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HomeMy WebLinkAboutRESO 9458Resolution No. 9458 Resolution of the Council of the City of Palo Alto Adopting New Utility Electric Rate Schedule E-NEMA (Net Energy Metering Aggregation Rate), and Amending Utilities Rule and Regulations 2 and 29 RECITALS A. On May 5, 2014, and as required by state law, the Council of the City of Palo Alto adopted a Resolution determining that Net Energy Metering Aggregation (NEM Aggregation) will not result in increased cost-shifting to non-participants. B. In order to allow for customers to participate in NEM Aggregation, the City must update its Rules and Regulations and adopt a rate schedule to collect from NEM aggregation customers the incremental costs of billing and other special charges that may be associated with NEM aggregation. The Council of the City of Palo Alto hereby RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-NEMA (Net Energy Metering Aggregation Rate) is added as attached and incorporated. Utility Rate Schedule E-NEMA shall become effective September 16, 2014. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rule and Regulation 2 (Definitions and Abbreviations) is hereby amended as attached and incorporated. Utility Rule and Regulation 2, as amended, shall become effective September 16, 2014. SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rule and Regulation 29 (Net Energy Metering Service and Interconnection) is hereby amended as attached and incorporated. Utility Rule and Regulation 29 as amended, shall become effective September 16, 2014. SECTION 4. The Council finds that revenue derived from the authorized adoption enumerated herein shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo. II II II II II 0180057 jnn 09022014 SECTION 5. The Council finds that the amendment of Utility Rules and Regulations 2 and 29 does not meet the definition of a project pursuant to section 21065 of the California Environmental Quality Act (CEQA) and that adoption of a new rate schedule for NEM Aggregation for the purposes of meeting operating expenses is statutorily exempt from CEQA review pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff reports presented to Council, the Council incorporates these documents herein and finds that suffident evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: September 15, 2014 AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD NOES: ABSENT: ABSTENTIONS: APPROVED AS TO FORM: APPROVED: 0180057 jrm 09022014 NET ENERGY METERING AGGREGATION RATE UTILITY RATE SCHEDULE E-NEMA A. APPLICABILITY: This schedule applies to eligible Customers wishing to install an eligible Renewable Electric Generating Facility that is sized to offset separately metered electric loads on adjacent or contiguous properties that are solely owned, leased,. or rented by that eligible Customer, and who have signed an Net Energy Metering (NEM) Interconnection Agreement for NEM Aggregation. B. TERRITORY: Applies to locations within the service area of the City of Palo Alto. C. RATES: Per Account One Time Charges: Setup fee per Customer Account $20 Monthly Meter Charges: Ongoing maintenance and billing charge $5 D. SPECIAL CONDITIONS 1. Senate Bil1594 (Wolk 20 12) authorizes an eligible customer-generator with multiple meters to elect to aggregate the electrical load of the meters located on the property where the generation facility is located and on all property adjacent or contiguous to the property on which the generation facility is locat~d, if those properties are solely owned, leased, or rented by the eligible customer-generator, as provided. 2. An eligible customer-generator electing to aggregate the electrical load of multiple meters pursuant to this subdivision shall remit service charges for the cost of providing billing services to the electric utility that provides service to the meters. CITY OF PALO ALTO UTILITIES Issued by the City Council {End} Effective 9-16-2014 CITYOFPALOALTo Original Sheet No.E-NEMA-1 UTILITIES A. ABBREVIATIONS AMR AER Btu ccf CEC CPAU CPUC ERU FERC kVar kVarh kW kWh MW MMBtu NEC NEM NEMA NEMIA NRTL PAMC PSIG PST RWQCP UUT B. GENERAL DEFINITIONS Account DEFINITIONS AND ABBREVIATIONS Automated Meter Reading Advance Engineering Request British Thermal Unit Hundred Cubic Feet California Energy Commission City of Palo Alto Utilities RULE AND REGULATION 2 California Public Utilities Commission. Equivalent Residential Unit Federal Energy Regulatory Commission Kilovar Kilovar-hours Kilowatt Kilowatt-hour Megawatt One million Btus. National Electric Code, Latest Version Net Energy Metering Net Energy Metering Aggregation Net Energy Metering Interconnection Agreement Nationally Recogilized Testing Laboratory Palo Alto Municipal Code Per square inch gauge Pacific Standard Time Regional Water Quality Control Plant Utilities Users Tax The identification number in CPAU's billing system for Utility Services. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 1 Agency DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Any local, county, state or federal governmental body or quasi-governmental body, including, without limitation, the CPUC, the FERC and any joint powers agency, but excluding the City and any board, commission or council of the City. Aggregation Customer A Customer with a Renewable Electric Generating Facility wishing to install an eligible Renewable Electric Generating Facility that is sized to offset separately metered electric loads on adjacent or contiguous properties that are solely owned, leased, or rented by them, and who have signed the Net Energy Metering Interconnection Agreement for NEM Aggregation. Applicant An individual, corporation, partnership, Agency, or other legal entity or authorized agent of same, requesting CPAU to supply any or all of the following: 1. Electric Service 2. Water Service 3; Gas Service 4. Wastewater Collection 5. Refuse and Recycling Collection 6. Storm and Surface Water Drainage Service 7. Fiber Optics Service Or, an entity submitting an Application for Interconnection pursuant to Rule 27. Application (for Interconnection of Generating Facilities) An approved standard form (Load Sheet) submitted to CPAU for Interconnection of a Generating Facility. Beneficiary Account The Electric Service Meter(s) serviced by an Aggregation Customer's Generating Facility, as listed on the Aggregation Customer's NEMA-IA form. Bidweek Price Index The price reported in Natural Gas Intelligence "NGI's Bidweek Survey", California "PG&E Citygate" under the column "avg." for the calendar month. