HomeMy WebLinkAbout108 - 09/02/2014 - AMENDING CHAPTER 26 OF THE CITY CODE TO REVISE ELECTRIC RATES, FEES AND CHARGES AND PROVIDE RATES FO ORDINANCE NO. 108, 2014
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 AND PROVIDE RATES FOR CUSTOMERS ENROLLED
IN THE FORT COLLINS COMMUNITY SOLAR PROJECT
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, on May 20, 2014, City Council adopted Ordinance No. 067, 2014,
establishing a bill credit rate for net-metered operations and moving from annual settlement of
excess power generation to a monthly settlement for participating net-metered customers of the
Electric Utility; and
WHEREAS, the bill credit rate established for net-metered customers factors in savings
the Electric Utilities realizes by not needing to transport across its electric distribution network
the power produced and consumed at the site of a roof-top solar energy facility; and
WHEREAS, under the Fort Collins Community Solar Project, the City engaged a third
party to construct and operate a solar farm within the City to allow Electric Utility customers
who cannot otherwise participate in solar energy production to contribute to the City's renewable
energy portfolio by purchasing an interest in, i.e. subscribing to, a community solar farm facility;
and
WHEREAS, though the Fort Collins Community Solar Project allows more Electric
Utility customers to participate in solar energy production, distribution of the energy produced
by the solar farm does not achieve the same distribution system efficiencies as that of on-site net-
metering; and
WHEREAS, energy,produced at the solar farm will still rely on City electric distribution
infrastructure for delivery to customers and thereby create a similar burden on the distribution
infrastructure as that of standard energy distribution; and
WHEREAS, in light of this operational distinction between the two types of solar energy
facilities, the effective provision of electric utility service and application of the rules and
regulations affecting administration of net-metering service credits Would be expedited by
amending the City Code to identify a specific bill credit rate for customers who subscribe to a
sanctioned solar farm, distinct from the standard net-metered bill credit rate; and
WHEREAS, the Electric Utility proposes to establish a bill credit rate for customers
participating in the solar farm that balances the tangible and intangible benefits of distributed
generation to the distribution infrastructure through that type of facility, totaling $0.0714 per
kWh of energy generated; and
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WHEREAS, the Electric Utility propose to establish a bill credit rate for customers using
the "General service, schedule GS" rate, i.e. small individual commercial and industrial
customers, participating in the solar farm totaling $0.0497 per kWh of energy generated; and
WHEREAS, the Energy Board considered the proposed electric rates, fees, and charges
for customers enrolled in the Fort Collins Community Solar Project on July 10, 2014, and
unanimously recommended approval of the rate changes and additions; and
WHEREAS, Section 26-465(q)(5) of the City Code, as amended in Section 2 of
Ordinance No. 067, 2014, contained an incorrect internal Code reference, which reference is also
corrected in the proposed revised rates, fees and charges; and
WHEREAS, the City Manager and staff have recommended to the City Council the
following electric rate adjustments for all billings issued with meter readings on or after October
1, 2014; and
WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter
26 of the City Code to revise the electric rates, fees and charges with regard to the compensation
rate for customers purchasing interests in the Fort Collins Community Solar Project and any
other community solar projects meeting applicable requirements.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That Section 26-391 of the Code of the City of Fort Collins is hereby
amended by the addition of a new definition for "Community solar project' to read as follows:
Sec. 26-391. Definitions.
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.
Section 2. That Section 26-464 of the Code of the City of Fort Collins is hereby
amended by the adoption of a new Subsection (r) to read in its entirety as follows:
Sec. 26-464. Residential energy service, schedule R.
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(r) Net metering-community solar projects.
( 1 ) Net metering service is available to a customer who holds an exclusive
interest in a portion of the electric energy generated by a community solar project
when the generating capacity of the customer' s interest 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
energy produced by the customer' s portion of the qualifying facility shall be
credited to the customer as follows :
1 . Distribution facilities charge, per kilowatt-hour: one and thirty-one
one-hundredths cents ($0 . 0131 ) .
2 . The energy and demand credit, per kilowatt-hour: five and eighty-
three one-hundredths cents ($0 . 0583 ) .
Section 3 . That Section 26-465 (q)(5) of the Code of the City of Fort Collins is hereby
amended to read as follows :
(q) Net Metering.
(5) The customer-generator's consumption of energy from the utility
and production of energy that flows into the utility' s distribution system shall be
measured on a monthly basis . The energy consumed from the utility by the
customer-generator shall be billed at the applicable seasonal tiered rate as outlined
in Subsection (c) of this Section. The energy produced by the customer-generator
shall be credited to the customer as follows :
1 . Distribution facilities charge, per kilowatt-hour: two and sixty-two
one-hundredths cents ($0 . 0262) .
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2. The energy and demand credit, per kilowatt-hour: five and eighty-
three one-hundredths cents ($0.0583).
Section 4. That Section 26-465 of the Code of the City of Fort Collins is hereby
amended by the addition of a new Subsection (r) which reads in its entirety as follows and the
original Subsection (r) is hereby relettered as Subsection (s):
(r) Net metering-community solar projects.
(1) Net metering service is available to a customer who holds an exclusive
interest in a portion of the electric energy generated by a community solar project
when the generating capacity of the customer's interest 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 Subsection (c) of this Section. The energy
produced by the customer's portion of the qualifying facility shall be credited to
the customer as follows:
1. Distribution facilities charge, per kilowatt-hour: one and thirty-one
one-hundredths cents ($0.0131).
2. The energy and demand credit, per kilowatt-hour: five and eighty-
three one-hundredths cents ($0.0583).
(s) Loans. Special services in the form of loans for electric service-related
improvements, conservation measures or efficiency enhancements shall be documented
on forms determined by the Utilities Executive Director and the Financial Officer. Any
such loans shall be made consistent with the applicable program requirements, credit and
risk standards and interest rate provisions as set forth in this Article and in the
administrative rules and regulations adopted by the Financial Officer pursuant to § 26-
720. The interest rate for such loans shall be no less than the most current U.S. prime
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lending rate at the time of loan origination plus two (2) percent and no more than the
most current U.S. prime lending rate at the time of loan origination plus five (5) percent,
per annum, with the interest rate for each loan to be set in accordance with the
administrative rules and regulations of the Financial Officer. Obligations for repayment
of any such loans are subject to the provisions of Article XII of this Chapter.
Section 5. That Section 26-466 of the Code of the City of Fort Collins is hereby
amended by the adoption of a new Subsection (r) to read as follows:
Sec. 26-466. General service, schedule GS.
(r) Net metering-community solar projects.
(1) Net metering service is available to a customer who holds an exclusive
interest in a portion of the electric energy generated by a community solar project
when the generating capacity of the customer's interest 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 Subsection (c) of this Section. The energy
produced by the customer's portion of the qualifying facility shall be credited to
the customer as follows:
1. Distribution facilities charge, per kilowatt-hour: ninety-four one-
thousandths cents ($0.0094).
2.' The energy and demand credit, per kilowatt-hour: four and three
one-hundredths cents ($0.0403).
Section 6. That the amendments herein are effective and shall go into effect for all
bills issued with meter readings on or after October 1, 2014.
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Introduced, considered favorably on first reading, and ordered published this 19th day of
August, A.D. 2014', and to be presented for final passage on the 2nd day of September, A.D.
2014.
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ATTEST:
City Clerk OOP OR
Passed and adopted on final reading on the 2nd day of September, A.D. 2014.
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