2017-248ORDINANCE NO. �� � ��"���
AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER, OR
DESIGNEE, TO EXECUTE AGREEMENTS FOR INTERCONNECTION AND PARALLEL
OPERATION OF DISTRIBUTED GENER.ATION AS NEEDED; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Denton encourages the use of renewable energy generation
sources by residential and commercial electric utility customers which include, but is not limited
to, solar panels and wind turbines, which are commonly referred in the industry "distributed
generation resources";
WHEREAS, the Code of Ordinances of the City of Denton require its electric utility
customers who desire to interconnect distributed generation resources to the City's electric
system to apply for interconnection;
WHEREAS, the City has developed the attached Agreement for Interconnection and
Parallel Operation of Distributed Generation and requires electric utility customers to execute
this agreement as part of the application for interconnection;
WHEREAS, the Agreement for Interconnection and Parallel Operation of Distributed
Generation sets forth the obligations of both the electric utility customer and the City related to
the electric utility customer's distributed generation resources;
WHEREAS, because of the increased volume of City electric utility customeis desiring
to use alternative energy generation sources, it is a best customer service practice and
organizationally efficient for the Agreement for Interconnection and Parallel Operation of
Distributed Generation to be executed administratively by the City Manager, or his designee;
WHEREAS, the City Council finds it is in the public interest for the Agreement for
Interconnection and Parallel Operation of Distributed Generation to be executed administratively
by the City Manager, or his designee; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this Ordinance
are incorporated herein by reference.
SECTION 2. The attached Agreement for Interconnection and Parallel Operation of
Distributed Generation is approved for use by the City.
SECTION 3. The City Manager, or his designee, is authorized to execute the approved
Agreement for Interconnection and Parallel Operation of Distributed Generation, or modified
agreement after approval by the City Attorney, as needed without further authority, guidance, or
direction from the Council, and is further authorized to carry out the rights and duties of the City
under the said agreement.
Page 1
SECTION 4. This Ordinance shall become effective immediately upon its passage and
approval. .
PASSED AND APPROVED this the ...............�.0� �" day of, ��Q p�mm��^, 2017,
� �� � �,�
�w.�
CHRIS WA��""9�'�a �^��YOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
I�
�r'��.Cl'V'�L) AS TO LEGAL FORM:
AARON LEAL, INTERIM CITY
ATTORNEY
BY: � ��
1'
� � �
AGREEMENT FOR INTERCONNECTION AND PARALLEL OPERATION OF
IS + I
T IS INTE C NN C I N A E� NT (66Agreement"} is made and entered into this
daY c�i �y _�_�_� 20_, by the City of Denton, with its electric utility department
operating an electric system, referred to for Public Utility Commission of Texas and ERCOT purposes as
DENTON MUNICIPAL ELECTRIC ("DME"} and
.�. � ....� ...,,. �
"CLisi���r"}, � m _ a[specify the name of any
entity, rf any; the type of entit� �� �
y, if any; and the address of any entity] hereafter sometimes referred to
individually as "Party" or both parties sometirnes referred to collectively as the "Parties,"
E EAS, DME desires to permit electric custorners having electric generating facilities located
within the City limits of Denton, Texas, to af'fset a part of their electrical requirements by utilization of
customer's electi°ic power° generation facil►ties or to produce energy foi• sale on the DME electric utility
system or in accordance with the City's Electric Rate Schedule DGR or ancillary contract; and
WHER�AS, Customer desires to interconnect the electric generating facilities to the City's
Electric Utility System; and
WHEREAS, Customer has campleted and submitted the Applicatian for Interconnection and
Parallel Operation of Distributed Generation with the City's Electric Utility System to the City, which is
incarporated herein as Exhibit A, and the City has conducted its pre-interconnection studies to determine
whether the City can make available and Customer is qualified to enter into such an arrangement for such
distributed energy resource interconnection with the City's Electric Utility System; and
AS, both the City and Customer desire to enter into this Agreement, under the terms,
conditions, and subject to the limitations set forth below,
N T� EF , in consideration of the premises and the mutual covenants set forth herein,
the City and Customer hereby AGREE as follows:
1. �w��;,�,pg�� �:�1�` J�������,p��9�wt'�'i;, City shall permit Customer to interconnect and operate an electric
generating facility, an Customer's premises, in parallel with the City's Electric Utility System in accardance
with the terms ofthis Agreement. PROVIDED HOWEVER, that this Agreement is applicable to conditions
under which the City and the Customer agree that one or more generatrng facility or facilities operating less
than 60 kilovolts (kV} ("Facility" or "Facilities"} may be interconnected to the City's Electric Utility
System AND Customer provides the City with generation data either through web linlc access or monthly
reports.