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 SheetNo2 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Billing Period Also "service period" or "billing cycle". The normal Billing Period for CPAU Customers is approximately 30 days, with variations occurring due to staff availability, holiday scheduling, field verification of Meter readings, or any other billing-related issues requiring additional investigation prior to issuance of the bill .. British Thermal Unit Also "Btu". The standard sub-unit of measurement comprising a Therm of natural Gas. One (1) Therm equals 100,000 Btu. Business Day Any day, except a Saturday, Sunday, or any day observed as a legal holiday by the City. Certification Test A test pursuant to Rule 27 that verities conformance of certain equipment with approved performance standards in order to be classified as Certified Equipment. Certification Tests are performed by NR TLs. Certification; Certified; Certificate The documented results of a successful Certification Test. Certified Equipment Equipment that has passed all required Certification Tests. Charge Any assessment, cost, fee, surcharge or levy for Utility Service other than a Tax, including metered and unmetered Utility Service, capacity, connections, construction, penalties, and mandated or required Customer financial obligations for Service. Charter The Charter of the City of Palo Alto. City Attorney The individual designated as the City Attorney of the City under Section 2.08.120 of Chapter 2.08 of Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City Attorney. City's Collector The Person(s) authorized under Section 5.20.040 of the Palo Alto Municipal Code to provide collection, CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 3 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 removal and disposal of solid waste and Recyclable Materials pursuant to one or more written contracts with the City. City Manager The individual designated as the City Manager of the City under Section 2.08.140 of Chapter 2.08 of Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the City · Manager. City of Palo Alto, or City The government of the City of Palo Alto, a chartered City and a municipal corporation duly organized and validly existing under the Laws of the State of California, with a principal place of business located at 250 Hamilton Avenue, Palo Alto, County of Santa Clara. For the purposes of these Rules and Regulations, the term "City" may include services provided by both the City of Palo Alto Utilities Department and the City of Palo Alto Public Works Department. City of Palo Alto Public Works Department (Public Works) The City Department responsible for providing Refuse and Recycling, Wastewater Treatment and Storm and Surface Water Drainage Utility Services. Other Utility Services such as Water, Gas, Electric, Wastewater Collection, and Fiber Optics are provided by the City of Palo Alto Utilities Department. City of Palo Alto Utilities Department (CPAU) · The City Department responsible for providing Water, Gas, Electric, Wastewater Collection and Fiber Optic Utility Services. Other Utility Services such as Refuse and Recycling, Wastewater Treatment and Storm and Surface Water Drainage are provided by the City of Palo Alto Public Works Department. Code The words "the Code" or "this Code" shall mean the Palo Alto Municipal Code. Commercial Service Commercial Utility Service is provided to businesses, non-profit organizations, public institutions, and industrial Customers. The term also applies to Utility Services through Master Meters serving multi- family Residential dwellings and common areas of multi-family facilities. Compostable Materials Organic materials designated by the City as acceptable for collection and processing. Cubic Foot of Gas ( ct) The quantity of Gas that, at a temperature of"sixty (60) degrees Fahrenheit and a pressure of 14.73 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 4 pounds per square inch absolute, occupies one cubic foot. Curtailment DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 The act of reducing or interrupting the delivery of natural Gas. Customer The Person, corporation, Agency, or entity that receives or is entitled to receive Utility Service(s) from the City of Palo Alto, or in whose name Service is rendered for a particular Account as evidenced by the signature on the Application, contract, or agreement for Service. In the absence of a signed instrument, a Customer shall be identified by the receipt of any payment of bills regularly issued in the name of the Person, corporation, or Agency regardless of the identity of the actual user of the Utility Service(s). Customer-Generator: An "eligible customer-generator," as that term is defined by the California Public Utilities Code section 2827, as the same may be amended from time to time. Dark Fiber A Fiber Optic cable provided to end-users or resellers by CPAU without any of the light transmitters,. receivers, or electronics required for telecommunications over the Fiber. Infrastructure for Fiber Optic activation is provided by the reseller or end-user. Dark Fiber Infrastructure Components of the CP AU Fiber Optic Distribution System required to provide Service to Customers (licensees}, that are attached, owned, controlled or used by the City, located overhead or underground within the Public Right-of-Way, the Public Utility Easements and Leased Service Properties. Dedicated Distribution Transformer A Distribution Transformer that is dedicated to serving a single premise. Demand The highest rate of delivery of Electric energy, measured in Kilowatts (kW) or kilovolt amperes (kVA) occurring instantaneously or registered over a fixed time period (normally fifteen minutes unless otherwise specified within a monthly billing cycle). Demand Charge An electrical Charge or rate that is applied to a metered Demand reading expressed in Kilowatts to compute a Demand Charge component of a Customer's Electric bill. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 5 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Demarcation Point The Demarcation Point for a project shall be the Customer side of the panel onto which the CPAU Fiber terminates within the Customer Premises, unless otherwise specified in the Proposal for Dark Fiber Services. Distribution Senrices Includes, but is not limited to, Utility Service provided by the Distribution System and other Services such as billing, meter reading, administration, marketing, and Customer Services. Does not include Services directly related to the Interconnection of a Generating Facility as per Rule 27. Distribution System The infrastructure owned and operated by CPAU which is capable of transmitting electrical power, other than Interconnection Facilities, or transporting Water, Wastewater, or Gas within the City of Palo Alto. The Electric Distribution System transmits power from the City's Interconnection with PG&E to CPAU's Meter located on the Customer's Premises. The Gas Distribution System transports Gas from PG&E receiving stations to CPAU's Meter located on the Customer Premises. The Water Distribution System transports Water from the San Francisco Water Department receiving stations and CPAU wells to the meter located on the Customer Premises. The Wastewater Collection System transports sewage from the Customer's Premises to the Water Quality Control Plant. Effluent Treated or untreated Wastewater flowing out of a Wastewater treatment facility, sewer, or industrial outfall. Electric, Electric Senrice Utility Service provided to residents and business owners in the City of Palo Alto consisting of generation, transmission, and distribution of electrical power for retail use. Electric Service is provided by the City of Palo Alto Utilities Department. Emergency An actual or imminent condition or situation, which jeopardizes CPAU's Distribution System Integrity. Emergency Senrice Electric Service supplied to, or made available to, Load devices which are operated only in Emergency situations or in testing for same. