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Pacific Gas and Electric Company

San Francisco, California

Cancelling

Revised Revised

Cal. P.U.C. Sheet No. 17786-E Cal. P.U.C. Sheet No. 17365-E

RULE 21—GENERATING FACILITY INTERCONNECTIONS

A. APPLICABILITY

This Rule describes the interconnection, operating and metering requirements for Generating Facilities intended to be connected to PG&E’s Distribution System over which the Commission has jurisdiction. Subject to the requirements of this Rule, PG&E will allow the interconnection of Generating Facilities with its Distribution System. Definitions for the capitalized terms used in this Rule and not otherwise defined are defined in Section H of this Rule. The definitions in this Rule shall only apply to this Rule and shall not apply to PG&E’s other tariffs. It is contemplated that the Applicant will be required to execute various enabling documents, such as but not limited to the Generating Facility Interconnection Agreement (“Agreement”) (Form 79- 973) and Application to Interconnect A Customer-Owned Generating Facility (“Application”) (Form 79-974). Such documents shall be on file with the Commission, as may be amended from time to time.

B. GENERAL, RULES, RIGHTS AND OBLIGATIONS

1. Authorization Required to Interconnect. A Producer must comply with this Rule, and the terms of the Agreement, and receive PG&E’s express written permission to interconnect before connecting or operating a Generating Facility in parallel with PG&E’s Distribution System. PG&E shall apply this Rule in a non-discriminatory manner and shall not unreasonably withhold its permission to interconnect a Producer’s Generating Facility.

2. Separate Arrangements Required for Other Services. A Producer requiring other electric services from PG&E including, but not limited to, Distribution Service provided by PG&E during periods of curtailment or interruption of a Generating Facility, must enter into separate arrangements with PG&E for such services in accordance with PG&E’s Commission-approved Tariff Schedules.

3. Transmission Service Not Provided with Interconnection. Interconnection with PG&E's Distribution System under this Rule does not provide a Producer any rights to utilize PG&E's Distribution System for the transmission or distribution of electric power, nor does it limit those rights.

4. Compliance with Laws, Rules, and Tariff Schedules. A Producer shall ascertain and comply with applicable Commission-approved Tariff Schedules, and regulations of PG&E; applicable Federal Energy Regulatory Commission (FERC) approved rules, tariffs, and regulations; and any local, state or federal law, statute or regulation which applies to the design, siting, construction, installation, operation, or any other aspect of the Producer’s Generating Facility and Interconnection Facilities.

(Continued)

Advice Letter No. Decision No.

43721

2071-E 00-11-001,00-12-037

Issued by

DeAnn Hapner

Vice President Regulatory Relations

Date Filed January 5, 2001 Effective January 5, 2001 Resolution No.

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