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HomeMy WebLinkAbout106 - 10/18/2022 - AMENDING CITY CODE REGARDING NET METERED RENEWABLE ENERGY GENERATION SYSTEM SIZING AND ADOPTING ADMIORDINANCENO.106,2022OFTHECOUNCILOFTHECITYOFFORTCOLLINSAMENDINGCHAPTER26OFTHECODEOFTHECITYOFFORTCOLLINSREGARDINGNETMETEREDRENEWABLEENERGYGENERATIONSYSTEMSIZINGANDADOPTINGADMINISTRATIVERULESFORNETMETEREDSYSTEMSIZINGWHEREAS,Chapter26oftheCityCoderegulatesandgovernstheprovisionofutilityservices,andsetsforthdefinitionsandtermsforapplyingfeesandbill-creditsfordeliveryofspecifiedutilityservices;andWHEREAS,suchprovisionsrequireperiodicupdatingandmodificationforpurposesofclarificationandtoensurethattheCoderemainsadynamicdocumentcapableofrespondingtoissuesidentifiedbystaff,customers,residentsandchangingtechnologyforandmannerofdeliveringutilityservices;andWHEREAS,UtilitiesstaffhasidentifiedprovisionsofChapter26oftheCodewhereupdatestonetmeteredcustomersolargenerationprojectsizingcriteriaarerequiredtoalignwithColoradostatute,Utilitypractices,andtheCity’sEnergyPolicyandClimateActionPlangoals;andWHEREAS,onMarch3,2015,CityCounciladoptedResolution2015-030,updatingCityEnergyPolicyandClimateActionPlangoalstoreduceemissionsto20%below2005levelsby2020,to80%below2005levelsby2030,andtobecarbonneutralby2050;andWHEREAS,onDecember6,2011,CityCounciladoptedOrdinanceNo.166,2011.enactingaratestructuretoencouragecustomernetmeteredenergygenerationandfurtherCityEnergyPolicyandClimateActionPlangoals;andWHEREAS,onAugust20,2019,theCityCounciladoptedResolution2019-091,acknowledgingtheglobalclimateemergencyandreaffirmingtheCity’scommitmenttocLimateaction,asreflectedinCityEnergyPolicyandClimateActionPlangoals;andWHEREAS,since2011,Chapter26oftheCityCodereflectedthesizinglimitonnewcustomernetmeteredenergygenerationsystemsfoundinColoradoRevisedStatutes§40-2-124.i.e.systemssizedtosupplynomorethanonehundredtwentypercentoftheaverageannualconsumptionofelectricitybytheconsumeratthecustomer’ssite(“120%Rule”);andWHEREAS,in2021,theColoradoGeneralAssemblyadoptedSB21-261,amendingthestatutorysizinglimitoncustomernetmeteredenergygenerationsystemstoallowsizesupto200%ofthe“reasonablyexpectedannualtotalconsumptionofelectricityatallpropertiesownedorleasedbyacustomerwithinapublicutility’sserviceterritory”;andWHEREAS,Section26-463oftheCityCodeprovidesthatrules,regulations.andstandardsapplicabletoelectricserviceandpersonsreceivingelectricserviceprovidedbytheCitymaybeadoptedbytheUtilitiesExecutiveDirectorandapprovedbyordinanceoftheCityCouncil;and WHEREAS.Sections26-464through26-470oftheCityCodeprovidethattheUtilitiesExecutiveDirectormayadvanceprogramstoassistcustomersorprovideincentivestocustomerstoreduceenergyconsumptioninfurtheranceofCouncil-adoptedpolicies;andWHEREAS,onJune28,2022,UtilitiesstallpresentedtoCouncilarecommendationtoremovethe120%RulelanguagefromChapter26oftheCityCodetoincentivizecustomerinvestmentinnetmeteredenergygenerationsystemsuptosizelimitssetbytheUtilitiesExecutiveDirectorbasedonCouncil-approvedadministrativerules;andWHEREAS,theproposedRenewableEnergySystemSizingadministrativerulesattachedheretoasExhibit“A”establishcriteriatoconsiderwhenenergyconsumptionisnotareliablefactorforlimitingthesizeofacustomer’snewnetmeteredsystem;andWHEREAS,onSeptember8,2022,theEnergyBoardreviewedtheRenewableEnergySystemSizingadministrativerules,andunanimouslyrecommendedapprovalbyCouncil;andWHEREAS,theCityCouncilhasdetermineditisdesirabletomaintainappropriatenetmeteringutilityservicepracticesandtherecommendedupdateofsuchpracticesintheCityCode.assetforthherein,