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 6 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Energy Services Energy commodity and any applicable ancillary Services used to generate and transport such commodity from its origin to the City's Point of Receipt. May also mean the sale of value added Services associated or related to the Provision and/or usage of energy commodity. Equivalent Residential Unit (ERU) This is the basic unit for computing storm and surface water drainage fees. All single-family Residential properties are billed the number ofERU's specified in the table contained in Utility Rate Schedule D-1, according to parcel size. All other properties have ERU's computed to the nearest 1110 ERU using this formula: No. OfERU =Impervious Area (sq. ft.) I 2,500 sq. ft. Fiber Optic, Fiber Optic Service A solid core of optical transmission material. Fiber Optic Service that is provided by the City of Palo Alto Utilities Department is referred to as Dark Fiber. · Fiber Optic Backbone The high-density portion of the Dark Fiber Infrastructure installed and owned by the City. Force Majeure The occurrence of any event that has, had or may have an adverse effect on the design, construction, installation, management, operation, testing, use or enjoyment of the City's Utility Services, which is ·beyond the reasonable control of the parties and which event includes, but is not limited to, an· Act of God, an irresistible superhuman cause, an act of a superior governmental authority,. an act of a public enemy, a labor dispute or strike or a boycott "Yhich could not be reasonably contemplated by the City or Customer affected thereby, a defect in manufactured equipment (including, but not limited to, the Dark Fibers), fire, floods, earthquakes, or any other similar cause. Function Some combination of hardware and software designed to provide specific features or capabilities. Its use, as in Protective Function, is intended to encompass a range of implementations from a single- purpose device to a section of software and specific pieces of hardware within a larger piece of equipment to a collection of devices and software. Gas Any combustible gas or vapor, or combustible mixture of gaseous constituents used to produce heat by burning. It shall include, but not be limited to, natural gas, gas manufactured from coal or oil, gas obtained from biomass or from landfill, or a mixture of any or all of the above. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 7 Gas, Gas Service DEFINITIONS AND ABBREVI ATIONS RULE AND REGULATION 2 Utility Service provided to residents . procurement, transmission d d' . ~d busmess owners in the Cit f Palo Alto Utilities Dep~eannt IstributJOn of Gas for retail use. Gas Se~ic~ i:p~o ~dltdo bconsisti~g of . .ovi e y the City of Generating Facility All Generators, electrical wires, equipment and other fl T . · purpose of producing Electric power. rhls includes ~~ Itlfs owned. or prov~ded by Producer for the Generating Facility that is the subject of a Net Energy Ms~ ~ or wmd Ind turbme ~enewable Electric Rule and Regulation 29. e enng an terconnection Agreement and Generator A devi~e converting mechan_ical, chemical or solar energy into electrical energy, including all of its protectt~e and .c~ntrol FunctiOns and structural appurtenances. One or more Generators c · Generating Facthty. ompnse a Gross Nameplate Rating; Gross Nameplate Capacity . The total gross generating capacity of a Generator or Generating Facility as designated by the manufacturer(s) of the Generator(s). Initial Review The review by CPAU, following receipt of an Application, to detennine the following: (a) whether the Generating Facility qualifies for Simplified Interconnection; or (b) if the Generating Facility can be made to qualify for Interconnection with a Supplemental Review determining any additional requirements. Inspector The authorized Inspector, agent, or representative of CPAU. Interconnection; Interconnected The physical connection of a Generating Facility in accordance with the requirements of the City's Utilities Rules and Regulations so that Parallel Operation with CPAU's Distribution System can occur (has occurred). In:terconneetion Agreement An agreement between CP AU and the Producer providing for the Interconnection of a Generating Facility that gives certain rights and obligations to effect or end Interconnection. For the purposes of the City's Utilities Rules and Regulations, the Net Energy Metering and Interconnection Agreement (for CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 8 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 NEM and NEM Aggregation Customers), and the Power Purchase Agreements authorized by the City Council may be considered as Interconnection Agreements for purposes of defining such term. Interconnection Facilities The electrical wires, switches and related equipment that are required in addition to the facilities required to provide Electric Distribution Service to a Customer to allow Interconnection. Interconnection Facilities may be located on either side of the Point of Common Coupling as appropriate to their purpose and design. Interconnection Facilities may be integral to a Generating Facility or provided separately. Interconnection Study A study to establish ·the requirements for Interconnection of a Generating Facility with CPAU's Distribution System. Internet Exchange Any Internet data center for telecommunications equipment and computer equipment for the purposes of enabling traffic exchange arid providing commercial-grade data center services. Island; Islanding A condition on CPAU's Electric Distribution System in which one or more Generating Facilities deliver power to Customers using a portion of CPAU's Distribution System that is electrically isolated from the remainder ofCPAU's Distribution System. Junction A location on the Dark Fiber Infrastructure where equipment is installed for the purpose of connecting communication cables. Junction Site The area within the Transmission Pathway at which a Junction is located. Kilovar (kVar) A unit of reactive power equal to 1 ,000 reactive volt-amperes. Kilovar-hours (kVarh) The amount of reactive flow in one hour, at a constant rate ofK.ilovar. Kilowatt (kW) CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 SheetNo9 A unit of power equal to 1,000 watts. Kilowatt-hour (kWh) DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 The amount of energy delivered in one hour, when delivery is at a constant rate of one Kilowatt; a standard unit of billing for electrical energy. Law Any administrative or judicial act, decision, bill, Certificate, Charter, Code, constitution, opinion, order, ordinance, policy, procedure, Rate, Regulation, resolution, Rule, Schedule, specification, statute, tariff, or other requirement of any district, local, municipal, county, joint powers, state, or federal Agency, or any other Agency having joint or several jurisdiction over the City of Palo Alto or City of Palo Alto Utilities or Public Works Customers, including, without limitation, any regulation or order of an official or quasi-official entity or body. Licensed Fibers One or more fibers comprising a part of the Dark Fiber Infrastructure that are dedicated to the exclusive use of the Customer under the Provisions of the Dark Fiber License Agreement, Proposal to Dark Fiber Services Agreement and the Utilities Rules and Regulations. Licensed Fibers Route A defined path of Licensed Fibers that is identified by specific End Points. Load(s) The Electric power Demand (kW) of the Customer at its Service Address within a measured period of time, normally 15 minutes; or the quantity of Gas required by a Customer at its Service Address, measured in MMBtu per Day. Main Wastewater Line Any Wastewater line not including a building connection (Service) sewer. Master-metering Where CP AU installs one Service and Meter to supply more than one residence, apartment dwelling unit, mobile home space, store, or office. Maximum Generation For a