HomeMy WebLinkAboutResolution - 1653 - Electric Utility Board Cogeneration Compliance To Regulations - 04_12_1984DGV:cI
RESOLUTION
RESOLUTION 1653 4/12/84
WHEREAS, the Electric Utility Board of the City of Lubbock, Texas,
heretofore conducted a public hearing upon Lubbock Power and Light and
Water's "Rules for Compliance with Federal Energy Regulatory Order No.
Cogeneration and Small Power Production;" and
WHEREAS, public notice was given of such public hearing and public
comment was received at such public hearing which was considered in the
Rules as appropriate; and
WHEREAS, the Electric Utility Board has recommended to the City
Council of the City of Lubbock that said Rules be adopted for use by
Lubbock Power and Light and Water; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
has
69,
THAT said "Rules for Compliance with Federal Energy Regulatory Order
No. 69, Cogeneration and Small Power Production," which rules are attached
hereto as an Exhibit and included herein by reference as if fully copied
herein in detail are hereby approved for adoption by Lubbock Power and
Light and Water; and
THAT said Rules be incorporated into the electric rates as a new rate
of Lubbock Power and Light and Water and that such new rate be filed with
the City Secretary of the City of Lubbock prior to implementation of such
new rate; and
THAT the Director of Electric Utilities is hereby authorized and
directed to forward said Rules to the Office of the Secretary of the
Federal Energy Regulatory Commission in Washington, C
ALA HENRY, MANOR
ATTEST:
Evelyn Gaffga,'City Seellrereasurer
APPROVED AS TO CONTENT:
Carroll McDona d, Director
Electric Utilities
APPROVED AS TO FORM:
iver, Assistant City Attorney
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RESOLUTION OF ELECTRIC UTILITY BOARD
WHEREAS, the Electric Utility Board has conducted a public hearing
upon Lubbock Power and Light and Water's draft rules for implementation of
the Federal Energy Regulatory Commission Order No. 69, Cogeneration and
Small Power Production; and
WHEREAS, the Board has received and considered public comment upon
said Rules; and .
WHEREAS, the Board finds said Rules to be in compliance with FERC
Order No. 69 and will encourage cogeneration and small power production;
NOW THEREFORE:
BE IT RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF LUBBOCK:
THAT the attached Rules for Compliance with Federal Energy Regulatory
Commission Order No. 69, Cogeneration and Small Power Production, are
hereby recommended for final approval by the City Council of the City of
Lubbock.
ATTEST:
SECRETARY
�S�
E STAFFORD,I®RMAN
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NOTICE OF HEARING
ON IMPLEMENTATION OF
FEDERAL ENERGY REGULATORY COMMISSION ORDER NO. 69
COGENERATION AND SMALL POWER PRODUCTION
Notice is hereby given that the Electric Utility Board of the City of
Lubbock will conduct a public hearing to take written comments on its rules
to implement the Federal Energy Regulatory Commission (FERC) Order No. 69,
Cogeneration and Small Power Production. The proposed rules follow the
FERC guidelines to encourage cogeneration and small power production.
Lubbock Power and Light and Water encourages the public to attend the
meeting and provide their input. Any person, group or governmental entity
which desires to make its comments, questions and/or recommendations in
writing may do so either at the public hearing or by writing to the
Director of Electric Utilities, Lubbock Power and Light and Water, P.O. Box
2000, Lubbock, Texas 79457. Oral summaries of written comments will be
limited to ten (10) minutes. Written comments must be received at the
offices of Lubbock Power and Light and Water before or during the public
hearing.
The public hearing will be held April 9, 1984, at 1:00 P.M. in the
EOC, Lubbock City Hall, 10th and Texas Avenue.
Any questions prior to the public hearing concerning the nature of the
proposed rules or requests for a copy of the proposed rules should be
directed to the Director of Electric Utilities at the address given above
or by calling (806) 762-6411, Ext. 2544.
