HomeMy Public PortalAbout027-2018 - repealing the net metering and code generation (Ord. 54-2010) - StrickenCITY OF RICHMOND, INDIANA t
ORDINANCE NO.27-2018
A SPECIAL ORDINANCE DISCONTINUING NET METERING AND
COGENERATION RATES FOR RICHMOND POWER & LIGHT COMPANY
WHEREAS, the City of Richmond, Indiana owns and operates its own electric utility,
Richmond Power & Light Company (hereinafter "RP&L"), under the supervision and control of
the Board of Directors (hereinafter `Board"), of RP&L pursuant to IC 8-1.5-3-4; and
WHEREAS, in the seven years since it has been in effect, no customers have qualified
for, nor meet the terms and conditions of, receiving service under RP&L's Net Metering tariff
for an eligible solar, wind, biomass, geothermal, hydroelectric, or other renewable energy source,
as approved by Ordinance No. 54-2010; and
WHEREAS, in 2017, the Indiana General Assembly passed Senate Enrolled Act 309
("SEA 309") which exempted municipally -owned utilities, pursuant to IC 8-1-40-3(b) from
being required to provide net metering to customers; and
WHEREAS, legislative discussions surrounding the passage of SEA 309 also recognized
that under historic net metering arrangements, net metering customers were not paying the full
distribution costs necessary to serve them, resulting in a unfair subsidy between customers; and
WHEREAS, even without the Net Metering Rate, the customer self -generation of
renewable electricity is still permitted in RP&L's service territory and throughout Indiana,
provided it is done consistently with other applicable state and federal laws; and
WHEREAS, as it has in the past, RP&L will continue to work with customers installing
renewable energy projects on their premises to ensure safe and reliable interconnection with the
utility's system and the provision of supplemental and back-up power under RP&L's applicable
tariff rates; and
WHEREAS, RP&L's tariff also includes a Cogeneration "CG" Rate available to
customers operating a "qualifying facility" (a cogeneration or small power production facility) in
accordance with 170 IAC 4-4.1; and
WHEREAS, on June 28, 2017 in Cause No. 44898, the Indiana Utility Regulatory
Commission ("IURC" or "Commission") approved the assumption by the Indiana Municipal
Power Agency ("IMPA") of all obligations of its Commission -regulated municipal members,
including RP&L, to purchase energy and capacity offered by a qualifying facility under 170 IAC
4-4.1, thus rendering the CG Rate obsolete; and
WHEREAS, like with the Net Metering Rate, no customers are currently taking service
under the CG Rate, and any future cogeneration customers in RP&L's service territory may be
served by IMPA; and
WHEREAS, given these facts, the Board has recommended to the Council that it
discontinue RP&L's the Net Metering and Cogeneration Rates; and
WHEREAS, based upon the recommendation of the Board, and given that the Net
Metering and Cogeneration rates are not being used and/or are obsolete, the Council determines
that RP&L's tariff should be amended to remove the Net Metering and Cogeneration Rates.
NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF RICHMOND, INDIANA, THAT:
SECTION 1. The findings and determinations set forth in the preambles to this
Ordinance are hereby made findings and determinations of the Council.
SECTION 2. The tariff of Richmond Power & Light Company shall be amended to
discontinue the Net Metering and Cogeneration Rates, as set forth in the tariffs attached hereto as
"Exhibit A" to be filed and become effective upon approval by the Indiana Utility Regulatory
Commission.
SECTION 3. This ordinance shall be in full force and effect from and after its passage
and approval by the Mayor.
Passed and adopted by the Common Council of the City of Richmond, Indiana this
day of , 2018.
ATTEST:
Karen Chasteen, IAMC, MMC
RICHMOND COMMON COUNCIL
President
Jamie Lopeman
City Clerk
PRESENTED to the Mayor of the City of Richmond, Indiana, this day of
2018, at a.m./p.m.
City Clerk
Karen Chasteen, IAMC, MMC
APPROVED by me, David M. Snow, Mayor of the City of Richmond, Indiana, this day of
, 2018, at a.m./p.m.
