Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc.

Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 DISTRIBUTED RESOURCES TABLE OF CONTENTS Section No. Original Sheet No. . 10 TOC-1

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Item

Sheet No.

1. 2. 3. 4. 5. 6. 7. 8. 9.

Small Distributed Wind Generation Purchase Tariff ............................................................. 10-1 Wind Generation Purchase Agreement ................................................................................ 10-4 Interconnection On-Site Wind Generation ............................................................................ 10-20 Interconnection Agreement................................................................................................... 10-28 Small Distributed Wind Technical Guidelines ....................................................................... 10-31

N N N N N

Distributed Generation Standard Interconnection and Power Purchase Tariff...................... 10-36 N Distributed Generation / Parallel Operations Master Interconnection Agreement................. 10-52 N Interconnection Application and Service Agreement ............................................................ 10-64 N Interconnection Application Process for Generators within the State of Minnesota .............. 10-71 N N N N N N N N N N

10. Distributed Generation Interconnection Study Fee Schedule .............................................. 10-72 11. 10 MW Tariff Detail ............................................................................................................... 10-73 12. Standby Service.................................................................................................................... 10-74 13. Power Purchase Agreement ................................................................................................. 10-76 14. Terms and Conditions........................................................................................................... 10-78 15. Meter Reading and Billing..................................................................................................... 10-80 16. Typical Costs ........................................................................................................................ 10-81 17. Interconnection Process ....................................................................................................... 10-83 18. Interconnection Application................................................................................................... 10-102 19. Engineering Studies.............................................................................................................. 10-111

(Continued on Sheet TOC-2) Date Filed: Docket No. By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06 11-02-05

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 DISTRIBUTED RESOURCES TABLE OF CONTENTS Section No. Original Sheet No. . 10 TOC-2

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Item

Sheet No.

20. Interconnection Agreement................................................................................................... 10-113 21. Operating Agreement............................................................................................................ 10-131 22. Maintenance Agreement....................................................................................................... 10-134 23. Interconnection Requirements .............................................................................................. 10-135 24. Community-Based Energy Development .............................................................................. 10-160

N N N N N

Date Filed: Docket No.

By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

11-02-05

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 SMALL DISTRIBUTED WIND GENERATION PURCHASE TARIFF Section No. 1st Revised Sheet No. 10 1

AVAILABILITY Available to any customers receiving retail electric service from the Company in Minnesota who host a windpowered electric generating facility with nameplate rating of 2 MW or less, to be operated in parallel with Company’s distribution and transmission system. Energy to be purchased by the company must be produced by a wind turbine connected to the Company’s 69 kV and below distribution system pursuant to the MPUC approved distribution interconnection guidelines for parallel operation of customer-owned generation available upon request from the Company. With the Commission’s approval, Company may continue, modify or combine this program with other available distribution generation tariffs. QUALIFICATION 1. Customer’s wind-power electric generating facility is qualified as a distributed generation facility which does not qualify as a Qualifying Facility (QF) under the Public Utility Regulatory Policy Act of 1978 (PURPA) or it qualifies as a Qualifying Facility but the customer elects not to exercise its rights to avoided cost pricing under PURPA. The installed electric energy capacity resulting from purchases under this Tariff will assist in satisfying the Company’s obligations in Minn. Statute 216B.2423. 2. The wind-power electric generating facility must be an operable, permanently installed facility and must be located at the site where by the customer who has retail electric service provided by the Company on the same site. Interconnection of wind generated capacity will be limited to a total of no more than 2 MW of the nameplate capacity rating per distribution feeder line as approved by the Company and conforming with the MPUC approved distribution interconnection guidelines for parallel operation of customer-owned generation.

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3.

CONTRACT Customers, owner(s) and operator(s) must enter into a Commission approved 2 MW power purchase agreement under this program for a term of up to 20 years. Each customer request for program participation under this tariff will be evaluated on a customer specific basis to determine eligibility, system conditions and impact on Company’s distribution and transmission system. The Company will purchase and customer is obligated to sell all the electricity generated by the wind-powered electric generating facility under the contract terms and conditions and price schedule. RATE Payment schedule is based on the lowest offered market price of wind projects valued by the Company which is currently a fixed nominal price of $ 0.033 per kWh of delivered energy for up to a 20-year contract. The price paid represents the total payment for both capacity and energy on a per kWh basis. Once established by contract, the price shall be fixed over the term of the contract.

(Continued on Sheet No. 10-2) Date Filed: Docket No. 11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date: 04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 SMALL DISTRIBUTED WIND GENERATION PURCHASE TARIFF (CONTINUED) Section No. 1st Revised Sheet No. 10 2

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INTERCONNECTION AND METERING The Company will assess interconnection costs on an individual basis. Customer’s proposed wind-powered electric generating facility plan will be reviewed by Company to determine adequacy of the system’s transmission and distribution components. Customer(s), owner(s) and operator(s) shall enter into a MPUC approved interconnection agreement which will provide terms to address the addition, modification, or replacement of any transmission and distribution components made necessary by customer’s wind-power electric generating facility. Customers with wind-powered electric generating facility under this program shall make provision for on-site metering. All energy delivered and sold to Company shall be separately metered from energy purchases from the Company. Customer shall cooperate with and allow Company to install and have access to on-site monitoring equipment for the purposes of gathering wind-powered electric generating facility’s performance data. TERMS AND CONDITIONS OF SERVICE 1. Electric service provided by Company to customer at the same site shall be billed in accordance with the appropriate retail electric rate. 2. The voltage and phase of customer’s generating facility must be consistent with existing retail service configuration and approved by the Company provided in a MPUC approved Interconnection Guidelines for Parallel Operation of Distribution Connected Customer Owned Generation. This program may be available to customers receiving service at distribution voltage (three phase alternating current at 69,000 volts or lower) if customer’s proposed wind-powered electric generating facility, in the Company’s determination, (a) does not adversely affect the normal operation and reliability of the system; (b) does not cast an undue expense on other ratepayers. The MPUC approved Company’s Interconnection Guidelines will be used in determining a list of required interconnection equipment necessary for the specific interconnection requested by the Customer. The costs of this equipment are the responsibility of the Customer unless otherwise stated. The cost of facility changes to the distribution system as a result of the requested interconnection are provided to the Customer, as available during the course of processing the interconnection request. Customers should request a copy of the MPUC approved Company’s Interconnection Guidelines for parallel operation of distribution connected customer-owned generation. The Company will limit the total nameplate capacity of wind-powered electric generating facilities to 2 MW per distribution feeder under this program. Where technically feasible, the Company may allow a slightly greater amount of distributed wind generation facilities on one distribution feeder to accommodate additional projects if, the Company determines there would be no detrimental service quality or expense imposed on other ratepayers. (Continued on Sheet No. 10-3) Date Filed: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07

3.

4.

D

Docket No.

President and CEO of Northern States Power Company E002/GR-05-1428 Order Date:

09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 SMALL DISTRIBUTED WIND GENERATION PURCHASE TARIFF (CONTINUED) Section No. 1st Revised Sheet No. 10 3

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TERMS AND CONDITIONS OF SERVICE (Continued) 5. The Company shall have the right to seek capacity accreditation through its own effort with its affiliated power pool and customer will provide reasonable cooperation.

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6.

The Company shall recover costs associated with these purchases pursuant to provisions of the Fuel Clause Rider, Section 5, page 91 of the Minnesota Electric Rate Book.

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Date Filed:

11-02-05

By: Cynthia L. Lesher

Effective Date:

02-01-07

Docket No.

President and CEO of Northern States Power Company E002/GR-05-1428 Order Date:

09-01-06

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT Section No. 3rd Revised Sheet No. 10 4

WIND GENERATION PURCHASE AGREEMENT This power purchase agreement ("Agreement") is entered into this ____ day of _______________________ ,____ by and between Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy (“Xcel Energy”) and _____________________________, a __________________, ("Seller"). RECITALS 1. Seller has agreed to host a wind-powered electric generating facility (the "Plant") on a site located in _____________County, Minnesota with a nameplate capacity of _______ [greater than 40 and less than 2000] kilowatts to be operated in parallel with NSP's transmission and generation system. NSP wishes to purchase the Capacity and Energy generated by the Plant and to achieve and maintain accreditation of that Capacity and Energy by the Midwest Reliability Organization (MRO) and MAPP or any successor organization and other entities and agencies to which NSP may be obligated by contract or otherwise. NSP is willing to purchase and Seller is willing to sell, all of the Capacity and Net Energy of the Plant, subject to the terms and conditions and at the prices set forth in this Agreement. NOW THEREFORE, in consideration of these premises and the mutual promises set forth below, Seller and NSP agree as follows: AGREEMENT ARTICLE I - DEFINITIONS 1.1 Accredited Capacity: Monthly net capability of the Plant expressed in kW rounded to the nearest 100 kW as defined by the Midwest Reliability Organization (MRO) and MAPP or any successor organization, which is the level of capability for which NSP may obtain credit from the Midwest Reliability Organization (MRO) and MAPP or any successor organization for NSP's Capacity requirements. Accredited Capacity under the agreement is synonymous with Accredited Capability or equivalent concepts under the Midwest Reliability Organization (MRO) and MAPP or any successor organization. Agreement: This contract, including all appendices, for the purchase of Capacity and associated Energy entered into between Seller and NSP as amended by the Parties from time to time in accordance with the Agreement. Capacity: The output potential a machine or system can produce or carry under specified conditions. The capacity of generating equipment is generally expressed in kW or MW. In terms of transmission lines, capacity refers to the maximum power flow a line is capable of carrying under specified conditions. Capacity is also referred to as "capability" in the industry and for the purposes of the Agreement the terms are synonymous. T

2.

3.

1.2

1.3

(Continued on Sheet No. 10-4.1) Date Filed: Docket No. 11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date: 04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT Section No. Original Sheet No. 10 4.1

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ARTICLE I – DEFINITIONS (Continued) L 1.4 Commercial Operation: When 100% (____kW) of the Committed Nameplate Capacity of the Plant is installed and can and does produce and deliver Capacity and Energy to the NSP System associated with 100% of the Committed Nameplate Capacity and Seller has obtained all Permits necessary to authorize that production and delivery. Commercial Operation Date: The first calendar day following a successful demonstration that the Plant has reached Commercial Operation, but in no event earlier than ___________.

1.5

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(Continued on Sheet No. 10-5) Date Filed: Docket No. By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06 11-02-05

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. 1st Revised Sheet No. 10 5

ARTICLE I – DEFINITIONS (Continued) 1.6 Committed Nameplate Capacity: Total maximum designed power output at Rated Wind Speed, expressed in kW, of all installed wind turbines as specified by the equipment manufacturer power curve. Such capacity is that which Seller agrees to construct and maintain in order to sell and deliver Capacity and Energy to NSP pursuant to the Agreement. Contractual Obligations: As to Seller, any provision of any security issued by it or any material agreement, instrument or undertaking to which Seller is a party or by which it or any of its property is bound. Emergency: Any condition or situation which in the sole judgment of either NSP or the Midwest Reliability Organization (MRO) and MAPP or any successor organization (as communicated to NSP) (i) endangers or might endanger life or property or (ii) affects or might affect NSP's ability, or the ability of any participant of the Midwest Reliability Organization (MRO) and MAPP or any successor organization to maintain safe, adequate, and continuous electric service to NSP's customers and/or the customers of any participant of the Midwest Reliability Organization (MRO) and MAPP or any successor organization. Energy: The amount of electricity either used or generated over a period of time; expressed in terms of kilowatt-hour (kWh) or megawatt-hour (MWh). Environmental Law: Any federal, state and local laws including statutes, regulations, rulings, orders, administrative interpretations and other governmental restrictions and requirements relating to the discharge of air pollutants, water pollutants or process waste water or otherwise relating to the environment or hazardous substances as amended from time to time. Environmental Liability: Any and all liability arising under, resulting from or imposed by any Environmental Law. FERC: Federal Energy Regulatory Commission or its successor organization, if any. Final Nonappealable Order: An order from the MPUC or from any other judicial, quasi-judicial, or legislative body for which all rights to seek reconsideration and appeal have been exhausted or the time limits applicable to seeking reconsideration and/or appeal have expired. Financier: Any individual or entity providing money or extending credit (including any Capital Lease) to Seller for (i) the construction, term or permanent financing of the Plant; or (ii) working capital or other ordinary business requirements for the Plant. "Financier" shall not include common trade creditors of Seller. T T T T

1.7

1.8

1.9

1.10

1.11

1.12 1.13

1.14

(Continued on Sheet No. 10-5-1) Date Filed: Docket No. 05-19-08 By: David M. Sparby Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/M-08-568 Order Date: 10-10-08 10-10-08

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 5.1

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ARTICLE I – DEFINITIONS (Continued) 1.15 Governmental Authority: Any nation or government, any state or other political subdivision thereof, whether foreign or domestic, including, without limitation, any municipality, township and county, and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including, without limitation, any corporation or other entity owned or controlled by any of the foregoing. Guaranteed Price: Fixed year-by-year price expressed in dollars per MWh set forth in Appendix A and used as the basis for determining payments by NSP to Seller for the entire Net Energy of the Plant. IEEE: Institute of Electrical and Electronic Engineers or its successor organization, if any. Interconnection: Construction, installation, operation, and maintenance of all Interconnection Facilities. L L

1.16

1.17 1.18

(Continued on Sheet No. 10-6) Date Filed: Docket No. By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company /E002/GR-05-1428 Order Date: 09-01-06 11-02-05

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 6

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1.19

Interconnection Facilities: All the facilities installed for the purpose of interconnecting the Plant to the NSP System, including, but not limited to, transformers and associated equipment, relay and switching equipment, and safety equipment. Interconnection Guidelines for Parallel Operation of Distribution Connected Customer-Owned Generation: MPUC approved Interconnection Guidelines for Parallel Operation of Distribution Connected Customer-Owned Generation. kW: Kilowatt. MAPP Mid-Continent Area Power Pool or its successor organization, if any, MAPP Agreement: The Mid-Continent Area Power Pool Restated Agreement dated January 12, 1996, as amended. MAPP Procedures: Those procedures and guidelines established by MAPP or its committees that are applicable to NSP generation and transmission system operations or the Plant, as amended from time to time. MPUC: Minnesota Public Utilities Commission and its successor agency, if any. MVA: Mega volt amperes. MW: Megawatt. MWh: Megawatt hour. Net Energy: The actual number of MWh generated by the Plant during the period being considered less any generating output in MWh used for the Plant's Station Auxiliary as measured by the meters installed pursuant to Section 3.1 of this Agreement. NSP System: The electric power generation, transmission, substation, and distribution facilities owned, operated, and maintained by NSP, which shall include, without limitation, after construction and installation, the circuit reinforcements, extensions, and associated terminal facility reinforcements or additions required to complete the Interconnection with the Plant.

1.20

1.21 1.22 1.23

1.24

1.25 1.26 1.27 1.28 1.29

1.30

(Continued on Sheet No. 10-6-1) Date Filed: Docket No.: By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06 11-02-05

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 6.1

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ARTICLE I – DEFINITIONS (Continued) 1.31 1.32 1.33 1.34 NSP System Control Center: The facility or facilities in which NSP monitors and controls the NSP System. Outage: A physical state in which all or a portion of the Plant is Unavailable to provide Energy. Parties: NSP and Seller, and their respective successors and permitted assignees.

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L Party: NSP or Seller, and their respective successors and permitted assignees.

(Continued on Sheet No. 10-7) Date Filed: Docket No.: By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company /E002/GR-05-1428 Order Date: 09-01-06 11-02-05

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. 1st Revised Sheet No. 10 7

ARTICLE I – DEFINITIONS (Continued) 1.35 Permits: All state, federal, and local authorizations, certificates, permits, licenses and approvals required by any Governmental Authority for the construction, operation and maintenance of the Plant as set forth in Appendix B. Person: An individual, partnership, corporation (including a business trust), limited liability company, joint stock company, trusts, unincorporated association, joint venture, Governmental Authority, or other entity. Plant: The facility owned by Seller and located on the Site for the generation of wind-powered electricity and delivery of such electricity to NSP. Power Quality Standards: The Power Quality Standards established by NERC, MAPP, NSP, IEEE standards, National Electric Safety Code, the National Electric Code, or their respective successor organizations or codes as they may be amended from time to time and consistent with Prudent Electric Industry Practice. Prudent Electric Industry Practice: Those methods and that equipment, as changed from time to time, that are commonly used and accepted in electrical engineering and operations to operate electric equipment lawfully and with safety, dependability and efficiency, including, but not limited to, the requirements of the National Electric Safety Code, the National Electrical Code, the North American Electric Reliability Council, IEEE Standards, MAPP Procedures, NERC standards and procedures, or their respective successor organizations and any governmental code or regulations. PURPA: The Public Utility Regulatory Policy Act of 1978, as such is amended from time to time, and as implemented by FERC regulations and Minnesota statutes and rules, as amended from time to time. Qualifying Facility or QF: A qualifying facility as defined by PURPA, 16 U.S.C. § 824a-3, and the implementing regulations of FERC, 18 C.F.R. Part 292, and their successor provisions, including Section 713 of the EPAct. Rated Wind Speed: Specified wind speed at which a wind turbine's rated power output is generated. Requirements of Law: Collectively, the certificate of incorporation and bylaws or other organizational or governing documents of Seller or NSP and any material United States or Canadian federal, state or provincial law, treaty, franchise, rule, regulation, order, writ, judgment, injunction, decree, award or determination of any arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon Seller or any of its property or to which Seller or any of its respective properties are subject. Seller: ________________________ or any permitted successor or assignee. T T

1.36

1.37

1.38

1.39

1.40

1.41

1.42 1.43

1.44

(Continued on Sheet No. 10-7.1) Date Filed: Docket No.: 05-19-08 By: David M. Sparby Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/M-08-568 Order Date: 10-10-08 10-10-08

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 7.1

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ARTICLE I – DEFINITIONS (Continued) 1.45 Site: The real property on which the Plant is located, including all related wind easements. The legal description of the Site is set forth in Appendix D and incorporated by reference.

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(Continued on Sheet No. 10-8) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 8

ARTICLE I – DEFINITIONS (Continued) 1.46 1.47 1.48 Station Auxiliary: Energy used by Seller to operate the Plant. Term: The period of time during which the Agreement is in effect. Unavailable: A physical state in which the Plant is not capable of providing Energy or Capacity to the NSP System. ARTICLE II PURCHASE AND SALE 2.1 Term: This Agreement shall be effective upon execution by authorized representatives of both Parties, and shall continue unless otherwise terminated in accordance with its terms until the end of the ____ year after the Commercial Operation Date. NSP's obligation to purchase the Capacity and Net Energy of the Plant shall be effective on the Commercial Operation Date. Sale and Purchase: NSP agrees to purchase the entire Capacity and Net Energy of the Plant during the Term, subject to the terms of the Agreement. Seller agrees to deliver and sell the entire Net Energy from the Plant to NSP for the Term. Seller shall not contract to sell any Energy or Capacity from the Plant to any Person other than NSP for the Term and Seller acknowledges that NSP is entitled to receive all Capacity and Energy from the Plant during the Term. Guaranteed Price: If the Seller proposes to sell energy to NSP, under the wind tariff, NSP shall pay Seller for the Net Energy delivered to NSP based on the rate set forth in the MPUC approved Small Distributed Wind Generation Purchase Tariff. If the Seller chooses to sell energy to NSP, not under the wind tariff, NSP shall pay the seller the rate negotiated between the Seller and NSP. NSP and Seller agree that the Guaranteed Price is intended to compensate Seller for both the Net Energy and Capacity delivered to NSP, and that Seller is not entitled to a separate price or payment for the Capacity of the Plant to which NSP is entitled. Tax Credits: Seller is responsible to apply and qualify for any production tax credits or other assistance, grants or credits which might be available to Seller or the Plant from any Governmental Authority and NSP agrees that Seller is entitled to receive any such credits, assistance, or grants. Seller and NSP agree that the rate set forth in the Small Distributed Wind Generation Purchase Tariff is not subject to adjustment or amendment due to Seller's receipt, or failure to receive, any such credits, assistance or grants, in whole or in part, after the date of this Agreement.

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2.2

2.3

2.4

(Continued on Sheet No. 10-8.1) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 8.1

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ARTICLE I – DEFINITIONS (Continued) 2.5 Committed Nameplate Capacity: Seller agrees that the Committed Nameplate Capacity shall be _____ kW, and that the Committed Nameplate Capacity shall include only capacity from wind turbine generating units. Seller shall limit the actual electrical deliveries from the Plant under the Agreement to no more than ____ MVA

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(Continued on Sheet No. 10-9) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 9

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ARTICLE III METERING AND BILLING 3.1 Metering Requirements: The transfer of electric Capacity and Energy between Seller and NSP shall be measured by metering equipment at the point of Interconnection. Meters shall be provided, installed, owned, maintained and operated by NSP. The metering shall be kept under seal, such seals to be broken only when the meters are to be tested, adjusted, modified, or relocated. In the event that Seller breaks a seal, Seller shall notify NSP as soon as practicable.

3.3

Payment: NSP's payment to Seller for Net Energy and Capacity delivered shall be posted, if by mail, twenty (20) days following the date of the meter reading by NSP. If such due date falls on a weekend or legal holiday, such due date shall be the next working day. Payments posted after the due date shall be considered late and shall bear interest on the unpaid balance at a rate equal to three (3) percent plus the average daily prime rate as determined from the "Money Rates" section of the Midwest Edition of the Wall Street Journal for the days of the late payment period multiplied by the number of days elapsed from and including the day after the due date, to and including the payment date. In the event this index is discontinued or its basis is substantially modified, the Parties shall agree on a substitute equivalent index. Wire Transfer: NSP shall make payment of bills via wire transfer of funds if requested in writing by Seller, at Seller's sole Expense, and if the request contains adequate payment information. NSP shall be entitled to conclusively presume, without any liability whatsoever, that the payment information furnished by Seller (including name, financial institution, account numbers, payee, etc.) is accurate. In no event will NSP be required to pay any bill more than once where the invoice was first paid in accordance with Seller's instructions.

3.4

(Continued on Sheet No. 10-10) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 9.1

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ARTICLE IV SELLER'S OBLIGATIONS During the Term of the Agreement, Seller hereby agrees to be bound by and to perform the following affirmative obligations: 4.1 Design, Construction and Operation of the Plant Seller shall: (a) At its sole expense, design and construct the Plant and any related Interconnection Facilities in accordance with Prudent Electric Industry Practice and the MPUC approved Interconnection Guidelines for Parallel Operation of Distribution Connected Customer-Owned Generation. Seek, obtain, maintain, comply with and, as necessary, renew and modify from time to time, at Seller's sole expense, the Permits and all other permits, certificates or other authorizations which are required by any Requirement of Law or Governmental Authority as prerequisites to engaging in the activities envisioned by the Agreement and to meeting Seller's obligation to operate the Plant consistently with the terms of the Agreement.

(b)

(Continued on Sheet No. 10-10) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. 2nd Revised Sheet No. 10 10

4.1

Design, Construction and Operation of the Plant (Continued) (c) At Seller's sole expense, operate, maintain, and repair the Plant in accordance with this Agreement, all Requirements of Law, Contractual Obligations, Permits, NSP and the Midwest Reliability Organization (MRO) and MAPP or any successor organization practices, and in accordance with Prudent Electric Industry Practice. Comply with the Midwest Reliability Organization (MRO) and MAPP or any successor organization and NERC Procedures and cooperate with all reasonable requests by NSP relating to NSP's compliance with the Midwest Reliability Organization (MRO) and MAPP or any successor organization procedures and NERC procedures, including any amendments to or changed requirements under the Midwest Reliability Organization (MRO) and MAPP or any successor organization. At its sole expense install, operate and maintain in a manner consistent with Prudent Electric Industry Practice the facilities it will own and otherwise cooperate with NSP in the interconnection of the Plant to the NSP System in accordance with MPUC approved Interconnection Guidelines for Parallel Operation of Distribution Connected Customer Owned Generation. Each interconnection shall be a three-phase connection operated normally closed at sixty Hertz. Seller shall cause the Net Energy of the Plant to meet the Power Quality Standards at all times, and shall operate the Plant consistent with the Midwest Reliability Organization (MRO) and MAPP or any successor organization, NERC and NSP requirements as to frequency control.

T T

(d)

T T T T T T

(e)

(f)

T T

4.2

General Obligations (a) Seller, during the Term of the Agreement, shall pay all present or future federal, state, municipal, or other lawful taxes or fees applicable to Seller, or the Plant or by reason of the sale of Energy or Capacity under the Agreement. Seller shall receive the benefit of any new tax credits, allowances, or other credits related to the Plant. Seller shall obtain in its own name and at its own expense any and all pollution or environmental credits or offsets necessary to operate the Plant in compliance with the Environmental Laws. Seller agrees that NSP shall have unilateral authority during Emergency conditions to change production schedules, generation voltages and other Plant values in order to maintain system security, stability, continuity of service or satisfy the Midwest Reliability Organization (MRO) and MAPP or any successor organization and operating requirements. Seller shall immediately respond to the direction of the NSP System Control Center during an Emergency. Unless otherwise agreed by the Parties, Seller shall provide its own Station Auxiliary power and Energy from the gross output of its on-site generators when they are operating. At Seller's option and if the Plant is, located within NSP's retail area, NSP shall provide Seller with power and Energy in accordance with then effective retail tariffs. (Continued on Sheet No. 10-10.1)

(b)

(c)

T T

(d)

Date Filed: Docket No.:

05-19-08 By: David M. Sparby Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/M-08-568 Order Date:

10-10-08 10-10-08

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. 1st Revised Sheet No. 10 10.1

4.2

General Obligations (Continued) (e) Seller shall keep complete and accurate operating and other records and all other data for the purposes of proper administration of the Agreement, including such records as may be required by any Governmental Authority, the Midwest Reliability Organization (MRO) and MAPP or any successor organization (in the form required by such organization), NSP, the Parties and as otherwise required by Prudent Electrical Industry Practice. NSP shall provide a listing of requirements in the Interconnection Agreement, and provide reasonable notice of any changes in requirements during the Term of the contract Seller shall provide to NSP such other information regarding the permitting, engineering, construction, condition and operations, of the Plant, or other data concerning the Plant as NSP may, from time to time, reasonably request.

T T

(g)

(Continued on Sheet No. 10-11) Date Filed: Docket No.: 05-19-08 By: David M. Sparby Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/M-08-568 Order Date: 10-10-08 10-10-08

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 11

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4.3

Seller shall not merge, consolidate or join with or into any other Person (or permit or suffer any subsidiary to do the same), without the prior written notice to NSP. ARTICLE V NSP OBLIGATIONS

5.1

No later than the Commercial Operation Date, NSP shall construct and install any and all improvements and enhancements to its transmission and distribution facilities necessary to provide a safe and reliable transmission system after addition of the Plant to the NSP System. NSP shall utilize reasonable efforts to obtain all necessary approvals, permits and licenses required of NSP for construction and operation of such improvements and enhancements in timely fashion. Seller shall reimburse NSP for the costs incurred by NSP to interconnect Seller with the NSP System. NSP agrees to cooperate with Seller in any applications which Seller is making for tax credits, grants or assistance as described in Section 2.4, at NSP's expense. NSP's obligation shall consist only of providing nonproprietary information in its possession, custody or control necessary to complete any such applications, responding to requests from the relevant Governmental Authorities, and similar activities. (a) NSP shall not be required to enter into collateral assignments of the Agreement except as provided by this Section 5.3. Subject to the terms and conditions of the Agreement, NSP shall, upon prior written request by Seller, execute a consent and agreement with respect to a collateral assignment hereof in favor of any Financier in a form acceptable to NSP, provided (i) Seller shall reimburse NSP for all reasonable expenses incurred by NSP in connection therewith, including reasonable attorneys' fees, and (ii) that NSP's duty to make factual statements or representations in such consent and agreement shall be contingent upon the truthfulness and accuracy of such statements or representations at the time the consent and agreement is delivered. (b) NSP further acknowledges that the Financier(s) may have other or further requests with respect to the assignment of the Agreement (such as requests for legal opinions or certificates from NSP) and may request that certain terms be incorporated into a consent and agreement or assignment agreement to be executed by NSP. NSP will consider any such requests and will cooperate and negotiate any such consent and agreement or assignment in good faith.

5.2

5.3

(Continued on Sheet No. 10-11.1) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company /E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 11.1

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ARTICLE VI FORCE MAJEURE 6.1 Force Majeure: The performance of each Party under the Agreement may be subject to interruptions or reductions due to an event of Force Majeure. The term "Force Majeure" shall mean an event or circumstance beyond the control of the Party claiming Force Majeure, which, by exercise of due diligence and foresight, could not reasonably have been avoided, including, but not limited to, flood, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance, sabotage, strike, and act of God or any other cause beyond the control of the Party claiming Force Majeure. However, the obligation to use due diligence shall not be interpreted to require resolution of labor disputes by acceding to demands of the opposition when such course is inadvisable in the discretion of the Party having such difficulty.

(Continued on Sheet No. 10-12) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company /E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 12

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6.2

Remedial Action: A Party shall not be liable to the other Party in the event it is prevented from performing its obligations hereunder in whole or in part due to an event of Force Majeure. The Party rendered unable to fulfill any obligation by reason of a Force Majeure shall take all action necessary to remove such inability with all due speed and diligence. The nonperforming Party shall be prompt and diligent in attempting to remove the cause of its failure to perform, and nothing herein shall be construed as permitting that Party to continue to fail to perform after said cause has been removed. Exclusions from Definition of Force Majeure

6.3

Notwithstanding anything in the Agreement to the contrary, "Force Majeure" shall not mean: (a) Inclement weather affecting construction, start-up, operation, or decommissioning of the Plant or related facilities. Changes in market conditions, governmental action, or weather conditions that affect the cost of Seller's supply of Energy from the Plant. Unavailability of wind. Unavailability of equipment, repairs or spare parts for the Plant, except to the extent due to a qualifying event of Force Majeure. Inability to obtain, maintain or renew any Permit or any delay in obtaining, maintaining, or renewing any Permit. Litigation or administrative or judicial action pertaining to the Agreement, the Site, the Plant, the acquisition, maintenance or renewal of financing or any Permits, or the design, construction, maintenance or operation of the Plant or NSP's System. Any full or partial curtailment in the delivery of the Net Energy of the Plant or of the ability of NSP to accept Capacity and Energy from the Plant which is caused by any third party including, without limitation, any vendor or supplier of the Plant or NSP, except to the extent due to a qualifying event of Force Majeure.

(b)

(e) (d)

(e)

(f)

(g)

(Continued on Sheet No. 10-12.1) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/E002/GR-05-1428 Order Date:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 12.1

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6.3

Exclusions from Definition of Force Majeure (Continued) (h) Any breakdown of a mechanical or electrical component of the Plant (in the case of Seller), NSP's System (in the case of NSP), or the Interconnection or transmission Facilities owned by any Person who interconnects with or wheels Capacity and Energy from the Plant to NSP's System that fully or partially curtails the delivery or receipt of electric output of the Plant, to the extent caused by the design or construction of such component(s) or the failure to operate or maintain such component, NSP's System, the Plant or any third Person's facilities in accordance with Prudent Electric Industry Practice as implemented by NSP. This shall apply regardless of whether the failure is attributable to the negligence or fault of the Party claiming excuse.

6.4

Notice: In the event of any delay or nonperformance resulting from Force Majeure, the Party suffering the event of Force Majeure shall, as soon as practicable, but no later than 24 hours after the occurrence of the Force Majeure event, notify the other Party in writing of the nature, cause, date of commencement thereof, and the anticipated extent of any delay or interruption in performance.

(Continued on Sheet No. 10-13) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/E002/GR-05-1428 Order Date:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 13

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ARTICLE VII TERMINATION/DEFAULT/REMEDIES 7.1 Events of Default by NSP

The following shall each constitute an Event of Default by NSP: (a) NSP breaches any curable nonmonetary material obligation under this Agreement, and fails to cure such breach within 30 days after notification by Seller of the breach. After Commercial Operation, (i) an Event of Force Majeure occurs which is not cured by NSP and which causes NSP not to purchase Energy for more than twelve (12) consecutive months; or (ii) NSP refuses to purchase Energy after the Plant commences Commercial Operation for either ninety (90) consecutive days or one hundred twenty (120) nonconsecutive days in any 365-day period. NSP falls to make any material payment due under the Agreement within forty-five (45) days after such payment is due unless such payment is contested or a right of set-off has been claimed by NSP. Any other material breach of the Agreement not specifically enumerated.

(b)

(c)

(d) 7.2

Events of Default by Seller

The following shall each constitute an Event of Default by the Seller: (a) For any reason other than an event of Force Majeure, the Plant being Unavailable to provide Energy for ninety (90) consecutive days or one hundred twenty (120) non-consecutive days in any three hundred sixty-five (365) day period commencing on the Commercial Operation Date and prior to expiration of the Term of the Agreement. Seller breaches any curable material obligation under this Agreement and falls to cure the breach within 30 days after notification by NSP of the breach. Any other material breach of the Agreement not specifically enumerated.

(b)

(c)

(Continued on Sheet No. 10-14) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/E002/GR-05-1428 Order Date:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 13.1

.

7.2

Events of Default by Seller

The following shall each constitute an Event of Default by the Seller: (a) For any reason other than an event of Force Majeure, the Plant being Unavailable to provide Energy for ninety (90) consecutive days or one hundred twenty (120) non-consecutive days in any three hundred sixty-five (365) day period commencing on the Commercial Operation Date and prior to expiration of the Term of the Agreement. Seller breaches any curable material obligation under this Agreement and falls to cure the breach within 30 days after notification by NSP of the breach. Any other material breach of the Agreement not specifically enumerated.

(b)

(c) 7.3

Termination (a) In the event the defaulting Party fails to cure the Event of Default within the period for curative action under Sections 7.1 or 7.2, as applicable, or upon the occurrence of an incurable Event of Default, the nondefaulting Party may terminate the Agreement by notifying the defaulting Party in writing of the decision to terminate and the effective date of the termination.

(Continued on Sheet No. 10-14) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/E002/GR-05-1428 Order Date:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 14

.

(b)

Upon termination of the Agreement, NSP shall have no future or further obligation to purchase the Capacity or Net Energy of the Plant or to make any payment whatsoever under this Agreement, except for payments for obligations arising or accruing prior to the effective date of termination. Upon termination of the Agreement, Seller shall have no future or further obligation to deliver the Capacity or Net Energy of the Plant to NSP or to satisfy any other obligation of this Agreement, except for payments or other obligations arising or accruing prior to the effective date of termination. After the effective date of termination, the Agreement shall not be construed to provide any residual value to either Party or any successor or any other Person, for rights to, use of, or benefits from the Plant or NSP System.

7.4

Other Damages (a) For all claims, causes of action and damages the Parties shall be entitled to the recovery of actual damages allowed by law unless otherwise limited by the Agreement. Except as otherwise specifically and expressly provided in the Agreement, no Party shall be liable to the other Party under the Agreement for any indirect, special, or consequential damages, including but not limited to, loss of use, loss of revenue, loss of profit, interest charges, cost of capital, or claims of its customers to which service is made, from any cause. Notwithstanding the foregoing, the arbitrators under Article VIII can award consequential damages against a Party which willfully violates its obligations under the Agreement with knowledge that the other Party is suffering consequential damages if the arbitrators determine that such an award appears necessary to prevent repetition of such willful misconduct. In no event shall one Party's liability to the other exceed any limit of liability established for either Party under any Requirement of Law.

(b)

7.5

Seller and NSP agree to defend, indemnify, and hold each other, and their respective officers, directors, employees, and agents, harmless from and against all claims, demands, losses, liabilities, and expenses (including reasonable attorneys' fees) (collectively "Damages") for personal injury or death to Persons and damage to each other's physical property or facilities or the property of any other Person or corporation to the extent arising out of, resulting from, or caused by the negligent or intentional acts, errors, or omissions of the indemnifying Party. Furthermore, each Party shall defend, indemnify, and hold the other harmless from and against all damages that are or were incurred or suffered by the indemnified Party and which relate to the indemnifying Party's breach or failure to perform any of the covenants, agreements, obligations, representations, or warranties contained in the Agreement. Nothing in this section shall relieve Seller or NSP of any liability to the other for any breach of the Agreement. This indemnification obligation shall apply notwithstanding any negligent or intentional acts, errors or omissions of the indemnitees but the indemnifying Party's liability to pay Damages to the indemnified Party shall be reduced in proportion to the percentage by which the indemnitees' negligent or intentional acts, errors or omissions caused the Damages. Neither Party shall be indemnified for its Damages resulting from its sole negligence or willful misconduct. These indemnity provisions shall not be construed to relieve any insurer of its obligation to pay claims consistent with the provisions of a valid insurance policy.

