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Introduction: September 10, 2012 Introduction Postponement: September 24, 2012 Introduction Postponement: October 22, 2012 Introduction Postponement: November 26, 2012 Introduction Postponement: January 14, 2013 Motion Withdrawn: January 14, 2013 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING TITLE 14 OF THE CITY'S CODE OF ORDINANCES TO PROVIDE FOR INTERCONNECTION OF SMALL RENEWABLE ENERGY SOURCES TO THE CITY'S ELECTRICAL DISTRIBUTION SYSTEM WHEREAS, the city council encourages the development and use of alternative energy production; and WHEREAS, the interconnection with the city's electrical distribution system should be allowed, provided that alternative power sources do not adversely affect the city's system or delivery of power to other electric customers, and WHEREAS, the city council wishes to allow alternative energy that is safe to users, the public, and electric utility employees. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Section 1. Seward City Code Section 14.01.015 Definitions is amended as follows: Stfikeout = Delete Bold = New 14.01.015. - Definitions. Unless the context specifically indicates otherwise, the meaning of terms used in this title shall be as follows: Alternative power source. Means electrical generation fueled by renewable resources such as wind, solar, geothermal, biomass, or water. An alternative power source does not include fossil fuel generation. CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 Applicant. Means a person, including a corporation, partnership, association, and governmental unit or agency, who requests utility service or the extension of utility facilities or interconnection under these provisions and who may be synonymous, as circumstances permit, with "developer," "owner," "contractor," "builder," and similar terms associated with the improvement and development of real property and the construction of buildings and related improvements and their heirs, successots. Application for interconnection. Means the application for interconnection of alternative power source that must be completed by any customer wishing to interconnect to the city's electrical distribution system as an independent power producer. BOD (denoting biochemical oxygen demand). Means the quantity of oxygen utilized in the biochemical oxidation of organic matter under standard laboratory procedure in five days at 20 degrees Centigrade, expressed in milligrams per liter. Building drain. Means that part of the lowest horizontal piping of a drainage system which receives the discharge from soil, waste, and other drainage pipes inside the walls of the building and conveys it to the building sewer, beginning five feet (1.5 meters) outside the inner face of the building wall. Building sewer. Means the extension from the building drain to the service connection or j other place of disposal. Certificate of Completion. Means the form completed by the applicant for interconnection and the electrical inspector having jurisdiction over the installation of the facilities indicating completion of installation and inspection of the interconnection. Class A facility. Means non - utility generator installation of 10 -kVA output or less, where the system stiffness ratio is at Least 100. Class B facility. Means non - utility generator installation with an output of between 10- kVA and 100 -kVA, where the system stiffness ratio is at least 50. Class Cfacility. Means non - utility generator installation with an output of between 100 - kVA and 1000 -kVA, where the system stiffness ratio is at least 30. Class D facility. Means non - utility generator installation with an output of between 1000 -kVA and 5000 -kVA, where the system stiffness ratio is at least 20. Class of service. Means the type of service rendered by the city to a customer under a particular rate schedule. Page 2 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 Clean -out. Means a pipe inserted into the sewer extension through which a cleaning device can be inserted into the sewer extension. Collection system. Means the system of public sewers to be operated by the city and designed for the collection of sewage. Combined sewer. Means a sewer receiving both surface runoff and sewage. Commercial service - Demand metered. This classification applies to demand metered general lighting, incidental power, and other services used by commercial and industrial enterprises whose demand is equal to or greater than 25 KVA. Commercial service - Non - demand metered. This classification applies to single phase, non- demand metered general lighting, incidental power, and other services used by commercial and industrial enterprises whose demand capacity is less than 25 KW, and by multiple dwelling units when supplied through one meter. A residential service through which an additional service point not directly associated with the primary residence is likewise serviced will be billed under this schedule. Customers will be classified as non - residential unless they are clearly a residential account. The burden of proof will be on the customer. Commercial user. Means a person or premises used for commercial or business purposes which discharges domestic waste, not industrial waste. Composite. Means the make -up of a number of individual samples so taken as to represent the nature of sewage or industrial wastes. Constituents. Means the combination of particles or conditions which exist in the industrial wastes. Contribution -in- aid -of- construction. Means that sum of money representing the cost of making additions or modifications to utility distribution facilities and underground installations, which the applicant or customer must pay as a condition precedent to installing the facilities requested, and which becomes the property of the city and is not otherwise subject to refund to the contributor. Contributor. Means an individual or entity willing to fund alternative power generation through voluntary monetary donation(s). Customer. Means the person, partnership, corporation, or entity in whose name a utility account is held and the occupant, resident, or tenant of any premises served by a city utility. In those cases where a utility service is not separately metered to individual tenants in a building, the landlord/owner shall be considered a customer. Page 3 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 'nt. Means the location where city Delivery pot t3' electrical distribution system terminates its equipment or conductors and at which the customer assumes responsibility for construction and maintenance of the electrical facilities. Demand. Means the maximum rate of delivery of electric energy during a month, measured in kilowatts (KW) registered over a 15- minute period by a demand meter. Domestic waste. Means any sewage