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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 UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 1 DEFINITIONSAND ABBREVIATIONS RULEANDREGULATION2 A. ABBREVIATIONS AMR AutomatedMeterReading AER Advance EngineeringRequest Btu British Thermal Unit ccf HundredCubic Feet CEC CaliforniaEnergyCommission CPAU CityofPalo AltoUtilities CPUC CaliforniaPublic Utilities Commission. ERU EquivalentResidential Unit Federal EnergyRegulatoryCommission Kilovar Kilovar-hours kW Kilowatt kWh Kilowatt-hour MW Megawatt MMBtu One million Btus. NEC National ElectricCode,Latest Version NetEnergyMetering NetEnergyMeteringAggregation NetEnergyMeteringInterconnectionAgreement NRTL NationallyRecognizedTesting Laboratory PAMC PaloAlto Municipal Code PSIG Persquareinch gauge PST PacificStandardTime RWQCP RegionalWater QualityControl Plant UUT Utilities UsersTax B. GENERALDEFINITIONS Account Theidentificationnumber in CPAU’s billingsystem forUtilityServices. (SGY7MKR)RZIPSTI-('''(&%%*'*% DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil 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 theCity. 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 EnergyMetering InterconnectionAgreementforNEM Aggregation. Applicant An individual, corporation, partnership, Agency, or other legal entity or authorized agent of same, requestingCPAUto supplyanyorall of thefollowing: 1. ElectricService 2. WaterService 3. GasService 4. Wastewater Collection 5. RefuseService 6. Storm andSurface Water Drainage Service 7. FiberOptics Service Or,an entitysubmittinganApplicationfor Interconnectionpursuant to Rule 27. Application(forInterconnection of GeneratingFacilities) An approved standard form (Load Sheet) submitted to CPAU for Interconnection of a Generating Facility. BeneficiaryAccount The Electric Service Meter(s) serviced by an Aggregation Customer’s Generating Facility, as listed on the AggregationCustomer’sNEMA-IAform. Bidweek Price Index The price reported in Natural Gas Intelligence “NGI’s Bidweek Survey”, California “PG&E Citygate” underthecolumn“avg.” forthe calendarmonth. (SGY7MKR)RZIPSTI-('''(&%%*'*% DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 3 BillingPeriod 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.. BritishThermal Unit Also “Btu”. The standard sub-unit of measurement comprising a Therm of natural Gas. One (1) Therm equals 100,000Btu. Business Day Anyday, except a Saturday,Sunday,or anydayobserved asalegalholidaybythe City. Certification Test A test pursuant to Rule 27 that verifies conformance of certain equipment with approved performance standards in order to beclassified as CertifiedEquipment. CertificationTests areperformedbyNRTLs. Certification; Certified;Certificate Thedocumented resultsof asuccessfulCertificationTest. Certified Equipment Equipmentthat has passedall required Certification Tests. Charge Any assessment, cost, fee, surcharge or levy for UtilityService other than a Tax, including metered and unmetered Utility Service, capacity, connections, construction, penalties, and mandated or required Customer financial obligationsfor Service. Charter TheCharterof theCityofPalo Alto. CityAttorney 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 anyPerson who is designated the representative of the City Attorney. City’s Collector ThePerson(s) authorized underSection 5.20.040 ofthe Palo Alto Municipal Codetoprovidecollection, (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 4 DEFINITIONS AND ABBREVIATIONS RULEANDREGULATION2 processing and disposal of solid waste, Compostable Materials and Recyclable Materials pursuant to one ormorewrittencontractswith theCity. CityManager 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 anyPerson who is designated the representative of the City Manager. Cityof PaloAlto, orCity 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 theCityofPalo Alto PublicWorks Department. Cityof Palo Alto Public WorksDepartment(PublicWorks) 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, WastewaterCollection,and FiberOpticsareprovided bytheCityof PaloAlto Utilities Department. Cityof 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 andSurface WaterDrainageareprovidedbythe CityofPalo Alto PublicWorks Department. Code Thewords "theCode"or "thisCode"shall meanthe 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- familyResidentialdwellings andcommonareas ofmulti-familyfacilities. Compostable Materials Organic materials designated bythe Cityas acceptablefor collectionand processing. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 5 DEFINITIONS AND ABBREVIATIONS RULEANDREGULATION2 Container Anyreceptacleused forstorageof solid waste, RecyclableMaterials, CompostableMaterials orother materials designated bytheCityto be collectedbythe City’s Collector.Examples of containersinclude carts,bins, compactors and dropboxes. Cubic Footof Gas (cf) The quantity of Gas that, at a temperature of sixty (60) degrees Fahrenheit and a pressure of 14.73 pounds persquare inch absolute, occupiesone cubic foot. Curtailment Theactofreducingorinterruptingthe deliveryof natural Gas. Customer The Person, corporation, Agency, or entity that receives or is entitled to receive Utility Service(s) from the Cityof 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 bythe receipt of any payment of bills regularlyissued in the name of the Person, corporation,orAgencyregardless oftheidentityof the actual userofthe UtilityService(s). Customer-Generator: An “eligible customer-generator,” as that term is defined bythe California Public Utilities Code section 2827,as the samemaybeamended from timeto 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 activationis providedbythe reselleror 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,thePublic UtilityEasements and LeasedServiceProperties. Dedicated Distribution Transformer ADistributionTransformerthat is dedicatedto servingasinglepremise. Demand The highest rate of deliveryof Electric energy, measured in Kilowatts (kW) or kilovolt amperes (kVA) (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 6 DEFINITIONS AND ABBREVIATIONS RULEANDREGULATION2 occurring instantaneously or registered over a fixed time period (normally fifteen minutes unless otherwise specifiedwithin amonthlybillingcycle). DemandCharge An electrical Charge or rate that is applied to a metered Demand reading expressed in Kilowatts to compute aDemandChargecomponent ofaCustomer’sElectric 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 directlyrelatedtothe InterconnectionofaGeneratingFacilityas perRule 27. Distribution System The infrastructure owned and operated byCPAU which is capable of transmittingelectrical 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 theCustomer’s Premises to theWaterQualityControl 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 bythe CityofPalo AltoUtilities Department. Emergency An actual orimminent condition or situation,whichjeopardizes CPAU’sDistributionSystem Integrity. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 7 DEFINITIONS AND ABBREVIATIONS RULEANDREGULATION2 EmergencyService Electric Service supplied to, or made available to, Load devices which are operated only in Emergency situationsor in testingfor same. EnergyServices Energycommodityand anyapplicable ancillaryServices 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 orrelatedto theProvision and/orusage ofenergycommodity. EquivalentResidentialUnit (ERU) This is the basic unit for computing storm and surface water drainage fees. All single-familyResidential properties are billed the number of ERU’s specified in the table contained in UtilityRate 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.)/ 2,500 sq. ft. Fiber Optic, Fiber OpticService A solid core of optical transmission material.Fiber Optic Service that is provided by the City of Palo Alto Utilities Departmentis referredto as Dark Fiber. Fiber OpticBackbone Thehigh-densityportion of theDarkFiberInfrastructureinstalledandowned bytheCity. ForceMajeure 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 Cityor Customer affected thereby, a defect in manufactured equipment (including, but not limited to, the Dark Fibers),fire,floods, earthquakes,or anyother similarcause. 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 acollectionof devices andsoftware. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 8 DEFINITIONS AND ABBREVIATIONS RULEANDREGULATION2 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 obtainedfrombiomass or fromlandfill, or amixtureof anyorall 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 PaloAlto Utilities Department. GeneratingFacility 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 andRegulation29. 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 NameplateRating; Gross NameplateCapacity The total gross generating capacity of a Generator or Generating Facility as designated by the manufacturer(s)ofthe Generator(s). Initial InterconnectionCapacity The maximum rated generating capacity of a Renewable Electrical Generation Facility eligible for Net EnergyMeteringpriorto the Total RatedGeneratingCapacityexceedingtheNEM 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 Theauthorized Inspector,agent,or representativeofCPAU. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil 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 (hasoccurred). InterconnectionAgreement An agreement between CPAU and the Producer providing for the Interconnection of a Generating Facilitythat 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 maybeconsideredasInterconnectionAgreementsfor purposes of definingsuch 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 maybe located on either side of the Point of Common Couplingas appropriate to their purpose and design. Interconnection Facilities may be integral to a Generating Facility or providedseparately. InterconnectionStudy A study to establish the requirements for Interconnection of a Generating Facility with CPAU’s Distribution System. InternetExchange Any Internet data center for telecommunications equipment and computer equipment for the purposes of enablingtrafficexchange andproviding commercial-gradedatacenter 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 electricallyisolated from the remainderof CPAU’s Distribution System. Junction A location on the Dark Fiber Infrastructure where equipment is installed for the purpose of connecting communicationcables. Junction Site Thearea within the Transmission Pathwayatwhich aJunction is located. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 10 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Kilovar (kVar) A unit of reactive powerequalto 1,000 reactivevolt-amperes. Kilovar-hours(kVarh) Theamount of reactiveflowin one hour,ataconstant rateofKilovar. Kilowatt(kW) A unit of powerequalto 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 standardunit of billingfor electricalenergy. 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, anyregulation or order of an official orquasi-officialentityor 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 andRegulations. Licensed Fibers Route Adefinedpathof LicensedFibers that is identified byspecific EndPoints. 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, measuredin MMBtu per Day. Main Wastewater Line AnyWastewaterlinenot includingabuildingconnection(Service)sewer. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil 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 homespace,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 a5-minuteinterval. Meter The instrument owned and maintained byCPAU that is used for measuring eitherthe Electricity, Gas or Waterdeliveredto theCustomer. Metering The measurement of electrical power flow in kW and/or energy in kWh, and, if necessary, reactive powerin kVarat a point,andits displayto CPAU asrequiredbyRule 27. MeteringEquipment All equipment, hardware, software including Meter cabinets, conduit, etc., that are necessary for Metering. Meter Read Therecordingof usagedata from MeteringEquipment. MinimumCharge Theleast amount forwhichService will berenderedin accordance with the Rate Schedule. MomentaryParallel Operation The Interconnection of a Generating Facility to the Distribution System for one second (60 cycles) or less. Nationally RecognizedTestingLaboratory(NRTL) A laboratoryaccreditedtoperformtheCertification TestingrequirementsunderRule 27. NetElectricity Consumer A Customer-Generator whose Generating Facility produces less electricity than is supplied by CPAU (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 12 DEFINITIONS AND ABBREVIATIONS RULEANDREGULATION2 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 maybe amended from time to time. NetEnergy Metering Net Energy Metering means measuring the difference between the electricity supplied through CPAU’s Electric utilityDistribution System and the electricitygenerated bythe customer-generator’s facility and deliveredto CPAU’sElectric utilityDistribution Systemoveraspecifiedtwelve-month period. Net EnergyMetering 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 inverterACnameplateratingby0.86. NetEnergyMetering SuccessorProgram;NetEnergyMeteringSuccessorRate 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 EnergyMetering but elect to take service under the Net EnergyMetering Successor Rate. The terms and conditions aredefinedbyUtilities RateScheduleE-EEC-1(Export ElectricityCompensation). NetGeneration Metering Metering of the net electrical power of energyoutput in kW or energyin 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 theGenerator. NetNameplateRating The Gross Nameplate Rating minus the consumption of electrical power of a Generator or Generating Facilityas designatedbythe manufacturer(s)of theGenerator(s). NetSurplus 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 maybe amended from time to time. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 13 DEFINITIONS AND ABBREVIATIONS RULEANDREGULATION2 NetSurplus ElectricityCompensation 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 onlyto Customer-Generators who are eligible for NetEnergyMeteringand aresubject to RuleandRegulation29. 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 occupiedbyaPerson 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, asa Function ofdistance, measuredin 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 otherformof business association. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil 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 transmissionsystem. Point of CommonCoupling (PCC) The transfer point for electricity between the electrical conductors of CPAU and the electrical conductors ofthe Producer. Point of CommonCoupling Metering Metering located at the Point of Common Coupling. This is the same Metering as Net Generation Meteringfor Generating Facilitieswithnohost 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 typicallyat the connectors in the utilityentrance section; for Natural Gas, the POD is the point(s) on the Distribution System wherethe Citydelivers natural Gasthat it has transportedto the Customer. Point of Interconnection The electrical transfer point between a Generating Facility and the Distribution System. This may or maynot be coincident with thePoint of CommonCoupling. 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 usuallya 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 uponlocationestablishedat thetime ofinstallation. PoleLine Overhead wires and overhead structures, includingpoles, 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 similaror associated Service. PowerFactor (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil 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 systemlosses caused bylow Power Factor. PowerFactor 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 energycosts and lossesincurredbyCPAUdueto theCustomer’slow PowerFactor. 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. PrimaryService CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level equal to or greaterthan1000 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 InterconnectionAgreement. Proposal forDark 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 licensingfees, term oftheService, andsummaryoflicensedFiberelements. ProtectiveFunction(s) The equipment, hardware and/or software in a Generating Facility (whether discrete or integrated with otherFunctions)whose purposeis to protect against UnsafeOperatingConditions. 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 definesor otherwisecontrols, establishes,orlimits the performancerequired or permittedbyanyparty. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 16 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 PrudentUtility 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,sidewalkplanterareas,streets,and ways. Public UtilityEasements The areas occupied or used bythe Cityfor the purpose of providing UtilityService 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 recordedbytheCitywith theRecorderofthe Countyof SantaClara,California. Public Works Department See Cityof PaloAltoPublicWorksDepartment. 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 referencesto Rules. RecyclableMaterials Materials designatedbytheCityas acceptablefor recyclingcollectionandprocessing. Refuse Service Refuse Service includes weekly collection, processing and disposal of materials properly deposited in the CityCollector’s provided Containers for solid waste, as well as weekly collection and processing of Recyclable Materials, weeklycollection and processingof Compostable Materials, ongoing maintenance of the closed Palo Alto Landfill, zero waste programs, street sweeping service, the household hazardous wasteprogram, and theannual CleanUp Day. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 17 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 RenewableElectrical Generation Facility A Generation Facility eligible for NEM under California Public Utilities Code section 2827 et seq.as the samemaybe amendedfrom timeto 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 loadis intermittentor subjectto violent fluctuations,the Citymayuse a5-minute interval. ResidentialService UtilityService provided to separatelymeteredsingle familyormulti-family, domesticdwelling. Rulesand Regulations See Utilities Rulesand Regulations SchedulingCoordinator An entity providing the coordination of power schedules and nominations to effect transportation and distribution of Gas,Electricpowerandenergy. SecondaryService CPAU Electric distribution Service provided to a Customer’s Premises at a voltage level less than 1000 volts. Service(s) UtilityServices 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, andStorm and Surface Water Drainage Services provided bythe Public Works Department. ServiceAddress The official physical address of the building or facility assigned by CPAU’s Planning Department, at whichCustomerreceivesUtilityServices. ServiceCharge A fixed monthlyCharge applicable on certain Rate Schedules that does not varywith consumption. The Chargeis intendedto recover aportion ofcertainfixed costs. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 18 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 ServiceDrop 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 buildingor otherstructureto and includingthe terminationbox. Servicesor ServiceLines FacilitiesofCPAU, excludingtransformers and Meters,betweenCPAU’s infrastructureand thePoint of Deliveryto the Customer. ServiceTerritory The geographic boundaries within the City of Palo Alto limits served by the physical Distribution System of theCPAU. ShortCircuit(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 transformerconnectingtheGeneratingFacilityto CPAU’ssystem. SimplifiedInterconnection An Interconnectionconformingto theminimum requirements as determined underRule 27, Section I. Single Line Diagram;Single LineDrawing 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 engineerthe essentialdesignand safetyof thesystem beingconsidered. Special Facilities See CPAU’s Ruleand Regulation 20governingSpecial Facilities. Splice A point wheretwo separate sections of Fiberarephysicallyconnected. Standard Refuse Container A Standard Refuse Container shall have the meaning described in the Palo Alto Municipal Code. A StandardContainershallalsoincludeawheeledcontainerwith acapacityof not to exceed32 gallons. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 19 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 StandbyService Back-upEnergyServicesprovidedbyCPAU. Stormand 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 foran InterconnectionStudy. SystemIntegrity The condition under which a Distribution System is deemed safe and can reliably perform its intended Functions in accordancewith thesafetyandreliabilityrules of CPAU. Tax Any assessment, Charge, imposition, license, or levy (including any Utility Users Tax) and imposed by anyAgency,includingtheCity. Telemetering Theelectricalorelectronictransmittalof Meteringdatain real-time to CPAU. TemporaryService 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 orpavingplants. TemporaryService does not include Emergency,breakdown, or StandbyService. 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 energycontent, 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 dioxideornitrogenlower theTherm factor. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil 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 orNEM Aggregationwill becalculatedas 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 ratingof thegenerating facility. Transfer Trip A Protective Function that trips a Generating Facility remotely by means of an automated communications link controlled byCPAU. TransmissionPathway Those areas of the Public Right-of-Way, the Public UtilityEasements and the Leased Service Properties in which theDarkFiber Infrastructure is located. Trap Anyapproved equipmentor applianceforsealing anoutlet from a house-connection sewerto preventtheescapeof sewerGas from a main linethrough abuildingconnection (service)sewer. Underground UtilityDistrict An area in the City within which poles, overhead electric or telecommunication wires, and associated overheadstructures areprohibited or asotherwisedefinedin Section12.04.050 ofthe PAMC. Unintended Island The creation of an Island, usuallyfollowing a loss of a portion of CPAU’s Distribution System, without the approval of CPAU. UnsafeOperatingConditions 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 UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 21 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Agreement. UtilitiesDepartment See Cityof PaloAlto Utilities Department. UtilitiesDirector 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 anyPerson who is designated the representative of the directorofutilities. 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 PaloAlto MunicipalCode,as amendedfromtimeto 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 bytheCityof Palo Alto PublicWorks Department. UtilitiesUser 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 monthlyCharges, as describedin Chapter2.35 ofthe Palo Alto MunicipalCode. 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 Cityof Palo Alto Utilities Department, and Wastewater Treatment Service is provided bythe Cityof PaloAlto PublicWorksDepartment. Water Utility Service provided to residents and business owners in the City of Palo Alto for retail use. Water Service is provided bytheCityof PaloAlto Utilities Department. Water Column (WC) (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIESRULES AND REGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No 22 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Pressureunit basedon the difference in inches betweenthe heights of watercolumns as measuredin a manometer. 6”WC =0.217 psi; 7” WC =0.25psi. (END) (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULESANDREGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No. 1 NET ENERGYMETERINGSERVICE AND INTERCONNECTION RULEANDREGULATION29 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”)viatheuseofaRenewableElectricalGenerationFacility,not to exceed 1 MW, located on the Customer’s owned, leased, or rented premises within CPAU serviceterritorythat willoperateinparallelwiththeCPAUdistributionsystem,solongasthereis availabilityremaining within the NEMCap,asdefined in Rule 2. B. SCOPE Notwithstandingthe requirements andchargesset forthin this Rule 29, CPAUreserves the right to imposeanyrequirements set forthin Rule27that areadditional to or morestringentthanthose set forthin this Rule 29, includingthose relatedto billingandcharges,on NEMandNEM AggregationCustomers to the maximum extent permittedbystatelaw(Cal.Pub. Util. Code § 2827 et seq.,as the samemaybeamendedfrom timeto time). C. CUSTOMERELIGIBILITY 1.GeneralRequirements. InordertobeeligibletoparticipateinNEMorNEMAggregation,a Customermust: a.BeaCustomer-Generator, b.Construct,design,install, interconnect,operateandmaintain aRenewable Electrical GenerationFacility(or combinationofsuchfacilities) that is: i.OntheCustomer-Generator’s owned,leasedor rentedPremises, ii.Of atotal capacityofnot more than one(1) MW (or1,000kW), iii.Intendedprimarilyto offsetpart or all of theCustomer-Generator’s own ElectricServicerequirements,and (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULESANDREGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No. 2 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 iv.Isnot usedto sell to anythird person,orotherwise provideElectric Service to anyrealestateparcel,premise,or locationotherthan thosethat arethe subjectof theCustomer-Generator’s InterconnectionAgreement (IA). c.CompleteandprovideCPAUwith all requiredagreements,supporting documents,andanypaymentsrelatedto interconnection. 2.NEM Cap. Customers remaineligible for NEM and NEM Aggregationuntil such time as theTotalRatedGeneratingCapacityusedbyNEM andNEM AggregationCustomers combined reaches CPAU’s NEMCap. NEM is availableon afirst-come,first-served basis.Once the NEMCaphasbeenreached,NEM Service andInterconnectionwill be closedto newcustomers. a.Afterthe NEM Caphas been reached,Customer-Generators mayincrease the systemcapacitybyamaximum of 10% of the Initial InterconnectionCapacity. Customer-Generatorsthat expand theirsystembeyondthis limit are nolonger eligible for NEM andwill betransitionedto the NetEnergyMeteringSuccessor Rate. 3.AdditionalRequirementsforNEM Aggregation. Inadditionto those eligibility requirements set forthin Section1(a)ofthis Rule andRegulation 29, a CPAUCustomer is onlyeligible to participate in NEM Aggregationwhere: a.TheCustomer-Generatorelects to aggregateElectricService ofthe meterslocated on the propertywheretheRenewable Electrical GenerationFacilityis located across properties that are adjacent or contiguouswith that property;and b.All propertiesacross whichtheCustomer-Generatorelectsto aggregateare solely owned,leased,orrentedbythe eligible Customer. 4.NEMTransitionPeriod. Customer-Generators within the NEMCapremainsubject to the requirements andchargesset forthin this Rule 29throughaperiodoftwenty(20) years from theoriginal dateofInterconnectionoftheeligible RenewableEnergyGenerating Facility. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULESANDREGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No. 3 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 D. BILLINGFORNEM 1.GeneralRules a.TwelveMonth True Up Period i.At the endofeachtwelve-monthperiodfollowing: aa.The date of Interconnection of the Renewable Electrical Generation Facility,or bb. For a Customer with a date of Interconnection of the Generating FacilitycommencingpriortoFebruary1,2010,thedayafterCPAU’s receipt of the Customer’snet surplus electricityelectionform, ii.CPAU will determine whether the Customer-Generator is a Net Electricity ConsumeroraNet Surplus Customer-Generatorduringthat period. b.CPAU will bill the Customer-Generator for the electricityused duringthat twelve- month period, whether the Customer-Generator is considered a Net Electricity ConsumeroraNet Surplus Customer-Generator. c.CPAU shall provide the Customer-Generator with net electricity consumption informationwitheachmonthlybill;thatinformationshallincludeeitherthecurrent monetary balance owed to CPAU or the current amount of excess electricity producedsince the last twelve-month period. d.Ifthe Customer-GeneratorterminatesthecontractualrelationshipwithCPAU,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,usingthe procedures as outlinedin 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 UtilityRateScheduleE-NSE-1,foranynetsurpluselectricitygeneratedduringthe (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULESANDREGULATIONS Issued bythe CityCouncil 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 electricitygeneration 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 pursuanttoNetSurplusElectricityCompensation,thenCPAUshallretainanyexcess 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. CPAUwillallowaCustomertochangetheelectionoptiononceeachtwelve-month settlement period provided that the Customer provides notice to CPAU one month priorto thebeginningof newsettlement period. 2.MonthlyBilling a.Medium and large commercial Customer-Generators will be required to pay any balancesdueto CPAUon amonthlybasis. b. Except as annual billing is provided for in this Rule 29, residential and small commercial Customer-Generators will default to owingbalances due onamonthly basis, but mayrequest annual billing. c. Standbyservicecharges forbackup ormaintenanceelectricservicewill bewaived, provided that the Customer-Generator qualifies for participation in net energy meteringat theService Address. d. ForaNetSurplusCustomer-Generatorinagivenmonth,anycreditscreatedwillbe carriedforwardtofuturemonths,tobeusedforfutureelectriccharges,untiltheend ofthe Customer-GeneratorsTwelveMonth True-UpPeriod. 3.Annual Billing (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULESANDREGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No. 5 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 a.Customers mayrequest annual billing. b.Billpaymentwillnotbeconsidereddelinquent,unlesstheCustomer-Generatordoes not pay a final billing statement within twenty(20) days of the date of issuance of that final billingstatement. c.For annually billed residential or small commercial Customer-Generators, the net balanceofmoneyowedtoCPAUwillbecarriedforwarduntiltheendofthetwelve- month period. d.Toaccommodateannualbilling,aCustomer’sElectricityServicemaybetransferred toaseparateUtilityAccountsoasnottointerruptmonthlybillingforotherrecurring, non-electricUtilityServices. 4.AdditionalBillingRules Applicableto NEM AggregationCustomers a.For eachmonthlybillingperiod,the amount of electricitygeneratedfromthe AggregationCustomer’sGeneratingFacilityduringthat billingperiodwillbe accountedfor on aperkWh 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 GeneratingFacilitypertheCustomer’sInterconnection Agreement. c.EachBeneficiaryAccount will be allotted aportion of theGeneratingFacilities energyequalto that BeneficiaryAccount’srelativeshareof Aggregation Customer’stotalusage forthe billingperiod. d.Thetotalamount of energyproduced byaGeneratingFacilitywill beallottedin eachbillingperiod. e.Thebillingfor BeneficiaryAccounts will bethe sameas NEM customers, as outlined in SectionD.2(a),with therestrictionthatnoBeneficiaryAccount is eligible for Net Surplus ElectricityCompensationin accordance with Electric UtilityRateScheduleE-NSE-1,but mayonlycarryforwardenergycredits. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULESANDREGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No. 6 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 E. APPLICATIONANDINTERCONNECTIONPROCESS 1.ApplicationProcess 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)daysfromthedateof(1)receiptofacompletedApplicationformforNetEnergy MeteringServiceandInterconnectionfromtheCustomer-Generator,(2)Electricinspection clearance from CPAU, and (3) building inspection clearance from the City of Palo Alto BuildingInspectionDivision.If CPAUisunabletoprocesstherequestwithinthethirty-day period or other applicableperiod, then CPAU shall notify the Customer-Generator of the reasonforitsinabilitytoprocessthe request and theexpectedcompletiondate. 2.InterconnectionProcess The Customer-Generator will be required to sign either an Interconnection Agreement, as applicable, or an agreement containingsubstantiallythe terms and conditions of the above referenced agreements and agreeto be subject to applicable UtilityRates and Charges and UtilityRules and Regulations in order to be eligible for NEM Serviceprovided byCPAU. CPAUwillmakeavailableallnecessaryformsandcontractsforNEMServicefordownload from theInternet. F. GENERATINGFACILITYDESIGNAND OPERATINGREQUIREMENTS 1.SafetyStandards Thefacilitywillmeetallapplicablefederal,stateandlocalsafetyandperformancestandards, includingthoseestablishedbytheNationalElectricalCode(NEC),theInstituteofElectrical and Electronic Engineers, and accredited testing laboratories such as Underwriters Laboratories(UL)and,asapplicable,therulesoftheCaliforniaPublicUtilitiesCommission 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 additionalliabilityinsurance. (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULESANDREGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No. 7 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 2.DesignStandards Inadditiontotherequirementsmoregenerally setforthinsectionD.1,Customer-Generator will: a.Conform to the applicableNationalElectricCode(NEC) Standards[NEC 690] andapplicablebuildingcodes. b.HaveadedicatedcircuitfromtheinvertertotheServicepanelwithacircuitbreaker orfuse[NEC 690-64(b)(1)]. c.Have an overcurrent device at the Service panel will be marked to indicate solar powersource [NEC 690-64(b)(4)]. d.EstablishthefollowingminimumspecificationsforParallelOperationwithCPAU’s Electric utilityDistribution System. e.Installavisiblebreak,lockableACdisconnect switchinthededicatedcircuittothe