(A) Requirements. In order to provide for the safety of customers, Utility personnel, and others, and to assure reliable electric service consistent with the requirements of the Public Utility Regulatory Policies Act of 1978, being 16 U.S.C. §§ 2601 et seq., the following requirements are established for the interconnection and operation of customer-owned Distributed Generation (DG) Facilities in parallel with the city’s Electric Utility (Utility) Distribution System:
(B) Definitions. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
AVOIDED COST RATE. The cost of the power, as set by the Utility’s wholesale power supplier, that is not purchased by the Utility when a DG facility delivers excess power to the Distribution System.
CUSTOMER. Any account of the Utility in good standing and receiving retail electric power service from the Utility’s Distribution System.
DISTRIBUTED GENERATION (DG) FACILITY. The customer’s device(s) for the conversion of energy to electricity, as identified in the interconnection application.
DISTRIBUTION SYSTEM. The facilities and equipment owned by Utility and used to deliver electricity to homes and industries.
INTERCONNECTION APPLICATION. A customer’s formal request to interconnect a new DG facility to the Utility’s Distribution System, or make a material modification to the operating characteristics of an existing DG facility that is interconnected to the Utility’s Distribution System.
RENEWABLE ENERGY SOURCES. Any naturally occurring and theoretically inexhaustible source of energy, including biomass, solar, wind, tidal wave, and water current (e.g., run-of-river hydroelectric) resources, that are not derived from fossil or nuclear fuel.
(C) Availability and participation requirements. The requirements in this chapter apply to all customer-owned DG Facilities. Any customer may make a request to interconnect a DG facility by completing the Utility’s interconnection application and submitting it to the Utility for review with all applicable charges as established by resolution of Council. Once the Utility has determined that the DG facility complies with all applicable safety and reliability standards, including but not limited to this chapter, ANSI/IEEE Std. 1547, UL 1741, National Electrical Code, and the state’s Electrical Code, the customer and the Utility shall execute a DG interconnection agreement. Proposed DG Facilities will be handled on a case-by-case basis at the discretion of the Utility and will be subject to a review process that may take into account the impact of the interconnection on reliability, rates, power supply agreements, and local and regional system planning. DG Facilities must be interconnected on the customer side of the Utility’s metering, serving only the customer’s premises, and must be intended to offset a portion or all of the customer’s requirements for electricity. If the customer does not meet all of the requirements listed in this chapter, the Utility may terminate parallel operation of the DG facility and the customer shall be liable for any damages or injury resulting from unauthorized or improper interconnection and/or operation of the DG facility. These requirements apply to both existing and proposed installations. The customer shall be responsible for procuring and complying with all building, electrical, operating, and environmental permits that are required by any governmental authority having jurisdiction for the type of DG facility and for the necessary ancillary structures to be installed. The DG facility is subject to inspection by duly authorized agents of the city before commencement of parallel operation. In addition, the Utility may, at its discretion, inspect or test the facility at any time. The customer shall pay for all costs associated with any addition to, or alteration of, the Utility’s equipment for the safe and reliable operation of the customer’s generating equipment in parallel with the Utility’s Distribution System. The customer shall also pay for costs of changes required due to safety or adverse effects on other customers and/or on the Utility caused by the interconnection and/or operation of the DG facility.
(D) Safety and reliability requirements. The DG facility’s Control and Protection System shall provide for immediate automatic shutdown or separation of the customer’s generator and the Utility System in the event of momentary or extended loss of power from the Utility, including loss of one or more phases if the customer is generating three phase power. The shutdown or separation must continue until normal Utility service is restored. The shutdown or separation shall occur when frequency, voltage, and/or current deviate from normal Utility standards. The customer shall be liable if the customer’s protection system fails to function. A safety disconnect device suitable for use as a protective tag location may be required so as to be accessible, visible, and in reasonably close proximity to the billing meter. The customer shall advise the Utility prior to making any revisions to the DG facility, the control system, or the interface between the two power systems after the installation. Any such revision must be acceptable to the Utility.
(E) Net energy billing. Net energy billing is available only to customers who operate DG Facilities using renewable energy sources with a nameplate capacity of 20 kWAc or less, and are interconnected with the Utility’s Distribution System, to generate a portion or all of the customer’s own electricity. DG Facilities using non-renewable energy sources are not eligible for credit of excess generation. The customer’s net energy consumption shall be determined by a single meter installed by the Utility measuring delivered and received power flow. When a customer’s monthly net energy consumption results in a net flow of energy from the Utility to the customer, the customer shall pay the full retail rate as listed in the Council approved city fee schedule. When the customer’s monthly net energy consumption results in a net flow of energy from the customer to the Utility, the customer shall be credited the net energy billing avoided cost rate for the energy provided to the Utility as listed in the Council approved city fee schedule. Net energy billing will be done on a monthly basis. The credit for any excess generation, as determined by each month’s meter reading, shall be credited against the following month’s bill. Any credit carried forward to the following month that is not used up that month shall be carried forward for use in subsequent billing periods. If a customer terminates service with the Utility while having a net energy billing credit amount on their account, the Utility shall refund the remaining credit amount to the customer following a final meter reading by the Utility. Customers shall be eligible to continue participation in net energy billing for a minimum period of ten years under the terms of net energy billing in effect at the time of enrollment. A participating customer may terminate net energy billing at any time for any reason.
(F) Utility purchase of excess DG facility output. An excess DG facility output avoided cost rate will be applied to customers who operate DG facilities with a nameplate capacity greater than 20 IcWac using renewable energy sources, and are interconnected with the Utility’s Distribution System, to generate a portion or all of the customer’s own electricity. DG Facilities using non-renewable energy sources are not eligible for credit of excess generation. The customer’s energy consumption and production shall be determined by a single meter installed by Utility measuring power flow in each direction. The customer shall pay the full retail rate as listed in the Council approved city fee schedule for all energy that flows from the Utility to the customer. The customer shall be credited at the Utility’s excess DG facility output avoided cost rate for excess energy that flows from the customer to the Utility as listed in the Council approved fee schedule. Excess DG facility output billing will be done on a monthly basis.
(Ord. passed 1-10-2019)