emanating from residential dwellings or from domestic activities by or for private citizens having a BOD of less than 250 ppm and /or a total suspended solids of less than 250 ppm. Economically feasible. Means an extension of distribution facilities will be considered economically feasible if anticipated annual revenue from the project will recover all annual costs plus reasonable margins to provide service to that point, and that this balance of revenue to costs /margins can reasonably be expected to continue for the service life of the facilities constructed for the requested service extension. Electric service. Means the availability of electric energy at the point of delivery for use by the customer, irrespective of whether electric energy is actually used. Electrical distribution system. Means all electrical wires, equipment, and other facilities owned or provided by the city that are used to transmit electricity to customers. Engineering. Includes the preparation of electric layouts, designs, specifications, and other drawings and lists associated with electric construction. It also includes, but is not limited to, making construction estimates, inspecting construction for conformance with design criteria and specifications, staking, right -of -way acquisition, and similar and related activities necessary to the technical planning and installation of electric distribution facilities. Fault. Means the event when one or more electrical conductors contact ground and /or each other. An electrical system that allows current to travel along an unintended path, often where very low electrical impedance is encountered. Garbage. Means all animal and vegetable refuse from food or food preparation, dead animals, and the accumulation from restaurant grease traps, but not dish water nor wastewater, ice, salt, and similar materials. Independent power provider. Means an electrical distribution system customer who has developed or is developing an alternative power source. Industrial. This classification applies to electrical services with demand equal to or greater than 750 KW. Industrial services with demand of equal to or greater than 5,000 KW will be served by contract only, and only by cost -based rates of those services. Page 4 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 Industrial user. Means a person or premises which discharges sewage having the characteristics of industrial wastes as distinct from domestic wastes or which has a BOD of 250 ppm or greater and /or which has a total suspended solids of 250 ppm or greater. Industrial wastes. Means the sewage from industrial manufacturing processes, trade, or business as distinct from domestic waste. Interconnect facilities. Means the electrical wires, switches, and other equipment used to interconnect a generating facility to the electric system. Interconnection. Means the physical connection of a generating facility to the electric system so that parallel operation may occur. Interconnection agreement. Means the agreement by the applicant to comply with standardized terms and conditions governing the interconnection of generating facilities pursuant to these standards. The interconnection agreement may be modified to accommodate terms and conditions specific to individual interconnections, subject to the conditions set forth in this title. Key box (curb valve, curb cock). Means the shut -off point for water service, which is the rr property of the customer. Mobile home. Means manufactured housing, as defined in section 8.15.110 of this code, built on a chassis and/or in accordance with Department of Housing and Urban Development standards contained in Code of Federal Regulations Title 24, Chapter 20. A mobile home shall be construed to remain a mobile home, subject to all regulations applying thereto, whether or not wheels, axles, hitch, or other appurtenances of mobility are removed and regardless of the nature of the foundation required. Mobile home park. Means any parcel, or adjacent parcels of land in the same ownership, which is used for occupancy by two or more mobile homes. The term does not include camper parks as defined in section 8.15.110 of this code. Multiple residential structures. Means any building or collections of buildings having common walls, containing two or more residential units, which include such common residential arrangements as apartments, townhouses, row houses, and condominiums. Natural outlet. Means any outlet into a watercourse, pond, ditch, lake, or other body of surface water or ground water. On -site sewage disposal. Means the use of any privy, cesspool, septic tank, or similar facility for disposal of sewage which is not connected to the collection system. Page 5 of 23 mow CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 qui Parallel operation. Means the synchronous operation of a generating facility while interconnected with the electrical distribution system. Permanent electrical service. Means service entrance and metering equipment installed at a given location with intent to remain for the useful service life of the city's electrical facilities constructed for that service. The equipment will be mounted on a city pole, or customer's building, or other structure on a permanent, non - moveable foundation. The city reserves the right of final determination of whether a service will be classified permanent. All facilities will be designed and installed in accordance with applicable codes, standards, and practices of the industry for the class of service offered. pH. Shall mean the logarithm of the reciprocal of the weight of hydrogen ions in grams per liter of solution. Point of delivery. Is that predetermined location where the city terminates its equipment or conductors and connects with the customer's equipment or conductors. Premises. Means the real property of the customer in a single location being served by the city. Pretreatment. Means that physical treatment given to sewage prior to discharge into the collection system, or those processes utilized for this purpose. Primary service. Means the conductors and equipment necessary to supply the customer with electricity at the available primary voltage above 480 volts. Primary voltage. Means the voltage supplied to the high voltage side of distribution transformers, which include three -phase service 7,200/12,470 and 14,400/24,900. Properly shredded garbage. Means the remnants from the preparation, cooking, and dispensing of food that have been shredded to such a degree that all particles will be carried freely under the flow conditions normally prevailing in the collection system, with no particle greater than one -half inch (1.27 centimeters) in any dimension or overall. Public sewer. Means any sewer collection system operated by or under the authority of the city. Public works department. Means the City