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SCHEDULE 3 - DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS <br />An additional 1/3 of estimated costs shall be due prior to initial energization of <br />the DER with the Area EPS Operator. <br /> <br />Remainder of actual costs, incurred by Area EPS Operator, shall be due within <br />thirty (30) Business Days from the date the bill is mailed by the Area EPS <br />Operator after project completion. <br /> <br />Under the Modified Security method, at least twenty (20) Business Days prior to the <br />commencement of the design, procurement, installation, or construction of a discrete <br /> Interconnection Facilities and Upgrades, the <br />Interconnection Customer shall provide the Area EPS Operator, at the Interconnection <br />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 <br />to cover the costs for constructing, designing, procuring, and installing the applicable <br />nnection 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 /> <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 bill described in Section 9.5 <br /> <br />9.7.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. <br />The Area EPS Operator does not guarantee uninterrupted power supply to the DER and <br />will operate the Distribution System with the same reliability standards for the entire <br />customer base. <br />9.8.Authorization for Parallel Operation <br />The Interconnection Customer shall not operate its DER system in parallel with the <br />Distribution System without prior written authorization from the <br />18 <br /> <br />207 <br />