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ITEM 3.5 On Site Generator West WWTFk se0 V CITY OF go MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Utilities Kurt Neidermeier, Utility February 241h, 2014 No Operations Supervisor BACKGROUND/JUSTIFICATION: PRESENTER(s): REVIEWED BY: ITEM #: Consent Agenda Lori Johnson, City Administrator 3.5 AGENDA ITEM DETAILS RECOMMENDATION: Staff recommends renewal of the Wright -Hennepin Cooperative Electric Association Interruptible and On -Site Generator Rate Agreement for the West Wastewater Treatment Facility. The program was reviewed and recommended continuation at the November 191h Public Works Subcommittee meeting. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: The West Wastewater Treatment Facility has maintained an Interruptible and On -Site Generator Rate Agreement with Wright -Hennepin Cooperative Electric since 2008. The agreement allows for a reduced demand and energy rate (Rate 50) throughout the year in exchange for self-reliant power through the use of onsite generator during Wright Hennepin's Peak Control Periods. The agreement is being updated to remove a dedicated phone line requirement. SUPPORTING DOCUMENTS: (X) ATTACHED 0 Agreement MOTION: (Please word motion as you would like it to appear in the minutes.) Motion to continue Interruptible and On -Site Generator Rate Agreement with Wright Hennepin Cooperative Electric Association for the West Wastewater Treatment Facility. BUDGET INFORMATION FUNDING: BUDGETED: NA ACTION TAKEN Wright -Hennepin Cooperative Electric Association Interruptible and On -Site Generator Rate Agreernomt This Agreement, made this day of , and effective the _ day of 2014, between the City of Otsego (Member) whose facilities are located in Wright County Minnesota, and Wright -Hennepin Cooperative Electric Association (W -H) Rockford, Minnesota, is a commitment by W -H to supply electrical service to the Member under the terms of this Agreement and W -H's "Interruptible and On -Site Generator Rate" (Rate 50) and a commitment by the Member to receive all of its electrical service from W -H under the terms of this Agreement and W -H's "Interruptible and On -Site Generator Rate" (Rate 50). This agreement is for the facilities described by the W -H location number 06-25BD-001, W -H account number 15016809953, and is located at 7551 Lancaster Avenue, Otsego, MN. The terms of this agreement also allow for temporary interconnection of a member -owned generation facility with Wright-Hennepin's electrical distribution system for purposes of carrying all of the Members load on its own generation, during Wright-Hennepin's Peak Control Periods. 1.0 APPLICABILITY Member must purchase all of its electrical service from Wright -Hennepin to be eligible for the "Interruptible and On -Site Generator Rate" (Rate 50) 2.0 RATES Wright -Hennepin agrees to provide power and energy to the Member according to its "Interruptible and On -Site Generator Rate" (Rate 50) Schedule, as long as the Member remains eligible under the terms of this rate. Wright -Hennepin agrees to provide the Member six (6) months written notice prior to elimination or change in requirements of this rate. Wright -Hennepin also agrees that the charge for power and energy used under this rate shall be maintained below the power and energy charge of the normal rate of the Member's rate class, had the member not taken advantage of the "Interruptible and On -Site Generator Rate" (Rate 50). Rate differential comparisons as it relates to this account will provided to the customer upon request. 3.0 METERING The Member agrees at its expense, to install necessary monitoring and control equipment provided by Wright -Hennepin at the above address to provide information on the effect of the generation facility and to properly measure the flow of energy on the interconnection. The Member agrees at its expense, to provide a 120V outlet at the metering location to be used by Wright -Hennepin to power the metering and communication equipment required to comply with the C&I interruptible rate (Rate 50) communication requirements. The Member agrees at its expense, to allow Wright -Hennepin access to the metering equipment for maintenance, reading, operation and other reasonable needs as necessary. The Member is responsible for the cost of all additions/ modifications to existing wiring. 4.0 PEAK CONTROL PERIODS "Peak Control Periods" are the times at which the member agrees to load shed their entire electric service load. To monitor this occurrence, for billing purposes, Wright -Hennepin will monitor the Member's service load at minimum the 15 minute interval prior to control occurring. Wright -Hennepin agrees to limit the "Peak Control Periods" to a maximum of 300 total hours annually. The Member understands that these hours could be continuous for up to 10 hours daily. Should the annual Peak Control Period exceed 80 hours, Wright -Hennepin will provide a fuel cost credit for generator run time exceeding 80 hours. Fuel cost reimbursement shall be approximately $.23 per kWh, based on actual generator output while under Wright -Hennepin control. The GRE member service manual (Rate rider L fuel credit section) can be used as a reference to calculate fuel costs per kWh. The fuel cost reimbursement rate is subject to revision on an annual basis. 5.0 PENALTY FOR NON -CONTROL DURING PEAK CONTROL PERIODS The Member is responsible for maintaining the generator system, to ensure proper operation during peak control periods. Wright -Hennepin will penalize Peak -Alert customers for non -controlling during "Peak Control Periods". The failure to control during any twelve-month period will result in a monthly penalty as set forth in the Rate Schedule. 6.0 GENERATION FACILITIES This section is applicable to all member -owned generation facilities for the purpose of providing backup generation and peak load shedding per the terms of Wright-Hennepin's "Interruptible and On -Site Generator Rate" (Rate 50). All member -owned generation facilities used for this purpose must meet the following safety and operating requirements. 7.1 FACILITY LOCATION AND COMPLIANCE Any generation facilities interconnected with Wright-Hennepin's distribution system must first receive Wright -Hennepin review and approval, and meet the terms and conditions set forth in this Agreement. The terms and conditions set forth within this agreement must at all times be adhered to until such generation facilities are removed or permanently disconnected from the Wright -Hennepin distribution system. The Member agrees and understands that approval of the proposed or installed generation facility does not preclude the Member from having to obtain all required permits, building and zoning variations and applicable inspections. 