of Seward public works department. Raceway. Means a channel for holding wires, cables, or busbars, which is designed expressly and used solely for that purpose. Page 6 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 �.. Receiving waters. Means those natural outlets into which sewage is discharged. Refuse. Means all garbage, rubbish, and waste material. Residential or domestic user. Shall mean a person or premises who discharges an average normal volume of domestic waste to the collection system. Residential service. Means the providing of a utility to a single - family dwelling. Except for "home occupations" as defined in sections 15.10.140 and 15.10.240 of this Code, activities of a nature requiring a business license, advertising, or whose profits and expenses are shown against federal income taxes will be classified as "commercial." Rubbish. Means tree and plant trimmings, paper products, rags, rubber, carpets, clothing, straw packing, packing materials, furniture, and all other kinds of combustible waste material which ordinarily accumulates in the operation of a household or business. "Rubbish" does not include manure or waste from any yard or stable. Sanitary sewer. Means a sewer which carries sewage and to which storm, surface, and ground waters are not intentionally admitted. Secondary service. Means service at available voltage of 480 volts or less. irup Secondary voltage. Means the voltage for delivery directly to the service entrance of the customer, i.e., the low voltage side of a distribution transformer (utilization voltage). Security lights. Means a fixture or fixtures installed to illuminate private homes and areas, including places and areas to which the public has access but which are privately owned and controlled. Service. Means the furnishing of a utility to a given location. Service connection. Means the pipe and appurtenances required to connect an individual property or facility to the sanitary sewer. The service connection shall start at the collection system and terminate at the property line or easement limit and shall not include the building sewer. Sewage. Means any combination of the water - carried wastes from residences, business buildings, institutions, and industrial establishments, together with such ground, surface, and stormwaters as may be present. Sewage treatment plant. Means any arrangement of devices and structures used for treating sewage. irair Page 7 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 Sewage works. Means all facilities for collection, pumping, treating, and disposing of sewage. Sewer. Means a pipe or conduit for carrying sewage. Slug. Means any individual or combined discharge of water, sewage, or industrial waste which in concentration of any given constituent or in quantity of flow exceeds, for any period longer than 15 minutes, more than five times the average 24 -hour concentration or flows during normal operation. Storm drain and storm sewer. Means a sewer which carries storm and surface waters and drainage, but excludes sewage and industrial wastes, other than unpolluted cooling water. Street light. Means a system or fixture of such system, for the illumination of streets, alleys, and other public places and areas, installed and operated at public expense. Subdivision. Means a tract or parcel of land divided into two or more lots, sites, or other divisions according to applicable law. Suspended solids. Means solids that either float on the surface of or are in suspension in water, sewage, or other liquids, and which are removable by laboratory filtering. Tariff. Means the City of Seward Utility Tariffs as approved by the city council and amended from time to time. Technical requirements for interconnection. Means the document that contains the applicable engineering criteria prescribing the technical interconnection, protection, and metering requirements for any alternative power source to be connected to the electrical distribution system and may be amended by resolution from time to time. A copy of the technical interconnection requirements is available from the electric department. Temporary secondary service. Means service provided on an interim basis during a construction phase or any other service provided by use of facilities which cannot be reused or continued as permanent facilities and must be removed when the temporary need has ceased. The duration of the service will not exceed 180 days. Thaw wire. Means the wire leading from the water main, parallel with the service line, and coming up to the ground surface at the key box. Toxic. Means constituents of sewage which are considered from time to time by the U.S. Environmental Protection Agency in its listing of NRDC Priority Pollutants Schedule as adversely affecting facilities or conditions similar to the collection system, the sewage treatment plant, or the receiving waters. Page 8 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 it Waste material. Means broken crockery, glass, wire, ashes, cinders, bottles, tin cans, metals, and other similar noncombustible waste material resulting from the operation of a household or business. Discarded vehicle bodies or other bulky or heavy objects, waste material resulting from any manufacturing, building, or construction operation, and similar materials shall not be considered waste material and must be disposed of by the property owner. Water connection or water service connection. Means that part of the water distribution system, including pipe and appurtenances, used to conduct water from the water main to a point at or near the property line of the premises to be served. Water connection extension. Means that part of the water distribution system extending from the water connection into the premises served. Section 2. Seward City Code Title 14, Chapter 15, Article 4 Interconnection to Customer - Owned Alternate Technology and Fossil Fuel Standby Generation Equipment is amended as follows: Strikeout = Delete Bold = New Article 4. - Interconnection to With Customer -Owned Alternat e-ive Teehnoloffy and-Fossil-Fuel Standby Power Source Generation Equipment i r.. 14.15.410. — Alternat e-ive Power Source. The city will permit the interconnection and operation of alternate tech olegy genefatien ive power source facilities . _ . . - - _ . • . . - - • - • • • • - with its integrated electrical distribution system upon compliance by the customer with the following provisions and upon issuance of an interconnection permit by the city. A permit shall be subject to the customer's compliance with all provisions specified in this Article and signature on an "Interconnection and Power Purchase Agreement for Independent Power Provider. ": The customer shall submit to the city along with his request for L.. protection equipment, regulation equipment, automatic disconnect Page 9 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 • . •:.: "_:.