Resolution No. 93751
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RESOLUTION NO. 9375
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON DETERMINING TO ADOPT TIME OF USE RATES FOR
CERTAIN CLASSES OF ELECTRIC SERVICE FOR CUSTOMERS
OF THE CITY'S MUNICIPAL UTILITY
WHEREAS, the City of Vernon ("City") is a chartered municipal
lcorporation of the State of California that owns and operates a system
11for the generation, purchase, transmission, distribution and sale of
electric capacity and energy; and
WHEREAS, City serves electricity to consumers at retail from
City's distribution system located within its municipal boundaries; and
WHEREAS, since 1984, the City has made available to certain
classes of electricity customers rates for electric service based upon
the time -of -day in which the electricity is provided to the customer;
and
WHEREAS, pursuant to the federal Energy Policy Act of 2005
("EPAct 2005"), the City is required to consider and determine, after al
public hearing on the matter, whether to expand time -based rates to alli
classes of customers for electricity service within the City; and
WHEREAS, on August 6, 2007, at a properly noticed public
hearing, the City Council took evidence from staff and those other
persons in attendance who wished to be heard on the advisability of the
City expanding its existing time -of -use rate programs to other rate
classifications; and
WHEREAS, the City Council has considered the evidence
presented at that public hearing and whether the implementation of
time -based rates to other classes of customers for electricity service
within the City would be appropriate, including whether, with respect
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to each such class of service, the long -run benefits of such rate to
the City's electric utility and its electricity customers in such class
are likely to exceed the metering and communications costs and other
costs associated with the use of such rates; and
WHEREAS, the City Council has concluded based upon that
evidence that it would be in the best interests of the City and the
electricity customers within the City to give customers in the four
classes of service, namely the GS-2, GS-1, Pumping and Residential
classes, the option to elect time -based rates, subject to terms and
conditions to be determined by the Light & Power Department staff
consistent with this Resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
further finds and determines as follows:
A. That the City currently offers four classes of
electricity service which allow customers to elect to pay time -based
rates - TOU-V, TOU-G, PA-TOU and TOU-I;
B. The City's time -based rates have been very
successful and well -received by Vernon's customers, such that as of
2006, approximately 9.2% of the City's electricity customers were
served through time -based rates, representing approximately 78.4% of
the City's retail load and nearly all of the City's larger electricity
customers;
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1 C. Vernon currently has six other rate classes
2 which do not have a time -of -use option, including GS-2, GS-1, Pumping,
3 Residential, Traffic and Lighting;
4 D. Since the Traffic and Lighting rate classes
5 apply to services which cannot adjust demand based on time of day,
6 neither would be a reasonable candidate for time -of -use pricing;
7 E. The City is currently undertaking a review and
8 re -design of its electricity rate structure and has retained
9 Crossborder Energy as a consultant to assist in that review; and
10 11 F. Crossborder Energy has reviewed the City's
11 remaining rate classes which do not currently have an option for time-
12 of -use rates, i.e. GS-2, GS-I, Pumping and Residential, and has
13 preliminarily reported that time -of -use rates can be added to those
14 rate classifications in a manner which would be revenue -neutral to the
15 City; and
16 G. The addition of an option for time -of -use rates
17 to rate classes GS-2, GS-1, Pumping and Residential would likely
18 encourage conservation by the City's electricity customers in those
19 rate classifications; and
20 H. The addition of an option for time -of -use rates
21 to rate classes GS-2, GS-1, Pumping and Residential would likely
22 encourage the efficient use of facilities and resources by the City's
23 electric utility by allowing the City to avoid committing to
24 unnecessary additional, expensive peak -capacity; and
25 I. The addition of an option for time -of -use rates
26 to rate classes GS-2, GS-1, Pumping and Residential would encourage
27 equitable rates to the City's electricity customers as a whole; and
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J. It is appropriate that customers electing time -
based rates pay the costs of the time -based meters which will be
required to make such rates possible, but the City should finance the
costs of the purchase of such meters so that such customers are not
discouraged by significant up -front costs, and the City should recover
the costs of such meters through increases in the monthly metering
charge assessed to such customers; and
K. With respect to each of service classes GS-2,
GS-1, Pumping and Residential, the long -run benefits of such rate to
the City's electric utility and its electricity customers in such
classes are likely to meet or exceed the metering and communications
costs and other costs associated with the use of such rates.
SECTION 3: The City Council of the City of Vernon hereby
authorizes and directs the Light & Power Department to, as part of its
review of the City's overall electric rate design, incorporate an
option for time -of -use rates in service classes GS-2, GS-1, Pumping and
Residential, as well as service classes TOU-V, TOU-G, PA-TOU and TOU-I,
consistent with this Resolution, and to complete and report back to the
City Council on that review of the City's rate design by no later than
October 15, 2007.
