A. Application For Service: Applications will be received from those customers who are within the normal service area of the city electric utility and adjacent to electrical lines of the city electric utility and who agree to design, construct, own, operate and maintain in accordance with prudent utility practice and the standards established by this section, a cogeneration facility, and desire to sell surplus electrical energy, or desire to purchase electrical energy as a supplement to that energy, produced by a cogeneration facility (hereinafter described as a "qualifying facility" or "customer").
B. Purchase Of Surplus Energy: The city electric utility shall purchase the surplus electrical energy of a qualifying facility at electrical rates as outlined as a part of this section, which are represented to be the costs that are avoided by the city electric utility by its power otherwise purchased and generated for the city electric utility.
C. Sale Of Surplus Energy: The city electric utility shall sell the supplemental energy to a qualifying facility as is within the capability of the city electric utility and at the regular established rates established by the city electric utility.
D. Requirements Of Qualifying Facility: A qualifying facility, before being connected to the city electric utility, shall meet the following provisions and requirements:
1. Provide an expected service date to the city electric utility.
2. Provide a complete description of the proposed generating facility, including its location, source of fuel, nameplate data of principal components and drawings and exhibits that describe the size, character and continuity of service and the location of the generating facility.
3. Provide the character of service of the generating facility including the proposed electrical current, frequency (hertz), voltage, number of phases, and size of all electrical wire to be used in the generating facility installation.
4. Provide the equipment and facilities to meet the requirements for metering and protective controls as described in this section.
5. Provide certification of compliance with all other legal requirements of the generating facility installation and the emissions therefrom.
E. Maintenance And Operation Of Facilities: The qualifying facility shall furnish, install, operate and maintain facilities such as relays, switches, synchronizing equipment, control and protective devices designated by the city electric system as suitable for parallel operation with the city system. Such facilities shall be accessible at all times to authorized city electric utility personnel.
F. Inspections: The city electric utility shall have the right to inspect the qualifying facility's electric generating facilities, to conduct such operating tests as are necessary to ascertain that the protective devices function properly, to review any data collected from such facilities at all reasonable times, and to independently monitor the aforesaid system.
G. Authority To Curtail Service: The city electric utility reserves the right to curtail services without liability to the qualifying facility for necessary maintenance, to effectuate repairs on its systems, equipment or facilities, or for protection of persons or property, or to make such other arrangements as may be required to enable the city electric utility to restore service. The city utility shall endeavor to give the qualifying facility such notice as is reasonably practical in the circumstances.
H. Installation And Maintenance Of Equipment: The qualifying facility shall agree to install and maintain, in a thoroughly safe and efficient manner and in accordance with good electrical practice and all applicable lawful regulations, all of its lines, wiring, apparatus, machinery and appliances connected to the city electric system. If at any time any part of the qualifying facility's lines, wiring, apparatus, machinery or appliances shall be in a condition which interferes with the city utility service to its other customers, the city utility may discontinue service to the qualifying facility until such interfering parts shall be put back in safe and proper operating condition, or shall have been replaced or disconnected. Unless emergency or the risk of an emergency is imminent, the city utility shall give reasonable notice of its intention to discontinue purchases from or service to the qualifying facility on account of any such claimed interference and, where practical, suitable time for repair or replacement of such interfering facility. Suspension shall not relieve the qualifying facility of its other obligations hereunder. (Ord. 1016, 4-6-1981)
I. Default Protected: Neither the city utility nor the qualifying facility shall be considered to be in default in respect to any obligation hereunder, other than the obligation of a party to make payments of amounts due another party under this section, if failure of performance shall be due to uncontrollable forces; the term "uncontrollable forces" meaning any cause beyond the control of the party affected, including, but not limited to, failure of facilities, flood, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance, sabotage, inability to obtain rights of way, permits, licenses, and authorizations from any local, state of federal agency or person for any of the facilities or equipment required to provide service hereunder, and restraint by court or public authority, which, by exercise of due foresight, such party could not reasonably have been expected to avoid, and which, by the exercise of due diligence, it be unable to overcome. A party shall not, however, be relieved of liability for failure of performance if such failure is due to removable or remediable causes which it fails to remove or remedy with reasonable dispatch.
J. Meters: The city electric utility shall install, own, maintain and test the meters and associated equipment (hereinafter called "meters") which in the city utility's judgement are needed to determine the amounts and time of delivery of power and energy. However, in the event this agreement is terminated, the qualifying facility will pay the city utility, promptly upon receipt of statement, the cost, including all applicable overhead of retiring the meters and the undepreciated portion of the actual cost of installing the meters. It is recognized that the cost to the city utility of installing the meters is estimated for convenience only to be about twenty five thousand dollars ($25,000.00), but said estimate shall not be binding upon the parties, and the qualifying facility shall be obligated to make payment to the city electric utility based on the actual installed cost.
K. Liability For System:
1. The qualifying facility shall: a) indemnify the city electric utility, its agents and employees against loss, damage, expense and all liability resulting from injury or death of any person or persons including, but not limited to, city employees or customers, or damage to property, including, but not limited to, property of the city or customer, resulting from, or arising out of, or in any way connected with the installation, inspection, maintenance, testing and use of the generator and, on the city utility's request, defend any suit asserting a claim covered by this indemnity; and b) reimburse the city electric system for all loss, expenses, including reasonable attorney fees, incurred in consequence with any claim, demand or cause of action which may be made or brought against the city electric utility arising out of or in any way connected with the use of the equipment. The obligation of the qualifying facility under this section, accrued or not, then known or unknown, shall be continuing as to any act, occurrence, or omission occurring prior to or following the termination of this section.
2. The city electric system's approval of the customer's use of the equipment shall not be construed as confirming or endorsing the design or effectiveness of the equipment or the qualifying facility's plan for use of the equipment for actual reducing demand or energy usage, or as any warranty of the safety, durability or reliability of the equipment.
L. Rates Established:
1. For electrical power received, the city electric utility shall pay a qualifying facility an amount to be determined by the city.
2. The foregoing rates are based upon the normal net cost of electric power to the city electric utility, and will be increased or decreased, based upon the increased or decreased cost to the city electric utility.
M. Publication Of Provisions: This section shall be published in a local newspaper having general circulation in the area of the city electric utility, advising potential customers of the availability of connection to the city electric utility for cogeneration facilities and generating facilities. (Ord. 1016, 4-6-1981; amd. 2006 Code)