HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/02/2010 - ITEMS RELATING TO NET METERED ELECTRIC SERVICE AND DATE: February 2, 2010 A •
STAFF: Steve Catanach - 0
Items Relating to Net Metered Electric Service and Interconnection Standards of Electric Generation Facilities to the
Fort Collins Electric Distribution System.
A. Second Reading of Ordinance No. 003, 2010, Amending Chapter 26, Article VI of the City Code Relating to
Net Metered Electric Service.
B. Second Reading of Ordinance No. 004, 2610, Adopting Standards for Interconnection of Electric Generation
Facilities to the Fort Collins Electric Distribution System.
EXECUTIVE SUMMARY
The proposed net metering rate and interconnection standards have been developed with the goal of establishing rates
and standards that encourage and facilitate the installation of renewable generation within our community.
The net metering language establishes limits similar to those established by the Colorado Legislature through Colorado
Revised Statute§40-2-124,and subsequently by the Colorado Public Utilities Commission(PUC)for customers served
by investor owned utilities. The PUC has established net metering limits at 120% of annual consumption. The PUC
also enacted language limiting the installation to the capacity of the service entrance.
The proposed interconnection standards have been developed to support the adoption of a net metering rate that
enables customers to install renewable generation capable of supplying up to 120% of their annual kilowatt-hour
consumption. The standards define the requirements of the connection between the utility and the customer's
generator to insure a safe connection that protects the distribution system,adjacent customers,the generator and the
customer. These Ordinances were unanimously adopted on First Reading on January 19, 2010.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary-January 19, 2010.
(w/o attachments)
ATTACHMENT
DATE: January 19, 2010 AGENDA ITEM SUMMARY
STAFF: Steve Catanach FORT COLLINSCOUNCIL
Items Relating to Net Metered Electric Service and Interconnection Standards of Electric Generation Facilities to the
Fort Collins Electric Distribution System.
A. Hearing and First Reading of Ordinance No. 003, 2010, Amending Chapter 26, Article VI of the City Code
Relating to Net Metered Electric Service.
B. Hearing and First Reading oft Ord a NZo. 004, 2010Ad p ngG'Standards for Interconnection of Electric
Generation Facilities to the Fort Electric Distribution Sys .
EXECUTIVE SUMMARY J�
The proposed net metering rate and interconnection standards have been developed with the goal of establishing rates
and standards that encourage and facilitate the installation of renewable generation within our community.
As requested, staff is proposing net metering language that establishes limits similar to those established by the
Colorado Legislature through Colorado Revised Statute§40-2-124, and subsequently by the Colorado Public Utilities
Commission (PUC)for customers served by investor owned utilities. The PUC has established net metering limits at
120%of annual consumption. The PUC alsovenacted-languageclimiting•the•installation to the capacity of the service
entrance. �� (( )elo P
\�The proposed interconnection standardav been deb ped to supplo�the adoption of a net metering rate that
enables customers to install renewable generation capable of supplying up to 120% of their annual kilowatt-hour
consumption. The standards define the requirements of the connection between the utility and the customer's
generatorto insure a safe connection that protects the distribution system, adjacent customers,the generator and the
customer.
BACKGROUND / DISCUSSION
At the May 19,2009, Fort Collins City Council meeting, Council adopted on First Reading, a net metering ordinance.
However, at that meeting, Council asked,stafffto ada1kguage-th4at more clearly defined generation limits. On June
2,2009, Council tabled the Second Reading of a(proposed net metering\ate ordinance. Prior to the Council meeting
on June 2, 2009, Council expressed a desire toladopt nett metering levels similar to those that were adopted by the
State of Colorado through C.R.S. §40�2 12of4/Theme%set I tits at 120% of of consumption in the Colorado Code of
Regulations§723-3-3664. Consideration the net metering rate ordinance was postponed to allow staff to develop
interconnection standards that would define interconnection requirements specific to the Fort Collins distribution
system and define settings that considered the level of potential generation defined in C.R.S. §40-2-124. Staff is
presenting the attached optional net metering language and interconnection standards for City Council consideration.
