HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/21/2017 - FIRST READING OF ORDINANCE NO. 035, 2017, AMENDINGAgenda Item 10
Item # 10 Page 1
AGENDA ITEM SUMMARY February 21, 2017
City Council
STAFF
John Phelan, Energy Services Manager
SUBJECT
First Reading of Ordinance No. 035, 2017, Amending Chapter 26 of the Code of the City of Fort Collins to
Revise Electric Rates, Fees and Charges for Customers Participating in Community Solar Projects.
EXECUTIVE SUMMARY
The purpose of this item is to expand the definition of “community solar projects” in Chapter 26 of the City
Code to include both “subscriber-based” and “program-managed” community solar projects, and to establish a
net metering rate applicable to the Solar Affordability Program (SAP), a new program-managed community
solar project. The SAP will rely on energy generated by the 64 kilowatt photovoltaic system installed at 518 N.
Loomis Street (the “Loomis Project”) to serve income qualified customers and be administered according to
program objectives established by the Utilities Executive Director pursuant to City Code Sections 26-464(h)
and 26-465(h).
In addition, this item provides background on the income qualified SAP which will provide participating Fort
Collins electric customers with direct bill credits for a one year period. During that time, SAP households will
participate in efficiency and conservation installations customized to each household, drawing on resources
from Utility Services, Larimer County and the State of Colorado. Program households will also participate in
energy saving education and complete efficiency upgrades. Combined, the efficiency and education
opportunities will enable program households to permanently reduce their electric expenses and usage. Over
the life of the SAP, hundreds of qualifying households will benefit from a reduced energy burden as individual
participants in the program, and the benefits of additional renewable energy generation will be realized across
the residential rate class. The proposed credit rate for SAP and other dedicated program-managed community
solar project customers is the same rate as that currently available to customers of subscriber-owned
community solar projects, like the Riverside Community Solar project.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The Solar Affordability Program (SAP) is designed to draw on a City managed community solar array to
annually provide 20 to 30 income and heating payment assistance qualified electric utility customers with direct
bill reduction for one year. In addition to a financial benefit, SAP households will receive customized efficiency
and conservation installations from a range of regional providers. Program households will also participate in
energy saving education and complete low or no cost efficiency upgrades. Combined, the efficiency and
education opportunities will enable these households to permanently reduce their electric expenses and
usage, and over the life of the solar system benefit hundreds of qualifying homes through reduced energy
burden and improved conservation behaviors across the City’s distribution system.
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Solar Project Details
The SAP leverages the production of the community solar array located on the City warehouse at 518 N
Loomis Ave. (the “Loomis Project”). The Loomis Project was jointly funded through Utility Services (Budget
offer 59.2 for 2015-2016), the Colorado Energy Office via a demonstration program managed by GRID
Alternatives, and in-kind contributions from GRID Alternatives and community volunteers. The system,
designed to support an income-qualified program, deploys approximately 260 solar modules for an estimated
total capacity of 64 kilowatts. Staff developed the SAP to manage the distribution of solar energy benefits form
the Loomis Project consistent with financial and incentive program objectives approved by the Utilities
Executive Director under City Code Sections 26-464(h) and 26-465(h).
Project highlights:
Colorado’s first rooftop community solar project dedicated to serving income-qualified residents
First Colorado municipal utility to partner with GRID Alternatives to adopt an income-qualified community
solar model.
GRID Alternatives hosted a “Solarthon” event October 21-23, 2016. On Friday the 21st, the Governor, the
Director of the Colorado Energy Office, the Mayor, and the Utilities Executive Director spoke to an
estimated 170 visitors and volunteers.
Volunteers assembled a substantial portion of the array over the three days of the event.
Program Justification
The SAP delivers a solar financial benefit to customers, while being simultaneously designed to set income-
qualified customers interested in improving efficiency and conservation on an intentional and accessible path
to reduced energy use. During customers’ year in the program, they will be engaged in conservation education
and efficiency opportunities practical for their respective households. The SAP is strategically aligned with the
objectives of the Energy Policy, Road to 2020 Plan and the Affordable Housing Plan.
Proposed Code Amendments
City Code Sections 26-391, 26-464 and 26-465 were amended in 2014 to apply electric service rates to
residential customers participating in the subscriber-owned community solar array located at 500 Riverside
Avenue (the “Riverside Project”). The Loomis Project provides customers with a different interest in the solar
energy generated by the facility than the interest held by customers at the Riverside Project.
