Chapter 56 SOLAR GENERATION

CHAPTER 56
SOLAR GENERATION

Section

56.010 Residential with solar generation – Rate RSG

56.020 Commercial service with solar generation – Rate CSG

56.030 Large power service with solar generation – Rate LPSG

56.010 RESIDENTIAL WITH SOLAR GENERATION — RATE RSG.

(A) Availability. Available to single-family dwellings with solar generation, which are being used strictly as a residence, who regularly use the utility’s services throughout the year and who are located on the utility’s distribution lines suitable and adequate for supplying the service requested per electric utility rules and regulations.

(B) Character of service. Alternating current, 60 hertz, single-phase, at a voltage of approximately 120 volts two-wire, or 120/240 volts three-wire.

Consumer Charge	$15.00 per month
Energy Charge:
First 300 kWh	$0.13000 per kWh
Next 700 kWh	$0.09130 per kWh
Over 1,000 kWh	$0.08000 per kWh

(D) Minimum monthly charge. The minimum monthly payment under this rate shall be the maximum of the consumer charge or $1.30 per kVA of required transformer capacity for all service requiring transformer capacity in excess of 15 kVA, whichever is higher.

(E) Reconnect charge. Whenever the service is turned off for nonpayment of bills, or whenever for any reason beyond the control of the utility a reestablishment of service is required, a charge of $25 during normal business hours and $100 after normal business hours will be made by the utility to cover a part of the cost of discontinuance and reestablishment of service.

(F) Rate adjustment. The above rates are subject to an energy cost adjustment (ECA) factor, in accordance with the Order of the Public Service Commission of Indiana approved May 2, 1984, in Cause No. 36836-S2. The ECA factor applicable to rate residential – R applies to rate RSG.

(G) Conditions of service.

(1) Solar generation in residential areas will be limited to rooftop installations only, and the rooftop solar array shall have a total capacity of no larger than the maximum capacity of the resident household requirements.

(2) Service shall be provided based upon the utility’s rules and regulations. Customers who are planning to install generating equipment will complete and file an “interconnection agreement” with the utility before installing.

(3) The utility will supply service from its electrical supply lines at only such frequency, phase, regulation and primary voltage as it has available in the location where service is required, and if transformation of voltage is desired by the customer, will transform its primary voltage to one standard secondary voltage as hereinabove set forth. Any applicant requiring service differing from that to be supplied by the utility as herein provided shall provide proper converting, transforming, regulating, or other equipment upon his own premises and at his own expense.

(Ord. 02-2021, passed 2-8-21)

56.020 COMMERCIAL SERVICE WITH SOLAR GENERATION — RATE CSG.

(A) Availability. Available to any building or home with solar generation, which a business is operated from or has multiple occupants fed from the same meter, who regularly use the utility’s services throughout the year and who are located on the utility’s distribution lines suitable and adequate for supplying the service requested per electric utility rules and regulations.

(B) Character of service. Alternating current, 60 hertz, single-phase, at a voltage of approximately 120 volts or 120/208 volts four-wire three-phase voltage in the area, or single-phase service at a voltage of approximately 120 volts two-wire, or 120/240 volts three-wire.

(C) Monthly rates. Rates charged for service rendered under this schedule are based upon the measurement of the electrical energy at a voltage supplied to the customer on the secondary side of the transformers furnished by the utility.

The rates for electrical energy supplied hereunder shall be as follows:

Consumer Charge — Single-Phase	$20.00 per month
Consumer Charge — Two-Phase	$35.00 per month
Consumer Charge — Three-Phase	$50.00 per month

Energy Charge:
First 1,000 kWh	$0.14500 per kWh
Over 1,000 kWh	$0.10000 per kWh

(G) Conditions of service.

(1) Service shall be provided based upon the utility’s rules and regulations. Customers who are planning to install generating equipment will complete and file an “interconnection agreement” with the utility before installing.

(2) The utility will supply service from its electrical supply lines at only such frequency, phase, regulation and primary voltage as it has available in the location where service is required, and if transformation of voltage is desired by the customer, will transform its primary voltage to one standard secondary voltage as hereinabove set forth. Any applicant requiring service differing from that to be supplied by the utility as herein provided shall provide proper converting, transforming, regulating, or other equipment upon his own premises and at his own expense.

(3) All motors or apparatuses with a starting current in excess of 200 amps at 240 volts shall require approval.

(4) The utility may require corrective measures to be taken by the customer for any motor or other apparatus that in the opinion of the utility will cause or is causing unacceptable voltage fluctuation to other customers. Unless otherwise determined by the utility, the maximum primary voltage fluctuation will not exceed 3%.

(5) Voltage and current limits as defined within IEEE Standard 519 shall be considered acceptable for utility distribution facilities.

(Ord. 02-2021, passed 2-8-21)

56.030 LARGE POWER SERVICE WITH SOLAR GENERATION — RATE LPSG.

(A) Availability. Available to three-phase commercial customers with solar generation who are located on the utility’s distribution lines suitable and adequate for supplying the service requested. Service under this schedule is provided on a yearly, nonseasonal basis. This rate is applicable to any three-phase commercial customer whose billing demand requirements are in excess of 100 kW.

(B) Character of service. Three-phase alternating current 60 hertz service at approximately 120/208 volts, four-wire; 120/240 volts, four-wire; 277/480 volts, four-wire; 480 volts, three-wire; or other voltages as may be mutually agreeable.

(C) Monthly rates. Rates charged for service rendered under this schedule are based upon the measurement of the electrical energy at the voltage supply to the customer on the primary side of the transformers.

