1407 W North Temple, Suite 310 Salt Lake City, Utah 84114 November 9, 2016 VIA ELECTRONIC FILING AND OVERNIGHT DELIVERY Utah Public Service Commission Heber M. Wells Building, 4th Floor 160 East 300 South Salt Lake City, UT 84114 Attention: Gary Widerburg Commission Secretary RE: Docket No. 14-035-114 - In the Matter of the Investigation of the Costs and Benefits of PacifiCorp’s Net Metering Program Pursuant to Utah Code Annotated § 54-15-105.1 (“Net Metering Statute”) and the Order issued by the Public Service Commission of Utah (“Commission”) in this docket on November 10, 2015, Rocky Mountain Power hereby submits for filing an original and ten copies of this Compliance Filing and Request to Complete All Analyses Required Under the Net Metering Statute for the Evaluation of the Net Metering Program (“Compliance Filing”). The Compliance Filing consists of the filing, direct testimony of five witnesses and exhibits, and work files supporting the Compliance Filing. The Company will also provide an electronic version of this filing to [email protected]. Confidential electronic materials will be provided via CD. Rocky Mountain Power respectfully requests that all formal correspondence and requests for additional information regarding this filing be addressed to the following: By E-mail (preferred): [email protected] [email protected] [email protected] By regular mail: Data Request Response Center PacifiCorp 825 NE Multnomah, Suite 2000 Portland, OR 97232 Informal inquiries may be directed to Bob Lively at (801) 220-4052. Sincerely, Jeffrey K. Larsen Vice President, Regulation CC: Service List - Docket No. 14-035-114 CERTIFICATE OF SERVICE I hereby certify that on this 9th of November, 2016, a true and correct copy of the foregoing document was served by email and/or overnight mail on the following Parties in Docket No. 14-035-114: Division of Public Utilities Chris Parker (C) Division of Public Utilities 160 East 300 South, 4th Floor Salt Lake City, UT 84111 [email protected] William Powell (C) Division of Public Utilities 160 East 300 South, 4th Floor Salt Lake City, UT 84111 [email protected] Erika Tedder (C) Division of Public Utilities 160 East 300 South, 4th Floor Salt Lake City, UT 84111 [email protected] Utah Office of Consumer Services Michele Beck (C) Utah Office of Consumer Services 160 East 300 South, 2nd Floor Salt Lake City, UT 84111 [email protected] Cheryl Murray (C) Utah Office of Consumer Services 160 East 300 South, 2nd Floor Salt Lake City, UT 84111 [email protected] Bela Vastag (C) Utah Office of Consumer Services 160 East 300 South, 2nd Floor Salt Lake City, UT 84111 [email protected] Assistant Utah Attorney General Patricia Schmid (C) Assistant Attorney General 160 East 300 South, 5th Floor P.O. Box 140857 Salt Lake City, Utah 84114-0857 [email protected] Justin Jetter (C) Assistant Attorney General 160 East 300 South, 5th Floor P.O. Box 140857 Salt Lake City, Utah 84114-0857 [email protected] Rex Olsen (C) Assistant Attorney General 160 East 300 South, 5th Floor P.O. Box 140857 Salt Lake City, Utah 84114-0857 [email protected] 1 The Alliance for Solar Choice Bruce Plenk The Alliance for Solar Choice 2958 N. St. Augustine Pl. Tucson, AZ 85712 [email protected] Thadeus B. Culley (C) The Alliance for Solar Choice 2958 N. St. Augustine Pl. Tucson, AZ 85712 [email protected] Anne Smart [email protected] UCARE Michael D. Rossetti UCARE 13051 Shadowlands Lane Draper, UT 84020-8785 [email protected] Stanley T. Holmes UCARE 13051 Shadowlands Lane Draper, UT 84020-8785 [email protected] Sierra Club Travis Ritchie Sierra Club 85 Second Street, 2nd Floor San Francisco, CA 94105 [email protected] Casey Roberts Sierra Club 85 Second Street, 2nd Floor San Francisco, CA 94105 [email protected] Derek Nelson [email protected] Energy Strategies Kevin Higgins ENERGY STRATEGIES 215 S. State Street, #200 Salt Lake City, UT 84111 [email protected] Neal Townsend ENERGY STRATEGIES 215 S. State Street, #200 Salt Lake City, UT 84111 [email protected] Utah Solar Energy Association Elias Bishop [email protected] Chad Hofheins [email protected] Ballard Spahr Jerold G. Oldroyd [email protected] Theresa A. Foxley [email protected] Parsons Behle & Latimer William J. Evans [email protected] Vicki M. Baldwin [email protected] Brickfield, Burchette, Ritts & Stone, P.C. Peter J. Mattheis [email protected] Eric J. Lacey [email protected] 2 Boehm, Kurtz & Lowry Kurt J. Boehm, Esq. [email protected] Jody Kyler Cohn, Esq. [email protected] Utah Clean Energy Sarah Wright Utah Clean Energy 1014 2nd Avenue Salt Lake City, UT 84111 [email protected] Kate Bowman Utah Clean Energy 1014 2nd Avenue Salt Lake City, UT 84111 [email protected] Sophie Hayes (C) Utah Clean Energy 1014 2nd Avenue Salt Lake City, UT 84111 [email protected] USAF Utility Law Field Support Center Capt. Thomas A. Jernigan [email protected] Mrs. Karen White [email protected] PacifiCorp, dba Rocky Mountain Power Data Request Response Center PacifiCorp 825 NE Multnomah Street, Suite 2000 Portland, Oregon 97232 [email protected] D. Matthew Moscon Attorney for Rocky Mountain Power [email protected] Bob Lively [email protected] Yvonne Hogle [email protected] Daniel Solander [email protected] Tyler Poulson [email protected] Hatch James & Dodge Gary A. Dodge Hatch James & Dodge 10 West Broadway, Suite 400 Salt Lake City, UT 84101 [email protected] Interstate Renewable Energy Council, Inc. Sara Baldwin Auck [email protected] 3 Vivint Solar Stephen F. Mecham [email protected] Parsons Kinghorn Harris, P.C. Jeremy R. Cook [email protected] E-Quant Consulting LLC Robert Swenson [email protected] Keyes, Fox & Wiedman LLP David Wooley [email protected] IBEW Local 57 Arthur F. Sandack, Esq [email protected] Callister Nebeker & McCullough Brian W. Burnett, Esq. [email protected] J. Kennedy & Associates Stephen J. Baron [email protected] Greeenberg Traurig Meshach Y. Rhoades, Esq. [email protected] Wal-mart Stores Steve W. Chriss [email protected] SW Energy Efficiency Project Christine Brinker [email protected] ____________________________________ Jennifer Angell Supervisor, Regulatory Operations 4 R. Jeff Richards (7294) Yvonne R. Hogle (7550) Emily Wegener (12275) 1407 West North Temple, Suite 320 Salt Lake City, Utah 84116 Telephone No. (801) 220-4050 Facsimile No. (801) 220-3299 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] D. Matthew Moscon (6947) Gregory B. Monson (2294) Stoel Rives LLP 201 South Main Street, Suite 1100 Salt Lake City, Utah 84111 Telephone No. (801) 578-6929 Facsimile No. (801) 578-6999 E-mail: [email protected] E-mail: [email protected] Attorneys for Rocky Mountain Power BEFORE THE PUBLIC SERVICE COMMISSION OF UTAH Docket No. 14-035-114 COMPLIANCE FILING AND REQUEST TO COMPLETE ALL ANALYSES REQUIRED UNDER THE NET METERING STATUTE FOR THE EVALUATION OF THE NET METERING PROGRAM In the Matter of the Investigation of the Costs and Benefits of PacifiCorp’s Net Metering Program INTRODUCTION Pursuant to Utah Code Ann. § 54-15-105.1 (the "Net Metering Statute") and the Order issued by the Public Service Commission of Utah (“Commission”) in this docket on November 10, 2015 (“November 2015 Order”), Rocky Mountain Power, a division of PacifiCorp (“Company” or “Rocky Mountain Power”), submits this Compliance Filing and Request to Complete All Analyses Required under the Net Metering Statute for the Evaluation of the Net 1 Metering Program (“Compliance Filing”). In this Compliance Filing, the Company provides the Commission with the actual and counterfactual cost of service studies (“ACOS” and “CFCOS”), which were ordered by the Commission and were performed using calendar year 2015 actual data collected from the Company’s load research study. The Company asks the Commission to: (1) find that the CFCOS, the ACOS, and the net metering breakout cost of service study (“NEM Breakout COS”) are compliant with and fulfill the November 2015 Order; (2) find, based on the cost of service analyses, that the costs of the net metering program under the current rate structure exceed its benefits; (3) find, based on the cost of service analyses, that the unique usage characteristics of net metering customers justify segregating them into a distinct class; (4) determine that the current rate structure for net metering customers is unjust and unreasonable because it does not reflect the costs imposed on and benefits contributed to the system, and unfairly shifts costs from net metering customers to other customers; (5) approve, as just and reasonable, the Company’s proposed Schedule 136, Net Metering Service, with modifications to net metering service and Schedule 5, Residential Service for Customer Generators, which includes a three-part tariff structure that reflects the costs and benefits that net metering customers impose on and contribute to the system; and (6) approve a waiver of Utah Admin. R. 746-312-13, pursuant to Utah Admin. R. 746312-3(2) for changes to the application fee, as explained in more detail below. Concurrently with this filing, the Company is filing Advice 16-13 which requests the Commission to close currently effective residential net metering Schedule 135 to new service and 2 approve and implement Schedule 135A, effective December 10, 2016, on a temporary basis until the Commission issues its decision pursuant to the Net Metering Statute. The Company anticipates that part of the Commission’s decision in this Compliance Filing will be to approve Schedule 136 and its related Schedule 5 tariff, for electric Company service to residential net metering customers. SUMMARY A. Compliance Filing This Compliance Filing includes the studies that comply with the November 2015 Order, enabling the Commission to complete the evaluation of the Company’s net metering program required by the Net Metering Statute. The Net Metering Statute requires the Commission to “determine a just and reasonable charge, credit or ratemaking structure, including new or existing tariffs, in light of the costs and benefits of the net metering program.” Consistent with the framework directed by the Commission in the November 2015 Order, the Company prepared the ACOS, CFCOS and NEM Breakout COS that use calendar year 2015 actual load and production data collected from the Company’s load research study. The ACOS, CFCOS and NEM Breakout COS were also prepared consistent with Commission-approved standards that have evolved over many years.1 The Company’s data demonstrates that the costs of the net metering program do, in fact, exceed its benefits and that customers with private solar generation systems have unique load and cost characteristics that support a new rate structure from the rest of the residential class. Recent exponential growth of the net metering program, evident in the data supporting this filing and described in detail below and in testimony, precipitated this Compliance Filing and the 1 Company witness Robert Meredith discusses how the cost of service studies were prepared consistent with Commission-approved standards. 3 concurrent tariff advice letter filing, requesting immediate relief.2 The Company proposes to replace the current rate structure with a three-part rate structure that will include a fixed monthly charge, a demand charge, and an energy charge. Proposed Schedule 5 reflects the costs imposed on, and the benefits contributed to, the system by net metering customers. In the interim, the Company proposes a temporary tariff for net metering service as described in Section B below. The Company supports renewable resources and customer options for renewable resources. However, the options should be provided consistent with an appropriate rate structure that allows residential customers to use private solar generation without adversely affecting other residential customers. The combination of declining prices of private solar generation systems, continued availability of government subsidies and the kilowatt-hour compensation for excess generation have contributed to the rapid growth of private solar generation. This growth renders the current ratemaking structure unsustainable; accordingly, that structure must change. As is demonstrated by the results of the comparison of the ACOS to the CFCOS, under the current net metering program, the costs of the net metering program exceed the benefits to the system, and results in costs that will be unfairly borne by all other customers. For the net metering program to continue and be sustainable in the future, its rate structure must be modified to accurately reflect its impact on the system and to properly allocate costs between customers as part of a proper rate design. B. Tariff Advice Filing No. 16-13 Proposed Schedule 135A will be used to provide net metering services to new net metering customers on the same terms as Schedule 135 until the Commission’s ruling on this Compliance Filing and approval of proposed Schedule 136, or other tariff. Under proposed Schedule 135A, 2 As part of this docket, the Commission left open the possibility of addressing the ratemaking structure of the net metering program, “in a further phase of this docket, a general rate case or other appropriate proceeding.” November 2015 Order at 1. 4 customers who apply for residential net metering would be required to take service through a different meter, as under the current tariff,3 and would be on notice that, when proposed Schedule 136 or another tariff is approved, they will receive service under that schedule. The Company’s proposal offers a sustainable, long-term solution that is consistent with the state’s policy of encouraging, and the Company’s commitment to, cost-effective renewable energy. The proposed rate structure reflects the costs and benefits that residential net metering customers impose on and contribute to the system, and is consistent with the cost of service analyses. It produces rates that are “just and reasonable … in light of the costs and benefits”4 of the net metering program and is equitable to other customers. C. Compliance Filing Support The Compliance Filing is supported by the testimony of the following witnesses: Mr. Gary H. Hoogeveen provides an overview of the major components of the Company’s filings, explains why the Company’s proposals should be adopted consistent with the state policy of encouraging, and the Company’s commitment to, cost-effective renewable resources, and identifies the witnesses who will present detailed testimony supporting the filings. Ms. Joelle R. Steward explains the proposed tariff changes in this Compliance Filing, including policy considerations of cost of service and rate design and the unique usage characteristics and loads of net metering customers that justify their segregation into a different class. Ms. Steward’s testimony also explains the proposed new rates for residential customer generators that include a three-part rate structure designed to capture a monthly basic charge, a demand charge and an energy charge. She explains that the proposed rates are based on the same level of costs reflected in the Company’s 2014 general rate case, Docket No. 13-035-184 (“2014 3 4 Utah Code Ann. § 54-15-103(4)(a). Utah Code Ann. § 54-15-105.1(2). 5 GRC”). Ms. Steward's testimony also supports the Company's proposed changes to the application fees for the net metering program, including adding a fee for Level 1 applications, which will require a waiver of rule R746-312-13. Ms. Steward’s testimony explains that the Company's proposed changes to the fees are based on an assessment of the actual costs incurred to process applications and that recovery of the costs to process them, particularly for Level 1, has not kept pace with the growth in applications. Mr. Robert M. Meredith explains the inputs and results of the ACOS, CFCOS and the NEM Breakout COS. He also describes the load research study for private solar generation, and the incorporation of that data into the cost of service studies. Mr. Douglas L. Marx supports the engineering and administrative costs that are included in the cost of service studies and explains how private solar generation facilities can impact distribution planning and design criteria. He also explains the effects and ensuing costs and benefits of continued, unchecked growth of private solar generation on the Company’s distribution system. He describes the administrative costs related to net metering applications that justify the Company’s proposed application fee. Mr. Michael G. Wilding explains the net power costs and credits attributed to net metering customers in the cost of service studies. BACKGROUND The net metering program developed from a Commission order in Docket No. 97-035-01, in which the Commission organized a task force in the “interest of concrete proposals, well analyzed as to the costs and benefits, and the specifics of program delivery …” with respect to energy efficiency and renewable resources.5 That order set forth specific programs for which the 5 See In the Matter of the Investigation Into the Reasonableness of Rates and Charges of PacifiCorp, dba Utah Power & Light Company, Report and Order (March 4, 1999); 1999 WL 35637961, at *68 (Utah P.S.C. March 4, 1999). 6 parties requested additional analysis. Included in the list were green offerings, net metering, and energy efficiency.6 On December 23, 1999, the Energy Efficiency and Renewable Task Force recommended that a “net metering program be established in Utah Power’s service territory.”7 Pursuant to legislation, the net metering program officially launched in 2002.8 Over the years, the program has changed to implement amendments to net metering laws, encourage more participation in the program by establishing a higher amount of eligible generating capacity, incorporate statutory interconnection requirements, and change the rate credited for excess energy, among other modifications.9 One of the more significant modifications to the net metering program dealt with a change to the rate credited to net metering customers for excess energy in Docket No. 08-035-78. In that docket, titled “In the Matter of the Consideration of Changes to Rocky Mountain Power’s Schedule No. 135 - Net Metering Service,” parties requested, and the Commission approved, a change to the rate credited for excess energy from avoided costs to a kilowatt-hour credit, which amounts to credit for excess energy at the full retail rate.10 In the same docket, parties also requested a change to the cap for net metering cumulative generation capacity from 0.1 percent to 20 percent of the Company’s 2007 peak demand. Both modifications were based on perceived barriers to the implementation of the net metering program. The Company proposed a one percent cap and objected to the 20 percent cap because the cap appeared to give the impression of a target. The Company also cited engineering concerns with a 20 percent cap.11 Other parties either 6 Id. Docket No. 97-2035-01, Report of the Energy Efficiency and Renewable Task Force, at 36 (Utah P.S.C. December 23, 1999) at 36. 8 L. Utah 2002, Ch. 6. See also Docket No. 02-035-T05, Tariff Approval Letter (Utah P.S.C. June 24, 2002). 9 See Docket Nos. 08-035-78, 08-035-T04, 09-035-T03, 10-035-T04, 10-035-T12, 11-035-T05, 12-035-T09, 13-035T09, 13-035-T10, and 14-035-T06. 10 Docket No. 08-035-78, Report and Order at 13 (Utah P.S.C. February 12, 2009). 11 Id. at 6. 7 7 recommended or did not object to the 20 percent cap because of limited program participation at the time (the enrolled capacity for net metering was 540 kilowatts as of October 31, 2008).12 In its order approving the 20 percent cap, the Commission indicated that, to the extent the Company “determines it is being adversely affected by net metering … the Company has the ability to approach the Commission with information on both costs and benefits to address the issue.”13 Since then, the customer costs of installing a private solar generation system have dropped and subsidies have become available, which, in combination with the modifications to the program, have contributed to the popularity and growth of private solar generation in the state of Utah. By the end of 2013, about 2,200 customers participated in the program. By the end of calendar year 2015, that number had climbed to over 6,700 customers, a growth rate of 200 percent in just two years. As of October 7, 2016, 7,000 more customers enrolled, with 3,500 more expected to enroll by the end of this year, bringing the total number of net metering customers to over 17,000 by the end of 2016. In light of the subsidies embedded within the current rate structure of the net metering program, growth highlights the fact that the current ratemaking structure is unsustainable and, in fact, are increasingly harming other customers. Recognizing the significant growth and increasing costs of the program on other residential customers, Senate Bill 208 was enacted by the Utah Legislature in its 2014 Session and signed into law on March 25, 2014. It included the Net Metering Statute, which reads: 54-15-105.1. Determination of costs and benefits - Determination of just and reasonable charge, credit or ratemaking structure. The governing authority shall: (1) determine, after appropriate notice and opportunity for public comment, whether costs that the electrical corporation or other customers will incur from a 12 13 Id. Id. at 13. 8 net metering program will exceed the benefits of the net metering program, or whether the benefits of the net metering program will exceed the costs; and (2) determine a just and reasonable charge, credit, or ratemaking structure, including new or existing tariffs, in light of the costs and benefits. Utah Code Ann. § 54-15-105.1 (hereinafter, § 54-15-105.1(1) will be referred to as “Subsection One” and § 54-15-105.1(2) as “Subsection Two”). In the Company’s 2014 GRC, the Company requested approval of a proposed monthly fixed net metering facilities charge for residential net metering customers to cover distribution and certain customer service costs. In a notice issued April 16, 2014, following the enactment of the Net Metering Statute, the Commission stated its intent to address the implementation of the statute in the 2014 GRC. The Commission invited the public to submit written comments and also directed intervenors to address the costs and benefits of the net metering program as part of their written testimony on cost of service issues.14 Several parties filed testimony responding to the Company’s proposed charge and provided additional testimony regarding the costs and benefits of the net metering program. All other issues in the 2014 GRC were ultimately settled, so the final hearings held in that docket only concerned the proposed net metering charge. Following hearings, the Commission issued its order, declining to approve the proposed net metering charge in a two-to-one decision. Instead, “recognizing the importance of the issues raised by parties in the rate case,” the Commission established the current docket to examine the costs and benefits of the Company’s net metering program.15 The Commission also decided that it would perform the examination in steps: first it would establish an appropriate analytical framework to implement the new statute, 14 Docket No. 13-035-184, Public Notice (Utah P.S.C. April 16, 2014). Docket No. 14-035-114, Notices of Comment Period and Scheduling Conference, at 1; 2014 WL 6713287 at *1 (Utah P.S.C. November 21, 2014). 15 9 then it would “examine the costs and benefits that result from applying the data to the approved analytical framework” and determine whether any proposed changes in rates are just and reasonable. The analytical framework to be established to implement Subsection One was to “include the types of analyses that must be performed, the components of costs and benefits to be included in the analyses, and the sources and time period of data inputs.”16 The Commission indicated it would examine the costs and benefits that result from applying the data to the approved analytical framework, and ultimately make the Subsection Two determination, “in a further phase of this docket, a general rate case or other appropriate proceeding.”17 In preparation for the hearing on Subsection One of the Commission’s process, the Company requested that the Commission decide certain issues as a matter of law. Specifically, it asked the Commission to rule that “(1) the benefits and costs the Commission is to consider under [the Net Metering Statute] are limited to those accruing to RMP and its non-net metering customers; (2) those costs and benefits must be ‘actual’ and ‘quantifiable’; and (3) the statute excludes consideration of studies relating to benefits or costs outside of Utah.”18 On July 1, 2015, the Commission ruled that: (1) Subsection One of the Net Metering Statute is independent of Subsection Two; (2) the Commission would consider only the costs and benefits to current customers in their capacity as ratepayers; and (3) the Commission would not consider “costs and benefits that are either unquantifiable or not subject to reasonable verification.”19 16 Id. at 2. Docket No. 14-035-114, Notices of Comment Period and Scheduling Conference (Utah P.S.C. November 21, 2014). 18 Docket No. 14-035-114, Order Re: Conclusions of Law on Statutory Interpretation and Order Denying Motion to Strike, at 2; 2015 WL 4155503 at *2 (Utah P.S.C. July 1, 2015). 19 Id. at 17-18. 17 10 DISCUSSION A. The ACOS, CFCOS and NEM Breakout COS Comply with the Commission’s Direction in the November 2015 Order and Should Be Accepted. The Commission opened the current docket on August 29, 2014, to ensure a focused, complete and accurate evaluation of the net metering program. In an earlier phase of this docket, the Commission established the appropriate analytical framework to examine the costs and benefits of the net metering program. In November 2015, the Commission approved an analytical framework and directed the Company to file the ACOS and CFCOS: One study creates a counterfactual scenario that assumes away the existence of net metering customers’ power generation, meaning PacifiCorp must meet net metering customers’ full load and these customers push no energy back to the grid [“CFCOS”)]. . . . The second cost of service study . . . should reflect PacifiCorp’s actual cost of service inclusive of net metering customers’ participation [(“ACOS”)]. Under this scenario, PacifiCorp meets only net metering customers’ “net load” (i.e. net metering customers’ total consumption less the amount they selfgenerate) and the model includes the excess energy net metering customers push to the grid.20 This Compliance Filing satisfies the Commission’s directive and completes the requirements for the Commission to perform its duties under Subsection One. The ACOS, CFCOS and NEM Breakout COS were developed consistent with Commission approved standards that have evolved over many years. They reflect costs the Company incurs to provide electric service to customers who install private generation including fixed costs associated with back-office systems like accounting, billing, customer service, and meters; costs associated with use of the system; and costs related to the energy consumed including energy-related generation and transmission. They demonstrate that the current rate structure unfairly shifts a portion of these costs to other customers. 20 November 2015 Order at 5. 11 In its November 2015 Order, the Commission ordered that the CFCOS and ACOS be “commensurate with the test period in PacifiCorp’s next general rate case.”21 In its rejection of the Joint Parties’ proposal to use a 20-year study period, the Commission stated that a short-term study period would be far more useful for rate setting: We do not find this approach to be consistent with the Statute. The Division is correct to emphasize the framework we adopt for the Subsection One analysis must be useful for rate setting under Subsection Two. … Subsection One instructs us to assess the impact of net metering on the utility and its “other customers.” Those who are present customers of PacifiCorp may or may not be customers in two decades. We believe the Legislature was careful to include the term “other customers” in Subsection One because it was concerned about the near term impact net metering has on the utility’s other current customers.22 Consistent with the Commission’s direction of using a short-term period for the required analysis, and with the way general rates are set, the Company adjusted the 2015 test period cost of service results in the NEM Breakout Study to the revenue requirement approved in the 2014 GRC – on which all other current customer rates are based. This is also consistent with the November 2015 Order that the Subsection Two proceeding could take place “in a further phase of this docket, a general rate case or other appropriate proceeding.”23 The exponential growth of the net metering program and the findings from the comparison of the ACOS and CFCOS studies mandate this Compliance Filing before the preparation of the Company’s next general rate case. Utilization of the 2015 test period and the 2014 GRC revenue requirement is explained in more detail in the testimony and exhibits of Ms. Steward and Mr. Meredith. 21 November 2015 Order at 7. Id. at 14. 23 Id. at 1. 22 12 B. Net Metering Customers Have Unique Usage Characteristics that Support Creation of a Net Metering Residential Class Not only does the current net metering program unfairly shift a substantial portion of costs to other customers, the bi-directional use of the distribution system are unique net metering customer characteristics that differ from other customers. Unlike other customers, net metering customers both import and export electricity. They also require stand-by-only service when they are self-generating. This solar generation often does not coincide with the Company’s peak load, thus only minimally reducing that load. Company witness Mr. Marx testifies that a net metering customer’s peak production occurs during the spring months while their peak load, and that of other customers, occurs during the summer months. These factors necessitate increasing the size of the distribution facilities as a result of net metering. These unique usage characteristics justify segregating net metering customers from the residential class into a distinct class. In this way, the costs imposed on and benefits contributed to the system by net metering customers will be clearly identified. In addition, net metering customers will be fairly compensated for any capacity and energy benefits associated with their private solar generation systems. C. The Subsection One Cost/Benefit Analysis Justifies a Different Rate Structure for Net Metering Customers. Once the Commission determines the costs and benefits provided to the system by net metering, it must “determine a just and reasonable charge, credit or ratemaking structure, including new or existing tariffs, in light of the costs and benefits.”24 The 673 percent growth25 of the net metering program since 2013 mandates the Company’s request for the Commission to address the Subsection Two analysis and to approve its proposed Schedule 136 and Schedule 5. 24 Utah Code Ann. § 54-15-105.1(2). The Company used the total number of projects to determine the percentage in growth. There were 2,204 projects on December 31, 2013 and 14,841 projects on October 31, 2016. Had capacity been used as the metric, the percentage in growth would be 782 percent. The capacity was 14,657 on December 31, 2013 and 114,592 on October 31, 2016. 25 13 In the proposed Schedule 5 for service to residential customer generators, the Company proposes a three-part rate structure that accounts for the unique load characteristics of net metering customers and ensures that net metering customers pay a just and reasonable rate for service. The rate structure includes a fixed monthly charge, a charge for demand during peak hours, and an energy charge. The Company’s proposed three-part structure is calculated based on the Company’s cost of service studies. These charges are based on the specific costs that the Company incurs to provide electric service to net metering customers. The fixed monthly charge includes costs associated with connecting to the system that do not vary with usage like accounting, billing, customer service, meters and line transformers. The demand charge includes costs associated with the use of the distribution, generation, and transmission systems and reflects the maximum or peak load requirements of net metering customers. The energy charge reflects variable costs related to the energy net metering customers consume including net power costs and a portion of generation and transmission infrastructure. This proposed rate structure is described in more detail in the testimony and exhibits of Ms. Steward. The Company proposes that the new Schedules 136 and 5 become effective June 1, 2017, and apply to all net metering customers enrolling in the program on and after December 10, 2016, the proposed effective date of the concurrent filing in Tariff Advice No. 16-13 In its concurrently filed tariff advice, the Company requests that Schedule 135 be closed to new customers immediately (after the 30th day of the filing)26 and that customers requesting net metering service thereafter be served under proposed Schedule 135A until the Commission approves Schedules 136 and 5 and the new rate structure for residential customer generators. Proposed Schedule 135A facilitates a transition to a future rate design, whether it be through 25 See Utah Admin. R. R746-405-2(E)(2). 14 Schedule 5 or some other structure. It leaves residential net metering applicants on the existing program, but provides clear notice that this tariff is subject to change once the Commission has fulfilled its duties under the Net Metering Statute. The Company supports keeping the current net metering customers on the existing net metering program and rate schedule, as further explained in Mr. Hoogeveen's testimony. In addition, current net metering customers on Schedule 135 do not have meters that can measure on-peak demand, which will be required under proposed Schedule 136. As a result, a wholesale transition of these customers to the new schedule would be administratively and operationally challenging. Rather than requiring these customers to replace their meters when Schedule 136 or another rate structure is approved, the Company proposes that they be allowed to continue to receive service under Schedule 135. The Company expects this issue will be considered in a future proceeding. The Commission has regularly approved closing service to existing customers under similar circumstances. See, e.g., In the Matter of Bear Lake Comm’n, Inc., 2013 WL 4399208 (Utah P.S.C. August 8, 2013) (grandfathering emergency line service to existing customers); In re U.S. West Comm’n, 1999 WL 35639170 (Utah P.S.C. November 26, 1999) (grandfathering Centrex Plus service to existing customers); In Re U.S. West Paging, Inc., 93-2026-01, 1993 WL 501443 (July 2, 1993) (grandfathering mobile telephone service to existing customers). CONCLUSION AND REQUEST FOR RELIEF The Commission ordered the Company to prepare and analyze the ACOS, the CFCOS and the NEM Breakout COS. The Company has now done so. The results of those studies, as set forth in the testimony and exhibits supporting this Compliance Filing, bear out that the current net metering program does not account for the actual costs and benefits that net metering customers bring to the Company’s system. Instead, those studies show that net metering customers are 15 currently not covering their costs and will shift them to other customers or the Company if the current rate structure is left unchanged. Further, the NEM Breakout COS shows that net metering customers have unique characteristics that justify creating a separate net metering customer class so that the costs and benefits those customers bring to the system can be clearly identified and properly addressed. Based upon the foregoing and for good cause shown, Rocky Mountain Power requests that the Commission: (1) find that the CFCOS, the ACOS, and the net metering breakout cost of service study (“NEM Breakout COS”) are compliant with and fulfill the November 2015 Order; (2) find, based on the cost of service analyses, that the costs of the net metering program under the current rate structure exceed its benefits; (3) find, based on the cost of service analyses, that the unique usage characteristics of net metering customers justify segregating them into a distinct class; (4) determine that the current rate structure for net metering customers is unjust and unreasonable because it does not reflect the costs imposed on and benefits contributed to the system, and unfairly shifts costs from net metering customers to other customers or to the Company; (5) approve the Company’s proposed Schedule 136 with modifications to net metering service and Schedule 5, which includes a three-part tariff structure that reflects the costs and benefits that net metering customers impose on and contribute to the distribution system as just and reasonable, effective June 1, 2017; and (6) approve a waiver of Utah Admin. R. 746-312-13, pursuant to Utah Admin. R. 746312-3(2). 16 DATED: November 9, 2016. Respectfully Submitted, ___________________________ Yvonne R. Hogle Attorney for Rocky Mountain Power 17 Rocky Mountain Power Docket No. 16-035-____ Witness: Gary W. Hoogeveen BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Direct Testimony of Gary W. Hoogeveen November 2016 1 Q. dba Rocky Mountain Power (the “Company”). 2 3 Please state your name, business address and present position with PacifiCorp, A. My name is Gary W. Hoogeveen. My business address is 1407 West North Temple, 4 Suite 310, Salt Lake City, Utah 84116. My present position is Senior Vice President 5 and Chief Commercial Officer of Rocky Mountain Power. 6 Qualifications 7 Q. Please summarize your education and business experience. 8 A. I have a B.S. degree in Physics from the University of Northern Iowa and Masters 9 and Ph.D. degrees in Space Physics from Rice University. For the last 16 years, I 10 have worked for the Berkshire Hathaway Energy family of companies. In the five 11 years immediately preceding my current position at Rocky Mountain Power, I 12 served as President and Chief Executive Officer of the Kern River Gas 13 Transmission Company headquartered in Salt Lake City. 14 Q. What are your responsibilities with Rocky Mountain Power? 15 A. My main responsibilities focus on community affairs, public policy and building 16 relationships with our communities. These relationships facilitate open 17 communication that allow the Company to understand the needs of our customers 18 and to develop or change policies and programs that will meet those needs and keep 19 pace with the evolving environment. We work diligently across our organization to 20 offer the services our communities and customers want, without adversely affecting 21 other customers. I have been personally involved in advancing new programs that 22 provide additional options for customers who want more renewable energy and 23 have overseen the development of those programs with the objective of balancing Page 1 - Direct Testimony of Gary W. Hoogeveen 24 the needs of all customers and the Company's obligation to provide safe, reliable 25 and efficient electric service. 26 Purpose and Summary of Testimony 27 Q. What is the purpose of your testimony? 28 A. The purpose of my testimony is to introduce and support the Company’s 29 Compliance Filing and Request to Complete All Analyses Required Under the Net 30 Metering Statute for the Evaluation of the Net Metering Program ("Compliance 31 Filing"). The Compliance Filing includes the components that comply with the 32 Order issued by the Public Service Commission of Utah (“Commission”) in this 33 docket on November 10, 2015 (“November 2015 Order”), enabling the completion 34 of the evaluation of the net metering program required by Utah Code Ann. § 54-15- 35 105.1 (the "Net Metering Statute"). The Compliance Filing requests modifications 36 to the net metering program, including a new rate structure for residential net 37 metering customers. I also describe a corresponding tariff advice letter, filed 38 concurrently with the Compliance Filing, that requests to close to new service the 39 currently effective Schedule 135, Net Metering Service, and approve, in its place, 40 proposed Schedule 135A, which mirrors Schedule 135 and would be in place 41 temporarily until the Commission makes the final determination in Subsection Two 42 (as defined below) of the Net Metering Statute. I will give an overview of the major 43 components of the Company’s filings, explain why the Company’s proposals 44 should be adopted and identify the witnesses who will present the details of the 45 filings. Page 2 - Direct Testimony of Gary W. Hoogeveen 46 Q. Please summarize your testimony. 47 A. My testimony provides a general overview of the Compliance Filing and the 48 concurrently-filed tariff advice filing that are intended to complete the final phases 49 of the evaluation of the Company’s net metering program, required by the Net 50 Metering Statute. The Net Metering Statute requires the Commission to "determine 51 a just and reasonable charge, credit or ratemaking structure, including new or 52 existing tariffs, in light of the costs and benefits of the net metering program." 53 Consistent with the November 2015 Order, the Company prepared actual and 54 counterfactual cost of service studies (“ACOS” and “CFCOS”) and a study with 55 net metering segregated into its own class ("NEM Breakout COS"). The studies use 56 calendar year 2015 actual data, including data collected from the Company’s load 57 research study for residential net metering customers. The ACOS and CFCOS were 58 prepared consistent with Commission-approved standards for cost of service that 59 have evolved over many years. The Company’s data demonstrates that the costs of 60 the net metering program do, in fact, exceed its benefits and that residential 61 customers with private generation systems have unique load and cost characteristics 62 that require modification from the current rate structure to avoid cost-shifting to 63 other customers. Recent exponential growth of the net metering program, evident 64 in the data supporting this filing and described in detail below and in supporting 65 testimony, precipitated this Compliance Filing and the concurrent tariff advice 66 filing, requesting immediate relief.1 This dramatic growth forms the basis for the 1 As part of this docket, the Commission left open the possibility of addressing the ratemaking structure of the net metering program, "in a further phase of this docket, a general rate case or other appropriate proceeding." November 2015 Order at 1. Page 3 - Direct Testimony of Gary W. Hoogeveen 67 Company's recommendation to replace the current rate structure for residential net 68 metering customers with its proposed three-part rate structure, which includes a 69 fixed monthly charge, an on-peak demand, and an energy charge. Proposed 70 Schedule 5 reflects the costs and benefits to the system, and the unique load and 71 cost characteristics of net metering customers. In the interim, the Company also 72 proposes a transition tariff, Schedule 135A, as described below. 73 The Company supports renewable resources and customer choice for 74 additional renewable products as long as an appropriate rate structure is in place 75 that allows customers to use private generation without adversely affecting other 76 residential customers or the Company. However, the combination of declining 77 prices for private generation systems, generous government subsidies and excessive 78 retail rate compensation for their generation has contributed to exponential growth 79 that shifts costs to the Company and its other customers. This growth renders the 80 current ratemaking structure for residential net metering customers unsustainable; 81 accordingly, that structure must change to prevent adverse impacts to other 82 customers. 83 As is demonstrated by the results of the comparison of the ACOS to the 84 CFCOS, under the current net metering program, the costs of the program exceed 85 the benefits to the system, and the costs that should be paid by net metering 86 customers are shifted to other customers. With no change, this will result in 87 increasing levels of subsidies in favor of net metering customers built into other 88 customers' rates in future rate cases. In between cases, the Company bears the costs 89 resulting from the incremental growth in the number of new net metering Page 4 - Direct Testimony of Gary W. Hoogeveen 90 customers. This is the type of situation that was contemplated in the Commission's 91 order approving the change to the net metering cumulative generation capacity to a 92 20 percent cap of the Company's 2007 peak load from 0.1 percent. In that order, the 93 Commission extended an invitation to the Company to return to the Commission if 94 the extremely generous cap of 20 percent proved to be harmful.2 For the net 95 metering program to continue, its rate structure must be corrected to accurately 96 reflect the impact of the program on the system and to properly allocate costs 97 between customers as part of proper rate design. 98 Filing Request 99 Q. What does the Company seek in its filings? 100 A. In this Compliance Filing, the Company requests that the Commission: (1) Find that the CFCOS, the ACOS, and the NEM Breakout COS are 101 compliant with and fulfill the November 2015 Order; 102 (2) Find, based on the cost of service analyses, that the costs of the net metering 103 program under the current structure exceed its benefits; 104 105 (3) Find, based on the cost of service analyses, that the unique usage 106 characteristics of residential net metering customers justify segregating 107 them into a distinct class for ratemaking; 108 (4) Determine that the current rate structure for residential net metering 109 customers is unjust and unreasonable because it does not reflect the costs 110 imposed on and the benefits contributed to the system and unfairly shifts 111 costs of net metering customers to other customers; 2 Docket No. 08-035-78, Report and Order, at 13 (Utah P.S.C. February 12, 2009). Page 5 - Direct Testimony of Gary W. Hoogeveen 112 (5) Approve and implement the Company’s net metering program 113 modifications in the new Schedule 136 for net metering service, including 114 new application fees for interconnections and elimination of the option for 115 non-residential customers to take compensation at the average retail rate for 116 excess generation, effective June 1, 2017; 117 (6) Approve and implement new rates on Electric Service Schedule 5 for 118 residential customer generators that account for their differing load 119 characteristics and ensure that net metering customers pay for the fixed 120 costs for infrastructure, backup grid reliability, and electric service they 121 require, effective June 1, 2017; and 122 (7) Approve a waiver of Utah Admin. R. 746-312-13 to implement new 123 application fees, as explained in more detail in Company witness Ms. Joelle 124 R. Steward’s testimony. 125 Because time is of the essence due to the increasing growth in net metering 126 customers, the Company also seeks, through its concurrent tariff advice filing, 127 approval to close current Schedule 135 service to prospective net metering 128 customers who apply for net metering service after December 9, 2016. In addition, 129 the Company requests approval and implementation of Schedule 135A to be 130 effective after December 9, 2016, to be in place temporarily until the Commission 131 rules on Subsection Two of the Net Metering Statute (as defined below). Schedule 132 135A differs from Schedule 135 only in that it states “Customers will be subject to 133 all changes to net metering service including changes to credits, charges or rate 134 structures offered herein and in related tariffs resulting from the final determination Page 6 - Direct Testimony of Gary W. Hoogeveen 135 under Utah Code Ann. § 54-15-105.1 which may include, without limitation, a 136 transfer from this tariff to all new applicable service schedules approved by the 137 Commission." 138 The advice filing also includes a request for approval of a slight 139 modification to the Interconnection Agreement for Net Metering Service with the 140 Company, reflecting the shift to the new schedule at the appropriate time and 141 administrative updates. Prospective net metering customers applying for net 142 metering service after December 9, 2016, would be on notice that their rates may 143 change upon a final determination on Subsection Two of the Net Metering Statute. 144 Q. this time? 145 146 Why does the Company believe that a change to Schedule 135 is necessary at A. The Net Metering Statute requires the Commission to reconsider the ratemaking 147 structure in light of the costs and benefits of the program.3 Due to the exponential 148 growth of net metering, it is imperative that the Commission consider the issue 149 immediately to prevent significant cost shifts from net metering customers to all 150 other customers. The Company’s proposed change to the current net metering tariff 151 achieves the purpose and mandate of Senate Bill 208, enacted by the Utah 152 Legislature and signed into law on March 25, 2014, including the Net Metering 153 Statute, which reads: 154 155 54-15-105.1 Determination of costs and benefits - Determination of just and reasonable charge, credit or ratemaking structure. 156 The governing authority shall: 3 See also Utah Code Ann. § 54-4-4(1)(a)(i) and (ii) (requiring the Commission to take action if there is a finding that "rates ... are unjust, unreasonable ... or ... insufficient.") Page 7 - Direct Testimony of Gary W. Hoogeveen 157 158 159 160 161 (1) determine, after appropriate notice and opportunity for public comment, whether costs that the electrical corporation or other customers will incur from a net metering program will exceed the benefits of the net metering program, or whether the benefits of the net metering program will exceed the costs; and 162 163 164 (2) determine a just and reasonable charge, credit, or ratemaking structure, including new or existing tariffs, in light of the costs and benefits. 165 Utah Code Ann. § 54-15-105.1 (hereafter, § 54-15-105.1(1) will be referred to as 166 “Subsection One” and § 54-15-105.1(2) as “Subsection Two”). 167 The Commission opened the current docket to ensure a focused, complete, 168 and appropriate evaluation of the net metering program. In its November 2015 169 Order, the Commission approved the appropriate framework for the Subsection 170 One analysis, and directed the Company to file its ACOS, CFCOS, and NEM 171 Breakout COS. The Compliance Filing satisfies the Commission's directive. As is 172 demonstrated by the cost of service analyses, supported by the testimony and 173 exhibits of Company witness Mr. Robert M. Meredith, residential net metering 174 customers are not adequately covering the fixed costs associated with their use of 175 the grid. These costs are then shifted to all other customers. Private generation is 176 growing exponentially. In 2013, the Company was providing net metering service 177 to approximately 2,200 net metering customers. At the end of calendar year 2015, 178 approximately 6,700 of the Company’s Utah residential customers were enrolled 179 on Schedule 135. As of October 7, 2016, 7,000 additional customers have enrolled, 180 with over 3,500 more expected to enroll by the end of the year. As more customers 181 enroll in net metering, the cost shift to other customers is increasing and will 182 continue to do so if not addressed. Figure 1 below demonstrates the cumulative Page 8 - Direct Testimony of Gary W. Hoogeveen 183 count of customers participating in net metering over the past several years as well 184 as the Company's projection for the end of 2016. 185 186 Q. structure than other residential customers? 187 188 Why should residential net metering customers be subject to a different rate A. As is demonstrated by the testimony and exhibits filed by Company witnesses Ms. 189 Joelle Steward and Mr. Douglas L. Marx, the usage characteristics of net metering 190 customers differ from other residential customers, which the current rate structure 191 fails to adequately capture. Net metering customers use the grid more than other 192 customers because they both import and export electricity. In addition, because 193 peak solar generation often does not coincide with the time of the Company’s peak 194 load, net metering customers' private generation systems have only a modest ability 195 to reduce peak load. The Company incurs costs to build its system to meet peak 196 load. Mr. Marx testifies that a net metering customer’s peak production to the grid 197 occurs during the spring months, but their peak demand occurs during summer Page 9 - Direct Testimony of Gary W. Hoogeveen 198 months. These factors result in the need to increase the size of the distribution 199 facilities as a result of net metering. 200 Q. What rate structure is the Company proposing? 201 A. To satisfy Subsection Two of the Net Metering Statute, the Company proposes a 202 three-part rate structure that accounts for the unique load characteristics of 203 residential net metering customers and ensures that net metering customers pay 204 their fair share of fixed costs for infrastructure and backup grid reliability. This rate 205 design appropriately matches the costs to the customers that cause them. The 206 proposed rate structure includes a fixed monthly charge, a charge for demand 207 during peak hours, and an energy charge. The Company’s proposed three-part 208 structure is calculated based on the Company’s cost of service studies. The 209 proposed rate structure is described in more detail in the testimony and exhibits of 210 Ms. Steward. 211 Q. When does the Company propose the new rate structure take effect? 212 A. The Company requests the new rates take effect June 1, 2017. In Subsection Two 213 of the evaluation, the Commission must determine the appropriate charge, credit or 214 ratemaking structure in light of the costs and benefits determined in Subsection 215 One. Once the cost/benefit analysis under Subsection One is accepted, and a 216 showing is made that the costs of the net metering program exceed its benefits, the 217 Commission must implement Subsection Two in accordance with the mandate of 218 the Net Metering Statute. The Company proposes that the new rate structure 219 become effective when the Commission approves Schedule 136 and Schedule 5, 220 which the Company respectfully requests be by June 1, 2017, and that it apply to Page 10 - Direct Testimony of Gary W. Hoogeveen 221 new net metering customers on a prospective basis, as explained in detail in Ms. 222 Steward's testimony. 223 Q. How does the Company propose to treat current net metering customers? 224 A. The Company supports keeping the current net metering customers on the existing 225 net metering program and their current rate schedule. We acknowledge that current 226 customers made investments based on the current structure and respect the 227 customers' need for reasonable certainty for recovery of their investments. The 228 Company expects this issue to be considered in a future proceeding. Current 229 customers may voluntarily opt in to the new Schedule 5. 230 In addition, current net metering customers generally do not have meters 231 that are capable of billing the on-peak demand charge that is included in the 232 proposed rate structure. Transitioning these customers to the new schedule would 233 be operationally and administratively challenging. 234 History of Net Metering in Utah 235 Q. What is the history of the net metering program in Utah? 236 A. As a result of a Commission order in Docket No. 97-035-01, the Commission 237 agreed to organize a task force in the “interest of concrete proposals, well analyzed 238 as to the costs and benefits, and specifics of program delivery …” with respect to 239 energy efficiency and renewable resources.4 The order outlined specific programs 240 for which the parties requested analysis. Included in this list were green pricing, net 241 metering, and energy efficiency. On December 23, 1999, the Energy Efficiency and 4 See In the Matter of the Investigation Into the Reasonableness of Rates and Charges of PacifiCorp, dba Utah Power & Light Company, Report and Order (March 4, 1999), 1999 WL 35637961, at *68 (Utah P.S.C. March 4, 1999). Page 11 - Direct Testimony of Gary W. Hoogeveen 242 Renewable Task Force recommended that a “net metering program be established 243 in Utah Power’s service territory.”5 Pursuant to legislation, the net metering 244 program officially launched in 2002.6 Over the years, the net metering program has 245 changed to implement legislative amendments to the net metering law, encourage 246 more participation in the program by establishing a higher amount of generating 247 capacity, incorporate a requirement that net metering customers sign 248 interconnection agreements, and change the rate paid for excess energy, among 249 other modifications.7 250 Q. How have these modifications to the net metering program taken place? 251 A. One of the more significant modifications to the net metering program dealt with a 252 change to the credit to net metering customers for excess energy in Docket No. 08- 253 035-78. In that docket, titled In the Matter of the Consideration of Changes to 254 Rocky Mountain Power’s Schedule No. 135 - Net Metering Service, parties 255 requested and the Commission approved a change to the credit for excess energy 256 from avoided costs to the kilowatt-hour method, which amounts to a credit at the 257 full retail rate.8 In the same docket, the Commission approved a modification that 258 established a higher amount of generating capacity from private solar systems from 259 0.1 percent to 20 percent of the Company's 2007 peak demand.9 Both modifications 260 were based on perceived barriers to the implementation of the net metering 261 program. While most parties either recommended or did not object to the 20 percent 5 Docket No. 97-2035-01, Report of the Energy Efficiency and Renewable Task Force, at 36 (Utah P.S.C. December 23, 1999). 6 L. Utah 2002, Ch. 6.; See also Docket No. 02-035-T05, Tariff Approval Letter (Utah P.S.C. June 24, 2002). 7 See Docket Nos. 08-035-78, 08-035-T04, 09-035-T03, 10-035-T04, 10-035-T12, 11-035-T05, 12-035-T09, 13-035-T09, 13-035-T10, and 14-035-T06. 8 Docket No. 08-035-78, Report and Order, at 13 (Utah P.S.C. February 12, 2009). 9 Id. Page 12 - Direct Testimony of Gary W. Hoogeveen 262 cap, the Company proposed a one-percent cap and objected to the 20 percent cap. 263 In its order approving the 20 percent cap, the Commission indicated that, to the 264 extent the Company, "determines it is being adversely affected by net metering ... 265 the Company has the ability to approach the Commission with information on both 266 costs and benefits to address the issue."10 267 Q. in discrete cases? 268 269 Why has the Commission approved modifications to the net metering program A. Historically, the net metering program has been treated like the Company’s other 270 programs, including its energy efficiency programs, the Utah Solar Incentive 271 Program (“USIP”) and, more recently, its newly approved tariff programs and rates 272 for renewable energy options in Schedules 32 and 34. Changes to energy efficiency 273 programs and to USIP have typically also occurred in discrete cases. Similar to its 274 energy efficiency programs and USIP, the Company must file an annual report with 275 the Commission to provide updated information regarding, among other things, the 276 net metering program’s participation rates. 277 Q. How has the net metering program changed from its initial implementation? 278 A. The significant decrease in cost for private solar generation systems since its initial 279 implementation has undoubtedly been the most important factor in the growth of 280 the program. Graph 1 below shows the significant drop in the prices of solar panels 281 per watt from a high of approximately $100 in the 1970s to $0.61 in 2015. 10 Id. Page 13 - Direct Testimony of Gary W. Hoogeveen Graph 1. Solar panel prices11 282 283 However, government subsidies as well as the modifications I describe 284 above have also contributed to the rapid growth in solar installations. The 285 Company’s data demonstrates that private solar generation is increasingly popular 286 in Utah in particular, and is projected to grow at a similar pace for the foreseeable 287 future. This growth has highlighted the fact that the current ratemaking structure 288 for the net metering program is not sustainable and harms other customers. 289 Q. customers? 290 291 What challenges does private solar generation pose to the Company and its A. As shown in the testimony and exhibits of Ms. Steward and Mr. Meredith, the 292 results of the Subsection One cost/benefit analysis performed using a comparison 293 of the ACOS and the CFCOS show that the current ratemaking structure shifts costs 11 https://cleantechnica.com/2014/09/04/solar-panel-cost-trends-10-charts/ Page 14 - Direct Testimony of Gary W. Hoogeveen 294 to other customers in the amount of $2.0 million annually. If the current ratemaking 295 structure for residential net metering does not change, the Company's data indicates 296 that the cumulative cost shift related to residential net metering will be 297 approximately $670 million over the next 20 years. With no change, this will result 298 in increasing levels of subsidies in favor of net metering customers built into other 299 customers' rates in future rate cases. In between cases, the Company bears the costs 300 resulting from the incremental growth in the number of new net metering 301 customers. This is the type of situation that was contemplated in the Commission's 302 order approving the change to the net metering cumulative generation capacity from 303 one percent to a 20 percent cap of the Company's 2007 peak load. In that order, the 304 Commission provided that the Company could come back to the Commission if 305 the extremely generous cap of 20 percent proved to be harmful, which we now 306 know that it is under the current structure.12 307 Q. by net metering? 308 309 What has the Company proposed in the past to address the challenges posed A. In the Company’s 2014 general rate case in Docket No. 13-035-184 (“2014 GRC”), 310 the Company requested approval of a fixed monthly net metering facilities charge 311 for residential net metering customers to cover distribution and certain customer 312 service costs. In a notice issued April 16, 2014, the Commission stated its intent to 313 address the implementation of the Net Metering Statute in the 2014 GRC. The 314 Commission invited the public to submit written comments and also directed 315 intervenors to address the costs and benefits of the net metering program as part of 12 Docket No. 08-035-78, Report and Order, at 13 (Utah P.S.C. February 12, 2009). Page 15 - Direct Testimony of Gary W. Hoogeveen 316 their written testimony on cost of service issues. Several parties filed testimony 317 responding to the Company’s proposed charge and provided additional testimony 318 regarding the costs and benefits of the net metering program. All other issues in the 319 case were eventually settled, and the Commission held hearings devoted solely to 320 the net metering issue. Following the hearings, the Commission issued its order in 321 the 2014 GRC. In a two-to-one decision,13 the Commission declined to approve the 322 proposed net metering charge but, “recognizing the importance of the issues raised 323 by parties in the rate case,” established the current docket to examine the costs and 324 benefits of the Company’s net metering program.14 The Commission also decided 325 that it would perform the evaluation in two steps. After establishing the appropriate 326 analytical framework, the Commission indicated it would examine the costs and 327 benefits that result from applying the data to the approved analytical framework, 328 and ultimately make the Subsection Two determination, “in a further phase of this 329 docket, a general rate case or other appropriate proceeding.”15 330 Commitment to Renewable Energy 331 Q. Does the Company have a position on the use of renewable resources? 332 A. Yes. The Company supports the deployment of cost-effective renewable resources. 333 Currently, the Company’s owned generating capability is comprised of 334 approximately 20 percent renewable energy including wind, solar, and 13 See Docket No. 13-035-184, Report and Order, at 78 (Utah P.S.C. August 29, 2014) (dissenting, Chairman (then Commissioner) LeVar, stated, "I believe imposition of the proposed charge represents good public policy, sends proper price signals to homeowners considering an investment in a residential distributed general system, and better ensures viable and stable future growth of the residential net metering program."). 14 Docket No. 14-035-114, Notices of Comment Period and Scheduling Conference, at 1; WL 6713287 at *1 (Utah P.S.C. November 21, 2014). 15 Docket No. 14-035-114, Notices of Comment Period and Scheduling Conference (Utah P.S.C. November 21, 2014). Page 16 - Direct Testimony of Gary W. Hoogeveen 335 geothermal.16 The Company’s parent, Berkshire Hathaway Energy (“BHE”) is the 336 owner of MidAmerican Energy Company and PacifiCorp, which are, respectively, 337 the largest and second largest, rate-regulated utility owners of wind resources in the 338 U.S. according to the American Wind Energy Association. More than 42,000 Utah 339 customers are currently enrolled in the Company’s voluntary Blue Sky renewable 340 energy program. In 2015 alone, Blue Sky customers supported 159 million 341 kilowatt-hours of western region wind energy providing benefits equivalent to 342 planting 2.2 million trees. In January 2017, the Company will launch its Subscriber 343 Solar program, which is already approximately 98 percent subscribed. 344 Q. customers? 345 346 Does the Company support providing renewable resource service options to A. Yes. In response to our customers’ requests for more renewable resource options, 347 the Company created its Subscriber Solar program. This program provides many 348 advantages including: no upfront costs, no long-term commitments, no installation 349 or financing costs, and appropriate rate design for participating customers. In 350 addition, the Company recently obtained approval of Tariff Schedule 34, the 351 Renewable Energy Tariff. The Company wants to provide its customers with 352 renewable options at reasonably low costs. The Company's Subscriber Solar 353 Program, which is a utility-scale solar project (also referred to as universal solar), 354 meets both criteria. For example, wholesale universal solar can be acquired today 355 for less than $0.04/kWh, whereas retail net metering costs non-participating 16 All or some of the renewable energy attributes associated with wind, solar and geothermal facilities may be used in future years to comply with renewable portfolio standards or other regulatory requirements or sold to third parties in the form of renewable energy credits or other environmental commodities. Page 17 - Direct Testimony of Gary W. Hoogeveen 356 residential customers up to $0.145 kWh. As part of its parent company – BHE – 357 Rocky Mountain Power is a nationwide leader in the development of renewable 358 energy and, as such, supports customers' desire to participate in renewable energy, 359 including net metering programs, so long as those programs do not create adverse 360 impacts to the Company or its customers. 361 Q. Company addressing with this filing? 362 363 If the Company supports renewable energy and net metering, what is the A. Notwithstanding the Company’s support for renewable energy, the net metering 364 program must be implemented in a cost-effective manner and consistent with state 365 laws and policies.17 The Company supports the development of cost-effective 366 renewable energy and customers' desire to participate in renewable energy 367 programs, but it must not be at the expense of other customers or the Company. 368 Customers partially relying on self-generation through the net metering program 369 must pay their fair share of the costs to serve them, including costs associated with 370 electrical infrastructure and reliable energy when the private generation system is 371 not generating sufficient energy. In addition, the structure of the net metering 372 program must send accurate price signals to all customers in order to maximize 373 benefits to the utility’s system while, at the same time, protecting other customers 374 from unfair and unexpected cost shifting. More than 820,000 Rocky Mountain 375 Power customers are currently served in Utah with safe, reliable, and efficient 17 In addition to the mandate in the Net Metering Statute, Utah Code Ann. § 54-17-602 states “to the extent it is cost effective to do so, beginning in 2025 the annual retail electric sales in this state … must consist of qualifying electricity or renewable certificates in an amount equal to 20 percent of adjusted gross sales.” Page 18 - Direct Testimony of Gary W. Hoogeveen 376 electricity. The interests of all of these customers must be considered in designing 377 the net metering rate structure. 378 Q. of their testimony. 379 380 Please identify the witnesses supporting the Company’s filing and the subject A. The Company’s filing is further supported by Company witness Ms. Steward who 381 testifies about the policy considerations of cost of service and rate design; the 382 unique usage and load characteristics of net metering customers that justify their 383 separation to a different class within the residential class; the Company’s transition 384 plan I discussed briefly in my testimony above; and the Company’s proposed 385 ratemaking structure, including proposed tariffs and rate design proposals. 386 Company witness Mr. Meredith explains how the ACOS, CFCOS, and the NEM 387 Breakout COS were developed, the results of the comparison of the ACOS and 388 CFCOS, and the results of the Company's NEM Breakout COS relative to how the 389 net metering program impacts various customer classes. He also describes the load 390 research study and the incorporation of that data into the cost of service studies. 391 Company witness Mr. Marx supports the engineering and administration costs that 392 are included in the cost of service studies and explains how the Company accounts 393 for private solar generation facilities in the distribution design criteria and planning. 394 He also explains the potential effects of private solar generation on the Company’s 395 grid and distribution system. Finally, Company witness Mr. Michael G. Wilding 396 provides the net power cost benefits attributed to net metering customers. Page 19 - Direct Testimony of Gary W. Hoogeveen 397 Q. Please summarize your testimony 398 A. The Company's ACOS, CFCOS and NEM Breakout COS studies are appropriate, 399 reliable and were prepared consistent with the Commission's November 2015 400 Order. The results of these studies, as set forth in the testimony and exhibits 401 supporting the Compliance Filing, bear out that the current structure of the net 402 metering program does not accurately account for the actual costs and benefits that 403 net metering customers bring to the Company's system. Rather, those studies show 404 that net metering customers are currently shifting some of their costs to other 405 customers. Further, the NEM Breakout COS study shows that net metering 406 customers have unique characteristics that justify creating a separate residential net 407 metering customer class so that the costs and benefits those customers bring to the 408 system can be clearly identified and properly addressed. Based on the foregoing, 409 the Company asks that the Commission approve the Company's proposals set forth 410 in this Compliance Filing and in the concurrent tariff advice filing which address 411 the current problems with the net metering program and offer needed changes that 412 balance the interests of all customers. 413 Q. Does this conclude you testimony? 414 A. Yes. Page 20 - Direct Testimony of Gary W. Hoogeveen Rocky Mountain Power Docket No. 16-035-____ Witness: Joelle R. Steward BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Direct Testimony of Joelle R. Steward November 2016 1 Q. dba Rocky Mountain Power (“the Company”). 2 3 Please state your name, business address and present position with PacifiCorp, A. My name is Joelle R. Steward. My business address is 1407 West North Temple, 4 Salt Lake City, Utah 84116. My present position is Director, Rates & Regulatory 5 Affairs for the Company. 6 Qualifications 7 Q. Briefly describe your education and professional background. 8 A. I have a B.A. degree in Political Science from the University of Oregon and an 9 M.A. in Public Affairs from the Hubert Humphrey Institute of Public Policy at the 10 University of Minnesota. Between 1999 and March 2007, I was employed as a 11 Regulatory Analyst with the Washington Utilities and Transportation Commission. 12 I joined the Company in March 2007 as a Regulatory Manager, responsible for all 13 regulatory filings and proceedings in Oregon. In February 2012, I assumed 14 responsibilities overseeing cost of service and pricing for PacifiCorp. In May 2015, 15 I assumed my current position, with broader oversight over Rocky Mountain 16 Power’s regulatory affairs in addition to the cost of service and pricing 17 responsibilities. 18 Q. Have you appeared as a witness in previous regulatory proceedings? 19 A. Yes. I have testified in regulatory proceedings in Idaho, Oregon, Utah, Washington 20 and Wyoming. Page 1 – Direct Testimony of Joelle R. Steward 21 Purpose and Summary of Testimony 22 Q. What is the purpose of your testimony? 23 A. My testimony explains and supports the Company's filing and the proposed new 24 tariffs – Schedule 136, Net Metering Program, and Schedule 5, Residential Service 25 for Customer Generators. I also (i) explain the Company's proposal for new or 26 updated application fees for interconnection requests based on a more current 27 assessment of the administrative costs and (ii) sponsor the conforming changes in 28 the interconnection agreements. 29 Q. Please summarize your testimony. 30 A. The Company has experienced extensive growth in net metering since the 31 Commission initiated this proceeding following the Company's 2014 general rate 32 case. In light of that growth, the Company implemented the framework established 33 by the Commission in the first phase of this proceeding to evaluate whether the 34 costs of the net metering program exceed the benefits, as required by Utah Code § 35 54-15-105.1(1). The framework analysis is based on calendar year 2015 results, 36 which coincides with the availability of data from the Company's load research 37 study for residential net metering. The results of this analysis show that, under the 38 current rate structure, the costs of net metering exceeded the benefits by $2.0 39 million in 2015, of which $1.7 million is related to residential net metering 40 customers. This cost impact has already increased to at least $6.5 million per year 41 due to the growth in net metering in 2016. The Company estimates that, by 2020, 42 the cost shift would be $27 million per year based on current growth projections. 43 As a result, other customers will see higher rates in the future in order to pay for Page 2 – Direct Testimony of Joelle R. Steward 44 these costs. The analysis shows that residential net metering customers pay only 45 about 60 percent of the cost to serve them, whereas other residential customers pay 46 on average 96 percent of their costs. 47 This result is largely attributed to the current rate structure for residential 48 net metering customers. The current residential rate structure was designed to 49 recover most costs through volumetric energy rates. Net metering customers 50 currently receive compensation for their excess generation at the retail energy rate. 51 Since this retail energy rate recovers most of the fixed costs necessary to serve 52 customers, net metering customers are being compensated as much as 14.5 53 cents/kilowatt-hour ("kWh"), far in excess of the value of their energy to the 54 system. In comparison, the Company pays small power producers less than 4 55 cents/kWh for their solar output through avoided cost prices. 56 Data from the load research study shows that the profile of residential net 57 metering customers is distinctly different and, while those customers may take less 58 energy (kWh) from the grid than before, their overall demand (kW) requirements 59 are not reduced proportionally. Since most costs are driven by demand, the energy- 60 based rate structure does not adequately cover costs to serve residential customer 61 generators. The magnitude of the cost shift is not as significant for non-residential 62 net metering customers because their rate structure already better captures 63 differences in usage profiles among customers in the same class. To minimize the 64 residential cost shift, the Company is proposing a new rate schedule and rate 65 structure – Schedule 5, Residential Service for Customer Generators – for 66 residential customers who apply to participate in net metering after the effective Page 3 – Direct Testimony of Joelle R. Steward 67 date of the proposed transitional net metering program tariff, Schedule 135A, which 68 was filed concurrently with this compliance filing. 69 For Schedule 5, the Company is proposing a three-part rate structure, 70 comprised of a monthly customer charge of $15.00; a demand charge for the peak 71 periods of 3:00 p.m. to 8:00 p.m., Monday through Friday year round, with an 72 additional peak period from 8:00 a.m. to 10:00 a.m., Monday through Friday in the 73 winter months of October through April; and an energy charge. This rate structure 74 will send a better price signal to individual customers because their rates will more 75 closely align with the way costs are allocated in the cost of service study. Similar 76 to non-residential rates, this rate structure rewards customers who use the grid more 77 efficiently (i.e., higher load factor customers) with lower average rates. Residential 78 customer generators would still receive compensation through the energy charge, 79 which more closely approximates the cost to the Company to provide the equivalent 80 energy. As such, a new residential net metering customer who uses about 1,000 81 kWh per month can still achieve bill savings between 11 percent and 60 percent, 82 from their current bill, depending on how much their generation facility is able to 83 offset their usage. 84 On Schedule 136, the Company is proposing to eliminate the option for new 85 non-residential customers to receive compensation for their excess energy at the 86 average retail rate, since this rate includes recovery of fixed costs. Non-residential 87 customers may still choose between the two other compensation options, which are 88 tied to avoided costs. Page 4 – Direct Testimony of Joelle R. Steward 89 The Company is also proposing to increase the current net metering 90 application fees. The increases are necessary to cover the administrative costs 91 necessary to process applications. For Level 1 interconnections, the Company 92 proposes to implement a one-time application fee of $60. For Level 2 and 3 93 interconnections, the Company proposes increasing the current fees to $75 plus 94 $1.50 per kW, and $150 plus $3.00 per kW, respectively. 95 Lastly, to alleviate concerns the filing will result in increased revenues for 96 the Company outside of a general rate case, the Company is willing to defer any 97 difference in revenues between current rates and the new rates on Schedule 5. The 98 Company would make a proposal for amortization of the deferral balance in its next 99 general rate case. 100 Purpose of Filings 101 Q. Why is the Company making this filing? 102 A. In 2014, the Utah Legislature enacted Utah Code § 54-15-105.1 ("Net Metering 103 Statute"), requiring the Commission to determine whether the costs of net metering 104 exceed its benefits or vice versa and, if so, to determine an appropriate charge, 105 credit, or rate structure based on that determination. The Commission initially 106 considered this issue in the Company's 2014 general rate case, Docket No. 13-035- 107 184 ("2014 GRC"), but opened Docket No. 14-035-114 to make the determinations 108 mandated by the Net Metering Statute. The Company prepared the analyses set 109 forth by the Commission's November 10, 2015 Order in Docket No. 14-035-114 110 (the “November 2015 Order”) to evaluate whether the costs of net metering 111 program exceed the benefits or the benefits exceed the costs. The Company used a Page 5 – Direct Testimony of Joelle R. Steward 112 calendar year 2015 study period (“Study Period”) for the analyses, which 113 corresponds with the data collected from the Company’s load research study for 114 residential net metering customers. Over the Study Period, the Company had an 115 average of about 5,000 net metering customers. 116 Q. Please summarize the current and forecast growth in net metering. 117 A. Since the Company initially raised concerns about cost shifting due to net metering 118 in the 2014 GRC, there has been an increase of over 600 percent in the number of 119 net metering participants. The Company is now seeing approximately 1000 new 120 applications each month. The vast majority -- approximately 97 percent -- are from 121 residential customers. With this growth rate, the Company projects that it will have 122 over 16,000 residential net metering customers with nearly 100 MW of private 123 customer generation in Utah by the end of 2016. Figure 1 below shows the growth 124 in net metering by residential and non-residential. 125 Page 6 – Direct Testimony of Joelle R. Steward 126 Growth in private generation is expected to continue into the future. For the 127 2017 Integrated Resource Plan, the Company commissioned an independent study 128 to project the level of private generation growth over the next two decades based 129 on updated information on technology costs, performance, incentives, and market 130 conditions. This study projects an average of 40.5 MW per year of new private 131 generation capacity in Utah over the next two decades in the base case.1 132 Q. 2015 Order. 133 134 Please summarize the analyses ordered by the Commission in the November A. In its November 2015 Order, the Commission established a framework that 135 evaluates whether and how the net metering program impacts rates for other 136 customers. The framework provides multiple views through two different analyses 137 for perspective on how other customers' rates may be impacted by the net metering 138 program. 139 The first analysis compares two cost of service studies over a test period; 140 one that reflects the actual cost of service with net metering customers’ participation 141 (the “ACOS” study), and one under which the Company uses its best efforts to 142 estimate what the cost of service would be if net metering customers produce no 143 electricity (the “CFCOS” study). The Commission ordered that both the ACOS and 144 CFCOS studies reflect costs and benefits at the system, state, and customer class 145 levels. The second analysis segregates net metering customers in the ACOS study 146 from the class in which they participate ("NEM Breakout COS" study). For 1 Private Generation Long-Term Resource Assessment (2017-2036), Navigant Consulting, Inc., July 29, 2016, at 26. http://www.pacificorp.com/content/dam/pacificorp/doc/Energy_Sources/Integrated_Resource_Plan/2017_I RP/PacifiCorp_IRP_DG_Resource_Assessment_Final.pdf Page 7 – Direct Testimony of Joelle R. Steward 147 example, a separate residential net metering customer class is created in the cost of 148 service study, which shows the impact net metering customers have on the 149 residential non-net metering class and how well they recover the costs to serve 150 them. 151 The Commission adopted this multi-part evaluation framework to fulfill the 152 legislative requirements set in Utah Code § 54-15-105.1(1) (“Subsection One”). 153 The Commission determined that, since Subsection One is intended to be useful for 154 rate structure setting under Utah Code § 54-15-105.1(2) (“Subsection Two”), the 155 analysis necessarily must be conducted in a manner and on a period commensurate 156 with rate setting. By relying on the cost of service model, which is a key 157 consideration in the development of rates for all customers, the Commission’s 158 framework is consistent with the legislative direction and provides practical results 159 that will inform rate structuring. 160 Q. the Commission? 161 162 What are the results of implementing the evaluation framework directed by A. The analyses show that the current net metering program results in higher rates for 163 other customers. Table 1 below summarizes the results of the comparison of the 164 ACOS and CFCOS studies and shows that, for the Study Period, the net metering 165 program increases costs to customers in Utah at the system, state, and class levels. 166 Table 2 below summarizes the results for the NEM Breakout COS study. The direct 167 testimony of Company witness Mr. Robert M. Meredith explains the inputs and 168 presents the results of these analyses in more detail. Page 8 – Direct Testimony of Joelle R. Steward Table 1. Net Cost/(Benefit) of the Net Metering Program 169 System Level State Level Residential Schedule 23 Schedule 6 Schedule 8 Schedule 10 Other Classes Total Customer Class Level $ $ $ $ $ $ $ Cost Benefit (000) (000) $5,010 ($1,287) $5,010 ($2,960) 3,540 $ (1,881) 504 $ (405) 673 $ (650) 240 $ (395) 29 $ (21) 22 $ 393 5,009 $ (2,960) Net Cost/ (Benefit) (000) $3,722 $2,049 $ 1,659 $ 100 $ 23 $ (155) $ 7 $ 415 $ 2,049 Table 2. Actual Cost of Service Results of Segregated Net Metering Classes 170 Residential Schedule 23 Schedule 10 Schedule 6 Schedule 8 Parity to Cost of Service ACOS ACOS W/O NEM ACOS NEM 96.0% 96.1% 60.6% 107.2% 107.3% 92.2% 95.3% 95.1% 89.8% 107.7% 107.7% 109.2% 104.1% 104.0% 109.0% These results show that, for the residential class, the current net metering 171 program results in higher rates for other residential customers. 172 173 Q. Why does the net metering program result in higher rates for other customers? 174 A. The primary reason is because the revenue received from net metering customers 175 does not cover the costs of serving them. This is shown explicitly in Table 2 where 176 the net metering residential class is paying only about 61 percent of their cost of 177 service. In contrast, the other residential class pays 96 percent of their cost of 178 service. Mr. Meredith’s Exhibit RMP__(RMM-1) shows that the net cost shifted to 179 other residential customers from net metering is approximately $400 per year per Page 9 – Direct Testimony of Joelle R. Steward 180 residential net metering customer. This means that the rates for other residential 181 customers are or will be increased to cover the costs incurred to serve residential 182 net metering customers. The analyses take into account the unique characteristics 183 of net metering customers and the value provided by their private generation 184 systems. Despite the benefits created by their private generation systems, the 185 current rate structure does not adequately recover the costs to serve them and 186 essentially over-compensates residential net metering customers for their 187 generation. 188 This result is largely caused by the fact that the current residential rate 189 structure relies on recovering most costs through volumetric energy rates. As the 190 results in Tables 1 and 2 show, the magnitude of the net metering cost shifting for 191 the non-residential rate classes isn’t as significant. This disparity is due to the 192 difference in the rate structures between residential and non-residential rates that I 193 will discuss later in my testimony. 194 Q. net metering is not addressed soon? 195 196 What is the potential impact of the cost shift to other residential customers if A. While the analysis for the 2015 Study Period shows a cost shift for residential net 197 metering in Utah of $1.8 million under the NEM Breakout, extrapolating that level 198 of cost shifting to current residential net metering participation as of October 7 of 199 this year produces a cost shift of $6.5 million due to the rapid growth in 200 installations. By 2020, the cost shift would be about $27 million per year based on 201 the current growth projections. At the current net metering program cap of 923 MW 202 (i.e., 20 percent of the 2007 peak load) set by the Commission in Docket No. 08- Page 10 – Direct Testimony of Joelle R. Steward 203 035-78, the potential cost shift to other customers would be approximately $78 204 million annually. Over the next 20 years, the cumulative cost shifting related to 205 residential net metering is estimated to be approximately $667 million. 206 In order to minimize this cost shift, the Company is proposing to close the 207 current net metering program to new customers and to implement modifications to 208 the program that will mitigate cost shifting while providing more appropriate 209 compensation to net metering customers. In light of the adverse impacts on other 210 customers, the Company is proposing net metering program and residential rate 211 changes for customer generators in order to moderate future impacts. 212 Overview of Proposed Tariff Revisions 213 Q. impacts of the net metering program on other customers. 214 215 216 217 218 219 220 Please summarize the Company’s proposed tariff revisions to address cost A. In conjunction with Tariff Advice No. 16-13, filed concurrently with this Compliance Filing, the Company is requesting approval of the following: 1. Revisions to Schedule 135, Net Metering Service, to close it to new service, effective after December 9, 2016; 2. Schedule 135A, Net Metering – Transition Service, effective after December 9, 2016; 221 3. Schedule 136, Net Metering Program, effective June 1, 2017, for 222 modifications to the net metering program for applications received after 223 December 9, 2016; and Page 11 – Direct Testimony of Joelle R. Steward 224 4. Schedule 5, Residential Service to Customer Generators, effective June 1, 225 2017, for new rates to residential customers who submit applications for net 226 metering after December 9, 2016, and are interconnected. 