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HomeMy WebLinkAboutAgenda Report - October 19, 2011 G-01 PHAhCITY OF LODI �PCOUNCIL COMMUNICATIO AGENDA TITLE: Public Hearing to Introduce an Ordinance 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: October 19,2011 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Public Hearing to Introduce an Ordinance 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' BACKGROUND INFORMATION: The purpose of this rider is to establish rates, terms and conditions for providing net metering services to customers generating electricity using renewable facilities one megawatt (MW) or less in size. Currently residential and small commercial customers generating electricitywith renewable facilities of 10 kW or less are net -metered; that is their meters deductfrom their usage the amount they generate, and they are billed on the net. Customers generating electricitywith renewable facilities greater than 10 kW and less than 1 MW are metered for consumption and generation separately; they pay the retail rate for all their usage and are paid for the energy they generate at the average wholesale cost plus the ECA. When AB 920 became effective on January 1, 2011 it required a number of changes to the co -metering component of the Lodi Electric Utility rate schedules. The changes, which require the purchase of customer generator power in excess of consumption, eliminate the advantage of using the co -metering schedule. The changes must be implemented in time to affect the 2011 calendar year of power consumption (net metering schedules do not result in a monthly bill, instead they are trued up at the end of the year). The simplest way to implement the changes is to eliminate the co -metering schedule and migrate all customer generators to the net metering schedule. Staff also recommendsthis path because Lodi is the only California Municipal utility to implement a co -metering schedule. Migrating all customer generators to net metering will bring the electric utility into compliance with AB 920 and bring Lodi into compliance with the industry standard. On the effective date of this ordinance, customer generators on the City's prior Schedule CEM - Co -Energy Metering Riderwill be converted to the City's Schedule NEM -Net Energy Metering APPROVED: ( —~ Konradt Bartlam, City Manager Public Hearing to Introduce an OrdinanceAmending 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" October 19,2011 Page 2 of 2 Rider. In calendaryear 2011, the annual Net Energy bill as provided in Lodi Municipal Code Section 13.20.225(D)(3), shall be calculated retroactiveto January 1, 2011 and the annual Excess Energy credit or payment (if any) shall be calculated retroactive to January 1, 2011. FISCAL IMPACT: Approximately $25,000 annual revenue reduction with existing solar installations. FUNDING: Not applicable. eth A; irkley Electric Utility Directsr Prepared By: Rob Lechner, Manager, Customer Service & Programs EK/RSUIst ORDINANCE NO. AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING CHAPTER 13.20, "ELECTRICAL SERVICE," BY REPEALINGAND 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 COUNCIL AS 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 purposeof this rider isto establish rates, terms, and conditions for providing net metering services to customers generating electricity using solar and wind facilities of ten k1 MW 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 contract ortariff providing for net energy metering, as defined below. B. APPLICABILITY: This schedule is applicable to service for customers where 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). Availabilityof this schedule to eligible customer-generatorswill beona first-come, first-served basis and will be available until such time the total rated generating capacity used by eligible customer -generators equals #we-ai;d one- ha� ive percent(2.6%) of the Cityof Lodi aggregate customerannual peak demand. The solar or wind generation source must: 1) have a capacity of a-Gkl MW or less, 2) be located on the customer -generator's premises, 3) be connected for parallel operationwith Lodi'sdistributionfacilities, and 4) be intendedforthe sole purposeof offsetting apart or all of the customer -generator's own electrical requirements. I n 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 interconnectionand parallel operation, are specified in a customer-specificElectrical Interconnection and Net Energy Metering Payment Agreement. C. RATES: Chargesfor electricity supplied by the City wilI be based on metered usage in accordance with 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: Other Agreements: A signed Electrical Interconnection and Net Metering PaymentAgreement betweenthe customer-generatorand the City is required for service underthis 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. Co-Enerav Meterina customers transferred to Net Metering pursuantto Lodi Municipal Code 13.20.227, may remain on the dual meter system. Net Enercy Metering customers, at their election may opt for the dual meter system. 3. Net Energy Metering and Billing: Net Energy is defined as measuring the difference between the electricity supplied bythe City through 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 informationon 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, butare not limitedto, System ResourceAdequacy Capacity and Local Resource Adequacy Capacity, if any. Environmental Attributes include, but are not limited to, Renewable P 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, beginningwith the month of interconnection of the customer's generating system with the City's electrical system. 