isinfurtheranceofbenefitsavailabletoutilityratepayers;andWHEREAS,theUtilitiesExecutiveDirectorrecommendsCouncilapprovetheadministrativerulesinExhibit“A,”incorporatedbythisreference,toupdatesystemsizingpracticesandincentivizecustomerinvestmentinnetmeteredenergygenerationsystems;andWHEREAS,theCityCouncilhasdeterminedthatcontinuedcustomerinvestmentinnetmeteredenergygenerationsystemsdirectlybenefitselectricutilityratepayersbyfacilitatinglocalrenewableenergygeneration,andtherecommendedadministrativerules,regulations,andstandardssetforthinExhibit“A”areinthebestinterestsoftheelectricutilityanditscustomers,NOW,THEREFORE,BEITORDAINEDBYTHECOUNCILOFTHECITYOFFORTCOLLINSasfollows:Section1.ThattheCityCouncilherebymakesandadoptsthedeterminationsandfindingscontainedintherecitalssetforthabove.Section2.ThatSection26-463(a)oftheCodeoftheCityofFortCollinsisherebyamendedtoreadasfollows:Sec.26-463.-Electricrates;generalservicerules,regulationsandinterconnectionstandards.(a)Therules,regulationsandInterconnectionStandardsforGeneratingFacilitiesConnectedtotheFortCollinsDistributionSystemapplicabletoelectricserviceandpersonsgeneratingelectricityorreceivingelectricset-vicefromtheCityshallbesuchrules.regulationsandInterconnectionStandardsforGeneratingFacilitiesConnectedtotheFort CollinsDistributionSystemasareadoptedbytheUtilitiesExecutiveDirectorandapprovedbyordinanceoftheCityCouncil.Section3.ThatSection26-464(h).(p)(1)a.and(r)(1)b.oftheCodeoftheCityofFortCollinsareherebyamendedtoreadasfollows:Sec.26-464.-Residentialenergyservice,scheduleR.(h)Conservationassistance,rebatesandincentives.TheutilitymayestablishprogramstoassistcustomersorprovideincentivestocustomersinordertoreduceenergyconsumptionorsystempeakdemandsconsistentwithCouncil-adoptedpolicyapplicabletotheutility.Suchprogramsmayincludefinancialortechnicalassistance,incentivesorrebatesandshallbeconsistentwithprogramobjectivesapprovedbytheUtilitiesExecutiveDirector.TheUtilitiesExecutiveDirectorwillnotifyCouncilofchangestothereferencecustomerclassaverageannualelectricityconsumptionsizeusedtoevaluatenetmeteredsystems.(p)Netmetering.(1)a.ThequalifyingfacilityissizedaccordingtoprogramobjectivessetbytheUtilitiesExecutiveDirectortinderSubsection(h)ofthisSectiontosupplynomorethantwohundred(200)percentofacustomerclassaverageannualelectricityconsumptionorthecustomer-generatorsaverageannualelectricityconsumptionatthatsiteincludingallcontiguouspropertyownedorleasedbythecustomer-generator,withoutregardtointerruptionsincontiguitycausedbyeasements,publicthoroughfares.transportationrights-of-wayorutilityrights-of-way.ThecustomerclassaverageannualelectricityconsumptionsizewillbereviewedannuallybytheUtilitiesExecutiveDirectorunderSubsection(h)ofthisSection;and(r)Netmetering—Communitysolarprojects.(1)b.Thegeneratingcapacityofthecustomersinterestinasubscriber-ownedfacilityissizedaccordingtoprogramobjectivessetbytheUtilitiesExecutiveDirectorunderSubsection(h)ofthisSectiontosupplynomorethantwohundred(200)percentofacustomerclassaverageannual electricityconsumptionorthecustomer-generator’saverageannualelectricityconsumptionatthecustomer-generator’spointofservice.includingallcontiguouspropertyownedorLeasedbythecustomer,withoutregardtointerruptionsincontiguitycausedbyeasements,publicthoroughfares,transportationrights-of-wayorutilityrights-of-way.ThecustomerclassaverageannualelectricityconsumptionsizewillbereviewedannuallybytheUtilitiesExecutiveDirectorunderSubsection(h)ofthisSection.Section4.ThatSection26-465(h),(q)(l)a.and(r)(l)b.oftheCodeoftheCityofFortCollinsareherebyamendedtoreadasfollows:Sec.26-465.