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HomeMy WebLinkAboutOrd2014-003Sponsored by: Hunt Introduction: May 12, 2014 Public Hearing: May 27, 2014 Postponed: June 9, 2014 Enacted June 9, 2014 CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 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 consistent with the Seward Zoning Code; 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: Strike = 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 customer -owned electrical generation fueled by renewable resources such as wind, solar, geothermal, biomass, or water (tidal or hydropower). An alternative power source does not include fossil fuel generation. Alternative power sources within the Seward Electric area are subject to Article 4 of this Title. 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 CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 2 of 21 r and development of real property and the construction of buildings and related improvements and their heirs, successors. 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 other place of disposal. Class of service. Means the type of service rendered by the city to a customer under a particular rate schedule. 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. CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 3 of 21 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. 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. Delivery point. Means the location where the city distribution system terminates and beyond which the customer assumes responsibility for construction and maintenance. 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. 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 CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 4 of 21 specifications, staking, right -of -way acquisition, and similar and related activities necessary to the technical planning and installation of electric distribution facilities. 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. 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. 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. Key box (curb valve, curb cock). Means the shut -off point for water service, which is the 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. CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 5 of 21 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. city. Public sewer. Means any sewer collection system operated by or under the authority of the 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. Receiving waters. Means those natural outlets into which sewage is discharged. Refuse. Means all garbage, rubbish, and waste material. CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 6 of 21 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. 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-,,er-(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. Sewage works. Means all facilities for collection, pumping, treating, and disposing of sewage. Sewer. Means a pipe or conduit for carrying sewage. CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 7 of 21 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. 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. 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. CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 8 of 21 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 Alternateive Tee tiel°o.. and Fossil Fnd Standby Power Source Generation Equipment 14.15.410. - Alternateive teehnolop, generation Power Source. (a) The city will permit the interconnection and operation of small (less than 25KW) alternateive tech elogy generatio power source facilities sueh sue as n stems or ^ll scale hydro ° leetr - ^ f cili °° with its integrated electrical distribution system upon compliance by the customer with the following provisions. (1) A customer who owns any alternate technology generation shall request approval from the city to interconnect with its system at least three months prior to the date on which the customer intends to make any connection in any way to the electric circuitry common to the city's integrated distribution system. (2) The customer shall submit to the city, along with his an application request for interconnection, complete documentation of alternate technology generation equipment including but not limited to: schematics; wiring diagrams; performance specifications; descriptions of energy storage devices, circuit protection equipment, regulation equipment, automatic disconnect equipment, and any other proprietary device provided by the equipment manufacturers. (3) Upon approval of the interconnection by the city, the customer shall agree under special contract with the city to pay the cost of any special metering equipment or circuit modifications determined by the city as necessary to accomplish the interconnection; to install power factor corrective equipment as necessary to maintain a power factor of not less than 0.9; to operate the generation equipment in strict compliance with safety procedures established by the city, and to accept the terms of purchase of energy or capacity or both as set forth in the contract. (b) The city reserves the right to refuse interconnection with altefna4e technology genefa4ion f4eilities alternative power sources or to limit the number of interconnections with— aitefaat° tech elog y generation f eilit es on any single CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 9 of 21 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 by the city, the city will provide the customer within three months of the initial request written notice of refusal, including a statement of the reason(s) for the refusal. (c) 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. (Ord 504, l M2) 14.15.415. Interconnection Requirements, Procedures, and Application Process for an Alternative Power Source Less Than 25KW. (a) Application. In order to proceed with interconnection of an alternative power source, the customer must complete an Application for a New /Rework of Electrical Service and an Interconnection Application. The customer shall also provide equipment specifications, protection arrangements, and design drawings to the city for review. (b) Compliance with codes and standards. Interconnections shall not be fueled by nor