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1998-046 Note Amended by Ordinance No. 98-093 Amended by Ordinance No, 99-210 ORDINANCE NO AN ORDINANCE AMENDING THE SCHEDULE OF ELECTRIC RATES CONTAINED IN ORDiNANCE NO 97-236 WHICH ADDS AN ENERGYSAVE PROGRAM SCHEDULE (EP) AND REPEALS AND REPLACES THE APPLIANCE REBATE SCHEDULE (APR), PROVIDING FOR A REPEALER, PROVIDING FOR A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAiNS SECTION I. That the Schedule of Rates for electric service as provided for in Chapter 26 of the Code of Ordmances, ~s amended to add the EnergySave Program Schedule (EP), whmh is attached hereto as Exhibit "A" and is incorporated herewith by reference, and to repeal and replace the Appliance Rebate Schedule (APR) T.~_~..TI.Q_I~[_~ That the Assistant City Manager/Utlhtles ~s hereby authorized to expend funds to issue rebates to qualifying electric utility customers ~n the form and type set forth in Schedule EP, as the use of high efficiency mr conditioners or heat pumps, as well as certain structural incentives to residential bmlders, is ~n the best interest of the City of Denton, as the use of same will reduce energy demand and consumption, thereby sawng Denton Mummpal Electric Utthty Customers money on their electric utility bills, wlule at the same t~me reducing the peak load of the City's electric system, whmh are pubhc purposes of the C~ty ~ That all ordinances or parts of ordinances ~n force when the provm~ons of th~s ordinance became effective which are ~nconmstent or ~n conflmt with the terms or provisions contained in Schedule EP hereby enacted by this ordinance, are hereby repealed to the extent of any such conflict SECTION IV. That if any section, subsection, paragraph, sentence, clause, phrase or word m this ordinance, or application thereof to any person or circumstances ~s held invalid by any court of competent jurisdiction, such holding shall not affect the vahdlty of the remaining pomons of this ordinance, and the City Cotmcd of the City of Denton, Texas, hereby declares ~t would have enacted such remalmng portions despite any such mvahdity ~ That the Schedule of Rate here~n adopted shall be effective, charged and applied to all energy usage oecumng on or after February 18, 1998, and a copy of smd rates shall be maintained on file in the Office of the City Secretary PASSED AND APPROVED thls the /~__~day of /~/~]r/~t ,1998 - v, ATTEST JENNIFER WALTERS, CITY SECRETARY HERBERT L PROUTY, CITY ATTORNEY S \Our Documents\Ordmances\98\EnergySave Program Ordinance2 doc EXHIBIT "A" SCHEDULE EP Zner~vSave Proormm (Effective 02-18-98) ADDllcation/Proqram Summary The City of Denton utility Department is offering cash payments to customers who purchase and install hmgh efflcmency air conditioners or heat pumps for new residentlal, existing resldentmal or commercial facmlltles This program, called "EnergySave", w~ll provide structure incentmves to resmdentmal builders for meetmng specific C~ty of Denton structure requirements Satisfying these construction requirements will improve a res~dentmal structure's operating efficiency Apartments and multiple unit residential structures will qualify if they meet the EnergySave Program Gumdellnes The EnergySave Program's ob]ect~ves are to reduce energy demand and consumption, thereby saving Denton Municipal Electrlc utility (DMUE) customer's dollars on their utility bxlls, reducing the peak load of the City of Denton's electric system and promote energy effmc~ent heating Proqram Guidelines I Qualmf~catlon Gu~delmnes for Equipment A All installations must be for accounts served by the City of Denton utility Department and must meet all applicable national, local, and manufacturers' codes and specifications B To qualify for equipment incentive, equipment must be new when Installed C Ail equipment must be purchased No leased or lease/purchased equipment w~ll qualify for a cash rebate D Installations must be made by licensed contractors and/or dealers E No rebate will be pa~d on a partial replacement of PAGE 3 an air condltzoner The compressor, condenser and the evaporator coil must be replaced to qualify for a rebate Payments for residentIal central cooling systems, which include apartments and mobzle homes, wzll be l~m~ted to a capacity based on a minimum of 600 conditioned square feet per ton The condltzoned area in square feet is requzred on each residential central system request