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