Mayor
David M. Snow
ATTEST: , City Clerk
Karen Chasteen, IAMC, MMC
EXHIBIT A — Discontinued Tariff Provisions
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TERMS AND CONDITIONS
In order to be eligible for Net Metering, the Customer's generator must meet the following
requirements:
a. All kWh must be generated from the output of solar, wind, biomass, geothermal,
hydroelectric, or other renewable generation sources;
b. The generation equipment must be operated by the customer and located on the
Customer's premises;
c. The generator must operate in parallel with the Utility's transmission and distribution
facilities without adversely affecting the Utility's system and equipment and without
presenting safety hazards or threats to the reliability of service to the Utility, its
personnel and other Customers;
d. The Customer's generation must be intended primarily to offset all or part of the
Customer's requirements for electricity;
e. The name plate rating of Customer's generator must not exceed. 10 kW and the
Customer's generation must satisfy the Interconnection requirements specified below.
Customer shall make an application for Interconnection Service and execute an Interconnection
Agreement acceptable to the Utility.
Customer shall maintain homeowners, commercial, or other insurance providing coverage in the
amount of at least one hundred thousand dollars ($100,000) for the liability of the insured
against loss arising out of the use of generation equipment associated with Net Metering under
this tariff.
The supplying of, and billing for, service and all conditions applying thereto, are subject to the
Utility's General Terms and Conditions.
INTERCONNECTION
For generator systems 10 kW or smaller eligible for this tariff, the Utility's technical
requirements consist of:
a. IEEE 1547-2003, "IEEE Standard for Interconnecting Distributed Resources with
Electric Power Systems" (IEEE 1547).
b. Current version of ANSI/NFPA 70, "National Electrical Code" (NEC).
c. Any other applicable local building codes.
Inverter based systems listed by Underwriters Laboratories (UL) to UL Standard 1741,
published May 7, 1999, as revised January 17, 2001 (UL 1741), are accepted by the Utility as
meeting the technical requirements of IEEE 1547 tested by UL 1741.
Conformance with these requirements does not convey any liability to the Utility for damages
or injuries arising from the installation or operation of the generator system. The Utility may, at
its own discretion, isolate any Net Metering facility if the Utility has reason to believe that
continued interconnection with the Net Metering facility creates or contributes to a system
emergency. The Utility may perform reasonable on -site inspections to verify the proper
installation and continuing safe operation of the Net Metering facility and the interconnection
facilities, at reasonable times and upon reasonable advance notice to the Net Metering
Customer.
Customer shall operate the Net Metering facility in such a manner as not to cause undue
fluctuations in voltage, intermittent load characteristics or otherwise interfere with the operation of
Utility's electric system. Customers shall agree that the interconnection and operation of the
facility is secondary to, and shall not interfere with, Utility's ability to meet its primary
responsibility of furnishing reasonably adequate service to its customers.
Customer's control equipment for the Net Metering facility shall immediately, completely, and
automatically disconnect and isolate the facility from Utility's electric system in the event of a
fault on Utility's electric system, a fault on Customer's electric system, or loss of a source or
sources on Utility's electric system.
Customer shall install, operate, and maintain, at Customer's sole cost and expense, the Net
Metering facility in accordance with the manufacturer's suggested practices for safe, efficient
and reliable operation of the facility in parallel with Utility's electric system. Customer shall
bear full responsibility for the installation, maintenance and safe operation of the Net Metering
facility. Customer shall be responsible for protecting, at Customer's sole cost and expense, the
Net Metering facility from any condition or disturbance on Utility's electric system, including,
but not limited to, voltage sags or swells, system faults, outages, loss of a single phase of
supply, equipment failures, and lightning or switching surges.
Upon reasonable advance notice to Customer, Utility shall have access at reasonable times to the
Net Metering facility whether before, during or after the time facility first produces energy, to
perform reasonable on -site inspections to verify that the installation and operation of the facility
comply with the requirements of this tariff and to verify the proper installation and continuing
safe operation of the facilities. Utility shall also have, at all times, immediate access to breakers
or any other equipment that will isolate the Net Metering facility from Utility's electric system.
In non -emergency situations, Utility shall give Customer reasonable notice prior to isolating the
Net Metering facility.
