DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

PUBLIC SERVICE COMMISSION

INTERCONNECTION AND DISTRIBUTED GENERATION STANDARDS

(By authority conferred on the public service commission by section 7 of 1909 PA

106, MCL 460.557, section 5 of 1919 PA 419, MCL 460.55, sections 4, 6, and 10e of

1939 PA 3, MCL 460.4, 460.6, and 460.10e, and section 173 of the clean and renewable

energy and energy waste reduction act, 2008 PA 295, MCL 460.1173)

PART 1. GENERAL PROVISIONS

R 460.901a Definitions; A-I.

Rule 1a. As used in these rules:

(a) “AC” means alternating current at 60 Hertz.

(b) “Affected system” means another electric utility’s distribution system, a

municipal electric utility’s distribution system, the transmission system, or transmission

system- connected generation which may be affected by the proposed interconnection.

(c) “Affiliate” means that term as defined in R 460.10102(1)(a).

(d) “Alternative electric supplier” means that term as defined in section 10g of 1939

PA 3, MCL 460.10g.

(e) “Alternative electric supplier distributed generation program plan” means a

document supplied by an alternative electric supplier that provides detailed information

to an applicant about the alternative electric supplier's distributed generation program.

(f) “Alternative electric supplier legacy net metering program plan” means a

document supplied by an alternative electric supplier that provides detailed information

to an applicant about the alternative electric supplier's legacy net metering program.

(g) “Applicant” means the person or entity submitting an interconnection

application, a legacy net metering program application, or a distributed generation

program application. An applicant is not required to be an existing customer of an

electric utility. An electric utility is considered an applicant when it submits an

interconnection application for a DER that is not a temporary DER or a substation backup

energy storage device.

(h) “Application” means an interconnection application, a legacy net metering

program application, or a distributed generation program application.

(i) “Area network” means a location on the distribution system served by multiple

transformers interconnected in an electrical network circuit.

(j) “Business day” means Monday through Friday, starting at 12:00:00 a.m. and

ending at 11:59:59 p.m., excluding electric utility holidays and any day where electric

service is interrupted for 10% or more of an electric utility’s customers.

(k) “Calendar day” means every day, including Saturdays, Sundays, and holidays.

Page 1

Courtesy of Michigan Administrative Rules

(l) “Certified” means an inverter-based system has met acceptable safety and

reliability standards by a nationally recognized testing laboratory in conformance with

IEEE 1547.1-2020 and the UL 1741 September 28, 2021 edition except that prior to

commercial availability, inverter-based systems which conform to the UL 1741SA

September 7, 2016 edition are acceptable.

(m) “Commission” means the Michigan public service commission.

(n) “Commissioning test” means the test and verification procedure that is

performed on a device or combination of devices forming a system to confirm that the

device or system, as designed, delivered, and installed, meets the interconnection and

interoperability requirements of IEEE 1547-2018 and IEEE 1547.1-2020. A

commissioning test must include visual inspections and may include, as applicable, an

operability and functional performance test and functional tests to verify interoperability

of a combination of devices forming a system.

(o) “Conforming” means the information in an interconnection application is

consistent with the general principles of distribution system operation and DER

characteristics.

(p) “Customer” means a person or entity who receives electric service from an

electric utility’s distribution system or a person who participates in a legacy net metering

or distributed generation program through an alternative electric supplier or electric

utility.

(q) “DC” means “direct current.”

(r) “Distributed energy resource” or “DER” means a source of electric power and its

associated facilities that is connected to a distribution system. DER includes both

generators and energy storage devices capable of exporting active power to a distribution

system.

(s) “Distributed generation program” means the distributed generation program

approved by the commission and included in an electric utility’s tariff pursuant to section

6a(14) of 1939 PA 3, MCL 460.6a, or established in an alternative electric supplier

distributed generation program plan.

(t) “Distribution system” means the structures, equipment, and facilities owned and

operated by an electric utility to deliver electricity to end users, not including

transmission and generation facilities that are subject to the jurisdiction of the federal

energy regulatory commission.

(u) “Distribution upgrades” mean the additions, modifications, or improvements

to the distribution system necessary to accommodate a DER’s connection to the

distribution system.

(v) “Electric utility” means any person or entity whose rates are regulated by the

commission for selling electricity to retail customers in this state. For purposes of R

460.901a through R 460.992 only, “electric utility” includes cooperative electric utilities

that are member regulated as provided in section 4 of the electric cooperative member-

regulation act, 2008 PA 167, MCL 460.34.

(w) “Electrically coincident” means that 2 or more proposed DERs associated with

pending interconnection applications have operating characteristics and nameplate

capacities which require that distribution upgrades will be necessary if the DERs are

installed in electrical proximity with each other on a distribution system.

Page 2

Courtesy of Michigan Administrative Rules

(x) “Electrically remote” means a proposed DER is not electrically coincident with

a DER that is associated with a pending interconnection application.

(y) “Eligible electric generator” means a methane digester or renewable energy

system with a generation capacity limited to a customer’s electric need and that does not

exceed either of the following:

(i) 150 kWac of aggregate generation at a single site for a renewable energy

system.

(ii) 550 kWac of aggregate generation at a single site for a methane digester.

(z) “Energy storage device” means a device that captures energy produced at one

time, stores that energy for a period of time, and delivers that energy as electricity for use

at a future time. For purposes of these rules, an energy storage device may be considered

a DER.

(aa) “Export capacity” means the amount of power that can be transferred from the

DER to the distribution system. Export capacity is either the nameplate rating or a lower

amount if limited using an acceptable means that is defined in an electric utility’s

interconnection procedures.

(bb) “Facilities study” means a study to specify and estimate the cost of the

equipment, engineering, procurement, and construction work if distribution upgrades or

interconnection facilities are required.

(cc) “Fast track” means the procedure used for evaluating a proposed

interconnection that makes use of screening processes, as described in R 460.944 to R

460.950.

(dd) “Force majeure event” means an act of God; labor disturbance; act of the

public enemy; war; insurrection; riot; fire, storm, or flood; explosion, breakage, or

accident to machinery or equipment; an emergency order, regulation or restriction

imposed by governmental, military, or lawfully established civilian authorities; or another

cause beyond a party’s control. A force majeure event does not include an act of

negligence or intentional wrongdoing.

(ee) “Full retail rate” means the power supply and distribution components of the

cost of electric service. Full retail rate does not include a system access charge, service

charge, or other charge that is assessed on a per meter, premise, or customer basis.

(ff) “Good standing” means an applicant has paid in full all undisputed bills

rendered by the interconnecting electric utility and any alternative electric supplier in a

timely manner and none of these bills are in arrears.

(gg) “Governmental authority” means any federal, state, local, or other

governmental regulatory or administrative agency, court, commission, department, board,

or other governmental subdivision, legislature, rulemaking board, tribunal, or other

governmental authority having jurisdiction over the parties, their respective facilities, or

the respective services they provide, and exercising or entitled to exercise any

administrative, executive, police, or taxing authority or power; provided, however, that

this term does not include the applicant, interconnection customer, electric utility, or any

affiliate thereof.

(hh) “GPS” means global positioning system.

(ii) “Grid network” means a configuration of a distribution system or an area of a

distribution system in which each customer is supplied electric energy at the secondary

voltage by more than 1 transformer.

Page 3

Courtesy of Michigan Administrative Rules

(jj) “High voltage distribution” means those parts of a distribution system that

operate within a voltage range specified in the electric utility’s interconnection

procedures. For purposes of these rules, the term “subtransmission” means the same as

high voltage distribution.

(kk) “IEEE” means institute of electrical and electronics engineers.

(ll) “IEEE 1547-2018” means “IEEE Standard for Interconnection and

Interoperability of Distributed Energy Resources with Associated Electric Power Systems

Interfaces,” as adopted by reference in R 460.902.

(mm) “IEEE 1547.1-2020” means IEEE “Standard Conformance Test Procedures

for Equipment Interconnecting Distributed Energy Resources with Electric Power

Systems and Associated Interfaces,” as adopted by reference in R 460.902.

(nn) “Inadvertent export” means unscheduled export of active power from a DER,

exceeding a specified magnitude and for a limited duration, due to fluctuations in load-

following behavior.

(oo) “Independent system operator” means an independent, federally-regulated

entity established to coordinate regional transmission in a non-discriminatory manner and

to ensure the safety and reliability of the transmission and distribution systems.

(pp) “Initial review” means the fast track initial review screens described in R

460.946.

(qq) “Interconnection” means the process undertaken by an electric utility to

construct the electrical facilities necessary to connect a DER with a distribution system so

that parallel operation can occur.

(rr) “Interconnection agreement” means an agreement containing the terms and

conditions governing the electrical interconnection between the electric utility and the

applicant or interconnection customer. Where construction of interconnection facilities or

distribution upgrades are necessary, the agreement, or amendments, shall specify

estimated timelines, cost estimates, and payment milestones for construction of facilities

and distribution upgrades to interconnect a DER into the distribution system, and shall

identify design, controls, settings, procurement, installation, and construction

requirements associated with installation of the DER. Standard level 1, 2, and 3

interconnection agreements and level 4 and 5 interconnection agreements are types of

interconnection agreements.

(ss) “Interconnection coordinator” means a person or persons designated by the

electric utility who shall serve as the point of contact from which general information on

the application process and on the affected system or systems can be obtained through

informal request by the applicant or interconnection customer.

(tt) “Interconnection customer” means the person or entity, which may include the

electric utility, responsible for ensuring a DER is operated and maintained in compliance

with all local, state, and federal laws, as well as with all rules, standards, and

interconnection procedures. An electric utility is not considered an interconnection

customer for temporary DER or a substation backup energy storage device project.

(uu) “Interconnection facilities” mean any equipment required for the sole purpose

of connecting a DER with a distribution system.

(vv) “Interconnection procedures” mean the requirements that govern project

interconnection adopted by each electric utility and approved by the commission.

Page 4

Courtesy of Michigan Administrative Rules

(ww) “Interconnection study agreement” means an agreement between an applicant

and an electric utility for the electric utility to study a proposed DER.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.901b Definitions; J-Z.

Rule 1b. As used in these rules:

(a) “kW” means kilowatt.

(b) “kWac” means the electric power, in kilowatts, associated with the alternating

current output of a DER at unity power factor.

(c) “kWh” means kilowatt-hours.

(d) “Legacy net metering program” means the true net metering or modified net

metering programs in place prior to commission approval of a distributed generation

program tariff pursuant to section 6a(14) of 1939 PA 3, MCL 460.6a, and prior to the

establishment of an alternative electric supplier distributed generation plan.

(e) “Level 1” means a certified project of 20 kWac or less.

(f) “Level 2” means a certified project of greater than 20 kWac and not more than

150 kWac.

(g) “Level 3” means a project of 150 kWac or less that is not certified, or a project

greater than 150 kWac and not more than 550 kWac.

(h) “Level 4” means a project of greater than 550 kWac and not more than 1 MWac.

(i) “Level 5” means a project of greater than 1 MWac.

(j) “Level 4 and 5 interconnection agreement” means an interconnection agreement

applicable to level 4 and 5 interconnection applications.

(k) “Limited export” means the exporting capability of a DER whose export

capacity is limited by means specified in an electric utility’s interconnection procedures.

(l) “Low voltage distribution” means those parts of a distribution system that operate

with a voltage range specified in the electric utility’s interconnection procedures.

(m) “Mainline” means a conductor that serves as the three-phase backbone of a low

voltage distribution circuit.

(n) “Material modification” means a modification to the DER nameplate rating,

DER export capacity, electrical size of components, bill of materials, machine data,

equipment configuration, or the interconnection site of the DER at any time after

receiving notification by the electric utility of a complete interconnection application.

Replacing a component with another component that has near-identical characteristics

does not constitute a material modification when agreed to by the electric utility. For the

proposed modification to be considered material, it shall have been reviewed and been

determined to have or anticipated to have a material impact on 1 or more of the

following:

(i) The cost, timing, or design of any equipment located between the point of

common coupling and the DER.

(ii) The cost, timing, or design of any other application.

(iii) The electric utility’s distribution system or an affected system.

(iv) The safety or reliability of the distribution system.

Page 5

Courtesy of Michigan Administrative Rules

(o) “Methane digester” means a renewable energy system that uses animal or

agricultural waste for the production of fuel gas that can be burned for the generation of

electricity or steam.

(p) “Modified net metering” means an electric utility billing method that applies the

power supply component of the full retail rate to the net of the bidirectional flow of kWh

across the customer interconnection with the electric utility’s distribution system during a

billing period or time-of-use pricing period.

(q) “MW” means megawatt.

(r) “MWac” means the electric power, in megawatts, associated with the alternating

current output of a DER at unity power factor.

(s) “Nameplate rating” means the sum total of maximum rated power output of all a

DER’s constituent generating units and energy storage units as identified on the

manufacturer nameplate, regardless of whether it is limited by any approved means.

Nameplate rating includes all of the following:

(i) Nominal voltage (V).

(ii) Current (A).

(iii) Maximum active power (kWac).

(iv) Apparent power (kVA).

(v) Reactive power (kvar).

(t) “Nationally recognized testing laboratory” means any testing laboratory

recognized by the accreditation program of the United States Department of Labor

Occupational Safety and Health Administration.

(u) “Network protector” means those devices associated with a secondary network

used to automatically disconnect a transformer when reverse power flow occurs.

(v) “Non-export track” means the procedure for evaluating a proposed

interconnection that will not inject electric energy into an electric utility’s distribution

system, as described in R 460.942.

(w) “Parallel operation” means the operation, for longer than 100 milliseconds, of a

DER while connected to the energized distribution system.

(x) “Party” or “parties” means an electric utility, applicant, or interconnection

customer.

(y) “Point of common coupling” means the point where the DER connects with the

electric utility’s distribution system.

(z) “Power control system” means systems or devices that electronically limit or

control steady state currents to a programmable limit.

(aa) “Radial supply” means a configuration of a distribution system or an area of a

distribution system in which each customer can only be supplied electric energy by 1

substation transformer and distribution line at a time.

(bb) “Readily available” means no creation of data is required, and little or no

computation or analysis of data is required.

(cc) “Regional transmission operator” means a voluntary organization of electric

transmission owners, transmission users, and other entities approved by the federal

energy regulatory commission to efficiently coordinate electric transmission planning,

expansion, operation, and use on a regional and interregional basis.

Page 6

Courtesy of Michigan Administrative Rules

(dd) “Renewable energy credit” means a credit granted pursuant to the commission's

renewable energy credit certification and tracking program in section 41 of the clean and

renewable energy and energy waste reduction act, 2008 PA 295, MCL 460.1041.

(ee) “Renewable energy resource” means that term as defined in section 11(i) of the

clean and renewable energy and energy waste reduction act, 2008 PA 295, MCL

460.1011.