connected to any non - qualified alternative energy sources. Interconnection customers shall comply with all applicable local, state, and federal codes such as building codes, National Electric Code (NEC), and National Electrical Safety Code (NESC) for the installation of an interconnection. Once operating, the city reserves the right to require the customer, at the customer's expense, to provide corrections, modifications, or additions to the interconnection as required or recommended by government or industry regulations and standards. The city will provide written documentation of the necessary changes and a time frame to complete. If the customer fails to comply with the changes in the specified time frame, the city will open and lock the interconnection. (c) Placement of customer -owned interconnection. To maintain the existing city distribution system's power quality and reliability, only one interconnection per distribution transformer will be authorized. (d) Power quality and reliability. The interconnection with the electric system shall not cause any reduction in the quality and reliability of service provided to other city customers. There shall be no generation of abnormal voltages or voltage fluctuations, and the harmonic content of the interconnection output must be below that level which would cause interference with other customer loads, other utilities, or city facilities and equipment. CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 10 of 21 To minimize interference, the city requires the interconnection to meet the power quality standards presented in accordance with Section 10, Recommended Practices for Individual Consumers of the latest Institute of Electrical and Electronics Engineers (IEEE) Standard 519, IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems. In addition to meeting all requirements identified in this document, the interconnection shall comply with all city ordinances and resolutions, and latest IEEE 1547, IEEE Standard Conformance Test Procedures for Equipment Interconnecting Distributed Resources with Electric Power Systems. (e) Testing. Prior to initial energization of the interconnection, an inspection and tests will be performed by both the interconnecting customer and city personnel. The purpose of the inspection and testing will be to determine if the generator and related equipment of the interconnection 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. Based on the inspection, the city may elect to accept the installation and energize the interconnection. In the event that discrepancies are noted between the certified equipment and drawings previously provided to the city and the customer's system inspected by the city, retesting may be required. The customer shall be solely responsible for all costs associated with any retesting. (f) City inspection and customer maintenance records. The customer shall maintain the interconnection in good working order. The interconnection (i.e., generator and associated equipment) is subject to inspection and retesting by the city upon reasonable notice each year after the unit is placed in service. The customer will assume full responsibility for the routine maintenance of the interconnection and associated protective devices. The customer 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 made available to the city for inspection at all times upon reasonable notice to the customer. Failure to comply may result in the disconnection of the equipment or additional testing as outlined in subsection (e) above. The customer is solely responsible for all costs associated with any inspections and testing required. (g) Visible, lockable disconnect switch or electric break. An accessible, visible, lockable disconnect switch or electric break, whichever is applicable, is to be provided by the customer which is lockable in the open position only. This switch must be appropriately labeled, when locked in the open position for any CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 11 of 21 of the following conditions, may be unlocked only by city personnel. The city will lock the switch in the open position under the following circumstances: (1) If it is necessary for the protection of line crew personnel when working on de- energized circuits during a system emergency; (2) If inspection of the interconnection reveals a hazardous condition or a lack of proper maintenance; (3) If the interconnection interferes with other customers, other utilities, or with the operation of the city's distribution system; (4) If the city determines that the interconnection has generated power from a non - qualified alternative energy resource; or (5) For general maintenance of the city's distribution system. The city will provide at least five days' notice, unless the circumstances warrant shorter notice, before locking the switch open for general maintenance as provided in condition (v) above. (h) Metering /billing. The customer shall install and maintain a kilowatt -hour meter, or meters, at the interconnection, capable of registering the bi- directional flow of electricity at the point of interconnection at a level of accuracy that meets all applicable standards, regulations, statutes, and ordinances. The meter(s) may measure such parameters as time of delivery, power factor, voltage, and such other parameters as the city shall specify. The customer shall provide space for metering equipment as specified by the city with the location of the meter(s) to be approved by the city. The customer 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 interconnection. (i) Nominal voltages and phasing. The generator nameplate voltage must be the same as one of the nominal voltages supplied by the city. The nominal voltages are 120/240 V single - phase, 120 /208 V three - phase, and 277/480 V three - phase. If the generator nameplate voltage is different from the city's nominal voltages, the customer must supply a dedicated generator transformer that will provide the required nominal voltage. The required transformer connection, unless otherwise specified, is grounded wye- grounded wye. (j) Fault current increase and upgrading equipment. In general, installation of a new generator will increase the fault current level at the customer's electrical facility. This may require