(A) Purpose of interconnections. Under the town’s user metering ordinances, interconnection agreements, and related documents, customers will be provided with a credit for solar-generated electricity that is accepted into the town’s electrical distribution system; provided that all terms and conditions of the user metering ordinances, interconnection agreements, and related requirements are satisfied and complied with by the customer. Nothing in this section shall limit the town’s ability to evaluate a solar generation facility and determine terms and conditions that are mutually satisfactory to the town and customer, provided that no terms of the negotiated agreement are prohibited by or contrary to any law, and that the terms of the negotiated agreement are not detrimental to the operation of the town’s electrical distribution system or to other customers of the town. The town shall not enter into any agreement to provide a credit for or purchase all energy generated by a customer’s solar generation facility, unless the credit provided to the customer or the cost of the customer’s energy is less than or equal to the town’s avoided cost of energy.
(B) Customer solar generation facilities. A customer’s solar generation facility may not exceed ten kW and must be approved by the town or the town’s agent prior to commencement of an interconnection. The customer’s solar generation facilities: (1) must be capable of providing some or all of the customer’s requirements for electricity; and (2) must not exceed 90% of the customer’s utility distribution service rating at the site where the solar generation facilities are located. The town will not interconnect or agree to interconnect solar generation facilities that are inconsistent with these requirements, unless the customer and the town negotiate and agree to an interconnection agreement that provides for a solar generation facility that exceeds these limitations.
(C) Interconnection agreement. The solar generation customer must execute an interconnection agreement with the town. An interconnection agreement for a customer’s solar generation facilities shall not alter, limit, or restrict a customer’s right to purchase from the town all capacity and energy required by the customer at the site of customer’s solar generation facilities.
(D) Applicable rates. For purposes of metering and customer billing, the town shall apply the applicable rates for residential and general customers that are in effect at the time service was provided. The applicable rate for industrial customers shall be negotiated and memorialized by written agreement. See § 50.72(D)(3).
(E) Applicable technical standards. The customer’s solar generation facility shall comply with all requirements of the National Electrical Safety Code, American National Standards Institute, Institute of Electrical and Electronic Engineers, American Society of Mechanical Engineers, and any other applicable local, state, or national code. The customer shall operate the solar generation facility according to prudent present practice within the electrical power industry. In case of any conflict in the foregoing codes or standards, the town, in its sole discretion, will determine which codes or standards govern.
(F) Switching equipment. Switching equipment capable of isolating the solar generation facility from the town’s electrical distribution system shall be accessible to the town or its agent at all times.
(G) Operation of switching equipment. At its option, the town or its agent may choose to operate, without notice or liability, the switching equipment described in division (E) of this section if, in the opinion of the town or its agent, continued operation of the solar generation facility and/or its connection with the town’s electrical distribution system may create or contribute to a system emergency or safety hazard. The town’s obligation to purchase energy from the solar generation customer ceases when the town or its agent operates the switching equipment described in division (E) of this section. The town shall endeavor to minimize any adverse effects of such operation on the customer’s solar generation facility.
(H) Indemnification. The solar generation customer shall indemnify and hold harmless the town from any and all liability arising from the operation and interconnection of the customer’s solar generation facility. The solar generation customer shall bear full responsibility for the installation and safe operation of the solar generation facility and the generation and delivery of energy to the point of interconnection.
(I) Other insurance. If a solar generation customer employs any person to operate and/or maintain the customer’s solar generation facility, the customer shall obtain and maintain: (1) public liability insurance covering bodily injury and property damage in an amount not less than $5,000,000 per occurrence; and (2) worker’s compensation insurance as required by law. Each public liability policy shall name the town as an additional insured.
(J) Exclusions from liability. The town shall not be liable to a solar generation customer, any customers of a solar generation customer, or any other person or entity, under any contract, tort, or any other legal theory, for:
(1) Lost generation revenue;
(2) Loss of use, revenue, or profit;
(3) Cost of capital;
(4) Substitute use or performance; or
(5) Any other incidental, indirect, special, or consequential damages.
(K) Information regarding cost effectiveness of customer’s solar generation facility. The town shall provide upon request sufficient data to allow a solar generation customer to determine the cost effectiveness of customer’s solar generation facility, but only after the customer and the town have entered a valid interconnection agreement and customer’s solar generation facility has been in operation for at least one month. The town’s obligation to provide this information is limited to providing copies of existing documents and information pursuant to A.R.S. §§ 39-121 through 39-161.
(L) Advance payment. The solar generation customer shall provide an advance payment to the town for all costs associated with the installation and processing of a request for interconnection, including but not limited to bidirectional metering equipment, any related metering, switching, or relaying equipment, engineering studies, inspections, third-party contractors retained by the town, safety provisions, and administrative costs.
(M) Customer bears costs of interconnection. The solar generation customer shall be responsible for all costs related to establishing an interconnection between the customer’s solar generation facility and the town’s electrical distribution system, including but not limited to any and all metering equipment. At the town’s option, the costs of interconnection may be amortized over a period of time not to exceed one year.
(N) Emergency disconnection. The town may suspend or discontinue an interconnection agreement with a solar generation customer during an emergency affecting the town’s electrical distribution system or due to a major force beyond the town’s control, provided that the suspension or discontinuation does not discriminate on any basis prohibited by law.
(Ord. 2021-001, passed 8-24-2021)