customer with a non-utility generator located on the customer's side of the Point of Common Coupling, the Maximum Generation for that non-utility generator during any billing period is the maximum average generation in kilowatts taken during any 15-minute interval in that billing period CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 10 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 provided that in case the generator output is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. Meter . The instrument owned and maintained by CPAU that is used for measuring either the Electricity, Gas or Water delivered to the Customer. Metering The measurement of electrical power flow in kW and/or energy in kWh, and, if necessary, reactive power in kVar at a point, and its display to CPAU as required by Rule 27. Metering Equipment All equipment, hardware, software including Meter cabinets, conduit, etc., that are necessary for Metering. Meter Read The recording of usage data from Metering Equipment. Minimum Charge The least amount for which Service will be rendered in accordance with the Rate Schedule. Momentary Parallel Operation The Interconnection of a Generating Facility to the Distribution System for one second (60 cycles) or less. Nationally Recognized Testing Laboratory (NRTL) A laboratory accredited to perform the Certification Testing requirements under Rule 27. Net Electricity Consumer A Customer-Generator whose Generating Facility produces less electricity than is supplied by CP AU d~ng a particular period, as such definition may otherwise be modified or supplemented by any definition in California Public Utilities Code section 2827(h)(2), as the same may be amended from time to time. Net Energy Metering Net Energy Metering means measuring the difference between the electricity supplied through CPAU's Electric utility Distribution System and the electricity generated by the customer-generator's facility and delivered to CPAU's Electric utility Distribution System over a specified twelve-month period. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet Noli Net Generation Metering DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Metering of the net electrical power of energy output in kW or energy in kWh, from a given Generating Facility. This may also be the measurement of the difference between the total electrical energy produced by a Generator and the electrical energy consumed by the auxiliary equipment necessary to operate the Generator. Net Nameplate Rating The Gross Nameplate Rating minus the consumption of electrical power of a Generator or Generating Facility as designated by the manufacturer(s) of the Generator(s). Net Surplus Customer-Generator A Customer-Generator who's Generating Facility produces more electricity than is supplied by CPAU, during a particular period, as such definition may otherwise be modified or supplemented by any definition in California Public Utilities Code section 2827(h)(3), as the same may be amended from time to time. Net Surplus Electricity Compensation A per kilowatthour rate offered by CP AU to the Net Surplus Customer-Generators (excluding Aggregation Customers) for net surplus electricity, as such definition may otherwise be modified or supplemented by any definition in California Public Utilities Code section 2827(b)(8), as the same may be amended from time to time. Non-Islanding Designed to detect and disconnect from an Unintended Island with matched Load and generation. Reliance solely on under/over voltage and frequency trip is not considered sufficient to qualify as Non- Islanding. Occupied Domestic Dwelling Any house, cottage, flat, or apartment unit having a kitchen, bath, and sleeping facilities, which is occupied by a Person or Persons. Parallel Operation The simultaneous operation of a Generator with power delivered or received by CPAU while Interconnected. For the purpose of this Rule, Parallel Operation includes Qnly those Generating Facilities that are Interconnected with CPAU's Distribution System for more than 60 cycles (one second). CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 12 Performance Test, Performance Tested DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 After the completion of any Fiber Interconnection work, the City will conduct a Perfprmance Test of each Fiber constituting a part of the proposed leased fibers to determine its compliance with the Performance Specifications. Performance Specifications These specifications will include, but not be limited to, criteria relating to end-to-end optical time domain reflectometer data plots that identify the light optical transmission losses in each direction along the leased fibers whenever the testing is possible, measured in decibels at a wavelength of 1310 or 1550 nanometers for singlemode Fiber, as a Function of distance, measured in kilometers. Person Any individual, for profit corporation, nonprofit corporation, limited liability company, partnership, limited liability partnership, joint venture, business, family or testamentary trust, sole proprietorship, or other form of business association. PG&E Citygate The PG&E Citygate is the point at which PG&E's backbone transmission system connects to PG&E's local transmission system. Point of Common Coupling (PCC) The transfer point for electricity ·between the electrical conductors of CP AU and the electrical conductors of the Producer. Point of Common Coupling Metering Metering located at the Point of Common Coupling. This is the same Metering as Net Generation Metering for Generating Facilities with no host load. Point of Delivery (POD) Unless otherwise specified, the following definitions apply: For Electric, that location where the Service lateral conductors connect to the Customer's Service entrance equipment; for. overhead Services, the POD is at the weather-bead connection; for under-ground Services, the POD is located at the terminals ahead of or at the Meter; for multiple Meter arrangements with connections in a gutter, the POD is at the Meter terminals (supply-side); for multiple Meter arrangements in a switchboard, the POD is typically at the connectors in the utility entrance section; for Natural Gas, the POD is the point(s) on the Distribution System where the City delivers natural Gas that it has transported to the Customer. Point of Interconnection CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 13 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 The electrical transfer point between a Generating Facility and the Distribution System. This may or may not be coincident with the Point of Common Coupling. Point of Service (POS) Where CPAU connects the Electric Service lateral to its Distribution System. For Fiber Optics Service, this is where CPAU connects the Fiber Service to the backbone. This point is usually a box located in or near the street or sidewalk and can be in the Public Right-of-Way. This point is at a mutually agreed upon location established at the time of installation. Pole Line Overhead wires and overhead structures, including poles, towers, support wires, conductors, guys, studs, platforms, cross anns braces, transformers, insulators, cutouts, switches, communication circuits, appliances attachments, and appurtenances, located above ground and used or useful in supplying Electric, communication, or similar or associated Service. Power Factor The percent of total power delivery (kVA) which does useful work. For billing purposes, average Power Factor is calculated from a trigonometric function of the ratio of reactive