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SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and thereafter
the same shall be in full force and effect.
APPROVED AND ADOPTED this 6th day of August, 2007.
A'11TEST :
MANUELA GIR ity Clerk
Name: Leonis C. Malburg
Title: Mayor / „a __
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1 STATE OF CALIFORNIA )
2 ) ss
COUNTY OF LOS ANGELES )
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4 I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
5 certify that the foregoing Resolution, being Resolution No. 9375, was
6 duly adopted by the City Council of the City of Vernon at a regular
7 meeting of the City Council duly held on Monday, August 6, 2007, and
8 thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
9 Vernon.
10
11 MANUELA GIRO City Clerk
12 (SEAL)
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SUPPORTING
DOCUMENTS
INTEROFFICE i
Light & Power Department
DATE: July 20, 2007
TO: Eric Fresch�
City Administrator
FROM: Donal O'Callaghan
Director of Light and Power
SUBJECT: EPAct 2005
APPROVED AUG 0 6 '07 CITY COUNCIL
MEMORANDUM
C, CLERK DISTRIBUTION
kii 6xil
The Energy Policy Act of 2005 (EPAct 2005) requires utilities, including municipal
utilities, to consider and determine whether to adopt TOU Rate schedules for all
customers and an Interconnection Standard (to allow generation on -site at the
customers location to be connected to the City's distribution system). Under the EPAct
2005, the City of Vernon must complete its consideration of each of the proposed
requirements, and make a determination by August 8, 2007. In order to meet the
August 8, 2007 deadline, it is recommended that the City Council approve and adopt
the below recommended requirements at their August 6, 2007 City Council Meeting.
Below is a summary of the two recommended requirements:
New Time -of -Use Rates for the City of Vernon - R ES
The City of Vernon retained Crossborder Energy to provide recommended rate designs
that would extend time -of -use (TOU) rates to those Vernon customer classes that do
not have a TOU Rate option today. The attached New Time -of -Use Rates for the City
of Vernon study dated July 16, 2007 provides the requested TOU rate designs. The
new TOU Rates will be optional to the customer who elects to be on the TOU Rate.
We request that the City Council adopt the attached TOU Rate Study for immediate
implementation.
General Guidelines for the Interconnection of Customer -Owned Solar Generator Facility - Fes .
The Light and Power Department has developed the attached City of Vernon General 9316
Guidelines for the Interconnection of Customer -Owned Solar Generating Facility to
allow generation on -site at the customer's location to be connected to the City's
distribution system. The Light and Power Department determined that it is feasible to
Eric Fresch
July 20, 2007
Page 2
adopt an Interconnection Standard guideline for the interconnection of customer -owned
solar generating facility. This standard is also required to meet Senate Bill 1 (SB 1)
requirements passed by the State Legislature in August 2006.
We request that the City Council adopt the attached City of Vernon General Guidelines
for the Interconnection of Customer -Owned Solar Generating Facility.
DOC:rmt
Attachments
c: Document Control
Abraham Alemu
Ali Nour
Crossborder Enemy
Comprehensive Consulting for the North American Energy Industry
New Time -of -Use Rates for the City of Vernon
July 16, 2007
I. Introduction
The City of Vernon has retained Crossborder Energy to prepare an electric rate design study
for the City. Crossborder provided its initial study on April 18, 2007. Following up on that work,
Vernon has asked Crossborder to provide recommended rate designs that would extend time -of -use
(TOU) rates to those Vernon customer classes that do not have a time -of -use option today. This study
provides the requested TOU rate designs. The study focuses on adding TOU rate options to the City's
existing tariffs for the GS-2, GS-1, Residential, and Pumping classes.
Crossborder is still in the process of updating our overall rate design study to incorporate new
data and comments provided by City staff. That updating may result in minor changes to the TOU rate
recommendations presented below. Our further work on a comprehensive new rate design for Vernon
will include these TOU rate options.
II. The 2005 EPAct Requirement to Implement TOU Rates
The Energy Policy Act of 2005 (2005 EPAct) amended the Public Utilities Regulatory Policies
Act (PURPA) to add a requirement that
... each electric utility shall offer each of its customer classes, and provide individual
customers upon customer request, a time -based rate schedule under which the rate
charged by the electric utility vanes during different time periods and reflects the
variance, if any, in the utility's costs of generating and purchasing electricity at the
wholesale level. The time -based rate schedule shall enable the electric consumer to
manage energy use and cost through advanced metering and communications
technology. 2005 EPAct, Section 1252 (a) (14) .
The legislation makes clear that a variety of types of TOU rates will satisfy this requirement, including
(1) standard, tariffed TOU rates that vary across a limited number of time periods and that are revised
in regular rate proceedings, (2) critical peak pricing, in which very high peak prices become effective
during a limited number of short periods of very high demand; and (3) real-time prices that attempt to
match the utility's wholesale generation costs as frequently as every hour. Obviously, the utility also
must offer customers the option of a meter capable of recording consumption during each TOU period.
