Notice regarding the Printing and Distribution                      of Regulations on the Interconnection for Operation Between                      the Grid And Power Plant and Between Grids (Draft) 
(Issued by the Ministry of Power Industry                      by Dian Zheng Fa [1994] No. 315 Decree on May 31, 1994)
 
To Each Power Administration, Power Bureau of Each Province,                      Municipality and Autonomous Region: 
                     
                     In accordance with the relevant stipulations under the Administrative                      Rules for Grid Dispatch of the State Council, and on the basis                      of the consultations with the relevant departments and entities,                      the Ministry [of Power Industry] has formulated the Regulations                      on the Interconnection for Operation Between the Grid and                      Power Plant and Between Grids (Draft) in order to ensure the                      operation of the grid in a safe, high-quality and economic                      way and maintain the legitimate rights and interests of the                      interconnecting parties. We now print and distribute to you                      these regulations. Please report to the State Power Dispatch                      Communication Center in a timely manner if you encounter any                      questions in practice. 
                     
                     
                     Regulations on the Interconnection for Operation Between                      the Grid and Power Plant and Between Grids (Draft)  
                     
                     (Issued by the Ministry of Power Industry by Dian Zheng Fa                      [1994] No. 315 Decree on May 31, 1994) 
                     
                     Table of Contents:                     
                                               Chapter I                           |                          General Provisions                            |                        
                                                 Chapter II                           |                          Procedures and Conditions for Interconnection Application                            |                        
                                                 Chapter III                           |                          Interconnection Economic Agreement                            |                        
                                                 Chapter IV                           |                          Interconnection and Dispatch Agreement                            |                        
                                                 Chapter V                           |                          Supplementary Provisions                            |                        
                                        
                   
                   
                   Chapter                    I   General Provisions 
                   
                   Article 1.   
                   
                   In accordance with the relevant stipulations under the Administrative                    Rules, these regulations have been formulated in order to meet                    the demands of the socialist market economy, ensure the operation                    of the grid in a safe, high-quality and economic way and maintain                    the legitimate rights and interests of the interconnecting parties.                    
                   
                   Article 2.   
                   
                   These regulations shall be applied to power grid administration                    departments and their dispatch agencies, interconnected power                    plants (stations), substations and grids. 
                   
                   Article 3.   
                   
                   Newly built power plants which need to be interconnected for                    operation shall meet the relevant industrial policies of the                    State and the unified plan and technical requirements for interconnection                    issued by the grid. Relevant power administration departments                    shall participate in the examination and review of the designs                    in connection with the interconnection. 
                   
                   Article 4.   
                   
                   Any power plant or power grid, which needs to be interconnected                    for operation, must enter into an interconnection agreement                    with the relevant grid administration department under the principles                    of mutual benefit and mutual agreement before it interconnects                    with the grid. 
                   
                   Article 5.   
                   
                   The interconnection agreement shall include interconnection                    economic agreement, interconnection and dispatch agreement and                    any other agreements the parties deem necessary. The parties                    to the agreement shall respectively submit it to their competent                    department at an upper level for filing. 
                   
                   Article 6.   
                   
                   Any power plant or grid, which is interconnected for operation,                    shall be subject to the unified dispatch of the grid dispatch                    agency. The technical requirements on the interconnection by                    the power plant shall conform to national standards or the standards                    issued by the power administrative department of the State Council.                    The requirements for grid interconnection may be formulated                    as per these regulations. 
                   
                   Chapter                    II   Procedures and Conditions for Interconnection Application                    
                   
                   Article 7.   
                   
                   Any power plant which wants to get interconnected for operation                    shall submit its application to the relevant grid administration                    department three months prior to the examination and review                    of the project design, which shall examine if the design meets                    the requirement for interconnection, and shall give a written                    reply thereto within a month upon the receipt of the application.                    
                   
                   Article 8.   
                   
                   Any power plant which applies for interconnection must have                    the technical equipment and management facility which is able                    to accept unified dispatch by the grid. 
                   
                   Article 9.   
                   
                   The construction of the power plant applying for interconnection                    must be completed and put into operation simultaneously with                    the supporting transmission facility and secondary system (including                    relevant devices for relay protection, automatic safety and                    measurement, telecommunication, automatic grid dispatch, etc.)                    in accordance with the approved design, and shall be examined                    and accepted by relevant grid administration department. 
                   
                   Article 10.   
                   