(Continued on Sheet No. 10-15) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428E002/GROrder Date: 09-01-06 05-1428

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 15

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ARTICLE VIII ARBITRATION/MEDIATION 8.1 Arbitration and Mediation (a) Any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be subject to resolution by an informal or formal complaint process at the MPUC or mediation or binding arbitration as set forth in this Article. Prior to initiation of mediation and arbitration, authorized representatives designated by the Parties shall meet for the purposes of discussing and resolving the controversy or claim. If the dispute is not resolved within the time allowed, the Parties agree to submit the dispute to mediation in accordance with the commercial mediation rules of the American Arbitration Association, or other mediation procedures agreed to by the Parties, before proceeding to arbitration. The Parties agree to each pay one-half the costs of the mediation. The Parties shall have ten days to agree upon a mutually acceptable and neutral mediator and, if the parties cannot so agree, they shall jointly request the American Arbitration Association or other agreed mediation service to propose potential mediators and to assist in the selection of a disinterested mediator. The Parties shall, with the mediator, devise procedures appropriate for negotiating a resolution of the dispute(s). The Parties agree to participate in good faith in the mediation and related negotiations, and to expeditiously exchange information and documents necessary for the fair and full discussion of the dispute(s). The mediation shall be conducted in accordance with the Minnesota Civil Mediation Act. The Parties agree to participate in the mediation for a period of 30 days, which period may be extended by agreement. If the Parties are not successful in resolving the dispute(s) through mediation, then they agree to submit the unresolved dispute(s) or portions thereof to binding arbitration as provided in Section 8.2.

(b)

(c)

(d)

(e)

8.2

Arbitration Procedure (a) All disputes arising between the Parties which relate to the validity, interpretation or performance of this Agreement, and which are not successfully resolved by the Parties or through the mediation process prescribed in Section 8.1, shall be submitted to arbitration at the request of either Party to the dispute, in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect, and this Agreement. (Continued on Sheet No. 10-15.1)

Date Filed: Docket No.:

11-02-05

By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company /E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 15.1

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8.2

Arbitration Procedure (b) The demand for arbitration shall be filed in writing with the other Party, to this Agreement and with the Minneapolis, Minnesota office of the American Arbitration Association within ten days of the conclusion of mediation. No arbitration initiated by the Parties shall include, by consolidation, joinder or in any other manner, any other Person unless such Person and both Parties agree to the inclusion and unless such Person is substantially involved in a common question of law or fact or its presence is required if complete relief is to be accorded in the arbitration. This agreement to arbitrate between the Parties, and any fully executed subsequent agreement to arbitrate with a third party, shall be specifically enforceable under the Minnesota or federal arbitration act, whichever is applicable.

L

L

(Continued on Sheet No. 10-16) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company /E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. 1st Revised Sheet No. 10 16

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(c)

The arbitrators shall have jurisdiction and authority to interpret, apply, or determine compliance with the provisions of this Agreement insofar as shall be necessary to the determination of issues properly before the arbitrators, including the right to order specific performance of this Agreement against either Party. In making the decision, the arbitrators shall issue appropriate findings and conclusions regarding the issues. The arbitrators shall not have jurisdiction or authority to alter the provisions of this Agreement or any applicable law or rule of civil procedure. The arbitrators shall have the authority to require either Party to specifically perform its obligations under this Agreement. The arbitrators shall render a decision within sixty (60) days after the completion of the hearing on the matter.

(d) This Article VIII shall survive the termination of the Agreement as necessary to resolve any disputes arising our of, in connection with, or relating to the Agreement. ARTICLE IX MISCELLANEOUS 9.1 In the event the Plant is a QF, the Parties intend that their relationship be governed by PURPA as that statute is amended from time to time only with regard to NSP's obligation to interconnect the Plant to the NSP System and to receive Energy from the Plant. However, the Parties acknowledge that NSP's obligation to pay the Guaranteed Prices for the Net Energy of the Plant arises out of the Small Distributed Wind Generation Purchase Tariff and does not arise out of and is not affected by the obligations imposed by PURPA.

(Continued on Sheet No. 10-16.1) Date Filed: Docket No.: By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 11-02-05 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 16.1

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MISCELLANEOUS (Continued) 9.2 Any notice, demand, request, or communication required or authorized by the Agreement shall be delivered either by hand, facsimile, overnight courier or mailed by certified mail, return receipt requested, with postage prepaid, to: _____________________________ Northern States Power Company 414 Nicollet Mall Minneapolis, MN 55401 on behalf of NSP; and to: _____________________________ _____________________________ _____________________________ _____________________________ on behalf of Seller. The designation and titles of the person to be notified or the address of such person may be changed at any time by written notice. Delivery of any such notice, demand, request, or communication shall be deemed delivered on receipt if delivered by hand or facsimile and on deposit by the sending party if delivered by courier or U.S. mail. 9.3 All titles, subject headings, section titles and similar items are provided for the purpose of reference and convenience and are not intended to be inclusive, definitive or to affect the meaning of the contents or scope of the Agreement.

L

L

(Continued on Sheet No. 10-17) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 17

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9.4

In the event NSP ceases to be a member of MAPP during the Term of the Agreement, all terms and conditions with respect to MAPP or successor organization in effect at the time NSP terminates its membership with MAPP shall remain in force. No provision of the Agreement is intended to nor shall it in any way inure to the benefit of any customer, property owner or any other third party, so as to constitute any such Person a third-party beneficiary under the Agreement, or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any Person not a Party hereto. No undertaking by one Party to the other under any provision of the Agreement shall constitute the dedication of that Party's system or any portion thereof to the other Party or to the public or affect the status of NSP as an independent public utility corporation or Seller as an independent individual or entity and not a public utility. The Agreement, together with all Appendices attached hereto, constitute the entire agreement between the Parties relating to the transaction described herein and supersedes any and all prior oral or written understandings. No amendment, addition to, or modification of any provision hereof shall be binding upon the Parties, and neither Party shall be deemed to have waived any provision or any remedy available to it unless such amendment, addition, modification or waiver is in writing and signed by a duly authorized officer or representative of the applicable Party or Parties. The Agreement is made in the State of Minnesota and shall be interpreted and governed by the laws of the State of Minnesota and/or the laws of the United States, as applicable. (a) The duties obligations, and liabilities of the Parties are intended to be several and not Joint or collective. The Agreement shall not be interpreted or construed to create an association, joint venture, fiduciary relationship or partnership between Seller and NSP or to impose any partnership obligation or liability or any trust or agency obligation or relationship upon either Party. Seller and NSP shall not have any right, power, or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party. (b) The relationship between NSP and Seller shall be that of contracting party to independent contractor. Accordingly, subject to the specific terms of the Agreement, NSP shall have no general right to prescribe the means by which Seller shall meet its obligations under the Agreement.

9.5

9.6

9.7

9.8

9.9

(Continued on Sheet No. 10-17.1) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 17.1

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9.9

(c) Seller shall be solely liable for the payment of all wages, taxes, and other costs related to the employment of persons to perform Seller's obligations under the Agreement, including all federal, state, and local income, social security, payroll, and employment taxes, and statutorily mandated workers' compensation coverage. None of the persons employed by Seller shall be considered employees of NSP for any purpose; nor shall Seller represent to any Person that he or she is or shall become an NSP employee or agent. Good Faith and Fair Dealing; Reasonableness: The Parties agree to act reasonably and in accordance with the principles of good faith and fair dealing in the performance of the Agreement. Unless expressly provided otherwise in this Agreement, (i) wherever the Agreement requires the consent, approval, or similar action by a Party, such consent, approval or similar action shall not be unreasonably withheld or delayed, and (ii) wherever the Agreement gives a Party a right to determine, require, specify or take similar action with respect to matters, such determination, requirement, specification or similar action shall be reasonable.

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9.10

L

(Continued on Sheet No. 10-18) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 18

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9.11

Severability

Should any provision of the Agreement be or become void, illegal, or unenforceable, the validity or enforceability of the other provisions of the Agreement shall not be affected and shall continue in force. The Parties will, however, use their best endeavors to agree on the replacement of the void, illegal, or unenforceable provision(s) with legally acceptable clauses which correspond as closely as possible to the sense and purpose of the affected provision and the Agreement as a whole. 9.12 Confidentiality (a) The Parties acknowledge and agree that during the course of the performance of their respective obligations under this Agreement, either Party may need to provide information to the other Party which the disclosing party deems confidential, proprietary or a trade secret. All documentation and data, including but not limited to, special techniques, methods, computer programs and software, that the disclosing Party considers proprietary and furnishes to the receiving Party and wants the receiving Party to maintain confidential may be designated as proprietary (collectively "Proprietary Data") and shall be treated as such by the receiving Party. Documentation and data not so designated need not be considered by the receiving Party to be proprietary. The disclosing Party hereby grants to the receiving Party authority to use Proprietary Data only for the purposes of this Agreement. The receiving Party agrees to keep such Proprietary Data confidential, to use it only for work necessary to the performance of this Agreement, and not to sell, transfer, sublicense, disclose or otherwise make available any such Proprietary Data to others. Notwithstanding the preceding, this paragraph and the restrictions on the receiving Party shall not apply to any data or documentation: 1. Which is in the public domain at the time it was disclosed by the disclosing Party to the receiving Party or at any time thereafter; Which is independently developed by the receiving Party; or Which becomes known to the receiving Party from an ultimate source other than the disclosing Party without breach of this Agreement by the receiving Party.

2. 3.

(Continued on Sheet No. 10-18.1) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn_elec\Me_10_018.doc

Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 18.1

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9.12

Confidentiality (Continued) (b) NSP shall be entitled to disclose or use Proprietary Data in any proceeding before MPUC or a similar regulatory commission or agency if it is required or advantageous to do so, in NSP's sole discretion and upon written notice to Seller. In such an event, NSP will take all reasonable actions to limit the scope of any disclosure, shall only disclose any Proprietary Data subject to applicable rules and regulations protecting its proprietary nature, and shall resist the efforts by any Person under the Minnesota Data Practices Act to obtain any such Proprietary Data. L

9.13

Cooperation: The Parties agree to reasonably cooperate with each other in the implementation and performance of the Agreement. Such duty to cooperate shall not require either Party to act in a manner inconsistent with its rights under the Agreement.

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(Continued on Sheet No. 10-19) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn_elec\Me_10_018-1.doc

Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 WIND GENERATION PURCHASE AGREEMENT (Continued) Section No. Original Sheet No. 10 19

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IN WITNESS WHEREOF, the Parties have caused the Agreement to be duly executed as of the day and year first above written.

_____________________________________________ [Seller]

NORTHERN STATES POWER COMPANY, a Minnesota Corporation d/b/a Xcel Energy

By: _________________________________________

By: _________________________________________

Title: _________________________________________

Title: ________________________________________

Date Filed: Docket No.:

11-02-05

By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn_elec\Me_10_019.doc

Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 INTERCONNECTION ON-SITE WIND GENERATION Section No. Original Sheet No. 10 20

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Interconnection of On-Site Wind Generation (a) Application. Unless the context clearly indicates otherwise, the tenl1"electric utility" applies to Xcel Energy (formerly Northern States Power Company), a regulated electric utility serving customers in Minnesota. (b) Purpose. The purpose of this section is to clearly state the terms and conditions that govern the interconnection and parallel operation of on-site wind generation. (c) Definitions. The following words and terms, when used in this section and in the section titled "Technical Requirements for Interconnection and Parallel Operation of On- Site Wind Generation," shall have the following meanings, unless the context clearly indicates otherwise: (1) Application for interconnection and parallel operation with the utility system or application -The standard form of application approved by the Commission. (2) Company -Xcel Energy, an electric utility operating a distribution system. (3) Customer -Any entity interconnected to the company's utility system for the purpose of receiving or exporting electric power from or to the company's utility system. (4) Facility -An electrical generating installation consisting of one or more on- site distributed generation units. The total capacity of a facility's individual on- site distributed generation units may not exceed two megawatts (MW) interconnected at any point in time at the point of common coupling under this section. (5) Interconnection -The physical connection of distributed generation to the utility system in accordance with the requirements of this section so that parallel operation can occur. (6) Interconnection agreement -The standard form of agreement, which has been approved by the Commission. The interconnection agreement sets forth the contractual conditions under which a company and a customer agree that one or more facilities may be interconnected with the company's utility system. (7) Inverter-based protective function - A function of an inverter system, carried out using hardware and software, that is designed to prevent unsafe operating conditions from occurring before, during, and after the interconnection of an inverter-based static power converter unit with a utility system. For purposes of this definition, unsafe operating conditions are conditions that, if left uncorrected, would result in harm to personnel, damage to equipment, unacceptable system instability or operation outside legally established parameters affecting the quality of service to other customers connected to the utility system.

(Continued on Sheet No. 10-21) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company /E002/GR-05-1428 Order Date: 09-01-06

S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn_elec\Me_10_020.doc

Northern States Power Company, a Minnesota Corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 INTERCONNECTION ON-SITE WIND GENERATION (Continued) Section No. Original Sheet No. 10 21

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(8)

Network service -Network service consists of two or more utility primary distribution feeder sources electrically tied together on the secondary (or low voltage) side to form one power source for one or more customers. The service is designed to maintain service to the customers even after the loss of one of these primary distribution feeder sources. On-site wind generation (or wind generation) -An electrical wind generating facility located at a customer's point of delivery (point of common coupling) of two megawatts (MW) or less and connected at a voltage less than or equal to 69 kilovolts (kV) which may be connected in parallel operation to the utility system. Parallel operation -The operation of on-site distributed generation by a customer while the customer is connected to the company's utility system. Point of common coupling -The point where the electrical conductors of the company utility system are connected to the customer's conductors and where any transfer of electric power between the customer and the utility system takes place, such as switchgear near the meter. Pre-certified equipment -A specific generating and protective equipment system or systems that have been certified as meeting the applicable parts of this section relating to safety and reliability by an entity approved by the Commission. Pre-interconnection study -A study or studies that may be undertaken by a company in response to its receipt of a completed application for interconnection and parallel operation with the utility system. Preinterconnection studies may include, but are not limited to, service studies, coordination studies and utility system impact studies. Stabilized -A company utility system is considered stabilized when, following a disturbance, the system returns to the normal range of voltage and frequency for a duration of two minutes or a shorter time as mutually agreed to by the company and customer. Tariff for interconnection and parallel operation of distributed generation -The Commission-approved tariff for interconnection and parallel operation of wind generation including the application for interconnection and parallel operation of wind generation and pre-interconnection study fee schedule Unit -A wind power generator.

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

(Continued on Sheet No. 10-22) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn_elec\Me_10_021.doc

Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 INTERCONNECTION ON-SITE WIND GENERATION (Continued) Section No. Original Sheet No. 10 22

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(17)

Utility system -A company's distribution system below 69 kV to which the r generation equipment is interconnected.

(d) Obligation to serve. Concurrent with the tariff filing in this section, the Company shall submit: (1) a schedule detailing the charges of interconnection studies and all supporting cost data for the charges; (2) a standard application for interconnection and parallel operation of distributed generation; and (3) the interconnection agreement approved by the commission. (e) Disconnection and reconnection. The utility may disconnect a distributed generation unit from the utility system under the following conditions: (1) Expiration or termination of interconnection agreement. The interconnection agreement specifies the effective term and termination rights of company and customer. Upon expiration or termination of the interconnection agreement with a customer, in accordance with the terms of the agreement, the utility may disconnect customer's facilities. (2) Non-compliance with the technical requirements specified in "Technical Requirements for Interconnection and Parallel Operation of On-Site Wind Generation." A utility may disconnect a wind generation facility if the facility is not in compliance with the technical requirements specified in "Technical Requirements for Interconnection and Parallel Operation of On-Site Wind Generation." Within two business days from the time the customer notifies the utility that the facility has been restored to compliance with the technical requirements of "Technical Requirements for Interconnection and Parallel Operation of On-Site Wind Generation," the utility shall have an inspector verify such compliance. Upon such verification, the customer in coordination with the utility may reconnect the facility. (3) System emergency. A utility may temporarily disconnect a customer's facility without prior written notice in cases where continued interconnection will endanger persons or property. During the forced outage of a utility system, the utility shall have the right to temporarily disconnect a customer's facility to make immediate repairs on the utility's system. When possible, the utility shall provide the customer with reasonable notice and reconnect the customer as quickly as reasonably practical.

(Continued on Sheet No. 10-23) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/GR-05-1428 Order Date:

S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn_elec\Me_10_022.doc

Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 INTERCONNECTION ON-SITE WIND GENERATION (Continued) Section No. Original Sheet No. 10 23

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(4) Routine maintenance, repairs, and modifications. A utility may disconnect a customer or a customer's facility with seven business days prior written notice of a service interruption for routine maintenance, repairs, and utility system modifications. The utility shall reconnect the customer as quickly as reasonably possible following any such service interruption. (5) Lack of approved application and interconnection agreement. In order to interconnect wind generation to a utility system, a customer must first submit to the utility an application for interconnection and parallel operation with the utility system and execute an interconnection agreement on the forms prescribed by the Commission. The utility may refuse to connect or may disconnect the customer's facility if such application has not been received and approved. (f) Incremental demand charges. During the term of an interconnection agreement a utility may require that a customer disconnect its wind generation unit and/or take it off- line as a result of utility system conditions described in subsection (e)(3) and (4) of this section. Incremental demand charges arising from disconnecting the distributed generator as directed by company during such periods shall not be assessed by company to the customer. (g) Pre-interconnection studies for non-network interconnection of distributed generation. A utility may conduct a service study, coordination study or utility system impact study prior to interconnection of a wind generation facility. In instances where such studies are deemed necessary, the scope of such studies shall be based on the characteristics of the particular wind generation facility to be interconnected and the utility's system at the specific proposed location. By agreement between the utility and its customer, studies related to interconnection of wind generation on the customer's premise may be conducted by a qualified third party. (1) Wind generation facilities for which no pre-interconnection study fees may be charged. A utility may not charge a customer a fee to conduct a pre- interconnection study for pre-certified wind generation units up to 500 kW that export not more than 15% of the total load on a single radial feeder and contribute not more than 25% of the maximum potential short circuit current on a single radial feeder. (2) Wind generation facilities for which pre-interconnection study fees may be charged. Prior to the interconnection of a wind generation facility not described in paragraph (I) of this subsection, a utility may charge a customer a fee to offset its costs incurred in the conduct of a pre-interconnection study. In those instances where a utility conducts an interconnection study the following shall apply: (A) The conduct of such pre-interconnection study shall take no more than four weeks; (B) A utility shall prepare written reports of the study findings and make them available to the customer;

(Continued on Sheet No. 10-24) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 INTERCONNECTION ON-SITE WIND GENERATION (Continued) Section No. Original Sheet No. 10 24

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(C) The study shall consider both the costs incurred and the benefits realized as a result of the interconnection of wind generation to the company's utility system; and (D) The customer shall receive an estimate of the study cost before the utility initiates the study. (h) Network interconnection of wind generation. Certain aspects of secondary network systems create technical difficulties that may make interconnection more costly to implement. In instances where customers request interconnection to a secondary network system, the utility and the customer shall use best reasonable efforts to complete the interconnection and the utility shall utilize the following guidelines: (1) A utility shall approve applications for wind generation facilities that use inverter-based protective functions unless total wind generation (including the new facility) on affected feeders represents more than 25% of the total load of the secondary network under consideration. (2) A utility shall approve applications for other on-site wind generation facilities whose total generation is less than the local customer's load unless total wind generation (including the new facility) on affected feeders represents more than 25% of the total load of the secondary network under consideration.

(3) A utility may postpone processing an application for an individual wind generation facility under this section if the total existing wind generation on the targeted feeder represents more than 25% of the total load of the secondary network under consideration. If that is the case, the utility should conduct interconnection and network studies to determine whether, and in what amount, additional wind generation facilities can be safely added to the feeder or accommodated in some other fashion. These studies should be completed within six weeks, and application processing should then resume. (4) A utility may reject applications for a wind generation facility under this section if the utility can demonstrate specific reliability or safety reasons why the wind generation should not be interconnected at the requested site. However, in such cases the utility shall work with the customer to attempt to resolve such problems to their mutual satisfaction. (5) A utility shall make all reasonable efforts to seek methods to safely and reliably interconnect wind generation facilities that will export power. This may include switching service to a radial feed if practical and if acceptable to the customer.

(Continued on Sheet No. 10-25) Date Filed: Docket No.: By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/E002/GR-05-1428 Order Date: 09-01-06 11-02-05

S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn_elec\Me_10_024.doc

Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 INTERCONNECTION ON-SITE WIND GENERATION (Continued) Section No. Original Sheet No. 10 25

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(i) Pre-Interconnection studies for network interconnection of wind generation. Prior to charging a preinterconnection study fee for a network interconnection of wind generation, a utility shall first advise the customer of the potential problems associated with interconnection of wind generation with its network system. For potential interconnections to network systems there shall be no pre-interconnection study fee assessed for a facility with inverter systems under 40 kW. For all other facilities the utility may charge the customer a fee to offset its costs incurred in the conduct of the pre- interconnection study. In those instances where a utility conducts an interconnection study, the following shall apply: (1) The conduct of such pre-interconnection studies shall take no more than four weeks; (2) A utility shall prepare written reports of the study findings and make them available to the customer;

(3) The studies shall consider both the costs incurred and the benefits realized as a result of the interconnection of wind generation to the utility's system; and (4) The customer shall receive an estimate of the study cost before the utility initiates the study. (j) Communications concerning proposed wind generation projects. In the course of processing applications for interconnection and parallel operation and in the conduct of pre-interconnection studies, customers shall provide the utility detailed information concerning proposed wind generation facilities. A utility and its affiliates shall not use such knowledge of proposed wind generation projects submitted to it for interconnection or study to prepare competing proposals to the customer that offer either discounted rates in return for not installing the wind generation, or offer competing wind generation projects. (k) Equipment pre-certification (1) Entities performing pre-certification. The Commission may approve one or more entities that shall precertify equipment as defined pursuant to this section. (2) Standards for entities performing pre-certification. Testing organizations and/or facilities capable of analyzing the function, control, and protective systems of wind generation units may request to be certified as testing organizations. (3) Effect of pre-certification. Wind generation units which are certified to be in compliance by an approved testing facility or organization as described in this subsection shall be installed on a company utility system in accordance with an approved interconnection control and protection scheme without further review of their design by the utility.

(Continued on Sheet No. 10-26) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 INTERCONNECTION ON-SITE WIND GENERATION (Continued) Section No. Original Sheet No. 10 26

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(I) Designation of utility contact persons for matters relating to wind generation interconnection. (1) Each electric utility shall designate a person or persons who will serve as the utility's contact for all matters related to wind generation interconnection. (2) (2) Each electric utility shall identify to the Commission its wind generation contact person. (3) Each electric utility shall provide convenient access through its internet web site to the names, telephone numbers, mailing addresses and electronic mail addresses for its wind generation contact person. (m) Time periods for processing applications for interconnection with the utility system. In order to apply for interconnection the customer shall provide the utility a completed application for interconnection and parallel operation with the utility system. The interconnection of wind generation to the utility system shall take place within the following schedule: (1) For a facility with pre-certified equipment, interconnection shall take place within four weeks of the utility's receipt of a completed interconnection application. (2) For other facilities, interconnection shall take place within six weeks of the utility's receipt of a completed application. (3) If interconnection of a particular facility will require substantial capital upgrades to the utility system, the company shall provide the customer an estimate of the schedule and customer's cost for the upgrade. If the customer desires to proceed with the upgrade, the customer and the company will enter into a contract for the completion of the upgrade. The interconnection shall take place no later than two weeks following the completion of such upgrades. The utility shall employ best reasonable efforts to complete such system upgrades in the shortest time reasonably practical. (4) A utility shall use best reasonable efforts to interconnect facilities within the time frames described in this subsection. If in a particular instance, a utility determines that it cannot interconnect a facility within the time frames stated in this subsection, it will notify the applicant in writing of that fact. The notification will identify the reason or reasons interconnection could not be performed in accordance with the schedule and provide an estimated date for interconnection. (5) All applications for interconnection and parallel operation of wind generation shall be processed by the utility in a non-discriminatory manner. Applications will be processed in the order that they are received. It is recognized that certain applications may require minor modifications while they are being reviewed by the utility. Such minor modifications to a pending application shall not require that it be considered incomplete and treated as a new or separate application.

(Continued on Sheet No. 10-27) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 INTERCONNECTION ON-SITE WIND GENERATION (Continued) Section No. Original Sheet No. 10 27

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(n) Reporting requirements. Each electric utility shall maintain records concerning applications received for interconnection and parallel operation of wind generation. Such records will include the date each application is received, documents generated in the course of processing each application, correspondence regarding each application, and the final disposition of each application. In accordance with Commission rule 7835, the Company shall include a separate wind generation interconnection report for the preceding calendar year that identifies each wind generation facility interconnected with the utility's distribution system under the small wind energy tariff. The annual report shall also identify all applications for interconnection received during the previous one-year period, and the disposition of such applications. (o) Interconnection disputes. Complaints relating to interconnection disputes under this section shall be handled in an expeditious manner pursuant to Commission rules. In instances where informal dispute resolution is sought, complaints shall be presented to the Commission staff. The Commission staff shall attempt to informally resolve complaints within 20 business days of the date of receipt of the complaint. Unresolved complaints shall be presented to the Commission at the next available open meeting.

Date Filed: Docket No.:

By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

11-02-05

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 INTERCONNECTION AGREEMENT Section No. Original Sheet No. 10 28

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INTERCONNECTION AGREEMENT This Interconnection Agreement (Agreement) is made and entered into this ___________________ day of ____________, 20___, by Xcel Energy (Company), and ______________________(Customer). Each hereinafter sometimes referred to individually as party or both referred to as parties. In consideration of the mutual covenants set forth herein, to facilitate the interconnection of Wind Energy Generating equipment and utilization by the customer of the Company's Wind Energy Tariff, the parties agree as follows. I. Point of Interconnection

The Company and the Customer agree that the location of the Point of Interconnection between the Company's system and the Customer owned Wind Energy generator shall be as follows: ______________________________________________________________________________________ ______________________________________________________________________________________ The parties agree that the metering arrangement at the point of Interconnection shall be as shown on Diagram #1 (attached).

II.

Description of Interconnected Equipment. A. B. C. Nameplate Capacity (kW) ______________ at a rated wind speed of _____mph. Voltage at Point of Interconnection ___________________________ Manufacturer’s Model or type Number ________________________

III.

Equipment to be furnished by the Company.

The parties agree that the Company shall provide the following equipment as required for the interconnection of the Customer's Wind Energy Generator. A. Service equipment, additions, modifications, or replacements as follows: ___________________________________________________________________________ ___________________________________________________________________________

B.

Distribution system equipment additions, modifications, or replacements as follows: ___________________________________________________________________________ ___________________________________________________________________________

(Continued on Sheet No. 10-29) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 INTERCONNECTION AGREEMENT (Continued) Section No. Original Sheet No. 10 29

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C.

Transmission system additions, modifications, or replacements as follows __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________

IV.

Cost Allocation of Company Provided Equipment.

The parties agree that the Customer shall pay the following amount as a contribution toward the Company provided equipment as follows: A. B. Service Equipment Distribution System Equipment ______________________ ______________________ ______________________

C. Transmission System Equipment

An itemization of the cost of each of the charges is included as Attachment # 1. V. Special Operational Requirements.

The parties agree that there may be special requirements at specific locations due to generator or system characteristics unique to the Company's system at the location or generator technology type. For this installation, the parties agree to the following actions (as necessary) because of the generator location and system characteristics. A. Special Monitoring equipment _____________________________________________________________________ _____________________________________________________________________

B.

Special Operational restrictions _____________________________________________________________________ _____________________________________________________________________

(Continued on Sheet No. 10-30) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 INTERCONNECTION AGREEMENT (Continued) Section No. Original Sheet No. 10 30

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VI.

Term and Termination.

This agreement shall become effective as of the date of final signatures. The agreement shall continue in full force and effect until: a) b) c) d) the Parties agree in writing to terminate the Agreement or Changes are required to the Agreement to be in compliance with regulatory or reliability requirements or the termination of the associated Power Purchase Agreement entered into by the Parties or failure by the Customer to comply with the terms and conditions required by the Agreement.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their respective authorized representatives.

_____________________________________________ [Seller]

NORTHERN STATES POWER COMPANY, a Minnesota Corporation d/b/a Xcel Energy

By: _________________________________________

By: _________________________________________

Title: _________________________________________

Title: ________________________________________

Date Filed: Docket No.:

11-02-05

By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date:

02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 SMALL DISTRIBUTED WIND TECHNICAL GUIDELINES Section No. 1st Revised Sheet No. 10 31

Technical Guidelines Technical Requirements for Interconnection and Parallel Operation of On-Site Wind Energy Generation Facilities less than 2MW. (a) Purpose. The purpose of this section is to describe the requirements and procedures for safe and effective connection and operation of distributed wind generation rated above 40 kW and less than 2 MW nameplate capacity. (1) A customer may operate 60 Hertz (Hz), three-phase generating equipment in parallel with the utility system pursuant to an interconnection agreement, provided that the equipment meets or exceeds the requirements of this section. (2) This section describes typical interconnection requirements. Certain specific interconnection locations and conditions may require the installation and use of more sophisticated protective devices and operating schemes. (3) If the utility concludes that an application for parallel operation describes facilities that may require additional devices and operating schemes, the utility shall make those additional requirements known to the customer at the time the interconnection studies are completed. (4) Where the application of the technical requirements set forth in this section appears inappropriate for a specific facility, the customer and utility may agree to different requirements, or a party may petition the commission for a good cause exception, after making every reasonable effort to resolve all issues between the parties. (b) General interconnection and protection requirements. (1) The customer's generation and interconnection installation must meet all applicable national, state, and local construction and safety codes. (2) The customer's generator shall be equipped with protective hardware and software designed to prevent the generator from being connected to a de-energized circuit owned by the utility. (3) The customer's generator shall be equipped with the necessary protective hardware and software designed to prevent connection or parallel operation of the generating equipment with the utility system unless the utility system service voltage and frequency is of normal magnitude. D

(Continued on Sheet No. 10-32) Date Filed: Docket No.: 11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date: 04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 SMALL DISTRIBUTED WIND TECHNICAL GUIDELINES (Continued) Section No. Original Sheet No. 10 32

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(4) Pre-certified equipment may be installed on a company's utility systems in accordance with an approved interconnection control and protection scheme without further review of their design by the utility. When the customer is exporting to the utility system using pre-certified equipment, the protective settings and operations shall be those specified by the utility. (5) The customer will be responsible for protecting its generating equipment in such a manner that utility system outages, short circuits or other disturbances including zero sequence currents and ferro resonant overvoltages do not damage the customer's generating equipment. The customer's protective equipment shall also prevent unnecessary tripping of the utility system breakers that would affect the utility system's capability of providing reliable service to other customers. (6) Circuit breakers or other interrupting devices at the point of common coupling must be capable of interrupting maximum available fault current. (7) The customer and the utility shall mutually agree on a location and type of lockable disconnect device, accessible to the utility personnel, and capable of being locked in the open position. If the device is on the utility side of the meter, the customer will be responsible for the marginal cost of equipment enhancements in excess of what the utility would normally supply for the disconnect purpose. The customer shall follow the utility's switching, clearance, tagging, and locking procedures, which the utility shall provide for the customer. (c) Prevention of interference. To eliminate undesirable interference caused by operation of the customer's generating equipment, the customer's generator shall meet the following criteria: (1) Voltage. The customer will operate its generating equipment in such a manner that the voltage levels on the utility system are in the same range as if the generating equipment were not connected to the utility's system. The customer shall provide an automatic method of disconnecting the generating equipment from the utility system if a sustained voltage deviation in excess of +5.0% or - 10% from nominal voltage persists for more than 30 seconds, or a deviation in excess of + 10% or -30% from nominal voltage persists for more than ten cycles. The customer may reconnect when the utility system voltage and frequency return to normal range and the system is stabilized. (2) Flicker. The customer's equipment shall not cause excessive voltage flicker on the utility system. This flicker shall not exceed 3.0% voltage dip, in accordance with Institute of Electrical and Electronics Engineers (IEEE) 519 as measured at the point of common coupling.

(Continued on Sheet No. 10-33) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 SMALL DISTRIBUTED WIND TECHNICAL GUIDELINES (Continued) Section No. Original Sheet No. 10 33

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(3) Frequency. The operating frequency of the customer's generating equipment shall not deviate more than +0.5 Hertz (Hz) or -0.7 Hz from a 60 Hz base. The customer shall automatically disconnect the generating equipment from the utility system within 15 cycles if this frequency tolerance cannot be maintained. The Customer may reconnect when the utility system voltage and frequency return to normal range and the system is stabilized. (4) Harmonics. In accordance with IEEE 519 the total harmonic distortion (THD) voltage shall not exceed 5.0% of the fundamental 60 Hz frequency nor 3.0% of the fundamental frequency for any individual harmonic when measured at the point of common coupling with the utility system. (5) Fault and line clearing. The customer shall automatically disconnect from the utility system within ten cycles if the voltage on one or more phases falls below -30% of nominal voltage on the utility system serving the customer premises. This disconnect timing also ensures that the generator is disconnected from the utility system prior to automatic re-close of breakers. The customer may reconnect when the utility system voltage and frequency return to normal range and the system is stabilized. To enhance reliability and safety and with the utility's approval, the customer may employ a modified relay scheme with delayed tripping or blocking using communications equipment between customer and company. (d) Control, protection and safety equipment requirements specific to three-phase synchronous generators, induction generators, and inverter systems. This subsection specifies the control, protection, and safety equipment requirements specific to three phase synchronous generators, induction generators, and inverter systems. Exporting to the utility system may require additional operational or protection devices and will require coordination of operations with the utility. (1) Three-phase synchronous generators. The customer's generator circuit breakers shall be three-phase devices with electronic or electromechanical control. The customer is solely responsible for properly synchronizing its generator with the utility. The excitation system response ratio shall not be less than 0.5. The generator's excitation system(s) shall conform, as near as reasonably achievable, to the field voltage versus time criteria specified in American National Standards Institute Standard C50.13-1989 in order to permit adequate field forcing during transient conditions. For generating systems greater than two MW the customer shall maintain the automatic voltage regulator (AVR) of each generating unit in service and operable at all times. If the AVR is removed from service for maintenance or repair, the utility's dispatching office shall be notified.

(Continued on Sheet No. 10-34) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 SMALL DISTRIBUTED WIND TECHNICAL GUIDELINES (Continued) Section No. Original Sheet No. 10 34

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(2) Three-phase induction generators and inverter systems. Induction generation may be connected and brought up to synchronous speed (as an induction motor) if it can be demonstrated that the initial voltage drop measured on the utility system side at the point of common coupling is within the visible flicker stated in subsection (c)(2) of this section. Otherwise, the customer may be required to install hardware or employ other techniques to bring voltage fluctuations to acceptable levels. Line-commutated inverters do not require synchronizing equipment. Self-commutated inverters whether of the utility- interactive type or stand-alone type shall be used in parallel with the utility system only with synchronizing equipment. Direct-current generation shall not be operated in parallel with the utility system. (3) Protective function requirements. The protective function requirements for three phase facilities of different size and technology are listed below. (A) Facilities rated in excess of 40 kW but not more than 500 kW must have an interconnect disconnect device, a generator disconnect device, an over-voltage trip, an under-voltage trip, an over/under frequency trip, a manual or automatic synchronizing check (for facilities with stand alone capability), either a ground over-voltage trip or a ground over-current trip depending on the grounding system if required by the company, and reverse power sensing if the facility is not exporting (unless the generator is less than the minimum load of the customer). (B) Facilities rated more than 500 kW but not more than 2,000 kW must have an interconnect disconnect device, a generator disconnect device, an over-voltage trip, an under-voltage trip, an over/under frequency trip, either a ground over-voltage trip or a ground over-current trip depending on the grounding system if required by the company, an automatic synchronizing check (for facilities with stand alone capability) and reverse power sensing if the facility is not exporting (unless the facility is less than the minimum load of the customer). If the facility is exporting power, the power direction protective function may be used to block or delay the under frequency trip with the agreement of the utility. (e) Facilities not identified. In the event that standards for a specific unit or facility are not set out in this section, the company and customer may interconnect a facility using mutually agreed upon technical standards.

