Federal Interconnection Standards: Putting DG in a Box

Is FERC overstepping its jurisdiction and attempting to force a standard into a one-size-fits-all category?

Few industry stakeholders would argue the benefits of clear, concise universal standards for interconnecting distributed generation (DG) to electric utility grids. In fact, since PURPA (the Public Utility Regulatory Policy Act) was adopted in 1978 to promote alternative energy sources and diversify the electric power industry, numerous qualifying facilities (QFs) have been successfully integrated into utility grids by adhering to rules mandated by FERC and state commissions. Many of these QFs are interconnected directly to transmission grids, where FERC's jurisdiction falls squarely within Order 888. However, FERC has raised its jurisdictional bar to establish rules for interconnecting small DG facilities of 20 MW or less-including distribution previously in the domain of state regulators.

Despite the benefits of uniformity and consistency that a national standard for DG interconnections would provide, FERC's approach may have several potential shortcomings: