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HomeMy WebLinkAboutRESO 9619160502 jb 6053741 1 Resolution No. 9619 Resolution of the Council of the City of Palo Alto Adopting the Net Energy Metering Successor Rate, Utilities Rate Schedule E­EEC­1 (Export Electricity Compensation); Establishing the Net Energy Metering Transition Policy; and, Amending Rule and Regulation 2 (Definitions and Abbreviations) and Rule and Regulation 29 (Net Energy Metering and Interconnection) R E C I T A L S A. Net Energy Metering (NEM), is a billing arrangement that provides credit to customers for the full retail value of the electricity their system generates. B. State law, California Public Utilities Code Section 2827 et. seq., requires all electric utilities to offer NEM to eligible customers with distributed renewable generation up to a maximum cap. C.Cap is 9.5 megawatts (MW) as adopted by Council Resolution 9557. s are currently approximately 79% of the proposed 9.5 MW NEM Cap and staff estimates that the ap will be reached by the end of 2016. Once the NEM Cap is reached, NEM will be closed to new customers and the NEM Successor Rate will become available instead. D. Utilities refer to the terms and conditions for customer­sited, distributed renewable generation installed after the NEM cap has been reached as the NEM successor rate or program Successor Rate is defined by Utilities Rate Schedule E­EEC­1 (Export Electricity Compensation). The E­EEC­1 rate was developed in coordination with the may be established by the City Council through its electric utility rate­making authority and processes. E. Formally adopting a cost­based NEM Successor Rate (Rate Schedule E­EEC­1) in Palo Alto will promote greater market certainty and transparency for customers and renewable energy installers operating within the community, and is consistent with both NEM legislative and regulatory obligations and the Council­adopted Local Solar Plan to promote distributed solar projects. F. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges. Updates to Rule and Regulation 2 (Definitions and Abbreviations) and Rule and Regulation 29 (Net Energy Metering and Interconnection) are needed in order to implement the NEM Successor Rate and transition policy. The Council of the City of Palo Alto hereby RESOLVES as follows: DocuSign Envelope ID: CC724C3D-364B-4035-A4AF-31C9727F9A24 160502 jb 6053741 2 SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E­EEC­1 (Export Electricity Compensation) is hereby adopted as attached and incorporated. a) Utility Rate Schedule E­EEC­1 shall become effective July 1, 2016. b) The electricity export compensation rate approved by this resolution is based on a detailed analysis of the value of energy exported to the electric grid, including the energy, avoided capacity charges, avoided transmission and ancillary service charges, avoided transmission and distribution system losses, and environmental attributes and was service analysis. SECTION 2. The City Council makes the following findings regarding the establishment of a Net Energy Metering transition policy: 1) A Net Energy Metering transition policy which establishes a 20 year transition period and eligible facility expansion rules will promote regulatory certainty and transparenc and NEM Aggregation customers who have invested in solar PV systems, and for solar developers operating in Palo Alto. 2) Setting the transition period at 20 years from the time of eligible facility interconnection matches the transition period adopted by the California Public Utility Commission for investor­owned utilities, and is reasonably based on agreements, and third­party financing agreements. 3) Allowing eligible facility expansion up to a given threshold will permit existing NEM and NEM Aggregation customers and those installing eligible facilities or NEM Aggregation rate structure in the event that facility panels need replacement or minor expansion, and is broadly in­line with expansion policies in effect in other California utility service territories. SECTION 3. The City Council adopts the following NEM Transition Policy: A) Existing City of Palo Alto Utilities (CPAU) NEM and NEM Aggregation customers and CPAU NEM and NEM Aggregation customers who install eligible renewable electrical generation facilities within (Resolution 9557) shall remain eligible for Net Energy Metering under the terms and conditions set forth in California Public Utilities Code Section 2827 (effective as of for a 20­year transition period from the time of initial facility interconnection, and B) Existing CPAU NEM and NEM Aggregation customers and CPAU NEM and NEM Aggregation customers who install eligible renewable electrical generation may expand their eligible renewable electrical generation facilities by up to 10% of the Initial Interconnection Capacity while still remaining eligible for Net Energy Metering, even after the NEM cap has been reached. SECTION 4. 