(a) Availability. This schedule is available to consumers with small power production facilities which qualify under § 210 of the Public Utility Regulatory Policies Act of 1978, being 16 U.S.C. §§ 2601 et seq., and which have a total design capacity of 100 kilowatts or less. Power generated by the consumer’s facilities will be purchased by the city under this schedule. Power will be sold to the consumer under the terms of the applicable rate schedule.
(b) Type of service. Type of service is 60 hertz, alternating current. Installations of 10 kW capacity shall be 240 volt, single phase. Installations with greater than 10 kW capacity shall be three phase at the city’s standard voltages unless otherwise specified by the city.
(c) Monthly rate.
(1) Energy.
A. Energy shall be purchased from the consumer at a rate equal to the energy and energy-related adjustment charges that would have been applied by the city’s wholesale power supplier if it had supplied the energy which was purchased from the consumer. This rate is: $.02504 per kWh plus fuel adjustment.
B. The above rate will be increased or decreased for price changes in the energy component of the rate with which the city purchases wholesale power.
(2) Demand.
A. From any consumer who chooses to install and maintain, solely at its expense, the necessary metering equipment to verify that the consumer-supplied capacity has reduced the city’s wholesale billing demand units, demand shall be purchased at a rate equal to that which would have been used by the city’s wholesale power supplier if it had supplied the capacity. Such charge shall be applied to the reduction in the wholesale billing demand units. This rate is: $9,993 per kW per month.
B. The above rate will be increased or decreased for price changes in the demand component of the rate with which the city purchases wholesale power.
(d) Interconnection charge. Interconnection costs shall be paid by the consumer. Interconnection costs are defined as the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions and administrative costs incurred by the city directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operation with the consumer’s facilities to the extent such costs are in excess of the corresponding costs which the city would have incurred if it had not engaged interconnected operations but instead, purchased an equivalent amount of energy or capacity from other sources. Payment of the one-time interconnection charges shall be made by either of the following methods:
(1) The estimated full amount to be paid in advance of construction. Adjustments to correct for the difference between the actual and estimated costs shall be billed or credited immediately following completion of the construction job closeout; or
(2) The amortized total cost, payable in equal monthly or annual installments over a three-year period, or such other period as may be mutually agreeable plus interest on the unpaid balance. Under this method, the consumer may be required to purchase a surety bond with the city as beneficiary to guarantee payment of the total cost. Interest on the unpaid balance shall be the prime rate at June 30 of each year plus 1%.
(e) Terms of payment. The city shall make payments to the consumer quarterly within 30 days of the end of each period.
(f) Terms of connection. Interconnection of the consumer’s generation facilities with the city’s system will be permitted only under the terms of a contract between the consumer and the city. The minimum contract term shall be five years.
(Ord. 96-03, passed 4-23-1996)