(Continued on Sheet No. 10-35) Date Filed: Docket No.: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 SMALL DISTRIBUTED WIND TECHNICAL GUIDELINES (Continued) Section No. Original Sheet No. 10 35

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(f) Requirements specific to a facility paralleling for sixty cycles or less (closed transition switching). The protective devices required for facilities two MW or less which parallel with the utility system for 60 cycles or less are an interconnect disconnect device, a generator disconnect device, an automatic synchronizing check for generators with stand alone capability, an over-voltage trip, an under-voltage trip, an over/under frequency trip, and either a ground over-voltage trip or a ground over-current trip depending on the grounding system, if required by the utility. (g) Inspection and start-up testing. The customer shall provide the utility with notice at least two weeks before the initial energizing and start-up testing of the customer's generating equipment and the utility may witness the testing of any equipment and protective systems associated with the interconnection. The customer shall revise and resubmit the application with information reflecting any proposed modification that may affect the safe and reliable operation of the utility system. 1. Site testing and commissioning. Testing of protection systems shall include procedures to functionally test all protective elements of the system up to and including tripping of the generator and interconnection point. Testing will verify all protective set points and relay/breaker trip timing. The utility may witness the testing of installed switchgear, protection systems, and generator. The customer is responsible for routine maintenance of the generator and control and protective equipment. The customer will maintain records of such maintenance activities, which the utility may review at reasonable times. For generation systems greater than 500 kW, a log of generator operations shall be kept. At a minimum, the log shall include the date, generator time on, and generator time off. The utility may review such logs at reasonable times. Metering. The utility will supply, own, and maintain all necessary meters and associated equipment to record energy purchases by the customer and energy exports to the utility system. The customer shall supply at no cost to the utility a suitable location on its premises for the installation of the utility's meters and other equipment. If metering at the generator is required in such applications, metering that is part of the generator control package will be considered sufficient if it meets all the measurements criteria that would be required by a separate stand alone meter.

2.

Date Filed: Docket No.:

11-02-05

By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF Section No. Original Sheet No. 10 36

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AVAILABILITY Available to retail electric customers at distribution voltages and who operate a qualifying distributed generating (DG) facility, as defined below, with nameplate rating of 2,000 kW or less, and is operated in parallel with Company’s distribution system. Such DG facilities may be up to 35,000 volts at three phase. Single phase DG facilities, generally, must not exceed a nameplate rating of 25 kW. Company will evaluate and approve all DG facility interconnection plans on case by case basis. This tariff will be reviewed and subject to revision when the Commission has established its generic standards for DG interconnection and parallel operation. At that time Company may continue, modify or combine this tariff with other available DG tariffs according to the Commission established standards. QUALIFICATION 1. Qualifying Distributed Generation (DG) facilities may include but are not limited to, fuel cell, solar, microturbine generators and other utility industry accepted DG technologies, subject to Company’s approval. For wind-powered electric generating facilities with nameplate rating of 2,000 kW or less, customer shall refer to Company’s separately established Small Distributed Wind Generation Purchase tariff. 2. Customer’s qualifying Distributed Generation facility may be a facility which does not qualify as a Qualifying Facility (QF) under the Public Utility Regulatory Policy Act of 1978 (PURPA) or may be a QF for which the customer elects not to exercise its rights to avoided-cost-pricing under PURPA. Customer is responsible for obtaining any required Federal Energy Regulatory Commission (FERC) approval for the sale of energy and capacity under this tariff from its facility. The distributed generating facility must be an operable, permanently installed or mobile generation facility and shall be owned by the customer receiving retail electric service from the Company at the same site.

3.

(Continued on Sheet No. 10-37) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 37

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APPLICATION OF SERVICES Customer seeking interconnection and to operate a DG facility in parallel, must complete and submit to Company a signed Distributed Generation/Parallel Operations Master Interconnection Agreement. (“Master Agreement”). Company will initiate project upon execution of the Master Agreement. STUDIES AND SERVICES Interconnection study or studies are required and shall be conducted by Company as part of the terms and conditions of service under this tariff. A fee schedule for the pre-interconnection study, is available to customers upon request. This pre-interconnection study fee schedule may be revised from time to time to reflect changes in Xcel Energy’s costs of conducting the studies. Any other studies and services provided pursuant to agreement by the customer and Company may be subject to Commission review. All review and study fees, are non-refundable, whether or not the customer decides to pursue the project. CONTRACTS Customers must also execute a Distributed Generation/Parallel Operations Application and Service Agreement (ASA) under this tariff that covers the costs and responsibilities associated with making interconnections and a Power Purchase Agreement (PPA) for sale of energy and capacity from its DG. The term of these agreements may be up to 20 years. Each customer DG project under this tariff will be evaluated on a customer- and sitespecific basis, to determine eligibility, system reliability and impact on Company’s transmission and distribution system. The Company will purchase, and the customer is obligated to sell to the Company, all electricity generated by the DG facility pursuant to the terms, conditions and price schedule of the PPA, if DG services are to be provided under this tariff. Customer may also choose to provide DG services to Xcel Energy under other existing tariff riders or through negotiations with Xcel Energy. Under certain circumstances the customer may also qualify for a Distribution Facility Credit which shall be governed under the Master Agreement. DISTRIBUTION FACILITY CREDIT Customer may also be eligible for a Distribution Facility Credit (DFC) if customer’s distributed generating facility is capable of being dispatched by Company’s Control Center Operators within reasonable notice. This credit is available only to DG facilities over 1 MW nameplate rating. The terms and conditions of such credit shall be determined from a case specific study of avoided distribution costs. The avoided distribution costs are based on Company’s annually conducted distribution capacity planning study that identifies capacity needs, upgrade and load growth on area distribution feeders. As part of the case specific study, the company will perform an initial screen of DG project to determine if the project is located on a distribution feeder that has potential for a DFC. If so, the Company may elect at its discretion to pursue further study as part of an annual distribution capacity review without any charge to the customer. Once established by contract and accepted by Company and customer, DFC shall be fixed over the term of the contract. (Continued on Sheet No. 10-38) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 38

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POWER PURCHASE AGREEMENT TERMS Energy and Capacity Purchase Payments Energy Payment rate schedule shall be based on Company’s expected average marginal energy prices for onpeak and off-peak periods. The energy payment rate shall be updated annually and is initially set at: Payment Schedule for Energy Delivered to Company On Peak Period Energy Payment per kWh – Summer Months On Peak Period Energy Payment per kWh – Non-Summer Months Off Peak Period Energy Payment per kWh Secondary $0.04794 $0.02866 $0.01567 Primary $0.04873 $0.02914 $0.01593

Capacity payment rate schedule shall be based on the capacity contributed by the facility to the Company. The capacity payment shall be set for the term of the PPA agreement based on the year in which the agreement is signed and may escalate at a fixed rate through the term of the agreement. Full capacity payment will be based on a 100% capacity factor during on-peak hours with the capacity payment reduced proportionally for lower onpeak capacity factors. The capacity payment shall be the product of the billing capacity, which equals the monthly tested capacity in kW for the billing month and the applicable capacity payment rate as adjusted for capacity factor. The procedure to determine monthly tested capacity is defined in the PPA. For agreements signed in 2001, the initial capacity payment rate will be $4.35/kW-mo for facilities interconnected to the secondary system and $4.42/kW-month for facilities interconnected to the primary system. The fixed escalation rate is 2.5%/year to be applied on the anniversary of the commercial operation date. Definition of Peak Periods The on peak period is defined as those hours between 9:00 a.m. and 9:00 p.m. Monday through Friday, except the following holidays: New Year’s Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. When a designated holiday occurs on a Saturday, the preceding Friday will be designated a holiday. When a designated holiday occurs on a Sunday, the following Monday will be designated a holiday. The off peak period is defined as all other hours not designated as on peak hours. Summer months are July and August, Non-Summer months are all other months. Definition of on peak and off peak period is subject to change with change in Company’s system operating characteristics or electric energy market standards.

(Continued on Sheet No. 10-39) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 39

TERMS AND CONDITIONS OF SERVICE 1. Electric service provided by Company to customer at the same site during the same billing period shall be billed in accordance with the appropriate retail electric rates. Company shall pay customer each month according to the applicable Distribution Facility Credit, Energy and Capacity Purchase Payments established in the contracts under this tariff. 2. The customer must enter a Master Agreement with the Company for the interconnection and parallel operation of any qualifying DG facility under this tariff. In order to receive energy and capacity payments, the customer must execute a Power Purchase Agreement with Company. Customer is responsible for any applicable study fees and interconnection costs, and any tax-impact of the foregoing on the Company. The customer must pay all such costs as specified in the Master Agreement. The customer shall be responsible for all costs associated with the installation, operation, and maintenance of the facility. Company may assess a monthly fee for metering and billing the Distribution Facility Credit, Energy and Capacity Purchase Payments transactions. The voltage and phase of customer’s distributed generation facility must be consistent with existing retail service configuration and is approved by the Company in accordance with the Company’s interconnection requirements. The customer must maintain a power factor as close to unity as is consistent with the Company’s interconnection requirements. Customer’s DG facility shall not commence parallel operation until it has established, to the satisfaction of the Company, that it complies with and has met the standards set forth in any applicable Commission or the Midwest Reliability Organization (MRO) and MAPP or any successor organization rules as well as the Company’s interconnection requirements.

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8.

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10. In addition to an automatic fail-safe device, the Company will require an accessible, company approved disconnection device having the capability of isolating the energy generated by each distributed generation facility. This device may be operated by either party at any time in order to maintain safe operating conditions. 11. Distributed generation customer shall be responsible for any expense incurred by the Company on behalf of the customer or as a result of the customer’s DG facility, which is not covered in the terms of the Master Agreement.

(Continued on Sheet No. 10-39.1)

Date Filed: Docket No.

05-19-08 By: David M. Sparby Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/M-08-568 Order Date:

10-10-08 10-10-08

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 39.1

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TERMS AND CONDITIONS OF SERVICE (CONTINUED) 12. During the term of the Master Agreement the DG customer shall maintain liability insurance which insures customer against all claims for property damage and for personal injury or death arising out of, resulting from, or in any manner connected with the installation, operation, and maintenance of the DG facility. The amount of such insurance coverage shall be as specified in the Master Agreement.

Date Filed: Docket No.

11-02-05

By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 40

TERMS AND CONDITIONS OF SERVICE (Continued) 13. The Company is under no obligation to revise or transfer customer’s existing Qualifying Facility (QF) contract(s) still in effect to a PPA. 14. In order to be eligible to receive a capacity payment, the facility must meet the minimum requirements for capacity accreditation in the Midwest Reliability Organization (MRO) and MAPP or any successor organization, including performing an annual uniform rating of generation equipment (URGE) test. 15. The Company shall have the right to seek capacity accreditation through its own effort with its affiliated power pool and customer will provide reasonable cooperation. 16. The Company shall recover energy costs associated with these purchases pursuant to the provisions of the Fuel Clause Rider.

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(Continued on Sheet No. 10-41) Date Filed: Docket No. 05-19-08 By: David M. Sparby Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/M-08-568 Order Date: 10-10-08 10-10-08

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 41

Xcel Energy
INTERCONNECTION GUIDELINES FOR PARALLEL OPERATION OF GENERATION CONNECTED TO DISTRIBUTION SYSTEMS IN THE STATE OF MINNESOTA October 31, 2001 TABLE OF CONTENTS I. A. B. C. II. A. III. A. B. C. 1. 2. 3. D. E. IV. A. 1. 2. 3. B. 1. INTRODUCTION Purpose______________________________________________________________________ 10-42 Interconnection Policy _________________________________________________________ 10-42 Objectives____________________________________________________________________ 10-43 INTERCONNECTION PROCESS Process Description ___________________________________________________________ 10-44 TECHNICAL REQUIREMENTS General Requirements__________________________________________________________ 10-45 Short Circuit Requirements _____________________________________________________ 10-46 Voltage Requirements __________________________________________________________ 10-46 Voltage Levels ______________________________________________________________ 10-46 Quality ____________________________________________________________________ 10-47 Flicker_____________________________________________________________________ 10-48 Frequency Requirements _______________________________________________________ 10-49 Communications Requirements__________________________________________________ 10-49 REFERENCES Device Standards______________________________________________________________ 10-50 IEEE ______________________________________________________________________ 10-50 ANSI ______________________________________________________________________ 10-50 Other______________________________________________________________________ 10-51 Operations Standards __________________________________________________________ 10-51 NERC/MAPP________________________________________________________________ 10-51 D

(Continued on Sheet No. 10-41.1) Date Filed: Docket No. 11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date: 04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 41.1

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TABLE OF CONTENTS (continued) Appendix 1: Appendix 2: Appendix 3: Xcel Energy Distributed Generation/Parallel Operations Master Interconnection Agreement Xcel Energy Distributed Generation/Parallel Operation Interconnection Application And Service Agreement Xcel Energy Distributed Generation (2 MVA and smaller) Interconnection Application Process for the Generators within the State of Minnesota

Date Filed: Docket No.

11-02-05

By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 42

INTERCONNECTION GUIDELINES FOR PARALLEL OPERATION OF GENERATION CONNECTED TO DISTRIBUTION SYSTEMS IN THE STATE OF MINNESOTA (Continued) I. INTRODUCTION A. Purpose This guide serves as a reference to assist in establishing an Interconnection for continuous parallel operation of a Customer-owned generation unit and the Xcel Energy electric distribution system in the State of Minnesota. In these guidelines, the Company is referred to as Xcel Energy. A Generator is defined as any device capable of introducing electrical energy into the distribution grid.

D

D Parallel Operation is defined as the operation of generation whose output is connected through an interconnection system to the Xcel Energy electric distribution system. The requirements in this document are intended to comply with the Public Utility Regulatory Policies Act (PURPA), the final rules on Open Access (FERC Orders 888, 889), the North American Electric Reliability Council (NERC), and the State of Minnesota regulatory agency requirements, as they presently exist. However, the electric industry is undergoing a major restructuring and changes can be expected to appropriate standards and requirements. It is in the best interests of all for any customer contemplating installation of generation equipment to work closely with Xcel Energy to assure that current status of appropriate interconnection requirements is known. B. Interconnection Policy Xcel Energy encourages the interconnection of generating equipment with its electric distribution system in a manner such that other customers, employees, and the general public will realize the benefit of a distributed electrical generation. However, as the owner of the delivery system supplying electrical energy to a large number of customers, Xcel Energy has the primary responsibility to assure that the process of interconnecting a customer-owned generating unit to the system minimizes the potential for injury to any person or damage to any property. Approval of the interconnection application only implies that Xcel Energy has reviewed the request to ensure that the continued integrity of Xcel Energy Distribution System can be maintained and that other Xcel Energy customers are not adversely affected by operation of the parallel generation. Xcel Energy will not assume any liability or responsibility for customer-owned equipment through the approval process. Further, the operation of the interconnection protective equipment is the responsibility of the customer who must maintain adequate financial liability protection should damage or injury result from improper operation or failure to operate. D

(Continued on Sheet No. 10-43) Date Filed: Docket No. 11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date: 04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 43

INTERCONNECTION GUIDELINES FOR PARALLEL OPERATION OF GENERATION CONNECTED TO DISTRIBUTION SYSTEMS IN THE STATE OF MINNESOTA (Continued) I. INTRODUCTION (Continued) C. Objectives This document provides guidance to meet the minimum requirements for safe and effective operation of the parallel interconnection. It provides both administrative and technical guidelines to assist the Customer in establishing the interconnection in an efficient and consistent manner. Included in this document are technical references to various national, state, and local standards that are applicable to the operation of any electrical generating device. Because these standards are subject to modification at any time, the customer considering the installation of a generator, whether operated in parallel with the Xcel Energy distribution system, or operated independently, is strongly urged to become familiar with the appropriate provisions of these requirements. The customer should plan to utilize the services of a qualified electrical contractor and/or consultant to assure that all appropriate measures have been taken to assure a safe and reliable operation.

D

(Continued on Sheet No. 10-44)

Date Filed: Docket No.

11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date:

04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 44

INTERCONNECTION GUIDELINES FOR PARALLEL OPERATION OF GENERATION CONNECTED TO DISTRIBUTION SYSTEMS IN THE STATE OF MINNESOTA (Continued) II. INTERCONNECTION PROCESS A. Process Description To encourage customers to interconnect their generation equipment to the electric distribution system, Xcel Energy has taken steps to simplify the process required to best assure that there will be no adverse consequences to any new or existing customer due to parallel operation of a generator and that the operation of any generator is done in a safe and hazard-free environment for the general public. The application process for interconnecting a customer-owned generator to the Xcel Energy distribution system is shown in Appendix 3. Xcel Energy has made several changes to this process that are intended to assist the customer in completing the required review as quickly and completely as possible. • The rapid growth of Distributed Generation has resulted in standardized Interconnection Equipment that is used by many system vendors. Xcel Energy anticipates that vendors of this equipment will request certification of their equipment for use on the Xcel Energy distribution system in advance of a specific request for interconnection. Thus, a list of pre-certified equipment will be maintained by Xcel Energy and made available to a customer upon request. A fee to initially certify equipment for use on the Xcel Energy distribution system will be charged. The customer will submit an application that provides the required information on the generator Xcel Energy needs to determine the impact of the unit. The Application Form is shown in Appendix 1. Xcel Energy will perform various studies to determine what, if any, distribution system modifications are required to safely interconnect. Any required studies will be completed within 65 calendar days from the date the completed ASA (Application & Service Agreement) is received by Xcel Energy. A fee that is based on the size of the proposed generation unit will be charged to the customer for Xcel Energy to perform any required studies. An Interconnection Agreement is prepared that specifies the required costs to the customer to continue the interconnection project and how any appropriate payments will be made to the customer for electric energy delivered to the Xcel Energy System. The Agreement will also contain the terms and conditions each party agrees to abide by in the day-to-day operation of the interconnection. A sample of the Master Interconnection Agreement with appropriate exhibits is shown in Appendix 2. (Continued on Sheet No. 10-45)

D

D

Date Filed: Docket No.

11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date:

04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 45

INTERCONNECTION GUIDELINES FOR PARALLEL OPERATION OF GENERATION CONNECTED TO DISTRIBUTION SYSTEMS IN THE STATE OF MINNESOTA (Continued) III. TECHNICAL REQUIREMENTS A. General Requirements Table 3-1: DG Interconnection Requirements SinglePhase Three-Phase Closed Transition

D

Feature Interrupting devices (capable of maximum available fault (current) Interconnection disconnect device (manual, lockable, visible, accessible) Generator disconnect device Over-voltage trip Under-voltage trip Over/Under frequency trip Synchronizing check (A: Automatic, M: Manual) Ground over-voltage or over-current trip Reverse power sensing If exporting, power direction function may be used to block or delay under frequency trip Automatic voltage regulator Telemetry/transfer trip
Notes: √ – Required feature (blank = not required)

<25 kW √ √ √ √ √ √ A/M [1]

<100 kW √ √ √ √ √ √ A/M [1]

Capacity 100 kW – 1 MW √ √ √ √ √ √ A/M [1] [2]

1 MW – 2 MW √ √

2 MW – 10 MW

< 10 MW

Currently Under Development

√ √ √ A [1] [2] [3] √ [1] √

[3]

[3]

[1] – Required for facilities with stand-alone capability [2] – May be required by Xcel Energy; selection based on grounding system [3] – Required, unless generator is less than applicant minimum load, to verify non-export

(Continued on Sheet No. 10-46) Date Filed: Docket No. 11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date: 04-01-10 10-23-09

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Currently Under Development

Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 46

INTERCONNECTION GUIDELINES FOR PARALLEL OPERATION OF GENERATION CONNECTED TO DISTRIBUTION SYSTEMS IN THE STATE OF MINNESOTA (Continued) III. TECHNICAL REQUIREMENTS (Continued) B. Short Circuit Requirements The interrupting device used at the Point of Common Coupling (PCC) must be able to safely interrupt a fault. The amount of available fault is dependent on the system primary voltage in use at the specific location. Except in unique circumstances, the designed maximum available fault current on the Xcel Energy Delivery System depends upon the voltage level, as shown in Table 3-2: Table 3-2: Maximum Available Fault Currents Primary Voltage 4.16 kV 12.5/13.8 kV 23.9 kV 34.5 kV C. Voltage Requirements 1. Voltage Levels Table 3-3 shows the relationship between the voltage levels at the PCC versus the required tripping time for the protection system (relays and breakers). Table 3-3: Voltage Range Delay & Trip Times Voltage Range Voltage [1] <84 84 – 108 108 – 126 126 – 132 >132 Trip Time Seconds Cycles 0.166 10 (Delay) & 10 (Trip) 30.0 & 0.166 1800 (Delay) & 10 (Trip) Normal Operating Range 30.0 & 0.166 1800 (Delay) & 10 (Trip) 0.166 10 (Delay) & 10 (Trip) Maximum Available Fault 50 MVA 250 MVA 350 MVA 500 MVA

D

Percentage <70% 70%-90% 90% - 105% 105% - 110% >110%

[1] Voltage shown based on 120V, nominal.

(Continued on Sheet No. 10-47) Date Filed: Docket No. 11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date: 04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 47

INTERCONNECTION GUIDELINES FOR PARALLEL OPERATION OF GENERATION CONNECTED TO DISTRIBUTION SYSTEMS IN THE STATE OF MINNESOTA (Continued) III. TECHNICAL REQUIREMENTS (Continued) C. Voltage Requirements (Continued) 2. Quality Table 3-4 indicates the maximum harmonic voltage content allowed in the output waveform at the PCC. Table 3-4: Voltage Distortion Limits VOLTAGE DISTORTION LIMITS Individual Voltage Distortion IHD % 3.0

D

Bus Voltage At PCC 35 kV and below

Total Voltage Distortion IHD % 5.0 From: IEEE 519-1992

Table 3-5 indicates the maximum harmonic current content allowed in the output waveform at the PCC. Table 3-5: Current Distortion Limits Maximum Harmonic Current Distortion in Percent of Current (Irated) (a) <11 11<h<17 17<h<23 23<h<35 35<h TRD Individual Harmonic Order – h (Odd Harmonics)(b) Percent (%) 4.0 2.0 1.5 0.6 0.3 5.0 From: IEEE 519-1992 (a) Irated is the DR unit rated current. (b) Even harmonics are limited to 25% of the odd harmonic limits above. (c) Total rated-current distortion (TRD) is the total rms value of the sum of the current harmonics created by the DR unit operating into a linear balanced load divided by the greater of the load current demand (IL) or the rated current capacity of the DR unit (Irated). (Continued on Sheet No. 10-48)

Date Filed: Docket No.

11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date:

04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 48

INTERCONNECTION GUIDELINES FOR PARALLEL OPERATION OF GENERATION CONNECTED TO DISTRIBUTION SYSTEMS IN THE STATE OF MINNESOTA (Continued) III. TECHNICAL REQUIREMENTS (Continued) C. Voltage Requirements (Continued) 3. Flicker The operation of customer-owned generators are not allowed to produce flicker to adjacent customers which exceeds the limits shown below. If the interconnected customer-owned generation causes these limits to be exceeded, the customer is responsible for correcting the problem. Table 3-6: Voltage Flicker Limits

D

(From: IEEE 519-1992) (Continued on Sheet No. 10-49)

Date Filed: Docket No.

11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date:

04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 49

INTERCONNECTION GUIDELINES FOR PARALLEL OPERATION OF GENERATION CONNECTED TO DISTRIBUTION SYSTEMS IN THE STATE OF MINNESOTA (Continued) III. D. TECHNICAL REQUIREMENTS (Continued) N Frequency Requirements Xcel Energy will provide the reference frequency of 60 Hz. The generator control system must be used to match this reference. The protective relaying in the interconnection system will be expected to maintain the frequency of the output of the generator as measured at the PCC within the constraints as shown in Table 3-6. Table 3-7: Frequency Range Delay & Trip Times N

D

Frequency Range (Hz) <98.9% <59.3 98.9%-100.9% 59.3 – 60.5 >100.9% >60.5 E.

Trip Time 0.25 15 (Trip) Normal Operating Range 0.25 15 (Trip)

Communications Requirements Telemetry is required when total generation (single unit, station, or farm)at a single PCC exceeds 1 MW when operating in continuous parallel with the distribution system. The need for telemetry is based on the need of the system control center for information necessary for reliable operation of the Xcel Energy equipment during Normal and Emergency Operation. The following telemetry is required: • • • • • • Real and reactive power flow for each generator (kW and kVAR) Voltage representative of the Xcel Energy service to the facility Status (open/close) of generator and interconnection breaker(s) Position of incoming and tie breakers or switches (if available) Energy output of the generators (kWh) (if available) Customer load from Xcel Energy service (kW and kVAR) (if available)

When telemetry is required, the Customer must provide the communications medium to the Xcel Energy Control Center. If a telephone circuit is used, the Customer must also provide the telephone circuit protection and coordinate the RTU addition with Xcel Energy. (Continued on Sheet No. 10-50)

Date Filed: Docket No.

11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date:

04-01-10 N 10-23-09

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 50

INTERCONNECTION GUIDELINES FOR PARALLEL OPERATION OF GENERATION CONNECTED TO DISTRIBUTION SYSTEMS IN THE STATE OF MINNESOTA (Continued) IV. REFERENCES A. Device Standards 1. IEEE “Draft Standard for Interconnecting Distributed Resources with Electric Power Systems”, P-1547 – Draft 8 (as superceded by more recent drafts or final version). "IEEE Guide for Interfacing Dispersed Storage and Generation Facilities with Electric Utility Systems", IEEE Std. 1001, 1988. “IEEE Recommended Practice for Utility Interconnection of Small Wind Energy Conversion Systems", ANSI/IEEE Std. 1021, 1988. "Intertie Protection of Consumer-Owned Sources of Generation, 3 MVA or Less", IEEE Publication 88 THO224-6-PWR. "IEEE Recommended Practices and Requirements for Harmonic Control in Electric Power Systems", IEEE Standard 519-1992. “IEEE Guide for Safety in AC Substation Grounding”, IEEE 80-1986, published by the Institute of Electrical and Electronic Engineers Inc. “Recommended Practice for Utility Interface of Recommended Practice for Utility Interface of Photovoltaic (PV) Photovoltaic (PV) Systems”, IEEE 929–2000, (UL 1741) 2. ANSI Recommended Practice for Protection and Coordination of Industrial and Commercial Power Systems - "Buff Book:", ANSI/IEEE Std. 242-1986. "National Electrical Safety Code", ANSI C2-1993, Published by The Institute of Electrical and Electronics Engineers, Inc. "IEEE Standard Relays and Relay Systems Associated with Electric Power Apparatus", ANSI/IEEE C37.90, 1989. "Guide for Protective Relaying of Utility - Consumer Interconnections", ANSI/IEEE c37.95, 1988. (Continued on Sheet No. 10-51) N

D

Date Filed: Docket No.

11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date:

04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 51

INTERCONNECTION GUIDELINES FOR PARALLEL OPERATION OF GENERATION CONNECTED TO DISTRIBUTION SYSTEMS IN THE STATE OF MINNESOTA (Continued) IV. REFERENCES (Continued) 2. ANSI (Continued) Recommended Practice for Emergency and Standby Power Systems for Industrial and Commercial Applications - "Orange Book", ANSI/IEEE Std. 446-1987. “IEEE Standard Requirements for Instrument Transformers”,C-57.13-1993 “IEEE Standard for Relays and Relay Systems Associated with Electric Power Apparatus”, ANSI/IEEE C37.90-1989 “IEEE Guide for Protective Relaying of Utility-Consumer Interconnections”, ANSI/IEEE C37.951989. 3. Other National Electrical Code, National Fire Protection Association, Quincy, MA 02269, NFPA-701999. OSHA Regulations (Standards –29 CFR) The control of hazardous energy (lockout/tagout). 1910.147 OSHA Regulations (Standards – 29 CFR) Electric Power Generation, Transmission, and Distribution. - 1910.269 “IEC Standard Voltages”, IEC 60038 Ed. 6.0 b:1983

D

B. Operations Standards 1. NERC/MAPP "Reliability Considerations for Integrating Non-Utility Generating Facilities with the Bulk Electric Systems", North American Electric Reliability Council, Princeton, NJ 8540, April 1987.

(Continued on Sheet No. 10-52) Date Filed: Docket No. 11-03-08 By: Judy M. Poferl Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/GR-08-1065 Order Date: 04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 52

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Appendix 1 DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT THIS MASTER INTERCONNECTION AGREEMENT ("Agreement") is entered into as of the ______ day of ___________ 20__ by and between Northern States Power Company, a Minnesota corporation, d/b/a/ Xcel Energy ("Xcel Energy") and __________________, ("Customer") its successors and assigns, for the interconnection and parallel operation of certain equipment to the distribution delivery system as designated in the appended Distributed Generation Interconnection Application and Service Agreement ("ASA") to this Master Interconnection Agreement pursuant to the following terms: RECITALS WHEREAS, Xcel Energy owns and controls distribution and transmission structures, poles, and wires, ("System") for providing electrical services to Xcel Energy's customers; WHEREAS, Customer proposes to connect generating and interconnection equipment (“Unit”) and to operate as such in parallel with the System and in conjunction therewith install and maintain equipment at the Point of Interconnection ("Point"); WHEREAS, Xcel Energy is willing to permit the installation, maintenance, and parallel operation of said equipment at the Point when, in Xcel Energy’s judgment, such connection will not interfere with Xcel Energy's own service requirements or with the service requirements of others lawfully using such System. Xcel Energy shall grant to Customer access to Xcel Energy's System in accordance with the provisions of Minn. Stat. Chapter 216B and all orders, rules, tariffs, regulations approved by the Federal Energy Regulatory Commission (“FERC”), Minnesota Public Utilities Commission (“MPUC”) or the governing State authority pursuant thereto, as well as all other applicable State, Federal or local law ("Law"); WHEREAS, for purposes of this Master Agreement, Xcel Energy’s Interconnection Requirements are contained in the Xcel Energy publication, INTERCONNECTION GUIDELINES FOR PARALLEL OPERATION OF CUSTOMEROWNED GENERATION CONNECTED TO DISTRIBUTION SYSTEMS IN THE STATE OF MINNESOTA (Current edition); NOW THEREFORE, in consideration of the mutual covenants contained in this Master Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. MASTER INTERCONNECTION AGREEMENT 1.1. This Agreement contains the terms and conditions upon which the Point is to be connected, constructed and maintained in parallel on the Xcel Energy distribution System, defined as distribution facilities rated 35 kV class and below, with and by Xcel Energy and Customer. Customer shall submit two originals of the signed Master Interconnection Agreement. (Continued on Sheet No. 10-53) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 53

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Appendix 1 DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT (Continued) 1. MASTER INTERCONNECTION AGREEMENT (Continued) 1.2. The Customer shall prepare an ASA on the form marked Exhibit A, attached hereto, and made a part hereof, when applying for permission to interconnection to Xcel Energy’s System. An ASA is intended to provide Xcel Energy with information necessary for a study of the Point prior to permitting Customer to interconnect with the System. The original ASA plus three copies shall be forwarded to Xcel Energy along with an advance payment for study fees as indicated in Exhibit B. The information provided on said form shall show the location of the Point with respect to streets, alleys, addresses and other geographical markings as well as all pertinent technical information. Xcel Energy shall review said application in accordance with the terms of this Agreement. Each executed ASA is deemed to be a part of this Agreement. In the event of a conflict or inconsistency between the terms hereof and the terms of a particular ASA, the terms of this Interconnection Agreement shall govern and control for that Point. Xcel Energy may, at its sole option, conduct such studies as Xcel Energy deems reasonably necessary to determine the Point’s suitability for Customer's intended connection. 2. INSTALLATION, OPERATION AND MAINTENANCE OF EQUIPMENT AND ASSESSMENT OF INTERCONNECTION COSTS 2.1. Prior to commencing any installation, improvement, or construction to Unit connected to the System, Customer must obtain Xcel Energy’s written approval of Customer's plans for installation or alteration work and the precise location of the Unit on the System. Xcel Energy will respond to such ASA within sixty-five (65) days of receipt of a complete and accurate request for access submitted to Xcel Energy in accordance with the terms and conditions of this Agreement, including all applicable Exhibits. 2.2. All of Customer's and Company’s installation and alteration work, modification, rearrangement, relocation or removal necessary to allow Customer to make or maintain the desired connection (the Work) must be performed at Customer's sole cost and expense, in a good and workmanlike manner, and must not adversely and materially affect the structural or other integrity of the System or any structure or facilities on the System. The Work paid by the Customer is referred to as Interconnection Costs. Any of the Work to the System must be designed by a qualified Xcel Energy representative at Customer's sole cost and expense. All work performed by Xcel Energy will be reimbursed at the actual costs including overheads. Customer shall pay 100 percent of the estimated Interconnection Costs to Xcel Energy prior to Xcel Energy performing such work. The Work shall be scheduled upon receipt of this payment. Any Interconnection Costs above the estimated Interconnection Costs shall be reimbursed to Xcel Energy within 30 days of completion of such Work. Customer will be refunded within thirty (30) days the difference between the actual Interconnection Costs and the estimated Interconnection Costs if such actual costs are less than the estimated costs. (Continued on Sheet No. 10-54) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 54

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Appendix 1 DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT (Continued) 2. INSTALLATION, OPERATION AND MAINTENANCE OF EQUIPMENT AND ASSESSMENT OF INTERCONNECTION COSTS (Continued) 2.3. Customer's Unit, in each and every location shall be erected, installed, maintained and removed in accordance with the requirements and specifications of the National Electric Safety Code, Current Edition, or any revisions thereof, and other generally applicable engineering standards and in compliance with any applicable rules, regulations or orders now in effect or hereafter issued by any federal or state commission or any other public authority having jurisdiction. 2.4. The Company may, in its discretion and upon reasonable notice, conduct reasonable on-site verifications during the construction and operation of the Point. Whenever the Company chooses to exercise its right to conduct observations herein it shall specify to the customer its reasons for its decision to conduct the observation. If the Review identifies any unapproved equipment or installation methods, Point connection with the System shall be disconnected until Customer makes such changes so as to comply with the approved ASA. 2.5. The Customer must have the interconnection installation inspected and certified by a qualified technician for proper installation and operation of the interconnection protective devices. 2.6 The Company may conduct on-site verifications of the Unit and observe the performance of verification testing within a reasonable period of time after receiving a written request from the Customer to begin producing energy in parallel with the System. The Company requires a minimum of two weeks noticeof upcoming tests, and reserves its right to accept or reject the request consistent with the Interconnection Requirements, based upon the verification test results. 2.7 Any inspection and approval by the Company does not constitute a warranty or relieve the Customer of responsibility for the operating condition or installation of the equipment and may not be relied upon by the Customer for that purpose. 2.8. If emergency repairs are needed to protect persons, or property, or to allow safe use of the System, the Company or its contractors may immediately correct the safety or use problem on Customer’s Unit, even if a full repair cannot be made at that time.

(Continued on Sheet No. 10-55) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 55

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Appendix 1 DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT (Continued) 3. USE 3.1. Customer may use the Point for the purpose of connecting in parallel to the System in accordance with this Agreement. The manner in which the Unit may be connected to the System shall be subject to the prior written approval of Xcel Energy, which approval shall not be unreasonably withheld or delayed. Customer shall submit plans to Xcel Energy for its analysis, together with each ASA. Xcel Energy shall respond in writing to such ASA within sixty-five (65) days of receipt of a complete and accurate request for interconnection submitted to Xcel Energy in accordance with the terms and conditions of this Agreement, including all applicable Exhibits, specifying reasons for denial if applicable. Customer must, at Customer's sole expense, comply with all laws, orders, ordinances regulations and directives of applicable federal, state, county, and municipal authorities or regulatory agencies, including, but not limited to, the Federal Energy Regulator Commission ("FERC"), the Occupational Safety and Health Administration ("OSHA"), the National Electric Safety Code ("NESC") and the National Electrical Code ("NEC"), and Xcel Energy’s Interconnection Requirements as they relate to the operation, of Customer's equipment and the use of Xcel Energy's System. Customer shall, at its own expense, make and maintain its interconnection in safe condition and in thorough repair and in a manner suitable to Xcel Energy so as not to conflict with the use of said System by Xcel Energy or interfere with the working use of facilities thereon or which may, from time to time, be placed thereon by Xcel Energy. Notwithstanding the above, all installation, construction, maintenance and removal of Customer's equipment on Xcel Energy's System may be, at Xcel Energy's sole option, performed by Xcel Energy. All maintenance, construction and repairs performed by Xcel Energy will be reimbursed at the actual costs, including overheads. Making or maintaining a connection safely may require taking equipment or facilities out of service. Xcel Energy will determine if an equipment outage is required and will arrange with Customer for an outage. Such an outage may not interfere with Xcel Energy's service requirements or the service requirements of other lawfully connected Customers. Customer shall submit to Xcel Energy evidence, satisfactory to Xcel Energy, of Customer's authority to install and maintain its equipment within public streets, highways, alleys, and other public thoroughfares if applicable, and shall secure any necessary consent from federal, state, municipal, or other public authorities to construct and maintain Customer's equipment at the Point of Xcel Energy’s System which it desires to connect.