(ff) “Renewable energy system” means that term as defined in section 11(k) of the

clean and renewable energy and energy waste reduction act, 2008 PA 295, MCL

460.1011.

(gg) “Secondary network” means those areas of a distribution system that operate at

a secondary voltage level and are networked.

(hh) “Site” means a contiguous site, regardless of the number of meters at that site.

A site that would be contiguous but for the presence of a street, road, or highway is

considered to be contiguous for the purposes of these rules.

(ii) “Spot network” means a location on the distribution system that uses 2 or more

inter-tied transformers to supply an electrical network circuit, such as a network circuit in

a large building.

(jj) “Standard level 1, 2, and 3 interconnection agreement” means the statewide

interconnection agreement approved by the commission and applicable to levels 1, 2 and

3 interconnection applications. A cover sheet including modifications to address any

special operating conditions may be added.

(kk) “Study track” means the procedure used for evaluating a proposed

interconnection as described in R 460.952 to R 460.962.

(ll) “Supplemental review” means the fast track supplemental review screens

described in R 460.950.

(mm) “System impact study” means a study to identify and describe the impacts to

the electric utility’s distribution system that would occur if the proposed DER were

interconnected exactly as proposed and without any modifications to the electric utility’s

distribution system. A system impact study also identifies affected systems.

(nn) “Temporary DER” means a DER that is installed on the distribution system by

the electric utility with the intention of not operating at the site permanently.

(oo) “True net metering” means an electric utility billing method that applies the full

retail rate to the net of the bidirectional flow of kWh across the customer interconnection

with the electric utility’s distribution system, during a billing period or time-of-use

pricing period.

(pp) “UL” means underwriters laboratory.

(qq) “UL 1741” means the September 28, 2021 edition of “Standard for Inverters,

Converters, Controllers and Interconnection System Equipment for Use With Distributed

Energy Resources,” as adopted by reference in R 460.902.

(rr) "UL 1741 CRD for PCS" means the Certification Requirement Decision for

Power Control Systems for the standard titled Inverters, Converters, Controllers and

Interconnection System Equipment for Use With Distributed Energy Resources, March 8,

2019, as adopted by reference in R 460.902(b).

History: 2023 MR 8, Eff. April 25, 2023.

Page 7

Courtesy of Michigan Administrative Rules

R 460.902 Adoption of standards by reference.

Rule 2. (1) The standards specified in these rules are adopted by reference as

follows:

(a) UL 1741 Standard for Inverters, Converters, Controllers and Interconnection

System Equipment for Use With Distributed Energy Resources, September 28, 2021

edition, is available from Underwriters Laboratories

at the internet website:

https://standardscatalog.ul.com/ProductDetail.aspx?productId=UL1741 at a cost of

$798.00 at the time of adoption of these rules.

(b) UL 1741 Standard for Inverters, Converters, Controllers and Interconnection

System Equipment for Use With Distributed Energy Resources, January 28, 2010 edition,

is available from Underwriters Laboratories

at the internet website:

https://standardscatalog.ul.com/ProductDetail.aspx?productId=UL1741 at a cost of

$716.00 at the time of adoption of these rules.

(c) ANSI C84.1 – 2016 Electric Power Systems and Equipment – Voltage Ratings

(60 Hz), June 9, 2016, is available from the American National Standards Institute, Inc. at

the internet website https://webstore.ansi.org/ at a cost of $111.24 at the time of adoption

of these rules.

(d) The following standards adopted by reference are available from IEEE at the

internet website https://standards.ieee.org at the time of adoption of these rules.

(i) The IEEE 1453-2015, IEEE Recommended Practice for the Analysis of

Fluctuating Installations on Power Systems, October 30, 2015, is available at a cost of

$99.00 - $147.00 at the time of adoption of these rules.

(ii) The IEEE 1547 - 2018, IEEE Standard for Interconnection and Interoperability

of Distributed Energy Resources with Associated Electric Power System Interfaces, April

6, 2018, is available at a cost of $149.00 - $224.00 at the time of adoption of these rules.

(iii) The IEEE 1547.1-2020 IEEE Standard Conformance Test Procedures for

Equipment Interconnecting Distributed Energy Resources with Electric Power Systems

and Associated Interfaces, May 21, 2020, is available at a cost of $197.00 - $296.00 at

the time of adoption of these rules.

(iv) The IEEE 519-2014 IEEE Recommended Practice and Requirements for

Harmonic Control in Electric Power Systems, June 11, 2014, is available at a cost of

$52.00 - $66.00 at the time of adoption of these rules.

(2) The commission has copies of the standards specified in subrule (1) of this rule

available for review at its offices located at 7109 W. Saginaw Hwy., Lansing, Michigan

48917-1120. The mailing address is Michigan Public Service Commission, P.O. Box

30221, Lansing, Michigan 48909-0221.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.904 Informal mediation.

Rule 4. (1) In the event that parties are unable to resolve a dispute arising out of

the interconnection process, as defined by R 460.901a through R 460.992, privately, the

parties may, by mutual agreement, make a written request for informal mediation to the

commission staff. The informal mediation must commence within 10 business days after

submission of the written request or a mutually agreeable timeframe and be conducted by

an interconnection ombudsperson who shall be a member of the commission staff and

Page 8

Courtesy of Michigan Administrative Rules

designated by the commission. Both parties may choose to have attorneys or appropriate

representation present.

(2) During informal mediation, the parties shall discuss relevant facts pertaining to

the dispute and the relief being sought. The interconnection ombudsperson and relevant

commission staff shall be present to facilitate the discussion and provide guidance among

the parties. Parties shall operate in good faith and use best efforts to resolve the dispute.

(3) If a resolution is reached by the end of the meeting or meetings, the parties may

draft a resolution of the dispute.

(4) If the parties reach impasse and are unable to resolve the dispute, the parties shall

proceed to the formal mediation process described in R 460.906.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.906 Formal mediation.

Rule 6. (1) If the parties have been unable to resolve a dispute,

the complaining party may file a written notice of dispute with the commission. The

notice of dispute must state the specific grounds for the dispute, sufficient facts to support

the allegations, the relief requested, and must contain all information, testimony, exhibits,

or other documents and information within the party’s possession on which the party

intends to rely to support the party’s position. After the filing of the written notice of

dispute, the following must occur:

(a) The complaining party shall give notice that it is invoking the procedures in this

rule. The complaining party shall send the notice to the non-complaining party’s email

address and file the notice with the commission.

(b) The non-complaining party shall acknowledge the notice of dispute within 10

business days of its receipt and identify a representative with the authority to make

decisions on its behalf with respect to the dispute.

(c) An administrative law judge shall serve as the mediator in these proceedings.

The administrative law judge may request and receive assistance from commission staff.

(d) Within 60 business days from the date the non-complaining party acknowledges

the dispute, the mediator shall issue a recommended settlement.

(e) Within 5 business days after the date the recommended settlement is issued,

each party shall file with the commission a written acceptance or rejection of the

recommended settlement. If the parties accept the recommendation, then the

recommendation shall become an order. If a party rejects or fails to respond within 5

business days to the recommended settlement, then the dispute may proceed to a

contested case hearing before the commission as provided in R 792.10415.

(2) Nothing in these rules precludes a disputing party from filing a formal complaint

with the commission, either instead of or after pursuing informal mediation or formal

mediation pursuant to these rules.

(3) The initiation of any form of dispute resolution by a party tolls any applicable

deadlines under these rules until the dispute is resolved.

History: 2023 MR 8, Eff. April 25, 2023.

Page 9

Courtesy of Michigan Administrative Rules

R 460.908 Timelines for electric utilities serving fewer than 1,000,000 in-state

customers.

Rule 8. An electric utility serving fewer than 1,000,000 in-state customers shall

have an additional 10 business days to comply with the timelines in R 460.911 to R

460.1026. This rule does not apply to applicants or interconnection customers.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.910 Waivers.

Rule 10. An electric utility, customer, alternative electric supplier, applicant, or

interconnection customer may apply to the commission for a waiver from 1 or more

provisions of these rules and may request expeditious processing. The commission may

grant a waiver upon a showing of good cause and a finding that the waiver is in the public

interest.

History: 2023 MR 8, Eff. April 25, 2023.

PART 2. INTERCONNECTION STANDARDS

R 460.911 Applicability.

Rule 11. These rules apply to all interconnection applications filed on or after the

effective date of these rules. The electric utility shall complete work on any

interconnection study agreement executed prior to the effective date of these rules,

pursuant to the terms and conditions of that interconnection study agreement. Any new

studies or other additional work must be completed pursuant to these rules. An electric

utility or an alternative electric supplier shall not restrict access to interconnection for

level 1, level 2, and level 3 DERs that are not participants in the legacy net metering or

distributed generation programs.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.920 Electric utility interconnection procedures.

Rule 20. (1) An electric utility shall file applications for approval of interconnection

procedures and forms within 120 calendar days of the effective date of these rules.

(2) The commission shall issue its order approving, rejecting, or modifying an

electric utility’s proposed interconnection procedures and forms within 360 calendar days

of the electric utility filing an application for approval of interconnection procedures and

forms. If the commission finds the procedures and forms proposed by the electric utility

to be inadequate or unacceptable, the commission may either adopt procedures and forms

proposed by another person in the proceeding or modify and accept the procedures and

forms proposed by the electric utility.

(3) Until the commission accepts, rejects, or modifies an electric utility’s

interconnection procedures and forms, the electric utility may use the proposed

Page 10

Courtesy of Michigan Administrative Rules

interconnection procedures and forms when processing interconnection applications with

the exception of fixed fees and fee caps. An electric utility shall only charge fees that

comply with the requirements of R 460.926 until the commission accepts, rejects, or

modifies the proposed interconnection procedures and forms, unless the commission

approves different fees pursuant to R 460.926(5).

(4) Two or more electric utilities may file a joint application proposing

interconnection procedures for use by the joint applicants. The proposed interconnection

procedures must ensure compliance with these rules.

(5) The proposed interconnection procedures must, at a minimum, include all of the

following:

(a)

(b)

All necessary applications, forms, and relevant template agreements.

A schedule of all applicable fixed fees and fee caps.

(c) Voltage ranges for high voltage distribution and low voltage distribution.

(d) Required initial review screens.

(e) Required supplemental review screens.

(f) The process for conducting system impact studies and facilities studies on DERs

when there is an affected system issue.

(g) Testing and certification requirements of DER telecommunications,

cybersecurity, data exchange, and remote control operation.

(h) Parallel operation requirements.

(i) A method to estimate the expected annual kWh output of the generator or

generators.

(j) If an electric utility uses alternative methods for power limited export DER

pursuant to R 460.980(3), a description of those methods.

(k) A cost allocation methodology for study track DERs.

(l) An evaluation of an interconnection application for a project that includes single

or multiple types of DERs at a site for which the applicant seeks a single point of

common coupling.

(m) Details describing how an energy storage device may be integrated into an

existing legacy net metering program system without impacting the 10-year

grandfathering period or participation in the distributed generation program.

(n) For electric utilities that are member-regulated electric cooperatives, a procedure

for fairly processing applications in instances in which the number of applications exceed

the capacity of the electric cooperative to timely meet the deadlines in these rules.

(o) Examples of modifications that are not material modifications.

(p) The procedure for performing a material modification review to determine if a

modification is material.

(q) Any required terms and conditions that must be specified in the general liability

insurance for level 3, 4, and 5 projects.

(r) A list of the electric utility’s holidays.

(s) If an electric utility uses an alternative process pursuant to R 460.956, a

description of that process.

(t) Fast track eligibility criteria for applications proposing to interconnect DERs

with 4.8 kV distribution systems.

(u)

In the event daytime loading data is not available for the initial screen

provided in R 460.946(5)(b), the date when the data will be collected.

Page 11

Courtesy of Michigan Administrative Rules

(6) An electric utility shall obtain commission approval to revise its interconnection

procedures.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.922 Online applications and electronic submission.

Rule 22. (1) An electric utility shall allow pre-application report requests,

interconnection applications, and interconnection agreements to be submitted

electronically, such as, through the electric utility’s website or via email.

(2) An electric utility shall dedicate a page on its website or direct customers to a

linked website with information on these rules. The relevant information available to an

applicant or interconnection customer via a website must include all of the following:

(a) These rules and interconnection procedures in an electronically searchable

format.

(b) The electric utility’s applications and all associated forms in a format that allows

for electronic entry of data.

(c) Sample documents including, at a minimum, a 1-line diagram with required

labels.

(d) Contact information for the electric utility’s DER interconnection coordinator,

including an email address and a phone number.

(e) Directions for the submission of applications.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.924 Communications.

Rule 24. (1) An electric utility shall designate 1 or more interconnection

coordinators. The telephone number and e-mail address of the interconnection

coordinator or coordinators must be made available on the electric utility’s website. The

interconnection coordinator or coordinators must be available to provide reasonable

assistance to the applicant or interconnection customer but is not responsible to directly

answer or resolve all of the issues that may arise in the interconnection process.

(2) An applicant may designate an application agent. An application agent may

serve as the single point of contact for the applicant and may coordinate with the electric

utility on the applicant’s behalf. Designation of an application agent does not absolve the

applicant from signing interconnection documents or from complying with the

requirements in these rules and the interconnection agreement.

(3) An electric utility must be indemnified by the applicant and its application agent

with respect to assistance provided by an interconnection coordinator or coordinators.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.926 Fees.

Rule 26. (1) After the effective date of these rules, fees for the pre-application

report, the non-export track and the fast track must be established as listed in subrule (2)

Page 12

Courtesy of Michigan Administrative Rules

of this rule. Initial fees for the study track must not exceed initial fee caps as established

in subrule (3) of this rule. Fees must remain in effect until interconnection procedures are

approved by the commission under R 460.920.

(2) The fee amounts for the pre-application report, non-export track, and fast track

for all levels of DERs are as follows:

(a) The pre-application report fee may not exceed $300.

(b) The non-export track fee may not exceed $100 + $1/kWac for certified DERs

and $100 + $2/kWac for non-certified DERs.

(c) The fast track initial review fee is $100 + $1/kWac for certified DERs and $100

+ $2/kWac for non-certified DERs.

(d)

An

y applicable legacy net metering program application fee pursuant

to R 460.1004(7) or distributed generation program application fee pursuant to R

460.1006(6), in combination with any applicable fast track initial review fee, fast track

supplemental review fees and any study track fees, must not exceed a total of $50.

(3) The initial fee caps for a fast track supplemental review and the study track for all

levels of DERs are as follows:

(a) The fee for a fast track supplemental review including all review screens may not

exceed $1,000.

(b) The study track fee for interconnection application review and the scoping

meeting may not exceed $300.

(c) The system impact study fee may not exceed $10,000.

(d) The facilities study fee may not exceed $15,000.