•,..-- manufaettwers7 0°7 • .:t:.. f Ord. 504, 1982) A. Categories. An independent power producer is categorized into four non - utility facility classes A - D (see definitions). B. Capacity and transformer limitation. Provided adequate capacity exists on the electrical distribution system where the alternative power source is to be sited and the independent power producer complies with all requirements specified in this Article, interconnection may be permitted. However, interconnection of an alternative power source to the electrical distribution system is limited to: 1. 1.5% of the minimum demand per substation average retail demand for the circuit to which the alternative power source is connected and on a first come, first serve basis, as determined by the electric department, and 2. Total nameplate capacity of 25 kilowatts or less delivered into the electrical distribution system, and Page 10 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 it 3. Only one alternative power source per distribution transformer and, in general, a customer -owned single -phase generating facility greater than 10KW shall not be allowed to be connected to a three -phase distribution transformer. This requirement may be waived by the electric department when the department deems it appropriate under the circumstances. C. Independent power producer responsibilities. The independent power producer shall be responsible for acquiring the site for the project, installing the generating facility, and complying with all of the applicable requirements set forth in this code, including any amendments that may be required. The independent power producer shall also be solely responsible for obtaining all easements, licenses, and relevant permits (building, floodplain, variance, utility, dig, etc.) of every type, and all costs and expenses of every type or nature, relating to the permitting, purchase, operation, and maintenance of the alternative power source. D. Compliance. The independent power producer shall comply with all applicable local, state, and federal laws, regulations, and codes, including, but not limited to, environmental laws, safety standards, building codes, National Electric Code (NEC), and National Electric Safety Code (NESC) for the construction and installation of an alternative power source, as well as the technical requirements for interconnection. E. Right of refusal. The utility manager reserves the right to refuse interconnection with alternative power source facilities or to limit the number of interconnections with alternative power source facilities on any single substation circuit if it is determined by the city that any such interconnection would be harmful or hazardous to its system, its employees, or other customers. If a proposed interconnection is refused, the city will provide the customer within three months of the complete application request, written notice of refusal, including a statement of the reason(s) for the refusal. F. Unauthorized interconnection. If an unauthorized interconnect is found, the city will immediately terminate service to those facilities and reconnect the service only when all conditions of these provisions are satisfied. 14.15.415. Interconnection Requirements, Procedures, and Application Process for Responding to Inquiries From an Independent Power Producer for an Alternative Power Source Less Than 25KW. A. Application. 1. All customers (independent power producers) desiring to build an alternative power source within the Seward city limits and interconnect with the electrical distribution system must submit a building permit, and all other applicable permits (i.e., bow Page 11 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 floodplain, utility locate /dig, etc.), a n d "Application for Interconnection." (Available from the pp electric department.) 2. All customers (independent power producers) desiring to build an alternative power source facility outside the Seward city limits and within the city's electrical service area must meet all Kenai Peninsula Borough requirements and will need to submit an application for interconnection in a form provided by the electric department, an independent power producer permit certification, and obtain a dig/utility location permit from the city. The certification shall be provided upon the independent power provider's permit certification form available from the electric department. 3. For existing permitted facilities within and outside the Seward city limits seeking to connect to the electrical distribution system, the independent power producer need only submit the application for interconnection. 4. The application for interconnection must be submitted at least 90 days prior to the date on which the customer intends to make any connection in any way to the electric circuitry common to the electrical distribution system. 5. The application for interconnection and building permit, if required, must be accompanied with complete documentation of the intended alternative power source, including, but not limited to: site location, schematics, wiring diagrams, performance specifications, descriptions of energy storage devices, circuit protection equipment, regulating equipment, automatic disconnect equipment, and any other proprietary device provided by the equipment manufacturers. 6. The electric department will provide the independent power producer applicant a copy of the current technical requirements for interconnection outlining the equipment requirements. All applicable provisions of the technical requirements for interconnection must be satisfied before an interconnection permit can be issued. 7. The electric department will provide the independent power producer applicant a copy of the interconnection and power purchase agreement for independent power provider for interconnection, power purchases, and power sales. Prior to interconnection and power purchase being authorized, the independent power producer applicant must return a signed agreement. 8. A non - refundable interconnection application fee may be required by the electric department based on the size of the alternative power source facility. 9. All interconnection requests pursuant to this Section will be reviewed by the city for compliance. If the electric department finds the application does not comply, the Page 12 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 application will be rejected and the electric department shall provide the applicant written notification stating the reason(s) for rejecting the application. B. Alternative power source protective equipment. The city reserves the right to require additional interconnection requirements for an alternative power source in order to preserve the safety and integrity of the electrical distribution system. 