3.2.

3.3.

3.4.

(Continued on Sheet No. 10-55.1) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 55.1

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Appendix 1 DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT (Continued) 3.5. Customer shall exercise reasonable care to avoid causing damage to facilities of Xcel Energy and of others located on Xcel Energy's System and to equipment connected or associated with such facilities, including any damage arising out of construction associated with execution of a ASA. In the event such damage occurs, Customer assumes all responsibility for and agrees to promptly reimburse Xcel Energy and the other users of Xcel Energy's System in full for all loss and expense occasioned by such damage. Customer shall make an immediate report to Xcel Energy of the occurrence of such damage.

(Continued on Sheet No. 10-56) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT (Continued) 3. USE (Continued) 3.6. No use, however extended, of Xcel Energy’s System, or any payments made under this agreement or other action of Customer shall create or vest in Customer any ownership or property rights in Xcel Energy’s System or associated equipment, but Customer's right herein shall be and remain such as establishes a mere permit under the terms of this agreement. In the event Xcel Energy changes its System such that Customer’s connection is affected, Xcel Energy shall allow Customer, after completion of another Study, access to make compatible use of Xcel Energy's System. Customer is responsible for 100 percent of the costs associated with such Study and any resulting required System modifications, in accordance with Sections 1 and 2 of this Agreement. Xcel Energy shall not be liable to Customer or its customers, under this Agreement, for any interruption to service of Customer or for interference with the operation of Customer's equipment arising in any manner out of the use of such System hereunder, except for Xcel Energy's negligence or willful misconduct. Xcel Energy intends to exercise reasonable care to avoid causing damage to Customer's equipment and, in the event of such damage, Xcel Energy shall immediately report its occurrence to Customer. Section No. Original Sheet No. 10 56

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Appendix 1

3.7.

4.

TERM 4.1. This Agreement and all ASAs shall terminate on ______ __, 20__. The initial term of any ASA shall be for five years commencing on the date of approval by Xcel Energy of the ASA. The term of the ASA may be automatically renewed for five-year periods unless Customer provides Xcel Energy notice of non-renewal not less than ninety (90) days prior to the expiration of the ASA. Under no circumstance, shall an ASA extend more than twenty (20) years, which is ______ __, 20__.

5.

FEES 5.1. Customer shall pay Xcel Energy Study fees per Sheet No. 10-72. Payments will be sent directly to Xcel Energy.

5.2. Any Fee not paid within thirty (30) days of when due may, at Xcel Energy's option, bear interest until paid at the lesser of the rate of interest per annum equal to the interest rate then being quoted by Chase Manhattan Bank (or its successor) as its prime rate plus two (2) points; or the maximum rate allowed under the laws of the State of Minnesota (the "Past Due Interest Rate"), whichever is lower. 5.3. The Customer understands and agrees that Xcel Energy may adjust any fees charged for connection to Xcel Energy's System according to the regulations provided by the governing entity at the applicable time and prior to renewal of an ASA. (Continued on Sheet No. 10-57) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT (Continued) 6. DISCONNECTION 6.1. Emergency Disconnection: The Company may disconnect the Unit, without prior notice to the customer (a) to eliminate conditions that constitute a potential hazard to Company, its personnel, other customers or the general public; (b) if pre-emergency or emergency conditions exist on the Company system; (c) if a hazardous condition relating to the Unit is observed by a utility inspection; or (d) if the Customer has tampered with any protective device. The Company shall notify the Customer of the emergency if circumstances permit. Non-Emergency Disconnection: The Company may disconnect the Unit, after notice to the responsible party and if the conditions permit, with a reasonable time to correct, if (a) the Customer has failed to make available records of verification tests and maintenance of verification test and maintenance of his protective devices; (b) the Unit interferes with Company equipment or equipment belonging to other customers of the Company; (c) the Unit adversely affects the quality of service of other customers. Section No. Original Sheet No. 10 57

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6.2.

6.3. Other: In the event Customer should make any connection to Xcel Energy's System without first having applied for and been granted approval as provided in Section 1 hereof, Xcel Energy shall have the right to summarily, and without notice to Customer, disconnect and remove such equipment at the sole cost and expense of Customer and without any liability thereof. 7. ACCESS 7.1. The Company shall have access to the disconnect switch of the Unit at all times. At reasonable hours and upon reasonable notice consistent with Section 2 of this Agreement, or at any time without notice in the event of an emergency (as defined in Section 6), the Company shall have access to the Customer’s premises. The Company shall designate, and shall provide to the Customer, the name and telephone number of a representative or representatives who can be reached at all times to allow the Customer to report an emergency and obtain the assistance of the Company. For the purpose of allowing access to the premises, the Customer shall provide the Company with the name and telephone number of a person who is responsible for providing access to the customer’s premises. If necessary for the purposes of this Agreement, the Customer shall allow the Company access to the Company’s equipment and facilities located at the Customer’s premises. To the extent that the Customer does not own all or any part of the property on which the Company is required to locate its equipment or facilities to serve the Customer under this Agreement, the Customer shall secure and provide in favor of the Company the necessary rights to obtain access to such equipment or facilities, including easements if the circumstances so require.

7.2.

7.3.

(Continued on Sheet No. 10-58) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT (Continued) 8. INSURANCE Section No. Original Sheet No. 10 58

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Appendix 1

8.1. Customer shall maintain commercial general liability insurance insuring Customer against liability for personal injury, death or damage to personal property arising out of use of the Asset by Customer or its employees, its agents or Customers , with combined umbrella limits of not less than three hundred thousand dollars ($300,000) for Units up to and including 100 kW and one million dollars ($1,000,000) for Units greater than 100 kW and less than 2 MW. Customer's engineering or electrical subcontract, if any, shall carry insurance for errors and omissions with a combined single limit of not less than one Million Dollars ($1,000,000). Customer shall also include Xcel Energy as additional insured under the policies. Notwithstanding anything in this Agreement to the contrary, Customer releases Xcel Energy from all liability except for Xcel Energy's negligence or misconduct, in connection with a loss covered by any policies which the Customer carries with respect to the Unit. 8.2. All required insurance policies must be taken out with reputable national insurers that are licensed to do business in the jurisdiction where the Assets are located, are rated B+ or better by Best's. Customer agrees that certificates of insurance will be delivered to Xcel Energy as soon as practicable after the placing of the required insurance, but not later than the Commencement Date of a particular ASA. Customer will provide an insurance certificate to Xcel Energy annually. All policies must contain an undertaking by the insurers to notify Xcel Energy in writing not less than thirty (30) days before any cancellation, or termination of the insurance. Xcel Energy and Customer will each year review the limits for the insurance policies required by this Agreement. The provision of insurance required in this Agreement shall not be construed to limit or otherwise affect the liability of any party to the other party.

8.3.

9.

INDEMNIFICATION 9.1 Each party shall indemnify and save harmless the other from and against any and all costs, (including reasonable attorney's fees and expenses), claims, actions, damages, liability and expense in connection with the loss of life, personal injury, and/or damage to property arising from or out of: any occurrence in, upon, at, or directly related to the Point caused by the fault, including negligence or willful misconduct, of either Party or the Party’s agents, customers, or invitees. or any occurrence caused by the violation of any law, regulation or ordinance applicable to Customer's actual use of or presence on the System.

(Continued on Sheet No. 10-59) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT (Continued) 9. INDEMNIFICATION (Continued) 9.2 Any party being indemnified ("Indemnitee") shall give the party making the indemnification ("Indemnitor") written notice of any claim/demand as soon as reasonably possible. The provisions of this Section shall survive the termination of this Agreement with respect to any damage, injury, or death occurring before such termination Section No. Original Sheet No. 10 59

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9.3 10.

ASSIGNMENT 10.1. Customer may assign this Agreement only to another person qualifying under the tariff. Company shall provide written notice of consent to assignment such consent shall not be unreasonably withheld. 10.2. Xcel Energy may make any sale, lease, license or transfer of any portion of the System, provided such sale, lease, license or transfer is subject to the terms and conditions of this Agreement and the applicable ASA.

11.

CASUALTY OR CONDEMNATION 11.1 If there is a casualty to a portion of the connected Xcel Energy System, Xcel Energy must make reasonable and diligent effort within sixty (60) days to repair or restore the facilities. Upon completion of such repair or restoration, Customer is entitled to reconnect Customer's Unit. The costs to reconnect Unit shall be the sole responsibility of the Customer. In the event such repairs or restoration will reasonably require more than sixty (60) days to complete, Customer is entitled to terminate the applicable ASA upon thirty (30) days prior written notice or to request substitute Point, if available, subject to the ASA terms of this Agreement. In the event of a condemnation of any portion of Xcel Energy’s System, including without limitation a transfer of the System thereof by consensual deed in lieu of condemnation, then the ASA for the condemned System will terminate immediately, without further liability to either party under this Agreement. Customer is entitled to pursue a separate condemnation award, including an award for relocation expenses, from the condemning authority or to request substitute Point, if available, subject to the ASA terms of this Agreement.

11.2

(Continued on Sheet No. 10-60) Date Filed: Docket No. 11-02-05 02-01-07 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company 09-01-06 E002/GR-05-1428 Order Date:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 60

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Appendix 1 DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT (Continued) 12. DEFAULT, TERMINATION AND REMEDIES 12.1. The occurrence of any one or more of the following events constitutes an "event of default" by Customer under the applicable ASA: 12.1.3. if Customer fails to pay any Fee or other sums payable by Customer for the applicable Point within thirty (30) business days of Customer's receipt of written request for payment; or

12.1.4. any equipment connected to the System by Customer, is in violation of any of the terms of this Agreement or the standards incorporated herein or unreasonably interferes with any equipment located on the System and Customer fails to resolve such interference problem in a reasonable time after receiving written notice specifying the alleged interference; 12.1.5. any equipment placed on the System by Customer unreasonably interferes with Xcel Energy's ability to improve, modify or reconfigure its electric transmission or distribution system as needed to meet its obligation to provide electric service and Customer fails to resolve such interference problem within a reasonable time after receiving written notice specifying the alleged interference; Customer fails to comply with an upgrade in the Interconnection Requirements or to correct a safety deficiency within 10 working days.

12.1.6. If an event of default occurs after expiration of all applicable notice and cure periods, while Customer remains in default, Xcel Energy (without notice or demand except as expressly required above) may terminate the applicable ASA, in which event Customer will immediately surrender the applicable Point to Xcel Energy. Customer will become liable for damages equal to the total of the actual costs including all overheads, of returning the System to normal, plus interest thereon at the Past Due Interest Rate from the date due until paid; and all other sums of money and damages owing by Customer to Xcel Energy. Nothing in this Section shall be construed to limit Xcel Energy’s rights to disconnect a Customer from parallel operation pursuant to Section 6. 12.2 . In addition to any other rights to terminate this Agreement Xcel Energy has the right to terminate an ASA and all of Customer's rights to the Point upon thirty (30) days prior written notice to Customer if Xcel Energy is prohibited by any law or action of any governmental entity from continued use of the System during the term of this Agreement. (Continued on Sheet No. 10-61)

Date Filed: Docket No.

11-02-05

By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/GR-05-1428 Order Date:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 61

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Appendix 1 DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT (Continued) 12. DEFAULT, TERMINATION AND REMEDIES (Continued) 12.3. Customer may at any time disconnect and/or remove its equipment from the System and terminate this Agreement provided that it gives Xcel Energy thirty (30) days written notice prior to removal and termination. No adjustment, prorate or refund of any pre-paid or otherwise submitted payments will be due on account of such removal. Should Customer thereafter again wish to make connection to such System, it shall make application and receive approval therefore, as provided in Section 1 hereof. Upon termination of this Agreement the Unit will be disconnected from the Company’s electric system. The termination of this Agreement shall not relieve either Party of its liabilities and obligations, owed or continuing at the time of the termination.

13.

GENERAL PROVISIONS 13.1. Agreement. This Agreement and each ASA constitutes the entire agreement and understanding between the parties, and supersedes all offers, negotiations and other agreements concerning the subject matter contained in this Agreement. There are no representations or understandings of any kind not set forth in this Agreement. Any amendments to this Agreement or any ASA must be in writing and executed by both parties. Nothing herein affects the Company’s obligations or customer’s rights to receive electric service at retail pursuant to the applicable tariffs. No Waiver. No provision of this Agreement or a ASA will be deemed to have been waived by either party unless the waiver is in writing and signed by the party against whom enforcement is attempted. No custom or practice which may develop between the parties in the administration of the terms of this Agreement or any ASA are to be construed to waive or lessen any party's right to insist upon strict performance of the terms of this Agreement or any ASA. The rights granted in this Agreement and under each ASA is cumulative of every other right or remedy that the enforcing party may otherwise have at law or in equity or by statute and the exercise of one or more rights or remedies will not prejudice or impair the concurrent or subsequent exercise of other rights or remedies.

13.2.

(Continued on Sheet No. 10-62)

Date Filed: Docket No.

11-02-05

By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/GR-05-1428 Order Date:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 62

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Appendix 1 DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT (Continued) 13. GENERAL PROVISIONS (Continued) 13.3. Notice. Any notice or demand required to be given in this Agreement shall be made by certified or registered mail, return receipt requested or reliable overnight courier to the address of other parties set forth below: NSP d/b/a Xcel Energy: Name, Department 414 Nicollet Mall Minneapolis, MN 55401 cc: Northern States Power Company Law Department 414 Nicollet Mall Minneapolis, MN 55401

Customer: cc: Any such notice is deemed received one (1) business day following deposit with a reliable overnight courier or five (5) business days following deposit in the United States mail addressed as required above. Xcel Energy or Customer may from time to time designate any other address for this purpose notice to the other party. 13.4. Environmental Matters. Customer's use of any substances constituting environmental hazards must comply with all applicable laws, ordinances, and regulations governing such use. Customer shall obtain all environmental and other permits lawfully required by governmental authorities prior to the construction and for the operation of the Unit during the term of this Agreement. 13.5. Governing Law. The terms and conditions of this Agreement shall be subject to any and all applicable law that is currently in force or that may be prescribed by federal, state, or local government authority. All such law shall supersede the provisions hereof.

(Continued on Sheet No. 10-63) (Continued on Sheet No. 10-63) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/GR-05-1428 Order Date:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 63

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Appendix 1 DISTRIBUTED GENERATION/PARALLEL OPERATIONS MASTER INTERCONNECTION AGREEMENT (Continued) 13. GENERAL PROVISIONS (Continued) 13.6. Force Majeure If a party is delayed or hindered in, or prevented from the performance required under this Agreement by reason of earthquakes, landslides, strikes, lockouts, labor troubles, failure of power, riots, supply shortages, insurrection, war, acts of God or other reason of like nature not the fault of the party delayed in performing work or doing acts, such party is excused from such performance for the period of delay. The period for the performance of any such act shall then be extended for the period of such delay. 13.7 13.8 Counterparts. This Agreement may be signed in counterparts by the parties hereto. Confidentiality. Both parties understand and agree that documents and materials submitted by Customer in support of an ASA pursuant to Section 3 of this Agreement are, and contain information that is, proprietary and trade secret, and Xcel Energy agrees to treat all such documents and materials as proprietary and trade secret and maintain them as strictly confidential.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. CUSTOMER NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION AND WHOLLY OWNED SUBSIDIARY OF XCEL ENERGY, INC. By: ________________________________

T T

By: _____________________________

Name: ___________________________

Name: _____________________________

Title: ____________________________

Title: ____________________________

(Continued on Sheet No. 10-64) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/GR-05-1428 Order Date:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 64

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Appendix 2 XCEL ENERGY DISTRIBUTED GENERATION/PARALLEL OPERATIONS INTERCONNECTION APPLICATION AND SERVICE AGREEMENT This Interconnection Application is made to the Master Distributed Generation Agreement between Northern States Power Company ("Xcel Energy") and Customer dated _________ 200__. Capitalized terms used in this ASA have the same meaning as such terms in the Distributed Generation/Parallel Operation Master Interconnection Agreement unless otherwise indicated. A. To be completed by Customer: Application is made for permission to interconnect to System as follows:

OWNER/APPLICANT INFORMATION Company: Representative: Title: Mailing Address: PROPOSED LOCATION OF GENERATING PLANT AND PROPOSED INTERCONNECTION Address: PROJECT DESIGN / ENGINEERING Company: Representative: Mailing Address: ELECTRICAL CONTRACTOR Company: Representative: Mailing Address ESTIMATED LOAD INFORMATION The following information will be used to help properly design the Xcel Energy-Customer interconnection. This information is not intended as a commitment or contract for billing purposes. Minimum anticipated load (generation not operating): kVA: Time: Maximum anticipated load (generation not operating): kVA: Time: Phone: FAX Number: Phone: FAX Number: Phone Number: FAX Number:

(Continued on Sheet No. 10-65) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/GR-05-1428 Order Date:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 65

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Appendix 2 XCEL ENERGY DISTRIBUTED GENERATION/PARALLEL OPERATIONS INTERCONNECTION APPLICATION AND SERVICE AGREEMENT (Continued) Existing Electric Service: Capacity: Amperes Voltage: volts Service Character: ο Single Phase ο Three Phase Estimated In-Service Date: Energy Producing Equipment/Inverter Summary: Manufacturer: Version No. Model No. ο Synchronous ο Induction ο Inverter ο Other kW Rating: kVA Rating: Generator Connection: ο Delta ο Wye ο Wye Grounded Volts Interconnection Voltage: System Type Tested (Total System): ο Yes ο No; attach product literature Equipment Type Tested (i.e. Inverter, Protection System): ο Yes ο No; attach product literature (Complete all applicable items, Copy this page as required for additional generators) SYNCHRONOUS GENERATOR DATA Unit Number: Total number of units with listed specifications on site: Manufacturer: Type: Serial Number (each) Phases: 1 or 3 Rated Output (each unit) Kilowatt: Rated Power Factor (%): Field Voltage (Volts): Synchronous Reactance (Xd): Transient Reactance (X'd): Subtransient Reactance (X"d): Negative Sequence Reactance (Xs): Zero Sequence Reactance (Xo): Neutral Grounding Resistor (if applicable): 2 I t or K (heating time constant): Exciter data: Rated Voltage(Volts): Field Current (Amperes): % on % on % on % on % on Speed (RPM): Kilovolt-Ampere: Rated Current (Amperes): Motoring Power (kW): kVA base kVA base kVA base kVA base kVA base Frequency (Hz): Date of manufacture:

Governor data: Note: Power System Stabilizer (supplemental excitation system) required on machines 75MW and larger. Additional Information: (Continued on Sheet No. 10-66) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/GR-05-1428 Order Date:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 66

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Appendix 2 XCEL ENERGY DISTRIBUTED GENERATION/PARALLEL OPERATIONS INTERCONNECTION APPLICATION AND SERVICE AGREEMENT (Continued) INDUCTION GENERATOR DATA Rotor Resistance (Rr): Rotor Reactance (Xr): Magnetizing Reactance (Xm): Design Letter: Exciting Current: Rated Output (kW): Reactive Power Required: k Vars (no Load) kVars (full load) If this is a wound-rotor machine, describe any external equipment to be connected (resistor, rheostat, power converter, etc.) to rotor circuit, and circuit configuration. Describe ability, if any, to adjust generator reactive output to provide power system voltage regulation. Additional Information: PRIME MOVER (Complete all applicable items) Unit Number: Type: Manufacturer: Serial Number: H.P. Rated: Type of Interconnected operation Long term Parallel operation TRANSFORMER (If applicable) Manufacturer: Date of Manufacture: High Voltage: Low Voltage: Transformer Impedance (Z): Transformer Resistance (R): Transformer Reactance (X): Neutral Grounding Resistor (if applicable) (Continued on Sheet No. 10-67) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/GR-05-1428 Order Date: kV kV Serial Number: Connection: Connection: delta delta wye wye % on % on % on Neutral solidly grounded? Neutral solidly grounded? kVA base kVA base kVA base H.P. Max: Energy Source (hydro, steam, wind, etc.): Date of Manufacture: Inertia Constant: lb.-ft.2

Ohms Ohms Ohms

Stator Resistance (Rs): Stator Reactance (Xs): Short Circuit Reactance (Xd"): Frame Size: Temp Rise (deg C°):

Ohms Ohms Ohms

kvA:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 67

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Appendix 2 XCEL ENERGY DISTRIBUTED GENERATION/PARALLEL OPERATIONS INTERCONNECTION APPLICATION AND SERVICE AGREEMENT (Continued) INVERTER DATA (If applicable) Manufacturer: Model: Rated Power Factor (%): Rated Voltage (Volts): Rated Current (Amperes): Inverter Type (ferroresonant, step, pulse-width modulation, etc.): Type of Commutation: forced line Minimum Short Circuit Ratio required: Minimum voltage for successful commutation: Current Harmonic Distortion Maximum Individual Harmonic (%): Maximum Total Harmonic Distortion (%): Voltage Harmonic Distortion Maximum Individual Harmonic (%): Maximum Total Harmonic Distortion (%): Describe capability, if any, to adjust reactive output to provide voltage regulation: NOTE: Attach all available calculations, test reports, and oscillographic prints showing inverter output voltage and current waveforms. POWER CIRCUIT BREAKER (if applicable) Manufacturer: Model: Rated Voltage (kilovolts): Rated Ampacity (Amperes): Interrupting Rating (Amperes): BIL Rating: Interrupting Medium (vacuum, oil, gas, etc.) Insulating Medium (vacuum, oil, gas, etc.) Control Voltage (Closing): (Volts) AC DC Control Voltage (Tripping): (Volts) AC DC Battery Charged Capacitor Close Energy: Spring Motor Hydraulic Pneumatic Other Trip Energy: Spring Motor Hydraulic Pneumatic Other Bushing Current Transformers (Max. ratio): Relay Accuracy Class: Multi Ratio? No Yes: (Available taps): Construction Schedule: Start date: Completion date: MISCELLANEOUS (Use this area and any additional sheets for applicable notes and comments)

(Continued on Sheet No. 10-68) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/GR-05-1428 Order Date:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 68

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Appendix 2 XCEL ENERGY DISTRIBUTED GENERATION/PARALLEL OPERATIONS INTERCONNECTION APPLICATION AND SERVICE AGREEMENT (Continued) ADDITIONAL REQUIREMENTS: In addition to the items listed on this form, please attach: 1) 2) 3) 4) 5) 6) 7) 8) Detailed One Line Diagram: ο Yes Installation Test Plan: ο Yes Site plan: ο Yes Major equipment (generators, transformers, inverters, circuit breakers, protective relays, isolation disconnect, etc.) specifications: ο Yes Relaying detail: ο Yes Date: Metering telemetry: ο Yes Date: Test reports attached: ο Yes Date: Other applicable drawings or documents necessary for the proper design of the interconnection: Describe Date submitted:

ACCEPTANCE The Customer agrees to provide Xcel Energy with any additional information required to complete the interconnection study and accepts terms and conditions set forth by the Distributed Generation Master Interconnection Agreement, including all Exhibits. . Customer Signature Date:

SEND APPLICATION AND ATTACHMENTS TO: ________, MN _______

__________, ____________________________, ______________,

Information below to be completed by Xcel Energy Xcel Energy Rep.: Name of Project: Phone:

(Continued on Sheet No. 10-69) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company 09-01-06 E002/GR-05-1428 Order Date:

S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn_elec\Me_10_068.doc

Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 69

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Appendix 2 XCEL ENERGY DISTRIBUTED GENERATION/PARALLEL OPERATIONS INTERCONNECTION APPLICATION AND SERVICE AGREEMENT (Continued) Xcel Energy service point location (attach service map if available): EQUIPMENT TO BE FURNISHED BY THE COMPANY: Service equipment, additions, modifications, or replacements as follows:

Distribution system equipment additions, modifications, or replacements as follows: Transmission system additions, modifications, or replacements as follows: COST ALLOCATION OF COMPANY-PROVIDED EQUIPMENT: Service equipment Distribution system equipment Transmission system equipment SPECIAL OPERATIONAL REQUIREMENTS: Special Monitoring equipment Special Operational restrictions

XCEL ENERGY MISCELLANEOUS COMMENTS / NOTES:

(Continued on Sheet No. 10-70) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 70

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XCEL ENERGY DISTRIBUTED GENERATION/PARALLEL OPERATIONS INTERCONNECTION APPLICTION AND SERVICE AGREEMENT (Continued) Customer By signing below, I certify that I have provided Xcel Energy with all pertinent facts, information and materials supporting my request to operation my generator in parallel with the Xcel Energy System. I also accept responsibility for all fees, terms and conditions as presented in the Distributed Generation Master Interconnection Agreement and this Interconnection Agreement. By: Name: Title: Telephone No.: Fax No.:

Xcel Energy I have provided Work and Interconnection Cost estimates representative of the work requited to connect the customer’s generator in parallel with the Xcel Energy distribution System. By: Name: Title:

Fee Schedule

(To be completed based on project characteristic and in accordance with Pre-Interconnection Fee Schedule)

(Continued on Sheet No. 10-71) Date Filed: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07

Docket No.

President and CEO of Northern States Power Company E002/GR-05-1428 Order Date:

09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 71

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(Continued on Sheet No. 10-72) Date Filed: Docket No. 11-02-05 By: Kent T. Larson Effective Date: 02-01-07 Vice President, Customer and Community Relations E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 72

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XCEL ENERGY DISTRIBUTED GENERATION INTERCONNECTION STUDY FEE SCHEDULE Installation Proposed on Normal Secondary Retail Service Generator Size 0 < 100kW 100 < 1000kW 1,000 < 2,000kW Installation Proposed on Secondary Network Retail Service Generator Size 0 < 2,000kW Study Cost Actual cost, see note # 6 Study Cost $250.00 $875.00 $1,875.00

Notes: 1. The above costs do not include the cost of certifying the interconnection equipment used in the installation acceptable for use on the Xcel Energy System. Certification of the equipment will cost an additional $375 per unit and will be incorporated in fee for first customer requesting an Interconnection study for a particular unit. Cost for study of multiple generators on same feeder segment, increase study costs by $125/hour - not to exceed $1,000 additional. Xcel Energy will provide customer a Distributed Generation/Parallel Operations Master Agreement detailing all interconnection costs within 65 days after receipt of completed Application and Service Agreement. If aggregate of existing and proposed Unit would exceed standard feeder segment loading or short circuit contribution on normal secondary retail service, further study may be required, if applicable. Required study will cost an additional $625. Add up to 65 days of response time to determine a Distribution facility credit. Add an additional $125/hour for study cost - not to exceed $7,000. For customer proposing generation on secondary network retail service locations, study cost will be dependant on scope of request, the variables involved and based actual costs. Xcel Energy cannot provide an exact cost estimate at this time

2.

3.

4.

5.

6.

Date Filed: Docket No.

11-02-05

By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF Section No. Original Sheet No. 10 73

.

AVAILABILITY Available to retail electric customers at distribution voltages and who operate a qualifying distributed generating (DG) facility, as defined below, with nameplate rating of 10,000 kW or less, and is operated in parallel with Company’s distribution system. Such DG facilities may be up to 35,000 volts at three-phase. Single-phase DG facilities, generally, must not exceed a nameplate rating of 25 kW. Company will evaluate and approve all DG facility interconnection plans on case-by-case basis. QUALIFICATION 1. Qualifying Distributed Generation (DG) facilities may include but are not limited to, fuel cell, solar, micro turbine generators and other utility industry accepted DG technologies, subject to Company’s approval. For windpowered electric generating facilities with nameplate rating of 2,000 kW or less, customer shall refer to Company’s separately established Small Distributed Wind Generation Purchase tariff. 2. Customer’s qualifying Distributed Generation facility may be a facility which does not qualify as a Qualifying Facility (QF) under the Public Utility Regulatory Policy Act of 1978 (PURPA) or may be a QF for which the customer elects not to exercise its rights to avoided-cost-pricing under PURPA. Customer is responsible for obtaining any required Federal Energy Regulatory Commission (FERC) approval for the sale of energy and capacity under this tariff from its facility. The distributed generating facility must be an operable, permanently installed or mobile generation facility and serving the customer receiving retail electric service from the Company at the same site.

3.

APPLICATION OF SERVICES Customer seeking interconnection and to operate a DG facility in parallel must complete and submit to Company a signed Generation Interconnection Application Form (“Interconnection Application”) and the applicable Interconnection Application Fee. Please see the schedule for Generation Interconnection Application Fees under Process for Interconnection Step 1 Application (By Applicant) on Sheet 92 of this section. Company will initiate project upon receipt of complete information needed for Interconnection Application. STUDIES AND SERVICES Interconnection study or studies are required and shall be conducted by Company as part of the terms and conditions of service under this tariff. Please see the Process for Interconnection in this section for more information regarding these studies. Please see the schedule for Generation Interconnection Application Fees under Process for Interconnection Step 1 Application (By Applicant) on Sheet 92 of this section. A fee schedule for the engineering studies will be assessed as provided in this tariff. This study fee schedule may be revised from time to time, upon Commission approval, to reflect changes in Xcel Energy’s costs of conducting the studies. Any other studies and services provided pursuant to agreement by the customer and Company may be subject to Commission review. All review and study fees are non-refundable, whether or not the customer decides to pursue the project.

(Continued on Sheet No. 10-74) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 2nd Revised Sheet No. 10 74

CONTRACTS Customers must also execute an Interconnection Agreement for the Interconnection of Extended Parallel Distributed Generation Systems with Electric Utilities (Interconnection Agreement) under this tariff that covers the costs and responsibilities associated with making interconnections and a Power Purchase Agreement (PPA) for sale of energy and capacity from its DG. The term of these agreements may be up to 20 years. Each customer DG project under this tariff will be evaluated on a customer- and site-specific basis, to determine eligibility, system reliability and impact on Company’s transmission and distribution system. The customer may sell all of the DG energy to the Company, supply all of the DG energy to itself, or self generate part of its needs and sell the remaining energy to the Company. The Company shall purchase all electricity generated and offered for sale to the Company by the DG facility pursuant to the terms, conditions and price schedule of the PPA. Customer may also choose to provide DG services to Xcel Energy under other existing tariff riders or through negotiations with Xcel Energy. Under certain circumstances the customer may also qualify for a Distribution Facility Credit, which shall be governed under the Interconnection Agreement. STANDBY SERVICE REQUIREMENTS All customers eligible for this DG tariff who use their generation to serve on-site load may contract for Standby Service from the Company. If the customer chooses not to contract for Standby Service, standby power may not be available. Customers may instead choose to be a physical assurance customer. A physical assurance customer is a customer who agrees to not require standby services and has a mechanical device to ensure that standby service is not taken. The cost of the mechanical device, which must be reasonable, is to be paid by the DG customer. Residential customers participating in the DG tariff are excluded under modification number 1) identified below. Standby service is available to Residential DG customers through their base rate at no additional cost. The customer shall be subject to the terms and conditions of the Company’s Standby Service Rider except as specifically modified here. These modifications are as follows: 1) Customers on this DG tariff with Standby service requirements less than or equal to 60 kW in size shall be exempted from taking service under the Standby Service Rider. Standby service will be available to these customers through the general electric service tariffs offered by the Company. For customers not contracting for Standby service, the DG customer must pay the following charges for the delivery system connected to the DG customer: Firm Standby Unscheduled Scheduled Maintenance Maintenance

2)

Reservation Fee: Demand Charge per Month per kW of Contracted Standby Capacity Distribution Standby Capacity Fee Secondary Voltage Service Primary Voltage Service Transmission Transformed Voltage Service Transmission Voltage Service Transmission Standby Capacity Fee Generation Standby Capacity Reservation Fee

Non-Firm Standby

$2.20 $1.65 $0.90 $0.00 $2.35 $0.62

$2.20 $1.65 $0.90 $0.00 $2.35 $0.52

$2.20 $1.65 $0.90 $0.00 $2.35 $0.00

NR R

(Continued on Sheet No. 10-75) Date Filed: Docket No. Effective Date: 11-03-08 By: Judy M. Poferl President and CEO of Northern States Power Company, a Minnesota corporation Order Date: E002/GR-08-1065 04-01-10 10-23-09

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 75

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DISTRIBUTION FACILITY CREDIT Customer may also be eligible for a Distribution Facility Credit (DFC). Upon request, a list of substation areas or feeders that could be likely candidates for distribution credits as determined through the Company’s normal distribution planning process shall be provided to the requestor. The terms and conditions of such credit shall be determined from a case specific study of avoided distribution costs. Such study shall include review of both avoided distribution lines and avoided distribution transformers. The value of the DFC shall be equal to the Company’s avoided distribution costs resulting from the installation of the DG facility. The avoided distribution costs are based on Company’s annually conducted distribution capacity planning study that identifies capacity needs, upgrade and load growth on area distribution feeders. Upon receiving a DG application, and as part of the case specific study, the company will perform an initial screen of DG project to determine if the project is located on a distribution feeder that has potential for a DFC. The DG customer is responsible for the cost of such screening study. If the screening study shows that there exists potential for a DFC, the Company shall, at its own cost, pursue further study to determine the DFC, as part of an annual distribution capacity study. Once established by contract and accepted by Company and customer, DFC shall be fixed over the term of the contract. LINE LOSS CREDITS If Customer requests the Company to provide a specific line loss study, Customer may be eligible for additional line loss credits if the study supports such credits. The Customer is responsible for the cost of the study, regardless of the study’s outcome. RENEWABLE RESOURCE CREDIT If the customer installs a renewable resource distributed generation system that allows the Company to avoid the need to purchase renewable energy elsewhere, then the purchase of such renewable energy and capacity shall equal the avoided cost of renewable purchases. Otherwise the DG customer shall be paid the Company’s regular avoided costs. In the event that the Customer receives renewable credits, that is, the Customer is paid by the Company the avoided cost of renewable energy purchases, then this transaction will constitute a transfer of the property rights for those renewable attributes from the renewable energy generated from Customer to the Company. Customer may receive either renewable credits or tradable emission credits but not both.

D

(Continued on Sheet No. 10-76) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 76

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TRADABLE EMISSIONS CREDITS If the purchase of energy and capacity from the DG customer’s facility results in the Company receiving an economic value associated with tradable emissions, such tradable emissions credits shall be provided to the DG customer under terms that equal the value of the revenues from the tradable emissions credits. Customer may receive either renewable credits or tradable credits but not both. POWER PURCHASE AGREEMENT TERMS Energy and Capacity Purchase Payments Energy Payment rate schedule shall be based on Company’s expected average marginal energy costs for on-peak and off-peak periods for each month of the year. The energy payment rate shall be updated annually. The table below is intentionally left blank. However, upon written request by customer and after signing a confidentiality agreement, Company shall provide Customer the current schedule of energy payments. Payment Schedule for Energy Delivered to Company Secondary Primary Energy Payment per kWh Month January February March April May June July August September October November December On-Peak Off-Peak

(Continued on Sheet No. 10-77) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 77

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Energy and Capacity Purchase Payments (Continued) Capacity payment rate schedule shall be based on the total fully accredited DG capacity made available by the facility to the Company. The capacity payment shall be set for the term of the PPA agreement based on the year in which the agreement is signed and may escalate at a fixed rate through the term of the agreement. Full capacity payment will be based on the total accredited DG capacity, regardless of when the power is delivered to the system. The capacity payment shall be the product of the billing capacity, which equals the monthly accredited capacity in kW for the billing month and the applicable capacity payment rate. The procedure to determine monthly accredited capacity is defined in the PPA and the method of determining the capacity payment rate is below. Upon written request of the customer, which includes the required customer specified parameters, Company shall determine the capacity payment rate. The starting value for capacity payment will be taken from the Company’s Annual Filing of Cogeneration and Small Power Production Tariffs and will be adjusted based on project specifics characteristics as described below. The fixed escalation rate is 2.5% per year to be applied on the anniversary of the commercial operation date. 1) 2) 3) 4) The need for capacity is established in the utility’s most recent integrated resource plan (IRP). A need exists if the utility shows a deficit at any year of the 5-year planning period. Capacity payments should be made for the total fully accredited DG capacity, regardless of when the power is delivered to the system. The expected life of a capacity addition is the expected life of the specific capacity addition from the utility’s most recently approved integrated resource plan. If the contract to purchase power from a DG source begins at the time the utility needs the capacity, then the full capacity payment is made, adjusting only as needed for the length of the contract (i.e., there is no discount for adding capacity sooner than it is needed). The formula for adjustments to capacity payments is:

5)

A2 =

(1 + i)m − 1 (1 + i)n-a − (1 + e)n-a (1 + i)n − 1 * (1 + i)m − (1 + e)m

* A1

Where: A1 = Levelized annual value of a capacity purchase at the time of need. A2 =Levelized annual value of the capacity paid for in a power purchase contract. m =Expected lifetime of ordinary (alternative) future capacity addition. n = Length of power purchase contract. l = Utility Cost of Capital. e = Escalation rate affecting value of new capacity additions. a = Length of time between beginning of contract and time of need for capacity.