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LUBBOCK POWER AND LIGHT
RULES FOR COMPLIANCE
WITH
FEDERAL ENERGY REGULATORY COMMISSION ORDER N0. 69
COGENERATION AND SMALL POWER PRODUCTION
RULES FOR COMPLIANCE
WITH
FEDERAL ENERGY REGULATORY COMMISSION ORDER NO. 69
COGENERATION AND SMALL POWER PRODUCTION
1. Introduction
1.1 The Public Utility Regulatory Policies Act of 1978 (PURPA),
under Section 210, requires the Federal Energy Regulatory
Commission (FERC) to develop rules which encourage cogenera-
tion and small power production. Pursuant to Section 210,
regulations have been prepared by FERC and published in the
Federal Register (45 FR 12214, February 24,1980). Lubbock
Power and Light will implement, to the extent possible, the
procedures and requirements of FERC Order No. 69, pursuant
to these rules.
1.2 These rules apply to all entities willing and able to enter
into an agreement with the Utility. Provisions of these rules
shall not supersede existing contracts. Entities who have the
status of "qualifying small power production facility" and/or
"qualifying cogeneration facility" (hereinafter referred to
collectively as qualifying facility) pursuant to FERC Order
No. 70 (45 FT 17959, March 20,1980) are eligible to apply for
service under these rules.
1.3 These rules represent general guidelines since the nature, size,
and character of qualifying facilities can vary widely. The
Utility reserves the right to evaluate qualifying facilities on
a case by case basis.
2. Definitions: Terms as defined in Order No. 69 (18 CFR Part 292) shall
have the same meaning for these rules unless further defined.
2.1 Accredited Capacity: The electrical rating given to generating
equipment that meets the Utility's criteria for uniform rating
of equipment. This criteria includes but is not limited to
reliability, availability,. type of equipment, and the degree of
coordination.between the qualifying facility and the Utility.
2.2 Capacity Costs: The costs associated with providing the
capability to deliver energy. They consist of the capital costs
of facilities usedto generate and transmit electricity or the
cost to purchase such capacity from other utilities.
2.3 Demand: The average rate.in kilowatts at which electric
capacity is made available as -determined at the point of
measurement during anY.30 minute period or any other period
to be determined by the Utility.
2.4 Energy: Electric energy as measured in kilowatt hours at
the point of measurement.
2.5 Energy Costs: The variable costs associated with the production
of electric energy. They represent energy related cost only, or
the average cost of purchased energy.
2.6 Point of Measurement: The point or points where energy and/or
demand are metered.
2.7 Point of Interconnection: The point or points at which the
qualifying facility is to receive and/or deliver energy or
capacity and energy under normal operating conditions.
2.8 Present Utility Practice:. Any of the practices, methods, and
acts engaged in or approved by a significant portion of the
electrical utility industry consistent with reliability,
safety, and expedition.
3. Conditions of Service: The conditions listed in this paragraph shall
apply to all qualifying facilities served under these rules.
3.1 The Utility shall purchase energy or capacity and energy from
any qualifying facility who offers to sell energy or capacity
and energy.
3.2 The Utility shallsell any capacity and energy that is
required by the qualifying facility to the qualifying facility.
3.3 The qualifying facility shall execute a written agreement with
the Utility.
3.4 The qualifying facility shall comply with all requirement of
the National Electrical Safety Code, American National Standards
Institute, Institute of Electrical and Electronic Engineers,
American Society of Mechanical Engineers, and any other applicable
local, state, or national code and operate its equipment according
to prudent utility practice. In case of any conflict in the fore-
going codes or standards, the Utility shall decide which shall
govern.
3.5 The Utility shall interconnect and operate in parallel with the
qualifying facility. The qualifying facility shall, to the point
of interconnection, furnish, install, operate, and maintain in
good order and repair and without cost to the Utility such
relays, locks and seals, breakers, automatic synchronizers, and
other control and protective equipment as shall be designed by the
Utility as being required as suitable for the operation of the
qualifying facility in parallel with the Utility's system. The
qualifying facility shall take appropriate steps to insure that
operating in parallel will not degrade in any fashion the quality
of service that is normally maintained on the Utility's system.