227 Exhibit RMP__(JRS-1) contains the proposed tariffs for Schedule 136 and 228 Schedule 5. In addition to these tariff changes, the Company proposes changes to 229 the application fees currently authorized by R746-312-13. The proposed 230 application fees are based on the Company’s experience and actual costs to process 231 net metering applications. Exhibit RMP__(JRS-2) contains revisions to the 232 interconnection agreements to update the application fee changes in this filing, as 233 required by R746-312-17(1)(f). 234 Q. Please explain the Company’s proposed tariff changes in Advice No. 16-13. 235 A. Advice No. 16-13 seeks modifications to Schedule 135, Net Metering Service, to 236 close it to new service and to implement a new Schedule 135A, Net Metering – 237 Transition Service. Schedule 135A mirrors the current Schedule 135 with the 238 exception that it includes the following provision in the Availability Section: 239 Customers will be subject to all changes to net metering service including 240 changes to credits, charges or rate structures offered herein and in related 241 tariffs resulting from the final determination under Utah Code Ann. § 54- 242 15-105.1 which may include, without limitation, a transfer from this tariff 243 to all new applicable service schedules approved by the Commission. 244 The Company proposes to have Schedule 135A in effect until the Commission 245 makes a determination on Subsection Two of the Net Metering Statute and 246 substantive modifications to the net metering program, which the Company seeks Page 12 – Direct Testimony of Joelle R. Steward 247 in the present Compliance Filing. The Company is proposing an effective date of 248 December 10, 2016, for the tariff changes in Advice No. 16-13. The Company is 249 requesting these tariff changes for Schedules 135 and 135A to provide interim 250 service to customers that submit applications for net metering service under terms 251 consistent with the current program. 252 Q. Why is the Company proposing the changes in Advice No. 16-13? 253 A. To mitigate potential cost shifts to other customers, the Company proposes to 254 implement Schedule 135A as a transition tariff that will provide explicit notice to 255 new net metering applicants that there may be changes to the service and rates for 256 net metering customers following the conclusion of this proceeding. Without this 257 transition tariff and notice, the Company would expect a significant groundswell of 258 new program applications in the hopes that any program modifications would not 259 apply to net metering customers for whom applications had been received or 260 interconnections completed prior to the final Commission determination in this 261 proceeding. The advice filing includes revisions to the standard interconnection and 262 net metering service agreements to reference the tariff schedule change. 263 Q. Please explain proposed tariff Schedule 136. 264 A. Schedule 136 provides net metering service with modifications to address cost 265 shifting as reflected in the results of the analyses directed by the Commission. As 266 discussed by Company witness Mr. Gary Hoogeveen, since the costs of distributed 267 generation, in particular rooftop solar photovoltaic, have significantly decreased 268 over the last few years, incentives in the form of the current retail rates are no longer 269 necessary. The specific changes to the program include: Page 13 – Direct Testimony of Joelle R. Steward 270 1. A new provision that requires residential customers who participate in the 271 net metering program to take electric service under the proposed Schedule 272 5, Residential Service for Customer Generators; and 2. Elimination of the option for large non-residential customers to receive 273 compensation for excess generation at the average retail rate. 274 275 I address each of these in more detail below. The other features of the net metering 276 program remain unchanged. 277 Overview of Schedule 5 - Electric Service for Customer Generators 278 Q. for residential customer generators, Schedule 5. 279 280 Please summarize the Company’s proposal to implement a new rate schedule A. The Company is proposing a new rate structure for residential customer generators 281 who participate in the net metering program under Schedule 136. The proposed rate 282 structure will more directly capture the benefits these customers bring in rate setting 283 as well as the costs, on both a class level and individual customer level, and will 284 minimize cost shifting to other customers. Specifically, the Company is proposing 285 a rate structure similar to that used for non-residential customers, comprised of a 286 monthly customer charge, a peak demand charge, and an energy charge. Exhibit 287 RMP_(JRS-3) and Table 3 below show the proposed rates for Schedule 5. Page 14 – Direct Testimony of Joelle R. Steward Table 3 288 289 Q. How were these rates calculated? 290 A. While the ACOS and CFCOS are useful for evaluating the impacts of the net 291 metering program, the NEM Breakout COS study is more instructive in rate 292 structuring under Subsection Two in the Net Metering Statute, as the Commission 293 noted in its November 2015 Order.2 Accordingly, the Company used the cost of 294 service from the NEM Breakout COS study results presented in this filing and 295 adjusted the results to the revenue requirement and current rates approved by the 296 Commission in the Company’s 2014 GRC. In this way, the new rates on Schedule 297 5 for customer generators are consistent with the revenue requirement and rates 298 designed to recover that revenue requirement for all customers approved by the 2 November 2015 Order, at 11. Page 15 – Direct Testimony of Joelle R. Steward 299 Commission in the 2014 GRC. The NEM Breakout COS results are used as the 300 starting point because they reflect the usage characteristics of the net metering class 301 from the 2015 load research study. The adjustment process from the current cost of 302 service study to the 2014 GRC is explained in more detail in Mr. Meredith’s direct 303 testimony. 304 Q. metering customers? 305 306 Why is the Company proposing this new rate schedule for only residential net A. As shown above, the cost of service analyses demonstrate that as a result of the 307 large credit residential net metering customers receive through current rates for 308 their excess generation, other customers' rates will increase in order to recover the 309 same costs over fewer volumes. While the overall magnitude of the cost shifting is 310 relatively small now, providing a separate rate schedule and a new rate structure for 311 residential net metering customers will minimize the impact on other customers and 312 reflect the different characteristics of residential net metering customers. 313 In addition, as Mr. Meredith’s testimony shows, the cost shifting concern is 314 less significant or even non-existent for non-residential classes. As I’ll show later, 315 the rate structures for non-residential customers already send better price signals 316 and accommodate differences in load profiles for customers within the class, so 317 costs are less likely to be under-recovered. For these reasons the Company is not 318 proposing changes to the rate structures for non-residential net metering customers 319 at this time. However, I do recommend elimination of the option for compensation 320 at the average retail rate for excess energy for large non-residential customers, as 321 discussed further below. Page 16 – Direct Testimony of Joelle R. Steward 322 Q. from other residential customers? 323 324 How are the characteristics of residential net metering customers different A. Data from the Company’s load research study for residential net metering 325 customers, discussed in more detail in Mr. Meredith’s testimony, shows that 326 customers with on-site private generation have a different load profile than other 327 residential customers, but not necessarily a different peak requirement. Figures 2 328 and 3 compare the profiles from the 2015 study. Figure 2 is the average annual 329 hourly load and Figure 3 is the peak day. 330 Page 17 – Direct Testimony of Joelle R. Steward 331 332 As Figure 2 shows, while net metering customers may take less energy 333 (kWh) from the grid, their overall demand (kW) requirements from the grid may 334 remain relatively unchanged. However, since costs associated with demand are 335 recovered in the energy charges, net metering customers get credited for demand- 336 related costs through the netting process for excess generation output, even though 337 they continue to place a demand requirement on the system. In contrast to non- 338 residential customer rate designs, the residential rate structure does not adequately 339 capture the demand requirements placed on the system to serve these customers 340 because it largely relies on energy charges. Net metering customers’ usage also 341 results in lower load factors for net metering customers compared to other 342 residential customers. Lower load factors have more variability in usage and are 343 more costly to serve than flatter, more consistent usage patterns. Page 18 – Direct Testimony of Joelle R. Steward 344 Q. partially served by their own generation? 345 346 Aren’t net metering customers similar to small use customers if they are A. No. Almost all net metering customers have solar private generation systems. The 347 peak energy output of these solar systems occurs in the middle of the day prior to 348 the timing of both the system and class level peaks. As a result of this output, the 349 energy requirements for these customers are reduced, but the peak demand is either 350 unchanged or reduced very modestly. This results in lower (less efficient) load 351 factors for these customers. In contrast, the profile for all residential customers is 352 very consistent between different energy usage levels. Figure 4 below shows a 353 comparison of the profiles among different energy usage levels in the load research 354 sample for all residential customers. 355 356 In addition to lower load factors, residential net metering customers 357 fundamentally use the system differently than low energy-use residential 358 customers, since they use the energy grid not only to receive energy from the 359 Company’s facilities, but also to export excess energy that they produce to the Page 19 – Direct Testimony of Joelle R. Steward 360 Company’s system. Table 4 below shows the difference in average characteristics 361 between residential customers with and without generation. Table 4. Differences in Customer Characteristics 362 363 Q. allocations and rate designs. 364 365 Please explain why demand costs are an important consideration in cost A. A customer class’s demand requirements – the class’s usage during the single hour 366 of each of the system coincident peaks and state distribution coincident peaks – 367 significantly influences cost incurrence and allocation. For instance, Table 5 below 368 shows the difference in cost drivers in the cost of service study for the residential 369 class in the ACOS and then the residential class in the NEM Breakout COS. Table 370 5 shows that over 60 percent of costs are allocated on demand-based measurements. 371 Most of the Company’s costs are allocated in class cost of service studies on 372 demand-based measurements because the system is designed to serve load at 373 different peaks. 374 Table 5. Residential Cost Allocation Drivers Page 20 – Direct Testimony of Joelle R. Steward 375 Q. problematic. 376 377 Please elaborate on why providing a credit at the current full retail rate is A. As the NEM Breakout COS study demonstrates (see Table 2 above), the cost of 378 service results for residential net metering customers are different than the results 379 for other residential customers; residential net metering customers contribute about 380 61 percent to the cost of serving them, compared to other customers who cover 381 about 96 percent of the costs to serve them. This difference is due to the current net 382 metering compensation approach, which provides a credit for a customer’s private 383 generation output at the full retail rate. 384 Currently, recovery of nearly all of the infrastructure costs for the electric 385 system allocated to residential customers is achieved entirely through energy rates. 386 Figure 5 below shows that while approximately 70 percent of residential costs are 387 demand- or customer-related costs, over 90 percent of the revenue comes from 388 variable energy-related charges. 389 Page 21 – Direct Testimony of Joelle R. Steward 390 As a result of current residential rate design, the credit that net metering 391 customers receive for generation output in excess of their usage includes the costs 392 for the infrastructure required to serve them. The residential retail rate ranges from 393 8.5 cents per kWh to 14.5 cents per kWh. In contrast, the Company purchases 394 power from third-party developers through avoided cost pricing at less than 4 cents 395 per kWh, so the purchase of excess output from net metering customers is more 396 costly to other customers than if the Company had generated the energy itself or 397 purchased it from a third party. 398 Proposed Rate Structure 399 Q. Schedule 5. 400 401 402 Please describe what is included in each of the proposed rate components for A. The proposed rates are comprised of the following costs: • The monthly customer charge of $15.00 is designed to recover costs related to 403 customer services and certain components of the distribution system, 404 specifically service lines, meters, and line transformers. This customer charge 405 assumes that the Commission adopts the Company’s proposed application fee 406 for Level 1 net metering customers, discussed later in my testimony. The 407 Company proposes to recover the program administrative costs through a one- 408 time application fee rather than through base rates. The customer charge would 409 be higher if the administrative costs associated with handling applications is not 410 recovered through a separate, one-time fee. 411 412 • The demand charge is designed to recover the remaining distribution-related costs (substations, poles and conductors) and the demand-related generation Page 22 – Direct Testimony of Joelle R. Steward 413 and transmission costs. The demand charge would be applied against the 414 customer’s highest demand during a 60-minute interval during the on-peak 415 periods. The Company is proposing to set the on-peak period from 3:00 p.m. to 416 8:00 p.m. during the summer months of May through September, and 8:00 a.m. 417 to 10:00 a.m. and 3:00 p.m. to 8:00 p.m. in the winter months of October 418 through April. The on-peak period is Monday through Friday, excluding 419 holidays. • 420 The energy charge is designed to recover all remaining costs, which include net power costs. 421 422 Q. What are the advantages of this rate structure? 423 A. The proposed rate structure balances the regulatory objectives of customer 424 understanding, cost causation, economic efficiency, revenue adequacy, intra-class 425 equity, and inter-class equity. While a demand charge is a new element for 426 residential customers, the Company is proposing a relatively simple structure that 427 includes just three elements –-a customer charge, a demand charge, and an energy 428 charge – in order to balance customers' ability to understand the new structure with 429 cost incurrence. Since customer generators are typically more sophisticated energy 430 customers, the concept of demand or system kW requirements should be 431 understandable because kW is typically how private generation facilities are sized 432 and purchased. Demand charges are a standard rate design element for non- 433 residential customers already, however, the Company’s proposed demand charge 434 for residential customer generators includes several elements that will make it 435 easier for residential customers to manage. The rate structure also reduces the Page 23 – Direct Testimony of Joelle R. Steward 436 likelihood that the system costs required to serve customer generators are 437 systematically under-recovered and then shifted to other customers. The rate 438 structure rewards higher load factor customers with a lower average rate, and better 439 captures diversity within the class. 440 Q use? 441 442 Will the rates provide a price signal to customers to encourage more efficient A. Yes. Including an on-peak demand charge will send a better price signal to these 443 individual customers than the current rate design because their rates will be in closer 444 alignment with the different cost categories included in the cost of service study. 445 Residential net metering customers will have an opportunity to reduce their bills by 446 responding to these prices during the specific on-peak periods. The proposed 447 demand charge sends a signal to both stagger and reduce appliance use during the 448 peak period. In the short run, customers can modify their behavior so that their peak 449 usage occurs at the same time as their generation. In the long run, customers can 450 invest in resources that better match the timing of the peak usage. For example, 451 they could install solar panels that are more westerly facing to produce more energy 452 in the afternoon and early evening, which better aligns with the Company’s peak, 453 providing more benefit by reducing overall demand. 454 Q. Please provide an example of how the rates provide better price signals. 455 A. Unlike the rate structure for non-residential customers, the current residential rate 456 structure with inclining energy rates directly rewards lower energy usage but not 457 more efficient usage that helps to reduce overall system costs by also reducing 458 demand. For residential customers, this signal to reduce overall demand is assumed Page 24 – Direct Testimony of Joelle R. Steward 459 to be an incidental or accompanying result of reducing overall energy usage. 460 However, as I demonstrate above, net metering customers may reduce their energy 461 usage but not their demand, resulting in becoming lower load factor customers. The 462 proposed rate structure on Schedule 5 will better capture this change in usage and 463 reward improving load factors to achieve a lower average rate. Figure 6 below 464 shows the proposed Schedule 5 rates will provide lower average rates for higher 465 load factor customers, similar to non-residential rate structures, to reward more 466 efficient usage of the system. Figure 6. Average Price Compared to Load Factor 467 468 Q. Please explain why $15.00 per month is a reasonable customer charge. 469 A. The Company is proposing to include the costs associated with customer services, 470 meters, service lines, and transformers in the customer charge. These are essentially 471 fixed costs and not subject to variability in customer usage. Page 25 – Direct Testimony of Joelle R. Steward 472 Q. Why should transformers be included in the customer charge for Schedule 5? 473 A. Local distribution facilities such as transformers, poles, and conductors are 474 facilities required to provide a residential customer access to electric service 475 regardless of how much energy the customer uses. While this is true for all 476 residential customers, net metering customers place additional burdens and reliance 477 on these local facilities since they use them for both taking service from the 478 Company and to export their excess generation output to the grid. The impacts of 479 customer generation on the local distribution system, including transformers, are 480 discussed in more detail in the testimony of Mr. Douglas L. Marx. 481 Accordingly, since customer generation relies on the local distribution 482 system and can actually lead to additional costs to accommodate the output of 483 excess energy onto the system, as discussed by Mr. Marx, it would not be 484 appropriate to reflect local distribution costs in the energy credit received by net 485 metering customers for excess energy. The Company proposes to include the cost 486 of the transformers in the customer charge and the costs of the other local 487 distribution facilities in the demand charge. 488 While the Company does not dedicate one transformer per customer, like 489 meters and service lines that are included in the customer charge, the allocation 490 approach in the cost of service study reflects the assumption that transformers are 491 shared and a coincidence factor is used to recognize the diversity of usage that is 492 considered with the initial sizing. In addition, a large portion of the cost of a 493 distribution line transformer is associated with the equipment itself and does not 494 vary with the capacity of the equipment. For example, a 25 KVA single phase pad- Page 26 – Direct Testimony of Joelle R. Steward 495 mount transformer and a 50 KVA single phase pad-mount transformer, which are 496 commonly installed in residential subdivisions, have average installed costs of 497 $4,700 and $4,827, respectively. Although, the 50 KVA transformer provides 498 double the demand capacity of the 25 KVA transformer, it only costs about 3 percent 499 more. Clearly, a large proportion of the costs of these transformers do not vary with 500 capacity and are fixed infrastructure costs necessary to serve customers. 501 Q. Is the Company proposing a minimum bill in addition to the customer charge? 502 A. No. The Company is proposing only a monthly customer charge of $15.00 for 503 Schedule 5 customers. All other charges on the bill will be subject to usage 504 measurements. 505 Q. apply to Schedule 5 customers? 506 507 How did the Company calculate the demand charge and how will this charge A. The proposed demand charge of $9.02 per kW is designed to recover the costs of 508 demand-related generation and transmission, which are allocated in class cost of 509 service studies on system coincident peaks, and distribution substations and poles 510 and conductors, which are allocated on distribution coincident peaks. The rate was 511 calculated by dividing these costs by the kW usage during the proposed on-peak 512 hours. The proposed on-peak periods are: 3:00 p.m. to 8:00 p.m. during the summer 513 months of May through September, and 8:00 a.m. to 10:00 a.m. and 3:00 p.m. to 514 8:00 p.m. during the winter months of October through April. All weekends and 515 holidays are excluded from the on-peak hours. Page 27 – Direct Testimony of Joelle R. Steward 516 The charge would be applied to the customer’s highest measured average 517 kW usage during a 60 minute interval during on-peak times, during each billing 518 cycle. 519 Q. demand charge? 520 521 How did the Company select the on-peak periods proposed for the Schedule 5 A. To determine the appropriate times under which the demand charge would apply, 522 the Company examined the timing of both system coincident and distribution 523 coincident peaks over the last five class cost of service studies filed with the 524 Commission. This showed that most peaks occurred in the late afternoon/early 525 evening timeframe in the summer months and both in the late afternoon/early 526 evening and morning during the winter. In order to keep the rate design 527 understandable and simple, the Company identified time periods that capture the 528 vast majority of those peaks for both seasons. Additionally, the Company is 529 proposing to use the same defined periods for Summer (May - September) and 530 Winter (October - April) as current rates. The proposed on-peak periods include the 531 timing of 94 percent of the peaks. Exhibit No. RMP_(JRS-4) shows the hourly 532 occurrence of peaks in the Summer and Winter seasons and the on-peak period the 533 Company selected for proposed Schedule 5. 534 Q. residential customers? 535 536 537 How does the proposed demand charge compare to demand charges for non- A. To moderate the impacts and make it easier for residential customers to respond to the price signal, the proposed charge is designed to apply over fewer hours, is Page 28 – Direct Testimony of Joelle R. Steward 538 measured over a longer interval, and is a lower charge than non-residential demand 539 charges. 540 First, the proposed demand charge applies during a smaller window of time 541 during the day compared to non-residential rates so that customers’ energy 542 management efforts can be more targeted to those hours. During Summer, for 543 instance, customers need to pay attention to only 5 hours per day, from 3:00 p.m. 544 to 8:00 p.m. In contrast, the Summer on-peak period for Schedule 6A is 16 hours, 545 from 7:00 a.m. to 11:00 p.m., and for Schedule 8 it is 8 hours, from 1:00 p.m. to 546 9:00 p.m. 547 Second, to measure the kW usage, the Company proposes to take the 548 average kW measurement over a 60-minute interval rather than the 15-minute 549 interval used for non-residential customers. Averaging the usage over a longer 550 period will help moderate impacts of sporatic appliance usage. For instance, Exhibit 551 RMP_(JRS-5) shows an example of usage for a number of appliances during a 60- 552 minute period. Taking an average over the 60-minute interval produces a demand 553 measurement of 3.4 kW, whereas taking the measurement over the highest 15- 554 minute interval produces a measurement of 6.3 kW. Lastly, the proposed demand charge for Schedule 5 is considerably smaller 555 than non-residential demand charges. 556 557 Q. net metering customers? 558 559 560 Why is a time-based demand charge preferable to time-of-use energy rates for A. If these demand-related costs were included in time-of-use energy rates, they would be included in the rates that customers are compensated for in their excess energy Page 29 – Direct Testimony of Joelle R. Steward 561 output due to the netting process. Since the customer's usage during the peak period 562 contributed to these costs, these customers would be over-compensated for their 563 excess energy and costs would continue to be under-recovered and shifted to other 564 customers. 565 Q. Please discuss the proposed energy charge. 566 A. The energy charge recovers variable costs including net power costs and a portion 567 of the generation and transmission investments (25 percent). The generation and 568 transmission investment portion is consistent with the cost of service classification 569 methodology adopted by the Commission. For customer generators, this energy 570 charge better reflects the value of the excess kWh output by the customer facility. 571 Under net metering, any excess kWh generated by the customer at one point in time 572 will be offset against customer usage taken from the Company at another point in 573 time. This energy charge more closely approximates the cost that the Company 574 would have otherwise incurred in order to serve the customer and is a much more 575 equitable compensation value to provide customer generators. 576 Q. customers? 577 578 Will the proposed rates on Schedule 5 still provide value to net metering A. Yes. Exhibit RMP__(JRS-6) shows the calculation of the average offset credit 579 under the current and proposed rates for net metering customers. The average offset 580 credit is the value in bill savings that customers receive for every kWh their 581 generation produces. Currently, the Company provides to net metering customers, 582 on average, an offset credit of 10.6 cents/kWh for their generation. Under the 583 Company’s proposed rates, net metering customers will receive an average offset Page 30 – Direct Testimony of Joelle R. Steward 584 credit of 7.1 cents/kWh. The proposed rates still provide considerable value to 585 customer generation. 586 Q. customers on Schedule 5 compared to current Schedule 1 residential rates? 587 588 Have you prepared examples of the potential bill impacts for net metering A. Yes. Exhibit No. RMP_(JRS-7) shows the comparison between the amount 589 customers currently pay at different usage levels compared to their bills under net 590 metering service and the proposed Schedule 5 rates. This shows that an average net 591 metering customer who uses approximately 1,000 kWh a month can still achieve 592 bill savings between 9 percent and about 60 percent, depending on how much of 593 their usage they are able to offset with their generation facility. 594 Q. Will the Company provide information to customers to help them understand 595 the new rate structure on Schedule 5 and how they can better manage their 596 usage? 597 A. Yes. The Company will work with interested parties to develop information for 598 Schedule 5 customers to help them understand the rate structure and how changes 599 in their usage will influence their bill. 600 Q. opt-in to net metering service on Schedule 136 and Schedule 5? 601 602 Will the Company allow current net metering customers on Schedule 135 to A. Yes. The Company will accommodate any current residential Schedules 135 and 1 603 net metering customer to transfer to Schedule 136 and Schedule 5. If a customer 604 elects to transfer to Schedule 136, the customer will no longer be eligible to return 605 to Schedule 135. Page 31 – Direct Testimony of Joelle R. Steward 606 Modifications to Large Non-Residential Compensation Options 607 Q. metering customers on Schedule 135. 608 609 Please explain the current compensation options for large non-residential net A. Special Condition 2b in Schedule 135 provides the following options to large non- 610 residential customers for the compensation of excess energy produced by customer 611 generation facilities during a billing period: 612 (1) An Average Energy Price for the applicable calendar year according to 613 the Volumetric Non-Levelized Prices shown in Schedule 37, weighted by season 614 and on- and off-peak periods; 615 (2) A Seasonally Differentiated Energy Price for the applicable calendar 616 year according to the Non-Levelized Prices shown in Schedule 37, weighted by on- 617 and off-peak periods; and 618 (3) An average retail rate for the Electric Service Schedule applicable to the 619 net metering customer as calculated from the previous year’s Federal Energy 620 Regulation Commission Form No. 1. 621 Q. What is the difference in the value of these options for 2016? 622 A. Table 6 below shows difference in the compensation credit for each of these options 623 for 2016. Page 32 – Direct Testimony of Joelle R. Steward Table 6 624 Large Non-Residential Options Option 1. Average Sch 37 Price Option 2. Seasonal Sch 37 Price Summer Winter Option 3. Average Retail Price Schedule 6 Schedule 6A Schedule 6B Schedule 8 Schedule 10 625 Q. 2.0345 1.8062 1.7515 1.5232 8.4498 11.7871 10.8910 7.5210 7.5619 Please explain the Company's proposed changes to the large non-residential options in the new Schedule 136. 626 627 2016 Credit (¢/kWh) Baseload Fixed Solar 1.8821 1.5991 A. The Company proposes to eliminate the third option of using the average retail 628 price for excess energy from large non-residential customers. Table 6 above shows 629 that the average retail rate credit option provides a credit far in excess of the avoided 630 cost value that other small power producers would receive for the equivalent output. 631 There is also a wide distinction on the compensation by rate schedule with 632 customers on Schedule 6A getting 57 percent more for each excess kWh compared 633 to Schedule 8 customers, even though there is no discernible difference in the value 634 to the system for a kWh generated by a customer on Schedule 6A versus Schedule 635 8. 636 Not surprisingly, Option 3 is the option selected by all large non-residential 637 net metering customers. In 2015, large non-residential customers were credited 638 approximately $141,000 for their excess energy. This is 420 percent more than the Page 33 – Direct Testimony of Joelle R. Steward 639 avoided cost value under Options 1 or 2. In contrast to the avoided cost value, the 640 average retail rate includes recovery of fixed costs typically collected through the 641 monthly charge and demand charges. Accordingly and as I previously discussed in 642 regards to residential customers, the average retail rate over-compensates non- 643 residential customers for excess energy. 644 To create consistency between large non-residential customers and to be 645 consistent with the value provided to other small power producers, the Company 646 proposes to use Schedule 37 avoided costs prices for fixed solar facilities, under 647 either Option 1 or 2. 648 Proposed Changes to Application Fees for Net Metering 649 Q. metering. 650 651 Please explain the Company's proposed changes to the application fees for net A. The Company requests that the Commission waive the fees adopted in rule R746- 652 312-133 and approve changes in the fees, including adding a fee for Level 1 653 applications, as follows: Table 7 654 Net Metering Application Fees Current Proposed Level 1 Level 2 per kW 0 $50 $1.00 $60 $75 $1.50 Level 3 per kW $100 $2.00 $150 $3.00 3 R746-312-3(2) states: For good cause shown, the commission may waive or otherwise modify any provision of this electrical interconnection rule. Page 34 – Direct Testimony of Joelle R. Steward 655 These fees are based on an assessment of the actual costs incurred to process 656 applications. Recovery of the costs to process the applications for net metering, 657 particularly for Level 1, has not kept pace with the growth in applications. The 658 modest increases in fees represent movement toward recovering the administrative 659 costs incurred to process applications and make cost recovery more concurrent with 660 expense. 661 Q. How were the current application fees established? 662 A. The current fees were established by the Commission in the rulemaking initiated in 663 2009, Docket No. 09-R312-01, to implement standards for interconnection of 664 electric facilities in Rule R746-312, Electrical Interconnection. These rules 665 establish the terms and conditions upon which a customer may interconnect a 666 generation facility to the distribution system and the review process for the utility 667 to ensure that the interconnection will be consistent with these terms and conditions. 668 The rules identify three potential levels of review, based on the size of the facility 669 to be interconnected as well as the complexity of the review – Level 1 for facilities 670 25 kW and smaller, Level 2 for facilities greater than 25 kW or that do not otherwise 671 qualify under Level 1, and Level 3 for facilities that do not otherwise qualify under 672 Levels 1 or 2 and require a more complex review. Mr. Marx outlines the 673 administrative process for net metering applications in his direct testimony. 674 Q. How did you calculate the proposed fees requested in this filing? 675 A. The Company reviewed the actual costs incurred to process applications in 2015, 676 the number of applications completed for each level, and the allocation of these 677 costs by rate schedule. The allocation by rate schedule is discussed in the testimony Page 35 – Direct Testimony of Joelle R. Steward 678 of Mr. Meredith. Exhibit RMP_(JRS-8) shows the breakdown by level and rate 679 schedule of applications processed during 2015. Out of about $560,000 in costs to 680 process the applications, the Company recovered only about $17,000 in fees from 681 Level 2 and Level 3 applications. Because the vast majority of applications, about 682 99 percent, are Level 1, the majority of the costs are related to Level 1 applications. 683 To better balance cost incurrence with recovery, the Company is proposing 684 a Level 1 fee along with increases in the fees for the other levels. Since the majority 685 of Level 1 applications are for residential customers, the calculation of the 686 Company's proposed Level 1 fee was based upon the average cost of processing a 687 residential net metering application, which was about $60. Applying the $60 fee to 688 all Level 1 applications would have produced about $474,000 of application fee 689 revenue or about 85 percent of the total $560,000 cost to process applications in 690 2015. The addition of a Level 1 fee removes about $443,000 out of the costs 691 included in proposed rates for Schedule 5. These one-time costs are more 692 appropriately recovered through a one-time fee rather than embedded into rates. If 693 the net metering application-related costs were alternatively recovered through the 694 basic charge on Schedule 5, the proposed basic charge would be higher by $8.41 695 per month. 696 To gradually move towards better recovery of all net metering application 697 fees, the Company proposes a uniform 50 percent increase to Level 2 and Level 3 698 application fees. For Level 2, the Company proposes a $25 increase to the charge 699 per application and a 50 cent increase to the per kW charge. For Level 3, the 700 Company proposes a $50 increase to the charge per application and a one dollar Page 36 – Direct Testimony of Joelle R. Steward 701 increase to the per kW charge. Increasing the application fees will reduce the costs 702 needed in rates for other customers and retain the proportional relationship between 703 the fees by level, without creating a barrier for participation. Based on the 2015 704 costs, these increases are still conservative and will encourage the Company to find 705 efficiencies in the administrative process. 706 Deferral for Incremental Revenue from Schedule 5 707 Q. collection of revenues to the Company? 708 709 Would approval of the proposed tariff changes in this filing result in an over- A. No. The Company is proposing to apply the changes to only new net metering 710 customers that file applications after approval of Schedules 136 and 5. Since the 711 current number of net metering customers exceeds the assumed number of net 712 metering customers included in the forecast in the 2014 GRC by over 600 percent, 713 current rates do not reflect the costs of serving these customers. Accordingly, the 714 Company is absorbing the costs of net metering for current customers. The 715 Company will continue to absorb these costs until a new rate case is filed and the 716 costs can be captured in rates to other customers. Approval of the new Schedule 5 717 would reduce the growing impact that will be eventually captured in rates. 718 While the Company does not expect the new structure to result in an 719 increase in income for the Company, it will result in the higher revenues than would 720 otherwise be achieved as a result of better reflecting the cost to serve net metering 721 customers. To minimize the future impact on other customers, the Company 722 proposes to defer the difference in revenue associated with the new rates on 723 Schedule 5. In this way, the filing will be revenue-neutral for the Company. Page 37 – Direct Testimony of Joelle R. Steward 724 Q. Please explain how the proposed deferral would work. 725 A. For new residential net metering customers, the Company would calculate the 726 difference in revenues between current rates and Schedule 5 rates based on actual 727 billed usage. This difference could be higher or lower for each customer. At the 728 time of the Company's next rate case, the Company would make a proposal for 729 amortization of the deferral balance. 730 Q. Does this conclude your testimony? 731 A. Yes. Page 38 – Direct Testimony of Joelle R. Steward Rocky Mountain Power Exhibit RMP___(JRS-1) Docket No. 16-035-__ Witness: Joelle R. Steward BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Joelle R. Steward Proposed Tariff Revisions (Schedule 136 and Schedule 5) November 2016 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 1 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 5.1 ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 5 STATE OF UTAH ______________ Residential Service for Customer Generators ______________ AVAILABILITY: At any point on the Company's interconnected system where there are facilities of adequate capacity. APPLICATION: This Schedule is for alternating current electric service for residential purposes supplied at approximately 120 or 240 volts through one meter at a single point of delivery for service required on the premises to any residential customer who has executed an Interconnection Agreement under Schedule 136, Net Metering Program. When conditions are such that service is supplied through one meter to more than one dwelling or apartment unit, the charge for such service will be computed by multiplying the number of kWh in each applicable usage block, the Customer Service Charge, the Power Charge and the minimum charges by the maximum number of dwelling or apartment units that may be served. When a portion of a dwelling is used regularly for business, professional or other gainful purposes and 50 percent or more of the electrical energy supplied to that dwelling is being used for residential purposes, the premises shall be subject to this or other residential rates. If 50 percent or more of the electrical energy supplied to the premises is used for other than residential purposes, the premises will be classified as non-residential and electric service shall be provided under the appropriate non-residential schedule. However, if the wiring is so arranged that the service for residential purposes can be metered separately, this Schedule will be applied to such service. MONTHLY BILL: Customer Service Charge: Single phase: $15.00 per customer Three phase: $30.00 per customer Power Charge: On-Peak: $9.02 per kW Off-Peak: None (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 16-035-__ FILED: November 9, 2016 EFFECTIVE: June 1, 2017 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 2 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 5.2 ELECTRIC SERVICE SCHEDULE NO. 5 - Continued MONTHLY BILL: (continued) Energy Charge: 3.8143¢ per kWh for all kWh MINIMUM: Customer Service Charge plus appropriate Power and Energy Charges. SURCHARGE ADJUSTMENT: All monthly bills shall be adjusted in accordance with Schedule 80. POWER: The kW as shown by or computed from the readings of Company's Power meter for the 60-minute On-Peak period of Customer's greatest use during the month. TIME PERIODS: On-Peak: Off-Peak: October through April inclusive 8:00 a.m. to 10:00 a.m., and 3:00 p.m. to 8:00 p.m., Monday thru Friday, except holidays. May through September inclusive 3:00 p.m. to 8:00 p.m., Monday thru Friday, except holidays. All other times. Holidays include only New Year's Day, President's Day, Memorial Day, Independence Day, Pioneer Day, Labor Day, Thanksgiving Day, and Christmas Day. When a holiday falls on a Saturday or Sunday, the Friday before the holiday (if the holiday falls on a Saturday) or the Monday following the holiday (if the holiday falls on a Sunday) will be considered a holiday and consequently Off-Peak. CONNECTION FEE: Each time a Customer, eligible to receive electric service under this Schedule, begins to receive electric service at a point of delivery not previously used, or at a point of delivery which has been used previously by another Customer, or each time a Customer changes his point of delivery or reconnects after voluntary disconnection to the same point of delivery, that Customer shall be charged a connection fee of $10.00. At the discretion of the Company, the connection fee may be waived for account holders such as landlords and real estate agents who accept, on a temporary basis, responsibility for the accounts of vacant residential units during the transitional time of vacancy in those cases where the cost to the Company of the physical discontinuance and restoration of electrical service would exceed the amount of the connection fee. (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 16-035-__ FILED: November 9, 2016 EFFECTIVE: June 1, 2017 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 3 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 5.3 ELECTRIC SERVICE SCHEDULE NO. 5 - Continued ELECTRIC SERVICE REGULATIONS: Service under this Schedule will be in accordance with the terms of the Electric Service Agreement between the Customer and the Company. The Electric Service Regulations of the Company on file with and approved by the Public Service Commission of the State of Utah, including future applicable amendments, will be considered as forming a part of and incorporated in said Agreement. Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 16-035-__ FILED: November 9, 2016 EFFECTIVE: June 1, 2017 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 4 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 136.1 ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 136 STATE OF UTAH ______________ Net Metering Program ______________ AVAILABILITY: At any point on the Company's interconnected system. Customers will be subject to any and all changes to the net-metering program tariff. APPLICATION: On a first-come, first-served basis to any customer that owns or leases a customer-operated renewable generating facility or, as defined in Utah Code 54-2-1(16)(d), an eligible customer that purchases electricity from an independent energy producer operating a renewable generating facility, with a capacity of not more than twenty-five (25) kilowatts for a residential facility and two (2) megawatts for a non-residential facility that is located on, or adjacent to, the customers’ premises, is interconnected and operates in parallel with the Company’s existing distribution facilities, is intended primarily to offset part or all of the customer’s own electrical requirements, is controlled by an inverter capable of enabling safe and efficient synchronous coupling with Rocky Mountain Power’s electrical system, and has executed an Interconnection Agreement for Net Metering Service with the Company. This schedule is offered in compliance with Utah Code Ann. § 54-15-101 to 106 and R746-312. DEFINITIONS: Net Metering means measuring the difference between the electricity supplied by the Company and the electricity generated by an eligible customer-generator and fed back to the electric grid over the applicable billing period. An Inverter means a device that converts direct current power into alternating current power that is compatible with power generated by the Company. Annualized Billing Period means the period commencing after the regularly scheduled meter reading for the month of March or in the case of new Schedule 136 service the date that the customer first takes service from Schedule 136 and ending on the regularly scheduled meter reading for the month of March. (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 16-035-___ FILED: November 9, 2016 EFFECTIVE: June 1, 2017 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 5 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 136.2 ELECTRIC SERVICE SCHEDULE NO. 136 - Continued DEFINITIONS: (continued) Residential Customer means any customer whose service is furnished for (1) domestic purposes in single family dwelling units; (2) apartments where each dwelling unit is separately metered and billed; and (3) combined family dwelling units. Residential customers do not include dwellings where tenancy is typically less than 30 days in length, such as hotels, motels, camps, lodges and clubs. Small Non-Residential Customer means any customer that receives electric service under Electric Service Schedules 15 or 23. Large Non-Residential Customer means any customer that receives electric service under Electric Service Schedules 6, 6A, 6B, 8 or 10. Renewable Generating Facility means a facility that uses energy derived from one of the following: a) solar photovoltaics; b) solar thermal energy; c) wind energy; d) hydrogen; e) organic waste; f) hydroelectric energy; g) waste gas and waste heat capture or recovery; h) biomass and biomass byproducts, except for the combustion of wood that has been treated with chemical preservatives such as creosote, pentachlorophenol, chromated copper arsenate, or municipal waste in a solid form; i) forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and to reduce wildfire risk; j) agricultural residues; k) dedicated energy crops; l) landfill gas or biogas produced from organic matter, wastewater, anaerobic disgesters, or municipal solid waste; or m) geothermal energy. MONTHLY BILL: The Electric Service Charge shall be computed in accordance with the Monthly Billing in the applicable standard service tariff. Regardless of whether the Customer provides excess net generation during the month, the Customer shall be billed the minimum monthly amount from the applicable standard service tariff. (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 16-035-___ FILED: November 9, 2016 EFFECTIVE: June 1, 2017 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 6 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 136.3 ELECTRIC SERVICE SCHEDULE NO. 136 - Continued SPECIAL CONDITIONS: 1. Applications for service under this schedule will be subject to fees authorized by the Commission. 2. Residential customers participating in the Net Metering Program under this Schedule shall take service from Schedule 5 – Residential Service for Customer Generators. 3. If the energy supplied to the Company is less than the energy purchased from the Company, the prices specified in the Energy Charge section of the Monthly Billing of the applicable standard service tariff shall be applied to the positive balance owed to the Company. 4. If the energy supplied to the Company is greater than the energy supplied by the Company, the Customer shall be billed for the appropriate monthly charges and shall be credited for such Net Metering Energy as follows: A. Residential and Small Non-Residential Customer shall be credited for such net energy with a cumulative kilowatt-hour credit. The credit will be deducted from the customer’s kilowatthour usage on the customer’s next monthly bill thus offsetting the customer’s next monthly bill at the full retail rate of the customer’s rate schedule. B. A Large Non-Residential Customer, at the time of initial enrollment under this tariff , must elect a compensation method to receive cumulative credits for the upcoming Annualized Billing Period from one of the following options: (i) An Average Energy Price for the applicable calendar year according to the Volumetric Non-Levelized Prices shown in Schedule 37 as determined by the following formula: 0.38 x Winter On-Peak Energy Price + 0.19 x Summer OnPeak Energy Price + 0.29 x Winter Off-Peak Energy Price + 0.14 x Summer Off-Peak Energy Price; or (ii) A Seasonally Differentiated Energy Price for the applicable calendar year according to the Non-Levelized Prices shown in Schedule 37 as determined by the following formula: 0.57 x Summer On-Peak Energy Price + 0.43 x Summer Off-Peak Energy Price for the regularly scheduled meter readings from June through September and 0.57 x Winter On-Peak Energy Price + 0.43 x Winter Off-Peak Energy Price for the regularly scheduled meter readings from October through May: (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 16-035-___ FILED: November 9, 2016 EFFECTIVE: June 1, 2017 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 7 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward OriginalSheet No. 136.4 P.S.C.U. No. 50 ELECTRIC SERVICE SCHEDULE NO. 136 – Continued SPECIAL CONDITIONS: (continued) A Large Non-Residential Customer may change the compensation method once per year at the beginning of each Annualized Billing Period. The Company must receive written change notification of any change within sixty (60) days of the beginning of the Annualized Billing Period. 5. All unused credits accumulated by the customer-generator, except Customers taking service under Electric Service Schedule No. 10, shall expire with the regularly scheduled meter reading for the month of March of each year. For Customers taking service under Electric Service Schedule No. 10, all unused credits accumulated by the customer-generator shall expire with the regularly scheduled meter reading for the month of October of each year. 6. Upon the customer-generator’s request and within thirty (30) days notice to the Company, the Company shall aggregate for billing purposes the meter to which the net metering facility is physically attached (“designated meter”) with one or more meters (“additional meter”) if the following conditions are met: (i) (ii) the additional meter is located on or adjacent to premises of the customer-generator; the additional meter is used to measure only electricity used for the customergenerator’s requirements; (iii) the designated meter and additional meter are subject to the same rate schedule; and (iv) the designated meter and the additional meter are served by the same primary feeder. At the time of notice to the Company, the customer-generator must identify the specific meters and designate a rank order for the additional meters to which net metering credits are to be applied. 7. The customer-generator shall provide at the customer’s expense all equipment necessary to meet applicable local and national standards regarding electrical and fire safety, power quality, and interconnection requirements established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories. (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-035-___ FILED: November 9, 2016 EFFECTIVE: June 1, 2017 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 8 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 136.5 ELECTRIC SERVICE SCHEDULE NO. 136 – Continued 8. For customer-generators generation systems of 10 kilowatts or less that are inverter-based, a a disconnect switch is not required. For all other generation systems, the customer-generator must install and maintain a manual disconnect switch that will disconnect the generating facility from the Company’s distribution system. The disconnect switch must be a lockable, load-break switch that plainly indicates whether it is in the open or closed position. Except as provided in R746-312-4(2) (a) (ii), the disconnect switch must be readily accessible to the Company at all times and located within ten (10) feet of the Company’s meter. 9. The Company shall not be liable directly or indirectly for permitting or continuing to allow an attachment of a net metering facility, or for the acts or omissions of the customer-generator that cause loss or injury, including death, to any third party. 10. The Company may test and inspect an interconnection at times that the electrical corporation considers necessary to ensure the safety of electrical workers and to preserve the integrity of the electric power grid. 11. Unless otherwise agreed to by a separate contract, the owner of the renewable energy facility retains ownership of the non-energy attributes associated with electricity the facility generates. ELECTRIC SERVICE REGULATIONS: Service under this Schedule will be in accordance with the terms of the Electric Service Agreement between the Customer and the Company. The Electric Service Regulations of the Company on file with and approved by the Public Service Commission of the State of Utah, including future applicable amendments, will be considered as forming a part of and incorporated in said Agreement. Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 16-035-___ FILED: November 9, 2016 EFFECTIVE: June 1, 2017 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 9 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 1365.1 ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 1365 STATE OF UTAH ______________ Net Metering ProgramService ______________ AVAILABILITY: At any point on the Company's interconnected system. Customers will be subject to any and all changes to the net-metering program tariff. APPLICATION: On a first-come, first-served basis to any customer that owns or leases a customer-operated renewable generating facility or, as defined in Utah Code 54-2-1(16)(d), an eligible customer that purchases electricity from an independent energy producer operating a renewable generating facility, with a capacity of not more than twenty-five (25) kilowatts for a residential facility and two (2) megawatts for a non-residential facility that is located on, or adjacent to, the customers’ premises, is interconnected and operates in parallel with the Company’s existing distribution facilities, is intended primarily to offset part or all of the customer’s own electrical requirements, is controlled by an inverter capable of enabling safe and efficient synchronous coupling with Rocky Mountain Power’s electrical system, and has executed an Interconnection Agreement for Net Metering Service with the Company. This schedule is offered in compliance with Utah Code Ann. § 54-15-101 to 106 and R746-312. DEFINITIONS: Net Metering means measuring the difference between the electricity supplied by the Company and the electricity generated by an eligible customer-generator and fed back to the electric grid over the applicable billing period. An Inverter means a device that converts direct current power into alternating current power that is compatible with power generated by the Company. Annualized Billing Period means the period commencing after the regularly scheduled meter reading for the month of March or in the case of new Schedule 1365 service the date that the customer first takes service from Schedule 1365 and ending on the regularly scheduled meter reading for the month of March. Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 163-035184___ FILED: September 5November 9, 20142016 EFFECTIVE: September 1June 1, 20142017 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 10 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 43 Original Sheet No. 135.2 ELECTRIC SERVICE SCHEDULE NO. 95 - Continued (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 163-035184___ FILED: September 5November 9, 20142016 EFFECTIVE: September 1June 1, 20142017 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 11 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 1365.2 ELECTRIC SERVICE SCHEDULE NO. 1365 - Continued DEFINITIONS: (continued) Residential Customer means any customer that receives electric service under Electric Service Schedules 1, 2 or 3whose service is furnished for (1) domestic purposes in single family dwelling units; (2) apartments where each dwelling unit is separately metered and billed; and (3) combined family dwelling units. Residential customers do not include dwellings where tenancy is typically less than 30 days in length, such as hotels, motels, camps, lodges and clubs. Small Non-Residential Customer means any customer that receives electric service under Electric Service Schedules 15 or 23. Large Non-Residential Customer means any customer that receives electric service under Electric Service Schedules 6, 6A, 6B, 8 or 10. Renewable Generating Facility means a facility that uses energy derived from one of the following: a) solar photovoltaics; b) solar thermal energy; c) wind energy; d) hydrogen; e) organic waste; f) hydroelectric energy; g) waste gas and waste heat capture or recovery; h) biomass and biomass byproducts, except for the combustion of wood that has been treated with chemical preservatives such as creosote, pentachlorophenol, chromated copper arsenate, or municipal waste in a solid form; i) forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and to reduce wildfire risk; j) agricultural residues; k) dedicated energy crops; l) landfill gas or biogas produced from organic matter, wastewater, anaerobic disgesters, or municipal solid waste; or m) geothermal energy. MONTHLY BILL: The Electric Service Charge shall be computed in accordance with the Monthly Billing in the applicable standard service tariff. Regardless of whether the Customer provides Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 163-035184___ FILED: September 5November 9, 20142016 20142017 EFFECTIVE: September 1June 1, Rocky Mountain Power Exhibit RMP___(JRS-1) Page 12 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 1365.2 ELECTRIC SERVICE SCHEDULE NO. 1365 - Continued excess net generation during the month, the Customer shall be billed the minimum monthly amount from the applicable standard service tariff. (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 163-035184___ FILED: September 5November 9, 20142016 20142017 EFFECTIVE: September 1June 1, Rocky Mountain Power Exhibit RMP___(JRS-1) Page 13 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 1365.3 ELECTRIC SERVICE SCHEDULE NO. 1365 - Continued SPECIAL CONDITIONS: 1. Applications for service under this schedule will be subject to fees authorized by the Commission. 2. Residential customers participating in the Net Metering Program under this Schedule shall take service from Schedule 5 – Residential Service for Customer Generators. 1.3.If the energy supplied to the Company is less than the energy purchased from the Company, the prices specified in the Energy Charge section of the Monthly Billing of the applicable standard service tariff shall be applied to the positive balance owed to the Company. 2.4.If the energy supplied to the Company is greater than the energy supplied by the Company, the Customer shall be billed for the appropriate monthly charges and shall be credited for such Net Metering Energy as follows: A. Residential and Small Non-Residential Customer shall be credited for such net energy with a cumulative kilowatt-hour credit. The credit will be deducted from the customer’s kilowatthour usage on the customer’s next monthly bill thus offsetting the customer’s next monthly bill at the full retail rate of the customer’s rate schedule. B. A Large Non-Residential Customer, at the time of initial enrollment under this tariff , must elect a compensation method to receive cumulative credits for the upcoming Annualized Billing Period from one of the following options: (i) An Average Energy Price for the applicable calendar year according to the Volumetric Non-Levelized Prices shown in Schedule 37 as determined by the following formula: 0.38 x Winter On-Peak Energy Price + 0.19 x Summer OnPeak Energy Price + 0.29 x Winter Off-Peak Energy Price + 0.14 x Summer Off-Peak Energy Price; or (ii) A Seasonally Differentiated Energy Price for the applicable calendar year according to the Non-Levelized Prices shown in Schedule 37 as determined by the following formula: 0.57 x Summer On-Peak Energy Price + 0.43 x Summer Off-Peak Energy Price for the regularly scheduled meter readings from June through September and 0.57 x Winter On-Peak Energy Price + 0.43 x Winter Off-Peak Energy Price for the regularly scheduled meter readings from October through May:; or (iii) An average retail rate for the Electric Service Schedule applicable to the net metering customer as calculated from the previous year’s Federal Energy Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 1316-035184___ FILED: September 5November 9, 20142016 EFFECTIVE: September 1June 1, 20142017 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 14 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 1365.3 ELECTRIC SERVICE SCHEDULE NO. 1365 - Continued Regulation Commission Form No. 1 to be determined and available by July 1, 2009, and by July 1st of every subsequent year. Current average retail rates are listed below: (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 1316-035184___ FILED: September 5November 9, 20142016 EFFECTIVE: September 1June 1, 20142017 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 15 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward Second RevisionOriginal of Sheet No. 1365.4 Canceling First Revision of Sheet No. 135.4 P.S.C.U. No. 50 ELECTRIC SERVICE SCHEDULE NO. 1356 -– Continued SPECIAL CONDITIONS: (continued) Schedule 6: Schedule 6A: Schedule 6B: Schedule 8: Schedule 10: 8. 4498¢ per kWh 11.7871¢ per kWh 10.8914¢ per kWh 7.5210¢ per kWh 7.5619¢ per kWh A Large Non-Residential Customer may change the compensation method once per year at the beginning of each Annualized Billing Period. The Company must receive written change notification of any change within sixty (60) days of the beginning of the Annualized Billing Period. 5. All unused credits accumulated by the customer-generator, except Customers taking service under Electric Service Schedule No. 10, shall expire with the regularly scheduled meter reading for the month of March of each year. For Customers taking service under Electric Service Schedule No. 10, all unused credits accumulated by the customer-generator shall expire with the regularly scheduled meter reading for the month of October of each year. 6. Upon the customer-generator’s request and within thirty (30) days notice to the Company, the Company shall aggregate for billing purposes the meter to which the net metering facility is physically attached (“designated meter”) with one or more meters (“additional meter”) if the following conditions are met: (i) (ii) the additional meter is located on or adjacent to premises of the customer-generator; the additional meter is used to measure only electricity used for the customergenerator’s requirements; (iii) the designated meter and additional meter are subject to the same rate schedule; and (iv) the designated meter and the additional meter are served by the same primary feeder. At the time of notice to the Company, the customer-generator must identify the specific meters and designate a rank order for the additional meters to which net metering credits are to be applied. 7. The customer-generator shall provide at the customer’s expense all equipment necessary to meet applicable local and national standards regarding electrical and fire safety, power quality, and interconnection requirements established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories. Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-06035___ FILED: May 27November 9, 2016 EFFECTIVE: July 1June 1, 20176 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 16 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward Second RevisionOriginal of Sheet No. 1365.4 Canceling First Revision of Sheet No. 135.4 P.S.C.U. No. 50 ELECTRIC SERVICE SCHEDULE NO. 1356 -– Continued (cContinued) Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-06035___ FILED: May 27November 9, 2016 EFFECTIVE: July 1June 1, 20176 Rocky Mountain Power Exhibit RMP___(JRS-1) Page 17 of 17 Docket No. 16-035-__ Witness: Joelle R. Steward P.S.C.U. No. 50 Original Sheet No. 1365.5 ELECTRIC SERVICE SCHEDULE NO. 1365 -– Continued 8. For customer-generators generation systems of 10 kilowatts or less that are inverter-based, a a disconnect switch is not required. For all other generation systems, the customer-generator must install and maintain a manual disconnect switch that will disconnect the generating facility from the Company’s distribution system. The disconnect switch must be a lockable, load-break switch that plainly indicates whether it is in the open or closed position. Except as provided in R746-312-4(2) (a) (ii), the disconnect switch must be readily accessible to the Company at all times and located within ten (10) feet of the Company’s meter. 9. The Company shall not be liable directly or indirectly for permitting or continuing to allow an attachment of a net metering facility, or for the acts or omissions of the customer-generator that cause loss or injury, including death, to any third party. 10. The Company may test and inspect an interconnection at times that the electrical corporation considers necessary to ensure the safety of electrical workers and to preserve the integrity of the electric power grid. 11. Unless otherwise agreed to by a separate contract, the owner of the renewable energy facility retains ownership of the non-energy attributes associated with electricity the facility generates. ELECTRIC SERVICE REGULATIONS: Service under this Schedule will be in accordance with the terms of the Electric Service Agreement between the Customer and the Company. The Electric Service Regulations of the Company on file with and approved by the Public Service Commission of the State of Utah, including future applicable amendments, will be considered as forming a part of and incorporated in said Agreement. Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 163-035184___ FILED: September 5November 9, 20142016 EFFECTIVE: September 1June 1, 20142017 Rocky Mountain Power Exhibit RMP___(JRS-2) Docket No. 16-035-__ Witness: Joelle R. Steward BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Joelle R. Steward Revised Interconnection Agreements (clean and redlined) November 2016 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 1 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward We appreciate your interest in Rocky Mountain Power’s net metering program. Before purchasing any net metering equipment, we recommend you review the requirements for interconnecting a net metering system to Rocky Mountain Power’s electrical distribution system. The requirements are found in the Interconnection Agreement. To complete the process for a net metering interconnection, please follow the steps below: 1. Complete and submit the following to Rocky Mountain Power: Interconnection Agreement including the Application for Net Metering Interconnection The inverter specification sheet For systems larger than 10 kW, a simple one-line diagram showing The location of Rocky Mountain Power’s meter The location of the disconnect switch 2. Rocky Mountain Power will review your agreement and application and send you a written notification of approval either by mail or e-mail 3. Install the net metering system after you receive the written approval of your Interconnection Agreement and Application for Net Metering from Rocky Mountain Power 4. Obtain an inspection of your net metering system by the local city or county electrical inspector 5. Submit the electrical inspector’s approval to Rocky Mountain Power 6. Turn on your net metering system after Rocky Mountain Power provides you written notification the interconnection work has been completed and the net meter installed Return completed documents to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, Utah 84125-0308 Or Email to: [email protected] Thank you for your interest in the net metering program. If you have questions, please call us toll free at 1-888-221-7070 and ask for a net metering specialist. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 1 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 2 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Service ID#:___________ Request #: ___________ INTERCONNECTION AND NET METERING SERVICE AGREEMENT FOR NET METERING FACILITY LEVEL 1 INTERCONNECTION 25 KW NAMEPLATE CAPACITY OR SMALLER This Interconnection and Net Metering Service Agreement (“Agreement”) is made and entered into this ___ day of _____________, 20___ by and between ____________________________, an electric customer (“Customer”), and PacifiCorp, dba Rocky Mountain Power (“Rocky Mountain Power”), a Corporation organized and existing under the laws of the State of Oregon. Customer and Rocky Mountain Power each may be referred to as a “Party”, or collectively as the “Parties”. Recitals: Whereas, Customer has installed or intends to install a Net Metering Facility qualifying for “Net Metering,” Utah Rate Schedule No. 135A (“Schedule 135A”), as given in Rocky Mountain Power’s currently effective tariff as filed with the Public Service Commission of Utah (“Commission”), on or adjacent to Customer’s premises located at ____________________________, Utah, for the purpose of generating electric energy; Whereas, the Net Metering rate schedule may be amended from time to time, and the Public Service Commission may alter the charge, credit, and ratemaking structure applicable to Net Metering customers pursuant to Utah Code § 54-15-105.1; Whereas, Customer represents to Rocky Mountain Power that Customer either owns or leases its Net Metering Facility qualifying for Schedule 135A, or meets the exemption requirements set forth in Utah Code § 54-2-1.16(d) because it is a county, municipality, city, town, other political subdivision, local district, special service district, state institution of higher education, school district, charter school, or any entity within the state system of public education; or an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3) operated for religious, charitable, or educational purposes that is exempt from federal income tax and able to demonstrate its tax-exempt status; Whereas, Customer desires to interconnect the Net Metering Facility with Rocky Mountain Power’s distribution system consistent with the Application completed by on _____________ ____, 20___,Customer as described in Appendix A (“Application”) of this Agreement; and Whereas, Customer, using its Net Metering Facility, intends to offset part or all of its electrical requirements supplied by Rocky Mountain Power. Now, therefore, in consideration of and subject to the mutual covenants contained herein, the Parties agree as follows: Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 2 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 3 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 1. Scope and Limitations of Agreement 1.1 Scope The Agreement shall be used for all approved Level 1 Applications according to the procedures set forth in Utah Rule 746-312 (“Rule”), as may be amended from time to time. The Rule can be viewed at www.psc.utah.gov. The Agreement establishes standard terms and conditions approved by the Commission under which a Level 1 Net Metering Facility as described in Appendix A with an electric nameplate capacity of 25 kW or smaller will interconnect to, and operate in parallel with, Rocky Mountain Power’s system. 1.2 Definitions Terms with initial capitalization, when used in this Agreement, shall have the meanings indicated or as specified in the Rule Section R746-312-2 and, to the extent this Agreement conflicts with the Rule, the Rule shall take precedence. 1.3 Other Agreements Nothing in this Agreement is intended to affect any other agreement between Rocky Mountain Power and Customer or any other Interconnection Customer. However, in the event that the provisions of the Agreement are in conflict with the provisions of any Rocky Mountain Power Tariff, the Rocky Mountain Power Tariff shall control. 1.4 Responsibilities of the Parties 1.4.1 The Parties shall perform all obligations of the Agreement in accordance with all applicable laws and regulations. 1.4.2 Customer will construct, operate, test, and maintain its Net Metering Facility in accordance with the Agreement, IEEE standards (available at the following link: http://standards.ieee.org/index.html), National Electric Code Standards (available for purchase at http://standards.ieee.org/faqs/NESCFAQ.html#q8), Utah state building codes (available at the following link: http://www.dopl.utah.gov/programs/ubc/), the Rule, and other applicable standards required by the Commission, as may be amended from time to time. 1.4.3 Each Party shall be responsible for the safe installation, maintenance, repair and condition of their respective lines and equipment on their respective sides of the Point of Common Coupling. Each Party shall provide interconnection facilities that adequately protect the other Party’s facilities, personnel and other persons from damage and injury. The allocation of responsibility for the design, installation, operation and maintenance of interconnection facilities is prescribed in the Rule, including but not necessarily limited to R746-312-4. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 3 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 4 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.4.4 1.5 Customer is responsible for protecting the generating equipment, inverters, protective devices, and other system components from damage from the normal and abnormal conditions and operations that occur on Rocky Mountain Power’s system in delivering and restoring power; and is responsible for ensuring that the Net Metering Facility equipment is inspected, maintained, and tested in accordance with the manufacturer’s instructions to ensure that it is operating correctly and safely. Parallel Operation and Maintenance Obligations Once the Net Metering Facility has been authorized to commence parallel operation by an approved application and execution of this Agreement, Customer will abide by all written provisions for operations and maintenance as required by the Rule and Rocky Mountain Power’s tariffs, including but not necessarily limited to R746-312-4 and Schedule 135A or its successor tariff(s). 1.6 Metering Rocky Mountain Power shall install, own and maintain, at its sole expense, a kilowatthour meter(s) and associated equipment to measure the flow of energy in each direction, unless otherwise authorized by the Commission. Customer hereby consents to the installation of and operation by Rocky Mountain Power, at Rocky Mountain Power’s expense, one or more additional meters to monitor the flow of electricity in each direction. Such meter(s) shall be located on the premises of Customer. 1.7 1.8 Net Metering Facility Requirements, Installation, Operation 1.7.1 Customer’s Net Metering Facility must meet the requirements set forth in, including but not necessarily limited to, the Rule, R746-312-4 and Schedule 135A or its successor tariff(s). This also applies to installation and operation of the Net Metering Facility. 1.7.2 Customer is responsible for all costs associated with its Net Metering Facility. Anticipated Start Date Customer must include an anticipated start date for operation of its Net Metering Facility in the Application. After receiving notice that the Application has been approved, Customer must execute and return this Agreement with a copy of the approved electric inspection to Rocky Mountain Power. Upon satisfactory completion of all reviews and inspections of the Net Metering Facility, Customer must notify Rocky Mountain Power at least ten (10) business days prior to starting operation of the Net Metering Facility, either through submission of an executed Agreement or through separate written notice. Customer shall not commence parallel operation of the Net Metering Facility until Rocky Mountain Power executes this Agreement, installs the net meter and notifies Customer that the Net Metering Facility is interconnected. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 4 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 5 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.9 Net Metering Facility Inspection 1.9.1 Building Code Inspection Prior to operation in parallel with Rocky Mountain Power’s system, the Net Metering Facility must be inspected by a local building code official to ensure compliance with applicable local codes. 1.9.2 Inspection by Rocky Mountain Power Rocky Mountain Power may inspect the Net Metering Facility and its component equipment, and the documents necessary to ensure compliance with the Rule. Customer shall notify Rocky Mountain Power prior to placing the Net Metering Facility in service, and Rocky Mountain Power shall have the right to have personnel present on the in-service date. If the Net Metering Facility is subsequently modified in order to increase its gross power rating, Customer must notify Rocky Mountain Power by submitting a new application specifying the modifications in accordance with the level of review required for that application. 1.10 Power Quality Customer will design its Net Metering Facility to maintain a composite power delivery at continuous rated power output at the Point of Common Coupling that meets the requirements set forth in IEEE 1547, in accordance with the Rule, R746-312-4. 1.11 Net Metering Facility Testing and Maintenance Customer shall conduct maintenance and testing on its Net Metering Facilities as set forth in the Rule, including but not necessarily limited to R746-312-14. 1.11.1 Customer shall conduct any manufacturer-recommended testing or maintenance at its expense. 1.11.2 Customer shall conduct any post-installation testing, at its expense, necessary to ensure compliance with IEEE standards as set forth in the Rule or to ensure safety. This includes replacing a major equipment component that is different from the originally installed model. 1.11.3 When Customer performs maintenance or testing in accordance with the Rule, it must retain written records documenting the maintenance and results of the testing for three (3) years. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 5 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 6 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.11.4 Rocky Mountain Power shall have the right to inspect Customer’s facility after interconnection approval is granted, at reasonable hours and with reasonable prior notice to Customer. If Rocky Mountain Power discovers that the Net Metering Facility is not in compliance with the Rule, Rocky Mountain Power may require Customer to disconnect the Net Metering Facility until compliance is achieved. 1.12 Removal of Facility Customer shall immediately notify Rocky Mountain Power if Customer removes or ceases to operate the Net Metering Facility. Article 2. 2.1 Review, Inspection, Testing, Disconnect Switch and Signage, and Right of Access Review After determining Customer’s interconnection request is complete, in accordance with the Rule, R746-312-8, Rocky Mountain Power will conduct a review of the proposed interconnection using screens set forth in the Rule, R746-312-7. Rocky Mountain Power will conduct such review within fifteen (15) days after notifying Customer that the interconnection request is complete and will notify Customer either that the Net Metering Facility meets all applicable criteria and the interconnection request is approved, or the Net Metering Facility has failed to meet one or more of the applicable criteria, the reason for failure, and the interconnection request is denied under Level 1 review. If the interconnection request is denied, Customer may resubmit the application under the Level 2 or Level 3 review process. 2.2 Equipment Testing and Inspection Customer must notify Rocky Mountain Power of the anticipated testing and inspection date of the Net Metering Facility at least ten (10) business days prior to testing, either through submittal of the Agreement, a notice of completion, or in a separate notice. Within ten (10) business days after receipt of such required documentation, Rocky Mountain Power will inspect the Net Metering Facility, set the new meter if required, approve the interconnection and may arrange a witness test as set forth in the Rule, R746-312-8(4). Rocky Mountain Power and Customer will select a date by mutual agreement for the witness test. Rocky Mountain Power will test and inspect the Net Metering Facility and Interconnection Facilities prior to interconnection in accordance with IEEE Standards as provided for in the Rule, R746-312-4. Customer shall not begin operation of its Net Metering Facility until after inspection and testing is completed. If a witness test is conducted and is not satisfactory, Customer must resolve any deficiencies within thirty (30) business days or other time period as mutually agreed by the Parties. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 6 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 7 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 2.3 Disconnect Switch and Signage Customer shall comply with the Rule regarding disconnect switches, R746-312-4. The disconnect switch may be located more than 10 feet from the public utility meter if permanent instructions in letters of appropriate size are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve in writing the location of the disconnect switch prior to the installation of the Net Metering Facility. 2.4 Right of Access As provided in the Rule, R746-312-4, Rocky Mountain Power shall have access to any required disconnect switch at the Net Metering Facility at all times. Rocky Mountain Power will provide reasonable notice to Customer when possible prior to using the right of access. Additionally, as provided in Rocky Mountain Power Utah Rule 6, or its successor tariff, Rocky Mountain Power shall have access to the metering equipment. Article 3. 3.1 Effective Date, Term, Termination and Disconnection Effective Date The Agreement shall become effective upon execution by the Parties. 3.2 Term of Agreement The Agreement will become effective on the Effective Date and will remain in effect unless terminated in accordance with provisions of this Agreement, or Order by the Commission. 3.3 Termination No termination will become effective until the Parties have complied with all applicable laws and clauses of this Agreement applicable to such termination. 3.3.1 Customer may terminate this Agreement at any time by giving Rocky Mountain Power twenty (20) business days written notice. 3.3.2 Either Party may terminate this Agreement after default pursuant to Article 6.4 of this Agreement. 3.3.3 The Commission may Order termination of this Agreement. 3.3.4 Upon termination of this Agreement, Customer shall disconnect the Net Metering Facility from Rocky Mountain Power’s system. The termination of this Agreement will not relieve either Party of its liabilities and obligations, owed or continuing at the time of termination. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 7 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 8 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 3.4 3.3.5 If Customer removes the Net Metering equipment at the Net Metering Facility or ceases to operate its Net Metering Facility at the premises listed in Recital 1 above, this Agreement will be immediately terminated. 3.3.6 The provisions of this Article shall survive termination or expiration of this Agreement. Temporary Disconnection 3.4.1 Rocky Mountain Power may temporarily disconnect the Net Metering Facility from Rocky Mountain Power’s system for so long as reasonably necessary in the event one or more of the following conditions or events occurs: 3.4.1.1 Emergencies or to address maintenance requirements for Rocky Mountain Power’s system. 3.4.1.2 Hazardous conditions existing on Rocky Mountain Power’s system which may affect the safety of the general public or Rocky Mountain Power employees due to the operation of the Net Metering Facility or protective equipment as determined by Rocky Mountain Power. 3.4.1.3 Adverse electrical effects on the electrical equipment of Rocky Mountain Power’s other electric customers caused by the Net Metering Facility as determined by Rocky Mountain Power. 3.4.2 In the event that no disconnect switch is installed, Rocky Mountain Power may physically disconnect all service to the Customer and/or all service to the premises where the Net Metering Facility is located. 3.4.3 To the extent practicable, Rocky Mountain Power will give prior notice of any temporary disconnection of the Net Metering Facility. If Rocky Mountain Power is unable to give prior notice, Rocky Mountain Power will provide notice including an explanation of the condition necessitating the disconnection at the time of disconnection 3.4.4 Under emergency conditions, Rocky Mountain Power or Customer may immediately suspend interconnection service and temporarily disconnect the Net Metering Facility. Rocky Mountain Power shall notify Customer promptly when Rocky Mountain Power becomes aware of an emergency condition that may reasonably be expected to affect the Net Metering Facility operation. Customer shall notify Rocky Mountain Power promptly when Customer becomes aware of an emergency condition that may reasonably be expected to affect Rocky Mountain Power’s system. To the extent the information is known, the notification shall describe the emergency condition, the extent of any damage or Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 8 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 9 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward deficiency, the expected effect on the operation of both Parties’ facilities and operations, the anticipated duration, and the necessary corrective action. 3.4.5 Customer shall make reasonable efforts to provide notice of interruption of Net Metering Facility operation for safety and/or reliability reasons prior to the interruption unless an emergency occurs. Emergency interruptions or temporary terminations are subject to Section 3.4.4 above. 3.4.6 Rocky Mountain Power shall use reasonable efforts to provide Customer with prior notice of forced outages to effect immediate repairs to Rocky Mountain Power’s system. If prior notice is not given, Rocky Mountain Power, shall, upon request, provide Customer written documentation after the fact explaining the circumstances of the disconnection. 3.4.7 Customer must provide Rocky Mountain Power notice and obtain Rocky Mountain Power’s written approval before Customer may modify its Net Metering Facility in order to increase the electric output of the Net Metering Facility. If Customer makes any material change without prior written authorization of Rocky Mountain Power, Rocky Mountain Power will have the right to temporarily disconnect the Net Metering Facility until Rocky Mountain Power has had an opportunity to review the change(s) made to determine whether they are acceptable. If system modifications or other equipment installations are deemed necessary by Rocky Mountain Power to accommodate the modified Net Metering Facility, Customer shall submit the appropriate net metering application at that time. 3.4.8 The Parties shall cooperate with each other to restore the Net Metering Facility, interconnection facilities, and Rocky Mountain Power’s system to their normal operating state as soon as reasonably practicable following any disconnection pursuant to Section 3.4. Article 4. Cost Responsibility 4.1 Customer shall bear the cost of any Application fee set forth by Rule, or as otherwise approved by the Commission. 4.2 Customer shall bear the cost of any facilities, equipment, modifications and upgrades as required by the Rule. Customer shall also be responsible for all reasonable expenses, including overheads, associated with owning, operating, maintaining, repairing, and replacing its Net Metering Facility. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 9 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 10 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 5. 5.1 Billing Monthly Billing The electric service charge shall be computed in accordance with the monthly billing in the currently applicable service tariff. Customer will be compensated for net excess energy in accordance with Schedule 135A or its successor tariff(s). Customer will be transitioned to any successor tariff immediately upon approval of that tariff by the Public Service Commission and will be subject to any charge, credit, or ratemaking structure implemented therein. 5.2 Special Conditions Customer must comply with the special conditions found in Schedule 135A or its successor tariff(s). 5.3 Aggregating Meters Aggregating Meters is allowed if certain conditions are met under the Rule, R746-3125. Customer designates the following meters for aggregation: _______________________. In the event that the Net Metering Facility supplies more electricity to Rocky Mountain Power than the Customer uses from Rocky Mountain Power, Rocky Mountain Power will apply any credits to the next monthly bill in accordance with Utah Code § 54-15-104 and the Rule, R746-312-15. Customer shall designate the order in which to apply any credits in accordance with the Rule. <<If customer does not want to aggregate, insert “N\A” in the space above.>> Article 6. 6.1 Assignment, Liability, Indemnity, Consequential Damages and Default Assignment This Agreement may be assigned by either Party with the consent of the other Party. A Party’s consent to an assignment may not be unreasonably withheld. The assigning Party must give the non-assigning Party written notice of the assignment at least fifteen days (15) before the effective date of the assignment. The non-assigning Party must submit its objection to the assignment, if any, to the assigning Party in writing at least 5 business days before the effective date of the assignment. If a written objection is not received within that time period, the non-assigning party is deemed to consent to the assignment. 6.1.1 Exceptions to Consent Requirement 6.1.1.1 Either Party may assign the Agreement without the consent of the other Party to any affiliate (including a merger or acquisition of the Party with another entity) of the assigning Party with an equal or greater credit Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 10 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 11 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.1.2 Customer is entitled to assign the Agreement without the consent of Rocky Mountain Power for collateral security purposes to aid in obtaining financing for the Net Metering Facility. 6.1.1.3 For small generator systems that are integrated into a building facility, the sale of the building or property will result in the automatic assignment of this Agreement to the new owner who will be responsible for complying with the terms and conditions of this Agreement. 6.1.2 6.2 Any attempted assignment that violates this Article is void and ineffective. Assignment does not change or eliminate a Party’s obligations under this Agreement. An assignee is responsible for meeting the same obligations as the assigning Party. Limitation of Liability and Consequential Damages Each Party’s liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in its performance of this Agreement, is limited to the amount of direct damage actually incurred. Neither Party is liable to the other Party for any indirect, special, consequential, or punitive damages. 6.3 Indemnification Customer shall hold harmless and indemnify Rocky Mountain Power for all loss to third parties resulting from the operation of the Net Metering Facility, except when the loss occurs due to the negligent actions of Rocky Mountain Power. Rocky Mountain Power shall hold harmless and indemnify Customer for all loss to third parties resulting from the operation of Rocky Mountain Power’s system, except where the loss occurs due to the negligent actions of Customer. 6.4 Force Majeure 6.4.1 As used in this Agreement, a Force Majeure Event shall mean “any act of God, labor disturbance, act of the public enemy, war, acts of terrorism, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment through no direct, indirect, or contributory act of a Party, any order, regulation, or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party’s control. A Force Majeure Event does not include an act of negligence or wrongdoing.” Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 11 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 12 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 6.4.2 6.5 If a Force Majeure Event prevents a Party from fulfilling any obligations under this Agreement, the Party affected by the Force Majeure Event (“Affected Party”) shall promptly notify the other Party of the existence of the Force Majeure Event. The notification must specify in reasonable detail the circumstances of the Force Majeure Event, its expected duration, and the steps that the Affected Party is taking to mitigate the effects of the event on its performance, and if the initial notification was verbal, it should be promptly followed up with a written notification. The Affected Party shall keep the other Party informed on a continuing basis of developments relating to the Force Majeure Event until the event ends. The Affected Party will be entitled to suspend or modify its performance of obligations under this Agreement (other than the obligation to make payments) only to the extent that the effect of the Force Majeure Event cannot be reasonably mitigated. The Affected Party will use reasonable efforts to resume its performance as soon as possible. The Parties shall immediately report to the Commission should a Force Majeure Event prevent performance of an action required by Rule that the Rule does not permit the Parties to mutually waive. Default 6.5.1 A Party is in default if the Party fails to perform an obligation required under this Agreement (other than the payment of money). A Party is not considered in default of this agreement if the failure to perform an obligation is caused by an act or omission of the other Party. 6.5.2 Upon a default, the non-defaulting Party must give written notice of the default to the defaulting party. The defaulting party has sixty (60) calendar days from the receipt of the written default notice to cure the default. If the default is not capable of cure within the 60-day period, the defaulting Party must begin to cure the default within twenty (20) calendar days after receipt of the written default notice, and must continuously and diligently complete the cure within six (6) months of the receipt of the notice. 6.5.3 If a default is not cured as provided in 6.5.2, then the non-defaulting Party is entitled to terminate the Agreement by written notice at any time until cure occurs. If the non-defaulting Party chooses to terminate this Agreement, the termination provisions in Article 3.3 apply. Alternately, the non-defaulting Party is entitled to seek dispute resolution with the Commission in lieu of termination. Article 7. Insurance Additional liability insurance is not required as a part of the Agreement if the Net Metering Facility is in compliance with the provisions of the Application approval, the Agreement and the standards contained in Utah Code § 54-15-106. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 12 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 13 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 8. Dispute Resolution Nothing in this Article shall restrict the rights of any Party to file a Complaint with the Commission under relevant provisions of the Rule, R746-312-3(5) and applicable state law. Article 9. 9.1 Miscellaneous Governing Law, Regulatory Authority, and Rules The validity, interpretation, and enforcement of this Agreement is governed by the laws of the State of Utah. If any provision of this Agreement conflicts with any applicable provision, as may be amended from time to time, of the Utah Code (“Code”), Utah Administrative Rules (“Rules”), or Rocky Mountain Power’s Tariffs (“Tariff”), then the applicable provision of the Code, Rules, or Tariff controls. Rocky Mountain Power must provide copies of the applicable provisions of the Code, Rules, and Tariff upon the Customer’s request. 9.2 Amendment Additions, deletions or changes to the standard terms and conditions of this Agreement will not be permitted unless they are mutually agreed to by the Parties and permitted by the Rule or permitted by the Commission for good cause shown. The Parties may amend the Agreement by a written instrument duly executed by both Parties in accordance with the provisions of the Rule, applicable Commission Orders and provisions of the laws of the State of Utah. 9.3 No Third Party Beneficiaries The Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, or where permitted, their successors in interest and their assigns. 9.4 Waiver 9.4.1 The failure of a Party to the Agreement to insist, on any occasion, upon strict performance of any provision of the Agreement, will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party. 9.4.2 The Parties may also agree to mutually waive a Section of this Agreement without the Commission’s approval where the Rule so provides. 9.4.3 Any waiver at any time by either Party of its rights with respect to the Agreement shall not be deemed a continuing waiver or a waiver with respect to any other failure to comply with any other obligation, right, duty of the Agreement. Termination or default of this Agreement for any reason by Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 13 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 14 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Customer shall not constitute a waiver of the Customer’s legal rights to obtain interconnection from Rocky Mountain Power. Any request for waiver of the Agreement or any provisions thereof shall be provided in writing. 9.5 Entire Agreement The Agreement, including any supplementary attachments that may be necessary, constitutes the entire Agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of the Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party’s compliance with its obligations under the Agreement. 9.6 Multiple Counterparts This Agreement may be executed in one or more counterparts, whether electronically or otherwise, each of which is deemed an original but all constitute one and the same instrument. 9.7 No Partnership The Agreement will not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party. 9.8 Severability If any provision or portion of the Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (1) such portion or provision shall be deemed separate and independent, (2) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (3) the remainder of the Agreement shall remain in full force and effect. 9.9 Subcontractors Nothing in the Agreement shall prevent a Party from using the services of any subcontractor, or designating a third party agent as the one responsible for a specific obligation or act required in the Agreement (collectively subcontractors), as it deems appropriate to perform its obligations under the Agreement; provided, however, that each Party will require its subcontractors to comply with all applicable terms and Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 14 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 15 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward conditions of the Agreement in providing such services and each Party will remain primarily liable to the other Party for the performance of the subcontractor. 9.10 9.9.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under the Agreement. The hiring Party shall by fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made. Any applicable obligation imposed by the Agreement upon the hiring Party shall be equally binding upon, and will be construed as having application to, any subcontractor of such Party. 9.9.2 The obligations under this Article will not be limited in any way by any limitation of a subcontractor’s insurance. Reservation of Rights Rocky Mountain Power shall have the right to make a unilateral filing with the Commission to modify this Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule, regulation or any other applicable provision of the Federal Power Act and the Commission’s rules and regulations thereunder, and Customer shall have the right to make a unilateral filing with the Commission to modify this Agreement under any applicable provision of the Federal Power Act and the Commission’s rules and regulations; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the Commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties, except to the extent that the Parties otherwise agree as provided herein. Article 10. 10.1 Notices and Records General Unless otherwise provided in the Agreement, any written notice, demand, or request required or authorized in connection with the Agreement shall be deemed properly given if delivered in person, delivered by recognized national courier service, sent by first class mail, postage prepaid, or by electronic mail if an electronic mail address is provided below, to the person specified below: If to Customer: Customer: ______________________________________________________ Attention: _____________________________________________________________ Address: ________________________________________________________________ City: ________________________________ State: _________________ Zip: ________ Phone: (____) ______________________ Fax: (____) ___________________________ Email: _________________________________________________________________ Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 15 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 16 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If to Rocky Mountain Power: By Mail: Rocky Mountain Power Attention: Net Metering Group P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 Or By email: [email protected] 10.2 Changes to the Notice Information Either Party may change this notice information by giving five (5) business days written notice prior to the effective date of the change. 10.3 Records Rocky Mountain Power will maintain a record of the Net Metering Agreement and related Attachments, if any, for as long as the net metering arrangement is in place. Rocky Mountain Power will provide a copy of these records to Customer within fifteen (15) Business Days if a request is made in writing. Article 11. Signatures IN WITNESSETH WHEREOF, the Parties have caused the Agreement to be executed by their respective duly authorized representatives. For the Customer: By: ______________________________________________ Name: ____________________________________________ Title: _____________________________________________ Date: _____________________________________________ Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 16 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 17 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward For Rocky Mountain Power: By: ______________________________________________ Name: ____________________________________________ Title: _____________________________________________ Date: _____________________________________________ Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 17 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 18 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward APPENDIX A ROCKY MOUNTAIN POWER UTAH NET METERING APPLICATION LEVEL 1 REVIEW INVERTER BASED SYSTEMS, 25 KW OR SMALLER Section 1: For Rocky Mountain Power Use Only Customer Name: ______________________________________________________________________ Service Address: ______________________________________________________________________ City, State, Zip: _______________________________________________________________________ Customer Account No. & Request No.: ____________________________________________________ Section 2: To Be Completed By Customer A. Applicant Information Name: _____________________________________________________________________ Mailing Address: ____________________________________________________________ City: ___________________________________State: _________ Zip Code: ____________ Site Street Address (if different from above): ______________________________________ City: ___________________________________State: __________ Zip Code: ___________ Daytime Phone: (_____) _____________________ Fax: (_____) ______________________ Email: _____________________________________________________________________ B. System Information System Type: Solar Wind Hydro Other (Specify): ___________________ Generation Nameplate Capacity: _____ kW (Combine DC total of wind turbines, solar panels, etc) Inverter Controlled: Yes No Inverter Manufacturer: __________ Model: _______ Number of Inverters: ___ Rating: ____ kW Manufacturer Nameplate Inverter Total AC Capacity Rating: _________ kW Single Phase Three Phase Multiple Single Phase Connected on Poly-phase Inverter(s): (three phase) system (Attach Inverter and Panel Technical Specifications Sheets) Type of Service: Single Phase Three Phase If Three Phase: 120/208 Volts, 4 wire 120/240 Volts, 4 wire 277/480 Volts, 4 wire Other (Please Specify Voltage and Number of Service Wires): _______________________________________ Meets IEEE standard 1547 & UL Subject 1741 requirements as specified in Rule: Yes No Please note: A disconnect switch is not required for an inverter-based facility with a name plate rating of not more than 10 kW. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 18 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 19 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Manual disconnect required: Yes No Will the net metering facility interconnect to a switchgear? Yes No Net metering facility available fault duty at the point of common coupling:__________________ For other service types, the net metering facility must not impact the Customer’s service conductors by more than 10 kW. If a disconnect switch is installed, Customer to provide a simple one-line diagram that shows the location of the disconnect switch and Rocky Mountain Power meter. Customer must post metal or plastic engraved signage indicating on-site generation in accordance with National Electric Code. The signage must be permanent and located adjacent to the meter base and disconnect switch noting “Parallel Generation on Site” and identifying the manual disconnect switch with the words “Manual Disconnect for Parallel Generation.”____ (Initial Here) Electrical Inspection approval date (attach copy or provide to utility when obtained):__________ Anticipated Operational Date of Net Metering Facilities: ________________________________ C. Application Fee - $60.00 D. Additional Information 1. An equipment package will be considered certified for interconnected operation if it has been submitted by a manufacturer to a nationally recognized testing and certification laboratory, and has been tested and listed by the laboratory for continuous interactive operation with an electric distribution system in compliance with the applicable IEEE and UL 1741 standards in the Rule. 2. If the equipment package has been tested and listed as an integrated package, which includes a generator or other electric source, the equipment package will be deemed certified, and Rocky Mountain Power will not require any further design review, testing or additional information. 3. If the equipment package includes only the interface components (switchgears, inverters, or other interface devices), an interconnection applicant must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and consistent with the testing and listing specified for the package. If the generator or electric source being utilized with the equipment package is consistent with the testing and listing performed by the nationally recognized testing and certification laboratory, the equipment package will be deemed certified and Rocky Mountain Power will not require further design review, testing or additional equipment. 4. A net metering facility must be equipped with metering equipment that can measure the flow of electricity in both directions, comply with ANSI C12.1 standards and Utah Administrative Rule R746-312. Rocky Mountain Power will install the required metering equipment at Rocky Mountain Power’s expense. 5. Rocky Mountain Power will not be responsible for the cost of determining the rating of equipment owned by the customer-generator or of equipment owned by other local customers. 6. Customer may operate the Net Metering Facility temporarily for testing and obtaining inspection approval. Customer shall not operate the Net Metering Facility in continuous parallel without an executed Interconnection and Net Metering Service Agreement, and approval from Rocky Mountain Power. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 19 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 20 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward E. Customer Acknowledgment I certify that the information provided in this Application is true. I will provide Rocky Mountain Power a copy of the signed government electrical inspection approval document when obtained, if not already provided with this Application. I agree to abide by the terms of this Application and I agree to notify Rocky Mountain Power thirty (30) days prior to modification or replacement of the System’s components or design. Any such modification or replacement may require submission of a new Application to Rocky Mountain Power. I agree not to operate the Net Metering Facility in parallel with Rocky Mountain Power, except temporarily for testing and obtaining inspection approval, until this Application is approved by Rocky Mountain Power, until this agreement is signed by both parties, and until I have provided Rocky Mountain Power with at least five (5) days notice of anticipated start date. Customer or Applicant Signature & Date: ____________________________________ Please send completed application to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 or Please scan the completed application and email [email protected] Section 3: To be completed by the System Installer Installation Contractor Information/Hardware and Installation Compliance Installation Contractor (Company Name): _________________________________________________ Contractor's License No.: ______________________ Proposed Installation Date: __________________ Mailing Address: _____________________________________________________________________ City: _____________________________________ State: ___________ Zip Code: ________________ Daytime Phone: _______________ Fax: _______________ Email: ____________________________ For inverter-controlled system, meets IEEE Standards and UL 1741 Inverters, Converters, and Yes No Controllers for use in Independent Power Systems as set forth in the Rule: If Photovoltaic System, System must be installed in compliance with IEEE Standards, Recommended Practice for Utility Interface of Photovoltaic Systems. All System types must be installed in compliance with applicable requirements of local electrical codes, Rocky Mountain Power and the National Electrical Code® (NEC) and must use an anti-islanding inverter. The System must include a manual, lockable, load-break (disconnect) switch, unless exempt under Rule 746-312-4(2), accessible at all times to Rocky Mountain Power personnel and located within 10 feet of Rocky Mountain Power’s meter. The disconnect switch may be located more than 10 feet from Rocky Mountain Power’s meter if permanent instructions are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve the location of the disconnect switch prior to the installation of the net metering facility. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 20 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 21 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If the Net Metering Facility is designed to provide uninterruptible power to critical loads, either through energy storage, back-up generator, or the generation source, the Net Metering Facility will include a parallel blocking scheme for this backup source. This function may be integral to the inverter manufacturer’s packaged system. Does the Net Metering Facility include a parallel blocking scheme: Yes No Signed (Contractor): ______________________________________ Date: _____________ Name (Print): _______________________________________________ Section 4. To be completed by Rocky Mountain Power: A. If approving the application: Rocky Mountain Power does not, by approval of this Application, assume any responsibility or liability for damage to property or physical injury to persons. Further, this Application does not constitute a dedication of the owner's System to Rocky Mountain Power electrical system equipment or facilities. Customer entered into an Interconnection and Net Metering Service Agreement with Rocky Mountain Power on the ____ day of _____, 20__. Customer satisfactorily passed Witness Tests on the ____ day of _________, 20__. (Rocky Mountain Power may waive Witness Tests at its option; if tests are waived initial here __) This Application is approved by Rocky Mountain Power on this ______ day of _________, 20__ Rocky Mountain Power Representative Name (Print):___________________________________ Signed (Rocky Mountain Power Representative): ______________________ Date: __________ B. If denying the application: This application is denied by Rocky Mountain Power on this ______ day of ____________, 20__ for the following reason(s):_________________________________________________________ Rocky Mountain Power Representative Name (Print):____________________________________ Signed (Rocky Mountain Power Representative): ________________________ Date:__________ Applicant may submit a new application for Level 2 review. Section 5: To be completed by Rocky Mountain Power Meterman Customer Account No. _____________________________ Site ID No. : ______________________ Served from Facility Point No.: ________________________________ New Net Meter No.: ____________________________ Date net meter installed: ________________ Manual disconnect required: Yes No Proper location & permanent signage in place: Yes No Signature/Title:_____________________________________________ Date:___________________ Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 5 - Level 1 Page 21 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 22 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward We appreciate your interest in Rocky Mountain Power’s net metering program. Before purchasing any net metering equipment, we recommend you review the requirements for interconnecting a net metering system to Rocky Mountain Power’s electrical distribution system. The requirements are found in the Interconnection Agreement. To complete the process for a net metering interconnection, please follow the steps below: 1. Complete and submit the following to Rocky Mountain Power: Interconnection Agreement including the Application for Net Metering Interconnection The inverter specification sheet For systems larger than 10 kW, a simple one-line diagram showing The location of Rocky Mountain Power’s meter The location of the disconnect switch 2. Rocky Mountain Power will review your agreement and application and send you a written notification of approval either by mail or e-mail 3. Install the net metering system after you receive the written approval of your Interconnection Agreement and Application for Net Metering from Rocky Mountain Power 4. Obtain an inspection of your net metering system by the local city or county electrical inspector 5. Submit the electrical inspector’s approval to Rocky Mountain Power 6. Turn on your net metering system after Rocky Mountain Power provides you written notification the interconnection work has been completed and the net meter installed Return completed documents to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, Utah 84125-0308 Or Email to: [email protected] Thank you for your interest in the net metering program. If you have questions, please call us toll free at 1-888-221-7070 and ask for a net metering specialist. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 1 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 23 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Service ID#:___________ Request #: ___________ INTERCONNECTION AND NET METERING SERVICE AGREEMENT FOR NET METERING FACILITY LEVEL 2 INTERCONNECTION UP TO 2 MW NAMEPLATE CAPACITY This Interconnection and Net Metering Service Agreement (“Agreement”) is made and entered into this ____ day of _____________, 20___, by and between _____________________________, an electric customer (“Customer”), and PacifiCorp, dba Rocky Mountain Power (“Rocky Mountain Power”), a Corporation organized and existing under the laws of the State of Oregon. Customer and Rocky Mountain Power each may be referred to as a “Party”, or collectively as the “Parties”. Recitals: Whereas, Customer has installed or intends to install a Net Metering Facility qualifying for “Net Metering,” Utah Rate Schedule No. 135A (“Schedule 135A”), as given in Rocky Mountain Power’s currently effective tariff as filed with the Public Service Commission of Utah (“Commission”), on or adjacent to Customer’s premises located at ____________________________, Utah, for the purpose of generating electric energy; Whereas, the Net Metering rate schedule may be amended from time to time, and the Public Service Commission may alter the charge, credit, and ratemaking structure applicable to Net Metering customers pursuant to Utah Code § 54-15-105.1; Whereas, Customer represents to Rocky Mountain Power that Customer either owns or leases its Net Metering Facility qualifying for Schedule 135A, or meets the exemption requirements set forth in Utah Code § 54-2-1.16(d) because it is a county, municipality, city, town, other political subdivision, local district, special service district, state institution of higher education, school district, charter school, or any entity within the state system of public education; or an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3) operated for religious, charitable, or educational purposes that is exempt from federal income tax and able to demonstrate its tax-exempt status; Whereas, Customer desires to interconnect the Net Metering Facility with Rocky Mountain Power’s distribution system consistent with the Application completed by Customer on _____________ ____, 20___, as described in as described in Appendix B (“Application”) of this Agreement; and Whereas, Customer, using its Net Metering Facility, intends to offset part or all of its electrical requirements supplied by Rocky Mountain Power. Now, therefore, in consideration of and subject to the mutual covenants contained herein, the Parties agree as follows: Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 2 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 24 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 1. Scope and Limitations of Agreement 1.1 Scope The Agreement shall be used for all approved Level 2 Applications according to the procedures set forth in Utah Administrative Rule 746-312, as may be amended from time to time (“Rule”). The Rule can be viewed at www.psc.utah.gov. The Agreement establishes standard terms and conditions approved by the Public Service Commission of Utah (“Commission”) under which the Net Metering Facility with an Electric Nameplate Capacity of 2 MW or smaller as described in Appendix B will interconnect to, and operate in parallel with, Rocky Mountain Power’s system. 1.2 Definitions Terms with initial capitalization, when used in this Agreement, shall have the meanings indicated or as specified in the Rule Section R746-312-2 and, to the extent this Agreement conflicts with the Rule, the Rule shall take precedence. 1.3 Other Agreements Nothing in this Agreement is intended to affect any other agreement between Rocky Mountain Power and Customer or any other Interconnection Customer. However, in the event that the provisions of the Agreement are in conflict with the provisions of any Rocky Mountain Power Tariff, as may be amended from time to time, the Rocky Mountain Power Tariff, as may be amended from time to time, shall control. 1.4 Responsibilities of the Parties 1.4.1 The Parties shall perform all obligations of the Agreement in accordance with all applicable laws and regulations. 1.4.2 Customer will construct, operate, test, and maintain its Net Metering Facility in accordance with the Agreement, IEEE standards (available at the following link: http://standards.ieee.org/index.html), National Electric Code Standards (available for purchase at http://standards.ieee.org/faqs/NESCFAQ.html#q8), Utah state building codes (available at the following link: http://www.dopl.utah.gov/programs/ubc/), the Rule and other applicable standards required by the Commission, as may be amended from time to time. 1.4.3 Each Party shall be responsible for the safe installation, maintenance, repair and condition of their respective lines and appurtenances on their respective sides of the Point of Common Coupling. Each Party shall provide interconnection facilities that adequately protect the other Party’s facilities, personnel and other persons from damage and injury. The allocation of responsibility for the design, installation, operation, maintenance and ownership of interconnection facilities is prescribed in the Rule, including but not necessarily limited to R746-312-4. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 3 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 25 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.5 1.4.4 Customer is responsible for protecting the generating equipment, inverters, protective devices, and other system components from damage from the normal and abnormal conditions and operations that occur on Rocky Mountain Power’s system in delivering and restoring power; and is responsible for ensuring that the Net Metering Facility equipment is inspected, maintained, and tested in accordance with the manufacturer’s instructions to ensure that it is operating correctly and safely. 1.4.5 Customer shall obtain Rocky Mountain Power’s approval of the Application prior to commencing parallel operation of its interconnected Net Metering Facility. Parallel Operation and Maintenance Obligations Once the Net Metering Facility has been authorized to commence parallel operation by an approved application, and execution of this Agreement, Customer will abide by all written provisions for operations and maintenance as required by the Rule and Rocky Mountain Power’s Tariffs, including but not necessarily limited to R746-312-4 and Schedule 135A or its successor tariff(s). 1.6 Metering Rocky Mountain Power shall install, own and maintain, at its sole expense, a kilowatthour meter(s) and associated equipment to measure the flow of energy in each direction, unless otherwise authorized by the Commission. Customer shall provide, at its sole expense, adequate facilities, including, but not limited to, a current transformer enclosure (if required), meter socket(s) and junction box, for the installation of the meter and associated equipment. Customer hereby consents to the installation and operation by Rocky Mountain Power and at Rocky Mountain Power’s expense, of one or more additional meters to monitor the flow of electricity in each direction. Such meters shall be located on the premises of Customer. 1.7 Net Metering Facility Requirements, Installation, Operation 1.7.1 Customer’s Net Metering Facility must meet the requirements set forth in, including but not necessarily limited to, the Rule, R746-312-4 and Schedule 135A or its successor tariff(s). This also applies to installation and operation of the Net Metering Facility. 1.7.2 Customer is responsible for all costs associated with its Net Metering Facility and is also responsible for all costs related to any modifications to the Net Metering Facility that may be required by Rocky Mountain Power for purposes Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 4 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 26 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward of safety and reliability as allowed under the Rule and Rocky Mountain Power tariffs. 1.8 Power Quality Customer will design its Net Metering Facility to maintain a composite power delivery at continuous rated power output at the Point of Common Coupling that meets the requirements set forth in IEEE 1547, in accordance with the Rule, R746-312-4. 1.9 Anticipated Start Date Customer must include an anticipated start date for operation of its Net Metering Facility in the Application. After receiving notice that the Application has been approved and satisfactory completion of all reviews and inspections of the Net Metering Facility, Customer must notify Rocky Mountain Power at least ten (10) Business Days prior to starting operation of the Facility, through either submission of an executed Agreement or through separate written notice. Customer shall not commence parallel operation of the Net Metering Facility until Rocky Mountain Power executes this Agreement, installs the net meter and notifies Customer that the Net Metering Facility is interconnected. 1.10 Net Metering Facility Inspection 1.10.1 Building Code Inspection Prior to operation in parallel with Rocky Mountain Power’s system, the Net Metering Facility must be inspected by a local building code official to ensure compliance with applicable local codes. 1.10.2 Inspection by Rocky Mountain Power Rocky Mountain Power may inspect the Net Metering Facility and its component equipment, and the documents necessary to ensure compliance with the Rule. Customer shall notify Rocky Mountain Power prior to placing the Net Metering Facility in service, and Rocky Mountain Power shall have the right to have personnel present on the in-service date. If the Net Metering Facility is subsequently modified in order to increase its gross power rating, Customer must notify Rocky Mountain Power by submitting a new application specifying the modifications in accordance with the level of review required for that application. 1.11 Net Metering Facility Testing and Maintenance Customer shall conduct maintenance and testing on its Net Metering Facilities as set forth in the Rule, including but not necessarily limited to R746-312-14. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 5 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 27 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.11.1 Customer shall conduct any manufacturer-recommended testing or maintenance at its expense. 1.11.2 Customer shall conduct any post-installation testing, at its expense, necessary to ensure compliance with IEEE standards as set forth in the Rule or to ensure safety. This includes replacing a major equipment component that is different from the originally installed model. 1.11.3 When Customer performs maintenance or testing in accordance with the Rule, it must retain written records documenting the maintenance and results of the testing for three (3) years. 1.11.4 Rocky Mountain Power shall have the right to inspect Customer’s facility after interconnection approval is granted, at reasonable hours and with reasonable prior notice to Customer. If Rocky Mountain Power discovers that the Net Metering Facility is not in compliance with the Rule, Rocky Mountain Power may require Customer to disconnect the Net Metering Facility until compliance is achieved. 1.12 Removal of Facility Customer shall immediately notify Rocky Mountain Power if Customer removes or ceases to operate the Net Metering Facility. Article 2. 2.1 Review, Inspection, Testing, Disconnect Switch and Signage, and Right of Access Initial Review and Additional Review After determining Customer’s interconnection request is complete, in accordance with the Rule, R746-312-9, Rocky Mountain Power will conduct a review of the proposed interconnection, using screens set forth in the Rule R746-312-7. Rocky Mountain Power will conduct such review within fifteen (15) days after notifying Customer that the interconnection request is complete and will notify Customer either: 1) the Net Metering Facility meets all applicable criteria and the interconnection request is approved; 2) although the Net Metering Facility fails one or more of the screens the Net Metering Facility may be interconnected consistent with safety, reliability, and power quality standards and the interconnection is approved; or 3) the interconnection of the Net Metering Facility has failed to meet one or more of the applicable criteria and the reason for failure, or Rocky Mountain Power has not or could not determine from the initial reviews that the Net Metering Facility may be interconnected consistent with safety reliability, and power quality standards, or the Net Metering Facility cannot be approved without minor modifications at minimal cost and the interconnection request is denied unless the Customer is willing to consider minor modifications or further study. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 6 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 28 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If the initial review determines that the Net Metering Facility fails to meet one or more applicable requirements, but additional review may enable Rocky Mountain Power to determine that the Net Metering Facility may be interconnected consistent with safety, reliability and power quality standards, Rocky Mountain Power will offer to perform the additional review to determine whether minor modifications to the electric distribution system would enable the interconnection to be made consistent with safety, reliability and power quality standards. In this instance, Rocky Mountain Power will provide Customer with a good faith, nonbinding estimate of costs of such additional review and minor modifications. Rocky Mountain Power will conduct additional review and make minor modifications after receipt of payment from Customer in accordance with the attached Appendix A. 2.2 Equipment Testing and Inspection Customer must notify Rocky Mountain Power of the anticipated testing and inspection date of the Net Metering Facility at least ten (10) business days prior to testing, either through submittal of the Agreement, a notice of completion, or in a separate notice. Within ten (10) business days after receipt of such required documentation, Rocky Mountain Power will inspect the Net Metering Facility, set the new meter if required, approve the interconnection and may arrange a witness test as set forth in the Rule, R746-312-9(5). Rocky Mountain Power and Customer will select a date by mutual agreement for the witness tests. Rocky Mountain Power will test and inspect the Net Metering Facility and Interconnection Facilities prior to interconnection in accordance with IEEE Standards as provided for in the Rule, R746-312-4. Customer shall not begin operation of its Net Metering Facility until after inspection and testing is completed. If a witness test is conducted and is not satisfactory, Customer must resolve any deficiencies within forty-five (45) business days or other time period as mutually agreed by the Parties. 2.3 Disconnect Switch and Signage Customer shall comply with the Rule regarding disconnect switches, R746-312-4. The disconnect switch may be located more than 10 feet from the public utility meter if permanent instructions in letters of appropriate size are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve in writing the location of the disconnect switch prior to the installation of the Net Metering Facility. 2.4 Right of Access As provided in the Rule, R746-312-4, Rocky Mountain Power shall have access to any required disconnect switch at the Net Metering Facility at all times. Rocky Mountain Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 7 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 29 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Power will provide reasonable notice to Customer when possible prior to using the right of access. Additionally, as provided in Rocky Mountain Power Utah Rule 6, or its successor tariff, Rocky Mountain Power shall have access to the metering equipment. Article 3. 3.1 Effective Date, Term, Termination and Disconnection Effective Date The Agreement shall become effective upon execution by the Parties. 3.2 Term of Agreement The Agreement will become effective on the Effective Date and will remain in effect unless terminated in accordance with provisions of this Agreement, or Order by the Commission. 3.3 Termination No termination will become effective until the Parties have complied with all applicable laws and clauses of this Agreement applicable to such termination. 3.3.1 Customer may terminate this Agreement at any time by giving Rocky Mountain Power twenty (20) business days written notice. 3.3.2 Either Party may terminate this Agreement after default pursuant to Article 6.4 of this Agreement. 3.3.3 The Commission may Order termination of this Agreement. 3.3.4 Upon termination of this Agreement, Customer shall disconnect the Net Metering Facility from Rocky Mountain Power’s system. The termination of this Agreement will not relieve either Party of its liabilities and obligations, owed or continuing at the time of termination. 3.3.5 If Customer removes the Net Metering equipment at the Net Metering Facility or ceases to operate its Net Metering Facility at the premise listed in the Application, this Agreement will be immediately terminated. 3.3.6 The provisions of this Article shall survive termination or expiration of this Agreement. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 8 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 30 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 3.4 Temporary Disconnection 3.4.1 Rocky Mountain Power may temporarily disconnect the Net Metering Facility from Rocky Mountain Power’s system for so long as reasonably necessary in the event one or more of the following conditions or events occurs: 3.4.1.1 Emergencies or to address maintenance requirements for Rocky Mountain Power’s system. 3.4.1.2 Hazardous conditions existing on Rocky Mountain Power’s system which may affect the safety of the general public or Rocky Mountain Power employees due to the operation of the Net Metering Facility or protective equipment as determined by Rocky Mountain Power. 3.4.1.3 Adverse electrical effects on the electrical equipment of Rocky Mountain Power’s other electric customers caused by the Net Metering Facility as determined by Rocky Mountain Power. 3.4.2 In the event that no disconnect switch is installed, Rocky Mountain Power may physically disconnect all service to the Customer and/or all service to the premises where the Net Metering Facility is located. 3.4.3 To the extent practicable, Rocky Mountain Power will give prior notice of any temporary disconnection of the Net Metering Facility. If Rocky Mountain Power is unable to give prior notice, Rocky Mountain Power will provide notice including an explanation of the condition necessitating the disconnection at the time of disconnection. 3.4.4 Under emergency conditions, Rocky Mountain Power or Customer may immediately suspend interconnection service and temporarily disconnect the Net Metering Facility. Rocky Mountain Power shall notify Customer promptly when Rocky Mountain Power becomes aware of an emergency condition that may reasonably be expected to affect the Net Metering Facility operation. Customer shall notify Rocky Mountain Power promptly when Customer becomes aware of an emergency condition that may reasonably be expected to affect Rocky Mountain Power’s system. To the extent the information is known, the notification shall describe the emergency condition, the extent of any damage or deficiency, the expected effect on the operation of both Parties’ facilities and operations, the anticipated duration, and the necessary corrective action. 3.4.5 Customer shall make reasonable efforts to provide notice of interruption of Net Metering Facility operation for safety and/or reliability reasons prior to the interruption unless an emergency occurs. Emergency interruptions or temporary terminations are subject to Section 3.4.1 above. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 9 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 31 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 3.4.6 Rocky Mountain Power shall use reasonable efforts to provide Customer with prior notice of forced outages to effect immediate repairs to Rocky Mountain Power’s system. If prior notice is not given, Rocky Mountain Power, shall, upon request, provide Customer written documentation after the fact explaining the circumstances of the disconnection. 3.4.7 Customer must provide Rocky Mountain Power notice and obtain Rocky Mountain Power’s written approval before Customer may modify its Net Metering Facility in order to increase the electric output of the Net Metering Facility. If Customer makes any material change without prior written authorization of Rocky Mountain Power, Rocky Mountain Power will have the right to temporarily disconnect the Net Metering Facility until Rocky Mountain Power has had an opportunity to review the change(s) made to determine whether they are acceptable. If any system modifications or other equipment installations are deemed necessary by Rocky Mountain Power to accommodate the modified Net Metering Facility, Customer shall submit the appropriate net metering application at that time. 3.4.8 The Parties shall cooperate with each other to restore the Net Metering Facility, Interconnection Facilities, and Rocky Mountain Power’s system to their normal operating state as soon as reasonably practicable following any disconnection pursuant to this section. Article 4. 4.1 Cost Responsibility Application Fee Customer shall bear the cost of any Application fee provided for in the Rule, R746-31213(2), or as otherwise approved by the Commission. Customer shall remit payment with the Application as calculated in the Application, Section 2(C). 4.2 Net Metering Facility and Interconnection Equipment Customer shall be responsible for all costs including overheads, associated with procuring, installing, owning, operating, maintaining, repairing, and replacing its Net Metering Facility, any associated equipment package, and any associated interconnection equipment or interconnection facilities required to be installed on Customer’s side of the Point of Common Coupling. 4.3 Minor Modifications If, under Section 2.1 of this Agreement, additional review is performed and minor modifications to the electric distribution system are required to enable the interconnection to be made consistent with safety, reliability and power quality Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 10 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 32 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward standards applicable to Level 2 interconnection reviews, the Customer shall pay for the cost to procure, install, and construct, operate, maintain, repair and replace any such Minor Modifications. A description of the minor modifications may be found in Appendix A. The cost of the minor modifications as described on Appendix A shall be $________. Customer shall remit payment for minor modifications prior to Rocky Mountain Power commencing the work required for the minor modifications. Article 5. 5.1 Billing Monthly Billing The electric service charge shall be computed in accordance with the monthly billing in the currently applicable standard service tariff. Customer will be compensated for net excess energy in accordance with Schedule 135A or its successor tariff(s). Customer will be transitioned to any successor tariff immediately upon approval of that tariff by the Public Service Commission and will be subject to any charge, credit, or ratemaking structure implemented therein. 5.2 Special Conditions Customer must comply with the special conditions found in Schedule 135A or its successor tariff(s). 5.3 Aggregating Meters Aggregating Meters is allowed if certain conditions are met under the Rule, R746-3125. Customer designates the following meters for aggregation: _______________________. In the event that the Net Metering Facility supplies more electricity to Rocky Mountain Power than the Customer uses from Rocky Mountain Power, Rocky Mountain Power will apply any credits to the next monthly bill in accordance with Utah Code § 54-15-104 and the Rule, R746-312-15. Customer shall designate the order in which to apply any credits in accordance with the Rule. <<If customer does not want to aggregate, insert “N\A” in the gray box.>> Article 6. 6.1 Assignment, Liability, Indemnity, Force Majeure, Consequential Damages and Default Assignment This Agreement may be assigned by either Party with the consent of the other Party. A Party’s consent to an assignment may not be unreasonably withheld. The assigning Party must give the non-assigning Party written notice of the assignment at least fifteen days (15) before the effective date of the assignment. The non-assigning Party must submit its objection to the assignment, if any, to the assigning Party in writing at least 5 business days before the effective date of the assignment. If a written objection is not Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 11 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 33 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward received within that time period, the non-assigning party is deemed to consent to the assignment. 6.1.1 Exceptions to the Consent Requirement 6.1.1.1 Either Party may assign the Agreement without the consent of the other Party to any affiliate (including a merger or acquisition of the Party with another entity), of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.1.2 Customer-Generator is entitled to assign the Agreement, without the consent of Rocky Mountain Power, for collateral security purposes to aid in obtaining financing for the Net Metering Facility. 6.1.1.3 For Net Metering systems that are integrated into a building facility, the sale of the building or property will result in the automatic assignment of this Agreement to the new owner who will be responsible for complying with the terms and conditions of this Agreement. 6.1.2 6.2 Any attempted assignment that violates this Article is void and ineffective. Assignment does not change or eliminate a Party’s obligations under this Agreement. An assignee is responsible for meeting the same obligations as the assigning Party. Limitation of Liability and Consequential Damages Each Party’s liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in the performance of this Agreement, is limited to the amount of direct damage actually incurred. Neither Party is liable to the other Party for any indirect, special, consequential, or punitive damages. 6.3 Indemnification Customer shall hold harmless and indemnify Rocky Mountain Power for all loss to third parties resulting from the operation of the Net Metering Facility, except when the loss occurs due to the negligent actions of Rocky Mountain Power. Rocky Mountain Power shall hold harmless and indemnify Customer for all loss to third parties resulting from the operation of Rocky Mountain Power’s system, except where the loss occurs due to the negligent actions of Customer. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 12 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 34 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 6.4 6.5 Force Majeure 6.4.1 As used in this Agreement, a Force Majeure Event shall mean “any act of God, labor disturbance, act of the public enemy, war, acts of terrorism, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment through no direct, indirect, or contributory act of a Party, any order, regulation, or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party’s control. A Force Majeure Event does not include an act of negligence or wrongdoing.” 6.4.2 If a Force Majeure Event prevents a Party from fulfilling any obligations under this Agreement, the Party affected by the Force Majeure Event (“Affected Party”) shall promptly notify the other Party of the existence of the Force Majeure Event. The notification must specify in reasonable detail the circumstances of the Force Majeure Event, its expected duration, and the steps that the Affected Party is taking to mitigate the effects of the event on its performance, and if the initial notification was verbal, it should be promptly followed up with a written notification. The Affected Party shall keep the other Party informed on a continuing basis of developments relating to the Force Majeure Event until the event ends. The Affected Party will be entitled to suspend or modify its performance of obligations under this Agreement (other than the obligation to make payments) only to the extent that the effect of the Force Majeure Event cannot be reasonably mitigated. The Affected Party will use reasonable efforts to resume its performance as soon as possible. The Parties shall immediately report to the Commission should a Force Majeure Event prevent performance of an action required by Rule that the Rule does not permit the Parties to mutually waive. Default 6.5.1 A Party is in default if the Party fails to perform an obligation required under this Agreement (other than the payment of money). A Party is not considered in default of this agreement if the failure to perform an obligation is caused by an act or omission of the other Party or is the result of a Force Majeure as defined in this Agreement. 6.5.2 Upon a default, the non-defaulting Party must give written notice of the default to the defaulting party. The defaulting party has sixty (60) calendar days from the receipt of the written default notice to cure the default. If the default is not capable of cure within the 60-day period, the defaulting Party must begin to cure the default within twenty (20) calendar days after receipt of the written default notice, and must continuously and diligently complete the cure within six (6) months of the receipt of the notice. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 13 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 35 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 6.5.3 Article 7. If a default is not cured as provided for in 6.5.2, then the non-defaulting Party is entitled to terminate the Agreement by written notice at any time until cure occurs. If the non-defaulting Party chooses to terminate this Agreement, the termination provisions in Article 3.3 apply. Alternately, the non-defaulting Party is entitled to seek dispute resolution with the Commission in lieu of termination. Insurance Additional liability insurance is not required as a part of the Agreement if the Net Metering Facility is in compliance with the provisions of the Application approval, the Agreement and the standards contained in Utah Code § 54-15-106. Article 8. Dispute Resolution 8.1 Nothing in this Article shall restrict the rights of any Party to file a complaint with the Commission under relevant provisions of the Rule and applicable state law. 8.2 Pursuit of dispute resolution may not affect a Customer with regard to consideration of an Interconnection Request or a Customer’s queue position. Article 9. 9.1 Miscellaneous Governing Law, Regulatory Authority and Rules The validity, interpretation, and enforcement of this Agreement is governed by the laws of the State of Utah. If any provision of this Agreement conflicts with any applicable provision, as may be amended from time to time, of the Utah Code (“Code”), Utah Administrative Rules (“Rules”), or Rocky Mountain Power’s Tariffs (“Tariff”), then the applicable provision of the Code, Rules, or Tariff controls. Rocky Mountain Power must provide copies of the applicable provisions of the Code, Rules, and Tariff upon the Customer’s request. 9.2 Amendment Additions, deletions or changes to the standard terms and conditions of this Agreement will not be permitted unless they are mutually agreed to by the Parties and permitted by the Rule or permitted by the Commission for good cause shown. The Parties may amend the Agreement by a written instrument duly executed by both Parties in accordance with the provisions of the Rule and applicable Commission Orders and provisions of the laws of the State of Utah. 9.3 No Third Party Beneficiaries The Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 14 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 36 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward other than the Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, or where permitted, their successors in interest and their assigns. 9.4 9.5 Waiver 9.4.1 The failure of a Party to the Agreement to insist, on any occasion, upon strict performance of any provision of the Agreement, will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party. 9.4.2 The Parties may also agree to mutually waive a Section of this Agreement without the Commission’s approval where the Rule so provides. 9.4.3 Any waiver at any time by either Party of its rights with respect to the Agreement shall not be deemed a continuing waiver or a wavier with respect to any other failure to comply with any other obligation, right, duty of the Agreement. Termination or default of this Agreement for any reason by Customer shall not constitute a waiver of the Customer’s legal rights to obtain interconnection from Rocky Mountain Power. Any request for waiver of the Agreement or any provisions thereof shall be provided in writing. Entire Agreement The Agreement, including any supplementary attachments that may be necessary, constitutes the entire Agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of the Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party’s compliance with its obligations under the Agreement. 9.6 Multiple Counterparts This Agreement may be executed in one or more counterparts, whether electronically or otherwise, each of which is deemed an original but all constitute one and the same instrument. 9.7 No Partnership The Agreement will not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 15 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 37 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 9.8 Severability If any provision or portion of the Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (1) such portion or provision shall be deemed separate and independent, (2) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (3) the remainder of the Agreement shall remain in full force and effect. 9.9 Subcontractors Nothing in the Agreement shall prevent a Party from using the services of any subcontractor, or designating a third party agent as one responsible for a specific obligation or act required in the Agreement (collectively “subcontractors”), as it deems appropriate to perform its obligations under the Agreement; provided, however, that each Party will require its subcontractors to comply with all applicable terms and conditions of the Agreement in providing such services and each Party will remain primarily liable to the other Party for the performance of the subcontractor. 9.10 9.9.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under the Agreement. The hiring Party shall by fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made. Any applicable obligation imposed by the Agreement upon the hiring Party shall be equally binding upon, and will be construed as having application to, any subcontractor of such Party. 9.9.2 The obligations under this Article will not be limited in any way by any limitation of a subcontractor’s insurance. Reservation of Rights Rocky Mountain Power shall have the right to make a unilateral filing with the Commission to modify this Interconnection Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule, regulation or any other applicable provision of the Federal Power Act and the Commission’s rules and regulations thereunder, and Customer shall have the right to make a unilateral filing with the Commission to modify this Agreement under any applicable provision of the Federal Power Act and the Commission’s rules and regulations; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the governing authority in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties, except to the extent that the Parties otherwise agree as provided herein. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 16 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 38 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 10. 10.1 Notices and Records General Unless otherwise provided in the Agreement, any written notice, demand, or request required or authorized in connection with the Agreement shall be deemed properly given if delivered in person, delivered by recognized national courier service, sent by first class mail, postage prepaid, or by electronic mail if an electronic mail address is provided below to the person specified below: If to Customer: Customer: ______________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: ________________________________ State: _________________ Zip: ________ Phone: (____) ________________________ Fax: (____) _________________________ Email: __________________________________________________________________ If to Rocky Mountain Power: By Mail: Rocky Mountain Power Attention: Net Metering Group P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 Or By email: [email protected] 10.2 Records Rocky Mountain Power will maintain a record of the Interconnection Agreement and related Attachments, if any, for as long as the interconnection is in place. Rocky Mountain Power will provide a copy of these records to Customer within fifteen (15) Business Days upon written request. 10.3 Billing and Payment Billings and payments shall be sent to the addresses below (complete if different from Section 10.1 above): Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 17 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 39 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If to Customer: Customer: ______________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: _______________________________ State: _______________ Zip: ___________ 10.4 Designated Operating Representative The Parties will designate one operating representative each to conduct the communications that may be necessary or convenient for the administration of the operations provisions of the Agreement. This person will also serve as the point of contact with respect to operations and maintenance of the Party’s facilities (complete if different from Section 10.1 above): Customer’s Operating Representative: Name: __________________________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: _______________________________ State: _______________ Zip: ___________ Phone: (____) _______________________ Fax: (____) __________________________ Email: __________________________________________________________________ 10.5 Changes to the Notice Information Either Party may change this notice information by giving five (5) business days written notice prior to the effective date of the change. Article 11. Signatures IN WITNESSETH WHEREOF, the Parties have caused the Agreement to be executed by their respective duly authorized representatives. For the Customer: For Rocky Mountain Power: By: _____________________________ By: _____________________________ Name: ___________________________ Name: ___________________________ Title: ____________________________ Title: ____________________________ Date: ____________________________ Date: ____________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 18 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 40 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Appendix A Minor Modifications Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 19 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 41 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward APPENDIX B ROCKY MOUNTAIN POWER UTAH NET METERING APPLICATION LEVEL 2 REVIEW CAPACITY OF 2 MW OR LESS Section 1: For Rocky Mountain Power Use Only Customer Name: _________________________________________________________________________ Service Address: _________________________________________________________________________ City, State, Zip: __________________________________________________________________________ Customer Account No. & Request No.:________________________________________________________ Interconnection Agreement Acknowledgement (Date): ___________________________________________ Application fee: $__________________ Date Paid: _____________________________________________ Section 2: To Be Completed By Customer A. Applicant Information Name: ___________________________________________________________________________ Mailing Address: ___________________________________________________________________ City: __________________________________________State: _________ Zip Code: ____________ Site Street Address (if different from above): _____________________________________________ City: __________________________________________State: __________ Zip Code: ___________ Daytime Phone: (_____) ________________________ Fax: (_____) __________________________ Email: ____________________________________________________________________________ B. System Information System Type: Solar Wind Hydro Other (Specify): _________________________ Generation Nameplate Capacity: ______________ kW (Combine DC total of wind turbines, solar panels, etc. or AC rating if an inverter is not utilized) Inverter Manufacturer: ___________ Model: _______ Number of Inverters: _____ Rating: _____ kW Manufacturer Nameplate Inverter Total AC Capacity Rating: _________ kW Inverter(s): Single Phase Three Phase Multiple Single Phase Connected on Poly-phase (three phase) system (Attach Inverter and Panel Technical Specifications Sheets) Type: Induction Type of Service: Inverter Single Phase Synchronous __________________Other Three Phase Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 20 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 42 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If Three Phase Transformer: Indicate Type: Wye Delta Indicate Voltage and Number of Service Wires: 120/208 Volts, 4 wire 120/240 Volts, 4 wire 277/480 Volts, 4 wire Other ___________ ________________________________________________________________________________ Other Information:_________________________________________________________________ ________________________________________________________________________________ Self Contained Location: ___________________________________________________________ Outdoor Manual AC Disconnect Switch Location (show Disconnect Switch and Rocky Mountain Power Meter Location on Site Plan), unless exempt under Utah Administrative Rule 746-312-4(2): ________________________________________________________________________________ System Location (show all protective devices on One Line Diagram):_________________________ Will the net metering facility interconnect to a switchgear? Yes No Customer must post metal or plastic engraved signage indicating on-site generation in accordance with the National Electric Code. The signage must be permanent and located adjacent to the meter base and disconnect switch noting “Parallel Generation on Site” and identifying the manual disconnect switch with the words “Manual Disconnect for Parallel Generation.” _____ (Initial Here) One Line Diagram Attached: Installation Test Plan attached: Yes Yes No Site Plan Attached: Yes No No Anticipated Operational Date of Net Metering Facilities: __________________________________ (Rocky Mountain Power must be notified at least ten (10) business days prior to starting operation.) Net metering facility available fault duty at the point of common coupling:_____________________ (A Rocky Mountain Power Engineer may contact you for additional information) Electrical Inspection approval date (attach copy or provide to utility when obtained):_____________ C. Application Fees $ 75.00 + $ __________ $ __________ Base $1.50 x ____ kW of Net Metering Facility’s capacity TOTAL APPLICATION FEE D. Additional Information 1. An equipment package will be considered certified for interconnected operation if it has been submitted by a manufacturer to a nationally recognized testing and certification laboratory, and has been tested and listed by the laboratory for continuous interactive operation with an electric Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 21 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 43 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 2. 3. 4. 5. 6. 7. distribution system in compliance with the applicable IEEE and UL 1741 standards, as set forth in the Rule. If the equipment package has been tested and listed as an integrated package, which includes a generator or other electric source, the equipment package will be deemed certified, and Rocky Mountain Power will not require any further design review, testing or additional information. If the equipment package includes only the interface components (switchgears, inverters, or other interface devices), an interconnection applicant must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and consistent with the testing and listing specified for the package. If the generator or electric source being utilized with the equipment package is consistent with the testing and listing performed by the nationally recognized testing and certification laboratory, the equipment package will be deemed certified and Rocky Mountain Power will not require further design review, testing or additional equipment. A net metering facility must be equipped with metering equipment that can measure the flow of electricity in both directions, comply with ANSI C12.1 standards and Rule 746-312. Rocky Mountain Power will install the required metering equipment at Rocky Mountain Power’s expense. Rocky Mountain Power will not be responsible for the cost of determining the rating of equipment owned by the customer-generator or of equipment owned by other local customers. Customer may operate the Net Metering Facility temporarily for testing and obtaining inspection approval. Customer shall not operate the Net Metering Facility in continuous parallel without an executed Interconnection and Net Metering Service Agreement, and approval from Rocky Mountain Power. Customer will pay to Rocky Mountain Power at the time of application the applicable Application fee of $75.00 plus $1.50 per kilowatt of the net metering facility’s capacity. Customer-generator will pay to Rocky Mountain Power all costs of minor modifications or additional review as set forth in Rule 746-312 prior to commencement of work. E. Customer Acknowledgment I certify that the information provided in this Application is true. I will provide Rocky Mountain Power a copy of the signed government electrical inspection approval document when obtained, if not already provided with this Application. I agree to abide by the terms of this Application and I agree to notify Rocky Mountain Power thirty (30) days prior to modification or replacement of the System’s components or design. Any such modification or replacement may require submission of a new Application to Rocky Mountain Power. I agree not to operate the Net Metering Facility in parallel with Rocky Mountain Power, except temporarily for testing and obtaining inspection approval, until this Application is approved by Rocky Mountain Power, until this agreement is signed by both parties, and until I have provided Rocky Mountain Power with at least five (5) days notice of anticipated start date. Customer or Applicant Signature & Date: ____________________________________ Please send completed application to: Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 22 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 44 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 or Please scan the completed application and email [email protected] Section 3. To be completed by System Installer Installation Contractor Information/Hardware and Installation Compliance Installation Contractor (Company Name): ______________________________________________________ Contractor's License No.: _______________________________ Proposed Installation Date: _____________ Mailing Address: _________________________________________________________________________ City: ______________________________________________ State: _________ Zip Code: _____________ Daytime Phone: ________________ Fax: _____________ Email: __________________________________ For inverter-controlled system, meets IEEE Standards and UL 1741 Inverters, Converters, and Controllers for use in Independent Power Systems as set forth in the Rule: Yes No For induction or synchronous device, meets IEEE Standard 1547 and IEEE/ANSI Standard C37.90 Yes No requirements as set forth in the Rule: If Photovoltaic System, System must be installed in compliance with IEEE Standards, Recommended Practice for Utility Interface of Photovoltaic Systems. All System types must be installed in compliance with applicable requirements of local electrical codes, Rocky Mountain Power and the National Electrical Code® (NEC) and must use an anti-islanding inverter. The System must include a manual, lockable, load-break (disconnect) switch, unless exempt under Rule 746312-4(2), accessible at all times to Rocky Mountain Power personnel and located within 10 feet of Rocky Mountain Power’s meter. The disconnect switch may be located more than 10 feet from Rocky Mountain Power’s meter if permanent instructions are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve the location of the disconnect switch prior to the installation of the net metering facility. If the Net Metering Facility is designed to provide uninterruptible power to critical loads, either through energy storage, back-up generator, or the generation source, the Net Metering Facility will include a parallel blocking scheme for this backup source. This function may be integral to the inverter manufacturer’s packaged system. Does the Net Metering Facility include a parallel blocking scheme: Yes No Signed (Contractor): ______________________________________ Date: _____________ Name (Print): _______________________________________________ Section 4. To be completed by Rocky Mountain Power: Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 23 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 45 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward A. If approving the application: Rocky Mountain Power does not, by approval of this Application, assume any responsibility or liability for damage to property or physical injury to persons. Further, this Application does not constitute a dedication of the owner's System to Rocky Mountain Power electrical system equipment or facilities. Customer entered into an Interconnection and Net Metering Service Agreement with Rocky Mountain Power on the ____ day of _____, 20__. Customer satisfactorily passed Witness Tests on the ___ day of ________, 20___ (Rocky Mountain Power may waive Witness Tests at its option; if tests are waived initial here ______). This Application is approved by Rocky Mountain Power on this _____ day of ______________, 20__ Rocky Mountain Power Representative Name (Print): ______________________________________ Signed (Rocky Mountain Power Representative): __________________________ Date: ___________ B. If denying the application: This application is denied by Rocky Mountain Power on this _____ day of ____________, 20__ for the following reason(s):__________________________________________________________________ Rocky Mountain Power Representative Name (Print): ______________________________________ Signed (Rocky Mountain Power Representative): ________________________ Date:____________ Applicant may submit a new application for Level 3 review. Section 5. To be completed by Rocky Mountain Power Meterman Customer Account No. __________________________________ Site ID No.: _______________________ Served from Facility Point No.: ________________________________ New Net Meter No.: ____________________________ Date net meter installed: ______________________ Manual disconnect location and permanent signage in place unless system is less than 10 kW: Yes No Signature/Title: _________________________________________ Date: ___________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 24 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 46 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward We appreciate your interest in Rocky Mountain Power’s net metering program. Before purchasing any net metering equipment, we recommend you review the requirements for interconnecting a net metering system to Rocky Mountain Power’s electrical distribution system. The requirements are found in the Interconnection Agreement. To complete the process for a net metering interconnection, please follow the steps below: 1. Complete and submit the following to Rocky Mountain Power: Interconnection Agreement including the Application for Net Metering Interconnection The inverter specification sheet For systems larger than 10 kW, a simple one-line diagram showing The location of Rocky Mountain Power’s meter The location of the disconnect switch 2. Rocky Mountain Power will review your agreement and application and send you a written notification of approval either by mail or e-mail 3. Install the net metering system after you receive the written approval of your Interconnection Agreement and Application for Net Metering from Rocky Mountain Power 4. Obtain an inspection of your net metering system by the local city or county electrical inspector 5. Submit the electrical inspector’s approval to Rocky Mountain Power 6. Turn on your net metering system after Rocky Mountain Power provides you written notification the interconnection work has been completed and the net meter installed Return completed documents to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, Utah 84125-0308 Or Email to: [email protected] Thank you for your interest in the net metering program. If you have questions, please call us toll free at 1-888-221-7070 and ask for a net metering specialist. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 1 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 47 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Service ID#:___________ Request #: ___________ INTERCONNECTION AND NET METERING SERVICE AGREEMENT FOR NET METERING FACILITY LEVEL 3 INTERCONNECTION UP TO 2 MW NAMEPLATE CAPACITY This Interconnection and Net Metering Service Agreement (“Agreement”) is made and entered into this ____ day of _____________, 20___, by and between ____________________________, an electric customer (“Customer”), and PacifiCorp, dba Rocky Mountain Power (“Rocky Mountain Power”), a Corporation organized and existing under the laws of the State of Oregon. Customer and Rocky Mountain Power each may be referred to as a “Party”, or collectively as the “Parties”. Recitals: Whereas, Customer has installed or intends to install a Net Metering Facility qualifying for “Net Metering,” Utah Rate Schedule No. 135A (“Schedule 135A”), as given in Rocky Mountain Power’s currently effective tariff as filed with the Public Service Commission of Utah (“Commission”), on or adjacent to Customer’s premises located at ____________________________, Utah, for the purpose of generating electric energy; Whereas, the Net Metering rate schedule may be amended from time to time, and the Public Service Commission may alter the charge, credit, and ratemaking structure applicable to Net Metering customers pursuant to Utah Code § 54-15-105.1; Whereas, Customer represents to Rocky Mountain Power that Customer either owns or leases its Net Metering Facility qualifying for Schedule 135A, or meets the exemption requirements set forth in Utah Code § 54-2-1.16(d) because it is a county, municipality, city, town, other political subdivision, local district, special service district, state institution of higher education, school district, charter school, or any entity within the state system of public education; or an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3) operated for religious, charitable, or educational purposes that is exempt from federal income tax and able to demonstrate its tax-exempt status; Whereas, Customer desires to interconnect the Net Metering Facility with Rocky Mountain Power’s distribution system consistent with the Application completed by Customer on _____________ ____, 20___, as described in as described in Appendix C (“Application”) of this Agreement; and Whereas, Customer, using its Net Metering Facility, intends to offset part or all of its electrical requirements supplied by Rocky Mountain Power. Now, therefore, in consideration of and subject to the mutual covenants contained herein, the Parties agree as follows: Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 2 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 48 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 1. Scope and Limitations of Agreement 1.1 Scope The Agreement shall be used for all Level 3 Applications according to the procedures set forth in Utah Administrative Rule R746-312, as may be amended from time to time (“Rule”). The Rule can be viewed at www.psc.utah.gov. The Agreement establishes standard terms and conditions approved by the Public Service Commission of Utah (“Commission”) under which the Net Metering Facility with an Electric Nameplate Capacity of 2 MW or smaller as described in Appendix C will interconnect to, and operate in parallel with, Rocky Mountain Power’s system. 1.2 Definitions Terms with initial capitalization, when used in this Agreement, shall have the meanings indicated or as specified in the Rule Section R746-312-2 and, to the extent this Agreement conflicts with the Rule, the Rule shall take precedence. 1.3 Other Agreements Nothing in this Agreement is intended to affect any other agreement between Rocky Mountain Power and Customer or any other Interconnection Customer. However, in the event that the provisions of the Agreement are in conflict with the provisions of any Rocky Mountain Power Tariff, as may be amended from time to time the Rocky Mountain Power Tariff, as may be amended from time to time, shall control. 1.4 Responsibilities of the Parties 1.4.1 The Parties shall perform all obligations of the Agreement in accordance with all applicable laws and regulations. 1.4.2 Customer will construct, own, operate, test, and maintain its Net Metering Facility in accordance with the Agreement, IEEE Standards (available at the following link: http://standards.ieee.org/index.html), National Electric Code Standards (available for purchase at http://standards.ieee.org/faqs/NESCFAQ.html#q8), Utah state building codes, the Rule (available at the following link: http://www.dopl.utah.gov/programs/ubc/), and other applicable standards required by the Commission, as may be amended from time to time. 1.4.3 Each Party shall be responsible for the safe installation, maintenance, repair and condition of their respective lines and equipment on their respective sides of the Point of Common Coupling. Each Party shall provide Interconnection Facilities that adequately protect the other Party’s facilities, personnel and other persons from damage and injury. The allocation of responsibility for the design, installation, operation, maintenance and ownership of Interconnection Facilities is prescribed in the Rule, including but not necessarily limited to R746-312-4. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 3 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 49 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.4.4 Customer is responsible for protecting the generating equipment, inverters, protective devices, and other system components from damage from the normal and abnormal conditions and operations that occur on Rocky Mountain Power’s system in delivering and restoring power; and is responsible for ensuring that the Net Metering Facility equipment is inspected, maintained, and tested in accordance with the manufacturer’s instructions to ensure that it is operating correctly and safely. 1.4.5 Customer shall obtain Rocky Mountain Power’s approval of the Application prior to commencing parallel operation of its interconnected Net Metering Facility. 1.4.6 Customer is responsible for all costs associated with its Net Metering Facility. 1.5 Parallel Operation and Maintenance Obligations Once the Net Metering Facility has been authorized to commence parallel operation by an approved Application, and execution of this, Customer will abide by all written provisions for operations and maintenance as required by the Rule and Rocky Mountain Power’s tariffs, including but not necessarily limited to R746-312-4 and Schedule 135A or its successor tariff(s). 1.6 Results of System Impact Study Rocky Mountain Power completed a System Impact Study on_____________ ____, 20___. The System Impact Study shows the following minor modifications or substantial modifications (Rocky Mountain Power to circle appropriate option) are necessary to Customer’s Net Metering Facility prior to interconnecting with Rocky Mountain Power’s system: Description of necessary minor modifications_____________________________________________________________ __________________________________________________________. Rocky Mountain Power estimates, in good faith, that these minor modifications/ substantial modifications (Rocky Mountain Power to circle appropriate option) will cost $__________. This is a non-binding estimate that will provide break down of costs:___________________________________________________________________ ___________________________________________________________ Customer shall pay the actual installed cost of the minor modifications or substantial modifications needed to interconnect the Net Metering Facility to Rocky Mountain Power’s system. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 4 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 50 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.7 Results of Interconnection Facilities Study << to be filled in upon completion of Interconnection Facilities Study, if one is conducted. Otherwise, the text should read “This Section intentionally left blank.”