(Continued on Sheet No. 10-78) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 78

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Definition of Peak Periods The on peak period is defined as those hours between 9:00 a.m. and 9:00 p.m. Monday through Friday, except the following holidays: New Year’s Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. When a designated holiday occurs on a Saturday, the preceding Friday will be designated a holiday. When a designated holiday occurs on a Sunday, the following Monday will be designated a holiday. The off peak period is defined as all other hours not designated as on peak hours. Summer months are July and August; Non-Summer months are all other months. Definition of on peak and off peak period is subject to change with change in Company’s system operating characteristics or electric energy market standards. TERMS AND CONDITIONS OF SERVICE 1. Electric service provided by Company to customer at the same site during the same billing period shall be billed in accordance with the appropriate retail electric rates; thus, supplemental load service shall be provided to the DG customer through the Company’s base electric rates. Company shall pay customer each month according to the applicable Distribution Facility Credit, Energy and Capacity Purchase Payments established in the contracts under this tariff. The customer must enter an Interconnection Agreement with the Company for the interconnection and parallel operation of any qualifying DG facility under this tariff. In order to receive energy and capacity payments, the customer must execute a Power Purchase Agreement with Company. Customer is responsible for any applicable study fees and interconnection costs. The customer must pay all such costs as specified in the Interconnection Agreement. The customer shall be responsible for all costs associated with the installation, operation, and maintenance of the facility. Company may assess a monthly fee for metering and billing the Distribution Facility Credit, Energy and Capacity Purchase Payments transactions. Typical costs for meter reading and billing are shown below. For most DG installations, two meters are required. The appropriate metering options available are assessed on a project-by-project basis. For further information, please see “Generation, Metering, Monitoring and Control” beginning on tariff sheet 147 of the Interconnection Process for Distributed Generation Systems. The voltage and phase of customer’s distributed generation facility must be consistent with existing retail service configuration and is approved by the Company in accordance with the Company’s interconnection requirements. The customer must maintain a power factor as close to unity as is consistent with the Company’s interconnection requirements.

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3.

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(Continued on Sheet No. 10-79) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 79

TERMS AND CONDITIONS OF SERVICE (Continued) 9. Customer’s DG facility shall not commence parallel operation until it has established, to the satisfaction of the Company, that it complies with and has met the standards set forth in any applicable Commission or the Midwest Reliability Organization (MRO) and MAPP or any successor organization rules as well as the Company’s interconnection requirements. In addition to an automatic fail-safe device, the Company will require an accessible, company approved disconnection device having the capability of isolating the energy generated by each distributed generation facility. This device may be operated by either party at any time in order to maintain safe operating conditions. Distributed generation customer shall be responsible for any expense incurred by the Company on behalf of the customer or as a result of the customer’s DG facility, which is not covered in the terms of the Interconnection Agreement. The range of typical DG interconnection costs is shown below along with the types of typical modifications and upgrades included in the interconnection cost. During the term of the Interconnection Agreement the DG customer shall maintain liability insurance which insures customer against all claims for property damage and for personal injury or death arising out of, resulting from, or in any manner connected with the installation, operation, and maintenance of the DG facility. The amount of such insurance coverage shall be as specified in the Interconnection Agreement. The Company is under no obligation to revise or transfer customer’s existing Qualifying Facility (QF) contract(s) still in effect to a PPA. In order to be eligible to receive a capacity payment, the facility must meet the minimum requirements for capacity accreditation in the Midwest Reliability Organization (MRO) and MAPP or any successor organization, as specified in the Midwest Reliability Organization (MRO) and MAPP or any successor organization rules and procedures. The Company shall have the right to seek capacity accreditation through its own effort with its affiliated power pool and customer will provide reasonable cooperation. The Company shall recover energy costs associated with these purchases pursuant to the provisions of the Fuel Clause Rider.

T

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11.

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14.

T T

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(Continued on Sheet No. 10-80) Date Filed: Docket No. 05-19-08 By: David M. Sparby Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/M-08-568 Order Date: 10-10-08 10-10-08

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 80

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TYPICAL COSTS FOR METER READING AND BILLING Meter Reading Billing Total Monthly Cost Notes: 1. 2. 3. 4. 5. 6. 7. 8. $1.00 $5.00 $6.00

See Table 5a, Section 10, Sheet 148 of Tariff for further information on metering. Costs in the table do not include the initial cost of metering with installation. Costs in the table do not include services and metering provided to the customer under a traditional, non-DG tariffed rate. Additional, customer requested meters, special configurations, or severe access problems that are not covered in the tariff are not included in the table and may result in higher monthly fees. Meter costs provided are on a per meter basis. Billing costs provided are on a per billing account basis. Arrangements not covered in the tariff are not included in the table and may result in higher monthly fees. The above does not include monthly telemetry costs.

Range of Typical DG Interconnection Costs DG Size Range 0 - <40 kW 40 - 250 kW >250 – 1000 kW >1 MW Notes: 1. 2. 3. 4. 5. Limited Parallel $300 to $10,000 $500 to $15,000 $2,000 to $25,000 $5,000 to $35,000 Extended Parallel $300 to $10,000 $500 to $20,000 $2,000 to $150,000 $5,000 to $1,000,000

6.

All costs are scoping estimates. Actual circumstances and detailed studies, as specified in the tariff, will determine the actual requirements and costs. Costs provided for Limited Parallel interconnections assume no intentional power flowing to Xcel Energy and the parallel operation is of limited duration such as during a closed transition load transfer. Cost provided for > 1 MW does not include telemetry costs. The minimum cost value entails a simple interconnection with no system modifications required. The maximum cost value provides a high-end estimate that includes significant system modifications. The values assume that the generation facility is of a size that is easily accommodated by an existing system. Generations facilities that are large compared to the strength of the distribution system can require extensive system upgrades far in excess of the cost values provided in the table. Costs provided do not include additional expenses imposed by local government requirements. For example, a local ordinance that requires all new distribution to be built underground may result in significant costs beyond those represented in the table.

(Continued on Sheet No. 10-81) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 81

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Types of Typical Modifications and Upgrades Included in the Interconnection Cost Range Table 0 – 40 kW • Larger distribution transformer • Reconductor secondary loop • Separation of DG from non-DG customers on secondary 40 – 250 kW • Relocation of fuse • Relocation of line recloser • Line recloser setting changes • Additional distribution transformer for DG 250 – 1000 kW • Relocation of fuse • Relocation, installation, or removal of line recloser • Line recloser and/or substation setting changes • Replacement of line recloser or sectionalizer with electronic controlled recloser to provide additional protective functions • Reconductor of short line segments • Conversion of short line segments from single-phase to three-phase • Construction of new line segments • Additional distribution transformer for DG > 1000 kW • Relocation of fuse • Relocation, installation, or removal of line recloser • Line recloser and/or substation setting changes • Replacement of line recloser, sectionalizer, and/or substation feeder recloser with electronic controlled recloser to provide additional protective functions • Addition of voltage supervision of reclosing to substation breaker • Reconductor of line segments • Conversion of line segments from single-phase to three-phase • Construction of new line segments • Additional distribution transformer for DG Types of Typical Modifications and Upgrades Included in the Interconnection Cost Range Table (Continued) Note: The modifications indicated above are typical and are not all inclusive. Specific field conditions may require other, non-typical changes. Modifications are determined and justified in the facility studies, as specified in the tariff. Depending on the generation facility size, location, type, and existing facilities, none to all of the above could be included. (Continued on Sheet No. 10-82) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 82

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Typical Telemetry Cost Range (When Required for > 1 MW) $ 25,000 to $ 100,000 Note: This does not include the initial and/or continuing cost of the communication channel. Unusual Costs That May Apply When a generation facility is large compared to the substation or transmission capacity, the DG may have a transmission impact. In these cases, transmission requirements may be imposed by the transmission company or system operator (MISO). These cost are in accordance with the reliability and operation requirements as governed by FERC and posted publicly by the transmission company or system operator.

(Continued on Sheet No. 10-83) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn_elec\Me_10_082.doc

Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 83

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State of Minnesota Interconnection Process for Distributed Generation Systems INTRODUCTION This document has been prepared to explain the process established in the State of Minnesota, to interconnect a Generation System with Xcel Energy. This document covers the interconnection process for all types of Generation Systems which are rated 10MW’s or less of total generation Nameplate Capacity; are planned for interconnection with Xcel Energy; are not intended for wholesale transactions and aren’t anticipated to affect the transmission system. This document does not discuss the interconnection Technical Requirements, which are covered in the “State of Minnesota Distributed Generation Interconnection Requirements” document. This other interconnection requirements document also provides definitions and explanations of the terms utilized within this document. To interconnect a Generation System with Xcel Energy, there are several steps that must be followed. This document outlines those steps and the Parties’ responsibilities. At any point in the process, if there are questions, please contact the Generation Interconnection Coordinator at Xcel Energy. Since this document has been developed to provide an interconnection process which covers a very diverse range of Generation Systems, the process appears to be very involved and cumbersome. For many Generation Systems the process is streamlined and provides an easy path for interconnection. The promulgation of interconnection standards for Generation Systems by the Minnesota Public Utilities Commission (MPUC) must be done in the context of a reasonable interpretation of the boundary between state and federal jurisdiction. The Federal Energy Regulatory Commission (FERC) has asserted authority in the area, at least as far as interconnection at the transmission level is concerned. This, however, leaves open the question of jurisdiction over interconnection at the distribution level. The Midwest Independent System Operator’s (MISO) FERC Electric Tariff, (first revised volume 1, August 23,2001) Attachment R (Generator Interconnection Procedures and Agreement) states in section 2.1 that “Any existing or new generator connecting at transmission voltages, sub-transmission voltages, or distribution voltages, planning to engage in the sale for resale of wholesale energy, capacity, or ancillary services requiring transmission service under the Midwest ISO OATT must apply to the Midwest ISO for interconnection service”. Further in section 2.4 it states that “A Generator not intending to engage in the sale of wholesale energy, capacity, or ancillary services under the Midwest ISO OATT, that proposes to interconnect a new generating facility to the distribution system of a Transmission Owner or local distribution utility interconnected with the Transmission System shall apply to the Transmission Owner or local distribution utility for interconnection”. It goes on further to state “Where facilities under the control of the Midwest ISO are affected by such interconnection, such interconnections may be subject to the planning and operating protocols of the Midwest ISO….” Through discussions with MISO personnel and as a practical matter, if the Generation System Nameplate Capacity is not greater in size than the minimum expected load on the distribution substation, that is feeding the proposed Generation System, and Generation System’s energy is not being sold on the wholesale market, then that installation may be considered as not “affecting” the transmission system and the interconnection may be considered as governed by this process. If the Generation System will be selling energy on the wholesale market or the Generation System’s total Nameplate Capacity is greater than the expected distribution substation minimum load, then the Applicant shall contact MISO (Midwest Independent System Operator) and follow their procedures. (Continued on Sheet No. 10-84) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 84

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GENERAL INFORMATION A. Definitions 1. “Applicant” is defined as the person or entity who is requesting the interconnection of the Generation System with Xcel Energy and is responsible for ensuring that the Generation System is designed, operated and maintained in compliance with the Technical Requirements. “Area EPS” is defined as an electric power system (EPS) that serves Local EPS’s. For the purpose of this tariff, the Xcel Energy system is the Area EPS. Note. Typically, Xcel Energy has primary access to public rights-of-way, priority crossing of property boundaries, etc. “Area EPS Operator” is the entity who operates the electric power system. For the purpose of this tariff, Xcel Energy is the Area EPS Operator. “Dedicated Facilities” is the equipment that is installed due to the interconnection of the Generation System and not required to serve other Xcel Energy customers. “Distribution System” is the Xcel Energy facilities that are not part of the Xcel Energy Transmission System or any Generation System. “Extended Parallel” means the Generation System is designed to remain connected with Xcel Energy for an extended period of time. “Generation” is defined as any device producing electrical energy, i.e., rotating generators driven by wind, steam turbines, internal combustion engines, hydraulic turbines, solar, fuel cells, etc.; or any other electric producing device, including energy storage technologies. “Generation Interconnection Coordinator” is the person or persons designated by Xcel Energy to provide a single point of coordination with the Applicant for the generation interconnection process. “Generation System” is the interconnected generator(s), controls, relays, switches, breakers, transformers, inverters and associated wiring and cables, up to the Point of Common Coupling.

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10. “Interconnection Customer” is the party or parties who will own/operate the Generation System and are responsible for meeting the requirements of the agreements and Technical Requirements. This could be the Generation System applicant, installer, owner, designer, or operator.

(Continued on Sheet No. 10-85) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 85

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GENERAL INFORMATION (Continued) A. Definitions (Continued) 11. “Local EPS” is an electric power system (EPS) contained entirely within a single premises or group of premises. 12. “Nameplate Capacity” is the total nameplate capacity rating of all the Generation included in the Generation System. For this definition the “standby” and/or maximum rated kW capacity on the nameplate shall be used. 13. “Open Transfer” is a method of transferring the local loads from Xcel Energy to the generator such that the generator and Xcel Energy are never connected together. 14. “Point of Common Coupling” is the point where the Local EPS is connected to Xcel Energy. 15. “Quick Closed” is a method of generation transfer which does not parallel or parallels for less then 100msec with Xcel Energy and has utility grade timers which limit the parallel duration to less then 100 msec with Xcel Energy. 16. “Technical Requirements” is the State of Minnesota Distributed Generation Interconnection Requirements”. 17. “Transmission System” means those facilities as defined by using the guidelines established by the Minnesota State Public Utilities Commission; “In the Matter of Developing Statewide Jurisdictional Boundary Guidelines for Functionally Separating Interstate Transmission from Generation and Local Distribution Functions” Docket No. E-015/M-99-1002. B. Dispute Resolution The following is the dispute resolution process to be followed for problems that occur with the implementation of this process. 1. Each Party agrees to attempt to resolve all disputes arising hereunder promptly, equitably and in a good faith manner. In the event a dispute arises under this process, and if it cannot be resolved by the Parties within thirty (30) days after written notice of the dispute to the other Party, the Parties shall submit the dispute to mediation by a mutually acceptable mediator, in a mutually convenient location in the State of Minnesota. The Parties agree to participate in good faith in the mediation for a period of 90 days. If the parties are not successful in resolving their disputes through mediation, then the Parties may refer the dispute for resolution to the Minnesota Public Utilities Commission, which shall maintain continuing jurisdiction over this process.

2.

(Continued on Sheet No. 10-86) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 86

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GENERAL INFORMATION (Continued) C. Xcel Energy Generation Interconnection Coordinator Xcel Energy shall designate a Generation Interconnection Coordinator(s) and this person or persons shall provide a single point of contact for an Applicant’s questions on this Generation Interconnection process. Xcel Energy may have several Generation Interconnection Coordinators assigned, due to the geographical size of its electrical service territory or the amount of interconnection applications. This Generation Interconnection Coordinator will typically not be able to directly answer or resolve all of the issues involved in the review and implementation of the interconnection process and standards, but shall be available to provide coordination assistance with the Applicant Engineering Studies During the process of design of a Generation System interconnection between a Generation System and Xcel Energy, there are several studies which may need to be undertaken. On the Local EPS (Customers side of the interconnection) the addition of a Generation System may increase the fault current levels, even if the generation is never interconnected with Xcel Energy’s system. The Interconnection Customer may need to conduct a fault current analysis of the Local EPS in conjunction with adding the Generation System. The addition of the Generation System may also affect Xcel Energy, and special engineering studies may need to be undertaken looking at Xcel Energy with the Generation System included. Appendix D, lists some of the issues that may need to receive further analysis for the Generation System interconnection. While, it is not a straightforward process to identify which engineering studies are required, we can at least develop screening criteria to identify which Generation Systems may require further analysis. The following is the basic screening criteria to be used for this interconnection process. 1) Generation System total Nameplate Capacity does not exceed 5% of the radial circuit expected peak load. The peak load is the total expected load on the radial circuit when the other generators on that same radial circuit are not in operation. The aggregate generation’s total Nameplate Capacity, including all existing and proposed generation, does not exceed 25% of the radial circuit peak load and that total is also less then the radial circuit minimum load. Generation System does not exceed 15% of the Annual Peak Load for the Line Section, which it will interconnect with. A Line Section is defined as that section of the distribution system between two sectionalizing devices within the distribution system. Generation System does not contribute more than 10% to the distribution circuit’s maximum fault current at the point at the nearest interconnection with Xcel Energy’s primary distribution voltage.

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4)

(Continued on Sheet No. 10-87) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 87

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GENERAL INFORMATION (Continued) D. Engineering Studies (Continued) 5) The proposed Generation System total Nameplate Capacity, in aggregate with other generation on the distribution circuit, will not cause any distribution protective devices and equipment to exceed 85 percent of the short circuit interrupting capability. If the proposed Generation System is to be interconnected on a single-phase shared secondary, the aggregate generation Nameplate Capacity on the shared secondary, including the proposed generation, does not exceed 20kW. 1. E. Generation System will not be interconnected with a “networked” system

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Scoping Meeting During Step 2 of this process, the Applicant or Xcel Energy has the option to request a scoping meeting. The purpose of the scoping meeting shall be to discuss the Applicant’s interconnection request and review the application filed. This scoping meeting is to be held so that each Party can gain a better understanding of the issues involved with the requested interconnection. Xcel Energy and Applicant shall bring to the meeting personnel, including system engineers, and other resources as may be reasonably required, to accomplish the purpose of the meeting. The Applicant shall not expect Xcel Energy to complete the preliminary review of the proposed Generation System at the scoping meeting. If a scoping meeting is requested, Xcel Energy shall schedule the scoping meeting within the 15-business day review period allowed for in Step 2. Xcel Energy shall then have an additional 5 days, after the completion of the scoping meeting, to complete the formal response required in Step 2. The Application fee shall cover Xcel Energy’s costs for this scoping meeting. There shall be no additional charges imposed by Xcel Energy for this initial scoping meeting

(Continued on Sheet No. 10-88) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 88

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GENERAL INFORMATION (Continued) F. Insurance 1. At a minimum, in connection with the Interconnection Customer’s performance of its duties and obligations under this Agreement, the Interconnection Customer shall maintain, during the term of the Agreement, general liability insurance, from a qualified insurance agency with a B+ or better rating by “Best” and with a combined single limit of not less then: a) b) c) d) Two million dollars ($2,000,000) for each occurrence if the Gross Nameplate Rating of the Generation System is greater then 250kW. One million dollars ($1,000,000) for each occurrence if the Gross Nameplate Rating of the Generation System is between 40kW and 250kW. Three hundred thousand ($300,000) for each occurrence if the Gross Nameplate Rating of the Generation System is less then 40kW. Such general liability insurance shall include coverage against claims for damages resulting from (i) bodily injury, including wrongful death; and (ii) property damage arising out of the Interconnection Customer’s ownership and/or operating of the Generation System under this agreement.

2.

The general liability insurance required shall, by endorsement to the policy or policies, (a) include Xcel Energy as an additional insured; (b) contain a sever ability of interest clause or cross-liability clause; (c) provide that Xcel Energy shall not by reason of its inclusion as an additional insured incur liability to the insurance carrier for the payment of premium for such insurance; and (d) provide for thirty (30) calendar days’ written notice to Xcel Energy prior to cancellation, termination, alteration, or material change of such insurance. If the Generation System is connected to an account receiving residential service from Xcel Energy, and its total generating capacity is smaller then 40kW, then the endorsements required in Section F.2 shall not apply. The Interconnection Customer shall furnish the required insurance certificates and endorsements to Xcel Energy prior to the initial operation of the Generation System. Thereafter, Xcel Energy shall have the right to periodically inspect or obtain a copy of the original policy or policies of insurance. Evidence of the insurance required in Section F.1. shall state that coverage provided is primary and is not excess to or contributing with any insurance or self-insurance maintained by Xcel Energy. If the Interconnection Customer is self-insured with an established record of self-insurance, the Interconnection Customer may comply with the following in lieu of Section F.1 – 5.

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(Continued on Sheet No. 10-89) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 89

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GENERAL INFORMATION (Continued) F. Insurance (Continued) 7. Interconnection Customer shall provide to Xcel Energy, at least thirty (30) days prior to the date of initial operation, evidence of an acceptable plan to self-insure to a level of coverage equivalent to that required under section F.1. If Interconnection Customer ceases to self-insure to the level required hereunder, or if the Interconnection Customer is unable to provide continuing evidence of it’s ability to self-insure, the Interconnection Customer agrees to immediately obtain the coverage required under section F.1. Failure of the Interconnection Customer or Xcel Energy to enforce the minimum levels of insurance does not relieve the Interconnection Customer from maintaining such levels of insurance or relieve the Interconnection Customer of any liability.

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G.

Pre-Certification The most important part of the process to interconnect generation with Local EPS and Xcel Energy is safety. One of the key components of ensuring the safety of the public and employees is to ensure that the design and implementation of the elements connected to the electrical power system operate as required. To meet this goal, all of the electrical wiring in a business or residence, is required by the State of Minnesota to be listed by a recognized testing and certification laboratory, for its intended purpose. Typically we see this as “UL” listed. Since Generation Systems have tended to be uniquely designed for each installation they have been designed and approved by Professional Engineers. This process has been set up to be able to deal with these uniquely designed systems. As the number of Generation Systems installed increase, vendors are working towards creating equipment packages that can be tested in the factory and then will only require limited field testing. This will allow us to move towards “plug and play” installations. For this reason, this interconnection process recognizes the efficiently of “pre-certification” of Generation System equipment packages that will help streamline the design and installation process.

(Continued on Sheet No. 10-90) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 90

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GENERAL INFORMATION (Continued) G. Pre-Certification (Continued) An equipment package shall be considered certified for interconnected operation if it has been submitted by a manufacture, tested and listed by a nationally recognized testing and certification laboratory (NRTL) for continuous utility interactive operation in compliance with the applicable codes and standards. Presently generation paralleling equipment that is listed by a nationally recognized testing laboratory as having met the applicable type-testing requirements of UL 1741 and IEEE 929 shall be acceptable for interconnection without additional protection system requirements. An “equipment package” shall include all interface components including switchgear, inverters, or other interface devices and may include an integrated generator or electric source. If the equipment package has been tested and listed as an integrated package which includes a generator or other electric source, it shall not required further design review, testing or additional equipment to meet the certification requirements for interconnection. If the equipment package includes only the interface components (switchgear, inverters, or other interface devices), then the Interconnection Customer shall show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and consistent with the testing and listing specified for the package. Provided the generator or electric source combined with the equipment package is consistent with the testing ad listing performed by the nationally recognized testing and certification laboratory, no further design review, testing or additional equipment shall be required to meet the certification requirements of this interconnection procedure. A certified equipment package does not include equipment provided by Xcel Energy. The use of Pre-Certified equipment does not automatically qualify the Interconnection Customer to be interconnected to Xcel Energy. An application will still need to be submitted and an interconnection review may still need to be performed, to determine the compatibility of the Generation System with Xcel Energy. H. Confidential Information Except as otherwise agreed, each Party shall hold in confidence and shall not disclose confidential information, to any person (except employees, officers, representatives and agents, who agree to be bound by this section). Confidential information shall be clearly marked as such on each page or otherwise affirmatively identified. If a court, government agency or entity with the right, power, and authority to do so, requests or requires either Party, by subpoena, oral disposition, interrogatories, requests for production of documents, administrative order, or otherwise, to disclose Confidential Information, that Party shall provide the other Party with prompt notice of such request(s) or requirements(s) so that the other Party may seek an appropriate protective order or waive compliance with the terms of this Agreement. In the absence of a protective order or waiver the Party shall disclose such confidential information which, in the opinion of its counsel, the party is legally compelled to disclose. Each Party will use reasonable efforts to obtain reliable assurance that confidential treatment will be accorded any confidential information so furnished.

(Continued on Sheet No. 10-91) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 91

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GENERAL INFORMATION (Continued) I. Non-Warranty Neither by inspection, if any, or non-rejection, nor in any other way, does Xcel Energy give any warranty, expressed or implied, as to the adequacy, safety, or other characteristics of any structures, equipment, wires, appliances or devices owned, installed or maintained by the Applicant or leased by the Applicant from third parties, including without limitation the Generation System and any structures, equipment, wires, appliances or devices pertinent thereto. Required Documents The chart below lists the documents required for each type and size of Generation System proposed for interconnection. Find your type of Generation System interconnection, across the top, then follow the chart straight down, to determine what documents are required as part of the interconnection process.

J.

NERATION INTERCONNECTION DOCUMENT SUMMARY

Open Transfer

Quick Closed Transfer

Soft Loading Transfer

Extended Parallel Operation QF facility <40kW Without Sales With Sales

Interconnection Process (This document) State of Minnesota Distributed Generation Interconnection Requirements Generation Interconnection Application (Appendix B) Engineering Data Submittal (Appendix C) Interconnection Agreement (Appendix E) MISO / FERC PPA

(Continued on Sheet No. 10-92) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 92

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GENERAL INFORMATION (Continued) J. Required Documents (Continued) Interconnection Process = “State of Minnesota Interconnection Process for Distributed Generation Systems.” (This document) State of Minnesota Distributed Generation Interconnection Requirements = “State of Minnesota Distributed Generation Interconnection Requirements” Generation Interconnection Application = The application form in Appendix B of this document. Engineering Data Submittal = The Engineering Data Form/Agreement, which is attached as Appendix C of this document. Interconnection Agreement = “Minnesota State Interconnection Agreement for the Interconnection of Extended Parallel Distributed Generation Systems with Electric Utilities”, which is attached as Appendix E to this document. MISO = Midwest Independent System Operator, www.midwestiso.org. FERC = Federal Energy Regulatory Commission, www.ferc.gov. PPA = Power Purchase Agreement.

Process for Interconnection Step 1 Application (By Applicant) Once a decision has been made by the Applicant that they would like to interconnect a Generation System with Xcel Energy, the Applicant shall supply Xcel Energy with the following information: 1) Completed Generation Interconnection Application (Appendix B), including; a) One-line diagram showing; i) Protective relaying. ii) Point of Common Coupling. b) Site plan of the proposed installation. c) Proposed schedule of the installation. Payment of the application fee, according to the following sliding scale. (Continued on Sheet No. 10-93) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

2)

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 93

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Process for Interconnection (Continued) Step 1 Application (By Applicant) (Continued) Generation Interconnection Application Fees >20kW & <250kW $0 $100 $250 $250 $500 >250kW & <500kW $0 $100 $500 $1000 $1500 > 500 kW & <1000kW $100 $250 $500 $1000 $1500

Interconnection Type Open Transfer Quick Closed Soft Loading Extended Parallel (Pre Certified System) Other Extended Parallel Systems

< 20kW $0 $0 $100 $0 $100

>1000 kW $100 $500 $1000 $1500 $1500

This application fee is to contribute to Xcel Energy’s labor costs for administration, review of the design concept and preliminary engineering screening for the proposed Generation System interconnection. For the Application Fees chart, above: The size (kW) of the Generation System is the total maximum Nameplate Capacity of the Generation System. Step 2 Preliminary Review (By Xcel Energy) Within 15 business days of receipt of all the information listed in Step 1, the Xcel Energy Generation Interconnection Coordinator shall respond to the Applicant with the information listed below. (If the information required in Step 1 is not complete, the Applicant will be notified, within 10 business days of what is missing and no further review will be completed until the missing information is submitted. The 15-day clock will restart with the new submittal) As part of Step 2 the proposed Generation System will be screened to see if additional Engineering Studies are required. The base screening criteria is listed in the general information section of this document. 1) A single point of contact with Xcel Energy for this project. (Generation Interconnection Coordinator)

(Continued on Sheet No. 10-94) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 94

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Process for Interconnection (Continued) Step 2 Preliminary Review (By Xcel Energy) (Continued) 2) Approval or rejection of the generation interconnection request.

a) Rejection – Xcel Energy shall supply the technical reasons, with supporting information, for
rejection of the interconnection Application.

b) Approval - An approved Application is valid for 6 months from the date of the approval. The
Generation Interconnection Coordinator may extend this time if requested by the Applicant 3) If additional specialized engineering studies are required for the proposed interconnection, the following information will be provided to the Applicant. Typical Engineering Studies are outlined in Appendix D. The costs to the Applicant, for these studies shall be not exceed the values shown in the following table for pre-certified equipment. Generation System Size <20kW 20kW – 100kW 100kW – 250kW >250kW or not pre-certified equipment Engineering Study Maximum Costs $0 $500 $1000 Actual costs

a) b) c) d) e)
4) 5)

General scope of the engineering studies required. Estimated cost of the engineering studies. Estimated duration of the engineering studies. Additional information required to allow the completion of the engineering studies. Study authorization agreement.

Comments on the schedule provided. If the rules of MISO (Midwest Independent System Operator) require that this interconnection request be processed through the MISO process, the Generation Interconnection Coordinator will notify the Applicant that the generation system is not eligible for review through the State of Minnesota process.

(Continued on Sheet No. 10-95) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 95

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Process for Interconnection (Continued) Step 3 Go-No Go Decision for Engineering Studies (By Applicant) In this step, the Applicant will decide whether or not to proceed with the required engineering studies for the proposed generation interconnection. If no specialized engineering studies are required by Xcel Energy, Xcel Energy and the Applicant will automatically skip this step. If the Applicant decides NOT to proceed with the engineering studies, the Applicant shall notify the Generation Interconnection Coordinator, so other generation interconnection requests in the queue are not adversely impacted. Should the Applicant decide to proceed, the Applicant shall provide the following to the Generation Interconnection Coordinator: 1) 2) Payment required by Xcel Energy for the specialized engineering studies. Additional information requested by Xcel Energy to allow completion of the engineering studies.

Step 4 Engineering Studies (By Xcel Energy) In this step, Xcel Energy will be completing the specialized engineering studies for the proposed generation interconnection, as outlined in Step 2. These studies should be completed in the time frame provided in step 2, by Xcel Energy. It is expected that Xcel Energy shall make all reasonable efforts to complete the Engineering Studies within the time frames shown below. If additional time is required to complete the engineering studies the Generation Interconnection Coordinator shall notify the Applicant and provide the reasons for the time extension. Upon receipt of written notice to proceed, payment of applicable fee, and receipt of all engineering study information requested by Xcel Energy in step 2, Xcel Energy shall initiate the engineering studies.

Generation System Size <20kW 20kW – 250kW 250kW – 1MW > 1MW

Engineering Study Completion 20 working days 30 working days 40 working days 90 working days

Once it is known by Xcel Energy that the actual costs for the engineering studies will exceed the estimated amount by more the 25%, then the Applicant shall be notified. Xcel Energy shall then provide the reason(s) for the studies needing to exceed the original estimated amount and provide an updated estimate of the total cost for the engineering studies. The Applicant shall be given the option of either withdrawing the application, or paying the additional estimated amount to continue with the engineering studies.

(Continued on Sheet No. 10-96) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 96

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Process for Interconnection (Continued) Step 5 Study Results and Construction Estimates (By Xcel Energy) Upon completion of the specialized engineering studies, or if none was necessary, the following information will be provided to the Applicant. 1) 2) 3) 4) 5) 6) 7) Results of the engineering studies, if needed. Monitoring & control requirements for the proposed generation. Special protection requirements for the Generation System interconnection. Comments on the schedule proposed by the Applicant. Distributed Generation distribution constrained credits available Interconnection Agreement (if applicable). Cost estimate and payment schedule for required Xcel Energy work, including, but not limited to; a) Labor costs related to the final design review. b) Labor & expense costs for attending meetings c) Required Dedicated Facilities and other Xcel Energy modification(s). d) Final acceptance testing costs.

Step 6 Final Go-No Go Decision (By Applicant) In this step, the Applicant shall again have the opportunity to indicate whether or not they want to proceed with the proposed generation interconnection. If the decision is NOT to proceed, the Applicant will notify the Generation Interconnection Coordinator, so that other generation interconnections in the queue are not adversely impacted. Should the Applicant decide to proceed, a more detailed design, if not already completed by the Applicant, must be done, and the following information is to be supplied to the Generation Interconnection Coordinator: 1) Applicable up-front payment required by Xcel Energy, per Payment Schedule, provided in Step 5 (if applicable). Signed Interconnection Agreement (if applicable).

2)

(Continued on Sheet No. 10-97) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 97

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Process for Interconnection (Continued) Step 6 Final Go-No Go Decision (By Applicant) (Continued) 3) Final proposed schedule, incorporating Xcel Energy’s comments. The schedule of the project should include such milestones as foundations poured, equipment delivery dates, all conduit installed, cutover (energizing of the new switchgear/transfer switch), Xcel Energy work, relays set and tested, preliminary vendor testing, final Xcel Energy acceptance testing, and any other major milestones. Final proposed schedule, incorporating Xcel Energy’s comments. The schedule of the project should include such milestones as foundations poured, equipment delivery dates, all conduit installed, cutover (energizing of the new switchgear/transfer switch), Xcel Energy work, relays set and tested, preliminary vendor testing, final Xcel Energy acceptance testing, and any other major milestones. Detailed one-line diagram of the Generation System, including the generator, transfer switch/switchgear, service entrance, lockable and visible disconnect, metering, protection and metering CT’s / VT’s, protective relaying and generator control system. Detailed information on the proposed equipment, including wiring diagrams, models and types. Proposed relay settings for all interconnection required relays. Detailed site plan of the Generation System. Drawing(s) showing the monitoring system (as required per table 5A and section 5 of the “State of Minnesota Distributed Generation Interconnection Requirements”. Including a drawing which shows the interface terminal block with the Xcel Energy monitoring system.

4)

5)

6) 7) 8) 9)

10) Proposed testing schedule and initial procedure, including; a) Time of day (after-hours testing required?). b) Days required. c) Testing steps proposed. Step 7 Final Design Review (By Xcel Energy) Within 15 business days of receipt of the information required in Step 6, The Generation Interconnection Coordinator will provide the Applicant with an estimated timetable for final review. If the information required in Step 6 is not complete, the Applicant will be notified, within 10 business days of what information is missing. No further review may be completed until the missing information is submitted. The 15-business day clock will restart with the new submittal. This final design review shall not take longer then 15 additional business days to complete, for a total of 30 business days. (Continued on Sheet No. 10-98) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 98

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Process for Interconnection (Continued) Step 7 Final Design Review (By Xcel Energy) (Continued) During this step, Xcel Energy shall complete the review of the final Generation System design. If the final design has significant changes from the Generation System proposed on the original Application that invalidate the engineering studies or the preliminary engineering screening, the Generation System Interconnection Application request may be rejected by Xcel Energy, and the Applicant may be requested to reapply with the revised design. Upon completion of this step the Generation Interconnection Coordinator shall supply the following information to the Applicant. 1) 2) Requested modifications or corrections of the detailed drawings provided by the Applicant. Approval of and agreement with the Project Schedule. (This may need to be interactively discussed between the Parties, during this Step). Final review of Distributed Generation Credit amount(s) (where applicable). Initial testing procedure review comments. (Additional work on the testing process will occur during Step 8, once the actual equipment is identified).

3) 4)

Step 8 Order Equipment and Construction (By Both Parties) The following activities shall be completed during this step. For larger installations this step will involve much interaction between the Parties. It is typical for approval drawings to be supplied by the Applicant to Xcel Energy for review and comments. It is also typical for Xcel Energy to require review and approval of the drawings that cover the interconnection equipment and interconnection protection system. If Xcel Energy also requires remote control and/or monitoring, those drawings are also exchanged for review and comment. By the Applicant’s personnel: 1) 2) 3) 4) 5) 6) 7) 8) 9) Ordering of Generation System equipment. Installing Generation System. Submit approval drawings for interconnection equipment and protection systems, as required by Xcel Energy. Provide final relay settings provided to Xcel Energy. Submit Completed and signed Engineering Data Submittal form. Submit proof of insurance, as required by Xcel Energy tariff(s) or interconnection agreements. Submit required State of Minnesota electrical inspection forms (“blue Copy) filed with Xcel Energy. Inspecting and functional testing Generation System components. Work with Xcel Energy personnel and equipment vendor(s) to finalize the installation testing procedure. (Continued on Sheet No. 10-99) Date Filed: 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07

Docket No.

