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HomeMy WebLinkAboutOrd 8107f ORDINANCE NO. 81/V OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT I ESTABLISHING POLICY FOR PURCHASE OF POWER AND ENERGY FROM SMALL POWER PRODUCERS AND COGENERATORS IN COMPLIANCE WITH THE PUBLIC UTILITY REGULATORY FRACTICES ACT OF 1978 WHEREAS, it is the desire of the Board of Directors of the Truckee Dormer Public Utility District to comply with the Public Utility Regulatory Practices Act (PURPA) of 1978 with respect to the purchase of power and energy from small power producers and cogenerators; BE IT ENACTED by the Board of Directors of the Truckee Donner Public Utility District as follows: 1. The District will purchase at its "avoided costs" power and energy from lualifying facilities in accordance with Sections 201 and 210 of PURPA. The District will also sell power and energy to the qualifying facility as it may require. The District will sell the qualifying facility its needs over and above its generating capabilities or, at the qualifying facility's option, will purchase 100% of its generation output and sell to the qualifying facility 100% of its needs. 2. The District will base "avoided costs" on that portion of its whole- sale power cost which, by virtue of the purchase from the qualifying facility, it now avoids. I 3. Energy cost avoidance will equal the wholesale cost of energy on a one-tor-one basis. 4. Firm capacity cost avoidance will equal the wholesale cost of firm cap- acity 01) a Otte-for-one basis for all capacity the qualifying facility can provide on ar, equally firm basis as the District's wholesale power supplier. Non-firm or intermittent capacity will not qualify for payment. 5. Power and energy sales to the qualifying facility shall be made at standard rates. 6. PURPA provides that other Districts shall not subsidize the qualify- ing facility. Thus, all costs including engineering, construction, Material and related expenses are to be apid by the small power producers and cogenera- tors. I 7. The District is to held harmless from all acts or omissions on the part MI the qualifying facility. The qualifying facility will be required to carry adequate insurance and will be required to reimburse the District for its additional insurance premiums which may be caused by the connection of the qual- ifying facility. 8. The PURIA regulations also mandate that service to other Districts .hall not be degraded because of the presence or connection of the qualifying facility. The qualifying facility shall construct, operate and maintain its facilities or cause them to be constructed, operated and maintained, in a man- Mi conforming to all existing safety codes, regulations and best operating practices. Failure to comply shall be cause for disconnection of the qualify- ing facility. 9. Future costs or system improvements which may become necessary by reason of the continued connection of additional qualifying facilities to the District facility shall be shared by all qualifying facilities that contribute to the need for the improvement to the District's facilities. The sharing of costs shall be prorated on a capacity basis at the time the cost is incurred. Page 1 of 2 I 10. Each connection of small power producer and cogenerator to the Dis- trict's radial distribution system will require individual engineering analysis. The District encourages prospective small power producers and cogenerators to employ qualified engineering firms in the design of the interconnecting facil- ities and in the design of modifications, if any, to the District's system to accomodate the addition of generation. The District will provide all system data for use by the engineer, including line characteristics, substation cap- acities, sectionalizing schemes and voltage regulation programs. The design of the interconnecting facilities and system modifications shall incorporate ap- paratus and devices compatible with those existing on the District system and compatible with facilities other small power producers and cogenerators connect to the District system. The design shall incorporate features that will permit construction, operation and maintenance of the facility without disruption or degradation of service to the consumers served by the District. The District is prepared to provide the design and construction service referred to herein on a cost reimbursable basis. However, the small power producers and cogenera- tors are encouraged to employ independent firms for this service. 11. Metering of KW and KWH quantities shall be provided by "in" and "out" meters as appropriate. Based on readings of these meters, the District will monthly render a statement showing in necessary detail the purchase oy the Dis- trict, the sales by the District and the net monies owed by the District or due to the District. 12. The District will maintain an accurate and complete accounting of all expenses related to the application and connection of each small power producer and cogenerator and shall promptly bill the small power producer or cogenerator for all related expenses. Related expense shall include but not be limited to labor, materials, insurances, overheads, legal services, consulting services, meter reading, switching costs, mileage and equipment costs. I 13. The District and the small power producer or cogenerator shall enter into a written agreement setting forth in necessary detail the manner in which the District shall purchase and sell power and energy to the small power producer or cogenerator, the facilities to be constructed, the character of service, the planned mode of operation and maintenance of the facilities. The agreement shall also detail the rate, billing and payment arrangements for power and energy trans- actions, the billing and payment procedures for District expenses related to the small power producer or cogenerator and other items that are a necessary part of the agreement. This Ordinance shall become effective thirty (30) days from the date of adoption. The clerk of the District shall immediately cause a copy of this Ordinance to be published once in the local newspaper and copies shall be posted in at least three public places within the District. PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at a regular meeting thereof duly called and held within said District on the /£ eii day of /7?#&fs? . 1981, by the follow- ing roll call vote: AYES: 2/uAS/ , A^'/TZ^ • ^9^/9.S-S . AA>ds^ ' NOES: A'e/V'f .* ABSENT: AsMt' , . I TRUCKEE DONNER PUBLIC UTILITY DISTRICT Roberta C. Huber, President ATTEST: Susan M. Craig, Deputy District j^ferk smc a/M ei