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SCHEDULE 3-DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS <br /> portion of the Area EPS Operator's Interconnection Facilities and Upgrades, the <br /> Interconnection Customer shall provide the Area EPS Operator, at the Interconnection <br /> Customer's option, a guaranty, letter of credit or other form of security that is <br /> reasonably acceptable to the Area EPS Operator and is consistent with the Minnesota <br /> Uniform Commercial Code. Such security for payment shall be in an amount sufficient to <br /> cover the costs for constructing, designing, procuring, and installing the applicable <br /> portion of the Area EPS Operator's Interconnection Facilities and Upgrades and shall be <br /> reduced on a dollar-for-dollar basis for payments made to the Area EPS Operator under <br /> the Interconnection Agreement during its term. <br /> The guaranty must be made by an entity that meets the creditworthiness requirements <br /> of the Area EPS Operator and contain terms and conditions that guarantee payment of <br /> any amount that may be due from the Interconnection Customer, up to an agreed-to <br /> maximum amount. <br /> The letter of credit must be issued by a financial institution or insurer reasonably <br /> acceptable to the Area EPS Operator and must specify a reasonable expiration date not <br /> sooner than sixty(60) Business Days, (three calendar months), after the due date of the <br /> final accounting report and invoice described in Section 11.4. <br /> 11.6. Non-Warranty <br /> Area EPS Operator does not give any warranty, expressed or implied, as to the <br /> adequacy, safety, or other characteristics of any structures, equipment, wires, <br /> appliances or devices owned, operated, installed or maintained by the Interconnection <br /> Customer, including without limitation the DER and any structures, equipment, wires, <br /> appliances or devices not owned, operated or maintained by the Area EPS Operator. The <br /> Area EPS Operator does not guarantee uninterrupted power supply to the DER and will <br /> operate the Distribution System with the same reliability standards for the entire <br /> customer base. <br /> 11.7. Authorization for Parallel Operation <br /> The Interconnection Customer shall not operate its DER system in parallel with the Area <br /> EPS Operator's Distribution System without prior written authorization from the Area <br /> EPS Operator. The Area EPS Operator shall provide such authorization within three (3) <br /> Business Days from when the Area EPS Operator receives notification that the <br /> Interconnection Customer has complied with all applicable parallel operations <br /> requirements and commissioning has been successfully completed. Such authorization <br /> shall not be unreasonably withheld, conditioned or delayed. <br /> 16 <br /> 218 <br />