>> Rocky Mountain Power completed a Facilities Study on _____________ ____, 20___. The Facilities Study shows the following equipment, engineering, procurement and construction work (including overheads) are necessary to implement the conclusion of the System Impact Study for Customer’s Net Metering Facility to safely interconnect to Rocky Mountain Power’s system and the time required to build and install those facilities: Rocky Mountain Power estimates, in good faith, that these modifications will cost $______. This is a non-binding estimate for provide break down of costs____________________________________________________________________ ___________________________________________________________. Customer shall pay the actual installed cost of the facilities needed to interconnect as identified in the Facilities Study. Rocky Mountain Power estimates these facilities can be installed by_____________ ____, 20___. 1.8 Metering Rocky Mountain Power shall install, own and maintain, at its sole expense, a kilowatthour meter(s) and associated equipment to measure the flow of energy in each direction, unless otherwise authorized by the Commission. Customer shall provide, at its sole expense, adequate facilities, including, but not limited to, a current transformer enclosure (if required), meter socket(s) and junction box, for the installation of the meter and associated equipment. Customer hereby consents to the installation and operation by Rocky Mountain Power and at Rocky Mountain Power’s expense, of one or more additional meters to monitor the flow of electricity in each direction. Such meters shall be located on the premises of Customer. 1.9 Power Quality Customer will design its Net Metering Facility to maintain a composite power delivery at continuous rated power output at the Point of Common Coupling that meets the requirements set forth in IEEE 1547, as required by the Rule, R746-312-4. 1.10 Net Metering Facility Inspection 1.10.1 Building Code Inspection Prior to operation in parallel with Rocky Mountain Power’s system, the Net Metering Facility must be inspected by a local building code official to ensure compliance with applicable local codes. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 5 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 51 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.10.2 Inspection by Rocky Mountain Power Rocky Mountain Power may inspect the Net Metering Facility and its component equipment, and the documents necessary to ensure compliance with the Rule. Customer shall notify Rocky Mountain Power prior to placing the Net Metering Facility in service, and Rocky Mountain Power shall have the right to have personnel present on the in-service date. If the Net Metering Facility is subsequently modified in order to increase its gross power rating, Customer must notify Rocky Mountain Power by submitting a new application specifying the modifications in accordance with the level of review required for that application. 1.11 Anticipated Start Date Customer must include an anticipated start date for operation of its Net Metering Facility in the Application. 1.12 Net Metering Facility Testing and Maintenance Customer shall conduct maintenance and testing as set forth in the Rule, including but not necessarily limited to R746-312-14. 1.12.1 Customer shall conduct any manufacturer-recommended testing or maintenance at its expense. 1.12.2 Customer shall conduct any post-installation testing, at its expense, necessary to ensure compliance with IEEE standards as set forth in the Rule or to ensure safety. This includes replacing a major equipment component that is different from the originally installed model. 1.12.3 When Customer performs maintenance or testing in accordance with the Rule, it must retain written records documenting the maintenance and results of the testing for three (3) years. 1.13 1.12.4 Rocky Mountain Power shall have the right to inspect Customer’s Net Metering Facility after interconnection approval is granted, at reasonable hours and with reasonable prior notice to Customer. If Rocky Mountain Power discovers that the Net Metering Facility is not in compliance with the Rule, Rocky Mountain Power may require Customer to disconnect the Net Metering Facility until compliance is achieved. Removal of Facility Customer shall immediately notify Rocky Mountain Power if Customer removes or ceases to operate the Net Metering Facility. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 6 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 52 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 2. 2.1 Review, Inspection, Testing, Disconnect Switch and Signage, and Right of Access Review After determining Customer’s interconnection request is complete, in accordance with the Rule, R746-312-10, Rocky Mountain Power will conduct meetings and studies and provide estimates set forth in the Rule, R746-312-10. Upon completion of the required studies and receipt of agreement of the Customer to pay for required interconnection facilities and upgrades, Rocky Mountain Power will approve the Interconnection request. 2.2 Equipment Testing and Inspection Customer must notify Rocky Mountain Power of the anticipated testing and inspection date of the Net Metering Facility at least ten (10) business days prior to testing, either through submittal of the Agreement, a notice of completion, or in a separate notice. Within ten (10) business days after receipt of such required documentation, Rocky Mountain Power will conduct any required inspection or witness test of the Net Metering Facility, set the new meter if required, approve the Interconnection, and provide written notification to the Customer of the final interconnection authorization/approval and that the generating facility is authorized/approved for parallel operation. If Rocky Mountain Power and Customer, by mutual agreement, select a date for the required inspection and/or witness testing which would prevent Rocky Mountain Power from providing final written notice within ten (10) days of receipt of required documentation as specified above, and if the Net Metering Facility satisfactorily passes the required inspection and/or witness tests, Rocky Mountain Power shall notify Customer within three (3) business days after the tests and/or inspections that either the interconnection is approved and the Net Metering Facility may begin operation or the interconnection facilities study identified necessary construction that has not been completed, the date upon which the construction will be completed and the date when the Net Metering Facility may begin operation or state any other reason why the commissioning tests are not satisfactory. If the witness tests are not satisfactory, Customer must resolve any deficiencies within sixty (60) business days or other time period as mutually agreed by the Parties. 2.3 Disconnect Switch and Signage Customer shall comply with the Rule regarding disconnect switches, R746-312-4. The disconnect switch may be located more than 10 feet from the public utility meter if permanent instructions in letters of appropriate size are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve in writing the location of the disconnect switch prior to the installation of the Net Metering Facility. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 7 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 53 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 2.4 Right of Access As provided in the Rule, R746-312-4, Rocky Mountain Power shall have access to any required disconnect switch at the Net Metering Facility at all times. Rocky Mountain Power will provide reasonable notice to Customer when possible prior to using its right of access. Additionally, as provided in Rocky Mountain Power Utah Rule 6, or its successor tariff, Rocky Mountain Power shall have access to the metering equipment. Article 3. 3.1 Effective Date, Term, Termination and Disconnection Effective Date The Agreement shall become effective upon execution by the Parties. 3.2 Term of Agreement The Agreement will become effective on the Effective Date and will remain in effect unless terminated in accordance with provisions of this Agreement, or Order by the Commission. 3.3 Termination No termination will become effective until the Parties have complied with all applicable laws and clauses of this Agreement applicable to such termination. 3.3.1 Customer may terminate this Agreement at any time by giving Rocky Mountain Power twenty (20) business days written notice. 3.3.2 Either Party may terminate this Agreement after default pursuant to Article 5.4 of this Agreement. 3.3.3 The Commission may Order termination of this Agreement. 3.3.4 Upon termination of this Agreement, Customer shall disconnect the Net Metering Facility from Rocky Mountain Power’s system. The termination of this Agreement will not relieve either Party of its liabilities and obligations, owed or continuing at the time of termination. If Customer removes the Net Metering equipment at the Net Metering Facility or ceases to operate its Net Metering Facility at the premise listed in the Application, this Agreement will be immediately terminated. 3.3.5 3.3.6 The provisions of this Article shall survive termination or expiration of this Agreement. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 8 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 54 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 3.4 Temporary Disconnection 3.4.1 Rocky Mountain Power may temporarily disconnect the Net Metering Facility from Rocky Mountain Power’s system for so long as reasonably necessary without prior notice to Customer in the event one or more of the following conditions or events occurs: 3.4.1.1 Emergencies or to address maintenance requirements for Rocky Mountain Power’s system. 3.4.1.2 Hazardous conditions existing on Rocky Mountain Power’s system which may affect the safety of the general public or Rocky Mountain Power employees due to the operation of the Net Metering Facility or protective equipment as determined by Rocky Mountain Power. 3.4.1.3 Adverse electrical effects on the electrical equipment of Rocky Mountain Power’s other electric customers caused by the Net Metering Facility as determined by Rocky Mountain Power. 3.4.2 In the event that no disconnect switch is installed, Rocky Mountain Power may physically disconnect all service to the Customer or all service to the premises where the Net Metering Facility is located, or both. 3.4.3 To the extent practicable, Rocky Mountain Power will give prior notice of any temporary disconnection of the Net Metering Facility. If Rocky Mountain Power is unable to give prior notice, Rocky Mountain Power will provide notice including an explanation of the condition necessitating the disconnection at the time of disconnection. 3.4.4 Under emergency conditions, Rocky Mountain Power shall notify Customer promptly when Rocky Mountain Power becomes aware of an emergency condition that may reasonably be expected to affect the Net Metering operation. Customer shall notify Rocky Mountain Power promptly when it becomes aware of an emergency condition that may reasonably be expected to affect Rocky Mountain Power’s system. To the extent the information is known, the notification shall describe the emergency condition, the extent of any damage or deficiency, the expected effect on the operation of both Parties’ facilities and operations, the anticipated duration, and the necessary corrective action. 3.4.5 Customer shall make reasonable efforts to provide notice of interruption of Net Metering Facility operation for safety and/or reliability reasons prior to the interruption unless an emergency occurs. Emergency interruptions or temporary terminations are subject to Section 3.4.4 above. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 9 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 55 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 3.4.6 Rocky Mountain Power shall use reasonable efforts to provide Customer with prior notice of forced outages to effect immediate repairs to Rocky Mountain Power’s system. If prior notice is not given, Rocky Mountain Power, shall, upon request, provide Customer written documentation after the fact explaining the circumstances of the disconnection. 3.4.7 Customer must provide Rocky Mountain Power notice and obtain Rocky Mountain Power’s written approval before Customer may modify its Net Metering Facility in order to increase the electric output of the Net Metering Facility. If Customer makes any material change without prior written authorization of Rocky Mountain Power, Rocky Mountain Power will have the right to temporarily disconnect the Net Metering Facility until Rocky Mountain Power has had an opportunity to review the change(s) made to determine whether they are acceptable. If any system modifications or other equipment installations are deemed necessary by Rocky Mountain Power to accommodate the modified Net Metering Facility, Customer shall submit the appropriate net metering application at that time. 3.4.8 The Parties shall cooperate with each other to restore the Net Metering Facility, Interconnection Facilities, and Rocky Mountain Power’s system to their normal operating state as soon as reasonably practicable following any disconnection pursuant to this section. Article 4. 4.1 Cost Responsibility Application Fee Customer shall bear the cost of any Application fee provided for in the Rule, R746-31213(2), or as otherwise approved by the Commission. Customer shall remit payment with the Application as calculated in Appendix C, the Application, Section 2.C. 4.2 Net Metering Facility and Interconnection Equipment Customer shall be responsible for all costs, including overheads, associated with procuring, installing, owning, operating, maintaining, repairing, and replacing its Net Metering Facility, any associated equipment package, and any associated interconnection equipment or interconnection facilities required to be installed on Customer’s side of the Point of Common Coupling as detailed in the results of the System Impact Study or Facilities Study, or both. 4.3 Minor Modifications This section shall apply if the System Impact Study performed pursuant to Section 1.6 above shows that minor modifications to the electric distribution system are required to enable the interconnection to be made consistent with safety, reliability and power quality standards applicable to Level 3 interconnection reviews. The Customer shall pay for the Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 10 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 56 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward cost to procure, install, and construct, operate, maintain, repair and replace any such minor modifications. A description of the minor modifications may be found in Appendix A. The cost of the minor modifications as described on Appendix A shall be $_______. Customer shall remit payment for minor modifications prior to Rocky Mountain Power commencing the work required for the minor modifications. 4.4 4.5 Substantial Modifications 4.4.1 This section shall apply if the System Impact Study performed pursuant to Section 1.6 above or the Facilities Study performed pursuant to Section 1.7 above, or both, shows that substantial modifications to the electric distribution system are required to enable the interconnection to be made consistent with safety, reliability and power quality standards applicable to Level 3 interconnection reviews. The Customer shall pay for the cost to procure, install, and construct, operate, maintain, repair and replace any such substantial modifications. A description of the substantial modifications may be found in Appendix B. The cost of the substantial modifications as described on Appendix B shall be $_______. 4.4.2 Before beginning substantial modifications to accommodate the interconnection of the Net Metering Facility to Rocky Mountain Power’s system, Rocky Mountain Power may require that Customer pay a deposit of not more than 50% of the estimated cost of procuring, installing and constructing equipment and facilities to be procured, installed or constructed by Rocky Mountain Power. Payment Rocky Mountain Power may require progress payments from Customer or Rocky Mountain Power may wait until construction and installation of all equipment and facilities are complete and the total actual cost of such equipment and facilities has been established and then provide Customer with a statement indicating whether actual cost was more or less than the deposit paid by Customer-Generator. If actual costs exceed the deposit, Rocky Mountain Power will invoice Customer-Generator for the balance and Customer-Generator shall pay any such invoice within 30 days of receipt. If actual costs are less than the deposit, Rocky Mountain Power will refund the difference to CustomerGenerator. Article 5. 5.1 Billing Monthly Billing The electric service charge shall be computed in accordance with the monthly billing in the currently applicable standard service tariff. Customer will be compensated for net excess energy in accordance with Schedule 135A or its successor tariff(s). Customer will be transitioned to any successor tariff immediately upon approval of that tariff by the Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 11 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 57 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Public Service Commission and will be subject to any charge, credit, or ratemaking structure implemented therein. 5.2 Special Conditions Customer must comply with the special conditions found in Schedule 135A or its successor tariff(s). 5.3 Aggregating Meters Aggregating Meters is allowed if certain conditions are met under the Rule, R746-312-5. Customer designates the following meters for aggregation: _______________________. In the event that the Net Metering Facility supplies more electricity to Rocky Mountain Power than the Customer uses from Rocky Mountain Power, Rocky Mountain Power will apply any credits to the next monthly bill in accordance with Utah Code § 54-15-104 and the Rule, R746-312-15. Customer shall designate the order in which to apply any credits in accordance with the Rule. <<If customer does not want to aggregate, insert “N\A” in the gray box.>> Article 6. 6.1 Assignment, Liability, Indemnity, Force Majeure, Consequential Damages and Default Assignment This Agreement may be assigned by either Party with the consent of the other Party. A Party’s consent to an assignment may not be unreasonably withheld. The assigning Party must give the non-assigning Party written notice of the assignment at least fifteen days (15) before the effective date of the assignment. The non-assigning Party must submit its objection to the assignment, if any, to the assigning Party in writing at least 5 business days before the effective date of the assignment. If a written objection is not received within that time period, the non-assigning party is deemed to consent to the assignment. 6.1.1 Exceptions to the Consent Requirement 6.1.1.1 Either Party may assign the Agreement without the consent of the other Party to any affiliate (including a merger or acquisition of the Party with another entity), of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.1.2 Customer-Generator is entitled to assign the Agreement, without the consent of Rocky Mountain Power, for collateral security purposes to aid in obtaining financing for the Net Metering Facility. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 12 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 58 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 6.1.1.3 For Net Metering systems that are integrated into a building facility, the sale of the building or property will result in the automatic assignment of this Agreement to the new owner who will be responsible for complying with the terms and conditions of this Agreement. 6.1.2 6.2 Any attempted assignment that violates this Article is void and ineffective. Assignment does not change or eliminate a Party’s obligations under this Agreement. An assignee is responsible for meeting the same obligations as the assigning Party. Limitation of Liability and Consequential Damages Each Party’s liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in its performance of this Agreement, is limited to the amount of direct damage actually incurred. Neither Party is liable to the other Party for any indirect, special, consequential, or punitive damages. 6.3 Indemnification Customer shall hold harmless and indemnify Rocky Mountain Power for all loss to third parties resulting from the operation of the Net Metering Facility, except when the loss occurs due to the negligent actions of Rocky Mountain Power. Rocky Mountain Power shall hold harmless and indemnify Customer for all loss to third parties resulting from the operation of Rocky Mountain Power’s system, except where the loss occurs due to the negligent actions of Customer. 6.4 Force Majeure 6.4.1 As used in this Agreement, a Force Majeure Event shall mean “any act of God, labor disturbance, act of the public enemy, war, acts of terrorism, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment through no direct, indirect, or contributory act of a Party, any order, regulation, or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party’s control. A Force Majeure Event does not include an act of negligence or wrongdoing.” 6.4.2 If a Force Majeure Event prevents a Party from fulfilling any obligations under this Agreement, the Party affected by the Force Majeure Event (“Affected Party”) shall promptly notify the other Party of the existence of the Force Majeure Event. The notification must specify in reasonable detail the circumstances of the Force Majeure Event, the expected duration, and the steps that the Affected Party is taking to mitigate the effects of the event on its performance, and if the initial notification was verbal, it should be promptly followed up with a written notification. The Affected Party shall keep the other Party informed on a Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 13 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 59 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward continuing basis of developments relating to the Force Majeure Event until the event ends. The Affected Party will be entitled to suspend or modify its performance of obligations under this Agreement (other than the obligation to make payments) only to the extent that the effect of the Force Majeure Event cannot be reasonably mitigated. The Affected Party will use reasonable efforts to resume its performance as soon as possible. The Parties shall immediately report to the Commission should a Force Majeure Event prevent performance of an action required by Rule that the Rule does not permit the Parties to mutually waive. 6.5 Default 6.5.1 A Party is in default if the Party fails to perform an obligation required under this Agreement (other than the payment of money). A Party is not considered in default of this agreement if the failure to perform an obligation is caused by an act or omission of the other Party or is the result of a Force Majeure as defined in this Agreement. 6.5.2 Upon a default, the non-defaulting Party must give written notice of the default to the defaulting party. The defaulting party has sixty (60) calendar days from the receipt of the written default notice to cure the default. If the default is not capable of cure within the 60-day period, the defaulting Party must begin to cure the default within twenty (20) calendar days after receipt of the written default notice, and must continuously and diligently complete the cure within six (6) months of the receipt of the notice. 6.5.3 If a default is not cured as provided for in 6.5.2, then the non-defaulting Party is entitled to terminate the Agreement by written notice at any time until cure occurs. If the non-defaulting Party chooses to terminate this Agreement, the termination provisions in Article 3.3 apply. Alternately, the non-defaulting Party is entitled to seek dispute resolution with the Commission in lieu of termination. Article 7. Insurance Additional liability insurance is not required as a part of the Agreement if the Net Metering Facility is in compliance with the provisions of the Application approval, the Agreement and the standards contained in Utah Code § 54-15-106. Article 8. Dispute Resolution 8.1 Nothing in this Article shall restrict the rights of any Party to file a Complaint with the Commission under relevant provisions of the Rule and applicable state law. 8.2 Pursuit of dispute resolution may not affect Customer with regard to consideration of an Interconnection Request or Customer’s queue position. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 14 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 60 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 9. 9.1 Miscellaneous Governing Law, Regulatory Authority and Rules The validity, interpretation, and enforcement of this Agreement is governed by the laws of the State of Utah. If any provision of this Agreement conflicts with any applicable provision, as may be amended from time to time, of the Utah Code (“Code”), Utah Administrative Rules (“Rules”), or Rocky Mountain Power’s Tariffs (“Tariff”), then the applicable provision of the Code, Rules, or Tariff controls. Rocky Mountain Power must provide copies of the applicable provisions of the Code, Rules, and Tariff upon the Customer’s request. 9.2 Amendment Additions, deletions or changes to the standard terms and conditions of this Agreement will not be permitted unless they are mutually agreed to by the Parties and permitted by the Rule or permitted by the Commission for good cause shown. The Parties may amend the Agreement by a written instrument duly executed by both Parties in accordance with the provisions of the Rule and applicable Commission Orders and provisions of the laws of the State of Utah. 9.3 No Third Party Beneficiaries The Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, or where permitted, their successors in interest or their assigns. 9.4 Waiver 9.4.1 The failure of a Party to the Agreement to insist, on any occasion, upon strict performance of any provision of the Agreement, will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party. 9.4.2 The Parties may agree to mutually waive a Section of this Agreement without the Commission’s approval in accordance with the Rule. 9.4.3 Any waiver at any time by either Party of its rights with respect to the Agreement shall not be deemed a continuing waiver or a wavier with respect to any other failure to comply with any other obligation, right, or duty of the Agreement. Termination or default of this Agreement for any reason by Customer shall not constitute a waiver of the Customer’s legal rights to obtain interconnection from Rocky Mountain Power. Any request for waiver of the Agreement or any provisions thereof shall be provided in writing. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 15 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 61 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 9.5 Entire Agreement The Agreement, including any supplementary attachments that may be necessary, constitutes the entire Agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of the Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party’s compliance with its obligations under the Agreement. 9.6 Multiple Counterparts This Agreement may be executed in one or more counterparts, whether electronically or otherwise, each of which is deemed an original but all constitute one and the same instrument. 9.7 No Partnership The Agreement will not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party. 9.8 Severability If any provision or portion of the Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (1) such portion or provision shall be deemed separate and independent, (2) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (3) the remainder of the Agreement shall remain in full force and effect. 9.9 Subcontractors Nothing in the Agreement shall prevent a Party from using the services of any subcontractor, or designating a third party agent as one responsible for a specific obligation or act required in the Agreement (collectively subcontractors), as it deems appropriate to perform its obligations under the Agreement; provided, however, that each Party will require its subcontractors to comply with all applicable terms and conditions of the Agreement in providing such services and each Party will remain primarily liable to the other Party for the performance of the subcontractor. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 16 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 62 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 9.10 9.9.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under the Agreement. The hiring Party shall be fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made. Any applicable obligation imposed by the Agreement upon the hiring Party shall be equally binding upon, and will be construed as having application to, any subcontractor of such Party. 9.9.2 The obligations under this Article will not be limited in any way by any limitation of a subcontractor’s insurance. Reservation of Rights Rocky Mountain Power shall have the right to make a unilateral filing with the Commission to modify this Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule, regulation or any other applicable provision of the Federal Power Act and the Commission’s rules and regulations thereunder, and Customer shall have the right to make a unilateral filing with Commission to modify this Agreement under any applicable provision of the Federal Power Act and the Commission’s rules and regulations; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the Commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties, except to the extent that the Parties otherwise agree as provided herein. Article 10. 10.1 Notices and Records General Unless otherwise provided in the Agreement, any written notice, demand, or request required or authorized in connection with the Agreement shall be deemed properly given if delivered in person, delivered by recognized national courier service, sent by first class mail, postage prepaid, or by electronic mail if an electronic mail address is provided below to the person specified below: If to Customer: Customer: ______________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: ________________________________ State: _________________ Zip: ________ Phone: (___) _______________________ Fax: (____) ___________________________ Email: __________________________________________________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 17 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 63 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If to Rocky Mountain Power: By Mail: Rocky Mountain Power Attention: Net Metering Group P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 Or By email: [email protected] 10.2 Records Rocky Mountain Power will maintain a record of all Interconnection Agreements and related Attachments, if any, for as long as the interconnection is in place. Rocky Mountain Power will provide a copy of these records to Customer within fifteen (15) Business Days upon written request. 10.3 Billing and Payment Billings and payments shall be sent to the addresses below (complete if different from Section 9.1 above): If to Customer: Customer: ______________________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: _______________________________ State: _______________ Zip: ___________ 10.4 Designated Operating Representative The Parties will designate an operating representative each to conduct the communications that may be necessary or convenient for the administration of the operations provisions of the Agreement. This person will also serve as the point of contact with respect to operations and maintenance of the Party’s facilities (complete if different from Section 9.1 above): Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 18 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 64 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Customer’s Operating Representative: Name: __________________________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: ______________________________ State: ________________ Zip: ___________ Phone: (____) _______________________ Fax: (____) __________________________ Email: __________________________________________________________________ 10.5 Changes to the Notice Information Either Party may change this notice information by giving five (5) business days written notice prior to the effective date of the change. Article 11. Signatures IN WITNESSETH WHEREOF, the Parties have caused the Agreement to be executed by their respective duly authorized representatives. For the Customer: For Rocky Mountain Power: By: _____________________________ By: _____________________________ Name: ___________________________ Name: ___________________________ Title: ____________________________ Title: ____________________________ Date: ____________________________ Date: ____________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 19 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 65 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Appendix A Minor Modifications Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 20 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 66 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Appendix B Substantial Modifications Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 21 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 67 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward APPENDIX C ROCKY MOUNTAIN POWER UTAH NET METERING APPLICATION LEVEL 3 REVIEW CAPACITY OF 2 MW OR LESS Section 1: For Rocky Mountain Power Use Only Customer Name: _________________________________________________________________________ Service Address: _________________________________________________________________________ City, State, Zip: ___________________________________________________________________________ Customer Account No. and Request No.: _______________________________________________________ Interconnection Agreement Acknowledgement (Date): ____________________________________________ Application fee: $______________________________ Date Paid ___________________________________ Section 2: To Be Completed By Customer A. Applicant Information Name: ___________________________________________________________________________ Mailing Address: __________________________________________________________________ City: __________________________________________State: _________ Zip Code: ____________ Site Street Address (if different from above): _____________________________________________ City: __________________________________________State: __________ Zip Code: ___________ Daytime Phone: (_____) ________________________ Fax: (_____) __________________________ Email: ____________________________________________________________________________ B. System Information System Type: Solar Wind Hydro Other (Specify): _________________________ Generation Nameplate Capacity: ______________ kW (Combine DC total of wind turbines, solar panels, etc. or AC rating if an inverter is not utilized) Inverter Manufacturer: ___________ Model: ________ Number of Inverters: _____ Rating: _____ kW Manufacturer Nameplate Inverter Total AC Capacity Rating: _________ kW Inverter(s): Single Phase Three Phase Multiple Single Phase Connected on Poly-phase (three phase) system – (Attach Inverter and Panel Technical Specifications Sheets) Type: Induction Type of Service: Inverter Single Phase Synchronous __________________Other Three Phase Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 22 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 68 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If Three Phase Transformer: Indicate Type: Wye Delta Indicate Voltage and Number of Service Wires: 120/208 Volts, 4 wire 120/240 Volts, 4 wire 277/480 Volts, 4 wire Other ___________ ________________________________________________________________________________ Other Information:__________________________________________________________________ _________________________________________________________________________________ Self Contained Location: ____________________________________________________________ Outdoor Manual AC Disconnect Switch Location (show Disconnect Switch and Rocky Mountain Power Meter Location on Site Plan), unless exempt under Utah Administrative Rule 746-312-4(2): __________________________________________________________________________________ System Location (show all protective devices on One Line Diagram):___________________________ Will the net metering facility interconnect to a switchgear? Yes No Customer must post metal or plastic engraved signage indicating on-site generation in accordance with National Electric Code. The signage must be permanent and located adjacent to the meter base and disconnect switch noting “Parallel Generation on Site” and identifying the manual disconnect switch with the words “Manual Disconnect for Parallel Generation.” _____ (Initial Here) One Line Diagram Attached: Installation Test Plan attached: Yes Yes No Site Plan Attached: Yes No No Anticipated Operational Date of Net Metering Facilities: _____________________________________ (Rocky Mountain Power must be notified at least ten (10) business days prior to starting operation.) Net metering facility available fault duty at the point of common coupling: ________________ (A Rocky Mountain Power Engineer may contact you for additional information) Electrical Inspection approval date (attach copy or provide to utility when obtained):__________ C. Application Fees $ 150.00 Base + $ __________ $ __________ $3.00 x _____ kW of net metering facility’s capacity TOTAL APPLICATION FEE D. Additional Information 1. An equipment package will be considered certified for interconnected operation if it has been submitted by a manufacturer to a nationally recognized testing and certification laboratory, and has been tested and listed by the laboratory for continuous interactive operation with an electric distribution system in compliance with the applicable IEEE and UL 1741 standards, as set forth Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 23 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 69 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 2. 3. 4. 5. 6. 7. in the Rule. If the equipment package has been tested and listed as an integrated package, which includes a generator or other electric source, the equipment package will be deemed certified, and Rocky Mountain Power will not require any further design review, testing or additional information. If the equipment package includes only the interface components (switchgears, inverters, or other interface devices), an interconnection applicant must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and consistent with the testing and listing specified for the package. If the generator or electric source being utilized with the equipment package is consistent with the testing and listing performed by the nationally recognized testing and certification laboratory, the equipment package will be deemed certified and Rocky Mountain Power will not require further design review, testing or additional equipment. A net metering facility must be equipped with metering equipment that can measure the flow of electricity in both directions, comply with ANSI C12.1 standards and Utah Administrative Rule R746-312. Rocky Mountain Power will install the required metering equipment at Rocky Mountain Power’s expense. Rocky Mountain Power will not be responsible for the cost of determining the rating of equipment owned by the customer-generator or of equipment owned by other local customers. Customer may operate the Net Metering Facility temporarily for testing and obtaining inspection approval. Customer shall not operate the Net Metering Facility in continuous parallel without an executed Interconnection and Net Metering Service Agreement, and approval from Rocky Mountain Power. Customer will pay to Rocky Mountain Power at the time of application the applicable Application fee of $150.00 plus $3.00 per kilowatt of the net metering facility’s capacity; and costs of modifications or additional review as set forth in Utah Administrative Rule R746-312 prior to commencement of work. E. Customer Acknowledgment I certify that the information provided in this Application is true. I will provide Rocky Mountain Power a copy of the signed government electrical inspection approval document when obtained, if not already provided with this Application. I agree to abide by the terms of this Application and I agree to notify Rocky Mountain Power thirty (30) days prior to modification or replacement of the System’s components or design. Any such modification or replacement may require submission of a new Application to Rocky Mountain Power. I agree not to operate the Net Metering Facility in parallel with Rocky Mountain Power, except temporarily for testing and obtaining inspection approval, until this Application is approved by Rocky Mountain Power, until this agreement is signed by both parties, and until I have provided Rocky Mountain Power with at least five (5) days notice of anticipated start date. Customer or Applicant Signature & Date: ____________________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 24 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 70 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Please send completed application to: Rocky Mountain Power Attention: Customer Generation P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 or Please scan the completed application and email [email protected] Section 3. To be completed by System Installer Installation Contractor Information/Hardware and Installation Compliance Installation Contractor (Company Name): _______________________________________________________ Contractor's License No.: ____________________________ Proposed Installation Date: _________________ Mailing Address: __________________________________________________________________________ City: ____________________________________________ State: __________ Zip Code: _______________ Daytime Phone: _________________ Fax: _________________Email: ______________________________ For inverter-controlled system, meets IEEE Standards and UL 1741 Inverters, Converters, and Controllers for use in Independent Power Systems as set forth in the Rule: Yes No For induction or synchronous device, meets IEEE Standard 1547 and IEEE/ANSI Standard C37.90 requirements as set forth in the Rule: Yes No If Photovoltaic System, System must be installed in compliance with IEEE Standards, Recommended Practice for Utility Interface of Photovoltaic Systems. All System types must be installed in compliance with applicable requirements of local electrical codes, Rocky Mountain Power and the National Electrical Code® (NEC) and must use an anti-islanding inverter. The System must include a manual, lockable, load-break (disconnect) switch, unless exempt under Utah Administrative Rule 746-312-4(2), accessible at all times to Rocky Mountain Power personnel and located within 10 feet of Rocky Mountain Power’s meter. The disconnect switch may be located more than 10 feet from Rocky Mountain Power’s meter if permanent instructions are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve the location of the disconnect switch prior to the installation of the net metering facility. If the Net Metering Facility is designed to provide uninterruptible power to critical loads, either through energy storage, back-up generator, or the generation source, the Net Metering Facility will include a parallel blocking scheme for this backup source. This function may be integral to the inverter manufacturer’s packaged system. Does the Net Metering Facility include a parallel blocking scheme: Yes No Signed (Contractor): ________________________________________ Date: _________________ Name (Print): _______________________________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 25 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 71 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Section 4. To be completed by Rocky Mountain Power: A. If approving the application: Rocky Mountain Power does not, by approval of this Application, assume any responsibility or liability for damage to property or physical injury to persons. Further, this Application does not constitute a dedication of the owner's System to Rocky Mountain Power electrical system equipment or facilities. Customer-Generator entered into an Interconnection and Net Metering Service Agreement with Rocky Mountain Power on the ____ day of _____, 20__. Customer-Generator satisfactorily passed Witness Tests on the ____ day of _________, 20__. (Rocky Mountain Power may waive Witness Tests at its option; if tests are waived initial here ____) This Application is approved by Rocky Mountain Power on this ______ day of ______________, 20__ Rocky Mountain Power Representative Name (Print): _______________________________________ Signed (Rocky Mountain Power Representative): ________________________ Date: ____________ B. If denying the application: This application is denied by Rocky Mountain Power on this ______ day of ____________, 20__ for the following reason(s): _______________________________________________________________ Rocky Mountain Power Representative Name (Print): _______________________________________ Signed (Rocky Mountain Power Representative): ___________________________ Date: __________ Section 5. To be completed by Rocky Mountain Power Meterman Customer Account No. ______________________________ Site ID No. : ___________________________ Served from Facility Point No.: ________________________________ New Net Meter No.: ___________________________ Date net meter installed: _______________________ Manual disconnect device in proper location and permanent signage in place: Yes No Signature/Title: ________________________________________ Date: ____________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 26 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 72 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward We appreciate your interest in Rocky Mountain Power’s net metering program. Before purchasing any net metering equipment, we recommend you review the requirements for interconnecting a net metering system to Rocky Mountain Power’s electrical distribution system. The requirements are found in the Interconnection Agreement. To complete the process for a net metering interconnection, please follow the steps below: 1. Complete and submit the following to Rocky Mountain Power: Interconnection Agreement including the Application for Net Metering Interconnection The inverter specification sheet For systems larger than 10 kW, a simple one-line diagram showing The location of Rocky Mountain Power’s meter The location of the disconnect switch 2. Rocky Mountain Power will review your agreement and application and send you a written notification of approval either by mail or e-mail 3. Install the net metering system after you receive the written approval of your Interconnection Agreement and Application for Net Metering from Rocky Mountain Power 4. Obtain an inspection of your net metering system by the local city or county electrical inspector 5. Submit the electrical inspector’s approval to Rocky Mountain Power 6. Turn on your net metering system after Rocky Mountain Power provides you written notification the interconnection work has been completed and the net meter installed Return completed documents to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, Utah 84125-0308 Or Email to: [email protected] Thank you for your interest in the net metering program. If you have questions, please call us toll free at 1-888-221-7070 and ask for a net metering specialist. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 1 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 73 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Service ID#:___________ Request #: ___________ INTERCONNECTION AND NET METERING SERVICE AGREEMENT FOR NET METERING FACILITY LEVEL 1 INTERCONNECTION 25 KW NAMEPLATE CAPACITY OR SMALLER This Interconnection and Net Metering Service Agreement (“Agreement”) is made and entered into this ___ day of _____________, 20___ by and between ____________________________, an electric customer (“Customer”), and PacifiCorp, dba Rocky Mountain Power (“Rocky Mountain Power”), a Corporation organized and existing under the laws of the State of Oregon. Customer and Rocky Mountain Power each may be referred to as a “Party”, or collectively as the “Parties”. Recitals: Whereas, Customer has installed or intends to install a Net Metering Facility qualifying for “Net Metering,” Utah Rate Schedule No. 135A (“Schedule 135A”), as given in Rocky Mountain Power’s currently effective tariff as filed with the Public Service Commission of Utah (“Commission”), on or adjacent to Customer’s premises located at ____________________________, Utah, for the purpose of generating electric energy; Whereas, the Net Metering rate schedule may be amended from time to time, and the Public Service Commission may alter the charge, credit, and ratemaking structure applicable to Net Metering customers pursuant to Utah Code § 54-15-105.1; Whereas, Customer represents to Rocky Mountain Power that Customer either owns or leases its Net Metering Facility qualifying for Schedule 135A, or meets the exemption requirements set forth in Utah Code § 54-2-1.16(d) because it is a county, municipality, city, town, other political subdivision, local district, special service district, state institution of higher education, school district, charter school, or any entity within the state system of public education; or an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3) operated for religious, charitable, or educational purposes that is exempt from federal income tax and able to demonstrate its tax-exempt status; Whereas, Customer desires to interconnect the Net Metering Facility with Rocky Mountain Power’s distribution system consistent with the Application completed by on _____________ ____, 20___,Customer as described in Appendix A (“Application”) of this Agreement; and Whereas, Customer, using its Net Metering Facility, intends to offset part or all of its electrical requirements supplied by Rocky Mountain Power. Now, therefore, in consideration of and subject to the mutual covenants contained herein, the Parties agree as follows: Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 2 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 74 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 1. Scope and Limitations of Agreement 1.1 Scope The Agreement shall be used for all approved Level 1 Applications according to the procedures set forth in Utah Rule 746-312 (“Rule”), as may be amended from time to time. The Rule can be viewed at www.psc.utah.gov. The Agreement establishes standard terms and conditions approved by the Commission under which a Level 1 Net Metering Facility as described in Appendix A with an electric nameplate capacity of 25 kW or smaller will interconnect to, and operate in parallel with, Rocky Mountain Power’s system. 1.2 Definitions Terms with initial capitalization, when used in this Agreement, shall have the meanings indicated or as specified in the Rule Section R746-312-2 and, to the extent this Agreement conflicts with the Rule, the Rule shall take precedence. 1.3 Other Agreements Nothing in this Agreement is intended to affect any other agreement between Rocky Mountain Power and Customer or any other Interconnection Customer. However, in the event that the provisions of the Agreement are in conflict with the provisions of any Rocky Mountain Power Tariff, the Rocky Mountain Power Tariff shall control. 1.4 Responsibilities of the Parties 1.4.1 The Parties shall perform all obligations of the Agreement in accordance with all applicable laws and regulations. 1.4.2 Customer will construct, operate, test, and maintain its Net Metering Facility in accordance with the Agreement, IEEE standards (available at the following link: http://standards.ieee.org/index.html), National Electric Code Standards (available for purchase at http://standards.ieee.org/faqs/NESCFAQ.html#q8), Utah state building codes (available at the following link: http://www.dopl.utah.gov/programs/ubc/), the Rule, and other applicable standards required by the Commission, as may be amended from time to time. 1.4.3 Each Party shall be responsible for the safe installation, maintenance, repair and condition of their respective lines and equipment on their respective sides of the Point of Common Coupling. Each Party shall provide interconnection facilities that adequately protect the other Party’s facilities, personnel and other persons from damage and injury. The allocation of responsibility for the design, installation, operation and maintenance of interconnection facilities is prescribed in the Rule, including but not necessarily limited to R746-312-4. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 3 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 75 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.4.4 1.5 Customer is responsible for protecting the generating equipment, inverters, protective devices, and other system components from damage from the normal and abnormal conditions and operations that occur on Rocky Mountain Power’s system in delivering and restoring power; and is responsible for ensuring that the Net Metering Facility equipment is inspected, maintained, and tested in accordance with the manufacturer’s instructions to ensure that it is operating correctly and safely. Parallel Operation and Maintenance Obligations Once the Net Metering Facility has been authorized to commence parallel operation by an approved application and execution of this Agreement, Customer will abide by all written provisions for operations and maintenance as required by the Rule and Rocky Mountain Power’s tariffs, including but not necessarily limited to R746-312-4 and Schedule 135A or its successor tariff(s). 1.6 Metering Rocky Mountain Power shall install, own and maintain, at its sole expense, a kilowatthour meter(s) and associated equipment to measure the flow of energy in each direction, unless otherwise authorized by the Commission. Customer hereby consents to the installation of and operation by Rocky Mountain Power, at Rocky Mountain Power’s expense, one or more additional meters to monitor the flow of electricity in each direction. Such meter(s) shall be located on the premises of Customer. 1.7 1.8 Net Metering Facility Requirements, Installation, Operation 1.7.1 Customer’s Net Metering Facility must meet the requirements set forth in, including but not necessarily limited to, the Rule, R746-312-4 and Schedule 135A or its successor tariff(s). This also applies to installation and operation of the Net Metering Facility. 1.7.2 Customer is responsible for all costs associated with its Net Metering Facility. Anticipated Start Date Customer must include an anticipated start date for operation of its Net Metering Facility in the Application. After receiving notice that the Application has been approved, Customer must execute and return this Agreement with a copy of the approved electric inspection to Rocky Mountain Power. Upon satisfactory completion of all reviews and inspections of the Net Metering Facility, Customer must notify Rocky Mountain Power at least ten (10) business days prior to starting operation of the Net Metering Facility, either through submission of an executed Agreement or through separate written notice. Customer shall not commence parallel operation of the Net Metering Facility until Rocky Mountain Power executes this Agreement, installs the net meter and notifies Customer that the Net Metering Facility is interconnected. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 4 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 76 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.9 Net Metering Facility Inspection 1.9.1 Building Code Inspection Prior to operation in parallel with Rocky Mountain Power’s system, the Net Metering Facility must be inspected by a local building code official to ensure compliance with applicable local codes. 1.9.2 Inspection by Rocky Mountain Power Rocky Mountain Power may inspect the Net Metering Facility and its component equipment, and the documents necessary to ensure compliance with the Rule. Customer shall notify Rocky Mountain Power prior to placing the Net Metering Facility in service, and Rocky Mountain Power shall have the right to have personnel present on the in-service date. If the Net Metering Facility is subsequently modified in order to increase its gross power rating, Customer must notify Rocky Mountain Power by submitting a new application specifying the modifications in accordance with the level of review required for that application. 1.10 Power Quality Customer will design its Net Metering Facility to maintain a composite power delivery at continuous rated power output at the Point of Common Coupling that meets the requirements set forth in IEEE 1547, in accordance with the Rule, R746-312-4. 1.11 Net Metering Facility Testing and Maintenance Customer shall conduct maintenance and testing on its Net Metering Facilities as set forth in the Rule, including but not necessarily limited to R746-312-14. 1.11.1 Customer shall conduct any manufacturer-recommended testing or maintenance at its expense. 1.11.2 Customer shall conduct any post-installation testing, at its expense, necessary to ensure compliance with IEEE standards as set forth in the Rule or to ensure safety. This includes replacing a major equipment component that is different from the originally installed model. 1.11.3 When Customer performs maintenance or testing in accordance with the Rule, it must retain written records documenting the maintenance and results of the testing for three (3) years. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 5 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 77 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.11.4 Rocky Mountain Power shall have the right to inspect Customer’s facility after interconnection approval is granted, at reasonable hours and with reasonable prior notice to Customer. If Rocky Mountain Power discovers that the Net Metering Facility is not in compliance with the Rule, Rocky Mountain Power may require Customer to disconnect the Net Metering Facility until compliance is achieved. 1.12 Removal of Facility Customer shall immediately notify Rocky Mountain Power if Customer removes or ceases to operate the Net Metering Facility. Article 2. 2.1 Review, Inspection, Testing, Disconnect Switch and Signage, and Right of Access Review After determining Customer’s interconnection request is complete, in accordance with the Rule, R746-312-8, Rocky Mountain Power will conduct a review of the proposed interconnection using screens set forth in the Rule, R746-312-7. Rocky Mountain Power will conduct such review within fifteen (15) days after notifying Customer that the interconnection request is complete and will notify Customer either that the Net Metering Facility meets all applicable criteria and the interconnection request is approved, or the Net Metering Facility has failed to meet one or more of the applicable criteria, the reason for failure, and the interconnection request is denied under Level 1 review. If the interconnection request is denied, Customer may resubmit the application under the Level 2 or Level 3 review process. 2.2 Equipment Testing and Inspection Customer must notify Rocky Mountain Power of the anticipated testing and inspection date of the Net Metering Facility at least ten (10) business days prior to testing, either through submittal of the Agreement, a notice of completion, or in a separate notice. Within ten (10) business days after receipt of such required documentation, Rocky Mountain Power will inspect the Net Metering Facility, set the new meter if required, approve the interconnection and may arrange a witness test as set forth in the Rule, R746-312-8(4). Rocky Mountain Power and Customer will select a date by mutual agreement for the witness test. Rocky Mountain Power will test and inspect the Net Metering Facility and Interconnection Facilities prior to interconnection in accordance with IEEE Standards as provided for in the Rule, R746-312-4. Customer shall not begin operation of its Net Metering Facility until after inspection and testing is completed. If a witness test is conducted and is not satisfactory, Customer must resolve any deficiencies within thirty (30) business days or other time period as mutually agreed by the Parties. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 6 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 78 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 2.3 Disconnect Switch and Signage Customer shall comply with the Rule regarding disconnect switches, R746-312-4. The disconnect switch may be located more than 10 feet from the public utility meter if permanent instructions in letters of appropriate size are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve in writing the location of the disconnect switch prior to the installation of the Net Metering Facility. 2.4 Right of Access As provided in the Rule, R746-312-4, Rocky Mountain Power shall have access to any required disconnect switch at the Net Metering Facility at all times. Rocky Mountain Power will provide reasonable notice to Customer when possible prior to using the right of access. Additionally, as provided in Rocky Mountain Power Utah Rule 6, or its successor tariff, Rocky Mountain Power shall have access to the metering equipment. Article 3. 3.1 Effective Date, Term, Termination and Disconnection Effective Date The Agreement shall become effective upon execution by the Parties. 3.2 Term of Agreement The Agreement will become effective on the Effective Date and will remain in effect unless terminated in accordance with provisions of this Agreement, or Order by the Commission. 3.3 Termination No termination will become effective until the Parties have complied with all applicable laws and clauses of this Agreement applicable to such termination. 3.3.1 Customer may terminate this Agreement at any time by giving Rocky Mountain Power twenty (20) business days written notice. 3.3.2 Either Party may terminate this Agreement after default pursuant to Article 6.4 of this Agreement. 3.3.3 The Commission may Order termination of this Agreement. 3.3.4 Upon termination of this Agreement, Customer shall disconnect the Net Metering Facility from Rocky Mountain Power’s system. The termination of this Agreement will not relieve either Party of its liabilities and obligations, owed or continuing at the time of termination. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 7 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 79 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 3.4 3.3.5 If Customer removes the Net Metering equipment at the Net Metering Facility or ceases to operate its Net Metering Facility at the premises listed in Recital 1 above, this Agreement will be immediately terminated. 3.3.6 The provisions of this Article shall survive termination or expiration of this Agreement. Temporary Disconnection 3.4.1 Rocky Mountain Power may temporarily disconnect the Net Metering Facility from Rocky Mountain Power’s system for so long as reasonably necessary in the event one or more of the following conditions or events occurs: 3.4.1.1 Emergencies or to address maintenance requirements for Rocky Mountain Power’s system. 3.4.1.2 Hazardous conditions existing on Rocky Mountain Power’s system which may affect the safety of the general public or Rocky Mountain Power employees due to the operation of the Net Metering Facility or protective equipment as determined by Rocky Mountain Power. 3.4.1.3 Adverse electrical effects on the electrical equipment of Rocky Mountain Power’s other electric customers caused by the Net Metering Facility as determined by Rocky Mountain Power. 3.4.2 In the event that no disconnect switch is installed, Rocky Mountain Power may physically disconnect all service to the Customer and/or all service to the premises where the Net Metering Facility is located. 3.4.3 To the extent practicable, Rocky Mountain Power will give prior notice of any temporary disconnection of the Net Metering Facility. If Rocky Mountain Power is unable to give prior notice, Rocky Mountain Power will provide notice including an explanation of the condition necessitating the disconnection at the time of disconnection 3.4.4 Under emergency conditions, Rocky Mountain Power or Customer may immediately suspend interconnection service and temporarily disconnect the Net Metering Facility. Rocky Mountain Power shall notify Customer promptly when Rocky Mountain Power becomes aware of an emergency condition that may reasonably be expected to affect the Net Metering Facility operation. Customer shall notify Rocky Mountain Power promptly when Customer becomes aware of an emergency condition that may reasonably be expected to affect Rocky Mountain Power’s system. To the extent the information is known, the notification shall describe the emergency condition, the extent of any damage or Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 8 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 80 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward deficiency, the expected effect on the operation of both Parties’ facilities and operations, the anticipated duration, and the necessary corrective action. 3.4.5 Customer shall make reasonable efforts to provide notice of interruption of Net Metering Facility operation for safety and/or reliability reasons prior to the interruption unless an emergency occurs. Emergency interruptions or temporary terminations are subject to Section 3.4.4 above. 3.4.6 Rocky Mountain Power shall use reasonable efforts to provide Customer with prior notice of forced outages to effect immediate repairs to Rocky Mountain Power’s system. If prior notice is not given, Rocky Mountain Power, shall, upon request, provide Customer written documentation after the fact explaining the circumstances of the disconnection. 3.4.7 Customer must provide Rocky Mountain Power notice and obtain Rocky Mountain Power’s written approval before Customer may modify its Net Metering Facility in order to increase the electric output of the Net Metering Facility. If Customer makes any material change without prior written authorization of Rocky Mountain Power, Rocky Mountain Power will have the right to temporarily disconnect the Net Metering Facility until Rocky Mountain Power has had an opportunity to review the change(s) made to determine whether they are acceptable. If system modifications or other equipment installations are deemed necessary by Rocky Mountain Power to accommodate the modified Net Metering Facility, Customer shall submit the appropriate net metering application at that time. 3.4.8 The Parties shall cooperate with each other to restore the Net Metering Facility, interconnection facilities, and Rocky Mountain Power’s system to their normal operating state as soon as reasonably practicable following any disconnection pursuant to Section 3.4. Article 4. Cost Responsibility 4.1 Customer shall bear the cost of any Application fee set forth by Rule, or as otherwise approved by the Commission. 4.2 Customer shall bear the cost of any facilities, equipment, modifications and upgrades as required by the Rule. Customer shall also be responsible for all reasonable expenses, including overheads, associated with owning, operating, maintaining, repairing, and replacing its Net Metering Facility. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 9 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 81 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 5. 5.1 Billing Monthly Billing The electric service charge shall be computed in accordance with the monthly billing in the applicable standard currently applicable service tariff applicable to Net Metering customers. Customer will be compensated for net excess energy in accordance with Schedule 135A or its successor tariff(s). Customer will be transitioned to any successor tariff immediately upon approval of that tariff by the Public Service Commission and will be subject to any charge, credit, or ratemaking structure implemented therein. 5.2 Special Conditions Customer must comply with the special conditions found in Schedule 135A or its successor tariff(s). 5.3 Aggregating Meters Aggregating Meters is allowed if certain conditions are met under the Rule, R746-3125. Customer designates the following meters for aggregation: _______________________. In the event that the Net Metering Facility supplies more electricity to Rocky Mountain Power than the Customer uses from Rocky Mountain Power, Rocky Mountain Power will apply any credits to the next monthly bill in accordance with Utah Code § 54-15-104 and the Rule, R746-312-15. Customer shall designate the order in which to apply any credits in accordance with the Rule. <<If customer does not want to aggregate, insert “N\A” in the space above.>> Article 6. 6.1 Assignment, Liability, Indemnity, Consequential Damages and Default Assignment This Agreement may be assigned by either Party with the consent of the other Party. A Party’s consent to an assignment may not be unreasonably withheld. The assigning Party must give the non-assigning Party written notice of the assignment at least fifteen days (15) before the effective date of the assignment. The non-assigning Party must submit its objection to the assignment, if any, to the assigning Party in writing at least 5 business days before the effective date of the assignment. If a written objection is not received within that time period, the non-assigning party is deemed to consent to the assignment. 6.1.1 Exceptions to Consent Requirement 6.1.1.1 Either Party may assign the Agreement without the consent of the other Party to any affiliate (including a merger or acquisition of the Party with another entity) of the assigning Party with an equal or greater credit Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 10 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 82 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.1.2 Customer is entitled to assign the Agreement without the consent of Rocky Mountain Power for collateral security purposes to aid in obtaining financing for the Net Metering Facility. 6.1.1.3 For small generator systems that are integrated into a building facility, the sale of the building or property will result in the automatic assignment of this Agreement to the new owner who will be responsible for complying with the terms and conditions of this Agreement. 6.1.2 6.2 Any attempted assignment that violates this Article is void and ineffective. Assignment does not change or eliminate a Party’s obligations under this Agreement. An assignee is responsible for meeting the same obligations as the assigning Party. Limitation of Liability and Consequential Damages Each Party’s liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in its performance of this Agreement, is limited to the amount of direct damage actually incurred. Neither Party is liable to the other Party for any indirect, special, consequential, or punitive damages. 6.3 Indemnification Customer shall hold harmless and indemnify Rocky Mountain Power for all loss to third parties resulting from the operation of the Net Metering Facility, except when the loss occurs due to the negligent actions of Rocky Mountain Power. Rocky Mountain Power shall hold harmless and indemnify Customer for all loss to third parties resulting from the operation of Rocky Mountain Power’s system, except where the loss occurs due to the negligent actions of Customer. 6.4 Force Majeure 6.4.1 As used in this Agreement, a Force Majeure Event shall mean “any act of God, labor disturbance, act of the public enemy, war, acts of terrorism, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment through no direct, indirect, or contributory act of a Party, any order, regulation, or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party’s control. A Force Majeure Event does not include an act of negligence or wrongdoing.” Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 11 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 83 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 6.4.2 6.5 If a Force Majeure Event prevents a Party from fulfilling any obligations under this Agreement, the Party affected by the Force Majeure Event (“Affected Party”) shall promptly notify the other Party of the existence of the Force Majeure Event. The notification must specify in reasonable detail the circumstances of the Force Majeure Event, its expected duration, and the steps that the Affected Party is taking to mitigate the effects of the event on its performance, and if the initial notification was verbal, it should be promptly followed up with a written notification. The Affected Party shall keep the other Party informed on a continuing basis of developments relating to the Force Majeure Event until the event ends. The Affected Party will be entitled to suspend or modify its performance of obligations under this Agreement (other than the obligation to make payments) only to the extent that the effect of the Force Majeure Event cannot be reasonably mitigated. The Affected Party will use reasonable efforts to resume its performance as soon as possible. The Parties shall immediately report to the Commission should a Force Majeure Event prevent performance of an action required by Rule that the Rule does not permit the Parties to mutually waive. Default 6.5.1 A Party is in default if the Party fails to perform an obligation required under this Agreement (other than the payment of money). A Party is not considered in default of this agreement if the failure to perform an obligation is caused by an act or omission of the other Party. 6.5.2 Upon a default, the non-defaulting Party must give written notice of the default to the defaulting party. The defaulting party has sixty (60) calendar days from the receipt of the written default notice to cure the default. If the default is not capable of cure within the 60-day period, the defaulting Party must begin to cure the default within twenty (20) calendar days after receipt of the written default notice, and must continuously and diligently complete the cure within six (6) months of the receipt of the notice. 6.5.3 If a default is not cured as provided in 6.5.2, then the non-defaulting Party is entitled to terminate the Agreement by written notice at any time until cure occurs. If the non-defaulting Party chooses to terminate this Agreement, the termination provisions in Article 3.3 apply. Alternately, the non-defaulting Party is entitled to seek dispute resolution with the Commission in lieu of termination. Article 7. Insurance Additional liability insurance is not required as a part of the Agreement if the Net Metering Facility is in compliance with the provisions of the Application approval, the Agreement and the standards contained in Utah Code § 54-15-106. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 12 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 84 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 8. Dispute Resolution Nothing in this Article shall restrict the rights of any Party to file a Complaint with the Commission under relevant provisions of the Rule, R746-312-3(5) and applicable state law. Article 9. 9.1 Miscellaneous Governing Law, Regulatory Authority, and Rules The validity, interpretation, and enforcement of this Agreement is governed by the laws of the State of Utah. If any provision of this Agreement conflicts with any applicable provision, as may be amended from time to time, of the Utah Code (“Code”), Utah Administrative Rules (“Rules”), or Rocky Mountain Power’s Tariffs (“Tariff”), then the applicable provision of the Code, Rules, or Tariff controls. Rocky Mountain Power must provide copies of the applicable provisions of the Code, Rules, and Tariff upon the Customer’s request. 9.2 Amendment Additions, deletions or changes to the standard terms and conditions of this Agreement will not be permitted unless they are mutually agreed to by the Parties and permitted by the Rule or permitted by the Commission for good cause shown. The Parties may amend the Agreement by a written instrument duly executed by both Parties in accordance with the provisions of the Rule, applicable Commission Orders and provisions of the laws of the State of Utah. 9.3 No Third Party Beneficiaries The Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, or where permitted, their successors in interest and their assigns. 9.4 Waiver 9.4.1 The failure of a Party to the Agreement to insist, on any occasion, upon strict performance of any provision of the Agreement, will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party. 9.4.2 The Parties may also agree to mutually waive a Section of this Agreement without the Commission’s approval where the Rule so provides. 9.4.3 Any waiver at any time by either Party of its rights with respect to the Agreement shall not be deemed a continuing waiver or a waiver with respect to any other failure to comply with any other obligation, right, duty of the Agreement. Termination or default of this Agreement for any reason by Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 13 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 85 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Customer shall not constitute a waiver of the Customer’s legal rights to obtain interconnection from Rocky Mountain Power. Any request for waiver of the Agreement or any provisions thereof shall be provided in writing. 9.5 Entire Agreement The Agreement, including any supplementary attachments that may be necessary, constitutes the entire Agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of the Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party’s compliance with its obligations under the Agreement. 9.6 Multiple Counterparts This Agreement may be executed in one or more counterparts, whether electronically or otherwise, each of which is deemed an original but all constitute one and the same instrument. 9.7 No Partnership The Agreement will not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party. 9.8 Severability If any provision or portion of the Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (1) such portion or provision shall be deemed separate and independent, (2) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (3) the remainder of the Agreement shall remain in full force and effect. 9.9 Subcontractors Nothing in the Agreement shall prevent a Party from using the services of any subcontractor, or designating a third party agent as the one responsible for a specific obligation or act required in the Agreement (collectively subcontractors), as it deems appropriate to perform its obligations under the Agreement; provided, however, that each Party will require its subcontractors to comply with all applicable terms and Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 14 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 86 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward conditions of the Agreement in providing such services and each Party will remain primarily liable to the other Party for the performance of the subcontractor. 9.10 9.9.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under the Agreement. The hiring Party shall by fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made. Any applicable obligation imposed by the Agreement upon the hiring Party shall be equally binding upon, and will be construed as having application to, any subcontractor of such Party. 9.9.2 The obligations under this Article will not be limited in any way by any limitation of a subcontractor’s insurance. Reservation of Rights Rocky Mountain Power shall have the right to make a unilateral filing with the Commission to modify this Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule, regulation or any other applicable provision of the Federal Power Act and the Commission’s rules and regulations thereunder, and Customer shall have the right to make a unilateral filing with the Commission to modify this Agreement under any applicable provision of the Federal Power Act and the Commission’s rules and regulations; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the Commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties, except to the extent that the Parties otherwise agree as provided herein. Article 10. 10.1 Notices and Records General Unless otherwise provided in the Agreement, any written notice, demand, or request required or authorized in connection with the Agreement shall be deemed properly given if delivered in person, delivered by recognized national courier service, sent by first class mail, postage prepaid, or by electronic mail if an electronic mail address is provided below, to the person specified below: If to Customer: Customer: ______________________________________________________ Attention: _____________________________________________________________ Address: ________________________________________________________________ City: ________________________________ State: _________________ Zip: ________ Phone: (____) ______________________ Fax: (____) ___________________________ Email: _________________________________________________________________ Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 15 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 87 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If to Rocky Mountain Power: By Mail: Rocky Mountain Power Attention: Net Metering Group P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 Or By email: [email protected] 10.2 Changes to the Notice Information Either Party may change this notice information by giving five (5) business days written notice prior to the effective date of the change. 10.3 Records Rocky Mountain Power will maintain a record of the Net Metering Agreement and related Attachments, if any, for as long as the net metering arrangement is in place. Rocky Mountain Power will provide a copy of these records to Customer within fifteen (15) Business Days if a request is made in writing. Article 11. Signatures IN WITNESSETH WHEREOF, the Parties have caused the Agreement to be executed by their respective duly authorized representatives. For the Customer: By: ______________________________________________ Name: ____________________________________________ Title: _____________________________________________ Date: _____________________________________________ Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 16 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 88 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward For Rocky Mountain Power: By: ______________________________________________ Name: ____________________________________________ Title: _____________________________________________ Date: _____________________________________________ Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 17 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 89 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward APPENDIX A ROCKY MOUNTAIN POWER UTAH NET METERING APPLICATION LEVEL 1 REVIEW INVERTER BASED SYSTEMS, 25 KW OR SMALLER Section 1: For Rocky Mountain Power Use Only Customer Name: ______________________________________________________________________ Service Address: ______________________________________________________________________ City, State, Zip: _______________________________________________________________________ Customer Account No. & Request No.: ____________________________________________________ Section 2: To Be Completed By Customer A. Applicant Information Name: _____________________________________________________________________ Mailing Address: ____________________________________________________________ City: ___________________________________State: _________ Zip Code: ____________ Site Street Address (if different from above): ______________________________________ City: ___________________________________State: __________ Zip Code: ___________ Daytime Phone: (_____) _____________________ Fax: (_____) ______________________ Email: _____________________________________________________________________ B. System Information System Type: Solar Wind Hydro Other (Specify): ___________________ Generation Nameplate Capacity: _____ kW (Combine DC total of wind turbines, solar panels, etc) Inverter Controlled: Yes No Inverter Manufacturer: __________ Model: _______ Number of Inverters: ___ Rating: ____ kW Manufacturer Nameplate Inverter Total AC Capacity Rating: _________ kW Single Phase Three Phase Multiple Single Phase Connected on Poly-phase Inverter(s): (three phase) system (Attach Inverter and Panel Technical Specifications Sheets) Type of Service: Single Phase Three Phase If Three Phase: 120/208 Volts, 4 wire 120/240 Volts, 4 wire 277/480 Volts, 4 wire Other (Please Specify Voltage and Number of Service Wires): _______________________________________ Meets IEEE standard 1547 & UL Subject 1741 requirements as specified in Rule: Yes No Please note: A disconnect switch is not required for an inverter-based facility with a name plate rating of not more than 10 kW. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 18 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 90 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Manual disconnect required: Yes No Will the net metering facility interconnect to a switchgear? Yes No Net metering facility available fault duty at the point of common coupling:__________________ For other service types, the net metering facility must not impact the Customer’s service conductors by more than 10 kW. If a disconnect switch is installed, Customer to provide a simple one-line diagram that shows the location of the disconnect switch and Rocky Mountain Power meter. Customer must post metal or plastic engraved signage indicating on-site generation in accordance with National Electric Code. The signage must be permanent and located adjacent to the meter base and disconnect switch noting “Parallel Generation on Site” and identifying the manual disconnect switch with the words “Manual Disconnect for Parallel Generation.”____ (Initial Here) Electrical Inspection approval date (attach copy or provide to utility when obtained):__________ Anticipated Operational Date of Net Metering Facilities: ________________________________ C. Application Fee - $60.00 C.D. Additional Information 1. An equipment package will be considered certified for interconnected operation if it has been submitted by a manufacturer to a nationally recognized testing and certification laboratory, and has been tested and listed by the laboratory for continuous interactive operation with an electric distribution system in compliance with the applicable IEEE and UL 1741 standards in the Rule. 2. If the equipment package has been tested and listed as an integrated package, which includes a generator or other electric source, the equipment package will be deemed certified, and Rocky Mountain Power will not require any further design review, testing or additional information. 3. If the equipment package includes only the interface components (switchgears, inverters, or other interface devices), an interconnection applicant must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and consistent with the testing and listing specified for the package. If the generator or electric source being utilized with the equipment package is consistent with the testing and listing performed by the nationally recognized testing and certification laboratory, the equipment package will be deemed certified and Rocky Mountain Power will not require further design review, testing or additional equipment. 4. A net metering facility must be equipped with metering equipment that can measure the flow of electricity in both directions, comply with ANSI C12.1 standards and Utah Administrative Rule R746-312. Rocky Mountain Power will install the required metering equipment at Rocky Mountain Power’s expense. 5. Rocky Mountain Power will not be responsible for the cost of determining the rating of equipment owned by the customer-generator or of equipment owned by other local customers. 6. Customer may operate the Net Metering Facility temporarily for testing and obtaining inspection approval. Customer shall not operate the Net Metering Facility in continuous parallel without an executed Interconnection and Net Metering Service Agreement, and approval from Rocky Mountain Power. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 19 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 91 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward DE. Customer Acknowledgment I certify that the information provided in this Application is true. I will provide Rocky Mountain Power a copy of the signed government electrical inspection approval document when obtained, if not already provided with this Application. I agree to abide by the terms of this Application and I agree to notify Rocky Mountain Power thirty (30) days prior to modification or replacement of the System’s components or design. Any such modification or replacement may require submission of a new Application to Rocky Mountain Power. I agree not to operate the Net Metering Facility in parallel with Rocky Mountain Power, except temporarily for testing and obtaining inspection approval, until this Application is approved by Rocky Mountain Power, until this agreement is signed by both parties, and until I have provided Rocky Mountain Power with at least five (5) days notice of anticipated start date. Customer or Applicant Signature & Date: ____________________________________ Please send completed application to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 or Please scan the completed application and email [email protected] Section 3: To be completed by the System Installer Installation Contractor Information/Hardware and Installation Compliance Installation Contractor (Company Name): _________________________________________________ Contractor's License No.: ______________________ Proposed Installation Date: __________________ Mailing Address: _____________________________________________________________________ City: _____________________________________ State: ___________ Zip Code: ________________ Daytime Phone: _______________ Fax: _______________ Email: ____________________________ For inverter-controlled system, meets IEEE Standards and UL 1741 Inverters, Converters, and Yes No Controllers for use in Independent Power Systems as set forth in the Rule: If Photovoltaic System, System must be installed in compliance with IEEE Standards, Recommended Practice for Utility Interface of Photovoltaic Systems. All System types must be installed in compliance with applicable requirements of local electrical codes, Rocky Mountain Power and the National Electrical Code® (NEC) and must use an anti-islanding inverter. The System must include a manual, lockable, load-break (disconnect) switch, unless exempt under Rule 746-312-4(2), accessible at all times to Rocky Mountain Power personnel and located within 10 feet of Rocky Mountain Power’s meter. The disconnect switch may be located more than 10 feet from Rocky Mountain Power’s meter if permanent instructions are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve the location of the disconnect switch prior to the installation of the net metering facility. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 20 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 92 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If the Net Metering Facility is designed to provide uninterruptible power to critical loads, either through energy storage, back-up generator, or the generation source, the Net Metering Facility will include a parallel blocking scheme for this backup source. This function may be integral to the inverter manufacturer’s packaged system. Does the Net Metering Facility include a parallel blocking scheme: Yes No Signed (Contractor): ______________________________________ Date: _____________ Name (Print): _______________________________________________ Section 4. To be completed by Rocky Mountain Power: A. If approving the application: Rocky Mountain Power does not, by approval of this Application, assume any responsibility or liability for damage to property or physical injury to persons. Further, this Application does not constitute a dedication of the owner's System to Rocky Mountain Power electrical system equipment or facilities. Customer entered into an Interconnection and Net Metering Service Agreement with Rocky Mountain Power on the ____ day of _____, 20__. Customer satisfactorily passed Witness Tests on the ____ day of _________, 20__. (Rocky Mountain Power may waive Witness Tests at its option; if tests are waived initial here __) This Application is approved by Rocky Mountain Power on this ______ day of _________, 20__ Rocky Mountain Power Representative Name (Print):___________________________________ Signed (Rocky Mountain Power Representative): ______________________ Date: __________ B. If denying the application: This application is denied by Rocky Mountain Power on this ______ day of ____________, 20__ for the following reason(s):_________________________________________________________ Rocky Mountain Power Representative Name (Print):____________________________________ Signed (Rocky Mountain Power Representative): ________________________ Date:__________ Applicant may submit a new application for Level 2 review. Section 5: To be completed by Rocky Mountain Power Meterman Customer Account No. _____________________________ Site ID No. : ______________________ Served from Facility Point No.: ________________________________ New Net Meter No.: ____________________________ Date net meter installed: ________________ Manual disconnect required: Yes No Proper location & permanent signage in place: Yes No Signature/Title:_____________________________________________ Date:___________________ Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 3 5 - Level 1 Page 21 of 21 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 93 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward We appreciate your interest in Rocky Mountain Power’s net metering program. Before purchasing any net metering equipment, we recommend you review the requirements for interconnecting a net metering system to Rocky Mountain Power’s electrical distribution system. The requirements are found in the Interconnection Agreement. To complete the process for a net metering interconnection, please follow the steps below: 1. Complete and submit the following to Rocky Mountain Power: Interconnection Agreement including the Application for Net Metering Interconnection The inverter specification sheet For systems larger than 10 kW, a simple one-line diagram showing The location of Rocky Mountain Power’s meter The location of the disconnect switch 2. Rocky Mountain Power will review your agreement and application and send you a written notification of approval either by mail or e-mail 3. Install the net metering system after you receive the written approval of your Interconnection Agreement and Application for Net Metering from Rocky Mountain Power 4. Obtain an inspection of your net metering system by the local city or county electrical inspector 5. Submit the electrical inspector’s approval to Rocky Mountain Power 6. Turn on your net metering system after Rocky Mountain Power provides you written notification the interconnection work has been completed and the net meter installed Return completed documents to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, Utah 84125-0308 Or Email to: [email protected] Thank you for your interest in the net metering program. If you have questions, please call us toll free at 1-888-221-7070 and ask for a net metering specialist. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 1 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 94 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Service ID#:___________ Request #: ___________ INTERCONNECTION AND NET METERING SERVICE AGREEMENT FOR NET METERING FACILITY LEVEL 2 INTERCONNECTION UP TO 2 MW NAMEPLATE CAPACITY This Interconnection and Net Metering Service Agreement (“Agreement”) is made and entered into this ____ day of _____________, 20___, by and between _____________________________, an electric customer (“Customer”), and PacifiCorp, dba Rocky Mountain Power (“Rocky Mountain Power”), a Corporation organized and existing under the laws of the State of Oregon. Customer and Rocky Mountain Power each may be referred to as a “Party”, or collectively as the “Parties”. Recitals: Whereas, Customer has installed or intends to install a Net Metering Facility qualifying for “Net Metering,” Utah Rate Schedule No. 135A (“Schedule 135A”), as given in Rocky Mountain Power’s currently effective tariff as filed with the Public Service Commission of Utah (“Commission”), on or adjacent to Customer’s premises located at ____________________________, Utah, for the purpose of generating electric energy; Whereas, the Net Metering rate schedule may be amended from time to time, and the Public Service Commission may alter the charge, credit, and ratemaking structure applicable to Net Metering customers pursuant to Utah Code § 54-15-105.1; Whereas, Customer represents to Rocky Mountain Power that Customer either owns or leases its Net Metering Facility qualifying for Schedule 135A, or meets the exemption requirements set forth in Utah Code § 54-2-1.16(d) because it is a county, municipality, city, town, other political subdivision, local district, special service district, state institution of higher education, school district, charter school, or any entity within the state system of public education; or an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3) operated for religious, charitable, or educational purposes that is exempt from federal income tax and able to demonstrate its tax-exempt status; Whereas, Customer desires to interconnect the Net Metering Facility with Rocky Mountain Power’s distribution system consistent with the Application completed by Customer on _____________ ____, 20___, as described in as described in Appendix B (“Application”) of this Agreement; and Whereas, Customer, using its Net Metering Facility, intends to offset part or all of its electrical requirements supplied by Rocky Mountain Power. Now, therefore, in consideration of and subject to the mutual covenants contained herein, the Parties agree as follows: Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 2 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 95 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 1. Scope and Limitations of Agreement 1.1 Scope The Agreement shall be used for all approved Level 2 Applications according to the procedures set forth in Utah Administrative Rule 746-312, as may be amended from time to time (“Rule”). . The Rule can be viewed at www.psc.utah.gov. The Agreement establishes standard terms and conditions approved by the Public Service Commission of Utah (“Commission”) under which the Net Metering Facility with an Electric Nameplate Capacity of 2 MW or smaller as described in Appendix B will interconnect to, and operate in parallel with, Rocky Mountain Power’s system. 1.2 Definitions Terms with initial capitalization, when used in this Agreement, shall have the meanings indicated or as specified in the Rule Section R746-312-2 and, to the extent this Agreement conflicts with the Rule, the Rule shall take precedence. 1.3 Other Agreements Nothing in this Agreement is intended to affect any other agreement between Rocky Mountain Power and Customer or any other Interconnection Customer. However, in the event that the provisions of the Agreement are in conflict with the provisions of any Rocky Mountain Power Tariff, as may be amended from time to time, the Rocky Mountain Power Tariff, as may be amended from time to time, shall control. 1.4 Responsibilities of the Parties 1.4.1 The Parties shall perform all obligations of the Agreement in accordance with all applicable laws and regulations. 1.4.2 Customer will construct, operate, test, and maintain its Net Metering Facility in accordance with the Agreement, IEEE standards (available at the following link: http://standards.ieee.org/index.html), National Electric Code Standards (available for purchase at http://standards.ieee.org/faqs/NESCFAQ.html#q8), Utah state building codes (available at the following link: http://www.dopl.utah.gov/programs/ubc/), the Rule and other applicable standards required by the Commission, as may be amended from time to time. 1.4.3 Each Party shall be responsible for the safe installation, maintenance, repair and condition of their respective lines and appurtenances on their respective sides of the Point of Common Coupling. Each Party shall provide interconnection facilities that adequately protect the other Party’s facilities, personnel and other persons from damage and injury. The allocation of responsibility for the design, installation, operation, maintenance and ownership of interconnection facilities is prescribed in the Rule, including but not necessarily limited to R746-312-4. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 3 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 96 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.5 1.4.4 Customer is responsible for protecting the generating equipment, inverters, protective devices, and other system components from damage from the normal and abnormal conditions and operations that occur on Rocky Mountain Power’s system in delivering and restoring power; and is responsible for ensuring that the Net Metering Facility equipment is inspected, maintained, and tested in accordance with the manufacturer’s instructions to ensure that it is operating correctly and safely. 1.4.5 Customer shall obtain Rocky Mountain Power’s approval of the Application prior to commencing parallel operation of its interconnected Net Metering Facility. Parallel Operation and Maintenance Obligations Once the Net Metering Facility has been authorized to commence parallel operation by an approved application, and execution of this Agreement, Customer will abide by all written provisions for operations and maintenance as required by the Rule and Rocky Mountain Power’s Tariffs, including but not necessarily limited to R746-312-4 and Schedule 135A or its successor tariff(s). 1.6 Metering Rocky Mountain Power shall install, own and maintain, at its sole expense, a kilowatthour meter(s) and associated equipment to measure the flow of energy in each direction, unless otherwise authorized by the Commission. Customer shall provide, at its sole expense, adequate facilities, including, but not limited to, a current transformer enclosure (if required), meter socket(s) and junction box, for the installation of the meter and associated equipment. Customer hereby consents to the installation and operation by Rocky Mountain Power and at Rocky Mountain Power’s expense, of one or more additional meters to monitor the flow of electricity in each direction. Such meters shall be located on the premises of Customer. 1.7 Net Metering Facility Requirements, Installation, Operation 1.7.1 Customer’s Net Metering Facility must meet the requirements set forth in, including but not necessarily limited to, the Rule, R746-312-4 and Schedule 135A or its successor tariff(s). This also applies to installation and operation of the Net Metering Facility. 1.7.2 Customer is responsible for all costs associated with its Net Metering Facility and is also responsible for all costs related to any modifications to the Net Metering Facility that may be required by Rocky Mountain Power for purposes Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 4 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 97 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward of safety and reliability as allowed under the Rule and Rocky Mountain Power tariffs. 1.8 Power Quality Customer will design its Net Metering Facility to maintain a composite power delivery at continuous rated power output at the Point of Common Coupling that meets the requirements set forth in IEEE 1547, in accordance with the Rule, R746-312-4. 1.9 Anticipated Start Date Customer must include an anticipated start date for operation of its Net Metering Facility in the Application. After receiving notice that the Application has been approved and satisfactory completion of all reviews and inspections of the Net Metering Facility, Customer must notify Rocky Mountain Power at least ten (10) Business Days prior to starting operation of the Facility, through either submission of an executed Agreement or through separate written notice. Customer shall not commence parallel operation of the Net Metering Facility until Rocky Mountain Power executes this Agreement, installs the net meter and notifies Customer that the Net Metering Facility is interconnected. 1.10 Net Metering Facility Inspection 1.10.1 Building Code Inspection Prior to operation in parallel with Rocky Mountain Power’s system, the Net Metering Facility must be inspected by a local building code official to ensure compliance with applicable local codes. 1.10.2 Inspection by Rocky Mountain Power Rocky Mountain Power may inspect the Net Metering Facility and its component equipment, and the documents necessary to ensure compliance with the Rule. Customer shall notify Rocky Mountain Power prior to placing the Net Metering Facility in service, and Rocky Mountain Power shall have the right to have personnel present on the in-service date. If the Net Metering Facility is subsequently modified in order to increase its gross power rating, Customer must notify Rocky Mountain Power by submitting a new application specifying the modifications in accordance with the level of review required for that application. 1.11 Net Metering Facility Testing and Maintenance Customer shall conduct maintenance and testing on its Net Metering Facilities as set forth in the Rule, including but not necessarily limited to R746-312-14. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 5 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 98 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.11.1 Customer shall conduct any manufacturer-recommended testing or maintenance at its expense. 1.11.2 Customer shall conduct any post-installation testing, at its expense, necessary to ensure compliance with IEEE standards as set forth in the Rule or to ensure safety. This includes replacing a major equipment component that is different from the originally installed model. 1.11.3 When Customer performs maintenance or testing in accordance with the Rule, it must retain written records documenting the maintenance and results of the testing for three (3) years. 1.11.4 Rocky Mountain Power shall have the right to inspect Customer’s facility after interconnection approval is granted, at reasonable hours and with reasonable prior notice to Customer. If Rocky Mountain Power discovers that the Net Metering Facility is not in compliance with the Rule, Rocky Mountain Power may require Customer to disconnect the Net Metering Facility until compliance is achieved. 1.12 Removal of Facility Customer shall immediately notify Rocky Mountain Power if Customer removes or ceases to operate the Net Metering Facility. Article 2. 2.1 Review, Inspection, Testing, Disconnect Switch and Signage, and Right of Access Initial Review and Additional Review After determining Customer’s interconnection request is complete, in accordance with the Rule, R746-312-9, Rocky Mountain Power will conduct a review of the proposed interconnection, using screens set forth in the Rule R746-312-7. Rocky Mountain Power will conduct such review within fifteen (15) days after notifying Customer that the interconnection request is complete and will notify Customer either: 1) the Net Metering Facility meets all applicable criteria and the interconnection request is approved; 2) although the Net Metering Facility fails one or more of the screens the Net Metering Facility may be interconnected consistent with safety, reliability, and power quality standards and the interconnection is approved; or 3) the interconnection of the Net Metering Facility has failed to meet one or more of the applicable criteria and the reason for failure, or Rocky Mountain Power has not or could not determine from the initial reviews that the Net Metering Facility may be interconnected consistent with safety reliability, and power quality standards, or the Net Metering Facility cannot be approved without minor modifications at minimal cost and the interconnection request is denied unless the Customer is willing to consider minor modifications or further study. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 6 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 99 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If the initial review determines that the Net Metering Facility fails to meet one or more applicable requirements, but additional review may enable Rocky Mountain Power to determine that the Net Metering Facility may be interconnected consistent with safety, reliability and power quality standards, Rocky Mountain Power will offer to perform the additional review to determine whether minor modifications to the electric distribution system would enable the interconnection to be made consistent with safety, reliability and power quality standards. In this instance, Rocky Mountain Power will provide Customer with a good faith, nonbinding estimate of costs of such additional review and minor modifications. Rocky Mountain Power will conduct additional review and make minor modifications after receipt of payment from Customer in accordance with the attached Appendix A. 2.2 Equipment Testing and Inspection Customer must notify Rocky Mountain Power of the anticipated testing and inspection date of the Net Metering Facility at least ten (10) business days prior to testing, either through submittal of the Agreement, a notice of completion, or in a separate notice. Within ten (10) business days after receipt of such required documentation, Rocky Mountain Power will inspect the Net Metering Facility, set the new meter if required, approve the interconnection and may arrange a witness test as set forth in the Rule, R746-312-9(5). Rocky Mountain Power and Customer will select a date by mutual agreement for the witness tests. Rocky Mountain Power will test and inspect the Net Metering Facility and Interconnection Facilities prior to interconnection in accordance with IEEE Standards as provided for in the Rule, R746-312-4. Customer shall not begin operation of its Net Metering Facility until after inspection and testing is completed. If a witness test is conducted and is not satisfactory, Customer must resolve any deficiencies within forty-five (45) business days or other time period as mutually agreed by the Parties. 2.3 Disconnect Switch and Signage Customer shall comply with the Rule regarding disconnect switches, R746-312-4. The disconnect switch may be located more than 10 feet from the public utility meter if permanent instructions in letters of appropriate size are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve in writing the location of the disconnect switch prior to the installation of the Net Metering Facility. 2.4 Right of Access As provided in the Rule, R746-312-4, Rocky Mountain Power shall have access to any required disconnect switch at the Net Metering Facility at all times. Rocky Mountain Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 7 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 100 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Power will provide reasonable notice to Customer when possible prior to using the right of access. Additionally, as provided in Rocky Mountain Power Utah Rule 6, or its successor tariff, Rocky Mountain Power shall have access to the metering equipment. Article 3. 3.1 Effective Date, Term, Termination and Disconnection Effective Date The Agreement shall become effective upon execution by the Parties. 3.2 Term of Agreement The Agreement will become effective on the Effective Date and will remain in effect unless terminated in accordance with provisions of this Agreement, or Order by the Commission. 3.3 Termination No termination will become effective until the Parties have complied with all applicable laws and clauses of this Agreement applicable to such termination. 3.3.1 Customer may terminate this Agreement at any time by giving Rocky Mountain Power twenty (20) business days written notice. 3.3.2 Either Party may terminate this Agreement after default pursuant to Article 6.4 of this Agreement. 3.3.3 The Commission may Order termination of this Agreement. 3.3.4 Upon termination of this Agreement, Customer shall disconnect the Net Metering Facility from Rocky Mountain Power’s system. The termination of this Agreement will not relieve either Party of its liabilities and obligations, owed or continuing at the time of termination. 3.3.5 If Customer removes the Net Metering equipment at the Net Metering Facility or ceases to operate its Net Metering Facility at the premise listed in the Application, this Agreement will be immediately terminated. 3.3.6 The provisions of this Article shall survive termination or expiration of this Agreement. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 8 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 101 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 3.4 Temporary Disconnection 3.4.1 Rocky Mountain Power may temporarily disconnect the Net Metering Facility from Rocky Mountain Power’s system for so long as reasonably necessary in the event one or more of the following conditions or events occurs: 3.4.1.1 Emergencies or to address maintenance requirements for Rocky Mountain Power’s system. 3.4.1.2 Hazardous conditions existing on Rocky Mountain Power’s system which may affect the safety of the general public or Rocky Mountain Power employees due to the operation of the Net Metering Facility or protective equipment as determined by Rocky Mountain Power. 3.4.1.3 Adverse electrical effects on the electrical equipment of Rocky Mountain Power’s other electric customers caused by the Net Metering Facility as determined by Rocky Mountain Power. 3.4.2 In the event that no disconnect switch is installed, Rocky Mountain Power may physically disconnect all service to the Customer and/or all service to the premises where the Net Metering Facility is located. 3.4.3 To the extent practicable, Rocky Mountain Power will give prior notice of any temporary disconnection of the Net Metering Facility. If Rocky Mountain Power is unable to give prior notice, Rocky Mountain Power will provide notice including an explanation of the condition necessitating the disconnection at the time of disconnection. 3.4.4 Under emergency conditions, Rocky Mountain Power or Customer may immediately suspend interconnection service and temporarily disconnect the Net Metering Facility. Rocky Mountain Power shall notify Customer promptly when Rocky Mountain Power becomes aware of an emergency condition that may reasonably be expected to affect the Net Metering Facility operation. Customer shall notify Rocky Mountain Power promptly when Customer becomes aware of an emergency condition that may reasonably be expected to affect Rocky Mountain Power’s system. To the extent the information is known, the notification shall describe the emergency condition, the extent of any damage or deficiency, the expected effect on the operation of both Parties’ facilities and operations, the anticipated duration, and the necessary corrective action. 3.4.5 Customer shall make reasonable efforts to provide notice of interruption of Net Metering Facility operation for safety and/or reliability reasons prior to the interruption unless an emergency occurs. Emergency interruptions or temporary terminations are subject to Section 3.4.1 above. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 9 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 102 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 3.4.6 Rocky Mountain Power shall use reasonable efforts to provide Customer with prior notice of forced outages to effect immediate repairs to Rocky Mountain Power’s system. If prior notice is not given, Rocky Mountain Power, shall, upon request, provide Customer written documentation after the fact explaining the circumstances of the disconnection. 3.4.7 Customer must provide Rocky Mountain Power notice and obtain Rocky Mountain Power’s written approval before Customer may modify its Net Metering Facility in order to increase the electric output of the Net Metering Facility. If Customer makes any material change without prior written authorization of Rocky Mountain Power, Rocky Mountain Power will have the right to temporarily disconnect the Net Metering Facility until Rocky Mountain Power has had an opportunity to review the change(s) made to determine whether they are acceptable. If any system modifications or other equipment installations are deemed necessary by Rocky Mountain Power to accommodate the modified Net Metering Facility, Customer shall submit the appropriate net metering application at that time. 3.4.8 The Parties shall cooperate with each other to restore the Net Metering Facility, Interconnection Facilities, and Rocky Mountain Power’s system to their normal operating state as soon as reasonably practicable following any disconnection pursuant to this section. Article 4. 4.1 Cost Responsibility Application Fee Customer shall bear the cost of any Application fee provided for in the Rule, R746-31213(2), or as otherwise approved by the Commission. Customer shall remit payment with the Application as calculated in the Application, Section 2(C). 4.2 Net Metering Facility and Interconnection Equipment Customer shall be responsible for all costs including overheads, associated with procuring, installing, owning, operating, maintaining, repairing, and replacing its Net Metering Facility, any associated equipment package, and any associated interconnection equipment or interconnection facilities required to be installed on Customer’s side of the Point of Common Coupling. 4.3 Minor Modifications If, under Section 2.1 of this Agreement, additional review is performed and minor modifications to the electric distribution system are required to enable the interconnection to be made consistent with safety, reliability and power quality Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 10 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 103 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward standards applicable to Level 2 interconnection reviews, the Customer shall pay for the cost to procure, install, and construct, operate, maintain, repair and replace any such Minor Modifications. A description of the minor modifications may be found in Appendix A. The cost of the minor modifications as described on Appendix A shall be $________. Customer shall remit payment for minor modifications prior to Rocky Mountain Power commencing the work required for the minor modifications. Article 5. 5.1 Billing Monthly Billing The electric service charge shall be computed in accordance with the monthly billing in the currently applicable standard service tariff. Customer will be compensated for net excess energy in accordance with Schedule 135A or its successor tariff(s). Customer will be transitioned to any successor tariff immediately upon approval of that tariff by the Public Service Commission and will be subject to any charge, credit, or ratemaking structure implemented therein. 5.2 Special Conditions Customer must comply with the special conditions found in Schedule 135A or its successor tariff(s). 5.3 Aggregating Meters Aggregating Meters is allowed if certain conditions are met under the Rule, R746-3125. Customer designates the following meters for aggregation: _______________________. In the event that the Net Metering Facility supplies more electricity to Rocky Mountain Power than the Customer uses from Rocky Mountain Power, Rocky Mountain Power will apply any credits to the next monthly bill in accordance with Utah Code § 54-15-104 and the Rule, R746-312-15. Customer shall designate the order in which to apply any credits in accordance with the Rule. <<If customer does not want to aggregate, insert “N\A” in the gray box.>> Article 6. 6.1 Assignment, Liability, Indemnity, Force Majeure, Consequential Damages and Default Assignment This Agreement may be assigned by either Party with the consent of the other Party. A Party’s consent to an assignment may not be unreasonably withheld. The assigning Party must give the non-assigning Party written notice of the assignment at least fifteen days (15) before the effective date of the assignment. The non-assigning Party must submit its objection to the assignment, if any, to the assigning Party in writing at least 5 business days before the effective date of the assignment. If a written objection is not Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 11 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 104 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward received within that time period, the non-assigning party is deemed to consent to the assignment. 6.1.1 Exceptions to the Consent Requirement 6.1.1.1 Either Party may assign the Agreement without the consent of the other Party to any affiliate (including a merger or acquisition of the Party with another entity), of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.1.2 Customer-Generator is entitled to assign the Agreement, without the consent of Rocky Mountain Power, for collateral security purposes to aid in obtaining financing for the Net Metering Facility. 6.1.1.3 For Net Metering systems that are integrated into a building facility, the sale of the building or property will result in the automatic assignment of this Agreement to the new owner who will be responsible for complying with the terms and conditions of this Agreement. 6.1.2 6.2 Any attempted assignment that violates this Article is void and ineffective. Assignment does not change or eliminate a Party’s obligations under this Agreement. An assignee is responsible for meeting the same obligations as the assigning Party. Limitation of Liability and Consequential Damages Each Party’s liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in the performance of this Agreement, is limited to the amount of direct damage actually incurred. Neither Party is liable to the other Party for any indirect, special, consequential, or punitive damages. 6.3 Indemnification Customer shall hold harmless and indemnify Rocky Mountain Power for all loss to third parties resulting from the operation of the Net Metering Facility, except when the loss occurs due to the negligent actions of Rocky Mountain Power. Rocky Mountain Power shall hold harmless and indemnify Customer for all loss to third parties resulting from the operation of Rocky Mountain Power’s system, except where the loss occurs due to the negligent actions of Customer. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 12 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 105 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 6.4 6.5 Force Majeure 6.4.1 As used in this Agreement, a Force Majeure Event shall mean “any act of God, labor disturbance, act of the public enemy, war, acts of terrorism, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment through no direct, indirect, or contributory act of a Party, any order, regulation, or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party’s control. A Force Majeure Event does not include an act of negligence or wrongdoing.” 6.4.2 If a Force Majeure Event prevents a Party from fulfilling any obligations under this Agreement, the Party affected by the Force Majeure Event (“Affected Party”) shall promptly notify the other Party of the existence of the Force Majeure Event. The notification must specify in reasonable detail the circumstances of the Force Majeure Event, its expected duration, and the steps that the Affected Party is taking to mitigate the effects of the event on its performance, and if the initial notification was verbal, it should be promptly followed up with a written notification. The Affected Party shall keep the other Party informed on a continuing basis of developments relating to the Force Majeure Event until the event ends. The Affected Party will be entitled to suspend or modify its performance of obligations under this Agreement (other than the obligation to make payments) only to the extent that the effect of the Force Majeure Event cannot be reasonably mitigated. The Affected Party will use reasonable efforts to resume its performance as soon as possible. The Parties shall immediately report to the Commission should a Force Majeure Event prevent performance of an action required by Rule that the Rule does not permit the Parties to mutually waive. Default 6.5.1 A Party is in default if the Party fails to perform an obligation required under this Agreement (other than the payment of money). A Party is not considered in default of this agreement if the failure to perform an obligation is caused by an act or omission of the other Party or is the result of a Force Majeure as defined in this Agreement. 6.5.2 Upon a default, the non-defaulting Party must give written notice of the default to the defaulting party. The defaulting party has sixty (60) calendar days from the receipt of the written default notice to cure the default. If the default is not capable of cure within the 60-day period, the defaulting Party must begin to cure the default within twenty (20) calendar days after receipt of the written default notice, and must continuously and diligently complete the cure within six (6) months of the receipt of the notice. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 13 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 106 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 6.5.3 Article 7. If a default is not cured as provided for in 6.5.2, then the non-defaulting Party is entitled to terminate the Agreement by written notice at any time until cure occurs. If the non-defaulting Party chooses to terminate this Agreement, the termination provisions in Article 3.3 apply. Alternately, the non-defaulting Party is entitled to seek dispute resolution with the Commission in lieu of termination. Insurance Additional liability insurance is not required as a part of the Agreement if the Net Metering Facility is in compliance with the provisions of the Application approval, the Agreement and the standards contained in Utah Code § 54-15-106. Article 8. Dispute Resolution 8.1 Nothing in this Article shall restrict the rights of any Party to file a complaint with the Commission under relevant provisions of the Rule and applicable state law. 8.2 Pursuit of dispute resolution may not affect a Customer with regard to consideration of an Interconnection Request or a Customer’s queue position. Article 9. 9.1 Miscellaneous Governing Law, Regulatory Authority and Rules The validity, interpretation, and enforcement of this Agreement is governed by the laws of the State of Utah. If any provision of this Agreement conflicts with any applicable provision, as may be amended from time to time, of the Utah Code (“Code”), Utah Administrative Rules (“Rules”), or Rocky Mountain Power’s Tariffs (“Tariff”), then the applicable provision of the Code, Rules, or Tariff controls. Rocky Mountain Power must provide copies of the applicable provisions of the Code, Rules, and Tariff upon the Customer’s request. 9.2 Amendment Additions, deletions or changes to the standard terms and conditions of this Agreement will not be permitted unless they are mutually agreed to by the Parties and permitted by the Rule or permitted by the Commission for good cause shown. The Parties may amend the Agreement by a written instrument duly executed by both Parties in accordance with the provisions of the Rule and applicable Commission Orders and provisions of the laws of the State of Utah. 9.3 No Third Party Beneficiaries The Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 14 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 107 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward other than the Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, or where permitted, their successors in interest and their assigns. 9.4 9.5 Waiver 9.4.1 The failure of a Party to the Agreement to insist, on any occasion, upon strict performance of any provision of the Agreement, will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party. 9.4.2 The Parties may also agree to mutually waive a Section of this Agreement without the Commission’s approval where the Rule so provides. 9.4.3 Any waiver at any time by either Party of its rights with respect to the Agreement shall not be deemed a continuing waiver or a wavier with respect to any other failure to comply with any other obligation, right, duty of the Agreement. Termination or default of this Agreement for any reason by Customer shall not constitute a waiver of the Customer’s legal rights to obtain interconnection from Rocky Mountain Power. Any request for waiver of the Agreement or any provisions thereof shall be provided in writing. Entire Agreement The Agreement, including any supplementary attachments that may be necessary, constitutes the entire Agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of the Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party’s compliance with its obligations under the Agreement. 9.6 Multiple Counterparts This Agreement may be executed in one or more counterparts, whether electronically or otherwise, each of which is deemed an original but all constitute one and the same instrument. 9.7 No Partnership The Agreement will not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 15 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 108 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 9.8 Severability If any provision or portion of the Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (1) such portion or provision shall be deemed separate and independent, (2) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (3) the remainder of the Agreement shall remain in full force and effect. 9.9 Subcontractors Nothing in the Agreement shall prevent a Party from using the services of any subcontractor, or designating a third party agent as one responsible for a specific obligation or act required in the Agreement (collectively “subcontractors”), as it deems appropriate to perform its obligations under the Agreement; provided, however, that each Party will require its subcontractors to comply with all applicable terms and conditions of the Agreement in providing such services and each Party will remain primarily liable to the other Party for the performance of the subcontractor. 9.10 9.9.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under the Agreement. The hiring Party shall by fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made. Any applicable obligation imposed by the Agreement upon the hiring Party shall be equally binding upon, and will be construed as having application to, any subcontractor of such Party. 9.9.2 The obligations under this Article will not be limited in any way by any limitation of a subcontractor’s insurance. Reservation of Rights Rocky Mountain Power shall have the right to make a unilateral filing with the Commission to modify this Interconnection Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule, regulation or any other applicable provision of the Federal Power Act and the Commission’s rules and regulations thereunder, and Customer shall have the right to make a unilateral filing with the Commission to modify this Agreement under any applicable provision of the Federal Power Act and the Commission’s rules and regulations; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the governing authority in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties, except to the extent that the Parties otherwise agree as provided herein. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 16 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 109 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 10. 10.1 Notices and Records General Unless otherwise provided in the Agreement, any written notice, demand, or request required or authorized in connection with the Agreement shall be deemed properly given if delivered in person, delivered by recognized national courier service, sent by first class mail, postage prepaid, or by electronic mail if an electronic mail address is provided below to the person specified below: If to Customer: Customer: ______________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: ________________________________ State: _________________ Zip: ________ Phone: (____) ________________________ Fax: (____) _________________________ Email: __________________________________________________________________ If to Rocky Mountain Power: By Mail: Rocky Mountain Power Attention: Net Metering Group P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 Or By email: [email protected] 10.2 Records Rocky Mountain Power will maintain a record of the Interconnection Agreement and related Attachments, if any, for as long as the interconnection is in place. Rocky Mountain Power will provide a copy of these records to Customer within fifteen (15) Business Days upon written request. 10.3 Billing and Payment Billings and payments shall be sent to the addresses below (complete if different from Section 10.1 above): Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 17 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 110 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If to Customer: Customer: ______________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: _______________________________ State: _______________ Zip: ___________ 10.4 Designated Operating Representative The Parties will designate one operating representative each to conduct the communications that may be necessary or convenient for the administration of the operations provisions of the Agreement. This person will also serve as the point of contact with respect to operations and maintenance of the Party’s facilities (complete if different from Section 10.1 above): Customer’s Operating Representative: Name: __________________________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: _______________________________ State: _______________ Zip: ___________ Phone: (____) _______________________ Fax: (____) __________________________ Email: __________________________________________________________________ 10.5 Changes to the Notice Information Either Party may change this notice information by giving five (5) business days written notice prior to the effective date of the change. Article 11. Signatures IN WITNESSETH WHEREOF, the Parties have caused the Agreement to be executed by their respective duly authorized representatives. For the Customer: For Rocky Mountain Power: By: _____________________________ By: _____________________________ Name: ___________________________ Name: ___________________________ Title: ____________________________ Title: ____________________________ Date: ____________________________ Date: ____________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 18 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 111 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Appendix A Minor Modifications Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 19 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 112 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward APPENDIX B ROCKY MOUNTAIN POWER UTAH NET METERING APPLICATION LEVEL 2 REVIEW CAPACITY OF 2 MW OR LESS Section 1: For Rocky Mountain Power Use Only Customer Name: _________________________________________________________________________ Service Address: _________________________________________________________________________ City, State, Zip: __________________________________________________________________________ Customer Account No. & Request No.:________________________________________________________ Interconnection Agreement Acknowledgement (Date): ___________________________________________ Application fee: $__________________ Date Paid: _____________________________________________ Section 2: To Be Completed By Customer A. Applicant Information Name: ___________________________________________________________________________ Mailing Address: ___________________________________________________________________ City: __________________________________________State: _________ Zip Code: ____________ Site Street Address (if different from above): _____________________________________________ City: __________________________________________State: __________ Zip Code: ___________ Daytime Phone: (_____) ________________________ Fax: (_____) __________________________ Email: ____________________________________________________________________________ B. System Information System Type: Solar Wind Hydro Other (Specify): _________________________ Generation Nameplate Capacity: ______________ kW (Combine DC total of wind turbines, solar panels, etc. or AC rating if an inverter is not utilized) Inverter Manufacturer: ___________ Model: _______ Number of Inverters: _____ Rating: _____ kW Manufacturer Nameplate Inverter Total AC Capacity Rating: _________ kW Inverter(s): Single Phase Three Phase Multiple Single Phase Connected on Poly-phase (three phase) system (Attach Inverter and Panel Technical Specifications Sheets) Type: Induction Type of Service: Inverter Single Phase Synchronous __________________Other Three Phase Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 20 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 113 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If Three Phase Transformer: Indicate Type: Wye Delta Indicate Voltage and Number of Service Wires: 120/208 Volts, 4 wire 120/240 Volts, 4 wire 277/480 Volts, 4 wire Other ___________ ________________________________________________________________________________ Other Information:_________________________________________________________________ ________________________________________________________________________________ Self Contained Location: ___________________________________________________________ Outdoor Manual AC Disconnect Switch Location (show Disconnect Switch and Rocky Mountain Power Meter Location on Site Plan), unless exempt under Utah Administrative Rule 746-312-4(2): ________________________________________________________________________________ System Location (show all protective devices on One Line Diagram):_________________________ Will the net metering facility interconnect to a switchgear? Yes No Customer must post metal or plastic engraved signage indicating on-site generation in accordance with the National Electric Code. The signage must be permanent and located adjacent to the meter base and disconnect switch noting “Parallel Generation on Site” and identifying the manual disconnect switch with the words “Manual Disconnect for Parallel Generation.” _____ (Initial Here) One Line Diagram Attached: Installation Test Plan attached: Yes Yes No Site Plan Attached: Yes No No Anticipated Operational Date of Net Metering Facilities: __________________________________ (Rocky Mountain Power must be notified at least ten (10) business days prior to starting operation.) Net metering facility available fault duty at the point of common coupling:_____________________ (A Rocky Mountain Power Engineer may contact you for additional information) Electrical Inspection approval date (attach copy or provide to utility when obtained):_____________ C. Application Fees $ 750.00 + $ __________ $ __________ Base $1.050 x ____ kW of Net Metering Facility’s capacity TOTAL APPLICATION FEE D. Additional Information 1. An equipment package will be considered certified for interconnected operation if it has been submitted by a manufacturer to a nationally recognized testing and certification laboratory, and has been tested and listed by the laboratory for continuous interactive operation with an electric Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 21 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 114 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 2. 3. 4. 5. 6. 7. distribution system in compliance with the applicable IEEE and UL 1741 standards, as set forth in the Rule. If the equipment package has been tested and listed as an integrated package, which includes a generator or other electric source, the equipment package will be deemed certified, and Rocky Mountain Power will not require any further design review, testing or additional information. If the equipment package includes only the interface components (switchgears, inverters, or other interface devices), an interconnection applicant must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and consistent with the testing and listing specified for the package. If the generator or electric source being utilized with the equipment package is consistent with the testing and listing performed by the nationally recognized testing and certification laboratory, the equipment package will be deemed certified and Rocky Mountain Power will not require further design review, testing or additional equipment. A net metering facility must be equipped with metering equipment that can measure the flow of electricity in both directions, comply with ANSI C12.1 standards and Rule 746-312. Rocky Mountain Power will install the required metering equipment at Rocky Mountain Power’s expense. Rocky Mountain Power will not be responsible for the cost of determining the rating of equipment owned by the customer-generator or of equipment owned by other local customers. Customer may operate the Net Metering Facility temporarily for testing and obtaining inspection approval. Customer shall not operate the Net Metering Facility in continuous parallel without an executed Interconnection and Net Metering Service Agreement, and approval from Rocky Mountain Power. Customer will pay to Rocky Mountain Power at the time of application the applicable Application fee of $5075.00 plus $1.00 50 per kilowatt of the net metering facility’s capacity. Customer-generator will pay to Rocky Mountain Power all costs of minor modifications or additional review as set forth in Rule 746-312 prior to commencement of work. E. Customer Acknowledgment I certify that the information provided in this Application is true. I will provide Rocky Mountain Power a copy of the signed government electrical inspection approval document when obtained, if not already provided with this Application. I agree to abide by the terms of this Application and I agree to notify Rocky Mountain Power thirty (30) days prior to modification or replacement of the System’s components or design. Any such modification or replacement may require submission of a new Application to Rocky Mountain Power. I agree not to operate the Net Metering Facility in parallel with Rocky Mountain Power, except temporarily for testing and obtaining inspection approval, until this Application is approved by Rocky Mountain Power, until this agreement is signed by both parties, and until I have provided Rocky Mountain Power with at least five (5) days notice of anticipated start date. Customer or Applicant Signature & Date: ____________________________________ Please send completed application to: Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 22 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 115 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 or Please scan the completed application and email [email protected] Section 3. To be completed by System Installer Installation Contractor Information/Hardware and Installation Compliance Installation Contractor (Company Name): ______________________________________________________ Contractor's License No.: _______________________________ Proposed Installation Date: _____________ Mailing Address: _________________________________________________________________________ City: ______________________________________________ State: _________ Zip Code: _____________ Daytime Phone: ________________ Fax: _____________ Email: __________________________________ For inverter-controlled system, meets IEEE Standards and UL 1741 Inverters, Converters, and Controllers for use in Independent Power Systems as set forth in the Rule: Yes No For induction or synchronous device, meets IEEE Standard 1547 and IEEE/ANSI Standard C37.90 Yes No requirements as set forth in the Rule: If Photovoltaic System, System must be installed in compliance with IEEE Standards, Recommended Practice for Utility Interface of Photovoltaic Systems. All System types must be installed in compliance with applicable requirements of local electrical codes, Rocky Mountain Power and the National Electrical Code® (NEC) and must use an anti-islanding inverter. The System must include a manual, lockable, load-break (disconnect) switch, unless exempt under Rule 746312-4(2), accessible at all times to Rocky Mountain Power personnel and located within 10 feet of Rocky Mountain Power’s meter. The disconnect switch may be located more than 10 feet from Rocky Mountain Power’s meter if permanent instructions are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve the location of the disconnect switch prior to the installation of the net metering facility. If the Net Metering Facility is designed to provide uninterruptible power to critical loads, either through energy storage, back-up generator, or the generation source, the Net Metering Facility will include a parallel blocking scheme for this backup source. This function may be integral to the inverter manufacturer’s packaged system. Does the Net Metering Facility include a parallel blocking scheme: Yes No Signed (Contractor): ______________________________________ Date: _____________ Name (Print): _______________________________________________ Section 4. To be completed by Rocky Mountain Power: Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 23 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 116 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward A. If approving the application: Rocky Mountain Power does not, by approval of this Application, assume any responsibility or liability for damage to property or physical injury to persons. Further, this Application does not constitute a dedication of the owner's System to Rocky Mountain Power electrical system equipment or facilities. Customer entered into an Interconnection and Net Metering Service Agreement with Rocky Mountain Power on the ____ day of _____, 20__. Customer satisfactorily passed Witness Tests on the ___ day of ________, 20___ (Rocky Mountain Power may waive Witness Tests at its option; if tests are waived initial here ______). This Application is approved by Rocky Mountain Power on this _____ day of ______________, 20__ Rocky Mountain Power Representative Name (Print): ______________________________________ Signed (Rocky Mountain Power Representative): __________________________ Date: ___________ B. If denying the application: This application is denied by Rocky Mountain Power on this _____ day of ____________, 20__ for the following reason(s):__________________________________________________________________ Rocky Mountain Power Representative Name (Print): ______________________________________ Signed (Rocky Mountain Power Representative): ________________________ Date:____________ Applicant may submit a new application for Level 3 review. Section 5. To be completed by Rocky Mountain Power Meterman Customer Account No. __________________________________ Site ID No.: _______________________ Served from Facility Point No.: ________________________________ New Net Meter No.: ____________________________ Date net meter installed: ______________________ Manual disconnect location and permanent signage in place unless system is less than 10 kW: Yes No Signature/Title: _________________________________________ Date: ___________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Level 2 Page 24 of 24 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 117 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward We appreciate your interest in Rocky Mountain Power’s net metering program. Before purchasing any net metering equipment, we recommend you review the requirements for interconnecting a net metering system to Rocky Mountain Power’s electrical distribution system. The requirements are found in the Interconnection Agreement. To complete the process for a net metering interconnection, please follow the steps below: 1. Complete and submit the following to Rocky Mountain Power: Interconnection Agreement including the Application for Net Metering Interconnection The inverter specification sheet For systems larger than 10 kW, a simple one-line diagram showing The location of Rocky Mountain Power’s meter The location of the disconnect switch 2. Rocky Mountain Power will review your agreement and application and send you a written notification of approval either by mail or e-mail 3. Install the net metering system after you receive the written approval of your Interconnection Agreement and Application for Net Metering from Rocky Mountain Power 4. Obtain an inspection of your net metering system by the local city or county electrical inspector 5. Submit the electrical inspector’s approval to Rocky Mountain Power 6. Turn on your net metering system after Rocky Mountain Power provides you written notification the interconnection work has been completed and the net meter installed Return completed documents to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, Utah 84125-0308 Or Email to: [email protected] Thank you for your interest in the net metering program. If you have questions, please call us toll free at 1-888-221-7070 and ask for a net metering specialist. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 1 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 118 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Service ID#:___________ Request #: ___________ INTERCONNECTION AND NET METERING SERVICE AGREEMENT FOR NET METERING FACILITY LEVEL 3 INTERCONNECTION UP TO 2 MW NAMEPLATE CAPACITY This Interconnection and Net Metering Service Agreement (“Agreement”) is made and entered into this ____ day of _____________, 20___, by and between ____________________________, an electric customer (“Customer”), and PacifiCorp, dba Rocky Mountain Power (“Rocky Mountain Power”), a Corporation organized and existing under the laws of the State of Oregon. Customer and Rocky Mountain Power each may be referred to as a “Party”, or collectively as the “Parties”. Recitals: Whereas, Customer has installed or intends to install a Net Metering Facility qualifying for “Net Metering,” Utah Rate Schedule No. 135A (“Schedule 135A”), as given in Rocky Mountain Power’s currently effective tariff as filed with the Public Service Commission of Utah (“Commission”), on or adjacent to Customer’s premises located at ____________________________, Utah, for the purpose of generating electric energy; Whereas, the Net Metering rate schedule may be amended from time to time, and the Public Service Commission may alter the charge, credit, and ratemaking structure applicable to Net Metering customers pursuant to Utah Code § 54-15-105.1; Whereas, Customer represents to Rocky Mountain Power that Customer either owns or leases its Net Metering Facility qualifying for Schedule 135A, or meets the exemption requirements set forth in Utah Code § 54-2-1.16(d) because it is a county, municipality, city, town, other political subdivision, local district, special service district, state institution of higher education, school district, charter school, or any entity within the state system of public education; or an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3) operated for religious, charitable, or educational purposes that is exempt from federal income tax and able to demonstrate its tax-exempt status; Whereas, Customer desires to interconnect the Net Metering Facility with Rocky Mountain Power’s distribution system consistent with the Application completed by Customer on _____________ ____, 20___, as described in as described in Appendix C (“Application”) of this Agreement; and Whereas, Customer, using its Net Metering Facility, intends to offset part or all of its electrical requirements supplied by Rocky Mountain Power. Now, therefore, in consideration of and subject to the mutual covenants contained herein, the Parties agree as follows: Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 2 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 119 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 1. Scope and Limitations of Agreement 1.1 Scope The Agreement shall be used for all Level 3 Applications according to the procedures set forth in Utah Administrative Rule R746-312, as may be amended from time to time (“Rule”). The Rule can be viewed at www.psc.utah.gov. The Agreement establishes standard terms and conditions approved by the Public Service Commission of Utah (“Commission”) under which the Net Metering Facility with an Electric Nameplate Capacity of 2 MW or smaller as described in Appendix C will interconnect to, and operate in parallel with, Rocky Mountain Power’s system. 1.2 Definitions Terms with initial capitalization, when used in this Agreement, shall have the meanings indicated or as specified in the Rule Section R746-312-2 and, to the extent this Agreement conflicts with the Rule, the Rule shall take precedence. 1.3 Other Agreements Nothing in this Agreement is intended to affect any other agreement between Rocky Mountain Power and Customer or any other Interconnection Customer. However, in the event that the provisions of the Agreement are in conflict with the provisions of any Rocky Mountain Power Tariff, as may be amended from time to time the Rocky Mountain Power Tariff, as may be amended from time to time, shall control. 1.4 Responsibilities of the Parties 1.4.1 The Parties shall perform all obligations of the Agreement in accordance with all applicable laws and regulations. 1.4.2 Customer will construct, own, operate, test, and maintain its Net Metering Facility in accordance with the Agreement, IEEE Standards (available at the following link: http://standards.ieee.org/index.html), National Electric Code Standards (available for purchase at http://standards.ieee.org/faqs/NESCFAQ.html#q8), Utah state building codes, the Rule (available at the following link: http://www.dopl.utah.gov/programs/ubc/), and other applicable standards required by the Commission, as may be amended from time to time. 1.4.3 Each Party shall be responsible for the safe installation, maintenance, repair and condition of their respective lines and equipment on their respective sides of the Point of Common Coupling. Each Party shall provide Interconnection Facilities that adequately protect the other Party’s facilities, personnel and other persons from damage and injury. The allocation of responsibility for the design, installation, operation, maintenance and ownership of Interconnection Facilities is prescribed in the Rule, including but not necessarily limited to R746-312-4. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 3 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 120 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.4.4 Customer is responsible for protecting the generating equipment, inverters, protective devices, and other system components from damage from the normal and abnormal conditions and operations that occur on Rocky Mountain Power’s system in delivering and restoring power; and is responsible for ensuring that the Net Metering Facility equipment is inspected, maintained, and tested in accordance with the manufacturer’s instructions to ensure that it is operating correctly and safely. 1.4.5 Customer shall obtain Rocky Mountain Power’s approval of the Application prior to commencing parallel operation of its interconnected Net Metering Facility. 1.4.6 Customer is responsible for all costs associated with its Net Metering Facility. 1.5 Parallel Operation and Maintenance Obligations Once the Net Metering Facility has been authorized to commence parallel operation by an approved Application, and execution of this, Customer will abide by all written provisions for operations and maintenance as required by the Rule and Rocky Mountain Power’s tariffs, including but not necessarily limited to R746-312-4 and Schedule 135A or its successor tariff(s). 1.6 Results of System Impact Study Rocky Mountain Power completed a System Impact Study on_____________ ____, 20___. The System Impact Study shows the following minor modifications or substantial modifications (Rocky Mountain Power to circle appropriate option) are necessary to Customer’s Net Metering Facility prior to interconnecting with Rocky Mountain Power’s system: Description of necessary minor modifications_____________________________________________________________ __________________________________________________________. Rocky Mountain Power estimates, in good faith, that these minor modifications/ substantial modifications (Rocky Mountain Power to circle appropriate option) will cost $__________. This is a non-binding estimate that will provide break down of costs:___________________________________________________________________ ___________________________________________________________ Customer shall pay the actual installed cost of the minor modifications or substantial modifications needed to interconnect the Net Metering Facility to Rocky Mountain Power’s system. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 4 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 121 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.7 Results of Interconnection Facilities Study << to be filled in upon completion of Interconnection Facilities Study, if one is conducted. Otherwise, the text should read “This Section intentionally left blank.”>> Rocky Mountain Power completed a Facilities Study on _____________ ____, 20___. The Facilities Study shows the following equipment, engineering, procurement and construction work (including overheads) are necessary to implement the conclusion of the System Impact Study for Customer’s Net Metering Facility to safely interconnect to Rocky Mountain Power’s system and the time required to build and install those facilities: Rocky Mountain Power estimates, in good faith, that these modifications will cost $______. This is a non-binding estimate for provide break down of costs____________________________________________________________________ ___________________________________________________________. Customer shall pay the actual installed cost of the facilities needed to interconnect as identified in the Facilities Study. Rocky Mountain Power estimates these facilities can be installed by_____________ ____, 20___. 1.8 Metering Rocky Mountain Power shall install, own and maintain, at its sole expense, a kilowatthour meter(s) and associated equipment to measure the flow of energy in each direction, unless otherwise authorized by the Commission. Customer shall provide, at its sole expense, adequate facilities, including, but not limited to, a current transformer enclosure (if required), meter socket(s) and junction box, for the installation of the meter and associated equipment. Customer hereby consents to the installation and operation by Rocky Mountain Power and at Rocky Mountain Power’s expense, of one or more additional meters to monitor the flow of electricity in each direction. Such meters shall be located on the premises of Customer. 1.9 Power Quality Customer will design its Net Metering Facility to maintain a composite power delivery at continuous rated power output at the Point of Common Coupling that meets the requirements set forth in IEEE 1547, as required by the Rule, R746-312-4. 1.10 Net Metering Facility Inspection 1.10.1 Building Code Inspection Prior to operation in parallel with Rocky Mountain Power’s system, the Net Metering Facility must be inspected by a local building code official to ensure compliance with applicable local codes. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 5 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 122 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 1.10.2 Inspection by Rocky Mountain Power Rocky Mountain Power may inspect the Net Metering Facility and its component equipment, and the documents necessary to ensure compliance with the Rule. Customer shall notify Rocky Mountain Power prior to placing the Net Metering Facility in service, and Rocky Mountain Power shall have the right to have personnel present on the in-service date. If the Net Metering Facility is subsequently modified in order to increase its gross power rating, Customer must notify Rocky Mountain Power by submitting a new application specifying the modifications in accordance with the level of review required for that application. 1.11 Anticipated Start Date Customer must include an anticipated start date for operation of its Net Metering Facility in the Application. 1.12 Net Metering Facility Testing and Maintenance Customer shall conduct maintenance and testing as set forth in the Rule, including but not necessarily limited to R746-312-14. 1.12.1 Customer shall conduct any manufacturer-recommended testing or maintenance at its expense. 1.12.2 Customer shall conduct any post-installation testing, at its expense, necessary to ensure compliance with IEEE standards as set forth in the Rule or to ensure safety. This includes replacing a major equipment component that is different from the originally installed model. 1.12.3 When Customer performs maintenance or testing in accordance with the Rule, it must retain written records documenting the maintenance and results of the testing for three (3) years. 1.13 1.12.4 Rocky Mountain Power shall have the right to inspect Customer’s Net Metering Facility after interconnection approval is granted, at reasonable hours and with reasonable prior notice to Customer. If Rocky Mountain Power discovers that the Net Metering Facility is not in compliance with the Rule, Rocky Mountain Power may require Customer to disconnect the Net Metering Facility until compliance is achieved. Removal of Facility Customer shall immediately notify Rocky Mountain Power if Customer removes or ceases to operate the Net Metering Facility. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 6 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 123 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 2. 2.1 Review, Inspection, Testing, Disconnect Switch and Signage, and Right of Access Review After determining Customer’s interconnection request is complete, in accordance with the Rule, R746-312-10, Rocky Mountain Power will conduct meetings and studies and provide estimates set forth in the Rule, R746-312-10. Upon completion of the required studies and receipt of agreement of the Customer to pay for required interconnection facilities and upgrades, Rocky Mountain Power will approve the Interconnection request. 2.2 Equipment Testing and Inspection Customer must notify Rocky Mountain Power of the anticipated testing and inspection date of the Net Metering Facility at least ten (10) business days prior to testing, either through submittal of the Agreement, a notice of completion, or in a separate notice. Within ten (10) business days after receipt of such required documentation, Rocky Mountain Power will conduct any required inspection or witness test of the Net Metering Facility, set the new meter if required, approve the Interconnection, and provide written notification to the Customer of the final interconnection authorization/approval and that the generating facility is authorized/approved for parallel operation. If Rocky Mountain Power and Customer, by mutual agreement, select a date for the required inspection and/or witness testing which would prevent Rocky Mountain Power from providing final written notice within ten (10) days of receipt of required documentation as specified above, and if the Net Metering Facility satisfactorily passes the required inspection and/or witness tests, Rocky Mountain Power shall notify Customer within three (3) business days after the tests and/or inspections that either the interconnection is approved and the Net Metering Facility may begin operation or the interconnection facilities study identified necessary construction that has not been completed, the date upon which the construction will be completed and the date when the Net Metering Facility may begin operation or state any other reason why the commissioning tests are not satisfactory. If the witness tests are not satisfactory, Customer must resolve any deficiencies within sixty (60) business days or other time period as mutually agreed by the Parties. 2.3 Disconnect Switch and Signage Customer shall comply with the Rule regarding disconnect switches, R746-312-4. The disconnect switch may be located more than 10 feet from the public utility meter if permanent instructions in letters of appropriate size are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve in writing the location of the disconnect switch prior to the installation of the Net Metering Facility. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 7 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 124 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 2.4 Right of Access As provided in the Rule, R746-312-4, Rocky Mountain Power shall have access to any required disconnect switch at the Net Metering Facility at all times. Rocky Mountain Power will provide reasonable notice to Customer when possible prior to using its right of access. Additionally, as provided in Rocky Mountain Power Utah Rule 6, or its successor tariff, Rocky Mountain Power shall have access to the metering equipment. Article 3. 3.1 Effective Date, Term, Termination and Disconnection Effective Date The Agreement shall become effective upon execution by the Parties. 3.2 Term of Agreement The Agreement will become effective on the Effective Date and will remain in effect unless terminated in accordance with provisions of this Agreement, or Order by the Commission. 3.3 Termination No termination will become effective until the Parties have complied with all applicable laws and clauses of this Agreement applicable to such termination. 3.3.1 Customer may terminate this Agreement at any time by giving Rocky Mountain Power twenty (20) business days written notice. 3.3.2 Either Party may terminate this Agreement after default pursuant to Article 5.4 of this Agreement. 3.3.3 The Commission may Order termination of this Agreement. 3.3.4 Upon termination of this Agreement, Customer shall disconnect the Net Metering Facility from Rocky Mountain Power’s system. The termination of this Agreement will not relieve either Party of its liabilities and obligations, owed or continuing at the time of termination. If Customer removes the Net Metering equipment at the Net Metering Facility or ceases to operate its Net Metering Facility at the premise listed in the Application, this Agreement will be immediately terminated. 3.3.5 3.3.6 The provisions of this Article shall survive termination or expiration of this Agreement. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 8 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 125 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 3.4 Temporary Disconnection 3.4.1 Rocky Mountain Power may temporarily disconnect the Net Metering Facility from Rocky Mountain Power’s system for so long as reasonably necessary without prior notice to Customer in the event one or more of the following conditions or events occurs: 3.4.1.1 Emergencies or to address maintenance requirements for Rocky Mountain Power’s system. 3.4.1.2 Hazardous conditions existing on Rocky Mountain Power’s system which may affect the safety of the general public or Rocky Mountain Power employees due to the operation of the Net Metering Facility or protective equipment as determined by Rocky Mountain Power. 3.4.1.3 Adverse electrical effects on the electrical equipment of Rocky Mountain Power’s other electric customers caused by the Net Metering Facility as determined by Rocky Mountain Power. 3.4.2 In the event that no disconnect switch is installed, Rocky Mountain Power may physically disconnect all service to the Customer or all service to the premises where the Net Metering Facility is located, or both. 3.4.3 To the extent practicable, Rocky Mountain Power will give prior notice of any temporary disconnection of the Net Metering Facility. If Rocky Mountain Power is unable to give prior notice, Rocky Mountain Power will provide notice including an explanation of the condition necessitating the disconnection at the time of disconnection. 3.4.4 Under emergency conditions, Rocky Mountain Power shall notify Customer promptly when Rocky Mountain Power becomes aware of an emergency condition that may reasonably be expected to affect the Net Metering operation. Customer shall notify Rocky Mountain Power promptly when it becomes aware of an emergency condition that may reasonably be expected to affect Rocky Mountain Power’s system. To the extent the information is known, the notification shall describe the emergency condition, the extent of any damage or deficiency, the expected effect on the operation of both Parties’ facilities and operations, the anticipated duration, and the necessary corrective action. 3.4.5 Customer shall make reasonable efforts to provide notice of interruption of Net Metering Facility operation for safety and/or reliability reasons prior to the interruption unless an emergency occurs. Emergency interruptions or temporary terminations are subject to Section 3.4.4 above. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 9 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 126 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 3.4.6 Rocky Mountain Power shall use reasonable efforts to provide Customer with prior notice of forced outages to effect immediate repairs to Rocky Mountain Power’s system. If prior notice is not given, Rocky Mountain Power, shall, upon request, provide Customer written documentation after the fact explaining the circumstances of the disconnection. 3.4.7 Customer must provide Rocky Mountain Power notice and obtain Rocky Mountain Power’s written approval before Customer may modify its Net Metering Facility in order to increase the electric output of the Net Metering Facility. If Customer makes any material change without prior written authorization of Rocky Mountain Power, Rocky Mountain Power will have the right to temporarily disconnect the Net Metering Facility until Rocky Mountain Power has had an opportunity to review the change(s) made to determine whether they are acceptable. If any system modifications or other equipment installations are deemed necessary by Rocky Mountain Power to accommodate the modified Net Metering Facility, Customer shall submit the appropriate net metering application at that time. 3.4.8 The Parties shall cooperate with each other to restore the Net Metering Facility, Interconnection Facilities, and Rocky Mountain Power’s system to their normal operating state as soon as reasonably practicable following any disconnection pursuant to this section. Article 4. 4.1 Cost Responsibility Application Fee Customer shall bear the cost of any Application fee provided for in the Rule, R746-31213(2), or as otherwise approved by the Commission. Customer shall remit payment with the Application as calculated in Appendix C, the Application, Section 2.C. 4.2 Net Metering Facility and Interconnection Equipment Customer shall be responsible for all costs, including overheads, associated with procuring, installing, owning, operating, maintaining, repairing, and replacing its Net Metering Facility, any associated equipment package, and any associated interconnection equipment or interconnection facilities required to be installed on Customer’s side of the Point of Common Coupling as detailed in the results of the System Impact Study or Facilities Study, or both. 4.3 Minor Modifications This section shall apply if the System Impact Study performed pursuant to Section 1.6 above shows that minor modifications to the electric distribution system are required to enable the interconnection to be made consistent with safety, reliability and power quality standards applicable to Level 3 interconnection reviews. The Customer shall pay for the Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 10 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 127 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward cost to procure, install, and construct, operate, maintain, repair and replace any such minor modifications. A description of the minor modifications may be found in Appendix A. The cost of the minor modifications as described on Appendix A shall be $_______. Customer shall remit payment for minor modifications prior to Rocky Mountain Power commencing the work required for the minor modifications. 4.4 4.5 Substantial Modifications 4.4.1 This section shall apply if the System Impact Study performed pursuant to Section 1.6 above or the Facilities Study performed pursuant to Section 1.7 above, or both, shows that substantial modifications to the electric distribution system are required to enable the interconnection to be made consistent with safety, reliability and power quality standards applicable to Level 3 interconnection reviews. The Customer shall pay for the cost to procure, install, and construct, operate, maintain, repair and replace any such substantial modifications. A description of the substantial modifications may be found in Appendix B. The cost of the substantial modifications as described on Appendix B shall be $_______. 4.4.2 Before beginning substantial modifications to accommodate the interconnection of the Net Metering Facility to Rocky Mountain Power’s system, Rocky Mountain Power may require that Customer pay a deposit of not more than 50% of the estimated cost of procuring, installing and constructing equipment and facilities to be procured, installed or constructed by Rocky Mountain Power. Payment Rocky Mountain Power may require progress payments from Customer or Rocky Mountain Power may wait until construction and installation of all equipment and facilities are complete and the total actual cost of such equipment and facilities has been established and then provide Customer with a statement indicating whether actual cost was more or less than the deposit paid by Customer-Generator. If actual costs exceed the deposit, Rocky Mountain Power will invoice Customer-Generator for the balance and Customer-Generator shall pay any such invoice within 30 days of receipt. If actual costs are less than the deposit, Rocky Mountain Power will refund the difference to CustomerGenerator. Article 5. 5.1 Billing Monthly Billing The electric service charge shall be computed in accordance with the monthly billing in the currently applicable standard service tariff. Customer will be compensated for net excess energy in accordance with Schedule 135A or its successor tariff(s). Customer will be transitioned to any successor tariff immediately upon approval of that tariff by the Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 11 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 128 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Public Service Commission and will be subject to any charge, credit, or ratemaking structure implemented therein. 5.2 Special Conditions Customer must comply with the special conditions found in Schedule 135A or its successor tariff(s). 5.3 Aggregating Meters Aggregating Meters is allowed if certain conditions are met under the Rule, R746-312-5. Customer designates the following meters for aggregation: _______________________. In the event that the Net Metering Facility supplies more electricity to Rocky Mountain Power than the Customer uses from Rocky Mountain Power, Rocky Mountain Power will apply any credits to the next monthly bill in accordance with Utah Code § 54-15-104 and the Rule, R746-312-15. Customer shall designate the order in which to apply any credits in accordance with the Rule. <<If customer does not want to aggregate, insert “N\A” in the gray box.>> Article 6. 6.1 Assignment, Liability, Indemnity, Force Majeure, Consequential Damages and Default Assignment This Agreement may be assigned by either Party with the consent of the other Party. A Party’s consent to an assignment may not be unreasonably withheld. The assigning Party must give the non-assigning Party written notice of the assignment at least fifteen days (15) before the effective date of the assignment. The non-assigning Party must submit its objection to the assignment, if any, to the assigning Party in writing at least 5 business days before the effective date of the assignment. If a written objection is not received within that time period, the non-assigning party is deemed to consent to the assignment. 6.1.1 Exceptions to the Consent Requirement 6.1.1.1 Either Party may assign the Agreement without the consent of the other Party to any affiliate (including a merger or acquisition of the Party with another entity), of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.1.2 Customer-Generator is entitled to assign the Agreement, without the consent of Rocky Mountain Power, for collateral security purposes to aid in obtaining financing for the Net Metering Facility. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 12 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 129 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 6.1.1.3 For Net Metering systems that are integrated into a building facility, the sale of the building or property will result in the automatic assignment of this Agreement to the new owner who will be responsible for complying with the terms and conditions of this Agreement. 6.1.2 6.2 Any attempted assignment that violates this Article is void and ineffective. Assignment does not change or eliminate a Party’s obligations under this Agreement. An assignee is responsible for meeting the same obligations as the assigning Party. Limitation of Liability and Consequential Damages Each Party’s liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in its performance of this Agreement, is limited to the amount of direct damage actually incurred. Neither Party is liable to the other Party for any indirect, special, consequential, or punitive damages. 6.3 Indemnification Customer shall hold harmless and indemnify Rocky Mountain Power for all loss to third parties resulting from the operation of the Net Metering Facility, except when the loss occurs due to the negligent actions of Rocky Mountain Power. Rocky Mountain Power shall hold harmless and indemnify Customer for all loss to third parties resulting from the operation of Rocky Mountain Power’s system, except where the loss occurs due to the negligent actions of Customer. 6.4 Force Majeure 6.4.1 As used in this Agreement, a Force Majeure Event shall mean “any act of God, labor disturbance, act of the public enemy, war, acts of terrorism, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment through no direct, indirect, or contributory act of a Party, any order, regulation, or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party’s control. A Force Majeure Event does not include an act of negligence or wrongdoing.” 