In order to distinguish the “subscriber-owned” Riverside Project model from the “program-managed” Loomis
Project model, the community solar project definition needs to be expanded and new definitions for “dedicated
program-managed facility” and “subscriber-owned facility” are necessary. In addition, the proposed Code
amendments refer to the authority of the Utilities Executive Director to adopt financial and incentive program
objectives to further City goals, and to clarify the uniform application of community solar project service rates to
“dedicated program-managed” and “subscriber-owned” facilities.
Satisfying a Utility Purpose under City Charter/Code
The SAP is a unique solar program that addresses regulatory and community-interest requirements in several
ways:
The City utilized an approved Purchasing Code sole source exception process to contract with GRID
Alternatives-- the Colorado Energy Office’s preferred renewable energy system installer. As such, the
project was able to take advantage of external funding from the Colorado Energy Office, via GRID
Alternatives, conditioned on use of the funding to serve income-qualified customers.
The City owns the Loomis Project solar photovoltaic system, which is connected to the electric distribution
grid as a generating asset for all ratepayers.
Leveraging the renewable energy generated through the Loomis Project and SAP allows a greater benefit
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for the City’s distribution system than would be possible by restricting beneficial use of the energy to a
“subscriber” group alone. The greater aggregate outcome is accomplished by improving the physical
efficiency of SAP participants’ homes while they are in the program, and adjusting their conservation and
consumption behaviors beyond the time customers are in the program.
The proposed income qualified SAP harmonizes competing regulatory and community-interest
requirements that
(1) the Loomis Project be operated to benefit income-qualified customers, under requirements tied to
the funding sources; and
(2) allocating benefits derived from Utility Service investments to a subset of ratepayers must serve a
broader “utility purpose” under the City Charter and Code.
To address item (1)
Utilities has developed a customer eligibility process in collaboration with Larimer County’s administration
of the Low-Income Energy Assistance Program (LEAP). The LEAP process will provide an annual list of
customers who are both income-qualified and are eligible to receive heating bill financial assistance.
These customers of electric heating premises served by Utility Services, will be invited to participate in the
SAP. Applying customers who are accepted into SAP will receive a credit on their electric bill tied to the
Loomis Project energy output. This process has been reviewed and accepted by the Colorado Energy
Office and GRID Alternatives.
To address item (2)
By applying for and being selected for the SAP, customers commit to completing energy efficiency
upgrades and education. The efficiency process will engage the occupant and building owner in programs
and services available through Utility Services and other agency energy education classes, Larimer
County Conservation Corp Energy and Water Program, Colorado Weatherization Program (administered
by Long’s Peak Energy Conservation), Efficiency Works Home, Consumer Products rebates and Energy
Outreach Colorado efficiency program (pending agreement). Over the course of the SAP, Utility Services
will support each selected household to navigate an optimal path through these offerings. Each
household’s custom efficiency plan will include quarterly milestones, and continued receipt of the solar
credit will be conditioned on continuous compliance with the program and completion of milestones.
SAP customers structured participation in resource conservation education and physical upgrades fulfills
a recognized Utility Services purpose to reduce electricity use and peak electrical demands.
Utility Services Budget Offer Funding
In addition to Colorado Energy Office funding, the Loomis Project was built through funds in the Utility Service
budget. The following language describes the 2015/2016 budget offer adopted by Council in November 2014
which provided the Utility Services portion of the project funding:
Establishing a new program offering to install solar PV systems for income-qualified families at no cost
($125,000 annually). These local families can most benefit from the monthly utility cost savings, while at
the same time giving job trainees and community volunteers hands-on installation experience. The model
is solar program analogous to how Habitat for Humanity provides income-qualified homes. The model has
been demonstrated in other states and includes collaborative funding to cover the majority of project costs
with the help of local jurisdictions, utility companies, private donors, foundation grants and corporate
sponsors.
Program Management Plan
This section describes the primary steps to move the SAP forward. The program design processes have been
mapped out in the following areas:
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Eligibility, selection of customers and amount of benefit
- Program Eligibility: LEAP will be used to determine eligibility for both income and heating financial
assistance. The SAP will be aligned with the LEAP program cycle which ends April 30th. At the end of
the LEAP cycle, Utilities will manage a process to identify and recruit participating households for the
following SAP program cycle.
- Utilities customers who received LEAP will be notified and given the opportunity to apply. The
application will be a simple form where the customer indicates their interest in the program and
participation in the education, efficiency and conservation requirements. Agreeing to participate in the
education and direct installation engagement program is a prerequisite for eligibility. If Utilities receives
more applications than program spots are available, staff will prioritize the applications based upon all
available information or conduct a lottery to choose participants among the applicants.
