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Home My WebLink About1982-043101L (7L) NO AN ORDINANCE AMENDING CHAPTER 25, ARTICLE VI OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, 1966, AS AMENDED BY ADDING THERETO NEW SECTIONS 25-96 THROUGH 25-101, ESTABLISHING THE POLICIES RELATING TO INTERCONNECTIONS OF THE ELECTRIC SYSTEM OF THE CITY OF DENTON WITH COGENERATION AND SMALL POWER PRODUCTION FACILITIES, PRESCRIBING DEFINITIONS AND POLICIES RELATING TO INTERCONNECTIONS WITH QUALIFYING FACILITIES, RATES FOR SALES OF ELECTRIC ENERGY TO QUALIFYING FACILITIES, AND RATES FOR PURCHASES OF ELECTRIC ENERGY FROM QUALIFYING FACILITIES, AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS PART I That Chapter 25, Article VI "Private Utility Franchise Regulations" of the Code of Oridnances of the City of Denton, Texas, as amended, 1966, is further amended by adding thereto new Sections 25-96 through and including Section 25-101 which shall read as follows GENERAL PROVISIONS SECTION 25-96 PURPOSE In order to comply with Sections 201 and 210 of the Public Utility Regulatory Policies Act of 1978 and with the rules and requlations of the Federal Energy Regulatory Commission pertaining thereto, the following policies relating to interconnections of the electric system of the City of Denton, Texas, with cogeneration and small power production facilities, rates for sales of electric energy to such facilities, and rates for purchases of electric energy from such facilities are hereby established SECTION 25-97 SCOPE The Public Utility Regulatory Policies Act (PURPA), as supplemented by the Federal Energy Regulatory Commission (FERC) Order #69, issued February 19, 1980, encourages cogeneration in small power production Cogeneration is the production of electric energy as well as steam or other forms of useful energy, i e , heat, which are used for industrial/commercial heating and/or cooling purposes Small power production is a facility with less than 80,000 kilowatts of installed capacity which produces electricity from such primary energy sources as bio-mass, waste, and renewable resources, including wind, solar, geothermal or hydroelectric energy The City of Denton Department of Utilities is required by PURPA and FERC guidelines to interconnect with, operate in parallel with, purchase electricity from, and sell electricity to customers with qualified facilities These guidelines make it clear that the City's customers are to be no worse off by addition of cogenerator and small power producers It means that they will not see a higher cost of electricity, the City will not be required to make additional investments, and the quality of service will not be lowered SECTION 25-98 DEFINITIONS Unless the context specifically indicates otherwise, the meaning of terms used in this Ordinance shall be as follows (]) "COGENERATION FACILITY" shall mean a facility which produces electric energy and steam or other forms of useful energy (such as heat) which are used for industrial, commercial, heating, or cooling purposes (2) "QUALIFYING COGENERATION FACILITY" shall mean a cogeneration facility that meets the requirements of the Federal Energy Regulatory Commission regarding ownership, fuel use, and operating and efficiency standards (3) "SMALL POWER PRODUCTION FACILITY" shall mean a facility which produces electric energy solely by the use, as a primary energy source, of biomass, waste, renewable resources, or any combination thereof totaling not greater than eighty (80) megawatts at one site (4) "QUALIFYING SMALL POWER PRODUCTION FACILITY" shall mean a small power production facility that meets the requirements of the Federal Energy Regulatory Commission regarding ownership, fuel use, fuel efficiency, and reliability (5) "INTERCONNECTION COSTS" shall mean the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions, and administrative costs incurred by the electric utility directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations with a qualifying facility, to the extent such costs are in excess of the corresponding costs which the electric utility would have incurred if it had not engaged in interconnected operations, but instead generated an equivalent amount of electric energy itself or purchased an equivalent amount of electric energy or capacity from other sources (Interconnection costs do not include any costs involved in the calculation of avoided costs ) (6) "AVOIDED COSTS" shall mean the incremental costs to an electric utility of electric energy or capacity or both which, but for the purchase from qualifying facilities, such utility would generate itself or purchase from another source SECTION 25-99 INTERCONNECTIONS WITH QUALIFYING FACILITIES (1) Qualifying facilities desiring to interconnect with the electric system of the City of Denton shall make application to the Department of Utilities for such interconnection Applicants shall use such forms as are prescribed by the City of Denton and shall furnish all information requested (2) The City of Denton shall establish reasonable standards to be met by qualifying facilities to ensure system safety and reliability of interconnected operations Such standards may include but shall not be limited to the following areas power factor, voltage regulation, fault, overcurrent, and over-under voltage protection, harmonics, synchronization, and isolation (3) Interconnection costs associated with the inter- connection with a qualifying facility shall be paid for by such qualifying facility Qualifying facilities shall be required to execute contractual agreements with the City of Denton before any interconnection is established SECTION 25-100 RATES FOR SALES OF ELECTRIC ENERGY TO QUALIFYING FACILITIES Rates for sales of electric energy to qualifying facilities shall be those current standard rates adopted from time to time by ordinance or resolution of the Mayor and City Council which apply to other customers of the utility in the same classification(s) of electric service SECTION 25-101 RATES FOR PURCHASES OF ELECTRIC ENERGY FROM QUALIFYING FACILITIFS (]) Rates for purchases of electric energy from qualifying facilities shall be established by ordinance or resolution of the Mayor and City Council (2) Such rates shall be lust and reasonable to the electric consumer of the utility and in the public interest, shall not discriminate against qualifying cogeneration and small power production facilities, and shall be related to avoided costs, however, in no case is the utility required to pay more than the avoided costs (3) Standard rates shall be established for purchases from qualifying facilities with a design capacity of 100 kilowatts or less Rates for purchases from qualifying facilities with a design capacity over 100 kilowatts may be standard rates or may be by individual contracts, the terms of which are fair and reasonable PART II That if any section, subsection, paragraph, sentence, clause, phrase or word in this Ordinance, or application thereof to any person or circumstances is held invalid by any court of competent 3urisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity PART III That this ordinance shall be and become effective from and after its adoption PASSED AND APPROVED this day of May, 1982 C , TEWAR , MAXOR CITY1OF DENTON, TEXAS ATTEST CHAR06TTRtAMEN, CITY SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM C J TAYLOR, JR , CITY ATTORNEY CITY OF DENTON, TEXAS BY