(A) Designation: Net Energy Metering Rate (NEM).
(B) Availability.
(1) This rate is available to any permanent residential, commercial, or industrial NEM customers in any area served by the MADISONVILLE Municipal Electric Department (MMED) electric system in accordance with MMED's terms and conditions for providing electric service. NEM is available only by request, and on a first-come, first-served basis up to a cumulative capacity of one percent (1%) of the MMED's single hour peak load during the previous year. An eligible NEM customer shall mean a retail electric NEM customer of the MIMED with a generating facility that:
(a) Generates electricity using solar energy or wind energy only;
(b) Has a rated capacity of not greater than thirty (30) kilowatts;
(c) Is located on the NEM customer's premises;
(d) Is owned and operated by the NEM customer;
(e) Is connected in parallel with the MMED's electric distribution system; and
(f) Has the primary purpose of supplying all or part of the NEM customer's own electricity requirements.
(2) The term "NEM customer" hereinafter shall refer to any NEM customer requesting or receiving NEM services in accordance with MMED's terms and condition for providing electric service. At its sole discretion MMED may discontinue this NEM schedule and application with ninety (90) days written notification. MMED shall not be liable for any expense inured as a result of the determination to discontinue this schedule.
(C) Metering. MMED requires any NEM customer, who wishes to install a generator that meets the criteria above or has been approved by MMED for the NEM ordinance, to allow the installation of meter(s) for the sole purpose of separately monitoring (i) the flow of power and energy, as applicable, from MMED to the NEM customer and (ii) the flow of power and energy, as applicable, from the NEM customer to MMED. The meter(s) will be owned and installed by MMED in accordance with MMED's Policies and Procedures for Electric MMED Service.
(D) Measurement of energy. Energy supplied by MMED to the NEM customer shall be determined by appropriate meter(s) located at one delivery point. Such meter(s) shall be capable of determining energy associated with MMED providing energy to the NEM customer under the rate schedule appropriate for such deliveries. The energy delivered by the NEM customer to MMED shall be metered separately for billing purposes.
(E) Monthly charges for delivery from MMED to the NEM customer. Charges for energy delivered by MMED to the NEM customer shall be determined according to the rate schedule appropriate or applicable for the NEM customer per MMED's standard rate classifications. In addition to MMED's standard rates, a second meter charge will be assessed in the amount stated below. This meter charge will be associated with the meter measuring NEM customer deliveries to MMED.
Customer Meter Charge: $50.00 per month
(F) Monthly credits for electrical energy delivered by NEM customer to MMED. An energy credit rate from MMED to the NEM customer shall be applied to any electrical energy delivered by the NEM customer to MMED. The NEM customer credit rate shall be equal to MMED's average per kWh wholesale power costs as determined by summing (i) MMED's per kWh Power Cost Adjustment (PCA) shown in MMED's Policies and Procedures plus (ii) the wholesale power cost in MMED's base rates of $ 0.04610 per kWh, as updated from time to time and. The monthly credit will be determined by multiplying the per kWh energy credit rate by the monthly energy in kWhs (adjusted for losses) delivered by the NEM customer to MMED.
(G) Monthly bills and credits. For purposes of determining monthly bills for NEM customers, the monthly credit for energy delivered by the NEM customer to MMED will be subtracted from charges for energy delivered by MMED to the NEM customer, if the net amount is greater than zero, then the NEM customer will be billed for the net amount. If the net amount is less than zero, then MMED will credit the charges to the NEM customer's bill on a monthly basis in the amount of the total credit. MMED will read both NEM customer meters and calculate the appropriate billing for each meter on a monthly basis. Any credits will be carried forward to future billing cycles, for the life of account. Under net metering MMED will not return money to the customer for such generation.
(H) Application and approval process.
(1) The NEM customer shall submit an Application and fee for Interconnection and Net Metering (Application) and receive approval from MMED prior to connecting the generator facility to MMED's system. Applications will be submitted by the NEM customer and reviewed and processed by MMED. Application must contain approved drawings and plans and be approved by a Kentucky licensed electrical engineer prior to MMED approval. In the event customer needs MMED to provide those services MMED will be reimbursed all costs associated with approval and design of site plans and engineering services associated with the NEM application process. MMED may reject an Application for violations of any code, standard, or regulation related to reliability or safety; however, the MMED will work with the NEM customer to resolve those issues to the extent practicable. NEM customers may contact the MMED to check on status of an application or with questions prior to submitting an Application.
(2) A Level I (wind) Application shall be used if the generating facility is inverter-based and is certified by a nationally recognized testing laboratory to meet the requirements of Underwriters Laboratories Standard 1741 "Inverters, Converters, Controllers and Interconnection System Equipment for Use With Distributed Energy Resources" (UL 1741).