1. The independent power producer is fully responsible for the protection of the alternative power source and all associated equipment. 2. The independent power producer must provide protection for equipment failures, faults, and other disturbances on the electrical distribution system. 3. The independent power producer is responsible for the protection of the alternative power source from transient surges initiated by lightning, switching, or other system disturbances. 4. The independent power producer is responsible for all costs associated with the purchase, installation, and maintenance of all equipment required by the city in order to properly isolate the alternative power source from the electrical distribution system for any fault occurring on the electrical distribution system. 5. The alternative power source shall be equipped to provide isolation from the electrical distribution system for any fault occurring. The automatic isolation shall be done prior to the city's breaker (or recloser) reclosing and within two seconds (120 cycles). 6. The alternative power source shall be isolated from the electrical distribution system for any under - voltage (lower than 90 percent of nominal voltage) and over - voltage conditions (higher than 110 percent of nominal voltage) within two seconds (120 cycles). 7. The alternative power source shall disconnect from the electrical distribution system for any over - frequency and under - frequency conditions exceeding 60.5 Hz or below 59.5 Hz within 50 milliseconds (3 cycles). 8. The independent power producer is responsible for all costs associated with the purchase, installation, and maintenance of all equipment required by the city in order to properly isolate the alternative power source from the electrical distribution system for any voltage or frequency deviation described in subsections 5, 6, and 7 above. 9. The alternative power source requirements, to ensure reliable service, may be waived by the city when the utility manager deems it appropriate under the Page 13 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 circumstances. Any cost associated to achieve dedicated -to- single- customer service shall be at the independent power producer's sole expense. C. Potential special or additional equipment requirements. The electric department reserves the right to require additional protective systems functional testing (i.e., circuit breakers, switches, disconnect devices, protective relays, etc.) to ensure the safe and efficient operation of the electrical distribution system is not jeopardized by interconnection with the alternative power source. 1. The alternative power source generator nameplate voltage and frequency shall match the power characteristics supplied by the city. It is the responsibility of the independent power producer to match the voltage and frequency of the power supplied by the city. 2. The city may require the independent power producer to provide, at the independent power producer's own expense, special or additional starting equipment. 3. The independent power producer shall, to ensure proper grounding of the alternative power source, follow all applicable national, state, and local codes regarding grounding for applicable generating installations. 4. It is the independent power producer's responsibility to purchase, operate, and maintain all necessary safety equipment to keep the electrical distribution system from overheating and other harm. The independent power producer shall pay for all repairs to the electrical distribution system caused by an alternative power source overheating. D. Inspection and initial safety testing requirements. 1. The independent power producer shall complete all required interconnection safety- related testing of the alternative power source prior to interconnecting to the electrical distribution system. 2. Prior to initial energizing of the alternative power source, an inspection and /or tests will be performed by the independent power producer and the electric department personnel. The purpose of the inspection and testing will be to determine if the alternative power source meets the minimum requirements described by IEEE 1547, IEEE 519, and UL 1741, Underwriter Laboratories Inc., Standard for Inverters, Converters, and Interconnection System Equipment for Use with Distributed Energy Resources. 3. The city electric department may elect to accept the installation and energize the alternative power source, based on the inspection. Page 14 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 __ 4. The electric department may require retesting or additional testing, in the event discrepancies are noted between the certified equipment and drawings previously provided to and inspected by the electric department. E. Alternative power source acceptance and interconnection with electrical distribution system. The independent power producer is responsible to do all that may be required to have its alternative power source certified by the city in meeting the requirements described in this chapter. The alternative power source shall not be deemed complete until such time as the electric department verifies that all of the requirements specified by the city have been fully satisfied and all testing deemed appropriate by the electric department has been completed to the electric department's satisfaction. 1. Provided that adequate capacity exists on the electrical distribution system where the alternative power source is located, interconnection of an alternative power source to the electrical distribution system shall be on a first come, first serve basis, as determined by the effective date of submission of a complete application for interconnection. 2. The independent power producer shall pay all costs associated with the interconnection of the alternative power source to the electrical distribution system. 3. The independent power producer shall pay all line extension fees in accordance with the city tariff. 4. The electric department shall, within a reasonable time, interconnect the alternative power source to the electrical distribution system. The interconnection may happen upon completion of installation of the alternative power source and receipt of the independent power producer's certifications: a. All necessary federal, state, and local permits and certifications have been obtained, including building permits and any authorization required by Title 15 of this code. b. Independent power producer certificate along with the certifications shall be provided using the forms obtained from the electric department. 5. The electric department will execute the interconnection at its convenience and at a time designed to cause no, or minimal, disruption of electric service to other customers. 