                   The following terms and conditions must be met before any power                    plant enters into an interconnection agreement with the relevant                    grid administration department:                    
 (1)  providing to the relevant grid                        administration department with the master electrical wiring                        diagram, parameters for major equipment, method of interconnection,                        information regarding the relay protection and automatic                        safety devices, tele-control and telecommunication equipment;                        for a hydro-electric plant (including pumped-storage hydro-electric                        plant), information regarding the hydro construction, hydrography,                        reservoir dispatch curve (dispatch diagram) shall also be                        provided; for a nuclear power plant, information and drawings                        concerning the nuclear island shall also be provided; 
                       
                       (2)  The telecommunications facility with the relevant                        grid dispatch agency has been completed according to the                        design, and are ready to go into operation; 
                       
                       (3)  The tele-control facility has been completed according                        to the design, and the relevant tele-control information                        is ready to be sent into the grid dispatch automation system                        of the relevant grid dispatch agency; 
                       
                       (4)  The relay protection and automatic safety devices                        installed pursuant to the design are ready for operation;                        
                       
                       (5)  The technical level of the measuring devices for                        electricity and energy in connection with the interconnection                        shall meet the relevant stipulations of the State, and the                        devices have been installed and initially calibrated and                        tested; 
                       
                       (6)  any other matters.                    
Article 11.   
                     
                     In the event that the relevant grid administration department,                      because of change of circumstances, requires the power plant                      to install additional equipment in order to ensure the safe                      operation of the grid, the power plant shall do so. 
                     
                     Article 12.   
                     
                     The technical conditions for grid interconnection shall be                      implemented as per the regulations governing power plant.                      
                     
                     Article 13.   
                     
                     Interconnected power grids shall have the capability to control                      the safe operation of the interconnection. 
                     
                     Article 14.   
                     
                     Whether the power plant or grid meets the conditions for interconnection                      is subject to the acceptance upon completion of the power                      plant, substation and transmission lines, trial operation                      after interconnection or other means of testing. 
                     
                     Article 15.   
                     
                     Relevant grid administration department shall provide necessary                      technical instruction and assistance to the power plant or                      grid which need to get interconnection, and creative positive                      conditions for their interconnection. 
                     
                     Article 16.   
                     
                     In case of any dispute between the interconnecting parties                      on the conditions for interconnection, decision shall be made                      by their competent departments at a higher level (including                      the Ministry of Power Industry) through coordination. 
                     
                     Chapter                      III   Interconnection Economic Agreement                      
                     
                     Article 17.   
                     
                     The power plants or the grids shall execute the interconnection                      economic agreement with the relevant grid management authority.                      
                     
                     Article 18.   
                     
                     With respect to the quantity of on-grid energy, the power                      plants shall execute a purchase and sales agreement with the                      relevant grid management authority, and shall have the on-grid                      power price fixed through consultations in accordance with                      the relevant State regulations. Such on-grid power price shall                      be implemented only after they are submitted to the State                      or provincial authority in charge of power price for approval                      in accordance with relevant regulations. 
                     
                     Article 19.   
                     
                     The interconnection economic agreement executed between the                      grid management authority and the power plants shall include                      the following contents:                    
(1)  The power purchase and sales                        terms; 
                       
                       (2)  The pricing terms; 
                       
                       (3)  Terms on financial settlement; 
                       
                       (4)  Terms regarding the liability for breach of contract;                        
                       
                       (5)  Terms on incentives and punishment; 
                       
                       (6)  Terms on the calculation and examination of the                        on-grid power or power quantity which is more (less) than                        that set forth in the agreement due to the causes of the                        other party or itself; 
                       
                       (7)  Terms on the examination of technological index                        and settlement; 
                       
                       (8)  Terms on the handling of force majeure events;                        
                       
                       (9)  Terms on the amendments to the agreement; 
                       
                       (10)  Terms on the settlement of disputes under the                        agreement and on arbitration; and 
                       
                       (11)  Miscellaneous.                    
Article 20.   
                     
                     Measures governing the metering of back-up power or power                      quantity provided during emergencies between two interconnected                      parties and the compensation therefor shall be determined                      through consultations by the parties and shall be clearly                      set forth in the interconnection economic agreement. 
                     
                     Article 21.   
                     
                     The parties shall decide the necessity regarding the notarization                      for the interconnection economic agreement through consultation.                      The notary organ at the location of either party may notarize                      the interconnection economic agreement. 
                     
                     Chapter                      IV   Interconnection and Dispatch Agreement                      
                     
                     Article 22.   
                     
                     Upon receiving the application for interconnection from a                      power plant, the relevant grid management authority shall,                      in addition to the examination and verification of its interconnection                      conditions, seriously organize the calculation of the adjusting                      value the relay protection and security automation facilities                      co-ordinating with the grid in order to secure the security                      of the grid, and then shall give the instruction to carry                      out the application. 
                     