President and CEO of Northern States Power Company E002/GR-05-1428 Order Date:

09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 99

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Process for Interconnection (Continued) Step 8 Order Equipment and Construction (By Both Parties) (Continued) By Xcel Energy personnel: 1) 2) Ordering any necessary Xcel Energy equipment. Installing and testing any required equipment. a) Monitoring facilities. b) Dedicated Equipment. Assisting Applicant’s personnel with interconnection installation coordination issues Providing review and input for testing procedures.

3) 4)

Step 9 Final Tests (By Xcel Energy / Applicant) (Due to equipment lead times and construction, a significant amount of time may take place between the execution of Step 8 and Step 9.) During this time the final test steps are developed and the construction of the facilities are completed. Final acceptance testing will commence when all equipment has been installed, all contractor preliminary testing has been accomplished and all Xcel Energy preliminary testing of the monitoring and dedicated equipment is completed. One to three weeks prior to the start of the acceptance testing of the generation interconnection the Applicant shall provide, a report stating: • • • • that the Generation System meets all interconnection requirements. all contractor preliminary testing has been completed. the protective systems are functionally tested and ready. and provides a proposed date that the Generation System will be is ready to be energized and acceptance tested.

For non-type certified systems a Professional Electrical Engineer registered in the State of Minnesota is required to provide this formal report. For smaller systems scheduling of this testing may be more flexible, as less testing time is required than for larger systems. In many cases, this testing is done after hours to ensure no typical business-hour load is disturbed. If acceptance testing occurs after hours, Xcel Energy labor will be billed at overtime wages. During this testing, Xcel Energy will typically run three different tests. These tests can differ depending on which type of communication / monitoring system(s) Xcel Energy decides to install at the site.

(Continued on Sheet No. 10-100) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 100

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Process for Interconnection (Continued) Step 9 Final Tests (By Xcel Energy / Applicant) (Continued) For problems created by Xcel Energy or any Xcel Energy equipment that arise during testing, Xcel Energy will fix the problem as soon as reasonably possible. If problems arise during testing that are caused by the Applicant or Applicant’s vendor or any vendor supplied or installed equipment, Xcel Energy will leave the project until the problem is resolved. Having the testing resume will then be subject to Xcel Energy personnel time and availability. Step 10 (By Xcel Energy) After all of Xcel Energy’s acceptance testing has been accomplished and all requirements are met, Xcel Energy shall provide written approval for normal operation of the Generation System interconnection, within 3 business days of successful completion of the acceptance tests. Step 11 (By Applicant) Within two (2) months of interconnection, the Applicant shall provide Xcel Energy with updated drawings and prints showing the Generation System as it were when approved for normal operation by Xcel Energy. The drawings shall include all changes that were made during construction and the testing process.

ATTACHMENTS: Attached are several documents, which may be required for the interconnection process. They are as follows: Appendix A Appendix B Appendix C Appendix D Appendix E Flow-chart showing summary of the interconnection process. Generation Interconnection Application Form. Engineering Data Submittal Form. Engineering Studies: Brief description of the types of possible Engineering Studies that may be required for the review of the Generation System interconnection. State of Minnesota Interconnection Agreement for the Interconnection of Extended Paralleled Distributed Generation Systems with Electric Utilities.

(Continued on Sheet No. 10-101) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 101

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APPENDIX A

(Continued on Sheet No. 10-102) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company Order Date: E002/GR-05-1428 02-01-07

09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 102

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APPENDIX B: Generation Interconnection Application Form WHO SHOULD FILE THIS APPLICATION: Anyone expressing interest to install generation which will interconnect with Xcel Energy (Local electric utility). This application should be completed and returned to the Generation Interconnection Coordinator, in order to begin processing the request. INFORMATION: This application is used by Xcel Energy to perform a preliminary interconnection review. The Applicant shall complete as much of the form as possible. The fields in BOLD are required to be completed to the best of the Applicant’s ability. The Applicant will be contacted if additional information is required. The response may take up to 15 business days after receipt of all the required information. COST: A payment to cover the application fee shall be included with this application. The application fee amount is outlined in the “State of Minnesota Interconnection Process for Distributed Generation Systems”.

OWNER/APPLICANT Company / Applicant’s Name: Representative: Title: Mailing Address: Email Address: LOCATION OF GENERATION SYSTEM INTERCONNECTION Street Address, legal description or GPS coordinates: PROJECT DESIGN / ENGINEERING (if applicable) Company: Representative: Mailing Address: Email Address: ELECTRICAL CONTRACTOR (if applicable) Company: Representative: Mailing Address: Email Address: Phone: FAX Number: Phone: FAX Number: Phone Number: FAX Number:

(Continued on Sheet No. 10-103) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 103

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APPENDIX B: Generation Interconnection Application Form (Continued) GENERATOR Manufacturer: Type (Synchronous Induction, Inverter, etc): Rated Output (Prime kW): (Standby kW): Rated Power Factor (%): Rated Voltage (Volts): Energy Source (gas, steam, hydro, wind, etc.) TYPE OF INTERCONNECTED OPERATION Interconnection / Transfer method: Open Quick Open Closed Soft Loading Inverter Model: Phases: 1 or 3 Frequency: Rated Current (Amperes):

Proposed use of generation: (Check all that may apply) Peak Reduction Standby Energy Sales Cover Load Pre-Certified System Yes / No (Circle one) ESTIMATED LOAD INFORMATION

Duration Parallel: None Limited Continuous Exporting Energy Yes / No (Circle one)

The following information will be used to help properly design the interconnection. Information is not intended as a commitment or contract for billing purposes. Minimum anticipated load (generation not operating): kW: kVA: Maximum anticipated load (generation not operating): kW: kVA: ESTIMATED START/COMPLETION DATES Construction start date: Completion (operational) date:

This

DESCRIPTION OF PROPOSED INSTALLATION AND OPERATION Attach a single line diagram showing the switchgear, transformers, and generation facilities. Give a general description of the manner of operation of the generation (cogeneration, closed-transition peak shaving, opentransition peak shaving, emergency power, etc.). Also, does the Applicant intend to sell power and energy or ancillary services and/or wheel power over Xcel Energy facilities? If there is an intent to sell power and energy, also define the target market.

(Continued on Sheet No. 10-104) Date Filed: Docket No. 11-02-05 Effective Date: By: Cynthia L. Lesher President and CEO of Northern States Power Company Order Date: E002/GR-05-1428 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 104

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APPENDIX B: Generation Interconnection Application Form (Continued)

SIGN OFF AREA:
With this Application, we are requesting Xcel Energy to review the proposed Generation System Interconnection. We request that Xcel Energy identifies the additional equipment and costs involved with the interconnection of this system and to provide a budgetary estimate of those costs. We understand that the estimated costs supplied by Xcel Energy, will be estimated using the information provided. We also agree that we will supply, as requested, additional information, to allow Xcel Energy to better review this proposed Generation System interconnection. We have read the “State of Minnesota Distributed Generation Interconnection Requirements” and will design the Generation System and interconnection to meet those requirements.

Applicant Name (print): Applicant Signature: Date:

SEND THIS COMPLETED & SIGNED APPLICATION AND ATTACHMENTS TO THE GENERATION INTERCONNECTION COORDINATOR

(Continued on Sheet No. 10-105) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 105

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APPENDIX C: Engineering Data Submittal Form WHO SHOULD FILE THIS SUBMITTALL: Anyone in the final stages of interconnecting a Generation System with Xcel Energy. This submittal shall be completed and provided to the Generation Interconnection Coordinator during the design of the Generation System, as established in the “State of Minnesota Interconnection Process for Distributed Generation Systems”. INFORMATION: This submittal is used to document the interconnected Generation System. The Applicant shall complete as much of the form as applicable. The Applicant will be contacted if additional information is required.

OWNER / APPLICANT Company / Applicant: Representative: Title: Mailing Address: Email Address: PROPOSED LOCATION OF GENERATION SYSTEM INTERCONNECTION Street Address, Legal Description or GPS coordinates: Phone Number: FAX Number:

PROJECT DESIGN / ENGINEERING (if applicable) Company: Representative: Mailing Address: Email Address: ELECTRICAL CONTRACTOR (if applicable) Company: Representative: Mailing Address: Email Address: Phone: FAX Number: Phone: FAX Number:

(Continued on Sheet No. 10-106) Date Filed: Docket No. 11-02-05 Effective Date: 02-01-07 By: Cynthia L. Lesher President and CEO of Northern States Power Company Order Date: 09-01-06 E002/GR-05-1428

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 106

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APPENDIX C: Engineering Data Submittal Form (Continued) TYPE OF INTERCONNECTED OPERATION Interconnection / Transfer method: □ Open □ Quick Open □ Closed □ Soft Loading □ Inverter Duration Parallel: □ None □ Limited Exporting Energy □ Continuous Yes / No (Circle one)

Proposed use of generation: (Check all that may apply) □ Peak Reduction □ Standby □ Energy Sales □ Cover Load Pre-Certified System: Yes / No (Circle one)

GENERATION SYSTEM OPERATION / MAINTENANCE CONTACT INFORMATION Maintenance Provider: Operator Name: Person to Contact before remote starting of units Contact Name: Phone #: Phone #: Pager #: Pager #:

Phone #: 24hr Phone #:

Pager #:

GENERATION SYSTEM OPERATING INFORMATION Fuel Capacity (gals): Engine Cool Down Duration (Minutes): Start Time Delay on Outage (Seconds): ESTIMATED LOAD The following information will be used to help properly design the interconnection. This Information is not Intended as a commitment or contract for billing purposes. Minimum anticipated load (generation not operating): kW: kVA: Maximum anticipated load (generation not operating): kW: kVA: Full Fuel Run-time (hrs): Start time Delay on Load Shed signal:

(Continued on Sheet No. 10-107) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 107

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APPENDIX C: Engineering Data Submittal Form (Continued) REQUESTED CONSTRUCTION START/COMPLETION DATES Design Completion: Construction Start Date: Footings in place: Primary Wiring Completion: Control Wiring Completion: Start Acceptance Testing: Generation operational (In-service): (Complete all applicable items. Copy this page as required for additional generators.)

SYNCHRONOUS GENERATOR (if applicable) Unit Number: Manufacturer: Serial Number (each) Rated Output (each unit) kW Standby: Rated Power Factor (%): Field Voltage (Volts): Synchronous Reactance (Xd): Transient Reactance (X'd): Subtransient Reactance (X’d): Negative Sequence Reactance (Xs): Zero Sequence Reactance (Xo): Neutral Grounding Resistor (if applicable): 2 I t or K (heating time constant): Exciter data: Governor data: Additional Information: Total number of units with listed specifications on site: Type: Date of manufacture: kW Prime: Rated Voltage(Volts): Field Current (Amperes): % on % on % on % on % on Phases: 1 or 3 Speed (RPM): kVA: Rated Current (Amperes): Motoring Power (kW): kVA base kVA base kVA base kVA base kVA base Freq. (Hz);

(Continued on Sheet No. 10-108) Date Filed: Docket No. 11-02-05 Effective Date: 02-01-07 By: Cynthia L. Lesher President and CEO of Northern States Power Company Order Date: 09-01-06 E002/GR-05-1428

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 108

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APPENDIX C: Engineering Data Submittal Form (Continued) INDUCTION GENERATOR (if applicable) Rotor Resistance (Rr): Rotor Reactance (Xr): Magnetizing Reactance (Xm): Ohms Ohms Ohms Stator Resistance (Rs): Ohms Stator Reactance (Xs): Ohms Short Circuit Reactance (Xd): Ohms Frame Size: Temp Rise (deg C°): kVars (no Load) kVars (full load)

Design Letter: Exciting Current: Rated Output (kW): Reactive Power Required:

If this is a wound-rotor machine, describe any external equipment to be connected (resistor, rheostat, power converter, etc.) to rotor circuit, and circuit configuration. Describe ability, if any, to adjust generator reactive output to provide power system voltage regulation.

Additional Information: PRIME MOVER (Complete all applicable items) Unit Number: Manufacturer: Serial Number: H.P. Rated: H.P. Max: Energy Source (hydro, steam, wind, wind etc.): Date of Manufacture: Inertia Constant: lb.-ft.2 Type:

INTERCONNECTION (STEP-UP) TRANSFORMER (If applicable) Manufacturer: Date of Manufacture: High Voltage: Low Voltage: Transformer Impedance (Z): Transformer Resistance (R): Transformer Reactance (X): Neutral Grounding Resistor (if applicable) (Continued on Sheet No. 10-109) Date Filed: Docket No. 11-02-05 02-01-07 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company 09-01-06 E002/GR-05-1428 Order Date: kV kV Serial Number: Connection: delta Connection: delta wye wye % on % on % on Neutral solidly grounded? Neutral solidly grounded? kVA base kVA base kVA base kVA:

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 109

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APPENDIX C: Engineering Data Submittal Form (Continued) TRANSFER SWITCH (If applicable) Model Number: Manufacturer: Type: Rating (amps):

INVERTER (If applicable) Manufacturer: Model: Rated Power Factor (%): Rated Voltage (Volts): Rated Current (Amperes): Inverter Type (ferroresonant, step, pulse-width modulation, etc.): Type of Commutation: forced line Minimum Short Circuit Ratio required: Minimum voltage for successful commutation: Current Harmonic Distortion Maximum Individual Harmonic (%): Maximum Total Harmonic Distortion (%): Voltage Harmonic Distortion Maximum Individual Harmonic (%): Maximum Total Harmonic Distortion (%): Describe capability, if any, to adjust reactive output to provide voltage regulation:

NOTE: Attach all available calculations, test reports, and oscillographic prints showing inverter output voltage and current waveforms.

POWER CIRCUIT BREAKER (if applicable) Manufacturer: Model: Rated Voltage (kilovolts): Rated Ampacity (Amperes): Interrupting Rating (Amperes): BIL Rating: Interrupting Medium (vacuum, oil, gas, etc.) Insulating Medium (vacuum, oil, gas, etc.) Control Voltage (Closing): (Volts) AC DC Control Voltage (Tripping): (Volts) AC DC Battery Charged Capacitor Close Energy (circle one): Spring Motor Hydraulic Pneumatic Other Trip Energy (circle one): Spring Motor Hydraulic Pneumatic Other Bushing Current Transformers (Max. ratio): Relay Accuracy Class: CT’S Multi Ratio? (circle one); No / Yes: (Available taps):

(Continued on Sheet No. 10-110) Date Filed: Docket No. 11-02-05 Effective Date: By: Cynthia L. Lesher President and CEO of Northern States Power Company Order Date: E002/GR-05-1428 02-01-07 09-01-06

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Northern States Power Company , a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 110

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APPENDIX C: Engineering Data Submittal Form (Continued) MISCELLANEOUS (Use this area and any additional sheets for applicable notes and comments)

SIGN OFF AREA This Engineering Data Submittal documents the equipment and design of the Generation System. We agree to supply Xcel Energy with an updated Engineering Data Submittal any time significant changes are made in the equipment used or the design of the proposed Generation System. The Applicant agrees to design, operate and maintain the Generation System within the requirements set forth by the “State of Minnesota Distributed Generation Interconnection Requirements”. Applicant Name (print): Applicant Signature: Date:

SEND THIS COMPLETED & SIGNED ENGINEERING DATA SUBMITTAL AND ANY ATTACHMENTS TO THE GENERATION INTERCONNECTION COORDINATOR (Continued on Sheet No. 10-111) Date Filed: 11-02-05 Effective Date: By: Cynthia L. Lesher President and CEO of Northern States Power Company E002/GR-05-1428 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 111

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APPENDIX D: Engineering Studies For the engineering studies there are two main parts of the study: 1. Does the distributed generator cause a problem? and 2. What would it cost to make a change to handle the problem? The first question is relatively straightforward to determine, as Xcel Energy reviews the proposed installation. The second question typically has multiple alternatives and can turn into an iterative process. This iterative process can become quite large for more complex generation installations. For the Engineer there is no “cook book” solution that can be applied. For some of the large generation installations and/or the more complex interconnections, Xcel Energy may suggest dividing up the engineering studies into the two parts: identify the scope of the problems and attempt to identify solutions to resolve the problems. By splitting the engineering studies into two steps, it will allow for the Applicant to see the problems identified and to provide the Applicant the ability to remove the request for interconnection if the problems are too large and expensive to resolve. This would then save the additional costs to the Applicant for the more expensive engineering studies; to identity ways to resolve the problem(s). This appendix provides an overview of some of the main issues that are looked at during the engineering study process. Every interconnection has its unique issues, such as relative strength of the distribution system, ratio of the generation size to the existing area loads, etc. Thus many of the generation interconnections will require further review of one or several of the issues listed. • Short circuit analysis – the system is studied to make sure that the addition of the generation will not over stress any of the Xcel Energy equipment, and that equipment will still be able to clear during a fault. It is expected that the Applicant will complete their own short circuit analysis on their equipment to ensure that the addition of the generation system does not overstress the Applicant’s electrical equipment. Power Flow and Voltage Drop Reviews potential islanding of the generation Will Xcel Energy Equipment be overloaded Under normal operation? Under contingent operation? With backfeeds? Flicker Analysis – Will the operation of the generation cause voltage swings? When it loads up? When it off loads? How will the generation interact with Xcel Energy voltage regulation? Will Xcel Energy capacitor switching affect the generation while on-line Protection Coordination Reclosing issues – this is where the reclosing for the distribution system and transmission system are looked at to see if the Generation System protection can be set up to ensure that it will clear from the distribution system before the feeder is reenergized. Is voltage supervision of reclosing needed? (Continued on Sheet No. 10-112) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 112

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APPENDIX D: Engineering Studies (Continued) • Protection Coordination (Continued) Is transfer-trip required? Do we need to modify the existing protection systems? Existing settings? At which points do we need “out of sync” protection? Is the proposed interconnection protection system sufficient to sense a problem with Xcel Energy? Are there protection problems created by the step-up transformer? Grounding Reviews Does the proposed grounding system for the Generation System meet the requirements of the NESC? “National Electrical Safety Code” published by the Institute of Electrical and Electronics Engineers (IEEE) System Operation Impact. Are special operating procedures needed with the addition of the generation? Reclosing and out of sync operation of facilities. What limitations need to be placed on the operation of the generation? Operational Var requirements?

(Continued on Sheet No. 10-113) Date Filed: Docket No. 11-02-05 Effective Date: By: Cynthia L. Lesher President and CEO of Northern States Power Company Order Date: E002/GR-05-1428 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 113

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APPENDIX E: Interconnection Agreement State of Minnesota Proposed Interconnection Agreement For the Interconnection of Extended Parallel Distributed Generation Systems With Electric Utilities This Generating System Interconnection Agreement is entered into by and between Xcel Energy, “_____________________________” and the Interconnection Customer “_____________________________”. The Interconnection Customer and Xcel Energy are sometimes also referred to in this Agreement jointly as “Parties” or individually as “Party”. In consideration of the mutual promises and obligations stated in this Agreement and its attachments, the Parties agree as follows: I. SCOPE AND PURPOSE A. Establishment of Point of Common Coupling. This Agreement is intended to provide for the Interconnection Customer to interconnect and operate a Generation System with a total Nameplate Capacity of 10MWs or less in parallel with Xcel Energy at the location identified in Exhibit C and shown in the Exhibit A one-line diagram. This Agreement governs the facilities required to and contains the terms and condition under which the Interconnection Customer may interconnect the Generation System to Xcel Energy. This Agreement does not authorize the Interconnection Customer to export power or constitute an agreement to purchase or wheel the Interconnection Customer’s power. Other services that the Interconnection Customer may require from Xcel Energy, or others, may be covered under separate agreements.

B.

C. To facilitate the operation of the Generation System, this agreement also allows for the occasional and inadvertent export of energy to Xcel Energy. The amount, metering, billing and accounting of such inadvertent energy exporting shall be governed by Exhibit D (Operating Agreement). This Agreement does not constitute an agreement by Xcel Energy to purchase or pay for any energy, inadvertently or intentionally exported, unless expressly noted in Exhibit D or under a separately executed power purchase agreement (PPA). D. This agreement does not constitute a request for, nor the provision of any transmission delivery service or any local distribution delivery service. E. The Technical Requirements for interconnection are covered in a separate Technical Requirements document know as, the “State of Minnesota Distributed Generation Interconnection Requirements”, a copy of which as been made available to the Interconnection Customer and incorporated and made part of this Agreement by this reference. (Continued on Sheet No. 10-114) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company , a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 114

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APPENDIX E: Interconnection Agreement (Continued) II. DEFINITIONS A. “Area EPS” is an electric power system (EPS) that serves Local EPS’s. For the purpose of this agreement, the Xcel Energy system is the Area EPS. Note: Typically, Xcel Energy has primary access to public rightsof-way, priority crossing of property boundaries, etc. “Area EPS Operator” is the entity that operates the electric power system. For purpose of this agreement, Xcel Energy is the Are EPS Operator.

B.

C. “Dedicated Facilities” is the equipment that is installed due to the interconnection of the Generation System and not required to serve other Xcel Energy customers. D. “EPS” (Electric Power System) are facilities that deliver electric power to a load. Note: This may include generation units. E. “Extended Parallel” means the Generation System is designed to remain connected with Xcel Energy for an extended period of time. “Generation” is any device producing electrical energy, i.e., rotating generators driven by wind, steam turbines, internal combustion engines, hydraulic turbines, solar, fuel cells, etc.; or any other electric producing device, including energy storage technologies.

F.

G. “Generation Interconnection Coordinator” is the person or persons designated by Xcel Energy to provide a single point of coordination with the Applicant for the generation interconnection process. H. “Generation System” is the interconnected generator(s), controls, relays, switches, breakers, transformers, inverters and associated wiring and cables, up to the Point of Common Coupling. I. “Interconnection Customer” is the party or parties who will own/operate the Generation System and are responsible for meeting the requirements of the agreements and Technical Requirements. This could be the Generation System applicant, installer, owner, designer, or operator. “Local EPS” is an electric power system (EPS) contained entirely within a single premises or group of premises. “Nameplate Capacity” is the total nameplate capacity rating of all the Generation included in the Generation System. For this definition the “standby” and/or maximum rated kW capacity on the nameplate shall be used.

J.

K.

(Continued on Sheet No. 10-115)
Date Filed: Docket No. 11-02-05 Effective Date: By: Cynthia L. Lesher President and CEO of Northern States Power Company Order Date: E002/GR-05-1428 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 115

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APPENDIX E: Interconnection Agreement (Continued) II. DEFINITIONS (Continued) L. “Point of Common Coupling” is the point where the Local EPS is connected to Xcel Energy

M. “Point of Delivery” is the point where the energy changes possession from one party to the other. Typically this will be where the metering is installed but it is not required that the Point of Delivery is the same as where the energy is metered N. “Technical Requirements” are the State of Minnesota Requirements for Interconnection of Distributed Generation III. DESCRIPTION OF INTERCONNECTION CUSTOMER’S GENERATION SYSTEM A) A description of the Generation System, including a single-line diagram showing the general arrangement of how the Interconnection Customer’s Generation System is interconnected with Xcel Energy’s distribution system, is attached to and made part of this Agreement as Exhibit A. The single-line diagram shows the following: 1) 2) 3) 4) 5) 6) Point of Delivery (if applicable) Point of Common Coupling Location of Meter(s) Ownership of the equipment Generation System total Nameplate Capacity ________ kW Scheduled operational (on-line) date for the Generation System.

IV. RESPONSIBILITIES OF THE PARTIES A) The Parties shall perform all obligations of this Agreement in accordance with all applicable laws and regulations, operating requirements and good utility practices. B) Interconnection Customer shall construct, operate and maintain the Generation System in accordance with the applicable manufacture’s recommend maintenance schedule, the Technical Requirements and in accordance with this Agreement. (Continued on Sheet No. 10-116) Date Filed: Docket No. 11-02-05 Effective Date: By: Cynthia L. Lesher President and CEO of Northern States Power Company Order Date: E002/GR-05-1428 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 116

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APPENDIX E: Interconnection Agreement (Continued) IV. RESPONSIBILITIES OF THE PARTIES (Continued) C) Xcel Energy shall carry out the construction of the Dedicated Facilities in a good and workmanlike manner, and in accordance with standard design and engineering practices. V. CONSTRUCTION The Parties agree to cause their facilities or systems to be constructed in accordance with the laws of the State of Minnesota and to meet or exceed applicable codes and standards provided by the NESC (National Electrical Safety Code), ANSI (American National Standards Institute), IEEE (Institute of Electrical and Electronic Engineers), NEC (National Electrical Code), UL (Underwriter’s Laboratory), Technical Requirements and local building codes and other applicable ordinances in effect at the time of the installation of the Generation System. A) Charges and payments The Interconnection Customer is responsible for the actual costs to interconnect the Generation System with Xcel Energy, including, but not limited to any Dedicated Facilities attributable to the addition of the Generation System, Xcel Energy labor for installation coordination, installation testing and engineering review of the Generation System and interconnection design. Estimates of these costs are outlined in Exhibit B. While estimates, for budgeting purposes, have been provided in Exhibit B, the actual costs are still the responsibility of the Interconnection Customer, even if they exceed the estimated amount(s). All costs, for which the Interconnection Customer is responsible for, must be reasonable under the circumstances of the design and construction. 1) Dedicated Facilities a) During the term of this Agreement, Xcel Energy shall design, construct and install the Dedicated Facilities outlined in Exhibit B. The Interconnection Customer shall be responsible for paying the actual costs of the Dedicated Facilities attributable to the addition of the Generation System. Once installed, the Dedicated Facilities shall be owned and operated by Xcel Energy, and all costs associated with the operating and maintenance of the Dedicated Facilities, after the Generation System is operational, shall be the responsibility of Xcel Energy, unless otherwise agreed. By executing this Agreement, the Interconnection Customer grants permission for Xcel Energy to begin construction and to procure the necessary facilities and equipment to complete the installation of the Dedicated Facilities, as outlined in Exhibit B. If for any reason, the Generation System project is canceled or modified, so that any or all of the Dedicated Facilities are not required, the Interconnection Customer shall be responsible for all costs incurred by Xcel Energy, (Continued on Sheet No. 10-117) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

b)

c)

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 117

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APPENDIX E: Interconnection Agreement (Continued) V. CONSTRUCTION (Continued) including, but not limited to the additional costs to remove and/or complete the installation of the Dedicated Facilities. The Interconnection Customer may, for any reason, cancel the Generation System project, so that any or all of the Dedicated Facilities are not required to be installed. The Interconnection Customer shall provide written notice to Xcel Energy of cancellation. Upon receipt of a cancellation notice, Xcel Energy shall take reasonable steps to minimize additional costs to the Interconnection Customer, where reasonably possible. 2) Payments a) The Interconnection Customer shall provide reasonable adequate assurances of credit, including a letter of credit or personal guaranty of payment and performance from a creditworthy entity acceptable under Xcel Energy credit policy and procedures for the unpaid balance of the estimated amount shown in Exhibit B. The payment for the costs outlined in Exhibit B, shall be as follows: i. ii. 1/3 of estimated costs, outlined in Exhibit B, shall be due upon execution of this agreement. 1/3 of estimated costs, outlined in Exhibit B, shall be due prior to initial energization of the Generation System, with Xcel Energy. Remainder of actual costs, incurred by Xcel Energy, shall be due within 30 days from the date the bill is mailed by Xcel Energy after project completion.

b)

iii.

VI. DOCUMENTS INCLUDED WITH THIS AGREEMENT A) This agreement includes the following exhibits, which are specifically incorporated herein and made part of this Agreement by this reference: (if any of these Exhibits are deemed not applicable for this Generation System installation, they may be omitted from the final Agreement by Xcel Energy.) 1) Exhibit A – Description of Generation System and single-line diagram. This diagram shows all major equipment, including, visual isolation equipment, Point of Common Coupling, Point of Delivery for Generation Systems that intentionally export, ownership of equipment and the location of metering.

(Continued on Sheet No. 10-118) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 118

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APPENDIX E: Interconnection Agreement (Continued) VI. DOCUMENTS INCLUDED WITH THIS AGREEMENT (Continued) 2) Exhibit B – Estimated installation and testing costs payable by the Interconnection Customer. Included in this listing shall be the description and estimated costs for the required Dedicated Facilities being installed by Xcel Energy for the interconnection of the Generation System and a description and estimate for the final acceptance testing work to be done by Xcel Energy. Exhibit C – Engineering Data Submittal – A standard form that provides the engineering and operating information about the Generation System. Exhibit D – Operating Agreement – This provides specific operating information and requirements for this Generation System interconnection. This Exhibit has a separate signature section and may be modified, in writing, from time to time with the agreement of both parties. Exhibit E – Maintenance Agreement – This provides specific maintenance requirements for this Generation System interconnection. This Exhibit has a separate signature section and may be modified, in writing, from time to time with the agreement of both parties.

3)

4)

5)

VII. TERMS AND TERMINATION A) This Agreement shall become effective as of the date when both the Interconnection Customer and Xcel Energy have both signed this Agreement. The Agreement shall continue in full force and effect until the earliest date that one of the following events occurs: 1) 2) The Parties agree in writing to terminate the Agreement; or The Interconnection Customer may terminate this agreement at any time, by written notice to Xcel Energy, prior to the completion of the final acceptance testing of the Generation System by Xcel Energy. Once the Generation System is operational, then VII.A.3 applies. Upon receipt of a cancellation notice, Xcel Energy shall take reasonable steps to minimize additional costs to the Interconnection Customer, where reasonably possible. Once the Generation System is operational, the Interconnection Customer may terminate this agreement after 30 days written notice to Xcel Energy, unless otherwise agreed to within the Exhibit D, Operating Agreement; or

3)

(Continued on Sheet No.10-119) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 119

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APPENDIX E: Interconnection Agreement (Continued) VII. TERMS AND TERMINATION 4) Xcel Energy may terminate this agreement after 30 days written notice to the Interconnection Customer if: a) The Interconnection Customer fails to interconnect and operate the Generation System per the terms of this Agreement; or The Interconnection Customer fails to take all corrective actions specified in Xcel Energy’s written notice that the Generation System is out of compliance with the terms of this Agreement, within the time frame set forth in such notice, or If the Interconnection Customer fails to complete Xcel Energy’s final acceptance testing of the generation system within 24 months of the date proposed under section III.A.5.

b)

c)

B) Upon termination of this Agreement the Generation System shall be disconnected from Xcel Energy. The termination of this Agreement shall not relieve either Party of its liabilities and obligations, owed or continuing, at the time of the termination. VIII. OPERATIONAL ISSUES Each Party will, at its own cost and expense, operate, maintain, repair and inspect, and shall be fully responsible for, the facilities that it now or hereafter may own, unless otherwise specified. A) Technical Standards: The Generation System shall be installed and operated by the Interconnection Customer consistent with the requirements of this Agreement; the Technical Requirements; the applicable requirements located in the National Electrical Code (NEC); the applicable standards published by the American National Standards Institute (ANSI) and the Institute of Electrical and Electronic Engineers (IEEE); and local building and other applicable ordinances in effect at the time of the installation of the Generation System. Right of Access: At all times, Xcel Energy’s personnel shall have access to the disconnect switch of the Generation System for any reasonable purpose in connection with the performance of the obligations imposed on it by this Agreement, to meet its obligation to operate the electric power system safely and to provide service to its customers. If necessary for the purposes of this Agreement, the Interconnection Customer shall allow Xcel Energy access to Xcel Energy’s equipment and facilities located on the premises.

B)

(Continued on Sheet No. 10-120) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 120

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APPENDIX E: Interconnection Agreement (Continued) VIII. OPERATIONAL ISSUES (Continued) C) Electric Service Supplied: will supply the electrical requirements of the Local EPS that are not supplied by the Generation System. Such electric service shall be supplied, to the Interconnection Customer’s Local EPS, under the rate schedules applicable to the Customer’s class of service as revised from time to time by Xcel Energy. D) Operation and Maintenance: The Generation System shall be operated and maintained, by the Interconnection Customer in accordance with the Technical Standards and any additional requirements of Exhibit D and Exhibit E, attached to this document, as amended, in writing, from time to time. E) Cooperation and Coordination: Both Xcel Energy and the Interconnection Customer shall communicate and coordinate their operations, so that the normal operation of the electric power system does not unduly effect or interfere with the normal operation of the Generation System and the Generation System does not unduly effect or interfere with the normal operation of the electric power system. Under abnormal operations of either the Generation System or the Xcel Energy system, the responsible Party shall provide reasonably timely communication to the other Party to allow mitigation of any potentially negative effects of the abnormal operation of their system. F) Disconnection of Unit: Xcel Energy may disconnect the Generation System as reasonably necessary, for termination of this Agreement; non-compliance with this Agreement; system emergency, imminent danger to the public or Xcel Energy personnel; routine maintenance, repairs and modifications to the electric power system. When reasonably possible, Xcel Energy shall provide prior notice to the Interconnection Customer explaining the reason for the disconnection. If prior notice is not reasonably possible, Xcel Energy shall after the fact, provide information to the Interconnection Customer as to why the disconnection was required. It is agreed that Xcel Energy shall have no liability for any loss of sales or other damages, including all consequential damages for the loss of business opportunity, profits or other losses, regardless of whether such damages were foreseeable, for the disconnection of the Generation System per this Agreement. Xcel Energy shall expend reasonable effort to reconnect the Generation System in a timely manner and to work towards mitigating damages and losses to the Interconnection Customer where reasonably possible.

G) Modifications to the Generation System: When reasonably possible the Interconnection Customer shall notify Xcel Energy, in writing, of plans for any modifications to the Generation System interconnection equipment, including all information needed by Xcel Energy as part of the review described in this paragraph, at least twenty (20) business days prior to undertaking such modification(s). Modifications to any of the interconnection equipment, including, all interconnection required protective systems, the generation control systems, the transfer switches/breakers, interconnection protection VT’s & CT’s, and Generation System capacity, shall be included in the notification to Xcel Energy. When reasonably possible the

(Continued on Sheet No. 10-121) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 121

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APPENDIX E: Interconnection Agreement (Continued) VIII. OPERATIONAL ISSUES (Continued) Interconnection Customer agrees not to commence installation of any modifications to the Generating System until Xcel Energy has approved the modification, in writing, which approval shall not be unreasonably withheld. Xcel Energy shall have a minimum of five (5) business days to review and respond to the planned modification. Xcel Energy shall not take longer then a maximum of ten (10) business days, to review and respond to the modification after the receipt of the information required to review the modifications. When it is not reasonably possible for the Interconnection Customer to provide prior written notice, the Interconnection Customer shall provide written notice to Xcel Energy as soon as reasonably possible, after the completion of the modification(s). H) Permits and Approvals: The Interconnection Customer shall obtain all environmental and other permits lawfully required by governmental authorities prior to the construction of the Generation System. The Interconnection Customer shall also maintain these applicable permits and compliance with these permits during the term of this Agreement. IX. LIMITATION OF LIABILITY A) Each Party shall at all times indemnify, defend, and save the other Party harmless from any and all damages, losses, claims, including claims and actions relating to injury or death of any person or damage to property, costs and expenses, reasonable attorneys’ fees and court costs, arising out of or resulting from the Party’s performance of its obligations under this agreement, except to the extent that such damages, losses or claims were caused by the negligence or intentional acts of the other Party. B) Each Party’s liability to the other Party for failure to perform its obligations under this Agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either Party be liable to the other Party for any punitive, incidental, indirect, special, or consequential damages of any kind whatsoever, including for loss of business opportunity or profits, regardless of whether such damages were foreseen. C) Notwithstanding any other provision in this Agreement, with respect to Xcel Energy’s provision of electric service to any customer including the Interconnection Customer, the Xcel Energy’s liability to such customer shall be limited as set forth in Xcel Energy’s tariffs and terms and conditions for electric service, and shall not be affected by the terms of this Agreement. X. DISPUTE RESOLUTION A) Each Party agrees to attempt to resolve all disputes arising hereunder promptly, equitably and in a good faith manner.

