This Phase II System Impact Study Report (PH2) has been prepared in accordance with the PJM Open Access Transmission Tariff, Part VII, Subpart D, section 310 for New Service Requests (projects) in Transition Cycle #1. The Project Developer/Eligible Customer (developer) is Dolphin Solar LLC, and the Transmission Provider (TP) is PJM Interconnection, LLC (PJM). The interconnected Transmission Owner (TO) is American Electric Power.

The Phase II System Impact Study is conducted on an aggregate basis within a New Services Request’s Cycle, and results are provided in both (i) a single Cycle executive summary format and (ii) an individual project-level basis. The Phase II System Impact Study Results (for both the executive summary and individual reports) will be publicly available on PJM’s website. Developers must obtain the results from the website.

In accordance with PJM Manual 14H, section 4.5, PJM takes the following actions during the Phase II System Impact Study:

1. PJM will retool load flow results from Phase I System Impact Study (summer peak, winter peak^[1] and light load) based on decisions made by Project Developers or Eligible Customers during Decision Point I.
2. PJM will conduct any required voltage analyses.
3. PJM will perform short circuit and stability analyses as required.
4. PJM will coordinate with the Affected System to confirm which projects in PJM Cycle will require Affected System studies. If the Affected System Operator indicates that an Affected System study is required, PJM will:
1. Notify the Project Developer or Eligible Customer of the need for an Affected System study and the requirement to execute an Affected System study agreement with the impacted Affected System Operator, and;
2. Include the results of the Affected System Operator’s Affected System Study in the Phase II System Impact Study results, if applicable and available
5. The Phase II System Impact Study Results will be publicly available on PJM’s website. Project Developers and Eligible Customers must obtain the results from the website.

The Transmission Owner takes the following actions during the Phase II System Impact Study:

1. Verify Interconnection Facilities and Network Upgrades required to accommodate the New Service Request.
2. Perform a Facilities Study. The Facilities Study in Phase II System Impact Study phase will be for the physical Interconnection Facilities. The Facilities Study requirements are outlined in Attachment C of PJM Manual 14H. The study will be conducted pursuant to Tariff, Part VII, Subpart D, section 307(A)(7).

At the close of Phase II System Impact Study, PJM will initiate Decision Point II (DP2). During DP2, the Project Developer will have 30 days to decide whether to proceed with their project. If the Project Developer elects to proceed, they should provide the elements defined in the PJM Open Access Transmission Tariff, Part VII, Subpart D, section 311.A. Additional information on these elements is available in PJM Manual 14H sections 4.6, 6, and 7.

Allowable project modifications at Decision Point II are defined in PJM Open Access Transmission Tariff, Part VII, Subpart D, section 311.B. Additional information regarding allowable project modifications can be found in PJM Manual 14H, section 9.8.

This New Service Request meets the Adverse Study Impact Criteria and has the option to either move forward in the Cycle process or withdraw at DP2 with Readiness Deposits refunded. See Readiness Deposit calculation below.

This section details whether a Project Developer or Eligible Customer qualifies for the Adverse Study Impact clause outlined in the PJM OATT, Part VII, Subpart D, section 311.B and Manual 14H, section 6.2.2. In order to qualify for an Adverse Study Impact at Decision Point II, the Network Upgrade cost from Phase I to Phase II must:

1. Increase overall by 25% or more
2. Increases by more than $10,000 per MW (Includes Costs identified in Affected System studies)

If a New Service Request meets the criteria above and chooses to withdraw the request, PJM will refund the cumulative Readiness Deposit amounts paid at the Application Phase and at Decision Point I (RD1 and RD2, respectively).

The below calculations show the computation of this New Service Request's Adverse Study Impact

The Project Developer has proposed a Solar generating facility located in the American Electric Power zone — Fountain County, Indiana. The installed facilities will have a total capability of 450.0 MW with 142.0 MW of this output being recognized by PJM as Capacity.

Physical Interconnection Facility Study

The transmission owner has completed the Physical Interconnection Facilities Study. This report is available for download.

AG1-226 will interconnect on the AEP transmission system tapping the Eugene to Dequine 345 kV line.

