1) Is an operable, permanently installed or mobile generation system that supplies all or a portion of the Customer’s electrical load requirements;

2) Is connected in parallel to the Member’s distribution system and normally operates in an extended parallel configuration;

3) Does not exceed 10,000 kilowatts (kW) of nameplate capacity interconnected at a point of common coupling to the Member’s distribution system; and

4) Is not used to participate in GRE’s Special Rate Rider L (Interruptible Commercial & Industrial Loads) or any other demand-side management program.

1) Less than 40 kW - Any Member with a Customer taking service under a Member’s Parallel Generation tariff, as established under Minnesota Rules chapter 7835, shall not be required to take standby service under this rider if the Customer’s DG System has a generator nameplate rating of less than 40 kW;

2) Less than 60 kW - Any Member with a Customer taking service under a Member’s Rider for Distributed Generation Service shall not be required to take standby service under this rider if the Customer’s DG System has a nameplate rating less than 60 kW, unless the Member has reduced or eliminated this threshold for exception, in which case standby service under this rider will be required; and

3) Physical Assurance - Any Member with a Customer taking service under a Member’s Rider for Distributed Generation Service shall not be required to take standby service under this rider if the Customer provides physical assurance that ensures standby service will not be taken. A Customer requesting a physical assurance exemption must comply with all provisions of either a) or b) below:

a) Furnish and install an approved load limiting device, at their expense, which shall be set and sealed by the Member.

i) Any actual usage resulting from the failure of a load limiting physical assurance device shall be billed to the Member as non-firm standby service usage.

ii) Customers with load limiting physical assurance devices are ineligible for any GRE demand side management program.

b) Furnish and install a separate, stand-alone back-up generation system with a nameplate rating greater than the Customer’s total load connected to the DG System.

i) The back-up generation system must participate in and comply with all requirements of GRE’s Special Rate Rider L (Interruptible Commercial and Industrial Loads).

ii) The Customer must provide and maintain interval metering compatible with GRE’s meter recording system (MV-90) and an appropriate telephone line that enables GRE to remotely access and record the output of the back-up generator and the connected load.

1) The Member requests use of standby service for a specific period of time from GRE Member Services prior to its actual use.

a) A member’s standby usage request to GRE is limited to individual 24-hour periods during the months of June, July or August.

2) GRE, in its sole discretion, approves the Member’s use of standby service prior to its actual use.

a) GRE has no obligation to approve the Member’s request as submitted and retains the right to disapprove specific time periods of any request.

b) GRE will make a good faith effort, but have no obligation, to respond to requests made less than 24 hours prior to the start of the actual use.

1) The Customer does not sell any capacity from their DG System, and

2) The Customer takes standby service from the Member and the amount of monthly Contracted Standby Demand equals the nameplate rating of the DG System.

1) The Member must execute an Electric Service Agreement (ESA) with a Customer that specifies:

a) Nameplate Rating of the Distributed Generation System in kW

b) Term of Electric Service Agreement

i) Initial term must be one year.

ii) Successive terms must be for one-year periods.

c) Standby Service Requirements

i) Type

(1) Firm or

(2) Non-Firm

ii) Amount of Contracted Standby Demand (CSD) in kW

(1) A positive integer amount that is the same for all months of the term.

(2) May not exceed the generator nameplate rating of the DG System minus any capacity sold to GRE.

2) Standby services will be provided on an annual basis only.

a) The Member shall provide GRE with documentation each year, at least ninety (90) days prior to the anniversary of the initial start date, confirming the nameplate capacity amount and reliability of the power source for which the Customer requires standby service

b) GRE will continue to provide standby service to Members for subsequent annual terms, at the previously established contract amounts until:

i) The ESA is terminated by the Member,

ii) The ESA is amended by the Member to change the contract amounts, or

iii) The Fixed Date, for a Member who has made a Fixed Purchase Election in accordance with Section 1.2 of the Power Purchase Contract between GRE and the Member dated August 1, 2004 (PPC).

c) Member must provide GRE with a copy of any amendments or terminations within thirty (30) days of execution.

