Ind. Admin. Code tit. 170, r. 4-4.3-7 – Level 2 interconnection review

Sec. 7. (a) Each investor-owned electric utility shall adopt a Level 2 interconnection review procedure. The utility shall use the Level 2 review procedure for an application to interconnect a customer facility that:

(1) has a nameplate capacity of not more than two (2) megawatts; and

(2) is certified in accordance with section 5 of this rule.

(b) For a customer facility described in subsection (a), the utility shall approve interconnection under the Level 2 review if the applicable requirements in subsections (c) through (o) are met. A utility may not impose additional requirements not specifically authorized under this section.

(c) If a customer facility is to be connected to a radial distribution circuit, the aggregate generation nameplate capacity connected to the circuit, including the proposed nameplate capacity, may not exceed fifteen percent (15%) of the line section annual peak load as most recently measured or estimated based on the most recently measured circuit load at the substation.

(d) The aggregate generation capacity on the distribution circuit to which the customer facility will interconnect, including its capacity, may not contribute more than ten percent (10%) to the circuit's maximum fault current at the point where the primary level that is nearest the proposed point of common coupling.

(e) If a customer facility is to be connected to a single-phase shared secondary, the aggregate generation capacity connected to the shared secondary, including the proposed capacity, may not exceed the lesser of twenty (20) kVA or the nameplate rating of the service transformer.

(f) If a single-phase customer facility is to be interconnected on a center tap neutral of a two hundred forty (240) volt service, its addition will not create an imbalance between the two (2) sides of the two hundred forty (240) volt service more than twenty percent (20%) of the nameplate rating of the service transformer.

(g) The aggregate generation capacity on the distribution circuit to which the customer facility will interconnect, including its capacity, may not cause any:

(1) distribution protective equipment; or

(2) customer equipment on the distribution system;

to exceed ninety percent (90%) of the short circuit interrupting capability of the equipment. In addition, a customer facility may not be connected to a circuit that already exceeds ninety percent (90%) of the short circuit interrupting capability.

(h) If there are known or posted transient stability limits to generating units located in the general electrical vicinity of the proposed point of common coupling, for example, three (3) or four (4) transmission voltage level busses, the aggregate generation capacity, including the proposed facility, connected to the distribution low voltage side of the substation transformer feeding the distribution circuit containing the point of common coupling may not exceed ten (10) megawatts.

(i) If a customer facility is to be connected to three-phase, three (3) wire primary utility distribution lines, a three-phase or single-phase generator must be connected phase to phase.

(j) If a customer facility is to be connected to three-phase, four (4) wire primary utility distribution lines, the generator appears to the primary utility distribution line as an effectively grounded source.

(k) The customer facility point of common coupling may not be on a transmission line.

(l) If a customer facility is to be connected to the load side of spot network protectors, the proposed facility shall:

(1) use an inverter-based equipment package; and

(2) together with the aggregated other inverter-based generation, not exceed the smaller of five percent (5%) of a spot network's maximum load or fifty (50) kilowatts.

(m) If a customer facility is to be connected to any network, the proposed facility shall use a protective scheme that will ensure that its current flow will not affect the network protective devices, including reverse power relays or a comparable function. Synchronous customer facilities may not be interconnected to a secondary network.

(n) If a customer facility that:

(1) is an induction generator; or

(2) uses inverter-based protective functions;

both of which include reverse power relays functions, the proposed facility, in aggregate with other generation interconnected on the load side of the network protective devices, will not exceed the lesser of ten percent (10%) of the minimum load on the network or fifty (50) kilowatts.

(o) The customer facility may not violate the applicable provisions of the Institute of Electrical and Electronic Engineers (IEEE) 1547-2018, Standard for Interconnection and Interoperability of Distributed Energy Resources with Associated Electric Power Systems Interfaces, as identified by the utility.

(p) The utility shall notify the applicant within ten (10) business days after receiving an application for Level 2 interconnection review as to whether the application is complete. If the application is incomplete, the notification must include a list detailing the information needed to complete the application.

(q) Within fifteen (15) business days after the utility notifies the applicant that the application is complete, the investor-owned electric utility shall perform an initial review to determine if the applicable requirements of subsections (c) through (o) are met. During the initial review the utility may, at its own expense, conduct any studies or tests it deems necessary to evaluate the proposed interconnection. The initial review shall result in one (1) of the following determinations:

(1) The customer facility meets the applicable requirements in subsections (c) through (o). In this case, the utility shall:

(A) notify the applicant that the interconnection will be finally approved on completion of the process set forth in subsections (r) through (t); and

(B) within ten (10) business days after this notice, provide the applicant with an executable interconnection agreement.