(4) The fees listed in subrule (2) and initial fee caps listed in subrule (3) of this rule,

must be displayed prominently on the electric utility’s interconnection website.

(5) An electric utility that expects to incur costs greater than the fees listed in

subrule (2) or initial fee caps listed in subrule (3) of this rule in the evaluation of an

interconnection application may file a request for a waiver pursuant to R 460.910.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.928 Fee and fee cap modifications.

Rule 28. (1) An electric utility shall include in its proposed interconnection

procedures fixed fees to replace the fees specified in R 460.926(2)(a), (b), and (c), and

add any other fixed fees the electric utility considers necessary.

(2) An electric utility shall include in its proposed interconnection procedures

adjusted fee caps to replace the initial fee caps specified in R 460.926(3)(a), (b), (c), and

(d), and add any other fee caps the electric utility considers necessary. An electric utility

may charge actual costs up to the fee caps.

(3) The fixed fees must be specific to level size and be based on estimates of

reasonable costs to perform the applicable service or study. The fee caps must be specific

to level size and be based on a reasonable range of costs for performing the applicable

study.

(4) The most recently approved fixed fees and fee caps must be listed in the electric

utility’s interconnection procedures and displayed prominently on the electric utility’s

interconnection website.

Page 13

Courtesy of Michigan Administrative Rules

(5) The fixed fees and fee caps that are approved for inclusion in the electric utility’s

interconnection procedures by the commission may be reviewed at any time by the

electric utility and adjusted, if necessary, subject to commission review and approval.

(6) Any modification of fees may not be applicable to fees already paid.

(7) An electric utility that expects to incur costs greater than its prevailing fee caps

in the evaluation of an interconnection application may file a request for a waiver

pursuant to R 460.910.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.930 Pre-application report request form.

Rule 30. (1) An applicant shall submit a completed pre-application report request

form and the required fee for a pre-application report on a proposed level 4 or level 5

DER.

(2) The pre-application report request form must include all of the following

information:

(a) Project contact information, including name, address, phone number, and email

address.

(b) Project location, as accurately as can be identified, which may be given by any

of the following:

(i) Street address with nearby cross streets and town.

(ii) An aerial map with location clearly marked.

(iii) GPS coordinates.

(c) Account number, meter number, structure number, or other equivalent

information identifying the proposed point of common coupling, if available.

(d) Whether the DER is any of the following:

(i) Solar.

(ii) Wind.

(iii) Cogeneration.

(iv) Storage.

(v) Solar with storage.

(vi) Other type of DER.

(e) Capacity of the DER types in alternating current kW, direct current kW, kVA,

and kWh for storage.

(f) Whether the DER configuration is single or 3-phase.

(g) Whether the DER will be a stand-alone generator, meaning no onsite load other

than station service.

(h) Whether the DER will be certified.

(i) Whether new service is requested. If there is existing service, the customer

account number and site minimum and maximum current or proposed electric loads in

kW, if available, must be included, and how the load is expected to change must be

specified.

(j) Whether the location is new construction.

(k) If applicable, whether the coupling between the generation and storage is

alternating current or direct current and whether separate inverters will be used.

Page 14

Courtesy of Michigan Administrative Rules

History: 2023 MR 8, Eff. April 25, 2023.

R 460.932 Pre-application report.

Rule 32. (1) Using the information provided in the pre-application report request

form described in R 460.930, an electric utility shall identify the substation bus, bank, or

circuit most likely to serve the point of common coupling. This identification by the

electric utility does not necessarily indicate that this would be the circuit to which the

project ultimately connects.

(2) An applicant may request additional pre-application reports if information about

multiple points of common coupling is requested. No more than 10 pre-application

report requests may be submitted by an applicant and its affiliates during a 1-week

period. An electric utility may reject additional pre-application report requests.

(3) The pre-application report must include all of the following information:

(a) Total capacity, in MW, of substation bus, bank, or circuit based on normal or

operating ratings likely to serve the proposed point of common coupling.

(b) Existing aggregate generation capacity, in MW, interconnected to a substation

bus, bank, or circuit likely to serve the proposed point of common coupling.

(c) Aggregate capacity, in MW, of generation not yet built but found in previously

accepted interconnection applications, for a substation bus, bank, or circuit likely to serve

the proposed point of common coupling.

(d) Available capacity, in MW, of substation bus, bank, or circuit likely to serve the

proposed point of common coupling.

(e) Substation nominal distribution voltage.

(f) Nominal distribution circuit voltage at the proposed point of common coupling.

(g) Label, name, or identifier of the distribution circuit on which the proposed point

of common coupling is located.

(h) Approximate circuit distance between the proposed point of common coupling

and the substation.

(i) The actual or estimated peak load and minimum load data at any relevant line

section or sections, including daytime minimum load and absolute minimum load, when

available. If not readily available, the report must indicate whether the generator is

expected to exceed minimum load on the circuit.

(j) Whether the point of common coupling is located behind a line voltage regulator

and whether the substation has a load tap changer.

(k) Limiting conductor ratings from the proposed point of common coupling to the

distribution substation.

(l) Number of phases available at the primary voltage level at the proposed point of

common coupling, and, if a single phase, distance from the 3-phase circuit.

(m) Whether the point of common coupling is located on a spot network, area

network, grid network, radial supply, or secondary network.

(n) Based on the proposed point of common coupling, the report must indicate

whether power quality issues may be present on the circuit.

(o) Whether or not the area has been identified as having a prior affected system.

(p) Whether or not the site will require a system impact study for high voltage

distribution based on size, location, and existing system configuration.

Page 15

Courtesy of Michigan Administrative Rules

(4) The pre-application report may include only existing and readily available data.

A request for a pre-application report does not obligate an electric utility to conduct a

study or other analysis of the proposed DER if data is not readily available. The pre-

application report must also indicate any information listed in subrule (3) of this rule that

is not readily available. An electric utility may, at its discretion, return any portion of the

pre-application report fee because some or all information does not exist.

(5) Pre-application report requests must be processed in the order in which an

electric utility received the requests.

(6) An electric utility shall provide the data required in the pre-application report to

the applicant within 20 business days of receipt of the completed request form and

payment of the fee. The pre-application report produced by the electric utility is non-

binding and does not confer any rights on the applicant.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.934 Site control.

Rule 34. (1) Documentation of site control must be submitted with the application

by the applicant.

(2) For level 3, 4, or 5 DERs, site control may be demonstrated by providing

documentation that shows any of the following:

(a) Ownership of, a leasehold interest in, or a right to develop a site for the purpose

of constructing and operating the DER.

(b) An enforceable option to purchase or acquire a leasehold site for this purpose.

(c) A legally binding agreement transferring a present real property right to

specified real property along with the right to construct and operate a DER on the

specified real property for a period of time not less than 5 years.

(3) For level 1 or 2 DERs, proof of site control may be demonstrated by the site

owner’s signature and contact information on the application.

(4) An applicant may redact commercially sensitive information from site control

documents.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.936 Interconnection applications.

Rule 36. (1) An electric utility shall provide an interconnection application for an

applicant to complete, including for those applicants whose DERs will be configured to

be non-exporting.

(2) All documents required for a complete interconnection application must be listed

on the interconnection application. For level 4 and 5 interconnection applications, the list

of required documents must include a completed pre-application report.

(3) For interconnection applications with proposed DERs that fall into level 1, an

applicant shall provide a 1-line diagram and a site diagram.

(4) For interconnection applications with proposed DERs that fall into levels 2 and

3, an applicant shall provide a 1-line diagram that is either sealed by a professional

engineer licensed in this state or signed by an electrical contractor who is licensed in this

Page 16

Courtesy of Michigan Administrative Rules

state with the electrical contractor’s license number noted on the diagram. An applicant

shall also provide a site diagram.

(5) For interconnection applications with proposed DERs that fall into levels 4 and

5, an applicant shall provide a 1-line diagram that is sealed by a professional engineer

who is licensed in this state. An applicant shall also provide a site diagram.

(6) Applications shall be reviewed to assess whether they are complete and

conforming in the order in which they were received. An application is considered

received when an electric utility receives the application, the application’s attachments,

and the application fee. The application must be date-stamped for the first business day

when the electric utility has received the interconnection application, the application

attachments, and payment of the application fee. An electric utility shall notify the

applicant of receipt of the application by the end of the third business day following the

date of the date stamp.

(7) The electric utility shall notify the applicant that the interconnection application

is either complete and conforming, or incomplete, or non-conforming, within 10 business

days of the date stamp.

(a) If an interconnection application is determined to be complete and conforming

by the electric utility, the applicant must be notified that the interconnection application is

accepted. The electric utility shall also indicate whether the interconnection application

will be processed using the non-export track, fast track, or study track.

(b) If the application is incomplete or non-conforming, the electric utility shall

provide to the applicant a written list of all deficiencies with the notification. The

applicant shall have 60 business days from the date of electric utility notification to

submit the necessary information and may provide up to 2 submissions during this time

period. After each submission of information, the electric utility shall have 10 business

days to notify the applicant that the interconnection application is either accepted or

rejected due to continuing deficiencies. If the applicant does not meet the timelines

required by this rule, the utility may withdraw the application.

(8) An electric utility shall comply with part 2 of these rules, R 460.911 to R

460.992, and its interconnection procedures when interconnecting DERs that it owns and

operates onto its distribution system, with the exception of temporary DERs and

substation backup batteries.

(9) An electric utility shall use the same process when processing and studying

interconnection applications from all applicants, whether the DER is owned or operated

by the electric utility, its subsidiaries or affiliates, or others, with the exception of

temporary DERs and substation backup batteries.

(10) An electric utility shall review and update interconnection applications

periodically to reflect new information required to properly review DERs, subject to

commission review and approval.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.938 Public interconnection list.

Rule 38. (1)

An electric utility shall maintain

a

publicly available

interconnection list, which is available in a sortable spreadsheet format. The sortable

spreadsheet must be provided to the public upon request. An electric utility that has

Page 17

Courtesy of Michigan Administrative Rules

received not less than 100 complete interconnection applications in a year shall publish

this list on the electric utility’s website. The public interconnection list must be updated

monthly. If no changes to the spreadsheet have occurred in that month, a note to that

effect must be clearly indicated on the spreadsheet. The date of the most recent update

must be clearly indicated.

(2) The public interconnection list must include all of the following:

application identifier.

(a) An

(b) The date that the electric utility received the application. (c) The date that the

electric utility considered the application to be complete and conforming.

(d) Whether the application is on the non-export track, fast track, or study track.

(e) The proposed DER nameplate rating. (f) The proposed DER interconnection

size level.

(g) The DER technology type.

(h) The county and township in which the proposed point of common coupling will

be located.

(i) The current status of the application’s progress in the interconnection process.

(j) The labels, names, or identifiers of the distribution circuit and substation.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.942 Non-export track review.

Rule 42. (1) Interconnection applications for DERs that will not inject electric

energy into an electric utility’s distribution system are eligible for evaluation under the

non-export track. Non-export eligibility requires an existing electrical service at the

applicant’s premise.

(2) Subject to review and approval by the commission, an electric utility may limit

the eligibility of the non-export track in its interconnection procedures based on the

characteristics of its distribution system.

(3) Before submitting an interconnection application, a non-export track applicant

may contact the electric utility for reasonable assistance in determining whether a non-

export track review will be sufficient or the study track is necessary. The electric utility

shall provide the applicant assistance based on available information. If the applicant

chooses to proceed, an interconnection application shall be submitted pursuant to R

460.936.

(4) Within 20 business days after being notified that the application was accepted,

the electric utility shall perform an initial review by using some or all of the initial review

screens specified in the electric utility’s interconnection procedures pursuant to R

460.946 and notify the applicant of the results. If an electric utility chooses to perform a

review using a subset of the initial review screens, the exclusion of 1 or more screens

may not be the only basis for the electric utility to require further study.

(5) If the proposed interconnection passes the initial review screens, or if the

proposed interconnection fails the screens but the electric utility determines that the DER

may be interconnected consistent with safety, reliability, and power quality standards, the

electric utility shall notify the applicant as follows:

(a) If the notification indicates that no interconnection facilities, distribution

upgrades, further study, or application modifications are required, the electric utility shall

Page 18

Courtesy of Michigan Administrative Rules

provide specifications for any equipment the applicant is required to install within 20

business days after the applicant being notified. Within 10 business days after receiving

the equipment specifications, the applicant shall notify the electric utility whether the

applicant will proceed under R 460.964 to an interconnection agreement or will withdraw

the application. The applicant’s failure to notify the electric utility within the required

time period shall result in the interconnection application being withdrawn by the electric

utility.

(b) If a facilities study is required, the interconnection application must proceed

under R 460.962.

(6) If the proposed interconnection fails any of the initial review screens, and the

electric utility does not or cannot determine that the DER may be interconnected

consistent with safety, reliability, and power quality standards, the electric utility shall

notify the applicant, provide the applicant with the results of the application of the initial

review screens, and offer all of the following options:

(a) Attend a customer options meeting, as described in R 460.948.

(b) Proceed to supplemental review under R 460.950.

(c) Submit within 60 business days after the date of the electric utility notification,

with up to 2 submissions during this time period, a complete and conforming revised

interconnection application that includes application modifications offered or required by

the electric utility. If the applicant does not make the submittal within the required 60

days, then the electric utility may consider the application withdrawn. Submission of

interconnection applications shall be governed by the following requirements:

(i)The application modifications must mitigate or eliminate the factors that caused

the interconnection application to fail 1 or more of the initial review screens.

(ii) After each submission of information, the electric utility has 10 business days

to notify the applicant that the interconnection application is either accepted or rejected

due to continuing deficiencies.

(iii) After the electric utility determines the application is accepted, the revised

interconnection application must proceed under subrule (4) of this rule.

(d) Withdraw the interconnection application.

(7) If the applicant does not select a course of action under subrule (6) of this rule

within 10 business days after notice from the electric utility, the electric utility shall

withdraw the interconnection application.

(8) When an applicant changes from a non-exporting system to an exporting system,

the applicant shall submit a new interconnection application.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.944 Fast track applicability.

Rule 44. (1) Level 1, level 2, level 3, level 4 applications, and level 5 applications

as large as 5 MWac in which the DER is not proposing to interconnect with the electric

utility’s high voltage distribution system are eligible for the fast track. Level 5

applications proposing to interconnect to a utility’s distribution system at 4.8 kV or less

are not eligible for the fast track. Projects using an acceptable method for limited export

are eligible for fast track.

Page 19

Courtesy of Michigan Administrative Rules

(2) An applicant that is eligible for the fast track may forgo the fast track and

proceed directly to the study track.

(3) An applicant with an application that is outside the limitations specified in

subrule (1) of this rule may petition the electric utility to have its application evaluated

under fast track. The electric utility may approve or reject this request at its discretion.

