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1999-210S \Our Docume~ts\Ordmances\99\DME Sehed EP Amend 4 99 Ord doc AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF ELECTRIC RATES CONTAINED IN ORDINANCE NO 98-262, AMENDING ORDINANCE NO 98-046 WHICH CREATED AN ENERGYSAVE PROGRAM SCHEDULE (EP), AMENDING ORDINANCE NO 98-093 WHICH AMENDED ORDINANCE NO 98-046, PROVIDING FOR A FURTHER AMENDED ENERGYSAVE PROGRAM SCHEDULE (EP), ADOPTING DECLARATIONS AND FINDINGS IN THE PREAMBLE, PROVIDING FOR A REPEALER, PROVIDING FOR THE EXPENDITURE OF FUNDS, PROVIDING FOR A SEVERABILITY CLAUSE, PROVIDING FOR RETROACTIVE EFFECT OF THE AMENDMENT RESPECTING SCHEDULE (EP), AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, on the 17th day of February, 1998, the Council passed and approved Ordinance No 98-046 which added an EnergySave Program Schedule (EP) to the schedule of electric rates contmned ~n Ordinance No 97-236, and WHEREAS, on the 7th day of April, 1998, the Council passed and approved Ordtnance No 98-093, which amended Ordinance No 98-046 in order to ehmlnate the reqmrement of installation of 90%-efficient gas furnaces, when coupled with conventional air conditioning/gas furnace systems, and WHEREAS, on the 8t~ day of September, 1998, the Council passed and approved Ordinance No 98-262, which adopted the amended Schedule of Rates for Denton Municipal Electric ("DME"), including Schedule EP as amended, prowd~ng for the EnergySave Program to continue m force and effect, effective on the 1st day of October, 1998, and WHEREAS, the DME staff has carefully evaluated and assessed the goals, purposes, apphcat~on, and financml ~mpact of the EnergySave Program, and has recommended to the Council that ~n order for the City to substantially achieve the goals of the EnergySave Program, that it ~s necessary and appropriate for the Cotmcfl to further amend Schedule EP in order to provide, effective April 1, 1999, that apartments and multiple unit residential structures will qualify for the mr con&t~oner rebates provided for ~n Schedule EP, bm will not qualify for the structure incentive, so that several other provisions of Schedule EP may be clarified, and so that the name ~ofthe C~ty's mtmlc~pal electric utility, "Denton Munm~pal Electric" is properly rectted and reflected throughout the amended Schedule EP, and WHEREAS, the Council deems ~t m the public ~nterest to so amend the EnergySave Program as prowded for in the attached "Schedule EP, EnergySave Program (effective 04-01- 99)", NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the Schedule of Rates for electric service as provided for ~n Chapter 26 of the I Code of Ordinances of the C~ty of Denton, Texas, in Or&nance No 98-262, is hereby amended; and further that the EnergySave Program Schedule (EP) enacted by Ordinance No 98- 046, ~s accordingly, hereby amended, and further that the EnergySave Program Schedule (EP) enacted by Ordinance No 98-093 ~s hereby amended, all as recited ~n the preamble to this ordinance, and as set forth partmularly ~n that certmn Schedule EP attached hereto and ~ncorporated herewith by reference SECTION II That all of the declarations and findings contained in the preamble to th~s ordinance are made a part hereof and shall be fully effective as a part of the ordmned subject matter of th~s ordinance SECTION III, That all ordinances or parts of ordinances ~n force when the prowslons of th~s ordinance became effective which are inconsistent or ~n conflmt w~th the terms or provisions contmned ~n amended Schedule EP hereby enacted by th~s ordinance, are hereby repealed to the extent of any such conflmt SECTION IV That the Council hereby authorizes the Assistant C~ty Manager for Utilities to expend funds to ~ssue incentives ~n the form of rebates to DME customers who qualify under the EnergySave Program Gmdehnes, pursuant to the terms of Schedule EP, attached hereto, and adopted by th~s ordinance SECTION V That if any section, subsection, paragraph, sentence, clause, phrase or word ~n th~s ordinance, or apphcat~on thereof to any person or c~rcmnstances ~s held invalid by any court of competent jur~sdmt~on, such holding shall not affect the validity of the remalmng portions of this ordinance, and the C~ty Council of the C~ty of Denton, Texas hereby declares it would have enacted such rematmng portions despite any such ~nvalld~ty SECTION VI That the effective date of amendment to EnergySave Program Schedule (EP) as here~n amended and adopted, ~s retroactively ratffied and approved, as penmtted by the prowslons of the EnergySave Program Gmdehnes, from and after April 1, 1999, and a copy of smd Schedule EP, as amended hereby, shall be mmntmned on file ~n the office of the C~ty Secretary SECTION VII That except as provided in Section VI herein, th~s ordinance shall become effective ~mmed~ately upon ~ts passage and approval PASSED AND APPROVED th~s the/ ?