The above referenced protective
case by case basis. In general,
equipment will be required:
equipment will be determined on a
the following minimum protective
A. All generating units must be equipped with short circuit
interrupting devices consisting of thermal -magnetic over -
current devices on each phase as well as undervoltage
release and solenoid tripping accessories.
B. Over and under voltage and frequency protection shall be
provided to effectively isolate and qualifying facility
from the Utility's normal operating tolerances. The
normal tolerances for under and over voltage are 80%
with 10 second time delay and 120% with no time delay
of normal. Under and over frequency limits are 58 Hz
and 62 Hz with one second time delay. Frequency relays
are not required for solid state inverters which are
line commutated.
C. For qualifying facilities primary, ground fault sensing
equipment shall be required to isolate the qualifying
facility from the Utility's facilities unless other-
wise specified by the Utility.
3.6 Switching equipment capable of isolating the qualifying facility
from the Utility's system shall be accessible to the Utility or
its agent at all times.
3.7 At its option, the Utility or its agent may choose to operate,
without notice or liability, the switching equipment described
above it, in the opinion of the Utility or its agent, continued
operation of the qualifying facility in connection with the
Utility's system may create or contribute to a system emergency
or safety hazard. The Utility's obligation to purchase from the
qualifying facility ceases when the Utility or its agent operates
the switching equipment described above. The Utility shall
endeavor to minimize any adverse effects of such operation on the
qualifying facility.
3.8 The qualifying facility shall indemnify and hold harmless the
Utility from any and all liability arising from the operation
and interconnnection of the customer's facilities. The
qualifying facility shall bear full responsibility for the
installation and safe operation of the equipment required to
generate and deliver energy or capacity and energy to the
point of interconnection.
3.9 The power output of the qualifying facility must approach a unity
power factor when operated in parallel with the Utility's
facilities. Equipment shall be installed to correct any deficien-
cies in power factor by the owner of the qualifying facility at
the owner's expense.
3.10 Any costs of interconnection which are over and above the inter-
connection costs that would be incurred due to the connection of
a comparable non -generating customer and which are incurred by
the Utility due to the interconnection of the qualifying facility
shall be the responsibility of the qualifying facility.
The qualifying facility shall provide an advance payment to the
Utility if in the opinion of the Utility the costs of inter-
connection will be excessive and/or the amount of work that
must be done by the Utility to provide the interconnection
facilities will be excessive.
4. Rates for Sales
4.1 The Utility shall purchase the surplus energy or surplus capacity
and energy from qualifying facilities. The rate paid by the
Utility to the qualifying facility for such surplus energy or
surplus capacity and enrgy may be a negotiated rate.
4.2 Qualifying facilities of 100 kW or less shall be paid a standard
rate, except as otherwise stated in 4.1, based on avoided cost.
The installation of metering equipment shall be according to
Utility policy.
4.3 For qualifying facilities of 100 kW or more, the qualifying
facility may negotiate a contract with the Utility. For qualify-
ing facilities who choose not to negotiate, or in the event of
an impasse in negotations between the Utility and the qualifying
facility, avoided costs will be paid.
4.4 For the purposes of the rates described above, avoided cost shall
be defined as follows:
A. For qualifying facilities which produce energy for sale to
the utility on an unscheduled basis (i.e. the amount and
time of energy delivery is undefined or produced at a time
when the energy is not required by the Utility), the avoided
costs shall be calculated on a month by month basis and will
be the lessor of the actual fuel cost on a MA basis or
the actual purchased power cost on a t/kWh basis.
B. For qualifying facilities, which produce energy for sale to
the utility on a basis which can be defined as to a specific
amount at specific times. A rate will be negotiated to re-
flect the qualifying facilitie's effect on the utilitie's
system losses, dispatchability, reliability, term of contract,
and other factors which impact the Utilitie's costs.
5.0 Sample Agreement
A sample agreement is included which shows the basic terms and
conditions for a qualifying facility of less than 100 kW with
unscheduled power.
ELECTRIC SERVICE AGREEMENT
SMALL POWER PRODUCTION AND COGENERATION
STATE OF TEXAS
COUNTY OF LUBBOCK
THIS AGREEMENT, is made this day of . ,
19 by and between the Lubbock Power and Light, hereinafter referred
to as LPL, and
hereinafter referred to as the Customer.
