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HomeMy WebLinkAboutRes2014-047 4111•111■11•10 Sponsored by: Hunt CITY OF SEWARD, ALASKA 6.• RESOLUTION 2014-047 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, MODIFYING THE ELECTRIC TARIFF TO ADD LANGUAGE FOR NET METERED CUSTOMERS TO RECEIVE COMPENSATION FOR PRODUCING ENERGY WHEREAS, the City of Seward promotes the use of renewable energy; and WHEREAS, the interconnection of alternative energy to the City's electric distribution system should be allowed, provided that the renewable generation sources do not adversely affect the City's system, can be done safely and can be delivered without any negative effects to other electric customers; and WHEREAS, the modification to the electric tariff would allow for the City to reimburse customers who generate renewable energy into the distribution system; and WHEREAS, Seward City Code § 14.15.410 is being modified to allow the connection and net metering of renewable energy; and WHEREAS, a customer who generates renewable will receive net metered compensation per month up to the total kilowatt hours supplied by the City; and WHEREAS, a customer who generates renewable will receive the non-firm avoided cost rate per month for excess power into the City's electric grid; and WHEREAS, the non-firm avoided cost rate is the industry standard for compensation to the customer for the purchase of excess power. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Seward City Council hereby finds that it is in the public interest to modify the electric tariff to calculate the net effect of power by the utility into a customer's service less the power produced by the customer. Section 2. The Seward City Council hereby finds that it is in the public interest to modify the electric tariff to credit back to customers that interconnect renewable energy by a rate calculation known as the non-firm avoided cost for the excess energy placed into the City's distribution system. Section 3. The City Manager is hereby authorized to change the Electric Rates & Charges 2014 tariff to add the following under "Definitions and Miscellaneous Charges": MINIIMMEMNI■ CITY OF SEWARD, ALASKA RESOLUTION 2014-047 "Alternative Power Rebate: kWh generated by an alternative power source will be deducted from the kWh supplied by the City of Seward distribution system on a per month basis. Any excess energy generated and placed onto the City's distribution system will be credited at the non-firm avoided cost rate established by the Regulatory Commission of Alaska." Section 4. This resolution shall take effect ten days after adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27th day of May, 2014. THE CITY OF SEWARD, ALASKA ,12/1/ ean Bardarson, Mayor AYES: Keil, Casagranda, Terry, Butts, Darling, Bardarson NOES: None ABSENT: Squires ABSTAIN: None ATTEST: 4 Johanna K, - , CMC Jity Clerk (City Seal) sc R ■6*:1 OF 4 . /so : . tlo re 1; • ( SEAT • ■■••■■••• • •• ftP * "M ft r"" • -1, s4 • • 4 c ''• te OF ■ '' Agenda Statement e 4 of Sess.. Meeting Date: May 27, 2014 To: Seward City Council /H.w4tAstt. Through: Jim Hunt, City Manager From: John Foutz, Electric Utility Manager Agenda Item: Amend the Electric Utility Tariff to allow for reimbursement of small renewable energy sources 25kw or less to the City's electric distribution system. BACKGROUND&JUSTIFICATION: The ordinance presented at this meeting would allow for small alternative, renewable energy facilities to safely connect to the City's electrical system. The tariff requires updating to reflect the new ordinance. The revised electric tariff establishes a mechanism to pay customers who produce energy, and feed into the City's electric utility grid, a reasonable rate. Although not regulated by the Regulatory Commission of Alaska("RCA"),the City has chosen to mimic the net metering regulations recently established by the RCA. If the City of Seward supplies more electric energy to a net metering customer during the month than the customer supplies to the utility, then the City will bill the customer for the number of kilowatt hours of net energy used. If a customer supplies more electric energy to the City than the utility supplies to the customer, then the City will credit the customer's account. The rate of return, referred to as the avoided cost, will be credited to customers who generate more energy than consumed. The size of the customers systems is limited to 25 kilowatts, which is the same limit set by Homer Electric. The title 14 ordinance limits the number of interconnections per substation circuit and potential customers will be considered on a first come,first serve basis. The City has an amendment in place to the power purchase agreement with Chugach electric to allow systems over 25 kilowatts up to a total of 300 kilowatts to sell power to Chugach electric at their avoided cost rate. INTENT: The purpose of Resolution 2014-047 is to allow interconnection of small alternative energy sources with the City's electrical system in a manner that will allow potential credit to the owner of the small generating system. The Ordinance was introduced on May 12, 2014 and the Resolution and Ordinance are scheduled for adoption on May 27, 2014. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan ( 1. 3, 3. 7. 3. 1, 3. 7. 3. 2): Continue to upgrade 1 and expand utilities to meet existing needs and encourage future . X development. Expand customer base within the Seward Electric Utility area as a means to reduce energy costs and improve services. 2 Strategic Plan:The mission of the City of Seward government it is to . X provide quality leadership and economic wellbeing of its citizens 3. Other (list): X FISCAL NOTE: It is not possible to calculate the financial effects on the electric utility because of too many unknown variables. It is not known how many connections will be requested and how much power they will produce. Approved by Finance Department: JGtGb-c-,,e ATTORNEY REVIEW: Yes X No RECOMMENDATION: Approve Resolution 2014-047,making the corresponding changes to the Electrical Tariff to allow compensation to net metered customers for interconnection of renewable energy sources of less than 25kW.