kilovolt-ampere-hours to the Kilowatt-hours consumed during the billing month. Power Factor is a ratio that reflects the reactive power used by a Customer.. CPAU maintains an overall system Power Factor above 95% to reduce distribution system losses caused by low Power Factor. Power Factor Adjustment CPAU must install additional equipment to correct for Customers that maintain a low Power Factor, and may make a Power Factor Adjustment to a Customer's bill to account for those costs and the additional energy costs and losses incurred by CPAU due to the Customer's low Power Factor. Premises All structures, apparatus, or portion thereof occupied or operated by an individual(s), a family, or a business enterprise, and situated on an integral parcel of land undivided by a public street, highway, or railway. Primary Service CPAU Electric distribution Service provided to a Customer's Premises at a voltage level equal to or greater than 1000 volts. Producer The entity that executes an Interconnection Agreement with CPAU. The Producer may or may not own CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 14 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 or operate the Generating Facility, but is responsible for the rights and obligations related to the Interconnection Agreement. Proposal for Dark Fiber Services A project-specific Service agreement that acts as a supplemental document for the Dark Fiber License · Agreement. This Service agreement shall include the proposed Interconnection fees, applicable Fiber licensing fees, term of the Service, and summary of licensed Fiber elements. Protective Function(s) The equipment, hardware and/or software in a Generating Facility (whether discrete or integrated with other Functions) whose purpose is to protect against Unsafe Operating Conditions. Provision Any agreement, circumstance, clause, condition, covenant, fact, objective, qualification, restriction, recital, reservation, representation, term, warranty, or other stipulation in a contract or in Law that defines or otherwise controls, establishes, or limits the performance required or permitted by any party. Prudent Utility Practices The methods, protocols, and procedures that are currently used or employed by utilities to design, engineer, select, construct, operate and maintain facilities in a dependable, reliable, safe, efficient and economic manner. Public Right-of-Way . The areas owned, occupied or used by the City for the purposes of furnishing retail and/or wholesale Electricity, Gas, Water, Wastewater, Storm and Surface Water Drainage, Refuse and recycling or communications commodity and/or distribution Service, and the means of public transportation, to the general public, including but not limited to, the public alleys, avenues, boulevards, courts, curbs, gutters, lanes, places, roads, sidewalks, sidewalk planter areas, streets, and ways. Public Utility Easements The areas occupied or used by the City for the purpose of providing Utility Service to the general public, and all related Services offered by the City's Utilities Department and/or Public Works Department, the rights of which were acquired by easements appurtenant or in gross, or are other interests or estates in real property, or are the highest use permitted to be granted by the nature of the City's interest in and to the affected real property. This term incorporates all public Service easements for Utility Services that have been recorded by the City with the Recorder of the County of Santa Clara, California. Public Works Department CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 15 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 See City of Palo Alto Public Works Department. Rate Schedule One or more Council-adopted documents setting forth the Charges and conditions for a particular class or type of Utility Service. A Rate Schedule includes wording such as Schedule number, title, class of Service, applicability, territory, rates, conditions, and references to Rules. Recyclable Materials Materials designated by the City as acceptable for recycling collection and processing. Renewable Electric Generating Facility A Generating Facility eligible for NEM under California Public Utilities Code section 2827 et seq. as the same may be amended from time to time. Reserved Capacity For a customer with one or more non-utility generators located on the customer's side of the Point of Common Coupling, the Reserved Capacity for each billing period is the lesser of 1) the sum of the Maximum Generation for that period for all non-utility generation sources; or 2) the maximum average customer demand in kilowatts taken during any 15-minute interval in the billing period provided that in case the load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. Residential Service Utility Service provided to separately metered single family or multi-family, domestic dwelling. Rules and Regulations See Utilities Rules and Regulations Scheduling Coordinator An entity providing the coordination of power schedules and nominations to effect transportation and distribution of Gas, Electric power and energy. Secondary Service CPAU Electric distribution Service provided to a Customer's Premises at a voltage level less than 1000 volts. Service(s) UtilitY Services offered by the City of Palo Alto include Electric, Fiber Optics, Gas, Water, Wastewater Collection services provided by the Utilities Department (CPAU); and Refuse and Recycling, CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 16 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Wastewater Treatment, and Storm and Surface Water Drainage Services provided by the Public Works Department. Service Address The official physical address of the building or facility assigned by CPAU,s Planning Department, at which Customer receives Utility Services. Service Charge A fixed monthly Charge applicable on certain Rate Schedules that does not vary with consumption. The Charge is intended to recover a portion of certain fixed costs. Service Drop The overhead Electric Service conductors from the last pole or other aerial support to and including the splices, if any, connecting to the service entrance conductors at the building or other structure. Or, in the case of Fiber Optic Drops, the overhead Fiber Optics cable from the last pole or other aerial support to the building or other structure to and including the te~ination box. Services or Service Lines Facilities ofCPAU, excluding transformers and Meters, between CPAU's infrastructure and the Point of Delivery to the Customer. Service Territory The geographic boundaries within the City of Palo Alto limits served by the physical Distribution System of the CPAU. Short Circuit (Current) Contribution Ratio (SCCR) The ratio of the Generating Facility's short circuit contribution to the short circuit contribution provided through CPAU's Distribution System for a three-phase fault at the high voltage side of the distribution transformer connecting the Generating Facility to CPAU's system. Simplified Interconnection An Interconnection conforming to the minimum requirements as determined under Rule 27, Section I. Single Line Diagram; Single Line Drawing A schematic drawing, showing the major Electric switchgear, Protective Function devices, wires, Generators, transformers and other devices, providing sufficient detail to communicate to a qualified engineer the essential design and safety of the system being considered. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No 17 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Special Facilities See CPAU's Rule and Regulation 20 governing Special Facilities. Splice A point where two separate sections of Fiber are physically connected. Standard Refuse Container A Standard Refuse Container shall have the meariing described in the Palo Alto Municipal Code. A Standard Container shall also include a wheeled container with a capacity of not to exceed 32 gallons. Standby Service Back~up Energy Services provided by CP AU. Storm and Surface Water Drainage Utility Service provided to residents and business owners in the City of Palo Alto. Storm and Surface Water Drainage Service is provided by the City of Palo Alto Public Works Department. Supplemental Review A process wherein CPAU further reviews an Application that fails one or more of the Initial Review Process screens. The Supplemental Review may result in one of the following: (a) approval of Interconnection; (b) approval of Interconnection with additional requirements; ·or (c) cost and schedule for an Interconnection Study. System Integrity The condition under which a Distribution System is deemed safe and can reliably perform its intended Functions in accordance with the safety and reliability rules ofCPAU. Tax Any assessment, Charge, imposition, license, or levy (including any Utility Users Tax) and imposed by any Agency, including the City. Telemetering The electrical or electronic transmittal of Metering data in real-time to CPAU. Temporary Service Service requested for limited period of time or of indeterminate duration such as, but not limited to, Service to provide power for construction, seasonal sales lots (Christmas trees), carnivals, rock crushers CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9~16~2014 Sheet No 18 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 or paving plants. Temporary Service does not include Emergency, breakdown, or Standby Service. Tberm A Therm is a unit of heat energy equal to 100,000 British Thermal Units (Btu). It is approximately the energy equivalent of burning 100 cubic feet (often referred to as 1 ccf) of natural Gas. Since Meters measure volume and not energy content, a Therm factor is used to convert the volume of Gas used to its heat equivalent, and thus calculate the actual energy use. The Therm factor is usually in the units therms/ccf. It will vary with the mix of hydrocarbons in the natural Gas. Natural Gas with a higher than average concentration of ethane, propane or butane will have a higher Therm factor. Impurities, such as carbon dioxide or nitrogen lower the Therm factor. Transfer Trip A Protective Function that trips a Generating Facility remotely by means of an automated communications link controlled by CPAU. Transmission Pathway Those areas of the Public Right-of-Way, the Public Utility Easements and the Leased Service Properties in which the Dark Fiber Infrastructure is located. Trap Any approved equipment or appliance for sealing an outlet from a house-connection sewer to prevent the escape of sewer Gas from a main line through a building connection (service) sewer. Underground Utility District An area in the City within which poles, overhead electric or telecommunication wires, and associated overhead structures are prohibited or as otherwise defmed in Section 12.04.050 of the PAMC. Unintended Island The creation of an Island, usually following a loss of a portion of CPAU's Distribution System, without the approval ofCPAU. Unsafe Operating Conditions Conditions that, if left uncorrected, could result in harm to personnel, damage to equipment, loss of System Integrity or operation outside pre-established parameters required by the Interconnection Agreement. Utilities Department See City of Palo Alto Utilities Department. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issu~d by the City Council Effective 9-16-2014 Sheet No 19 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Utilities Director The individual designated as the Director of Utilities Department under Section 2.08.200 of Chapter 2.08 of Title 2 of the Palo Alto Municipal Code, and any Person who is designated the representative of the director of utilities .. Utility(ies) Rules and Regulations, Rules and Regulations The compendium of Utilities Rules and Regulations prepared by the City's Utilities and Public Works Departments and adopted by ordinance or resolution of the Council pursuant to Chapter 12.20 of the Palo Alto Municipal Code, as amended from time to time. Utility(ies) Service(s), Service(s) Electric, Fiber optics, Water, Gas, Wastewater collection services provided by the City of Palo Alto Utilities Department (CPAU) and Refuse and Recycling, Wastewater Treatment and Storm and Surface Water Drainage services provided by the City of Palo Alto Public Works Department. Utilities User Tax (UUT) City of Palo Alto Tax imposed on Utility Charges to a Water, Gas, and/or Electric Service user. This may include Charges made for Electricity, Gas, and Water and Charges for Service including Customer Charges, Service Charges, Standby Charges, Charges for Temporary Services, Demand Charges, and annual and monthly Charges, as described in Chapter 2.35 of the Palo Alto Municipal Code. Wastewater Utility Service provided to residents and business owners in the City of Palo Alto. Wastewater Utility Services include collection and treatment of Wastewater. Wastewater Collection Service is provided by the City of Palo Alto Utilities Department, and Wastewater Treatment Service is provided by the City of Palo Alto Public Works Department. Water Utility Service provided to residents and business owners in the City of Palo Alto for retail use. Water Service is provided by the City of Palo Alto Utilities Department. Water Column (WC) Pressure unit based on the difference in inches between the heights of water columns as measured in a manometer. 6" we = 0.217 psi; 7" we = 025 psi. Yard Trimmings Yard Trimmings means those materials defmed in Section 5.20.010 of the Palo Alto Municipal Code. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet NolO CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 (END) Effective 9-16-2014 Sheet No 21 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 A. APPLICABILITY B. c. This Rule and Regulation is applicable to any City ofPalo Alto Utilities ("CP AU") Customer that is an eligible Customer-Generator under the California Public Utilities Code that desires to participate in Net Energy Metering ("NEM") or Net Energy Metering Aggregation (''NEM Aggregation") with a Renewable Electric Generation Facility, not to exceed 1 MW on premises within CPAU service territory to operate in parallel with the CP AU distribution system. SCOPE Notwithstanding the requirements and charges set forth in this Rule 29, CPAU reserves the right to impose any requirements set forth in Rule 27 that are additional to or more stringent than those set forth in this Rule 29, including those related to billing and charges, on NEM and NEM Aggregation Customers to the maximum extent permitted by state law (Cal. Pub. Util. Code§ 2827 et seq., as the same may be amended from time to time). CUSTOMER ELIGmiLITY 1. General Requirements. In order to be eligible to participate in NEM or NEM Aggregation, a Customer must: a. Be a Customer-Generator, pursuant to the definition set forth in Rule and Regulation 2. b. Construct, design, install, interconnect, operate and maintain a Renewable Electric Generation Facility (or combination of such facilities) that is: i. On the Customer-Generator's owned, leased or rented Premises, ii. Of a total capacity of not more than one (1) MW (or 1,000 kW), iii. Intended primarily to offset part or all of the Customer-Generator's own Electric Seriice requirements, and iv. Is not used to sell to any third person, or otherwise provide Electric Service to any real estate parcel, premise, or location other than those that CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 SheetNo. 