WITNESSETH
WHEREAS, The Customer has notified LPL that he/she intends to
Install on his/her property
for the purpose of generating electric energy for his/her own use; and
WHEREAS, LPL wishing to encourage innovation in the energy field,
is willing to furnish standby electric service to the Customer when the
alternate power source is not available for the Customer's generating
facilities;
NOW THEREFORE, the parties hereto, each in consideration of the agree-
ment of the other contained herein, agree as follows:
1. LP&L will furnish electric service to the Customer at
on a standby basis
for periods when the alternate power source is not available to the Customer
for the operation of his own electric generating facilities.
2. Lubbock Power and Light will credit the customer's monthly bill
for all KWH delivered/supplied to LP&L, as determined by recorded data, at
a rate equal to the lessor of the actual fuel cost on a t/kWh basis or
the actual purchased power cost on a t/kWh basis. In the event that
accumulated credits to the customer for KWH delivered to LP&L exceed the
billing to the customer by LP&L, a. payment for the excess credits will be
made by LP&L annually within fifteen (15) days after the anniversary date
of connection or within fifteen (15) days of termination of this agreement.
3. Prior to installation, the Customer will submit to LPL a
diagram for his generators and all electrical protection devices showing
the complete electrical circuit of same. The diagram will indicate,
in the judgment of LP&L, that his system cannot deliver energy to the
LP&L system if loss of LPL voltage occurs to his system. The diagram
will also indicate, in the judgement of LP&L, that his system cannot
cause damage or shutdown of any portion of Lubbock Power and Light's
system in the event of an occurrence or failure in the operation of his
system. No modification is to be undertaken to his system in the diagrams
without the express written approval of Lubbock Power and Light.
4. Upon completion of the facilities, the Customer will so notify
LP&L, and LP&L will thereupon inspect the facilities for compliance with
the diagrams and will test the operating characteristics of the facilities
for assurance of safety for its employees and accuracy of its meter(s)
before authorizing the operation of the facilities.
5. It will be the Customer's sole responsibility to maintain the
system so as to guarantee the operation of the specific safety features which
prevent energy from being delivered to LP&L's system during a power failure
on Lubbock Power and Light's system and those safety features necessary to
isolate the Customer's system from LP&L's system in the event of an electrical
malfunction of his system.
6. LP&L may at any time install or modify any equipment as it deems
necessary to protect the safety of its employees or the accuracy of its
meter(s) as a result of the operation of the facilities, and the Customer
shall reimburse LP&L for the cost of such installation or modification
upon receipt of a statement therefor from LP&L.
7. Due to the reduced return on investment for the facilities provided
to serve the Customer and in order to protect LP&L's other customers from
subsidizing the wind system, the rate LP&L will charge to Customer will
equal the rate charged to other buildings of a similar size and nature
with a modified minimum bill calculated to prevent any LP&L losses due
to the providing of the electric service. The monthly bill to the customer
before the credits under Paragraph 2 shall not be less than 2.1% times
LP&L's installed equipment and facilities cost to serve the customer.
8. LP&L will installl a detent on the watt-hour meter used to
register the electrical energy provided to the customer in order to prevent
reverse registration.
9. The Customer will pay LP&L's costs in installing and providing
a watt-hour meter with a detent which will be used in register the elec-
trical energy the Customer will provide to LP&L.
10. The Customer will at all times be in compliance with all rules and
regulations of LP& L and with all rules, regulations and ordinances of
the City of Lubbock. This specifically includes obtaining a zoning variance
from the Zoning Board of Adjustment, if installation of the facilities would
be in violation of zoning ordinances.
11. Authorized LP&L employees will have the right to enter upon
the Customer's property at any reasonable time for the purpose of inspecting
or servicing the facilities and making additional tests to ensure their con-
tinued safe operation and the accuracy of its meter, but such inspections
shall not relieve the Customer from his obligation to maintain the facilities
in satisfactory operating condition.
12. The data gathered by LP&L through the use of LP&L's metering
facilities will be available to all Customers as may be required by law.