The specific language as adopted by the PUC in response to C.R.S. §40-2-124 is provided below:
3664. Net Metering.
(a) All investor owned QRUs (Qualified R�1 Utility) s all_alllow�tf a customer's retail electricity
consumption to be offset by the,electricityygenerated'from eligible energy resources on the customer's
side of the meter that are interconnected 'with the Qi'U1 ,=provided,tffat the generating capacity of the
customer's facility meets the foll�ow_i�tw`o c� ritelia:H
(1) The generator shall be sized to supply no more than 120 percent of the customer's average
annual electricity consumption at that site, where the site includes all contiguous property
January 19, 2010 -2- ITEM 14
owned or leased by the consumer, without regard to interruptions in contiguity caused by
easements, public thoroughfares, transportation rights-of-way, or utility rights-of-way; and
(II) The rated capacity of the generator does not exceed the customer's service entrance
capacity.
Staff is proposing adoption of the same limits as defined in (1)and (II) above.
Staff has developed and is proposing adoption of the Standards for Interconnection of Electric Generation Facilities
to the Fort Collins Electric Distribution System (the "Standards"). The Standards provide a guideline for customers
who want to connect a generator to the Fort Collins electrical distribution system. The Standards have been developed
to enable connection of different types of electric generation,`including.inverte�based, such as solar photovoltaic and
small wind generation, induction and synchronous generators:rThe Standards insure a safe connection that protects
( 1 rt i i i %k A'
the customer,the generator,adjacent customers and the Fdistribution system. Additionally,the Standards facilitate the
installation of distributed generators Oproviding clear requirements to customers.
\4� \�
Historically, Light and Power has applied the Institute of Electrical and Electronics Engineers (IEEE) standard 1547
as the guideline for existing interconnection requirements. In order to maximize the level of distributed generation on
the system and ensure the continued safe operation of the system,Light and Power staff worked with NEI Engineering,
specifically Dr. Keith Malmedal and Dr. P.K. Sen, to develop interconnection standards specific to the Fort Collins
distribution system.
FINANCIAL IMPACT
The proposed net metering rate requi re Collins Utilities to purchase ess annual kilowatt-hour production
generated by the customer's generator,at the customer's retail•energy rate. As the number and size of net metered
customers grows, the financial impact"e rate is haviin on Light and Power revenues will need to be reviewed.
Currently the City has less than 50 net metered customers-and has ma4payment to two.
SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS
The overarching goal in the development of the net metering rate and the Standards is to develop rates and standards
that facilitate the installation of renewable generation in the community. The intent of providing net metering to
customers is to ensure that customers are given the full value for the energy generated and are allowed credit for any
excess energy generated. Ensuring that customers can obtain the maximum value from the utility towards their
investment in renewable generation encourages installation T;his`benefits both the customer and the environment.
Approximately 1.61 pounds of CO2 are avoided for each1/ 1�kilowati-hou,ssaavved.
STAFF RECOMMENDATION
Staff recommends that the adoption of the net metering rate setting the maximum qualified generation to 120% of
consumption, not exceed the capacity of the customer's service entrance. Staff also recommends adoption of the
Standards.
BOARD / COMMISSION RECOMMENDATION
r d
At its November 9,2009 meeting,the Electric Board voted unanimouslyto,recommendadoption of the Interconnection
Standards for Generating Facilities to`the Fort Go;lins distribution system, along with the recommendation to adopt
the option proposed net metering limits�s the maximum generation to 120 percent of consumption, but not to
exceed the capacity of the customer's service entrance.
January 19, 2010 -3- ITEM 14
At its January 6, 2010 meeting, the Electric Board reviewed the net metering ordinance language and voted
unanimously to recommend adoption of Ordinance No. 004, 2010. Minutes from the January 6, 2010 Electric Board
meeting will be provided to Council before the January 19, 2010 meeting.
PUBLIC OUTREACH
Staff provided draft copies of the interconnection standards to local solar installers and installation instructors for
comment. Comments were incorporated into the Standards.