1 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 are the subject of the Customer-Generator's Interconnection Agreement (lA) l. Additional Requirements for NEM Aggregation. In addition to those eligibility requirements set forth in Section 1(a) of this Rule and Regulation 29, a CPAU Customer is only eligible to participate in NEM Aggregation where: a. The Customer-Generator elects to aggregate Electric Service of the meters located on the property where the Renewable Electric Generation Facility is located across properties that are adjacent or contiguous with that property; and b. All properties across which the Customer-Generator elects to aggregate are solely owned, leased, or rented by the eligible Customer. D. BILLING FOR NEM 1. General Rules a. Twelve Month True Up Period i. At the end of each twelve-month period following: aa. The date of Interconnection of the Renewable Electric Generating Facility, or bb. For a Customer with a date of Interconnection of the Generating Facility commencing prior to February 1, 2010, the day after CPAU's receipt of the Customer's net surplus electricity election form ii. CPAU will determine whether the Customer-Generator is a Net Electricity Consumer or a Net Surplus Customer-Generator during that period. b. CPAU will bill the Customer-Generator for the electricity used during that twelve- month period, whether the Customer-Generator is considered a Net Electricity Consumer or a Net Surplus Customer-Generator. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No.2 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 c. CPAU shall provide the Customer-Generator with net electricity consumption information with each monthly bill; that information shall include either the current monetary balance owed to CPAU or the current amount of excess electricity produced since the last twelve-month peri~d. d. If the Customer-Generator terminates the contractual relationship with CPAU, then CPAU shall reconcile the Customer-Generator's consumption and production of electricity during any part of the twelve-month period following the last annual settlement and reconciliation, using the procedures as outlined in this Rule. 2. Monthly Billing a. For Net Electricity Consumers i. Medium and large commercial Customer-Generators will be required to pay any balances due to CPAU on a monthly basis. ii. Except as annual billing is provided for in this Rule 29, residential and small commercial Customer-Generators will default to owing balances due on a monthly basis, but may request annual billing as allowed for in California Public Utilities Code sections 2827 (g) and (h)(2)( c). iii. Standby service charges for backup or maintenance electric service will be waived, provided that the Customer-Generator qualifies for participation in net energy metering at the Service Address b. For Net Sw:plus Customer-Generators i. For a Customer-Generator who has submitted an affirmative election, CP AU will provide either Net Surplus Electricity Compensation in accordance with Electric Utility Rate Schedule E-NSE-1, for any net surplus electricity generated during the prior twelve-month period, or bill credits resulting from net surplus electricity generation to be applied against electricity-related charges subsequently incurred by the Customer-Generator. ii. If the Customer-Generator fails to make an affirmative election to receive CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No.3 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 Service pursuant to Net Surplus Electricity Compensation, then CPAU shall retain any excess electricity (expressed in Kilowatt-hours) generated during the prior twelve-month period, and it shall not be obligated to pay Net Surplus Electricity Compensation, nor shall it be obligated to allow the application of net surplus electricity credits to be used against Energy charges subsequently incurred by the Customer-Generator. iii. CP AU will allow a Customer to change the election option once each settlement period provided that the Customer provides notice to CP AU one month prior to the beginning of new settlement period. 3. Annual Billing a. Customers may request annual billing as allowed for in California Public Utilities Code sections 2827 (g) and (h)(2)( c) .. b. Bill payment will not be considered delinquent, unless the Customer-Generator does not pay a final billing statement within twenty (20) days of the date of issuance of that final billing statement. c. For annually billed residential or small commercial Customer-Generators, the net balance of money owed to CPAU will be carried forward until the end of the twelve- month period. d. To accommodate annual billing, a Customers Electricity Service may be transferred to a separate Utility Account so as not to interrupt monthly billing for other recurring, non-electric Utility Services. 4. Additional Billing Rules Applicable to NEM Aggregation Customers a. For each monthly billing period, the amount of electricity generated from the Aggregation Customer's Generating Facility during that billing period will be accounted for on a per kWh basis. b. The Aggregation Customer's energy consumption will be totaled for each Beneficiary Account that is listed to receive kwh energy credits from the CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No.4 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 Generating Facility per the Customer's Interconnection Agreement. c. Each Beneficiary Account will be allotted a portion of the Generating Facilities · energy equal to that Beneficiary Accounts relative share of Aggregation Customer's total usage for the billing period. d. The total amount of energy produced by a Generating Facility will be allotted in each billing period. e. The billing for Beneficiary Accounts will be the same as NEM customers, as outlined in Section 2(a) above, with the restriction that no Beneficiary Account is eligible for Net Surplus Electricity Compensation in accordance with Electric Utility Rate Schedule E-NSE-1, but may only carry forward energy credits. D. APPLICATION AND INTERCONNECTION PROCESS 1. APPlication Process CPAU shall process a request for the establishment ofNEM and Interconnection from the Customer-Generator within the time period not exceeding that for Customers requesting new Electric Service; provided, however, that such time period will not exceed thirty (30) days from the date of (1) receipt of a completed Application form for Net Energy Metering Service and Interconnection from the Customer-Generator, (2) Electric inspection clearance from CP AU in accordance with California Public Utilities Code 2827( c )(2), and (3) building inspection clearance from the City of Palo Alto Building Inspection Division. IfCPAU is unable to process the request within the thirty-day period or other applicable period, then CPAU shall notify the Customer-Generator of the reason for its inability to process the request and the expected completion date. 2. Interconnection Process The Customer-Generator will be required to sign either an Interconnection Agreement, as applicable, or an agreement containing substantially the terms and conditions of the above referenced agreements and agree to be subject to applicable Utility Rates and Charges and Utility Rules and Regulations in order to be eligible for NEM Service provided by CP AU. CP AU will make available all necessary forms and contracts for NEM Service for download CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No.5 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 from the Internet. D. GENERATING FACDTY DESIGN AND OPERATING REQUIREMENTS 1. Safety Standards The facility will meet all applicable federal, state and local safety and performance standards, including those established by the National Electrical Code (NEC), the Institute of Electrical and Electronic Engineers, and accredited testing laboratories such as Underwriters Laboratories (UL) and, as applicable, the rules of the California Public Utilities Commission . regarding safety and reliability. The Customer-Generator whose facility meets those standards and rules will not be required to install additional controls, perform or pay for additional tests, or purchase additional liability insurance. 