UTILITY COMMITTEE
The Utility Committee Meeting was held on November 13, 2006 at 5:00 p.m. with Chairman Carey presiding. Members present were Mr. Cregar, Mr. Snaman, Mr. Slavin and Mr. Ruane.
AGENDA ADDITIONS/DELETIONS
Mr. Slavin moved for approval of the agenda, seconded by Mr. Snaman and unanimously carried.
Green Energy Program - Net Metering and Tariff
In the Summer of 2005, the State of Delaware Renewable Energy Portfolio Standard (Delaware Code, Title 26, Chapter 1, Sections 351-363). Section 363 - Special provisions for municipal electric companies and rural electric cooperatives states that municipal electric companies and rural electric cooperatives may elect to be exempt from the requirements of this subchapter provided that, on or before June 1, 2006, they:
(1) Submit a written notice to the General Assembly;
(2) Alert their end-use customers with notices inserted in two (2) consecutive electricity bills;
(3) Offer their retail customers a voluntary program for purchasing renewable energy under competitive rates; and
(4) Either contribute to the Green Energy Fund at levels commensurate with other retail electricity suppliers or create an independent, self-administered fund separate from the Green Energy Fund to be used in support of energy efficiency technologies, renewable energy technologies, or demand side management programs, into which they make payments of $0.178 for each megawatt-hour they sell, transmit, or distribute in the State. (75 Del. Laws, c. 205, § 1.)
Mr. DePrima, City Manager, informed members that the City has followed the four (4) steps and has generated a new electrical tariff to meet the requirements effective January 1, 2007. The City must also have a net metering electric tariff for green energy projects that will sell power back into the electric system.
Mr. DePrima reviewed the Net Energy Metering “NM” information noting that it will allow the City to credit residential and small and medium commercial customers with less than 50KW of generation for KWH delivered from the customer to the City of Dover. All other rate classes or projects generating more than 50KW will be handled through special contracts. The rate of credit will be reviewed and adjusted annually. This does not apply to any electrical systems that are not connected to the City’s electrical infrastructure.
Mr. Steve Enss, Public Utilities Field Engineer, provided additional information regarding the special meters that will need to be installed. He noted that the resident will be responsible for any costs associated with the installation of the special meters. Mr. Enss informed members that the City’s technical considerations are similar to those adopted by Delmarva Power and the Delaware Electric
Co-op. He advised members that City is currently three months ahead of other local municipalities.
Responding to Mr. Ruane, Mr. DePrima stated that there are funds available through the State of Delaware’s green energy fund for residents if they wish to install solar panels or windmills as a source of alternative power. He also stated that there are some zoning and permitting issues associated with the use of wind mills, which the Planning department will review.
Mr. Ruane requested that a presentation be given to the committee regarding the City’s Green Power Program and any financial incentives associated with the program. He also suggested that a representative from the State program be present, to provide valuable information to residents.
Staff recommended acceptance of the Net Metering Tariff, effective January 1, 2007.
Mr. Ruane moved to recommend acceptance of the Green Energy Program Net Metering Tariff, (Attachment #1) effective January 1, 2007, seconded by Mr. Cregar and unanimously carried.
Green Energy Program - Technical Considerations
In the summer of 2005, the State of Delaware issued a Renewable Energy Portfolio Standard (Delaware Code, Title 26, Chapter 1, Sections 351-363). Section 363 - Special provisions for municipal electric companies and rural electric cooperatives with which the City of Dover is required to comply. To comply with this law which requires the City to support Green Energy Technology such as solar and wind power projects, technical guidelines for installation of these technologies must be adopted.
To insure the safe and proper operation of customer owned generation and the City’s electric infrastructure, technical guidelines have been created. Staff recommended that the technical considerations be included in the City of Dover’s Electric Service Handbook as Division VI – Parallel Operations of Customer Owned Generation.
Mr. Snaman moved to recommend amending the City of Dover’s Electric Service Handbook to include Division VI - Parallel Operations of Customer Owned Generation (Attachment #2). The motion was seconded by Mr. Slavin and unanimously carried.
Mr. Snaman moved for adjournment, seconded by Mr. Cregar and unanimously carried.
Meeting Adjourned at 5:30 P.M.
Respectfully submitted,
Carleton E. Carey, Sr.