On December 18, 2009, the Fort Collins Utilities mailed 244 notifications to out-of-City customers, notifying them of
the proposed changes to the Utility's rate code,,,and making them aware of the time and date of the City Council
meeting when the changes would be considered: Publionotice,of the changes and of the time and date they would
be considered was published in the ColorraadooaanYnn D�mb 0, 20091
J It
ATTACHMENTS
1. Electric Board minutes, November 9, 2009
2. PowerPoint presentation
COPY
COPY
ORDINANCE NO. 003, 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26, ARTICLE VI OF THE CODE OF THE CITY OF FORT
COLLINS RELATING TO NET METERED ELECTRIC SERVICE
WHEREAS,new forms of renewable energy are routinely becoming available to the City's
electric utility customers as well as the City; and
WHEREAS, in 2005, the City developed a pilot net metering service program designed to
allow customers who meet certain requirements to generate renewable energy and to use that energy
to reduce the amount of energy they purchase from the City; and
WHEREAS, the City currently has approximately 40 approved customers receiving net
metering service; and
WHEREAS,Colorado Revised Statutes,Section 40-2-124 requires each municipally owned
utility in the state of Colorado to allow a customer-generator's retail electricity consumption to be
offset by the electricity generated from eligible energy resources on the customer-generator's side
Of the meter for such generator's that are interconnections with the facilities of the municipal utility;
and
WHEREAS, staff believes that the City should offer net metering service beyond the
minimum threshold set by the State statute and offer such service to its customers at limits consistent
with those established by the Colorado Public Utilities Commission; and
WHEREAS, in view of the fact that the City Council recognizes and places high value on
the viability of the City's electric utility and on allowing City property owners to provide electric
service to their own properties under certain conditions, the Council has determined that the
amendments accomplished by this Ordinance are in the best interests of the City.
NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 26-391 ofthe Code ofthe City ofFort Collins is hereby amended
by the deletion of the definition of"IEEE 1547" in its entirety as follows:
Section 2. That the definition of"Parallel generation" contained in Section 26-391of
the Code of the City of Fort Collins is hereby amended to read as follows:
Parallel generation shall mean the operation of qualifying facilities when
interconnected with the utility system in accordance with the provisions of this
Chapter,the electric utility rules and regulations, and the City of Fort Collins Utility
Services Interconnection Standards for Generating Facilities Connected to the Fort
Collins Distribution System.
Section 3. That the definition of"Qualifyingfacility"contained in Section 26-391 of the
Code of the City of Fort Collins is hereby amended to read as follows:
Qualifying facility shall mean an electric-generating facility operated in
parallel with the City of Fort Collins electric distribution system that has been
inspected for compliance with the City of Fort Collins Utility Services
Interconnection Standards for Generating Facilities Connected to the Fort Collins
Distribution System, has been issued a "Permit to Operate" by the City, and is
operated under a valid "Interconnection Agreement" with the City of Fort Collins.
Section 4. That Section 26-391 ofthe Code of the City of Fort Collins is hereby amended
by the addition of a new definition"Net metering service"which reads in its entirety as follows:
Net meteringservice shall mean that service available to a customer-generator
operating a qualifying facility that is interconnected to the electric utility so that any
electric energy generated by the qualifying facility in excess of that used by the
qualifying facility is delivered to the electric utility system and used to offset metered
energy received by the customer-generator during the billing period.
Section 5. That Section 26-464 ofthe Code ofthe City of Fort Collins is hereby amended
to read as follows:
Sec. 26-464. Residential energy service, schedule R.
(j) Parallel generation. Operation or connection of any electric generator in parallel
with the utility system is not permitted under this schedule unless authorized by the
General Manager. See appropriate alternate schedules for this service. If a customer
is receiving net metering service, such customer's service shall also be governed by
the net metering service terms and conditions described in subsection(o)below.
(o)Net metering.
(1) Net metering service is available to a customer-generator producing electric
energy exclusively with a qualifying facility when the generating capacity of
the customer-generator's qualifying facility meets the following two criteria:
(a) the qualifying facility is sized to supply no more than one hundred
twenty (120) percent of the customer-generator's average annual
electricity consumption at that site,including all contiguous property
owned or leased by the customer-generator, without regard to
-2-
interruptions in contiguity caused by easements,public thoroughfares,
transportation rights-of-way, or utility rights-of-way; and
(b) the rated capacity of the qualifying facility does not exceed the
customer-generator's service entrance capacity.
