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HomeMy WebLinkAboutRESO 9558DocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 Resolution No. 9558 Resolution of the Council of the City of Palo Alto to Amend Utilities Rule and Regulations 2 and 29 RECITALS A. On October 26, 2015, the Council of the City of Palo Alto adopted a Resolution determining that Net Energy Metering (NEM) cap is 9.5 megawatts (MW). B. The City must update its Rules and Regulations in order to incorporate the NEM cap definition into the City's customer eligibility requirements for NEM . The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. 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 October_26.,_20.15_. _____________ _ SECTION 2. 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 2, as amended, shall become effective October 26, 2015. II II II II II II II II II II II II II 151015 jjs 01-0071 1 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 SECTION 3: The Council finds that the amendment of Utility Rules and Regulations 2 and 29 does not meet the California Environmental Quality Act's definition of a "project" under Public Resources Code Section 21065, thus no environmental review is required. INTRODUCED AND PASSED: October 26, 2015 AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH NOES: ABSENT : ABSTENTIONS: ATIEST: City Clerk APPROVED AS TO FORM: r-;:DocuSigned by: ~;:~~0~ Senior Deputy City Attorney 151015 jj s 01-0071 2 Mayor APPROVED: lj;~s~fF~ ~39E7298EB20640B City Manager (\ OocuSigned by: ~=~8~~~ Director of Utilities GOocuSigned by: £.~ Pm.,. B2ADE35ED7C5496 ... Director of Administrative Services DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 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 Recognized 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 10-26-2015 Sheet No 1 DocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Agency 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 Electrical Generation Facility wishing to install an eligible Renewable Electrical Generation 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 Service 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 10-26-2015 Sheet No 2 DocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 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 ofthe 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 verifies 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 10-26-2015 Sheet No 3 DocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 processing and disposal of solid waste, Compostable Materials 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 Service, 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 Service, 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. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 4 DocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Container Any receptacle used for storage of solid waste, Recyclable Materials, Compostable Materials or other materials designated by the City to be collected by the City's Collector. Examples of containers include carts, bins, compactors and drop boxes. Cubic Foot of Gas (cf) The quantity of Gas that, at a temperature of sixty (60) degrees Fahrenheit and a pressure of 14.73 pounds per square inch absolute, occupies one cubic foot. Curtailment 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 CPAU 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) CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 5 DocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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. 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 Services 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 Service 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. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 6 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Emergency Service Electric Service supplied to, or made available to, Load devices which are operated only in Emergency situations or in testing for same. 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 of ERU' 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 1/10 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 which 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. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 7 DocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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. Gas, Gas Service Utility Service provided to residents and business owners in the City of Palo Alto cons1stmg of procurement, transmission, and distribution of Gas for retail use. Gas Service is provided by the City of Palo Alto Utilities Department. Generating Facility All Generators, electrical wires, equipment, and other facilities owned or provided by Producer for the purpose of producing Electric power. This includes a solar or wind turbine Renewable Electrical Generation Facility that is the subject of a Net Energy Metering and Interconnection Agreement and Rule and Regulation 29. Generator A device converting mechanical, chemical or solar energy into electrical energy, including all of its protective and control Functions and structural appurtenances. One or more Generators comprise a Generating Facility. 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 determine 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 ofCPAU. 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). CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 8 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Interconnection Agreement An agreement between CPAU 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 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 and 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. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 9 DocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Kilovar-hours (kVarh) The amount of reactive flow in one hour, at a constant rate of Kilovar. Kilowatt (kW) A unit of power equal to 1,000 watts. Kilowatt-hour (kWh) 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 CPAU installs one Service and Meter to supply more than one residence, apartment dwelling unit, mobile home space, store, or office. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 10 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 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 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)(2), as the same may be amended from time to time. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 SheetNo 11 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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. Net Energy Metering Cap (NEM Cap) Five (5) percent of the historical system peak of 190 MW from 2006, or 9.5 MW, using the CEC's Alternating Current (AC) capacity rating. Where the CEC AC rating is not available, CPAU will multiply the inverter AC nameplate rating by 0.86. Net Generation Metering 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 CPAU 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 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 12 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 only those Generating Facilities that are Interconnected with CPAU's Distribution System for more than 60 cycles (one second). Performance Test, Performance Tested After the completion of any Fiber Interconnection work, the City will conduct a Performance 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 CPAU 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) CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 13 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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-head 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 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 arms 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 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 14 DocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 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, restnct10n, 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 Service 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. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 15 DocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 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. Refuse Service Refuse Service includes weekly collection, processing and disposal of materials properly deposited in the City Collector's provided Containers for solid waste, as well as weekly collection and processing of Recyclable Materials, weekly collection and processing of Compostable Materials, ongoing maintenance of the closed Palo Alto Landfill, zero waste programs, street sweeping service, the household hazardous waste program, and the annual Clean Up Day. Renewable Electrical Generation Facility A Generation 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 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 16 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 Service, 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 termination box. Services or Service Lines Facilities of CPAU, excluding transformers and Meters, between CP AU'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 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 17 DocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 System ofthe 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. 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 meaning 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 CPAU. 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. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective I 0-26-2015 SheetNo 18 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 of CPAU. 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 or paving plants. Temporary Service does not include Emergency, breakdown, or Standby Service. Therm 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. Total Rated Generating Capacity Total Rated Generating Capacity will be calculated as the sum of the rated generating capacity of all installed Renewable Electrical Generation Facilities participating in NEM or NEM Aggregation. The rated generating capacity for each individual Renewable Electrical Generation Facility participating in NEM or NEM Aggregation will be calculated as follows: 1. For Solar: For each Renewable Electrical Generation Facility that is a solar photovoltaic generating facility, CPAU will use the CEC's Alternating Current (AC) rating; or where the CEC AC rating is not available, CPAU will multiply the inverter AC nameplate rating by 0.86; and 2. For Non-Solar: For all other Renewable Electrical Generation Facilities, CPAU will use the CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 19 DocuSign Envelope 10: 85E04821 -6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 AC nameplate rating of the generating facility. 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 ofthe 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 defined in Section 12.04.050 ofthe 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. 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 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No 20 OocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 Service, 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= 0.25 psi. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council (END) Effective 10-26-2015 Sheet No 21 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 A. APPLICABILITY This Rule and Regulation is applicable to any City of Palo Alto Utilities ("CPAU") 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 Electrical Generation Facility, not to exceed 1 MW on premises within CPAU service territory to operate in parallel with the CPAU distribution system, so long as there is availability remaining within the NEM Cap as defined in Rule 2. B. 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). C. CUSTOMER ELIGIBILITY 1. General Requirements. In order to be eligible to patticipate 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 Electrical 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 Service requirements, and iv. Is not used to sell to any third person, or otherwise provide Electric CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No.1 DocuSign Envelope 10: 85E04821-6F5F-4299-9333-COFD6DB3F628 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 Service to any real estate parcel, premise, or location other than those that are the subject of the Customer-Generator's Interconnection Agreement (IA) c. Complete and provide CPAU with all required agreements, supporting documents, and any payments related to interconnection 2. NEM Cap. Customers remain eligible for NEM and NEM Aggregation until such time as the Total Rated Generating Capacity used by NEM and NEM Aggregation Customers combined reaches CPAU's NEM Cap. NEM is available on a first-come, first-served basis. Once the NEM Cap has been reached, NEM Service and Interconnection will be closed to new customers. 