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HomeMy WebLinkAboutAgenda Report - November 3, 2010 K-01AGENDA ITEM K-01 CITY OF LODI ,. COUNCIL COMMUNICATION AGENDA TITLE: Ordinance No. 1833 Entitled, "An Ordinance of the Lodi City Council Amending Chapter 13.20, `Electrical Service,' by Repealing and Reenacting Section 13.20.225, `Schedule NEM — Net Energy Metering Rider,' and Section 13.20.227, `Schedule CEM — Co -Energy Metering Rider"' MEETING DATE: PREPARED BY: November 3,2010 City Clerk RECOMMENDED ACTION: Motion waiving reading in full and (following reading by title) adopting the attached Ordinance No. 1833. BACKGROUND INFORMATION: Ordinance No. 1833 entitled, "An Ordinance of the Lodi City Council Amending Chapter 13.20, `Electrical Service,' by Repealing and Reenacting Section 13.20.225, `Schedule NEM — Net Energy Metering Rider,' and Section 13.20.227, `Schedule CEM — Co -Energy Metering Rider,"' was introduced at the regular City Council meeting of October 20,2010. ADOPTION: With the exception of urgency ordinances, no ordinance may be passed within five days of its introduction. Two readings are therefore required —one to introduce and a second to adopt the ordinance. Ordinances may only be passed at a regular meeting or at an adjourned regular meeting; except for urgency ordinances, ordinances may not be passed at a special meeting. Id. All ordinances must be read in full either at the time of introduction or at the time of passage, unless a regular motion waiving further reading is adopted by a majorityof all council persons present. Cal. Gov fCode§ 36934. Ordinances take effect 30 days after their final passage. Cal. Gov fCode§ 36937. This ordinance has been approved as to form by the City Attorney. FISCAL IMPACT: FUNDING AVAILABLE: RJ/jmr Attachment None. None required. APPROVED: City Clerk Ko?fradt Bartlam, Interim City Manager N:\Administration\CLERK\Council\COUNCOM\Ordinancel. DOC ORDINANCE NO. 1833 AN ORDINANCE OF THE LODI CITY COUNCILAMENDING CHAPTER 13.20, "ELECTRICAL SERVICE," BY REPEALING AND REENACTING SECTION 13.20.225, "SCHEDULE NEM— NET ENERGY METERING RIDER," AND SECTION 13.20.227, "SCHEDULE CEM — CO -ENERGY METERING RIDER BE IT ORDAINED BY THE LODI CITY COUNCILAS FOLLOWS: SECTION 1. Lodi Municipal Code Section 13.20.225, "Schedule NEM — Net Energy Metering Rider," is hereby repealed and reenacted to read as follows: A. PURPOSE: The purpose of this rider is to establish rates, terms, and conditions for providing net metering services to customers generating electricity using solar and wind facilities of 10kW or less in size. This rider complies with California State legislation requiring every electric utility in the state, including municipally owned utilities, to develop a standard contractor tariff providingfor net energy metering, as defined below. B. APPLICABILITY: This schedule is applicable to service for customerswhere apart or all of the electrical requirements of the customer can be supplied from a solar or wind power production source owned and operated by the customer (customer - generated). Availability of this scheduleto eligible customer-generatorswill be on a first-come, first-served basis and will be available until such time the total rated generating capacity used by eligible customer -generators equals two and one-half percent (2.5%) of the City of Lodi aggregate customer annual peak demand. The solarorwind generation source must: I ) have a capacityof 10kW or less, 2) be located on the customer-generator'spremises, 3) be connected for parallel operation with Lodi'sdistribution facilities, and 4) be intended for the sole purpose of offsetting a part or all of the customer -generator's own electrical requirements. In no case shall the power or energy generated bythe customer -owned solar or wind source be available for resale, except as specified under this rider. Additional terms and conditions for service, including terms of interconnection and parallel operation, are specified in a customer -specific Electrical Interconnectionand Net Energy Metering Payment Agreement. C. RATES: Charges for electricity supplied by the Citywil I be based on metered usage in accordancewith Special Conditions (3) and (5) below. Rates charged underthis schedule will be in accordance with the eligible customer -generator's otherwise applicable rate schedule. Public Benefit charges and monthly customer charges shall not be by -passable. D. SPECIAL CONDITIONS: 1. Other Agreements: A signed Electrical Interconnection and Net Metering PaymentAgreement betweenthe customer-generatorand the City is required for service under this schedule. 2. Metering Equipment: Net energy metering shall be accomplished using a single meter capable of registering the flow of electricity in two directions. If customer's existing electrical meter is not capable of measuring the flow of electricity in two directions, the customer - generator shall be responsible for all expenses involved in purchasing and installing a meter that is capable of measuring electricity in both directions. 