-All-electricresidentialservice,scheduleRE.(h)Conservationassistance,rebatesandincentives.TheutilitymayestablishprogramstoassistcustomersorprovideincentivestocustomersinordertoreduceenergyconsumptionorsystempeakdemandsconsistentwithCouncil-adoptedpolicyapplicabletotheutility.Suchprogramsmayincludefinancialortechnicalassistance,incentivesorrebatesandshallbeconsistentwithprogramobjectivesapprovedbytheUtilitiesExecutiveDirector.TheUtilitiesExecutiveDirectorwillnotifyCouncilofchangestothereferencecustomerclassaverageannualelectricityconsumptionsizeusedtoevaluatenetmeteredsystems.(q)Netmetering.(1)a.ThequaliingfacilityissizedaccordingtoprogramobjectivessetbytheUtilitiesExecutiveDirectorunderSubsection(h)ofthisSectiontosupplynomorethantwohundred(200)percentofacustomerclassaverageannualelectricityconsumptionorthecustomer-generator’saverageannualelectricityconsumptionatthatsiteincludingallcontiguouspropertyownedorleasedbythecustomer-generator,withoutregardtointerruptionsincontiguitycausedbyeasements,publicthoroughfares,transportationrights-of-wayorutilityrights-of-way.ThecustomerclassaverageannualelectricityconsumptionsizewillbereviewedannuallybytheUtilitiesExecutiveDirectorunderSubsection(h)ofthisSection;and(r)Netmetering—Communityso/arprojects. (1)b.Thegeneratingcapacityofthecustomer’sinterestinasubscriber-ownedfacilityissizedaccordingtoprogramobjectivessetbytheUtilitiesExecutiveDirectorunderSubsection(h)ofthisSectiontosupplynomorethantwohundred(200)percentofacustomerclassaverageannualelectricityconsumptionorthecustomer-generator’saverageannualelectricityconsumptionatthecustomerspointofservice,includingallcontiguouspropertyownedorleasedbythecustomer,withoutregardtointerruptionsincontiguitycausedbyeasements,publicthoroughfares,transportationrights-of-wayorutilityrights-of-way.ThecustomerclassaverageannualelectricityconsumptionsizewillbereviewedannuallybytheUtilitiesExecutiveDirectorunderSubsection(h)ofthisSection.Section5.ThatSection26-466(q)(1)a.and(r)(1)oftheCodeoftheCityofFortCollinsareherebyamendedtoreadasfollows:Sec.26-466.-Generalservice,scheduleCS.(q)Netmetering.(1)a.ThequalifiyingfacilityissizedaccordingtoprogramobjectivessetbytheUtilitiesExecutiveDirectorunderSubsection(g)ofthisSectiontosuppLynomorethantwohundred(200)percentofthecustomer-generator’saverageannualelectricityconsumptionatthatsiteincludingallcontiguouspropertyownedorleasedbythecustomer-generator,withoutregardtointerruptionsincontiguitycausedbyeasements,publicthoroughfares,transportationrights-of-wayorutilityrights-of-way;and;and(r)Netmetering—communitysolarprojects.(I)Netmeteringserviceisavailabletoacustomerwhoholdsanexclusiveinterestinaportionoftheelectricenergygeneratedbyacommunitysolarprojectwhenthegeneratingcapacityofthecustomer’sinterestissizedaccordingtoprogramobjectivessetbytheUtilitiesExecutiveDirectorunderSubsection(g)ofthisSectiontosupplynomotethantwohundred(200)percentofthecustomer- generator’saverageaimualelectricityconsumptionatthecustomer’spointofservice,includingallcontiguouspropertyownedorleasedbythecustomer,withoutregardtointerruptionsincontiguitycausedbyeasements,publicthoroughfares,transportationrights-of-wayorutilityrights-of-way.Section6.ThatSection26-467(r)(I)a.oftheCodeoftheCityofFortCollinsisherebyamendedtoreadasfollows:Sec.26-467.-Generalservice25,scheduleGS25.(r)Netmetering.