2560 Ninth Street • Suite 213A • Berkeley CA 94710 • phone (510) 549-6922 • faz (510) 649-9793
TO U Rate Study for Vernon
July 16, 2007
Page 2
To complete its compliance with the 2005 EPAct, Vernon has asked us to propose optional
TOU rates for the rate classes that have the potential to shift their usage between TOU periods and for
which the City does not presently offer TOU rates.
III. New TOU Rates for Vernon
Table 1 below shows Vernon's customer classes, with 2006 data for each class on the number
of customers, annual consumption, average demand per customer, peak monthly demand per customer,
and load factor.
Table 1: 2006 Data on Vornnn'c %'fivtn-- f-1.,..-
Customer
Class
Number of
Customers
Annual Usage
(MWh)
Per Customer
Average
Demand (kW)
Per Customer
Peak Monthly
Demand (kW)
Load Factor
(%)
TOU-V
117
813,236
793
1,236
64%
TOU-G
80
113,873
162
283
57%
PA-TOU
4
2,847
81
152
53%
GS-2
459
166,531
41
93
44%
GS-1
991
62,764
7
NA
NA
Pumping
5
1,492
34
NA
NA
Residential
29
161
1
NA
NA
Traffic
66
816
9
NA
NA
Lighting
105
1,858
2
NA
NA
Vernon's largest customers already take service under TOU rates. Industrial customers with peak
demands larger than 500 kW in three or more months of the past year must take service under
Schedule TOU-V. Large commercial loads typically use Schedule TOU-G. Schedule GS-2 is also
available to large commercial customers with demands less than 500 kW, and does not include TOU
rates. However, TOU-G rates are significantly lower than GS-2 rates; thus, there is a significant
incentive for large commercial customers to choose TOU-G rates. GS-2 customers tend to be much
smaller than TOU-G loads. Vernon's traffic control loads (Schedule TC-1) cannot vary their output
according to the time -of -day; similarly, Vernon's lighting rates generally are for pre-programmed, night-
time lighting that is not a candidate for TOU rate options.
Thus, there are four customer classes that could benefit from a time -of -use rate option: GS-2,
GS-1, Residential, and Pumping.
Crossborder Energy
TOU Rate Study for Vernon
July 16, 2007
Page 3
IV. Goals of a TOU Rate Design
There are a number of goals that should be met in the design of optional time -of -use rates:
Reflect marginal costs. The time -differentiation of Vernon's rates should reflect the time -
dependent profile of Vernon's marginal costs for energy and capacity. City staff has indicated
a preference for the use of the City's long -run marginal costs in its electric rate design. As a
result, we have used the TOU profile of the City's long -run marginal energy and capacity costs
developed in our initial rate design study.
2. Efficiency. The use of marginal costs in the design of TOU rates promotes efficiency by
conveying realistic price signals to customers concerning the costs of consuming electricity in
different periods. TOU rates provide customers with a price signal to shift their consumption to
the TOU periods in which the City's costs are lower.
Revenue neutrality. The optional TOU rates for the GS-2, GS-1, Residential, and Pumping
classes should be "revenue neutral;" in other words, they should be designed recover the same
revenue as existing rates, given the time profile of the expected consumption in each class. To
the extent that TOU rates based on marginal costs need to be adjusted to achieve revenue
neutrality, that adjustment should preserve the marginal cost signal to the maximum extent
possible.
4. Transparency and simplicity. TOU rates should be understandable to customers. A simple
and transparent rate design will increase the likelihood that customers will consider taking
service under TOU rates and shifting load to maximize their economic benefits from the TOU
rate design.
V. TOU Profile of the GS-2, GS-1, Residential, and Pumping Classes
The design of TOU rates for the GS-2, GS-1, Residential, and Pumping classes requires an
estimate of the consumption of these classes in each TOU period. Vernon has not collected data on the
usage of these customer classes by TOU period. We have estimated the TOU usage for these classes
by assuming that these classes have the same TOU usage profile as the corresponding customer classes
on the neighboring Southern California Edison (SCE) system. Detailed data on the usage by TOU
period for all of SCE's customer classes is available from the load research studies that SCE files in its
general rate cases at the California Public Utilities Commission (CPUC). Edison has somewhat
different TOU periods than Vernon, but it is straightforward to map the TOU usage of SCE customers
to Vernon's TOU periods.
Table 2 shows our estimate of the TOU usage (energy and demand) for the GS-2, GS-1,
Residential, and Pumping classes, based on the total 2006 usage of those classes and our assumed
Crossborder Energy
TOU Rate Study for Vernon
July 16, 2007
Page 4
TOU profiles.