(4) In determining fast track eligibility, an electric utility may aggregate all

proposed new generation on a site regardless of the existence of a shared point of

common coupling or multiple points of common coupling.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.946 Fast track; initial review.

Rule 46. (1) An electric utility shall list in its interconnection procedures the initial

review screens specified in subrule (5) of this rule. An electric utility may add additional

details to each of these screens in the interconnection procedures.

(2) An electric utility may include additional initial review screens in its

interconnection procedures. In its application requesting approval of interconnection

procedures, an electric utility shall provide a detailed technical rationale for including

each additional screen. If an additional screen conflicts with or undermines any of the

initial review screens specified in subrule (5) of this rule, the rationale must include an

explanation of how it does so.

(3) The electric utility may waive application of 1, some, or all of the initial review

screens.

(4) Within 10 business days after an electric utility receives a complete and

conforming level 1 or level 2 application and associated payment, or within 20 business

days after an electric utility receives a complete and conforming level 3, level 4, or level

5 application and associated payment, the electric utility shall perform an initial review

and notify the applicant of the results. The initial review must consist of applying the

initial review screens selected by the electric utility pursuant to subrule (3) of this rule to

the proposed DER. The electric utility shall not require a supplemental review or a

system impact study if the DER passes the applied initial review screens.

(5) The initial review screens are all of the following:

(a) The entire proposed DER, including all aggregated site generation and point or

points of interconnection, must be located within the electric utility’s service territory.

(b) For interconnection of a proposed DER to a radial distribution circuit, the

aggregated generation, including the proposed DER, on the circuit may not exceed 15%

of the line section annual peak load as most recently measured or calculated if measured

data is not available. A line section is that portion of an electric utility’s distribution

system connected to a customer bounded by automatic sectionalizing devices or the end

of the distribution line. The electric utility shall consider 100% of applicable loading, if

available, instead of 15% of line section peak load for level 1 and level 2 DER. In the

event daytime loading data is not available, the data must be collected by a date specified

in interconnection procedures approved by the commission, and is not considered as part

of the aggregate generation, for purposes of this screen, DER capacity known to be

already reflected in the minimum load data. This screen does not apply to level 1 and

level 2 non-export DER applications.

Page 20

Courtesy of Michigan Administrative Rules

(c) For interconnection of a proposed DER to the load side of network protectors,

the proposed DER must utilize an inverter-based equipment package and, together with

the aggregated other inverter-based DERs, may not exceed the smaller of 5% of a

network’s maximum load or 50 kWac.

(d) The proposed DER, in aggregation with other DERs on the distribution circuit,

may not contribute more than 10% to the distribution circuit’s maximum fault current at

the point on the primary voltage nearest the proposed point of common coupling. This

screen does not apply to level 1 applications.

(e) The proposed DER, in aggregate with other DERs on the distribution circuit,

may not cause any distribution protective devices and equipment or interconnection

customer equipment on the system to exceed 87.5% of the short circuit interrupting

capability. An interconnection may not be proposed for a circuit that already exceeds

87.5% of the short circuit interrupting capability. Distribution protective devices and

equipment include, but are not limited to, substation breakers, fuse cutouts, and line

reclosers. This screen does not apply to level 1 applications.

(f) The initial review screen determines the type of interconnection to a primary

distribution line for the proposed DER, according to the requirements specified in the

table in this subdivision. This screen includes a review of the type of electrical service

provided to the applicant, including line configuration and the transformer connection to

limit the potential for creating over-voltages on the electric utility’s distribution system

due to a loss of ground during the operating time of any anti-islanding function.

Primary

Line Type

Distribution

Type of Interconnection to

Primary Distribution Line

3-phase or single phase,

phase-to-phase

Result

3-phase, 3 wire

3-phase, 4 wire

Pass screen

Effectively-grounded

3-

phase or single-phase, line-to-

neutral

(g) If the proposed DER is to be interconnected on single-phase shared secondary,

the aggregate generation capacity on the shared secondary, including the proposed DER

export capacity, may not exceed 20 kWac or 65% of the transformer nameplate rating.

(h) If the proposed DER is single-phase and is to be interconnected on a center tap

neutral of a 240 volt service, its addition may not create an imbalance between the 2 sides

of the 240 volt service of more than 20% of the nameplate rating of the service

transformer.

(i) If the proposed DER is single-phase and is to be interconnected to a 3-phase

service, its nameplate rating may not exceed 10% of the service transformer nameplate

rating.

(j) If the proposed DER’s point of common coupling is behind a line voltage

regulator, the DER’s nameplate rating must be less than 250 kWac. This screen does not

include substation voltage regulators.

(6) If the proposed interconnection passes the initial review screens, or if the

proposed interconnection fails the screens but the electric utility determines that the DER

may be interconnected consistent with safety, reliability, and power quality standards, the

Page 21

Courtesy of Michigan Administrative Rules

electric utility shall notify the applicant. If a facilities study is not required, the

interconnection application must proceed under R 460.964 to an interconnection

agreement. If a facilities study is required, the interconnection application must proceed

under R 460.962.

(7) If the proposed interconnection fails any of the initial review screens, and the

electric utility does not or cannot determine that the DER may be interconnected

consistent with safety, reliability, and power quality standards, the electric utility shall

notify the applicant, provide the applicant with the results of the application of the initial

review screens, and offer all of the following options:

(a) Attend a customer options meeting, as described in R 460.948.

(b) Proceed to supplemental review under R 460.950.

(c) Submit within 60 business days from the date of the electric utility notification,

with up to 2 submissions during this time period, a complete and conforming revised

interconnection application that includes application modifications offered or required by

the electric utility. The application modifications must mitigate or eliminate the factors

that caused the interconnection application to fail 1 or more of the initial review screens.

After each submission of information, the electric utility has 10 business days to notify

the applicant that the interconnection application is either accepted or rejected due to

continuing deficiencies. If the applicant does not meet the timelines required by this

subrule, the electric utility may withdraw the application. After the electric utility

determines the application is accepted, the revised interconnection application must

proceed under subrule (4) of this rule.

(d) Withdraw the interconnection application.

(8) If the applicant does not select a course of action under subrule (7) of this rule

within 10 business days of notice from the electric utility, the electric utility shall

withdraw the interconnection application.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.948 Fast track; customer options meeting.

Rule 48. (1) Upon an applicant’s request, the electric utility and the applicant shall

schedule a customer options meeting between the electric utility and the applicant to

review possible facility modifications, screen analysis, and related results to determine

what further steps are needed to permit the DER to be connected safely and reliably to the

distribution system. The customer options meeting must take place within 30 business

days of the date of notification pursuant to R 460.946(7).

(2) At the customer options meeting, the electric utility shall offer all of the

following options:

(a) Proceed to a supplemental review pursuant to R 460.950.

(b) Continue evaluating the interconnection application under the study track

pursuant to R 460.952.

(c) Submit within 60 business days from the date of the customer options meeting,

with up to 2 submissions during this time period, a complete and conforming revised

interconnection application that includes application modifications offered or required by

the electric utility, which mitigates or eliminates the factors that caused the

interconnection application to fail 1 or more of the initial review screens. After each

Page 22

Courtesy of Michigan Administrative Rules

submission of information, the electric utility has 10 business days to notify the applicant

that the interconnection application is either accepted or rejected due to continuing

deficiencies. If the applicant does not meet the timelines required by this subrule, the

electric utility may withdraw the application. After the electric utility accepts the revised

interconnection application, it must proceed under R 460.946(4).

(d) Withdraw the interconnection application.

(3) Following the customer options meeting, the applicant has up to 20 business

days to decide on a course of action and notify the electric utility. In the absence of this

notification within the required time, the electric utility shall withdraw the application.

(4) The customer options meeting may take place in person or via

telecommunications.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.950 Fast track; supplemental review.

Rule 50. (1) An electric utility shall list in its interconnection procedures the

supplemental review screens specified in subrule (6) of this rule. An electric utility may

add additional details to each of these screens in the interconnection procedures.

(2) An electric utility may include additional supplemental review screens in its

interconnection procedures. In its application requesting approval of interconnection

procedures, the electric utility shall provide a detailed technical rationale for the inclusion

of each supplemental review screen. If an additional screen negates or undermines any of

the supplemental review screens specified in subrule (6) of this rule, the rationale must

include an explanation of the technical justification for the additional screen.

(3) An electric utility may waive application of 1, some, or all of the supplemental

review screens.

(4) To receive a supplemental review, an applicant shall submit payment of the

supplemental review fee within 20 business days of agreeing to a supplemental review.

If payment of the fee has not been received by the electric utility within 25 business days,

the electric utility shall withdraw the interconnection application.

(5) Within 30 business days after the applicant pays the applicable supplemental

review fee or fees, and provides reasonable requested data, an electric utility shall

perform a supplemental review and notify the applicant of the results. The supplemental

review must consist of applying the supplemental review screens selected by the electric

utility pursuant to subrule (3) of this rule to the proposed DER. The electric utility shall

not require a system impact study if the DER passes the applied supplemental review

screens.

(6) The supplemental review screens must include all of the following:

(a) Minimum load screen. Where 12 months of line section minimum load data,

including onsite load but not station service load served by the proposed DER, are

available, can be calculated, can be estimated from existing data, or can be determined

from a power flow model, the aggregate DER capacity on the line section must be less

than 100% of the minimum load for all line sections bounded by automatic sectionalizing

devices upstream of the proposed DER. If minimum load data are not available, or cannot

be calculated, estimated, or determined, an electric utility shall include the reason or

reasons that it is unable to calculate, estimate, or determine minimum load in its

Page 23

Courtesy of Michigan Administrative Rules

supplemental review results notification under subrules (7) and (8) of this rule. All of the

following must be applied by the electric utility:

(i) The type of generation used by the proposed DER will be considered when

calculating, estimating, or determining circuit or line section minimum load relevant for

the application of the minimum load screen specified in this subrule. Solar photovoltaic

generation systems with no battery storage must use daytime minimum load. All other

generation must use absolute minimum load unless an operating schedule is provided.

(ii) When this screen is being applied to a DER that serves some station service

load, only the net injection of electric energy into the electric utility’s distribution system

may be considered as part of the aggregate generation.

(iii) The electric utility shall not consider as part of the aggregate generation, for

purposes of this supplemental screen, DER capacity known to be already reflected in the

minimum load data.

(b) Voltage and power quality screen. In aggregate with existing generation on the

line section, all of the following conditions must be met:

(i) The voltage regulation on the line section can be maintained in compliance with

relevant requirements under all system conditions.

(ii) The voltage fluctuation is within acceptable limits as defined by the IEEE

Standard 1453-2015, IEEE Recommended Practice for the Analysis of Fluctuating

Installations on Power Systems.

(c) Safety and reliability screen. The location of the proposed DER and the

aggregate generation capacity on the line section may not create impacts to safety or

reliability that require application of the study track to address. An electric utility shall

consider all of the following when determining potential impacts to safety and reliability

in applying this screen:

(i) Whether the line section has significant minimum loading levels dominated by a

small number of customers, such as several large commercial customers.

(ii) Whether the loading along the line section is uniform.

(iii) Whether the proposed DER is located less than 0.5 electrical circuit miles for

less than 5 kV or less than 2.5 electrical circuit miles for greater than 5 kV from the

substation. In addition, whether the line section from the substation to the point of

common coupling is a mainline rated for normal and emergency ampacity.

(iv) Whether the proposed DER incorporates a time delay function to prevent

reconnection of the DER to the distribution system until distribution system voltage and

frequency are within normal limits for a prescribed time.

(v) Whether operational flexibility is reduced by the proposed DER, such that

transfer of the line section or sections of the DER to a neighboring distribution circuit or

substation may trigger overloads, power quality issues, or voltage issues.

(vi) Whether the proposed DER employs equipment or systems certified by a

recognized standards organization to address technical issues including, but not limited

to, islanding, reverse power flow, or voltage quality.

(7) If the proposed interconnection passes the supplemental review, or if the

proposed interconnection fails the review but the electric utility determines that the DER

may be interconnected consistent with safety, reliability, and power quality standards, the

electric utility shall notify the applicant and the interconnection application must proceed

pursuant to both of the following:

Page 24

Courtesy of Michigan Administrative Rules

(a) If the proposed interconnection requires a facilities study, the interconnection

application must proceed under R 460.962.

(b) If the proposed interconnection does not require further study, the

interconnection application must proceed under R 460.964 to an interconnection

agreement.

(8) If the proposed interconnection fails any of the supplemental review screens or

the electrical utility is unable to perform a supplemental review screen, and the electric

utility does not or cannot determine that the DER may be interconnected consistent with

safety, reliability, and power quality standards, the electric utility shall notify the

applicant, provide the applicant with the results of the application of the supplemental

review screens, and offer both of the following options:

(a) Stop the supplemental review and continue evaluating the proposed

interconnection under the study track under R 460.952.

(b) Withdraw the interconnection application.

(9) For subrules (7) and (8) of this rule, if an applicant does not select a course of

action within 10 business days of notice from the electric utility, the electric utility shall

withdraw the interconnection application.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.952 Study track.

Rule 52. (1) An electric utility shall use the study track to evaluate an

interconnection application that has been accepted under R 460.936 if 1 or more of the

following conditions is met:

(a) The DER is not eligible for the non-export track or fast track.

(b) The DER did not pass the initial review screens as part of the fast track and the

applicant selected the study track option in the customer options meeting.

(c) The DER did not pass 1 or more supplemental review screens.

(d) The DER was evaluated under the non-export track and further study is

required.

(e) The DER is eligible for the fast track, but the applicant elected the study track.

(2) If the interconnection application must be evaluated under the study track

because it meets the criteria of subrule (1)(a) of this rule, within 10 business days after

the electric utility notifies the applicant that the interconnection application has been

accepted pursuant to R 460.936, the electric utility shall provide to the applicant an

individual study agreement or an agreement for an alternative process pursuant to R

460.956.

(3) If the interconnection application must be evaluated under the study track

because it meets the criteria of subrule (1)(b), (c), or (d), of this rule, within 10 business

days after the applicant has notified the electric utility to proceed to the study track, the

electric utility shall provide to the applicant an individual study agreement or an

agreement for an alternative process. (4) An electric utility’s interconnection procedures

may include a provision for determining appropriate milestone payments to include with

the system impact study fee and facilities study fee.

History: 2023 MR 8, Eff. April 25, 2023.

Page 25

Courtesy of Michigan Administrative Rules

R 460.954 Individual study.

Rule 54. (1) An electric utility that is evaluating DERs in the study track

individually shall process the interconnection applications in the order in which the

applications were placed into the study track, taking into account withdrawn

interconnection applications and electrically remote DERs. An electrically remote DER

in an individual study may be studied on an expedited schedule relative to electrically

coincident DERs. Electrically remote DERs must be studied in the order the

interconnection applications were considered complete.