The rates for electrical energy supplied hereunder shall be in three parts as follows:

Consumer Charge — Per month	$200.00
Demand Charge — Per kVA of billing maximum demand	$20.00
Energy Charge — Per kWh	$0.0643

(D) Minimum monthly charge. The monthly minimum payment shall be the greater of the three-part billing, contract amount, or:

$1.30 per kVA of required connected transformer capacity

For the first five years of service, one-sixtieth of the cost of special facilities such as substations, meters, transformers, services, distribution lines and other special or additional equipment to service applicant.

(E) Rate adjustment. The above rates are subject to an energy cost adjustment (ECA) factor, in accordance with the Order of the Public Service Commission of Indiana approved May 2, 1984, in Cause No. 36836-S2. The ECA factor applicable to rate large power service – LP applies to rate LPSG.

(F) Reconnect charge. Whenever the service is turned off for nonpayment of bills, or whenever for any reason beyond the control of the utility a reestablishment of service is required, a charge of $25 during normal business hours and $100 after normal business hours will be made by the utility to cover a part of the cost of discontinuance and reestablishment of service.

(G) Determination of amount of electrical service supplied.

The electrical service to be supplied under this rate shall be measured as to maximum demand, energy consumption, and power factor, by suitable meters to be installed by the utility.

(H) Determination of maximum demand. The maximum demand shall be determined as follows:

(1) The maximum demand shall be determined from the readings or indications of suitable demand measuring instruments.

(2) The maximum demand shall be taken as the highest average load in kilowatts occurring during any 15 consecutive minutes of the month; provided, however, that if such load shall be less than 50% of the maximum momentary demand in kilowatts, then the maximum demand shall be taken at 50% of such maximum momentary demand; provided, further, that the maximum demand shall not be less than 80% of the product of the actual voltage multiplied by the maximum amperes in any phase multiplied by 1.73.

(I) Determination of lagging power factor. The lagging power factor for the month shall be determined by computation from the registration of a watt-hour meter and a reactive volt-ampere-hour meter, by dividing the registration of the watt-hour meter by the square root of the sum of the square of the registration of the reactive voltampere-hour meter and kWh meter.

(J) Power factor correction. The service supplied by the utility should be taken by the customer preferably at a power factor of not less than 95% lagging. If the service is taken at a power factor of other than 95% lagging, the maximum demand, for billing purposes, shall be corrected in accordance with the following formula:

	Maximum Demand x 95%
Billing Demand =	Lagging Power Factor (in percent)

(K) Secondary metering correction. If the service is metered at the utility’s secondary supply line, 1% of the kilowatt hours so metered will be added before computing the energy payment.

(L) Equipment supplied by customer. When customer furnishes and maintains the complete substation equipment including all transformation equipment necessary to take its entire service at the primary voltage of the distribution system from which the service is to be received, a credit of $1.00 per kVA of billing demand will be applied to each month’s net bill.

(M) Condition of service.

(1) Service shall be supplied in connection with this schedule and with the general rules and regulations of the electric utility. Customers who are planning to install generating equipment will complete and file an “interconnection agreement” with the utility before installing.

(2) The consumer shall be required to enter into a written agreement stating the character and amount of load for a minimum contract period of five years with minimum monthly charges, and any other applicable charges.

(3) Three-phase motors with a starting current in excess of 250 amps at 240 volts shall require city approval.

(4) The utility may require corrective measures or devices for any motor or apparatus that in the opinion of the utility will cause voltage fluctuation to other customers. Unless otherwise permitted, the maximum primary voltage fluctuation will be 3%.

(5) Voltage and current limits as defined within IEEE Standard 519 shall be considered acceptable for utility distribution facilities.

(6) The utility will supply service from its electrical supply lines at only such frequency, phase, regulation and voltage as it has available in the location where service is required, and will transform its primary voltage to one standard secondary voltage. Any applicant requiring service differing from that to be supplied as herein provided shall provide proper converting, transforming, regulating, or other equipment upon his own premises and at his own expense.

(Ord. 02-2021, passed 2-8-21)

56.040 RATES FOR SOLAR GENERATION.

Over the past few years, solar companies have been widely promoting the cost benefits of installing solar generation. The federal tax credit of 30% is resulting in a rapidly increasing number of installations. Solar will continue to grow in demand as more residents and businesses embrace it and report energy savings.

When a customer installs solar or other generation, their electric needs decrease, but the distribution equipment owned by the local utility remains the same. There are two main costs to the utility: purchased power and the distribution system equipment (lines, poles, wires, meters, etc.). Purchased power costs represent about 75% of the utility’s costs and varies by usage (variable cost). When solar generation replaces a large portion of the customer’s energy requirements, the utility also purchases less power. Distribution costs, on the other hand, are 25% of the utility costs and are fixed. The utility must provide the equipment to serve the customer regardless of whether they purchase 1,000 kWh or 10.

The proper design of rates is important for ensuring that the utility collects for distribution costs equally from each customer. The customer charge, the first block of energy and demand charge are the fixed components of the rates and are the proper place for collecting the distribution costs. This type of rate design is cost-based; the components of the rates are tied directly to the costs the utility incurs. Otherwise, when a customer installs solar generation, the utility will not recover the costs of the distribution equipment used to provide service to that customer. Without proper means for collecting for distribution costs as solar installations increase, the utility could see revenue erosion which would lead to a rate increase for all other customers.

The proposed solar rates are designed according to the costs of the utility. The customer charge is higher to cover the cost of the meter and billing. The first block of the energy charge includes the other distribution costs and purchased power. The last block of the energy charge represents only purchased power costs. The demand charge on the industrial rate includes the distribution costs and the purchased power demand charges.

It’s important to put rates in place to protect the utility before customers install solar generation. Otherwise, a customer can opt to remain on the existing rate based on the grandfather clause.

(Ord. 02-2021, passed 2-8-21)