(Continued on Sheet No. 10-122) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 122

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APPENDIX E: Interconnection Agreement (Continued) X. DISPUTE RESOLUTION (Continued) B) In the event a dispute arises under this Agreement, and if it cannot be resolved by the Parties within thirty (30) days after written notice of the dispute to the other Party, the Parties agree to submit the dispute to mediation by a mutually acceptable mediator, in a mutually convenient location in the State of Minnesota. The Parties agree to participate in good faith in the mediation for a period of 90 days. If the parties are not successful in resolving their disputes through mediation, then the Parties may refer the dispute for resolution to the Minnesota Public Utilities Commission (MPUC), which shall maintain continuing jurisdiction over this Agreement. XI. INSURANCE A) At a minimum, In connection with the Interconnection Customer’s performance of its duties and obligations under this Agreement, the Interconnection Customer shall maintain, during the term of the Agreement, general liability insurance, from a qualified insurance agency with a B+ or better rating by “Best” and with a combined single limit of not less then: 1) Two million dollars ($2,000,000) for each occurrence, if the Gross Nameplate Rating of the Generation System is greater then 250kW. One million dollars ($1,000,000) for each occurrence if the Gross Nameplate Rating of the Generation System is between 40kW and 250kW. Three hundred thousand ($300,000) for each occurrence if the Gross Nameplate Rating of the Generation System is less then 40kW. Such general liability insurance shall include coverage against claims for damages resulting from (i) bodily injury, including wrongful death; and (ii) property damage arising out of the Interconnection Customer’s ownership and/or operating of the Generation System under this agreement.

2)

3)

4)

B) The general liability insurance required shall, by endorsement to the policy or policies, (a) include Xcel Energy as an additional insured; (b) contain a severability of interest clause or cross-liability clause; (c) provide that Xcel Energy shall not by reason of its inclusion as an additional insured incur liability to the insurance carrier for the payment of premium for such insurance; and (d) provide for thirty (30) calendar days’ written notice to Xcel Energy prior to cancellation, termination, alteration, or material change of such insurance.

(Continued on Sheet No. 10-123) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 123

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APPENDIX E: Interconnection Agreement (Continued) XI. INSURANCE (Continued) C) If the Generation System is connected to an account receiving residential service from Xcel Energy and its total generating capacity is smaller then 40kW, then the endorsements required in Section XI.B shall not apply. D) The Interconnection Customer shall furnish the required insurance certificates and endorsements to Xcel Energy prior to the initial operation of the Generation System. Thereafter, Xcel Energy shall have the right to periodically inspect or obtain a copy of the original policy or policies of insurance E) Evidence of the insurance required in Section XI.A. shall state that coverage provided is primary and is not excess to or contributing with any insurance or self-insurance maintained by Xcel Energy. F) If the Interconnection Customer is self-insured with an established record of self-insurance, the Interconnection Customer may comply with the following in lieu of Section XI.A – E: 1) Interconnection Customer shall provide to Xcel Energy, at least thirty (30) days prior to the date of initial operation, evidence of an acceptable plan to self-insure to a level of coverage equivalent to that required under section XI.A. If Interconnection Customer ceases to self-insure to the level required hereunder, or if the Interconnection Customer is unable to provide continuing evidence of it’s ability to self-insure, the Interconnection Customer agrees to immediately obtain the coverage required under Section XI.A.

2)

G) Failure of the Interconnection Customer or Xcel Energy to enforce the minimum levels of insurance does not relieve the Interconnection Customer from maintaining such levels of insurance or relieve the Interconnection Customer of any liability. H) All insurance certificates, statements of self-insurance, endorsements, cancellations, terminations, alterations, and material changes of such insurance shall be issued and submitted to the Generation Interconnection Coordinator assigned. XII. MISCELLANEOUS A) FORCE MAJEURE 1) An event of Force Majeure means any act of God, act of the public enemy, war, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment, any curtailment, order, (Continued on Sheet No. 10-124) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 124

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APPENDIX E: Interconnection Agreement (Continued) XII. MISCELLANEOUS (Continued) regulation or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party’s control. An event of Force Majeure does not include an act of negligence or intentional wrongdoing. Neither Party will be considered in default as to any obligation hereunder if such Party is prevented from fulfilling the obligation due to an event of Force Majeure. However, a Party whose performance under this Agreement is hindered by an event of Force Majeure shall make all reasonable efforts to perform its obligations hereunder. 2) Neither Party will be considered in default of any obligation hereunder if such Party is prevented from fulfilling the obligation due to an event of Force Majeure. However, a Party whose performance under this Agreement is hindered by an event of Force Majeure shall make all reasonable efforts to perform its obligations hereunder.

B)

NOTICES 1) Any written notice, demand, or request required or authorized in connection with this Agreement (“Notice”) shall be deemed properly given if delivered in person or sent by first class mail, postage prepaid, to the person specified below: a) b) Generation Interconnection Coordinator assigned If to Interconnection Customer: A Friendly Interconnection Customer Attention: Generation Coordinator 12345 Interconnection Drive. Anytown, MN 55000 2) A Party may change its address for notices at any time by providing the other Party written notice of the change, in accordance with this Section. The Parties may also designate operating representatives to conduct the daily communications, which may be necessary or convenient for the administration of this Agreement. Such designations, including names, addresses, and phone numbers may be communicated or revised by one Party’s notice to the other Party.

3)

(Continued on Sheet No. 10-125) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 125

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APPENDIX E: Interconnection Agreement (Continued) C) ASSIGNMENT The Interconnection Customer shall not assign its rights nor delegate its duties under this Agreement without Xcel Energy’s written consent. Any assignment or delegation the Interconnection Customer makes without Xcel Energy’s written consent shall not be valid. Xcel Energy shall not unreasonably withhold its consent to the Generating Entities assignment of this Agreement. D) NON-WAIVER None of the provisions of this Agreement shall be considered waived by a Party unless such waiver is given in writing. The failure of a Party to insist in any one or more instances upon strict performance of any of the provisions of this Agreement or to take advantage of any of its rights hereunder shall not be construed as a waiver of any such provisions or the relinquishment of any such rights for the future, but the same shall continue and remain in full force and effect. E) GOVERNING LAW AND INCLUSION OF XCEL ENERGY’S TARIFFS AND RULES. 1) This Agreement shall be interpreted, governed and construed under the laws of the State of Minnesota as if executed and to be performed wholly within the State of Minnesota without giving effect to choice of law provisions that might apply to the law of a different jurisdiction. The interconnection and services provided under this Agreement shall at all times be subject to the terms and conditions set forth in the tariff schedules and rules applicable to the electric service provided by Xcel Energy, which tariff schedules and rules are hereby incorporated into this Agreement by this reference. Notwithstanding any other provisions of this Agreement, Xcel Energy shall have the right to unilaterally file with the MPUC, pursuant to the MPUC’s rules and regulations, an application for change in rates, charges, classification, service, tariff or rule or any agreement relating thereto.

2)

3)

F)

AMENDMENT AND MODIFICATION This Agreement can only be amended or modified by a writing signed by both Parties.

G) ENTIRE AGREEMENT This Agreement, including all attachments, exhibits, and appendices, constitutes the entire Agreement between the Parties with regard to the interconnection of the Generation System of the Parties at the Point(s) of Common Coupling expressly provided for in this Agreement and supersedes all prior agreements. (Continued on Sheet No. 10-126) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 126

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APPENDIX E: Interconnection Agreement (Continued) G) ENTIRE AGREEMENT (Continued) or understandings, whether verbal or written. It is expressly acknowledged that the Parties may have other agreements covering other services not expressly provided for herein, which agreements are unaffected by this Agreement. Each party also represents that in entering into this Agreement, it has not relied on the promise, inducement, representation, warranty, agreement or other statement not set forth in this Agreement or in the incorporated attachments, exhibits and appendices. H) CONFIDENTIAL INFORMATION Except as otherwise agreed or provided herein, each Party shall hold in confidence and shall not disclose confidential information, to any person (except employees, officers, representatives and agents, who agree to be bound by this section). Confidential information shall be clearly marked as such on each page or otherwise affirmatively identified. If a court, government agency or entity with the right, power, and authority to do so, requests or requires either Party, by subpoena, oral disposition, interrogatories, requests for production of documents, administrative order, or otherwise, to disclose Confidential Information, that Party shall provide the other Party with prompt notice of such request(s) or requirements(s) so that the other Party may seek an appropriate protective order or waive compliance with the terms of this Agreement. In the absence of a protective order or waiver the Party shall disclose such confidential information which, in the opinion of its counsel, the party is legally compelled to disclose. Each Party will use reasonable efforts to obtain reliable assurance that confidential treatment will be accorded any confidential information so furnished. I) NON-WARRANTY Neither by inspection, if any, or non-rejection, nor in any other way, does Xcel Energy give any warranty, expressed or implied, as to the adequacy, safety, or other characteristics of any structures, equipment, wires, appliances or devices owned, installed or maintained by the Interconnection Customer or leased by the Interconnection Customer from third parties, including without limitation the Generation System and any structures, equipment, wires, appliances or devices appurtenant thereto. J) NO PARTNERSHIP This Agreement shall not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party.

(Continued on Sheet No. 10-127) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 127

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APPENDIX E: Interconnection Agreement (Continued) XIII. SIGNATURES IN WITNESS WHEREOF, the Parties hereto have caused two originals of this Agreement to be executed by their duly authorized representatives. This Agreement is effective as of the last date set forth below. Interconnection Customer By: ________________________________ Name: _____________________________ Title: ______________________________ Date: ______________________________

Xcel Energy By: ________________________________ Name: _____________________________ Title: ______________________________ Date: ______________________________

(Continued on Sheet No. 10-128) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 128

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EXHIBIT A GENERATION SYSTEM DESCRIPTION AND SINGLE-LINE DIAGRAM

(Continued on Sheet No. 10-129) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 129

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EXHIBIT B SUMMARY OF XCEL ENERGY COSTS AND DESCRIPTION OF DEDICATED FACILITIES BEING INSTALLED BY XCEL ENERGY FOR THE INTERCONNECTION OF THE GENERATION SYSTEM This Exhibit shall provide the estimated total costs that will be the responsibility of the Interconnection Customer. It is assumed that the Initial application has been filed and the engineering studies have been paid for and completed. So those costs are not included on this listing. What is listed below is a general outline of some of the major areas where costs could occur. Costs other than those listed below may be included by Xcel Energy, provided that those costs are a direct result from the request to interconnect the Generation System. The following list is only a guideline and Xcel Energy, for each installation will be creating a unique Exhibit B that is tailored for that specific Generation System interconnection. A) B) C) D) E) F) Dedicated Facilities (equipment, design and installation labor) Monitoring & Control System (equipment, design and installation labor) Design Coordination and Review Construction Coordination labor costs Testing (development of tests and physical testing) Contingency

(Continued on Sheet No. 10-130) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 130

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EXHIBIT C ENGINEERING DATA SUBMITTAL Attach a completed Engineering Data Submittal form from Appendix C of “State of Minnesota Interconnection Process for Distributed Generation Systems”.

(Continued on Sheet No. 10-131) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 131

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EXHIBIT D OPERATING AGREEMENT Each Generation System interconnection will be unique and will require a unique Operating Agreement. The following is a listing of some of the possible areas that will be covered in an operating agreement. The following has not been developed into a standard agreement due to the unique nature of each Generation System. It is envisioned that this Exhibit will be tailored by Xcel Energy for each Generation System interconnection. It is also intended that this Operating Agreement Exhibit will be reviewed and updated periodically, to allow the operation of the Generation System, to change to meet the needs of both Xcel Energy and the Interconnection Customer, provided that the change does not negatively affect the other Party. There may also be operating changes required by outside issues, such has changes in FERC and MISO requirements and/or policies which will require this Operating Agreement to be modified. The following items are provided to show the general types of items that may be included in this Operating Agreement. The items included in the Operating Agreement shall not be limited to the items shown on this list. A) Applicable Xcel Energy Tariffs: discussion on which tariffs are being applied for this installation and possibly how they will be applied. Var Requirements: How will the Generation System be required to operate so as to control the power factor of the energy flowing in either direction across the interconnection?

B)

C) Inadvertent Energy: This Operating Agreement needs to provide the method(s) that will be used to monitor, meter and account for the inadvertent energy used or supplied by the Generation System. Tariffs and operating rules that apply for this Generation System interconnection shall be discussed in this Operating Agreement. D) Control Issues: Starting and stopping of the generation, including the remote starting and stopping, if applicable. E) Dispatch of Generation Resources: What are the dispatch requirements for the Generation System, Can it only run during Peak Hours? Are there a limited number of hours that it can run? Is it required to have met an availability percentage? This will greatly depend upon the PPA and other requirements. Is the Interconnection Customer required to coordinate outages of the Generation System, with Xcel Energy? Outages of Distribution System: How are emergency outages handled? How are other outages scheduled? If the Interconnection Customer requires Xcel Energy to schedule the outages during after-hours, who pays for Xcel Energy’s overtime?

F)

(Continued on Sheet No. 10-132) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 132

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EXHIBIT D (Continued) OPERATING AGREEMENT (Continued) G) Notification / Contacts: Who should be notified? How should they be notified? When should they be notified? For what reasons, should the notification take place? 1) 2) 3) Starting of the Generation Dispatching of Generation Notification of failures (both Xcel Energy and Generation System failures)

H) Documentation of Operational Settings: How much fuel will the generation System typically have on hand? How long can it run with this fuel capacity? How is the generation system set to operate for a power failure? These may be issues that should be documented in the Operating Agreement. The following are a couple of examples: 1) “The Generation System will monitor the Xcel Energy phase voltage and after 2 seconds of any phase voltage below 90% the generation will be started and the load transferred to the generator, if the generation is not already running.” “The Generation System will wait for 30 minutes after it senses the return of the Xcel Energy frequency and voltage, before it will automatically reconnect to Xcel Energy.”

2)

I)

Cost of testing for future failures: If a component of the Generation System fails or needs to be replaced, which effects the interconnection with Xcel Energy, what is the process for retesting, and for replacement? Who pays for the additional costs of Xcel Energy to work with the Interconnection Customer to resolve these problems and/or to complete retesting of the modified equipment? Right of Access: At all times, Xcel Energy shall have access to the disconnect switch of the Generation System for any reasonable purpose in connection with the performance of the obligations imposed on it by this Agreement, to meet its obligation to operate the Xcel Energy system safely and to provide service to its customers, at all times. If necessary for the purposed of this Agreement, the Interconnection Customer shall allow Xcel Energy access to Xcel Energy’s equipment and facilities located on the premises.

J)

(Continued on Sheet No. 10-133) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 133

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EXHIBIT D (Continued) OPERATING AGREEMENT (Continued) SIGNATURES IN WITNESS WHEREOF, the Parties hereto have caused two originals of this Agreement to be executed by their duly authorized representatives. This Agreement is effective as of the last date set forth below. Interconnection Customer By: ________________________________ Name: _____________________________ Title: ______________________________ Date: ______________________________

Xcel Energy By: ________________________________ Name: _____________________________ Title: ______________________________ Date: ______________________________

(Continued on Sheet No. 10-134) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 134

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EXHIBIT E MAINTENANCE AGREEMENT Each Generation System interconnection will be unique and will require a unique Maintenance Agreement. It is envisioned that this Exhibit will be tailored for each Generation System interconnection. It is also intended that this Maintenance Agreement Exhibit will be reviewed and updated periodically, to allow the maintenance of the Generation System be allowed to change to meet the needs of both Xcel Energy and the Interconnection Customer, provided that change does not negatively affect the other Party. There may also be changes required by outside issues; such has changes in FERC and MISO requirements and/or policies that will require this agreement to be modified. A) Routine Maintenance Requirements – 1) 2) B) Who is providing maintenance – Contact information Periods of maintenance

Modifications to the Generation System - The Interconnection Customer shall notify Xcel Energy, in writing of plans for any modifications to the Generation System interconnection equipment at least twenty (20) business days prior to undertaking such modification. Modifications to any of the interconnection equipment, including all required protective systems, the generation control systems, the transfer switches/breakers, VT’s & CT’s, generating capacity and associated wiring shall be included in the notification to Xcel Energy. The Interconnection Customer agrees not to commence installation of any modifications to the Generating System until Xcel Energy has approved the modification, in writing. Xcel Energy shall have a minimum of five (5) business days and a maximum of ten (10) business days, to review and respond to the modification, after the receipt of the information required to review the modifications.

SIGNATURES IN WITNESS WHEREOF, the Parties hereto have caused two originals of this Agreement to be executed by their duly authorized representatives. This Agreement is effective as of the last date set forth below.

Interconnection Customer By: __________________________ Name: _______________________ Title: ________________________ Date: ________________________

Xcel Energy By: _________________________ Name: _______________________ Title: ________________________ Date: ________________________

(Continued on Sheet No. 10-135) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 135

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STATE OF MINNESOTA DISTRIBUTED GENERATION INTERCONNECTION REQUIREMENTS TABLE OF CONTENTS Foreword 1. 2. 3. 4. 5. Introduction References Types of Interconnections Interconnection Issues and Technical Requirements Generation Metering, Monitoring and Control Table 5A – Metering, Monitoring and Control Requirements Protective Devices and Systems Table 6A – Relay Requirements Agreements Testing Requirements 10-136 10-136 10-140 10-141 10-144 10-147 10-148 10-151 10-154 10-155 10-156

6.

7. 8.

Attachments:

System Diagrams Figure 1 – Open Transition Figure 2 – Closed Transition Figure 3 – Soft Loading Transfer With Limited Parallel Operation Figure 4 – Soft Loading Transfer With Extended Parallel Operation Figure 5 – Inverter Connected 10-161 10-162

10-163

10-164 10-165

(Continued on Sheet No. 10-136) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 136

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FOREWORD Electric distribution system connected generation units span a wide range of sizes and electrical characteristics. Electrical distribution system design varies widely from that required to serve the rural customer to that needed to serve the large commercial customer. With so many variations possible, it becomes complex and difficult to create one interconnection standard that fits all generation interconnection situations. In establishing a generation interconnection standard there are three main issues that must be addressed; Safety, Economics and Reliability. The first and most important issue is safety; the safety of the general public and of the employees working on the electrical systems. This standard establishes the technical requirements that must be met to ensure the safety of the general public and of the employees working with Xcel Energy. Typically designing the interconnection system for the safety of the general public will also provide protection for the interconnected equipment. The second issue is economics; the interconnection design must be affordable to build. The interconnection standard must be developed so that only those items, that are necessary to meet safety and reliability, are included in the requirements. This standard sets the benchmark for the minimum required equipment. If it is not needed, it will not be required. The third issue is reliability; the generation system must be designed and interconnected such that the reliability and the service quality for all customers of the electrical power systems are not compromised. This applies to all electrical systems, not just Xcel Energy. Many generation interconnection standards exist or are in draft form. The IEEE, FERC and many states have been working on generation interconnection standards. There are other standards such as the National Electrical Code (NEC) that, establish requirements for electrical installations. The NEC requirements are in addition to this standard. This standard is designed to document the requirements where the NEC has left the establishment of the standard to “the authority having jurisdiction” or to cover issues which are not covered in other national standards. This standard covers installations, with an aggregated capacity of 10MW’s or less. Many of the requirements in this document do not apply to small, 40kW or less generation installations. As an aid to the small, distributed generation customer, these small unit interconnection requirements have been extracted from this full standard and are available as a separate, simplified document titled: “Standards for Interconnecting Generation Sources, Rated Less then 40kW with Minnesota Electric Utilities”. 1. Introduction This standard has been developed to document the technical requirements for the interconnection between a Generation System and an area electrical power system “Utility system or Xcel Energy”. This standard covers 3 phase Generation Systems with an aggregate capacity of 10 MW’s or less and single phase Generation Systems (Continued on Sheet No. 10-137) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 137

1.

Introduction (Continued) with an aggregate capacity of 40kW or less at the Point of Common Coupling. This standard covers Generation Systems that are interconnected with Xcel Energy’s distribution facilities. This standard does not cover Generation Systems that are directly interconnected with Xcel Energy’s Transmission System. Contact Xcel Energy for their Transmission System interconnection standards. While, this standard provides the technical requirements for interconnecting a Generation System with a typical radial distribution system, it is important to note that there are some unique electric power systems, which have special interconnection needs. One example of a unique electric power system would be one operated as a “networked” system. This standard does not cover the additional special requirements of those systems. The Interconnection Customer must contact the Owner/Operator of the electric power system with which the interconnection is intended, to make sure that the Generation System is not proposed to be interconnected with a unique electric power system. If the planned interconnection is with a unique electric power system, the Interconnection Customer must obtain the additional requirements for interconnecting with Xcel Energy. Xcel Energy has the right to limit the maximum size of any Generation System or number of Generation Systems that may want to interconnect, if the Generation System would reduce the reliability to the other customers connected to Xcel Energy. This standard only covers the technical requirements and does not cover the interconnection process from the planning of a project through approval and construction. Please read the companion document “State of Minnesota Interconnection Process for Distributed Generation Systems” for the description of the procedure to follow and a generic version of the forms to submit. It is important to also get copies of Xcel Energy’s tariff’s concerning generation interconnection which will include rates, costs and standard interconnection agreements. The earlier the Interconnection Customer gets Xcel Energy involved in the planning and design of the Generation System interconnection the smoother the process will go. A) Definitions The definitions defined in the “IEEE Standard for Interconnecting Distributed Resources with Electric Power Systems” (1547 Draft Ver. 11) apply to this document as well. The following definitions are in addition to the ones defined in IEEE 1547, or are repeated from the IEEE 1547 standard. i) “Area EPS” is an electric power system (EPS) that serves Local EPS’s. For the purposes of this tariff, the Xcel Energy system is the Area EPS. Note. Typically, Xcel Energy has primary access to public rights-of-way, priority crossing of property boundaries, etc.

ii) “Generation” is any device producing electrical energy, i.e., rotating generators driven by wind, steam turbines, internal combustion engines, hydraulic turbines, solar, fuel cells, etc.; or any other electric producing device, including energy storage technologies. (Continued on Sheet No. 10-138) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 138

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A) Definitions (Continued) iii) “Generation System” is the interconnected Distributed Generation(s), controls, relays, switches, breakers, transformers, inverters and associated wiring and cables, up to the Point of Common Coupling. iv) “Interconnection Customer” is the party or parties who are responsible for meeting the requirements of this standard. This could be the Generation System applicant, installer, designer, owner or operator. v) “Local EPS” is an electric power system (EPS) contained entirely within a single premises or group of premises. vi) “Point of Common Coupling” is the point where the Local EPS is connected to Xcel Energy. vii) “Transmission System” are those facilities as defined by using the guidelines established by the Minnesota State Public Utilities Commission; “In the Matter of Developing Statewide Jurisdictional Boundary Guidelines for Functionally Separating Interstate Transmission from Generation and Local Distribution Functions” Docket No. E-015/M-99-1002. viii) “Type-Certified” is Generation paralleling equipment that is listed by an OSHA listed national testing laboratory as having met the applicable type testing requirement of UL 1741. At the time is document was prepared this was the only national standard available for certification of generation transfer switch equipment. This definition does not preclude other forms of type-certification if agreeable to Xcel Energy. B) Interconnection Requirements Goals This standard defines the minimum technical requirements for the implementation of the electrical interconnection between the Generation System and Xcel Energy. It does not define the overall requirements for the Generation System. The requirements in this standard are intended to achieve the following: i) Ensure the safety of utility personnel and contractors working on the electrical power system.

ii) Ensure the safety of utility customers and the general public. iii) Protect and minimize the possible damage to the electrical power system and other customer’s property. iv) Ensure proper operation to minimize adverse operating conditions on the electrical power system. (Continued on Sheet No. 10-139) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 139

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C)

Protection The Generation System and Point of Common Coupling shall be designed with proper protective devices to promptly and automatically disconnect the Generation from Xcel Energy in the event of a fault or other system abnormality. The type of protection required will be determined by: i) Size and type of the generating equipment.

ii) The method of connecting and disconnecting the Generation System from the electrical power system. iii) The location of generating equipment on the electric power system. D) Xcel Energy Modifications Depending upon the match between the Generation System, Xcel Energy and how the Generation System is operated, certain modifications and/or additions may be required to the existing electric power system with the addition of the Generation System. To the extent possible, this standard describes the modifications which could be necessary to the electric power system for different types of Generation Systems. For some unique interconnections, additional and/or different protective devices, system modifications and/or additions will be required by Xcel Energy. In these cases Xcel Energy will provide the final determination of the required modifications and/or additions. If any special requirements are necessary they will be identified by Xcel Energy during the application review process. E) Generation System Protection The Interconnection Customer is solely responsible for providing protection for the Generation System. Protection systems required in this standard, are structured to protect Xcel Energy’s electrical power system and the public. The Generation System Protection is not provided for in this standard. Additional protection equipment may be required to ensure proper operation for the Generation System. This is especially true while operating disconnected, from Xcel Energy. Xcel Energy does not assume responsibility for protection of the Generation System equipment or of any portion of a Local EPS. F) Electrical Code Compliance Interconnection Customer shall be responsible for complying with all applicable local, independent, state and federal codes such as building codes, National Electric Code (NEC), National Electrical Safety Code (NESC) and noise and emissions standards. As required by Minnesota State law, Xcel Energy will require proof of complying with the National Electrical Code before the interconnection is made, through installation approval by an electrical inspector recognized by the Minnesota State Board of Electricity. The Interconnection Customer’s Generation System and installation shall comply with latest revisions of the ANSI/IEEE standards applicable to the installation, especially IEEE 1547; “Standard for Interconnecting Distributed Resources with Electric Power Systems”. See the reference section in this document for a partial list of the standards that apply to the generation installations covered by this standard.

(Continued on Sheet No. 10-140) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 140

2. References The following standards shall be used in conjunction with this standard. When the stated version of the following standards is superseded by an approved revision then that revision shall apply.

IEEE Std 100-2000, “IEEE Standard Dictionary of Electrical and Electronic Terms” IEEE Std 519-1992, “IEEE Recommended Practices and Requirements for Harmonic Control in Electric Power Systems” IEEE Std 929-2000,”IEEE Recommended Practice for Utility Interface of Photovoltaic (PV) Systems” IEEE Std 1547, “IEEE Standard for Interconnecting Distributed Resources with Electric Power Systems” IEEE Std C37.90.1-1989 (1995), “IEEE Standard Surge Withstand Capability (SEC) Tests for Protective Relays and Relay Systems” IEEE Std C37.90.2 (1995), “IEEE Standard Withstand Capability of Relay Systems to Radiated Electromagnetic Interference from Transceivers” IEEE Std C62.41.2-2002, “IEEE Recommended Practice on Characterization of Surges in Low Voltage (1000V and Less) AC Power Circuits” IEEE Std C62.42-1992 (2002), “IEEE Recommended Practice on Surge Testing for Equipment Connected to Low Voltage (1000V and less) AC Power Circuits” ANSI C84.1-1995,”Electric Power Systems and Equipment – Voltage Ratings (60 Hertz)” ANSI/IEEE 446-1995, “Recommended Practice for Emergency and Standby Power Systems for Industrial and Commercial Applications” ANSI/IEEE Standard 142-1991, “IEEE Recommended Practice for Grounding of Industrial an Commercial Power Systems – Green Book” UL Std. 1741 “Inverters, Converters, and Controllers for use in Independent Power Systems” NEC – “National Electrical Code”, National Fire Protection Association (NFPA), NFPA-70-2002 NESC – “National Electrical Safety Code”. ANSI C2-2000, Published by the Institute of Electrical and Electronics Engineers, Inc. (Continued on Sheet No. 10-141) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 141

3. Types of Interconnections A) The manner in which the Generation System is connected to and disconnected from Xcel Energy can vary. Most transfer systems normally operate using one of the following five methods of transferring the load from Xcel Energy to the Generation System. B) If a transfer system is installed which has a user accessible selection of several transfer modes, the transfer mode that has the greatest protection requirements will establish the protection requirements for that transfer system. i) Open Transition (Break-Before-Make) Transfer Switch – With this transfer switch, the load to be supplied from the Distributed Generation is first disconnected from Xcel Energy and then connected to the Generation. This transfer can be relatively quick, but voltage and frequency excursions are to be expected during transfer. Computer equipment and other sensitive equipment will shut down and reset. The transfer switch typically consists of a standard UL approved transfer switch with mechanical interlocks between the two source contactors that drop the Xcel Energy source before the Distributed Generation is connected to supply the load. (1) To qualify as an Open Transition switch and the limited protective requirements, mechanical interlocks are required between the two source contacts. This is required to ensure that one of the contacts is always open and the Generation System is never operated in parallel with Xcel Energy. If the mechanical interlock is not present, the protection requirements are as if the switch is a closed transition switch. (2) As a practical point of application, this type of transfer switch is typically used for loads less then 500kW. This is due to possible voltage flicker problems created on the electric power system, when the load is removed from or returned to the Xcel Energy source. Depending upon Xcel Energy’s stiffness this level may be larger or smaller then the 500kW level. (3) Figure 1 at the end of this document provides a typical one-line of this type of installation. ii) Quick Open Transition (Break-Before-Make) Transfer Switch – The load to be supplied from the Distributed Generation is first disconnected from Xcel Energy and then connected to the Distributed Generation, similar to the open transition. However, this transition is typically much faster (under 500 ms) than the conventional open transition transfer operation. Voltage and frequency excursions will still occur, but some computer equipment and other sensitive equipment will typically not be affected with a properly designed system. The transfer switch consists of a standard UL approved transfer switch, with mechanical interlocks between the two source contacts that drop the Xcel Energy source before the Distributed Generation is connected to supply the load. (1) Mechanical interlocks are required between the two source contacts to ensure that one of the contacts is always open. If the mechanical interlock is not present, the protection requirements are as if the switch is a closed transition switch.

(Continued on Sheet No. 10-142) Date Filed: Docket No. 11-02-05 Effective Date: By: Cynthia L. Lesher President and CEO of Northern States Power Company Order Date: E002/GR-05-1428 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 142

3. Types of Interconnections (Continued) (2) As a practical point of application this type of transfer switch is typically used for loads less then 500kW. This is due to possible voltage flicker problems created on the electric power system, when the load is removed from or returned to the Xcel Energy source. Depending upon Xcel Energy’s stiffness this level may be larger or smaller than the 500kW level. (3) Figure 2 at the end of this document provides a typical one-line of this type of installation and shows the required protective elements. iii) Closed Transition (Make-Before-Break) Transfer Switch – The Distributed Generation is synchronized with Xcel Energy prior to the transfer occurring. The transfer switch then parallels with Xcel Energy for a short time (100 msec. or less) and then the Generation System and load is disconnect from Xcel Energy. This transfer is less disruptive than the Quick Open Transition because it allows the Distributed Generation a brief time to pick up the load before the support of Xcel Energy is lost. With this type of transfer, the load is always being supplied by Xcel Energy or the Distributed Generation. (1) As a practical point of application this type of transfer switch is typically used for loads less then 500kW. This is due to possible voltage flicker problems created on the electric power system, when the load is removed from or returned to the Xcel Energy source. Depending upon Xcel Energy’s stiffness this level may be larger or smaller then the 500kW level. (2) Figure 2 at the end of this document provides a typical one-line of this type of installation and shows the required protective elements. The closed transition switch must include a separate parallel time limit relay, which is not part of the generation control PLC and trips the generation from the system for a failure of the transfer switch and/or the transfer switch controls. iv) Soft Loading Transfer Switch (1) With Limited Parallel Operation – The Distributed Generation is paralleled with Xcel Energy for a limited amount of time (generally less then 1-2 minutes) to gradually transfer the load from Xcel Energy to the Generation System. This minimizes the voltage and frequency problems, by softly loading and unloading the Generation System. (a) The maximum parallel operation shall be controlled, via a parallel timing limit relay (62PL). This parallel time limit relay shall be a separate relay and not part of the generation control PLC. (b) Protective Relaying is required as described in section 6. (c) Figure 3 at the end of this document provide typical one-line diagrams of this type of installation and show the required protective elements.

(Continued on Sheet No. 10-143) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company , a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 143

3. Types of Interconnections (Continued) (2) With Extended Parallel Operation – The Generation System is paralleled with Xcel Energy in continuous operation. Special design, coordination and agreements are required before any extended parallel operation will be permitted. The Xcel Energy interconnection study will identify the issues involved. (a) Any anticipated use in the extended parallel mode requires special agreements and special protection coordination. (b) Protective Relaying is required as described in section 6. (c) Figure 4 at the end of this document provides a typical one-line for this type of interconnection. It must be emphasized that this is a typical installations only and final installations may vary from the examples shown due to transformer connections, breaker configuration, etc. v) Inverter Connection This is a continuous parallel connection with the system. Small Generation Systems may utilize inverters to interface to Xcel Energy. Solar, wind and fuel cells are some examples of Generation which typically use inverters to connect to Xcel Energy. The design of such inverters shall either contain all necessary protection to prevent unintentional islanding, or the Interconnection Customer shall install conventional protection to affect the same protection. All required protective elements for a soft-loading transfer switch apply to an inverter connection. Figure 5 at the end of this document, shows a typical inverter interconnection. (1) Inverter Certification – Prior to installation, the inverter shall be Type-Certified for interconnection to the electrical power system. The certification will confirm its anti-islanding protection and power quality related levels at the Point of Common Coupling. Also, utility compatibility, electric shock hazard and fire safety are approved through UL listing of the model. Once this Type Certification is completed for that specific model, additional design review of the inverter should not be necessary by Xcel Energy. (2) For three-phase operation, the inverter control must also be able to detect and separate for the loss of one phase. Larger inverters will still require custom protection settings, which must be calculated and designed to be compatible with the specific electric power system being interconnected with. (3) A visible disconnect is required for safely isolating the Distributed Generation when connecting with an inverter. The inverter shall not be used as a safety isolation device. (4) When banks of inverter systems are installed at one location, a design review by Xcel Energy must be performed to determine any additional protection systems, metering or other needs. The issues will be identified by Xcel Energy during the interconnection study process. (Continued on Sheet No. 10-144) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 144

4. Interconnection Issues and Technical Requirements A) General Requirements - The following requirements apply to all interconnected generating equipment. Xcel Energy shall be the source side and the customer’s system shall be the load side in the following interconnection requirements. i) Visible Disconnect - A disconnecting device shall be installed to electrically isolate Xcel Energy from the Generation System. The only exception for the installation of a visible disconnect is if the generation is interconnected via a mechanically interlocked open transfer switch and installed per the NEC (702.6) “so as to prevent the inadvertent interconnection of normal and alternate sources of supply in any operation of the transfer equipment.” The visible disconnect shall provide a visible air gap between Interconnection Customer’s Generation and Xcel Energy in order to establish the safety isolation required for work on the electric power system. This disconnecting device shall be readily accessible 24 hours per day by Xcel Energy field personnel and shall be capable of padlocking by Xcel Energy field personnel. The disconnecting device shall be lockable in the open position. The visible disconnect shall be a UL approved or National Electrical Manufacture’s Association approved, manual safety disconnect switch of adequate ampere capacity. The visible disconnect shall not open the neutral when the switch is open. A draw-out type circuit breaker can be used as a visual open. The visible disconnect shall be labeled, as required by Xcel Energy to inform Xcel Energy field personnel. ii) Energization of Equipment by Generation System – The Generation System shall not energize a deenergized electric power system. The Interconnection Customer shall install the necessary padlocking (lockable) devices on equipment to prevent the energization of a de-energized electrical power system. Lock out relays shall automatically block the closing of breakers or transfer switches on to a deenergized electric power system. iii) Power Factor - The power factor of the Generation System and connected load shall be as follows; (1) Inverter Based interconnections – shall operate at a power factor of no less then 90% at the inverter terminals. (2) Limited Parallel Generation Systems, such as closed transfer or soft-loading transfer systems shall operate at a power factor of no less then 90%, during the period when the Generation System is parallel with Xcel Energy, as measured at the Point of Common Coupling. (Continued on Sheet No. 10-145) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 145

4. Interconnection Issues and Technical Requirements (Continued) (3) Extended Parallel Generation Systems shall be designed to be capable of operating between 90% lagging and 95% leading. These Generation Systems shall normally operate near unity power factor (+/-98%) or as mutually agreed between Xcel Energy and the Interconnection Customer. iv) Grounding Issues (1) Grounding of sufficient size to handle the maximum available ground fault current shall be designed and installed to limit step and touch potentials to safe levels as set forth in “IEEE Guide for Safety in AC Substation Grounding”, ANSI/IEEE Standard 80. (2) It is the responsibility of the Interconnection Customer to provide the required grounding for the Generation System. A good standard for this is the IEEE Std. 142-1991 “Grounding of Industrial and Commercial Power Systems” (3) All electrical equipment shall be grounded in accordance with local, state and federal electrical and safety codes and applicable standards v) Sales to Xcel Energy or other parties – Transportation of energy on the Transmission system is regulated by the area reliability council and FERC. Those contractual requirements are not included in this standard. Xcel Energy will provide these additional contractual requirements during the interconnection approval process. B) For Inverter based, closed transfer and soft loading interconnections, the following additional requirements apply: i) Fault and Line Clearing - The Generation System shall be removed from Xcel Energy for any faults, or outages occurring on the electrical circuit serving the Generation System

ii) Operating Limits in order to minimize objectionable and adverse operating conditions on the electric service provided to other customers connected to Xcel Energy, the Generation System shall meet the Voltage, Frequency, Harmonic and Flicker operating criteria as defined in the IEEE1547 standard during periods when the Generation System is operated in parallel with Xcel Energy. If the Generation System creates voltage changes greater than 4% on the electric power system, it is the responsibility of the Interconnection Customer to correct these voltage sag/swell problems caused by the operation of the Generation System. If the operation of the interconnected Generation System causes flicker, which causes problems for others customer’s interconnected to Xcel Energy, the Interconnection Customer is responsible for correcting the problem. (Continued on Sheet No. 10-146) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 146

4. Interconnection Issues and Technical Requirements (Continued) iii) Flicker - The operation of Generation System is not allowed to produce excessive flicker to adjacent customers. See the IEEE 1547 standard for a more complete discussion on this requirement. The stiffer the electric power system, the larger a block load change that it will be able to handle. For any of the transfer systems, the Xcel Energy voltage shall not drop or rise greater than 4% when the load is added or removed from Xcel Energy. It is important to note, that if another interconnected customer complains about the voltage change caused by the Generation System, even if the voltage change is below the 4% level, it is the Interconnection Customer’s responsibility to correct or pay for correcting the problem. Utility experience has shown that customers have seldom objected to instantaneous voltage changes of less then 2% on the electric power system, so most Area EPS Operators use a 2% design criteria. iv) Interference - The Interconnection Customer shall disconnect the Distributed Generation from Xcel Energy if the Distributed Generation causes radio, television or electrical service interference to other customers, via the EPS or interference with the operation of Xcel Energy. The Interconnection Customer shall either effect repairs to the Generation System or reimburse Xcel Energy for the cost of any required Xcel Energy modifications due to the interference. v) Synchronization of Customer Generation (1) An automatic synchronizer with synch-check relaying is required for unattended automatic quick open transition, closed transition or soft loading transfer systems. (2) To prevent unnecessary voltage fluctuations on the electric power system, it is required that the synchronizing equipment be capable of closing the Distributed Generation into the electric power system within the limits defined in IEEE 1547. Actual settings shall be determined by the Registered Professional Engineer establishing the protective settings for the installation. (3) Unintended Islanding – Under certain conditions with extended parallel operation, it would be possible for a part of the Xcel Energy system to be disconnected from the rest of the Xcel Energy system and have the Generation System continue to operate and provide power to a portion of the isolated circuit. This condition is called “islanding”. It is not possible to successfully reconnect the energized isolated circuit to the rest of the Xcel Energy system since there are no synchronizing controls associated with all of the possible locations of disconnection. Therefore, it is a requirement that the Generation System be automatically disconnected from the Xcel Energy system immediately by protective relays for any condition that would cause the Xcel Energy system to be de-energized. The Generation System must either isolate with the customer’s load or trip. The Generation System must also be blocked from closing back into the Xcel Energy system until the Xcel Energy system is reenergized and the Xcel Energy system voltage is within Range B of ANSI C84.1 Table 1 for a minimum of 1 minute. Depending upon the size of the Generation System it may be necessary to install direct transfer trip equipment from the Xcel Energy system source(s) to remotely trip the generation interconnection to prevent islanding for certain conditions.