(2) When an interconnection application is delayed due to an affected system issue,

informal mediation pursuant to R 460.904, formal mediation pursuant to R 460.906, or a

complaint pursuant to R 792.10439 to R 792.10446, other interconnection applications

that were placed into the study track on a later date may progress in the order in which

the interconnection applications were placed into the study track.

(3) An individual study process must consist of a system impact study pursuant to R

460.960 and a facilities study pursuant to R 460.962. An electric utility may waive 1 or

both studies for a particular interconnection application. An electric utility may specify

additional studies it may perform on an interconnection application in its interconnection

procedures, provided the electric utility is able to meet all applicable timelines associated

with an individual study process.

(4) Interconnection applications that meet all of the following requirements must be

admitted into an individual study:

(a) An electric utility determined the application to be complete and conforming.

(b) An application qualifies for study track pursuant to R 460.952.

(c) An interconnection application has a pre-application report, when required by R

460.936(2).

(d) An applicant has paid all required fees.

(e) An applicant has signed and returned an individual study agreement.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.956 Alternative process.

Rule 56. An electric utility may use a process to study interconnection applications

that is different from the process described by R 460.954 and R 460.958 to R 460.962. If

an electric utility elects to use an alternative process, this process must be described in the

electric utility’s interconnection procedures.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.958 Scoping meeting for interconnection applications that are to be

studied individually.

Rule 58. (1) This rule applies only to interconnection applications proceeding

pursuant to an individual study agreement.

Page 26

Courtesy of Michigan Administrative Rules

(2) Upon request of the applicant, the electric utility and the applicant shall schedule

a scoping meeting between the electric utility and the applicant to discuss the

interconnection application and review existing fast track results, if any. The scoping

meeting must take place within 20 business days after the interconnection application is

considered complete by the electric utility or, if applicable, the fast track has been

completed and the applicant has elected to continue with the system impact study or

facilities study.

(3) Scoping meetings are limited to 1 hour per application. Multiple applications by

the same applicant may be addressed in the same meeting.

(4) The scoping meeting may occur in-person or via telecommunications.

(5) During the scoping meeting, the electric utility shall identify and communicate to

the applicant whether the applicant must proceed to a system impact study, a facilities

study, or an interconnection agreement and the basis for that decision, and 1 of the

following must occur:

(a) If a system impact study must be performed, the interconnection application

proceeds to R 460.960.

(b) If a facilities study must be performed, the interconnection application proceeds

to R 460.962.

(c) If a system impact study is not required and a facilities study is not required, the

interconnection application must proceed to R 460.964 for an interconnection agreement.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.960 System impact study agreement, scope, procedure, and review

meeting.

Rule 60. For all DERs being studied individually, all of the following apply:

(a) An electric utility shall provide the applicant a system impact study agreement

within 5 business days of proceeding to this rule.

(b) A system impact study agreement must include all of the following:

(i) An outline of the scope of the study.

(ii) The applicable fee, including appropriate credit for any studies previously

completed pursuant to the fast track or non-export track.

(iii) If necessary, a list of any additional and reasonable technical data needed from

the applicant to perform the system impact study.

(iv) A timeline for completion of the system impact study.

(v) A list of the information that must be provided to the applicant in the system

impact study report.

(c) An applicant who has requested a system impact study shall return the

completed system impact study agreement, provide any additional technical data

requested by the electric utility, and pay the required fee within 20 business days. An

electric utility may consider the application withdrawn if the system impact study

agreement, payment, and required technical data are not returned within 20 business

days.

(d) A system impact study must identify and describe the electric system impacts

that would result if the proposed DER was interconnected without electric system

modifications. A system impact study must provide a non-binding good faith list of

Page 27

Courtesy of Michigan Administrative Rules

facilities that are required as a result of the application and non-binding estimates of costs

and time to construct these facilities.

(e) An electric utility shall explain in its interconnection procedures the process for

conducting system impact studies on DERs when there is an affected system issue.

(f) The electric utility shall complete the system impact study and transmit a system

impact study report to the applicant within 60 business days after the receipt of the signed

system impact study agreement, payment of the system impact study fee, and any

necessary technical data. If necessary, the electric utility shall transmit a facilities study

agreement to the applicant within 60 business days of receipt of the signed system impact

study agreement, payment of all applicable fees, and any necessary technical data.

(g) An electric utility may request reasonable additional data from the applicant

within 20 business days of beginning the system impact study. The electric utility and the

applicant shall work together to resolve the additional data request so that the electric

utility will be able to complete the system impact study within 60 business days as

specified in subdivision (f) of this rule. If the applicant does not provide the requested

additional data in a timely manner, the electric utility shall notify the applicant that the

system impact study is on hold and the date the hold started. The electric utility shall

resume work on the study on the date the additional data is received.

(h) Within 15 business days of receiving the system impact study report, the

applicant shall notify the electric utility that it plans to pursue a system impact study

review meeting, proceed to a facilities study pursuant to R 460.962, or withdraw the

application. If the applicant fails to notify the electric utility within 15 business days, the

electric utility may consider the application to be withdrawn.

(i) Upon request by the applicant pursuant to subdivision (h) of this rule, the electric

utility and the applicant shall schedule a system impact study review meeting between the

electric utility and the applicant to review system impact study results and determine

what further steps are needed to permit the DER to be connected safely and reliably to the

distribution system. The system impact study review meeting must take place within 25

business days of the electric utility receiving notification that the applicant plans to attend

a system impact study review meeting.

(j) At the system impact study review meeting, the electric utility shall offer the

applicant the option to withdraw the interconnection application, and 1 of the following

options:

(i) Proceed to a facilities study pursuant to R 460.962.

(ii) Proceed directly to R 460.964 for an interconnection agreement.

(k) Following the meeting, the applicant has not more than 45 business days to

decide on a course of action. If an applicant fails to notify the electric utility within 45

business days, the electric utility may consider the application to be withdrawn.

(l) The system impact study review meeting may occur in-person or via

telecommunications.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.962 Facilities study agreement, scope, procedure; review meeting.

Rule 62. For DERs being studied individually, all of the following apply:

Page 28

Courtesy of Michigan Administrative Rules

(a) If construction of facilities is required to provide interconnection and

interoperability of the DER with the electric utility’s distribution system, the electric

utility shall provide the applicant a facilities study agreement and the results of the

applicant’s system impact study pursuant to R 460.960, if applicable. The electric utility

shall provide a facilities study agreement within 10 business days of proceeding to this

rule.

(b) The facilities study agreement must include the following:

(i) An outline of the scope of the study.

(ii) The applicable fee, including appropriate credit for any studies previously

completed pursuant to the fast track or non-export track.

(iii) A timeline for completion of the facilities study.

(iv) A list of the information that will be provided to the applicant in the facilities

study report.

(c) The applicant shall return the signed facilities study agreement and pay the

required facilities study fee within 20 business days. The electric utility may withdraw

the application if the facilities study agreement and payment are not returned within 20

business days.

(d) A facilities study must specify and estimate the cost of the required equipment,

engineering, procurement, and construction work, including overheads, needed to

interconnect the DER, and an estimated timeline for the completion of construction. The

electric utility shall provide cost estimates that are detailed and itemized.

(e) The electric utility shall explain in its interconnection procedures the process for

conducting facilities studies on DERs while there is an affected system issue.

(f) The electric utility shall complete the facilities study and transmit a facilities

study report to the applicant within 80 business days of the receipt of the signed facilities

study agreement and payment of the facilities study fee.

(g) Within 10 business days of receiving a facilities study report from the electric

utility, the applicant shall select 1 option from the following options:

(i) Request a facilities study review meeting with the electric utility.

(ii) Proceed to an interconnection agreement pursuant to R 460.964.

(iii) Withdraw the interconnection application.

If the applicant fails to inform the electric utility within 10 business days of its chosen

course of action, the electric utility may consider the application withdrawn.

(h) Upon request by the applicant pursuant to subdivision (g)(i) of this rule, the

electric utility and the applicant shall schedule a facilities study review to review the

facilities study results and determine what further steps are needed to permit the DER to

be connected safely and reliably to the distribution system. The facilities study review

meeting must take place within 25 business days of the electric utility receiving

notification that the applicant will attend a facilities study review meeting.

(i) At the facilities study review meeting, the electric utility shall offer both of the

following options:

(i) Proceed to an interconnection agreement pursuant to R 460.964.

(ii) Withdraw the interconnection application.

(j) Following the meeting, the applicant has no more than 20 business days to

decide on a course of action and notify the electric utility of this course of action. If the

Page 29

Courtesy of Michigan Administrative Rules

applicant fails to notify the electric utility within 20 business days, the electric utility may

withdraw the application.

(k) The facilities study review meeting may be conducted in-person or via

telecommunications.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.964 Interconnection agreement.

Rule 64. (1) For level 1, 2, or 3 interconnection applications, where no construction

of interconnection facilities or distribution upgrades is required, an electric utility shall

transmit its standard level 1, 2, and 3 interconnection agreement, which may include

modifications to address any special operating conditions, to an applicant within 3

business days of reaching this stage.

(2) For level 1, 2, or 3 interconnection applications, where construction of

interconnection facilities or distribution upgrades is required, an electric utility shall

provide its standard level 1, 2, and 3 interconnection agreement with modifications to

address any special operating conditions, required construction activities, estimated

construction milestone timing, and estimated cost to an applicant within 5 business days

of reaching this stage. The applicant and electric utility shall mutually agree on the

timing of construction milestones.

(3) For an applicant with level 1, 2, or 3 interconnection applications, the applicant

shall sign and return the standard level 1, 2, and 3 interconnection agreement with

payment, if applicable, within 20 business days of receiving the agreement.

(a) If the applicant did not sign and return the standard level 1, 2, and 3

interconnection agreement and payment, if applicable, within 20 business days, the

electric utility shall notify the applicant of the missed deadline and grant an extension of

15 business days. If the electric utility did not receive the signed standard level 1, 2, and 3

interconnection agreement and any applicable payment during the 15-business-day

extension, the electric utility may consider the interconnection application withdrawn

subject to subdivision (b) of this subrule.

(b) If the applicant begins either the informal mediation pursuant to R 460.904, the

formal mediation pursuant to R 460.906, or the complaint process pursuant to R

792.10439 to R 792.10446 within the 20 business days, the outcome of that process must

establish a time frame for the applicant to return the signed interconnection agreement

and any applicable payment.

(4) For level 1, 2, or 3 projects, the electric utility shall countersign and provide a

completed copy of the standard level 1, 2, and 3 interconnection agreement within 10

business days of the applicant returning the signed standard level 1, 2, and 3

interconnection agreement and the interconnection application must proceed under R

460.966.

(5) For level 4 or 5 projects, the electric utility shall provide its level 4 and 5

interconnection agreement, which may include modifications to address any special

operating conditions, within 15 business days of reaching this stage. When construction

of interconnection facilities or distribution upgrades is necessary, the level 4 and 5

interconnection agreement must contain either estimated timelines for completion of

activities and estimates of construction costs or a timetable when these requirements can

Page 30

Courtesy of Michigan Administrative Rules

be determined. The interconnection agreement must include a payment schedule that

corresponds to the milestones established and must require the electric utility to refund

any unspent and unobligated funds if the agreement is terminated.

(6) For an applicant with level 4 or 5 DERs, the applicant shall sign and return with

payment, if applicable, a level 4 and 5 interconnection agreement within 30 business

days.

(a) If the applicant does not sign and return the level 4 and 5 interconnection

agreement with payment within 30 business days, an electric utility shall notify the

applicant of the missed deadline and grant an extension of 15 business days. If the

electric utility does not receive the signed level 4 and 5 interconnection agreement and

payment, if applicable, during the 15-business-day extension, the electric utility may

consider the interconnection application withdrawn, subject to subdivision (b) of this

subrule.

(b) If the applicant begins either the informal mediation pursuant to R 460.904,

formal mediation pursuant to R 460.906, or the complaint process pursuant to R

792.10439 to R 792.10446 within 30 business days, the outcome of that process must

establish a time frame for the applicant to return the signed interconnection agreement

and applicable payment. There is a rebuttable presumption in the complaint proceeding

that the electric utility’s standard construction, procurement, installation, design, and cost

practices are lawful, reasonable, and prudent.

(i) For study track interconnection applications filed with an electric utility

conducting individual studies, electrically coincident applications filed after the

interconnection application must be placed on hold for not more than 60 business days.

If either informal mediation pursuant to R 460.904, formal mediation pursuant to R

460.906, or the complaint process pursuant to R 792.10439 to R 792.10446 does not

result in the applicant returning a signed interconnection agreement with any applicable

payment within 60 business days and there are electrically coincident interconnection

applications in progress behind this application, the electric utility may require the

withdrawal of the interconnection application.

(7) For level 4 or 5 projects, an electric utility shall countersign and provide a

completed copy of the level 4 and 5 interconnection agreement within 10 business days

of the applicant returning a mutually agreed-upon and signed level 4 and 5

interconnection agreement and the interconnection application must proceed under R

460.966.

(8) An applicant shall pay the actual cost of the interconnection facilities and

distribution upgrades. The cost to the applicant for interconnection facilities and

distribution upgrades may not exceed 110% of the estimate without an itemized summary

and explanation of cost increases being provided to the applicant. If the costs are

expected to exceed 125% of the estimate, the electric utility shall provide further

explanation to the applicant prior to the costs being incurred. If the applicant does not

consent in writing to pay the additional costs within 20 business days after receiving

further explanation from the electric utility, the electric utility shall initiate informal

mediation pursuant to R 460.904 no later than 5 business days after the conclusion of the

20-business day applicant consent period. The applicant may dispute the expected costs

pursuant to either informal mediation pursuant to R 460.904, formal mediation pursuant

to R 460.906, or the complaint process pursuant to R 792.10439 to R 792.10446. If there

Page 31

Courtesy of Michigan Administrative Rules

is a dispute, the applicant shall make payment within 30 business days after final

resolution of the dispute.

(9) A party’s obligations under the interconnection agreement may be extended by

agreement. If a party anticipates that it will be unable to meet a milestone for any reason

other than an unforeseen event, the party shall do all of the following:

(a) Immediately notify the other party of the reason or reasons for not meeting the

milestone.

(b) Propose the earliest alternate date when it can attain this and future milestones.

(c) Request amendments to the interconnection agreement, if needed to address the

changed milestones.

(10) The party affected by the failure to meet a milestone shall not withhold

agreement to any amendments proposed in subrule (9)(c) of this rule unless 1 of the

following applies:

(a) The party affected will suffer significant uncompensated economic or

operational harm from the amendment or amendments.

(b) The milestone under question has been previously delayed and the affected

party has reason to believe that the delay in meeting the milestone is intentional or

unwarranted notwithstanding the circumstances explained by the party proposing the

amendment.