3. Net Energy Metering and Billing: Net Energy is defined as measuring the difference betweenthe electricity supplied bythe Citythrough the electric grid to the eligible customer -generator and electricity generated by an eligible customer -generator and fed back into the electric grid over a 12 -month period. In the event that the electricity supplied by the City during the 12 - month period exceeds the electricity generated by the eligible customer -generator during the same period, the eligible customer is a net electricity consumer and the City shall bill the customerfor the net consumption during the 12 -month period based on the retail price per kilowatt-hourFor eligible customer -generator's rate class overthe same period. The City shall provide the customer -generator with net electricity consumption information on each regular bill. That information shall include the current amount owed to the City for the net electricity consumed. Customer -generator may exercise the option to pay monthly for the net energy consumed, but in any event shall be responsible for any payments due at the end of each 12 -month period. 4. Attributes: Any Capacity Attributes or Environmental Attributes associated with the renewable energy produced by the customer - generator at sites subject to this schedule shall belong to the City with the sole exception of Renewable Energy Credits for solar and wind generation up to the amount of on-site consumption. Capacity Attributes include, but are not limited to, System ResourceAdequacy Capacity and Local Resource Adequacy Capacity, if any. Environmental Attributes include, but are not limited to, Renewable Portfolio Standard recognition, Renewable Energy Credits, Greenhouse Gas Credits, and Emission Reduction Credits, if any. 5. Excess Energy: Net energy metering will be administered on an annualized basis, beginning with the month of interconnection of the customer's generating system with the City's electrical system. 2 Electric solar and wind generation production may result in a dollar credit carrying forward to the next billing period. If a credit accumulation results in a net customer -owned generation credit at the end of the annualized year, unused dollar credits will be set to zero and not be carried into the new annualized year unless the customer-generatoraffirmativelyelects to be paid for such excess. If the customer -generator so elects, the City shall either pay the customer -generator or credit the customer generator's account for such excess at the Baseline Energy Cost rate specified in Schedule ECA plus the Energy Cost Adjustment rate averaged for the billing periods with excess generation. 6, Rulesand Regulations: Other conditions specified inthe Cityof Lodi Electric Utility Department's Rules, Regulations and Engineering Standards shall apply to this electric rate schedule. SECTION 2. Lodi Municipal Code Section 13.20.227, "Schedule CEM — Co -Energy Metering Rider," is hereby repealed and reenacted to read as follows: A. PURPOSE: The purpose of this rider is to establish rates, terms, and conditions for providing co -energy metering service to customers generating electricity using solar and wind facilities greater than 10 kW and not more than 1 MW in size. This rider complies with California State legislation allowing municipally owned utilities to develop a standard contract or tariff providing for co -energy metering, as defined below. B. APPLICABILITY: This schedule is applicable to service for customers where a part or all of the electrical requirementsof the customer can be supplied from a solar or wind power production source owned and operated by the customer (customer -generator). Availability of this schedule to eligible customer -generators will be on a first-come, first-served basis and will be available until such time the total rated generating capacity used by eligible customer -generators equals two and one-half percent (2.5%) of the City of Lodi aggregate customer annual peak demand. The solar orwind generation source must: 1 >e rated not more than 1 MW and not be eligible for Schedule NEM — Net Energy Metering Rider, 2) be located on the customer -generator's premises, 3) be connected for parallel operation with Lodi's distribution facilities, and 4) be intendedfor the sole purpose of offsettinga partorall of the customer -generator's own electrical requirements. In no case shall the power or energy generated by the customer -owned solar or wind source be available for resale, except as specified under this rider. Additional terms and conditions for service, including terms of interconnection and parallel operation, are specified in a customer-specificElectricallnterconnection and Co -Energy Metering Payment Agreement. C. RATES: Charges for electricity supplied bythe Citywill be based on the co -metered usage in accordancewith Special Conditions (3), (4), and (6) below. Rates charged under this schedule will be in accordance with the eligible customer -generator's otherwise applicable rate schedule. 