6.4.2 If a Force Majeure Event prevents a Party from fulfilling any obligations under this Agreement, the Party affected by the Force Majeure Event (“Affected Party”) shall promptly notify the other Party of the existence of the Force Majeure Event. The notification must specify in reasonable detail the circumstances of the Force Majeure Event, the expected duration, and the steps that the Affected Party is taking to mitigate the effects of the event on its performance, and if the initial notification was verbal, it should be promptly followed up with a written notification. The Affected Party shall keep the other Party informed on a Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 13 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 130 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward continuing basis of developments relating to the Force Majeure Event until the event ends. The Affected Party will be entitled to suspend or modify its performance of obligations under this Agreement (other than the obligation to make payments) only to the extent that the effect of the Force Majeure Event cannot be reasonably mitigated. The Affected Party will use reasonable efforts to resume its performance as soon as possible. The Parties shall immediately report to the Commission should a Force Majeure Event prevent performance of an action required by Rule that the Rule does not permit the Parties to mutually waive. 6.5 Default 6.5.1 A Party is in default if the Party fails to perform an obligation required under this Agreement (other than the payment of money). A Party is not considered in default of this agreement if the failure to perform an obligation is caused by an act or omission of the other Party or is the result of a Force Majeure as defined in this Agreement. 6.5.2 Upon a default, the non-defaulting Party must give written notice of the default to the defaulting party. The defaulting party has sixty (60) calendar days from the receipt of the written default notice to cure the default. If the default is not capable of cure within the 60-day period, the defaulting Party must begin to cure the default within twenty (20) calendar days after receipt of the written default notice, and must continuously and diligently complete the cure within six (6) months of the receipt of the notice. 6.5.3 If a default is not cured as provided for in 6.5.2, then the non-defaulting Party is entitled to terminate the Agreement by written notice at any time until cure occurs. If the non-defaulting Party chooses to terminate this Agreement, the termination provisions in Article 3.3 apply. Alternately, the non-defaulting Party is entitled to seek dispute resolution with the Commission in lieu of termination. Article 7. Insurance Additional liability insurance is not required as a part of the Agreement if the Net Metering Facility is in compliance with the provisions of the Application approval, the Agreement and the standards contained in Utah Code § 54-15-106. Article 8. Dispute Resolution 8.1 Nothing in this Article shall restrict the rights of any Party to file a Complaint with the Commission under relevant provisions of the Rule and applicable state law. 8.2 Pursuit of dispute resolution may not affect Customer with regard to consideration of an Interconnection Request or Customer’s queue position. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 14 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 131 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Article 9. 9.1 Miscellaneous Governing Law, Regulatory Authority and Rules The validity, interpretation, and enforcement of this Agreement is governed by the laws of the State of Utah. If any provision of this Agreement conflicts with any applicable provision, as may be amended from time to time, of the Utah Code (“Code”), Utah Administrative Rules (“Rules”), or Rocky Mountain Power’s Tariffs (“Tariff”), then the applicable provision of the Code, Rules, or Tariff controls. Rocky Mountain Power must provide copies of the applicable provisions of the Code, Rules, and Tariff upon the Customer’s request. 9.2 Amendment Additions, deletions or changes to the standard terms and conditions of this Agreement will not be permitted unless they are mutually agreed to by the Parties and permitted by the Rule or permitted by the Commission for good cause shown. The Parties may amend the Agreement by a written instrument duly executed by both Parties in accordance with the provisions of the Rule and applicable Commission Orders and provisions of the laws of the State of Utah. 9.3 No Third Party Beneficiaries The Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, or where permitted, their successors in interest or their assigns. 9.4 Waiver 9.4.1 The failure of a Party to the Agreement to insist, on any occasion, upon strict performance of any provision of the Agreement, will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party. 9.4.2 The Parties may agree to mutually waive a Section of this Agreement without the Commission’s approval in accordance with the Rule. 9.4.3 Any waiver at any time by either Party of its rights with respect to the Agreement shall not be deemed a continuing waiver or a wavier with respect to any other failure to comply with any other obligation, right, or duty of the Agreement. Termination or default of this Agreement for any reason by Customer shall not constitute a waiver of the Customer’s legal rights to obtain interconnection from Rocky Mountain Power. Any request for waiver of the Agreement or any provisions thereof shall be provided in writing. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 15 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 132 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 9.5 Entire Agreement The Agreement, including any supplementary attachments that may be necessary, constitutes the entire Agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of the Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party’s compliance with its obligations under the Agreement. 9.6 Multiple Counterparts This Agreement may be executed in one or more counterparts, whether electronically or otherwise, each of which is deemed an original but all constitute one and the same instrument. 9.7 No Partnership The Agreement will not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party. 9.8 Severability If any provision or portion of the Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (1) such portion or provision shall be deemed separate and independent, (2) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (3) the remainder of the Agreement shall remain in full force and effect. 9.9 Subcontractors Nothing in the Agreement shall prevent a Party from using the services of any subcontractor, or designating a third party agent as one responsible for a specific obligation or act required in the Agreement (collectively subcontractors), as it deems appropriate to perform its obligations under the Agreement; provided, however, that each Party will require its subcontractors to comply with all applicable terms and conditions of the Agreement in providing such services and each Party will remain primarily liable to the other Party for the performance of the subcontractor. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 16 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 133 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 9.10 9.9.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under the Agreement. The hiring Party shall be fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made. Any applicable obligation imposed by the Agreement upon the hiring Party shall be equally binding upon, and will be construed as having application to, any subcontractor of such Party. 9.9.2 The obligations under this Article will not be limited in any way by any limitation of a subcontractor’s insurance. Reservation of Rights Rocky Mountain Power shall have the right to make a unilateral filing with the Commission to modify this Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule, regulation or any other applicable provision of the Federal Power Act and the Commission’s rules and regulations thereunder, and Customer shall have the right to make a unilateral filing with Commission to modify this Agreement under any applicable provision of the Federal Power Act and the Commission’s rules and regulations; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the Commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties, except to the extent that the Parties otherwise agree as provided herein. Article 10. 10.1 Notices and Records General Unless otherwise provided in the Agreement, any written notice, demand, or request required or authorized in connection with the Agreement shall be deemed properly given if delivered in person, delivered by recognized national courier service, sent by first class mail, postage prepaid, or by electronic mail if an electronic mail address is provided below to the person specified below: If to Customer: Customer: ______________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: ________________________________ State: _________________ Zip: ________ Phone: (___) _______________________ Fax: (____) ___________________________ Email: __________________________________________________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 17 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 134 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If to Rocky Mountain Power: By Mail: Rocky Mountain Power Attention: Net Metering Group P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 Or By email: [email protected] 10.2 Records Rocky Mountain Power will maintain a record of all Interconnection Agreements and related Attachments, if any, for as long as the interconnection is in place. Rocky Mountain Power will provide a copy of these records to Customer within fifteen (15) Business Days upon written request. 10.3 Billing and Payment Billings and payments shall be sent to the addresses below (complete if different from Section 9.1 above): If to Customer: Customer: ______________________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: _______________________________ State: _______________ Zip: ___________ 10.4 Designated Operating Representative The Parties will designate an operating representative each to conduct the communications that may be necessary or convenient for the administration of the operations provisions of the Agreement. This person will also serve as the point of contact with respect to operations and maintenance of the Party’s facilities (complete if different from Section 9.1 above): Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 18 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 135 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Customer’s Operating Representative: Name: __________________________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: ______________________________ State: ________________ Zip: ___________ Phone: (____) _______________________ Fax: (____) __________________________ Email: __________________________________________________________________ 10.5 Changes to the Notice Information Either Party may change this notice information by giving five (5) business days written notice prior to the effective date of the change. Article 11. Signatures IN WITNESSETH WHEREOF, the Parties have caused the Agreement to be executed by their respective duly authorized representatives. For the Customer: For Rocky Mountain Power: By: _____________________________ By: _____________________________ Name: ___________________________ Name: ___________________________ Title: ____________________________ Title: ____________________________ Date: ____________________________ Date: ____________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 19 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 136 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Appendix A Minor Modifications Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 20 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 137 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Appendix B Substantial Modifications Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 21 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 138 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward APPENDIX C ROCKY MOUNTAIN POWER UTAH NET METERING APPLICATION LEVEL 3 REVIEW CAPACITY OF 2 MW OR LESS Section 1: For Rocky Mountain Power Use Only Customer Name: _________________________________________________________________________ Service Address: _________________________________________________________________________ City, State, Zip: ___________________________________________________________________________ Customer Account No. and Request No.: _______________________________________________________ Interconnection Agreement Acknowledgement (Date): ____________________________________________ Application fee: $______________________________ Date Paid ___________________________________ Section 2: To Be Completed By Customer A. Applicant Information Name: ___________________________________________________________________________ Mailing Address: __________________________________________________________________ City: __________________________________________State: _________ Zip Code: ____________ Site Street Address (if different from above): _____________________________________________ City: __________________________________________State: __________ Zip Code: ___________ Daytime Phone: (_____) ________________________ Fax: (_____) __________________________ Email: ____________________________________________________________________________ B. System Information System Type: Solar Wind Hydro Other (Specify): _________________________ Generation Nameplate Capacity: ______________ kW (Combine DC total of wind turbines, solar panels, etc. or AC rating if an inverter is not utilized) Inverter Manufacturer: ___________ Model: ________ Number of Inverters: _____ Rating: _____ kW Manufacturer Nameplate Inverter Total AC Capacity Rating: _________ kW Inverter(s): Single Phase Three Phase Multiple Single Phase Connected on Poly-phase (three phase) system – (Attach Inverter and Panel Technical Specifications Sheets) Type: Induction Type of Service: Inverter Single Phase Synchronous __________________Other Three Phase Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 22 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 139 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward If Three Phase Transformer: Indicate Type: Wye Delta Indicate Voltage and Number of Service Wires: 120/208 Volts, 4 wire 120/240 Volts, 4 wire 277/480 Volts, 4 wire Other ___________ ________________________________________________________________________________ Other Information:__________________________________________________________________ _________________________________________________________________________________ Self Contained Location: ____________________________________________________________ Outdoor Manual AC Disconnect Switch Location (show Disconnect Switch and Rocky Mountain Power Meter Location on Site Plan), unless exempt under Utah Administrative Rule 746-312-4(2): __________________________________________________________________________________ System Location (show all protective devices on One Line Diagram):___________________________ Will the net metering facility interconnect to a switchgear? Yes No Customer must post metal or plastic engraved signage indicating on-site generation in accordance with National Electric Code. The signage must be permanent and located adjacent to the meter base and disconnect switch noting “Parallel Generation on Site” and identifying the manual disconnect switch with the words “Manual Disconnect for Parallel Generation.” _____ (Initial Here) One Line Diagram Attached: Installation Test Plan attached: Yes Yes No Site Plan Attached: Yes No No Anticipated Operational Date of Net Metering Facilities: _____________________________________ (Rocky Mountain Power must be notified at least ten (10) business days prior to starting operation.) Net metering facility available fault duty at the point of common coupling: ________________ (A Rocky Mountain Power Engineer may contact you for additional information) Electrical Inspection approval date (attach copy or provide to utility when obtained):__________ C. Application Fees $ 1050.00 + $ __________ $ __________ Base $3.00 x _____ kW of net metering facility’s capacity TOTAL APPLICATION FEE D. Additional Information 1. An equipment package will be considered certified for interconnected operation if it has been submitted by a manufacturer to a nationally recognized testing and certification laboratory, and has been tested and listed by the laboratory for continuous interactive operation with an electric distribution system in compliance with the applicable IEEE and UL 1741 standards, as set forth Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 23 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 140 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward 2. 3. 4. 5. 6. 7. in the Rule. If the equipment package has been tested and listed as an integrated package, which includes a generator or other electric source, the equipment package will be deemed certified, and Rocky Mountain Power will not require any further design review, testing or additional information. If the equipment package includes only the interface components (switchgears, inverters, or other interface devices), an interconnection applicant must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and consistent with the testing and listing specified for the package. If the generator or electric source being utilized with the equipment package is consistent with the testing and listing performed by the nationally recognized testing and certification laboratory, the equipment package will be deemed certified and Rocky Mountain Power will not require further design review, testing or additional equipment. A net metering facility must be equipped with metering equipment that can measure the flow of electricity in both directions, comply with ANSI C12.1 standards and Utah Administrative Rule R746-312. Rocky Mountain Power will install the required metering equipment at Rocky Mountain Power’s expense. Rocky Mountain Power will not be responsible for the cost of determining the rating of equipment owned by the customer-generator or of equipment owned by other local customers. Customer may operate the Net Metering Facility temporarily for testing and obtaining inspection approval. Customer shall not operate the Net Metering Facility in continuous parallel without an executed Interconnection and Net Metering Service Agreement, and approval from Rocky Mountain Power. Customer will pay to Rocky Mountain Power at the time of application the applicable Application fee of $1500.00 plus $23.00 per kilowatt of the net metering facility’s capacity; and costs of modifications or additional review as set forth in Utah Administrative Rule R746-312 prior to commencement of work. E. Customer Acknowledgment I certify that the information provided in this Application is true. I will provide Rocky Mountain Power a copy of the signed government electrical inspection approval document when obtained, if not already provided with this Application. I agree to abide by the terms of this Application and I agree to notify Rocky Mountain Power thirty (30) days prior to modification or replacement of the System’s components or design. Any such modification or replacement may require submission of a new Application to Rocky Mountain Power. I agree not to operate the Net Metering Facility in parallel with Rocky Mountain Power, except temporarily for testing and obtaining inspection approval, until this Application is approved by Rocky Mountain Power, until this agreement is signed by both parties, and until I have provided Rocky Mountain Power with at least five (5) days notice of anticipated start date. Customer or Applicant Signature & Date: ____________________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 24 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 141 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Please send completed application to: Rocky Mountain Power Attention: Customer Generation P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 or Please scan the completed application and email [email protected] Section 3. To be completed by System Installer Installation Contractor Information/Hardware and Installation Compliance Installation Contractor (Company Name): _______________________________________________________ Contractor's License No.: ____________________________ Proposed Installation Date: _________________ Mailing Address: __________________________________________________________________________ City: ____________________________________________ State: __________ Zip Code: _______________ Daytime Phone: _________________ Fax: _________________Email: ______________________________ For inverter-controlled system, meets IEEE Standards and UL 1741 Inverters, Converters, and Controllers for use in Independent Power Systems as set forth in the Rule: Yes No For induction or synchronous device, meets IEEE Standard 1547 and IEEE/ANSI Standard C37.90 requirements as set forth in the Rule: Yes No If Photovoltaic System, System must be installed in compliance with IEEE Standards, Recommended Practice for Utility Interface of Photovoltaic Systems. All System types must be installed in compliance with applicable requirements of local electrical codes, Rocky Mountain Power and the National Electrical Code® (NEC) and must use an anti-islanding inverter. The System must include a manual, lockable, load-break (disconnect) switch, unless exempt under Utah Administrative Rule 746-312-4(2), accessible at all times to Rocky Mountain Power personnel and located within 10 feet of Rocky Mountain Power’s meter. The disconnect switch may be located more than 10 feet from Rocky Mountain Power’s meter if permanent instructions are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve the location of the disconnect switch prior to the installation of the net metering facility. If the Net Metering Facility is designed to provide uninterruptible power to critical loads, either through energy storage, back-up generator, or the generation source, the Net Metering Facility will include a parallel blocking scheme for this backup source. This function may be integral to the inverter manufacturer’s packaged system. Does the Net Metering Facility include a parallel blocking scheme: Yes No Signed (Contractor): ________________________________________ Date: _________________ Name (Print): _______________________________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 25 of 26 Rocky Mountain Power Exhibit RMP___(JRS-2) Page 142 of 142 Docket No. 16-035-__ Witness: Joelle R. Steward Section 4. To be completed by Rocky Mountain Power: A. If approving the application: Rocky Mountain Power does not, by approval of this Application, assume any responsibility or liability for damage to property or physical injury to persons. Further, this Application does not constitute a dedication of the owner's System to Rocky Mountain Power electrical system equipment or facilities. Customer-Generator entered into an Interconnection and Net Metering Service Agreement with Rocky Mountain Power on the ____ day of _____, 20__. Customer-Generator satisfactorily passed Witness Tests on the ____ day of _________, 20__. (Rocky Mountain Power may waive Witness Tests at its option; if tests are waived initial here ____) This Application is approved by Rocky Mountain Power on this ______ day of ______________, 20__ Rocky Mountain Power Representative Name (Print): _______________________________________ Signed (Rocky Mountain Power Representative): ________________________ Date: ____________ B. If denying the application: This application is denied by Rocky Mountain Power on this ______ day of ____________, 20__ for the following reason(s): _______________________________________________________________ Rocky Mountain Power Representative Name (Print): _______________________________________ Signed (Rocky Mountain Power Representative): ___________________________ Date: __________ Section 5. To be completed by Rocky Mountain Power Meterman Customer Account No. ______________________________ Site ID No. : ___________________________ Served from Facility Point No.: ________________________________ New Net Meter No.: ___________________________ Date net meter installed: _______________________ Manual disconnect device in proper location and permanent signage in place: Yes No Signature/Title: ________________________________________ Date: ____________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 - Level 3 Page 26 of 26 Rocky Mountain Power Exhibit RMP___(JRS-3) Docket No. 16-035-__ Witness: Joelle R. Steward BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Joelle R. Steward Proposed Rates - Schedule 5 November 2016 $3,768,412 $912,073 $2,023,901 23,911,758 23,911,758 228,598 52,335 348 Billed Units 3.8143 $9.02 $15.00 $30.00 $785,025 $10,440 $912,066 $3,769,485 $2,061,954 *On‐peak periods with 60 minute interval: October ‐ April 8:00 a.m. to 10:00 a.m., 3:00 p.m. to 8:00 p.m. Monday‐Friday, except holidays. May ‐ September 3:00 p.m. to 8:00 p.m., Monday‐Friday, except holidays. Customer Charge 1 Phase 3 Phase Demand Charge On-peak ($/kW)* Energy Charge All kWh (¢\kWh) Total COS Rev $832,438 Proposed Price Revenue Rocky Mountain Power - State of Utah Blocking Based on Adjusted Actuals Base Period 12 Months Ending December 2015 Schedule No. 135 - Residential Service - Net Metering Rocky Mountain Power Exhibit RMP___(JRS-3) Page 1 of 1 Docket No. 16-035-__ Witness: Joelle R. Steward Rocky Mountain Power Exhibit RMP___(JRS-4) Docket No. 16-035-__ Witness: Joelle R. Steward BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Joelle R. Steward Peak Period Occurrences November 2016 Rocky Mountain Power Exhibit RMP___(JRS-4) Page 1 of 1 Docket No. 16-035-__ Witness: Joelle R. Steward Hourly Occurrence of Peaks from Last Five Filed Cost of Service Studies (Docket No. 11-035-200, Docket No. 13-035-184, 2013 Annual, 2014 Annual, 2015 Annual) Count Summer Months (May - Sept) 20 18 16 14 12 10 8 6 4 2 0 1 3 5 7 9 11 13 15 17 19 21 23 MST Hour Ending System Coincident Peaks Distribution Coincident Peaks Count Winter Months (Oct - Apr) 20 18 16 14 12 10 8 6 4 2 0 1 3 5 7 9 11 13 15 17 19 21 23 MST Hour Ending System Coincident Peaks Distribution Coincident Peaks Rocky Mountain Power Exhibit RMP___(JRS-5) Docket No. 16-035-__ Witness: Joelle R. Steward BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Joelle R. Steward Example of Interval Demand Measurements November 2016 kW 0 1 2 3 4 5 6 7 8 9 10 1 6 16 21 26 Lights Television Cooking stove Microwave 11 36 Washer/Dryer Vacuum Minutes 31 46 Central A/C 41 51 56 Average Demand: Over 15 Minutes is 6.3 kW Over 30 Minutes is 4.9 kW Over 60 Minutes is 3.4 kW Example of Appliance Usage During an Hour Rocky Mountain Power Exhibit RMP___(JRS-5) Page 1 of 1 Docket No. 16-035-__ Witness: Joelle R. Steward Rocky Mountain Power Exhibit RMP___(JRS-6) Docket No. 16-035-__ Witness: Joelle R. Steward BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Joelle R. Steward Calculation of Offset Credit November 2016 Units $000 MWh ¢/kWh Line 4 5 6 Description Bill Credits Under Proposed Rates Private Generation Production Offset Credit Units $000 MWh ¢/kWh Line Description 1 Bill Credits 2 Private Generation Production 3 Offset Credit Offset Credit Level with Proposed Rates Current Offset Credit Level Residential Offset Credits from Private Generation Value 1,996 28,304 0.0705 Value 2,987 28,304 0.1055 Rocky Mountain Power Exhibit RMP___(JRS-6) Page 1 of 1 Docket No. 16-035-__ Witness: Joelle R. Steward Rocky Mountain Power Exhibit RMP___(JRS-7) Docket No. 16-035-__ Witness: Joelle R. Steward BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Joelle R. Steward Bill Impact Summary November 2016 Rocky Mountain Power 116 29% 977 1.47 % of DG Production to Full Requirements Energy Usage 0% 0% 10% 25% 50% 75% 100% Present Proposed % Change Proposed % Change Proposed % Change Proposed % Change Proposed % Change Proposed % Change $55.4 $55 -2% $53 -5% $49 -11% $44 -20% $39 -29% $34.23 -38% $84.6 $84 -1% $71 -16% $67 -21% $59 -30% $51 -39% $34.23 -60% $113.9 $103 -9% $99 -13% $84 -26% $74 -35% $63 -44% $43.74 -62% $146.3 $123 -16% $118 -19% $110 -25% $88 -40% $75 -48% $53.26 -64% $178.8 $143 -20% $137 -24% $127 -29% $103 -43% $88 -51% $62.77 -65% $211.2 $162 -23% $155 -26% $145 -32% $117 -44% $90 -57% $72.28 -66% $243.6 $192 -21% $174 -29% $162 -34% $132 -46% $102 -58% $81.80 -66% $308.5 $231 -25% $221 -28% $196 -36% $161 -48% $126 -59% $91.31 -70% $373.4 $270 -28% $258 -31% $230 -38% $190 -49% $150 -60% $110.34 -70% Assumptions 1. Average monthly DG generation kWh/kW 2. Average on-peak load factor % 3. Average monthly Full kWh for Residential NM customer 4. DG demand impact index: on-peak kW/MWh 5. Estimated on-peak kW = Full kWh/(730*29%) - DG MWh x 1.47 Full Requirements Monthly kWh 500 750 1,000 1,250 1,500 1,750 2,000 2,500 3,000 Rocky Mountain Power Monthly Billing Comparison Schedule 136 - State of Utah Bill Savings from Proposed Schedule 5 Rates for New Residential NEM Customers Rocky Mountain Power Exhibit RMP___(JRS-7) Page 1 of 1 Docket No. 16-035-__ Witness: Joelle R. Steward Exhibit RMP___(JRS-8) Docket No. 16-035-__ Witness: Joelle R. Steward BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Joelle R. Steward Proposed Application Fee Calculation November 2016 Application Fee Costs Administration Cost Initial Setup Customer Service Cost Engineering Cost Total Cost Related to Net Metering Application Application Quantity Tier 1 Applications Tier 2 Applications Tier 3 Applications Total Application Quantity % of Applications in Tier 2 or 3 Application Fee Revenue KW in Tier 2 Applications KW in Tier 3 Applications Price per KW (Tier 1) Price per KW (Tier 2) Price per KW (Tier 3) Price per Tier 1 Application Price per Tier 2 Application Price per Tier 3 Application Tier 2 and 3 Revenue Cost per Application Proposed Application Fee Revenue Proposed Price per KW (Tier 1) Proposed Price per KW (Tier 2) Proposed Price per KW (Tier 3) Proposed Price per Tier 1 Application Proposed Price per Tier 2 Application Proposed Price per Tier 3 Application Proposed Tier 1, 2, and 3 Revenue Difference Between Costs and Proposed Fee Revenue Costs to be Recovered Through an Application Fee $16,110 $481 $16,051 $32,641 284 66 350 18.9% 4,104 $0.00 $1.00 $2.00 $0.00 $50.00 $100.00 $7,404 $93.26 $0.00 $1.50 $3.00 $60.00 $75.00 $150.00 $28,147 $4,495 7,381 2 7,383 0.0% 38 $0.00 $1.00 $2.00 $0.00 $50.00 $100.00 $138 $59.90 $0.00 $1.50 $3.00 $60.00 $75.00 $150.00 $443,067 -$819 $0.00 $1.50 $3.00 $60.00 $75.00 $150.00 $22,021 $42,601 2,626 1,002 $0.00 $1.00 $2.00 $0.00 $50.00 $100.00 $5,880 $265.93 220 21 2 243 9.5% $19,667 $379 $44,576 $64,622 $0.00 $1.50 $3.00 $60.00 $75.00 $150.00 $2,418 $741 1,242 $0.00 $1.00 $2.00 $0.00 $50.00 $100.00 $1,292 $351.03 9 11.1% - 8 1 $671 $12 $2,476 $3,159 $0.00 $1.50 $3.00 $60.00 $75.00 $150.00 $3,951 $14,230 1,224 $0.00 $1.00 $2.00 $0.00 $50.00 $100.00 $2,274 $606.01 30 70.0% 9 21 $7,048 $126 $11,006 $18,180 General Small General Large General Dist. NEM Dist. NEM +1 MW NEM Irrigation Sch 23-135 Sch 6-135 Sch 8-135 Sch 10 $198,752 $17,797 $225,698 $442,247 Residential Net Metering $0.00 $1.50 $3.00 $60.00 $75.00 $150.00 $499,603 $61,247 9,234 1,002 $0.00 $1.00 $2.00 $0.00 $50.00 $100.00 $16,988 $69.98 7,902 111 2 8,015 1.4% $242,248 $18,795 $299,807 $560,850 Total Rocky Mountain Power Exhibit RMP___(JRS-8) Page 1 of 1 Docket No. 16-035-__ Witness: Joelle R. Steward Rocky Mountain Power Docket No. 16-035-____ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Direct Testimony of Robert M. Meredith November 2016 1 Q. dba Rocky Mountain Power (“the Company”). 2 3 Please state your name, business address and present position with PacifiCorp A. My name is Robert M. Meredith. My business address is 825 NE Multnomah St, 4 Suite 2000, Portland, Oregon, 97232. My present position is Manager, Pricing and 5 Cost of Service. 6 Qualifications 7 Q. Please describe your education and professional background. 8 A. I graduated magna cum laude from Oregon State University in 2004 with a 9 Bachelor of Science degree in Business Administration and a minor in Economics. 10 In addition to my formal education, I have attended various industry-related 11 seminars. I have worked for the Company for twelve years in various roles of 12 increasing responsibility in the Customer Service, Regulation, and Integrated 13 Resource Planning departments. I have over six years of experience preparing cost 14 of service and pricing related analyses for all of the six states that PacifiCorp serves. 15 I assumed my present position in March 2016. 16 Q. Have you testified in previous regulatory proceedings? 17 A. Yes. I have previously filed testimony on behalf of the Company in regulatory proceedings in California and Washington. 18 19 Summary 20 Q. What is the purpose of your testimony? 21 A. The purpose of my testimony is to present and support the Company’s cost of 22 service analyses that were prepared to comply with the Commission’s order issued 23 November 10, 2015, in Docket No. 14-035-114 in which the Commission Page 1 - Direct Testimony of Robert M. Meredith 24 established a framework for determining the costs and benefits of the net metering 25 program (“November 2015 Order”). My testimony demonstrates that the 26 Company's cost of service studies are accurate and reliable, and are consistent with 27 Commission-approved standards that have been approved over the years,1 and 28 should be accepted by the Commission. 29 Q. Please summarize your testimony. 30 A. To comply with the November 2015 Order, the Company prepared two cost of 31 service analyses: one that compares the costs and benefits of the net metering 32 program by examining the difference with and without the existence of the net 33 metering program, referred to in the order as the actual cost of service ("ACOS") 34 and counterfactual cost of service ("CFCOS"); and another that examines the results 35 of segregating net metering customers into separate classes in the class cost of 36 service study, referred to by the Company as the net metering breakout cost of 37 service ("NEM Breakout COS"). The results of both analyses demonstrate that, as 38 the net metering program is currently structured, the costs of the program exceed 39 its benefits. In particular, the revenue received from residential net metering 40 customers is insufficient to cover their cost of service, which will shift costs onto 41 other customers whose rates will ultimately increase. 1 See In the Matter of PacifiCorp's Financial Reports, 2016, Annual Cost of Service Study - 2015, Docket No. 16-035-15 (in reviewing PacifiCorp's June 2016 Annual Cost of Service Study, the Commission stated, [b]ased on the Commission's review ... and the recommendation of the Division, the Commission acknowledges PacifiCorp's COS Study and Model.") Page 2 - Direct Testimony of Robert M. Meredith 42 Cost of Service Analyses - Summary of Results 43 Q. What was the purpose of the Commission’s November 2015 Order? 44 A. The Legislature enacted Utah Code § 54-15-105.1, which requires the Commission to perform the following two tasks: 45 (1) 46 Determine, after appropriate notice and opportunity for public 47 comment, whether costs that the electrical corporation or other 48 customers will incur from a net metering program will exceed the 49 benefits of the net metering program, or whether the benefits of the 50 net metering program will exceed the costs; and (2) 51 Determine a just and reasonable charge, credit, or ratemaking 52 structure, including new or existing tariffs, in light of the costs and 53 benefits. 54 Utah Code Ann. § 54-15-105.1 (hereinafter, § 54-15-105.1(1) will be referred to as 55 "Subsection One" and § 54-15-105.1(2) as "Subsection Two"). The November 2015 56 Order established the appropriate structure for the Commission to perform the 57 Subsection One analysis. 58 Counterfactual Cost of Service Compared to Actual Cost of Service 59 Q. 2015 Order? 60 61 What cost of service analysis did the Commission require in its November A. The Commission required the Company to show the cost of service at the system, 62 state, and customer class levels by comparing an actual cost of service (“ACOS”) 63 study with a counterfactual cost of service (“CFCOS”) study. The Commission 64 directed the Company to “use its best efforts to estimate what its cost of service Page 3 - Direct Testimony of Robert M. Meredith 65 would be if net metering customers produced no electricity, drawing their entire 66 load from PacifiCorp and providing no surplus energy to the system.”2 Showing 67 cost of service at the system, state, and customer class levels requires the use of the 68 Company's jurisdictional allocation model ("JAM"). 69 Q. November 2015 Order? 70 71 How did the Company perform the cost of service analysis required by the A. Using the 12-month historical period ended December 31, 2015, the results of a 72 counterfactual JAM ("CFJAM") and a CFCOS were compared to the results of the 73 actual JAM ("AJAM") and the ACOS Study. The AJAM is the model used to 74 prepare the December 2015 results of operations, in Docket No. 16-035-15, but 75 with a revision to the Utah customer count used in calculating the Customer 76 Number ("CN") factor that was identified as a result of the Division of Public 77 Utilities' ("DPU") review.3 The ACOS study is the same as the 2015 Annual Cost 78 of Service Study, which is based upon the December 2015 results of operations, but 79 with minor changes made to incorporate the Commission's direction in their 80 correspondence dated October 25, 2016, and using the AJAM. The CFJAM assumes that the net metering program does not exist and 81 relative to the AJAM, includes: 82 • 83 Higher net power costs to supply the energy that would have been generated by net metering customers’ private generation, as shown in Company 84 2 November 2015 Order. The CN in the 2015 Results of Operations JAM inadvertently included a double count for the Company’s Cool Keeper customers which resulted in overstating the number of billings. For further information, see the DPU's action request filed with the Commission on September 29, 2016. 3 Page 4 - Direct Testimony of Robert M. Meredith 85 witness Mr. Michael G. Wilding’s testimony, which includes a description 86 of how net power costs were estimated. 87 • Higher net power costs to account for line losses associated with delivering energy from more remote sources. 88 89 • Removal of bill credits related to private generation. 90 • Lower engineering and administrative costs required to interconnect net metering customers. 91 92 • Lower customer service and billing costs. 93 • Lower metering costs. 94 • Higher allocations of system costs to Utah to reflect higher demands and 95 energy for the state. 96 Later in my testimony, I describe how the changes in bill credits, line losses, 97 customer service and billing costs, administrative costs, engineering costs, and 98 metering costs were developed. 99 The CFCOS uses the CFJAM and includes higher revenues, higher energy, 100 and higher demands for each customer class with net metering customers. This 101 includes residential service on Schedules 1, 2, and 3, Schedule 23, Schedule 6, 102 Schedule 8, and Schedule 10. Later in my testimony I describe how the Company 103 developed the change in energy and demand used in the CFCOS. To hold the rate 104 of return constant between the CFCOS and the ACOS, a $2.0 million rate decrease 105 is applied to the results of the CFCOS, which was calculated by comparing the 106 difference in results between the CFJAM and AJAM. Page 5 - Direct Testimony of Robert M. Meredith 107 Q. What are the results of the analysis? 108 A. Exhibit RMP___(RMM-1) shows the overall results of the Subsection One analysis 109 ordered by the Commission. In this exhibit, the difference between the CFCOS and 110 ACOS are shown at the system, state, and class levels. Positive values are net costs 111 (increases in costs) and negative values are net benefits (decreases in costs). 112 Page 1 shows the difference between costs and benefits of the net metering 113 program at the system level. For costs, values are shown for increased metering 114 cost, increased engineering/administration costs, increased customer service/billing 115 cost, and net metering bill credits. For benefits, the estimated impact of lower net 116 power cost and value of avoided line losses are shown. Overall, the analysis shows 117 a net cost to the system of the net metering program of $3.7 million or about $70.40 118 per megawatt hour (“MWh”). 119 Page 2 shows the difference between costs and benefits of the net metering 120 program at the Utah state level. All of the costs and benefits from page 1 are 121 included plus an additional benefit for lower interjurisdictional allocation to the 122 state. At the state level, the analysis shows a net cost to Utah for the net metering 123 program of $2.0 million or about $38.76 per MWh. 124 Page 3 shows the difference in costs and benefits of the net metering 125 program at the customer class level. Each of the costs and benefits on page 3 are 126 the same in total as those shown on page 2. An overwhelming majority of the net 127 cost to Utah is attributable to residential net metering customers. At the customer 128 class level, the analysis shows a net cost to residential customers for the net 129 metering program of $1.7 million or about $58.60 per MWh. For Schedule 8, the Page 6 - Direct Testimony of Robert M. Meredith 130 analysis shows a slight net benefit of $0.16 million. For Schedules 23, 6, and 10, 131 the analysis shows a net cost of $0.1 million, $0.02 million, and $0.01 million 132 respectively. For other classes that do not participate in net metering, the analysis 133 shows a $0.4 million net cost. Table 1 below summarizes the net cost or (benefit) 134 of the net metering program at the system, state, and customer class levels. 135 Table 1. Net Cost/(Benefit) of the Net Metering Program at the System, State, and Customer Class Levels Cost System Level State Level Residential Schedule 23 Schedule 6 Schedule 8 Schedule 10 Other Classes Total Customer Class Level 136 Q. $ $ $ $ $ $ $ $ $ (000) (1,287) (2,960) (1,881) (405) (650) (395) (21) 393 (2,960) Net Cost/ (Benefit) (000) $ 3,722 $ 2,049 $ 1,659 $ 100 $ 23 $ (155) $ 7 $ 415 $ 2,049 How do the summary results from the ACOS study and the CFCOS study compare? 137 138 $ $ $ $ $ $ $ $ $ (000) 5,010 5,010 3,540 504 673 240 29 22 5,009 Benefit A. Exhibit RMP___(RMM-2) shows the summary of results from the ACOS study, the 139 CFCOS study, and the difference between the two studies. It summarizes, both by 140 customer group and function, the results of the class cost of service studies for the 141 12-months ended December 31, 2015. Page 1 of Exhibit RMP__(RMM-2) presents 142 results for the ACOS study. Page 2 shows the results for the CFCOS study. Page 3 143 shows the difference in results between two studies. Page 7 - Direct Testimony of Robert M. Meredith 144 Q. with Commission-approved standards. Please explain. 145 146 Previously you stated that the cost of service studies were performed consistent A. As required, the Company annually files a cost of service study, which is reviewed 147 by the DPU and is available to any other interested party. The DPU makes a 148 recommendation to the Commission based on the results of its review. The 149 Company filed its cost of service study for the calendar year 2015 results in June 150 2016. On October 25, 2016, the Commission issued an acknowledgment letter 151 stating, "[b]ased on the Commission's review of PacifiCorp's filing and the 152 recommendation of the Division, the Commission acknowledges PacifiCorp's COS 153 Study and Model. The Commission requests PacifiCorp evaluate the Division's and 154 the Commission's observations and make appropriate changes to the COS model in 155 future COS model filings."4 156 Q. Do the cost of service studies filed in this case include the changes the Commission requested be made to all future cost of service model filings? 157 158 A. 159 CFCOS Study Inputs - Load Changes 160 Q. In the CFCOS, how did the Company estimate the increase in energy consumption associated with the assumption of no private generation? 161 162 Yes. A. Estimating the increase in energy consumption and corresponding change in 163 revenue for the CFCOS requires comparing the current level of energy and revenue 164 that is billed to net metering customers with the level of energy and revenue 165 assuming no private generation. The current net amount of energy usage and 4 Supra, note 1. Page 8 - Direct Testimony of Robert M. Meredith 166 associated net revenue that is billed to net metering customers is known and used 167 in the ACOS. Estimating the level of energy and revenue without private generation 168 requires estimating what the energy consumption would be for net metering 169 customers if they were full requirements customers. Figure 1 illustrates how full 170 requirements usage is determined for net metering customers. 171 172 The bills for net metering customers are based upon the energy delivered to them 173 from the energy grid, net of the energy exported from their private generation 174 system to the grid. Both of these values, which are represented by (B) and (D) in 175 Figure 1, are measured by a bi-directional meter. Private generation production, 176 represented as (E) in Figure 1, is estimated by multiplying a standardized 177 production profile by the nameplate capacity of each customer's generation system 178 on a monthly basis. To develop full requirements energy usage, shown as (A) in 179 Figure 1, the difference between (E) and (D) is added to (B). The total full Page 9 - Direct Testimony of Robert M. Meredith 180 requirements energy for net metering customers in the Residential and Schedules 181 23, 6, 8, and 10 classes was estimated by applying this calculation. 182 Q. How did the Company develop the standardized production profile? 183 A. By December 2014, the Company had installed 52 load research profile meters on 184 residential customers with private generation systems. Of those 52 customers, the 185 Company received permission to install 36 production profile meters that measure 186 the generation from their private generation systems on a 15 minute-interval basis. 187 The Company then converted the production profiles for each private generation 188 system into a generic shape where the highest 15 minute reading was considered to 189 have a value of one. The Company divided all other values by the highest reading 190 such that each other period was a fraction of one. Establishing this generic shape 191 allows the profile to be scalable by the installed capacity of private generation 192 systems. The Company averaged the generic production shapes of all the private 193 generation systems for each county, and established an overall standardized 194 production shape for the state by weighting each county’s generic profile by the 195 overall nameplate installed private generation capacity in each county as of 196 December 31, 2015. 197 Q. other outside data source? 198 199 Did the Company benchmark the standardized production shape against any A. Yes. The Company compared the standardized production shape to hourly shapes 200 from National Renewable Energy Laboratory’s (“NREL”) online PVWatts® 201 calculator. The Company compared the two samples by performing a linear 202 regression. A regression assesses whether the predictor variables (the Company's Page 10 - Direct Testimony of Robert M. Meredith 203 production shape) account for variability in a dependent variable (the PVWatts® 204 production shape). The Company can measure how representative the sample data 205 is to the PVWatts® data by treating the PVWatts® generation data as the dependent 206 variable and the production sample data as the independent variable. 207 Based on the Company's findings, the regression has an Adjusted R- 208 squared of 0.994 (a perfect correlation would be 1.0). This indicates that the 209 model is a good predictor of the dependent variable. Further, the regression has a 210 Durbin-Watson statistic of 2.082, signifying that autocorrelation has been 211 corrected within the model (a value of 2.0 would indicate complete absence of 212 autocorrelation). The regression coefficient and elasticity are 1.036 and 0.942 213 (again, a perfect correlation would be 1.0), respectively. This indicates the two 214 sets of data behave similarly. 215 Further, the two independent samples are highly correlated with a 216 correlation coefficient of 0.984. This demonstrates that the hourly shape of the 217 NREL sample is similar to the shape of the standardized production profile. Exhibit 218 RMP ___(RMM-3) provides a description of the Company’s benchmarking to the 219 NREL data analysis. 220 A visual comparison of the Company's production curve and the PVWatts® 221 curve also demonstrates that both curves have a similar shape and behavior. Figure 222 2 below shows the average hourly solar production for the Company's estimate 223 compared to the output from NREL data during the 2015 peak month of June: Page 11 - Direct Testimony of Robert M. Meredith 224 Figure 2. June 2015 Average Hourly Solar Production from Company and NREL Data 225 Q. Please explain what Exhibit RMP___(RMM-4) shows. 226 A. Exhibit RMP___(RMM-4) shows how the difference in energy sales between the 227 CFCOS and the ACOS studies is calculated. The billed energy for net metering 228 customers during the period was 188,410 MWh. The full requirements energy 229 usage for net metering customers is estimated to be 239,706 MWh. The overall 230 difference between the CFCOS and ACOS energy sales is 51,297 MWh. 231 Q. Given the standardized production shape and the known nameplate capacity 232 for customer private solar generation, what is the Company's estimate of 233 private generation production? 234 235 A. The Company's estimate of private generation production for the period is 52,877 MWh and is shown on Exhibit RMP ___ (RMM-4). Page 12 - Direct Testimony of Robert M. Meredith 236 Q. the same as estimated private generation production? 237 238 Why is the difference in energy sales between the CFCOS and the ACOS not A. While the difference in energy sales between the CFCOS and ACOS is close to the 239 estimated private generation production (51,297 MWh versus 52,877 MWh), they 240 are not the same. The difference is the result of net metering energy banking, which 241 I discuss below. For residential and small non-residential net metering customers, 242 if the energy exported from the customer to the energy grid is more than the energy 243 delivered from the energy grid to the customer during the billing month, the 244 Company credits a customer with a kilowatt-hour credit that is applied to future 245 bills until the end of the net metering program year. In any given billing period, net 246 metering customers may be making energy deposits or withdrawals into and out of 247 their bank. The overall quantity of energy reflected in the ACOS represents billed 248 energy which considers the impact of energy banking. The CFCOS contains the 249 estimated energy for net metering customers assuming full requirements usage, 250 which does not include any impact from banking. 251 Q. would exist if there were no private generation? 252 253 In the CFCOS, how did the Company estimate the increase in demand that A. The Company modified the hourly, Utah state border loads, and class loads that 254 were used in the ACOS by the estimated private generation production profile that 255 I described earlier in my testimony. For Utah border loads, this expansion by the 256 estimated production profile is at the input level, accounting for line losses. The 257 Company bases interjurisdictional allocations upon border loads that measure all 258 load coming into a jurisdiction as well as all load flowing out of a jurisdiction. Since Page 13 - Direct Testimony of Robert M. Meredith 259 private generation production would stay within the state and would consequently 260 reduce state load for interjurisdictional allocations, the allocation factors in the 261 CFCOS were modified to reflect what allocation factors would have been, absent 262 private generation. For the CFCOS, the Company expanded customer class loads 263 by the full private generation production profile to be consistent with how loads 264 were developed for the CFJAM. 265 Q. for the CFCOS analysis? 266 267 How did the Company determine and apply line losses to private generation A. To bring private generation to the input level, nameplate installed capacity was 268 determined by month for customers served at the secondary voltage level and the 269 primary voltage level. The Company then expanded private generation by class by 270 the loss factor used in the recently acknowledged 2015 cost of service study for 271 these quantities of nameplate capacity. Bringing private generation to the input 272 level, increases it from 52,877 MWh to 57,784 MWh. The estimated change in net 273 power cost between the ACOS and CFCOS described in Mr. Wilding’s testimony 274 reflects private generation at the input level. 275 CFCOS Study Inputs - Bill Credits 276 Q. How did you calculate the removal of bill credits for the CFCOS? 277 A. The Company segmented the change in energy between actual billed energy and 278 full requirements energy into energy blocks by season (Summer and Winter) and 279 by on-peak and off-peak periods, as applicable. The Company then estimated the 280 removal of bill credits (revenue difference between actual billed revenue and full 281 requirements revenue) by multiplying the changes in energy by the corresponding Page 14 - Direct Testimony of Robert M. Meredith 282 energy charges. For residential net metering customers, the Company estimated full 283 requirements energy for each monthly bill to determine the levels of energy 284 consumption that would occur in the different tier block usage levels that apply to 285 residential energy charges. The Company then applied the change in the proportion 286 of energy in each tier block energy charge to the overall estimated change in energy 287 to estimate bill credits for the residential class. 288 Exhibit RMP___(RMM-5) shows bill credits related to the net metering 289 program (the estimated difference in revenue between the CFCOS and ACOS) by 290 rate schedule. This exhibit demonstrates overall bill credits associated with the net 291 metering program of approximately $4.2 million. 292 CFCOS Study Inputs - Customer Service and Billing Costs 293 Q. costs? 294 295 How did the Company develop net metering customer service and billing A. The Company sorted customer service and billing costs related to the net metering 296 program into three categories: 297 1. Phone calls, including customer inquiries and requests related to the net 298 299 300 301 302 metering program. 2. Initial setup, including requests for a meter exchange and setting up customers on the net metering program in the Company’s billing system. 3. Ongoing support, including back office work necessary to correctly bill customers participating in the net metering program. 303 Developing the costs related to each of these areas required obtaining estimates 304 from Company personnel involved in the day-to-day operations at the call centers Page 15 - Direct Testimony of Robert M. Meredith 305 regarding the total time spent on each of these activities. Those figures were then 306 multiplied by the fully-loaded hourly cost for a call center agent. 307 To determine the proportions of these costs that are related to the different 308 customer classes, the overall cost estimates for each activity were spread based 309 upon an appropriate driver for those costs. Since phone calls were primarily for 310 customers who were considering participation in the net metering program, this cost 311 was allocated on the number of applications in the period. Initial setup cost was 312 allocated based upon the number of interconnections during the period. Since 313 ongoing support is related to the number of bills, this cost was allocated by the 314 average bills during the period. Exhibit RMP___(RMM-6) shows the customer 315 service and billing costs related to the net metering program by customer class. 316 CFCOS Study Inputs - Program Administration 317 Q. How did the Company develop net metering program administrative costs? 318 A. The Company dedicates a department to the administration of the various net 319 metering programs it oversees and implements across the six states that it serves. 320 This includes the handling and processing of interconnection applications. The 321 overall expense of this department was multiplied by the proportion of workload 322 dedicated to the net metering program in Utah. This expense was reduced by the 323 application fees that were collected in 2015 for larger non-residential 324 interconnections. Page 1 in Exhibit RMP___(RMM-7) to my testimony shows net 325 administrative expense related to the net metering program by customer class. 326 Pages 2 and 3 of Exhibit RMP___(RMM-7) show how the Company determined 327 administrative expense by state and rate schedule. Page 16 - Direct Testimony of Robert M. Meredith 328 Q. program? 329 330 How did the Company develop engineering costs related to the net metering A. Engineers review the technical details of the interconnection applications to ensure 331 that private generation systems can safely and reliably interconnect to the 332 Company’s distribution system. To develop the engineering costs related to the net 333 metering program, the estimated time it takes to review an application was 334 multiplied by the fully-loaded hourly cost of a field engineer which was then 335 multiplied by the number of applications in 2015. The estimated time for review 336 for each application varied by rate schedule to reflect differences in the complexity 337 of review. Exhibit RMP___(RMM-8) to my testimony shows engineering expense 338 related to the net metering program by customer class. 339 CFCOS Study Inputs - Meter Costs 340 Q. the net metering program? 341 342 How did the Company develop the change in metering costs associated with A. To accurately bill net metering customers, the bi-directional flow of energy must 343 be measured. The Company estimated the costs to replace and reprogram meters 344 accordingly. Pages 1 and 2 of Exhibit RMP___(RMM-9) show the costs of 345 metering related to the net metering program by customer class. Page 3 of Exhibit 346 RMP___(RMM-9) shows the calculation of meter depreciation and deferred tax 347 impacts. Page 17 - Direct Testimony of Robert M. Meredith 348 CFCOS Study - Results 349 Q. CFCOS and the ACOS? 350 351 What is the overall conclusion you draw from the comparison between the A. The analysis shows that the costs that the Company or other customers incur from 352 the net metering program do in fact exceed the benefits of that program, which will 353 result in higher rates for other customers. 354 Q. class in the analysis comparing the CFCOS to the ACOS? 355 356 What conclusions can you make from the difference in results by customer A. Most of the net cost of the net metering program is attributable to the residential 357 class. For all other customer classes, except Schedule 8, the net metering program 358 is also a net cost. The net benefit shown for Schedule 8 is only $0.16 million or 359 about 8 percent of the overall $2.0 million net cost for Utah. The results for 360 Schedule 8 are primarily related to the low average cost of bill credits for these 361 customers which reflects the Company's conservative assumption not to estimate 362 any change in demand charges. 363 Actual Cost of Service with Net Metering Separately Broken Out 364 Q. service analysis did the Commission require in its November 2015 Order? 365 366 Along with a comparison of the CFCOS and the ACOS, what other cost of A. The Commission also required the Company to prepare a cost of service study 367 under which the Company “will segregate net metering customers from the class in 368 which they presently participate and reflect the resulting class cost of service to the Page 18 - Direct Testimony of Robert M. Meredith 369 net metering customers as a separate class and show the impact their segregation 370 has on the class in which they would otherwise participate.”5 371 Q. How did the Company prepare the NEM Breakout COS? 372 A. Starting with the class ACOS study, separate classes were created for the residential 373 class and Schedules 23, 6, 8, and 10 net metering customers (“NEM classes”). For 374 these different NEM classes, the characteristics of their cost of service were 375 identified, removed from the overall class from which they were separated, and 376 applied to the NEM classes. The characteristics for the NEM classes include 377 different customer counts, revenues, energy values, system coincident peak demand 378 values, distribution coincident peak demand values, non-coincident peak demand 379 values, number of customers per transformer, and metering costs. 380 NEM Breakout COS - Demands 381 Q. How did the Company develop demand values for the NEM classes? 382 A. For the residential net metering class, demand values were based upon the load 383 research study previously discussed. Each of these load research meters measured 384 delivered and exported energy on a 15-minute-interval basis. The overall profile 385 from these load research meters was scaled to the delivered and exported energy 386 volumes on a monthly basis. The Company developed various monthly system 387 coincident and distribution coincident peaks from this profile. The Company 388 determined non-coincident peak on a monthly basis by averaging the non- 389 coincident peaks for each of the sample profile meters and scaling by the overall 390 number of customers in the population. 5 November 2015 Order. Page 19 - Direct Testimony of Robert M. Meredith 391 System coincident peaks and distribution coincident peaks were based upon 392 energy deliveries to the customer. Non-coincident peak was based upon the 393 maximum of either energy delivery or energy export. The Company allocates line 394 transformers and secondary lines based upon each class’s annual maximum non- 395 coincident peak which is then weighted by a coincidence factor. Using the 396 maximum of either delivered or exported non-coincident peak for each customer 397 accurately reflects those customers’ usage of these localized facilities, which are 398 typically used by a small number of customers and must be sized to meet the 399 demands imposed upon the equipment in either direction. 400 For the Schedules 23, 6, and 10 net metering classes, the standard profile 401 that was developed for the ACOS study for their whole class, which includes both 402 net metering and non-net metering customers, was adjusted to the overall energy 403 volume for estimated full requirements usage of the net metering customers on a 404 monthly basis to create full requirements profiles. Their estimated private 405 generation production profile was then overlaid on top of that estimated full 406 requirements profile to estimate delivered and exported energy on an hourly basis. 407 For Schedule 8, demand values are based upon the readings from profile meters 408 that are installed for all customers of this size. 409 Q. customers? 410 411 How did the Company first develop the sample of residential net metering A. Exhibit RMP___(RMM-10) explains the process by which the Company selected 412 sample meters for inclusion into the load research study. Basically, meters were 413 selected based upon their net energy usage reported from the billing system. Page 20 - Direct Testimony of Robert M. Meredith 414 Q. develop loads for the NEM Breakout COS? 415 416 Did the Company use all sample meters from the study’s original design to A. No. Sixty-two (62) meters were initially included in the study. Since ten of the 417 original meters were for customers with wind-based private generation and 99 418 percent of all private generation capacity is solar, the Company used the data from 419 the 52 meters for customers with solar-based private generation to develop loads 420 for the NEM Breakout COS. 421 Q. Were the strata breakpoints and weightings discussed in Exhibit 422 RMP___(RMM-10) the same as those ultimately used to develop loads for the 423 NEM Breakout COS? 424 A. No. The strata breakpoints discussed in Exhibit RMP___(RMM-10) were based 425 upon the billed or net energy of the total population of residential net metering 426 customers at the time the sample was designed. To develop loads for the NEM 427 Breakout COS, the Company used delivered energy to inform the strata 428 weightings and breakpoints, because delivered energy is an indication of the 429 customer’s usage of the system, as opposed to net energy that is a billing-related 430 construct. 431 NEM Breakout COS - Direct Assignments and Energy 432 Q. NEM Breakout COS for the NEM Classes? 433 434 What other important differences did the Company incorporate into the A. While developing the CFCOS study, the Company identified engineering, 435 administration, and customer service/billing related costs that are directly 436 attributable to serving and interconnecting net metering customers. These costs Page 21 - Direct Testimony of Robert M. Meredith 437 which are shown on Exhibit RMP___(RMM-6), Exhibit RMP___(RMM-7), and 438 Exhibit RMP___(RMM-8) were directly assigned to the different NEM classes. 439 Also NEM classes are allocated energy-related costs for the energy that is delivered 440 to them and receive credit to their cost of service for the excess generation that they 441 deliver to the Company. 442 Q. costs based upon their delivered energy instead of their net energy? 443 444 Why does the Company allocate to net metering customers energy-related A. Net metering customers use the system in a way that is fundamentally different than 445 other customers. Unlike other customers who consume only energy that is delivered 446 to them from the energy grid, net metering customers may at different times be 447 receiving energy from the energy grid, consuming their own private generation 448 onsite, or exporting the excess energy from their private generation to the energy 449 grid. Like with any other customer, the Company allocates its costs based upon the 450 volumes of energy and the magnitude of demands the Company delivers to net 451 metering customers. Inasmuch as net metering customers consume their own 452 private generation onsite, the profile and overall quantity of energy delivered to 453 them is reduced and the allocation of costs is also consequently reduced. The 454 concept of net energy is a billing construct that is used for net metering. Net energy 455 does not reflect a net metering customer’s physical time-based relationship with the 456 energy grid. Even though a net metering customer may produce as much total 457 energy as that customer consumes over a period of time, in real time that customer 458 still relies upon the energy grid to both import and export energy. The NEM Page 22 - Direct Testimony of Robert M. Meredith 459 Breakout COS study appropriately assigns costs to net metering customers based 460 upon their usage of the Company’s system. 461 Q. energy in the NEM Breakout COS study. 462 463 Please describe how net metering customers receive credit for their excess A. For the energy that net metering customers export to the energy grid from their 464 private generation systems, a credit for their exported energy is assigned to them 465 based upon the difference in monthly net power cost associated with private 466 generation that was calculated for the CFCOS analysis. Company witness Mr. 467 Wilding’s testimony provides a description of the net power cost analysis. The 468 Company increases the credits applied for exported energy to reflect avoided line 469 losses. The overall annual excess credit also considers each NEM class’s impact 470 from energy banking. For energy deposits into customers' net metering bank, the 471 excess energy credits are reduced. For energy withdrawal from customers' net 472 metering bank, excess energy credits are increased. Exhibit RMP___(RMM-11) 473 includes the calculation of excess energy credits for each NEM class. In total the 474 value of the energy credits for all NEM classes is $553,067. 475 Q. impact of net metering banking? 476 477 Why does the Company adjust excess energy credits to account for the A. In a class cost of service study, the ultimate result of the study is a comparison of 478 whether the revenues provided from each class are less than, more than, or equal to 479 each class’s cost of service. Within the annual period that is used for a cost of 480 service study, revenue from net metering customers is based upon billed energy that 481 includes some out-of-period impact from net metering energy banking. For Page 23 - Direct Testimony of Robert M. Meredith 482 example, in the 12 months ended December 31, 2015, some energy credits from 483 excess energy banked in 2014 are applied to bills that occur in 2015. Conversely, 484 some excess energy that is banked in 2015 will be applied to bills in 2016. Ignoring 485 the effect of net metering energy banking would create a mismatch between 486 revenues and cost of service. Subtracting the excess energy, which includes both 487 the energy exported as well as the impact of banking, from the delivered energy 488 produces the billed energy upon which revenues are determined and upon which 489 the total energy in the ACOS is based. 490 Q. service of the NEM classes. 491 492 Please describe how the Company applies excess energy credits to the cost of A. The Company directly assigns excess credits to each NEM class. It allocates an 493 offsetting cost for the excess credits to all classes based upon Factor 30 - Energy. 494 Both the excess credits and the offsetting costs are functionalized to the Production 495 function. 496 Q. Why is there an offsetting cost for the excess credits? 497 A. To balance out the credits directly assigned to net metering customers in the cost of 498 service model, it was necessary to include a cost that offsets that credit. The excess 499 credits in the NEM Breakout COS reflect a fair value of the energy that net metering 500 customers export to the energy grid for other customers to use. All customers, 501 including net metering customers, benefit from this excess generation in the form 502 of reduced net power cost. It is reasonable that all customers receive an increased 503 allocation of cost proportional to that benefit to offset the value assigned to the 504 NEM classes for their exported energy. With this treatment of excess energy, Page 24 - Direct Testimony of Robert M. Meredith 505 customers are economically indifferent between whether they receive a kilowatt 506 hour from a private generation system or from some other source. 507 Q. the basis of energy? 508 509 A. Q. Why does the Company allocate the offsetting cost for excess credits to NEM classes as well as to the other non-net metering classes? 512 513 The offsetting cost of the excess energy credits is allocated on energy because the majority of net power costs including fuel are allocated on the basis of energy. 510 511 Why does the Company allocate the offsetting cost for the excess credits on A. Private generation that is exported to the energy grid may be consumed by both 514 customers who do not participate in net metering as well as those who do. Also net 515 power costs in total are reduced as a result of exported private generation. It is 516 reasonable to assign some of the offsetting cost of excess energy to net metering 517 customers in proportion to the energy that is delivered to them. 518 NEM Breakout COS - Results 519 Q. Are there any challenges with the NEM Breakout COS study? 520 A. Yes. While the Company has a load research study for residential net metering with 521 a full year of profile data, the Company does not have the same information for 522 Schedules 6, 10, and 23 net metering customers. 523 Q. Why did the Company create segregated NEM classes for Schedules 6, 10, 524 and 23 in the NEM Breakout COS study if load research studies were not 525 available? 526 527 A. The Company prepared this information to comply with the November 2015 Order. The information for Schedules 6, 10, and 23 net metering customers attempts to Page 25 - Direct Testimony of Robert M. Meredith 528 show an estimate of their cost of service with separate class treatment and provides 529 some context regarding the general magnitude of cost shifting that may exist for 530 these customers. 531 Q. Please identify and explain Exhibit RMP___(RMM-12). 532 A. Exhibit RMP___(RMM-12) shows the summary of results from the NEM Breakout 533 COS study in the same format as the studies that are presented in Exhibit 534 RMP___(RMM-2), but with results shown for the NEM classes. Exhibit 535 RMP___(RMM-12) shows that residential net metering customers and Schedules 536 6, 8, 10 and 23 net metering customers require a 65.05 percent, -8.43 percent, -8.30 537 percent, 11.42 percent, and 8.42 percent change to present revenues, respectively. 538 Q. Please identify and explain Exhibit RMP___(RMM-13). 539 A. Exhibit RMP___(RMM-13) shows the difference in cost of service results for each 540 class between the NEM Breakout COS and the ACOS. This satisfies the November 541 2015 Order’s requirement for the Company to “show the impact their segregation 542 has on the class in which they would otherwise participate.”6 Exhibit 543 RMP___(RMM-13) indicates that the costs for the residential class would be 544 reduced by $1.1 million if net metering customers were excluded from their class, 545 whereas the costs for Schedules 6, 8, and 10 customers would increase by $0.3 546 million, $0.2 million, and $0.04 million, respectively. 6 Id. Page 26 - Direct Testimony of Robert M. Meredith 547 Q. Do the results of the NEM Breakout COS study mean that the net metering 548 program as currently structured is a significant benefit for Schedules 6, 8, and 549 10? 550 A. No, not necessarily. The analysis shows how the cost of service results vary for 551 specific groups of net metering customers relative to other customers within the 552 same class. For Schedules 6, 8, and 10, the seemingly favorable results may not be 553 so much an indication of the benefit (or cost savings) related to the net metering 554 program as it may be an indication of the characteristics of net metering customers. 555 As a percentage of their overall full requirements energy usage, private generation 556 production for customers on Schedules 6, 8, and 10 is quite small relative to the 557 residential and Schedule 23 classes. See Table 2 below: Table 2. Private Generation Relative to Full Requirements Usage 558 NEM Class Residential Net Metering Schedule 23 Net Metering Schedule 6 Net Metering Schedule 8 Net Metering Schedule 10 Net Metering 559 Q. Estimated Private Generation Production (MWh) 28,304 6,012 12,342 5,736 484 Private Generation Relative to Full Requirements Energy Usage (%) 55% 60% 13% 7% 28% What is the overall conclusion that you draw from the results of the NEM Breakout COS? 560 561 Full Requirements Energy Usage (MWh) 51,468 9,971 98,655 77,889 1,724 A. The cost of serving residential net metering customers is significantly different than 562 the cost of serving other residential customers. On a percentage basis, the revenue 563 collected from residential net metering customers is vastly insufficient to cover the 564 costs of serving them. Page 27 - Direct Testimony of Robert M. Meredith 565 While the results for other non-residential classes are different between the 566 classes with and without net metering, those differences are far less striking than 567 the clear contrast for residential customers. An examination of parity ratios, which 568 is the percentage of revenue relative to cost of service, reveals that revenues 569 collected from non-residential net metering rate schedules are within a reasonable 570 range (approximately 90 - 110 percent), but revenues collected from the residential 571 net metering schedule are quite far off from parity with cost of service 572 (approximately 60 percent). Table 3 below shows the parity ratios for all rate 573 schedules which have net metering customers for the actual cost of service, both 574 with net metering included and broken out separately. Table 3. Revenue to Cost of Service Parity Ratios 575 ACOS Residential Schedule 23 Schedule 10 Schedule 6 Schedule 8 576 Q. 96.0% 107.2% 95.3% 107.7% 104.1% 96.1% 107.3% 95.1% 107.7% 104% 60.6% 92.2% 89.8% 109.2% 109% How do the results for residential customers from the comparison between the CFCOS and the ACOS compare to the results for the NEM Breakout COS? 577 578 Parity to Cost of Service ACOS W/O ACOS NEM A. Both analyses demonstrate a similar result for residential net metering customers. 579 As shown on Exhibit RMP___(RMM-1), the analysis which compares the CFCOS 580 to the ACOS shows that the cost to the residential class of the net metering program 581 is $1.7 million. The NEM Breakout COS results in Exhibit RMP___(RMM-12) 582 show that the residential net metering class requires a $1.8 million increase to Page 28 - Direct Testimony of Robert M. Meredith 583 present revenues in order for the class to earn the jurisdictional average rate of 584 return. 585 586 Adjusting the NEM Breakout COS Results to the Same Basis as the Last General Rate Case 587 Q. residential net metering? 588 589 Upon what level of revenue requirement is it appropriate to design rates for A. Company witness Ms. Joelle R. Steward’s testimony describes the Company’s 590 proposed rate design for new residential net metering customers who submit net 591 metering applications after December 9, 2016. The revenue requirement upon 592 which those rates are designed is the same as the revenue requirement for the 593 residential net metering class in the NEM Breakout COS, but adjusted downward 594 to the same level of costs that were in Docket No. 13-035-184, the last general rate 595 case ("2014 GRC"). While the analysis comparing the CFCOS to the ACOS 596 provides useful information regarding the costs and benefits of the net metering 597 program, the NEM Breakout COS provides a more specific examination of the level 598 of revenue required to bring residential net metering customers to full cost of 599 service. Adjusting the NEM Breakout COS results for the residential net metering 600 class to the level used in the 2014 GRC ensures that rates for this class are set upon 601 the same basis as for all other customers. 602 Q. the same level of costs in the 2014 GRC? 603 604 How was the revenue requirement from the NEM Breakout COS adjusted to A. Exhibit RMP___(RMM-14) shows how the NEM Breakout COS results for the 605 residential net metering class were adjusted to the level of costs from the 2014 606 GRC. The class cost of service study that was filed in the 2014 GRC was modified Page 29 - Direct Testimony of Robert M. Meredith 607 so that the overall cost of service for the residential class was adjusted to the step 2 608 revenue of $684,856,2267. Column A in Exhibit RMP___(RMM-14) shows the unit 609 costs for the residential class from this study. Column B in Exhibit RMP___(RMM- 610 14) shows the unit costs for "other" residential customers from the NEM Breakout 611 COS. Column C in Exhibit RMP___(RMM-14) shows the unit costs for residential 612 net metering customers from the NEM Breakout COS. Column D in Exhibit 613 RMP___(RMM-14) shows the proportion of residential net metering revenue 614 requirement to overall residential revenue requirement from the NEM Breakout 615 COS for each sub-functional cost category. Sub-functional cost categories within 616 the units costs of the cost of service study include Production-Demand, Production- 617 Energy, Transmission-Demand, Transmission-Energy, Distribution-Substations, 618 Distribution - Poles and Conductor, Distribution - Services, Distribution - Meter, 619 Retail, and Miscellaneous. Column E in Exhibit RMP___(RMM-14) shows the 620 application of the proportions in Column D to the overall residential revenue 621 requirement from the 2014 GRC in Column A by each sub-functional cost category 622 and adds each of the costs for those categories. Exhibit RMP___(RMM-14) shows 623 a total of $4,210,660 for the total in Column E, which represents an eight percent 624 reduction in the revenue requirement for the residential net metering class relative 625 to the results from the NEM Breakout COS. 7 The step 2 price change became effective September 1, 2015 and reflects the currently effective base revenues for the Company. Page 30 - Direct Testimony of Robert M. Meredith 626 Conclusion 627 Q. What is your recommendation for the Commission? 628 A. The Company recommends that the Commission issue an order finding that the 629 results of both of the analyses that I presented are accurate, reliable and are 630 consistent with the November 2015 Order. 631 Q. Does this conclude your direct testimony? 632 A. Yes. Page 31 - Direct Testimony of Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-1) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Costs and Benefits of the Net Metering Program November 2016 Rocky Mountain Power State of Utah 12 Months Ended Dec 2015 Costs and Benefits of the Net Metering Program at the PacifiCorp System Level Unit $000 $000 $000 $000 System $161 $528 $83 $4,237 $000 $5,010 Benefits Lower Net Power Costs Lower Line Losses $000 $000 ($1,168) ($119) Total Benefit $000 ($1,287) Net Cost /(Benefit) $000 $3,722 Net Metering Energy Production MWh 52,877 $/MWh $70.40 Costs Increased Metering Cost Increased Engineering/Administration Increased Customer Service/Billing Cost Bill Credits Total Cost Net Cost /(Benefit) Rocky Mountain Power Exhibit RMP___(RMM-1) Page 1 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power State of Utah 12 Months Ended Dec 2015 Costs and Benefits of the Net Metering Program at the State of Utah Jurisdictional Level Unit $000 $000 $000 $000 State $161 $528 $83 $4,237 $000 $5,010 $000 $000 $000 ($1,168) ($1,673) ($119) Total Benefit $000 ($2,960) Net Cost /(Benefit) $000 $2,049 Net Metering Energy Production MWh 52,877 $/MWh $38.76 Costs Increased Metering Cost Increased Engineering/Administration Increased Customer Service/Billing Cost Bill Credits Total Cost Benefits Lower Net Power Costs Lower Interjurisdictional Allocation Lower Line Losses Net Cost /(Benefit) Rocky Mountain Power Exhibit RMP___(RMM-1) Page 2 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith 4,390 754,063 0.58% $377.83 MWh $/MWh # # % $/Customer/Year Net Metering Energy Production Net Cost /(Benefit) 28,304 $1,659 194 15,598 1.24% $1.85 12,342 $23 ($650) ($315) ($303) ($32) $673 Schedule 6 $17 $76 $2 $578 8 250 3.07% ($26.96) 5,736 ($155) ($395) ($143) ($237) ($15) $240 Schedule 8 $2 $17 $0 $221 $305.44 $118.25 ($20,169) $576.66 13 3,354 0.39% $15.46 484 $7 ($21) ($11) ($10) ($1) $29 Schedule 10 $2 $4 $0 $22 Net Cost /(Benefit) per Net Metering Customer 327 84,785 0.39% $16.59 6,012 $100 ($405) ($134) ($257) ($14) $504 Schedule 23 $19 $48 $8 $429 N/A N/A 12,543 N/A N/A N/A $415 $393 $111 $271 $11 $22 Other Classes $8 $13 $1 ($0) $415.62 4,931 870,593 0.57% $38.76 52,877 $2,049 ($2,959) ($1,168) ($1,673) ($118) $5,009 Total $161 $528 $83 $4,237 This summary shows that the net cost of the net metering program for the residential class in 2015 was $1.7 million, or $58.60 per MWh of net metering energy production. This results in an annual net cost of $377.83 per residential net metering customer. Net Metering Customer Count Total Customer Count Net Metering Customers as a Proportion of Total $58.60 $000 Net Cost /(Benefit) ($1,881) $000 Total Benefit ($675) ($1,137) ($69) $3,540 Residential $112 $369 $72 $2,987 $000 $000 $000 $000 Unit $000 $000 $000 $000 Benefits Lower Net Power Costs Lower Class Allocation Lower Line Losses Total Cost Costs Increased Metering Cost Increased Engineering/Administration Increased Customer Service/Billing Cost Bill Credits Rocky Mountain Power State of Utah 12 Months Ended Dec 2015 Costs and Benefits of the Net Metering Program at the Customer Class Level Rocky Mountain Power Exhibit RMP___(RMM-1) Page 3 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-2) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Summary of Results for ACOS and CFCOS November 2016 1 6 8 7,11,12 9 10 15 15 23 SpC SpC 1 2 3 4 5 6 7 8 9 10 11 Footnotes : Column C : Column D : Column E : Column F : Column G : Column H : Column I : Column J : Column K : Column L : Column M : 12 Schedule No. Line No. A 1,924,164,165 722,768,968 533,598,118 154,416,644 11,464,577 274,856,221 17,790,044 749,867 1,299,357 136,301,217 27,835,175 43,083,978 Annual Revenue C 7.56% 6.84% 9.03% 8.37% 13.49% 6.24% 6.70% 10.69% 16.87% 8.89% 3.59% 7.07% E Rate of Return Index D Return on Rate Base 1.00 0.90 1.19 1.11 1.78 0.82 0.89 1.41 2.23 1.18 0.48 0.93 F 1,924,164,165 753,134,240 495,607,035 148,401,480 9,189,663 292,446,983 18,665,894 653,949 933,992 127,155,013 34,002,137 43,973,781 Total Cost of Service G 1,297,521,618 436,475,060 348,886,702 108,153,715 3,432,666 241,723,062 12,284,228 347,942 724,228 80,398,458 27,944,711 37,150,844 Production Cost of Service Annual revenues based on January 2015 thru December 2015 data. Calculated Return on Ratebase per January 2015 thru December 2015 Embedded Cost of Service Study Rate of Return Index. Rate of return by rate schedule, divided by Utah Jurisdiction's normalized rate of return. Calculated Full Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study Calculated Generation Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Transmission Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Distribution Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Retail Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Miscellaneous Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Increase or Decrease Required to Move From Annual Revenue to Full Cost of Service Dollars. Increase or Decrease Required to Move From Annual Revenue to Full Cost of Service Percent. Total Utah Jurisdiction Residential General Service - Large General Service - Over 1 MW Street & Area Lighting General Service - High Voltage Irrigation Traffic Signals Outdoor Lighting General Service - Small Customer 1 Customer 2 Description B Rocky Mountain Power Actual Cost Of Service By Rate Schedule State of Utah 12 Months Ended Dec 2015 2010 Protocol (Non Wgt) 7.56% = Earned Return on Rate Base H 282,217,001 102,407,582 74,992,811 22,370,680 536,090 49,344,860 2,525,492 65,799 108,653 17,629,481 5,759,093 6,476,460 Transmission Cost of Service I 302,714,369 180,687,794 68,043,229 17,250,025 4,926,384 189,471 3,778,197 156,863 80,392 27,421,288 81,451 99,274 Distribution Cost of Service J 33,400,393 30,142,568 1,544,364 5,753 258,268 44,276 (3,963) 80,803 17,456 1,131,617 83,896 95,357 Retail Cost of Service K 8,310,784 3,421,235 2,139,929 621,306 36,254 1,145,314 81,940 2,542 3,262 574,169 132,987 151,846 Misc Cost of Service L (0) 30,365,272 (37,991,083) (6,015,164) (2,274,915) 17,590,762 875,850 (95,918) (365,365) (9,146,204) 6,166,962 889,803 Increase (Decrease) to = ROR M 0.00% 4.20% -7.12% -3.90% -19.84% 6.40% 4.92% -12.79% -28.12% -6.71% 22.16% 2.07% Percentage Change from Current Revenues Rocky Mountain Power Exhibit RMP___(RMM-2) Page 1 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith 1 6 8 7,11,12 9 10 15 15 23 SpC SpC 1 2 3 4 5 6 7 8 9 10 11 Footnotes : Column C : Column D : Column E : Column F : Column G : Column H : Column I : Column J : Column K : Column L : Column M : 12 Schedule No. Line No. A 1,928,401,585 725,755,615 534,176,006 154,637,763 11,464,578 274,856,220 17,812,538 749,866 1,299,358 136,730,488 27,835,175 43,083,978 Annual Revenue C 7.58% 6.88% 9.03% 8.35% 14.33% 6.25% 6.71% 10.74% 16.89% 8.90% 3.60% 7.08% E Rate of Return Index D Return on Rate Base 1.00 0.91 1.19 1.10 1.89 0.82 0.88 1.42 2.23 1.17 0.47 0.93 F 1,926,352,189 754,462,147 496,162,036 148,777,226 8,916,551 292,331,142 18,680,912 652,337 933,492 127,484,531 33,988,467 43,963,347 Total Cost of Service G 1,299,905,499 437,945,762 349,486,989 108,456,328 3,198,163 241,655,247 12,306,209 347,842 724,187 80,702,235 27,936,507 37,146,029 Production Cost of Service Annual revenues based on January 2015 thru December 2015 data. Calculated Return on Ratebase per January 2015 thru December 2015 Embedded Cost of Service Study Rate of Return Index. Rate of return by rate schedule, divided by Utah Jurisdiction's normalized rate of return. Calculated Full Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study Calculated Generation Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Transmission Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Distribution Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Retail Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Miscellaneous Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Increase or Decrease Required to Move From Annual Revenue to Full Cost of Service Dollars. Increase or Decrease Required to Move From Annual Revenue to Full Cost of Service Percent. Total Utah Jurisdiction Residential General Service - Large General Service - Over 1 MW Street & Area Lighting General Service - High Voltage Irrigation Traffic Signals Outdoor Lighting General Service - Small Customer 1 Customer 2 Description B H 282,649,490 102,692,687 75,090,162 22,427,634 511,451 49,306,132 2,529,485 65,737 108,569 17,691,233 5,754,565 6,471,834 Transmission Cost of Service Rocky Mountain Power Counterfactual Cost Of Service By Rate Schedule State of Utah 12 Months Ended Dec 2015 2010 Protocol (Non Wgt) 7.56% = Target Return on Rate Base I 302,383,164 180,516,771 67,907,980 17,264,592 4,916,375 183,301 3,767,900 156,242 80,202 27,410,035 80,976 98,789 Distribution Cost of Service J 33,102,808 29,882,860 1,537,545 6,601 254,936 43,384 (4,586) 79,980 17,279 1,105,984 83,692 95,133 Retail Cost of Service K 8,311,228 3,424,067 2,139,359 622,072 35,626 1,143,078 81,904 2,535 3,256 575,045 132,727 151,560 Misc Cost of Service L (2,049,396) 28,706,532 (38,013,970) (5,860,537) (2,548,027) 17,474,922 868,374 (97,529) (365,866) (9,245,957) 6,153,292 879,369 Increase (Decrease) to = ROR M -0.11% 3.96% -7.12% -3.79% -22.23% 6.36% 4.88% -13.01% -28.16% -6.76% 22.11% 2.04% Percentage Change from Current Revenues Rocky Mountain Power Exhibit RMP___(RMM-2) Page 2 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith 1 6 8 7,11,12 9 10 15 15 23 SpC SpC 1 2 3 4 5 6 7 8 9 10 11 Footnotes : Column C : Column D : Column E : Column F : Column G : Column H : Column I : Column J : Column K : Column L : Column M : 12 Schedule No. Line No. A 4,237,420 2,986,647 577,888 221,119 1 (1) 22,494 (1) 1 429,271 0 0 Annual Revenue C 0.02% 0.04% 0.00% -0.02% 0.84% 0.01% 0.01% 0.06% 0.02% 0.01% 0.01% 0.01% E Rate of Return Index D Return on Rate Base 0.00 0.00 (0.00) (0.01) 0.11 (0.00) (0.00) 0.00 (0.00) (0.00) (0.00) (0.00) F 2,188,024 1,327,908 555,001 375,747 (273,111) (115,841) 15,018 (1,612) (500) 329,518 (13,671) (10,434) Total Cost of Service G 2,383,881 1,470,701 600,287 302,613 (234,503) (67,815) 21,981 (100) (41) 303,777 (8,205) (4,815) Production Cost of Service Annual revenues based on January 2015 thru December 2015 data. Calculated Return on Ratebase per January 2015 thru December 2015 Embedded Cost of Service Study Rate of Return Index. Rate of return by rate schedule, divided by Utah Jurisdiction's normalized rate of return. Calculated Full Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study Calculated Generation Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Transmission Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Distribution Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Retail Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Miscellaneous Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Increase or Decrease Required to Move From Annual Revenue to Full Cost of Service Dollars. Increase or Decrease Required to Move From Annual Revenue to Full Cost of Service Percent. Total Utah Jurisdiction Residential General Service - Large General Service - Over 1 MW Street & Area Lighting General Service - High Voltage Irrigation Traffic Signals Outdoor Lighting General Service - Small Customer 1 Customer 2 Description B 432,489 285,105 97,351 56,954 (24,639) (38,727) 3,993 (62) (84) 61,751 (4,527) (4,626) Transmission Cost of Service H Rocky Mountain Power Counterfactual Cost Of Service less Actual Cost of Service By Rate Schedule State of Utah 12 Months Ended Dec 2015 2010 Protocol (Non Wgt) 7.56% = Target Return on Rate Base I (331,205) (171,023) (135,249) 14,567 (10,009) (6,170) (10,297) (621) (191) (11,253) (475) (484) Distribution Cost of Service J (297,585) (259,708) (6,819) 848 (3,332) (893) (622) (822) (177) (25,633) (204) (224) Retail Cost of Service K 444 2,832 (569) 765 (629) (2,236) (36) (7) (6) 876 (260) (286) Misc Cost of Service L (2,049,396) (1,658,740) (22,887) 154,628 (273,112) (115,840) (7,476) (1,611) (501) (99,753) (13,671) (10,434) Increase (Decrease) to = ROR M -0.11% -0.25% 0.00% 0.11% -2.38% -0.04% -0.05% -0.21% -0.04% -0.05% -0.05% -0.02% Percentage Change from Current Revenues Rocky Mountain Power Exhibit RMP___(RMM-2) Page 3 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-3) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Benchmark of Utah Residential Distributed Generation Production Shape to National Renewable Energy Laboratory’s PVWatts® Distributed Generation Shape November 2016 Rocky Mountain Power Exhibit RMP___(RMM-3) Page 1 of 5 Docket No. 16-035-__ Witness: Robert M. Meredith Benchmark of Utah Residential Distributed Generation Production Shape to National Renewable Energy Laboratory’s PVWatts® Distributed Generation Shape Prepared and Published by the Load Research Group October 6, 2016 Rocky Mountain Power Exhibit RMP___(RMM-3) Page 2 of 5 Docket No. 16-035-__ Witness: Robert M. Meredith Background In order to benchmark the residential distributed generation production shape, the Company compared our findings to the hourly shapes from National Renewable Energy Laboratory’s (“NREL”) online PVWatts® calculator. NREL's PVWatts® Calculator is a web-based application developed by NREL that estimates the electricity production of a grid-connected roof- or ground-mounted photovoltaic system. PVWatts® uses a number of sub-models to predict overall system performance, and includes several built-in parameters.1 PVWatts® requires hourly data for one year for two components of solar irradiance (beam and diffuse), ambient dry bulb temperature, and wind speed at 10 meters above the ground. The PVWatts® web application interacts with three online databases to access solar resource data and does not allow users to specify their own weather data. Typical year solar resource data uses a single year's worth of hourly data to represent solar radiation and meteorological data collected over a historical period of multiple years. Each PVWatts® typical year file contains months of data selected from different years in the data collection period. For example, data for a given site might contain 1995 data for the month of February, 2001 data for March, 1998 data for April.2 As illustrated in Figure A-1, both the residential distributed generation production curve and the PVWatts® curve exhibit similar behavior and shape. However, the residential distributed generation curve during the months of May and December are lower than the PVWatts® curve. A possible explanation for this was found by evaluating average hourly cloud cover data for Salt Lake City over the 8am to 7pm timeframe. The Company found that, on average, the percentage of cloud cover on an hourly basis in Salt Lake City during May 2015 was 67 percent.3 Whereas, the five-year average for May over the 2011 to 2015 period is 55 percent. Indicating that May 2015 was cloudier than normal. Similarly, the percentage of cloud cover on an hourly basis over the 8am to 7pm timeframe was 66 percent for Salt Lake City in December 2015. Whereas, the five-year average for December over the 2011 to 2015 period is 60 percent.4 Dobos, Aron P., September 2014, NREL, PVWatts® Version 5 Manual, Website (http://pvwatts.nrel.gov/pvwatts.php) accessed October 4, 2016. 