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HomeMy WebLinkAboutordinance.council.011-81RECORD OF PROCEEDINGS ORDINANCE NO. _~__ (Series of 1981) AN ORDINANCE ESTABLISHING RATES~ RULES AND REGULATIONS FOR THE PURCHASE OF ELECTRIC POWER FROM AND SALE OF ELECTRIC POWER TO QUALIFYING CO-GENERATION AND SMALL POWER PRODUCTION FACILITIES PURSUANT TO THE REQUIREMENTS OF THE PUBLIC UTILITY REGULATORY POLICY ACT OF 1978 AND THE REGULATIONS OF THE FEDERAL ENERGY REGULATORY COMMISSION WHEREAS~ Sections 201 and 210 of the Public Utility Regula- tory Policy Act of 1978 (PURPA) (16 U.S.C. Section 2601 et seq.) and the regulations promulgated thereunder by the Federal Energy Regulatory Commission (FERC), require electric utilities to offer to purchase available electric energy from qualifying co-genera- tion and small power production ~acilities at rates which are lust and reasonable to the rate payers of the utility, in the public interest~ and which do not discriminate against co-generators or small power producers; and WHEREAS, Section 210 of PURPA also requires electric utili- ties to provide electric service to qualifying facilities at rates which are just and reasonable, in the public interest~ and which do not discriminate against co-generators and small power pro- ducerS; and WHEREAS, the Federal Energy Regulatory Commission has adopted regulations pursuant to PURPA requiring electric utilities to implement their own regulations to accomplish the intent of PURPA; and WHEREAS, Section 23-18 of the Aspen Municipal Code provides that ail electric rates shall be set forth in the most recent rate schedule to be set by the City Council~ and WHEREAS~ the City Council desires tlo implement the require- ments of Sections 201 and 210 of PURPA and the regulations of the Federal Energy Regulatory Co~nission, adopted pursuant thereto by RECORD OF PROCEEDINGS 100 Leaves establishin9 additiona± rates, rules and regulations for the pur- chase of electric power from and the sale of electric power to qualifying co-generation and small power production facilities to be added to the most recent rate schedule of the City of Aspen Electric Department. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO; Section 1 The City Council does hereby establish, approve and adopt the following rates, rules and regulations of the City of Aspen Elec- tric Department for the purchase of electric power from and the sale of electric power to qualifying co-generation and small power production facilities, said rates, rules and regulations to be added to the most recent rate schedule of the City of Aspen Elec- tric Department; PURCHASE OF POWER FROM AND SALE OF POWER TO CO-GENERATION AND SMALL POWER PRODUCTION FACILITIES (a) Availability. This service shall be available within the present area serviced Dy the City of Aspen Electric Department. (b) Appl icabii i ry.._ This schedule applies to co-gener.ation and small power production facilities of 100 kilowatts or less operated in parallel with the City of A~pen's electric system at the established primary or secondary voltage of the dis- tribution system and having three phase generators. This schedule may also apply to generators of single-phase electric energy if approved in advance by the electric department superintendent. Terms under which qualifying facilities may provide capacity in excess of 100 kW to the city shall be established by separate contract. (c) Qualification for Parallel Generation Rates and Service. As a condition of qualifying for parallel generation under this schedule, each potential qualifying facility ("Applicant") shall consult the city' in advance of any construction and provide at the city's request, informa- tion which will enable the city to determine if the cri- teria and standards for qualification as set forth here- RECORD OF PROCEEDINGS 100 Leaves in, including the eligibility standards issued by the Federal Energy Regulatory Commission (FERC) , have been, or will be, satisfied. In the event that, after review of such information, the city has reason to believe that the Applicant does not meet such eligibility standards, the city shall notify the Applicant in writing, together with the city's reasons for such determination of non- eligibility. If, thereafter, the Applicant obtains the qualifying certificate from the FERC, it shall provide a copy thereof to the city. Receipt of a qualifying cer- tificate issued by the FERC shall constitute eligibility for service provided by the city. (d) Monthly Rate A. RANDOM POWER GENERATION Energy Payment, per kilowatt-hour all kilowatt-hours delivered Fuel Cost Adjustment, per kilowatt-hour All kilowatt-hours delivered shall be charged at the current monthly rate charged the city by Public Service Company of Colorado, the city's wholesale electric supplier Less: Administrative Charge per Account (see (o) below) $ .01147 $ 5.00 Monthly Rate B. FIRM POWER GENERATION: Capacity pa~nent, per kilowatt of Billing Capacity Lowest on-peak kilowatt delivered Energy Payment, per kilowatt-hour All kilowatt-hours delivered Fuel Cost Adjustment, per kilowatt-hour Ail kilowatt-hours delivered shall be charged at the current moQthly rate charged the city by Public Service Company of Colorado, the city's wholesale electric supplier Less: Administrative Charge per Account (see (o) below) $ 7.44 $ .01147 $ 5.00 (e) Adjustment Clause. The electric rates described in (c) above shall be adjusted from time to time as !the City's wholesale electric supplier, Public Service Company of Colorado~ adjusts rates charged to the city. Further, if the city, as a result of its purchases from Seller(s) under this schedule, incurs any additionaI charges which it is obligated to pay under its contract with its wholesale supplier, such additional charges shall be assessed against all Sellers in ~a manner determined to be equitable by the city. 3 RECORD OF PROCEEDINGS ( f ) Me as ured Cap_a_qc i__t_~_L (g) 100 Leaves The lowest 30-minute integrated kilowatt capacity delivered during the period from 7:00 A.M. to 11;00 P.M. on any and all days of the week. Electric Services Supplied by the Utilit~t This scnedule does not provide for any electric services by the city to Seller. If Seller requires supplemental, backup, interruptible or maintenance power services from the city, Seller shall apply for such service and the city will enter into separate electric service contract arrangements, taking into consideration any additional cost the city may incur in providing any of these ser- vices. If the Seller receives such service, there shall be no interconnection between that service and the Sel- ler's qualifying cogeneration or small power production facility beyond the city's point of delivery. (h) (i) Land Rights. Seiier shall grant to the City of Aspen for the term of any agreement all necessary rights-of-way and easements to install, operate~ maintain~ replace and remove the city's metering and other special facilities and shall agree to execute such other grants, deeds or documents as the city may require to enable it to record such rights-of-way and easements. If any part of the city's facilities are to be installed on property owned by other than Seller~ Seller shall~ without cost to the city~, procure from the owners thereof, all necessary permanent rights-of-way and easements for the construc- tion~ operation, maintenance and replacement of the city's facilities upon such property in a form satis- factory to the city. Facilities and_ Equipment Design and Construction. At its expense, Seller shall design, construct, install, own, operate and maintain the facility and all ~quipment needed to generate and deliver energy and capacity except for any special facilities constructed, installed and maintained by the city. The facility and equipment shall meet all requirements of applicable codes and all standards of Prudent Electrical Practice and the requirements of the city. Seller shall obtain the electric department superintendent's approval of its facilities and equipment prior to connecting its facili- ty and equipment to the city's system. To obtain such approval the Seller shall submit all facilities and equipment specifications to the electric department superintendent for revlew~ and Seller shall permit the city to review the facilities and equipment. Any and all costs incurred by city to review the facility, equipment and specifications shall be paid for by Seller, including any costs incurred by the city to engage any consultant or consultants the city deems appropriate to review SeAler's facilities~ equipment and specifications. The city's review of Seller's faciii- (j) (k) (i) RECORD OF PROCEEDINGS 100 Leaves ties~ equipment and/or specifications shall not be con- strued as confirming nor endorsing the design nor as any warranty of safety~ durability or reliability of the facility or any of the equipment. Seller shall also agree that upon demand of the Utility Seller shall change its facility and equipment to comply with chang- ing requirements of the city's system. Representatives of the city shall have the right to be on site when equipment is tested or energized. Interconnection Facility Construction and Meter Instal- lation. At its expense, Seller shall construct~ install, own and maintain interconnection facilities and system protec- tion facilities as required for the city to receive energy and capacity from Seller's facility, as deter- mined by the city. In the event it is necessary for the city to install special facilities or to reinforce its system for purposes of receiving Seller's energy and capacity~ Seller shall pay to the city the estimated cost of such special facilities as a non-refundable contribution in aide of construction prior to the start of construction. The city shall provide, install and maintain meters at a mutually agreed upon designated location to measure the integrated demand and kilowatt- hours. For firm power generation such metering shall record and indicate the integrated demand for each 30- minute period and shall measure kilowatt-hours- Meters for measure of reactive volt-ampere hours may be re- quired by the electric department superintendent if deemed appropriate. All meter equipment and all facili- ties required to interconnect, including installation, ownership and administration costs thereof shall be borne by Seller, including costs incurred by the city for inspection and testing such equipment as appropri- ate · Facility and Equipment Operation and Maintenance. Seller shall operate and maintain its facility and equipment according to prudent electrical practices and shall generate or otherwise supply such reactive power as may be reasonably necessary to maintain voltage levels and reactive support to the system. If Seller is unable or unwilling to provide such reactive power, the city may do so at Seller's expense. The city may require Seller to perform and provide evidence of a periodic maintenance schedule, detailed and described by the city. Point of Delivery_L Seller shall deliver the energy and capacity at the load side of the electric meter or the load side of the main disconnect where instrument transformers are employed; or as otherwise designated by the electric department superintendent- RECORD OF PROCEEDINGS (m) Meters. 