1671 Bill No 673 Net Metering

AN ORDINANCE OF THE CITY OF RICH HILL, MISSOURI, REGULATING THE NET METERING OF ELECTRICITY.

WHEREAS, it is in the best interests of the City of Rich Hill (the “City”) and the citizens of Rich Hill to properly regulate the City’s electric supply infrastructure to ensure that it remains safe, reliable, and cost effective; and

WHEREAS, because the City is required by law to allow the net metering of electricity, as defined below, it must regulate the practice to ensure that the City’s electric supply infrastructure remains safe, reliable, and cost effective.

NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF RICH HILL, MISSOURI, AS FOLLOWS:

Section 1:        Definitions

  1. Avoided fuel cost: The current average cost of fuel for the City.
  2. Customer-generator: The owner or operator of a qualified electric energy generation unit which:
    1. is powered by a renewable energy resource;
    2. has an electrical generating system with a capacity of not more than one hundred (100) kilowatts;
    3. is located on a premises owned, operated, leased, or otherwise controlled by the customer-generator;
    4. is interconnected and operates in parallel phase and synchronization with a retail electric supplier and has been approved by said retail electric supplier;
    5. is intended primarily to offset part or all of the customer-generator’s own electrical energy requirements;
    6. meets all applicable safety, performance, interconnection, and reliability standards established by the National Electrical Code, the National Electrical Safety Code, the Institute of Electrical and Electronics Engineers, Underwriters Laboratories, the Federal Energy Regulatory Commission, and the City; and
    7. contains a mechanism that automatically disables the unit and interrupts the flow of electricity back onto the supplier’s electricity lines in the event that service to the customer-generator is interrupted.
  3. Net metering: Using metering equipment sufficient to measure the difference between the electrical energy supplied to a customer-generator by a retail electric supplier and the electrical energy supplied by the customer-generator to the retail electric supplier over the applicable billing period.

Section 2:        Duties and responsibilities of the City.

  1. The City shall make net metering available to customer-generators on a first-come, first-served basis until the total rated generating capacity of net metering systems equals five (5) percent of the utility’s single-hour peak load during the previous year, after which the City may increase the total rated generating capacity of net metering systems to an amount above five (5) percent. However, in a given calendar year, the City shall not be required to approve any application for interconnection if the total rated generating capacity of all applications for interconnection already approved to date by said supplier in said calendar year equals or exceeds one (1) percent of the City’s single-hour peak load for the previous calendar year.
  2. The City shall offer to the customer-generator a tariff or contract that is identical in electrical energy rates, rate structure, and monthly charges to the contract or tariff that the customer would be assigned if the customer were not an eligible customer-generator but shall not charge the customer-generator any additional standby, capacity, interconnection, or other fee or charge that would not otherwise be charged if the customer were not an eligible customer-generator.
  3. The City shall disclose annually the availability of the net metering program to each of its customers with the method and manner of disclosure to be determined by the City.

Section 3:        Duties and responsibilities of customer-generators.

  1. A customer-generator’s facility shall be equipped with sufficient metering equipment that can measure the net amount of electrical energy produced or consumed by the customer-generator. If the customer-generator’s existing meter equipment does not meet these requirements or if it is necessary for the City to install additional distribution equipment to accommodate the customer-generator’s facility, the customer-generator shall reimburse the City for the costs to purchase and install the necessary additional equipment.  At the request of the customer-generator, such costs may be initially paid for by the City, and any amount up to the total costs and a reasonable interest charge may be recovered from the customer-generator over the course of up to twelve (12) billing cycles.  Any subsequent meter testing, maintenance, or meter equipment change necessitated by the customer-generator shall be paid for by the customer-generator.
  2. Each qualified electric energy generation unit used by a customer-generator shall meet all applicable safety, performance, interconnection, and reliability standards established by the City, the National Electrical Code, the National Electrical Safety Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories for distributed generation.
  3. A customer-generator’s system shall contain a switch, circuit breaker, fuse, or other easily accessible device or feature located in immediate proximity to the customer-generator’s metering equipment that would allow a utility worker the ability to manually and instantly disconnect the unit from the City’s electric distribution system;
  4. For systems of ten (10) kilowatts or less, a customer-generator whose system meets the standards and rules under subsections 1-3 of this section shall not be required to install additional controls, perform or pay for additional tests or distribution equipment, or purchase additional liability insurance beyond what is required in subsection 1-3.
  5. For customer-generator systems of greater than ten (10) kilowatts, customer-generators shall:
    1. abide by and pay for all recommendations from the City’s engineering and electrical staff and consultants for the installation, operation, and maintenance of the system, as they relate to the safety, performance, and reliability of the system; and
    2. acquire and provide proof of liability insurance in an amount not less than one hundred thousand dollars ($100,000) that provides for coverage of all risk of liability for personal injuries (including death) and damage to property arising out of or caused by the operation of the customer-generator’s system; said proof must be provided to the City on an annual basis.
  6. Prior to the interconnection of a net metering system, the customer-generator shall furnish the City a certification from a qualified professional electrician or engineer that the installation of said system meets the requirements of this Ordinance; said certification shall be on a form provided by the City. In addition, the City may require an inspection by a City engineer, the cost of which may be charged to the customer-generator.

Section 4:        Calculation of net electrical energy measurement.

  1. For a customer-generator, the City shall measure the net electrical energy produced or consumed during the billing period in accordance with normal metering practices for customers in the same rate class, either by employing a single, bidirectional meter that measures the amount of electrical energy produced and consumed, or by employing multiple meters that separately measure the customer-generator’s consumption and production of electricity.
  2. If the electricity supplied by the City exceeds the electricity generated by the customer-generator during a billing period, the customer-generator shall be billed for the net electricity supplied by the supplier in accordance with normal practices for customers in the same rate class.
  3. If the electricity generated by the customer-generator exceeds the electricity supplied by the City during a billing period, the customer-generator shall be billed for the appropriate customer charges for that billing period and shall be credited an amount at least equal to the avoided fuel cost of the excess kilowatt-hours generated during the billing period, with this credit applied to the following billing period.
  4. Any credits granted by this section shall expire without any compensation at the earlier of either twelve months after their issuance or when the customer-generator disconnects service or terminates the net metering relationship with the City.
  5. At the option of the City and upon concurrence from KCP&L (the wholesale generator supplying electric energy to the City), the credit to the customer-generator may be provided by KCP&L.

Section 5:        Applications, documents, and forms for net metering.

  1. Applications by a customer-generator for net metering shall be in a form generally consistent with Exhibit A, which may be amended by the Mayor as needed.
  2. Applications by a customer-generator for net metering shall be accompanied by the plan for the customer-generator’s electrical generating system, including but not limited to a wiring diagram and specifications for the generating unit, and shall be reviewed and responded to by the City within thirty (30) days of receipt for systems ten (10) kilowatts or less and within ninety (90) days of receipt for all other systems.
  3. If an application for interconnection is approved by the City but the customer-generator does not complete the interconnection within one (1) year after receipt of notice of the approval, the approval shall expire and the customer-generator shall be responsible for filing a new application.
  4. Upon a change in ownership of a qualified electric energy generation unit, the new customer-generator shall be responsible for filing a new application with the City. Failure to file a new application within one (1) year shall constitute grounds for the City terminating any agreement entered into under a previously approved application.
  5. The Mayor and City Clerk are authorized to draft and utilize additional documents and forms as may be necessary to carry out the intent of this Ordinance.

Section 6:        Operation of a net metering system prohibited without City’s approval.

  1. No consumer shall connect or operate an electric generation unit in parallel phase and synchronization with the City without written approval from the City that all of the requirements of this Ordinance have been met.
  2. For a consumer who violates this provision, the City may immediately and without notice disconnect the electric facilities of said consumer and terminate said consumer’s electric service.

Section 7:        Liability of third parties.

  1. The manufacturer of any electric generation unit used by a customer-generator may be held liable for any damages to property or person caused by a defect in the electric generation unit of a customer-generator.
  2. The seller, installer, or manufacturer of any electric generation unit who knowingly misrepresents the safety aspects of an electric generation unit may be held liable for any damages to property or person caused by the electric generation unit of a customer-generator.

Section 8:        Ordinance No. 1607 is hereby repealed and replaced by this Ordinance.

Section 9:        The invalidity of any section, clause, sentence or provisions of this Ordinance shall not affect the validity of any other part of this Ordinance that can be given effect without the invalid part or parts.

Section 10:      All ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed.

Section 11:      This Ordinance shall be in full force and effect from and after its passage and approval.

PASSED by the Board of Aldermen of the City of Rich Hill, Missouri, and APPROVED by the Mayor of Rich Hill, this 12th day of June, 2018.