3 1. EnergySupplied Charges: The metered electricity supplied bythe Cityto the customer -generator over the applicable billing period will be billed at the applicable service rate in effect when the service was rendered. All conditions, charges, adjustments and taxes under the applicable rate schedule shall be in effect. None of the charges of the applicable rate schedule shall be by -passable. 2. EnergyTransmitted Credit: The metered solar and wind electricity generated bythe customer -generator and supplied to the Cityoverthe applicable billing periodwill becreditedatthe Baseline Energy Cost rate specified in Schedule ECA plus the Energy Cost Adjustment rate for the applicable billing period. D. SPECIAL CONDITIONS: Other Agreements: A signed Electrical Interconnection and Co -Energy Metering PaymentAgreement between the customer-generatorand the City is required for service under this schedule. 2. Metering Equipment: Co -Energy metering shall be accomplished using two meters — the customer revenue meter of record and a separate generation meter. The customer -generator shall be responsible for all expenses involved in purchasing and installing required meters. 3. Co -Energy Metering: Co -Energy metering is defined as the separate measurementof (i)the electricity supplied bythe Citythrough the electric grid to the eligible customer -generator and (ii) the electricity generated by an eligible customer -generator from the customer -owned solar or wind source. 4. Co -Energy Billing: The customer-generatorshall receive a "net bill"from the City for each billing period. The co -energy metering net billing calculation shall be composed of the Energy Supplied Charges less the Energy Transmitted Credit. All net charges are due at the time of billing. Electricgeneration production may result in a dollar credit carryingforward to the next billing period, subject to Special Condition (6) below. S. Attributes: Any Capacity Attributes or EnvironmentalAttributes associated with the renewable energy produced by the customer -generator at sites subject to this schedule shall belong to the City with the sole exception of Renewable Energy Credits for solar and wind generation up to the amountof on-site consumption. Capacity Attributes include, but are not limited to, System Resource Adequacy Capacity and Local Resource Adequacy Capacity, if any. Environmental Attributes include, but are not limited to, Renewable Portfolio Standard recognition, Renewable Energy Credits, Greenhouse Gas Credits, and Emission Reduction Credits, if any. 6. Excess Energy: Co -Energy metering will be administered on an annualized basis, beginning with the month of interconnection of the customer's generating system with the City's electrical system. Electric generation production may result in a dollar credit carrying forward to the next billing period. If credit accumulation results in a net customer -owned generation 0 credit at the end of the annualized year, unused dollar credits will be set to zero and not be carried into the new annualized year unless the customer - generator affirmatively elects to be paid for such excess. If the customer - generator so elects, the City shall either paythe customer-generatoror credit the customer generator's account for such excess at the Baseline Energy Cost rate specified in Schedule ECA plus the Energy Cost Adjustment rate averaged for the billing periods with excess generation. 7. Rules and Regulations: Other conditions as specified in the City of Lodi Electric Utility Department's Rules, Regulationsand Engineering Standards shall apply to this electric rate schedule. SECTION & No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatoryduty of care towards persons or propertywithin the City or outside of the City so as to provide a basis of civil liabilityfor damages, except as otherwise imposed by law. SECTION4. Severability. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidityshall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application. To this end, the provisions of this ordinance are severable. The City Council hereby declares that itwould have adopted this ordinance irrespectiveof the invalidityof any particular portion thereof. SECTION 5. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. SECTION & This ordinance shall be published pursuantto law and shall becomeeffective 30 days from the date of passage and adoption. SECTION 7. The amended Schedules referenced above shall be effective on applicable electric utility billings prepared by the City of Lodi on or after February 1, 2010, or the first date allowable under State law. ATTEST: R City Clerk 4J Approved this Td day of November, 2010 l PHIL KAT KIAN MAYOR State of California County of San Joaquin, ss. I, Randi Johl, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1833 was introduced ata regular meeting of the City Council of the City of Lodi held October20,2010, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held November 3, 2010, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce, and Mayor Katzakian NOES: COUNCIL MEMBERS— None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None further certifythat Ordinance No. 1833was approved and signed bythe Mayoron the date of its passage and the same has been published pur W. L City Clerk M