Table 2: Estimated 2006 Usaze by TOU Period /MWh )
GS-2
GS-1
Residential
Pumping
Summer On
9,629
4,012
11
83
Summer Mid
11,086
4,299
13
104
Summer On
22,745
8,980
31
251
Spring/Fall On
9,101
3,552
7
83
Spring/Fall Mid
10,810
4,105
9
105
Spring/Fall Off
20,610
7,965
20
229
Winter On
13,519
4,846
10
97
Winter Mid
26,164
9,339
19
182
Winter Off
42,866
15,666 1
40
357
Annual Total
166,531
62,764
161 T-1,492
VI. Design of TOU Rates
Marginal Costs for Energy and Capacity. Table 3 summarizes Vernon's marginal costs,
using the long -run perspective presented in our April 2007 rate design study. Vernon's marginal energy
costs are based on the variable operating costs of the new Malburg Generating Station (MGS).' The
marginal cost of capacity includes Vernon's generation capacity costs for MGS plus an estimate of
Vernon's marginal distribution costs. Vernon's total long -run marginal costs are 74% energy, 26%
capacity. More detail on the development of these marginal costs can be found in Section V of our
draft rate design study.
Table 3: Mar inal Ener and Capacitv Costs
Energy
Capacity
Energy & Capacity
Marginal Cost
$57.78 per MWh
$12.63 per kW-mo.
$78.45 per MWh
TOU Allocation Factors for Energy and Capacity. The marginal energy costs are allocated
to TOU periods using allocation factors based on a 50150 combination of (1) 2006 Dow Jones SP-15
prices (published on- and off-peak prices) and (2) 2006 hourly CAISO real-time prices for SP-15.
In response to comments from City staff, we have raised the MGS heat rate from 7,000 to
7,444 Btu/kWh.
Crossborder Energy
TOU Rate Study for Vernon
July 16, 2007
Page 5
Both the SP-15 and CAISO real-time prices were mapped to Vernon's TOU periods, and the
allocator for each TOU period was derived by dividing the TOU price by the annual average price.
We have used an allocation of capacity costs to Vernon's TOU periods based on the results of
a reliability model (loss of load probability) of the California market that SCE presented in its most
recent general rate case. The following Table 4 shows the resulting energy and capacity TOU
allocation factors, as well as a set of factors that combines the two with a weighting of 74% energy,
26% capacity.
Table 4: MarQinal F.npro„ n"d 'MTT
Period
Energy
Capacity
Energy & Capacity
Jul -Sep — On
1.41
7.96
3.13
Jul -Sep — Mid
1.23
2.11
1.46
Jul -Sep — Off
0.94
0.93
0.94
May, Jun, Oct — On
1.15
3.33
1.72
May, Jun, Oct — Mid
1.09
1.03
1.08
May, Jun, Oct — Off
0.80
0.43
0.70
Nov- Apr — On
1.20
0.38
0.98
Nov- Apr — Mid
1.08
0.46
0.92
Nov- Apr — Off
0.90
0.11
0.69
The Design of TOU Rates. Our design of TOU rates for the GS-I, Residential, and
Pumping classes is straightforward. These classes current have a single energy charge; the GS-1
energy charge also varies by season. We begin with Vernon's combined marginal energy and capacity
costs, by TOU period. We then add a constant amount to the marginal cost in each TOU period until
the average rate for each class (weighted by the TOU profile of that class) equals the current average
rate for that class (not including customer or meter charges, which remain separate). In this way,
revenue neutrality is achieved — for each class, the expected class average rate is the same for both the
standard rate and the TOU option. Further, the use of a constant adder to each TOU rate preserves
the marginal cost -based differences between the rates in the various TOU periods.
Vernon's residential rate appears to be heavily subsidized. As a result, the TOU results have
very low off-peak rates, and large differences between summer / spring on -peak rates and the rates in
other time periods. We strongly recommend simplifying the residential TOU rate design to have just
two TOU periods — (1) a summer / spring on -peak period (1 p.m. to 7 p.m. weekdays from May
through October) and (2) all remaining hours. This is similar to the simplified residential TOU rates
Crossborder Energy
TOURate Study for Vernon
July 16, 2007
Page 6
used by a number of other California electric utilities.
The GS-2 rate includes a demand charge. As the present GS-2 demand charge ($11.37 per
kW -month) is quite close to Vernon's marginal capacity cost ($12.63 per kW -month), we propose
only changing the energy component of the GS-2 rate. The energy portion of the GS-2 TOU rate is
determined by adding a constant amount to Vernon's marginal energy costs in each TOU period, such
that the resulting TOU rates produce the same average rate as the energy component of the existing
GS-2 rate.
Table 5 shows our design of TOU rates for the GS-2, GS-1, Residential, and Pumping
classes, and Table 6 demonstrates that these TOU rates are revenue neutral.