for payment Any variance must be authorized on an ~nd~v~dual basis and approved by the City of Denton Electric utzlitles Marketing D~v~szon Incentives for new and retrofit equipment will be contributed to a purchaser or authorized home builder for qualifying equipment Incentives wzll be paid upon verlflcatlon of compliance with program guzdelznes Requests for payment must be received by the Director of Electric Utilities w~th~n 60 days of znstallat~on Equzpment and installation are subject to inspection by the C~ty's Bulldlng Inspection Department before final approval for payment Ks issued The EnergySave Program guzdel~nes and payments are subject to change w~thout not~ce The EnergySave Program may be discontinued without prior notzce at any t~me by the C~ty of Denton II Qualzf~catlon Guzdellnes for Structure Incentive A A residential structure incentive is offered to a builder, developer or authorized agent after the followlng qualifications are met 1 Builder, developer or authorized agent must be enrolled in the C~ty of Denton EnergySave Program (EnergySave) 2 Builder must znstall a 1 5 ton or above central air conditioner or heat pump having a PAGE 4 minimum efficiency rating of 12 SEER 3 Gas furnaces must be 90% efficient when coupled with conventional a~r-cond~t~oner/gas furnace systems 4 Install m~nlmum of R13 wall ~nsulatlon 5 Install minimum of R30 ceiling lnsulatlon 6 N~nety percent of the total square footage of exterior glass must be double-glazed (double pane) 7 Seal and weather-strip exterior doors and w~ndows Includes caulking exterior toe plates and wlrlng/plumblng penetrations through the structure's exterior walls and ceiling 8 Fireplaces or wood burning stoves must be vented in a manner that allows outside a~r to access the firebox B Structure Incentive for new homebu~lders must also comply wlth the respective restrictions set forth · n Gu~dellnes for E~ulDment Ouallflcatlons I GENERAL PROCEDURES A Application 1 Equlpment- An appllcatlon for equipment lncent~ve must be completed and sent to the Director of Electric Ut~lltles w~th~n 60 days of installation of new or replacement equIpment Partlclpatlng dealers have application forms and will complete these forms for the purchaser It ~s the purchaser's responsibility to see that the dealer completes the form and submits ~t to the D~rector of Electric utilities 2 Structure incentive- To qualify for residential structure incentives, PAGE 5 a builder/developer or authorized agent must be registered as an authorized City of Denton EnergySave Authorized Builder To become a recognized EnergySave builder, applicant must complete and submit a City of Denton EnergySave Builder Application form to the D~rector of utilitIes Applicant must also meet the requirements l~sted in the EnergySave Final Audit form l~stlng the described construction requirements B Inspections Installations of central a~r-condltlon~ng systems w~ll be inspected by the City's Building InspectIon Department and must be approved before rebates will be processed New structures will be randomly audited to insure adherence to the required energy efficient construction specifications C Payments to Participants 1. Equipment Retrofit (Existing residences) Cash payments will be made to the purchaser of the qualifying replacement equipment Participating retail equipment dealers w~ll receive a cash payment of $20 per unit for the sale of window units, central air conditIoning systems, or heat pumps to offset their cost for properly filling out the applications for purchasers of retrofit equIpment 2 New equipment and structure incentive Program participants are responsible for submitting the correct information The utility Department wmll not issue any additional payment unless the payment was incorrect due to a m~stake in processing by a City employee The twenty dollar ($20 00) payments to dealers will be made only if they supply the qualifying equipment to the customer or builder who is paying for the znstallatlon of the equipment Dealers and purchasers may be den~ed payment for PAGE 6 failure to follow program guidelines such as falling to supply correct square footage or SEER/EER figures, installing equipment which is not new, replacing part of a split system, or failure to fill out rebate forms properly Payments will be made to customers who purchase and install new qualifying equipment If a tenant purchases and installs qualifying