6. The electric department may, in the event the independent power producer fails to pay the required costs or fees, immediately disconnect the alternative power source with no notice and the independent power producer shall be responsible for all �... disconnection and reconnection costs. Page 15 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 F. Recurring safety related testing requirements. 1. The independent power producer is responsible to ensure protective relaying and control systems have available and accessible sensing input terminals or test ports, in order to perform and validate functional testing. 2. The alternative power source facilities shall meet the testing criteria contained in IEEE Standard 1547.1 "IEEE Standard Conformance Test Procedures for Equipment Interconnecting Distributed Resources with Electric Power Systems." 3. The independent power producer shall grant the city the right to observe functional testing of the alternative power source facilities. 4. The independent power producer shall annually test safety features of the alternative power source. 5. The electric department may require additional protective systems and functional testing (i.e., circuit breakers, switches, disconnect devices, protective relays, etc.) to ensure the continued safe and efficient operation of the electrical distribution system is not jeopardized by interconnection with the alternative power source. 6. The independent power producer must provide the electric department documented test results within five working days after the completion of the test. 7. The alternative power source is also subject to inspection and re- testing by the electric department upon reasonable notice each after the unit is placed into service. G. Point of delivery. 1. The alternative power source generated power shall be metered by the city to measure the amount of power from the city and the other to measure the amount of power delivered into the electrical distribution system from the alternative power source. 2. The electric department shall install the meters and own any and all improvements or equipment up to the delivery point, including all meters necessary to record the generation or consumption of electricity. 3. The independent power producer is solely responsible for all costs associated with the purchase, installation, and maintenance of all equipment required by the city in order to properly meter the alternative power source. Page 16 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 4. The electric department shall specify the meters to measure such parameters as time of delivery, power factor, voltage, and such other parameters. 5. The independent power producer shall provide space for metering equipment as specified by the electric department with the location of the meters to be approved by the electric department. H. Access to alternative power source facilities. 1. The independent power producer shall grant the city any necessary easements and the city shall have the right of access to and from the alternative power source and associated facilities at all hours for purposes of inspection, public safety, or protection of the electrical distribution system. 2. The alternative power source generator shall have a manual disconnect capability and the disconnect switch(es) shall be accessible, visible, and lockable in accordance with the electric department requirements. Each switch shall be appropriately labeled and disconnect switch(es) shall be lockable in the open position only. When locked in the open position, the switch may be unlocked by electric department operating personnel only. 3. The electric department will lock the switch(es) in the open position Imo under the following circumstance: a. If it is necessary for the protection of line crew personnel when working on de- energized circuits during an emergency; b. If the inspector of the alternative power source reveals a hazardous condition or a lack of proper maintenance; c. If the alternative power source interferes with other customers, other utilities, or with the operation of the electrical distribution system; d. If the electric department determines that the alternative power source has generated power from a non - qualified resource; or e. For general maintenance of the electrical distribution system. 4. The electric department will provide reasonable notice before locking the main disconnect switch open for general maintenance as provided in condition 3 above. 5. It shall be a misdemeanor, punishable by a fine of up to $500, to remove or tamper with a lock placed on the disconnect switch by the electric department. irr.. Page 17 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 I. Modification and expansion. 1. Any future modification or expansion of the alternative power source will require a separate engineering review and approval by the electric department and the applicable permits as specified in paragraph A above. 2. The city reserves the right, once the alternative power source is operating, to require the independent power producer, at the independent power producer's sole expense, to perform such corrections, modifications, and additions as are required or recommended by government or industry regulations and standards and necessary to continue safe operation and /or interconnection of the alternative power source to the electrical distribution system. The city will provide written documentation of the necessary changes required and the time frame allowed to complete them. If the independent power producer fails to comply with the changes in the specified time frame, the city will disconnect the alternative power source. J. Operation and maintenance of alternative power source. 1. The independent power producer assumes full responsibility for the routine maintenance and operation of the alternative power source and associated protective devices. The independent power producer shall, at all times, keep the alternative power source in good repair and operating condition. 2. The independent power producer shall maintain accurate records of all maintenance activities performed. These records shall record the date and time, the person(s) who performed the activities, and a brief description of the work. These records shall be submitted to the electric department for inspection annually on or before 30 September. Failure to comply may result in the disconnection of the alternative power source or additional testing at the independent power producer's expense. 3. The independent power producer is solely responsible for all costs associated with any subsequent or re- inspection of the alternative power source. The alternative power source will have a system's operations and maintenance manual readily available to electric department employees at all times. 