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 -generator affirmatively elects 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: 13.20.227 — Conversion of Prior Schedule CEM — Co-Enernv Meterinn Rider: A. On the effective date of this Ordinance, customer nenerators on the City's prior Schedule CEM Co-Meterinn Riderwill be converted to the City's Schedule NEM-NetEnernvMeterinn Rider. In calendar year 2011. the annual Net Enernv bil I as provided in Lodi Municipal Code Section 13.20.225(D)(3). shall be calculated retroactiveto January 1.201 land the annual Excess Enernvcreditor pavment(if any) shall be calculated retroactive to January 1. 2011. r • 1IL ofii lo illpsJi 3 Nil MIMIC „ Net Energy MeteFing RideF, 2) be 1GGated on the . . Nil MIMIC s�}eet tG this sGhed�shall the ng to + Gity with the sGIe evoen+inn of Renewable EneFgy GFedits feF selaF and wind geReFatieR up to the amount of o�^g sitJe G)nsummptien. GapQnity AttFibutes innli d but ere not limited +n t are limit ,,,,,,,np , ReRewa Rnrtfnliie St reGGgRitiG, Renewable Energy Credits Greenhouse Gas Greditc and Emission Reds E;tinn Gredits if any. G: p ii• Go_ y nn will he .admin t d on .ten anni alined �iC62S.r ei{�y�v-i=ie�%�ie�eKlrry-vvm-pc-cecrmirTis.YteFecrvirarra�i�ivarrsccr basis,begn nine with the month of int nnnentitren of he—GUstamee F's- .7 . geneFating system with the pperied If a nredit nnnUmi iletinn results in a net nustemer_Gwned generating Gredit at the eRd of the annualized year, unused dollar GFedits will be set te zeFe and not be Garried into the new aRRualized yeaF unless the Gustemer generatoF so e the City shall eitheF pay the GUstemer geneFater OF GFethe GUStOmeF e Gest Fate speGified in SGhedule EGA plus the EReFgY Cost Adjustment averaged fnr the billing nerinds with evness generating 7 Rales aid Regulations: GtheF GOR itinns as speeif+ediR the City of F=!eGtFiG Utility ^^Irpt j�e..�R� }} Rules, shall apply to this e GGhedu1e SECTION 3. 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 mandatory duty 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 invalidity shall 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 become effective 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 bythe City of Lodi on or after January 1, 2012, orthe first date allowable under State law. 5 Approved this_ day of ,2011 BOBJOHNSON MAYOR ATTEST: RAND JOHL City Clerk State of California County of San Joaquin, ss. I, Randi Johl, City Clerk of the City of Lodi, do hereby certifythat Ordinance No. was introduced at a regular meeting of the City Council of the City of Lodi held October 19,2011, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held , 2011, by the following vote: AYES: COUNCIL MEMBERS— NOES: COUNCIL MEMBERS— ABSENT: COUNCIL MEMBERS— ABSTAIN: COUNCIL MEMBERS — Ifurther certifythat Ordinance No. was approved and signed bythe Mayoron the date of its passage and the same has been published pursuantto law. Approved to Form: D. STEPHEN SCHWABAUER City Attorney 6 RANDIJOHL City Clerk lOF4 7 0 Please immediately confirm receipt of this fax by calling 333-6702 CITY OF LODI P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS SUBJECT: PUBLIC HEARING TO CONSIDER INTRODUCING ORDINANCE 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" PUBLISH DATE: SATURDAY, OCTOBER 8,2011 TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: RANDI JOHL, CITY CLERK City cf Lodi P. O Box 3006 Lodi, CA 95241-1910 DATED: THURSDAY, OCTOBER 6,201 1 ORDERED BY: JEONIFER WROBisoN, CMC ASSISTANT CITY CLERK RANDIJOHL CITY CLERK MARIA BECERRA ADMINISTRATIVE CLERK Verify Appearance of this Legal in the Newspaper — Copy to File formAadvins.doc DECLARATION OF POSTING PUBLIC HEARING TO CONSIDER INTRODUCING ORDINANCE 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" On Thursday, October 6, 2011, in the City of Lodi, San Joaquin County, California, a Notice of Public Hearing to consider introducing ordinance 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' (attached and marked as Exhibit A) was posted at the following locations: Lodi Public Library Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum declare under penalty of perjury that the foregoing is true and correct. Executed on October 6, 2011, at Lodi, California. JVANIFER U. ROBISON, CMC ASSISTANT CITY CLERK N:\Administration\CLERK\Forms\DECPOSTEUD.DOC ORDERED BY: RANDIJOHL CITY CLERK MARIA BECERRA ADMINISTRATIVE CLERK • CITY OF LODI Carnegie Forum 305 West Pine Street, Lodi ie NOTICE OF PUBLIC HEARING Date: October 19,2 011 Time: 7:00 p.m. For information regarding this notice please contact: Rand! Johl City Clerk Telephone: (209) 333-6702 ICE OF PUBL 1G JEXF--=T�A NOTICE IS HEREBY GIVEN that on Wednesday, October 19,2011, at the hour of 7:00 p.m., or as soon thereafter as the matter may be heard, the City Council will conduct a public hearing at the Carnegie Forum, 305 West Pine Street, Lodi, to consider the following matter: a) Introduce an Ordinance 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" Information regarding this item may be obtained in the Electric Utility Department, 1331 South Ham Lane, Lodi, (209) 333-6762. All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk, City Hall, 221 West Pine Street, 2nd Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral statements may be made at said hearing. If you challenge the subject matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Clerk, 221 West Pine Street, at or prior to the close of the public hearing. By r of the Lodi City Council: City Clerk Dated: October 5, 2011 D. Stephen Schwabauer City Attorney CLERK\PUBHEAR\NOT(CES1Noteud.doo 10/5/11