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 July 1, 2016. DocuSign Envelope ID: CC724C3D-364B-4035-A4AF-31C9727F9A24 160502 jb 6053741 3 SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rule and Regulation 29 (Net Energy Metering and Interconnection) is hereby amended as attached and incorporated. Utility Rule and Regulation 2, as amended, shall become effective July 1, 2016. // // // // // // // // // // // // // // // // // // // // // DocuSign Envelope ID: CC724C3D-364B-4035-A4AF-31C9727F9A24 160502 jb 6053741 4 SECTION 6. The adoption of Section 1 of resolution changing electric rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), 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 report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. The adoption of Sections 3, 4 and 5 of this resolution establishing a transition policy and amending Utility Rules and Regulations does Resources Code Section 21065, thus no environmental review is required. INTRODUCED AND PASSED: August 22, 2016 AYES: BERMAN, BURT, DUBOIS, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH NOES: ABSENT: FILSETH ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Utilities Director of Administrative Services DocuSign Envelope ID: CC724C3D-364B-4035-A4AF-31C9727F9A24 EXPORT ELECTRICITY COMPENSATION UTILITY RATE SCHEDULE E-EEC-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-2016 Sheet No.E-EEC-1 A. APPLICABILITY: This schedule applies in conjunction with the otherwise applicable rate schedules for each customer class. This schedule may not apply in conjunction with any time-of-use rate schedule. This schedule applies to Customer-Generators as defined in Rule and Regulation 2 who are either not eligible for Net Energy Metering or who are eligible for Net Energy metering but elect to take service under this rate schedule. B. TERRITORY: Applies to locations within the service area of the City of Palo Alto. C. RATE: The following buyback rate shall apply to all energy exported to the grid. Per kWh Export electricity compensation rate $0.07485 D. SPECIAL CONDITIONS 1. Metering equipment: Electricity delivered by CPAU to the Customer-Generator or received by CPAU from the Customer-Generator shall be measured using a meter capable of registering the The electrical power measurements will be used for billing the Customer-Generator. CPAU shall furnish, install and own the appropriate meter. 2. Billing: a. CPAU shall measure during the billing period, in kilowatt-hours, the energy delivered and received after the Customer-Generator serves its own instantaneous load. b.CPAU shall bill the Customer-Generator consumption charges for the energy delivered by CPAU to the Customer-Generator based on the Customer- applicable rate schedule. c. In the event the energy generated exceeds the energy consumed and therefore is received by CPAU, the Customer will receive a credit for all energy received by CPAU at the buyback rate designated in section C above. 3. Generation facilities shall adhere to Rule and Regulation 27: Generating Facility Interconnections. {End} (SGY7MKR)RZIPSTI-('''(&%%*'*% DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 1 A. ABBREVIATIONS AMR - Automated Meter Reading AER - Advance Engineering Request Btu - British Thermal Unit ccf - Hundred Cubic Feet CEC - California Energy Commission CPAU - City of Palo Alto Utilities CPUC - California Public Utilities Commission. ERU - Equivalent Residential Unit FERC - Federal Energy Regulatory Commission kVar - Kilovar kVarh - Kilovar-hours kW - Kilowatt kWh - Kilowatt-hour MW - Megawatt MMBtu - One million Btus. NEC - National Electric Code, Latest Version NEM - Net Energy Metering NEMA - Net Energy Metering Aggregation NEMIA - Net Energy Metering Interconnection Agreement NRTL - Nationally Recognized Testing Laboratory PAMC - Palo Alto Municipal Code PSIG - Per square inch gauge PST - Pacific Standard Time RWQCP - Regional Water Quality Control Plant UUT - Utilities Users Tax B. GENERAL DEFINITIONS Account Utility Services. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 1 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 A. ABBREVIATIONS AMR Automated Meter Reading AER Advance Engineering Request Btu British Thermal Unit ccf Hundred Cubic Feet CEC California Energy Commission CPAU Cityof Palo Alto Utilities CPUC California Public Utilities Commission. ERU Equivalent Residential Unit Federal Energy Regulatory Commission Kilovar Kilovar-hours kW Kilowatt kWh Kilowatt-hour MW Megawatt MMBtu One million Btus. NEC National Electric Code, Latest Version Net Energy Metering Net Energy Metering Aggregation Net Energy Metering Interconnection Agreement NRTL Nationally Recognized Testing Laboratory PAMC Palo Alto Municipal Code PSIG Per square inch gauge PST Pacific Standard Time RWQCP Regional Water Quality Control Plant UUT Utilities Users Tax B. GENERAL DEFINITIONS Account The identification number in CPAU’s billing system for Utility Services. (SGY7MKR)RZIPSTI-('''(&%%*'*% DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 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. (SGY7MKR)RZIPSTI-('''(&%%*'*% DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 3 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 verifies conformance of certain equipment with approved performance standards in order to be classified as Certified Equipment. Certification Tests are performed by NRTLs. 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 Cityof 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, (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 4 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 Cityof 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- familyResidential dwellings and common areas of multi-familyfacilities. Compostable Materials Organic materials designated by the City as acceptable for collection and processing. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 5 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 UtilityEasements 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) (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 6 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. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 7 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. Of ERU = Impervious Area (sq. ft.) / 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 anyother 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. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 8 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 consisting 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 Interconnection Capacity The maximum rated generating capacity of a Renewable Electrical Generation Facility eligible for Net EnergyMetering prior to the Total Rated Generating Capacity exceeding the NEM Cap. 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 of CPAU. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 9 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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). 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 maybe 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 of CPAU’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 Pathwayat which a Junction is located. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 10 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 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. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 11 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Master-metering Where CPAU 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 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 displayto 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 (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 12 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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. 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 multiplythe inverter AC nameplate rating by 0.86. Net Energy Metering Successor Program; Net Energy Metering Successor Rate The terms and conditions for Customer-Generators whose Renewable Electrical Generation Facilities are installed after the NEM cap has been reached, or Customers-Generators who are eligible for Net Energy Metering but elect to take service under the Net Energy Metering Successor Rate. The terms and conditions are defined by Utilities Rate Schedule E-EEC-1 (Export Electricity Compensation). 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 Facilityas 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. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 13 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Net Surplus Electricity Compensation A per kilowatt hour 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. This rate is applicable only to Customer-Generators who are eligible for Net Energy Metering and are subject to Rule and Regulation 29. 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 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. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 14 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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) 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 (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 15 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 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. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 16 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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. 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. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 17 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 UtilityService 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 UtilityServices. 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. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 18 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 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. 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. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 19 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Standby Service Back-up Energy Services provided by CPAU. Storm and Surface Water Drainage UtilityService provided to residents and business owners in the Cityof 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 reliabilityrules 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. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 20 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 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 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 defined 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 of CPAU. 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 (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 21 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 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 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 Cityof Palo Alto Utilities Department. Water Column (WC) (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued by the City Council Effective 7-1-2016 Sheet No 22 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Pressure unit based on the difference in inches between the heights of water columns as measured in a manometer. 