2. Design Standards In addition to the requirements more generally set forth in section D.1, Customer-Generator will: a. Conform to the applicable National Electric Code (NEC) Standards [NEC 690] and applicable building codes. b. Have a dedicated circuit from the inverter to the Service panel with a circuit breaker or fuse [NEC 690-64(b)(l)]. c. Have an overcurrent device at the Service panel will be marked to indicate solar power source [NEC 690-64(b)(4)]. d. Establish the following minimum specifications for Parallel Operation with CPAU's Electric utility Distribution System. e. Install a visible break, lockable AC disconnect switch in the dedicated circuit to the inverter. This switch will be located where it is easily accessible by CPAU personnel and will be equipped with a CPAU padlock [CPAU Rule and Regulation 27]. f. Use an inverter that is UL 1741-appoved and have the following specifications for Parallel Operation with CPAU's Electric utility Distribution System: CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No.6 E. METERING NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 i. Inverter output will automatically disconnect from CPAU's utility source upon the loss ofCPAU's utility voltage and will not be reconnected until at least five (5) minutes after normal utility voltage and frequency have been restored [UL 1741]. ii. Inverter will automatically disconnect from CPAU's utility source within 120 cycles (2 seconds) ifCPAU's utility voltage isles than 106 volts or greater than 132 volts on a 120~volt base [UL 1741]. iii. Inverter will automatically disconnect from CPAU's utility source within 10 cycles (0.17 seconds) if CP AU's utility frequency fluctuations is less than 59.3 hertz or greater than 60.5 hertz [UL 1741] cycle. iv. Inverter output will comply with IEEE 519 standards for harmonic distortion [CPAU Rule and Regulation 27]. Wit. NEM may be accomplished by using a single Meter capable of registering the flow of electricity in two different directions. If the Customer~Generator's existing Meter is not capable of measuring the flow of electricity in two directions, then the Customer~Generator shall be responsible for all expenses involved in purchasing and installing a Meter that is able to measure electricity flow in two directions. 2. In lieu of one Meter, an additional Meter to monitor the flow of electricity in each,direction may be installed with the consent of the Customer~Generator, at the expense of CP AU. The additional Meter shall be used only to provide the information necessary to accurately bill or credit the Customer-Generator and/or to collect solar or wind Electric generating system performance information for research purposes. 3. Customer-Generator grants to CP AU, its officers, employees, agents and representatives the non-exclusive right of ingress and egress on, over and across the Premises upon reasonable prior notice for the purpose of inspecting and approving the installation and operation of the Facility and authenticating the accuracy of the meter(s ), or in the event of an emergency or in regard to a disconnection of the Facility, without notice, if in CP AU's Director of Utilities' sole judgment, a condition hazardous to life or property exists, and immediate action is necessary to protect life or property from damage or interference directly caused by the CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16~2014 SheetNo. 7 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 Equipment or as a result of the lack of properly operating protective devices. F. GENERAL REQUIREMENTS 1. Customer-Generator will obtain and maintain the required governmental authorizations, permits, and any policy or policies of insurance, including, without limitation, commercial general liability, property, and professional liability insurance, as may be required by applicable laws, subject only to subsection c below. 2. CP AU will not be obligated to accept or pay for, and it may require Customer-Generator to interrupt or reduce, the delivery of available energy generated by the Facility under the following: (a) whenever CPAU in its sole judgment determines that the interruption or reduction is necessary in order for CPAU to construct, install, maintain, repair, replace, remove, investigate, or inspect any part ofCPAU's electric utility distribution system; or (b) if CPAU determines that the interruption or reduction is necessary on account of an emergency, voluntary or involuntary outage, event of force majeure, or compliance with prudent electrical practices. 3. Notwithstanding any other provision of this Agreement, if CPAU determines that either (a) the operation of the Facility may threaten or endanger the health, safety or welfare of CPAU's personnel or CPAU's or its personnel's property, or (b) the continued operation of the Facility may endanger the operational integrity ofCPAU's electric utility distribution system, CPAU will have the right to temporarily or permanently disconnect the Facility from CPAU's electric utility distribution system upon the delivery of reasonable notice to Customer-Generator; provided, however, CP AU may act without giving prior notice to Customer-Generator, if CP AU determines that it is impracticable to provide the notice. The Facility will remain disconnected until such time as CPAU's Director of Utilities is reasonably satisfied that the conditions referred to in this subsection have been corrected or sufficiently addressed. 4. Customer-Generator will (a) maintain the Facility, which interconnects with CPAU's electric utility distribution system, in a safe and prudent manner and in conformance with all applicable laws, rules and regulations, including, without limitation, the requirements of this Section 3, and (b) obtain any governmental approvals, authorizations and permits required for the construction and operation of the Facility. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No.8 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 5. Customer-Generator will reimburse CP AU for any and all losses, damages, claims, penalties, or liability that CPAU may incur or sustain as a result of Customer-Generator's failure to obtain and maintain any and all governmental approvals, authorizations and permits that may be required for the construction, installation, operation, repair and maintenance of the Facility. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 9-16-2014 Sheet No.9