4. To minimize interference, the alternative power source shall meet the power quality standards presented in accordance with Section 10, Recommended Practices for Individual Consumers of the latest IEEE Standard 519, "IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems." In addition, the alternative power source shall comply with the latest IEEE Standard 1547, "IEEE Standard Conformance Test Procedures for Equipment Interconnecting Distributed Resources with Electric Power Systems." Page 18 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 ir.. 5. The independent power producer shall comply with all environmental, land use, and other regulatory requirements. The independent power producer shall defend, indemnify, and hold harmless the city from and against any and all liabilities, claims, losses, damages, or expenses of any type or kind, including actual attorney fees and expert witness fees, which may be incurred or sustained by the city by reason of any act, omission, misconduct, negligence, or default on the part of the independent power producer arising in connection with or related to the independent power producer's ownership, installation, maintenance, or operation of the alternative power source. The independent power producer shall defend, indemnify, and hold harmless the city from and against any and all liability, claims, lawsuits, losses, damages, expenses, fines, penalties, citations, or infractions of any type or nature, including actual attorney fees and expert witness fees, which may be incurred or sustained due to the independent power producer's alleged violation of any permitting, land use, or environmental laws and regulations. In the event a claim is made which is subject to this subparagraph, the city reserves the right to select legal counsel and control the defense and settlement of any such claim. Such defense shall be at the sole expense of the independent power producer. The independent power producer's indemnification obligation shall not apply to liability for damages for bodily injury to persons or damage to property caused by the sole negligence of the city and not in any way attributable to any act or omission on the part of the independent power producer. K. Damage or interference with electrical distribution system or other customers. i`. 1. The alternative power source shall be designed to automatically disconnect and lockout when the city's electrical service is interrupted for any reason. Automatic reconnection of the alternative power source to the electrical distribution system shall be done only on Hot - Bus/Hot- Line /Sync- Check. An automatic reclose of the alternative power source breaker (or interrupting device) reconnection is permitted only after utility power has been restored for a minimum of five minutes. 2. The alternative power source interconnection with the electrical distribution system shall not cause any reduction in the quality and reliability of service provided to other customers. 3. The alternative power source shall generate no abnormal voltages or voltage fluctuations, and the harmonic content of the alternative power source output must be below that level which would cause interference with other customers' loads, other utilities, or the city's electrical distribution facilities and equipment. 4. The independent power producer shall, if the alternative power source or independent power producer's actions cause damage to the electrical distribution system, facilities, or equipment, be responsible for all costs associated with repairing damage and /or replacing the electrical distribution facilities or equipment. Page 19 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 5. The independent power producer shall be liable for all such damages, claims, and losses if the alternative power source and /or facilities cause injury, loss, or damage to other customers on the city's electrical distribution system in addition to their facilities. The independent power producer shall be required to carry liability insurance, with the City of Seward as a named insured, to protect against injury, damages, or losses suffered by the city or its customers caused by the alternative power source. 6. The electric department will disconnect the alternative power source from the electrical distribution system until the cause of damage to or interference with the electrical distribution system or any of its customers have been remedied to the electric department's satisfaction, and costs associated with the damage or interference caused by the alternative power source or independent power producer's actions are paid in full by independent power producer. 7. When using on -site fossil fuel generation, the alternative power source must be disconnected from the electrical distribution system. The independent power producer shall provide any equipment necessary to disconnect the alternative power source. L. Electricity consumption offset; billing and payments. 1. If the city supplied more power than the independent power producer during the monthly billing period, the customer will be billed for the net electric consumption at the rate established in the tariff. If the meter reading for power into the independent power producer's facility is higher than the meter reading for power out of the independent power producer's facility, the independent power producer will be billed for the net electric consumption at the rate established in the tariff. 2. If the customer produced more power than the city supplied during the billing period, the customer will receive a credit towards the next bill, provided the customer is in compliance with this chapter and is current on amounts owed to the city. If the meter reading for power out of the alternative power source is higher than the meter reading for power into the alternative power source, the independent power producer will receive a credit, on the next bill, equal to the difference between the two readings, at a rate as determined by the tariff. 3. Following disconnection, the city will bill for amounts owed or pay the independent power producer for any net credit. The independent power producer shall pay the reasonable costs of removal, relocation, modification, or renovation of any facilities or equipment required for interconnection with, or disconnection from, the electrical distribution system. M. Interruption of alternative power source energy deliveries. It is likely that the city will require alternative power sources to be disconnected from the electrical distribution Page 20 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 ir.. systems whenever the city is generating its own power. The electric department shall have the right at any time, without liability to the independent power producer or any other person, to interrupt, reduce, suspend, or curtail generation and /or deliveries of energy from the alternative power source: 1. When reasonably necessary, in order for the electric department to construct, install, maintain, repair, replace, remove, investigate, or inspect any equipment or any part of the electrical distribution system; or 2. If the electric department reasonably determines that interruption or reduction of deliveries or power is necessary because of a system emergency, a forced outage, Force Majeure, or other operational considerations. 