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HomeMy WebLinkAbout061 - 06/02/2009 - AMENDING CHAPTER 26 ARTICLE VI OF THE CITY CODE RELATING TO THE PROVISION OF ELECTRIC SERVICE ORDINANCE NO. 061, 2009 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 THE PROVISION OF ELECTRIC SERVICE WHEREAS, the City is a party to an all-requirements power supply agreement(the"Power Supply Agreement")with the Platte River Power Authority,a Colorado political subdivision formed by the City in cooperation with the Town of Estes Park and the cities of Longmont and Loveland; and WHEREAS, new forms of renewable resource distributed energy generation are appearing in the energy market; and WHEREAS, the City wishes to allow the integration of renewable resource distributed generation technologies when possible to do so within the terms of the Power Supply Agreement; and WHEREAS,the City Council has determined that certain provisions in Article VI of the City Code regarding electric service should be amended to provide more clarity with regard to the provision of electric service within the City limits; 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; and WHEREAS, in light of the rapidly evolving renewable energy industry and related technological advances, periodic review and re-evaluation of City Code provisions related to renewable energy will be desirable in the future in order to update the amendments accomplished by this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the definition of"Parallel generation" contained in Section 26-391 of 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 IEEE 1547. Section 2. That the definition "Small power production" contained in Section 26-391 of the Code of the City of Fort Collins is hereby deleted in its entirety as follows: Section 3. That the definition "Qualifying facility" contained in Section 26-391 of the Code of the City of Fort Collins is hereby amended to read as follows: Qualifyingfacility 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 IEEE 1547, 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 "Sale or sell" which shall read in its entirety as follows: Sale or sell shall mean to offer in exchange for money or any service or thing of value, or other compensation of any kind. Section 5. That Section 26-391 ofthe Code ofthe City of Fort Collins is hereby amended by the addition of a new definition "Qualifying renewable technology" which shall read in its. entirety as follows: Qualifying renewable technology shall mean a qualifying facility that generates electricity using renewable resources such as solar, fuel cell, wind, geothermal, combined heat and power or biomass technology. Section 6. That Section 26-391 of the Code of the City of Fort Collins is hereby amended by the addition of a new definition"Customer-generator"which shall read in its entirety as follows: Customer-generator shall mean an electricity customer of the Utility that generates electricity on the customer's side of the meter using a qualifying renewable technology. Section 7. That Section 26-391 of the Code of the City of Fort Collins is hereby amended by the addition of a new definition "High voltage transmission" which shall read in its entirety as follows: High voltage transmission shall mean the transmission of electric energy at voltages greater than thirty-five thousand (35,000) volts. Section 8. That Section 26-391 of the Code of the City of Fort Collins is hereby amended by the addition of a new definition "IEEE 1547" which shall read in its entirety as follows: IEEE 1547 shall mean the International Electrical and Electronic Engineers Standard 1547 for Interconnecting Distributed Resources with Electric Power Systems as approved in June 2003: -2- Section 9. That the title of Division 2 of Article VI of Chapter 26 of the Code of the City of Fort Collins shall be amended to read as follows: DIVISION 2. HIGH VOLTAGE TRANSMISSION FACILITIES Section 10. That Section 26-411 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-411. Compliance required for high voltage transmission facilities. No person shall maintain or install any wires, cables or other equipment for the high voltage transmission of electric current in, on, under or over any street, alley, sidewalk, public utility easement or other public right-of-way, or maintain or install any pole or mast to support or hold such wires or equipment in any such place, without having fully complied with the provisions of this Division. Section 11. That Section 26-412 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-412. Franchise or other authorization required. No wire,cable,pole or other equipment necessary for high voltage transmission facilities shall be installed or maintained over, on or under any such place unless a franchise has been granted for such installation or maintenance, except that: (1) High voltage transmission facilities that are in place in a public right-of- way at the time the underlying property is annexed into the City may remain in place without a franchise; and (2) High voltage transmission facilities that are in place over, on or under property other than a public right-of-way at the time the underlying property is annexed into the City may, subsequent to annexation, be relocated into a City street, alley, sidewalk, public utility easement, or other public right-of-way and maintained therein without a franchise, subject to all the same requirements that are applicable to the placement and maintenance of other public utilities in said locations. Section 12. That Section 26-416 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-416. City electric utility not affected. The provisions of this Division shall