HomeMy WebLinkAboutResolutions - No. 2006-120A RESOLUTION OF. THE L DI CITY COUNCIL AMENDING THE
LOOPELECTRIC UTILITY DEPARTMENT RULES TO PARALLEL
THE OALIF:.OHNIA PUBLIC UTILITIES COMMISSION RULES
RELATING TO THE AMOUNT OF LIABILITY INSURANCE
REQUIRED FOR SMALL ELECTRICAL GENERATORS THAT
ARE INTERCONNECTED WITH LODI'S SYSTEM
WHEREAS,.on March 22, 1939, the City Council adopted Resolution No. 89-29
formalizing the. Rules and Regulations by which electric service is furnished; and
WHEREAS,. amendments to the Electric Utility Department Rules and
Regulations are necessary from time to time; and
WHEREAS, the Electric Utility Department's Rule 21 governs the interconnection
nd .parallel operation of non -City -owned cogenerations and small pager producers,
which are normally referred to as Qualifying Facilities (Exhibit A)9 and
WHEREAS, the Electric Utility Department's Rule 21 defines the cast
responsibility, liability insurance, power equipment and appurtenances, metering and
operating requirements, and ether conditions that may be necessary to interconnect a
generating facility; and
WHEREAS,. the Electric Utility Department allows interconnection and operation
ofpan-Clt -owned generating facilities with needed liability insurance coverage of
$5jO 000 according to existing Rule .. Regulation No. 21 section C.2; and
WHEREAS, the insurance requirement seems excessive and prohibitive for small
generators like small solar photovoltaic (PV) and wind; and
WHEREAS, for purposes of establishing a reasonable insurance coverage for
small generating facilities, staff reviewed the interconnection agreements and
procedures of other electric utilities including federal and state agencies as shown in
Exhibit , and
WHEREAS, EUD recommends amending Rule & Regulation No. 21, Section; C.2
tri.conform to the California Public Utilities Commission Derision No. 00.12-037 with the
following liability insurance coverage for small generating facilities:
1. Greater than 100k '000,000 per occurrence
2. Greater than 20kW and less than or equal to 100k a $1,000,000 per
occurr ence
. 20k1 r less = $500,000 per occurrence
4. 1 OkW or less connected to residential customer = $200,000 per occurrence
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
amends Electric Utility Department Rules to parallel the California public, Utilities
Commission's rules concerning the amount of liability insurance required for qualifying
small electrical generators that are interconnected with Lodi,s system, to become
effective July 1, 2006.
Dated: June 21, 2006
I hereby certify that Resolution No. 2006-120 was passed and adapted by ,the
City Council of the City of Lo`i in a regular meeting held June 21, 2006, by the following
vote*.
0
COUNCIL MEMBERS — Beckman, Hansen, Johnson, Mountie,
and Mayor Hitchcock
COUNCIL MEMBERS ® Mone
COUNCIL MEMBERS — Bane
COUNCIL MEMBERS — Mane
�FEM., 6-X4,-.7..m...NIPERRIN
Interim City Clerk
AND REGU.LATION NO. 21
N ON -CITY -OWNED PARALLEL GENERATION
eferal
, The.0 ity will interconnect and operate in parallel with co -generators
and small power producers as defined in the Federal Energy,
Regulatory Commission (FERC) Order No.70. Such facilities shall'
be termed "Qualifying Facilities (QF)."
. Th City has the option of purchasing the power output of such QF
or providing facilities and services to allow sale to an adjacent utility
with whoa the owner of the QF has made prior contractual`
arrangements for receiving of such power.
3. Nothing in these Rules shall limit the City's ability to evaluate each
QF and determine terms and conditions that are mutually
satisfactory to all parties and insure safe and effective operation
without adverse effects on other customers and City equipment or
personnel.
B. Interconnection Costs
1. All costs incurred by the City for interconnection with the QF must
be borne by the QF.
. The OF shall pay all monthly costs incurred by the City and directly
associated with having the QF connected to its system, Le,
communication, adminiMration, etc,
3, if the City agrees to provide the means for a QF to sell its power to
ars adjacent utility, the OF shall pay the facility charge (wheeling
cost) periodically to the City for the coast of providing the facilities to
sell to an adjacent utility.