Crossborder Energy
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TOU Rate Study for Vernon
July 16, 2007
Page 7
Customer and Meter Charges. We do not propose to change Vernon's existing customer
charges for the GS-2, GS-I, Residential, and Pumping classes.
TOU rates need to recover the additional costs associated with the more sophisticated metering
required to implement TOU rates. SCE's and LADWP's residential and commercial TOU rates
include the additional metering charges shown in Table 7 below:
Table 7: SCF'.v and 7.AnWP'v Tnrr AJ i _ /-1 ,
Customer Class
Rate Schedule(s)
TOU Meter Charge ($/meter/day)
SCE Medium Commercial
GS-2 (TOU options)
$0.55
SCE Small Commercial
TOU-GS-I
$0.23
SCE Residential
TOU-D-I and TOU-D-2
$0.10
SCE Pumping
PA-2
$0.55
LADWP Residential
R-1 (TOU option)
$0.19 *
LADWP Small Commercial
n-
A-1 (TOU option)
$0.10 *
�, G rtc.enieneut service cnarge in LAvwp s YUU rate, compared to the
corresponding non-TOU rate.
Vernon's capital costs to provide TOU meters may be higher than SCE's, due to Vernon's
much smaller customer base, but we expect that Vernon can offer lower financing costs than SCE.
Vernon will need to obtain bids from meter vendors, assess the expected useful life of TOU meters, and
calculate financing costs to detemune its monthly TOU meter charge.
Some utilities require customers to make a one-time, up -front payment to cover the cost of the
TOU meter. This can create a significant barrier to customer choice of optional TOU rates, by
presenting the potential TOU customer with a long pay -back period. We do not recommend that
Vernon require an upfront payment for the TOU meter.
The costs shown in Table 7 above are for basic TOU meters that have the capability to record
consumption in a limited number of TOU periods. Much more sophisticated meters are becoming
widely available, as Vernon may be aware. The California investor -owned utilities (IOUs) are making
major investments in advanced metering infrastructure (AMD that will include significant additional
functionality through the installation of new "smart" meters. These meters will have capabilities for
remote meter reading, data communication, outage detection and restoration, dynamic pricing, and
facilitating demand response programs. The California IOUs maintain that the benefits of AMI will
almost completely offset the costs of the advanced meters. The costs and benefits of Vernon
implementing advanced metering for its smaller customers is beyond the scope of this study.
Crossborder Energy
TOU Rate Study for Vernon
July 16, 2007
Page 8
VII. Summary of Proposed TOU Rates
Table 8 summarizes the components of the new optional TOU rates for the GS-2, GS-1,
Residential, and Pumping customer classes.
Table 8:
GS-2
GS-1
Residential
PA-1
Customer Charge ($ per month)
NA
8.21
1.76
1.17 (per hp)
Demand Charge ($/kW)
11.368
NA
NA
NA
TOU Meter Charge ($/meter/day)
-0.55
-0.23
-0.10
-0.55
Energy Charges (OkWh):
Summer On
9.41
28.17
15.91
27.79
Summer Mid
8.35
15.04
3.77
14.66
Summer Off
6.71
10.96
3.77
10.58
Spring/Fall On
7.90
17.11
15.91
16.73
Spring Fall Mid
7.59
12.05
3.77
11.67
Spring/FallOff
5.88
9.08
3.77
8.70
Winter On
8.19
11.29
3.77
10.91
Winter Mid
7.52
10.79
3.77
10.41
Winter Off
6.50
9.05
3.77
8.67
..t,Y...,...,,a11 oLldlrus iuueut nuison rates presentee in Table 7 above.
VIII. Future Updates to TOU Rates
The TOU rates shown in Table 8 are consistent with and revenue neutral to Vernon's current
rate design, and are ready for adoption by the City. We anticipate that Vernon will want to update
these TOU rates when Vernon revises its other rates, as it may do when our rate design study is
finalized. The process described above can be used to accomplish this. In our further work on
Vernon's electric rate design, we will include revisions to these new TOU rate schedules as
appropriate.
Please do not hesitate to contact us with questions about this study.
cc; Study workpapers
Crossborder Energy
City of Vernon
General Guidelines for the Interconnection of
Customer -Owned Solar Generating Facility
L Introduction
This document is intended to be a general overview of City of Vernon's (COV)
current technical requirements for interconnection of Customer Generator (CG)
distributed generation to COV distribution system. It is not intended to be relied
on to determine the interconnection requirements for any Facility. City of Vernon
does not design, engineer or install generating systems for its customers. COV is
also not able to recommend specific contractors or equipment suppliers.
