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HomeMy WebLinkAbout003 - 02/02/2010 - AMENDING CHAPTER 26, ARTICLE VI OF THE CITY CODE RELATING TO NET METERED ELECTRIC SERVICE 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 of the Code of the City of Fort Collins is hereby amended by the deletion of the definition of"IEEE 1 S47" in its entirety as follows: Section 2. 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 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 of the Code ofthe 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 metering service 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 ofFort 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: See. 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 utilityto 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 of the Code of the City of Fort 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: Sec. 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. 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. Mayor ATTEST: City Clerk` Passed and adopted on final reading on the 2nd day of ruary, A.D. 2010. i� ayo AT TEST: City Clerk -9-