FERC Issues Rule Eliminating Exemptions For Wind Generators From Reactive Power Requirements

On June 16, 2016, FERC revised the pro forma Large Generator Interconnection Agreement ("LGIA") and the pro forma Small Generator Interconnection Agreement ("SGIA") to require wind generators to design their facilities to be capable of providing reactive power at their points of interconnection as a condition of interconnection. As a result, going forward all newly interconnecting non-synchronous generators, including wind generators, must be able to provide reactive power as a condition of interconnection.

The pro forma LGIA and pro forma SGIA have historically required interconnecting generators to design their facilities to provide reactive power at their points of interconnection as a condition of interconnection. However, prior to FERC's recent revisions, wind generators were exempt from this requirement absent a study finding that the provision of reactive power was necessary to maintain safety or reliability. FERC decided to revisit this exemption based upon