Customer shall agree that, without the prior written permission from Utility, no changes shall
be made to the configuration of the Net Metering facility, as that configuration is described in
the Interconnection Agreement, and no relay or other control or protection settings specified in
the Interconnection Agreement shall be set, reset, adjusted or tampered with, except to the
extent necessary to verify that the facility complies with the Utility approved settings.
INTERCONNECTION AGREEMENT
FOR NET METERING FACILITIES
RICHMOND POWER & LIGHT COMPANY
THIS INTERCONNECTION AGREEMENT ("Agreement") is made and entered into
this day of , 20 , by and between Richmond Power & Light
Company ("Utility"), and ("Customer").
Utility and Customer are hereinafter sometimes referred to individually as "Party" or
collectively as "Parties".
WITNESSETH:
WHEREAS, Customer is installing, or has installed, solar, wind, biomass, geothermal,
hydroelectric, or other renewable generation equipment, controls, and protective relays and
equipment ("Generation Facilities") used to interconnect and operate in parallel with Utility's
electric system, which Generation Facilities are more fully described in Exhibit A, attached
hereto and incorporated herein by this Agreement, and as follows:
Location:
Generator Size and Type:
; and
WHEREAS, the name plate rating of the Generation Facilities does not exceed 10
kW; and
WHEREAS, Customer desires to receive service under Utility's Net Metering tariff.
NOW, THEREFORE, in consideration thereof, Customer and Utility agree as
follows:
1. Application. It is understood and agreed that this Agreement applies only to the
operation of the Generation Facilities described above and on Exhibit A.
2. Interconnection. Utility agrees to allow Customer to interconnect and operate the
Generation Facilities in parallel with Utility's electric system in accordance with any operating
procedures or other conditions specified in Exhibit A. By this Agreement, or by inspection, if
any, or by non -rejection, or by approval, or in any other way, Utility does not give any warranty,
express or implied, as to the adequacy, safety, compliance with applicable codes or
requirements, or as to any other characteristics of the Generation Facilities. The Generation
Facilities installed and operated by or for Customer shall comply with, and Customer represents
and warrants their compliance with: (a) the National Electrical Code and the National Electrical
Safety Code, as each may be revised from time to time; (b) Utility's rules and regulations
applicable to Net Metering Customers, and Utility's General Terms and Conditions for Electric
Service, each as contained in Utility's Electric Tariff and as each as may be revised from time to
time; and (c) all other applicable local, state, and federal codes and laws, as the same may be in
effect from time to time. Customer shall install, operate, and maintain, at Customer's sole cost
and expense; the Generation Facilities in accordance with the manufacturer's suggested
practices for safe, efficient and reliable operation of the Generation Facilities in parallel with
Utility's electric system. Customer shall bear full responsibility for the installation,
maintenance and safe operation of the Generation Facilities. Customer shall be responsible for
protecting, at Customer's sole cost and expense, the Generation Facilities from any condition
or disturbance on Utility's electric system, including, but not limited to, voltage sags or swells,
system faults, outages, loss of a single phase of supply, equipment failures, and lightning or
switching surges. Customer agrees that, without the prior written permission from Utility, no
changes shall be made to the configuration of the Generation Facilities, as that configuration is
described in Exhibit A, and no relay or other control or protection settings specified in Exhibit
A shall be set, reset, adjusted or tampered with, except to the extent necessary to verify that
the Generation Facilities comply with Utility approved settings.
3. Operation by Customer. Customer shall operate the Generation Facilities in such
a manner as not to cause undue fluctuations in voltage, intermittent load characteristics or
otherwise interfere with the operation of Utility's electric system. At all times when the
Generation Facilities are being operated in parallel with Utility's electric system, Customer
shall operate the Generation Facilities in a manner that no disturbance will be produced to the
service rendered by Utility to any of its other customers or to any electric system
interconnected with Utility's electric system. Customer understands and agrees that the
interconnection and operation of the Generation Facilities pursuant to this Agreement is
secondary to, and shall not interfere with, Utility's ability to meet its primary responsibility of
furnishing reasonably adequate service to its customers. Customer's control equipment for the
Generation Facilities shall immediately, completely, and automatically disconnect and isolate
the Generation Facilities from Utility's electric system in the event of a fault on Utility's
electric system, a fault on Customer's electric system, or loss of a source or sources on Utility's
electric system. The automatic disconnecting device included in such control equipment shall
not be capable of reclosing until after service is restored on Utility's electric system.