                     Article 23.   
                     
                     The interconnection and dispatch agreement executed by and                      between the grid management authority and the power plant                      shall include the following:                    
(1)  Interconnected power plants must                        be subject to unified dispatch by the grid and comply with                        the relevant directive rules on grid dispatch. Grid dispatch                        centers shall, based on the designed capacity of each power                        generating unit and under the principles of equality, fairness,                        economy and being reasonable, make unified arrangement of                        peak adjusting, frequency adjusting, voltage adjusting and                        back-up capacity for use during emergencies by the interconnected                        power plants. 
                       
                       (2)  The maximum and minimum designed output of each                        generating unit as verified by the relevant grid management                        authority shall form the basis of the relevant dispatch                        centers in arranging the daily load curve and peak-adjusting                        capacity of the power plants. 
                       
                       (3)  When the relevant grid management authority prepares                        the monthly power generation plan, it shall meet the operating                        conditions necessary for the power plants to fulfil the                        power generation target set by the State or set forth in                        the relevant agreement. 
                       
                       (4)  When a power plant prepares its maintenance and                        repair plan, it shall give overall consideration of the                        needs of the grid and the capability of the power plant,                        and shall perform its scheduled maintenance and repair in                        accordance with the plan approved by the grid management                        authority. The progress rate of repairs shall be in line                        with the unified arrangement of the relevant dispatch centers.                        Any changes to the maintenance and repair arrangements and                        application for approval regarding any temporary repairs                        shall be handled in accordance with the relevant directive                        rules of the power grid. 
                       
                       (5)  Power plants shall be operated in strict compliance                        with the daily load curve instructed by the relevant dispatch                        centers, with a maximum variance of ± 3%. When changes                        are made in accordance with the "Administrative Regulations                        on Grid Dispatch", settlement shall be made in line with                        the stipulations of the economic agreement. Principle stipulations                        shall be provided regarding the availability rate of the                        power plant generating units. 
                       
                       (6)  The relevant grid management authorities will                        carry out specialized management of such professional work                        as power-relay protection of the power plants, safety automation                        installations, communications, grid dispatch automation                        and so on, and will conduct supervision of the operating                        status of these facilities. 
                       
                       (7)  Determination of the points for measuring power                        (including active power and reactive power), power quantity                        and voltage. The technical grade of the meters shall be                        in line with the relevant State regulations and the meters                        shall be subject to periodic verification. The point for                        measuring power quantity shall be in principle located on                        the equipment at the ownership parting. 
                       
                       (8)  The power plants shall, as per the requirements                        of the relevant grid management authorities, submit the                        relevant statistical statements, the accident wave-recording                        chart and other materials in a timely and accurate manner.                        
                       
                       (9)  The scope of dispatch. 
                       
                       (10)  Administration of the grid safety measures. 
                       
                       (11)  Training, examination and verification of the                        on-duty personnel of the dispatch system. 
                       
                       (12)  Measures governing the amendment of agreements.                        
                       
                       (13)  Measures governing the settlement of disputes                        under any agreement as well as arbitration. 
                       
                       (14)  Miscellaneous.                    
Article 24.   
                     
                     In accordance with the capacity of the power plant generating                      units, the voltage level of the interconnection system as                      well as the specific conditions of the grid, the inter-provincial                      or the provincial power grid management authority shall determine                      the grid dispatch center with which a power plant shall execute                      the interconnection and dispatch agreement. 
                     
                     Article 25.   
                     
                     The substance of the interconnection and dispatch agreement                      shall be in accordance with the relevant regulations applicable                      to the power plants. 
                     
                     Chapter                      V   Supplementary Provisions 
                     
                     Article 26.   
                     
                     Power plants or power grid which have already been interconnected                      but which have not executed the interconnection agreement                      shall execute a supplementary interconnection agreement with                      the relevant grid management authority within one (1) year                      upon the promulgation of these Regulations and if the interconnection                      conditions do not satisfy the requirements set forth in these                      Regulations, the deadline for improving such technical conditions                      of interconnection shall be clearly defined in such agreement.                      
                     
                     Article 27.   
                     
                     The inter-provincial or the provincial grid management authority                      may formulate its own detailed implementing rules in accordance                      with these Regulations. 
                     
                     Article 28.   
                     
                     The Ministry of Power Industry shall be responsible for the                      interpretation of these Regulations. 
                     
                     Article 29.   
                     
                     These Regulations shall be performed on a trial basis as of                      the date of their promulgation.