~'~"~ day of ~ ,1999 JA~ ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY SCHEDULE EP Ener=vSave ProGram (Effective 04-01-99) Appllcatlon/Pro~ram Summary Denton Municipal Electric (DME) through this program, called "EnergySave", is offering cash payments as incentives in the form of rebates to customers who purchase and install high- efficiency air conditioners or heat pumps for new residential, existing residential or commercial facilities This program will provide structure incentives in the form of rebates, in the amount of $ 500 00 per qualifying structure, to residential builders of single-family residences for meeting specific DME structure requirements Satisfying these construction requirements will improve a residential structure's heating and cooling systems' operating efficiency Apartments and multiple unit residential structures will qualify for the air conditioner rebates, but will not qualify for the structure incentive, if they meet the applicable EnergySave Program Guidelines The EnergySave Program's ob]ectlves are primarily to reduce energy demand and consumption, thereby allowing the customers of Denton Municipal Electric to save dollars on their utility b$11s, reducing the peak load of the C~ty of Denton's electric system, and promoting energy efficient heating and cooling Proqram Guidelines I Qualification Guidelines for Equipment A Ail installations must be for accounts served by the Denton Municipal Electric 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 All equipment must be purchased No leased or lease/purchased equipment will qualify for a cash rebate D Installations must be made by licensed contractors and/or dealers E No rebate will be paid on a partial replacement of an air conditioner The compressor, condenser and the evaporator coil must be replaced to qualify for a rebate Payments for residential central cool~nq systems, which ~nclude apartments and mobile homes, w~ll be llmlted to a capacity based on a m~nlmum of 600 conditioned square feet per ton F The condltloned area ~n square feet is required on each residential central system request for payment Any varlance must be authorized on an ~nd~v~dual basis and approved by the Denton Municipal Electric Marketing Division G Incentives for new and retrofit equipment will be contributed to a purchaser or authorized homebullder for qualifying equipment Incentlves w~ll be paid upon verlflcatlon of compliance with program gu~delznes H Requests for payment must be recezved by the Director of Electric Utilities w~thln 60 days of lnstallatzon I Equipment and installation are sub3ect to lnspectzon by the City's Building Inspection Department before final approval for payment ~s issued J The EnergySave Program guidelines and payments are subject to change by Denton Municipal Electric without przor notice K Denton Municipal Electric may, at any t~me, discontinue the EnergySave Program wzthout prior notice II Qualification Guidelines for Structure Incentive A A residential structure zncent~ve, in the amount of $ 500 00 per qualifying structure, is offered to a builder, developer or authorized agent after the 2 following qualifications are met 1 Builder, developer or authorized agent must be enrolled an the Denton Munlcapal Electric EnergySave Program (EnergySave) 2 Builder must install a 1 5 ton or above central air conditioner or heat pump having a manamum effacaency rating of 12 SEER 3 Install manlmum of R13 wall ansulatlon Install minimum of R30 cealang lnsulataon 5 Ninety percent of the total square footage of exterior glass must be double-glazed (double pane) 6 Seal and weather-strap exterior doors and wandows Includes caulking exterior toe plates and wlrlng/plumbang penetrations through the structure's exterior walls and B Structure Incentive for new homebullders must also comply with the respective restractlons set forth in Gu~delanes for Equipment Qualaflcatlons I GENERAL PROCEDURES A Applacatlon 1 Equapment- An application for equipment incentive must be completed and sent to the Director of Electrac utalltaes wlthan 60 days of ~nstallataon of new or replacement equipment Partlcapatlng dealers have appllcataon forms and will complete these forms for the purchaser It is the purchaser's responsibility to see that the dealer completes the form and submits it to the Director of Electrac Utlllt~es 2 Structure Incentave- To qualify for resadentlal structure lncentlves, 3 a builder/developer or authorized agent must be registered as an authorized Denton Municipal Electrmc EnergySave Authorized Bumlder To become a recognized EnergySave bumlder, applicant must complete and submit a Denton Municipal Electric EnergySave Bumlder Appllcatmon form to the Dmrector of Electrmc Utllmtmes Applicant must also meet the requmrements lmsted mn the EnergySave Fmnal Audmt form lmstmng the descrmbed construction requirements B Inspections Installations of central air-conditioning systems wmll be mnspected by the City's Bumldmng Inspection Department and must be approved before rebates will be processed New structures wmll be randomly audmted to insure adherence to the required energy efflcment constructmon speclfmcatlons C Payments to Partmcmpants 1. Equipment