(2) The customer facility has failed to meet at least one (1) of the applicable requirements in subsections (c) through (o); however, the utility has determined that the customer facility can be interconnected consistent with safety, reliability, and power quality. In this case, the utility shall:

(A) notify the applicant that the interconnection will be finally approved upon completion of the process set forth in subsections (r) through (t); and

(B) within ten (10) business days after this notice, provide the applicant with an executable interconnection agreement.

(3) The customer facility has failed to meet at least one (1) of the applicable requirements in subsections (c) through (o); however, the initial review shows that additional review may enable the utility to determine that the customer facility can be interconnected consistent with safety, reliability, and power quality. In this case, the utility shall:

(A) offer to perform an additional review to determine whether minor modifications to the electrical distribution system would enable the interconnection to be made consistent with safety, reliability, and power quality;

(B) provide to the applicant a nonbinding, good faith estimate of the costs of the additional review or minor modification, or both; and

(4) The customer facility has failed to meet at least one (1) of the applicable requirements of subsections (c) through (o), and the initial review shows that additional review would not enable the utility to determine that the customer facility can be interconnected consistent with safety, reliability, and power quality. In this case, the utility shall:

(A) notify the applicant that the interconnection application has been denied; and

(B) provide an explanation of the reason or reasons for the denial, including a list of additional information or modifications, or both, to the customer's facility that would be required to obtain an approval under Level 2 interconnection procedures.

(r) An applicant that receives an interconnection agreement under subsection (q)(1) or (q)(2) shall do the following:

(1) Execute the agreement.

(2) Return the agreement to the utility at least ten (10) business days before starting operation of the customer facility.

(3) Indicate to the utility the anticipated start date for operation of the customer facility.

(s) The utility may:

(1) require an inspection of a customer facility for compliance with this section before operation; and

(2) require and arrange for witness of commissioning tests, as set forth in IEEE 1547-2018, Standard for Interconnection and Interoperability of Distributed Energy Resources with Associated Electric Power Systems Interfaces.

The utility shall schedule any inspections or tests under this section promptly and within a reasonable time after submittal of the application. The applicant may not begin operating the customer facility until after the inspection and testing is completed.

(t) For an applicant that receives an interconnection agreement under subsection (q)(1) or (q)(2), approval of interconnected operation of the customer facility is conditioned on all the following:

(1) The interconnection has been approved by the electrical code official with jurisdiction over the interconnection.

(2) The utility inspection or witnessing of commissioning tests arranged under subsection (s) is successfully completed.

(3) The planned start date provided by the applicant under subsection (r)(3) has passed.

(u) For an applicant that pays for additional review under subsection (q)(3), within ten (10) business days after payment is received, the utility shall perform any additional review and notify the applicant of the results. If the additional review determines that the customer facility can be interconnected without adversely affecting safety, reliability, and power quality on the completion of utility system modifications, the utility shall provide a cost estimate of the modifications with the results. Within twenty (20) business days after receiving the cost estimate, the applicant will either:

(1) send payment to the utility for the estimated cost; or

(2) notify the utility in writing that it does not wish to proceed with the project.

After payment is received, the utility shall proceed to schedule and complete the required modifications or new construction. Within five (5) business days after the completion of the modifications or new construction, the utility shall provide the applicant with an executable interconnection agreement and notification that the interconnection will be approved on completion of the process set forth in subsections (r) through (t).

(v) If an application for Level 2 interconnection review is denied because it does not meet at least one (1) of the applicable requirements in this section, an applicant may resubmit the application under the Level 3 interconnection review procedure as appropriate.

(Indiana Utility Regulatory Commission; 170 IAC 4-4.3-7; filed Mar 6, 2006, 9:45 a.m.: 29 IR 2173; readopted filed Jul 12, 2012, 2:12 p.m.: 20120808-IR-170120114RFA; readopted filed Aug 2, 2013, 2:16 p.m.: 20130828-IR-170130227RFA; readopted filed Apr 11, 2019, 9:04 a.m.: 20190508-IR-170190136RFA; readopted filed Sep 12, 2025, 11:43 a.m.: 20251001-IR-170240381RFA; filed Jan 16, 2026, 3:25 p.m.: 20260211-IR-170250368FRA)