3. . Additional Requirements for NEM Aggregation. In addition to those eligibility requirements set forth in Section l(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 Electrical 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 oflnterconnection of the Renewable Electrical Generation Facility, or bb. For a Customer with a date of Interconnection of the Generating CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No.2 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 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. 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 period. d. If the Customer-Generator terminates the contractual relationship with CPA U, 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. e. For a Customer-Generator who has submitted an affirmative election, CPAU 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 settlement period, or bill credits resulting from net surplus electricity generation to be applied against electricity-related charges subsequently incurred by the Customer-Generator. f. If the Customer-Generator fails to make an affirmative election to receive Service pursuant to Net Surplus Electricity Compensation, then CPAU shall retain any excess electricity (expressed in Kilowatt-hours) generated during the prior twelve-month settlement 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. g. CPAU will allow a Customer to change the election option once each twelve-month CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No.3 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 settlement period provided that the Customer provides notice to CPAU one month prior to the beginning of new settlement period. 2. Monthly Billing a. Medium and large commercial Customer-Generators will be required to pay any balances due to CPAU on a monthly basis. b. 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). c. 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 d. For a Net Surplus Customer-Generator in a given month, any credits created will be carried forward to future months, to be used for future electric charges, until the end of the Customer-Generators Twelve Month True-Up 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, CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No.4 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 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 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. E. 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 CPAU in accordance with California Public Utilities Code 2827( c )(2), and (3) building inspection clearance from the City of Palo Alto Building Inspection Division. If CPA U is unable to process the request within the thirty-day period or other applicable period, then CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No.5 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 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 CPAU. CPAU will make available all necessary forms and contracts for NEM Service for download from the Internet. F. GENERATING FACILITY 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)]. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No.6 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 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 CPA U 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: G. METERING 1. 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 1 7 41]. ii. Inverter will automatically disconnect from CPA U' 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. Invetter will automatically disconnect from CPA U' s utility source within 1 0 cycles (0 .17 seconds) if CPAU' 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]. 1. 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 ofCPAU. 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. CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No.7 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 3. Customer-Generator grants to CPAU, 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 CPAU' 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 Equipment or as a result of the lack of properly operating protective devices. H. 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. CPAU 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 of CPAU' s electric utility distribution system; or (b) if CPA U 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 of CPAU' 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, CPAU may act without giving prior notice to Customer-Generator, ifCPAU 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 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 10-26-2015 Sheet No.8 DocuSign Envelope ID: 85E04821-6F5F-4299-9333-COFD6DB3F628 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 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. 5. Customer-Generator will reimburse CPAU 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 10-26-2015 Sheet No.9 Docu~ . .... •sECURED Certificate Of Completion Envelope Number: 85E048216F5F42999333COFD6DB3F628 Status: Completed Subject: Please DocuSign these documents: RESO 9558 to Modify RR2 and RR29 FINAL.pdf, RESO 9558-Attachme ... Source Envelope: Document Pages: 32 Certificate Pages: 5 AutoNav: Enabled Envelopeld Stamping: Enabled Record Tracking Status: Original 10/28/2015 3:53:45 PM PT Signer Events Jessica Mullan Jessica.Mullan@CityofPaloAito.org Jessica.Mullan@CityofPaloAito.org City of Palo Alto Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered ID: Lalo Perez Lalo. Perez@CityofPaloAito.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered ID: Valerie Fong Valerie.Fong@CityofPaloAito.org Utilities Director Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered ID: James Keene james.keene@cityofpaloalto.org City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 4/14/2015 5:40:07 PM PT I D: 44fe333a-6a81-4cb 7 -b 7 d4-9254 73ac82e3 In Person Signer Events Editor Delivery Events Signatures: 4 Initials: 0 Holder: Kim Lunt kimberly.lunt@cityofpaloalto.org Signature Using IP Address: 199.33.32.254 GDocuSigned by: £,1. PM~ 82AOF35ED7C5496 ... Using IP Address: 166.176.184.70 Signed using mobile rv;::·;~~ L 10583588F83E412 ... Using IP Address: 199.33.32.254 Using IP Address: 199.33.32.254 Signature Status Envelope Originator: Kim Lunt 250 Hamilton Ave Palo Alto , CA 94301 kimberly.lunt@cityofpaloalto.org IP Address: 199.33.32.254 Location: DocuSign Timestamp Sent: 10/28/2015 3:57:26 PM PT Viewed: 11/24/2015 8:58:57 AM PT Signed: 11/24/2015 8:59:31 AM PT Sent: 11/24/2015 8:59:33 AM PT Viewed: 11/24/2015 10:48:12 AM PT Signed: 11/24/201510:48:47 AM PT Sent: 11/24/2015 10:48:48 AM PT Viewed: 11124/2015 10:49:20 AM PT Signed: 11/24/2015 10:49:36 AM PT Sent: 11/24/2015 10:49:38 AM PT Viewed: 11/30/2015 11:48:46 PM PT Signed: 11/30/2015 11:48:53 PM PT Timestamp Timestamp