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Home My WebLink AboutAgenda Report - November 2, 2011 J-01AGENDA ITEM J-01 CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Ordinance No. 1853 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: November2,201 1 City Clerk RECOMMENDED ACTION: Motion waiving reading in full and (following reading by title) adopting the attached Ordinance No. 1853. BACKGROUND INFORMATION: Ordinance No. 1853 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 19,2011. 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 majority of all council persons present. Cal. Gov'f Code§ 36934. Ordinances take effect 30 days after their final passage. Cal. Gov'f Code § 36937. This ordinance has been approved as to form by the City Attorney. FISCAL IMPACT: None. FUNDING AVAILABLE: None required. (0 ::::� Ran ' ohl City Clerk RJ/jmr Attachment APPROVED: Konradt Bartlam, City Manager N:\Administration\CLERK\Council\COU NCOM\Ordinance 1. DOC ORDINANCE NO. 1853 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" 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 Lodi Municipal Code Section 13.20.225, "Schedule NEM — Net Energy Metering Rider," is hereby repealed and reenacted to read as follows: A. PURPOSE: The purpose of this rider isto establish rates, terms, and conditionsfor providing net metering services to customers generating electricity using solar and wind facilities of 1 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 contractor tariff 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 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 equalsfive percent of the City of Lodi aggregate customer annual peak demand. The solar orwind generation source must: 1) have a capacity of 1 MW or less, 2) be located on the customer -generators premises, 3) be connected for parallel operation with Lod i's distributionfaciIities, and 4) be i ntended for th e sole purposeof 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 solarorwind 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-specificElectrical Interconnectionand Net Energy Metering Payment Agreement. C. RATES: Chargesfor electricity su ppl ied bythe Citywill be based on metered usage in accordance with Special Conditions (3) and (5) below. Rates charged under this 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 between the 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 -Energy Metering customers transferred to Net Metering pursuant to Lodi Municipal Code 13.20.227, may remain on the dual meter system. Net Energy 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 betweenthe electricity supplied bythe Citythroughthe 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 customer for the net consumption during the 12-monthperiodbasedontheretail price per kilowatt-hourfor eligible customer-generator'srate 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 notlimitedto, 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. 2 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 periodswith excess generation. 6, Rules and Regulations: Otherconditions specified in the City of 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 -Energy Metering Rider: A. On the effective date of this Ordinance, customer generators on the City's prior Schedule CEM Co -Metering Rider will be converted to the City's Schedule NEM -Net Energy Metering Rider. In calendar year 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 retroactiveto January 1, 2011. SECTION 3. No Mandatory Duty of Care. This ordinance is not intendedto 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 property within the City or outside of the City so as to provide a basis of civil liability for 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 haveadoptedthis ordinance irrespective of 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 6. 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 by the City of Lodi on or after January 1, 2012, orthe first date allowable under State law. 3 State of California County of San Joaquin, ss. Approved this 2"d day of November, 2011 '/�BOqBJOHN#bN MAYOR I, Randi Johl, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1853 was introduced at a regular meeting of the City Council of the Cityof Lodi held October 19,2011, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held November2, 2011, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Katzakian, Mounce, Nakanishi, and Mayor Johnson NOES: COUNCIL MEMBERS— None ABSENT: COUNCIL MEMBERS— None ABSTAIN: COUNCIL MEMBERS— None I further certify that Ordinance No. 1853was approved and signed by the Mayoron the date of its passage and the same has been published pursuantto law. &IODHL Approved to Form: D. STEPHEN SCHWABAUER City Attorney 9