 

                                                           

Jason Rich, Mayor

ATTEST:                                                                    Ayes: Kassner, Pilcher, Robb

Nays: None

Humble was absent

__________________________

Brittany Schenker, City Clerk

 

CITY OF RICH HILL, MISSOURI

APPLICATION AND AGREEMENT FOR NET METERING

Section 1:        Definitions

  1. Avoided fuel cost: The current average cost of fuel for the City.
  2. Customer-generator: The owner or operator of a qualified electric energy generation unit which:
    1. is powered by a renewable energy resource;
    2. has an electrical generating system with a capacity of not more than one hundred (100) kilowatts;
    3. is located on a premises owned, operated, leased, or otherwise controlled by the customer-generator;
    4. is interconnected and operates in parallel phase and synchronization with a retail electric supplier and has been approved by said retail electric supplier;
    5. is intended primarily to offset part or all of the customer-generator’s own electrical energy requirements;
    6. meets all applicable safety, performance, interconnection, and reliability standards established by the National Electrical Code, the National Electrical Safety Code, the Institute of Electrical and Electronics Engineers, Underwriters Laboratories, the Federal Energy Regulatory Commission, and the City; and
    7. contains a mechanism that automatically disables the unit and interrupts the flow of electricity back onto the supplier’s electricity lines in the event that service to the customer-generator is interrupted.
  3. Net metering: Using metering equipment sufficient to measure the difference between the electrical energy supplied to a customer-generator by a retail electric supplier and the electrical energy supplied by the customer-generator to the retail electric supplier over the applicable billing period.

Section 2:        Duties and responsibilities of the City.

  1. The City shall make net metering available to customer-generators on a first-come, first-served basis until the total rated generating capacity of net metering systems equals five (5) percent of the utility’s single-hour peak load during the previous year, after which the City may increase the total rated generating capacity of net metering systems to an amount above five (5) percent. However, in a given calendar year, the City shall not be required to approve any application for interconnection if the total rated generating capacity of all applications for interconnection already approved to date by said supplier in said calendar year equals or exceeds one (1) percent of the City’s single-hour peak load for the previous calendar year.
  2. The City shall offer to the customer-generator a tariff or contract that is identical in electrical energy rates, rate structure, and monthly charges to the contract or tariff that the customer would be assigned if the customer were not an eligible customer-generator but shall not charge the customer-generator any additional standby, capacity, interconnection, or other fee or charge that would not otherwise be charged if the customer were not an eligible customer-generator.
  3. The City shall disclose annually the availability of the net metering program to each of its customers with the method and manner of disclosure to be determined by the City.

Section 3:        Duties and responsibilities of customer-generators.

  1. A customer-generator’s facility shall be equipped with sufficient metering equipment that can measure the net amount of electrical energy produced or consumed by the customer-generator. If the customer-generator’s existing meter equipment does not meet these requirements or if it is necessary for the City to install additional distribution equipment to accommodate the customer-generator’s facility, the customer-generator shall reimburse the City for the costs to purchase and install the necessary additional equipment.  At the request of the customer-generator, such costs may be initially paid for by the City, and any amount up to the total costs and a reasonable interest charge may be recovered from the customer-generator over the course of up to twelve (12) billing cycles.  Any subsequent meter testing, maintenance, or meter equipment change necessitated by the customer-generator shall be paid for by the customer-generator.
  2. Each qualified electric energy generation unit used by a customer-generator shall meet all applicable safety, performance, interconnection, and reliability standards established by the City, the National Electrical Code, the National Electrical Safety Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories for distributed generation.
  3. A customer-generator’s system shall contain a switch, circuit breaker, fuse, or other easily accessible device or feature located in immediate proximity to the customer-generator’s metering equipment that would allow a utility worker the ability to manually and instantly disconnect the unit from the City’s electric distribution system;
  4. For systems of ten (10) kilowatts or less, a customer-generator whose system meets the standards and rules under subsections 1-3 of this section shall not be required to install additional controls, perform or pay for additional tests or distribution equipment, or purchase additional liability insurance beyond what is required in subsection 1-3.
  5. For customer-generator systems of greater than ten (10) kilowatts, customer-generators shall:
    1. abide by and pay for all recommendations from the City’s engineering and electrical staff and consultants for the installation, operation, and maintenance of the system, as they relate to the safety, performance, and reliability of the system; and
    2. acquire and provide proof of liability insurance in an amount not less than one hundred thousand dollars ($100,000) that provides for coverage of all risk of liability for personal injuries (including death) and damage to property arising out of or caused by the operation of the customer-generator’s system; said proof must be provided to the City on an annual basis.
  6. Prior to the interconnection of a net metering system, the customer-generator shall furnish the City a certification from a qualified professional electrician or engineer that the installation of said system meets the requirements of this agreement and the applicable City ordinance; said certification shall be on a form provided by the City. In addition, the City may require an inspection by a City engineer, the cost of which may be charged to the customer-generator.