(2) The energy generated by an on-site qualifying facility and delivered to the
utility's electric distribution facility shall be used to offset energy provided
by the utility to the customer-generator during the applicable billing period.
(3) The customer-generator and electric service arrangements shall be subject to
the requirements and conditions described in the City of Fort Collins Utility
Services Interconnection Standards for Generating Facilities Connected to the
Fort Collins Distribution System.
(4) A customer-generator who receives approval from the electric utility to obtain
net metering service shall be subject to the monthly rates described above in
this rate schedule section.
(5) The customer-generator's consumption of energy from the utility shall be
measured on a monthly basis and in the event that the qualifying facility has
produced more electricity than the customer-generator has consumed, the
customer-generator shall receive a monthly credit for such production.
During the second calendar quarter of each year,the customer-generator shall
receive payment for the net excess generation accrued for the preceding
twelve(12) months.
Section 6. That Section 26-465 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 26-465. Residential demand service, schedule RD.
(k) Parallel generation. Customers may operate all or part of their instantaneous
energy or capacity needs by operation of a qualifying facility in parallel with the
utility system, provided that electric service is being rendered under the special
services provisions of this schedule, and provided further that such facility is
constructed, operated and maintained in accordance with the provisions of the
electric service rules and regulations. If a customer is receiving net metering service,
such customer's service shall also be governed by the net metering service terms and
conditions described in subsection(q) below.
-3-
(q) Net metering.
(1) Net metering service is available to a customer-generator producing electric
energy exclusively with a qualifying facility when the generating capacity of
the customer-generator's qualifying facility meets the following two criteria:
(a) the qualifying facility is sized to supply no more than one hundred
twenty (120) percent of the customer-generator's average annual
electricity consumption at that site,including all contiguous property
owned or leased by the customer-generator, without regard to
interruptions in contiguity caused by easements,public thoroughfares,
transportation rights-of-way, or utility rights-of-way; and
(b) the rated capacity of the qualifying facility does not exceed the
customer-generator's service entrance capacity.
(2) The energy generated by an on-site qualifying facility and delivered to the
utility's electric distribution facility shall be used to offset energy provided
by the utility to the customer-generator during the applicable billing period.
(3) The customer-generator and electric service arrangements shall be subject to
the requirements and conditions described in the City of Fort Collins Utility
Services Interconnection Standards for Generating Facilities Connected to the
Fort Collins Distribution System.
(4) A customer-generator who receives approval from the electric utility to obtain
net metering service shall be subject to the monthly rates described above in
this rate schedule section.
(5) The customer-generator's consumption of energy from the utility shall be
measured on a monthly basis and in the event that the qualifying facility has
produced more electricity than the customer-generator has consumed, the
customer-generator shall receive a monthly credit for such production.
During the second calendar quarter of each year,the customer-generator shall
receive payment for the net excess generation accrued for the preceding
twelve(12) months.
Section 7. That Section 26-466 ofthe Code of the City ofFort Collins is hereby amended
to read as follows:
Sec. 26-466. General service, schedule GS.
-4-
(m) Parallel generation. Customers may operate all or part of their instantaneous
energy or capacity needs by operation of a qualifying facility in parallel with the
utility system, provided that electric service is being rendered under the special
services provisions of this schedule, and provided further that such facility is
constructed, operated and maintained in accordance with the provisions of the
electric service rules and regulations. If a customer is receiving net metering service,
such customer's service shall also governed by the net metering service terms and
conditions described in subsection(r) below.
(r)Net metering.
(1) Net metering service is available to a customer-generator producing electric
energy exclusively with a qualifying facility when the generating capacity of
the.customer-generator's qualifying facility meets the following two criteria:
(a) the qualifying facility is sized to supply no more than one hundred
twenty (120) percent of the customer-generator's average annual
electricity consumption at that site,including all contiguous property
owned or leased by the customer-generator, without regard to
interruptions in contiguity caused by easements,public thoroughfares,
transportation rights-of-way, or utility rights-of-way; and
(b) the rated capacity of the qualifying facility does not exceed the
customer-generator's service entrance capacity.
