6.6. ERMUSR 04-17-2008~j
Elk River
Municipal Utilities
13069 Orono Parkway • P.O. Box 430
Elk River, MN 55330-0430
April 7, 2008
To: Elk River Municipal Utilities Commission
Jerry Takle
John Dietz
Jerry Gumphrey
From: Bryan Adams
Subject: Cogeneration Agreement
Phone: 763.441.2020
Fax: 763.441.8099
We have a couple of small electric generators on our system that operate intermittently. As the
renewable energy fad becomes more popular with other technologies, we will see more of the
smaller electric generators on our system. The Public Utilities Commission (PUC) has
developed a uniform statewide contract for small cogeneration projects less than. 40KW that
utilizes net metering. Although the Elk River Municipal Utilities does not fall under the PUC
guidelines, we should have a contract f`or such applications.
The attached contract is the PUC contract with minor corrections including Elk River Municipal
Utilities Commission substituted for Public Utilities Commission. Staff recommends adoption of
this blanket agreement.
ELK RIVER MUNICIPAL UTILITY
CONTRACT FOR COGENERATION AND SMALL POWER LESS THAN 40 KW
This form is for the uniform statewide contract for use between a utility and
cogeneration and small power production facilities having less than 40 kilowatts of
capacity is as follows:
UNIFORM STATEWIDE CONTRACT FOR COGENERATION AND SMALL
POWER LESS THAN 40 K.W.
PRODUCTION FACILITIES
THIS CONTRACT is entered into
Municipal Utilities
"Utility") and (hereafter called "QF").
RECITALS
The QF has installed electric generating facilities, consisting of
by Elk River
(hereafter called
(Description of facilities), rated at less than 40
kilowatts of electricity, on property located at
The QF is prepared to generate electricity in parallel with the Utility.
The QF's electric generating facilities meet the requirements of the Minnesota Public
Utilities Commission (hereafter called "Commission") rules on Cogeneration and Small
Power Production and any technical standards for interconnection the Utility has
established that are authorized by those rules.
A contract between the QF and the Utility is required by the Elk River Municipal
Utilities Commission's rules.
AGREEMENTS
The QF and the Utility agree:
1. The Utility will sell electricity to the QF under the rate schedule in force for the class
of customer to which the QF belongs.
2. The Utility will buy electricity from the QF under the current rate schedule for the
class of customer to which the QF belongs with the Commission. The QF has elected the
rate schedule category hereinafter indicated (select one):
a. Net energy billing rate.
b. Simultaneous purchase and sale billing rate.
c. Time-of--day purchase rates.
A copy of the current rate schedule is attached to this contract.
3. The rates for sales and purchases of electricity may change over the time this contract
is in force, due to actions of the Utility and the QF and the Utility agree that sales and
purchases will be made under the rates in effect each month during the time this contract
is in force.
4. The Utility will compute the charges and payments for purchases and sales for each
billing period. Any net credit to the QF will be made under one of the following options
as chosen by the QF:
1. Credit to the QF's account with the Utility.
2. Paid by check to the QF within 15 days of the billing date.
5. The QF must operate its electric generating facilities within any rules, regulations, and
policies adopted by the Utility on Cogeneration and Small Power Production which
provide reasonable technical connection and operating specifications for the QF.
6. The QF will operate its electric generating facilities so that they conform to the
national, state, and local electric and safety codes, and will be responsible for the costs of
conformance. Particular attention shall be given where voltage on the utility side of the
meter drops below nominal voltage, QF equipment shall automatically disconnect from
utility.
7. The QF is responsible for the actual, reasonable costs of interconnection including any
special metering which are estimated to be $ .The QF will pay the Utility
in this way:
8. The QF will give the Utility reasonable access to its property and electric generating
facilities if the configuration of those facilities does not permit disconnection or testing
from the Utility's side of the interconnection. If the Utility enters the QF's property, the
Utility will remain responsible for its personnel.
9. The Utility may stop providing electricity to the QF during a system emergency. The
Utility will not discriminate against the QF when it stops providing electricity or when it
resumes providing electricity.
10. The Utility may stop purchasing electricity from the QF when necessary for the
Utility to construct, install, maintain, repair, replace, remove, investigate, or inspect any
equipment or facilities within its electric system. The Utility will notify the QF before it
stops purchasing electricity in this way:
11. The QF will keep in force liability insurance against personal or property damage due
to the installation, interconnection, and operation of its electric generating facilities. The
amount of insurance coverage will be $ (The utility may not require an
amount greater than $300,000).
12. This contract becomes effective as soon as it is signed by the QF and the Utility. This
contract will remain in force until either the QF or the Utility gives written notice to the
other that the contract is canceled. This contract will be canceled 30 days after notice is
given.
13. This contract contains all the agreements made between the QF and the Utility except
that this contract shall at all times be subject to all rules and orders issued by the Elk
River Municipal Utilities Commission or other government agency having jurisdiction
over the subject matter of this contract. The QF and the Utility are not responsible for any
agreements other than those stated in this contract.
THE QF AND THE UTILITY HAVE READ THIS CONTRACT AND AGREE TO BE
BOUND BY ITS TERMS. AS EVIDENCE OF THEIR AGREEMENT, THEY HAVE
EACH SIGNED THIS CONTRACT BELOW ON THE DATE WRITTEN AT THE
BEGINNING OF THIS CONTRACT.
QF
By:
(Title)
UTILITY
By:
(Title)