Section 4:        Calculation of net electrical energy measurement.

  1. For a customer-generator, the City shall measure the net electrical energy produced or consumed during the billing period in accordance with normal metering practices for customers in the same rate class, either by employing a single, bidirectional meter that measures the amount of electrical energy produced and consumed, or by employing multiple meters that separately measure the customer-generator’s consumption and production of electricity.
  2. If the electricity supplied by the City exceeds the electricity generated by the customer-generator during a billing period, the customer-generator shall be billed for the net electricity supplied by the supplier in accordance with normal practices for customers in the same rate class.
  3. If the electricity generated by the customer-generator exceeds the electricity supplied by the City during a billing period, the customer-generator shall be billed for the appropriate customer charges for that billing period and shall be credited an amount at least equal to the avoided fuel cost of the excess kilowatt-hours generated during the billing period, with this credit applied to the following billing period.
  4. Any credits granted by this section shall expire without any compensation at the earlier of either twelve months after their issuance or when the customer-generator disconnects service or terminates the net metering relationship with the City.
  5. At the option of the City and upon concurrence from KCP&L (the wholesale generator supplying electric energy to the City), the credit to the customer-generator may be provided by KCP&L.

Section 5:        Applications for net metering.

  1. Applications by a customer-generator for net metering shall be accompanied by the plan for the customer-generator’s electrical generating system, including but not limited to a wiring diagram and specifications for the generating unit, and shall be reviewed and responded to by the City within thirty (30) days of receipt for systems ten (10) kilowatts or less and within ninety (90) days of receipt for all other systems.
  2. If an application for interconnection is approved by the City but the customer-generator does not complete the interconnection within one (1) year after receipt of notice of the approval, the approval shall expire and the customer-generator shall be responsible for filing a new application.
  3. Upon a change in ownership of a qualified electric energy generation unit, the new customer-generator shall be responsible for filing a new application with the City. Failure to file a new application within one (1) year shall constitute grounds for the City terminating any agreement entered into under a previously approved application.

Section 6:        Application standards.

  1. Application requirements
    1. Applications shall be legible.
    2. All applicable fields will be completely filled out as required. Incomplete applications will be returned.
  2. Installation plan
    1. A legible general site or plan drawing of the installation must be included. Detail architectural or construction drawings are not required.
    2. A legible map of the location must be included. The general location of the installation and the location of the associated meter should be depicted.
  3. Application submittal
    1. Applications will be accepted in hardcopy or electronic PDF format.
    2. Hard-copy applications will only be accepted via mail delivery to:

Rich Hill City Hall

120 N. 7th St.

Rich Hill, MO  64779

  1. Electronic-copy applications shall be submitted in a single file e-mail, presented in PDF format. Unless the file size exceeds e-mail limitations, multiple files will not be accepted.
  2. Electronic-copy applications must be e-mailed to cityclerk@richhillmo.com.
  1. All applications will be processed in the order they are received.

Section 7:        Customer-generator’s information.

  1. Name on electric utility account: ____________________________________________
  2. Electric utility account number: _____________________________________________
  3. Name of contact person: ___________________________________________________
  4. Service address: __________________________________________________________
  5. City: ___________________________________________________________
  6. State: ___________________________________________________________
  7. Zip code: ___________________________________________________________
  8. Mailing address (if different from above): _____________________________________
  9. City: ___________________________________________________________
  10. State: ___________________________________________________________
  11. Zip code: ___________________________________________________________
  12. E-mail address: __________________________________________________________
  13. Phone number: ___________________________________________________________
  14. Fax number: ___________________________________________________________
  15. Emergency contact person: _________________________________________________
  16. Phone number of emergency contact person: ___________________________________

Section 8:        Customer-generator’s system information.