(1)a.Thequalif,’ingfacilityissizedaccordingtoprogramobjectivessetbytheUtilitiesExeculiveDirectorunderSubsection(h)ofthisSectiontosupplynomorethantwohundred(200)percentofthecustomer-generatorsaverageannualelectricityconsumptionatthatsite,includingallcontiguouspropertyownedorleasedbythecustomer-generator,withoutregardtointerruptionsincontiguitycausedbyeasements,publicthoroughfares,transportationrights-of-wayorutilityrights-of-way;andSection7.ThatSection26-468(u)(l)a.oftheCodeoftheCityofFortCollinsisherebyamendedtoreadasfollows:Sec.26-468.-Generalservice50,scheduleGS5O.(u)Netmetering.(1)a.Thequalil5’ingfacilityissizedaccordingtoprogramobjectivessetbytheUtilitiesExecutiveDirectorunderSubsection(i)ofthisSectiontosupplynomorethantwohundred(200)percentofthecustomer-generator’saverageannualelectricityconsumptionatthatsite,includingallcontiguouspropertyownedorleasedbythecustomer-generator,withoutregardtointerruptionsincontiguitycausedbyeasements,publicthoroughfares,transportationrights-of-wayorutilityrights-of-way;and Section8.ThatSection26-469(v(1)a.oftheCodeoftheCityofFortCollinsisherebyamendedtoreadasfollows:Sec.26-469.-Generalservice750,scheduleGS750.(v)Netmetering.(1)a.Thequali’ingfacilityissizedaccordingtoprogramobjectivessetbytheUtilitiesExecutiveDirectorunderSubsection(1)ofthisSectiontosupplynomorethantwohundred(200)percentofthecustomer-generatorsaverageannualelectricityconsumptionatthatsite,includingallcontiguouspropertyownedorleasedbythecustomer-generator,withoutregardtointerruptionsincontiguitycausedbyeasements,publicthoroughfares,transportationrights-ofwayorutilityrights-of-way;andSection9.ThatSection26-470(s)(I)a.oftheCodeoftheCityofFortCollinsisherebyamendedtoreadasfollows:Sec.26-470.-Substationservice,schedule85.(s)Netmetering.(1)a.ThequalifyingfacilityissizedaccordingtoprogramobjectivessetbytheUtilitiesExecutiveDirectorunderSubsection(g)ofthisSectiontosupplynomorethantwohundred(200)percentofthecustomer-generator’saverageannualelectricityconsumptionatthatsite,includingallcontiguouspropertyownedorleasedbythecustomer-generator,withoutregardtointerruptionsincontiguitycausedbyeasements,publicthoroughfares,transportationrights-of-wayorutilityrights-of-way;andSection10.ThattheRenewableEnergySystemSizingadministrativerulessetforthinExhibit“A,”attachedheretoandincorporatedhereinbythisreference,areherebyapprovedbytheCityCouncilpursuanttoSection26-463(a)oftheCityCode. Introduced,consideredfavorablyonfirstreading,andorderedOctober,AD.2022,andtobeATTEST:this4thdayofOctober,AD.2022.‘FPassedandadoptedonfinalreadingthis18thATTEST:CityClerk EXHIBITAUtilitiesAdministrativePolicyIssueDate:SolarSystemSizingOctober2022Issuedby:KendallMinor,UtilitiesExecutiveDirectorPurpose:ThepurposeofthispolicyforSolarSystemSiringistoistoprovidespecificdetailsandproceduresfortheallowablesizingofcustomer-sitedrenewableenergygenerationresourcesinalignmentwithFortCollinsMunicipalCodeSections26-464through26-470.NothingcontainedhereinisintendedtosupersedetheFortCollinsMunicipalCode.Applicability:ThispolicyappliestotheUtilitiesElectricServiceAreasoftheCity.Authorizedby:CityCouncil,October2022UtilitiesExecutiveDirector,October2022ExecutiveSummaryTheseadministrativerulesadheretothelegalparametersandobjectivesestablishedintheFortCollinsMunicipalCodeSections26-464through26-470.TheprocessesandprocedurescontainedwithinarebasedonproceduresestablishedandtestedundertheSolarRebateProgram(Program)from2010todate.TheProgramismanagedbyUtilitiesEnergyServicesdivisionincollaborationwithLight&Power,FinanceandCustomerConnections.TheUtilitiesProgramManager(UPM)issupportedbytheUtilitiesProgramSpecialist(UPS)whoareprimarilyresponsiblefortheimplementationoftheserequirements.SolarSystemSizingSummary:Asdescribedinthispolicy:•Forcustomer-ownedsystems,allowablesolarsizingisdeterminedbycompliancewitheither:ointendedrenewableenergyoffsetisnomorethan200%ofthecustomer’sannualelectricuseatthetimeofinterconnectionapplication,orogeneratingcapacityisnomorethantheallowablereferencesystemsize(currently12kW-DC,basedontheresidentialcustomerclassaverageannualelectricityconsumption).