2. Definitions.
a. "Agreement" shall mean the "Agreement for Interconnection and Parallel Operation of Distributed
Generation."
b. "Customer" shall mean an entity interconnecting a Power Producing Facility to the City's Electric
Utility System.
Agreement for Tnterconnection and Parallel Operation af Distributed Generation Page I 1 of 8
c, "General Manager" shall mean the General Manager of Denton Municipal Blectric, or their
designee.
d. "Electric Utzlity System" shall mean all generation, transmission and distribution facilities owned
or used by the City in connection with its delivery of electric energy to the City's electric utility
customers.
e. "Points of Interconnection" shall mean the point at which the PPF physically ties ta the Electric
Utility System as is more fully described in Exhibit A, attached hereto and incorporated herewith.
f. "Power Producing Facility" or "PPF" shall mean an electric generating facility, operating less than
60 kilavolts, which will be interconnected and operated in parallel with the City's Electric Utility
System. This shall include any and all related equipment necessary, as determined by the City, for
the safe operation and interconnection of the electric generating facilities to the Blectric Utility
System.
g. 66PPFID" shall mean the identification number ass►gned by the City to a Power Producing Facility.
h. "PUC" shall mean the Public Utility Commission of Texas, ar any successor agency,
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c. PPF Rating:
Site Address:
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a. Energy transferred from the I'PF to the Electric Utiility System under this Agreement shall be
deemed delivered at the City's selected metering poini on the pr�mises identified in Section 3
above.
Agreement for Interconnection and Parallel Operation of Distributed Generation Page I 2 of 8
b. It rs expressly understood and agreed by the parties hereto that the interconnection and manitoring
of electric flow cantemplated by this Agreement shall be accomplished by appropriate metering
facilities awned and installed by the City. The PPF shall be responsible for all expenses associated
with the purchase and installatian of specialized metering facilities, including but not limited to
dual metering arrangements and/or bi-directional meters.
6. Testin ag nd Ap-��t��^��G ��t I�ac�u9p„��,y„�,.
a. The Customer sliall install and maintain protective devices for the PPF as required by the City's
Electric Utility Engineering. The protective devices shall be tested and approved by the City's
Electric Utility Engineering prior to commencing parallel operations with the Electric Utility
Systern. Further testing of the protective devices shall be conducted any time t11at modifications
are made to the PPF. The City shall have tlle right to have representatives present at any testing of
the PPF's protective devices. Customer shall notify the General Manager at least fve (5) days prior
tc� the testing af the PPF's pratective devices.
b, The PPP shall not comrnence parallel operatians with the City until written approval of the
interconnection facilities has been granted by the General Manager of the City's electric utility.
Such approval shall not be unreasonably withheld, provided that Custarner has camplied with all
City requirements.
7. Access and Pre�n,i,s,es. The City may enter the PPF's premises (a} to inspect, at reasonable hours,
the PPF's protective devices; ar (b) to read or test tneters; or (c} to disconnect, withaut notice whenever
rlecessary, the PPF from the Electric Utility System if, in the City's opinion, a hazardous condition exists
and such immediate actiotl is necessary in order to protect persons, City facilities, or property of others
from damage ar interference caused by the PPF, or lack of properly operating PPF protective devices.
e nan,ce_and Perm,its. The Custo�ner shall: (a} rnaintain the PPF in a safe and prudent manner,
8. Mainte
and in conformance with all applicable laws and regulations, including, but not limited ta, those set forth
in Exhibit A to this Agreement and the PUC Distributed Geileration lnterconnection Manual; and (b} obtain
any governmental autharizatians and permits as required for tlle construction and aperation of the PPP and
interconnection facilities. The PPF shall reimburse the City for any and all losses, damages, claims,
penalties, or liability it incurs as a result of the PPF's failure ta obtain or maintain any governmental
authorizations and perrnits required for the construction and aperation of the PPF.