not apply to the electric utility of the City including Platte River Power Authority and the City utility, and Platte River Power -3 Authority shall be authorized to install and maintain lines and facilities in accordance with the Code and the rules and regulations of the electric utility. Section 13. That Article IV, Division 3 of the Code of the City of Fort Collins is hereby amended to read as follows: DIVISION 3. ELECTRIC SERVICE Sec. 26-441. Obtaining electric service. It shall be unlawful for any.person to obtain electrical service unless it is provided in accordance with the terms of this Article. Sec. 26-442. Electric service lines and related facilities. No person other than a customer-generator who has fully complied with the provisions of Section 26-444 shall install any electric facilities in,on, under or over any street, alley, sidewalk, public utility easement or other public right-of-way without having fully complied with the provisions of§ 23-81 of the Code pertaining to encroachments or, in the case of high voltage transmission lines,the provisions of Division 2 of this Article. Sec. 26-443. City electric utility not affected. The provisions of this Division shall not apply to the electric utility and that utility shall be authorized to furnish electric service to any property within the City. Sec. 26-444. Customer generation of electric service. A customer-generator may furnish electric service to the customer-generator's own property for use by the customer-generator subject to the following restrictions: (1) No high voltage transmission lines may be used. (2) If such service is provided through wires or other facilities installed or maintained in,on,under or over a public place,the installation of any such facilities shall be allowed only pursuant to the issuance of a revocable permit approved by the City Council after a determination by resolution that the provision of such service will not materially alter the viability of the electric utility system and will benefit the citizens of Fort Collins as well as the customer-generator. (3) Any interconnection, parallel generation or net metering service arrangements are subject to the requirements and rates, fees and charges set forth in the applicable rate schedule in Division 4 of this Article. -4- Sec. 26-445. Retail sale of electric service. No person or entity other than the utility may engage in the sale of electric service to any property in the City except under one or more of the circumstances described in paragraphs (a) through (d) of this Section. (1) If the electricity is generated solely using a qualifying renewable technology and sited exclusively on the customer's premise, a non-City provider may offer the electricity for sale to the customer so long as: (a) the service arrangement is authorized by an interconnection agreement with the City and by a purchase agreement with the City and Platte River Power Authority that provides for the recovery of the costs to the City and Platte River Power Authority and such additional amount as may be determined by the City; or (b) the electric generation system has a maximum generation capacity equal to or less than one thousand (1,000) kilowatts and the service arrangement is authorized by an interconnection agreement with the City and meets the definition of parallel generation contained in this Article. (2) A certified master meter operator who purchases electric service in accordance with this Division may sell that electric service so long as it does so in full compliance with the Fort Collins Utilities electric service rules and regulations and Colorado Revised Statute §40-1-103.5 and its implementing regulations found in the Colorado Code of Regulations at §4 CCR 723-3; (3) Electric service may be provided pursuant to § 26-446 below. (4) The City Council may authorize an exception to this restriction by ordinance or by the grant of a franchise. Sec. 26-446. Annexations. Properties within any annexation to the City may continue to receive electric service from any utility previously furnishing such service without complying with the provisions of this Division until the receipt of written notice from the City of the City's readiness to provide such service. As of the date upon which the City has declared itself to be responsible for providing such service,all electric service within any annexed area shall be provided in accordance with the provisions of this Division. If the City is unable to provide electric service to annexed property prior to the expiration of the second year after annexation of that property,then the utility previously furnishing service may continue to do so if said continued service is -5- authorized by the City Council through the grant of a revocable permit for that purpose. Any such revocable permit shall authorize the continued provision of electric service by the non-City utility to the annexed property until such time as the City either determines that the City is ready to provide electric service, or notifies said non-City utility that a franchise shall be required for the continuation of such service. Sec. 26-447. Violations and penalties. Any violation of any provision of this Division shall be a violation of the Code, punishable as provided in § 1-15. Each day upon which any violation shall continue shall constitute a separate offense, punishable as such. Introduced, considered favorably on first reading, and ordered published this 19th day of May, A.D. 2009, and to be presented for final passage on the 2 ay of June, A.D. 2009. 4May ATTEST:-- C iehieh f Deputy City Clerk Passed and adopted on final reading on the 2nd day of e A.D. 2009. May Ur ;ATTEST: - City-Clerk -6-