The QF shall defend, indemnify and hold harmless the City from
any and all liability arising from the operation and interconnection
of the CSF. The QF shall bear full responsibility for the installation
and safe operation of the equipment required to generate and
deliver energy to the point of interconnection.
b. One million dollars ($1,000,000) for each occurrence if the
Gross Nameplate Rating of the generating facility is greater
than twenty (20) M and less than or equal to one hundred
(100) kW; and
co Five hundred thousand dollars ($500,000) for each
occurrence if the Gross Nameplate Rating of the generating
facility is twenty (20) kW or less.
d, Two hundred thousand dollars ($200,000) for each
occurrence if the Gross Nameplate Rating of generating
facility is ten (10) kW or less and the generating facility is
connected to residential customer.
4. Each public liability policy shall name the City as an additional
insured, A copy of the said policy or certificate of insurance shall be
sent to the City Clerk of the City of Lodi. Provisions shall be made
for the City Clerk to be notified within five days of any cancellation
of the said insurance policy.
5The City shall not be liable whether in contract or in tort or under
any other legal theory to the owner of a QF, or the owner's
customers, or any other person or entity for (1) lost generation
revenue, (2) loss of use revenue or profit, (3) cost of capital, (4)
substitute use or performance or (5) for any other incidental,
indirect, special, or consequential damages,
D. Conditions of.interconneCtinn
i. The City shall allow interconnection between its facilities and QF on
a continuing basis as long as the parallel operation of the QF does
not degrade, in any way, the quality of electric service provided to
the City's other customers, The QF shall insure that its operation in
no way creates unsafe conditions either at its facility or on the
City's facilities.
Page No,. 21-2
2. The owner of the QF shall provide at no coast to the City a manually
operated and lockable, visual disconnect device that shall be for
the exclusive use of the City and accessible by City representatives
at all times. Usually such device will be an air switch or fined
cutouts located near the point of interconnection,
3. The protective switching equipment outlined above in paragraph
two (2) may be operated without notice or liability by the City or City
representative if, in the opinion of the City or its representative,
continued operation of the QF in connection with the utility's system
may create or contribute to a system emergency or safety hazard.
The City shall endeavor to minimize any adverse effects of such
operation on the Q'.
4. Any casts of interconnection incurred by the City due to the
interconnection of the CSF, which are over and above the
interconnection costs that would be incurred duo to the connection
of a comparable non -generating customer, shall be the
responsibility of the QF. Special modifications to the City's system
may be required if the generator output is large in relation to the
feeder capacity. It may be necessary to build a new feeder or re -
conductor to the nearest substation that is large enough to
accommodate the energy. Station modification may be necessary,
such as: voltage check scheme, supervisory control, special
protective relaying metering and a new circuit breaker position.
AftachmentA
ELECTRIC "I T
The owner of the QF shall enter into a written agreement with e
City for interconnection., sale or disposal of its power prior to actual
connection and operation of the QF,
.
Th.e.QF shall comply with all requirements of the National Electrical
Safety Code, American National Standards Institute (ANSI),
In.stitute of Electrical and Electronic Engineers (IEEE), American
Society of Mechanical Engineers (ASME), the National Electric.
Code, General Order No. 95 and all fool, state and federal rules
and regulations or codes which may be applicable.
InterconnO tion
The owner of the QF shall, to the point of interconnection, furnish,
install, operate and maintain in goad repair and without cost to the
City such relays, locks and seals, breakers, automatic
synchrani ers and other control and protective equipment as shall
be designated by the City as suitable for operation of such a
facility,
2. The owner of the QF shall provide at no coast to the City a manually
operated and lockable, visual disconnect device that shall be for
the exclusive use of the City and accessible by City representatives
at all times. Usually such device will be an air switch or fined
cutouts located near the point of interconnection,
3. The protective switching equipment outlined above in paragraph
two (2) may be operated without notice or liability by the City or City
representative if, in the opinion of the City or its representative,
continued operation of the QF in connection with the utility's system
may create or contribute to a system emergency or safety hazard.
The City shall endeavor to minimize any adverse effects of such
operation on the Q'.
4. Any casts of interconnection incurred by the City due to the
interconnection of the CSF, which are over and above the
interconnection costs that would be incurred duo to the connection
of a comparable non -generating customer, shall be the
responsibility of the QF. Special modifications to the City's system
may be required if the generator output is large in relation to the
feeder capacity. It may be necessary to build a new feeder or re -
conductor to the nearest substation that is large enough to
accommodate the energy. Station modification may be necessary,
such as: voltage check scheme, supervisory control, special
protective relaying metering and a new circuit breaker position.
