0894..
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RESQLUTIOPl TJO.____1L-~-L /
Sr'HEREAS, The ~'edera,l Energy Regulatory Corrnission requires
the ti'est P4emphis Utility Co~unission adopt regulations to comply
with Com;.tission Order No. 69, " cogeneration and small power pro-
duction".
S,TfiEREAS, The ~edexaa Energy Regulatory Commission requires
that a Public Hearing be conducted to solicit public comment be-
fore enactment of these regulations.
WHEREAS, A Public Notice was published to advise of the
availability of the xules and advise that comments would be re-
ce~;Yed in writing by 5:00 p.m., March 30th, 1982.
Z,~fiEREAS, A Public Hearing was held that date at the West Memphis
Utility CommisSon.Building, 60~. E. Cooper, West Pdemphis, Arkansas,.
and no one coming forth with verbal or written comments, these rules
and regulations are approved by the West Memphis .Utility Commission.
THEREFORE BE iT RESOLVED BY THE CITX COUNCIL OF THE CITY OF
WEST r~~lPHIS, ARKANSAS
The "Rules for Compliance", as attached, .are approved.
PASSED ATE APPROVED this~day o ~/ ~' ,1981.
i
Jo7~~e T. ,~erguson, Mayor
ATTEST:
Dan Craft, City er
page 1
.,
. y, T ~ ~ .~ ~ PURPOSE : .
a. The FERC has directed that all utilities develop rules that
would identify the procedures and requirements for intercon-
nection with co-generation facilities of customers in our
service area.
b. These rules would apply to all customers qualified under Federal
guidelines (small power producing facilities), but would
not supercede any existing contracts.
c. These rules represent guidelines for negotiations with individual
customers and each individual qualifying facility will be evaluated
case by case.
d. Agreements with. one facility will not necessarily be binding upon
the utility to provide the same contract to any other facility.
II IPNALIDATION
Invalidation of any portion of these regulations shall a~~ect only
that portion which may be invalidated. Pgrtions unaffected by the
invalidation shall xemain in full effect.
III DEFINITIONS:
a. Capacity: The electrical rating of the generating equipment
approved by the utility and meeting the quali#~ing restrictions.
These ratings are subject to test .for reliability, capacity out-
put, availability, and degree of coordination between the quali-
fying facility and the utility.
b. Capacity Cost: The capital cost of facilities used to generate
.`and transmit electricity or the cost to purchase that capacity.
c. Demand Cost: The cost associated with the generation and trans-
mission ability to serve the peak 30 minute measured in KW
~ capacity.
d. Energy: Electric energy in h'WH measured at the point of interchange.
e. Energy Cost: The cost of energy at the delivery point which shall
include the various cost associated with the production of energy
such as plant operating expenses. They may also be stated as
the average cost of purchased energy.
f. Point of Delivery: The point or .points where energy/demand are
measured/metered.
g. Interconnection Point: The point where energy is to be received
or delivered between the qualified customers :facilities and the
utility.
IV REQUIREf~NTS FOR SERVICE:
The conditions listed in this paragraph shall apply to alt qualifying
facilities served under these rules.
z
a. The utility will purchase excess energy from any and all qualifying
facility who offers to sell energy up to the 1it~its of our contract
with AP & L or any other contract the utility may enter. .
c;o-generation - conc.~nueu rages c
' '~ ~ b. The utility will sell any energy that is required by the qualifying-
' ~ ~ fa,c~.lity. The billing #'or energy sgld will be billed at the applicable
rate, residential, commercial, industrial or contracted service.
c. The utility will offer to provide full Lnainteneance, supplementary,
interruptable, and/or back-up capacity and energy.
d. Establishment of this type service shall be by written contractual
agreement. The utility reserves the right to waive this restriction
but does not relinquish the right to require the executipn of a
written contract.
e. The qualifying facility shall comply with all requirements of
the Nationah Electrical Safety Cade, American National Standards
Institute, Institute of Electrical and Electronic Engineers,
American Society of Mechanical Engi:neers,.and any other applicable
Local, State, or idational code and operate its equipment according
to prudent utility practice. Tn case of any conflict in~the fore-
.. going codes or standards, the utility shall decide which shall
govern .
f. Criteria for qualifying for co-generation and interconnection
to the utility system will be determined under Sec.292.20~+,
292.205, 292.206 sub-part B part 292, Section 201 and 210 of the
Regulations of the Public Utility Regulatory Policies Act of
1978. Particular attention will be directed to use of non-
renewable resourses.