Retrofit (Ex.sting resmdences) Cash payments will be made to the purchaser of the qualmfymng replacement equipment Partmclpatmng retail equipment dealers wmll receive a cash payment of $20 per unzt for the sale of wmndow units, central air conditioning systems, or heat pumps to offset their cost for properly flllmng out the applmcatmons for purchasers of retrofzt equmpment 2 New equmpment and structure mncentmve Program partmclpants are responsmble for submItting the correct ~nformatmon The Utility Department wmll not issue any additional payment unless the payment was mncorrect due to a mmstake in processmng by a City employee The twenty dollar ($20 00) payments to dealers will be made only mf they supply the qualmfy~ng equmpment to the customer or builder who is paymng for the installation of the equipment 4 Dealers and purchasers may be denied payment for 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 fzll out rebate forms properly Payments wzll be made to customers who purchase and ~nstall new qualifying equipment If a tenant purchases and installs qualifying equlpment, 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 mobile 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 w~th an inside evaporator coil will qualify if matched, as specified, ~n the current issue of the ARI Dzrectory of Certified Air Conditioners and Air Source Heat Pumps and the unit meets the minimum ratings as specified ~n the 1998 EnergySave Program If the unit is not in the current ARI Directory, the manufacturer's latest data approved for publication w~ll be accepted If the unit zs not in the current ARI D~rectory or data approved for publzcatzon, the average of the high and low SEER/EER coil only, not including blower cozl, will be accepted as lzsted in the current ARI Directory B Computer szmulatlons may be used zf ratings are not listed in the current ARI Dzrectory, provided the following criteria are met 1 Systems using m~x-matched co~ls must meet all establlshed program guzdellnes to qualify for a rebate 2 The computer simulations must be signed, certified, and dated by a registered profes- sional engineer and an officer of the company makzng the submittal 5 3 The engineer who certzfles a simulatmon must attest to the accuracy of the input data, the validity of the calculation procedure used, and that the results are mn accordance with Department of Energy approved methodology 4 A complete set of the mnput 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 unmt's tested combmnatmon as lmsted mn the current ARI Dmrectory or latest data approved for publmcatlon and zdentmfmed by the correct model numbers of both the condensing unit and co~l as listed in the current ARI Dmrectory 6 Simulated ratmngs must not exceed 105% of the SEER rating of the tested system used as a base 7 An open file of computer smmulatmons wmll be mamnta~ned at the Energy Management Offmce Supplyzng erroneous ratings or data can lead to dmsqualmflcatmon of those mnvolved from further program participation C Program Capacity and Payment Formula 1 The maxmmum allowable BTU per hour capacmty elmglble for a resmdentmal rebate ms determined by dmvmdmng the square footage of the amr-condlt~oned area by 600 and multlplymng by 12,000 Example The Program Capacmty for an 1,800 square foot house zs 1,800 = 3 0 × 12,000 = 36,000 BTUH 60O The Cmty wmll pay a rebate on a unit that meets 6 program efficiency standards and is sized at 36,000 BTUH or less 2 Actual payment will be determined by dividing the BTUH of the installed unit (up to, and · ncludlng the Program Capacity) by 12,000 and multiplying by the incentive The ~ncentlve amounts and SEER ratings are refer- enced of the ~1998 EnergySave Program Methods Used in Determining Equipment Efficiency and Eligibility," and are ~ncorporated here~n as ~f fully set forth at length Example A A person in a 2,100 square foot house · nstalls a 42,000 BTUH central air conditioner with an SEER rating of 12 0 2,100= 3 5 x 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 BTUH central a~r condItioner w~th a SEER rating of 12 0 2,400 = 4 x 12,000 = 48,000 Program Capacity 600 48,000 = 4 × $100/ton = $400 Incentive 12,000 Example C A person in a 2,400 square foot house installs a 60,000 BTUH central heat pump with a SEER rating of 12 0 2,400 = 4 x 12,000 = 48,000 Program Capacity 6O0 48,000 = 4 x $150/ton = $600 Incentive 12,000 7 Minimum SEER/EER Central Air Conditioning Ratlnq Incentive Single Phase (SEER) 12 0 $100 ton*$ Three Phase (EER) 12 0 $100 ton Single Phase (SEER) 14 0 $125 ton Three Phase (EER) 14 0 $125 ton Centra1 Heat Pumps Single 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 Air Conditioners 10 0 $ 50 unit Room Heat PumPs 10 0 $ 50 unit Geothermal Heat PumPs 12 0 $500 unit Desuperheater (Waste heat reclamation device) $150 unit * Refer to ~1998 EnergySave Program Methods Used Determining Equipment Efficiency and ElIgibility" t For calculation purposes, one ton equals 12,000 BTUH S \Our Do~uments\Ord~nances\99\Ener~ySaveSchedule ~nend 4-99 doc 8