equipment, the payment is made to the tenant If the owner of rental property purchases and installs qualifying equipment, the payment is made to the owner If the purchaser of a moblle or custom home selects and pays for a qualifying unit, the purchaser will receive the rebate II CENTRAL ELECTRIC AIR CONDITIONERS AND HEAT PUMPS A A new condensing unit with an inside evaporator coll will qualify if matched, as spec~fled, in the current issue of the ARI Directory of Certified Air Conditioners and Air Source Heat Pumps and the unit meets the minimum ratings as specified in the 1998 EnergySave Program If the unit is not in the current ARI Directory, the manufacturer's latest data approved for publication will be accepted If the unit is not in the current ARI Directory or data approved for publlcatlon, the average of the h~gh and low SEER/EER co~l only, not including blower co~l, will be accepted as l~sted in the current ARI Directory B Computer slmulat~ons may be used if ratings are not listed in the current ARI Directory, provided the following crlterla are met 1 Systems using mix-matched coils must meet all established program guidelines to qualify for a rebate 2 The computer s~mulatlons must be signed, certlfled, and dated by a registered profes- sional engineer and an officer of the company making the submittal PAGE 7 3 The engineer who certifies a simulation must attest to the accuracy of the input data, the validity of the calculation procedure used, and that the results are in accordance with Department of Energy approved methodology 4 A complete set of the input data and an In- dication of the source of the data must accompany the simulated ratings 5 The simulated ratings must be based on the condensing unit's tested combination as listed in the current ARI Directory or latest data approved for publication and identified by the correct model numbers of both the condensing unit and coil as listed in the current ARI Directory 6 SImulated ratings must not exceed 205% of the SEER rating of the tested system used as a base 7 An open file of computer s~mulatlons will be maintained at the Energy Management Office Supplying erroneous ratings or data can lead to disqualification of those involved from further program participation C Program Capacity and Payment Formula 1 The maximum allowable BTU per hour capacity eligible for a residential rebate is determined by d~vldlng the square footage of the air- conditioned area by 600 and multiplying by 12,000 Example The Program Capacity for an 1,800 square foot house is 1,800 = 3 0 x 12,000 = 36,000 BTUH 60O The City will pay a rebate on a unit that meets program efficiency standards and is sized at 36,000 BTUH or less PAGE 8 2 Actual payment will be determined by dividing the BTU~ of the installed unit (up to, and Including the Program Capacity) by 12,000 and multiplying by the incentive The incentive amounts and SEER ratings are refer- enced of the "1998 Ener9%;Save Program Methods Used in Determining Equipment Efficiency and Eligibility," and are incorporated here~n as if fully set forth at length Example A A person in a 2,100 square foot house Installs a 42,000 BTLS{ central air conditIoner with an SEER rating of 12 0 2,100= 3 5 × 12,000 = 42,000 Program Capacity 600 42,000 = 3 5 x $100/ton = $350 00 Incentive 12,000 Example B A person in a 2,400 square foot house installs a 60,000 BTU]{ central a~r conditioner with a SEER rating of 12 0 2,400 = 4 x 12,000 = 48,000 Program Capacity 60O 48,000 = 4 × $100/ton = $400 Incentive 12,000 Example C A person in a 2,400 square foot house installs a 60,000 BTU~ central heat pump with a SEER rating of 12 0 2,400 = 4 x 12,000 = 48,000 Program Capacity 600 48,000 = 4 × $150/ton = $600 IncentIve 12,000 PAGE 9 Minimum SEER/EER Centra1 Air Cond~tlonln~ Rat~nq Incentive SinGle Phase (SEER) 12 0 $100 ton*$ Three Phase (EER) 12 0 $100 ton S~nGle Phase (SEER) 14 0 $125 ton Three Phase (EER) 14 0 $125 ton Central Heat PumPs S~nGle Phase (SEER) 12 0 $150 ton Three Phase (EER) 12 0 $150 / ton SinGle Phase (SEER) 14 0 $175 / ton Three Phase (EER) 14 0 $175 / ton Room A~r Condltloners 10 0 $ 50 / unit Room Heat Pumps 10 0 $ 50 / unit Geothermal Heat Pumps 12 0 $500 / unlt (Waste heat reclamation device) $150 / unit * Refer to "1998 EnerGySave Program Methods Used in DetermlnlnG Equipment EffIciency and EliGibility" ~ For calculation purposes, one ton equals 12,000 BTU}{ PAGE 10