9, C�tw �tg �w�r�,�;�a�dc�btw��:�l` �;������tt�a���,, Custamer flirther agrees and represents to the City that the
distributed generatian equipment of Customer shall be designed, installed, connected, operated and
maintained, to the best of Customer's knowledge and belief, in accordance with the applicable ANSI
standards now in force; the applicable UL standards that are in farce at the time of the execution of this
Agreement; the applicable IEEE standards [particularly CEEE 929-2000 and IEEE 1547-2003] that are in
farce at the time af the execution of this Agreement; the applicable National Electrical Cade (the "NEC")
standards in force at the time of the execution of this Agreement; the applicable CRCOT Operating Guides
in farce at the tirne of the execution of t11is Agreement; as well as any other applicable local, state, ar federal
codes, statutes, and regulations in farce at the time of the execution of this Agreernent .
10. ������¢?�,����%nlp���� �rl �'�����;��ia��w��,,, The Customer will, at its awn cost and expense, operate, maintain,
repair, inspect, and shall be fully responsible for the PPF which it now or hereafter may own unless
otherwise specified on Exhibit A. Customer shall conduct operations of its PPF(s) in campliance with all
applicable local, state, ar federal codes, statutes, and reglilations. The maintenance of the PPF shall be
perfarmed in accordance with the applicable manufacturer's recammended maintenance schedule. The
Agreement for Tnterconnection and Para(lel Operation of Distributed Generation Page � 3 of 8
Customer agrees ta cause their PPF to be constructed in accordance with specifications equal to or greater
than those provided by the National Electrical Safety Code (the "NESC"}, approved by the American
National Standards Institute (the "ANSI"), in effect at the time of construction. The Customer covenants
and agrees to design, install, maintain, and operate, or cause the design, installation, maintenance, and
operation of the PPF sa as to reasonably minimize the likelihood of a disturbance affecting or irnpairing the
Electric Utility System, or other systems with which the Customer is interconnected. The City will notify
Customer if there is evidence that the PPF operation causes disruption or deteriaration of service to other
customers served from the same grid, or if the PPF operation causes damage to the Electric Utility System.
Customer will immediately notify the City of any ernergency or hazardous condition or occurrence with
the PPF that could affect safe aper�tion ofthe Electric Utility System.
13. Iortc�n��°�z�ta�mq� ��� I�,a����a�l,r�s��...��d ��7�1��+���c�.
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(1) When the General Manager determines that it is necessary in order to construct, or
install, or rnaintain, or repair, or replace, or remove, or investigate any of the City's
equipment or any part of its Electric Utility System;
(2} If the General Manager determines that curtailment, interruptian, ar reduction is
necessary because of emergencies, or forced autages, orforce nzajeure, or compliance with
prudent electrical practices;
(3} Notwithstanding any provision of this Agreement, the City shall have the right to
disconnect the PPF frotn the Electric Utility System if it determines that either: (a) the PPF
or its operation may endanger City personnel, or (b} the continued operation of the PPF
may endanger the integrity of` the Electric Utility System. The PPF shall remarn
disconnected until sucll time as the City is satisfied that the objectionable conditions have
been corrected or no longer exists; or
(4) The City discovers or learns of PPF inanufacturer defects or deficiencies that may
have adverse aperational impacts on the Electric Utility System.
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Agreement for Intercannection and Parallel Operatian of Distributed Generation Page � 4 of 8
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d, For the mutual protection of the Customer and the City, anly with the City's prior written
authorization, are the connections between the City's service wires and the Customer's service
entrance conductors to be energized.
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The above-listed names, titles, and addresses of either Party may be changed by written notifcation to the
other Party.
l7. I;w°�&p�t��F„��,C ��u�.�.0z���o�� a��t��� ��A°i_�r,,�l�,e���������o���; �t���a.�.������d,m This Agreement, including Exhibit A,
which is expressly made a part hereof for all purposes, constitutes the entire agreement and understanding
between the Parties with regard to the interconnection of the facilities of the Parties at the Points of
Interconnection expressly provided for in this Agreement. The Parties are not baund by or liable for any
statement, representation, pramise, inducement, understanding, or undertaking of any kind or nature
(whether written or oral} with regard to the subject matter hereof not set forth or provided for herein. This
Agreement replaces all prior agreements and undertalcings, oral or written, between the Parties with regard
to the subject matter hereof. It is expressly acknowledged that the Parties may have other agreements
covering ather services not expressly provided for herein, which agreements are unaffected by this
Agreement.
1$. ('i�av�.r�a�,ir_�� l,�,��u ��t���� ��,��'���ul��'a.�a�f�Git,V��:s,��ut� This Agreement was executed in the State of Texas
and must in all respects be governed by, interpreted, construed, and shall 6e exclusively enforced in
accordance with the laws thereof, The provisions and obligations of this Agreement are performable in the
City of Denton, DentUn County, Texas. Venue shall lie for any lawsuit dealing with thrs Agreement in the
courts of Denton County, Texas.
