RIDER 689: EXCESS DISTRIBUTED GENERATION

TO WHOM AVAILABLE

This Rider is subject to Indiana Code chapter 8-1-40 and applies to Rate Schedules identified in Appendix A for Customers installing adequate distributed generation facilities and power supplies. NIPSCO will provide customers with written communication regarding their rights and responsibilities and may request confirmation that generation facilities meet Indiana law requirements.

REQUIREMENTS

Customers receiving Electric Service who have installed an eligible distributed generation energy resource or other renewable energy technologies must meet the Metering Requirements, Distributed Generator System Requirements, and Interconnection Requirements as provided in Rider 679 – Interconnection Standards. Customers must not be eligible for Rider 680 – Net Metering. Eligible customers must be in good standing, with no more than thirty (30) days in arrears and no outstanding legal orders. An interconnection agreement is required before interconnection and service can begin. The facility must be installed, operated, and maintained according to manufacturer's suggested practices for safe, efficient, and reliable operation.

DEFINITIONS

• Distributed Generation: As defined in Ind. Code § 8-1-40-3.
• Excess Distributed Generation: The difference in kWh between electricity supplied by the electricity supplier to a customer with distributed generation and the electricity supplied back to the supplier by the customer, as measured by the customer's meter.
• Inflow (kWh): The meter channel measurement of electricity used by the Customer, net of electricity produced by the Customer.
• Outflow (kWh): The meter channel measurement of electricity produced by the Customer above the electricity used by the Customer.
• DG Billing Credit: Calculated by multiplying Outflow by the Marginal DG Price.
• DG Billing Credit Balance: Excess DG Billing Credit carried forward and applied against future charges.
• Net Metering Approved Participant: A Customer with an approved interconnection application whose facility is not yet installed or operating.
• Net Metering Participation Cap: Participation in the Net Metering Rider is limited to 1.5% of the Company's most recent summer peak load.
• Marginal DG Price: The average hourly real-time price of energy paid by the Company in the MISO market at the NIPS.NIPS commercial pricing node during the most recent calendar year, multiplied by 1.25. This price is updated at least annually.
• Net Metering Queue: A prioritized list for residential, biomass, and non-reserved customer-generator types based on operational date, completed application date, and application approval date.
• Net Metering Operating Participant: A Customer that has installed and has an operating facility interconnected with the Company.
• Net Metering Queue Participant: A Customer that has submitted a complete interconnection application to the Company.
• Premises: A single Tract of Land where a Customer consumes electricity.
• Tract of Land: Any area of land under common ownership or control within a contiguous border.

BILLING

1. During the monthly billing cycle, the Company captures total kWh of Inflow and Outflow as measured by the Customer's meter.
2. Inflow kWh is billed according to the Customer's standard Rate Schedule, including applicable rates and charges (Standard Charges).
3. Outflow kWh (Excess Distributed Generation) is multiplied by the Marginal DG Price to determine the DG Billing Credit.
4. The Customer is billed the monthly Minimum Charge. If the DG Billing Credit exceeds the Standard Charges less the Minimum Charge, the excess is accumulated in a DG Billing Credit Balance.
5. If Standard Charges exceed the DG Billing Credit, any remaining DG Billing Credit Balance is applied until the bill reaches the monthly Minimum Charge or the balance becomes zero.
6. Upon discontinuation of service under this Rider, any unused DG Billing Credit Balance is forfeited and passed back to other customers through the Fuel Cost Adjustment or successor mechanism.

Marginal DG Price: $0.038333/kWh for all Outflow.

METERING REQUIREMENTS

Customers must have a meter capable of separately measuring Inflow and Outflow. If the standard meter is insufficient, the Company will install and maintain a suitable meter at its expense. For Three-Phase service customers, the Company will also install and maintain a meter at its expense. Meter testing is in accordance with IURC Rules (170 IAC 4-1-9).

ELIGIBILITY

Customers eligible for the Net Metering Rider are not eligible for this Rider. Eligibility is determined based on the Company's Net Metering Queue. Specific provisions apply to all customers regarding participation caps and the timing of becoming an Approved Participant. For Residential and biomass customers, specific provisions apply between the effective date of this Rider and June 30, 2022, with conditions related to participation caps and operational status.