2 PVWatts®, PVWatts® Documentation/Solar Resource Data, Website (http://pvwatts.nrel.gov/pvwatts.php#help_resource_typicalyear) accessed October 6, 2016. 3 MDA Federal Weather Data, Salt Lake City Airport 4 Ibid. 1 Rocky Mountain Power Exhibit RMP___(RMM-3) Page 3 of 5 Docket No. 16-035-__ Witness: Robert M. Meredith Figure A-1 Hourly Average Power Generation for Utah NEM and NREL 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 01‐01 01‐09 01‐17 02‐01 02‐09 02‐17 03‐01 03‐09 03‐17 04‐01 04‐09 04‐17 05‐01 05‐09 05‐17 06‐01 06‐09 06‐17 07‐01 07‐09 07‐17 08‐01 08‐09 08‐17 09‐01 09‐09 09‐17 10‐01 10‐09 10‐17 11‐01 11‐09 11‐17 12‐01 12‐09 12‐17 0 NREL Company In order to provide more than a visual comparison of the two data, the Company, elected to compare the two samples by constructing a linear regression. A regression assesses whether the predictor variables (the Company residential distributed generation production shape) account for variability in a dependent variable (the PVWatts® production shape). By treating the PVWatts® generation data as the dependent variable and the residential distributed generation production sample data as the independent variable the Company can measure how representative the sample data is to the PVWatts® data. The regression model produces numerous statistics that provide an indication of how representative the two datasets are of one another. A description of these statistics and how they indicate a relationship between the data are provided below. Regression Model Fit Adjusted R-squared, or the coefficient of determination, is a statistical measure of how close the data are to the fitted regression line. The Adjusted R-squared value corrects for inflation of the R-squared value due to the number of variables in the model. It is the percentage of the total variation in the dependent variable explained by the regression model and is measured on a scale of 0 to 1. An Adjusted R-squared value of 1 indicates the dependent variable is entirely determined by the independent variables. As provided in Table A-1, the regression has an Adjusted R-squared of 0.994, indicating that the model is a good predictor of the dependent variable. Durbin-Watson statistic is used to test for the presence of autocorrelation in residuals and is measured on a scale of 0 to 4. Autocorrelation means the residuals (the actual values of Rocky Mountain Power Exhibit RMP___(RMM-3) Page 4 of 5 Docket No. 16-035-__ Witness: Robert M. Meredith the dependent variable minus the predicted values) from the regression are not mutually independent. If they are correlated, then least-squares regression underestimates the standard error of the coefficients and the predictors could appear significant when they may not be. A low (0) and high (4) Durbin-Watson statistic indicates the presence of autocorrelation; whereas, a Durbin-Watson statistic of 2 specifies that autocorrelation has been removed from the regression. As provided in Table A-1, the regression has a Durbin-Watson statistic of 2.082, indicating that autocorrelation has been corrected within the model. Regression Results The regression coefficient represents the slope of the linear regression. If the coefficient is significant (i.e., the t-value is significant), the coefficient indicates that for every 1.0unit change in the independent variable, the prediction of the dependent variable will change by the coefficient’s value. For example, as provided in Table A-1, the independent variable (Company) coefficient is 1.036 and statistically significant. Therefore, for each 1.0-unit increase in the independent variable, the predicted value of the dependent variable will increase by 1.036 units, indicating the two sets of data behave similarly. Elasticity is a measure of how responsive a variable is based on the change in another variable. Specifically, elasticity is the percentage change in the dependent variable due to a percent change in the independent variable. An elasticity of 1.0 indicates that for a 1.0 percent change in the independent variable there is a corresponding 1.0 percent change in the dependent variable. As provided in Table A-1, the coefficient has an elasticity of 0.942, indicating that a 1.0 percent change in the independent variables will result in a 0.942 percent change in the dependent variable, indicating the two sets of data behave similarly. Correlation coefficient is a measure of the strength of the degree of association between to random variables and ranges in value from -1 to 1. As provided in Table A-1, the correlation coefficient of 0.984 indicates a strong degree of association between the independent and dependent variable and that the data behave similarly. Rocky Mountain Power Exhibit RMP___(RMM-3) Page 5 of 5 Docket No. 16-035-__ Witness: Robert M. Meredith Table A-1 Regression Results Variable CONST Company AR(1) AR(2) Variable Company Model Statistics Adjusted Observations R‐Squared Adjusted R‐Squared Sum of Squared Errors Mean Squared Error Std. Error of Regression Durbin‐Watson Statistic Correlation Table NREL Company Coefficient Standard Error 0.005 0.005 1.036 0.021 1.252 0.049 ‐0.419 0.048 Coefficient Mean 1.036 0.187 286 0.994 0.994 0.12 0 0.02 2.082 NREL T‐Stat 1.145 50.283 25.476 ‐8.659 Elasticity 0.942 Company 1 0.984 0.984 1 P‐Value 25.34% 0.00% 0.00% 0.00% Rocky Mountain Power Exhibit RMP___(RMM-4) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Difference in Energy Sales Between CFCOS and ACOS November 2016 Line No. Residential General Service-Distribution-Small General Service-Distribution General Service-Distribution > 1,000 kW Irrigation Total Sales to Net Metering Customers 1 2 3 4 5 6 Description (1) 135 23-135 6-135 8-135 10-135 Tariff Sch No. (1) 4,931 4,390 327 194 8 13 Average No. of Customers Actual (2) 188,410 23,912 4,692 86,284 72,182 1,340 Actual Billed Energy (MWh) (3) 211,497 39,124 7,175 91,321 72,329 1,549 Energy Delivered from the Energy Grid to the Customer (MWh) (4) 24,668 15,961 3,216 5,007 175 309 Energy Exported from Private Generation to the Energy Grid (MWh) (5) 52,877 28,304 6,012 12,342 5,736 484 Estimated Private Generation Production (MWh) (6) Difference in Energy Sales Between Counterfactual Cost of Service and Actual Cost of Service Rocky Mountain Power State of Utah 12 Months Ending December 2015 239,706 51,468 9,971 98,655 77,889 1,724 51,297 27,556 5,279 12,371 5,707 384 Full Requirements Difference Between Energy Usage CFCOS and ACOS (MWh) (MWh) (7) (8) (4) + [(6) - (5)] (7) - (3) Rocky Mountain Power Exhibit RMP___(RMM-4) Page 1 of 1 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-5) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Bill Credits Related to the Net Metering Program November 2016 Line No. 135 6-135 23-135 6-135 6A-135 8-135 23-135 6-135 6A-135 23-135 10-135 Residential Residential General Service-Distribution General Service-Distribution-Small Total Residential Commercial General Service-Distribution General Service-Distribution-Energy TOD General Service-Distribution > 1,000 kW General Service-Distribution-Small Total Commercial Industrial General Service-Distribution General Service-Distribution-Energy TOD General Service-Distribution-Small Total Industrial Irrigation Irrigation Total Irrigation Total Bill Credits 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Description (1) Tariff Sch No. (2) 4,931 13 13 7 7 11 25 154 19 8 277 457 4,390 6 40 4,436 Average No. of Customers Actual (3) 239,706 1,724 1,724 3,154 5,354 542 9,051 85,384 3,653 77,889 8,940 175,865 51,468 1,110 489 53,066 MWh Actual (4) $20,903 $133 $133 $328 $620 $45 $993 $7,007 $402 $5,609 $833 $13,851 $5,765 $110 $50 $5,925 Revenues ($000) Actual (5) CFCOS Without DG Bill Credits Related to the Net Metering Program Rocky Mountain Power State of Utah 12 Months Ending December 2015 188,410 1,340 1,340 2,823 3,617 242 6,682 76,337 2,516 72,182 4,206 155,241 23,912 991 244 25,147 MWh Actual (6) ACOS With DG $16,665 $111 $111 $316 $467 $23 $806 $6,683 $317 $5,387 $448 $12,836 $2,778 $106 $28 $2,912 Revenues ($000) Actual (7) 51,297 384 384 331 1,737 300 2,369 9,047 1,137 5,707 4,734 20,624 27,556 119 245 27,919 MWh Actual (8) $4,237 $22 $22 $12 $153 $22 $187 $324 $84 $221.1 $385 $1,015 $2,987 $4 $22 $3,013 Revenues ($000) Actual (9) Difference Rocky Mountain Power Exhibit RMP___(RMM-5) Page 1 of 1 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-6) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Customer Service and Billing Cost Related to Utah Net Metering Program November 2016 8,015 3,127 4,945 7,383 2,961 4,390 350 80 327 243 63 194 9 2 7 30 21 28 FERC Account Total Cost for Utah Cost Related to Residential Cost Related to Schedule 23 Cost Related to Schedule 6 Cost Related to Schedule 8 Cost Related to Schedule 10 903 $13,686 $12,607 $598 $415 $15 $51 903 $18,795 $17,797 $481 $379 $12 $126 903 $50,510 $44,843 $3,336 $1,977 $68 $286 903 $82,991 $75,247 $4,415 $2,771 $95 $463 Notes To determine the proportion of each cost category that is related to the different customer classes, overall cost estimates for each activity are spread based upon appropriate drivers for those costs. The cost for phone calls is allocated on the number of applications in the period, since the cost is primarily for customers who are considering participation in the net metering program. Initial setup cost is allocated based upon the number of interconnections during the period. Ongoing support is allocated by the average bills during the period. 2015 Applications 2015 Interconnections 2015 Net Metering Customers Description Phone Calls Initial Setup Ongoing Support Total Customer Service and Billing Cost Related to Utah Net Metering Program 12 Months Ending December 31, 2015 Rocky Mountain Power Exhibit RMP___(RMM-6) Page 1 of 1 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-7) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Administration Cost Related to Utah Net Metering Program November 2016 Description Estimated Incremental Cost of Administration Application Fee Revenue Net Estimated Incremental Cost of Administration Administration Cost Related to Utah Net Metering Program 12 Months Ending December 31, 2015 FERC Total Cost for Cost Related to Cost Related to Cost Related to Cost Related to Cost Related to Accounting Utah Residential Schedule 23 Schedule 6 Schedule 8 Schedule 10 903 $242,247.73 $198,751.88 $16,109.57 $19,667.11 $671.23 $7,047.94 903 ($16,988.46) ($137.90) ($7,404.43) ($5,880.37) ($1,292.00) ($2,273.76) 903 $225,259.27 $198,613.98 $8,705.14 $13,786.74 ($620.77) $4,774.18 Rocky Mountain Power Exhibit RMP___(RMM-7) Page 1 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith Customer Generation Administrative Expense $242,248 $1,812 $2,148 Utah Wyoming Idaho 3,127 17 32 1.15 1.59 1.00 3,609 27 32 Description Interconnection Count Complexity Weighting Weighted Interconnection Count $46,382 $12,149 $3,021 $307,760 Oregon Washington California Total 539 141 43 3,899 1.28 1.28 1.05 691 181 45 4,585 Cost Related to Cost Related to Cost Related to Cost Related to Schedule 23 Schedule 6 Schedule 8 Schedule 10 80 63 2 21 3 5 5 5 240 293 10 105 $16,109.57 $19,667.11 $671.23 $7,047.94 Cost Related to Total Cost for Utah Residential 3,127 2,961 1 3,609 2,961 $242,247.73 $198,751.88 Description Interconnection Count Complexity Weighting Weighted Interconnection Count Estimated Incremental Cost of Administration State and Class Allocation of Net Metering Administration Cost 12 Months Ending December 31, 2015 Rocky Mountain Power Exhibit RMP___(RMM-7) Page 2 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-7) Page 3 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith Administration Complexity Weighting Factors by State 12 Months Ending December 31, 2015 Utah Schedule 08NETMT135 08NMT06135 08NMT10135 08NMT23135 08NMT6A135 08RNM06135 08RNM23135 08NMT08135 Total Wyoming Interconnections 2,961 51 21 66 11 1 14 2 3,127 Complexity Weighting 1 5 5 3 3 5 3 5 State Complexity Weighting Weighted Interconnections 2,961 255 105 198 33 5 42 10 3,609 1.15 Idaho Schedule 07NETMT135 Total Complexity Weighted Interconnections Interconnections Weighting 32 1 32 Complexity Weighting 1 3 3 17 Weighted Interconnections 12 12 3 27 State Complexity Weighting 32 32 Schedule 01NETMT135 01NMT23135 01NMT28135 01NMT41135 01NMTOU135 01RNETM023 01NMU41135 01NMT41215 Total 1.00 State Complexity Weighting Washington Total Total Interconnections 12 4 1 1.59 Oregon State Complexity Weighting Schedule 02NETMT135 02NMT24135 02NMT36135 02NMT48135 Schedule 05NETMT135 05NMT25135 05NMT28135 Interconnections 478 26 18 3 3 7 3 1 539 Complexity Weighting 1 3 5 3 1 3 3 3 Weighted Interconnections 478 78 90 9 3 21 9 3 691 1.28 California Interconnections 125 12 3 1 141 State Complexity Weighting Complexity Weighting 1 3 5 5 Weighted Interconnections 125 36 15 5 Schedule 06NETMT135 06NMT32135 Complexity Weighted Interconnections Weighting Interconnections 42 1 42 1 3 3 181 Total 43 1.28 State Complexity Weighting 45 1.05 The complexity weightings are based upon the Company's estimates of time it takes to process net metering applications from customers on various rate schedules. Rocky Mountain Power Exhibit RMP___(RMM-8) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Engineering Cost Related to Utah Net Metering Program November 2016 Description Cost of Engineer ($/hour) Application Review Time (Hours) Cost of Engineering for Each Interconnection 2015 Applications Estimated Incremental Cost of Engineering Engineering Cost Related to Utah Net Metering Program 12 Months Ending December 31, 2015 91.72 580 Cost Related to Schedule 23 Cost Related to Schedule 6 Cost Related to Schedule 8 Cost Related to Schedule 10 0.33 0.50 2.00 3.00 4.00 $45.86 $183.44 $275.16 $366.88 $30.57 7,383 350 243 9 30 $299,808 $225,698 $16,051 $44,576 $2,476 $11,006 FERC Account Total Cost for Utah Cost Related to Residential Rocky Mountain Power Exhibit RMP___(RMM-8) Page 1 of 1 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-9) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Metering Cost Related to Utah Net Metering Program November 2016 Meter Capital Cost per Installation in 2002 Meter Capital Cost per Installation in 2003 Meter Capital Cost per Installation in 2004 Meter Capital Cost per Installation in 2005 Meter Capital Cost per Installation in 2006 Meter Capital Cost per Installation in 2007 Meter Capital Cost per Installation in 2008 Meter Capital Cost per Installation in 2009 Meter Capital Cost per Installation in 2010 Meter Capital Cost per Installation in 2011 Meter Capital Cost per Installation in 2012 Meter Capital Cost per Installation in 2013 Meter Capital Cost per Installation in 2014 Meter Capital Cost per Installation in 2015 Interconnections in 2002 Interconnections in 2003 Interconnections in 2004 Interconnections in 2005 Interconnections in 2006 Interconnections in 2007 Interconnections in 2008 Interconnections in 2009 Interconnections in 2010 Interconnections in 2011 Interconnections in 2012 Interconnections in 2013 Interconnections in 2014 Interconnections in 2015 Description Estimated Incremental Cost of Reprogramming Meters Percent of Meters to Reprogram versus Replace Metering Cost Related to Utah Net Metering Program 12 Months Ending December 31, 2015 FERC Account Total Cost for Utah ‐ ‐ ‐ ‐ ‐ 1 ‐ 7 18 30 24 29 53 63 $419.64 $419.07 $419.07 $411.15 $411.15 $411.15 $411.15 $411.15 $411.15 $417.96 $417.96 $417.96 $417.96 $417.96 ‐ ‐ 1 2 ‐ 3 29 13 17 31 25 46 65 80 $353.84 $353.84 $353.84 $341.71 $341.71 $341.71 $341.71 $341.71 $341.71 $364.92 $364.92 $364.92 $364.92 $364.92 1 4 3 49 14 60 184 112 198 274 393 607 1,232 2,961 $162.23 $163.12 $163.12 $153.08 $153.14 $176.25 $188.31 $188.31 $188.31 $188.31 $188.31 $188.31 $188.31 $188.31 $506.60 $506.60 $506.60 $489.03 $489.03 $489.03 $489.03 $489.03 $489.03 $451.20 $451.20 $451.20 $451.20 $451.20 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ ‐ 3 2 ‐ 2 $419.64 $419.07 $419.07 $411.15 $411.15 $411.15 $411.15 $411.15 $411.15 $417.96 $417.96 $417.96 $417.96 $417.96 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 ‐ 5 21 Cost Related to Cost Related to Cost Related to Cost Related to Cost Related to Residential Schedule 23 Schedule 6 Schedule 8 Schedule 10 $237.00 $237.00 $237.00 N/A $237.00 0% 20% 47% 43% 4% Rocky Mountain Power Exhibit RMP___(RMM-9) Page 1 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith $38,841.40 403 586 Reprogramming Cost Expense in 2015 $0.00 $3,792.00 $7,110.00 Deprecia on expense is determined from the deprecia on in 2015. To determine accumulated depreciation for meters, the capital for each year is depreciated by the currently effective depreciation rates for each year and summed across all years. Data reflects a 13 month average, as is used in the results of operations reports. To determine gross meter plant, the number of installed meters for each year are multiplied by the cost of a meter capable of measuring bi‐directional energy flows for the year and summed across all years from 2002 through 2015. Data reflects a 13 month average, as is used in the results of operations reports. Notes To measure the bi‐directional flow of energy for a net metering customer, the meter for residential customers is replaced. Some of the meters installed for non‐residential customers may be capable of measuring bi‐directional flows of energy, but need to be reprogrammed to do so. For non‐residential customers, the meter is therefore either replaced or reprogrammed. The proportions that were reprogrammed versus replaced for each non‐residential customer class are assumed to be the same as the proportions of meters currently in place that are capable of being reprogrammed or which would have to be replaced. To determine meter reprogramming expense for 2015, the number of interconnections during 2015 are multiplied by the estimated proportion of meters that need to be reprogrammed which are multiplied by the estimated cost of reprogramming. $11,376.00 $995,933.41 ‐$74,167.82 $237.00 $237.00 Total Cost for Cost Related to Cost Related to Cost Related to Cost Related to Cost Related to Utah Residential Schedule 23 Schedule 6 Schedule 8 Schedule 10 $162.23 $162.23 $0.00 $0.00 $0.00 $0.00 $652.46 $0.00 $0.00 $0.00 $0.00 $652.46 $0.00 $0.00 $0.00 $843.19 $489.35 $353.84 $683.41 $0.00 $0.00 $411.15 $8,595.33 $7,500.77 $2,144.01 $2,144.01 $0.00 $0.00 $0.00 $0.00 $10,574.71 $683.41 $411.15 $0.00 $0.00 $11,669.27 $7,859.27 $0.00 $0.00 $0.00 $42,508.55 $34,649.28 $3,417.07 $1,644.58 $489.03 $0.00 $26,641.55 $21,090.87 $37,285.64 $4,783.90 $4,111.46 $0.00 $0.00 $46,181.00 $51,597.30 $9,123.00 $6,687.36 $0.00 $0.00 $67,407.66 $74,006.35 $7,298.40 $5,433.48 $902.40 $417.96 $88,058.59 $134,527.61 $114,304.97 $13,502.04 $6,269.40 $451.20 $0.00 $231,999.55 $18,975.84 $11,702.88 $0.00 $2,089.80 $264,768.07 $603,547.78 $557,589.82 $23,354.88 $13,792.68 $451.20 $8,359.20 370 108370 FERC Account Meters Gross Plant (13‐month average) Accumulated Depreciation (13‐month average) Accumulated Deferred Income Tax Balance (ADIT) Depreciation Expense Description Estimated Incremental Metering Capital Cost in 2002 Estimated Incremental Metering Capital Cost in 2003 Estimated Incremental Metering Capital Cost in 2004 Estimated Incremental Metering Capital Cost in 2005 Estimated Incremental Metering Capital Cost in 2006 Estimated Incremental Metering Capital Cost in 2007 Estimated Incremental Metering Capital Cost in 2008 Estimated Incremental Metering Capital Cost in 2009 Estimated Incremental Metering Capital Cost in 2010 Estimated Incremental Metering Capital Cost in 2011 Estimated Incremental Metering Capital Cost in 2012 Estimated Incremental Metering Capital Cost in 2013 Estimated Incremental Metering Capital Cost in 2014 Estimated Incremental Metering Capital Cost in 2015 Metering Cost Related to Utah Net Metering Program 12 Months Ending December 31, 2015 Rocky Mountain Power Exhibit RMP___(RMM-9) Page 2 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith Year End 13‐month average $1,297,707 $ 995,933 2002 through 2004 2005 through 2007 2008 through 2010 2011 through 2013 2014 through 2015 Totals Tax Data: $38,841 Account 403 ‐ Depreciation Expense 1,658 22,408 115,332 289,995 868,316 1,297,709 Plant in Service $38,841 ‐$95,387 $ (74,168) Account 108370 ‐ Accumulated Depreciation $41 2004 $5 $22 $14 $198 2005 $5 $22 $28 $143 Depreciation Rates: 64 874 4,498 11,310 22,095 38,841 39 1,001 2,832 7,211 322,648 333,731 (12) 50 (634) (1,555) 114,064 111,913 SCHMAT SCHMDT 41010 Book Tax Def Inc Depreciation Depreciation Tax Exp $16 $3 Account 370 ‐ Gross Plant 2003 $5 $11 Estimated Incremental Metering Capital Cost in 2002 Estimated Incremental Metering Capital Cost in 2003 Estimated Incremental Metering Capital Cost in 2004 Estimated Incremental Metering Capital Cost in 2005 Estimated Incremental Metering Capital Cost in 2006 Estimated Incremental Metering Capital Cost in 2007 Estimated Incremental Metering Capital Cost in 2008 Estimated Incremental Metering Capital Cost in 2009 Estimated Incremental Metering Capital Cost in 2010 Estimated Incremental Metering Capital Cost in 2011 Estimated Incremental Metering Capital Cost in 2012 Estimated Incremental Metering Capital Cost in 2013 Estimated Incremental Metering Capital Cost in 2014 Estimated Incremental Metering Capital Cost in 2015 2002 $3 Total Cost for Utah $162 $652 $843 $8,595 $2,144 $11,669 $42,509 $26,642 $46,181 $67,408 $88,059 $134,528 $264,768 $603,548 Metering Depreciation Related to Utah Net Metering Program 12 Months Ending December 31, 2015 (280) (1,737) (21,049) (63,965) (107,202) (194,233) 282 ADIT 13‐month Average $376 2006 $5 $22 $28 $285 $36 4/1/2000 4/1/2003 1/1/2008 1/1/2014 $605 2007 $5 $22 $28 $285 $71 $194 3.79% 3.32% 3.25% 3.90% $1,473 2008 $5 $21 $27 $279 $70 $379 $691 $2,597 2009 $5 $21 $27 $279 $70 $379 $1,382 $433 $3,780 2010 $5 $21 $27 $279 $70 $379 $1,382 $866 $750 $5,626 2011 $5 $21 $27 $279 $70 $379 $1,382 $866 $1,501 $1,095 $8,152 2012 $5 $21 $27 $279 $70 $379 $1,382 $866 $1,501 $2,191 $1,431 $11,769 2013 $5 $21 $27 $279 $70 $379 $1,382 $866 $1,501 $2,191 $2,862 $2,186 $21,909 2014 $6 $25 $33 $335 $84 $455 $1,658 $1,039 $1,801 $2,629 $3,434 $5,247 $5,163 2015 $6 $25 $33 $335 $84 $455 $1,658 $1,039 $1,801 $2,629 $3,434 $5,247 $10,326 $11,769 $38,841 Total $74 $276 $328 $3,060 $692 $3,379 $10,914 $5,974 $8,855 $10,735 $11,161 $12,679 $15,489 $11,769 $95,387 Rocky Mountain Power Exhibit RMP___(RMM-9) Page 3 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-10) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Sampling Plans, Procedures and Selections for the Profile Metering Sample of Utah Residential Distributed Generation November 2016 Rocky Mountain Power Exhibit RMP___(RMM-10) Page 1 of 11 Docket No. 16-035-__ Witness: Robert M. Meredith 0 KY' MOUNTAIN WER Sampling Plans, Procedures and Selections For the Profile Metering Sample of Utah Residential Distributed Generation 2014 Prepared and Published by the Load Research Group May2014 Rocky Mountain Power Exhibit RMP___(RMM-10) Page 2 of 11 Docket No. 16-035-__ Witness: Robert M. Meredith May 9, 2014 Executive Summary This sample design was prepared in support of the Load Research Company Cost-ofService commitment, with the intent of installing a load study on the Company's Utah Residential Distributed Generation Class. All sample designs were prepared in accordance with PURPA standards and, as such, are expected to provide estimates of system peak demand that achieve, at a minimum, ±10% precision at the 90% confidence level. The recommended sample design for this study incorporates four strata and calls for the installation of 62 load recorders. Based on the level of recorders installed, the sample design estimates an achieved precision level of ±10% at the 95% confidence level. The strata boundaries for this sample are based upon the "cumulative square root off" rule as defined in studies by Dalenius/Hodges. Appendix 1 contains a listing of both primary and alternate sample sites selected for this study. These sites have been cross referenced against current installations, and any duplicates have been noted. Scott D. Thornton Manager, Load Research Rocky Mountain Power Exhibit RMP___(RMM-10) Page 3 of 11 Docket No. 16-035-__ Witness: Robert M. Meredith Utah Residential DG (2014) Load Recorder Study Sampling Procedures This paper describes the procedures used to develop the 2014 Utah Residential Distributed Generation Load Study. This study will provide load data for use in support of cost studies and price filings before the Utah Public Service Commission, and for use in studies of customer demand characteristics. The goal of this sample design is to provide relative precision of± 10% at the 95% confidence level for an estimate of demand at the time of the monthly system peak hours. Recorders will be placed in service effective no later than August 1st, 2014, and will be monitored on a continuous basis to insure no significant deviation from billing records. Sampling Plan for Utah This sampling plan includes several steps: 1. 2. 3. 4. 5. 6. 7. 8. 9. Formalization of the sample parameters; Specification of the target variable; Choice of the stratification variable; Choice of method for estimating kW; Choice of the number of strata; Construction of the strata boundaries Allocation of sample points to each stratum; Selection of primary sample sites; Selection of alternate sample sites. Formalization of the sample parameters This is a new load study, designed to provide estimates ofload characteristics for the residential distributed generation population in Utah. Input data to be utilized in this design includes billing data for the period June 2013 through March 2014. The design will be based on a stratified random, single-dimensional sampling schema. In this approach, customers with similar characteristics are grouped together into non-overlapping, homogeneous groups called "strata," and individual samples are selected from each stratum. Rocky Mountain Power Exhibit RMP___(RMM-10) Page 4 of 11 Docket No. 16-035-__ Witness: Robert M. Meredith The strata are defined according to a user-specified demographic or usage variable called the "design variable." For continuous variables such as usage, the Dalenius-Hodges rule is used to define the strata boundaries. The Neyman allocation procedure is used to determine the optimum sample size for each stratum. (In Neyman allocation, the sample size for each stratum is determined according to its population proportion and the standard deviation. Data from prior load research studies, if available, may also be used to determine the mean and the standard deviation.) A simple random sample is then selected from each stratum. Because customer-to-customer variation is the basic determinant of sample size (the more the variation, the larger the sample), fewer sampling units need to be selected from a population that has been stratified into homogeneous groups than if the units were merely selected from the entire population at random. In other words, because the variation within a stratum is less than for the entire population, fewer sample points are required to obtain the same accuracy level. Stratification is a good choice when you need to economize with a smaller sample size, yet maintain a specified level of accuracy. It is also useful when you need data for specific demographic sets within the population (types of business, location, etc.). However, stratification has some aspects which may make it inappropriate for certain situations, i.e., since not all customers have the same chance of being selected, the sample may not be as flexible. Therefore, if you wish to use the sample to perform analyses and answer questions not anticipated in the original design, you may have to employ Domains Analysis to ensure that original sample weights are taken into consideration. Also, over time, some customers will change their characteristics and will migrate out of their strata. However, the strata assignments must remain fixed throughout the analysis period. For that reason, samples must be replaced periodically to keep them up to date. S~edfication of the target variable Load studies in the state of Utah are used primarily to support cost allocation studies. For this current study, a sample design was prepared based on average delivered customer energy (billed kWh) over a designated 10 month period. Bill frequency counts, by usage level, are summarized into standardized usage blocks to identify the ideal monthly breakpoints for the design. Utilizing the process defined by Dalenius-Hodges, these breakpoints are then averaged into strata to facilitate further analysis (see Table A). Billing data for the 10 months ending March 2014 were used to determine appropriate stratification. 2 Rocky Mountain Power Exhibit RMP___(RMM-10) Page 5 of 11 Docket No. 16-035-__ Witness: Robert M. Meredith Choice of the Stratification Variable A potential stratifying variable, according to Cochran, should meet four criteria 1: 1. The population is composed of institutions varying widely in size. 2. The principle variables to be measured are closely related to the sizes of the institutions. 3. A good measure ofsize is available for setting up the strata. Average monthly billing kWh (KWH_MNTH), which is the average monthly energy registered over a given consecutive month period, was selected as the best available variable for this purpose. As reporting of monthly customer usage for this group presents the netted amount (delivery to the customer - delivery from the customer), it does presents issues not normally dealt with. Customer usage may be reflected as a negative value for instance. Or the much more likely scenario in which the usage delivered is understated because of power delivered back to the Company. This will make validation of sample results difficult. Nonetheless, the variable is readily available for all customers in this class, with a range from -1,058 to 16,008 kWh for any given customer in this group. Choice of Method for Estimating kW To estimate a peak demand for a population using MPU, the mean peak demand value from the sample is multiplied by the number of elements in the entire population. Use of the MPU method provides an unbiased estimate. For ratio estimation, the ratio of the target variable over the auxiliary variable is calculated for the sample. This ratio is then multiplied by the total annual billed kWh for the population to get the estimated total group peak demand. Because energy usage and peak demand are correlated, a ratio estimate will have a smaller variance than a MPU estimate. However, a ratio estimate may be slightly biased. With stratified sample designs, ratio estimators can be computed in two ways: separately for each stratum, or a combined ratio can be computed over all strata. Separate ratio estimation tends to result in smaller variance. However, the combined ratio method is more appropriate when stratum sample sizes are small, because the risk of bias is reduced. Table B details the sample size required for the Utah Residential Distributed Generation Load Study using a mean-per-unit method, assuming a four strata design, with modified allocation utilizing the Tschprow/Neyman method. 1 William G. Cochran, "Sampling Techniques", Third Edition, Wiley, pg.IOI 3 Rocky Mountain Power Exhibit RMP___(RMM-10) Page 6 of 11 Docket No. 16-035-__ Witness: Robert M. Meredith Choke of the Number of Strata As the number of strata increases, precision of the estimate of the total contribution to demand (kW) at system peak also increases. However, the increase in precision per additional stratum diminishes after a relatively small number of strata2. Desire for simplicity and a reasonable number of sites in each stratum lead to a preference for a small number of strata. If a minimum number of sites policy is followed (eg.10 sites minimum per stratum), then the addition of strata can actually lead to more, rather than fewer, total sites. If such a policy is not followed, the result can be strata with so few recorders that confidence in sample estimates is at risk from unexpected data problems, variance estimates may not be sufficiently precise for future sample design purposes, and the sample may not be robust enough to be useful when analysis needs change. A final decision on the number of strata requires actual cost comparison of potential stratification schemes to evaluate effectiveness versus cost. For this study, a four strata scheme was employed. The method described below was used to compare stratification approaches. Construction of Strata Boundaries Various methods might be used for definition of strata boundaries. Cochran found the "cumulative square root of f'' 3 rule, as defined by Dalenius and Hodges (1959), to be superior in a comparative study of such methods applied to actual distributions exhibiting a range of skewness. With the Dalenius-Hodges procedure, the program divides the population in the Frequency Distribution File into short intervals. Each interval has frequency f and interval length u. The quantity .Yu! is summed over all the intervals, and this cumulative -!uf is divided by a user-defined number of strata to give the optimum length of each stratum. Steps in calculating strata boundaries under the "cumulative -!uf' rule are as follows. First, tabulate frequencies of the stratifying variable. For these studies, average monthly energy (KWH_MNTH) from customer billing records for the ten months ending March, 2014 were used. All Utah Residential DG customers, whose month end status was active, were included in this procedure, and in population figures for the sample design. Second, multiply the number of customers in each interval by the interval factor. Third, take the square root of these frequencies. Fourth, cumulatively sum the square roots. The resulting distribution of adjusted cumulative square roots of frequency is then partitioned into equal intervals by dividing by the number of strata. The final stratification scheme of four strata is presented in Exhibit 1, and shows the optimal boundaries resulting from the above procedure, after adjustments made to accommodate prior cost analysis requirements (if any). 2 3 William G. Cochran, "Sampling Techniques", Third Edition, Wiley, Pg. 132 William G. Cochran, "Sampling Techniques'', Third Edition, Wiley, Pgs. 129-130 4 Rocky Mountain Power Exhibit RMP___(RMM-10) Page 7 of 11 Docket No. 16-035-__ Witness: Robert M. Meredith Allocation of Sample Points to Each Stratum Once the stratum boundaries have been determined, sample points (i.e., load recorders) must be assigned to the strata. The Tschprow-Neyman allocation procedure4 allocates an optimal sampling rate to each stratum. Optimal allocation techniques minimize the variance of the population estimates by increasing the sample proportion in the strata having larger variances. This produces a sampling rate for each stratum which is proportional to the standard deviation within the stratum. The analogous procedure for a ratio sampling plan is allocation in proportion to the square root of the residual variance. Average billing energy was selected as both the target and stratification variables. These data were used to provide estimates for the new Utah Residential DG sample design. For the mean-per-unit method, the variance within each stratum was the ordinary variance of the mean. Minimum recorder allocations and data loss adjustments are required for each stratum to maintain adequate data in case of recorder failure and to provide data for analysis of load characteristics other than the primary target variable, should such analysis be necessary. Minimums ranging from 5 to 15 sites per stratum have been used in past studies. In the present studies, a minimum of 10 sites was used. A minimum on the high side was selected, despite improvements in data quality due to solid state recording equipment, because changing requirements for load research and other areas using this data may require unanticipated applications, and because overall sample efficiencies are bringing these studies in well below the budgeted number of sites, even with the 10 site minimum. The final allocation ofrecorders reflected an additional ten percent data loss adjustment per stratum over the optimal or minimum allocation. Budget approval was received which allowed us to install 62 network meters for this study. An analysis of customers selected to participate in this load study indicates that 0 sites currently have load profile metering installed. The four strata design selected calls for the installation of 45 recorders to meet design standards. We supplemented this amount to reflect total installations of 62 meters. This design selected should achieve ± 10% Relative Accuracy at the 95% Confidence Level on estimates of the target variable. Sample Selection Systematic sample selections were used for each stratum to ensure a representative distribution. For practical reasons, inactive customers and customers with no kWh meter installed (usually certain types oflighting customers with very predictable demand and consumption, indicated by absence of a kWh meter number) were eliminated from the sampling frame. Eligible customers were then sorted by stratum and by average monthly billed energy (KWH_MNTH) within stratum. The number of customers available in the sampling frame for each stratum was then divided by the number of recorders allocated to that stratum (N1/n11), yielding the sampling interval size. A five digit random number 4 William G. Cochran, "Sampling Techniques", Third Edition, Wiley, pgs. 96-99 5 Rocky Mountain Power Exhibit RMP___(RMM-10) Page 8 of 11 Docket No. 16-035-__ Witness: Robert M. Meredith between 0 and 1 was chosen for each stratum, and multiplied by the stratum interval size to obtain the starting selection point for each stratum (Table C). Beginning with this site, additional sites were selected at the given sampling intervals to obtain the desired number of sample sites. This procedure was repeated four times to provide a list of alternate selection sites. The list of primary and alternate selection sites for this sample are contained in Appendix 1. This list was compared against current Utah profile metering installations to check for duplicates. Duplicates between the design and production systems were noted and updated in the Appendix. 6 Rocky Mountain Power Exhibit RMP___(RMM-10) Page 9 of 11 Docket No. 16-035-__ Witness: Robert M. Meredith Utah Residential DG DH Worksheet Four Strata 0 50 100 150 200 250 300 350 400 450 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1750 2000 2250 2500 2750 3000 3250 3500 3750 4250 4500 5000 5500 6000 7500 9000 Range to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to to 50 100 150 200 250 300 350 400 450 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1750 2000 2250 2500. 2750 3000 3250 3500 3750 4250 4500 5000 5500 6000 7500 9000 15000 Total N Customer Count Interval Factor f µ 107 61 78 107 95 133 93 87 96 80 129 88 71 63 55 44 32 21 24 17 32 11 12 13 5 7 2 3 2 1 1 1 2 2 1 ~lf 107 61 78 107 95 133 93 87 96 80 258 176 142 126 110 88 64 42 48 34 160 55 60 65 25 35 10 15 10 10 5 10 20 20 30 30 120 1 1 1 2 2 2 2 2 2 2 2 2 2 5 5 5 5 5 5 5 5 5 10 5 10 10 10 30 30 120 1,578 2 3 4 5 4 73.1 146.2 219.2 5 58.5 116.9 175.4 233.8 SAMPLING ST/ Avg. kWh 1 Mean kW 2 St. Dev 1 2 3 4 5 6 204.1 594.3 1,229.5. 3,317.1 10.3 7.8 8.8 10.3 9.7 11.5 9.6 9.3 9.8 8.9 16.1 13.3 11.9 11.2 10.5 9.4 8.0 6.5 6.9 5.8 12.6 7.4 7.7 8.1 5.0 5.9 3.2 3.9 3.2 3.2 2.2 3.2 4.5 4.5 5.5 5.5 11.0 cum --./µf 10.3 18.2 27.0 37.3 47.1 58.6 68.3 77.6 87.4 96.3 112.4 125.7 137.6 148.8 159.3 168.7 176.7 183.1 190.1 195.9 208.6 216.0 223.7 231.8 236.8 242.7 245.9 249.7 252.9 256.1 258.3 261.4 265.9 270.4 275.9 281.3 292.3 761 527 236 54 1,578 BOUNDARIES INDICATED FOR STRATA: 3 97.4 194.9 -lµf 6 48.7 97.4 146.2 194.9 243.6 1 115.8 141.8 266.5 2,078.2 1 Biiiing records for April 2013 through March 2014 Table A 1 2 3 4 0-400 401 - 900 901 - 2,000 GT 2,000 EST POP MEAN (wtd by N) STRATUM STRATUM STRATUM STRATUM kWh kWh kWh kWh 0.000 1,578 761 527 236 54 PopN c Standard Deviation 115.800 141.800 266.500 2078.200 13409.6400 20107.2400 71022.2500 4318915.2400 e Variance of Mean d !Relative Conf. Int. MPU Est of kW Conf. Interval #DIV/O! Table B 0 97984.06073 953.438753 279.046712 244.453980 169.027887 260.910174 #DIV/O! #DIV/O! ~DIV?b! 0.0000 0 0 60.520495 80528.49857 95501.34111 95% 1.96 95% 1.96 41085.96866 30.87780357 1,688,056,820 543,766,649 418, 154,803 341,320,020 384,815,348 MEAN KW Adj. n 45 12 10 8 15 h Optimal Allocation g*h total 95% 1.96 48725.17403 49991.86772 Standard Error 95% 1.96 2,374,142,585 2,499, 186,838 Total Variance 694,849,754 608, 710,945 420,893,636 649,688,250 694,849,754 608,710,945 545,937,890 649,688,250 Desired Conf. Level (z two tailed) 1.0000 0.2607 0.2211 0.1861 0.3321 g Proprtn. rowf/ sum f TOTAL KW TOTAL KW Adjusted n (col. Final (col. J 337969 88124 74729 62894 112223 f Wtd. Devtns. c*e 1 2 3 4 Variance contributed by strata: TOTAL KW Optimal n (col. h) RELATIVE PRECISION OF SAMPLE KW ESTIMATE 594.298 204.1 594.3 1,229.5 3,317.1 Sample Sample Mean kW Mean kWh UTAH RESIDENTIAL DG LOAD STUDY DESIGN OPTION (2014) FOUR STRATA, MEAN-PER-UNIT DESIGN b a I Sample Estimate 45 47 12 10 10 15 i Optimal with Attrition -62 15 14 12 21 62 Adj Sample Estimate c j Final with Attrition I Rocky Mountain Power Exhibit RMP___(RMM-10) Page 10 of 11 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-10) Page 11 of 11 Docket No. 16-035-__ Witness: Robert M. Meredith Utah Residential DG Sample Selection Parameters Active Customers with kWh Meters For the 12 Months Ending March 2014 2 Stratum Sampling Frame 3 5 4 761 527 236 54 Sample 15 14 12 21 Interval 50.73 37.64 19.67 2.57 Primary Random No.( 1J Start 0.28885 15 0.60446 23 0.93179 18 0.74182 2 Alternate 1 Random No.(1J Start 0.00035 1 0.14860 6 0.01623 1 0.47069 1 Alternate 2 Random No.(1J Start 0.62603 32 0.02792 1 0.35359 7 0.75281 2 Alternate 3 Random No.( 1J Start 0.21875 11 0.83566 31 0.79521 16 0.20098 1 Alternate 4 Random No.( 1) Start 0.89793 46 0.64829 24 0.61813 12 0.14148 1 Random Starts 1 ( ) Random numbers from Excel's random function. Table C 6 Rocky Mountain Power Exhibit RMP___(RMM-11) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Value of Excess NEM Credits November 2016 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Total Exported Energy (MWh) Net Power Cost ($/MWh) Line Losses ($/MWh) Energy Value from Exported Energy ($) Average Energy Value from Exported Energy ($) NEM Credits from Banking (MWh) Energy Value from NEM Credits from Banking ($) Energy Value from Excess NEM Credits ($) 0 $17.51 $1.62 $0.00 0 $18.70 $1.74 $0.00 0 $17.61 $1.63 $0.00 (27) 11 16 Irrigation‐NEM ‐ Schedule 10‐135 137 22 32 22 $17.82 $24.88 $31.32 $32.64 $1.65 $2.31 $2.91 $3.03 $2,674.43 $595.83 $1,086.75 $768.10 (0) (0) (0) (0) 6 0 $19.49 $1.81 $0.00 30 $19.05 $1.77 $624.87 40 $17.42 $1.62 $753.03 0 309 $15.94 $1.48 $0.00 $7,115.61 $23.04 (20) (46) (40) (0) (100) ‐$2,298.62 $4,817.00 27 $20.95 $1.94 $612.58 General Service ‐ Over 1 MW‐NEM ‐ Schedule 8‐135 ‐ 1 9 49 42 53 16 0 0 2 1 1 175 $19.49 $17.51 $18.70 $17.61 $17.82 $24.88 $31.32 $32.64 $20.95 $19.05 $17.42 $15.94 $1.81 $1.62 $1.74 $1.63 $1.65 $2.31 $2.91 $3.03 $1.94 $1.77 $1.62 $1.48 $0.00 $28.16 $186.14 $938.94 $814.97 $1,448.36 $531.38 $6.05 $3.36 $39.68 $28.01 $20.04 $4,045.10 $23.13 4 10 (1) (0) 6 (35) 15 4 (14) (15) (3) (0) (29) ‐$665.52 $3,379.58 Jun-15 Exported Energy (MWh) Net Power Cost ($/MWh) Line Losses ($/MWh) Energy Value from Exported Energy ($) Average Energy Value from Exported Energy ($) NEM Credits from Banking (MWh) Energy Value from NEM Credits from Banking ($) Energy Value from Excess NEM Credits ($) May-15 General Service ‐ Large‐NEM ‐ Schedule 6‐135 130 197 349 512 569 517 597 538 431 451 389 329 5,007 $19.49 $17.51 $18.70 $17.61 $17.82 $24.88 $31.32 $32.64 $20.95 $19.05 $17.42 $15.94 $1.81 $1.62 $1.74 $1.63 $1.65 $2.31 $2.91 $3.03 $1.94 $1.77 $1.62 $1.48 $2,762.34 $3,778.69 $7,129.55 $9,844.93 $11,074.02 $14,051.38 $20,428.76 $19,174.98 $9,867.19 $9,392.64 $7,410.68 $5,721.56 $120,636.70 $24.09 254 108 9 (72) (52) (166) (32) (71) (76) (9) 35 100 30 $710.90 $121,347.61 Apr-15 Exported Energy (MWh) Net Power Cost ($/MWh) Line Losses ($/MWh) Energy Value from Exported Energy ($) Average Energy Value from Exported Energy ($) NEM Credits from Banking (MWh) Energy Value from NEM Credits from Banking ($) Energy Value from Excess NEM Credits ($) Mar-15 Residential‐NEM ‐ Schedule 1‐135 303 602 1,196 1,539 1,427 2,051 1,521 1,734 1,275 1,653 1,621 1,040 15,961 $19.49 $17.51 $18.70 $17.61 $17.82 $24.88 $31.32 $32.64 $20.95 $19.05 $17.42 $15.94 $1.81 $1.62 $1.74 $1.63 $1.65 $2.31 $2.91 $3.03 $1.94 $1.77 $1.62 $1.48 $6,457.51 $11,512.60 $24,446.46 $29,606.12 $27,784.02 $55,745.27 $52,049.48 $61,872.53 $29,192.73 $34,406.30 $30,860.19 $18,114.32 $382,047.50 $23.94 207 (19) (115) (419) (428) (204) (7) (155) (63) (197) 78 573 (749) ‐$17,919.88 $364,127.62 Feb-15 Exported Energy (MWh) Net Power Cost ($/MWh) Line Losses ($/MWh) Energy Value from Exported Energy ($) Average Energy Value from Exported Energy ($) NEM Credits from Banking (MWh) Energy Value from NEM Credits from Banking ($) Energy Value from Excess NEM Credits ($) Jan-15 PacifiCorp Cost Of Service By Rate Schedule State of Utah 2010 Protocol (Non Wgt) 12 Months Ended December 2015 Value of Excess NEM Credits Rocky Mountain Power Exhibit RMP___(RMM-11) Page 1 of 2 Docket No. 16-035-__ Witness: Robert M. Meredith 0 53 373 $17.61 $1.63 $7,180.35 Apr-15 268 $20.95 $1.94 $6,147.37 General Service ‐ Small ‐ NEM ‐ Schedule 23‐135 354 260 353 371 $17.82 $24.88 $31.32 $32.64 $1.65 $2.31 $2.91 $3.03 $6,892.68 $7,071.01 $12,093.09 $13,228.36 Jul-15 Sep-15 Jun-15 Aug-15 May-15 271 $19.05 $1.77 $5,639.48 Oct-15 267 $17.42 $1.62 $5,088.63 Nov-15 Dec-15 Total 175 3,216 $15.94 $1.48 $3,041.61 $76,931.79 $23.92 (63) (123) (115) (183) (83) (90) (106) (77) (33) 87 (733) ‐$17,536.15 $59,395.64 249 $18.70 $1.74 $5,090.78 Mar-15 52,877 57,784 9.28% Net Metering Production Loss Factor Total 532 975 1,803 2,472 2,529 2,903 2,518 2,664 2,001 2,407 2,319 1,545 24,668 $19.49 $17.51 $18.70 $17.61 $17.82 $24.88 $31.32 $32.64 $20.95 $19.05 $17.42 $15.94 $1.81 $1.62 $1.74 $1.63 $1.65 $2.31 $2.91 $3.03 $1.94 $1.77 $1.62 $1.48 $11,334.50 $18,663.23 $36,852.92 $47,570.34 $49,240.11 $78,911.85 $86,189.46 $95,050.02 $45,823.24 $50,102.96 $44,140.54 $26,897.53 $590,776.71 $23.86 518 99 (169) (615) (583) (614) (95) (297) (280) (344) 38 760 (1,581) ‐$37,709.26 $553,067.45 175 $17.51 $1.62 $3,343.79 Feb-15 99 $19.49 $1.81 $2,114.65 Net Metering Production MWh @ sales Net Metering Production MWh @ input Exported Energy (MWh) Net Power Cost ($/MWh) Line Losses ($/MWh) Energy Value from Exported Energy ($) Average Energy Value from Exported Energy ($) NEM Credits from Banking (MWh) Energy Value from NEM Credits from Banking ($) Energy Value from Excess NEM Credits ($) Exported Energy (MWh) Net Power Cost ($/MWh) Line Losses ($/MWh) Energy Value from Exported Energy ($) Average Energy Value from Exported Energy ($) NEM Credits from Banking (MWh) Energy Value from NEM Credits from Banking ($) Energy Value from Excess NEM Credits ($) Jan-15 PacifiCorp Cost Of Service By Rate Schedule State of Utah 2010 Protocol (Non Wgt) 12 Months Ended December 2015 Value of Excess NEM Credits Rocky Mountain Power Exhibit RMP___(RMM-11) Page 2 of 2 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-12) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Summary of Results for NEM Breakout COS November 2016 Footnotes : Column C : Column D : Column E : Column F : Column G : Column H : Column I : Column J : Column K : Column L : Column M : 1 1-135 6 6-135 8 8-135 7,11,12 9 10 10-135 15 15 23 23-135 SpC SpC 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Schedule No. Line No. A 1,924,164,161 719,990,943 2,778,025 525,707,898 7,890,216 149,029,192 5,387,429 11,464,575 274,856,221 17,679,271 110,799 749,867 1,299,357 135,802,412 498,803 27,835,175 43,083,978 Annual Revenue C 7.56% 6.86% 0.35% 9.05% 9.31% 8.37% 9.40% 13.52% 6.24% 6.65% 5.44% 10.74% 16.90% 8.91% 6.17% 3.60% 7.08% 1.00 0.91 0.05 1.20 1.23 1.11 1.24 1.79 0.83 0.88 0.72 1.42 2.23 1.18 0.82 0.48 0.94 E Rate of Return Index D Return on Rate Base F 1,924,164,161 749,260,727 4,585,118 488,017,093 7,225,176 143,254,255 4,940,518 9,177,892 292,345,306 18,595,989 123,448 652,463 933,408 126,559,932 540,815 33,990,518 43,961,504 Total Cost of Service G 1,297,464,907 434,755,608 2,097,092 343,639,590 5,010,595 104,339,609 3,680,363 3,432,162 241,662,693 12,213,206 70,325 347,850 724,111 80,097,558 312,634 27,937,609 37,143,903 Production Cost of Service H I Distribution Cost of Service J Retail Cost of Service K Misc Cost of Service L Increase (Decrease) to = ROR 282,186,013 302,802,029 33,400,429 8,310,784 0 101,968,491 179,453,383 29,678,446 3,404,799 29,269,784 560,651 1,479,274 427,802 20,298 1,807,093 73,835,631 66,920,645 1,514,311 2,106,915 (37,690,806) 1,099,092 1,045,043 38,993 31,453 (665,040) 21,571,258 16,628,685 115,578 599,125 (5,774,937) 747,730 602,516 (111,043) 20,953 (446,911) 535,685 4,918,789 255,014 36,243 (2,286,683) 49,310,527 183,922 43,537 1,144,627 17,489,085 2,510,146 3,746,993 44,234 81,410 916,718 14,555 32,837 5,252 479 12,649 65,747 156,467 79,860 2,539 (97,404) 108,563 80,216 17,258 3,260 (365,949) 17,556,512 27,238,589 1,095,725 571,547 (9,242,480) 74,605 134,771 16,328 2,478 42,012 5,755,112 81,047 83,842 132,908 6,155,343 6,471,708 98,851 95,293 151,750 877,526 Transmission Cost of Service Annual revenues based on January 2015 thru December 2015 data. Calculated Return on Ratebase per January 2015 thru December 2015 Embedded Cost of Service Study Rate of Return Index. Rate of return by rate schedule, divided by Utah Jurisdiction's normalized rate of return. Calculated Full Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study Calculated Generation Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Transmission Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Distribution Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Retail Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Calculated Miscellaneous Cost of Service at Jurisdictional Rate of Return per the January 2015 thru December 2015 Embedded COS Study. Increase or Decrease Required to Move From Annual Revenue to Full Cost of Service Dollars. Increase or Decrease Required to Move From Annual Revenue to Full Cost of Service Percent. Total Utah Jurisdiction Residential Residential-NEM General Service - Large General Service - Large-NEM General Service - Over 1 MW General Service - Over 1 MW-NEM Street & Area Lighting General Service - High Voltage Irrigation Irrigation-NEM Traffic Signals Outdoor Lighting General Service - Small General Service - Small - NEM Customer 1 Customer 2 Description B Rocky Mountain Power Cost Of Service By Rate Schedule State of Utah 12 Months Ended Dec 2015 2010 Protocol (Non Wgt) 7.56% = Earned Return on Rate Base M 0.00% 4.07% 65.05% -7.17% -8.43% -3.88% -8.30% -19.95% 6.36% 5.19% 11.42% -12.99% -28.16% -6.81% 8.42% 22.11% 2.04% Percentage Change from Current Revenues Rocky Mountain Power Exhibit RMP___(RMM-12) Page 1 of 1 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-13) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith NEM Breakout COS Compared to ACOS November 2016 Schedule No. 1 1-135 6 6-135 8 8-135 10 10-135 23 23-135 Line No. 1 2 3 4 5 6 7 8 9 10 A Residential Residential-NEM General Service - Large General Service - Large-NEM General Service - Over 1 MW General Service - Over 1 MW-NEM Irrigation Irrigation-NEM General Service - Small General Service - Small - NEM Description B (9,146,204) 875,850 (6,015,164) (37,991,083) 29,269,784 1,807,093 (37,690,806) (665,040) (5,774,937) (446,911) 916,718 12,649 (9,242,480) 42,012 NEM Breakout Increase (Decrease) to = ROR ACOS Increase (Decrease) to = ROR 30,365,272 D C Rocky Mountain Power NEM Breakout Cost Of Service Compared to Actual Cost of Service State of Utah 12 Months Ended Dec 2015 2010 Protocol (Non Wgt) (96,277) 40,868 240,227 300,277 (1,095,488) NEM Breakout less ACOS Increase (Decrease) to = ROR E Rocky Mountain Power Exhibit RMP___(RMM-13) Page 1 of 1 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Exhibit RMP___(RMM-14) Docket No. 16-035-__ Witness: Robert M. Meredith BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Robert M. Meredith Determination of Residential Net Metering Cost of Service At the Same Basis as Rates Set in Docket No. 13-084-184 November 2016 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 Row TRANSMISSION-TOTAL Revenue Requirement Per NCP kW Per KWH Per Customer PRODUCTION-ENERGY Revenue Requirement Per NCP kW Per KWH Per Customer PRODUCTION-DEMAND Revenue Requirement Per NCP kW Per KWH Per Customer PRODUCTION-TOTAL Revenue Requirement Per NCP kW Per KWH Per Customer Per NCP kW Per KWH Per Customer PTDRM TOTAL Revenue Requirement UNITS NCP kW Annual KWH Average Customers Load Factor CP Load Factor Description (B) (A) 38.94% 36.14% 101,968,491 1.82 0.016 136.02 33.27% 91,359,991 1.60 0.015 123.35 29.03% 195,254,430 3.48 0.030 260.45 27.99% 192,414,357 3.38 0.031 259.80 38.33% 239,501,178 4.27 0.037 319.47 34.99% 186,193,456 3.27 0.030 251.40 33.51% 434,755,608 7.75 0.067 579.93 31.04% 378,607,813 6.64 0.061 511.19 13.36 0.115 999.45 749,260,727 37.04% 12.01 0.110 924.69 684,856,226 56,098,384 6,523,256,321 749,673 16% 63% Sch 1 Non-Net Metering Sch 1 @ Step 2 Revenue 57,008,525 6,203,851,850 740,636 15% 63% Actual 2015 Cost of Service Study With Net Metering Broken Out Docket No. 13-035-184 Residential 560,651 1.45 0.014 127.71 0.20% 813,817 2.10 0.021 185.38 0.12% 1,283,275 3.31 0.033 292.32 0.21% 2,097,092 5.41 0.054 477.70 0.16% 11.82 0.117 1,044.45 4,585,118 0.24% 387,862 39,124,078 4,390 14% (C) Sch 1 Net Metering Actual 2015 Cost of Service Study With Net Metering Broken Out 0.415% 0.533% (C) / [(B) + (C)] (D) Net Metering as a Percentage of Overall Residential Actual 2015 Cost of Service Study With Net Metering Broken Out Rocky Mountain Power State of Utah Determination of Residential Net Metering Cost of Service At the Same Basis as Rates Set in Docket No. 13-084-184 500,700 1.29 0.013 114.05 798,651 2.06 0.020 181.93 992,329 0.025 226.04 1,790,980 4.62 0.046 407.97 10.86 0.108 959.15 4,210,660 387,862 39,124,078 4,390 15% 63% (E) Sch 1 Net Metering @ GRC Level 54 + 60 48 / 17 48 / 18 48 / 19 (D) * (A) 42 / 17 42 / 18 42 / 19 (D) * (A) 36 / 17 36 / 18 36 / 19 36 + 42 30 / 17 30 / 18 30 / 19 30 + 48 + 66 + 102 + 108 24 / 17 24 / 18 24 / 19 (F) Calculation Rocky Mountain Power Exhibit RMP___(RMM-14) Page 1 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith 88 87 86 85 84 83 82 81 80 79 78 77 76 75 74 73 72 71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54 53 Row DISTRIBUTION-TRANSFORMER Revenue Requirement Per NCP kW Per KWH Per Customer DISTRIBUTION- P & C Revenue Requirement Per NCP kW Per KWH Per Customer DISTRIBUTION-SUBSTATION Revenue Requirement Per NCP kW Per KWH Per Customer DISTRIBUTION-TOTAL Revenue Requirement Per NCP kW Per KWH Per Customer TRANSMISSION-ENERGY Revenue Requirement Per NCP kW Per KWH Per Customer TRANSMISSION-DEMAND Revenue Requirement Per NCP kW Per KWH Per Customer Description 60.69% 37,905,232 0.68 0.006 50.56 59.50% 33,141,338 0.58 0.005 44.75 56.78% 88,107,442 1.57 0.014 117.53 56.86% 81,971,962 1.44 0.013 110.68 51.91% 23,392,948 0.42 0.004 31.20 49.83% 33,930,114 0.60 0.005 45.81 59.26% 179,453,383 3.20 0.028 239.38 58.04% 178,074,251 3.12 0.029 240.43 28.54% 19,109,453 0.34 0.003 25.49 28.20% 18,534,141 0.33 0.003 25.02 38.50% 82,859,038 1.48 0.013 110.53 (B) (A) 34.86% Sch 1 Non-Net Metering Sch 1 @ Step 2 Revenue 72,825,850 1.28 0.012 98.33 Actual 2015 Cost of Service Study With Net Metering Broken Out Docket No. 13-035-184 Residential 0.21% 0.49% 117,663 0.30 0.003 26.80 0.18% 442,988 1.14 0.011 100.91 396,520 1.02 0.010 90.32 0.63% 678,793 1.75 0.017 154.62 0.44% 168,951 0.44 0.004 38.49 0.37% 1,479,274 3.81 0.038 336.96 (C) Sch 1 Net Metering Actual 2015 Cost of Service Study With Net Metering Broken Out 1.035% 0.765% 0.717% 0.612% 0.532% (C) / [(B) + (C)] (D) Net Metering as a Percentage of Overall Residential Actual 2015 Cost of Service Study With Net Metering Broken Out Rocky Mountain Power State of Utah Determination of Residential Net Metering Cost of Service At the Same Basis as Rates Set in Docket No. 13-084-184 113,422 0.29 0.003 25.84 387,278 1.00 0.010 88.22 343,097 0.88 0.009 78.15 626,696 1.62 0.016 142.76 243,297 0.63 0.006 55.42 1,444,361 3.72 0.037 329.01 (E) Sch 1 Net Metering @ GRC Level (D) * (A) 84 / 17 84 / 18 84 / 19 (D) * (A) 78 / 17 78 / 18 78 / 19 (D) * (A) 72 / 17 72 / 18 72 / 19 72 + 78 + 84 + 90 + 96 66 / 17 66 / 18 66 / 19 (D) * (A) 60 / 17 60 / 18 60 / 19 (D) * (A) 54 / 17 54 / 18 54 / 19 (F) Calculation Rocky Mountain Power Exhibit RMP___(RMM-14) Page 2 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith DISTRIBUTION-METER Revenue Requirement Per NCP kW Per KWH Per Customer DISTRIBUTION-SERVICE Revenue Requirement Per NCP kW Per KWH Per Customer Description 109 108 107 MISC - Total Revenue Requirement Per NCP kW 110 Per KWH 111 Per Customer 106 103 102 101 RETAIL-TOTAL Revenue Requirement Per NCP kW 104 Per KWH 105 Per Customer 100 99 98 97 96 95 94 93 92 91 90 89 Row 40.97% 3,404,799 0.06 0.001 4.54 39.24% 5,855,141 0.10 0.001 7.91 88.86% 29,678,446 0.53 0.005 39.59 93.84% 30,959,030 0.54 0.005 41.80 70.30% 5,874,123 0.10 0.001 7.84 70.78% 7,590,759 0.13 0.001 10.25 76.13% 24,173,638 0.43 0.004 32.25 (B) (A) 76.18% Sch 1 Non-Net Metering Sch 1 @ Step 2 Revenue 21,440,077 0.38 0.003 28.95 Actual 2015 Cost of Service Study With Net Metering Broken Out Docket No. 13-035-184 Residential (C) 20,298 0.05 0.001 4.62 0.24% 427,802 1.10 0.011 97.45 1.28% 61,064 0.16 0.002 13.91 0.73% 173,945 0.45 0.004 39.62 0.55% Sch 1 Net Metering Actual 2015 Cost of Service Study With Net Metering Broken Out 0.593% 1.421% 1.029% 0.714% (C) / [(B) + (C)] (D) Net Metering as a Percentage of Overall Residential Actual 2015 Cost of Service Study With Net Metering Broken Out Rocky Mountain Power State of Utah Determination of Residential Net Metering Cost of Service At the Same Basis as Rates Set in Docket No. 13-084-184 (E) 34,699 0.09 0.001 7.90 439,920 1.13 0.011 100.21 78,097 0.20 0.002 17.79 153,173 0.39 0.004 34.89 Sch 1 Net Metering @ GRC Level (D) * (A) 108 / 17 108 / 18 108 / 19 (D) * (A) 102 / 17 102 / 18 102 / 19 (D) * (A) 96 / 17 96 / 18 96 / 19 (D) * (A) 90 / 17 90 / 18 90 / 19 (F) Calculation Rocky Mountain Power Exhibit RMP___(RMM-14) Page 3 of 3 Docket No. 16-035-__ Witness: Robert M. Meredith Rocky Mountain Power Docket No. 16-035-____ Witness: Douglas L. Marx BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Direct Testimony of Douglas L. Marx November 2016 1 Q. dba Rocky Mountain Power (“the Company”). 2 3 Please state your name, business address and present position with PacifiCorp, A. My name is Douglas L. Marx. My business address is 1407 West North Temple, 4 Salt Lake City, UT 84095. I am the director of Engineering Standards and Technical 5 Services for Rocky Mountain Power (“RMP”). 6 Qualifications 7 Q. Briefly describe your educational and professional background. 8 A. I have worked for the Company for 35 years in various engineering, operations and 9 management positions. I hold a bachelor’s degree in electrical engineering from the 10 University of Utah and a master’s degree in business administration from Utah 11 State University. I am a licensed professional engineer in the state of Utah. 12 Q. Please describe your present duties. 13 A. I oversee all non-routine technical studies including distributed generation, power 14 quality and smart grid reports. I am responsible for the development of all material 15 and equipment specifications and standards used in the construction and 16 maintenance of the transmission and distribution systems. 17 Purpose and Summary of Testimony 18 Q. What is the purpose of your testimony in this proceeding? 19 A. In support of the Company's need to ensure adequate cost recovery from residential 20 customers with private generation, I present the operational issues associated with 21 private customer generation, specifically rooftop solar, and the system changes that 22 will be required with increasing levels of distributed generation on the electrical Page 1 - Direct Testimony of Douglas L. Marx 23 distribution system. In addition, I explain the process and costs incurred in 24 reviewing interconnection requests for net metering applications in support of the 25 proposed changes to the application fees. 26 Q. Please summarize your testimony. 27 A. My testimony demonstrates that rooftop solar generation does not reduce the peak 28 demand on the distribution system to a degree that could warrant a reduction in 29 infrastructure. Instead, rooftop solar may actually increase the requirements for 30 infrastructure at the local level. Further, residential net metering customers use the 31 electric grid at a level higher than other residential customers. The total amount of 32 energy transferred to and from the electric grid by net metering customers can 33 exceed the amount of energy delivered to other customers by a significant amount. 34 In addition, the Company incurs additional costs associated with applications for 35 rooftop solar generation and their interconnection. 36 System Impacts 37 Q. Please describe the studies you have done on neighborhood rooftop solar. 38 A. In 2014 in Docket No. 13-035-184 ("2014 GRC"), I presented the results of a 39 neighborhood rooftop solar study for the area served by the Northeast #16 circuit. 40 This study evaluated the viability of rooftop solar to offset utility infrastructure 41 upgrades by modeling high efficiency solar panels on every viable roof space on 42 the circuit. The study showed that, under a best case scenario, solar generation Page 2 - Direct Testimony of Douglas L. Marx 43 offsets only seven percent of the peak demand on the circuit, which means that the 44 utility still needed to provide 93 percent of customers' demand.1 45 In response to questions raised about the relevance of the findings of the 46 Northeast #16 study to other locations within the Salt Lake valley, the Company 47 initiated a new study in 2015. We selected the Bingham #11 circuit located in the 48 southwest quadrant of the valley in South Jordan, Utah. A copy of the study report 49 is attached as Exhibit RMP__ (DLM-1). This study shows that the effects of rooftop 50 solar reduced the peak circuit loading by only 3.6 percent. Due to this small 51 reduction, and considering the interaction between variable customer load and 52 variations in solar production due to cloud cover and other interference, our 53 distribution planning guidelines will continue to be based on peak load 54 requirements without including solar generation reductions. 55 Q. distribution infrastructure? 56 57 Can increased levels of rooftop solar generation reduce the size of local A. No. As the studies show, increasing levels of rooftop solar can actually force the 58 Company to increase the local distribution system including distribution 59 transformers, secondary cables and service conductors to handle the excess 60 generation. If customers install the level of rooftop solar required to offset their 61 annual electric energy usage, also known as net zero-electric energy customers, the 62 Company will need to increase the size of the local distribution system to handle 63 the reverse energy flow delivered to the grid by the customers. 1 See Docket No. 13-035-184, Rebuttal Testimony of Douglas L. Marx (June 2014). Page 3 - Direct Testimony of Douglas L. Marx 64 The peak output for the rooftop solar systems in Utah will occur during the 65 spring months, typically April or May. This is the time of year the solar insolation 66 is approaching its peak level for the year, and the ambient temperatures are 67 relatively moderate. This combination allows the solar system to maximize its 68 output. As the temperatures increase through June and July, the output will actually 69 decrease. This decrease occurs at the same time a residential customer’s load is 70 reaching its peak demand, typically July. The peak demand typically occurs in the 71 evening when the rooftop solar system’s output is near its lowest point of 72 production for the day. 73 To handle the higher level of energy flow experienced in the spring months, 74 the local distribution system must be sized to accommodate the greater of the two 75 values. Consequently, the system may be sized up to 30 percent greater than normal. 76 In a few cases, the reverse power flow could approach 50 percent more as compared 77 to the customers’ peak load demand. 78 If a customer installs the level of rooftop solar required to offset all of their 79 energy usage, including conversion of their gas appliances and gasoline vehicles to 80 electric, the magnitude of exported energy demand can be much greater and the 81 reverse flow effect becomes even more dramatic. 82 Q. generation without any modification? 83 84 85 Is the distribution system capable of handling increasing levels of distributed A. No. In addition to the local distribution system, increasing levels of distributed generation will require several changes. Advanced metering to monitor the system, Page 4 - Direct Testimony of Douglas L. Marx 86 updates in regulator, relay and recloser controls to account for two-way power 87 flows and protect the system, increased levels of voltage management equipment 88 and dead-line checking systems will be required. Retrofitting these systems can 89 range in price from a few thousand dollars per device to several hundred thousand 90 per substation for updated protection schemes. Most of these increased costs were 91 discussed in my rebuttal testimony filed in the 2014 GRC. 92 Q. compared to other customers. 93 94 Please explain how a net metering customer uses the electric grid as A. Figure 1 below illustrates the power flow between the electric grid and a net 95 metering customer. The figure demonstrates that the net metering customer utilizes 96 the grid 24 hours per day except for two instantaneous points, shown by the small 97 circles, when the direction of current flow changes from energy delivered to energy 98 received. What the figure does not do is quantify the absolute level of grid 99 utilization by the customer. Page 5 - Direct Testimony of Douglas L. Marx Figure 1 100 101 I have already explained that a net metering customer’s peak utilization of 102 the local distribution system occurs during the spring months and can be much 103 higher than their summer peak load demand. This effect necessitates an increase in 104 size of the local distribution facilities in order to accommodate the peak output for 105 the solar facility. To illustrate the magnitude of grid utilization, one must calculate 106 the absolute value of the energy flow between the customer and the electric grid. 107 The absolute value is the sum of energy at the point of interconnection irrespective 108 of the direction of flow. This is the level of energy that the Company must manage 109 on each customer’s behalf. 110 The average Utah residential customer consumes approximately 8,601 111 kilowatt-hours of energy annually. The absolute value of the energy flow for the Page 6 - Direct Testimony of Douglas L. Marx 112 electric net-zero energy customer used in this example is 11,558 kWh. This equates 113 to a 134 percent higher level of energy managed on their behalf than for other 114 customers. If customers install rooftop solar at a level to offset all of their energy 115 usage on a net basis, including gas appliances and vehicles, the level of managed 116 energy increases even more dramatically. 117 Proposed Application Fee 118 Q. Please explain the costs associated with processing net metering applications. 119 A. There are two cost categories associated with net metering applications: application 120 processing and interconnection. Four departments are involved with the review and 121 processing of net metering applications: customer call center, customer generation, 122 and engineering and operations. The costs associated with each department are 123 discussed below. 124 The customer call center incurs costs associated with creating work 125 requests, handling customer information calls, processing net meter exchanges and 126 production meter installs within the customer service system, handling suspended 127 statements and reviewing related reports. 128 The customer generation department incurs costs related to application 129 processing, database entry, billing, tracking, mapping and other regulatory 130 reporting requirements. With the increase in applications, the need to automate the 131 application process and receive payments must be part of the solution. These costs 132 are incurred whether the customer’s generation system is ultimately connected or 133 not. Page 7 - Direct Testimony of Douglas L. Marx 134 Once the application is accepted and entered, each application is reviewed 135 by engineering to determine if the interconnection will create operational issues. 136 These issues are typically limited to equipment and component overload or voltage 137 and reliability problems. If the engineering review shows that system issues will 138 occur, in accordance with applicable Commission rules, the customer must pay for 139 the necessary corrections before her application is approved and before we will 140 interconnect the generation system. 141 After the net metering application has been approved and the rooftop solar 142 installation is completed, there are further costs associated with completing the 143 interconnection and setting up the correct configurations within our Customer 144 Service System ("CSS") for the net metering customer. 145 The operations department is responsible for completing the interconnect 146 process with an inspection and installation of the net meter as well as constructing 147 any required system modifications. If any issues are noted during the inspection, 148 the installation of the net meter is postponed until all noted deficiencies have been 149 corrected. After the meter exchange is completed at the customer's premise, the 150 customer service group creates a virtual meter in CSS to reflect the measured 151 delivered energy to the grid from the customer’s solar panels. The operations 152 department then reviews the CSS system to validate the exchange, and verifies 153 billing determinants are accurate to ensure a correct bill is presented. Page 8 - Direct Testimony of Douglas L. Marx 154 Q. 2, and 3? 155 156 Are there differences in processing net metering applications under Levels 1, A. Yes. The key difference is the time that may be required by the engineering 157 department to review the application for operational issues. Level 1 is defined as 158 distributed energy systems of 25 kilowatts or smaller that operate with an inverter. 159 These are the systems most commonly used in residential and small commercial 160 applications. For Level 1 applications, the distribution system components 161 generally reviewed are the service conductor, secondary cables and the distribution 162 transformer and, in some circumstances, the distribution feeder and protection 163 schemes. Level 2 is defined as systems 2 megawatts or less that don't otherwise 164 qualify for Level 1. Level 3 is defined as systems 20 megawatts or less that don't 165 otherwise qualify for Level 1 or 2. 166 The time required to review each application varies by complexity and 167 location. While Level 1 interconnections are typically less complex to review, the 168 majority of time spent by the engineering department is spent on Level 1 due to the 169 volume of applications. Approximately eighty percent of applications reviewed are 170 satisfied at Level 1. 171 The customer call center and customer generation group costs are similar to 172 Level 1 for Level 2 and Level 3 applications. The engineering time for these higher 173 level reviews are significant. These reviews can be as simple as a grounding review 174 but can evolve into full system impact studies and require anywhere from two times 175 up to and sometimes greater than eight times to review as a Level 1. Page 9 - Direct Testimony of Douglas L. Marx 176 Level 2 reviews can be completed with a fairly simple engineering analysis 177 and usually without using complex electrical models. The existing generation 178 levels, along with the proposed new generation, are compared to several limits 179 including circuit peak load, daytime light load, fault current at the point of 180 interconnection as well as existing circuit protection schemes. A review of the 181 grounding and protection requirements is also completed at this time. If any limits 182 are exceeded, the application fails the analysis and referred to a Level 3 review. 183 A Level 3 review expands upon the Level 2 analysis by including those 184 results in complex engineering models that provide a detailed analysis of the 185 interaction of the proposed generation with the electric system and with other 186 generation points currently operating on the circuit. Load flow, short circuit, and 187 protection scheme analysis studies are typical, and may require project 188 management to develop and scope the solution before the application is approved. 189 Once approved and accepted by the customer, the operations department 190 will complete the interconnect process as noted above, including constructing any 191 required system modifications. 192 Q. Are net metering applications increasing? 193 A. Yes. The volume of applications throughout Rocky Mountain Power has increased 194 exponentially since 2011. Most of this increase is in the Utah service territory. The 195 following Figure 2 shows the actual number of new customer generators by year 196 through 2015 and the forecasted level for 2016. Page 10 - Direct Testimony of Douglas L. Marx Figure 2 197 198 Q. What is the impact of this increase on the Company? 199 A. Due to the current level of applications, we have begun investigating ways to 200 automate the application process in order to both manage the volume to meet our 201 customers’ expectations and to reduce the overall costs associated with processing 202 these applications. 203 In addition, as the number of installations increase, the impact to the 204 distribution system will increase and drive the required upgrades and modifications 205 discussed earlier in my testimony. This includes protection and control systems, 206 voltage regulations, transformer upgrades, etc. A change to operating equipment 207 standards will be required to make them fully functional when two-way energy 208 flows become more common. Page 11 - Direct Testimony of Douglas L. Marx 209 Q. Are you aware of other states that have application fees for Level 1? 210 A. Yes. Net metering application fees are not new to the industry. For example, the 211 state of California provides for the collection of application fees for solar 212 installations. Fees up to $150 per Level 1 application to cover administration and 213 engineering expenses have been reported. In the state of Washington, Pacific Power 214 collects $100 from each applicant installing a system rated less than 25 kilowatts 215 and $500 for systems rated from 25 to 100 kilowatts. 216 Conclusion 217 Q. Please summarize your testimony. 218 A. Rooftop solar generation does not reduce the distribution peak demand experienced 219 by the electric grid to a degree that could warrant a reduction in infrastructure and 220 could actually increase the base requirements for infrastructure at the local level. 221 Furthermore, the total amount of energy transferred to and from the electric grid by 222 residential net metering customers exceeds that of other customers by a significant 223 amount. This is energy that must be stored, accounted for and managed by the 224 Company on the customer’s behalf. In addition, the Company incurs significant 225 costs associated with applications for rooftop solar generation and their 226 interconnection. 227 Q. Does this conclude your direct testimony? 228 A. Yes. Page 12 - Direct Testimony of Douglas L. Marx Rocky Mountain Power Exhibit RMP___(DLM-1) Docket No. 16-035-__ Witness: Douglas L. Marx BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Douglas L. Marx 2015 Distribution Rooftop Solar Study - Bingham #11 November 2016 Rocky Mountain Power Exhibit RMP___(DLM-1) Page 1 of 11 Docket No. 16-035-__ Witness: Douglas L. Marx June 26, 2015 asd DISTRIBUTION ROOFTOP SOLAR STUDY Prepared By: Rohit Nair P.E., Senior Engineer Contributors: Juan Luna, Senior GIS Analyst Jake Barker, Manager Rocky Mountain Power Rocky Mountain Power Exhibit RMP___(DLM-1) Page 2 of 11 Docket No. 16-035-__ Witness: Douglas L. Marx Table of Contents EXECUTIVE SUMMARY .......................................................................................................................... 3 INTRODUCTION ........................................................................................................................................ 4 SOLAR INSOLATION IN UTAH ............................................................................................................... 4 MODELING OF ROOFTOP SOLAR PHOTOVOLTAIC SYSTEM ..................................................... 5 1: The Solar Model ............................................................................................................................... 5 2: The Rooftop Model ........................................................................................................................... 5 3: The Photovoltaic Panel Model ......................................................................................................... 6 ESTIMATING NUMBER OF PANELS PER ROOFTOP .......................................................................... 6 SOLAR GENERATION CALCULATIONS ............................................................................................... 7 DISTRIBUTION CIRCUIT LOADING ...................................................................................................... 8 IMPACT OF SOLAR GENERATION ON DISTRIBUTION CIRCUIT LOADING ................................. 9 CONCLUSION ............................................................................................................................................. 9 APPENDIX A – Quick Facts .................................................................................................................... 111 2 | P a g e Rocky Mountain Power Rocky Mountain Power Exhibit RMP___(DLM-1) Page 3 of 11 Docket No. 16-035-__ Witness: Douglas L. Marx EXECUTIVE SUMMARY Rocky Mountain Power performed a study to estimate the potential for rooftop solar generation to offset the daily peak load and provide benefits for reduced infrastructure. The study specifically targeted the southwest quadrant of the Salt Lake valley in order to provide a comparison to a similar study completed in 2010 based in the northeast quadrant. Several circuits in the area were considered and Bingham #11 circuit in South Jordan, Utah was selected for the study. Quick facts for the study area can be found in Appendix A. The study was performed using publicly available GIS and solar modeling tools to estimate the maximum amount of rooftop solar generation that would be produced and delivered to the distribution circuit. This was done by identifying rooftops in the area served by the Bingham #11 distribution circuit, determining the maximum panels that could be installed and calculating the annual solar radiation received. The solar generation profile was developed based on measured solar insolation levels in Salt Lake City in addition to information available on the National Renewable Energy Laboratory website. The study estimated the maximum generation of the rooftop panels in the study area at 9.01 megawatts (AC) occurring at solar noon on May 13. The circuit peak demand occurred on July 14 at 5:30 pm mountain standard time. Comparing the solar production with the circuit profile shows that the rooftop solar reduces the circuit peak demand by less than 7%. Considering the interaction between variable customer load and variations in solar production due to cloud cover and other interference, our distribution planning guidelines will continue to be based on peak load requirements and not consider solar generation reductions. 3 | P a g e Rocky Mountain Power Exhibit RMP___(DLM-1) Page 4 of 11 Docket No. 16-035-__ Witness: Douglas L. Marx INTRODUCTION Rocky Mountain Power “The Company” is experiencing growing levels of distributed energy resources being interconnected to its distribution system. Distributed energy resources generally include rooftop solar panels, energy storage devices, fuel cells, microturbines, small wind, and combined heat and power systems. These “behind-the-meter” power generation and storage resources are usually located on an end-use customer’s premises and operated for the purpose of supplying all or a portion of the customer’s electric load. At Rocky Mountain Power, interconnection requests for distributed energy resources are categorized based on size, type of technology, voltage of the distribution or transmission lines being connected to and the type of financial relationship the customer has with the utility, either net metering or Qualified Facility. The growth of distributed energy resources has been primarily due to cost reductions in technology, performance improvements and the company’s net-metering policy. In the past few years, Rocky Mountain Power has experienced an exponential growth in net-metering applications, especially in the state of Utah. SOLAR INSOLATION IN UTAH Tthe National Renewable Electricity Laboratory (NREL) estimated that the Salt Lake City area will average between 5 and 5.8 kilowatt-hours per square meter per day (kWh/m²/day.) The model input values are taken from insolation measurements provided by a network of hundreds of meteorological stations. In Utah, Salt Lake County insolation potential is considered just above average. Solar insolation intensity increases with southward direction. Figure 1 shows NREL’s annual solar potential map for Utah. Factors such as slope, aspect, shading, changing solar positions, and weather conditions must be considered in order to generate useful estimates for Figure 1: NREL Direct Normal Insolation 10‐Degree GRID for Utah (kw/h/m2) individual roof surfaces. The Company developed monthly solar insolation models using the ArcGIS Area Solar Insolation tool and half meter resolution LiDAR data. This approach yields high‐ resolution results that identify roof faces that have the best characteristics for installation of photovoltaic (PV) panels based on roof slope, shading, area, and estimated solar insolation. Further, based on measured solar insolation data in addition to data extracted from the NREL PVWatts database, fifteen minute generation profile was developed to understand the potential contribution of solar generation towards circuit load. Rocky Mountain Power Exhibit RMP___(DLM-1) Page 5 of 11 Docket No. 16-035-__ Witness: Douglas L. Marx Rocky Mountain Power MODELING OF ROOFTOP SOLAR PHOTOVOLTAIC SYSTEM The typical method used to estimate the number of photovoltaic panels per rooftop is calculated by merely dividing the total rooftop area by the area of an individual solar panel. However, this approach has the potential to overestimate the number of panels per rooftop since it does not take into account roof shapes, objects, obstructions, shadows, etc. To avoid such an overestimation, the company developed a comprehensive solar model that consists of the following three parts: 1: The Solar Model The solar model uses to estimate daily insolation averages per month and per year. This model calculates solar ESRI’s Solar Insolation tools insolation values using 0.5 meter resolution elevation data derived from LiDAR, radiation parameters from NASA, and atmospheric factors based on local climate. The output from this part of the model is a half meter resolution grid where each cell represents the estimated average insolation for a half square meter. 