The utility shall evaluate a Level 1 small generator facility for the potential for adverse system impacts using net system capacity, pursuant to Regulation .06A and B of this chapter, unless nameplate capacity is specifically required using the following: For interconnection of a proposed small generator facility: To a radial distribution circuit, the aggregate generation on the circuit, including the proposed small generator facility, may not exceed 15 percent of the line section annual peak load as most recently measured at the substation or calculated for the line section; or To a spot network: On the load side of spot network protectors, the proposed small generator facility shall utilize an inverter-based equipment package; The interconnection equipment proposed for the small generator facility is lab-certified; and The aggregate generation of all interconnected small generator facilities may not exceed 5 percent of the spot network's maximum load if the spot network serves more than one customer; When a proposed small generator facility is to be interconnected on a single-phase shared secondary line, the aggregate generation on the shared secondary line, including the proposed small generator facility, may not exceed 20 kW; When a proposed small generator facility is single-phase and is to be interconnected on a center tap neutral of a 240 volt service, its addition may not create an imbalance between the two sides of the 240 volt service of more than 20 percent of the nameplate rating of the service transformer; As an alternative non-mandatory method to evaluate the adverse system impacts of a proposed Level 1 small generator facility on the distribution system, as described in §A(1)—(3) of this regulation, or as a mandatory next step prior to rejecting an interconnection request, pursuant to §E of this regulation, for Level 1 Review Failure, a utility may use a power-flow based analysis system with modeling of IEEE 1547-2018 inverter capabilities as follows, if its use may change the analysis result as determined by the utility: For primary voltage systems, within 6 months of the effective date of this regulation; and For secondary voltage systems, within 2 years of the effective date of this regulation; Modification or construction of additional interconnection facilities by the utility on its distribution system, except for metering or a minor system modification, is not required to accommodate the small generator facility; and If the proposed interconnection requires a minor system modification, the utility shall notify the applicant of that requirement when it provides the Level 1 evaluation result, as follows: The applicant shall inform the utility within 10 business days if the applicant elects to continue the application; If the applicant makes such an election, the utility shall provide an interconnection agreement, along with a non-binding good faith cost estimate and construction schedule for those upgrades, to the applicant within 30 calendar days after the utility receives such an election; and The applicant shall have 30 calendar days, or other mutually agreeable time frame after receipt of the interconnection agreement, to sign and return such agreement. The utility in conducting a Level 1 interconnection review shall: Within 5 business days after receipt of the interconnection request, inform the applicant that the interconnection request is: Complete; or Incomplete and what materials are missing; and Within 15 business days after the utility notifies the applicant that the application is complete under §B(1) of this regulation, verify that the small generator facility can be interconnected safely and reliably under §A of this regulation. Unless the utility determines and demonstrates that a small generator facility cannot be interconnected safely or reliably to its electric distribution system, the utility shall approve the interconnection request and provide a permission to operate notice within 20 business days of receipt of acceptable documents, subject to the following conditions: The small generator facility has been approved by local or municipal electric code officials with jurisdiction over the interconnection; A certificate of completion has been returned to the utility; The witness test has been successfully completed or waived by the utility; and The applicant has signed an interconnection agreement. If an applicant does not sign the interconnection agreement within 30 calendar days after receipt from the utility, the interconnection request is considered withdrawn unless the applicant requests to have the deadline extended. A request for extension may not be unreasonably denied by the utility. Level 1 Review Failure. If the small generator facility is not approved under a Level 1 review, the utility shall provide the applicant a letter explaining its reasons for denying the interconnection request. If a small generator facility fails a Level 1 review, the utility may approve the interconnection request if the small generator facility can be interconnected safely and reliably to the utility’s electric distribution system. When a small generator facility is not approved under a Level 1 review, the applicant may submit a new interconnection request for consideration under Level 2, Level 3, or Level 4 procedures.