Chairman
CEC/hf
S:ClerksOfficeAgendas&MinutesCommittee-Minutes200611-13-2006 UTILITY.wpd
Attachments
Attachment #1 -Net Metering and Tariff
Attachment #2 - Technical Considerations Covering Parallel Operations of Customer Owned Generation of 50 Kilowatts or less and Interconnected with the City of Dover Delivery System
ATTACHMENT #1
UTILITY COMMITTEE MINUTES OF 11/13/2006
Net Energy Metering
"NM"
AVAILABILITY
This rider is available to customers served under the following service classifications, Residential "R", Small Commercial "C and C1", and Medium Commercial "C2 and C3" who own and operate an electric generation facility on the Customer's premises. The primary intent of this installation is to offset part or all of the Customer's electricity requirements. Capacity cannot be more than 50 kilowatts. The primary source of fuel must be solar, wind, hydro, or another approved source of renewable energy. This rider is applicable to generation interconnected and operated in parallel with the City of Dover's transmission and/or distribution facilities. Application for the installation of any generation system in excess of 50 kilowatts shall be made under a special contract.
Any customer who elects this rider must apply by filling out the Generator Interconnection Application at least 60 days in advance of the proposed activation date. Approval of the application by the City must be granted prior to activation the electric generation facility.
CONNECTION TO THE CITY'S SYSTEM
The electric generation system cannot be connected to the City's system unless it meets all applicable safety and performance standards set forth by the following: The Technical Considerations Covering Parallel Operations of Customer Owned Generation of 50 kW or Less dated January 1, 2007, National Electric Safety Code, Underwriters Laboratories, and the City of Dover Electric Service Handbook. The Customer must, at his/her expense, obtain any and all necessary permits, inspections, and approvals required by any local public authorities and any other governing regulations in effect at that time.
DELIVERED VOLTAGE
The delivered voltage and delivery point of the Customer's electric generation shall be at the same delivered voltage and delivery point that would be supplied by the City if the Customer purchased all of it's electricity from the City.
CONTRACT TERM
The contract term shall be the same as the Customer's applicable rate tariff.
RATE
The monthly billing shall be as stated in the applicable rate tariff. Under this rider, only the per kWh charge for electricity delivered by the Customer is affected. The Customer will pay for all kWh delivered by the City of Dover. If the Customer has delivered electricity to the City system, a credit will be issued to the Customer for the kWh delivered at the City's current wholesale rate.
POWER FACTOR PENALTY
A power factor penalty may be assessed, at the City's option, on any customer being served on this tariff. The penalty will be calculated using the following formula:
The Measured Demand will be the maximum fifteen (15) minute demand during the billing cycle. In any month in which the average power factor at the delivery point is less than ninety-five percent (95%) the penalty will be calculated according to the following formula:
Power Factor Corrected Demand = Measured Demand X .95
Average Power Factor
The difference between the Power Factor Corrected Demand and the Measured Demand is the kW penalty that will be assessed. This kW will be billed at the current Demand Rate on the C2/C3 Rate Tariff. There will be no credits issued for power factors that exceed ninety-five percent (95%).
METERING
A bi-directional watt-hour electric meter will be installed at the Customer's location to measure the energy consumed and the energy delivered to the City system.. The City will furnish, install, maintain, and own all metering equipment. Cost will be determined under the Additional Costs and Responsibilities clause below.
ADDITIONAL COSTS AND RESPONSIBILITIES
The Customer will be required to pay for any additional transmission and distribution costs, the cost of metering, transformation, system protection, and any related safety/protective equipment in excess of what would normally be paid for by the City. Protective equipment will be installed by the Customer to provide safety for personnel, provide adequate protection for the City's electric utility system and to the Customer's property, and to prevent any interference with the City's supply of energy to other utility customers. This equipment will be owned, installed, and maintained by the Customer.
FAILURE TO COMPLY
The City may disconnect the Customers service from the City's electric system if the Customer fails to comply with any of the stipulations of this rider, The Technical Considerations Covering Parallel Operations of Customer Owned Generation of 50 kW or Less dated January 1, 2007, National Electric Safety Code, Underwriters Laboratories, the Generator Interconnection Application and the City of Dover Electric Service Handbook.
