in the MISO Tariff and in accordance with the Generation Interconnection Agreement to be entered into for the Generating Facility pursuant to Attachment X of the MISO Tariff. Interconnection Customer proposes to interconnect the Generating Facility at the same point of interconnection as an existing generating facility ( Existing Generating Facility or Existing Facility ) as detailed in Attachment A of this Agreement which interconnects to the transmission system of Transmission Owner, which system is part of the Transmission System Transmission Owner owns or operates that portion of the Transmission System to which the Existing Facility is interconnected, whose operations are subject to the functional control of Transmission Provider, and to which Interconnection Customer proposes connecting the Generating Facility. Local Balancing Authority is responsible for monitoring generation in compliance with NERC Balancing Authority Reliability Standards and is therefore required to perform monitoring functions of the Generating Facility. Local Balancing Authority and/or Transmission Owner may therefore be required, to perform monitoring functions, as set forth in this Agreement and in accordance with the terms and conditions for NZIS in the MISO Tariff in accordance with a Generation Interconnection Agreement to be entered into for the Generating Facility under Attachment X of the MISO Tariff. It is expressly understood and agreed that the Generating Facility and Existing Generating Facility total megawatt, megavar and megavolt-ampere output at the Point of Interconnection shall not at any time exceed the lower of 1) the Existing Generating Facility then-effective maximum network resource interconnection service (NRIS) or energy resource

10 interconnection service (ERIS) set forth in Attachment A to the Existing Facility Generation Interconnection Agreement or 2) the applicable lower demonstrated capability limit as set forth in Attachment A (hereinafter Interconnection Service Limit ); and Interconnection Customer shall monitor and control at all times the net injection at the Point of Interconnection such that the sum of the simultaneous energy output of the Generating Facility and the Existing Generating Facility shall not exceed the Interconnection Service Limit Attachment A of this Agreement. This monitoring and consent agreement does not amend, modify or supplement any agreement between the owner of the Existing Generating Facility and the Transmission Provider regarding the interconnection and operation of the Existing Generating Facility nor does it modify or supplement any of the provisions in the future Generator Interconnection Agreement among Generating Facility, the Transmission Owner and the Transmission Provider. This Agreement shall become Exhibit I-1 in the future Generator Interconnection Agreement and shall be in effect during the term of the NZIS under the Generator Interconnection Agreement. IN WITNESS WHEREOF, the Parties have executed this Agreement in multiple originals, each of which shall constitute and be an original Agreement among the Parties. [Transmission Owner] and or [Local Balancing Authority] By: Name: Title: [Interconnection Customer] By: Name: Title: Project No. MONITORING AND CONSENT AGREEMENT Attachment A 1) Generating Facility Point of Interconnection (POI): 2) Interconnection Customer s representation of the Existing Generating Facility capacity (lower of demonstrated capability or study output limit at the POI or the level in Appendix 10 EDA to be attached as GIA Appendix I-2)

11 (MW): (MVAR): (MVA): 3) Generating Facility generating Interconnection Request capacity (MW): (MVAR): (MVA): 4) Interconnection Service Limit of the Generating Facility and Existing Generating Facility capacity at the POI (shall not be greater than 2) above ): (MW): (MVAR): (MVA): Comments:

12 PROPOSED EDA Becomes Exhibit I-2 in GIA ENERGY DISPLACEMENT AGREEMENT Appendix 10 TO GIP THIS ENERGY DISPLACEMENT AGREEMENT (sometimes hereinafter referred to as Agreement ) is made and entered into this day of, 20, by and among, organized and existing under the laws of the State of ( Interconnection Customer ), and, organized and existing under the laws of the State of ( Existing Generator Owner ). Interconnection Customer or Existing Generator Owner each may be referred to as a Party or collectively as the Parties. RECITALS WHEREAS, Existing Generator Owner and Interconnection Customer each owns (or will own) electric facilities and is (or will be) engaged in generation, and/or sale of electric power and energy; and WHEREAS, Interconnection Customer intends to own, and operate, or manage the generating facility located in County, and State of ( Generating Facility or Facility ) with an expected Commercial Operation Date of pursuant to its planned Interconnection Request and will interconnect to the transmission system of, which system is part of the Transmission System; and WHEREAS, Existing Generator Owner owns, operates, or manages the existing generating facility located in County, and State of ( Existing Generating Facility or Existing Facility ) which interconnects to the transmission system of, which system is part of the Transmission System. Interconnection Customer s Generating Facility as detailed in Attachment A of this Agreement shall connect at the same Point of Interconnection as the Existing Generating Facility. The Generating Facility Interconnection Customer shall make a Net Zero Interconnection Service Interconnection Request pursuant to MISO Tariff Attachment X Generator Interconnection Process ( GIP). If the Generating Facility and the Existing Generating Facility are not affiliated this Agreement need to be executed and be effective prior to the Interconnection Customer making its Formatted: Highlight