Additionally, if the fault is with Customer's Generation Facilities, such automatic
disconnecting device shall not be reclosed until after the fault is isolated from Customer's
facilities. Upon Utility's request, Customer shall promptly notify Utility whenever such
automatic disconnecting devices operate.
4. Access by Utility. Upon reasonable advance notice to Customer, Utility shall
have access at reasonable times to the Generation Facilities whether before, during or after the
time the Generation Facilities first produce energy, to perform reasonable on -site inspections to
verify that the installation and operation of the Generation Facilities comply with the
requirements of this Agreement and to verify the proper installation and continuing safe
operation of the Generation Facilities. Utility shall also have at all times immediate access to
breakers or any other equipment that will isolate the Generation Facilities from Utility's electric
system. The cost of such inspection(s) shall be at Utility's expense; however, Utility shall not be
responsible for any other cost Customer may incur as a result of such inspection(s). Utility shall
have the right and authority to isolate the Generation Facilities at Utility's sole discretion if
Utility believes that: (a) continued interconnection and parallel operation of the Generation
Facilities with Utility's electric system creates or contributes (or will create or contribute) to a
system emergency on either Utility's or Customer's electric system; (b) the Generation
Facilities are not in compliance with the requirements of this Agreement, and the non-
compliance adversely affects the safety, reliability or power quality of Utility's electric system;
or (c) the Generation Facilities interfere with the operation of Utility's electric system. In
nonemergency situations, Utility shall give Customer reasonable notice prior to isolating the
Generating Facilities.
5. Rates and Other Charges. Monthly charges to serve the Customer's net load
shall be determined with the Utility's Net Metering tariff and the standard service tariff under
which the Customer otherwise would be served. This Agreement does not constitute an
agreement by Utility to purchase or wheel power produced by the Generation Facilities, or to
furnish any backup, supplemental or other power or services associated with the Generation
Facilities, and this Agreement does not address any charges for excess facilities that may be
installed by Utility in connection with interconnection of the Generation Facilities. It is also
understood that if any such excess facilities are required, including any additional metering
equipment, as determined by Utility, in order for the Generation Facilities to interconnect with
and operate in parallel with Utility's electric system, then a separate excess facilities agreement
shall be executed by Utility and Customer.
6. Insurance. Customer shall procure and keep in force during all periods of parallel
operation of the Generation Facilities with Utility's electric system, homeowners, commercial,
or other insurance to protect the interests of Utility under this Agreement, with insurance carriers
acceptable to Utility, and in amounts not less than one hundred thousand dollars ($100,000) for
the liability of the insured against loss arising out of the use of generation equipment associated
with Net Metering under this rider. Customer shall deliver a certificate of insurance verifying the
required coverage to Utility at least fifteen (15) days prior to any interconnection of the
Generation Facilities with Utility's electric system, and thereafter as requested by Utility.
7. Indemnification. Customer shall indemnify and hold harmless the Utility, City
of Richmond, its employees, representatives, agents and subcontractors from and against all
claims, liability, damages and expenses, including attorney's fees, based on any injury to any
person, including the loss of life, or damage to any property, including the loss of use thereof,
arising out of, resulting from, or connected with, or that may be alleged to have arisen out of,
resulted from, or connected with, an act or omission by the Customer, its employees, agents,
representatives, successors or assigns in the construction, ownership, operation or maintenance
of the Customer's facilities used in connection with this Agreement. Upon written request of
the Utility, the Customer shall defend any suit asserting a claim covered by this Section 7. If
Utility is required to bring an action to enforce its rights under this Section 7, either as a
separate action or in connection with another action, and said rights are upheld, the Customer
shall reimburse such Utility for all expenses, including attorney's fees, incurred in connection
with such action.