In order to properly interconnect the proposed distributed generators, certain
protective equipment (relays, circuit breakers, etc.) must be installed. These
devices ensure that faults or other abnormalities initiate prompt and appropriate
disconnection of the Facility from the COV System. Protective equipment
requirements depend on the plan of service. Significant issues that could affect
these requirements include:
• The configuration of the Facility.
• The Point of CG Connection to the power system.
• The level of existing service and protection to adjacent facilities (including
those of other COV customers).
In addition, certain modifications and/or additions to the COV System may be
required for Facility interconnection. Each individual request for interconnection
must result in a protection system consistent with these technical requirements.
COV makes the final determination as to the protective devices and identifies
modifications and/or additions required by the Facility. COV works with
Customer to achieve an installation that meets the CG's and COV's requirements.
COV cannot assume any responsibility for protection of the Customer Generator's
Facility. Customer are solely responsible for protecting their equipment in such a
manner that faults, imbalances, or other disturbances on the COV System do not
cause damage to the Facility facilities.
1
2. Generation Source
This standard addresses inverter -based interconnection. The end conversion of the
connection to the COV distribution system must be into 60 Hz alternating current.
An inverter is approved (certified) equipment for connection to COV distribution
system of it meets one of the following two criteria:
It is UL-1741 certified, and on the California Energy Commission's (CEC)
approved inverter list. This list is accessible via a link:
htt ://www.energy.ca gov/distgen/interconnection/certification html
It is on the GEC's "Emerging Renewable Rebate Program" list. This is accessible
via the link:
http://www.consumerenergycenter org/erprebate/eli ig'ble inverters html
In general, Customer Generator Facility consist of photovoltaic electricity -
generating modules, electrical controls, inverter(s), automatic disconnect devices,
manual disconnect devices, and wiring to connect all of the above to COV electric
distribution system at COV meter. Customer represents that the Facility shall be
as shown on Exhibit A attached hereto.
3. Parallel Operation
A parallel system is defined as one in which the Customer's generation can be
connected to a bus common with the COV's distribution system. A transfer of
power between the two systems is a direct and often desired result. A
consequence of such parallel operation is that the parallel generator becomes an
electrical part of COV distribution system that must be considered in the electrical
protection of the COV system.
4. Generation Design Requirements
4.1 Customer's Facility, and all portions of it used to provide or distribute electrical
power and parallel interconnection with COV's distribution equipment, shall be
designed, installed, constructed, operated, and maintained in compliance with this
General Guidelines.
4.2 The Facility shall conform to all applicable solar electrical generating system
safety and performance standards established by the National Electrical Code
(NEC), the Institute of Electrical and Electronics Engineers (IEEE), accredited
testing laboratories such as Underwriters Laboratories, and applicable building
codes.
2
4.3 The Facility shall meet the following specific design requirements:
(a) It shall automatically detect and isolate from the COV source without any
intentional delay within five cycles under the following conditions:
1. Overvoltage +5 percent above 240 volts on AC supply
2. Undervoltage -5 percent below 240 volts on AC supply
3. Overfrequency - 1 % above 60 Hz on AC supply
4. Underfrequency — 1 % below 60 Hz on AC supply
5. AC overcurrent relay, circuit breaker, or internal fusing that will operate
when the AC current is greater than the full load current.
(b) Inverter output harmonic distortion shall meet IEEE 519 standards.
(c) In the event of inverter control failure, the DC contactor must return to the
normally open condition.
(d) A readily accessible, lockable, visible -break isolation device such as a
disconnect switch acceptable to COV clearly labeled "Solar Generator
Disconnect Switch" and conspicuously located shall be provided and
maintained by Customer.
(e) The inverter must be tested for islanding and the test result confirmed in writing
by COV.
(f) The Facility shall have the capability to withstand voltage and current surges in
accordance with the environments defined in IEEE Std C62.41.2-2002 or IEEE
Std C37.90.1.2002 as applicable.
(g) The circuit feeding the inverter must be clearly identified inside the electrical
service panel.
(h) The Facility paralleling -device shall be capable of withstanding 220% of the
Distribution system rated voltage.
(i) The Facility shall have telemetering capabilities, per COV discretion, to the
extent that less intrusive and/or more cost effective options for providing the
necessary data in real time are not available.
5. Specific Requirements
1. A Customer Generator Facility will meet all applicable safety and performance
standards established in the California State Building Code. The standards will be
consistent with the applicable standards established by the National Electrical
Code, the Institute of Electrical and Electronics Engineers, and Underwriters
9
Laboratories or other similarly accredited laboratory. The Customer Generator
Facility must also be in compliance with the applicable provisions of Schedule
No. NM.
2. The Customer Generator is responsible for obtaining all necessary government
approvals relating to its Customer Generator.
3. The Customer Generator is responsible for all costs associated with its facility and
is also responsible for all costs related to any modifications to the facility that may
be required by COV for purposes of safety and reliability.