RULES AND REGULATIONS
The General Rules and Regulations of the City of Dover for electric service shall apply to service rendered under this service classification. All minimum billings, charges for kWh, kW, Purchased Power Adjustment, Public Utility Tax, Renewal Energy Charge, etc. will be covered under the applicable rate tariff.
ATTACHMENT #2
UTILITY COMMITTEE MINUTES OF 11/13/2006
Technical Considerations Covering Parallel Operations
Of Customer Owned Generation of 50 Kilowatts or less
and Interconnected with the City of Dover Delivery System
Perquisite - The customer must first be in compliance with the tariff rules and regulations and the applicable tariff classification and rates. The terms and conditions contained herein are in addition to, but do not modify nor negate, the terms of the tariff.
I. Purpose
The purpose of this document (relating to interconnection of on-site distributed generation and parallel generation requirements) is to clearly state the terms and conditions that govern the interconnection and parallel operation of on-site distributed generation, in order to:
A. establish technical requirements which will promote the safe and reliable parallel operation of distributed generation resources;
B. enhance the reliability of electric service;
C. facilitate the implementation and use of distributed resources technologies;
D. enhance economic efficiency in the production and consumption of electricity and other energy; and
E. promote the use of distributed resources in order to provide electric system benefits during periods of capacity constraint.
II. Applicability
Unless otherwise provided, these guidelines apply to all customer generation operating below 51 kilowatts which is interconnected at 34.5kV or below and operated in parallel with the Company's power delivery System. The technical requirements of Section XIV and subsequent sections of this document do not apply to NEM Rider Tariff generators using inverter technology, as requirements for these installations are already covered in the applicable codes, IEEE Standard 929, Recommended Practice for Utility Interface of Photovoltaic (PV) Systems, and UL 1741, Underwriters Laboratories Subject 1741-1999, Standards for Static Inverters and Charge Controllers for use in Photovoltaic Power Systems.
III. Definitions
A. Account - An account is one metered or un-metered rate or service classification which normally has one electric delivery point of service. Each account shall have only one electric service supplier providing full electric supply requirements for that account. A premises may have more than one account.
B. Company - City of Dover
C. Customer - Any adult person, partnership, association, corporation, or other entity: (i) in whose name a service account is listed, (ii) who occupies or is the ratepayer for a premises, building, structure, etc., and (iii) who is primarily responsible for payment of bills. A customer includes anyone taking Delivery Service or combined Electric Supply & Delivery Service from the Company under one service classification for one account, premises or site. Multiple premises or sites under the same name are considered multiple Customers.
D.Distributed Generation or On-Site Distributed Generation - an electrical generating unit of less than or equal to 50 kW which may be connected in parallel operation to the Company's system.
E. Generator Owner - the owner of the generating system that is interconnected to the Company.
F.Grid - The interconnected arrangement of lines and transformers that make up the Company's electric power system.
G. IEEE Standard 929 - IEEE Standard entitled Recommended Practice for Utility Interface of Photovoltaic (PV) Systems, P929 Draft 11, dated July, 1999, or subsequent approved revision thereof.
H. Interconnection - the physical connection of distributed generation to the Company's system in accordance with these guidelines so that parallel operation can occur.
I.Interconnection Application - the standard form of application which must be submitted by the
Generation Owner to the Company for permission to interconnect with the Company system. The approved Interconnection Application sets forth the contractual conditions under which the Company and Generator Owner agree that one or more generating units whose aggregate generation at the Point of Common Coupling is less than or equal to 50 kW may be interconnected at 34.5 kV or less with the Company's system.
J. Inverter - A static power converter with control, protection and filtering functions that converts
Direct Current input to Alternating Current output. Inverters must be of the non-islanding type.
K.Island - A portion of the utility system which contains both load and distributed generation and is isolated from the remainder of the utility system.
L. Parallel Operation - any electrical connection between the Company's system and the Generator Owner's generating source.
M. Point of Common Coupling - the point where the electrical conductors of the Company system are connected to the Customer's conductors and where any transfer of electric power between the Generator Owner and the Company System takes place (such as switchgear near the meter).
N. Pre-Approved Equipment - specific generating and protective equipment system or systems that have been approved by the Company as meeting the applicable parts of this document.
