Standardization of Generator Interconnection Agreements and Procedures

Order 2003 standardized the interconnection procedures and agreements for large generators (generally greater than 20 MW) seeking to connect to the interstate transmission grid. FERC established the Large Generator Interconnection Procedures (LGIP) and Large Generator Interconnection Agreement (LGIA) as pro forma documents that all transmission providers must use, replacing a fragmented system of utility-specific agreements. The order set clear timelines, study milestones, and rights for both interconnection customers and transmission owners. This standardization significantly reduced barriers for new generation resources to access the grid and provided greater certainty for project developers financing large generation investments.