GENERAL TERMS AND CONDITIONS

• Customers must enter into a written contract for an initial period of at least one Contract Year, with automatic renewal unless terminated with 60 days' notice.
• Contracts terminate according to Rule 5.8 of the Company Rules.
• Customer conformance with requirements does not convey liability to the Company for damages or injuries arising from the installation or operation of the generator facility.
• The customer's distributed generator facility must continuously meet Distributed Generation requirements as per Ind. Code § 8-1-40-3. Failure to adhere revokes the Rider's applicability.

DISTRIBUTED GENERATION AGREEMENT

This Agreement is between Northern Indiana Public Service Company LLC and the Customer. It outlines the terms and conditions, including the effective date, renewal, and termination clauses. The Company will determine the customer's monthly bill based on Inflow and Outflow kWh, applying the Marginal DG Price for the DG Billing Credit.

QUALIFYING STANDARDS

To be eligible for excess distributed generation, customers must:

• Be in good standing with the Company (not more than 30 days in arrears).
• Operate a solar, wind, or hydro electrical generating facility.
• Ensure the electricity complies with NERC, ReliabilityFirst, and FERC-approved Regional Transmission Organization rules.
• Produce electricity from generators meeting Ind. Code § 8-1-40-3 requirements.
• Have a total nameplate capacity less than or equal to one (1) megawatt (MW).
• Primarily use the distributed generating facility to offset their own electricity requirements.

DISTRIBUTED GENERATION FACILITY ACTUAL INFORMATION

Customers must provide actual information regarding their distributed generation facility, including name, location, type, size, inverter rating, manufacturer, model number, and a description of the electrical installation.

INTERCONNECTION AND DELIVERY POINT

• Interconnection is the physical, parallel connection of a distributed generation facility with a Company distribution facility.
• The delivery point is the first cut-off point on the Company's side of the Company Meter. Title of the Electricity transfers to the Company at this point.

METERING

• If a Company Meter fails to accurately record electricity, deliveries will be estimated by the Company using available evidence.
• Company-owned meters are kept under seal and will not be broken without prior notice to the Customer.
• Meters will be sealed and inspected by the Company or an accredited representative according to IURC rules.
• The Company will read the meter near the end of the billing cycle and provide excess distributed generation metering readings (Inflow and Outflow) to the Customer.

DEFAULTS AND REMEDIES

• If a Customer fails to meet Qualifying Standards or creates an emergency, the Company may disconnect facilities without notice. Reconnection is possible if the issue is remedied.
• If either party breaches the Agreement, the non-breaching party may terminate the Agreement with 30 days' notice if the breach is not cured.

INDEMNIFICATION AND LIMITATION OF LIABILITY

• Customers must maintain homeowners or commercial insurance of at least $100,000 for liability arising from the use of a distributed generation facility. Proof of insurance is required.
• Customers shall indemnify and hold harmless the Company against claims and costs arising from the Customer's Equipment or the Electricity prior to transfer.
• The Company shall indemnify and hold harmless the Customer against claims and costs arising from the Company's Equipment or the Electricity after transfer.
• Neither party is liable for special, punitive, or consequential damages, including loss of profits due to business interruptions.

UNUSUAL EVENTS

Neither party is liable for failure or delay in performance caused by events beyond their reasonable control, unless caused by gross negligence or willful misconduct.

ASSIGNMENT

This Agreement may not be assigned by the Customer without the Company's express written consent. If the Customer sells the electricity-generating facilities, the Agreement terminates on the sale date.

NOTICES

All required notices must be in writing and delivered in person or sent by U.S. registered mail to the addresses provided for the Company and the Customer.

MISCELLANEOUS

• Agreement termination does not affect obligations for deliveries prior to termination.
• If any provision is found unenforceable, the remainder of the Agreement will be enforced to the fullest extent possible.
• Rights and remedies are not exclusive and preserve other available rights and remedies.
• The Agreement is construed and enforced under the laws of the State of Indiana.
• This Agreement is subject to regulatory body approval.
• The Company's General Rules and Regulations Applicable to Electric Service are incorporated into this Agreement.
• The Company may disconnect the Customer's electric system for upgrades or repairs (excluding emergency repairs) with at least seven (7) calendar days' prior notice. Such outages are limited to seven (7) consecutive days and occur no more than twice per calendar year, unless otherwise agreed.