7.2 INTERCONNECTION AND SAFETY DISCONNECT SWITCH The Member will be allowed to connect to Wright-Hennepin's distribution system on the load side of member's meter. The connection must be made through a customer—provided, customer -installed, National Electrical Manufacturers Association -approved, manual safety disconnect switch of adequate ampere capacity. The switch shall not open the neutral when the switch is open. This switch shall have provisions for being padlocked in the open position with a standard Wright -Hennepin padlock. The Member agrees to allow Wright -Hennepin personnel access to the safety disconnects. Wright -Hennepin shall contact the Member to obtain access. The Member agrees to provide Wright -Hennepin a 24-hour a day contact person or persons to contact in case of an emergency. The Member further agrees that the switch may be operated by Wright -Hennepin personnel at all times that such operation is deemed necessary by Wright -Hennepin for safety and operating reasons. Facilities with line -commutated synchronous inverters shall have the inverters connected on the load side of the safety disconnect switch. 7.3 INTERFERENCE The Member agrees to disconnect the generation facility from the Wright -Hennepin distribution system or to reimburse Wright -Hennepin for cost of necessary system modifications if operation of the generation facility causes radio, television, or electrical service interference to other members, or interference with the operation of the electrical distribution system. 7.4 BACKFEED PROTECTION The Member agrees, if requested, to supply Wright -Hennepin with a schematic diagram and associated equipment list for the generating facility control circuitry to enable Wright -Hennepin to determine if the generation facilities safety equipment provides a level of safety consistent with the safety level required by Wright -Hennepin for its electrical equipment. Connection to Wright-Hennepin's distribution system shall only be made through a Wright -Hennepin approved interconnection device that will prevent back - feed. 7.5 TESTING The Member agrees to test the controls and back feed protection twice each year to maintain proper operation as required by Wright -Hennepin. 7.6 ADDITIONAL SAFETY DEVICES The Member understands and agrees that as additional generation facilities are connected to Wright- Hennepin's electrical system, Wright -Hennepin may require the Member to install additional safety devices at the Member's expense. 7.7 LOAD TRANSFER Under this agreement no permanent parallel operation is permitted. For generators at or below 250kVA of capacity the member may install a "Break before Make" switch at the interconnection with the distribution system. This type of transfer is not recommended for loads over 125kVA. The member may install "Make before Break" or equivalent switching to minimize the impact of the load transfer on the customers equipment and other Wright -Hennepin members on the distribution system. This type of transfer is acceptable for loads 500 kVA and under. Loads up to 1000kVA may be approved to use this form of transfer provided the distribution system can support it. (Voltage dips and surges must be kept under 2% when the load is removed or applied to the Distribution System.) When the "Make before Break" method of switching is used, the member shall be responsible for supplying with Wright-Hennepin's approval, the proper protective relaying, generator sequence of operation and any addition load -sharing and safety equipment. This equipment shall be submitted to Wright -Hennepin for Wright -Hennepin approval. If the generator/ load is above 500kVA and does not meet the special 2% requirement, the transfer shall be a "soft -loading transfer", meaning the load is put on and taken off the system slowly to avoid voltage dips and surges. This type of transfer is acceptable for generator/ load up to 2000kVA. All generator installations above 1000kVA shall be reviewed and approved by Wright -Hennepin. None of these switches may disconnect the neutral path between the Wright -Hennepin distribution system and the customers distribution system. Parallel operation will not be allowed except -during the transfer from one system to another. If parallel operation is used, the member equipment must meet the following criteria. The Member shall provide the necessary equipment as approved by Wright -Hennepin to temporarily operate the generation facility in parallel with Wright -Hennepin distribution system. The generation facility shall be equipped to instantaneously discontinue all output to and energizing of Wright-Hennepin's distribution system under the following conditions: 1. De -energized Wright -Hennepin system 2. Sustained line faults on Wright-Hennepin's system 3. Faults on Members system The Member shall consult with Wright -Hennepin regarding these minimum requirements, additional protection recommended, and proper operation and coordination or Members generation facilities. The member shall comply with any Wright -Hennepin requirements. Since power factor and the voltage at which Wright-Hennepin's system and the Member's system are operated will vary, each party agrees to operate their system at a power factor as near unity as possible and in such a manner as to absorb or deliver their share of the reactive power, and provide adequate voltage as conducive to proper operation. 7.0 TERMS OF AGREEMENT The Member agrees to remain on the "Interruptible and On -Site Generator Rate" (Rate 50) for one (1) year after the effective date of this agreement. After the initial term of this agreement has been completed, this agreement shall automatically renew on an annual basis unless terminated by either party upon 60 -days written notice prior to each anniversary date of the agreement. Upon the termination of this agreement the Member assumes all rewiring costs associated with the Member's equipment. Wright -Hennepin will remove its equipment at its own expense. The Member agrees to hold Wright -Hennepin harmless from all claims, expenses and legal fees resulting from control malfunctions, unsatisfactory operation, and prolonged control periods within the terms of this agreement caused by the Member's equipment. This agreement voids all previous or existing generator agreements between the Member or Member's agent and Wright -Hennepin, as pertaining to this location. This agreement shall be binding upon the successors, assigns or transferees in the interest of the parties. The following authorized signatures accept these terms and conditions: Member Title Date vvngnt-mennepin cooperative Title Date Electric Association