O. Pre-Interconnection Study - a study or studies which may be undertaken by the Company in response to its receipt of a completed application for parallel operation with the Company's system submitted on the Interconnected Application form prescribed by these guidelines. Pre-Interconnection Studies may include, but are not limited to service studies, coordination studies and facilities impact studies.
P. Qualifying Facility (QF) - an electric generation facility which is a qualifying facility under Subpart B, Section 201 of the Federal Energy Regulatory Commission's regulations per the Public Utility Regulatory Policies Act of 1978.
Q. Stabilized - the Company's system following a disturbance which returns to the normal range of voltage and frequency for at least 5 minutes or longer as coordinated with the Company. The Company may require a longer period upon a reasonable showing that the reconnection after 5 minutes will adversely affect the safety and reliability of the electric system.
R. Unit - a distributed generation facility.
S. Utility System or Electric Distribution Facility - Company's distribution system operating at 34.5 kilovolts or below to which the generation equipment is interconnected.
IV. Interconnection Application
A proposed Generator Owner will make a formal application to the Company for the interconnection of a generator to the Company system. The application will be made on an Application Form provided by the Company.
V. Designation of Company Contact Persons for Matters Relating to Distributed Generation Interconnection The Company's Electric Engineering Department will be the designated point of contact for all matters related to interconnected generation. The Company will maintain records concerning applications received for interconnection and parallel operation of distributed generation. Such records will include the date of receipt of each such application, documents generated in the course of processing such applications, correspondence regarding such applications and the final disposition of such application.
VI. Pre-Interconnection Studies
In many instances the Company will wish to conduct a service study, coordination study, or facilities impact study prior to interconnection of a distributed generation unit. In instances where such studies are deemed necessary the scope of such studies shall be based on the characteristics of the particular distributed generation unit to be interconnected and the proposed point of interconnection.
A. Completion of Pre-interconnection Study - Upon completion of the interconnection study, the Company will notify the Generator Owner that his application has been approved or indicate insufficient detail why the application cannot be approved. The conducting of such pre-interconnection studies shall not unduly delay the interconnection of the distributed generation. In no event shall such studies take longer to complete than 4 weeks after receipt of signed customer application and customer submittal of all required data.
B. Pre-interconnection Study Fee - The Company will do a pre-interconnection study without charge up to the typical and customary cost that the Company would expend for study work of similar type of customer interconnection. If the cost to the Company is expected to exceed this typical and customary amount, or if multiple submittals by the Generator Owner are necessary, the Company will advise the Generator Owner of the expected cost of such study work by the Company before such work begins. The Generator Owner will be responsible for payment of all costs above the typical and customary amount.
VII. Network Interconnection of Distributed Generation
Where generation is to be connected to a network system and capable of exporting power to the Grid, the interconnection study may result in more stringent interconnection requirements.
VIII. Pre-approval of Generation units, Devices and Systems
Upon approval by the Company that certain generating unit's protective devices and/or system(s) meet the standards set out in these guidelines, such approval shall be made available to the appropriate manufacturer upon written request. For subsequent applications using some or all of the identical generating unit's protective devices and/or systems, the manufacturer may submit a copy of the approval with the application as proof that its equipment has already been approved for use on the Company's system. Use of pre-approved equipment will not eliminate any applicable requirement for a pre-interconnection study to determine the suitability of the equipment for each application, given the unique arrangements and characteristics of both the Generator Owner and Company systems at the point of the interconnection.
IX. Connection Approval
The Generator Owner can connect their generation to the Company system only after the Interconnection Application has been approved and the Generation Owner has received approval notification. The Company will provide notification within four weeks after the receipt of the Interconnection Application and all required data.
X. Interconnected Generation Site Warning Label
The Generator Owner will install a warning label in a conspicuous place on their electric meter or meter box to notify the Company personnel that there is a generator source installed on the load side of the meter. The warning label shall not be placed in a location that would interfere with the ability of Company personnel to read the electric meter. The Company will provide the warning label to the Generator Owner. The warning label must be placed before the generation can be interconnected.
XI. Disconnection and Reconnection
The Company may disconnect a distributed generation unit under the following conditions:
1) Application Termination - Upon termination of the approved Interconnection Application.