g. Administrative costs incurred by the utility directly related tq ~'
the installation and maintenance of the physical facility necessary
to permit interconnection with a qualifying facility shall become
the responsibility of the customer and be prepaid before arty pur-
chase of necessary equipment, .not normally needed, and before any
interconnection is made.
h. Switching equipment capable of isolating the qualifying facility
from the utilities system shall be accessible, and at its option
the utility or its authorized agents may, without notice ox
.liability, operate the equipment. Switching equipment shall have
automatic separation capability when power fails from the utility
source, this capability should operate within 3 cycles.
i. The utility shall interconnect in parallel with the qualifying
facility.. The. qualifying facility shall, to the point o~ inter-
connection, furnish, install, operate, repair, and maintain in
-good order without cost to the utility, relays, controls, breakers,
automatic synchronizers, protective equipment, locks, seals, and
any other desiginated equipment as may be required by the utility
to maintain safe reliable operation of the utility's system.
3. Separation of the qualifying facilities and 'the utility during
an emergency or as a safety hazard will remove the obligatzan
to purchase energy.
k. At its option, when the utility determines that the interconnection
is presenting a razard or degradation of reliability or lowers its
quality of service, interconnections will be discontinued until
the qualifying facility shall make the corrections designated by
the utility. The utility shall endeavor to minimize any adverse
effects on such operating facility.
i
l
.:.Co-Generation -continued
Page 3
1. The qualifying facility shall hold harmless the utility from any
and all liability arising from the operation and interconnection
of the customer's facility. The qualifying facility shall bear
full responsibility for the installation and safe operation of the
equipment required to generate and_deliver ener~r to the point of
interconnection.
m. The .utility will, upon request, provide cost effective data to
confoxm to Article 292.303.
n. The utility may discontinue to purchase .energy from the qualifying
facility if it determines the cost is greater than that to purchase
or generate its own energy. Thirty day notice will be given to the
qualifying facility .when the utility determines these facts.
V RATES FOR INTERCHANGE:
a. The Utility will purchase all available energy from qualifying
facility that construction was commenced on or before November g,
1978•. The rate paid these qualifying facilities will be a
negotiated rate.
b. The rate of purchase from these qualifying facilities shall be
determined according to Sec. 2g2.39~, not to excede avoided
cost to purchase or generate.
~•. c. Rates for sales of energy by the ut~`lity ~'px~new c~,~ac~,ty (thst'
capacity available fox qualifying facilities. whose cgn~txuctipn
commenced after November 9, 1978) shall be on the~a~propx'iate
rate schedule for demand and energy.
d. Rates for purchase of energy shall be detex7gined #'p11ow~,ng the
guidelines of Sec. 292.303. They may differ between ciuc,la,fying
.facilities but will never excede avoided cost ox the ~xesent
cost of purchase from any otliex:source.
e. Capacity cost shall be paid to a qualifying facility as they xe-
duce existing capacity cost from other supply fa,cilitj~.es. They
will be based also on length of contract terms, with a, ~ea,sonable
coordinated schedule of maintenance.
f. Any tax or payment in lieu thexeof on the utility by any lawful
authority because of these contracts shall be the responsibility
of the qualifying facility.
VI QUALTFYTNG FACILITY:
Tt shall be the responsibility of the co-genex~itor to meet all
FERC regulations and requirements before interconnec-t ion shs,ll
be made:
VII MODIFICATION:
The West Memphis Utility Commission may modify, xeyise, amend,
supplement, suspend, or otherwise change from tune -to time, without
notice, any portion of these regulations, temporarily or pex-ma,nently.
Such changes, when duly adopted by resolution, shall have the Same
force as the rules and regulations outlined in these regulations.
rage. ~
~, Co-Generation - continued '
In the provisions of these regulations, the word "Utility"
shall mean the tJest Memphis Utility Department, and the word
"Qualifying Facility" shall mean the individual, firm, forporation
and/or entity accepting service fror.~ the West P4emphis Utility
Department.
VII AUTHENTICATION:
These regulations, approved by the West hSemphis Utility Commission,
sets forth-the guidelines, rules and regulations, and authority
for the operation of the Utility.
r
Ford, Chai
West Memphis ..Utility Commission
DATE: ~ ~ 1982