upgrading some of the customer's equipment. The CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 12 of 21 customer will assume full responsibility of upgrading customer's own equipment. (k) Starting as induction motor. In general, induction generators start as motors; also, synchronous generators may be designed to start as motors. The customer - owned generator starting as a motor shall meet the motor starting requirements prescribed by the city. The city may require the customer to provide, at customer's own expense, special or additional starting equipment. (1) Generatingfacility grounding. There are additional safety concerns that shall be addressed when considering circuit grounding of the interconnection interconnected to the city's utility system. To ensure proper grounding of the generating facility, the customer shall follow all applicable national, state, and local codes regarding grounding for applicable generating installations. (m) Synchronization. The interconnection must be synchronized with the city's utility system at all times and the customer shall be responsible for the cost and maintenance of all synchronization equipment. (n) Automatic disconnection, manual reset and authorized reconnection. The interconnection shall be designed to automatically disconnect and lockout when the city's service is interrupted for any reason. The device shall have a manual reset. Reconnection of the interconnection to the city's utility system shall be done only on Hot - Bus /Hot - Line /Sync- Check. Following verbal authorization by the electric manager or the electric manager's designee, reclose of the interconnection breaker (or interrupting device) is permitted. (o) Single phasing protection. The customer is advised that a phase - unbalance disturbance on the city's utility system can result in overheating of the interconnection. A negative- sequence -type relay (current or voltage) could be necessary to initiate tripping under phase - unbalance conditions and may also be used to block closing of the automatic disconnecting device if the city's utility system is single - phased. (p) Generating facility protection. The customer is fully responsible for the protection of the generator and all of its associated equipment. Protection should be provided for the customer's own equipment failures, faults, and other disturbances on the city's utility system. (q) Fault Detection and Automatic Isolation. To prevent an interconnection from supplying current to a fault on the city's utility system, the interconnection shall CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 13 of 21 be equipped to provide isolation from the city's utility system for any fault occurring on the city's utility system. The automatic isolation shall be done prior to the city's breaker (or recloser) reclosing and within a reasonable period of time, typically less than two seconds (120 cycles). The customer is solely responsible for all costs associated with the purchase, installation, and maintenance of all equipment required by the city in order to properly isolate the interconnection from the city's utility system for any fault occurring on the city system. (r) Under /over voltage relay. To prevent any hazardous operating conditions, the interconnection shall be isolated from the city's utility 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). The customer is solely responsible for all costs associated with the purchase, installation, and maintenance of all equipment required by the city in order to properly isolate the interconnection from the city's utility system for any voltage level described above. (s) Under /overfrequency relay. To prevent any hazardous operating conditions, the interconnection shall be capable of disconnecting the customer's generation source from the city's utility system for any over - frequency and under - frequency conditions exceeding 60.5 Hz or below 59.5 Hz within 50 milliseconds (6 cycles). The customer is solely responsible for all costs associated with the purchase, installation, and maintenance of all equipment required by the city in order to properly isolate the interconnection from the city's utility system for any frequency deviation described above. (t) Dedicated distribution transformer. To ensure reliable service to other city customers and to minimize all possible problems for other city customers, the interconnection shall be interconnected to the city utility system through a dedicated -to- single- customer distribution individual transformer. This requirement may be waived by the electric department through written authorization when it deems it appropriate under the circumstances. Any cost associated to achieve dedicated -to- single- customer service shall be the customer's sole expense. (u) Single-phase generating facility on three-phase distribution transformer. A customer -owned single -phase generating facility IOKW or greater shall not be allowed to be connected to a city three -phase distribution transformer. (v) Surge protection. The customer is responsible for the protection of customer's interconnection from transient surges initiated by lighting, switching, or other system disturbances. CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 14 of 21 (w) Future modification or expansion. Any future modification or expansion of the interconnection will require a separate review and approval by the city. (x) Reservation of Rights. The city reserves the right to require additional interconnection requirements for interconnection of alternative power source generating facilities in order to preserve the safety and integrity of the city's utility system. (y) Interruption of alternative power source energy deliveries. It is likely that the city will require alternative power sources to be disconnected from the city's electrical distribution system whenever the city is generating its own power. The electric department shall have the right at any time, without liability to the customer or any other person, to interrupt 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. 