Agreement Form for Interconnection and Parallel Operation

1. Scope of Agreement

1.1. This Agreement is applicable to conditions under which the Distributor and the Participant agree that one or more generating systems and all related interconnection equipment (described in the Application for Interconnection of Distributed Generation and attached to this agreement and hereinafter referred to as "Qualifying System") located at Participant's presently metered location with gross power rating listed and to be interconnected kV listed may be interconnected to the Distributor's electric power distribution system ("System"). Execution of this agreement allows the Participant to proceed with procurement and installation of the system but Participant is not allowed to proceed with parallel operation until Distributor has received a completed Certificate of Completion, Distributor has conducted an onsite inspection and witnessed any required commissioning test or waived such test, and has given Participant written authorization to proceed with parallel operation.

2. Establishment of Point of Interconnection

2.1. The point where the electric energy first leaves the wires or facilities owned by the Distributor and enters the wires or facilities provided by Participant is the "Point of Interconnection." Distributor and Participant agree to interconnect the Qualifying System at the Point of Interconnection in accordance with the Distributor's rules, regulations, and by‐laws which are incorporated herein by reference, and the Qualifying System and all related interconnection equipment will comply with the Distributor's Customer Generation Interconnection Procedures.

3. General Responsibilities of the Parties

3.1. Distributor in agreement with Participant has conducted additional engineering evaluations or detailed impact studies.

3.2. Participant shall comply with all applicable laws, regulations, zoning codes, building codes, safety rules and environmental restrictions.

3.3. The Participant shall provide Local Building Code Official inspection and certification of installation forms to the Distributor.

3.4. Prior to parallel operation, the Distributor will inspect the Qualifying System for compliance with standards.

3.5. Participant shall conduct operations of its Qualifying System in compliance with all aspects of the Rules.

3.6. The Participant shall be responsible for protecting its generation equipment, inverters, protective devices, and other system components.

4. Inspection and Ongoing Compliance

4.1. Distributor will provide Participant with as much notice as reasonably practicable.

5. Manual Disconnect Switch

5.1. Participant must install a manual, lockable, visible load break disconnect switch.

6. Disconnection/Reconnection

6.1. Distributor may open the manual disconnect switch or disconnect the Participant’s meter.

6.2.1. Emergencies or maintenance requirements on Distributor’s system;

6.2.2. Hazardous conditions existing on Distributor’s system due to the operation of the Participant’s generating or protective equipment.

6.2.3. Adverse electrical effects, such as power quality problems on the electrical equipment of Distributor’s or other electric consumers caused by the Participant-owned generation.

6.2.4. Failure to pay the distributor for costs associated with the participant’s system

6.2.5. Unauthorized alterations to the participant’s system from the original installation of the system.

7. Modifications/Additions to Participant-owned Generation

7.1. If the Qualifying System is subsequently modified in order to increase or decrease its Gross power rating or any components are changed.

7.2. Distributor has the right to accept or deny the request of the proposed modifications.

8. Indemnity

8.1. Participant agrees to release, indemnify, and save harmless Distributor, TVA, the United States of America.

9. Assignment

9.1. The Interconnection Agreement shall not be assignable by either party without thirty (30) calendar days notice.

9.2. An assignee to this Interconnection Agreement shall be required to assume in writing the Participant’s rights, responsibilities, and obligations.

10. Insurance

10.1. Distributor requires the following levels of Liability Insurance for Personal Injury and Property damage.

10.2. Generation up to 10 kW – Participant maintains an amount of not less than $100,000.

10.3. Generation greater than 10 kW but equal or less than 50 kW – Participant maintains an amount of not less than $500,000.

11. Billing and Payment

11.1. Participant is responsible for Distributor’s costs (whether actual or flat fees), including applicable overheads.

11.2. Upon receipt of sufficient information from Participant, Distributor shall provide to Participant a good faith estimate.

11.3. Participant shall remit to Distributor the full amount equal to such good-faith estimate of the Upfront Interconnection Costs.

12. Effective Term and Termination Rights

12.1. The Qualifying System is capable of operation and connected to the Distributor’s system

12.2. The Qualifying System is compliant to the Distributor’s interconnection requirements

12.3. This Agreement will be terminated immediately upon the removal of the generation system.

13. Entirety of Agreement and Prior Agreements Superseded

13.1. This Agreement, including the Rules, of the Agreement executed by Distributor and Participant, and all attached Exhibits expressly made a part hereof for all purposes.

14. Notices

14.1. Notices given under this Agreement are deemed to have been duly delivered if hand delivered, sent via email, sent by United States certified mail (return receipt requested for all methods of notification):

The above-listed names, titles, and addresses of either Party may be changed by written notification to the other. N WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their respective duly authorized representatives.
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