- Number of households served and the amount of benefit: The Colorado Energy Office has identified
4% of income as an appropriate threshold for annual energy burden. The bill credit will vary each
month based on the electricity output of the solar array and is expected to average $25 per month. The
objective is to bring the energy burden for a typical all electric household down to near 4%. At this
level, we expect the solar array to benefit approximately 20 households annually.
Administration of solar array production and benefits
- The solar array output is metered independently of the building on which it is located. The monthly
output of the system will be converted to a dollar value based on the credit rate noted in this
ordinance. Utilities billing will apply the credit in equal portions to the list of participating customers on
a monthly basis.
- The solar system is scheduled to be energized by the end of February, while the Solar Affordability
Program will launch in May. The energy produced during this interim period will be tracked and applied
to the SAP in the first year.
- The proposed virtual net metering credit is the same as that for the Riverside Community Solar
Project, comprised of the combination of the Summer Tier 1 rate (currently $0.0634 per kWh) and one
half the distribution facilities rate (currently $0.0128 kWh).
Structured efficiency and conservation actions
- The SAP includes quarterly milestones for customers to complete to remain eligible for the solar bill
credits. These milestones include educational opportunities, no-cost efficiency programs (such as the
Larimer County Conservation Corp Energy and Water Program and the Weatherization Assistance
Program), and Utility Services efficiency programs.
Reporting on Energy Benefits and Savings
An essential component of the SAP is to demonstrate participating customers are able to consistently reduce
their energy use and energy cost burden for an extended period of time. Staff expects:
The eligibility requirement to engage in structured education, efficiency and conservation actions will
result in improvements and behavioral changes to permanently reduce use, and
The solar bill credit will facilitate increased participation in other regional efficiency programs.
The SAP administration process is designed to quantitatively address these questions through deep
engagement with participating households. Once the first 12 months of participant data is compiled, a
quantitative and qualitative evaluation of overall program success will be conducted to understand the
following, with the results provided to City Council:
1. What is working and should continue;
2. What could improve;
3. What is not working and should stop.
CITY FINANCIAL IMPACTS
The financial impact of this Ordinance is related to the differential between the value of avoided wholesale
electricity purchases from this Utilities owned asset and the value of the credit applied to customer’s bills.
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Given current wholesale rates and the values of electricity at the time of this Ordinance, this differential is
expected to be less than $4,000 on an annual basis.
BOARD / COMMISSION RECOMMENDATION
At its February 9, 2017 meeting, the Energy Board recommended adoption of the Ordinance by Council.
PUBLIC OUTREACH
Utilities coordinated with the City Attorney's and Clerk's offices to complete the normal notification processes
for out-of-City customers regarding revisions to the rates in City Code.
ATTACHMENTS
1. Solarthon Summary City Council Memo, October 2016 (PDF)
2. Grid Alternatives Sole Source Memo, July 2016 (PDF)
3. Energy Board Minutes, February 9, 2017 (draft) (PDF)
Utilities
electric · stormwater · wastewater · water
700 Wood Street
PO Box 580
Fort Collins, CO 80522
970.221.6700
970.221.6619 – fax
970.224.6003 – TDD
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: October 25, 2016
TO: Mayor Troxell and Councilmembers
FROM: Lisa Rosintoski, Customer Connections Manager
John Phelan, Resource Conservation Manager
THROUGH: Darin Atteberry, City Manager
Kevin R. Gertig, Utilities Executive Director
RE: Solarthon Building Project Luncheon Summary
This memo is in response to Mayor Troxell’s Leadership Planning Team meeting request for a summary
of the luncheon with Governor Hickenlooper at the October 21 Solarthon event.
Bottom Line:
As part of the low-income solar project approved through the 2015-2016 Budget for Outcomes process,
Fort Collins Utilities partnered with Grid Alternatives to construct a community solar array to benefit
low-income customers in the Fort Collins community. The project further benefits from matching grant
funds from the Colorado Energy Office.
Project highlights:
x Colorado’s first rooftop community solar project dedicated to serving low-income residents.
x First Colorado municipal utility to partner with Grid Alternatives to adopt a low-income
community solar model.
The ongoing program to qualify households to participate in the shared solar array will be administered
by Fort Collins Utilities in collaboration with City Sustainability Services and the regional low income
weatherization assistance program. This project will directly reduce the energy burden of low-income
households, directing the benefit of renewable resources to this underserved segment in Fort Collins.