14.15.416. - Electricity Consumption Offset; Billing and Payments. (a) All energy a customer receives from the city is purchased by the customer at the applicable rate found in the tariff. When a customer's interconnection delivers energy to the city, the customer's credit is as documented in the tariff. (b) If the city supplied more power than the customer 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 customer's facility is higher than the meter reading for power out of the customer's facility, the customer will be billed for the net electric consumption at the rate established in the tariff. (c) If the customer produced more power than the city supplied during the billing period, the customer will receive a credit, 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 customer will CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 15 of 21 receive a credit equal to the difference between the two readings, in the manner and at a rate as determined by the tariff. (d) Following disconnection, the city will bill for amounts owed or pay the customer for any net credit. The customer shall pay the reasonable costs of removal, relocation, modification, or renovation of any facilities or equipment required for interconnection with, or disconnection from, the city's electrical distribution system. 14.15.417. - Appeal Procedures. (a) Appeals to the City Manager. Any person or persons aggrieved by an action or determination taken under this chapter may appeal said action or determination to the City Manager within 10 days of the action or determination being appealed. (1) Appeals to the City Manager under this chapter will be in writing and contain at least the following: i. The name and address of the appellant; ii. A description of the action or determination from which the appeal is sought; and iii. The reason for the appeal which must show a misapplication of law or fact. (2) The City Manager shall issue a written decision within 30 days. (b) Appeals to the Planning and Zoning Commission. Appeals of a decision of the City Manager will be heard by the Planning and Zoning Commission. An appeal of the decision of the City Manager must be filed within 10 days of the action or determination by the City Manager. (1) An Application to appeal to the Planning and Zoning Commission shall be filed with the City Clerk, shall be in writing, and shall contain, but is not limited to, the following information: i. The name and address of the appellant; ii. A description of the action or determination from which the appeal is sought; CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 16 of 21 iii. The reason for the appeal which must show a misapplication of law or fact; and iv. An application appealing actions and determinations of the City Manager shall be accompanied by a filing fee as set by resolution of the Council. (2) Upon receipt of the written appeal from the a decision of the City Manager, the Clerk shall schedule the matter for public hearing at a regular commission meeting, to be held within 30 calendar days of receipt of the appeal. The clerk shall notify the appellant in writing of the public hearing date not less than 15 days prior to the appeal hearing. i. The Clerk shall provide copies of the appeal to the Commission and the City Manager. The City Manager or designee shall prepare a written report of the events which preceded the appellant's filing. The City Manager shall attach to their report copies of all applications, denials, correspondence, or other writings relating to the matter being appealed. An appellant may file a written statement summarizing the facts and setting forth pertinent points and authorities in support of the points contained in the notice of appeal if such statement is filed not less than 7 days prior to the date set for the appeal hearing. The administration and any interested party wishing to file a written statement in rebuttal to the appeal may do so if such statement is filed not less than 2 days prior to the appeal hearing date. ii. It is the burden of the appellant to submit such evidence in support of his appeal, as may be necessary to enable the commission to reach a decision. Upon a showing of good cause, the commission may continue the hearing for presentation of such information; provided, however, that the Commission shall render a decision of the appeal within 40 calendar days of its filing. (c) Appeals to Board of Adjustment. A party aggrieved by the decision of the Planning and Zoning Commission under this chapter may appeal such decision to the City Council sitting as a Board of Adjustment within 10 days of the action or determination being appealed. Computation of the time period for filing an appeal shall commence with the date on which the action or determination by the Commission is mailed or delivered to the parties involved. Any decision not appealed within these time limits shall become final. CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 17 of 21 (1) An Application to appeal to the Board of Adjustment shall be filed with the City Clerk, shall be in writing, and shall contain, but is not limited to, the following information: i. The name and address of the appellant; ii. A description of the action or determination from which the appeal is sought; iii. The reason for the appeal which must show a misapplication of law or fact by the Seward Planning and Zoning Commission; and iv. An application appealing actions and determinations of the Seward Planning and Zoning Commission shall be accompanied by a filing fee as set by resolution of the Board. (2) Upon receipt of the written appeal from the a decision of the Commission, the clerk shall schedule the matter for public hearing at a special session of the City Council sitting as the Board of Adjustment, to be held within 30 calendar days of receipt of the appeal. The clerk shall notify the appellant in writing of the public hearing date not less than 15 days prior to the appeal hearing. (3) An appeal hearing conducted by Board shall be on the basis of the record established before the commission and the record on appeal. The Board hearing an appeal may allow for oral presentations by the administration and the appellant. A time limit may be established for said presentations. i. The record of appeal shall be prepared by the City Clerk and provided to the hearing agency not less than 5 days prior to the hearing, and shall consist of the following: ii. A verbatim transcript of the prior proceedings from which the appeal has been taken, if