100 Leaves Ail meters used to determine the billing hereunder shall be sealed and the seals shall be broken Only upon occa- sions when the meters are to be inspected, tested or adjusted. The city shall, at Seller's expense, inspect and test all meters upon their installation and at least once every two years thereafter. If requested to do so by Seller, the city shall inspect or test a meter more frequently than every two years, but the expense of such inspection or test shall be paid by Seller. (n) Billing CapacityA The billing capacity for any month shall be the measured capacity for the current month. (o) Bill lng_t. The city shall send a statement to Seller on or after the 20th day of the monthly billing period showing the monthly billing capacity and energy delivered to the city during the previous monthly billing period. Seller shall use this statement to compute charges for energy and capacity delivered to the city. Seller shall then send a monthly billing statement to the city which states the energy and capacity charges and a credit equal to the administrative charge, all as applied to the pre-selected monthly rate for random or firm power generation. (P) (q) (r) Pa_yment. The city shall make payment to Seller on or before the 25th day after the billing statement is received by the city · Changes in Capacity Rating. The Seller shall advise the electric department superin- tendnet of any proposed changes in its facility or its capacity rating prior to making such changes. Discontinuance of Deliveries. The city shall not be obligated to acceptr and the city may require Seller to curtail, interrupt or reduce, deliveries of energy and capacity under the following circumstances: (a) in order to construct, install, maintain, repair, replace, remove, investigate or inspect any of the city's equipment or any part of the city's system, (b) if the city determines that curtail- ment, interruption or reduction is necessary because of emergencies, forced outages, operating conditions on its system, adverse affects upon electric service to other customers of the City of Aspen Electric Department, or (c) otherwise required by prudent electrical practices. No new kW ratchet value shall be established and no FOR~ so C.F. HOECK£L B. B. & L, CO. RECORD OF PROCEEDINGS 100 Leaves (s) (t) billing adjustments s~all be made because of such discontinuance of deliveries. Indemnity... The Seller shall indemnify the city, its officers~ agents, and employees against all loss, damage, expense, and liability to third persons for injury or death of person or injury to property~ proximately caused by the Seller's construction, ownership, operation, or mainten- ance of~ or by failure of any of Seller's works or facilities used in connection with applicable contract schedules. The Seller shall pay all costs that may be incurred by the city in enforcing this indemnity. The city may require Seller to provide evidence of insurance for any losses described above, including any losses and damage, regardless of negligence~ in an amount deter- mined to be sufficient by the city. Liability. l Nothing in this schedule shall be construed to create any duty to, any standard of care with reference to or any liability to any person not a party to this contract schedule. The city shall not be liable for damages caused to the facilities of the Seller by reason of the operation, faulty operation, or nonoperation of the city's facili- ties. (u) Contract Period and Rate Selection. (v) All contracts under this ~schedui~e shall Select Monthly Rate A, Random Power Generation; or Monthly Rate B, Firm Power Generation and such rate shall be for a minimum period of 90 days unless Parallel Generation service under this schedule is terminated following ten days' written notice to the electric department superin- tendent. Rules and Regulations. Seller must comply with all provisions of the Aspen Municipal Code, and city ordinances~ setting forth rules and regulations for the City of A~Pen Electric Depart- ment, as deemed applicable by the city. Reference in such applicable rules and regulations to "electric cus- tomer'' or "consumer" shall be interpreted as being interchangeable with "qUalifying facility" and "seller". (w) Definitions. Applicant -- A person or entity applying for service under this rate schedule. Back-up Power -- Electric energy or capacity supplied by an electric utility t© replace energy ordinarily FORM 50 C.F. HO£CKEL B. B. & -. CO. RECORD OF PROCEEDINGS ] O0 Leaves generated by a facility's own generation equipment during an unscheduled outage of the facility. ~Capacity Rating -- The generator nameplate rating of the qualifying