4. City -approved switching equipment capable of isolating the Customer Generator
Facility from COV's distribution system will be provided by the Customer
Generator and will be accessible to the City at all times.
5. COV maintains the right to approve the facilities for interconnection, and to
inspect the facilities at any time and for any reason.
6. COV maintains the right to disconnect, without liability, the Customer Generator
for issues relating to safety and reliability.
7. COV will not be liable directly or indirectly for permitting or continuing to allow
an attachment of a Customer Generator Facility, or for the acts or omissions of the
Customer Generator that cause loss or injury, including death, to any third party.
8. COV will not be liable directly or indirectly for permitting or continuing to allow
an attachment of a Customer Generator Facility, or for the acts or omissions of the
Customer Generator that cause loss or injury, including death, to any third party.
9. Customer shall not add generation capacity in excess of the Nameplate rating
initially agreed upon, or otherwise modify the Generating Facility without the
prior written permission from COV.
10. Customer shall not commence parallel operation of the generator facility until
written approval of the interconnection facilities has been given by COV. Such
approval shall not be unreasonably withheld. COV shall have the right to have
representatives present at the initial testing of Customer's protective apparatus,
final inspection made by COV Building Inspectors, and during the initial Facility
start-up.
M
6. Maintenance and Permit
Customer shall obtain any governmental authorizations and permits required for
the construction and operation of the solar -electric generating facility and
interconnection facilities and shall maintain all facilities in a safe and prudent
manner and in conformance with all applicable laws and regulations including,
but not limited to, COV's Guidelines for Interconnection of Customer Owned
Solar Generating Facility.
Customer shall reimburse COV for any and all losses, damages, claims, penalties,
or liability it incurs as a result of Customer's failure to obtain or maintain any
governmental authorizations and permits required for construction and operation
of Customer's generating facility.
7. Access to Premises
COV may enter Customer Generator premises:
(a) to inspect, at all reasonable hours, Customer's protective devices and read
or test meter; and
(b) to disconnect, without notice the interconnection facilities if, in COV's
opinion, a hazardous condition exists and such immediate action is
necessary to protect persons, or COV's facilities, or property of others
from damage or interference caused by Customer's solar -electric facilities,
or lack of properly operating protective devices.
8. Disconnection, Interruption or Reduction of Deliveries
a. COV shall not be obligated to accept or pay for, and may require Customer
to interrupt or reduce, deliveries of as -available energy:
(a) When necessary in order to construct, install, maintain, repair, replace,
remove, investigate, or inspect any of its equipment or any part of its
system; or
(b) If COV determines that curtailment, interruption, or reduction is
necessary because of emergencies, forced outages, Force Majeure, or
compliance with prudent electrical practices.
b. Whenever possible, COV shall give Customer reasonable notice of the
possibility that interruption or reduction of deliveries may be required.
During electrical emergencies, it may be required to disconnect the
generator from the City's system. Therefore, the disconnecting device shall
be capable of being accessed quickly and conveniently 24 hours a day, 7
E
days a week by City personnel without obstacles or requiring those seeking
access to obtain keys, special permission, or security clearances, unless
other arrangements for access are mutually agreed upon by both parties.
c. Notwithstanding any other provisions of this Agreement, if at any time COV
determines that either:
(a) the facility may endanger COV personnel, or
(b) the continued operation of Customer's facility may endanger the
integrity of COV `s electric system, COV shall have the right to
disconnect Customer's facility from COV `s electric system. Customer's
facility shall remain disconnected until such time as COV is satisfied
that the conditions(s) referenced in (a) or (b) of this Section have been
corrected.
9. Monitoring and Control
a. Telemetry Requirements
COV system Dispatching requires telemetry data for the integration of
new generation resources. This typically consists of the continuous
telemetering of kW quantities and hourly transmission of the previous
hour's Wh from the Facility to the COV load dispatching and control
center. The net Facility output, which is the Facility generation less the
station service load and step-up losses, is normally telemetered.
The following includes specific requirements based on Facility size:
i. Telemetry is required when the output of the Facility entering the
COV Load Control Area is 25 KW or greater: For this case,
telemetry of real power and energy (kW, kWh), and reactive power
(kVAr, kVArh) is normally required.
ii. For Facilities below 25 KW, COV determines telemetry needs on a
case -by -case basis. Note that should an existing plant expand to
over 25 KW, telemetry is required for the entire plant output.
b. Supervisory Control and Data Acquisition (SCADA)
Requirements
Interconnection may require COV SCADA control and status indication of
the power circuit breakers and associated isolating switches used to
G
connect COV to the Facility. SCADA indication of real and reactive
power flows and voltage levels are also required. SCADA control of
breakers and isolating switches that are located at the Generation Site is
not normally required; however, status indication may be necessary.