(11) If the party affected by the failure to meet a milestone disputes the proposed

extension, the affected party may pursue either informal mediation pursuant to R

460.904, formal mediation pursuant to R 460.906, or the complaint process pursuant to R

792.10439 to R 792.10446.

(12) The electric utility shall provide the applicant with a final accounting report of

any difference between costs charged to the applicant and previous payments to the

electric utility for interconnection facilities or distribution upgrades. Both of the

following apply to a final accounting:

(a) If the costs charged to the applicant exceed its previous aggregate payments, the

electric utility shall bill the applicant for the amount due and the applicant shall make a

payment to the electric utility within 20 business days of the final accounting report. The

applicant may dispute the invoice pursuant to either informal mediation pursuant to R

460.904, formal mediation pursuant to R 460.906, or the complaint process pursuant to R

792.10439 to R 792.10446. If there is a dispute, the applicant shall make payment within

30 business days of final resolution of the dispute. Failure by the applicant to pay its costs

is cause for disconnection of the applicant’s DER.

(b) If the applicant’s previous aggregate payments exceed its costs under the

interconnection agreement, the electric utility shall refund to the applicant an amount

equal to the difference within 20 business days of the final accounting report.

(13) The electric utility is responsible for specifying requirements in interconnection

agreements to support independent system operator regulations or regional transmission

operator regulations.

(14) The electric utility may propose to the commission that a signed

interconnection agreement be modified to require compliance with changes to an

independent system operator, a regional transmission operator, or the state’s regulations.

Unless the electric utility has the consent of the applicant or interconnection customer in

Page 32

Courtesy of Michigan Administrative Rules

writing, an electric utility shall not modify a signed interconnection agreement without

commission approval.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.966 Inspection, testing, and commissioning.

Rule 66. (1) If the interconnection application requires telecommunications,

cybersecurity, data exchange or remote controls operation, successful testing and

certification of these items must be completed prior to or during testing. The electric

utility’s interconnection procedures must describe the technical requirements of common

items, but site-specific requirements may be included in the interconnection agreement.

(2) An applicant shall notify the electric utility when installation of a DER and any

required local code inspection and approval is complete. The applicant shall provide any

test reports or configuration documents as defined in the standard level 1, 2, and 3

interconnection agreement or level 4 and 5 interconnection agreement.

(3) The electric utility shall review the applicant’s inspection, test reports, or

configuration documents, and communicate its intent to perform a witness or

commissioning test, or waive its right to perform a witness test and commissioning test

within 10 business days. If the electric utility finds the applicant’s inspection, test

reports, or configuration documents to be incomplete, insufficient, or unsatisfactory, the

electric utility shall provide the reasons for doing so in writing and the applicant shall

have not less than 20 business days or a mutually agreed upon timeframe with the utility

to implement corrections to those documents. The applicant, after taking corrective

action, shall request the electric utility to reconsider the inspection, test reports, or

configuration documents.

(4) Subsequent to completion of the items in subrule (3), if the electric utility intends

to witness or perform commissioning tests required to comply with the interconnection

agreement or the interconnection procedures and inspect the DER, the electric utility

shall witness or perform the commissioning tests and inspect the DER within the

following:

(a) Ten business days of receiving the notification from the applicant pursuant to

completion of subrules (2) and (3) of this rule for level 1 applications.

(b) Twenty business days after receiving the notification from the applicant pursuant

to completion of subrules (2) and (3) of this rule for level 2 and level 3 applications.

(c) A mutually-agreed upon timeframe after receiving the notification from the

applicant pursuant to completion of subrules (2) and (3) of this rule for level 4 and 5

applications.

(5) The electric utility may waive its right to visit the site and inspect the DER or

perform the commissioning tests. The following requirements apply:

(a) If the electric utility waives this right, it shall provide a written waiver to the

applicant within 10 business days from receiving the notification from the applicant

pursuant to subrule (2) of this rule.

(b) The applicant shall provide the electric utility with the completed

commissioning test report within 20 business days of receipt of the electric utility’s

written waiver.

Page 33

Courtesy of Michigan Administrative Rules

(6) If the electric utility attempts to conduct the inspection and testing pursuant to

subrule (4) of this rule at the arranged time and is unable to access the DER or complete

the testing, the DER must remain disconnected until the applicant and the electric utility

can complete the inspection and testing.

(7) If the electric utility witnessed or performed commissioning tests and inspected

the DER pursuant to subrule (4) of this rule, within 5 business days of the receipt of the

completed commissioning test report, the electric utility shall notify the applicant whether

it has accepted or rejected the commissioning test report and found the site to be

satisfactory or unsatisfactory. The following requirements apply:

(a) If the commissioning test report is accepted and the site was found satisfactory,

the electric utility shall provide the notification of acceptance in writing, and the

interconnection application proceeds to R 460.968.

(b) If the electric utility rejects the commissioning test report or did not find the site

satisfactory, the electric utility shall provide its reasons for doing so in writing and the

applicant has not less than 20 business days to implement corrections. The applicant,

after taking corrective action, shall request the electric utility to reconsider its findings.

The applicant may be billed the actual cost of any re-inspections.

(8) If the electric utility waived its right to witness or perform commissioning tests

and inspect the DER pursuant to subrule (5) of this rule, within 5 business days of the

receipt of the completed commissioning test report, the electric utility shall notify the

applicant whether it has accepted or rejected the commissioning test report. The

following requirements apply:

(a) If the commissioning test report is accepted, the electric utility shall provide

notification of acceptance, and the interconnection application proceeds to R 460.968.

(b) If the electric utility rejects the commissioning test report, the electric utility

shall provide its reasons for doing so in writing and the applicant has not less than 20

business days to implement corrections. The applicant, after taking corrective action, may

then request the electric utility to reconsider its findings.

(9) The cost of testing and inspection for applicants participating in an electric

utility’s distributed generation program, as described in part 3 of these rules, R 460.1001

to R 460.1026, are considered a cost of operating a distributed generation program and

must be recovered pursuant to section 175(1) of the clean and renewable energy and

energy waste reduction act, 2008 PA 295, MCL 460.1175.

(10) If the applicant does not notify the electric utility that the DER is installed and

ready to test pursuant to subrule (2) of this rule, the electric utility may, in writing, query

the status of the interconnection. If the applicant does not provide a written response

within 10 business days or no progress is evident, the electric utility may consider the

interconnection application withdrawn.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.968 Authorization required prior to parallel operation.

Rule 68. (1) The electric utility shall provide to the applicant written authorization to

operate in parallel with the electric utility within 5 business days of all of the following

conditions being met:

Page 34

Courtesy of Michigan Administrative Rules

(a) The electric utility notified the interconnection applicant that the commissioning

test and inspection, where applicable, are accepted.

(b) The applicant has executed a standard level 1, 2, and 3 interconnection

agreement or level 4 and 5 interconnection agreement and complied with all applicable

parallel operation requirements as set forth in the electric utility’s interconnection

procedures and applicable interconnection agreement.

(c) The applicant complied with all applicable local, state, and federal requirements.

(d) The electric utility received full payments for all outstanding bills.

(2) With the written authorization, interconnection of the DER is considered

approved for parallel operation, the DER may begin operating, and the applicant is

considered an interconnection customer.

(3) The applicant shall not operate its DER in parallel with the electric utility’s

distribution system without prior written permission to operate from the electric utility.

(4) Subject to reasonable timing and other conditions, including completion of

conditions in the interconnection agreement or interconnection procedures, the electric

utility shall allow for reasonable but limited testing before written authorization has

occurred.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.970 Cost allocation of interconnection facilities, distribution upgrades,

and associated operation and maintenance costs.

Rule 70. Costs for interconnection facilities, distribution upgrades, and associated

operation and maintenance costs must be classified into 1 of the following categories:

(a) Site-specific costs, which include, but are not limited to, costs of interconnection

facilities and distribution upgrades that are caused by 1 DER, whether that DER is

electrically co-incident with other DERs or not. These costs must be assigned to the cost-

causing applicant.

(b) Shared interconnection facilities costs, which are costs caused by DERs which

together necessitate the construction of interconnection facilities. The interconnection

facilities costs, including any associated operation and maintenance costs, that should be

shared must be allocated to each applicant based on a methodology described in the

electric utility’s interconnection procedures.

(c) Shared distribution upgrade costs, which are costs caused by electrically co-

incident DERs that together necessitate a distribution upgrade. The distribution upgrade

costs, including any associated operation and maintenance costs, that should be shared

must be allocated to each applicant based on a methodology described in the electric

utility’s interconnection procedures.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.974 Interconnection metering and communications.

Rule 74. (1) Any metering and communications requirements necessitated by use of

the DER must be installed at the applicant’s expense. The electric utility may furnish this

equipment at the applicant’s expense.

Page 35

Courtesy of Michigan Administrative Rules

(2) The electric utility may charge the interconnection customer reasonable ongoing

fees to maintain the metering and communications equipment. These fees must be listed

in the interconnection agreement.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.976 Post commissioning remedy.

Rule 76. (1) If the electric utility finds that the DER is operating outside the terms of

the interconnection agreement but does not find immediate disconnection pursuant to R

460.978(1)(f) and (g) warranted, the electric utility shall promptly inform the

interconnection customer or its agent of this finding. The interconnection customer is

responsible for bringing the DER into compliance within 30 business days or a mutually

agreed-upon time period. The electric utility may perform an inspection of the DER after

a remedy is applied.

(2) If the DER is not brought into compliance within 30 business days or the

mutually agreed-upon time period, the electric utility may apply a remedy and bill the

interconnection customer. The interconnection customer shall pay this bill within 5

business days.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.978 Disconnection.

Rule 78. (1) An electric utility may refuse to connect or may disconnect a project

from the distribution system if any of the following conditions apply:

(a) Failure of the interconnection customer to bring a DER into compliance

pursuant to R 460.976(1).

(b) Failure of the interconnection customer to pay costs of remedy pursuant to R

460.976(2).

(c) Termination of interconnection by mutual agreement.

(d) Distribution system emergency, but only for the time necessary to resolve the

emergency.

(e) Routine maintenance, repairs, and modifications performed in a reasonable time

and with prior notice to the interconnection customer.

(f) Noncompliance with technical or contractual requirements in the interconnection

agreement that could lead to degradation of distribution system reliability, electric utility

equipment, and electric customers’ equipment.

(g) Noncompliance with technical or contractual requirements in the

interconnection agreement that presents a safety hazard.

(h) Other material noncompliance with the interconnection agreement.

(i) Operating in parallel without prior written authorization from the electric utility

as provided for in R 460.968.

(2) An electric utility may disconnect electric service, where applicable, pursuant to

R 460.136.

History: 2023 MR 8, Eff. April 25, 2023.

Page 36

Courtesy of Michigan Administrative Rules

R 460.980 Capacity of the DER.

Rule 80. (1) If the interconnection application requests an increase in capacity for

an existing DER, the electric utility shall evaluate the application based on the new

export capacity of the DER. The maximum capacity of a DER is the aggregate nameplate

rating. or may be limited as described in the electric utility’s interconnection procedures.

(2) An interconnection application for a DER that includes single or multiple types

of DERs at a site for which the applicant seeks a single point of common coupling must

be evaluated as described in the electric utility’s interconnection procedures.

(3) The electric utility’s interconnection procedures may describe acceptable

methods for power limited export DER including, but not limited to, reverse power

protection and utilizing inverters or control systems so that the DER capacity considered

by the electric utility for reviewing the interconnection application is only the amount

capable of being exported. These methods for power limited export DER may be used as

alternatives to the method described in subrule (4) of this rule.

(4) An electric utility shall allow interconnection of limited-export or non-exporting

DERs according to this subrule. If a DER uses any configuration or operating mode in

this subrule to limit the export of electrical power across the point of common coupling,

then the capacity must be only the amount capable of being exported, not including any

inadvertent export. To prevent impacts on system safety and reliability, any inadvertent

export from a DER must comply with the limits in subdivisions (e) or (f) of this subrule.

The export capacity specified by the applicant in the application must be included as a

limitation in the interconnection agreement. Other means not listed in this subrule may be

utilized to limit export if mutually agreed upon by the electric utility and applicant.

Interconnections of limited-export or non-exporting DERs are subject to the following

options:

To ensure power is never exported across the point of common coupling, a reverse

power protective function may be provided. The default setting for this protective

function must be 0.1% export of the service transformer’s rating, with a maximum 2.0

second time delay.

To ensure at least a minimum amount of power is imported across the point of

common coupling at all times and, therefore, that power is not exported, an under-power

protective function may be provided. The default setting for this protective function is 5%

import of the DER’s total nameplate rating, with a maximum 2.0 second time delay.

The nameplate rating of the DER, minus any auxiliary load, must be so small in

comparison to its host facility’s minimum load that the use of additional protective

functions are not required to ensure that power is not exported to the distribution system.

This option requires the DER capacity must be no greater than 50% of the applicant’s

verifiable minimum host load over the past 12 months.

A reduced output rating utilizing the power rating configuration setting may be used

to ensure the DER does not generate power beyond a certain value lower than the

nameplate rating.

DERs may utilize a Nationally Recognized Testing Laboratory Certified Power

Control System and inverter system that results in the DER disconnecting from the

distribution system, ceasing to energize the distribution system, or halting energy

Page 37

Courtesy of Michigan Administrative Rules

production within 2 seconds if the period of continuous inadvertent export exceeds 30

seconds. Failure of the control or inverter system for more than 30 seconds, resulting

from loss of control or measurement signal, or loss of control power, must result in the

DER entering an operational mode where no energy is exported across the point of

common coupling to the distribution system.

DERs may be designed with other control systems or protective functions, or both,

to limit export and inadvertent export to levels mutually agreed on by the applicant and

the electric utility. The limits may be based on technical limitations of the applicant’s

equipment or the distribution system’s equipment. To ensure inadvertent export remains

within mutually agreed-upon limits, the applicant shall use an internal transfer relay,

energy management system, or other customer facility hardware or software.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.982 Modification of the interconnection application.

Rule 82. (1) At any point after an interconnection application is considered accepted

but before the signing of an interconnection agreement, the applicant, the electric utility,

or the affected system owner may propose modifications to the interconnection

application that may improve the costs and benefits of the interconnection, or that

improve the ability of the electric utility to accommodate the interconnection. The

applicant shall submit to the electric utility, in writing, all proposed modifications to any

information provided in the interconnection application and the electric utility shall

perform an evaluation to determine whether the proposed modification is a material

modification and provide the results to the applicant within 10 business days.

(2) The electric utility shall not be required to accept or implement a modification to

the electric utility’s distribution system or generation assets that is proposed by an

applicant or affected system operator.

(3) The applicant may request a 1-hour consultation to discuss the results of the

material modification review.

(4) Neither the electric utility nor the affected system operator may unilaterally

modify an accepted interconnection application. If the electric utility evaluates DERs

using individual studies, the timelines specific to that interconnection application must be

placed on hold while the proposed modification is being evaluated by the electric utility.

(5) For a proposed modification which the electric utility has determined is a

material modification and that further study is required, the applicant shall select 1 of the

following options:

(a) Withdraw the modification.

(b) Withdraw the application.

(c) Propose a different modification to the

interconnection application for electric utility review, pursuant to subrule (1) of this rule,

to determine whether the modification is material.

(d) If the electric utility offers an expedited study of the application with the

proposed material modification, the applicant may request the expedited study. If the

electric utility offers an expedited study, the process of performing an expedited study

must be described in the electric utility’s interconnection procedures.

(e) Initiate informal mediation pursuant to R 460.904

(f) Initial formal mediation pursuant to R460.906

Page 38

Courtesy of Michigan Administrative Rules

(g) File a complaint pursuant to R 792.10439 to R 792.10446.

(6) The applicant shall notify the electric utility of its selection pursuant to subrule

(5) of this rule within 10 business days of receiving the electric utility notification of the

results or the modification may be considered withdrawn.

(7) For a proposed modification that the electric utility has determined is a material

modification, but does not require further study, the electric utility shall continue

processing the interconnection application according to these rules.

(8) Any modification to the interconnection application that could affect the

operation of the distribution system, including but not limited to, changes to machine

data, equipment configuration, or the interconnection site of the DER, not agreed to in

writing by the electric utility and the applicant may be treated by the electric utility as a

withdrawal of the interconnection application requiring submission of a new

interconnection application.

(9) At any point prior to the execution of an interconnection agreement, changes to

ownership will cause the interconnection application to be put on hold until the new

owner signs all necessary agreements and documents. An electric utility may not be

found in violation of these rules related to the processing of the interconnection

application during such a transfer of ownership.

(10) The electric utility’s interconnection procedures must provide a procedure for

performing a material modification review.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.984 Modifications to the DER.

Rule 84. After the execution of the interconnection agreement, the applicant shall

notify the electric utility of any plans to modify the DER. The electric utility shall review

the proposed modification to determine if the modification is considered a material

modification. If the electric utility determines that the modification is a material

modification, the electric utility shall notify the applicant, in writing of its determination

and the applicant shall submit a new application and application fee along with all

supporting materials that are reasonably requested by the electric utility. The applicant

may not begin any material modification to the DER until an interconnection agreement

incorporating the material modification is fully executed.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.986 Insurance.

Rule 86. (1) An applicant interconnecting a level 1 or 2 project to the distribution

system of an electric utility may not be required by the electric utility to obtain any

additional liability insurance.

(2) An electric utility shall not require an applicant interconnecting a level 1 or 2

project to name the electric utility as an additional insured party.

(3) For a level 3 project, the applicant shall obtain and maintain general liability

insurance of a minimum of $1,000,000.

Page 39

Courtesy of Michigan Administrative Rules

(4) For a level 4 project, the applicant shall obtain and maintain general liability

insurance of a minimum of $2,000,000.

(5) For a level 5 project, the applicant shall obtain and maintain general liability

insurance of a minimum of $3,000,000.

(6) For level 3, 4, and 5 projects, the electric utility may describe in its

interconnection procedures required terms and conditions that must be specified in the

general liability insurance.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.988 Easements and rights-of-way.

Rule 88. If a line extension is required to accommodate an interconnection, the

applicant is responsible for providing and obtaining the easements or rights of way,

including all associated cost, in a form consistent with utility tariffs.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.990 Interconnection penalties.

Rule 90. Pursuant to section 10e of 1939 PA 3, MCL 460.10e, an electric utility

shall take all necessary steps to ensure that DERs are connected to the distribution

systems within their operational control. If the commission finds, after notice and

hearing, that an electric utility has prevented or unduly delayed the ability of a DER

greater than 100 kW to connect to the distribution system of the electric utility, the

commission may order remedies designed to make whole the applicant proposing the

DER, including, but not limited to, reasonable attorney fees. If the electric utility violates

this rule, the commission may order fines of not more than $50,000 per calendar day,

commensurate with the demonstrated impact of the violation.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.991 Business day exclusions.

Rule 91. An electric utility shall notify the commission and all applicants that have

in-process applications when timelines are being extended due to a business day where

electric service is interrupted for 10% or more of an electric utility’s customers, pursuant

to R 460.901a(k). The electric utility shall also notify the commission and all applicants

that have in-process applications when application processing resumes.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.992 Electric utility annual reports.

Rule 92. An electric utility shall file an annual interconnection report on a date and

in a format determined by the commission.

Page 40

Courtesy of Michigan Administrative Rules

History: 2023 MR 8, Eff. April 25, 2023.

PART 3. DISTRIBUTED GENERATION PROGRAM STANDARDS

R 460.1001 Application process.

Rule 101. (1) An electric utility shall file initial distributed generation program tariff

sheets in the first rate case filed after June 1, 2018.

(2) Within 30 calendar days of a commission order approving an electric utility’s

initial distributed generation tariff, or within 30 calendar days of the effective date of

these rules, whichever is later, an alternative electric supplier serving customers in that

electric utility’s service territory shall file an updated distributed generation program plan

applicable to its customers in the affected electric utility’s service territory.

(3) An electric utility and an alternative electric supplier shall annually file a legacy

net metering program report and, if applicable, a distributed generation program report

not later than March 31 of each year.

(4) An electric utility and an alternative electric supplier shall maintain records of all

applications and up-to-date records of all eligible electric generators participating in the

legacy net metering program and distribution generation program.

(5) Selection of customers for participation in the legacy net metering program or

distributed generation program must be based on the order in which the applications are

received.

(6) An electric utility or alternative electric supplier shall not refuse to provide or

discontinue electric service to a customer solely because the customer participates in the

legacy net metering program or distributed generation program.

(7) The legacy net metering program and distributed generation program provided

by electric utilities and alternative electric suppliers must be designed for a period of not

less than 10 years and limit each applicant to generation capacity designed to meet up to

100% of the customer’s electricity consumption for the previous 12 months. All of the

following requirements apply:

(a) The generation capacity must be determined by an estimate of the expected

annual kWh output of the generator or generators as determined in an electric utility’s

interconnection procedures and specified on an electric utility's legacy net metering

program or distributed generation program tariff sheet or in the alternative electric

supplier’s legacy net metering program or distributed generation program plan. For

projects in which energy export controls are implemented pursuant to section R 460.980

and utilized to limit the export to 100% of the customer’s electricity consumption for the

previous 12 months, an electric utility shall not add the storage capacity to generation

capacity for the purpose of the study. If a customer has multiple inverters capable of

exporting to the distribution grid, the inverters must be configured in a way that prevents

the cumulative maximum export at any given time to exceed the approved amount in the

customer’s application.

(b) A customer’s electric consumption must be determined by 1 of the following

methods:

(i) The customer’s annual energy consumption, measured in kWh, during the

previous 12-month period.

Page 41

Courtesy of Michigan Administrative Rules

(ii) If there is no data, incomplete data, or incorrect data for the customer’s energy

consumption or the customer is making changes on-site that will affect total

consumption, the electric utility or alternative electric supplier and the customer shall

mutually agree on a method to determine the customer’s electric consumption.

(c) A net metering or distributed generation customer using an energy storage

device in conjunction with an eligible electric generator shall not design or operate the

energy storage device in a manner that results in the customer’s electrical output

exceeding 100% of the customer’s electricity consumption for the previous 12 months.

The addition of an energy storage device to an existing approved legacy net metering

program system or distributed generation program system is considered a material

modification. The electric utility interconnection procedures must include details

describing how energy storage equipment may be integrated into an existing legacy net

metering program system without impacting the 10-year grandfathering period or

participation in the distributed generation program.

(8) An applicant shall notify the electric utility of plans for any material

modification to the project. An applicant shall re-apply for interconnection pursuant to

part 2 of these rules, R 460.911 to R 460.992, and submit revised legacy net metering

program or distributed generation program application forms and associated fees. An

applicant may be eligible to continue participation in the legacy net metering program or

distributed generation program when a material modification is made to a customer’s

previously approved system and it does not violate the requirements of subrule (7) of this

rule or R 460.1026. An applicant shall not begin any material modification to the project

until the electric utility has approved the revised application, including any necessary

system impact study or facilities study. The application must be processed pursuant to

part 2 of these rules, R 460.911 to R 460.992.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.1004 Legacy net metering program application and fees.

Rule 104. (1) An electric utility or alternative electric supplier may use an online

legacy net metering program application process. An electric utility or alternative

electric supplier not using an online application process, may utilize a uniform legacy net

metering program application form which must be approved by the commission. An

electric utility’s legacy net metering program application may be combined with an

electric utility’s interconnection application.

(2) A customer taking retail electric service from an electric utility and applying to

participate in the legacy net metering program shall concurrently submit a completed

legacy net metering program application and interconnection application or indicate on

the legacy net metering program application the date that the customer applied for

interconnection with the electric utility and, if applicable, the date the customer received

authorization to operate in parallel pursuant to R 460.968. All of the following

requirements apply:

(a) Where a legacy net metering program application is accompanied by an

associated interconnection application, an electric utility shall complete its review of the

legacy net metering program application in parallel with processing the interconnection

Page 42

Courtesy of Michigan Administrative Rules

application pursuant to part 2 of these rules, R 460.911 to R 460.992, pursuant to both of

the following:

(i) Combined with the notification of interconnection application completeness and

conformance pursuant to R 460.936, the electric utility shall notify the customer whether

the legacy net metering program application is accepted, and provide an opportunity for

the customer to resolve any application deficiencies pursuant to the timelines in R

460.936(7)(b) or withdraw the application, or the electric utility may consider the legacy

net metering program application withdrawn without refund of the application fees.

(ii) While processing the interconnection application, which may include, but is not

limited to, R 460.946 fast track initial review, the electric utility shall determine whether

the appropriate meter or meters, is installed for the legacy net metering program.

(b) When a legacy net metering program application is filed with an already in-

progress interconnection application, the utility may process the legacy net metering

application in parallel with the interconnection application pursuant to part 2 of these

rules, R 460.911 to R 460.992, and subdivision (a) of this subrule, if practicable, or adopt

the review process pursuant to subdivision (c) of this subrule.

(c) When a legacy net metering program application is filed with an in-progress

interconnection application and the electric utility determines it is not practicable to

process the legacy net metering program application in parallel with the interconnection

application, or when the legacy net metering application is filed subsequent to the

customer receiving authorization to operate its eligible generator in parallel pursuant to R

460.968, the electric utility shall process the legacy net metering program application

pursuant to both of the following:

(i) The electric utility shall review the legacy net metering program application and

determine whether to accept the application pursuant to the timelines in R 460.936(6) and

(7) within 10 business days. The timelines in R 460.936(7)(a) apply to electric utility

notifications. The electric utility shall provide the customer an opportunity to resolve any

application deficiencies pursuant to R 460.936(7)(b). If the customer fails to remedy the

deficiency within the timelines pursuant to R. 460.936(7)(b), the electric utility may

consider the legacy net metering application withdrawn without refund of the application

fees.

(ii) Within 10 business days of notifying the customer that the legacy net metering

application has been accepted, the electric utility shall determine whether the appropriate

meter is installed for the legacy net metering program.

(d) If a customer approved for participation in the legacy net metering program

requires a new or additional meter or meters, the electric utility shall arrange with the

customer to install the meter or meters at a mutually agreed upon time.

(e) The electric utility shall complete changes to the customer’s account to permit

the legacy net metering program credit to be applied to the account no more than 10

business days after the necessary meter is installed and all necessary steps in R 460.966

are completed.

(3) A customer taking retail electric service from an alternative electric supplier

shall submit a completed legacy net metering program application to the alternative

electric supplier and provide a copy to the electric utility that provides distribution

service. The following requirements apply:

Page 43

Courtesy of Michigan Administrative Rules

(a) The electric utility shall process the legacy net metering program application

according to the applicable timelines in subrule (2)(a) through (d) of this rule.

(b) The electric utility shall notify the alternative electric supplier when it has

provided the applicant authorization to operate the eligible electric generator in parallel

pursuant to R 460.968 and, if applicable, that installation of the appropriate meter or

meters is completed.

(c) Within 10 business days of the electric utility’s notification, the alternative

electric supplier shall complete changes to the applicant's account to permit the legacy net

metering program credit to be applied to the account.

(4) If a legacy net metering program application is not approved by the alternative

electric supplier, the alternative electric supplier shall notify the customer and the electric

utility of the reasons for the disapproval. The alternative electric supplier shall provide

the customer an opportunity to remedy the deficiency pursuant to the timelines in R

460.936(7)(b) or withdraw the application. If the customer fails to remedy the deficiency

within the timelines pursuant to R. 460.936(7)(b), the alternative electric supplier and

electric utility may consider the legacy net metering application withdrawn without

refund of the application fees.

(5) If a customer’s application for the legacy net metering program is approved, the

customer shall have a completed and approved installation within 6 months from the date

the customer’s application is considered complete, or the electric utility or alternative

electric supplier may terminate the application without refund and shall have no further

responsibility with respect to the application.

(6) Customers participating in a legacy net metering program approved by the

commission before the commission establishes a tariff pursuant to section 6a(14) of 1939

PA 3, MCL 460.6a, may elect to continue to receive service under the terms and

conditions of that program for up to 10 years from the date of initial enrollment.

(7) The legacy net metering program application fee for electric utilities and

alternative electric suppliers may not exceed $50. The fee must be specified on the

electric utility’s legacy net metering tariff sheet or in the alternative electric supplier's

legacy net metering program plan.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.1006 Distributed generation program application and fees.

Rule 106. (1) An electric utility or alternative electric supplier may use an online

distributed generation program application process. An electric utility or alternative

electric supplier not using an online application process may utilize a uniform distributed

generation program application form that must be approved by the commission. An

electric utility’s distributed generation program application may be combined with an

electric utility’s interconnection application.

(2) A customer taking retail electric service from an electric utility and applying to

participate in the distributed generation program shall concurrently submit a completed

distributed generation program application and interconnection application or indicate on

the distributed generation program application the date that the customer applied for

interconnection with the electric utility and, if applicable, the date the customer received

Page 44

Courtesy of Michigan Administrative Rules

authorization to operate in parallel pursuant to R 460.968. All of the following

requirements apply:

(a) When a distributed generation program application is accompanied by an

associated interconnection application, an electric utility may complete its review of the

distributed generation program application before, during, or after processing the

interconnection application pursuant to part 2 of these rules, R 460.911 to R 460.992.

Both of the following requirements apply:

(i) Combined with the notification of interconnection application completeness and

conformance pursuant to R 460.936, an electric utility shall notify the customer whether

the distributed generation program application is accepted, and provide an opportunity for

the customer to remedy any application deficiencies pursuant to the timelines in R

460.936(7)(b) or withdraw the application. If the customer fails to remedy the application

deficiencies within the timelines in R 460.936(7)(b), the electric utility may consider the

distributed generation program application withdrawn without refund of the application

fees.

(ii) While processing the interconnection application, which may include, but is not

limited to, R 460.946 fast track initial review, the electric utility shall determine whether

the appropriate meter is installed for the distributed generation program.

(b) If a distributed generation program application is filed with an already in-

progress interconnection application, the electric utility may process the distributed

generation program application in parallel with the interconnection application pursuant

to part 2 of these rules, R 460.911 to R 460.992, subdivision (2) of this subrule, if

practicable, or adopt the review process pursuant to subdivision (c) of this subrule.

(c) If a distributed generation program application is filed with an in-progress

interconnection application and the electric utility determines it is not practicable to

process the distributed generation program application in parallel with the

interconnection application or the distributed generation application is filed subsequent to

the customer receiving authorization to operate its eligible generator in parallel pursuant

to R 460.968, the electric utility shall process the distributed generation program

application pursuant to all of the following:

(i) The electric utility has 10 business days to review the distributed generation

program application and determine whether to accept the application pursuant to the

timelines in R 460.936(6) and (7). The timelines in R 460.936(7)(a) apply to utility

notifications. The electric utility shall provide the customer an opportunity to remedy any

application deficiencies pursuant to R 460.936(7)(b). If the customer fails to remedy the

application deficiencies within the timelines in R 460.936(7)(b), the electric utility may

consider the distributed generation program application withdrawn without refund of the

application fees.

(ii) Within 10 business days of providing notification to the customer that the

distributed generation program application has been accepted, the electric utility shall

determine whether the appropriate meter, or meters, is installed for the distributed

generation program.

(d) If a customer approved for participation in the distributed generation program

requires a new or additional meter or meters, the electric utility shall arrange with the

customer to install the meter or meters at a mutually agreed upon time.

Page 45

Courtesy of Michigan Administrative Rules

(e) The electric utility shall complete changes to the customer’s account to permit

distributed generation program credit to be applied to the account no more than 10

business days after the necessary meter is installed and all necessary steps in R 460.966

are completed.

(3) A customer taking retail electric service from an alternative electric supplier

shall submit a completed distributed generation program application to the alternative

electric supplier and provide a copy to the electric utility that provides distribution

service. All of the following requirements apply:

(a) The alternative electric supplier shall process the distributed generation program

application according to the applicable timelines in subrule (2)(a) through (d) of this rule.

(b) The electric utility shall notify the alternative electric supplier when it has

provided the applicant authorization to operate the eligible electric generator in parallel

pursuant to R 460.968 and, if applicable, that installation of the appropriate meter or

meters is completed.

(c) Within 10 business days of the electric utility’s notification, the alternative

electric supplier shall complete changes to the applicant's account to permit distributed

generation program credit to be applied to the account.

(4) If a distributed generation program application is not approved by the alternative

electric supplier, the alternative electric supplier shall notify the customer and the electric

utility of the reasons for the disapproval. The alternative electric supplier shall provide

the customer an opportunity to remedy the deficiency pursuant to the timelines in R

460.936(7)(b) or withdraw the application. If the customer fails to remedy the application

deficiencies within the timelines in R 460.936(7)(b), the alternative electric supplier and

electric utility may consider the distributed generation program application withdrawn

without refund of the application fees.

(5) If a customer’s distributed generation program application is approved, the

customer shall have a completed and approved installation within 6 months from the date

the customer’s application is considered complete, or the electric utility or alternative

electric supplier may consider the application withdrawn without refund and shall have

no further responsibility with respect to the application.

(6) The distributed generation program application fee for electric utilities and

alternative electric suppliers shall not exceed $50. The electric utility shall specify the fee

on the electric utility’s distributed generation program tariff sheet or in the alternative

electric supplier’s distributed generation program plan.

(7) The customer shall pay all interconnection costs pursuant to part 2 of these rules,

R 460.911 to R 460.992, which include all electric utility costs associated with the

customer’s interconnection that are not a distributed generation program application fee,

excluding meter costs as described in R 460.1012 and R 460.1014.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.1008 Legacy net metering program and distributed generation program

size.

Rule 108. (1) If an electric utility or alternative electric supplier reaches the program

sizes as defined in section 173(3) of the clean and renewable energy and energy waste

reduction act, 2008 PA 295, MCL 460.1173, or a voluntarily expanded program above

Page 46

Courtesy of Michigan Administrative Rules

the requirements defined in section 173(3) of the clean and renewable energy and energy

waste reduction act, 2008 PA 295, MCL 460.1173, as determined by combining both the

distributed generation program and the legacy net metering program customer

enrollments, the electric utility or alternative electric supplier shall notify the

commission.

(2) The electric utility or alternative electric supplier shall notify the commission of

its plans to either close the program to new applicants or expand the program.

(3) The electric utility shall file corresponding revised legacy net metering program

or distributed generation program tariff sheets.

(4) The alternative electric supplier shall file a revised legacy net metering program

plan or distributed generation program plan.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.1010 Generation and legacy net metering program or distributed

generation program equipment.

Rule 110. New legacy net metering program or distributed generation program

equipment and its installation must meet all current local and state electric and

construction code requirements, and other standards as specified in part 2 of these rules,

R 460.911 to R 460.992.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.1012 Meters for legacy net metering program.

Rule 112. (1) For a customer with a generation system capable of generating 20

kWac or less, an electric utility may determine the customer’s net usage using the

customer’s existing meter if it is capable of reverse registration or may install a single

meter with separate registers measuring power flow in each direction. If the electric

utility uses the customer’s existing meter, the electric utility shall test and calibrate the

meter to assure accuracy in both directions. If the customer’s meter is not capable of

reverse registration and if meter upgrades or modifications are required, the following

apply:

(a) An electric utility serving 1,000,000 or more customers in this state shall

provide a meter or meters capable of measuring the flow of energy in both directions at

no additional charge to the legacy net metering program customer. The cost of the meter

or meter modification is considered a cost of operating the legacy net metering program.

(b) An electric utility serving fewer than 1,000,000 customers in this state shall

provide a meter or meters capable of measuring the flow of energy in both directions to

customers at cost. Only the incremental cost above that for the meter provided by the

electric utility to similarly situated non-generating customers shall be paid by the eligible

customer.

(c) An electric utility shall provide a generator meter, if requested by the customer,

at cost.

(2) For a customer with a generation system capable of generating more than 20

kWac and not more than 150 kWac, the electric utility shall utilize a meter or meters

Page 47

Courtesy of Michigan Administrative Rules

capable of measuring the flow of energy in both directions and the generator output. If

meter upgrades are necessary to provide this functionality, all of the following apply:

(a) An electric utility serving 1,000,000 or more customers in this state shall

provide a meter or meters capable of measuring the flow of energy in both directions at

no additional charge to a legacy net metering program customer. The cost of the meter or

meters is considered a cost of operating the legacy net metering program.

(b) An electric utility serving fewer than 1,000,000 customers in this state shall

provide a meter or meters capable of measuring the flow of energy in both directions to

customers at cost. Only the incremental cost above that for meters provided by the

electric utility to similarly situated non-generating customers shall be paid by the eligible

customer.

(c) An electric utility shall provide a generator meter. The cost of the meter is

considered a cost of operating the legacy net metering program.

(3) For a customer with a generation system capable of generating more than 150

kWac, the electric utility shall utilize a meter or meters capable of measuring the flow of

energy in both directions and the generator output. If meter upgrades are necessary to

provide this functionality, the customer shall pay the cost of providing any new meters.

(4) An electric utility deploying advanced metering infrastructure shall not charge

the cost of advanced meters to a legacy net metering program participant or the legacy

net metering program.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.1014 Meters for distributed generation program.

Rule 114. (1) For a customer with a generation system capable of generating 20

kWac or less, an electric utility shall determine the customer’s power flow in each

direction using the customer's existing meter if it is capable of measuring and recording

power flow in each direction. If the customer’s meter is not capable of measuring and

recording the customer’s power flow in each direction and if meter upgrades or

modifications are required, all of the following apply:

(a) An electric utility serving 1,000,000 or more customers in this state shall

provide a meter or meters capable of measuring and recording the customer’s power flow

in each direction at no additional charge to the distributed generation program customer.

The cost of the meter or meter modification is considered a cost of operating the

distributed generation program.

(b) An electric utility serving fewer than 1,000,000 customers in this state shall

provide a meter or meters capable of measuring and recording the power flow in each

direction to customers at cost. Only the incremental cost above the cost for the meter

provided by the electric utility to similarly situated non-generating customers shall be

paid by the eligible customer.

(c) An electric utility shall provide a generator meter at cost, if requested by the

customer.

(2) For a customer with a generation system capable of generating more than 20

kWac and not more than 150 kWac, an electric utility shall utilize a meter or meters

capable of measuring and recording power flow in each direction and the generator

output. If the customer’s meter is not capable of measuring and recording the customer’s

Page 48

Courtesy of Michigan Administrative Rules

power flow in each direction along with the generator output, and if meter upgrades or

modifications are required, all of the following apply:

(a) An electric utility serving 1,000,000 or more customers in this state shall

provide a meter or meters capable of measuring the flow of energy in both directions at

no additional charge to a distributed generation program customer. If the electric utility

provides the upgraded meter at no additional charge to the customer, the cost of the meter

is considered a cost of operating the distributed generation program.

(b) An electric utility serving fewer than 1,000,000 customers in this state shall

provide a meter or meters capable of measuring the flow of energy in both directions to

customers at cost. Only the incremental cost above the cost for the meter provided by the

electric utility to similarly situated non-generating customers shall be paid by the eligible

customer.

(c) An electric utility shall provide a generator meter. The cost of the meter shall be

considered a cost of operating the distributed generation program.

(3) For a customer with a methane digester generation system capable of generating

more than 150 kWac, an electric utility shall utilize a meter or meters capable of

measuring the flow of energy in both directions and the generator output. If meter

upgrades are necessary to provide such functionality, the customer shall pay the cost of

providing any new meters.

(4) An electric utility deploying advanced metering infrastructure shall not charge

the cost of advanced meters to a distributed generation program customer or the

distributed generation program.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.1016 Billing and credit for legacy net metering program customers taking

service under true net metering.

Rule 116. (1) Legacy net metering program customers with a system capable of

generating 20 kWac or less qualify for true net metering. For customers qualifying for

true net metering, the net of the bidirectional flow of kWh across the customer

interconnection with the electric utility distribution system during the billing period or

during each time-of-use pricing period within the billing period, including excess

generation, shall be credited at the full retail rate.

(2) The credit for excess generation, if any, shall appear on the next bill. Any excess

credit not used to offset current charges must be carried forward for use in subsequent

billing periods.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.1018 Billing and credit for legacy net metering program customers taking

service under modified net metering.

Rule 118. (1) Legacy net metering program customers with a system capable of

generating more than 20 kWac qualify for modified net metering. A negative net metered

quantity during the billing period or during each time-of-use pricing period within the

billing period reflects net excess generation for which the customer is entitled to receive

Page 49

Courtesy of Michigan Administrative Rules

credit. Standby charges for customers on an energy rate schedule must equal the retail

distribution charge applied to the imputed customer usage during the billing period. The

imputed customer usage is calculated as the sum of the metered on-site generation and

the net of the bidirectional flow of power across the customer interconnection during the

billing period. The commission shall establish standby charges for customers on demand-

based rate schedules that provide an equivalent contribution to electric utility system

costs. Standby charges may not be applied to customers with systems capable of

generating 150 kWac or less.

(2) The credit for excess generation must appear on the next bill. Any excess kWh

not used to offset current charges must be carried forward for use in subsequent billing

periods.

(3) A customer qualifying for modified net metering shall not have legacy net

metering program credits applied to distribution charges.

(4) The credit per kWh for kWh delivered into the electric utility’s distribution

system

must be either of the following as determined by the commission:

(a) The monthly average real-time locational marginal price for energy at the

commercial pricing node within the electric utility’s distribution service territory or for a

legacy net metering program customer on a time-based rate schedule, the monthly

average real time locational marginal price for energy at the commercial pricing node

within the electric utility’s distribution service territory during the time-of-use pricing

period.

(b) The electric utility’s or alternative electric supplier’s power supply component,

excluding transmission charges, of the full retail rate during the billing period or time-of-

use pricing period.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.1020 Billing and credit for distributed generation program customers.

Rule 120. As part of an electric utility’s rate case filed after June 1, 2018, the

commission shall approve a tariff for a distributed generation program under the clean

and renewable energy and energy waste reduction act, 2008 PA 295, MCL 460.1001 to

460.1211. A tariff established under this rule does not apply to customers participating in

a legacy net metering program under the clean and renewable energy and energy waste

reduction act, 2008 PA 295, MCL 460.1001 to 460.1211, before the date that the

commission establishes a tariff under this rule, who continue to participate in the program

at their current site or facility, as described by R 460.1026.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.1022 Renewable energy credits.

Rule 122. (1) An eligible electric generator shall own any renewable energy credits

granted for electricity generated under the legacy net metering program and distributed

generation program.

Page 50

Courtesy of Michigan Administrative Rules

(2) An electric utility may purchase or trade renewable energy credits from a legacy

net metering program or distributed generation program customer if agreed to by the

customer.

(3) The commission may develop a program for aggregating renewable energy

credits from legacy net metering program and distributed generation program customers.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.1024 Penalties.

Rule 124. Upon a complaint or on the commission’s own motion, if the commission

finds after notice and hearing that an electric utility has not complied with a provision or

order issued under part 5 of the clean and renewable energy and energy waste reduction

act, 2008 PA 295, MCL 460.1171 to 460.1185, the commission shall order remedies and

penalties as necessary to make whole a customer or other person who has suffered

damages as a result of the violation.

History: 2023 MR 8, Eff. April 25, 2023.

R 460.1026 Legacy net metering grandfathering clause.

Rule 126. A customer participating in a legacy net metering program approved by

the commission before the commission establishes the initial distributed generation

program tariff pursuant to R 460.1020 may elect to continue to receive service under the

terms and conditions of that program for up to 10 years from the date of initial

enrollment. “Initial enrollment,” as used in this rule, means the date a customer or site

initially enrolled in a legacy net metering program as described in the electric utility’s

tariff. A customer participating in a legacy net metering program who increases the

nameplate rating of its generation system after the effective date of an electric utility’s

distributed generation program tariff is no longer eligible to participate in the legacy net

metering program.

History: 2023 MR 8, Eff. April 25, 2023.

Page 51

Courtesy of Michigan Administrative Rules