Interconnection Grade Methodology
| 2023 FTG Grades | Points |
|---|---|
|
A |
>45 – 63 |
|
B |
>30 – 45 |
|
C |
>15 – 30 |
|
D |
1 – 15 |
|
F |
|
To determine the interconnection grades, IREC assigned values for each of the 56 FTG evaluation criteria (listed and discussed in greater detail in the Criteria section). The values for each criterion range from 0.5 to 3 points, with weighting based on the relative importance of each provision in terms of how significantly they contribute to process efficiency, transparency, and cost benefits.
Using the criteria, the team scored the interconnection procedures in each state and calculated their numerical scores. When all states were scored, the team determined the point value ranges that would correspond with each letter grade (see table below). These point value ranges do not align with the typical grading percentages that correspond with letter grades (i.e., 90-100 percent for an A, etc.), but represent the team’s attempt to apply a grading curve that spreads out the scoring more evenly across the A-D letter grades.
Each letter grade represents a 15-point spread in terms of numerical score, except for the ‘A’ and ‘F’ grades. The point range for ‘A’ includes a few extra points to account for some of the emerging best practices being adopted or considered in states that have not yet had wider adoption. States with an ‘F’ do not have statewide interconnection rules, so any utility-specific rules that they have adopted have not been scored.
Scoring Limitations
The FTG grades are based on provisions explicitly included in a state’s interconnection procedures; they do not take into account variations in how the rules may be being implemented in practice in that state (such as if a utility has adopted voluntary practices beyond what is required in the rules, or if additional policies have been adopted outside of the states official interconnection procedures).
Similar to other state rules, interconnection procedures exist to provide a common framework that can be relied upon by all parties. When interconnection practices deviate from the written rules, the application of that framework can become inconsistent and may make it difficult for interconnection applicants to resolve disputes involving updated practices that have not been incorporated into the rules. The focus on written provisions in FTG grading is meant to highlight the importance of adopting clear rules that are consistently applied across the state and keep pace with emerging and established best practices. Though the grades may not in all instances capture how streamlined a state’s interconnection process is in practice, they do indicate whether the state’s rules include best practices that can enable shorter review timelines, greater transparency, and improved accountability.