inverter. ThisswitchwillbelocatedwhereitiseasilyaccessiblebyCPAUpersonnel andwill be equippedwithaCPAUpadlock[CPAU Rule andRegulation27]. f.Use an inverter that is UL1741-appoved and have the following specifications for Parallel Operationwith CPAU’s Electric utilityDistribution System: i.Inverter output will automatically disconnect from CPAU’s utility source upon theloss ofCPAU’sutilityvoltage andwill not bereconnecteduntilat least five (5) minutes after normal utilityvoltage and frequencyhave been restored[UL1741]. ii.InverterwillautomaticallydisconnectfromCPAU’sutilitysourcewithin120 cycles (2 seconds) if CPAU’s utility voltage isles than 106 volts or greater than 132 volts on a120-volt base [UL1741]. iii.InverterwillautomaticallydisconnectfromCPAU’sutilitysourcewithin10 cycles (0.17 seconds) if CPAU’s utilityfrequencyfluctuations is less than 59.3hertz or greaterthan 60.5 hertz[UL1741] cycle. iv.Inverteroutput will complywith IEEE519standards for harmonic (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULESANDREGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No. 8 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 distortion [CPAURule andRegulation27]. 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 capableofmeasuringtheflowofelectricityin twodirections,thentheCustomer-Generator shallberesponsibleforallexpensesinvolvedinpurchasingandinstallingaMeterthatisable to measureelectricityflowin two directions. 2.InlieuofoneMeter,anadditionalMetertomonitortheflowofelectricityineachdirection maybeinstalledwiththeconsentoftheCustomer-Generator,attheexpenseofCPAU. The additionalMetershallbeusedonlytoprovidetheinformationnecessarytoaccuratelybillor credit the Customer-Generator and/or to collect solar or wind Electric generating system performance informationforresearch purposes. 3.Customer-GeneratorgrantstoCPAU,itsofficers,employees,agentsandrepresentativesthe non-exclusiveright ofingress andegresson,overandacrossthePremisesuponreasonable priornoticeforthepurposeofinspectingandapprovingtheinstallationandoperationofthe Facilityandauthenticatingthe accuracyofthe Meter(s),orin theevent ofanemergencyor inregardtoadisconnectionoftheFacility,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 asaresultof thelackof properlyoperating protective devices. H. GENERALREQUIREMENTS 1.Customer-Generatorwill obtainand maintaintherequired governmental authorizations, permits,andanypolicyor policies ofinsurance,including,without limitation, commercial general liability,property,andprofessionalliabilityinsurance,as maybe requiredbyapplicable laws. 2.CPAUwill not be obligatedto accept or payfor,andit mayrequireCustomer-Generator to interrupt orreduce,the deliveryof availableenergygeneratedbythe Facilityunderthe following: (a)wheneverCPAUin its sole judgmentdeterminesthat theinterruptionor reductionis necessaryin orderfor CPAUto construct,install, maintain, repair,replace, (SGY7MKR)RZIPSTI-('''(&%%*'*% CITY OF PALO ALTO UTILITIES RULESANDREGULATIONS Issued bythe CityCouncil Effective 7-1-2016 Sheet No. 9 NET ENERGY METERING SERVICE AND INTERCONNECTION RULE AND REGULATION 29 remove,investigate,orinspect anypart of CPAU’selectricutilitydistribution system; or (b)if CPAU determinesthat the interruption or reduction is necessaryon account of an emergency, voluntary or involuntary outage, event of Force Majeure, or compliance with prudentelectricalpractices. 3.Notwithstandinganyotherprovision ofthis Agreement,if CPAUdetermines that either (a)theoperationof the Facilitymaythreaten orendangerthehealth, safetyor welfareof CPAU’s personnelor CPAU’s orits personnel’s property,or (b) the continuedoperation ofthe Facilitymayendangertheoperationalintegrityof CPAU’selectric utility distribution system,CPAUwill have the right to temporarilyor permanentlydisconnect the Facilityfrom CPAU’s Electric UtilityDistributionSystemupon thedeliveryof reasonable noticeto Customer-Generator;provided,however,CPAUmayact without givingpriornotice to Customer-Generator,if CPAUdetermines that it is impracticableto providethenotice.TheFacilitywill remaindisconnected until suchtime asCPAU’s DirectorofUtilities is reasonablysatisfiedthat the conditionsreferredto in this subsectionhave beencorrectedorsufficientlyaddressed. 4.Customer-Generatorwill (a)maintain theFacility, whichinterconnects with CPAU’s electricutilitydistribution system,in asafe andprudentmannerandin conformance with allapplicablelaws,rulesandregulations,including, without limitation, therequirements ofthis SectionH. 5.Customer-Generatorwill reimburseCPAUfor anyandalllosses,damages,claims, penalties,orliabilitythat CPAUmayincuror sustain as aresult of Customer-Generator’s failure to obtainand maintainanyand allgovernmental approvals,authorizations and permits that mayberequired forthe construction,installation, operation,repairand maintenance of theFacility. 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