Deposits, Securities and Refunds
SPP, as the Transmission Provider, is required to collect application fees, study deposits and financial securities associated with each individual interconnection request. For each generation interconnection request, SPP collects a $10,000 application deposit in the initial validation phase of the process. The application deposit will be added with any study deposit, and all study costs associated with that particular SPP GI Queue number will be deducted from the total deposit principle balance.
Per SPP Tariff, Attachment V, Section 6.1.1, the required study deposit for the feasibility study, above and beyond the initial application fee, is $10,000. Under Section 7.2, the required study deposit to enter into the PISIS Study ranges from $10,000-$90,000, based on MW capacity being studied. Under Section 8.2, the required study deposit to enter into the DISIS Study ranges from $15,000-$80,000, based on MW capacity being studied.
Effective March 1, 2014, per FERC Docket No. ER14-781, SPP has been conducting the Generator Interconnection Procedures under a revised process to increase GIP process efficiency, decrease future queue backlogs and promote the interconnection of viable generation projects to the grid. Under this newly revised GIP process, additional costs in the form of security payments or milestones have been added. The security deposit for the DISIS or Definitive Interconnection System Impact Study phase is calculated at $1,000 per MW capacity to be studied. The security deposit for the Interconnection Facilities Study phase is calculated at $3,000 per MW capacity to be studied. Only the security deposit may be covered by either cash or letter of credit. You will find more detail regarding the new security deposit requirements under FERC Tariff Attachment V, Section 8.2 and 8.9 respectively.
Beginning March 31, 2015, all engineering study customers who submit deposits and security payments are required to submit to SPP, the Transmission Provider, a current IRS W-9 Form associated with that incorporated business entity submitted the request and an SPP Study Deposit and Refund Disbursement Form to guide SPP on how to handle any principal study deposit refunds or possible accrued interest payments. It is the Interconnection Customer's responsibility to notify SPP of any changes in contact information, project ownership or SPP GI Study Queue assignment changes.
Within 90 days of a Generation Interconnection request reaching a terminal point (Commercial Operation or Withdrawal), SPP will commence the process of closing out the study, reconciling costs, determining if any accrued interest payment obligations exist and then issue refunds. By default, refunds are issued in the form of check payment. SPP must have a current IRS W-9 Form and the SPP Study Deposit and Refund Disbursement Form on file. It is the responsibility of the generation interconnection customer to notify SPP of any changes in contacts or project ownership.