those proceedings were taped or otherwise recorded, or if the proceedings were not recorded, copies of any approved minutes, summaries or other records of the proceedings; iii. Copies of all memoranda, exhibits, correspondence, recommendations, analyses, maps, drawings, and other documents or exhibits submitted prior to the decision from which ,,,, the appeal is taken; CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 18 of 21 iv. A copy of all prior written actions, determinations and decisions, including findings and conclusions; V. A list of the names and addresses of all persons appearing as witnesses at prior hearings; and vi. Any written statements. (4) The record of appeal shall be made available for public inspection in the Clerk's office not less than 5 days prior to the hearing date. (5) The Council sitting as the Board of Adjustment shall either affirm or reverse the Commission's ruling, in whole or in part, or remand the matter to the Planning and Zoning Commission for further findings. The Council may vote to reverse, in whole or in part, only if it finds the appellant has proven the following: i. The relief sought will not result in a violation of any applicable federal or state regulation; ii. The relief sought is in harmony with established City codes, policies, and procedures; iii. Will not cause a reduction in the quality and reliability of service provided to other customers; iv. Will not be harmful or hazardous to the utility system, employees, or customers; and V. Will not significantly increase the cost of operations of the utility public service agencies. A decision may be made subject to the appellant's compliance with terms and conditions deemed necessary by the Council. (6) In rendering its decision, the Board shall issue written findings of fact and conclusions of law within 60 days of decision. The Board's decision at that time shall be final. The appellant may appeal the decision to the superior court if such appeal is filed within 30 days of the decision. (7) The City Clerk shall provide the appellant written notification of Board's decision within 10 days of the decision. 14.15.420. - Procedures and Application Process for Responding to Inquiries From a Customer for an Alternative Power Source Greater Than 25KW. CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 19 of 21 (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 customer 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 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; (8) Periods of scheduled maintenance and outages; (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 customer 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. CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 20 of 21 14.15.44-530. - 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 eit distr;butio„ system electrical distribution system. When using on -site fossil fuel generation, the alternative power source must be disconnected from the electrical distribution system. The customer 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 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 (10) days following its enactment. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 91h day of June, 2014. THE CITY OF SEWARD, ALASKA , , /3)� can Bardarson, Mayor CITY OF SEWARD, ALASKA ORDINANCE 2014 -003 Page 21 of 21 AYES: NOES: ABSENT: ABSTAIN ATTEST: Casagranda, Squires, Butts, Darling, Bardarson None Keil, Terry None (City Seal) f • v Council Agenda Statement Meeting Date: May 12, 2014 To: Seward City Council From: John Foutz through Jim Hunt Agenda Item: Ordinance Amending Title 14 of the Seward City Code to Provide for Interconnection of Small Renewable Energy Sources to the City's Electrical 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. This ordinance is designed to meet several goals. The ordinance includes safeguards to prevent the connection of small renewable energy sources from damaging the electrical system and the customer's equipment or negative effects to other electric customers. The ordinance limits the interconnection to small power sources with nameplate capacity of 25kW or less and sets forth an application procedure to ensure that the customer's needs are met, as well as the needs of the City and the City's other electrical customers. An appeal procedure is allowed, consistent with the appeal procedures in the Seward Zoning Code. The ordinance authorizes the Seward Planning & Zoning Commission to hear and decide appeals of an application which is denied interconnection. The Seward Planning & Zoning Commission is also authorized to hear appeals from applicants who may be denied based on zoning concerns. By having the Seward Planning & Zoning Commission address all appeals, the intent is to streamline all appeals for a potential applicant, providing better service to customers of the City. The ordinance allows for a net credit and a rate for excess energy produced by the customer while connected with the City's electrical system. The credit methodology will be determined by the City Council in the electric tariff. One goal is to provide credit earned by the customer in a manner that can be implemented by the Finance Department. INTENT: The intent of this ordinance 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 small generation systems, and will allow interconnection in a manner that will protect the safety of all individuals and the integrity of the City's electrical system, as well as the interests of other electrical customers. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan ( 1. 3, 3. 7. 3. 1, 3. 7. 3. 2): Continue to upgrade and expand utilities to meet existing needs and encourage future 1 development. Expand customer base within the Seward Electric Utility X 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 estimate the financial impact of this action due to a number of unknown variables (e.g. i, the number of potential connections is unknown and it is impossible to estimate how much power each will produce.) However, in 2013, the City provided $3,146.33 in alternative energy credits Approved by Finance Department: ku"� t&� ATTORNEY REVIEW: Yes X No RECOMMENDATION: City Council approve Ordinance 2014- 005 amending Title 14 to allow interconnection of renewable energy sources of less than 25kW.