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HomeMy WebLinkAbout7 Approve net metering ordinance Agenda Item # 7 DistrictPublic Utility ACTION To: Board of Directors From: Stephen Hollabaugh Date: June 04, 2008 Subject: Approve the Ordinance to Update Net Metering 1. WHY THIS MATTER IS BEFORE THE BOARD The District schedules should periodically be reviewed and updated to conform to current District Board policies and new applicable laws and regulations. 2. HISTORY The Board of Directors has set Goal 5.3 in its Mission Statement that states the District will support a program of distributed generation within its Service Area. Schedule D-NM related to Net Metering enables distributed generation to use this metering and billing schedule. The District has approved a SB1 (solar generation) program that will enable more customers to install solar generation. The existing schedule D-NM facilitates term-of-service to customers with solar and wind power production systems of not more than ten kilowatts. 3. NEW INFORMATION The District has been approached and has an application form a commercial customer for a solar generation installation of more than ten kilowatts. California Assembly Bill 58 has modified the Net Metering program. The Net Metering program was expanded to include systems sized up to 1 ,000 kilowatts or 1 megawatt (MW). Staff proposes to revised and rename schedule D-NM to schedule NM and rescind Ordinance 2000-01. With the program now available to up to 1 megawatt, domestic and commercial customers may use this schedule. In order to alleviate any confusion, the domestic portion of the old schedule name was dropped. The new NM schedule has been changed to include installations up to 1 megawatt in size and the billing description has been revised for clarity. 4. FISCAL IMPACT The fiscal impact varies depending on participation and production. 5. RECOMMENDATION Adopt Schedule NM and approve Ordinance No. 2008-xx rescinding Ordinance No. 2000-01. Stephen Hollabaugh, Assistant General Michael D. Holley, General Manager Manager Ipllll U �II�II�K �I IIIIhI Ill�l IDONNE Public Utility District IA� 9_ Ordinance No. 2008 - XXX Adopting Schedule NM, - Net Metering and Rescinding Ordinance No. 2000-01 APPLICABILITY Applicable to residential or commercial customers eligible for service where a part or all of the electrical requirements of the customer can be supplied from a solar or wind power production source owned and operated by the customer, where such source is connected for parallel operation with the service of the District and where such source is located on the customers premises and is intended to offset part or all of the customers electrical requirements. This schedule provides rates, terms and conditions for the sale of energy by the District. Prices, terms and conditions for the purchase of net energy transmitted by the customer to the District are included herein for reference only. Such prices, terms and conditions and the terms of inter-connection and parallel operation are outlined in the generation agreement required for service under this tariff. The purpose of this tariff is to facilitate terms of service to customers with solar or wind power production systems of not more than one megawatt. Applicability of this tariff does not extend to customers whose solar or wind power production source exceeds 1000 kilowatts or one megawatt. TERRITORY The entire area served by the Truckee Donner Public Utility District electric system. RATES Customer charge Same as applicable residential or commercial customer charge. Energy charge On the residential or commercial energy rate applicable to that customer. Net energy credit All kilowatt-hours, per kilowatt-hour—the net energy credit will be computed at a rate for payment equal to the monthly average non-firm energy price the District pays during the applicable billing month. SPECIAL CONDITIONS (a) Generation agreement: A generation agreement with the customer is required for service under the schedule. For eligible residential and small commercial customer-generators, the net energy metering calculation shall be made by measuring the difference between the electricity supplied to the eligible customer-generator and the electricity generated by the eligible customer-generator and fed back to the electric grid over a 12-month period. The following rules shall apply to the annualized net metering calculation: Ordinance 2008-XX 1. The eligible customer-generator account shall, at the end of the 12-month period following the date of final interconnection of the customer-generator's system with the District, and at each anniversary date thereafter, be evaluated and reconciled for electricity used or generated during that period. The District will determine if the customer-generator was a net consumer or a net producer of electricity during that period. 2. At the end of each 12-month period, where the electricity supplied during the period by the District exceeds the electricity generated by the customer-generator during that same period, the customer-generator is a net electricity consumer and the District shall be owed compensation for the customer-generator's net kilowatt-hour consumption over that same period. The compensation owed for the customer-generator's shall be calculated as follows: The net balance of moneys owed shall be paid in accordance with the normal billing cycle. If the customer-generator is a net producer over a normal billing cycle, any excess kilowatt- hours generated during the billing cycle shall be carried over to the following billing period as a monetary value, calculated according to the procedures set forth in this section, and appear as a credit on the customer-generator's account. This credit may be utilized in the following billing cycle if the customer is a net consumer during that cycle. If the customer is a net generator at the end of each 12-month period, then (3) shall apply. 3. At the end of each 12-month period, where the electricity generated by the customer-generator during that 12-month period exceeds the electricity supplied during that same period, the customer-generator is a net electricity producer and the District shall retain any excess kilowatt-hours generated during the prior 12-month period. The customer-generator shall be compensated by the District for the excess kilowatt-hours generated at its annual average non-firm energy price the District pays during the prior 12-month period. 