Dakota Energy Cooperative, Inc. POLICY STATEMENT

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1 Dakota Energy Cooperative, Inc. POLICY STATEMENT Subject: Member Owned Small Renewable Energy Policy No. 57 Rate and Interconnection Requirements Issue Date: May 21, 2008 Revised Date: December 16, 2014 Objective: The purpose of this rate is to implement the Basin Electric Small Renewable Energy Purchase Rate and establish the qualification criteria and rate for all Dakota Energy members for the delivery and purchase of renewable energy from qualified small consumer-owned renewable generation facilities located on Dakota Energy s distribution system. Policy: A. Eligibility: All Dakota Energy Members are eligible for the Small Renewable Energy Generation Rate provided the following requirements are satisfied: 1. The small renewable energy generation must be owned by the member and located on Dakota Energy s distribution system. 2. The total generator nameplate capacity of the renewable energy generator(s) may not exceed a total of 150 kw for a single site. 3. The renewable energy produced by the generator will be used by the member to offset energy purchases from Dakota Energy s distribution system and qualify for the rate. 4. A standby rate may apply to members receiving the small renewable energy rate. Each application for the renewable energy rate will be reviewed case by case to determine if a standby rate should apply. 5. The application of this rate and purchase of renewable energy must be allowed by state law, without subjecting Basin Electric, East River, Dakota Energy or the member to additional regulation and/or obligation. 6. All other criteria of the Basin Electric Small Renewable Energy Purchase Rate must be met. 7. To protect appliances and equipment on the premises of the customer and other consumers, the power generated by the customer shall not induce excessive distortion to the system s voltage or current sine waves. The maximum allowable distortion must not exceed +/-3% measured at the consumer s point of connection to the cooperative. 8. If the generating system interferes with the operation of the cooperative s equipment or interferes with other consumer services, the cooperative reserves the right to disconnect. 9. The customer s (generator owner s) load, in conjunction with the generating system shall not have a power factor of less than.95 leading or lagging. 10. To protect the generating system, and to protect all parties from electric shock, the customer shall supply and install automatic devices to positively disconnect his

2 2 Policy Statement No. 57 generating equipment from the system in the event of a disturbance or supply outage on the cooperative s system. The cooperative shall be allowed access to this device at all times to permit periodic safety tests. 11. The customer shall furnish and install a disconnecting switch to be connected between the cooperative s electric system and the generating system. This switch must provide a visual opening in the line and shall be located and equipped so that Cooperative personnel can have access to operate and lock the switch in case of an outage or for work on the Cooperative and/or Power Supplier s system. 12. The customer shall furnish and install all additional wiring, meter(s) and equipment needed to connect the generating system at the existing service location. The meter socket shall be installed as close as possible to the existing service meter. 13. The Cooperative reserves the right to inspect on demand all protective equipment including relays and circuit breakers owned and installed by the customer at the point of interconnection. B. Availability: This rate shall be available to any qualifying end user and shall be eligible for the rate until the termination of the Basin Electric Small Renewable Energy Purchase Rate or the termination of this rate by Dakota Energy board action. C. Commitment Term: An Agreement shall be executed among East River, Dakota Energy and the consumer for each qualifying small renewable generator stating the terms and conditions of the small renewable generation purchase. D. Energy Payment Schedule: With Green Tags : $0.050 per kwh, the Small Renewable Energy Generation Rate is adjusted annually. Without Green Tags : $0.045 per kwh, the Small Renewable Energy Generation Rate is adjusted annually. E. Billing: 1. Payment for Renewable Energy purchase shall be in the form of a credit on the consumer s monthly power bill or direct payment to the consumer. 2. Thirty-minute time registration demand metering must be installed for all facilities 50 kw and larger. Energy metering shall be required for all facilities. The metering shall be such that all power delivered to the grid (net of the consumer s use) from the member-owned generation shall be metered separately from power delivered from Dakota Energy to the member. The meter measuring power delivered to the member shall not permit reduction of measured power already delivered to the member during periods when the renewable energy generation exceeds the member s demand (the meter may not run backwards). 3. Dakota Energy shall provide East River with the electronic meter data for the demand and energy quantities delivered to the member distribution system from the memberowned renewable generation. This data shall be provided immediately following the end of the billing period. 4. In the event of a metering equipment malfunction, it will be assumed that no memberowned renewable energy was provided to the electrical grid during the period of the equipment malfunction or failure. F. Attachment A: For detailed interconnection specifications and responsibilities refer to Attachment A. G. One Line Diagram(Attachment B): The following one line diagram is a representation of the electrical system of the producer and its interconnection to the cooperative s system:

3 3 Policy Statement No One line diagram should identify: producer s load(s), point of interconnection with cooperative location of meters, all switches and any other electrical equipment involved in the producer s or cooperative s system. The Dakota Energy Cooperative, Inc. Board of Directors adopted this policy on May 21, Revised: April 15, 2009; November 18, 2009; December 15, 2010; December 14, 2011; November 21, 2012, November 26, 2013, March 25, 2014; August 26, 2014; September 24, 2014 APPROVED: Secretary

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21 Dakota Energy Cooperative, Inc. Term Sheet Wind, or Solar Generation Less Than 150 kw Valid Until Location of Project Interconnection: Generation Size: Energy Payment Schedule: (please initial choice) With Green Tags :, SD Up to 149 kw Small Renewable Energy Generation Rate $0.050 per kwh, subject to annual adjustment to the then current Small Renewable Energy Generation Rate Without Green Tags : $0.045 per kwh, subject to annual adjustment to the then current Small Renewable Energy Generation Rate General Terms: 1. Interconnection: Generator shall be responsible for all interconnection, line extension and transformer costs and shall meet the interconnection requirements. The Generator shall execute an interconnection and power purchase agreement with Dakota Energy. 2. Metering: Generator shall be responsible for all metering costs. The metering shall be such that all power delivered to the grid (net of the consumer s use) shall be metered separately from the power delivered from the cooperative to the consumer. The meter measuring power delivered to the consumer shall not permit reduction of measured power already delivered to the consumer during periods when the wind, solar, or biomass produced energy exceeds the consumer s local electrical requirements (the meter shall not run backwards). Energy metering shall be required for all facilities. Thirty-minute time registration demand metering must be installed for all facilities 50 kw and larger and the meter shall be electronically read by East River Electric and Dakota Energy. 3. Energy Payments: Shall be made on a monthly basis for all energy delivered to the grid. 4. Regulatory Issues: Generator shall be responsible for any regulatory or environmental approvals or permits. 5. Other Terms: Other terms as may be normally incorporated in power supply contracts. Member Signature: Cooperative Signature: DATE: DATE: Page 1 of 1

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