Project Details:
The rooftop solar array is located on a City of Fort Collins’ warehouse at 518 N. Loomis Ave. The
system deploys approximately 260 solar modules for an estimated total capacity of 64 kilowatts serving
approximately 15 to 20 qualifying households each year. Through a partnership with Larimer County’s
Low-Income Energy Assistance Program (LEAP) combined with a “lottery-style” selection process,
DocuSign Envelope ID: 189CB5AD-BE2A-4024-A7C4-C663601A44BD
ATTACHMENT 1
hundreds of qualifying homes should benefit from a reduced energy burden, as participants in this low-
income program, over the life of this solar installation.
Grid Alternatives, the project developer, hosted a “Solarthon” event on October 21
st
and 22
nd
. On
Friday the 21
st
, the Governor, the Director of the Colorado Energy Office, the Mayor, and the Executive
Director of Utilities spoke to an estimated 170 visitors and volunteers.
Over the course of two days, volunteers participated in helping to assemble a substantial portion of the
array. Special thanks go to Utilities’ staff in helping organize the event and City Operations staff for
ensuring that the building roof was ready for construction in record time, as well as the completion of
other site work, in preparation for the Governor’s visit.
Grid Alternatives is a nonprofit organization that brings the benefits of solar technology to communities
for residents who would not otherwise have access. Using a barn-raising model, Grid Alternatives leads
teams of volunteers and job trainees to provide solar electricity access to low-income customers,
providing needed savings for families struggling to make ends meet; prepares workers for jobs in the
fast-growing solar industry and help to clean our environment.
The ongoing program to qualify households to participate in the shared solar array will be administered
by Fort Collins Utilities in collaboration with the regional low-income energy assistance program
(LEAP).
If you have questions, please contact John Phelan at jphelan@fcgov.com or 970-416-2539.
IMAGES:
1) Project Location – 518 N. Loomis Ave.
2) Solarthon Event
3) Volunteer construction
4) Rooftop VIPs
5) Governor Hickenlooper and solar array
DocuSign Envelope ID: 189CB5AD-BE2A-4024-A7C4-C663601A44BD
DocuSign Envelope ID: 189CB5AD-BE2A-4024-A7C4-C663601A44BD
281 North College Avenue
P.O. Box 580
Fort Collins, CO 80522.0580
970.221.6376
970.224.6134 - fax
Planning, Development & Transportation
MEMORANDUM
DATE: July 11, 2016
TO: Darin Atteberry, City Manager
APPROVED
___________
THROUGH: Kevin Gertig – Utilities Executive Director
Robin Cochran, Senior Assistant City Attorney
Norm Weaver – Senior Energy Services Engineer
BBBBBBBBBBBB
____________
_____________
FROM: Gerry Paul, Purchasing Director __________
RE: Approving an Exception to Competitive Process – Grid Alternatives – 70 kW Solar Array
Executive Summary
The purpose of the memo is to request approval of an exception to the competitive purchasing process to
establish an agreement with Grid Alternatives to develop a 70kW solar array to be operated by Fort
Collins Utilities on behalf of income qualified utility customers. This project will be funded in part by a
grant to the City from the Colorado Energy Office (CEO). Grid Alternatives is the sole firm selected by
the CEO to develop solar arrays utilizing the grant funding.
Exception to Competitive Bidding Rationale:
In accordance with Code Section 8-161(d)(3) City Council approval is not required for exceptions less
than $200,000.
Code Section 8-161(d)(1)(b). Although there exists more than one (1) responsible source, a competitive
process cannot reasonably be used or, if used, will result in a substantially higher cost to the City, will
otherwise injure the City’s financial interests or will substantially impede the City’s administrative
functions or the delivery of services to the public.
Background/Discussion
The 2015/2016 Fort Collins Utilities budget includes funding totaling $250,000 to support a solar energy
project benefiting income qualified customers of Fort Collins Utilities. Discussions starting in 2014 with
Fort Collins Social Sustainability staff and affordable housing stakeholders have explored various
approaches to implement low income solar. Approaches including installations on qualified individual
homes, projects at multi-unit housing locations and shared “solar garden” type projects have been
explored.
