FERC on Friday rejected Public Service Company of Colorado’s proposed changes to its large generator interconnection procedures, saying the changes could give the utility an unfair advantage and hinder competition (ER20-1153).

“PSCo’s proposed generator replacement process may result in a more favorable interconnection process for PSCo’s own generation and make it more difficult for its generation competitors to enter the market,” FERC said.

The generator replacement process, with its revised criteria, would allow PSCo’s generation facilities to go through a foreshortened process, “whereas new generation seeking to compete would be required to go through the full interconnection process,” the commission said.

Because 60% of PSCo’s existing designated network resources are generators owned by itself or an affiliate, “we find that the proposed generator replacement process could give PSCo an undue preference,” FERC said.

PSCo’s changes were sought under FERC Order 2003, in which the commission required public utilities that own or operate transmission to file generator interconnection procedures for facilities with a capacity of more than 20 MW. The order provided for pro forma large generator interconnection procedures (LGIP) but allowed for variations consistent with or superior to the standard LGIP.

Order 2003’s interconnection procedures were meant to “limit opportunities for transmission providers to favor their own generation and to facilitate market entry for generation competitors by reducing interconnection costs and time,” FERC said.

PSCo, a wholly owned subsidiary of Xcel Energy, failed to show its proposed changes were equal to or better than Order 2003’s standard LGIP, FERC said. In fact, the changes were likely to undermine the order’s intentions, it said.

“Without the proposed generator replacement process — that is, under the pro forma LGIP provisions — replacements for PSCo’s existing generation and new generation (whether developed by PSCo or a third party) will all be required to go through the regular interconnection process and interconnection queue,” the commission said. “This will allow all generation to compete on a level playing field, including accessing released interconnection capacity following an existing resource’s retirement.

“For these reasons, we find that PSCo’s proposed generator replacement process is not consistent with or superior to the pro forma LGIP,” the commission said.