(3) A Level 2 (solar) Application is required under any of the following conditions:
(a) The generating facility is not inverter based;
(b) The generating facility uses equipment that is not certified by a nationally recognized testing laboratory to meet the requirements of UL 1741; or
(c) The generating facility does not meet one or more of the additional conditions under Level 1.
(4) Application forms and information regarding the NEM program can be obtained by contacting MMED.
(I) Application fee. Upon submission of the required application to MMED customer shall pay a nonrefundable application fee of one hundred fifty dollars ($150.00).
(J) Terms and conditions. To interconnect to the MMED's distribution system, the NEM customer's generating facility shall comply with the following terms and conditions:
(1) The MMED shall provide the NEM customer metering services through a standard kilowatt-hour metering system capable of separately measuring (a) the power and energy, as applicable for billing purposes, from MMED to the NEM customer the (b) the energy delivered by the NEM customer to MMED. If the NEM customer requests any additional meter or meters or distribution upgrades, such installations shall be at the NEM customer's expense.
(2) The NEM customer shall install, operate, and maintain, at NEM customer's sole cost and expense, any control, protective, or other equipment on the NEM customer's system required by the MMED’s technical interconnection requirements based on IEEE 1547, the NEC, accredited testing laboratories such as Underwriters Laboratories, and the manufacturer's suggested practices for safe, efficient and reliable operation of the generating facility in parallel with MMED's electric system. NEM customer shall bear full responsibility for the installation, maintenance and safe operation of the generating facility. Upon reasonable request from the MMED, the NEM customer shall fully demonstrate generating facility compliance. Should NEM customer request assistance related to the generation system performance or safety those cost will be at the customer's expense at the current MMED hourly rate as stated in MMED's rate ordinance.
(3) The generating facility shall comply with, and the NEM customer shall represent and warrant its compliance with: (a) any applicable safety and power quality standards established by |EEE and accredited testing laboratories such as Underwriters Laboratories; (b) the NEC as may be revised from time to time; (c) MMED's rules, regulations, and MMED's Service Regulations as contained in MMED's Retail Electric Ordinance as may be revised from time to time (d) all other applicable local, state, and federal codes and laws, as the same may be in effect from time to time. Where required by law or regulation, NEM customer shall pass an electrical inspection of the generating facility by a local authority having jurisdiction over the installation.
(4) Any changes or additions to the MMED's system required to accommodate the generating facility shall be considered excess facilities. NEM customer shall agree to pay MMED for actual costs incurred for all such excess facilities prior to construction.
(5) NEM customer shall operate the generating facility in such a manner as not to cause undue fluctuations in voltage, intermittent load characteristics or otherwise interfere with the operation of MMED's electric system. At all times when the generating facility is. being operated in parallel with MMED's electric system, NEM customer shall so operate the generating facility in such a manner that no adverse impacts will be produced thereby to the service quality rendered by MMED to any of its other NEM customers or to any electric system interconnected with MMED's electric system. NEM customer shall agree that the interconnection and operation of the generating facility is secondary to, and shall not interfere with, MMED's ability to meet its primary responsibility of furnishing reasonably adequate service to its NEM customers.
(6) NEM customer shall be responsible for protecting, at NEM customer's sole cost and expense, the generating facility from any condition or disturbance on MMED's electric system, including, but not limited to, voltage sags or swells, system faults, outages, loss of a single phase of supply, equipment failures, and lightning or switching surges. Should such condition or disturbance be determined to be NEM equipment, NEM customer shall reimburse MMED for any and all expenses incurred to determine such disturbance.
(7) After initial installation, MMED shall have the right to inspect and/or witness commissioning tests, as specified in the Level 1 or Level 2 Application and approval process. Following the initial testing and inspection of the generating facility and upon reasonable advance notice to NEM customer, MMED shall have access at reasonable times to the generating facility to perform reasonable on-site inspections to verify that the installation, maintenance, and operation of the generating facility comply with the requirements of this section.
(8) For Level 1 and 2 generating facilities, where required by the MMED, an eligible NEM customer shall furnish and install on the NEM customer's side of the point of common coupling a safety disconnect switch which shall be capable of fully disconnecting the NEM customer's energy generating equipment from MMED's electric service under the full rated conditions of the NEM customer's generating facility. The external disconnect switch (EDS) location will be determined by MMED and shall be located adjacent to MMED's meters. If the location of the EDS is not at the customer's master meter, it shall be noted by placing a permanent sticker on the master meter indicating the EDS location. The EDS shall be of the visible break type in a metal enclosure which can be secured by a padlock. If the EDS is not located directly adjacent to the master meter but at the NEM generator meter, the NEM customer shall be responsible for ensuring that the location of the EDS is properly and legibly identified for so long as the generating facility is operational. The disconnect switch shall be promptly accessible to MMED personnel at all times. In the event MMED disconnects customer generation MMED will not be held liable for any damages or revenue loss as a result from such disconnect.