19. �t.q;:���tr�:�.��"�� R�,���:. Should either Party to this Agreement commence legal proceedings against the
other to enforce the terms and provisions of this Agreement, the Party who does not substantially prevail in
the proceeding(s} shall pay a reasonable amount of attorney's fees and expenses (including, but not limited
to expert witness fees and deposition expenses} incurred by the prevailing Party.
20, "�mm��vt.�,t'��l;ro���_���. lf any term or provision ofthis Agreement is held by a court to be illegal, invalid,
or unenforceable, the legality, validity or enforceability of the remaining terms or provisions of this
Agreement shall not be affected thereby, and in lieu of each illegal, invalid or unenforceable term or
provision there shall be added automatically to this Agreement a legal, valid or enforceable term or
provision as srmilar as possible to the terrn or provrsion declared illegal, invalid, or unenforceable.
21. ���p����lr�����ra��. This Agreement may be amended only upon mutual agreement of both of the
Parties hereto, which amendment will not be effective until it is reduced to writing and executed by the
Parties.
22, Pr�r��rn�,i..�.��„y���a�„�'����s���°t°n'�,� Invoicing and payment terms f'or services associated with this
Agreement shall be based upon and consistent with the applicable Ordinances of the City of Denton, Texas.
23. ������mm�r9�il�k�°., Customer and the City agree that this Agreement may not be assigned due to the
special nature of the Agreernent. Any sale or disposition of the real property and the PPF covered hereby
in whale or in part, by Customer will require that the PPF be disconnected from the Electric Ut►lity System
until DME has communicated with the new owner about relevant safety issues and until such time as the
new owner signs a new Interconnection Agreement with the City.
Agreement for Interconnection and Parallel Operation of Distributed Generation Page � 7 of 8
24. ����J�,,��,,,,,4���;p,��v�n°; The failure of a Party to this Agreement to insist, on any occasion, upon strict
performance of any provision of this Agreement will not be considered to waive the obligations, rights, or
duties imposed upon the Parties. No waiver of any breach or violation of any term of this Agreement shall
be deemed ar construed to canstitute a waiver of any other breach or violation, whether concurrent or
subsequent, and whether of the same or of a different type of breach or violation.
25. Ent,ire_A re� ement. It is understood and agreed that this Agreement contains the entire Agreement
between the Parties and supersedes any and all prior agreements, arrangements or understandings between
the parties relating to the subject matter. This Agreement cannot be changed or terminated orally and no
written modification of this Agreement shall be effective unless executed and signed by both Parties.
26. �l;a? Z@tiro�����?_ati�� I���o��;E�uciari�.�,, This Agreement is not intended to and does not create rights,
remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or
entities other than the Parties, and the obligations herein undertaken and assumed are solely for the use and
benefit of the Parties, their successors-in-interest and, where permitted, their assigns.
27. k��e �r w�j.�9� N�cr�����'M�„� ��w�t�& � a�r���d;�;'aac�t��r�, t�l' C��r'a��A���.����_ The descriptive headings of the various
articles and sections of this Agreement have been inserted for the convenience of reference on1y, and are to
be afforded no significance in the interpretation or construction of this Agreement. Both Parties hereta
have participated in the negotiation and preparation ofthis Agreement, which shall not be construed either
mare ar less strongly against or far either Party.
2$. 4:e�„�����,o�. Within this Agreement, words of any gender shall be held and construed to include any
other gender, and wards in the singular number shall be held and construed to include the plural, unless the
context otherwise requires.
29. N,�,6�tl��i�., All Exhibits to this Agreement are incorporated herewith by reference for all purposes,
wherever reference is made to the same.
30. l�„u�����rros�, i��i"��-r:�.. Except as litnited herein, the terms and provisions af this Agreement shall be
binding upon and inure to the benefit of the Parties hereto and their respective heirs, devisees, personal and
legal representatives, successors, or assigns.
31, f;vl„umCm,���,�,ti: �`� �'��.w�����,'�°��x�t�,�,,. This Agreement may be executed in multiple counterparts, each of which
is deemed an original, but all of whicl� constitute but one and the same instrument.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their
respective duly-authorized representatives on tllis the day of ��_�,_w_w w_______.�.� ��..........•
CITY OF DENTON, [CUSTOMER]
a Texas home-rule municipal carporation
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Title:
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Age°eement for Intercannection and Parallel Operation af Distributed Generation Page � 8 of 8