Recently the Colorado Energy Office (CEO) completed a Request for Applications (RFA) competitive
process for a grant supporting statewide low income projects particularly focused on shared solar
(“community solar”) arrays. The RFA response by Grid Alternatives (“Grid”) was selected by CEO to
administer this grant program. Fort Collins has been in discussion with the CEO and Grid Alternatives
DocuSign Envelope ID: 02070695-76BF-4738-AF16-104201AB0E9B
ATTACHMENT 2
about a possible Fort Collins income qualified solar project. The benefits of developing a larger single
site combined with the matching funds offered by CEO make this a unique opportunity to expand the
impact of the available funding. A project of this type provides one of the most cost effective ways to
build and direct the benefit of a local renewable energy project to the low income sector helping to reduce
the energy burden on household energy costs. Critically important to the project is the unique
capabilities of Grid Alternatives. This organization focuses on delivering the benefit of renewables to the
low income sector. They have unique partnerships with industry suppliers and philanthropic and
volunteer organizations. Because of these partnerships, the quoted price to build the Fort Collins solar
array is substantially below the price set by for-profit solar developers.
Fort Collins Utilities will build and own the mid-size solar array within the Fort Collins Utilities grid with
all offset purchased power costs being directed to the benefit of income qualified households. The project
is strongly supported by CEO and Fort Collins Utilities would partner with Grid Alternatives to complete
the project. The subsequent 20+ year revenue stream will be folded into the financial proposal for an
income qualified rate presented to Council on June 14th. A solar project of this type creates a long lived
stable benefit to income qualified households. While this single initial project is modest in impact, it may
be a model for further “community solar” investments structured to benefit utility customers across all
income ranges.
This project conforms with the requirements of the City’s Power Supply Agreement with Platte River
Power Authority (PRPA) which grants the City the right to self-generate up to 1% of Fort Collins
capacity – that number is roughly 3,000 kW.
This project will be funded in part by a grant of up to $100,000 to the City from the CEO. Grid
Alternatives is the sole firm selected by the CEO to develop solar arrays utilizing the grant funding.
The primary site for a 70 kW solar array is the roof of the City warehouse at 518 N. Loomis. The target
operation date for the project is late fall 2016.
Financial Impacts
Based on the roof area an array size of approximately 70kW-dc is anticipated. With Grid funding
partners and a CEO matching grant the City is well within the limit of appropriated funds for the project.
The total cost to the City will not exceed $200,000 and the CEO has committed to provide up to $100,000
in matching funds. With the CEO grant there is the possibility of at least 50% enhancement of
community funds to the benefit of income qualified households. On-going operation and maintenance
expenses for the solar array will be funded from the revenue and are anticipated to be less than 5% of
revenue.
Recommendation
Recommend approval of an exception to the use of the competitive bid or proposal in accordance with
City Code Section 8-161(d)(1)(b) and 8-161(d)(2) and (3) which authorizes the City Manager to approve
exceptions less than $200,000.
DocuSign Envelope ID: 02070695-76BF-4738-AF16-104201AB0E9B
Candidate Array Location – 518 N. Loomis Ave. (<100kW, ~ 10,000 sq. ft.)
DocuSign Envelope ID: 02070695-76BF-4738-AF16-104201AB0E9B
DRAFT: Energy Board Minutes
February 9, 2017
1
DRAFT: Energy Board Minutes
February 9, 2017
DRAFT: Fort Collins Utilities Energy Board Minutes (ABRIDGED)
Thursday, February 9, 2017
Energy Board Chairperson City Council Liaison
Pete O’Neill, 970-223-8703 Ross Cunniff, 970-420-7398
Energy Board Vice Chairperson Staff Liaison
Nick Michell, 970-215-9235 Tim McCollough, 970-305-1069
Roll Call
Board Present: Chairperson Pete O’Neill, Vice Chairperson Nick Michell, Alan Braslau, Bill Becker, Greg
Behm; Margaret Moore, Stacey Baumgarn, Phil Friedman
Late Arrivals:
Board Absent: Lori Nitzel
Others Present
Staff: Tim McCollough, Christie Fredrickson, John Phelan, Cyril Vidergar, Kim DeVoe, Rhonda Gatzke
PRPA: Paul Davis, Brad Decker, Jason Frisbie,
Members of the Public: Jim Browne
Solar Affordability Program & Rate Ordinance
John Phelan, Energy Services Manager
(attachments available upon request)
The Solar Affordability Program (SAP) is an income qualified solar program providing both a bill benefit
(taking solar production and providing that benefit to a limited number of customers) as well as
efficiency benefits to those eligible income qualified customers. The 64 kilowatt solar system is installed
on a City warehouse on Loomis Street. The project was completed with funding from the Fort Collins
Utilities 2015/2016 budget, the Colorado Energy Office (CEO) as well as contributions from GRID
alternatives and local volunteers. There wasn’t any funding that came from the CEO that was given to
the City of Fort Collins; rather, the CEO solicited vendors for a statewide pilot program and GRID
Alternatives was selected. GRID then installed the solar system at a lower cost for the City because the
Energy Office provided the funding to them up front.