6” WC = 0.217 psi; 7” WC = 0.25 psi. (END) (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued bythe City Council Effective 7-1-2016 Sheet No. 1 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- Generator eligible to participate in Net Energy Metering (“NEM”) or Net Energy Metering Aggregation (“NEM Aggregation”) via the use of a Renewable Electrical Generation Facility, not to exceed 1 MW, located on the Customer’s owned, leased, or rented premises within CPAU service territorythat will operate in parallel with the CPAU distribution system, so long as there is availabilityremaining 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 anyrequirements 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 bystate law (Cal. Pub. Util. Code § 2827 et seq., as the same maybe amended from time to time). C. CUSTOMER ELIGIBILITY 1.GeneralRequirements. Inorderto beeligibleto participateinNEMorNEMAggregation,a Customer must: a.BeaCustomer-Generator, 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 capacityof not more than one (1) MW (or 1,000 kW), iii.Intended primarilyto offset part or all of the Customer-Generator’s own Electric Service requirements, and (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued bythe City Council Effective 7-1-2016 Sheet No. 2 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 iv.Is not used to sell to any third person, or otherwise provide Electric Service to anyreal 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 anypayments related to interconnection. 2.NEM Cap. Customers remain eligible for NEM and NEM Aggregation until such time as the Total Rated Generating Capacityused byNEM 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. a.After the NEM Cap has been reached, Customer-Generators may increase the system capacity by a maximum of 10% of the Initial Interconnection Capacity. Customer-Generators that expand their system beyond this limit are no longer eligible for NEM and will be transitioned to the Net EnergyMetering Successor Rate. 3.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 propertywhere the Renewable Electrical Generation Facilityis 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 bythe eligible Customer. 4.NEM Transition Period. Customer-Generators within the NEM Cap remain subject to the requirements and charges set forth in this Rule 29 through a period of twenty (20) years from the original date of Interconnection of the eligible Renewable Energy Generating Facility. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued bythe City Council Effective 7-1-2016 Sheet No. 3 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 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 Electrical Generation Facility, or bb. For a Customer with a date of Interconnection of the Generating Facilitycommencingprior to February1, 2010, thedayafterCPAU’s receipt of the Customer’s net surplus electricityelection 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 monthlybill; 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 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. e. For a Customer-Generator who has submitted an affirmative election, CPAU will provide either Net Surplus Electricity Compensation in accordance with Electric UtilityRate Schedule E-NSE-1, for anynet surplus electricitygenerated during the (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued bythe City Council Effective 7-1-2016 Sheet No. 4 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 prior twelve-month settlement period, or bill credits resulting from net surplus electricity generation to be applied against electricity-related charges subsequently incurred bythe Customer-Generator. f. If the Customer-Generator fails to make an affirmative election to receive Service pursuant to Net Surplus ElectricityCompensation,thenCPAUshall retainanyexcess 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 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 monthlybasis. 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. 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, anycredits 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 (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued bythe City Council Effective 7-1-2016 Sheet No. 5 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 a.Customers may request annual billing. b.Bill payment will not be considered delinquent, unless the Customer-Generatordoes 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 balanceofmoneyowed to CPAUwillbecarriedforwarduntil theendofthetwelve- month period. d.To accommodate annual billing, a Customer’s ElectricityService maybetransferred to aseparateUtilityAccountso asnot to interruptmonthlybillingforotherrecurring, non-electric UtilityServices. 4.Additional Billing Rules Applicable to NEM Aggregation Customers a.For each monthlybilling period, the amount of electricitygenerated from the Aggregation Customer’s Generating Facilityduring that billing period will be accounted for on a per kWh basis. b.The Aggregation Customer’s electricity consumption will be totaled for each Beneficiary Account that is listed to receive kwh energy credits from the Generating Facilityper the Customer’s Interconnection Agreement. c.Each BeneficiaryAccount will be allotted a portion of the Generating Facilities energyequal to that BeneficiaryAccount’s relative share of Aggregation Customer’s total usage for the billing period. d.The total amount of energyproduced bya Generating Facilitywill be allotted in each billing period. e.The billing for BeneficiaryAccounts will be the same as NEM customers, as outlined in Section D.2(a), with the restriction that no BeneficiaryAccount is eligible for Net Surplus ElectricityCompensation in accordance with Electric UtilityRate Schedule E-NSE-1, but mayonly carry forward energycredits. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued bythe City Council Effective 7-1-2016 Sheet No. 6 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 E. APPLICATION AND INTERCONNECTION PROCESS 1.Application Process CPAU shall process a request for the establishment of NEM Service 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 MeteringService and Interconnection from the Customer-Generator, (2) Electricinspection clearance from CPAU, and (3) building inspection clearance from the City of Palo Alto BuildingInspection Division.If CPAUis unableto process therequest withinthethirty-day period or other applicable period, then CPAU shall notify the Customer-Generator of the reason foritsinabilityto 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 byCPAU. CPAUwill makeavailableall necessaryforms andcontracts forNEM Servicefordownload from the Internet. F. GENERATING FACILITY DESIGN AND OPERATING REQUIREMENTS 1.SafetyStandards The facilitywill meet all applicable federal, stateandlocalsafetyandperformancestandards, includingthoseestablished bythe National Electrical Code(NEC), the InstituteofElectrical and Electronic Engineers, and accredited testing laboratories such as Underwriters Laboratories (UL)and, asapplicable, the rules of the California PublicUtilitiesCommission 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 liabilityinsurance. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued bythe City Council Effective 7-1-2016 Sheet No. 7 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 2.Design Standards Inaddition to therequirements moregenerally setforth 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)(1)]. 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 followingminimum specifications for Parallel OperationwithCPAU’s Electric utilityDistribution 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 easilyaccessiblebyCPAUpersonnel 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 utilityDistribution System: i.Inverter output will automatically disconnect from CPAU’s utility source upon the loss of CPAU’s utilityvoltage 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 automaticallydisconnectfromCPAU’sutilitysourcewithin120 cycles (2 seconds) if CPAU’s utility voltage isles than 106 volts or greater than 132 volts on a 120-volt base [UL1741]. iii.Inverter will automaticallydisconnect from CPAU’s utilitysource within 10 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 complywith IEEE 519 standards for harmonic (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued bythe City Council Effective 7-1-2016 Sheet No. 8 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 distortion [CPAU Rule and Regulation 27]. G. METERING 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 electricityin two directions, then the Customer-Generator shall beresponsibleforall expensesinvolved in purchasingandinstallingaMeterthatisable to measure electricity flow in two directions. 2.In lieu of one Meter, an additional Meter to monitor the flow of electricityin each direction maybe installed with theconsent of the Customer-Generator, at the expense ofCPAU. The additional Metershall beused onlyto providetheinformation necessaryto accuratelybillor credit the Customer-Generator and/or to collect solar or wind Electric generating system performance information for research purposes. 3.Customer-Generator grants to CPAU, its officers, employees, agents and representativesthe non-exclusive right of ingress and egress on, over and across the Premises upon reasonable prior notice for the purpose of inspecting and approvingthe installation and operation ofthe Facilityand authenticating the accuracy of the Meter(s), or in the event of an emergencyor in regard to a disconnection ofthe Facility, withoutnotice,ifinCPAU’sDirectorofUtilities’ 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 anypolicyor policies of insurance, including, without limitation, commercial general liability, property, and professional liabilityinsurance, as may be required by applicable laws. 2.CPAU will not be obligated to accept or payfor, and it mayrequire Customer-Generator to interrupt or reduce, the deliveryof available energygenerated bythe Facilityunder the following: (a) whenever CPAU in its sole judgment determines that the interruption or reduction is necessaryin order for CPAU to construct, install, maintain, repair, replace, (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULES AND REGULATIONS Issued bythe City Council Effective 7-1-2016 Sheet No. 9 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 remove, investigate, or inspect anypart of CPAU’s electric utilitydistribution 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 anyother provision of this Agreement, if CPAU determines that either (a) the operation of the Facilitymay 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 Facilitymay endanger the operational integrityof CPAU’s electric utility distribution system, CPAU will have the right to temporarilyor permanently disconnect the Facilityfrom CPAU’s Electric UtilityDistribution System upon the deliveryof reasonable notice to Customer-Generator; provided, however, CPAU mayact without giving prior notice to Customer-Generator, if CPAU determines that it is impracticable to provide the notice. The Facilitywill remain disconnected until such time as CPAU’s Director of Utilities is reasonablysatisfied that the conditions referred to in this subsection have been corrected or sufficientlyaddressed. 4.Customer-Generator will (a) maintain the Facility, which interconnects with CPAU’s electric utilitydistribution 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 H. 5.Customer-Generator will reimburse CPAU for anyand all losses, damages, claims, penalties, or liabilitythat CPAU mayincur or sustain as a result of Customer-Generator’s failure to obtain and maintain anyand all governmental approvals, authorizations and permits that maybe required for the construction, installation, operation, repair and maintenance of the Facility. 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