(2) The energy generated by an on-site qualifying facility and delivered to the
utility's electric distribution facility shall be used to offset energy provided
by the utility to the customer-generator during the applicable billing period.
(3) The customer-generator and electric service arrangements shall be subject to
the requirements and conditions described in the City of Fort Collins Utility
Services Interconnection Standards for Generating Facilities Connected to the
Fort Collins Distribution System.
(4) A customer-generator who receives approval from the electric utility to obtain
net metering service shall be subject to the monthly rates described above in
this rate schedule section.
(5) The customer-generator's consumption of energy from the utility shall be
measured on a monthly basis and in the event that the qualifying facility has
produced more electricity than the customer-generator has consumed, the
customer-generator shall receive a monthly credit for such production.
-5-
During the second calendar quarter of each year,the customer-generator shall
receive payment for the net excess generation accrued for the preceding
twelve (12) months.
Section 8. That Section 26-467 of the Code of the City of Fort Collins is hereby amended
to read as follows:
See. 26-467. General service 50, schedule GS50.
(p) Parallel generation. Customers may operate all or part of their instantaneous
energy or capacity needs by operation of a qualifying facility in parallel with the
utility system, provided that electric service is being rendered under the special
services provisions of this schedule, and provided further that such facility is
constructed, operated and maintained in accordance with the provisions of the
electric service rules and regulations. Parallel generation will be provided consistent
with all of the requirements contained in Platte River Power Authority's Tariff
Schedule 3: Parallel Generation Purchases, as may be amended from time to time.
All charges incurred by the utility under this tariff will be billed to the customer. If
a customer is receiving net metering service, such customer's service shall also be
governed by the net metering service terms and conditions described in subsection
(u) below.
(u) Net metering.
(1) Net metering service is available to a customer-generator producing electric
energy exclusively with a qualifying facility when the generating capacity of
the customer-generator's qualifying facility meets the following two criteria:
(a) the qualifying facility is sized to supply no more than one hundred
twenty (120) percent of the customer-generator's average annual
electricity consumption at that site,including all contiguous property
owned or leased by the customer-generator, without regard to
interruptions in contiguity caused by easements,public thoroughfares,
transportation rights-of-way, or utility rights-of-way; and
(b) the rated capacity of the qualifying facility does not exceed the
customer-generator's service entrance capacity.
-6-
(2) The energy generated by an on-site qualifying facility and delivered to the
utility's electric distribution facility shall be used to offset energy provided
by the utility to the customer-generator during the applicable billing period.
(3) The customer-generator and electric service arrangements shall be subject to
the requirements and conditions described in the City of Fort Collins Utility
Services Interconnection Standards for Generating Facilities Connected to the
Fort Collins Distribution System.
(4) A customer-generator who receives approval from the electric utility to obtain
net metering service shall be subject to the monthly rates described above in
this rate schedule section.
(5) The customer-generator's consumption of energy from the utility shall be
measured on a monthly basis and in the event that the qualifying facility has
produced more electricity than the customer-generator has consumed, the
customer-generator shall receive a monthly credit for such production.
During the second calendar quarter of each year,the customer-generator shall
receive payment for the net excess generation accrued for the preceding
twelve(12) months.
Section 9. That Section 26-468 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 26-468. General service 750, schedule GS750.
(p) Parallel generation. Customers may operate all or part of their instantaneous
energy or capacity needs by operation of a qualifying facility in parallel with the
utility system, provided that electric service is being rendered under the special
services provisions of the schedule, and provided further that such facility is
constructed, operated and maintained in accordance with the provisions of the
electric service rules and regulations. Parallel generation in excess of one (1)
megawatt will be provided consistent with all of the requirements contained in Platte
River Power Authority's Tariff Schedule 3: Parallel Generation Purchases, as
amended from time to time under the terms and conditions of Platte River Power
Authority's Tariff-- Schedule 10: Back-Up Service. All charges incurred by the
utility under this tariff will be billed to the customer. If a customer is receiving net
metering service,such customer's service shall also be governed by the net metering
service terms and conditions described in subsection (v)below.