• Reservation Fees, which are paid to GRE each month and

• Usage Charges, which are paid to GRE each month that standby or supplemental services are actually used by the Customer.

Monthly Reservation Fee (per kW of Contracted Standby Demand)
Billing Month	GRE Season	Firm Standby Service	Non-Firm Standby Service
January	Winter	$ 1.53	$ 0.00
February	Winter	$ 1.53	$ 0.00
March	Spring	$ 1.06	$ 0.00
April	Spring	$ 1.06	$ 0.00
May	Spring	$ 1.06	$ 0.00
June	Summer	$ 2.00	$ 0.00
July	Summer	$ 2.00	$ 0.00
August	Summer	$ 2.00	$ 0.00
September	Fall	$ 1.06	$ 0.00
October	Fall	$ 1.06	$ 0.00
November	Fall	$ 1.06	$ 0.00
December	Winter	$ 1.53	$ 0.00

1) Capacity Usage Billing Units

a) The Member shall be billed monthly for the capacity supplied by GRE for the Customer’s total demand coincident to GRE’s monthly billing peak demand, net of the DG capacity available to the Customer.

i) The DG capacity available to the Customer shall be the greater of zero or the difference between the total DG System output during GRE’s monthly demand billing peak minus the capacity sold to GRE.

b) The Member shall be billed monthly capacity usage charges for the Customer demand supplied by GRE in accordance with the following:

i) Available contracted standby capacity (firm or non-firm) shall be calculated first and applied to Customer’s demand requirements supplied by GRE.

ii) Any Customer demand supplied by GRE that exceeds the calculated amount of available contracted standby capacity shall be billed as:

(1) Supplemental capacity usage if the Customer is eligible for supplemental service, or

(2) If the Customer is not eligible for supplemental service, then

(a) First, as non-firm standby capacity usage, up to the nameplate rating of the DG System, and then

(b) Second, as supplemental capacity usage, for capacity usage in excess of the total nameplate rating of the DG System.

2) Firm Standby Service

a) No standby capacity usage charges will be billed to the Member for the billing months of April and October.

b) Standby capacity usage charges will be billed to the Member at the wholesale capacity rate(s) published in GRE’s Schedule AR during all other billing months.

c) During months when standby capacity usage charges are applied to any amount of CSD, the reservation fee will be waived for the same amount of CSD.

3) Non-Firm Standby Service

a) Spring & Fall Billing Months

i) If the Member received GRE’s prior approval to use standby service then:

(1) No standby capacity usage charges will be billed to the Member for the billing months of April and October.

(2) Standby capacity usage charges will be billed to the Member at the wholesale capacity rate(s) published in GRE’s Schedule AR for the billing months of March, May, September, and November.

ii) If the Member did not receive GRE’s prior approval to use standby service then such standby capacity usage will be billed to the Member at the wholesale capacity rate(s) published in GRE’s Schedule AR plus a capacity penalty equal to $5.00 per kW each month.

b) Summer & Winter Billing Months

i) If the Member received GRE’s prior approval to use standby service then such standby capacity usage will be billed to the Member at the wholesale capacity rate(s) published in GRE’s Schedule AR.

ii) If the Member did not receive GRE’s prior approval to use standby service then such usage will result in standby capacity usage charges billed to the Member at the wholesale capacity rate(s) published in GRE’s Schedule AR plus a capacity penalty equal to:

(1) $10.00 per kW each month during winter billing months, or

(2) $15.00 per kW each month during summer billing months.

4) Supplemental Service

a) Supplemental capacity usage will be billed to the Member at the wholesale capacity rate(s) published in GRE’s Schedule AR.