The table below shows a summary of the total cost estimates for this New Service Request project. In Phase II SIS, the interconnected Transmission Owner has performed a facilities study for both the Transmission Owner Interconnection Facilities (TOIF) and Physical Interconnection Network Upgrades. The System Reliability Network Upgrade shown in the table are planning level cost estimates which are subject to change as a result of a facility study performed by the TO during Phase III System Impact Study.

Based on the Phase II SIS results, the AG1-226 project has the following allocation of costs for interconnection. The cost contribution towards Readiness Deposit #3 are also shown below.

* Contributes to calculation for Readiness Deposit #3 (RD3). See Readiness Deposit section of report for additional detail.

Definitions

Transmission Owner Interconnection Facilities: Facilities that are owned, controlled, operated and maintained by the Transmission Owner on the Transmission Owner’s side of the Point of Change of Ownership to the Point of Interconnection, including any modifications, additions or upgrades made to such facilities and equipment, that are necessary to physically and electrically interconnect the Generating Facility with the Transmission System or interconnected distribution facilities.

Stand Alone Network Upgrades: Network Upgrades, which are not part of an Affected System, which a Project Developer may construct without affecting day-to-day operations (e.g. taking a transmission outage) of the Transmission System during their construction.

Network Upgrades: Modifications or additions to transmission-related facilities that are integrated with and support the Transmission Provider’s overall Transmission System for the general benefit of all users of such Transmission System. Network Upgrades have no impact or potential impact on the Transmission System until the final tie-in is complete.

Notes

Note 1: PJM Open Access Transmission Tariff (OATT), Part VII, Subpart D, section 307.5 outlines cost allocation rules. The rules are further clarified in PJM Manual 14H, section 4.2.6. PJM shall identify the New Service Requests in the Cycle contributing to the need for the required Network Upgrades within the Cycle. All New Service Requests that contribute to the need for a Network Upgrade will receive cost allocation for that upgrade pursuant to each New Service Request’s contribution to the reliability violation identified on the transmission system in accordance with PJM Manuals.

Note 2: There will be no inter-Cycle cost allocation for Interconnection Facilities or Network Upgrades identified in the System Impact Study costs identified in a Cycle; all such costs shall be allocated to New Service Requests in that Cycle.

Note 3: For Project Developers with System Reinforcements listed: If this project presents cost allocation to a System Reinforcement indicates $0, then please be aware that as changes to the interconnection process occur, such as other projects withdrawing, reducing in size, etc, the cost responsibilities can change and a cost allocation may be assigned to this project. In addition, although this project presents cost allocation to a System Reinforcement is presently $0, this project may need this system reinforcement completed to be deliverable to the PJM system. If this project desires to come into service prior to completion of the system reinforcement, the Project Developer will need to request PJM to perform an interim study to determine if they would be deliverable for all or a portion of their output for each delivery year until the system reinforcement is complete.

Note 4: Please see the ‘Affected Systems Studies’ section of this Phase 2 SIS report for details on your project’s need for an Affected Systems Study. If your project requires an Affected Systems Study, the Affected Systems impacts may not be available from the Affected System Operator at the time of the PJM Phase II SIS. Therefore, the cost in this section would not reflect any required upgrades by the Affected System until the study is completed. If your project requires an Affected Systems Study and your results are not provided for Phase II SIS, PJM anticipates providing them in the Phase III SIS per Tariff Part VII.D.312.

Per Tariff Part VII, Subpart D, section 311 (Decision Point II) A.1.b and PJM Manual 14H, section 6.2, Readiness Deposit #3 (RD3) are funds committed by the Project Developer or Eligible Customer based upon the applicable contribution to Network Upgrades as defined below. Readiness Deposits are not used to fund studies nor to offset Security.

During Decision Point II (DP2), the Project Developer or Eligible Customer is required to submit Readiness Deposit #3, which is calculated as 20% of cost allocation for required Phase II Network Upgrades minus Readiness Deposit #1 & Readiness Deposit #2.

Note 1: “Network Upgrades” referred to in the calculation include both (i) the Physical Interconnection Network Upgrades and (ii) the System Reliability Network Upgrades as shown in the Cost Summary table.

