Interconnection | Practical Law

Interconnection | Practical Law

Interconnection

Interconnection

Practical Law Glossary Item 3-517-5385 (Approx. 2 pages)

Glossary

Interconnection

In the context of electricity generation, the physical connection of a generating station (also known as a power plant) to transmission lines to allow for the sale and delivery of the electricity produced by that power plant to its customers. If the customer of the electricity is the utility or other entity who owns the transmission lines, the delivery of the electricity by the generating station is completed at the point of interconnection. If, as is often the case, the plant's customer is a third party, the owner of the power plant must enter into a transmission agreement with the utility or other entity to wheel or transport the electricity across the transmission lines to that third party.