14.15.420. Procedures and Application Process for Responding to Inquiries From an Independent Power Producer for an Alternative Power Source Greater Than 25KW. A. A request for interconnection of an alternative power source with a nameplate capacity of more than 25 KW may be subject to power sales agreements entered into by the city. The electric department shall notify the independent power producer regarding what information must be provided to enable the city to determine what additional agreement terms and conditions are appropriate given the specific circumstances of the proposed alternative fir•• power source. Such information may include the following: 1. Detailed description of the alternative power source; 2. Precise location of the alternative power source; 3. Nameplate electric generating capacity, net electric energy output, and plant factor of the alternative power source; 4. Minimum and maximum availability of firm capacity and /or energy from the alternative power source during daily and seasonal peak periods; 5. Projected date on which deliveries of capacity and /or energy would commence; 6. Plans for alternative power source construction and financing, and the acquisition of all necessary property rights, permits, authorizations, and fuel contracts; 7. Expected and demonstrated annual and seasonal reliability of the alternative power source; t .. 8. Periods of scheduled maintenance and outages; Page 21 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 j j 9. Plans for dispatch ability of the alternative power source; 10. If applicable, plans for acquiring access to adequate firm transmission services and the terms and conditions of such access; and 11. Any other information to assist the city in evaluating the circumstances and determining appropriate terms and conditions. B. After the independent power producer has satisfied all requirements provided for in subsection A above, and following any approval that may be required by an entity that has entered into a power sales agreement with the city, a power purchase agreement is subject to approval by city council resolution. 14.15.44330. - Fossil Fuel Standby Generation. The city will not permit the interconnection and operation of fossil fuel standby generation facilities, such as diesel or gasoline engine drive standby generators, with its integrated distribution system under any circumstances. Diesel or gasoline driven standby generators shall be connected to the customer's load only through a double -throw switch that will prevent parallel operation with the • ' . • . • - - -- electrical distribution system. When using on -site fossil fuel generation, the alternative power source must be disconnected from the electrical distribution system. The independent power producer shall provide any equipment necessary to disconnect the alternative power source. 14.15.42035. - Customer Liability. (a) Accidents. The customer shall be solely responsible for all accidents or injuries to persons or property caused by the operation of the customer's equipment, or by any failure of the customer to maintain his equipment in a satisfactory and/or safe operating condition, and shall indemnify, defend, and save harmless the city from any and all claims, suits, losses, or damages for injuries to persons or property, of whatsoever kind or nature, arising directly or indirectly out of the operation of such equipment or by the failure of the customer to maintain its equipment in satisfactory and /or safe operating condition. (b) Digging permits or utility locate requests. The customer is solely responsible for the safety and security of city equipment on the customer's property whether in or out of a utility easement. The customer shall complete a digging permit or utility locate request prior to any digging, drilling, driving into the ground, or any subterranean disturbance. If "locate required" is indicated on the form, the customer shall not disturb the ground until all indicated locates are complete. The customer or his contractor shall not use mechanized equipment within two feet of any located utility. Failure to follow this procedure will make the customer liable to a $500.00 fine plus Page 22 of 23 CITY OF SEWARD, ALASKA ORDINANCE 2012 -010 ,• any cost to repair the facility. Digging permits and utility locates are available free of charge upon request and will be done expeditiously. Section 3. This ordinance shall take effect ten days following its enactment. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12 day of November, 2012. THE CITY OF SEWARD, ALASKA WITHDRAWN David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) Page 23 of 23 Agenda Statement Meeting Date: August 27, 2012 C_ 4 Of stk. To: City Council V o Through: Jim Hunt, City Manager 'ataswP • From: John Foutz, Utility Manager Agenda Item: AMENDING TITLE 14 OF THE CITY'S CODE OF ORDINANCES TO PROVIDE FOR INTERCONNECTION OF RENEWABLE ENERGY SYSTEMS BACKGROUND & JUSTIFICATION: Renewable and alternative energy sources have become more affordable, prevalent, and feasible for private individual land owners and business owners. One local hurdle has been a lack of intertie with the City's electrical utility system. This ordinance will change title 14, specifically the electrical portion, to allow the City of Seward to connect these systems to its electric grid and, in turn, give the customers in the City of Seward's coverage area a chance to contribute to a greener energy power portfolio. Many of the other utilities in the State of Alaska have already established similar interconnect policies and procedures. The attached ordinance change is in response to the wishes voiced by the public wanting to install, connect and run small renewable generation systems. INTENT: To amend the City's Code of ordinance to safely allow the connection of renewable generation systems to the City of Seward's electric grid. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan : Sections 2.2 Economic Base, 3.1.1.2 Update 1 and expand infrastructure..., and 3.7.3.1 Continue to upgrade and X expand utilities to meet existing needs and encourage future development 2. Strategic Plan (document source here): X 3. Other (list): X FISCAL NOTE: Financial implications will be addressed in the tariff revisions. Approved by Finance Department: 14% ATTORNEY REVIEW: Yes X No p \0 RECOMMENDATION: Approve the amendments proposed to Title 14 in Ordinance 2012 -40.