13 Interconnection Request pursuant to the MISO Tariff Attachment X Generator Interconnection Process ( GIP). It is expressly understood and agreed that the Generating Facility and Existing Generating Facility total megawatt, megavar and megavolt-ampere output at the Point of Interconnection shall not at any time exceed the lower of 1) the Existing Generating Facility then-effective maximum interconnection service set forth in Attachment A to the Existing Facility Generation Interconnection Agreement or 2) the applicable lower demonstrated capability limit as set forth in Attachment A (hereinafter Interconnection Service Limit ); and Interconnection Customer shall monitor and control at all times the net injection at the Point of Interconnection such that the sum of the simultaneous energy output of the Generating Facility and the Existing Generating Facility shall not exceed the Interconnection Service Limit Attachment A of this Agreement. Interconnection Customer shall, in accordance with its obligations under the Generator Interconnection Agreement when Generator Interconnection Agreement becomes effective, shall be responsible for the maintaining the net injection at the POI such that the sum of the simultaneous energy output of the Generating Facility and the Existing Generating Facility shall not exceed the Interconnection Service Limit in Attachment A of this Agreement. The Generation Dispatch arrangements are shown in Attachment A. This Agreement does not amend, modify or supplement any agreement between the Existing Generator Owner and the Midwest ISO regarding the interconnection and operation of the Existing Generating Facility. This Agreement shall become Exhibit I-2 in the future Generator Interconnection Agreement and shall be in effect during the term of the NZIS under the Generator Interconnection Agreement. Interconnection Customer s output shall be limited to zero under its Generator Interconnection Agreement during all periods for which this Agreement is not in effect. This Agreement shall have a termination date of ; provided that sixty Days prior to the Agreement termination date, the [Interconnection Customer provides? Parties agree on?] a new termination date that is at a minimum one year after the termination date. Unless previously terminated, this Agreement shall terminate if Interconnection Customer (i) does not obtain a Valid Interconnection Request status for the Generating Facility within the time period allowedpursuant to the MISO Tariff Attachment X Generator Interconnection Process ( GIP). in as specified in Attachment B to this Agreement; (ii) withdraws its Interconnection Request; or (iii) the future executed GIA for the Generating Facility terminates.

14 [Interconnection Customer] By: Name: Title: [Existing Generator Owner] By: Name: Title: Project No. (add when assigned) ENERGY DISPLACEMENT AGREEMENT Attachment A 1) Existing Generating Facility Point of Interconnection (POI): 2) Generating Facility POI: 3) Existing Generating Facility capacity (lower of demonstrated capability or study output limit at the POI: (MW): (MVAR): (MVA): 4) Generating Facility generating Interconnection Request capacity (MW): (MVAR): (MVA): 5) Interconnection Service Limit of the Generating Facility and Existing Generating Facility capacity at the POI shall not be greater than 2) above : (MW): (MVAR): (MVA): Generating Facility Dispatch Description of Interconnection Customer Comment [JWF1]: Eric: I need to know what is desired to be added here? Existing Generating Owner

15 Comments Generating Facility Operation Control 1 Existing Generating Facility Operation Control 2 Overall Generating Facility Operation Control 3 Subordinate Party 4 Check Only One: Existing Generating Facility or Generating Facility shall be solely responsible for the coordinated AGC control of the combined output of Interconnection Customer s Generating Facility and Existing Generating Facility.

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