A SCADA Remote Terminal Unit (or PLC) will be installed at the
interconnection facility, 25 KW or larger, with the necessary interface to
connect it to COV's communications system. This system will provide
telemetering and control.
The minimum information which will be remotely monitored with the
telemetering equipment is listed as follows:
Watts in/out
Vars in/out
Amps
KWhr and kVARhr
Line voltage at interconnection
Interconnection breaker status/control
Phase angle across the interconnection power circuit breaker
10. Revenue Metering Arrangement
a. Revenue and Net Metering Requirements for Billing Data
Metering shall be bi-directional to record reactive flow to or from the Facility
as well as Generation out of the Facility and Station Service (if any) from
COV system into the Facility.
Facility meters will be considered, subject to COV approval, if the metering
and Net -metering functions are performed by an authorized non-COV party.
Three -element, three-phase, four -wire meters shall be used on grounded
power systems. Two -element, three-phase, three -wire meters can be used on
ungrounded power systems.
b. Meter Accuracy
Watt-hour meters shall be calibrated to ±0.1 % accuracy at unity power factor
for both full load and light load. Watt-hour meters shall also be calibrated to
±0.3% accuracy for 0.5 power factor at full load. VAr-hour meters shall have
±0.2% accuracy at unity power factor and ±0.6% accuracy at 0.5 power factor.
Full load is defined as nominal voltage, 100% meter current rating. Light load
is normal voltage, 10% meter current rating.
7
11. SUBMIITALS REQUIRED
1. Completed Interconnection Request Form.
2. Completion of Interconnection Application Form.
3. Copy of City of Vernon Building Permit Application.
4. Electric Single line Diagram.
5. Detailed equipment list with model numbers where applicable.
6. Site Plan showing location of major Solar Generating Facility
relative to property lines and building footprints.
7. Solar Generating Facility electric specifications relative
requirements outline by COV.
8. Generating Facility Details.
components
to design
9. Peak output calculation showing the number of panels multiplied by the
individual panel PTC output rating and adjusted for inverter efficiency using
published data from the CEC web site.
M.
NOTICE OF PUBLIC HEARING
The City of Vernon will conduct a Public Hearing which
you may attend.
PLACE: Vernon City Hall
City Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
DATE AND TIME: Monday, August 6, 2007, at 10:00 a.m.,
or as soon thereafter as the matter may
be heard
PURPOSE: To determine whether to adopt Time of
Use Rate Study, Time of Use Rates and
Time of Use Rate Schedules for electric
customers
Any interested person may attend and may make an oral
presentation to the City Council at the time of the
hearing, or may present written comments prior to the
hearing.
If you challenge the approval of the Time of Use Rate
Study, Time of Use rates and Time of Use Rate Schedules for
electric customers or any provision thereof in court, you
may be limited to raising only those issues you or someone
else raised at the hearing described in this notice or in
written correspondence delivered to the City of Vernon at,
or prior to, the meeting.
The hearing may be continued or adjourned to a stated
time and place without further notice of a public hearing.
Dated: Julv 24, 2007
AFFIDAVIT OF POSTING
I, Manuela Giron, City Clerk, of the City of Vernon do hereby certify
that on the 24th day of July 2007, I did post three copies of the
following:
NOTICE OF PUBLIC HEARING - to determine whether to adopt Time of
Use Rate Study, Time of Use Rates and Time of Use Rate Schedules
for electric customers.
On each of the following places, to wit: on the bulletin board outside
the main entrance to the City Hall of the City of Vernon located at
4305 Santa Fe Avenue; at the northwest corner of 38th Street and Santa
Fe Avenue; the northeast corner of Leonis Blvd., and Pacific Blvd.,
all in said City, there being no newspaper of general circulation
printed and publishe in the City of Vernon.
Date: -7IpS 077
Ma uela Giron
City Clerk
State of California )
)ss
County of Los Angels)
On July 26, 2007 before me, Marisol Trujillo ,
Notary Public, personally appeared Manuela Giron
personally known to me (or proven to me on the basis of satisfactory
evidence) to be the person(s) whose name(s) is/are subscribed to the
instrument and acknowledged to me that he/she/they executed the
same in his/her/their authorized capacity, and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal
visa TRUJILto
Com"llon # 1654907
Notary tbac . CO®tomb
Loa ArQSM County
MyC«nm. ft" Apr 16, 201
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: August 21, 2007
TO: Donal O'Callaghan, Director of Light & Power
FROM: Nelly Giron, City Clerk -WIA
RE: Resolution No. 9375 - A Resolution of the City Council of
the City of Vernon Determining to Adopt Time of Use Rates
for Certain Classes of Electric Service for Customers of the
City's Municipal Utility
Transmitted herewith is a copy of Resolution No. 9375, referenced
above, which was approved by City Council on August 6, 2007.
Thank you.
NG:dr
c: Resolution No. 9375