The Solar array will accrue 20-25 customers annually, and those customers will rotate out after a one
year period, and a new pool of qualified customers will take over. The bill benefits are linked to a
structured approach to efficiency and conservation, by essentially offering a (roughly) 50% discount on
the user’s electricity bill for one year, in exchange for a commitment to work through a structured
efficiency and conservation approach that the City hopes will permanently reduce their electricity use.
The customer eligibility is tied to the Low Income Energy Assistance Program (LEAP). LEAP has an annual
income qualification process, and in the case of Fort Collins, they are providing heating assistance. All
customers in this program are Fort Collins electric heat customers, who are income qualified.
ATTACHMENT 3
DRAFT: Energy Board Minutes
February 9, 2017
2
DRAFT: Energy Board Minutes
February 9, 2017
Board members inquired if the program participants have any direct finical cost to them and Mr. Phelan
clarified that they do not have any financial cost. He elaborated with a slide displaying a process map of
the customer outreach and selection process and the program cycle. The City receives the LEAP
information, and then they begin a targeted outreach program to recruit potential program participants.
After the candidates are selected and integrated into the SAP, the solar credits are applied to their bill
(on a monthly basis) and participants are engaged in education and efficiency installations for the
program cycle.
The proposed rate ordinance defines the beneficial and physical ownership models for community solar,
as well as subscription based or dedicated program-managed projects for community solar. The
ordinance also allows community solar to be located in Fort Collins Utilities or Platte River territory and
ownership by Fort Collins Utilities or Platte River, or a third party. And finally, the ordinance applies
current virtual net metering rates to all system types.
Board member Behm moved to recommend Council adopt the ordinance to amend Chapter 26 of the
Code of the City of Fort Collins related to customer participation in community solar, including the
Solar Affordability Program, on first reading February 21, 2017.
Board member Braslau seconded the motion.
Discussion of the Motion:
Board members commented that this is great program providing motivation to conserve, not just use
renewable energy. Vice Chairperson Michell asked why the language for community solar needs to be
changed, as opposed to calling the program an Assistance Program. He doesn’t believe the SAP is
classified as community solar when the City is providing a one year subscription. Mr. Phelan explained
that in this case, community solar is a single resource that is shared amongst multiple customers.
Board member Baumgarn said it’s brilliant to tie a conservation consideration to solar, and he would like
to see more programs like this one, with an expectation that anyone who receives a solar rebate from
the City should also be receiving continued conservation education.
Vote on the Motion: It passed unanimously, 8-0, with 1 absence.
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ORDINANCE NO. 035, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
TO REVISE ELECTRIC RATES, FEES AND CHARGES FOR CUSTOMERS
PARTICIPATING IN COMMUNITY SOLAR PROJECTS
WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the
City Charter to fix, establish, maintain and provide for the collection of such rates, fees or
charges for utility services furnished by the City as will produce revenues sufficient to pay the
costs, expenses and other obligations of the electric utility, as set forth therein; and
WHEREAS, the Article XII, Section 6, of the City Charter further conditions the use of
electric utility net operating revenues to specified utility purposes and other purposes determined
by the City Council to be beneficial to electric utility ratepayers; and
WHEREAS, on September 2, 2014, City Council adopted Ordinance No. 108, 2014,
amending Chapter 26, Article VI of the City Code to apply net metering electric service rates to
community solar project customers and to accommodate the subscription-based community solar
project located at 500 Riverside Avenue (the “Riverside Project”); and
WHEREAS, on November 18, 2014, City Council adopted Ordinance No. 153, 2014,
approving the biennial budget for fiscal years 2015-2016, including Budget Offer 59.2 which
allocated funding to develop an income qualified community solar project; and
WHEREAS, in October 2016, the City became the first Colorado municipality to partner
with the Colorado Energy Office to build a municipal-operated community solar project
designed to serve income qualified residents (the “Loomis Project”); and
WHEREAS, the Loomis Project, located at 518 N. Loomis Avenue, was jointly funded
through the City’s 2015-2016 appropriations, the Colorado Energy Office, in-kind contributions
from Grid Alternatives, who managed construction, and community volunteers who assembled
portions of the solar array on October 21 and 22, 2016; and
WHEREAS, the Loomis Project consists of approximately 260 solar modules with an
estimated total generation capacity of 64 kilowatts, representing a capacity sufficient to provide
electric bill benefits to approximately 15 to 30 households; and
WHEREAS, Sections 26-464(h) and 26-465(h) of the City Code authorize the electric
utility to establish programs to provide financial or technical assistance and incentives to
customers in order to reduce energy consumption or system peak demands, consistent with
Council policies and program objectives approved by the Utilities Executive Director; and
WHEREAS, the Utilities Executive Director has approved program objectives for a City
