(1) The interconnection procedures set forth in this subchapter apply to applicants proposing to install and interconnect a small generator facility to an EDC's system that satisfies the following criteria:

(a) The small generator facility must be sited on the utility customer's premises;

(b) The customer installing the small generator facility must be in good standing with the utility;

(c) The proposed small generator facility's point of interconnection may not be on a transmission line;

(d) The power produced from the small generator facility must be contained on the EDS and not flow onto the transmission system; and

(e) The power exported by an interconnection customer can only be sold to the EDC.