2) Non Compliance - For non-compliance with the technical guidelines specified in this document or other requirements contained in the applicable Customer Tariff, provided that the Company has given notice to the Generator Owner and provided the Generator Owner reasonable time (consistent with the condition) to correct such non-compliance. The Company will reconnect the unit only upon receipt of certification from the Generator Owner and verification by the Company that the unit is in compliance. The Company will provide verification within a reasonable time period.
3) In Case of a system emergency outage of the Company's Primary Electrical Sources - The Generator Owner's generation equipment must be installed and configured so that parallel operation must automatically cease immediately and automatically during outages or loss of the Company's electric source in accordinacnce with these guidelines. The Generation Owner must also cease parallel operation upon notification by the Company of a system emergency, abnormal condition or in cases where such operation is determined to be unsafe, interferes with the supply of service to other customers or interferes with the Company's system maintenance or operation. In addition, the Company may disconnect the generator from the system for system emergencies without notice. However, the Company will use reasonable efforts to notify the Generation Owner prior to disconnecting.
4) For Routine Maintenance and Repairs - The Company may disconnect a Customer/Generation Owner for routine maintenance and repairs on the Company's system consistent with applicable tariffs and agreements. The Company will make reasonable efforts to provide advance notice to the Customer/Generation Owner of service interruptions resulting from routine maintenance.
The Company will reconnect the Customer/Generation Owner as quickly as possible under reasonable operations constraints following any such service interruption.
XII. Termination
The Generation Owner may terminate the approved Interconnection Application at any time upon thirty (30) days of providing written notice to the Company. The Company may terminate the Interconnection Application for cause after 60 days written notice to the Generator Owner of a material violation of the terms of the approved Interconnection Application and after the Generator Owner has had a reasonable opportunity to remedy the violation. The Generator Owner must give the Company notice that it intents to permanently shut down his generation.
XIII. Privileged Communications Concerning Proposed Distributed Generation Projects
In the course of processing applications for parallel operation and in the conduct of pre-interconnection studies, the Generation Owner shall provide the Company with detailed information concerning the proposed distributed generation project. The Company shall not use such knowledge of proposed distributed generator projects submitted to it for review to prepare competing proposals to the Generator Owner whereby the Company, or its affiliate, offers either discounted rates in return for not installing the distributed generation, or offers competing distributed generation projects.
XIV. Technical Guidelines for Parallel Operation of On-site Distributed Generation Units
This subsection describes minimum requirements and procedures for safe and effective connection and operation of distributed generation. A Generator Owner may operate 60 Hertz, three phase or single phase generating equipment, whether a QF or non-QF, in parallel with the Company's system pursuant to an approved Interconnection Application provided that the equipment and Generator Owner meet or exceed the requirements of these guidelines or the NEM Rider Tariff requirements and that the Company has approved the Generator Owner's application to interconnect. This subsection describes typical interconnection requirements. Certain specific interconnection locations and conditions may require the installation of additional protective hardware or special protection settings, especially when exporting power to the system. If the Company excludes that an application for parallel operation requires additional protective hardware or special protection settings, the Company shall make those requirements known to the Generator Owner within 14 days after all pertinent studies are completed.
Approval to connect to the Company system indicates only that the minimum requirements for a safe proper interconnection have been satisfied. Such approval does not imply that the Generator Owner's facility meets all federal, state and local standards or regulations.
A. General Interconnection and Protection Requirements.
1) The Generator Owner's generation and interconnection installation must meet all applicable national, state, and local construction and safety codes.
2) The Generator Owner's generator shall be equipped with protective hardware and software designed to prevent the generator from energizing one of the Company's de-energized circuits. The Generator Owner's generator must automatically disconnect from the Company's system if the Grid source is lost, irrespectively of connect loads or other generators.
3) The generator shall be equipped with the necessary protective hardware and software designed to prevent sustained parallel operation of the generating equipment with the Company's system unless the system service voltage and frequency are within acceptable magnitudes as defined in Section XIV.B.
4) Pre-approved equipment shall be accepted as part of an interconnection proposal without the need to re-review the equipment itself. However, the application, design and setting of pre-approved units and/or equipment must be reviewed and coordinated according to the unique needs of the specific location of the proposed installation. Where a complete unit or system has been pre-approved, only location-specific issues will typically need to be reviewed.
5) The Generator Owner will be responsible for protecting its own generating and interconnection equipment in such a manner s