-4�
kJTY OF LODI
F—CUMMUMMY-1-F P -I. 'AaKITIE11,11
5. The City shall be advised of the proposed start up and parallel time
for such facilities and a City representative shall be in attendance
and approve parallel operation. The design requirements may
change and will be reviewed in each instance.
F Protective .17-gi jinmpnt
The function of protective equipment, such as fuses, relays and circuit
breakers, is to promptly remove the in feed from the OF whenever. a :fault
occurs. The protective equipment requirements are not intended to protect
the QF from every possible source of damage. The OF may wish to install
additional protective equipment to protect its equipment. The requirements;
have been summarized into three groups with division by the size of the.total
generation. The division is only approximate and the requirements will be
reviewed in each instance.
1, Generator Size Less Than 10 KW:
a. The QF is to provide phase over current protection by
means of an over current relay or a breaker that provides
over current protection on each phase. The generator over
current breaker must have the following features, if used:
1 . Thermal, magnetic over current
2. Under voltage release
3, Solenoid tripping
b. A ground over current sensing scheme must be provided to
assure the isolation of the QF from the distribution system in
the event a ground fault occurs -ran the distribution line.
The protection scheme will vary depending on the
transformer connection. As an example, a transformer
connected Delta on the generator side of the transformer
and grounded Wye on the line side, will require a ground
over current relay be connected to the high voltage neutral
of the transformer.
C. Over and under voltage protection is required.
cl. Electrical relays or mechanical interlocks must be provided
to prevent the QF from being connected parallel to the City's
system, if the City's system is de -energized
Page No. 21-4
CITY OF LODI
ELECTRIC UTILITY DEPARTMENT
2. Generator Size 10 KW - 100 KW:
In addition to the requirements for generators less than 10 kw,
under and over frequency protection is required.
3.Gienerator Size Greater Than 100 KW
In addition to the requirements for generators 10 kw - 100 kw,
directional over current voltage restrained relays will be required in
lieu of the phase over current relays (51).
G. ljower Factor
The power output of the OF must approach unity power factor when operated
in parallel with the City's facilities, Equipment shall be installed to correct.. any
deficiencies in power factor by the owner of the QF and at the QPS expen . se.
H.
1. The point of metering. shall be the interface of ownership between
the QF and the City. Two watt-hour meters with detents will be
required, one for sales to the QF by the City and one for sales to
the City by the QF. At the City's option, additional metering for
generation data collection and reactive measurements may be
required. The QF is responsible for furnishing all equipment
required to receive the City's metering transformers, meters and
other equipment. The customer shall submit his switchboard and
metering drawings to the City for approval prior to manufacture.
2. The City 'shall own and maintain all necessary meters and
associated equipment utilized for billing and monitoring the QF as
well as the customer's load.
QF Qgratin e uirerr�ents
This section provides the operating requirements that the QF must follow.
I The operation of the QF must not reduce the quality of service to
o . ther customers. Abnormal voltages, currents, frequencies, or
interruptions are not permitted.
2, The QF will at no time energize a de -energized City circuit.
3. The QF shall not bypass or modify any of the protective equipment,
Att.ach.mentA CITY OF LODI
ELECTRIC UTILITY DEPARTMENT
4, B.P.fore.the QF attempts to reconnect his system in parallel with the.
City's system approval from the City Utility Operator must be
obtained; Approval is not required if parallel operation ceased due
to a lack of sufficient power to the prime mover (Such as lack of
wind).
5The QF shall maintain a daily operation log for the generation
facility. Such log shall contain information on unit parallel and
separation time, maintenance, outages, trip operation and other
u . nusuaf events. KW and KVAR operating levels may also be
required. The City shall have the right to periodically review these
logs.
6� The QF is responsible for performing scheduled maintenance on
the equipment to keep the facility in proper operating condition.
The City reserves the right to inspect the QF.
7, The City reserves the right to discontinue parallel generation with
reasonable notice for any of the following reasons. -
a.. The City needs to perform non -emergency maintenance, repair
or other work on the City system.
b. The QF degrades the quality of service to other customers.
C.. Inspection of the QF or operation log reveals a hazardous
condition or a lack of scheduled maintenance,
8. The City reserves the right to open the main disconnecting device
and cease parallel operation without prior notice in the event of a
system emergency,
(End)
Effective July 1, 2006
�*age No. 21-6
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