-7-
(v) Net metering.
(1) Net metering service is available to a customer-generator producing electric
energy exclusively with a qualifying facility when the generating capacity of
the customer-generator's qualifying facility meets the following two criteria:
(a) the qualifying facility is sized to supply no more than one hundred
(120)percent of the customer-generator's average annual electricity
consumption at that site, including all contiguous property owned or
leased by the customer-generator, without regard to interruptions in
contiguity caused by easements,public thoroughfares,transportation
rights-of-way, or utility rights-of-way; and
(b) the rated capacity of the qualifying facility does not exceed the
customer-generator's service entrance capacity.
(2) The energy generated by an on-site qualifying facility and delivered to the
utility's electric distribution facility shall be used to offset energy provided
by the utility to the customer-generator during the applicable billing period.
(3) The customer-generator and electric service arrangements shall be subject to
the requirements and conditions described in the City of Fort Collins Utility
Services Interconnection Standards for Generating Facilities Connected to the
Fort Collins Distribution System.
(4) A customer-generator who receives approval from the electric utility to obtain
net metering service shall be subject to the monthly rates described above for
this rate schedule.
(5) The customer-generator's consumption of energy from the utility shall be
measured on a monthly basis and in the event that the qualifying facility has
produced more electricity than the customer-generator has consumed, the
customer-generator shall receive a monthly credit for such production.
During the second calendar quarter of each year,the customer-generator shall
receive payment for the net excess generation accrued for the preceding
twelve (12) months.
-8-
Introduced, considered favorably on first reading, and ordered published this 19th day of
January, A.D. 2010, and to be presented for final passage on t nd day of February, A.D. 2010.
i
Mayor
ATTEST:
glk.Ncw�-acl
City Clerk
Passed and adopted on final reading on the 2nd day of February, A.D. 2010.
Mayor
ATTEST:
City Clerk
-9-
ORDINANCE NO. 004, 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING STANDARDS FOR INTERCONNECTION OF
ELECTRIC GENERATION FACILITIES TO THE FORT COLLINS
ELECTRIC DISTRIBUTION SYSTEM
WHEREAS, in view of the fact that the City Council recognizes and places high value on
the viability of the City's electric utility and on allowing City property owners to provide electric
service to their own properties under certain conditions; and
WHEREAS, the connection of customer-owned generating facilities to the Fort Collins
electric distribution system entails complex technical and safety issues; and
WHEREAS, staff believes that requiring customers and their generating facilities to meet
certain terms and conditions will serve to protect the viability and safe operation of the Fort Collins
electric distribution system; and
WHEREAS, staff has worked with a consultant to develop certain Standards for
Interconnection of Electric Generation Facilities to the Fort Collins Electric Distribution System(the
"Standards"),a copy of which is attached hereto and incorporated herein by this reference as Exhibit
"A"• and
WHEREAS,on November 9,2009,the Fort Collins Electric Board reviewed and considered
proposed standards in a form substantially similar to those contained in Exhibit "A" and voted
unanimously to recommend that the City Council adopt such standards; and
WHEREAS, modifications made to the standards presented to the Electric Board are
reflected in Exhibit "A" and include corrections of typographical errors, some corrections to
mathematical equations and revisions suggested by citizen comments; and
WHEREAS, the adoption of the Standards will protect the viability and security of the Fort
Collins electric distribution system, promote safety of electric service customers, staff, and
interconnected generators, and establish baseline technical requirements for interconnection.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That adoption ofthe Standards is necessaryto encourage Cityproperty owners
to provide electric service to their own properties under certain conditions.
Section 2. That adoption of the Standards is necessary to protect the viability of the Fort
Collins electric distribution system.
Section 3. That adoption of the Standards is necessary to promote safety of electric
service customers, staff, and interconnected generators.
Section 4. That the Standards are hereby approved and adopted.
Introduced, considered favorably on first reading, and ordered published this 19th day of
January, A.D. 2010, and to be presented for final passage on th day of February, A.D. 10.
v
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 2nd day of February, A.D. 2010.
Mayor
ATTEST:
City Clerk