community solar program targeting reduced energy consumption and peak demands by granting
income qualified residential electric service customers beneficial use of energy generated by the
Loomis Project, entitled the “Solar Affordability Program”; and
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WHEREAS, the Solar Affordability Program delivers income qualified customers bill
credits linked to energy generation by the Loomis Project, while simultaneously improving
efficiency and conservation behavior by such customers through a required year-long series of
conservation education and efficiency improvements tailored to each household, reducing overall
electric system consumption and peak demands; and
WHEREAS, Utility staff recommends the rates, fees and charges applicable to
community solar projects under Chapter 26, Article VI of the City Code be extended to
customers in the Solar Affordability Program, as well as other City program-managed
community solar projects and qualifying subscriber-owned community solar projects, like the
Riverside Project; and
WHEREAS, staff has identified portions of Chapter 26, of the City Code which require
amendment to accommodate use of net metering rates for the Solar Affordability Program and
other program-managed community solar projects; and
WHEREAS, extending net metering service rates to income qualified customers through
the Solar Affordability Program, and other dedicated program-managed community solar
projects, serves a utility purpose of applying new renewable electricity generation to reduce
wholesale power purchase needs and increasing ratepayer participation in energy efficiency and
conservation actions; and
WHEREAS, the proposed net metering service rates for dedicated program-managed
community solar project customers, including the Solar Affordability Program, are reasonable,
fair and non-discriminatory because they balance receipt by individual ratepayers of the energy
values produced by a specific solar array with the system-wide benefits realized across the rate
class through the addition of new solar generation; and
WHEREAS, the Energy Board considered the proposed electric rates, fees and charges,
and language additions for community solar projects at its February 9, 2017 regular meeting and
provided its recommendation of approval to City Council; and
WHEREAS, the City Manager and staff have recommended to City Council the
following electric rate adjustments and City Code rate language additions applicable to
community solar projects; and
WHEREAS, based on the foregoing, the City Council finds offering net metering service
rates to customers participating in dedicated program-managed community solar projects serves
a utility purpose beneficial to all residential electric service customers and such rates are
reasonable, fair and non-discriminatory in relation to benefits realized across the electric
distribution system; and
WHEREAS, accordingly, it is the desire of the City Council to amend Chapter 26 of the
City Code to revise the electric rates, fees and charges to accommodate such rates.
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NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the definitions of “Community solar project,” “Net metering service” and
"Qualifying facility" contained in Section 26-391 of the Code of the City of Fort Collins are
hereby amended to read as follows:
Community solar project shall mean a photovoltaic electric generating installation that
is a qualifying facility using a qualifying renewable technology that offers shared
ownership by Fort Collins Utilities electric service customers and is operated by an
entity that has executed an "Interconnection Agreement" and/or "Power Purchase
Agreement" with Fort Collins Utilities. The physical location of any such facility shall
be within the electric service territory of Fort Collins Utilities, and any electric power
produced shall be consumed within the electric service territory of Fort Collins
Utilities. All customers that participate under the "community solar project" rate
provisions must hold evidence of ownership to a subscription as evidence of beneficial
use of or other entitlement to the electric generating capacity of the facility.
Community solar project shall mean a photovoltaic electric generating installation that
meets all of the following criteria:
(i) is a qualifying facility;
(ii) uses a qualifying renewable technology;
(iii) is operated by Fort Collins Utilities or Platte River Power Authority directly or by
any party pursuant to an “Interconnection Agreement” and/or “Power Purchase
Agreement” with Fort Collins Utilities;
(iv) is located within the Platte River Power Authority electric service territory; and
(v) all electric power it produces is consumed within such territory.
Net metering service shall mean that service available to a customer-generator operating
or with beneficial use of a qualifying facility using a qualifying renewable technology
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.
Qualifying facility shall mean an electric-generating facility operated in parallel with the
City of Fort Collins or Platte River Power Authority electric distribution system that has
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been inspected for compliance with the City of Fort Collins Utility Services applicable
Interconnection Standards for Generating Facilities Connected to the Fort Collins
Distribution System, has been issued a "Permit to Operate" by the City or Platte River
Power Authority and is operated by Platte River Power Authority or Fort Collins directly
or under a valid "Interconnection Agreement" or "Parallel Generation Agreement"
executed on behalf of the City of Fort Collins by the Utilities Executive Director.