13. If, in the sole judgment of LP& L, the operation of the Customer's
system is determined to be detrimental to LP&L's other customers, or its
equipment or its oeprating procedures, LPBL may notify the Customer to
disconnec the facilities from LPEL's system and in the event the
Customer fails to immediately comply with such notice, LP&L may dis-
continue service to the Customer until the facilities are disconnected.
14. The Customer will indemnify, protect and hold harmless LP&L,
its officers, agents and employees against all claims, demand, loss, damage,
cost, expense and liability resulting from injury to or death of any person
or damage to any property, arising out of or in any way connected with the
performance of this agreement, including any claims, demands, loss, damage,
expense and liability proximately caused or contributed to by the negligenec,
whether active or passive, of LP&L, excepting only that which may be caused
by the sole negligence or willful misconduct of LP&L.
15. No assignment of this agreement or of any right accruing hereunder
shall be made, in whole or in part, by Customer without the prior consent of
LPL.
16. This agreement shall become effective immediately upon the execution
hereof and shall continue in effect until terminated (except as to paragraph
13 if applicable) by either party upon thirty (30) days written notice given
to the other party.
IN WITNESS WHEREOF, LP&L and
have executed this agreement as of the date first above written.
Executed this day of ,19
ATTEST:
ATTEST:
CUSTOMER
BY
Its
LUBBOCK POWER AND LIGHT
By
Its
THE STATE OF TEXAS
COUNTY OF LUBBOCK
PIEGU
Beforeme Bonnie McKee
a Notary Public in and for Lubbock CounLATORYCOMMISSION~
personally appeared Twi i a Aufi
- ORDER NO.69. .
I i it Account Manager Of the SC • COGENERATiONAND
pers Corporation, publishers of the Lubbock Avalanche -Journal — Morning. Eveni; NoMt LI POWER by ViYenuthatDthe
'Electric Utility Board of the City of
being by me duly sworn did depose and say that said newspaper has been published a Lubbock will conduct a Public
than fifty-two weeks prior to the first insertion
!.e E a t H a t i e e— 2 I �( �arirlD io take written comments
of this bn its rules to ImPI4 "i ;the
MI /� SQrJ Q
IIJ" a 0 No.
8%9686 Federal Energy Regulatory Com-
at Lubbock Countv. Texas an mission (FERC) Order No. a9, Co
ed copy of the Notice
ro-
is a true copy ofAAthe and was pr ducfion1The0 posed Small rue folio
Avalanche -.Journal on the following dates:
♦original
April l • 78`i the FERC guidelines to encourage
cogeneration and small power PrO-
A04)- L - 8"90
duo
Lubbock Power and Light and Wa-.
for encourages the public ►o attend
the meeting and Provide their,in•
00,
ppi�tt Any person, 9rouo or gaverlP
lL1 44— went+ desires to
make if3 hYneMs: questwnf.
it
bnd/or recommendations in writ-
ing may do so either at the public
tearing or by writing to the Direr•
for of Electric Utilities, Lubbock
A e e e u n t t"R a n a t e r
power and tight and Water, P.O.
Box 2000,.:Lubbock, Texas "437.
LUBBOCK AVALANCHE -JOURNAL
Oral summaries of wrliten.com-
Southwestern Newspapers Corporation
r menu will be limited to ten (10)
6, minutes. Written comments must
be received at the offices of Lub-
Vi bock Power and Light and Water
• :,
�„ tMora or during the public hear•
Subscribed and"sworn to before me this
'4' day of April 19_84 ,��' � The Public hearing will be need
-
6'? �. April. 9, MA- of l:gD P.M. in he
'l ir•••.00:.Lubbock City Hail, 10th and
L Texas Aver .
q pans prior to he Public.
t 0rn'srrg Q nature at
•
t "Vit.tttuestf .:
4 r11. ftt 65 rules
FORM58-10 So,
CEar ty that thQ0f OF tiEARilitCt6aY� i
nn the Lubbock Avtan'
MY Journal an Aprtt AND SEAL
Of OFFICE this Ain day of April,
M4.
/s! EVELYN GAFFGA, CMC