(9) MMED shall have the right and authority at MMED's sole discretion to isolate the generating facility or require the NEM customer to discontinue operation of the generating facility if MMED believes that: (a) continued interconnection and parallel operation of the generating facility with MMED's electric system creates or contributes (or may create or contribute) to a system emergency on either MMED's or NEM customer's electric system; (b) the generating facility is not in compliance with the requirements of this ordinance, and the noncompliance adversely affects the safety, reliability, or power quality of MMED's electric system; or (c) the generating facility interferes with the operation of MMED's electric system. In non-emergency situations, MMED shall give NEM customer notice of noncompliance including a description of the specific noncompliance condition and allow NEM customer a reasonable time to cure the noncompliance prior to isolating the generating facilities. In emergency situations, when the MMED is unable to immediately isolate or cause the NEM customer to isolate only the generating facility, the MMED may isolate the NEM customer's entire facility. Any cost incurred by MMED as a result of the improper performance of NEM equipment or operation shall be promptly reimbursed by NEM customer. Any such unpaid expense shall be grounds for service termination at any of NEM customer's facilities.
(10) NEM customer shall agree that, without the prior written permission from MMED, no changes shall be made to the generating facility as initially approved. Increases in generating facility capacity will require a new "Application for Interconnection and Net Metering" which will be evaluated on the same basis as any other new application. Repair and replacement of existing generating facility components with like components that meet UL 1741 certification requirements for Level 1 or 2 facilities and not resulting in increases in generating facility capacity is allowed without written approval. However, MMED must be notified to inspect the repaired component/operation prior to continued operation. Failure to do so will result in termination of service.
(11) To the extent permitted by law, the NEM customer shall protect, indemnify, and hold harmless the MMED and its directors, officers, employees, agents, representatives and contractors against and from all loss, claims, actions or suits, including costs and attorneys fees, for or on account of any injury or death of persons or damage to property caused by the NEM customer or the NEM customer's employees, agents, representatives and contractors in tampering with, repairing, maintaining, or operating the NEM customer's generating facility or any related equipment or any facilities owned by the MMED.
(12) The NEM customer shall maintain general liability insurance coverage at all times through a standard homeowner's, commercial, or other policy} for both Level 1 and Level 2 generating facilities. NEM customer shall, upon request, provide MMED with proof of such insurance at the time that application is made for net metering and provide a certificate of liability insurance on an annual basis in accordance with City requirements. Such certificate shall name the City of Madisonville as "Certificate Holder". All of the policies of insurance so required to be purchased and maintained for the certificates or other evidence thereof shall contain a provision or endorsement that the coverage afforded will not be cancelled, materially changed or renewal refused until at least thirty (30) days' prior written notice has been given to the MMED by certified mail. All such insurance shall remain in effect until written notice and verification that NEM facilities are rendered inoperative and completely disconnected from MMED's utility system. The limits of liability for the insurance required above shall provide coverage for not less than the following amounts or greater amounts where required by laws and/or regulations:
General Liability
Commercial General Liability (each occurrence) $1,000,000.00
General Aggregate $1,000,000.00
Products - Comp/OpAGG $1,000,000.00
Personal and Adv Injury $1,000,000.00
Fire Damage (each occurrence) $500,000.00
Medical Expense (any one person) $100,000.00
Excess Liability
Umbrella Form (each occurrence) $1,000,000.00
Aggregate $1,000,000.00
If at any time it is determined that such insurance is invalid, MMED shall immediately disconnect NEM from the electric distribution system.
(13) By entering into an Interconnection Agreement, or by inspection, if any, or by non- rejection, or by approval, or in any other way, MMED does not give any warranty, express or implied, as to the adequacy, safety, compliance with applicable codes or requirements, or as to any other characteristics, of the generating facility equipment, controls, and protective relays and equipment.
(14) A NEM customer's generating facility is transferable to other persons or service locations only after written notification to the MMED has been made and verification that the installation is in strict compliance with this section. Upon written notification that an approved generating facility is being transferred to another person, NEM customer, or location, the MMED will verify that the installation is in compliance with this ordinance and provide written notification to the NEM customers) within 20 business days. If the installation is no longer in compliance with this ordinance, the MMED will render it inoperative and notify the NEM customer in writing and identify what must be done to place the facility in compliance.
(K) Payment. Bills are due and payable when rendered and become delinquent on the 15th day after the date of issue. A penalty of ten (10%) percent may be added to all such bills. Applicable credit payments by MMED to the NEM customer will be included in each cycle billing. Under net metering MMED will not return money to the customer for such generation.
(Ord. 2012-07, passed 10-1-12)