Customers who generate a portion or all of their own electrical needs and provide any excess generation to the City of Shelby’s system shall receive a billing credit equal to the city’s wholesale cost of energy, adjusted to include line losses. This billing credit shall be provided to the customer under a net metering rate schedule subject to the following terms and conditions:
(a) Limitations. Billing under this schedule is limited to customers who operate a generating facility utilizing renewable energy source electric generating technology. The eligible facilities must be installed on the customer’s premises. The maximum size of the electric generation eligible for net metering is 10 kW or under for residential units and 100 kW or under for commercial or industrial units. To qualify for this schedule, customer’s non-dispatchable (solar/wind) generating units will be limited in size, not to exceed customer’s annual self-service energy needs, measured in kWh. The customer property at the distributed generation site’s usage history over the last three years, if available, shall be used as a benchmark for determining this kWh total. If a customer has more than one generator, to qualify for this schedule, the total capacity of the generators shall be less than the maximum listed above. The City of Shelby may restrict or deny service under this schedule once the total connected generation provided under this schedule equals or exceeds 1% of the City of Shelby’s previous year’s peak demand. The customer’s facility must comply with the City of Shelby’s existing interconnection rules and regulations.
(b) Monthly rate. Deliveries from the city to the customer shall be billed in accordance with the standard applicable rate schedules.
(c) Customer credits for net excess generation (NEG). Net excess generation (NEG) represents the amount of electric generation by the customer beyond the customer’s own metered usage which is delivered to the City of Shelby during the billing period. Deliveries from the customer to the City of Shelby shall be credited at the wholesale purchase price (base rate) of electricity purchased by the City of Shelby for the month of the billing cycle. The credit to the customer shall not exceed the dollar amount the City of Shelby bills the customer for energy consumption in any billing period. Instead, the net excess dollar amount shall be allowed to accumulate as an NEG credit to offset the customer’s energy charges in the next billing period. The credit will be adjusted based on the currently used power cost adjustment. NEG credits, if any, will be carried over from month to month. Upon an account being closed, a final kWh reading shall be taken from the net electric meter. If the accumulative kWh balance is a credit owed to the account holder, the net kWh credits due, shall be paid to the account holder. The amount owed to the account holder shall be calculated by multiplying the final net kWh balance by the most recent fuel and purchase power cost adjustment. The sum will be the amount owed to the account holder. The credit shall be paid within 60 days after the account is closed.
(Ord. 25-2016, passed 10-3-2016)