1) Energy Usage Billing Units

a) The Member shall be billed monthly for the energy supplied by GRE for the Customer’s total monthly energy requirements net of the DG energy available to the Customer.

i) The DG energy available to the Customer shall be the greater of zero or the difference between the total monthly DG System output minus the energy sold to GRE.

b) The Member shall be billed energy usage charges for the energy supplied by GRE as described above in accordance with the following:

i) Available contracted standby energy (firm or non-firm) shall be calculated first and applied to Customer’s energy requirements supplied by GRE.

ii) Any Customer energy supplied by GRE that exceeds the calculated amount of available contracted standby energy shall be billed as:

(1) Supplemental energy usage if the Customer is eligible for supplemental service, or

(2) Non-firm standby energy usage if the Customer is not eligible for supplemental service.

2) Firm Standby Service

a) Standby energy will be billed to the Member at the wholesale energy rate(s) published in GRE’s Schedule AR.

3) Non-Firm Standby Service

a) If the Member received GRE’s prior approval to use standby energy then the Member will be billed at the wholesale energy rate(s) published in GRE’s Schedule AR.

b) If the Member did not receive GRE’s prior approval to use standby energy then the Member will be billed at the greater of:

i) 110% of the wholesale energy rate(s) published in GRE’s Schedule AR or

ii) The highest cost market energy purchase(s) incurred to provide such energy.

4) Supplemental Service

a) Supplemental energy will be billed to the Member at the wholesale energy rate(s) published in GRE’s Schedule AR.

1) This rider implements the Minnesota Public Utility Commission’s order of September 28, 2004 in Docket E999/CI-01-1023 pursuant to Minnesota Statute 216B.1611 subdivision 3 and is subject to annual review, modification and approval by GRE’s Board of Directors.

2) All capacity and energy delivered to the Member under this rider shall be for the exclusive use of the eligible Customer and may not be resold.

3) The Member must be an all-requirements Member of GRE to be eligible for service.

a) If the Member has made a Fixed Purchase Election in accordance with Section 1.2 of the PPC then, after the Fixed Date, GRE shall have neither responsibility nor obligation to provide standby service to the Member for any Customer with an eligible DG System.

b) Notwithstanding Section 2.4.2 of the PPC, GRE shall neither provide a fixed amount of standby service after the Fixed Date nor make adjustments to the fixed amounts of power and energy described in Section 1.2.3 of the PPC.

i) Any power and energy actually supplied by GRE prior to the Fixed Date pursuant to this rider will be included in the calculation of the fixed amounts of power and energy pursuant to Section 1.2.3 of the PPC and the policies and procedures there under in the same manner as other measured electric demand and energy supplied by GRE prior to the Fixed Date.

c) Nothing in this rider shall impact or modify the policies and procedures set forth in GRE’s Fixed Purchase Election Policies and Procedures.

4) The Member must install, or require Customer to install, interval metering equipment necessary to monitor services provided to ensure adequate measurements are obtained to support necessary application of charges.

5) The Member must supply GRE with sufficient information to calculate billing, including customer nomination of standby service quantity and metering information.

6) The Member must pay for all interconnection costs incurred by GRE made necessary by the installation of the DG System. In addition, the Member will be charged for other GRE system upgrades or investment necessary to provide service to a Customer that is not economically justified by anticipated revenue from applicable transmission tariffs.

7) The Member must coordinate with the Customer to plan and establish a schedule for performance of maintenance on Customer’s facilities.

a) Routine or periodic maintenance should not be scheduled in Jan, Feb, Jun, Jul, Aug and Dec. Any maintenance required in these summer or winter months should be scheduled for 07:00-12:00 on weekdays or anytime on weekends.

b) Member must make a good faith effort, but is not obligated, to notify GRE of any maintenance that will impact that operation of a DG System with a nameplate capacity rating greater than 2,000 kW for more than four (4) hours.

8) The Member must provide GRE with a copy of the executed ESA and the Customer’s Application for Interconnection within thirty (30) days of execution.

9) If the Member does not execute an ESA with the Customer, or no specific amount of standby service is specified in the ESA, then non-firm standby service reservation fees and usage charges shall be calculated monthly for the Customer’s entire generator nameplate rating, retroactive to the DG System installation date, and billed to any Member with a Customer subject to this rider until such point in time that the Customer executes an ESA with the Member that identifies a specific amount of firm or non-firm standby service.