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Home My WebLink About#10 Amend District Code Agenda Item # 10 -' TRUCKEE Public Utility District ACTION To: Board of Directors From: Stephen Hollabaugh Date: December 02, 2009 Subject: Consideration of Adopting an Ordinance to Amend Schedule NM, Net Metering and Resolution to Amend District Code, Title 7.64.020.3 (B). 1. WHY THIS MATTER IS BEFORE THE BOARD The Board must adopt an ordinance to revise the Net Metering and a resolution to revise District Code, Title 7 Electric Services. 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. Staff presented to the Board, at the October 21, 2009 meeting a change in the language of the ordinance from the month of May to the month of March. On June 4, 2008, the Board adopted a Resolution to change Net Metering from Domestic-NM to NM. When the ordinance was revised, the following language was also included: 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." As part of the District code review, a Net Metering Chapter was added to Title 7, Electric Service. This chapter also included the statement above. 3. NEW INFORMATION This action item to consider authorizing the change to the ordinance, Schedule NM, Net Metering is scheduled for after the public hearing. The following language is proposed to be changed in the Net Metering and the District code Title 7, Electric Services: This evaluation and reconciliation for electricity used or generated may be standardized by the District for the 12 month billing period ending with the March billing, rather than using each customer's respective anniversary month." Attachment 1 is an Ordinance amending the current Net Metering Ordinance, and Attachment 2 is the Resolution adopting the amendment to District Code Title 7, Electric Service. 4. FISCAL IMPACT There is limited fiscal impact, expected to be less than $1,000 annually to the District due to the proposed change. 5. RECOMMENDATION a) Adopt Schedule NM and approve Ordinance No. 2009-xx rescinding Ordinance No. 2008-06. b) Approve a Resolution to adopt the same language as approved in the ordinance within the Net Metering Chapter in Title 7, Electric Service. Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager Attachment 1 3v RUC DONNER Public Utility District J 399&� a Ordinance No. 2009 - XX Adopting Schedule NM, - Net Metering and Rescinding Ordinance No. 2008-06 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: 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 Ordinance 2009-XX during that period. The District will determine if the customer-generator was a net consumer or a net producer of electricity during that period. 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 March 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 Net Metering Tariff, shall become effective and that Ordinance No. 2008-06 be rescinded. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 2"d day of December 2009 by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT President ATTEST: Michael Holley, P.E. District Clerk 2 Ordinance 2009-XX ' Amendment 2 I III II IIII II F f TRUCKEE DONNER Public Utility District UPF e�. PO :. 0 Resolution No. 2009 - XX ADOPTING AN AMENDMENT TO THE DISTRICT CODE TITLE 7, ELECTRIC SERVICE WHEREAS, the Board of Directors of the Truckee Donner Public Utility District wishes to amend a Section in District Code Title 7, Electric Service; and WHEREAS, the District Code provides rules and regulations intended to convey a comprehensive description of the manner in which the District provides and administers the distribution of electricity to its customers; and WHEREAS, the Board adopted a Resolution amending the entire Title 7 on November 5, 2008; and WHEREAS, on October 21, 2009, the Board scheduled a Public Hearing for December 2, 2009 to accept public review and comment regarding the month change in the net metering process; and NOW THEREFORE, BE IT RESOLVED, that the Board of Directors does hereby adopt the amended language in Section 7.64.020.3(B, Net Metering, Special Conditions: 7.64.020.3(B) This evaluation and reconciliation for electricity used or generated may be standardized by the District for the 12 month billing period ending with the March billing, rather than using each customer's respective anniversary month. PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District in a meeting duly called and held within said District on the second day of December 2009 by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By , President ATTEST: Michael D. Holley, Clerk of the Board