•Systemsthatarenotownedbythecustomerwillbelimitedtoanintendedrenewableenergyoffsetoflessthan120%.•Ifsufficientelectricusehistoryisnotavailable,thenUtilityestablishedstandardvaluescanbesubstituted.•SizingtakesintoaccountgenerationonsiteandCommunitySolarshares.•SizingdoesnotincludetheGreenEnergyProgramparticipation,theshareofgridenergydeliveredtoallcustomersgeneratedbyrenewableresources,oron-sitebatterystorageequipment.Page1of2 EXHIBITAUtilitiesAdministrativePolicyIssueDate:SolarSystemSizingOctober2022Issuedby:KendallMinor,UtilitiesExecutiveDirectorSizingAssessmentTermsandMethods:SizinganalysisofsolarPVsystemsandotherqualifyingrenewablegeneratorsreferstothefollowingtermsandmethods:•Intendedrenewableenergyoffset=(modeledannualenergyproductionofallrenewablesources)!(averageannualelectricconsumption),where:oAnnualenergyproductionofallrenewablesourcesisthesumofthemodeledaverageannualenergyproduction(oraverageofobserveddataforinstalledgeneration)ofqualifiedrenewableenergygenerationsourceslocatedonsiteaswellasoffsitesourcesownedbythecustomerorbenefittingthatuniquecustomeraccount(suchasCommunitySolar)oAverageannualelectricconsumptionisthecustomer’stotalelectricenergyconsumptionatthesiteovertheprevious24calendarmonthsdividedby2,•Allowablereferencesystemsize:Staffwillannuallyreviewtheannualsectorconsumptionvaluesanddetermineasystemsizethatalignswiththe200%sizingcriteriaonanaveragebasis.Thevalueofthisreferencesizeis12kilowatts-DCasofOctober2022forresidentialcustomers,basedontheresidentialcustomerclassaverageannualelectricityconsumption.•Forcustomerswhohavelessthan6monthsofelectricusagehistorythat’srepresentativeoftheirfulloccupationofthepremises,thebestavailableinformationontheelectricuseoftheproposedbuilding(s)willbesubstituted.NewhomesmayuseaHomeEnergyRatingScore(HERS)orotherenergymodelingprovidedforenergycodecompliance.Forolderhomes,UtilitiesreferencedataforenergyusepersquarefootwillbecombinedwithLarimerCountyTaxAssessor’sofficebuildingsizedata(sumof“TotalSqFt”+the“Bsmt.Fin.SqFt”values)tocalculateannualelectricuse.Forexample,theaverageannualelectricconsumptionforsingle-familydetachedhomeswithgasheatbuiltbefore2020is3kwhpersquarefootofconditionedspace.SolarSystemSizeAllowance•Forsolarsystemsnotownedbytheownerofthepropertywhereinstalled,solarsystemsizingislimitedto120%ofintendedrenewableenergyoffset.•Forsolarsystemsownedbythesameownerasthepropertywhereitistobeinstalled,solarPVsystemsizingislimitedbythefollowingcombinationofprogramrules:•Atthetimeofprojectapplication,thecontractorshallprovidetheintendedrenewableenergyoffsetpercentage.•Staffwillapprovethesystemsizeifeitherofthefollowingconditionsaremet:ointendedrenewableenergyoffsetislessthan200%,orosystemsizeislessthantheallowablereferencesystemsize(currently12kW-DC,basedontheresidentialcustomerclassaverageannualelectricityconsumption).•Ifthetotalsizeofthegenerationsystemisgreaterthanallowablereferencesystemsizeandtheintendedenergyoffsetisgreaterthan200%,thecustomermaysubmitanexceptionrequestdocumentingwhythesystemisoversized.Exceptionsrelatedtoelectrificationofcustomerloadsoranticipatedincreasesinusemaybeapprovedonacase-by-casebasis.ThispolicyissubjecttorevisionatthediscretionoftheUtilitiesExecutiveDirector.Page2of2