facility's equipment diminished by any anti- cipated losses between such equipment and the delivery point. City -- The term "city" as used herein shall include and encompass the electric light and power system owned and operated by the City of Aspen, Colorado, known as The Aspen Electric Department, the operation and management of which is under the control of the City Manager. Co-generation -- Facilities which simultaneously produce two forms of useful energy, suc~ as power and steam through the sequential use of energy. Such facilities must be owned Dy a person not primarily engaged in the generation or sale of electric energy. Electric Department Superintendent -- The manager of The Aspen Electric Department charged with the powers and duties set forth in Section 23-17 of the Aspen City Code. Facility -- That generator and associated equipment owned by a party other than the city which is used to generate electric power for sale to the city. Firm Power Generation -- A qualifying facility which offers electrical energy of sufficient reliability and with sufficiently legally enforceable guarantees of deliverability to permit the cit~y to reduce firm power purchases from its supplying utility. Interconnection Facilities -- Ali facilities required to be installed solely to interconnect and deliver power from Seller's generation to the city's system including but not limited to connection, transformation, switch- ing, metering, safety equipment and system protection facilities. Interconnection facilities shall also in- clude any necessary additions and/or reinforcement by the city to the city's system. Intermittent Loads -- An electrical demand of an inter- mittent or fluctuating character or which reflects fre- quent starting with high current in-rush. Interruptible Power -- Electric energy or capacity sup- plied by an electric utility sub3ect to interruption Dy the electric utility under specified conditions. Maintenance Power -- Electric energy or capacity sup- plied by an electric utility during scheduled outages of the qualifying facility. Parallel Generations,- The operation of qualifying facilities when interconnected With the city system in accordance with the provisions of applicable schedules. FORM 50 C.F. HOECK~L B. B. & L, CO. RECORD OF PROCEEDINGS 100 Leaves Prudent Electrical Practices -- Those practices f methods and equipment, as changed from time to time, that are commonly used in prudent electrical engineering and operations to operate electric equipment lawfully and with safety, dependability, efficiency and economy. Qualifying Facility_ or Seller -- A co-generation or small power production facility which meets the defini- tions of such facilities as defined herein and which is a qualifying facility under Subpart B o~ Section 201 of the Public Utilities Regulatory Policy Act of 1978, and the regulations promulgated thereunder by the Federal Energy Regulatory Commission (FERC), or any successor governmental agency, as the same may be amended from time to time. Random Power Generation -- Generators and facilities that furnish sporadic, noncontinuous, uncertain energy output without reserve capacity and/or which provides power to the city at the Seller's discretion or on an as-available bas is. Small Power Production -- Facilities which derive more than 75% of total energy input from biomass~ waste, or renewable resources, including Wind, solar and waterf to produce electric power. Such facilities must be of less than 80 megawatts capacity and must be owned by a per- son not primarily engaged in the generation or sale of electric energy. Special Facilities -- Interconnection facilities fur- nished by the Utility at Seller's request or because such facilities are necessary additions and/or rein- forcements to the city's system. Special Meter Reading and/or Fractional Period Biilinq -- A meter reading or billing performed at the request of the customer in addition to the normal monthly meter reading or billing. Supplementary Power -- Electric energy or capacity, supplied by an electric utility, regularly used by a qualifying facility in addition to that which the facil- ity generates itself. System Protection Facilities -- The equipment required to protect (1) the city's system and its customers from faults occurring at the facility~ and (2) the facility from faults occurring on the city's system or on the systems of others to which it is directly or indirectly connected. Utility -- The City of Aspen Electric Department of the City of Aspen, Colorado. 9 FORM 50 C.F. HOECKEL B. B. & L. CO, RECORD OF PROCEEDINGS 100 Leaves Section 2 If any section, subsection, sentence, clause, phrase or por- tion of this ordinance is for any reason held invalid or unconsti- tutional by any court of competent 3urisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions thereof. Section 3 A public hearing on this ordinance shall be held on the day of ~ , 1981, at 5:00 P.M. in the City Council Chambers, Aspen City Hall, Aspen, Colorado. INTRODUCED, READ AND ORDERED published as provided by law by the City Council of the City of Aspen, Colorado, at its regular meeting held ATTEST: ~.~ , 1981. Herman Edel Mayor Kathryn S. Koch City Clerk FINALLY adopted, passed and approved on the , 1981. day of ATTEST: Herman Edel Mayor Kathryn S. Koch City Clerk 10