(Continued on Sheet No. 10-147) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 147

4. Interconnection Issues and Technical Requirements (Continued) vi) Disconnection –Xcel Energy may refuse to connect or may disconnect a Generation System from Xcel Energy system under the following conditions: (1) Lack of approved Standard Application Form and Standard Interconnection Agreement. (2) Termination of interconnection by mutual agreement. (3) Non-Compliance with the technical or contractual requirements. (4) System Emergency or for imminent danger to the public or Xcel Energy personnel (Safety). (5) Routine maintenance, repairs and modifications to the Xcel Energy system. Xcel Energy shall coordinate planned outages with the Interconnection Customer to the extent possible. 5. Generation Metering, Monitoring and Control Metering, Monitoring and Control – Depending upon the method of interconnection and the size of the Generation System, there are different metering, monitoring and control requirements Table 5A is a table summarizing the metering, monitoring and control requirements. Due to the variation in Generation Systems and the Xcel Energy system operational needs, the requirements for metering, monitoring and control listed in this document are the expected maximum requirements that Xcel Energy will apply to the Generation System. It is important to note that for some Generation System installations Xcel Energy may wave some of the requirements of this section if they are not needed. An example of this is with rural or low capacity feeders that require more monitoring then larger capacity, typically urban feeders. Another factor which will effect the metering, monitoring and control requirements will be the tariff under which the Interconnection Customer is supplied by Xcel Energy. Table 5A has been written to cover most application, but some Xcel Energy tariffs may have greater or less metering, monitoring and control requirements then, as shown in Table 5A.

(Continued on Sheet No. 10-148) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 148

5. Generation Metering, Monitoring and Control (Continued) TABLE 5A: Metering, Monitoring and Control Requirements Generation System Metering Capacity at Point of Common Coupling < 40 kW with all sales to Xcel Energy < 40 kW with Sales to a party other than Xcel Energy 40 – 250kW with limited parallel Bi-Directional metering at the point of common coupling Recording metering on the Generation System and a separate recording meter on the load Detented Xcel Energy Metering at the Point of Common Coupling Recording metering on the Generation System and a separate recording meter on the load Detented Xcel Energy Metering at the Point of Common Coupling Recording metering on the Generation System and a separate recording meter on the load. Detented Xcel Energy Metering at the Point of Common Coupling Recording metering on the Generation System and a separate recording meter on the load.

Generation Remote Monitoring None Required Interconnection Customer supplied direct dial phone line. None Required Interconnection Customer supplied direct dial phone line. Xcel Energy to supply it’s own monitoring equipment Interconnection Customer supplied direct dial phone line and monitoring points available. See B (i) Required Xcel Energy remote monitoring system See B (i) Required Xcel Energy SCADA monitoring system. See B (i)

Generation Remote Control None Required None Required None Required

40 – 250kW with extended parallel

None Required

250 – 1000 kW with limited parallel 250 – 1000 kW With extended parallel operation >1000 kW With limited parallel Operation

None Required

None Required

None required Direct Control via SCADA by Xcel Energy of interface breaker.

>1000 kW With extended parallel operation

Required Xcel Energy SCADA monitoring system See B (i)

“Detented” = A meter which is detented will record power flow in only one direction.

(Continued on Sheet No. 10-149) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. 1st Revised Sheet No. 10 149

5.

Generation Metering, Monitoring and Control (Continued) A) Metering i) As shown in Table 5A the requirements for metering will depend up on the type of generation and the type of interconnection. For most installations, the requirement is a single point of metering at the Point of Common Coupling. Xcel Energy will install a special meter that is capable of measuring and recording energy flow in both directions, for three phase installations or two detented meters wired in series, for single phase installations. A dedicated - direct dial phone line may be required to be supplied to the meter for Xcel Energy’s use to read the metering. Some monitoring may be done through the meter and the dedicated – direct dial phone line, so in many installations the remote monitoring and the meter reading can be done using the same dial-up phone line.

ii) Depending upon which tariff the Generation System and/or customer’s load is being supplied under, additional metering requirements may result. Contact Xcel Energy for tariff requirements. In some cases, the direct dial-phone line requirement may be waived by Xcel Energy for smaller Generation Systems. iii) All Xcel Energy’s revenue meters shall be supplied, owned and maintained by Xcel Energy. All voltage transformers (VT) and current transformers (CT), used for revenue metering shall be approved and/or supplied by Xcel Energy. Xcel Energy’s standard practices for instrument transformer location and wiring shall be followed for the revenue metering. iv) For Generation Systems that sell power and are greater then 40kW in size, separate metering of the generation and of the load is required. A single meter recording the power flow at the Point of Common Coupling for both the Generation and the load, is not allowed by the rules under which the area transmission system is operated. Xcel Energy is required to report to the regional reliability council (the Midwest Reliability Organization (MRO) and MAPP or any successor organization) the total peak load requirements and is also required to own or have contracted for, accredited generation capacity of 115% of the experienced peak load level for each month of the year. Failure to meet this requirement results in a large monetary penalty for Xcel Energy. v) For Generation Systems which are less then 40kW in rated capacity and are qualified facilities under PURPA (Public Utilities Regulatory Power Act – Federal Gov. 1978), net metering is allowed and provides the generation system the ability to back feed Xcel Energy at some times and bank that energy for use at other times. Some of the qualified facilities under PURPA are solar, wind, hydro, and biomass. For these net-metered installations, Xcel Energy may use a single meter to record the bi-directional flow or Xcel Energy may elect to use two detented meters, each one to record the flow of energy in one direction.

T T

Continued on Sheet No. 10-150) Date Filed: Docket No. 05-19-08 By: David M. Sparby Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/M-08-568 Order Date: 10-10-08 10-10-08

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 150

5.

Generation Metering, Monitoring and Control (Continued) B) Monitoring (SCADA) is required as shown in table 5A. The need for monitoring is based on the need of the system control center to have the information necessary for the reliable operation of Xcel Energy. This remote monitoring is especially important during periods of abnormal and emergency operation. The difference in Table 5A between remote monitoring and SCADA is that SCADA typically is a system that is in continuous communication with a central computer and provides updated values and status, to Xcel Energy, within several seconds of the changes in the field. Remote monitoring on the other hand will tend to provide updated values and status within minutes of the change in state of the field. Remote monitoring is typically less expensive to install and operate. i) Where Remote Monitoring or SCADA is required, as shown in Table 5A, the following monitored and control points are required: (1) Real and reactive power flow for each Generation System (kW and kVAR). Only required if separate metering of the Generation and the load is required, otherwise #4 monitored at the point of Common Coupling will meet the requirements. (2) Phase voltage representative of Xcel Energy’s service to the facility. (3) Status (open/close) of Distributed Generation and interconnection breaker(s) or if transfer switch is used, status of transfer switch(s). (4) Customer load from Xcel Energy service (kW and kVAR). (5) Control of interconnection breaker - if required by Xcel Energy. When telemetry is required, the Interconnection Customer must provide the communications medium to Xcel Energy’s Control Center. This could be radio, dedicated phone circuit or other form of communication. If a telephone circuit is used, the Interconnection Customer must also provide the telephone circuit protection. The Interconnection Customer shall coordinate the RTU (remote terminal unit) addition with Xcel Energy. Xcel Energy may require a specific RTU and/or protocol to match their SCADA or remote monitoring system.

(Continued on Sheet No. 10-151) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 151

6.

Protective Devices and Systems A) Protective devices required to permit safe and proper operation of the electric power system while interconnected with customer’s Generation System are shown in the figures at the end of this document. In general, an increased degree of protection is required for increased Distributed Generation size. This is due to the greater magnitude of short circuit currents and the potential impact to system stability from these installations. Medium and large installations require more sensitive and faster protection to minimize damage and ensure safety. If a transfer system is installed which has a user accessible selection of several transfer modes, the transfer mode that has the greatest protection requirements will establish the protection requirements for that transfer system. The Interconnection Customer shall provide protective devices and systems to detect the Voltage, Frequency, Harmonic and Flicker levels as defined in the IEEE 1547 standard during periods when the Generation System is operated in parallel with Xcel Energy. The Interconnection Customer shall be responsible for the purchase, installation, and maintenance of these devices. Discussion on the requirements for these protective devices and systems follows: i) Relay settings (1) If the Generation System is utilizing a Type-Certified system, such as a UL listed inverter a Professional Electrical Engineer is not required to review and approve the design of the interconnecting system. If the Generation System interconnecting device is not Type-Certified or if the Type-Certified Generation System interconnecting device has additional design modifications made, the Generation System control, the protective system, and the interconnecting device(s) shall be reviewed and approved by a Professional Electrical Engineer, registered in the State of Minnesota. (2) A copy of the proposed protective relay settings shall be supplied to Xcel Energy for review and approval, to ensure proper coordination between the generation system and Xcel Energy system. ii) Relays (1) All equipment providing relaying functions shall meet or exceed ANSI/IEEE Standards for protective relays, i.e., C37.90, C37.90.1 and C37.90.2. (2) Required relays that are not “draw-out” cased relays shall have test plugs or test switches installed to permit field testing and maintenance of the relay without unwiring or disassembling the equipment. Inverter based protection is excluded from this requirement for Generation Systems <40kW at the Point of Common Coupling. (Continued on Sheet No. 10-152)

Date Filed: Docket No.

11-02-05

Effective Date: By: Cynthia L. Lesher President and CEO of Northern States Power Company Order Date: E002/GR-05-1428

02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 152

6.

Protective Devices and Systems (Continued) (3) Three phase interconnections shall utilize three phase power relays, which monitor all three phases of voltage and current, unless so noted in the appendix one-lines. (4) All relays shall be equipped with setting limit ranges at least as wide as specified in IEEE 1547, and meet other requirements as specified in the Xcel Energy interconnect study. Setting limit ranges are not to be confused with the actual relay settings required for the proper operation of the installation. At a minimum, all protective systems shall meet the requirements established in IEEE 1547. (a) Over-current relays (IEEE Device 50/51 or 50/51V) shall operate to trip the protecting breaker at a level to ensure protection of the equipment and at a speed to allow proper coordination with other protective devices. For example, the over-current relay monitoring the interconnection breaker shall operate fast enough for a fault on the customer’s equipment, so that no protective devices will operate on the electric power system. 51V is a voltage restrained or controlled over-current relay and may be required to provide proper coordination with the Xcel Energy system. (b) Over-voltage relays (IEEE Device 59) shall operate to trip the Distributed Generation per the requirements of IEEE 1547. (c) Under-voltage relays (IEEE Device 27) shall operate to trip the Distributed Generation per the requirements of IEEE 1547. (d) Over-frequency relays (IEEE Device 81O) shall operate to trip the Distributed Generation off-line per the requirements of IEEE 1547. (e) Under-frequency relay (IEEE Device 81U) shall operate to trip the Distributed Generation off-line per the requirements of IEEE 1547. For Generation Systems with an aggregate capacity greater then 30kW, the Distribution Generation shall trip off-line when the frequency drops below 57.0-59.8 Hz. typically this is set at 59.5 Hz, with a trip time of 0.16 seconds, but coordination with Xcel Energy is required for this setting. Xcel Energy will provide the reference frequency of 60 Hz. The Distributed Generation control system must be used to match this reference. The protective relaying in the interconnection system will be expected to maintain the frequency of the output of the Generation. (f) Reverse power relays (IEEE Device 32) (power flowing from the Generation System to Xcel Energy) shall operate to trip the Distributed Generation off-line for a power flow to the system with a maximum time delay of 2.0 seconds.

(Continued on Sheet No. 10-153) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 153

6.

Protective Devices and Systems (Continued) (g) Lockout Relay (IEEE Device 86) is a mechanically locking device which is wired into the close circuit of a breaker or switch and when tripped will prevent any close signal from closing that device. This relay requires that a person manually resets the lockout relay before that device can be reclosed. These relays are used to ensure that a denergized system is not reenergized by automatic control action, and prevents a failed control from auto-reclosing an open breaker or switch. (h) Transfer Trip – All Generation Systems are required to disconnect from Xcel Energy when the Xcel Energy system is disconnected from its source, to avoid unintentional islanding. With larger Generation Systems, which remain in parallel with Xcel Energy, a transfer trip system may be required to sense the loss of the Xcel Energy source. When the Xcel Energy source is lost, a signal is sent to the Generation System to separate the Generation from the Xcel Energy system. The size of the Generation System vs. the capacity and minimum loading on the feeder will dictate the need for transfer trip installation. The Xcel Energy interconnection study will identify the specific requirements. If multiple Xcel Energy sources are available or multiple points of sectionalizing on the electric power system, then more then one transfer trip system may be required. The Xcel Energy interconnection study will identify the specific requirements. For some installations the alternate Xcel Energy source(s) may not be utilized except in rare occasions. If this is the situation, the Interconnection Customer may elect to have the Generation System locked out when the alternate source(s) are utilized, if agreeable to Xcel Energy. (i) Parallel limit timing relay (IEEE Device 62PL) set at a maximum of 120 seconds for soft transfer installations and set no longer then 100ms for quick transfer installations, shall trip the Distributed Generation circuit breaker on limited parallel interconnection systems. Power for the 62 PL relay must be independent of the transfer switch control power. The 62PL timing must be an independent device from the transfer control and shall not be part of the generation PLC or other control system.

(Continued on Sheet No. 10-154) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 154

6.

Protective Devices and Systems (Continued)

TABLE 6A SUMMARY OF RELAYING REQUIREMENTS Type of Interconnection Open Transition Mechanically Interlocked (Fig. 1) Quick Open Transition Mechanically Interlocked (Fig. 2) Closed Transition (Fig. 2) Soft Loading Limited Parallel Operation (Fig. 3) Soft Loading Extended Parallel < 250 kW (Fig. 4) Soft Loading Extended Parallel >250kW (Fig.4) Inverter Connection (Fig. 5) < 40 kW 40 kW – 250kW > 250 kW Yes Yes Yes Yes Yes Yes Yes Yes Yes __ __ __ Yes Yes Yes __ __ __ __ __ __ __ __ Yes Overcurrent (50/51) Voltage (27/59) Frequency (81 0/U) Reverse Power (32) Lockout (86) Parallel Limit Timer SyncCheck (25) Transfer Trip

__

__

__

__

__

__

__

__

__

__

__

__

Yes

Yes

Yes

__

__

__

__

__

Yes

Yes

Yes

__

Yes

Yes

Yes

Yes

Yes

Yes

Yes

__

Yes

Yes

Yes

__

Yes

__

Yes

__

Yes

Yes

Yes

__

Yes

__

Yes

Yes

(Continued on Sheet No. 10-155) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 155

7. Agreements A) Interconnection Agreement – This agreement is required for all Generation Systems that parallel with Xcel Energy. Each of Xcel Energy’s tariffs contain standard interconnection agreements. There are different interconnection agreements depending upon the size and type of Generation System. This agreement contains the terms and conditions upon which the Generation System is to be connected, constructed and maintained, when operated in parallel with Xcel Energy. Some of the issues covered in the interconnection agreement are as follows: i. ii. Construction Process Testing Requirements

iii. Maintenance Requirements iv. Firm Operating Requirements such as Power Factor v. Access requirements for Xcel Energy personnel

vi. Disconnection of the Generation System (Emergency and Non-emergency) vii. Term of Agreement viii. Insurance Requirements ix. Dispute Resolution Procedures B) Operating Agreement – For Generation Systems that normally operate in parallel with Xcel Energy, an agreement separate from the interconnection agreement, called the “operating agreement”, is usually created. This agreement is created for the benefit of both the Interconnection Customer and Xcel Energy and will be agreed to between the Parties. This agreement will be dynamic and is intended to be updated and reviewed annually. For some smaller systems, the operating agreement can simply be a letter agreement for larger and more intergraded Generation Systems the operating agreement will tend to be more involved and more formal. The operating agreement covers items that are necessary for the reliable operation of the Local EPS and the Xcel Energy system. The items typically included in the operating agreement are as follows: i. Emergency and normal contact information for both the Xcel Energy operations center and for the Interconnection Customer ii. Procedures for periodic Generation System test runs

iii. Procedures for maintenance on the electric power system that affects the Generation System. iv. Emergency Generation Operation Procedures

(Continued on Sheet No. 10-156) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 156

8. Testing Requirements A) Pre-Certification of equipment The most important part of the process to interconnect generation with Local EPS and the Xcel Energy system is safety. One of the key components of ensuring the safety of the public and employees is to ensure that the design and implementation of the elements connected to the electrical power system operate as required. To meet this goal, all of the electrical wiring in a business or residence, is required by the State of Minnesota to be listed by a recognized testing and certification laboratory, for its intended purpose. Typically we see this as “UL” listed. Since Generation Systems have tended to be uniquely designed for each installation they have been designed and approved by Professional Engineers. As the number of Generation Systems installed increase, vendors are working towards creating equipment packages that can be tested in the factory and then will only require limited field testing. This will allow us to move towards “plug and play” installations. For this reason, this standard recognizes the efficiency of “pre-certification” of Generation System equipment packages that will help streamline the design and installation process. An equipment package shall be considered certified for interconnected operation if it has been submitted by a manufacture, tested and listed by a nationally recognized testing and certification laboratory (NRTL) for continuous utility interactive operation in compliance with the applicable codes and standards. Presently generation paralleling equipment that is listed by a nationally recognized testing laboratory as having met the applicable type-testing requirements of UL 1741 and IEEE 929, shall be acceptable for interconnection without additional protection system requirements. An “equipment package” shall include all interface components including switchgear, inverters, or other interface devices and may include an integrated generator or electric source. If the equipment package has been tested and listed as an integrated package which includes a generator or other electric source, it shall not required further design review, testing or additional equipment to meet the certification requirements for interconnection. If the equipment package includes only the interface components (switchgear, inverters, or other interface devices), then the Interconnection Customer shall show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and consistent with the testing and listing specified for the package. Provided the generator or electric source combined with the equipment package is consistent with the testing ad listing performed by the nationally recognized testing and certification laboratory, no further design review, testing or additional equipment shall be required to meet the certification requirements of this interconnection procedure. A certified equipment package does not include equipment provided by Xcel Energy. The use of Pre-Certified equipment does not automatically qualify the Interconnection Customer to be interconnected to the Xcel Energy system. An application will still need to be submitted and an interconnection review may still need to be performed, to determine the compatibility of the Generation System with the Xcel Energy system.

(Continued on Sheet No. 10-157) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 157

8. Testing Requirements (Continued) B) Pre-Commissioning Tests i) Non-Certified Equipment (1) Protective Relaying and Equipment Related to Islanding (a) Distributed generation that is not Type-Certified (type tested), shall be equipped with protective hardware and/or software designed to prevent the Generation from being connected to a deenergized Xcel Energy system. (b) The Generation may not close into a de-energized Xcel Energy system and protection provided to prevent this from occurring. It is the Interconnection Customer’s responsibility to provide a final design and to install the protective measures required by Xcel Energy. Xcel Energy will review and approve the design, the types of relays specified, and the installation. Mutually agreed upon exceptions may at times be necessary and desirable. It is strongly recommended that the Interconnection Customer obtain Xcel Energy written approval prior to ordering protective equipment for parallel operation. The Interconnection Customer will own these protective measures installed at their facility. (c) The Interconnection Customer shall obtain prior approval from Xcel Energy for any revisions to the specified relay calibrations. C) Commissioning Testing The following tests shall be completed by the Interconnection Customer. All of the required tests in each section shall be completed prior to moving on to the next section of tests. Xcel Energy has the right to witness all field testing and to review all records prior to allowing the system to be made ready for normal operation. Xcel Energy shall be notified, with sufficient lead time to allow the opportunity for Xcel Energy personnel to witness any or all of the testing. i) Pre-testing - The following tests are required to be completed on the Generation System prior to energization by the Generator or Xcel Energy. Some of these tests may be completed in the factory if no additional wiring or connections were made to that component. These tests are marked with a “*”. (1) Grounding shall be verified to ensure that it complies with this standard, the NESC and the NEC. (2) * CT’s (Current Transformers) and VT’s (Voltage Transformers) used for monitoring and protection shall be tested to ensure correct polarity, ratio and wiring. (Continued on Sheet No. 10-158) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 158

8.

Testing Requirements (Continued) (3) CT’s shall be visually inspected to ensure that all grounding and shorting connections have been removed where required. (4) Breaker / Switch tests – Verify that the breaker or switch cannot be operated with interlocks in place or that the breaker or switch cannot be automatically operated when in manual mode. Various Generation Systems have different interlocks, local or manual modes etc. The intent of this section is to ensure that the breaker or switches controls are operating properly. (5) * Relay Tests – All Protective relays shall be calibrated and tested to ensure the correct operation of the protective element. Documentation of all relay calibration tests and settings shall be furnished to Xcel Energy. (6) Trip Checks - Protective relaying shall functionally tested to ensure the correct operation of the complete system. Functional testing requires that the complete system is operated by the injection of current and/or voltage to trigger the relay element and proving that the relay element trips the required breaker, lockout relay or provides the correct signal to the next control element. Trip circuits shall be proven through the entire scheme (including breaker trip) For factory-assembled systems, such as inverters the setting of the protective elements may occur at the factory. This section requires that the complete system including the wiring and the device being tripped or activated is proven to be in working condition through the injection of current and/or voltage. (7) Remote Control, SCADA and Remote Monitoring tests – All remote control functions and remote monitoring points shall be verified operational. In some cases, it may not be possible to verify all of the analog values prior to energization. Where appropriate, those points may be verified during the energization process (8) Phase Tests – the Interconnection Customer shall work with Xcel Energy to complete the phase test to ensure proper phase rotation of the Generation and wiring. (9) Synchronizing test – The following tests shall be done across an open switch or racked out breaker. The switch or breaker shall be in a position that it is incapable of closing between the Generation System and the Xcel Energy system for this test. This test shall demonstrate that at the moment of the paralleling-device closure, the frequency, voltage and phase angle are within the required ranges, stated in IEEE 1547. This test shall also demonstrate that is any of the parameters are outside of the ranges stated; the paralleling-device shall not close. For inverter-based interconnected systems this test may not be required unless the inverter creates fundamental voltages before the paralleling device is closed.

(Continued on Sheet No. 10-159) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 159

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8.

Testing Requirements (Continued) ii) On-Line Commissioning Test – the following tests will proceed once the Generation System has completed Pre-testing and the results have been reviewed and approved by Xcel Energy. For smaller Generation Systems, Xcel Energy may have a set of standard interconnection tests that will be required. On larger and more complex Generation Systems the Interconnection Customer and Xcel Energy will get together to develop the required testing procedure. All on-line commissioning test shall be based on written test procedures agreed to between Xcel Energy and the Interconnection Customer. Generation System functionally shall be verified for specific interconnections as follows: (1) Anti-Islanding Test – For Generation Systems that parallel with the utility for longer then 100msec. (a) The Generation System shall be started and connected in parallel with the Xcel Energy source (b) The Xcel Energy source shall be removed by opening a switch, breaker etc. (c) The Generation System shall either separate with the local load or stop generating (d) The device that was opened to remove the Xcel Energy source shall be closed and the Generation System shall not re-parallel with Xcel Energy for at least 5 minutes. iii) Final System Sign-off. (1) To ensure the safety of the public, all interconnected customer owned generation systems which do not utilize a Type-Certified system shall be certified as ready to operate by a Professional Electrical Engineer registered in the State of Minnesota, prior to the installation being considered ready for commercial use. iv) Periodic Testing and Record Keeping (1) Any time the interface hardware or software, including protective relaying and generation control systems are replaced and/or modified, Xcel Energy shall be notified. This notification shall, if possible, be with sufficient warning so that Xcel Energy personnel can be involved in the planning for the modification and/or witness the verification testing. Verification testing shall be completed on the replaced and/or modified equipment and systems. The involvement of Xcel Energy personnel will depend upon the complexity of the Generation System and the component being replaced and/or modified. Since the Interconnection Customer and Xcel Energy are now operating an interconnected system. It is important for each to communicate changes in operation, procedures and/or equipment to ensure the safety and reliability of the Local EPS and the Xcel Energy system.

(Continued on Sheet No. 10-159.1) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 159.1

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8.

Testing Requirements (Continued) (2) All interconnection-related protection systems shall be periodically tested and maintained, by the Interconnection Customer, at intervals specified by the manufacture or system integrator. These intervals shall not exceed 5 years. Periodic test reports and a log of inspections shall be maintained, by the Interconnection Customer and made available to Xcel Energy upon request. Xcel Energy shall be notified prior to the period testing of the protective systems, so that Xcel Energy personnel may witness the testing if so desired. (a) Verification of inverter connected system rated 15kVA and below may be completed as follows; The Interconnection Customer shall operate the load break disconnect switch and verify the Generator automatically shuts down and does not restart for at least 5 minutes after the switch is close (b) Any system that depends upon a battery for trip/protection power shall be checked and logged once per month for proper voltage. Once every four years the battery(s) must be either replaced or a discharge test performed. Longer intervals are possible through the use of “station class batteries” and Xcel Energy’s approval.

(Continued on Sheet No. 10-159.2) Date Filed: Docket No. 11-02-05 Effective Date: By: Cynthia L. Lesher President and CEO of Northern States Power Company Order Date: E002/GR-05-1428 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 159.2

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8.

Testing Requirements (Continued)

(Continued on Sheet No. 10-159.3) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 159.3

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8.

Testing Requirements (Continued)

(Continued on Sheet No. 10-159.4) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 159.4

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8.

Testing Requirements (Continued)

(Continued on Sheet No. 10-159.5) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 159.5

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8.

Testing Requirements (Continued)

(Continued on Sheet No. 10-159.6) Date Filed: Docket No. 11-02-05 By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 DISTRIBUTED GENERATION STANDARD INTERCONNECTION AND POWER PURCHASE TARIFF (Continued) Section No. Original Sheet No. 10 159.6

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8.

Testing Requirements (Continued)

Date Filed: Docket No.

11-02-05

By: Cynthia L. Lesher Effective Date: President and CEO of Northern States Power Company E002/GR-05-1428 Order Date:

02-01-07 09-01-06

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 COMMUNITY-BASED ENERGY DEVELOPMENT (C-BED) TARIFF (Continued) Section No. 1st Revised Sheet No. 10 160

AVAILABILITY Any qualifying community energy partnership, as defined by section 216B.1612 subdivision 8, or communitybased renewable power developer who owns a electric generating facility in Minnesota meeting the requirements of this tariff and deliver and sell the renewable energy output to NSP up to the quantity established in the most recent resource plan may apply to the Company for selection. “Renewable” refers to technologies as defined by section 216B.1691, subdivision 1, paragraph (a). The Company must receive Commission approval for all power purchase agreements under this tariff. Purchase power agreements for projects greater than 10 MW installed nameplate may require an exception from the commission Orders relating to competitive bidding for NSP. A project that is operating under a power purchase agreement under a C-BED tariff is not eligible for net energy billing under section 216B.164, subdivision 3, Net Energy Billing Service Rate Code A50, or for production incentives under section 216C.41. The following information provides guidelines for the negotiated purchase power agreements for service under this tariff. Nothing in this schedule shall be construed to obligate Company to enter into a power purchase agreement. In the alternative, at the discretion of a qualifying owner, the qualifying owner and Company may negotiate a power purchase agreement with terms different from this schedule. Company must receive Minnesota Public Utilities Commission approval of a power purchase agreement for a C-BED project. In addition, service may be provided under the terms described in Section 9 and Section 10 of the Minnesota Electric Rate Book. QUALIFYING OWNER A qualifying owner must be at least one of the following: (1) a Minnesota resident, (2) a limited liability corporation that is organized under Chapter 322B and that is made up of members who are Minnesota residents; (3) a Minnesota nonprofit organization organized under chapter 317A of Minnesota state laws; (4) a Minnesota cooperative association organized under chapter 308A or 308B of Minnesota state law, including a rural electric cooperative association or a generation and transmission cooperative on behalf of and at the request of a member distribution utility; (5) a Minnesota political subdivision or local government including, but not limited to, a municipal electric utility, or a municipal power agency on behalf of and at the request of a member distribution utility, a county, statutory or home rule charter city, town, school district, or public or private higher education institution or any other local or regional governmental organization such as a board, commission or association, or (6) a tribal council. JOINT VENTURE A qualifying owner, or any combination of qualifying owners, may develop a joint venture project with a nonqualifying renewable energy project developer. However, the terms of the C-BED tariff may only apply to the portion of the energy production of the total project output that is directly proportional to the equity share of the project owned by the qualifying owners. The qualifying owner shall not transfer the C-BED project to a nonqualifying owner during the first 20 years of the project.

N

T N N

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T

(Continued on Sheet No. 10-161) Date Filed: Docket No. 12-03-07 By: David M. Sparby Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/M-07-1527 Order Date: 09-05-08 09-05-08

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Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 COMMUNITY-BASED ENERGY DEVELOPMENT (C-BED) TARIFF (Continued) Section No. 1st Revised Sheet No. 10 161

QUALIFIED OWNER BENEFITS No single qualifying owner may own more than 15 percent of a C-BED wind energy project unless (1) the C-BED wind energy project consists of only one or two turbines; or (2) the qualifying owner is a public entity listed under Minnesota Statute 216B.1612, subd. 2(c), clause (5), that is not a municipal utility. Projects must demonstrate that at least 51% of the gross revenues from a power purchase agreement over the life of the project will flow to the qualified owners and other legal entities. Additionally, projects must demonstrate they have resolution of support adopted by the county board of each county in which the project is to be located, or in the case of a project located within the boundaries of a reservation, the tribal council for that reservation. CONTRACT C-BED developers must enter into a power purchase agreement under this program for a term of 20 years, subject to Commission approval. At the discretion of the developer, a community based projects developer and the Company may negotiate a power purchase agreement with the Company that differs from these rate provisions. RATE The Company shall pay the developer according to a rate schedule such that the evaluated net present value of the payments over the 20-year life of the agreement compares reasonably to the ranges of prices obtained in recent solicitations and executed power purchase agreements. The net present value of the energy rate means a rate equal to the net present value of the nominal payments to a project divided by the total expected energy production of the project over the life of its power purchase agreement. The rate shall normally be higher in the first ten years of the agreement than in the last ten years. The discount rate required to calculate the net present value shall be the Company’s normal discount rate used for its other business purposes. The payment of this rate includes payment for the property rights of all renewable attributes (or, in the event of the development of a Commission-approved renewable energy tracking system, the renewable energy credits) associated with the generation from the C-BED project. That is, receipt of this payment constitutes a transfer of the property rights of all renewable attributes (or renewable energy credits) associated with the generation from the C-BED project to Company, unless otherwise agreed to by the qualifying owners of the project and Company. SECURITY Qualifying and nonqualifying owners must provide sufficient security to secure performance under the power purchase agreement.

T N N N N

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(Continued on Sheet No. 10-162) Date Filed: Docket No. 12-03-07 By: David M. Sparby Effective Date: President and CEO of Northern States Power Company, a Minnesota corporation E002/M-07-1527 Order Date: 09-05-08 09-05-08

S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn_elec\Me_10_161_r01.doc

Northern States Power Company, a Minnesota corporation and wholly owned subsidiary of Xcel Energy Inc. Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK - MPUC NO. 2 COMMUNITY-BASED ENERGY DEVELOPMENT (C-BED) TARIFF (Continued) Section No. Original Sheet No. 10 162

PARTICIPATION To the extent possible, the developer of a C-BED project must provide, in writing, an opportunity to invest in the C-BED project to each property owner on whose property a high-voltage transmission line is constructed that will transmit the energy generated by the C-BED project to market, if the property is located and the owner resides in the county where the C-BED project is located. In addition, developers may include opportunities to invest for property owners on whose property a high voltage transmission line transmitting the energy generated by the CBED project to market currently exists and who resides in the county where the C-BED project is located or in an adjacent county. BID PRIORITY Periodically, the Company may elect to purchase renewable energy from C-BED projects. When evaluating which C-BED projects to purchase from, the Company will consider the net present value of rate after adding the expected cost of curtailments and, if anticipated, wheeling costs. When the Company needs to construct new generation or purchase the output from new generation, then in order to fulfill its obligations under Minnesota Statute 216B.1691, the Company will make a good faith effort to determine if one or more C-BED projects would meet the utility’s cost and reliability requirements, applying standard reliability criteria, to fulfill some or all of the identified need at minimal impact to current customers. Standard reliability criteria means the project: (1) can be safely integrated into and operated within the utility’s grid without causing any adverse or unsafe consequences; and (2) is consistent with the utility’s resource needs as identified in its most recent resource plans submitted under section 216B.2422. Aggregation of C-BED projects is encouraged. Nothing in this section shall be construed to obligate the Company to enter into a power purchase agreement under a C-Bed tariff. TERMS AND CONDITIONS OF SERVICE 1. A C-BED project must be capable of being integrated into the electric system and operate in a safe manner as determined by the transmission or delivery service provider. 2. The C-BED owner(s) must enter into an appropriate interconnection agreement with the transmission or delivery service provider meeting all applicable technical specifications and interconnection requirements. 3. A power purchase agreement between the Company and the project must be executed and approved by the Minnesota Public Utilities Commission pursuant to Minnesota Statute 216B.1612.

Date Filed: Docket No.

11-02-05

By: Cynthia L. Lesher Effective Date: 02-01-07 President and CEO of Northern States Power Company E002/GR-05-1428 Order Date: 09-01-06

S:\General-Offices-GO-01\PSF\RA\Rates\Current\Mn_elec\Me_10_162.doc

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