Note 2: Readiness Deposit #1 (RD1) = ($4,000 * Project Size (MW))

Note 3: Readiness Deposit #2 (RD2) = 10% of cost allocation for required Network Upgrades minus RD1. Readiness Deposit #2 (RD2) can be zero, but may not be a negative number.

Note 4: Readiness Deposit #3 can be zero, but may not be a negative number.

Readiness Deposit #3 Due for Project AG1-226

Readiness Deposit #3 has been calculated for the AG1-226 project based on the Phase II System Impact Study results and is shown in the table below. This Readiness Deposit #3 must be provided at Decision Point II through either a wire transfer or letter of credit per Manual 14H, Section 6.2.

Note: Failure to provide an acceptable form of Readiness Deposit #3 by the end of Decision Point II will result in withdrawal and termination of the New Service Request.

For additional detail regarding Readiness Deposit Refunds, reference PJM Manual 14H, section 6.2.1. The Readiness Deposit Letter of Credit template can be found here.

AG1-226 will interconnect with the AEP transmission system via a new station cut into the Eugene - Dequine 345 kV Circuit. The estimates provided in this report are preliminary in nature, as they were determined without the benefit of detailed engineering studies. Final estimates will require an on-site review and coordination to determine final construction requirements.

The total preliminary cost estimate for the Transmission Owner scope of work (including TOIF and Physical Interconnection Network Upgrades) is given in the table below. These costs do not include CIAC Tax Gross-up.

Transmission Owner Build Option

Developer Build Option

Project Developer has the option ("Option to Build") to assume responsibility for the design, procurement and construction of Transmission Owner Interconnection Facilities and/or Stand-Alone Network Upgrades.

If Option to Build is elected, the Project Developer must fulfill additional requirements in accordance to PJM Manual 14C, section 5.1 and PJM Manual 14H, section 8.6.2.

The cost estimates for eligible facilities and Option to Build oversight are highlighted below:

Based on the scope of work for the Interconnection Facilities, it is expected to take 31 month(s) after the signing of a Generator Interconnection Agreement (as this is a FERC connection) and construction kickoff call to complete the installation of the physical connection work. This assumes that there will be no environmental issues with any of the new properties associated with this project, that there will be no delays in acquiring the necessary permits for implementing the defined interconnection work, and that all system outages will be allowed when requested.

The schedule for any required Network Impact Reinforcements will be more clearly identified in the Phase II and Phase III System Impact Studies.

The minimum and maximum schedules reflect the amount of time, in months, that AEP projects their portion of the construction project scope elapsing from the time of agreement. The maximum schedule is based off of AEP assumed long lead material ordering not considering allocation of existing material production slots, advanced progress enabled by Engineering and Procurement Agreements, or other schedule expediting methods. AEP may be able to allocate material production slots for long lead time materials to expedite this schedule. Final agreements will reflect an "on or before" date, allowing all parties to complete their scope of work prior to the agreement date, should there be means to expedite. Any material ordering or construction work done prior to Engineering and Procurement or Generation Interconnection Agreements is done solely at the Project Developers risk. There is a potential that any work done or materials ordered prior to these agreements and the ensuing detailed engineering processes does not meet AEP specifications, resulting in rejection of the completed work.

No violations.

The developer is responsible for all design and construction related activities on the developer’s side of the Point of Change in Ownership. AEP interconnection requirements can be found here. Refer to AG1-226 Physical Interconnection Facilities Study for additional requirements found in the General Section of the report.

To the extent that these Applicable Technical Requirements and Standards may conflict with the terms and conditions of the Tariff, the Tariff shall control.

The developer will be required to install equipment necessary to provide Revenue Metering (KWH, KVARH) and real time data (KW, KVAR) for their generating Resource. See PJM Manual 01, PJM Manual 14D, and PJM Tariff Part IX, Subpart B, Appendix 2, section 8.

The solar generation facility shall provide the Transmission Provider with site-specific meteorological data including:

• Temperature (degrees Fahrenheit)
• Atmospheric Pressure (hectopascals)
• Irradiance
• Forced outage data

The Project Developer will be required to comply with all interconnected Transmission Owner’s revenue metering requirements located at the following link: PJM - Transmission Owner Engineering & Construction Standards and in the Physical Interconnection Facilities Study.