  1. Manufacturer name plate power rating: ________________________________________
  2. Voltage: ________ volts
  3. Inverter/interconnection equipment manufacturer: _______________________________
  4. Inverter/interconnection equipment model number: ______________________________
  5. Inverter/interconnection equipment location: ___________________________________
  6. Outdoor manual/utility accessible and lockable disconnect switch location: ________________________________________________________________________
  7. Certify that the disconnect switch will be located adjacent to the customer-generator’s electric service meter or explain where and why an alternative location of the disconnect switch is being requested: __________________________________________________

________________________________________________________________________

  1. Existing electrical service capacity: ________ amperes, Voltage: ________ volts
  2. Service character: ____ single phase ____ three phase
  3. Total capacity of existing customer-generator system (if applicable): ________ kW
  4. System plans, specifications, and wiring diagram have been attached: ____ yes ____ no

Section 9:        Customer-generator’s system installation information.

  1. Company installing system: _________________________________________________
  2. Contact person of company installing system: __________________________________
  3. Phone number of contact person: _____________________________________________
  4. Contractor’s license number (if applicable): ____________________________________
  5. Approximate installation date: _______________________________________________
  6. Mailing address: __________________________________________________________
  7. City: ___________________________________________________________
  8. State: ___________________________________________________________
  9. Zip code: ___________________________________________________________
  10. Phone number: ___________________________________________________________
  11. Fax number: ___________________________________________________________
  12. E-mail: ___________________________________________________________
  13. Engineer/electrician who will inspect/certify installation: _________________________

Section 10:      Pre-construction installation certification.

The customer-generator’s proposed system hardware complies with all applicable National Electrical Safety Code (NESC), National Electrical Code (NEC), Institute of Electrical and Electronics Engineers (IEEE), and Underwriters Laboratories (UL) requirements for electrical equipment and their installation.  As applicable to system type, these requirements include, but are not limited to, UL 1703, UL 1741 and IEEE 1547. The proposed installation complies with all applicable local electrical codes and all reasonable safety requirements of the City. The proposed system has a lockable, visible AC disconnect device, accessible at all times to City personnel and the switch is located adjacent to the customer-generator’s electric service meter (except in cases where the City has approved an alternate location).  The system is only required to include one lockable, visible disconnect device, accessible to the City.  If the interconnection equipment is equipped with a visible, lockable, and accessible disconnect, no redundant device is needed to meet this requirement. The customer-generator’s proposed system has functioning controls to prevent voltage flicker, DC injection, overvoltage, undervoltage, overfrequency, underfrequency, and overcurrent, and to provide for system synchronization to the City’s electrical system.  The proposed system does have an anti-islanding function that prevents the generator from continuing to supply power when the City’s electric system is not energized or operating normally.  If the proposed system is designed to provide uninterruptible power to critical loads, either through energy storage or back-up generation, the proposed system includes a parallel blocking scheme for this backup source that prevents any backflow of power to the City’s electrical system when the electrical system is not energized or not operating normally

  1. Printed name (installer): ____________________________________________________
  2. Signed (installer): _________________________________________________________
  3. Date: ___________________________________________________________

Section 11:      Additional terms and conditions.

  1. If it appears to the City, at any time, in the reasonable exercise of its judgment, that operation of the customer-generator’s system is adversely affecting safety, power quality, or reliability of the City’s electrical system, the City may immediately disconnect and lock-out the customer-generator’s system from the City’s electrical system. The customer-generator shall permit the City’s employees and inspectors reasonable access to inspect, test, and examine the customer-generator’s system.
  2. This agreement becomes effective upon approval of the customer-generator’s application and when signed by both the customer-generator and the City. The agreement shall be in effect until terminated.  Either party may terminate this agreement by giving the other party at least thirty (30) days prior written notice that the other party is in default of any of the terms and conditions of this Agreement, so long as the notice specifies the basis for termination, and there is an opportunity to cure the default. This agreement may also be terminated at any time by mutual agreement of the customer-generator and the City. This agreement may also be terminated, by approval of the City, if there is a change in Missouri State Statutes that is determined to be applicable to this agreement and necessitates its termination.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

CUSTOMER-GENERATOR

__________________________

(Signature)

By: _______________________

Title: _____________________

Date: _____________________

CITY OF RICH HILL, MISSOURI                                                               

__________________________

Jason Rich, Mayor

Date: _____________________

                                                           

ATTEST:

__________________________

Brittany Schenker, City Clerk

 

APPLICATION DENIED

__________________________

Jason Rich, Mayor

Date: _____________________

Reason for denial:

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