Authority: IC 8-1-1-3; IC 8-1-2.4

Affected: IC 8-1-2

Sec. 8. (a) Each investor-owned electric utility shall adopt a Level 3 interconnection review procedure. The utility shall use the Level 3 review procedure for an application to interconnect a customer facility that:

(1) is connected to its distribution system; and

(2) does not meet the requirements of section 6 or 7 of this rule.

(b) The utility shall do the following:

(1) Conduct an initial review of the application.

(2) Offer the applicant the opportunity to meet with utility staff to discuss the application.

(c) The utility shall provide an impact study agreement to the applicant, which includes a good faith estimate of the cost for an impact study to be performed by the utility.

(d) If the proposed interconnection may affect electric transmission or delivery systems other than those controlled by the utility, operators of these systems may require additional studies to determine the impact of the interconnection on these systems. The utility shall coordinate the studies of other operators, but not be responsible for their timing. The applicant is responsible for the costs of any additional studies required by other affected system operators. The studies shall be conducted only after the applicant has provided written authorization.

(e) After the applicant has executed the impact study agreement and paid the utility the amount of the good faith estimate required under subsection (c), the utility shall conduct the impact study and notify the applicant of the results as follows:

(1) If the impact study indicates that only insubstantial modifications to the utility's electric distribution system are necessary to accommodate the proposed interconnection, the utility shall send the applicant an interconnection agreement that details the following:

(A) The scope of the necessary modifications.

(B) An estimate of their cost.

(2) If the impact study indicates that substantial modifications to the utility's electric distribution system are necessary to accommodate the proposed interconnection, the utility shall do the following:

(A) Provide a good faith estimate of the cost of the modifications.

(B) Offer to conduct a facilities study at the applicant's expense, which will identify the types and cost of equipment needed to safely interconnect the applicant's customer facility.

(f) If the applicant requests a facilities study under subsection (e)(2), the utility shall provide a facilities study agreement. The facilities study agreement describes the work to be undertaken in the facilities study and includes a good faith estimate of the cost to the applicant for completion of the study. On execution by the applicant of the facilities study agreement, the utility shall conduct a facilities study, which must identify the following:

(1) The facilities necessary to safely interconnect the customer facility with the utility's electric distribution system.

(2) The cost of those facilities.

(3) The time required to build and install those facilities.

(g) On completion of the facilities study, the utility shall provide the applicant with the results of the study and an executable interconnection agreement. The agreement must list the following:

(1) The conditions and facilities necessary to safely interconnect the customer facility with the utility's electric distribution system.

(2) The cost of those facilities.

(3) The time required to build and install those facilities.

(h) If the applicant wishes to interconnect, the applicant shall do the following:

(1) Execute the interconnection agreement.

(2) Provide a deposit of the cost of the facilities identified in the facilities study.

(3) Complete installation of the customer facility.

(4) Agree to pay the utility the amount required for the facilities needed to interconnect as identified in the facilities study.

(i) Within fifteen (15) business days after notice from the applicant that the customer facility has been installed, the utility shall do the following:

(1) Inspect the customer facility.

(2) Arrange to witness any commissioning tests required under the Institute of Electrical and Electronic Engineers 1547-2018, Standard for Interconnection and Interoperability of Distributed Energy Resources with Associated Electric Power Systems Interfaces.

The utility and applicant shall select a date by mutual agreement for the utility to witness commissioning tests.

(j) Provided the customer facility passes the required commissioning tests satisfactorily, the utility shall notify the applicant in writing, within five (5) business days after the tests, of one (1) of the following:

(1) The interconnection is approved and the customer facility may begin operation.

(2) The facilities study identified necessary construction that has not been completed, the date when the construction will be completed, and the date when the customer facility may begin operation.

(k) If the commissioning tests are not satisfactory, the customer facility shall repair or replace the unsatisfactory equipment and reschedule a commissioning test under subsection (i).

(Indiana Utility Regulatory Commission; 170 IAC 4-4.3-8; filed Mar 6, 2006, 9:45 a.m.: 29 IR 2175; 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)