In April 2008, Kentucky enacted legislation which required the Kentucky Public Service Commission (PSC) to develop interconnection and net metering guidelines for all retail electric suppliers operating in Kentucky (excluding TVA utilities). The Kentucky PSC adopted those guidelines on January 8, 2009 (Order 2008-00169).
The PSC's rules set forth a two-tiered approach to simplify the interconnection process:
Utilities, at their own discretion, may require an external disconnect switch or waive the requirement for systems approved at either application level. In addition, customers must maintain general liability insurance coverage (e.g., a standard homeowner’s or commercial policy) for their systems. The PSC has ruled that the customer retains any and all renewable-energy credits (RECs) associated with the generation of renewable energy.
Note: A utility may negotiate a contract for interconnection with a merchant or co-generation electric generating facility with a capacity of up to 10 megawatts. This customer would most likely incur some significant initial costs for equipment, possible grid/line upgrades, safety devices, and insurance, for example. By law, larger systems may establish interconnection, however only after receiving approval from the PSC/Siting Board (See KRS § 278.212. KY PSC Order 2008-00169 only covers interconnection as it applies to net-metered systems).
Applicable Utilities: Investor-owned utilities, electric cooperatives (except TVA distribution utilities)
System Capacity Limit: 30 kW
Standard Agreement: Yes
Insurance Requirements: "Additional" liability insurance not required for systems that meet certain technical standards
External Disconnect Switch: Utility's discretion
Net Metering Required: Yes