4. If a customer-generator terminates the customer relationship with the District, the District shall reconcile the customer-generator's consumption and production of electricity during any part of a 12-month period following the last reconciliation and shall apply only the months since the most recent 12-month reconciliation. NOW THEREFORE, BE IT ENACTED by the Board of Directors that effective 30 days from the date of passage of this ordinance, the District's Schedule D-NM, Domestic—Net Metering Tariff, shall become effective and that Ordinance No. 2000-01 be rescinded. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the XX day of XXXX 2008 by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT Tim F. Taylor, President ATTEST: Michael Holley, P.E. District Clerk 2 Ordinance 2008-XX TRUCKEE It • Ordinance No. 2008 - XXX Adopting Schedule NM, - Net Metering and Rescinding Ordinance No. 2000-01 APPLICABILITY Applicable to residential or commercial customers eligible for service where a part or all of the electrical requirements of the customer can be supplied from a solar or wind power production source owned and operated by the customer, where such source is connected for parallel operation with the service of the District and where such source is located on the customers premises and is intended to offset part or all of the customers electrical requirements. This schedule provides rates, terms and conditions for the sale of energy by the District. Prices, terms and conditions for the purchase of net energy transmitted by the customer to the District are included herein for reference only. Such prices, terms and conditions and the terms of inter-connection and parallel operation are outlined in the generation agreement required for service under this tariff. The purpose of this tariff is to facilitate terms of service to customers with solar or wind power production systems of not more than one megawatt. Applicability of this tariff does not extend to customers whose solar or wind power production source exceeds 1000 kilowatts or one megawatt. TERRITORY The entire area served by the Truckee Donner Public Utility District electric system. RATES Customer charge Same as applicable residential or commercial customer charge. Energy charge On the residential or commercial energy rate applicable to that customer. Net energy credit All kilowatt-hours, per kilowatt-hour—the net energy credit will be computed at a rate for payment equal to the monthly average non-firm energy price the District pays during the applicable billing month. SPECIAL CONDITIONS Generation agreement: A generation agreement with the customer is required for service under the schedule. For eligible residential and small commercial customer-generators, the net energy metering calculation shall be made by measuring the difference between the electricity supplied to the eligible customer-generator and the electricity generated by the eligible customer-generator and fed back to the electric grid over a 12-month period. The following rules shall apply to the annualized net metering calculation: 1. The eligible customer-generator account shall, at the end of the 12-month period following the date of final interconnection of the customer-generator's system with the District, and at each anniversary month thereafter, be evaluated and reconciled for electricity used or generated during that period. The District will determine if the customer-generator was a net consumer or a net producer of electricity during that period. Ordinance 2008-XX A. This evaluation and reconciliation for electricity used or generated may be standardized by the District for the 12 month billing period ending with the May billing, rather than using each customer's respective anniversary month. 2. At the end of each 12-month period, where the electricity supplied during the period by the District exceeds the electricity generated by the customer-generator during that same period, the customer-generator is a net electricity consumer and the District shall be owed compensation for the customer-generator's net kilowatt-hour consumption over that same period. The compensation owed for the customer-generator's shall be calculated as follows: The net balance of moneys owed to the District shall be paid in accordance with the normal billing cycle. If the customer-generator is a net producer over a normal billing cycle, any excess kilowatt-hours generated during the billing cycle shall be carried over to the following billing period as kilowatt-hour credits according to the procedures set forth in this section, and appear as a credit on the customer-generator's account. This credit may be utilized in the following billing cycle if the customer is a net consumer during that cycle. If the customer is a net generator at the end of each 12-month period, then (3) shall apply. 3. At the end of each 12-month period, where the electricity generated by the customer-generator during that 12-month period exceeds the electricity supplied during that same period, the customer-generator is a net electricity producer and the District shall retain any excess kilowatt-hours generated during the prior 12-month period. The customer-generator shall be compensated by the District for the excess kilowatt-hours generated at its annual average non-firm energy price the District pays during the prior 12-month period. 4. If a customer-generator terminates the customer relationship with the District, the District shall reconcile the customer-generator's consumption and production of electricity during any part of a 12-month period following the last reconciliation and shall apply only the months since the most recent 12-month reconciliation. NOW THEREFORE, BE IT ENACTED by the Board of Directors that effective 30 days from the date of passage of this ordinance, the District's Schedule D-NM, Domestic—Net Metering Tariff, shall become effective and that Ordinance No. 2000-01 be rescinded. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the XX day of XXXX 2008 by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT Tim F. Taylor, President ATTEST: Michael Holley, P.E. District Clerk 2 Ordinance 2008-XX