(a) Definitions. As used in this section:
(1) "Avoided costs" means the incremental costs to an electric utility of electric energy or capacity, or both, which, if not for the purchase thereof from qualifying facilities, such utility would generate itself or purchase from another source.
(2) "Cogeneration facility" means a facility which produces electric energy and steam or other forms of useful energy (such as heat) which are used for industrial, commercial, heating or cooling purposes.
(3) "Interconnection costs" means the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions and administration incurred by the electric utility, which costs are directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations with a qualifying facility, to the extent such costs are in excess of the corresponding costs which the electric utility would have incurred if it had not engaged in interconnected operations but instead generated an equivalent amount of electric energy itself or purchased an equivalent amount of electric energy or capacity from other sources. Interconnection costs do not include any costs involved in the calculation of avoided costs.
(4) "Qualifying cogeneration facility" means a cogeneration facility that meets the requirements of the Federal Energy Regulatory Commission regarding ownership, fuel use and operating and efficiency standards.
(5) "Qualifying small power production facility" means a small power production facility that meets the requirements of the Federal Energy Regulatory Commission regarding ownership, fuel use, fuel efficiency and reliability.
(6) "Small power production facility" means a facility which produces electric energy solely by the use, as a primary energy source, of biomass, waste, renewable resources or any combination thereof totaling not more than eighty megawatts at one site.
(b) Application for Interconnection Standards Costs.
(1) Qualifying facilities wishing to interconnect with the electric system of the City shall make application to the Utility Department for such interconnection. Applicants shall use such forms as are prescribed by the City and shall furnish all information requested.
(2) The City shall establish reasonable standards to be met by qualifying facilities to ensure system safety and the reliability of interconnected operations. Such standards may include, but shall not be limited to, the following areas: power factor; voltage regulation; fault, overcurrent and over-under voltage protection; harmonics; synchronization; and isolation. Interconnection costs associated with the interconnection with a qualifying facility shall be paid by such qualifying facility. Qualifying facilities shall be required to execute contractual agreements with the City before any interconnection is established.
(c) Rates for Sale of Energy. Rates for the sale of electric energy to a qualifying facility shall be those current standard rates adopted from time to time by resolution of the Mayor and Council which apply to other customers of the utility in the same classification of electric service.
(d) Rates for Purchase of Energy.
(1) Rates for the purchase of electric energy from qualifying facilities shall be established by resolution of the Mayor and Council.
(2) Such rates shall be just and reasonable to the electric consumer of the utility and in the public interest, shall not discriminate against qualifying cogeneration and small power production facilities and shall be related to avoided costs. However, in no case shall the utility be required to pay more than the avoided costs.
(3) Standard rates shall be established for purchases of electric energy from qualifying facilities with a design capacity of 100 kilowatts or less. Rates for purchases from qualifying facilities with a design capacity over 100 kilowatts may be standard rates or may be by individual contracts, the terms of which are fair and reasonable.
(Ord.989. Passed3-23-81.)