Section 3. That Section 26-391 of the Code of the City of Fort Collins is hereby
further amended to add the following new definitions which read in their entirety as follows:
Dedicated program-managed facility shall mean a community solar project owned and
operated by Fort Collins Utilities or Platte River Power Authority, offering Fort Collins
Utilities electric service customers credit for the value of project-generated electricity,
subject to customer compliance with all requirements of an associated City program,
including applicable income qualification requirements, approved by the Utilities
Executive Director under Sections 26-464(h) or 26-465(h).
Subscriber-owned facility" shall mean a community solar project owned and/or operated
by Fort Collins Utilities, Platte River Power Authority or a third-party pursuant to an
"Interconnection Agreement" and/or "Power Purchase Agreement" with Fort Collins
Utilities, offering Fort Collins Utilities electric service customers shared or beneficial
ownership of project-generated electricity on a subscription basis.
Section 4. That Section 26-464(r) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-464. Residential service, schedule R.
…
(r) Net metering-community solar projects.
(1) Net metering service is rates are also available to a residential customer
who holds an exclusive interest in a portion of the electric energy generated by a
community solar project when with physical or beneficial ownership of a
subscriber-owned facility or dedicated program-managed facility provided: when
a. the customer:
1. maintains continuous compliance with all applicable
dedicated program-managed facility program conditions and
objectives adopted by the Utilities Executive Director under
Subsection (h) of this Section; or
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2. holds evidence of a subscription or other agreement
entitling the customer to ownership or beneficial use of electricity
generated by an associated subscriber-owned facility; and
b. the generating capacity of the customer's interest in a subscriber-
owned facility is sized to supply no more than one hundred twenty (120)
percent of the customer's average annual electricity consumption at the
customer's point of service, including all contiguous property owned or
leased by the customer, without regard to interruptions in contiguity
caused by easements, public thoroughfares, transportation rights-of-way or
utility rights-of-way.
(2) The community solar project-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.
(3) Both the customer's consumption of energy from Fort Collins Utilities and
interest in the production of energy that flows into Fort Collins Utilities'
distribution system shall be measured on a monthly basis. The energy consumed
from Fort Collins Utilities by the customer shall be billed at the applicable
seasonal tiered rate as outlined in Subsections (c) and (d) of this Section. The
method used to measure energy produced and issue credits under this Section
shall be the same for subscriber-owned facilities and dedicated program-managed
facilities. The energy produced by the customer's portion of the qualifying facility
shall be credited to the customer monthly as follows:
1. Distribution facilities credit Per kWh $0.01190.0128
2. Energy and demand credit Per kWh $0.06320.0634
Section 5. That Section 26-465 (r) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-465. Residential demand service, schedule RD.
. . .
(r) Net metering-community solar projects.
(1) Net metering service is rates are also available to a residential customer
who holds an exclusive interest in a portion of the electric energy generated by a
community solar project when with physical or beneficial ownership of a
subscriber-owned facility or dedicated program-managed facility provided:
a. the customer:
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1. maintains continuous compliance with all applicable dedicated
program-managed facility program conditions and objectives adopted by
the Utilities Executive Director under Subsection (h) of this Section; or
2. holds evidence of a subscription or other agreement entitling the
customer to ownership or beneficial use of electricity generated by an
associated subscriber-owned facility; and
b. the generating capacity of the customer's interest in a subscriber-owned
facility is sized to supply no more than one hundred twenty (120) percent of the
customer's average annual electricity consumption at the customer's point of
service, including all contiguous property owned or leased by the customer,
without regard to interruptions in contiguity caused by easements, public
thoroughfares, transportation rights-of-way or utility rights-of-way.
(2) The community solar project-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.
(3) Both the customer's consumption of energy from Fort Collins Utilities and interest
in the production of energy that flows into Fort Collins Utilities' distribution system shall
be measured on a monthly basis. The energy consumed from Fort Collins Utilities by the
customer shall be billed at the applicable seasonal tiered rate as outlined in Subsections
(c) and (d) of this Section. The method used to measure energy produced and issue
credits under this Section shall be the same for subscriber-owned facilities and dedicated
program-managed facilities. The energy produced by the customer's portion of the
qualifying facility shall be credited to the customer monthly as follows:
1. Distribution facilities credit Per kWh $0.01190.0128
2. Energy and demand credit Per kWh $0.06320.0634
Introduced, considered favorably on first reading, and ordered published this 21st day of
February, A.D. 2017, and to be presented for final passage on the 7th day of March, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 7th day of March, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk