FERC just finalized new PURPA regulations that significantly change how utilities handle small generator interconnections. The one-mile rule is being modified, and qualifying facility status is getting more restrictive for solar installations over 5 MW. Here in South Carolina, Santee Cooper and Duke Energy are already updating their interconnection procedures. Has anyone dealt with QF applications under the new rules yet?
New PURPA Rules - Small Generator Impacts
George, we're seeing similar changes with Alabama Power. They've tightened their net metering program for commercial customers and are requiring additional studies for anything over 1 MW. The new interconnection fees are substantial - $15,000 for initial screening plus $25 per kW for facilities over 100 kW. For a 2 MW solar project, that's $65,000 in fees before you even start construction.
Albert, Georgia Power implemented similar fee structures last year. But here's the thing - customers who got their applications in before the rule changes were grandfathered under the old procedures. I helped three clients submit applications in December 2022 just to preserve their rights under the previous interconnection terms. Saved them approximately $85,000 in combined fees and study costs.
Up in Michigan, Consumers Energy is taking a completely different approach. They're actually streamlining the process for distributed generation under 500 kW but making it much more difficult for larger installations. The sweet spot seems to be multiple smaller installations rather than one large project. I've got a manufacturing client planning four separate 400 kW arrays instead of one 1.6 MW system to avoid the enhanced study requirements.