8. Effective Term and Termination Rights. This Agreement shall become effective
when executed by both Parties and shall continue in effect until terminated in accordance with
the provisions of this Agreement. This Agreement may be terminated for the following reasons:
(a) Customer may terminate this Agreement at any time by giving Utility at least sixty (60)
days prior written notice stating Customer's intent to terminate this Agreement at the expiration
of such notice period; (b) Utility may terminate this Agreement at any time following
Customer's_ failure to generate energy from the Generation Facilities in parallel with Utility's
electric system within twelve (12) months after completion of the interconnection provided for
by this Agreement; (c) either Party may terminate this Agreement at any time by giving the
other Party at least sixty (60) days prior written notice that the other Party is in default of any of
the material terms and conditions of this Agreement, so long as the notice specifies the basis for
termination and there is reasonable opportunity for the Party in default to cure the default; or (d)
Utility may terminate this Agreement at any time by giving Customer at least sixty (60) days
prior written notice in the event that there is a change in an applicable rule or statute affecting
this Agreement.
9. Termination of Any pplicable Existing Agreement. From and after the date
when service commences under this Agreement, this Agreement shall supersede any oral
and/or written agreement or understanding between Utility and Customer concerning the
service covered by this Agreement and any such agreement or understanding shall be deemed
to be terminated as of the date service commences under this Agreement.
10. Force Majeure. For purposes of this Agreement, the term Force Majeure means
any cause or event not reasonably within the control of the Party claiming Force Majeure,
including, but not limited to, the following: acts of God, strikes, lockouts, or other industrial
disturbances; acts of public enemies; orders or permits or the absence of the necessary orders
or permits of any kind which have been properly applied for from the government of the
United States, the State of Indiana, any political subdivision or municipal subdivision or any
of their departments, agencies or officials, or any civil or military authority; unavailability of a
fuel or resource used in connection with the generation of electricity; extraordinary delay in
transportation; unforeseen soil conditions; equipment, material, supplies, labor or machinery
shortages; epidemics; landslides; lightning; earthquakes; fires; hurricanes; tornadoes; stout's;
floods; washouts; drought; arrest; war; civil disturbances; explosions; breakage or accident to
machinery, transmission lines, pipes or canals; partial or entire failure of utilities; breach of
contract by any supplier, contractor, subcontractor, laborer or materialman; sabotage;
injunction; blight; famine; blockade; or quarantine. If either Party is rendered wholly or partly
unable to perform its obligations under this Agreement because of Force Majeure, both Parties
shall be excused from whatever obligations under this Agreement are affected by the Force
Majeure (other than the obligation to pay money) and shall not be liable or responsible for any
delay in the performance of, or the inability to perform, any such obligations for so long as the
Force Majeure continues. The Party suffering an occurrence of Force Majeure shall, as soon as
is reasonably possible after such occurrence, give the other Party written notice describing the
particulars of the occurrence and shall use commercially reasonable efforts to remedy its
inability to perform; provided, however, that the settlement of any strike, walkout, lockout or
other labor dispute shall be entirely within the discretion of the Party involved in such labor
dispute.
Section 11. Choice of Law. This Agreement and the rights and duties of the parties
arising out of this Agreement shall be governed by, and construed in accordance with, the laws
of the State of Indiana without reference to the conflict of laws rules thereof. The parties hereby
submit to the jurisdiction of the Courts of Wayne County, Indiana for purposes of all legal
proceedings may arise under this Agreement. The parties hereto irrevocably waive, to the
fullest extent permitted by Applicable Law, any objection which either may have or hereafter
have to the personal jurisdiction of such court or the laying of the venue of any such proceeding
brought in such a court and any claim that any such proceeding brought in such a court has
been brought in an inconvenient forum. EACH OF THE PARTIES HERETO HEREBY
KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY RIGHTS IT
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION OR ARISING
OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY COURSE
OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR
WRITTEN), OF THE PARTIES.
IN WITNESS WHEREOF, the Parties have executed this Agreement, effective as of the
date first above written.
UTILITY
By:
Printed Name:
Title:
CUSTOMER
By:
Printed Name:
Title:
IRM..
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