2: The Rooftop Model The model uses elevation data derived from half meter resolution LiDAR gathered from Utah Automated Geographic Reference Center (UAGRC). The model also uses an algorithm to extract rooftop outlines and calculate roof aspects and pitches. The model identifies objects such as chimneys, dormers, etc. that would hinder the installation of solar photovoltaic panels. Focal standard deviations and flow of fluids were calculated for this purpose using GIS software. Figure 2 shows color coded roof aspects where red indicates roofs facing north, green facing south, blue facing west and yellow facing east. Figure 2: Calculated roof aspects 5 | P a g e Rocky Mountain Power Exhibit RMP___(DLM-1) Page 6 of 11 Docket No. 16-035-__ Witness: Douglas L. Marx Rocky Mountain Power 3: The Photovoltaic Panel Model The next part of the model simulates solar panel installations by overlaying solar panels with a specific dimension over all rooftops while removing solar panels that can’t be fitted due to an obstruction, change of pitch or aspect. This study used dimensions for the Kyocera 250 watt photovoltaic panel. Figure 3 shows modeled solar panel installations on rooftops for a particular residential area served by the Bingham#11 distribution circuit. Figure 3: Modeled solar panel installations ESTIMATING NUMBER OF PANELS PER ROOFTOP The study used Kyocera 250 watt solar panels with dimensions of 1 meter by 1.6 meters to estimate the total number of photovoltaic panels that could be installed on each rooftop. The calculation took into account roof aspect, changes in shape, and other objects that may interfere with installation. The model also eliminated irregular roof areas where standard solar panels cannot fit. The rooftops identified in this study were found to be able to accommodate an estimated 42,439 panels with a total installed ac generation capacity of 9.01 megawatts at peak production. Figure 4 illustrates the total estimated number of panels for rooftops and the corresponding ac power generation capacity for respective orientations. 6 | P a g e Rocky Mountain Power Exhibit RMP___(DLM-1) Page 7 of 11 Docket No. 16-035-__ Witness: Douglas L. Marx Rocky Mountain Power 14000 3 12000 2.5 10000 2 8000 1.5 6000 1 4000 Megawatts Number of solar panels Calculated Rooftop Solar Capacity 0.5 2000 0 0 Flat East West Adjusted Number of Panels North South Installed AC Capacity Figure 4: Total number of photovoltaic panels installed and corresponding installed capacity (AC) SOLAR GENERATION CALCULATIONS A hybrid approach was used to generate solar generation curves for the rooftop installations. Measured data from a flat roof solar installation in Salt Lake City was used for flat roofs and information from NREL PV Watts® database was used for all other rooftop solar panels identified in this study. Figure 5 shows a solar generation profile for a peak solar day and includes generation from all solar panels identified in this study. Solar Generation Profile May 13, 2014 8 4 2 0 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Megawatts 6 Figure 5: Calculated solar generation curve 7 | P a g e Rocky Mountain Power Exhibit RMP___(DLM-1) Page 8 of 11 Docket No. 16-035-__ Witness: Douglas L. Marx Rocky Mountain Power DISTRIBUTION CIRCUIT LOADING The circuit loading data for the Bingham #11 distribution circuit is shown in Figure 6. The circuit serves 2,244 customers with a peak demand of 9.95 megawatts that occurred on July 14, 2014 at 5:30 pm Mountain Standard Time. Distribution Circuit Loading Bingham#11 10 8 6 4 2 0 Figure 6: Distribution Circuit Loading for Bingham#11 8 | P a g e Rocky Mountain Power Exhibit RMP___(DLM-1) Page 9 of 11 Docket No. 16-035-__ Witness: Douglas L. Marx Rocky Mountain Power IMPACT OF SOLAR GENERATION ON DISTRIBUTION CIRCUIT LOADING The energy generated from solar photovoltaic systems is accounted for as a reduction in system demand as it reduces the amount of energy that the company must supply to the circuit from other generation resources. The more solar energy generated by solar photovoltaic panels, the more demand is driven down. The less solar power generated, the greater the demand on other energy resources to supply the required energy on the circuit. Further, due to various reasons, reduction of peak demand on a distribution circuit is of particular significance. Figure 8 shows the circuit load profile on July 14, 2014 along with the estimated generation profile. The net difference between the load and the solar generation is the resultant circuit loading and shown with the black line. On the peak demand day, as shown in the chart, the solar generation reduces the overall circuit peak demand by only 6.8%. This is an insignificant reduction considering the large number of rooftop photovoltaic panels identified for installation in this study. Distribution Circuit Loading Bingham#11 12 10 Circuit peak reduction = 6.8% 8 Megawatts 6 4 2 ‐2 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 0 ‐4 Circuit Loading without solar Total Solar New Circuit Loading with solar Figure 7: Solar contribution to distribution circuit loading CONCLUSION This study provides an overview of the complex techniques used to identify potential rooftops in a specific geographical location that can accommodate photovoltaic panels to generate electricity. Based on simulations, the approximate solar generation potential for customers connected to the Bingham#11 distribution circuit in South Jordan, Utah was found to be approximately 9.01 9 | P a g e Rocky Mountain Power Rocky Mountain Power Exhibit RMP___(DLM-1) Page 10 of 11 Docket No. 16-035-__ Witness: Douglas L. Marx megawatts (ac). Further, this study clearly shows that for the identified study area, solar generation reduces the circuit peak demand by only 6.8%. It should be noted that solar contribution to circuit demand might vary significantly from minute to minute when the variability of customer load is combined with the solar generation volatility caused by cloud transients. Considering the insignificant reduction in peak demand and the potential volatility in solar generation levels, the distribution planner will continue to plan infrastructure improvements for circuit peak loading without consideration for the contribution from solar photovoltaic generation. 10 | P a g e Rocky Mountain Power Rocky Mountain Power Exhibit RMP___(DLM-1) Page 11 of 11 Docket No. 16-035-__ Witness: Douglas L. Marx APPENDIX A – Quick Facts Study Area – Bingham 11 Study Service Area (approximate boundaries): EAST – WEST – NORTH – SOUTH – 2865 West 4500 West 10400 South 11800 South Maximum Solar Output – 7.77 MW (May 13, 1200 hrs) Bingham 11 Feeder: Capacity = 10.32 MW 2014 Peak = 9.95 MW (July 14, 1730 hrs) 2015 Projection = 10.15 MW Bingham Substation (Xfmr #1): Capacity = 25 MVA 2014 Peak = 17.82 MW 2015 Projection = 19.26 MW Critical Loads: District Shopping Center Map of Study Area: 11 | P a g e Rocky Mountain Power Docket No. 16-035-____ Witness: Michael G. Wilding BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Direct Testimony of Michael G. Wilding November 2016 1 Q. dba Rocky Mountain Power (“the Company”). 2 3 Please state your name, business address and present position with PacifiCorp, A. My name is Michael G. Wilding. My business address is 825 NE Multnomah Street, Suite 600, Portland, Oregon 97232. My title is Manager, Net Power Costs. 4 5 Qualifications 6 Q. Briefly describe your education and business experience. 7 A. I received a Master of Accounting from Weber State University and a Bachelor of 8 Science degree in accounting from Utah State University. I am a Certified Public 9 Accountant licensed in the state of Utah. Prior to joining the Company, I was 10 employed as an internal auditor for Intermountain Healthcare and as an auditor for 11 the Utah State Tax Commission. I have been employed by the Company since 12 February 2014. 13 Q. Have you testified in previous regulatory proceedings? 14 A. Yes. I have filed testimony in proceedings before the public utility commissions in Utah, Wyoming, Idaho, California, and Oregon. 15 16 Purpose of Testimony 17 Q. What is the purpose of your testimony in this proceeding? 18 A. My testimony presents and supports the Company’s net power cost ("NPC") 19 analysis of the net metering program (the "Program") for the 12-month period from 20 January 1, 2015 through December 31, 2015 (“Study Period”). Page 1 - Direct Testimony of Michael G. Wilding 21 Q. your testimony? 22 23 Have you provided detailed support for the NPC analysis of the Program with A. Yes. Exhibit RMP___(MGW-1) includes a detailed NPC analysis of the Program for the Study Period. 24 25 Net Power Cost Analysis of the Net Metering Program 26 Q. analysis of the Program. 27 28 Please provide an overview of the framework the Company used in its NPC A. The framework of the NPC analysis of the Program calculated the NPC benefits of 29 the Program by assuming a system with no private generation from net metering 30 customers. To do this, the Company first projected the change in generation and 31 market transactions that would have taken place if net metering customers had not 32 generated any power, i.e., took full requirements service from the Company. Next, 33 the Company multiplied the actual costs of generation and market transactions by 34 the incremental changes in generation and market transactions to estimate the net 35 benefit to the system resulting from private generation. The actual costs are taken 36 from the 2015 Adjusted Actual NPC ("Actual NPC") as reported in the Docket No. 37 16-035-01 ("2016 EBA"). Finally, the integration costs approved by the 38 Commission in Docket No. 12-035-100 (the "QF Docket") were deducted from that 39 amount.1 1 See Docket No. 12-035-100, Order on Phase II Issues, at 34 (Utah P.S.C. August 16, 2013). In the QF Docket, the Commission approved, among other things, solar integration charges the equivalent of 65 percent and 50 percent of wind integration charges for fixed solar and tracking solar resources, respectively, from the Company's 2012 Wind Integration Study (the "Phase II Order"). Page 2 - Direct Testimony of Michael G. Wilding 40 Q. Study Period. 41 42 Please describe the Company’s NPC analysis for the Program during the A. Using the Company's Generation and Regulation Initiative Decision Tools 43 ("GRID") production cost model to calculate energy changes in system generation 44 and market transactions, the NPC analysis involved comparing the results of two 45 GRID studies. The first GRID study is the Company’s Utah Schedule 37 filing 46 dated April 30, 2015 (“Base Study”). The second GRID study increases Company 47 system load by 58 gigawatt-hours ("GWh"), which is the estimated amount of 48 energy needed to replace generation from Utah net metering customers (the "No 49 NEM Study"), as discussed in the testimony of Company witness Mr. Robert M. 50 Meredith. In other words the No NEM Study removed private generation from the 51 GRID analysis, but made no other changes. Table 1 below shows the difference in 52 energy between the Base Study and the No NEM Study by NPC component for 53 system generation and market transactions. 54 TABLE 1 Change in Generation/Market Transactions (GWh) NPC Component Base Study No NEM Study Change Percentage Change System Balancing Sales (7,427) (7,404) 22 39% System Balancing Purchases 3,841 3,858 17 30% Coal Generation 37,729 37,746 17 29% Natural Gas Generation 12,890 12,891 1 2% Total 47,033 47,090 58 100% 55 The Company’s NPC analysis of the Program is calculated on a monthly 56 basis applying the percentage change (the weight) of the energy to the 2015 actual 57 unit costs of each NPC component. The No NEM Study showed energy changes to 58 the following NPC components: (i) system balancing purchases/sales ("market Page 3 - Direct Testimony of Michael G. Wilding 59 transactions"), (ii) coal fuel expense, and (iii) natural gas fuel expense. Therefore, 60 the benefit of NEM on a dollar per megawatt-hour basis ("$/MWh") is the weighted 61 aggregate of the market transactions, coal fuel expense, and natural gas fuel 62 expense less the avoided integration costs. The $/MWh benefit is then multiplied 63 by the estimated NEM generation to arrive at the total NPC benefit. 64 Q. NPC analysis of the Program? 65 66 Have you provided any other exhibits to your testimony that are related to the A. Yes, the following exhibits also support the NPC analysis of the Program: • 67 Confidential Exhibit RMP___(MGW-2): Base GRID Study, the Company’s Utah Schedule 37 filing dated April 30, 2015. 68 69 • Confidential Exhibit RMP___(MGW-3): No Net Metering Study. 70 • Exhibit RMP___(MGW-4): 2015 Actual Net Power Costs. 71 Q. Please summarize the results of the NPC analysis. 72 A. Based on the NPC analysis, and as discussed in more detail below, the Company 73 estimates that, for the Study Period, system NPC would increase by approximately 74 $1.3 million if the Company were required to supply the energy that was otherwise 75 generated by net metering customers. This overall result is the aggregation of the 76 NPC calculations the Company conducted over 12 monthly periods. To 77 demonstrate the NPC analysis of the Program for each month, I will walk through 78 the analysis using January 2015 (the first month of the Study Period) as an example. Page 4 - Direct Testimony of Michael G. Wilding 79 Determining the Necessary Energy From Each Source 80 Q. Please describe how the Company determined the amount of energy to include 81 in the No NEM Study to account for the assumed condition that there was no 82 private generation. 83 A. The Company estimated the amount of energy generated by net metering customers 84 and prepared a production profile as discussed in the testimony of Mr. Meredith. 85 According to that methodology, the Company determined that private generation 86 under the Program and avoided line losses was approximately 58 GWh during the 87 Study Period. The Company used this figure to establish the overall energy it would 88 need to include in the No NEM Study. For January 2015, Mr. Meredith calculated 89 the amount of private generation that would need to be replaced in the No NEM 90 Study to be 1,989 MWh. 91 Q. How did you use the energy estimates prepared by Mr. Meredith? 92 A. The energy estimates and production profile from net metering customers were run 93 through the GRID model for the No NEM Study. In that study, the GRID model 94 determined how to replace energy otherwise provided by private generation using 95 market transactions (both decreased sales and increased purchases), coal 96 generation, and natural gas generation. As an example, the change in production 97 between the Base Study and the No NEM Study for January 2015 is shown in Table 98 2 below: Page 5 - Direct Testimony of Michael G. Wilding TABLE 2 99 100 Market Transactions 101 Q. Please describe the market transactions component of the NPC Analysis. 102 A. The actual Palo Verde (“PV”) monthly market price was used for the market 103 transactions (or system balancing sales and purchases) component of the NPC 104 analyses. The actual monthly PV price is shaped to the same profile as private 105 generation and is calculated using the same ratio of heavy load hours (“HLH”) and 106 light load hours (“LLH”). For example, in January 2015, the actual PV market price 107 was $25.54/MWh, based on approximately 85 percent HLH and 15 percent LLH. 108 Q. Were any adjustments made to the actual monthly PV market price? 109 A. Yes. The actual monthly PV market price must be adjusted because the change in 110 market transactions occurred in multiple markets. To make this adjustment, I first 111 compared the unit cost of the change in market transactions between GRID studies 112 to the Base Study PV price (the Base Study PV price uses the same HLH/LLH 113 ratio). For January 2015, the unit cost of the change between the Base Study and 114 the No NEM Study was $22.85/MWh ($32,753 / 1,433 MWh) and the Base Study 115 PV market price was $25.54/MWh. Page 6 - Direct Testimony of Michael G. Wilding 116 The change in the value of the market transactions between the Base Study 117 and the No NEM Study for January 2015 was 89.5 percent of the Base Study PV 118 market price ($22.85 / $25.54). Therefore, the same percentage is applied to the 119 actual monthly PV market price adjustments and results in a Program benefit related 120 to market transactions of $22.89/MWh (Line 28 of Exhibit RMP_MGW-1). 121 Coal Fuel Expense 122 Q. Please describe the coal fuel expense component of the NPC analysis. 123 A. For coal generation, the Company used the actual unit cost of coal generation each 124 month. The unit cost of coal generation was $19.60/MWh for January 2015, as 125 shown on Line 32 of Exhibit RMP ___ (MGW-1). 126 Natural Gas Fuel Expense 127 Q. Please describe the natural gas fuel expense component of the NPC analysis. 128 A. For natural gas generation, the Company used the actual unit cost of natural gas 129 generation each month. Thus, natural gas generation was $35.14/MWh for January 130 2015, as shown on Line 33 of Exhibit RMP ___ (MGW-1). 131 Integration Costs 132 Q. Please describe the effect of integration costs on the NPC analysis. 133 A. Integration costs represent the costs associated with integrating private generation 134 from the Program into the Company’s system, including additional reserves 135 required due to the intermittency of that private generation. This represents an 136 increase to NPC when a customer adds private generation. Likewise, if private 137 generation is removed from the system, there would be no need for integration and Page 7 - Direct Testimony of Michael G. Wilding 138 additional reserve requirements, decreasing NPC. Consistent with the 139 Commission's Order in the QF Docket, the Company used solar integration costs 140 in the NPC analysis of $2.83/MWh.2 141 NPC Analysis Results 142 Q. What are the results of the NPC analysis for January 2015? 143 A. For the month of January 2015, the NPC analysis resulted in a net benefit of $19.49/MWh or $38,772 as shown in Table 33 below. 144 TABLE 3 145 146 Q. the 12-months of the Study Period? 147 148 What is the cumulative benefit of private generation under the Program for A. Assuming an estimate of 58 GWh of power from private generation under the Program that would need to be replaced, NPC would increase by $22.28/MWh or 149 2 Docket No. 12-035-100, Order on Phase II Issues, at 34 (Utah P.S.C. August 16, 2013). Figures shown in Table 3 are rounded and electronic workpapers supporting the calculation have been provided with the filing. 3 Page 8 - Direct Testimony of Michael G. Wilding 150 $1.3 million as seen in Lines 39 and 40, respectively, of Exhibit RMP___(MGW- 151 1). 152 Q. Does this conclude your direct testimony? 153 A. Yes. Page 9 - Direct Testimony of Michael G. Wilding Rocky Mountain Power Exhibit RMP___(MGW-1) Docket No. 16-035-__ Witness: Michael G. Wilding BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Michael G. Wilding NPC Analysis November 2016 ∑ Lines 6:9 UT Net Metering Generation HLH UT Net Metering Generation LLH Base Palo Verde HLH Base Palo Verde LLH Energy (MWh 000) Line 31 / Line 33 Line 32 / Line 34 Exhibit RMP___(MGW-4) Row 289 Exhibit RMP___(MGW-4) Row 300 Exhibit RMP___(MGW-4) Row 139 Exhibit RMP___(MGW-4) Row 150 ∑ Lines 34:37 Line 24 * Line 35 Line 25 * Line 36 Line 22 * Line 23* Line 30 40 Total NPC Benefit of Net Metering Generation Line 39 * Line 10 NPC Benefit of Net Metering Generation Unit Value of Solar - Purchases/Sales Integration Cost - Fixed Solar Unit Value of Solar - Coal Unit Value of Solar - Gas Integration Cost - Fixed Solar Total Unit Value of Solar $/MWH NPC Unit Benefit of Net Metering Generation 32 Coal Fuel Burn Expense 33 Natural Gas Fuel Burn Expense Actual Unit Costs ($)/(MWh) 30 Coal Generation 31 Natural Gas Generation (Line 26 * Line 28 +Line 27 * Line 29) / (Line 26 + Line 27) Line 27 * Line 22 Line 16 Line 17 Line 20 / Line 21 (Line 16 * Line 18 +Line 17 * Line 19) / (Line 16 + Line 17) (Line 1 + Line 2) / (Line 6 + Line 7) 2015 Actual NPC Actual Palo Verde Market Price UT Net Metering Generation HLH UT Net Metering Generation LLH Actual Palo Verde HLH Actual Palo Verde LLH Line 6 / Line 10 Line 7 / Line 10 Line 8 / Line 10 Line 9 / Line 10 ∑ Lines 16:19 Market Transactions Base Palo Verde Market Price System Balancing Sales System Balancing Purchases Coal Generation Gas Generation Total Dollars ($000) Line 1 / Line 6 Line 2 / Line 7 Line 3 / Line 8 Line 4 / Line 9 Line 5 / Line 10 Percentage Change or Weight of NPC Component System Balancing Sales System Balancing Purchases Coal Fuel Burn Expense Gas Fuel Burn Expense Total Unit Costs $/MWH Unit Costs ($)/(MWh) of Change Between Base Study and No NEM Study System Balancing Sales System Balancing Purchases Coal Generation Gas Generation UT Net Metering Solar Generation 28 Coal Fuel Burn Expense 29 Natural Gas Fuel Burn Expense 34 35 36 37 38 39 ∑ Lines 1:4 Change in Energy Between Base Study and No NEM Study 27 Actual Palo Verde Market Price 28 Adjusted Actual Palo Verde Market Price 23 24 25 26 Reference Change in Net Power Costs Between Base Study and No NEM Study Dollars ($) System Balancing Sales System Balancing Purchases Coal Fuel Burn Expense Gas Fuel Burn Expense Change in Net Power Cost 20 Base Palo Verde Market Price 21 Unit Cost Change of Market Transactions Unit Cost Change of Market Transactions 22 Compared to Base Palo Verde Market Price 16 17 18 19 16 17 18 19 20 11 12 13 14 15 6 7 8 9 10 1 2 3 4 5 Line No. Exhibit RMP___(MGW-1) Net Power Cost Analysis of the Net Metering Program Study Period: January - December 2015 $ $/MWh $/MWh $/MWh $/MWh $/MWh $/MWh $/MWh $/MWh MWh ('000s) MWh ('000s) $ ('000s) $ ('000s) $/MWh $/MWh MWh MWh $/MWh $/MWh % $/MWh $/MWh MWh MWh $/MWh $/MWh % % % % % $/MWh $/MWh $/MWh $/MWh $/MWh MWh MWh MWh MWh MWh $ $ $ $ $ Units $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 38,772 2.95 13.55 5.03 0.80 (2.83) 19.49 19.60 35.14 3,657 692 71,690 24,309 25.58 22.89 1,697 292 25.79 24.42 89.5% 25.54 22.85 1,697 292 25.79 24.10 12.87% 59.19% 25.66% 2.28% 100% 22.92 22.83 22.83 20.71 22.79 256 1,177 510 45 1,989 5,869 26,884 11,650 937 45,340 Jan-15 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 55,445 2.54 9.75 6.39 1.67 (2.83) 17.51 19.34 39.37 3,166 492 61,222 19,353 23.73 19.59 2,638 529 24.17 21.54 82.5% 23.72 19.57 2,638 529 24.17 21.45 12.98% 49.76% 33.02% 4.23% 100% 19.97 19.47 19.95 18.54 19.65 411 1,576 1,046 134 3,166 8,209 30,678 20,859 2,483 62,230 Feb-15 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 86,824 2.47 8.90 7.65 2.51 (2.83) 18.70 19.94 40.40 3,540 492 70,591 19,892 24.59 20.52 3,890 753 25.07 22.08 83.4% 24.56 20.49 3,890 753 25.07 21.90 12.04% 43.38% 38.36% 6.22% 100% 21.61 20.18 20.17 18.58 20.25 559 2,014 1,781 289 4,642 12,076 40,649 35,924 5,366 94,015 Mar-15 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 92,039 9.12 6.14 3.83 1.34 (2.83) 17.61 19.67 31.38 3,333 588 65,574 18,448 23.71 20.02 4,493 734 24.05 21.61 84.4% 23.65 19.97 4,493 734 24.00 21.50 45.53% 30.69% 19.49% 4.28% 100% 19.89 20.10 19.94 12.50 19.65 2,380 1,604 1,019 224 5,227 47,324 32,244 20,319 2,797 102,683 Apr-15 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 91,155 6.46 6.28 6.97 0.94 (2.83) 17.82 19.72 29.49 3,394 722 66,951 21,287 23.36 20.73 3,968 1,147 24.04 21.02 88.7% 25.52 22.64 3,968 1,147 26.75 21.25 31.16% 30.33% 35.34% 3.17% 100% 23.13 22.13 21.39 22.82 22.20 1,594 1,551 1,808 162 5,115 $ 36,868 $ 34,334 $ 38,666 $ 3,706 $ 113,573 May-15 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 164,156 6.75 17.15 4.01 (0.20) (2.83) 24.88 19.32 28.13 3,618 872 69,888 24,536 30.39 29.89 5,673 925 31.72 22.24 98.4% 27.48 27.03 5,673 925 28.50 21.25 22.58% 57.38% 20.76% -0.72% 100% 26.52 27.23 21.94 (0.50) 26.17 1,490 3,786 1,370 (47) 6,599 39,515 103,092 30,063 24 172,694 Jun-15 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 208,780 23.63 9.19 1.04 0.29 (2.83) 31.32 19.47 28.61 3,627 996 70,614 28,498 32.48 35.06 5,562 1,103 34.02 24.72 107.9% 32.97 35.59 5,562 1,103 34.65 24.50 67.41% 26.21% 5.37% 1.02% 100% 35.06 36.92 25.22 34.12 35.01 4,493 1,747 358 68 6,665 157,538 64,497 9,020 2,319 233,374 Jul-15 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 210,010 23.01 11.32 1.31 (0.17) (2.83) 32.64 19.36 29.67 3,716 939 71,953 27,849 33.40 36.60 5,423 1,010 34.98 24.91 109.6% 32.94 36.10 5,423 1,010 34.32 25.49 62.87% 30.94% 6.78% -0.59% 100% 35.99 36.31 23.17 (0.70) 35.44 4,045 1,990 436 (38) 6,433 145,566 72,274 10,100 26 227,966 Aug-15 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 129,292 13.61 1.53 8.77 (0.12) (2.83) 20.95 18.62 29.30 3,450 907 64,237 26,574 28.61 28.39 5,055 1,115 29.72 23.56 99.2% 28.94 28.72 5,055 1,115 30.03 24.01 47.93% 5.37% 47.09% -0.40% 100% 29.09 25.40 23.08 11.55 26.13 2,957 332 2,906 (24) 6,170 86,041 8,422 67,054 (282) 161,236 Sep-15 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 107,494 9.30 2.87 8.95 0.77 (2.83) 19.05 18.75 28.07 3,164 818 59,312 22,964 26.23 24.56 4,917 726 26.90 21.70 93.6% 27.62 25.86 4,917 726 28.05 24.72 37.87% 11.67% 47.72% 2.74% 100% 25.73 26.30 22.56 14.08 23.96 2,137 658 2,693 155 5,643 54,968 17,317 60,742 2,178 135,205 Oct-15 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 67,773 5.76 3.13 9.63 1.73 (2.83) 17.42 18.84 26.45 3,021 830 56,905 21,945 22.21 21.00 2,970 921 22.69 20.65 94.5% 26.35 24.91 2,970 921 27.23 23.52 27.42% 14.89% 51.14% 6.55% 100% 25.09 24.56 21.64 22.15 23.06 1,067 579 1,990 255 3,891 26,775 14,226 43,065 5,643 89,709 Nov-15 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 35,761 $ 9.12 1.83 8.29 (0.47) (2.83) 15.94 $ 18.89 26.21 3,613 879 68,248 23,024 21.22 18.90 1,894 350 21.59 19.21 89.1% 26.70 23.79 1,894 350 27.23 23.76 48.23% 9.70% 43.88% -1.81% 100% 23.93 23.09 22.26 15.83 23.26 1,082 218 985 (41) 2,244 25,896 5,025 21,920 (642) 52,200 Dec-15 1,287,503 22.28 19.30 30.21 41,301 9,226 797,186 278,679 57,785 Total Rocky Mountain Power Exhibit RMP___(MGW-1) Page 1 of 1 Docket No. 16-035-__ Witness: Michael G. Wilding REDACTED Rocky Mountain Power Exhibit RMP___(MGW-2) Docket No. 16-035-__ Witness: Michael G. Wilding BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ REDACTED Exhibit Accompanying Direct Testimony of Michael G. Wilding Base GRID Study: Utah Schedule 37 filing Dated April 30, 2015 November 2016 THIS EXHIBIT IS CONFIDENTIAL IN ITS ENTIRETY AND IS PROVIDED UNDER SEPARATE COVER REDACTED Rocky Mountain Power Exhibit RMP___(MGW-3) Docket No. 16-035-__ Witness: Michael G. Wilding BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ REDACTED Exhibit Accompanying Direct Testimony of Michael G. Wilding No Net Metering GRID Study November 2016 THIS EXHIBIT IS CONFIDENTIAL IN ITS ENTIRETY AND IS PROVIDED UNDER SEPARATE COVER Rocky Mountain Power Exhibit RMP___(MGW-4) Docket No. 16-035-__ Witness: Michael G. Wilding BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF UTAH ROCKY MOUNTAIN POWER ____________________________________________ Exhibit Accompanying Direct Testimony of Michael G. Wilding 2015 Actual Net Power Cost November 2016 $ Sub Total Long Term Firm Purchases PURCHASED POWER & NET INTERCHANGE Long Term Firm Purchases APS Supplemental $ Combine Hills Wind Deseret Purchase Douglas PUD Settlement Eagle Mountain - UAMPS/UMPA Gemstate Georgia-Pacific Camas Hermiston Purchase Hurricane Purchase IPP Purchase MagCorp Reserves Nucor P4 Production PGE Cove Rock River Wind Small Purchases east Small Purchases west Three Buttes Wind Top of the World Wind Tri-State Purchase Wolverine Creek Wind Total Special Sales For Resale Total Long Term Firm Sales Total Short Term Firm Sales Total Secondary Sales Special Sales For Resale Long Term Firm Sales Black Hills BPA Wind Hurricane Sale LADWP (IPP Layoff) Leaning Juniper Revenue SMUD UMPA II 251,024,443 1,669,317 $ 4,233,142 31,175,407 2,224,195 1,717,288 2,556,143 4,474,866 65,178,585 124,722 26,570,488 6,564,146 6,273,000 19,806,635 148,515 4,175,495 42,287 18,682,592 37,624,530 9,497,794 8,285,296 258,918,757 47,636,194 211,282,563 $ - 13,832,185 $ 2,169,073 15,340 26,570,488 43,065 (4,485,948) 9,491,990 Total Exhibit RMP___(MGW-4) 2015 Actual Net Power Cost As reported in: Utah Energy Balancing Account Mechanism Workpaper (2.3) - Adjusted Actual Net Power Cost 23,740,564 150,254 $ 202,963 2,958,660 199,763 261,000 593,599 5,602,898 13,163 2,526,408 544,790 521,050 1,666,980 31,000 457,859 3,629 2,185,451 4,572,609 785,134 463,356 29,170,259 4,552,158 24,618,101 $ - 1,189,243 $ 243,484 1,040 2,526,408 336 (1,576) 593,224 Jan-15 21,455,235 188,450 $ 298,817 2,499,978 332,592 257,700 536,996 4,565,789 13,982 2,470,568 495,143 521,050 1,716,980 31,000 545,470 3,419 1,703,297 3,761,688 740,999 771,319 28,812,449 3,299,900 25,512,549 $ - 1,064,338 $ 190,005 1,170 2,470,568 1,912 (990,222) 562,129 Feb-15 21,906,930 230,017 $ 340,652 2,784,921 354,819 98,158 261,800 567,204 4,640,625 9,419 2,442,788 535,482 521,050 1,666,980 (12,485) 411,351 4,634 1,829,865 3,623,431 783,623 812,597 26,987,332 3,088,771 23,898,561 $ - 1,064,554 $ 185,592 1,300 2,442,788 1,602 (1,200,196) 593,131 Mar-15 19,607,472 224,728 $ 387,297 2,873,880 201,354 108,011 257,700 581,574 4,638,832 8,424 2,118,108 494,763 521,050 1,666,980 11,000 326,838 3,337 1,194,093 2,361,309 790,580 837,614 17,409,077 3,307,219 14,101,858 $ - 1,090,086 $ 174,337 1,235 2,118,108 3,448 (662,971) 582,976 Apr-15 20,625,056 99,280 $ 325,807 2,168,653 252,783 161,620 257,700 546,283 5,815,073 6,669 2,517,328 535,647 521,050 1,666,980 11,000 224,051 3,012 1,405,511 2,776,594 794,201 535,816 11,514,369 4,342,538 7,171,831 $ - 1,212,363 $ 138,881 1,235 2,517,328 4,749 (119,712) 587,693 May-15 18,942,832 343,502 $ 85,222 2,724,506 153,896 214,814 257,700 366,796 5,917,717 6,728 2,213,043 537,821 521,050 1,666,980 11,000 143,684 3,126 777,841 1,595,787 866,794 534,826 14,360,894 4,239,727 10,121,167 $ - 1,214,192 $ (24,780) 1,365 2,213,043 5,774 (102,781) 932,914 Dollars Jun-15 19,210,437 143,946 $ 449,149 2,696,565 142,017 244,318 257,700 430,828 5,700,157 11,525 2,226,795 560,280 521,050 1,666,980 11,000 223,583 3,316 970,646 1,572,652 850,739 527,192 17,285,828 5,215,196 12,070,632 $ - 1,191,108 $ 149,915 1,430 2,226,795 6,395 (141,166) 1,780,719 Jul-15 20,001,426 164,916 $ 440,711 2,862,425 208,889 217,528 276,000 189,068 5,895,189 12,812 2,236,375 575,305 521,050 1,666,980 11,000 181,676 4,655 935,478 2,168,521 850,361 582,489 20,818,994 4,886,320 15,932,674 $ - 1,206,109 $ 140,500 1,430 2,236,375 5,178 (104,105) 1,400,832 Aug-15 18,703,316 51,341 $ 332,871 2,495,300 138,322 205,813 257,700 5,924,024 13,455 994,890 555,178 526,150 1,666,980 11,000 205,614 3,246 1,269,628 2,530,691 767,789 753,324 23,829,088 2,944,032 20,885,056 $ - 1,170,861 $ 190,594 1,300 994,890 4,081 (210,730) 793,036 Sep-15 19,289,944 26,847 $ 330,331 2,553,885 111,043 151,261 125,600 4,891,110 10,238 2,248,015 576,778 526,150 1,666,980 11,000 375,928 3,147 1,379,207 2,837,611 808,398 656,414 23,845,153 3,681,430 20,163,723 $ - 1,182,434 $ 216,340 1,300 2,248,015 2,967 (563,152) 593,527 Oct-15 22,697,198 41,787 $ 448,507 2,228,111 102,694 127,416 (20,757) 5,653,551 7,371 2,270,055 571,783 526,150 1,666,980 11,000 491,276 3,292 2,408,378 4,648,323 735,081 776,201 19,567,702 3,907,562 15,660,140 $ - 1,171,739 $ 258,122 1,300 2,270,055 3,148 (379,798) 582,996 Nov-15 24,844,033 4,251 590,816 2,328,525 26,022 188,350 106,300 662,520 5,933,620 10,940 2,306,115 581,177 526,150 1,419,855 11,000 588,165 3,473 2,623,197 5,175,314 724,095 1,034,149 25,317,611 4,171,340 21,146,271 - 1,075,159 306,083 1,235 2,306,115 3,474 (9,539) 488,812 Dec-15 Rocky Mountain Power Exhibit RMP___(MGW-4) Page 1 of 7 Docket No. 16-035-__ Witness: Michael G. Wilding Total Purchased Power & Net Interchange $ 568,213,995 153,681,772 $ 304,094 5,400,000 Total Storage & Exchange 404,260,687 1,655,013 3,539,220 $ 2,007,659 (3,891,866) 151,581,231 5,400,000 - Total Short Term Firm Purchases Total Secondary Purchases $ 4,909,460 $ 5,706,446 22,551,685 2,941,316 406,735 463,986 13,234,356 639,901 173,973 3,788,267 1,721 6,311,933 1,372,923 401,384 2,274,828 7,899,282 11,908,767 14,356,367 10,724,359 3,977,161 3,510,784 1,091,841 2,302,612 28,030,957 881,438 1,453,247 29,961 235,543 4,567,442 4,567,442 Storage & Exchange APS Exchange BPA Exchange BPA FC II Wind BPA FC IV Wind BPA So. Idaho Cowlitz Swift EWEB FC I PSCO FC III PSCo Exchange Redding Exchange SCL State Line Total Long Term Firm Purchases Total Mid-Columbia Contracts Mid-Columbia Contracts Douglas - Wells Grant Surplus Grant Reasonable Total Qualifying Facilities $ Total Seasonal Purchased Power Qualifying Facilities QF California QF Idaho QF Oregon QF Utah QF Washington QF Wyoming Biomass One QF Chevron Wind QF DCFP QF Evergreen BioPower QF ExxonMobil QF Five Pine Wind QF Foote Creek III Wind QF Kennecott Refinery QF Kennecott Smelter QF Mountain Wind 1 QF Mountain Wind 2 QF North Point Wind QF Oregon Wind Farm QF Power County North Wind QF Power County South Wind QF Roseburg Dillard QF SF Phosphates QF Spanish Fork Wind 2 QF Sunnyside QF Tesoro QF Threemile Canyon Wind QF US Magnesium QF Utah Pavant Solar Utah Red Hills Solar $ $ Seasonal Purchased Power Constellation 2013-2016 $ $ 45,622,745 9,341,096 $ 158,739 450,000 450,000 - - 35,672,910 58,954 303,338 $ 167,305 (411,689) 11,873,392 383,591 $ 357,620 2,232,321 131,059 9,938 36,143 1,373,734 68,667 2,137 278,402 272,431 155,576 13,994 1,033,169 1,379,222 519,008 336,926 282,500 263,079 42,651 189,067 2,471,343 40,815 - - $ $ 45,164,895 9,585,253 $ 26,732 450,000 450,000 - - 35,102,911 58,954 303,338 $ 167,305 (411,689) 13,588,722 613,161 $ 412,424 2,079,866 130,584 8,985 45,068 1,369,768 77,525 8,355 277,408 562,688 173,807 1,034,829 1,450,828 1,184,298 660,410 438,739 393,958 58,406 176,274 2,217,831 127,588 85,923 - - $ 46,065,368 9,408,716 15,391 450,000 450,000 - - 36,191,261 1,208,954 $ $ 303,338 $ 167,305 738,311 13,075,377 517,795 $ 348,683 2,083,699 140,937 9,764 57,107 1,184,980 97,155 4,145 349,688 1,721 569,400 192,860 15,837 659,247 980,912 1,323,953 716,205 378,618 326,400 98,187 195,826 2,488,705 235,993 97,560 - - $ 39,938,947 8,056,787 15,958 450,000 450,000 - - 31,416,202 (42,644) $ $ 303,338 $ 167,305 (513,287) 11,851,374 476,699 $ 387,802 2,213,376 165,716 33,277 32,692 1,349,747 34,809 9,566 326,666 534,668 81,278 35,720 544,887 819,233 1,196,979 990,722 320,887 288,821 101,211 154,033 1,500,147 121,059 131,379 - - $ $ 31,827,729 (168,317) $ 8,071 450,000 450,000 - - 31,537,975 58,954 303,338 $ 167,305 (411,689) 10,853,966 398,493 $ 610,037 2,058,277 159,834 46,791 27,604 782,532 43,208 18,295 331,609 303,016 54,478 57,566 69,406 313,461 501,596 673,385 995,405 176,434 156,838 153,517 132,633 2,489,652 149,820 150,078 - - $ $ 57,204,324 26,802,916 $ 9,974 450,000 450,000 - - 29,941,434 58,954 303,338 $ 167,305 (411,689) 10,939,648 365,294 $ 587,508 1,881,372 173,783 73,947 22,348 791,338 22,566 28,778 366,967 343,886 39,352 53,989 276,226 312,003 536,400 774,537 977,986 190,948 147,998 150,892 158,800 2,448,651 63,726 150,351 - - 1,574,456 $ 70,913,580 37,183,252 $ 13,267 450,000 450,000 - - 31,692,604 58,954 303,338 $ 167,305 (411,689) 12,423,213 342,968 $ 524,298 1,773,878 228,779 79,243 29,432 754,749 50,884 25,651 356,251 452,616 93,478 43,185 292,391 505,673 909,758 1,074,040 1,306,219 270,455 232,561 133,429 260,499 2,494,428 6,339 182,010 - 1,574,456 $ 1,629,374 $ $ 54,166,562 19,332,222 $ 15,702 450,000 450,000 - - 32,739,264 58,954 303,338 $ 167,305 (411,689) 12,678,884 354,860 $ 359,539 1,706,265 508,167 70,851 28,208 685,595 46,809 27,096 372,810 498,589 87,525 63,610 361,310 536,636 921,129 1,280,775 1,186,496 315,233 273,825 75,555 276,689 2,471,509 8,991 160,814 - 1,629,374 1,366,720 $ $ 44,464,625 11,633,739 $ 10,116 450,000 450,000 - - 31,004,050 56,852 301,236 $ 167,305 (411,689) 12,243,882 377,268 $ 428,242 1,636,083 82,120 49,826 30,448 866,649 42,660 15,298 321,570 614,933 93,280 47,995 389,990 558,303 858,731 1,549,529 903,563 311,216 267,400 55,451 170,615 2,439,206 22,839 110,668 - 1,366,720 $ 44,462,737 12,336,452 $ 11,629 450,000 450,000 - - 31,667,764 56,852 301,236 $ 167,305 (411,689) 12,320,969 374,269 $ 613,248 1,477,031 522,928 12,259 35,393 1,349,090 39,494 19,899 325,550 549,839 98,430 49,616 319,585 525,245 763,304 1,313,910 801,592 356,225 321,045 62,280 198,191 2,061,308 28,423 102,817 - (3,108) $ (3,108) $ 44,360,126 7,586,606 9,219 450,000 450,000 - - 36,314,302 56,852 $ $ 301,236 $ 167,305 (411,689) 13,560,252 320,263 $ 548,767 1,543,068 346,251 5,723 50,693 1,307,232 62,446 14,402 292,338 589,970 127,780 19,873 269,497 861,141 1,301,237 1,313,212 758,242 423,918 362,575 96,834 200,564 2,450,904 57,464 119,408 116,450 - - 44,022,356 2,583,051 9,296 450,000 450,000 - - 40,980,009 (35,576) 208,808 167,305 (411,689) 16,171,552 384,798 528,280 1,866,450 351,159 6,129 68,850 1,418,943 53,677 351 189,008 1,019,898 175,080 296,423 1,014,687 1,486,418 2,152,740 1,090,593 511,989 476,282 63,430 189,421 2,497,272 59,196 121,424 29,961 119,093 - Rocky Mountain Power Exhibit RMP___(MGW-4) Page 2 of 7 Docket No. 16-035-__ Witness: Michael G. Wilding NET POWER COST Total Other Generation Expense Other Generation Expense Blundell Black Cap Solar Total Gas Fuel Burn Expense Gas Fuel Burn Expense Chehalis Currant Creek Gadsby Gadsby CT Hermiston Lake Side 1 Lake Side 2 Total Coal Fuel Burn Expense $ $ 1,537,015,925 5,212,711 5,102,428 $ 110,283 278,678,518 36,529,831 $ 69,244,606 6,252,323 3,233,408 26,628,707 66,140,092 70,649,550 797,186,270 8,267,839 $ 58,186,217 15,663,881 18,012,713 58,264,775 12,932,324 154,578,849 111,852,653 232,232,677 98,705,741 28,488,602 $ Coal Fuel Burn Expense Carbon Cholla Colstrip Craig Dave Johnston Hayden Hunter Huntington Jim Bridger Naughton Wyodak 142,513,515 $ 4,129,672 146,643,187 $ Total Wheeling & U. of F. Expense Wheeling & U. of F. Expense Firm Wheeling Non-Firm Wheeling $ 124,508,536 386,352 382,165 $ 4,187 24,308,644 3,442,998 7,175,424 1,452 213,858 2,381,396 5,023,901 6,069,615 71,689,837 2,693,783 $ 4,660,476 1,216,478 1,359,945 5,270,394 1,265,628 15,220,510 11,321,151 16,322,374 10,233,891 2,125,206 11,671,217 11,613,101 $ 58,116 $ 109,415,845 521,834 518,120 $ 3,714 19,353,152 1,267,871 4,816,712 232,564 1,355,795 8,012,004 3,668,206 61,221,909 2,220,133 $ 2,807,220 826,970 1,336,857 4,685,115 1,068,639 12,208,853 10,157,679 15,365,170 8,750,839 1,794,434 11,966,503 11,612,493 $ 354,011 $ 121,850,003 300,044 293,896 $ 6,148 19,891,679 1,412,314 7,134,706 268,391 1,488,006 2,663,556 6,924,706 70,591,442 2,175,270 $ 4,612,993 1,417,460 1,687,508 4,816,904 942,758 11,371,996 11,158,540 20,119,362 9,683,482 2,605,169 11,988,802 11,720,265 $ 268,537 $ 118,390,688 563,414 555,283 $ 8,132 18,447,927 1,402,285 5,098,876 52,591 337,563 1,483,630 2,775,161 7,297,821 65,573,935 1,178,434 $ 4,889,763 1,374,666 1,743,103 4,270,610 519,910 12,184,339 10,424,397 20,875,260 5,682,382 2,431,071 11,275,542 11,153,555 $ 121,986 $ 120,591,062 639,528 627,971 $ 11,558 21,286,799 1,050,112 5,401,617 51,515 184,886 2,630,201 7,045,388 4,923,080 66,951,034 219 $ 5,094,514 1,053,990 1,776,837 3,957,038 892,671 13,249,823 10,508,320 21,892,823 5,980,348 2,544,450 11,400,340 11,171,549 $ 228,791 $ 149,880,400 335,172 315,066 $ 20,106 24,536,495 3,244,918 4,784,964 1,034,880 151,997 2,652,179 6,464,605 6,202,952 69,888,010 $ 6,207,723 1,507,047 1,505,830 4,943,187 1,125,258 13,303,105 10,089,331 22,122,323 6,488,198 2,596,008 12,277,292 11,473,375 $ 803,917 $ 165,874,798 614,225 594,112 $ 20,113 28,497,932 5,308,154 5,617,929 2,034,029 236,718 2,489,126 5,577,331 7,234,645 70,614,108 $ 6,148,425 1,457,874 1,739,145 4,537,738 912,518 12,910,569 8,984,112 23,849,136 7,994,448 2,080,143 12,520,781 11,930,384 $ 590,398 $ 146,185,314 365,395 350,768 $ 14,628 27,848,592 3,168,811 6,022,164 1,841,511 392,629 2,607,792 6,210,748 7,604,937 71,953,458 $ 5,175,777 1,461,471 1,790,785 5,495,046 1,294,435 12,874,308 10,425,749 21,161,287 9,524,133 2,750,467 12,670,300 12,375,095 $ 295,205 $ 124,344,011 383,312 373,668 $ 9,645 26,574,146 4,096,968 5,539,790 1,190,437 247,925 2,787,862 6,906,769 5,804,395 64,237,450 $ 5,454,998 1,499,275 1,115,354 4,705,182 1,208,689 12,829,988 7,032,248 18,895,472 9,085,098 2,411,145 12,513,565 12,055,443 $ 458,122 115,387,905 381,310 374,696 $ 6,614 22,963,976 4,831,858 $ 6,253,660 (430) 448,198 1,744,942 5,837,463 3,848,284 59,312,150 $ 5,420,481 1,403,026 1,087,089 5,222,818 1,325,243 12,689,382 5,378,599 16,494,445 8,012,022 2,279,044 12,112,886 11,510,638 $ 602,248 $ 115,898,185 324,088 320,343 $ 3,744 21,944,967 3,800,858 6,170,092 8,494 324,335 2,408,932 4,298,634 4,933,623 56,905,045 $ 2,325,878 1,086,053 1,425,166 5,037,310 1,328,050 12,293,066 5,560,018 16,634,072 8,934,596 2,280,836 11,931,662 11,634,368 $ 297,294 124,689,179 398,036 396,342 1,694 23,024,209 3,502,682 5,228,672 37,845 194,345 2,598,846 5,324,532 6,137,287 68,247,893 5,387,968 1,359,572 1,445,094 5,323,431 1,048,524 13,442,908 10,812,508 18,500,952 8,336,305 2,590,630 14,314,296 14,263,248 51,049 Rocky Mountain Power Exhibit RMP___(MGW-4) Page 3 of 7 Docket No. 16-035-__ Witness: Michael G. Wilding Total Requirements Total Special Sales For Resale Total Long Term Firm Sales Total Short Term Firm Sales Total Secondary Sales Special Sales For Resale Long Term Firm Sales Black Hills BPA Wind Hurricane Sale LADWP (IPP Layoff) SMUD UMPA II NET SYSTEM LOAD Check 99,239 722,529 - 29,229 3,310 16 52,824 (75) 13,935 5,216,791 (0.00) 38,614 818,383 - 22,879 2,583 18 47,668 (47,131) 12,597 4,413,770 0.00 29,270 772,361 - 22,890 2,523 20 47,031 (57,125) 13,931 4,719,954 (0.00) 31,644 618,986 - 24,188 2,370 19 23,128 (31,555) 13,494 4,564,264 0.00 85,923 326,507 - 29,130 1,888 19 52,370 (11,181) 13,697 4,640,985 0.00 95,426 364,010 - 29,146 1,344 21 48,210 (4,892) 21,597 5,319,907 (0.00) 113,703 445,491 - 28,015 2,038 22 48,497 (6,719) 41,850 5,494,039 (0.00) 107,625 555,652 - 28,750 1,910 22 48,976 (4,955) 32,922 5,350,899 0.00 87,147 734,320 - 27,023 2,591 20 49,183 (10,030) 18,360 4,707,457 (0.00) 67,253 736,142 - 27,590 2,941 20 49,558 (26,804) 13,948 4,575,008 (0.00) 75,964 621,299 - 27,066 3,509 20 49,942 (18,077) 13,504 4,844,669 (0.00) 88,258 903,862 - 22,334 4,161 19 52,463 (454) 9,735 5,258,614 0.00 8,539,607 821,768 856,997 801,631 650,630 412,430 459,436 559,194 663,277 821,467 803,395 697,263 992,120 ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= 67,645,964 6,038,559 5,270,767 5,521,585 5,214,893 5,053,415 5,779,343 6,053,232 6,014,176 5,528,924 5,378,402 5,541,932 6,250,735 920,066 7,619,541 - 318,240 31,168 236 569,850 (218,998) 219,570 59,106,356 0 Rocky Mountain Power Exhibit RMP___(MGW-4) Page 4 of 7 Docket No. 16-035-__ Witness: Michael G. Wilding 52,126 99,864 254,983 44,920 10,315 10,695 152,593 37,035 7,202 56,473 57 90,752 62,479 12,769 70,402 140,487 183,055 207,502 147,468 57,345 50,378 32,759 45,915 418,218 27,528 19,540 1,392 12,281 Qualifying Facilities QF California QF Idaho QF Oregon QF Utah QF Washington QF Wyoming Biomass One QF Chevron Wind QF DCFP QF Evergreen BioPower QF ExxonMobil QF Five Pine Wind QF Foote Creek III Wind QF Kennecott Refinery QF Kennecott Smelter QF Mountain Wind 1 QF Mountain Wind 2 QF North Point Wind QF Oregon Wind Farm QF Power County North Wind QF Power County South Wind QF Roseburg Dillard QF SF Phosphates QF Spanish Fork Wind 2 QF Sunnyside QF Tesoro QF Threemile Canyon Wind QF US Magnesium QF Utah Pavant Solar Utah Red Hills Solar 2,306,533 122,421 Total Seasonal Purchased Power Total Qualifying Facilities 122,421 3,923,200 Seasonal Purchased Power Constellation 2013-2016 Sub Total Long Term Firm Purchases 176,939 2,857 6,117 24,206 2,212 282 868 19,126 4,127 69 4,142 4,038 7,722 445 17,167 20,367 7,704 4,541 4,149 3,870 1,280 3,351 37,753 546 - - - 371,176 200,027 4,598 6,790 22,662 1,995 252 1,146 18,882 3,877 294 4,148 8,003 7,702 17,802 22,393 16,882 8,831 6,285 5,644 1,752 3,222 31,727 4,005 1,134 - - - 292,686 207,344 5,469 6,194 23,070 2,182 277 1,393 16,990 3,508 531 5,205 57 9,483 6,872 504 12,363 16,065 22,271 9,670 6,327 5,426 2,946 3,776 38,119 7,354 1,289 - - - 316,477 184,135 5,056 6,773 24,606 2,747 850 695 18,830 2,239 529 4,840 9,170 4,306 1,136 11,505 15,325 20,605 13,472 5,514 4,971 3,037 3,172 19,245 3,757 1,754 - - - 267,093 166,108 4,516 10,787 24,560 2,693 1,176 539 2,714 802 4,950 5,762 3,111 1,831 2,148 6,319 9,068 12,904 13,852 3,308 2,930 4,606 2,704 38,161 4,623 2,042 - - - 317,679 166,542 4,254 10,698 21,914 3,015 1,831 391 1,589 934 5,436 6,192 2,136 1,717 8,549 6,077 8,201 14,212 13,485 3,428 2,619 4,527 4,187 37,148 1,991 2,009 - - - 323,090 173,879 4,039 8,352 20,100 3,473 1,968 466 2,252 810 5,292 6,107 3,224 1,374 9,049 7,983 10,615 14,630 18,270 3,652 3,114 4,003 4,149 38,266 216 2,474 - 41,151 41,151 316,354 184,049 4,145 5,908 19,260 6,521 1,764 433 9,698 1,919 995 5,584 6,276 2,926 2,024 11,182 7,957 10,804 16,218 16,318 3,930 3,419 2,267 4,377 37,673 293 2,157 - 41,345 41,345 336,474 194,499 4,481 8,789 18,504 4,675 1,243 616 12,084 2,187 599 4,808 8,569 4,095 1,527 12,070 9,528 12,578 21,673 12,827 4,345 3,708 1,664 4,745 36,917 742 1,527 - 40,000 40,000 326,332 186,297 4,399 10,296 17,362 6,814 337 791 18,694 2,343 903 4,864 7,185 5,012 1,578 9,891 9,989 13,264 17,194 10,916 4,661 4,204 1,869 3,795 27,681 904 1,354 - (75) (75) 285,492 220,786 3,723 9,686 18,017 4,398 162 1,348 18,472 4,686 723 4,385 8,317 6,902 632 8,341 16,253 21,664 18,589 10,439 5,922 5,056 2,905 3,813 37,197 1,793 1,620 5,743 - - 360,318 245,929 4,588 9,474 20,723 4,196 174 2,008 19,817 5,594 13 2,818 11,651 8,471 9,174 17,545 22,711 24,620 14,847 5,823 5,416 1,903 4,622 38,331 1,848 1,632 1,392 6,538 - - 410,029 ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= PURCHASED POWER & NET INTERCHANGE Long Term Firm Purchases APS Supplemental 80,830 8,550 12,700 10,950 13,150 5,750 13,310 5,020 5,750 1,950 1,200 2,050 450 Combine Hills Wind 91,036 4,365 6,426 7,326 8,329 7,007 1,833 9,659 9,478 7,159 7,104 9,645 12,706 Deseret Purchase 511,279 59,957 37,894 51,600 55,879 21,957 48,694 47,350 55,328 37,669 40,487 24,817 29,647 Douglas PUD Settlement 66,010 5,836 9,773 10,527 6,186 7,766 4,728 4,159 6,196 3,996 3,187 2,895 761 Eagle Mountain - UAMPS/UMPA 64,170 4,208 4,650 6,811 8,029 7,905 7,465 7,198 5,797 5,194 6,913 Gemstate 40,781 5,335 9,905 15,258 10,283 Georgia-Pacific Camas 45,774 6,072 5,493 5,802 5,949 5,588 3,752 4,407 1,934 6,777 Hermiston Purchase 51,300 59,405 61,069 114,728 121,992 106,776 115,755 132,188 80,323 121,078 137,168 1,200,393 98,613 Hurricane Purchase 1,919 203 215 145 130 103 104 177 197 207 158 113 168 IPP Purchase 569,850 52,824 47,668 47,031 23,128 52,370 48,210 48,497 48,976 49,183 49,558 49,942 52,463 MagCorp Reserves Nucor P4 Production PGE Cove 12,000 1,014 942 1,012 990 1,014 990 1,014 1,014 990 1,014 992 1,014 Rock River Wind 117,698 12,905 15,374 11,594 9,212 6,315 4,050 6,302 5,132 5,795 10,595 13,890 16,534 Small Purchases east 685 30 27 48 29 27 25 331 49 29 28 29 33 Small Purchases west Three Buttes Wind 294,027 34,255 26,697 28,681 18,716 22,030 12,192 15,214 14,663 19,902 21,707 38,166 41,805 Top of the World Wind 570,069 69,282 56,995 54,900 35,777 42,070 24,179 23,828 32,856 38,344 42,994 70,429 78,414 Tri-State Purchase 113,780 9,280 7,878 9,232 9,453 9,568 11,874 11,364 11,352 8,729 10,019 7,690 7,341 Wolverine Creek Wind 142,899 7,992 13,303 14,015 14,447 9,241 9,224 9,093 10,046 12,993 11,321 13,387 17,836 Rocky Mountain Power Exhibit RMP___(MGW-4) Page 5 of 7 Docket No. 16-035-__ Witness: Michael G. Wilding Total Purchased Power & Net Interchange 11,356,233 4,717,580 (19,328) (10,822) Total Storage & Exchange Total Short Term Firm Purchases Total Secondary Purchases (344) 151 (25,671) (389) 4,806 (472) 11,097 Storage & Exchange APS Exchange BPA Exchange BPA FC II Wind BPA FC IV Wind BPA So. Idaho Cowlitz Swift EWEB FC I PSCO FC III PSCo Exchange Redding Exchange SCL State Line 6,546,382 316,649 Total Mid-Columbia Contracts Total Long Term Firm Purchases 228,377 88,272 - Mid-Columbia Contracts Douglas - Wells Grant Surplus Grant Reasonable 988,518 287,159 (699) 126,479 142,848 (375) (4,903) (26) 32 8,548 (19,645) 575,579 27,464 18,429 9,035 - 1,010,853 442,498 (10,813) 60,670 69,120 462 (7,913) (415) 12 6,672 (7,268) 518,499 25,786 19,841 5,945 - 985,752 411,810 (10,510) 28,380 (467) 4,018 (92) 3,486 7,435 14,000 556,072 32,252 23,098 9,154 - 837,201 360,481 (8,952) 6,116 (1,785) (10,652) 332 5,932 12,289 479,555 28,327 20,196 8,131 - 532,000 92,505 3,844 (77,310) (77,989) (912) 4,628 132 2 (2,565) (607) 512,962 29,175 21,438 7,737 - 924,372 548,965 1,250 (142,516) (138,570) (824) 9,467 (526) 375 (4,546) (7,893) 516,674 27,042 20,062 6,980 - 1,038,519 620,701 (593) (138,857) (142,848) 984 3,099 439 65 (6,405) 5,809 516,117 25,884 19,300 6,584 - 1,040,935 591,755 (3,056) (140,029) (142,848) (269) (1,055) (99) 77 (5,862) 10,027 550,919 30,396 22,090 8,306 - 860,566 367,610 2,302 (90,156) (69,118) 1,004 (9,342) (84) 32 (4,210) (8,438) 540,810 19,979 14,287 5,692 - 1,054,831 495,530 6,130 61,754 78,336 679 (1,981) 1,192 314 (10,624) (6,162) 491,491 19,702 13,939 5,763 - 1,106,525 342,661 12,501 145,659 137,883 802 (2,799) (992) 294 5,690 4,781 605,704 24,600 17,596 7,004 - 976,160 155,903 (10,730) 148,987 142,842 851 (8,238) (250) 117 (537) 14,202 682,000 26,042 18,101 7,941 - Rocky Mountain Power Exhibit RMP___(MGW-4) Page 6 of 7 Docket No. 16-035-__ Witness: Michael G. Wilding 2,912,239 259,703 8,934 339,706 81,453 289,386 108,844 186,746 250,864 188,567 298,777 137,842 78,271 261,284 296,563 64,063 Total Hydro Generation Other Generation Blundell Black Cap Solar Dunlap I Wind Foote Creek I Wind Glenrock Wind Glenrock III Wind Goodnoe Wind High Plains Wind Leaning Juniper 1 Marengo I Wind Marengo II Wind McFadden Ridge Wind Rolling Hills Wind Seven Mile Wind Seven Mile II Wind Check Check 2,673,647 238,592 Total Resources 23,659 409 45,539 8,647 34,741 12,797 8,081 26,703 5,761 17,346 6,231 7,584 30,879 35,422 7,466 429,624 418,402 11,222 691,745 75,839 206,170 (452) 1,154 98,795 180,636 129,603 3,657,407 120,044 213,880 107,036 89,789 440,574 54,410 742,117 596,440 692,956 447,548 152,613 19,809 474 37,412 6,748 25,047 10,063 10,708 28,532 11,963 23,400 10,920 8,964 23,634 32,858 7,060 344,485 328,369 16,116 491,613 (1,220) 122,578 (349) 1,421 51,424 239,964 77,795 3,166,223 109,061 115,263 85,062 82,115 419,434 46,220 651,342 517,572 618,966 396,558 124,630 21,268 780 31,759 6,591 28,369 10,931 9,827 26,626 12,340 26,112 12,168 8,301 26,284 26,988 5,772 249,325 235,179 14,146 492,365 7,849 184,383 (374) 2,370 59,540 51,814 186,783 3,540,027 112,827 192,991 99,844 103,128 423,670 43,184 579,371 561,887 811,872 426,605 184,648 15,455 944 24,171 6,191 18,187 6,938 15,167 17,347 17,427 29,460 13,982 6,109 16,486 21,559 4,585 242,495 228,207 14,288 587,960 20,072 168,639 (132) 3,568 61,200 84,241 250,372 3,333,229 51,934 211,502 93,681 105,348 364,889 23,609 652,122 549,873 835,050 266,968 178,253 21,324 960 18,954 4,934 21,949 7,859 15,915 16,457 20,319 16,216 7,486 5,085 18,974 16,612 3,585 208,629 173,327 35,302 721,927 (153) 183,136 (279) 1,423 114,978 186,354 236,468 3,394,230 (286) 230,835 89,592 96,126 369,823 38,845 682,801 557,949 794,264 344,196 190,085 21,829 1,196 13,171 3,511 11,925 4,546 17,223 10,992 18,065 19,747 9,002 3,566 10,036 12,116 2,586 205,367 170,817 34,550 872,239 113,039 164,123 16,135 2,077 122,228 237,658 216,979 3,617,853 (204) 266,859 104,750 95,349 428,447 45,736 708,797 528,460 859,571 401,835 178,253 23,165 1,112 18,311 5,326 17,509 6,234 22,297 14,629 23,593 27,646 13,031 4,845 14,369 18,473 3,975 176,950 136,630 40,320 996,138 231,044 182,143 30,783 3,304 106,974 181,159 260,731 3,627,111 (197) 261,395 101,739 101,768 402,671 39,667 693,067 491,886 950,804 431,938 152,373 22,705 1,042 14,876 4,991 15,875 5,820 21,842 12,617 21,086 23,933 12,132 4,438 13,688 14,763 3,071 125,852 92,752 33,100 938,519 100,045 203,662 28,629 5,923 115,981 220,274 264,005 3,715,991 (144) 218,621 103,314 106,171 473,567 54,915 704,318 578,289 826,315 455,162 195,463 22,992 802 21,227 6,770 20,843 7,282 15,602 18,260 15,756 20,671 7,815 5,985 18,090 19,656 4,417 105,192 86,238 18,954 907,032 150,786 179,034 16,010 3,276 132,458 200,926 224,542 3,449,966 (120) 230,973 103,480 71,374 432,999 50,842 753,202 457,537 745,187 427,244 177,248 24,125 638 24,119 7,683 19,918 7,363 14,586 21,942 12,426 26,089 11,487 6,739 18,196 24,113 5,199 116,826 111,791 5,035 817,979 201,750 213,292 (538) 5,416 80,459 222,738 94,862 3,164,144 (139) 223,379 107,681 62,677 461,525 57,361 711,535 262,719 669,893 448,200 159,313 20,575 398 42,136 9,167 34,852 13,476 17,187 22,135 14,149 27,709 13,144 6,714 32,970 36,844 7,840 285,214 276,884 8,330 829,810 111,902 245,325 (432) 3,427 121,306 229,144 119,138 3,021,087 (229) 93,733 99,563 77,895 454,561 55,012 702,933 313,395 657,702 406,527 159,995 22,797 179 48,031 10,894 40,171 15,535 18,311 34,624 15,682 40,448 20,444 9,941 37,678 37,159 8,507 422,280 415,051 7,229 878,594 82,040 204,621 (73) 1,508 137,410 237,512 215,576 3,613,299 (219) 240,043 96,815 77,245 468,810 45,129 754,008 572,311 733,193 446,540 179,424 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (0) 0 (0) 0 0 0 (0) 2,851,003 271,265 257,592 254,116 214,008 196,629 159,511 214,515 192,879 206,168 224,623 299,296 360,401 ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= 67,645,964 6,038,559 5,270,767 5,521,585 5,214,893 5,053,415 5,779,343 6,053,232 6,014,176 5,528,924 5,378,402 5,541,932 6,250,735 ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= ============= 9,225,921 Total Gas Generation Hydro Generation West Hydro East Hydro Total Other Generation 1,092,993 2,257,106 88,928 34,867 1,202,753 2,272,420 2,276,854 41,300,567 392,328 2,499,474 1,192,557 1,068,985 5,140,970 554,930 8,335,613 5,988,318 9,195,773 4,899,321 2,032,298 Gas Generation Chehalis Currant Creek Gadsby Gadsby CT Hermiston Lake Side 1 Lake Side 2 Total Coal Generation Coal Generation Carbon Cholla Colstrip Craig Dave Johnston Hayden Hunter Huntington Jim Bridger Naughton Wyodak Rocky Mountain Power Exhibit RMP___(MGW-4) Page 7 of 7 Docket No. 16-035-__ Witness: Michael G. Wilding 1407 W. North Temple, Suite 330 Salt Lake City, Utah 84116 November 9, 2016 VIA ELECTRONIC FILING AND OVERNIGHT DELIVERY Public Service Commission of Utah Heber M. Wells Building, 4th Floor 160 East 300 South Salt Lake City, UT 84114 Attention: Gary Widerburg Commission Secretary Re: Advice No. 16-13 Revisions to Schedule 135, Net Metering Service Proposal for new Schedule 135A, Net Metering - Transition Service Enclosed for filing are originals and five copies of proposed tariff sheets associated with Tariff P.S.C.U No. 50 of PacifiCorp, d.b.a. Rocky Mountain Power, applicable to electric service in the State of Utah. Pursuant to the requirement of Rule R746-405-1(D), Rocky Mountain Power (the “Company”) states that the proposed tariff sheets do not constitute a violation of state law or Commission rule. The Company will also provide an electronic version of this filing and the accompanying workpapers to [email protected]. The Company respectfully requests an effective date of December 10, 2016 for the proposed tariff changes, as explained in more detail below. Fifth Revision of Sheet No. B.1 1st Revision Sheet No. 135.1 Original Sheet No. 135A.1E Original Sheet No. 135A.2E Original Sheet No. 135A.3E Original Sheet No. 135A.4E Original Sheet No. 135A.5E Index Schedule 135 Schedule 135A Schedule 135A Schedule 135A Schedule 135A Schedule 135A Electric Service Schedules Net Metering Service Net Metering - Transition Service Net Metering - Transition Service Net Metering - Transition Service Net Metering - Transition Service Net Metering - Transition Service Through this filing the Company is requesting modifications to Schedule 135, Net Metering Service, to close it to new service. In its place, the Company seeks approval of Electric Service Schedule No. 135A, Net Metering - Transition Service, which mirrors the current Schedule 135 with the exception of the following language which is added to the Availability Section: Customers will be subject to all changes to net metering service including changes to credits, charges or rate structures offered herein and in related Public Service Commission of Utah November 9, 2016 Page 2 tariffs resulting from the final determination under Utah Code Ann. § 5415-105.1 which may include, without limitation, a transfer from this tariff to all new applicable service schedules approved by the Commission. Residential customers who apply for net metering service after December 9, 2016, will take service pursuant to Schedule 135A until the Commission rules on the Company’s proposals set forth in its Compliance Filing and Request to Complete All Analyses Required Under the Net Metering Statute for the Evaluation of the Net Metering Program (“Compliance Filing”), filed concurrently with this tariff advice filing. Proposed Schedule 135A does not “increase rates, charges or conditions, change classifications which result in increases in rates and charges or make changes which result in lesser service or more restrictive conditions at the same rate or charge.” Therefore, Commission Rule R746-405-2(E) provides the Commission authority to implement Schedule 135A 30 days from the date of this filing. Background The Commission has been actively reviewing and evaluating the Company’s residential net metering service in Utah since late 2013. For example, the Company proposed a fixed net metering facilities charge on net metering customers to cover distribution and certain customer service costs when it filed its 2014 general rate case, Docket No. 13-035-184 (the “2014 GRC”). In a notice issued April 16, 2014, following the enactment of Utah Code Ann. § 54-15-105.1 (“Net Metering Statute”),1 the Commission stated its intent to address the implementation of the statute in the 2014 GRC. All other issues in the 2014 GRC were ultimately settled later that year, so the final hearings held in that docket only concerned the proposed fixed net metering facilities charge and implementation of the Net Metering Statute. Following hearings, the Commission issued its order, declining to approve the proposed net metering charge and declining to determine the costs and benefits of the net metering program. Rather, “recognizing the importance of the issues raised by parties in the rate case,” the Commission established a separate, on-going docket to examine the costs and 1 54-15-105.1. Determination of costs and benefits - Determination of just and reasonable charge, credit or ratemaking structure. The governing authority shall: (1) determine, after appropriate notice and opportunity for public comment, whether costs that the electrical corporation or other customers will incur from a net metering program will exceed the benefits of the net metering program, or whether the benefits of the net metering program will exceed the costs; and (2) determine a just and reasonable charge, credit, or ratemaking structure, including new or existing tariffs, in light of the costs and benefits. Utah Code Ann. § 54-15-105.1(1) shall be referred to as “Subsection One,” and § 54-15-105.1(2) shall be referred to as “Subsection Two.” Public Service Commission of Utah November 9, 2016 Page 3 benefits of the Company’s net metering program.2 The Commission also decided that it would perform the examination in steps: first it would establish an appropriate analytical framework to implement the Net Metering Statute, then it would “examine the costs and benefits that result from applying the data to the approved analytical framework” and determine whether any proposed change in rate is just and reasonable. The analytical framework to be established to implement Subsection One was to “include the types of analyses that must be performed, the components of costs and benefits to be included in the analyses, and the sources and time period of data inputs.”3 The Commission indicated it would examine the costs and benefits that result from applying the approved analytical framework to the data, and ultimately make the Subsection Two determination, “in a further phase of this docket, a general rate case or other appropriate proceeding.”4 The Company has filed its Compliance Filing to provide the Commission with all of the information needed to complete the referenced Subsection One and Two determinations. In the meantime, the net metering program has experienced exponential growth since the Company’s initial request for a fixed net metering facilities charge in the 2014 GRC. For example, by the end of 2013, 2,200 customers were participating in the program. By the end of calendar year 2015, that number had climbed to approximately 6,700 customers, a growth rate of 200 percent in just two years. As of October 7, 2016, 7,000 more customers enrolled, with over 3,500 more expected to enroll by the end of this year, bringing the total number of net-metering customers to over 17,000 by the end of 2016, a 160 percent growth in just one year. Tariff Advice Letter Requests Consistent with the determinations the Company seeks in its Compliance Filing, in this tariff advice letter, the Company requests that Schedule 135, Net Metering Service, be closed to new customers after December 9, 2016, and that customers requesting residential net metering service after December 9, 2016 be served under proposed Schedule 135A until the Commission makes a final determination under the Net Metering Statute. Proposed Schedule 135A facilitates a transition to a future program that includes an updated rate design for residential customer generators. It leaves the same service, conditions and rates in place for new residential net metering applicants that are available under the existing tariff, but provides clear notice that transition tariff, Schedule 135A, is subject to change once the Commission has fulfilled its duties under the Net Metering Statute. As part of the Compliance Filing, the Company requests approval of proposed Schedules 5 and 136 for net metering service. Proposed Schedule 5 reflects the elements of the Company’s proposed rate structure. Not only will this change facilitate transition to a new rate structure, it will provide important data to help further refine rates and rate structures for net metering customers in the future. 2 Docket No. 14-035-114, Notices of Comment Period and Scheduling Conference, 2014 WL 6713287 at *1 (Utah P.S.C. November 21, 2014). 3 Id. 4 Id. at *2. Public Service Commission of Utah November 9, 2016 Page 4 The Company supports keeping the current net metering customers on the existing net metering program and their current rate schedule. We acknowledge that current customers made investments based on the current structure and respect the customers' need for reasonable certainty for recovery of their investments. The Company expects this issue to be considered in a future proceeding. However, current customers may voluntarily opt in to the new Schedule 5. In addition, current net metering customers generally do not have meters that are capable of billing the on-peak demand charge that is included in the proposed rate structure in the Compliance Filing. Transitioning these customers to the new schedule would be operationally and administratively challenging. The Commission has approved closing service to existing customers under similar circumstances. See, e.g., In the Matter of Bear Lake Comm’n, Inc., 2013 WL 4399208 (Utah P.S.C. August 8, 2013) (grandfathering emergency line service to existing customers); In re U.S. West Comm’n, 1999 WL 35639170 (Utah P.S.C. November 26, 1999) (grandfathering Centrex Plus service to existing customers); In Re U.S. West Paging, Inc., 93-2026-01, 1993 WL 501443 (July 2, 1993) (grandfathering mobile telephone service to existing customers). In addition to seeking approval of transition tariff, Schedule 135A, the Company is also seeking approval of minor, necessary modifications to the currently effective residential and commercial interconnection agreements which set forth the interconnection requirements for net metering customers. The modifications clarify that new customers will be subject to any changes made to net metering service, consistent with the Commission’s ruling in the Company’s concurrent Compliance Filing. The specific changes are reflected in a form redlined interconnection agreement, attached to this tariff filing as Exhibit A. Change to Schedule 135 Like current Schedule 135, Schedule 135A includes the terms and conditions under which the Company offers net metering service. All of the terms and conditions are the same as those in current Schedule 135, with the exception of the addition of the highlighted second sentence in the following section: AVAILABILITY: At any point on the Company’s interconnected system. Customers will be subject to all changes to net metering service including changes to credits, charges or rate structures offered herein and in related tariffs resulting from the final determination under Utah Code Ann. § 54-15-105.1 which may include, without limitation, a transfer from this tariff to all new applicable service schedules approved by the Commission. Rocky Mountain Power respectfully requests that all formal correspondence and requests for additional information regarding this filing be addressed to the following: By E-mail (preferred): [email protected] [email protected] Public Service Commission of Utah November 9, 2016 Page 5 By regular mail: Data Request Response Center PacifiCorp 825 NE Multnomah, Suite 2000 Portland, OR 97232 Informal inquiries may be directed to Bob Lively at (801) 220-4052. Sincerely, Jeffrey K. Larsen Vice President, Regulation cc: Division of Public Utilities Office of Consumer Services Enclosures Redlined and Clean Tariff Sheets Schedule 135 – Net Metering Service New Schedule 135A – Net Metering – Transition Service Fifth Revision of Sheet No. B.1 Canceling Fourth Revision of Sheet No. B.1 P.S.C.U. No. 50 ELECTRIC SERVICE SCHEDULES STATE OF UTAH Schedule No. 80 Summary of Effective Rate Adjustments 91 Surcharge To Fund Low Income Residential Lifeline Program 92 Low Income Residential Lifeline Program Surcharge Refund Credit 94 Energy Balancing Account (EBA) Pilot Program 98 REC Revenue Adjustment 105 Irrigation Load Control Program 107 Solar Incentive Program 110 New Homes Program 111 Home Energy Savings Incentive Program 114 Air Conditioner Direct Load Control Program (Cool Keeper Program) 118 Low Income Weatherization 135 Net Metering Service* 135A Net Metering – Transition Service 140 Non-Residential Energy Efficiency 193 Demand Side Management (DSM) Cost Adjustment 195 Solar Incentive Program Cost Adjustment 300 Regulation Charges Sheet No. 80 91 92 94.1- 94.10 98 105.1 - 105.2 107.1 - 107.6 110.1 - 110.3 111.1 - 111.7 114.1 - 114.5 118.1 - 118.6 135.1 - 135.5 135A.1 - 135A.5 140.1 - 140.25 193.1 - 193.2 195.1 - 195.2 300.1 - 300.4 Schedule Numbers not listed are not currently used. *These Schedules are not available to new customers or premises. Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-13 FILED: November 9, 2016 EFFECTIVE: December 10, 2016 First Revision of Sheet No. 135.1 Canceling Original Sheet No. 135.1 P.S.C.U. No. 50 ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 135 STATE OF UTAH ______________ Net Metering Service No New Service ______________ AVAILABILITY: At any point on the Company's interconnected system. customers will be served under this Schedule. No new APPLICATION: To customers that own or lease a customer-operated renewable generating facility or, as defined in Utah Code 54-2-1(16)(d), an eligible customer that purchases electricity from an independent energy producer operating a renewable generating facility, with a capacity of not more than twenty-five (25) kilowatts for a residential facility and two (2) megawatts for a nonresidential facility that is located on, or adjacent to, the customers’ premises, is interconnected and operates in parallel with the Company’s existing distribution facilities, is intended primarily to offset part or all of the customer’s own electrical requirements, is controlled by an inverter capable of enabling safe and efficient synchronous coupling with Rocky Mountain Power’s electrical system, and has executed an Interconnection Agreement for Net Metering Service with the Company. This schedule is offered in compliance with Utah Code Ann. § 54-15-101 to 106 and R746-312. DEFINITIONS: Net Metering means measuring the difference between the electricity supplied by the Company and the electricity generated by an eligible customer-generator and fed back to the electric grid over the applicable billing period. An Inverter means a device that converts direct current power into alternating current power that is compatible with power generated by the Company. Annualized Billing Period means the period commencing after the regularly scheduled meter reading for the month of March or in the case of new Schedule 135 service the date that the customer first takes service from Schedule 135 and ending on the regularly scheduled meter reading for the month of March. (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-13 FILED: November 9, 2016 EFFECTIVE: December 10, 2016 P.S.C.U. No. 50 Original Sheet No. 135A.1 ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 135A STATE OF UTAH ______________ Net Metering – Transition Service ______________ AVAILABILITY: At any point on the Company's interconnected system. Customers will be subject to all changes to net metering service including changes to credits, charges or rate structures offered herein and in related tariffs resulting from the final determination under Utah Code Ann. § 54-15-105.1 which may include, without limitation, a transfer from this tariff to all new applicable service schedules approved by the Commission. APPLICATION: On a first-come, first-served basis to any customer that owns or leases a customer-operated renewable generating facility or, as defined in Utah Code 54-2-1(16)(d), an eligible customer that purchases electricity from an independent energy producer operating a renewable generating facility, with a capacity of not more than twenty-five (25) kilowatts for a residential facility and two (2) megawatts for a non-residential facility that is located on, or adjacent to, the customers’ premises, is interconnected and operates in parallel with the Company’s existing distribution facilities, is intended primarily to offset part or all of the customer’s own electrical requirements, is controlled by an inverter capable of enabling safe and efficient synchronous coupling with Rocky Mountain Power’s electrical system, and has executed an Interconnection Agreement for Net Metering Service with the Company. This schedule is offered in compliance with Utah Code Ann. § 54-15-101 to 106 and R746-312. DEFINITIONS: Net Metering means measuring the difference between the electricity supplied by the Company and the electricity generated by an eligible customer-generator and fed back to the electric grid over the applicable billing period. An Inverter means a device that converts direct current power into alternating current power that is compatible with power generated by the Company. Annualized Billing Period means the period commencing after the regularly scheduled meter reading for the month of March or in the case of new Schedule 135A service the date that the customer first takes service from Schedule 135A and ending on the regularly scheduled meter reading for the month of March. (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-13 FILED: November 9, 2016 EFFECTIVE: December 10, 2016 P.S.C.U. No. 50 Original Sheet No. 135A.2 ELECTRIC SERVICE SCHEDULE NO. 135A - Continued DEFINITIONS (continued) Residential Customer means any customer that receives electric service under Electric Service Schedules 1, 2 or 3. Small Non-Residential Customer means any customer that receives electric service under Electric Service Schedules 15 or 23. Large Non-Residential Customer means any customer that receives electric service under Electric Service Schedules 6, 6A, 6B, 8 or 10. Renewable Generating Facility means a facility that uses energy derived from one of the following: a) solar photovoltaics; b) solar thermal energy; c) wind energy; d) hydrogen; e) organic waste; f) hydroelectric energy; g) waste gas and waste heat capture or recovery; h) biomass and biomass byproducts, except for the combustion of wood that has been treated with chemical preservatives such as creosote, pentachlorophenol, chromated copper arsenate, or municipal waste in a solid form; i) forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and to reduce wildfire risk; j) agricultural residues; k) dedicated energy crops; l) landfill gas or biogas produced from organic matter, wastewater, anaerobic disgesters, or municipal solid waste; or m) geothermal energy. MONTHLY BILL: The Electric Service Charge shall be computed in accordance with the Monthly Billing in the applicable standard service tariff. Regardless of whether the Customer provides excess net generation during the month, the Customer shall be billed the minimum monthly amount from the applicable standard service tariff. (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-13 FILED: November 9, 2016 EFFECTIVE: December 10, 2016 P.S.C.U. No. 50 Original Sheet No. 135A.3 ELECTRIC SERVICE SCHEDULE NO. 135A - Continued SPECIAL CONDITIONS: 1. If the energy supplied to the Company is less than the energy purchased from the Company, the prices specified in the Energy Charge section of the Monthly Billing of the applicable standard service tariff shall be applied to the positive balance owed to the Company. 2. If the energy supplied to the Company is greater than the energy supplied by the Company, the Customer shall be billed for the appropriate monthly charges and shall be credited for such Net Metering Energy as follows: A. Residential and Small Non-Residential Customer shall be credited for such net energy with a cumulative kilowatt-hour credit. The credit will be deducted from the customer’s kilowatthour usage on the customer’s next monthly bill thus offsetting the customer’s next monthly bill at the full retail rate of the customer’s rate schedule. B. A Large Non-Residential Customer, at the time of initial enrollment under this tariff , must elect a compensation method to receive cumulative credits for the upcoming Annualized Billing Period from one of the following options: (i) An Average Energy Price for the applicable calendar year according to the Volumetric Non-Levelized Prices shown in Schedule 37 as determined by the following formula: 0.38 x Winter On-Peak Energy Price + 0.19 x Summer OnPeak Energy Price + 0.29 x Winter Off-Peak Energy Price + 0.14 x Summer Off-Peak Energy Price; or (ii) A Seasonally Differentiated Energy Price for the applicable calendar year according to the Non-Levelized Prices shown in Schedule 37 as determined by the following formula: 0.57 x Summer On-Peak Energy Price + 0.43 x Summer Off-Peak Energy Price for the regularly scheduled meter readings from June through September and 0.57 x Winter On-Peak Energy Price + 0.43 x Winter Off-Peak Energy Price for the regularly scheduled meter readings from October through May; or (iii) An average retail rate for the Electric Service Schedule applicable to the net metering customer as calculated from the previous year’s Federal Energy Regulation Commission Form No. 1 to be determined and available by July 1, 2009, and by July 1st of every subsequent year. Current average retail rates are listed below: (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-13 FILED: November 9, 2016 EFFECTIVE: December 10, 2016 P.S.C.U. No. 50 Original Sheet No. 135A.4 ELECTRIC SERVICE SCHEDULE NO. 135A - Continued SPECIAL CONDITIONS (continued) Schedule 6: Schedule 6A: Schedule 6B: Schedule 8: Schedule 10: 8. 4498¢ per kWh 11.7871¢ per kWh 10.8914¢ per kWh 7.5210¢ per kWh 7.5619¢ per kWh A Large Non-Residential Customer may change the compensation method once per year at the beginning of each Annualized Billing Period. The Company must receive written change notification of any change within sixty (60) days of the beginning of the Annualized Billing Period. 3. All unused credits accumulated by the customer-generator, except Customers taking service under Electric Service Schedule No. 10, shall expire with the regularly scheduled meter reading for the month of March of each year. For Customers taking service under Electric Service Schedule No. 10, all unused credits accumulated by the customer-generator shall expire with the regularly scheduled meter reading for the month of October of each year. 4. Upon the customer-generator’s request and within thirty (30) days notice to the Company, the Company shall aggregate for billing purposes the meter to which the net metering facility is physically attached (“designated meter”) with one or more meters (“additional meter”) if the following conditions are met: (i) the additional meter is located on or adjacent to premises of the customer-generator; (ii) the additional meter is used to measure only electricity used for the customergenerator’s requirements; (iii) the designated meter and additional meter are subject to the same rate schedule; and (iv) the designated meter and the additional meter are served by the same primary feeder. At the time of notice to the Company, the customer-generator must identify the specific meters and designate a rank order for the additional meters to which net metering credits are to be applied. 5. The customer-generator shall provide at the customer’s expense all equipment necessary to meet applicable local and national standards regarding electrical and fire safety, power quality, and interconnection requirements established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories. (Continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-13 FILED: November 9, 2016 EFFECTIVE: December 10, 2016 P.S.C.U. No. 50 Original Sheet No. 135A.5 ELECTRIC SERVICE SCHEDULE NO. 135A - Continued 6. For customer-generators generation systems of 10 kilowatts or less that are inverter-based, a disconnect switch is not required. For all other generation systems, the customer-generator must install and maintain a manual disconnect switch that will disconnect the generating facility from the Company’s distribution system. The disconnect switch must be a lockable, load-break switch that plainly indicates whether it is in the open or closed position. Except as provided in R746-312-4(2) (a) (ii), the disconnect switch must be readily accessible to the Company at all times and located within ten (10) feet of the Company’s meter. 7. The Company shall not be liable directly or indirectly for permitting or continuing to allow an attachment of a net metering facility, or for the acts or omissions of the customer-generator that cause loss or injury, including death, to any third party. 8. The Company may test and inspect an interconnection at times that the electrical corporation considers necessary to ensure the safety of electrical workers and to preserve the integrity of the electric power grid. 9. Unless otherwise agreed to by a separate contract, the owner of the renewable energy facility retains ownership of the non-energy attributes associated with electricity the facility generates. ELECTRIC SERVICE REGULATIONS: Service under this Schedule will be in accordance with the terms of the Electric Service Agreement between the Customer and the Company. The Electric Service Regulations of the Company on file with and approved by the Public Service Commission of the State of Utah, including future applicable amendments, will be considered as forming a part of and incorporated in said Agreement. Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-13 FILED: November 9, 2016 EFFECTIVE: December 10, 2016 Fourth Fifth Revision of Sheet No. B.1 Canceling Third Fourth Revision of Sheet No. B.1 P.S.C.U. No. 50 ELECTRIC SERVICE SCHEDULES STATE OF UTAH Schedule No. 80 Summary of Effective Rate Adjustments 91 Surcharge To Fund Low Income Residential Lifeline Program 92 Low Income Residential Lifeline Program Surcharge Refund Credit 94 Energy Balancing Account (EBA) Pilot Program 98 REC Revenue Adjustment 105 Irrigation Load Control Program 107 Solar Incentive Program 110 New Homes Program 111 Home Energy Savings Incentive Program 114 Air Conditioner Direct Load Control Program (Cool Keeper Program) 118 Low Income Weatherization 135 Net Metering Service* 135A Net Metering – Transition Service 140 Non-Residential Energy Efficiency 193 Demand Side Management (DSM) Cost Adjustment 195 Solar Incentive Program Cost Adjustment 300 Regulation Charges Sheet No. 80 91 92 94.1- 94.10 98 105.1 - 105.2 107.1 - 107.6 110.1 - 110.3 111.1 - 111.7 114.1 - 114.5 118.1 - 118.6 135.1 - 135.5 135A.1 - 135A.5 140.1 - 140.25 193.1 - 193.2 195.1 - 195.2 300.1 - 300.4 Schedule Numbers not listed are not currently used. *These Schedules are not available to new customers or premises. Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-0213 FILED: February 5November 9, 2016 EFFECTIVE: March 6December 10, 2016 First Revision of Sheet No. 135.1 Canceling Original Sheet No. 135.1 P.S.C.U. No. 50 ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 135 STATE OF UTAH ______________ Net Metering Service No New Service ______________ AVAILABILITY: At any point on the Company's interconnected system. customers will be served under this Schedule. No new APPLICATION: On a first-come, first-served basis to anyTo customers that owns or leases a customer-operated renewable generating facility or, as defined in Utah Code 54-2-1(16)(d), an eligible customer that purchases electricity from an independent energy producer operating a renewable generating facility, with a capacity of not more than twenty-five (25) kilowatts for a residential facility and two (2) megawatts for a non-residential facility that is located on, or adjacent to, the customers’ premises, is interconnected and operates in parallel with the Company’s existing distribution facilities, is intended primarily to offset part or all of the customer’s own electrical requirements, is controlled by an inverter capable of enabling safe and efficient synchronous coupling with Rocky Mountain Power’s electrical system, and has executed an Interconnection Agreement for Net Metering Service with the Company. This schedule is offered in compliance with Utah Code Ann. § 54-15-101 to 106 and R746-312. DEFINITIONS: Net Metering means measuring the difference between the electricity supplied by the Company and the electricity generated by an eligible customer-generator and fed back to the electric grid over the applicable billing period. An Inverter means a device that converts direct current power into alternating current power that is compatible with power generated by the Company. Annualized Billing Period means the period commencing after the regularly scheduled meter reading for the month of March or in the case of new Schedule 135 service the date that the customer first takes service from Schedule 135 and ending on the regularly scheduled meter reading for the month of March. Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 13-035184Advice No. 16-13 FILED: September November 95, 20142016 EFFECTIVE: September December 1041, 20142016 P.S.C.U. No. 43 Original Sheet No. 135.2 ELECTRIC SERVICE SCHEDULE NO. 95 - Continued (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 13-035184Advice No. 16-13 FILED: September November 95, 20142016 EFFECTIVE: September December 1041, 20142016 P.S.C.U. No. 50 Original Sheet No. 135A.1 ROCKY MOUNTAIN POWER ELECTRIC SERVICE SCHEDULE NO. 135A STATE OF UTAH ______________ Net Metering – Transition Service ______________ AVAILABILITY: At any point on the Company's interconnected system. Customers will be subject to all changes to net metering service including changes to credits, charges or rate structures offered herein and in related tariffs resulting from the final determination under Utah Code Ann. § 54-15-105.1 which may include, without limitation, a transfer from this tariff to all new applicable service schedules approved by the Commission. APPLICATION: On a first-come, first-served basis to any customer that owns or leases a customer-operated renewable generating facility or, as defined in Utah Code 54-2-1(16)(d), an eligible customer that purchases electricity from an independent energy producer operating a renewable generating facility, with a capacity of not more than twenty-five (25) kilowatts for a residential facility and two (2) megawatts for a non-residential facility that is located on, or adjacent to, the customers’ premises, is interconnected and operates in parallel with the Company’s existing distribution facilities, is intended primarily to offset part or all of the customer’s own electrical requirements, is controlled by an inverter capable of enabling safe and efficient synchronous coupling with Rocky Mountain Power’s electrical system, and has executed an Interconnection Agreement for Net Metering Service with the Company. This schedule is offered in compliance with Utah Code Ann. § 54-15-101 to 106 and R746-312. DEFINITIONS: Net Metering means measuring the difference between the electricity supplied by the Company and the electricity generated by an eligible customer-generator and fed back to the electric grid over the applicable billing period. An Inverter means a device that converts direct current power into alternating current power that is compatible with power generated by the Company. Annualized Billing Period means the period commencing after the regularly scheduled meter reading for the month of March or in the case of new Schedule 135A service the date that the customer first takes service from Schedule 135A and ending on the regularly scheduled meter reading for the month of March. Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 13-035184Advice No. 16-13 FILED: September 5November 9, 20142016 EFFECTIVE: September 1December 410, 20142016 P.S.C.U. No. 43 Original Sheet No. 135.2 ELECTRIC SERVICE SCHEDULE NO. 95 - Continued (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 13-035184Advice No. 16-13 FILED: September 5November 9, 20142016 EFFECTIVE: September 1December 410, 20142016 P.S.C.U. No. 50 Original Sheet No. 135A.2 ELECTRIC SERVICE SCHEDULE NO. 135A - Continued DEFINITIONS (continued) Residential Customer means any customer that receives electric service under Electric Service Schedules 1, 2 or 3. Small Non-Residential Customer means any customer that receives electric service under Electric Service Schedules 15 or 23. Large Non-Residential Customer means any customer that receives electric service under Electric Service Schedules 6, 6A, 6B, 8 or 10. Renewable Generating Facility means a facility that uses energy derived from one of the following: a) solar photovoltaics; b) solar thermal energy; c) wind energy; d) hydrogen; e) organic waste; f) hydroelectric energy; g) waste gas and waste heat capture or recovery; h) biomass and biomass byproducts, except for the combustion of wood that has been treated with chemical preservatives such as creosote, pentachlorophenol, chromated copper arsenate, or municipal waste in a solid form; i) forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and to reduce wildfire risk; j) agricultural residues; k) dedicated energy crops; l) landfill gas or biogas produced from organic matter, wastewater, anaerobic disgesters, or municipal solid waste; or m) geothermal energy. MONTHLY BILL: The Electric Service Charge shall be computed in accordance with the Monthly Billing in the applicable standard service tariff. Regardless of whether the Customer provides excess net generation during the month, the Customer shall be billed the minimum monthly amount from the applicable standard service tariff. Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 13-035184Advice No. 16-13 FILED: September 5November 9, 20142016 1December 410, 20142016 EFFECTIVE: September P.S.C.U. No. 50 Original Sheet No. 135A.2 ELECTRIC SERVICE SCHEDULE NO. 135A - Continued (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 13-035184Advice No. 16-13 FILED: September 5November 9, 20142016 1December 410, 20142016 EFFECTIVE: September P.S.C.U. No. 50 Original Sheet No. 135A.3 ELECTRIC SERVICE SCHEDULE NO. 135A - Continued SPECIAL CONDITIONS: 1. If the energy supplied to the Company is less than the energy purchased from the Company, the prices specified in the Energy Charge section of the Monthly Billing of the applicable standard service tariff shall be applied to the positive balance owed to the Company. 2. If the energy supplied to the Company is greater than the energy supplied by the Company, the Customer shall be billed for the appropriate monthly charges and shall be credited for such Net Metering Energy as follows: A. Residential and Small Non-Residential Customer shall be credited for such net energy with a cumulative kilowatt-hour credit. The credit will be deducted from the customer’s kilowatthour usage on the customer’s next monthly bill thus offsetting the customer’s next monthly bill at the full retail rate of the customer’s rate schedule. B. A Large Non-Residential Customer, at the time of initial enrollment under this tariff , must elect a compensation method to receive cumulative credits for the upcoming Annualized Billing Period from one of the following options: (i) An Average Energy Price for the applicable calendar year according to the Volumetric Non-Levelized Prices shown in Schedule 37 as determined by the following formula: 0.38 x Winter On-Peak Energy Price + 0.19 x Summer OnPeak Energy Price + 0.29 x Winter Off-Peak Energy Price + 0.14 x Summer Off-Peak Energy Price; or (ii) A Seasonally Differentiated Energy Price for the applicable calendar year according to the Non-Levelized Prices shown in Schedule 37 as determined by the following formula: 0.57 x Summer On-Peak Energy Price + 0.43 x Summer Off-Peak Energy Price for the regularly scheduled meter readings from June through September and 0.57 x Winter On-Peak Energy Price + 0.43 x Winter Off-Peak Energy Price for the regularly scheduled meter readings from October through May; or (iii) An average retail rate for the Electric Service Schedule applicable to the net metering customer as calculated from the previous year’s Federal Energy Regulation Commission Form No. 1 to be determined and available by July 1, 2009, and by July 1st of every subsequent year. Current average retail rates are listed below: Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 13-035184Advice No. 16-13 FILED: September 5November 9, 20142016 EFFECTIVE: September 1December 410, 20142016 P.S.C.U. No. 50 Original Sheet No. 135A.3 ELECTRIC SERVICE SCHEDULE NO. 135A - Continued (continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 13-035184Advice No. 16-13 FILED: September 5November 9, 20142016 EFFECTIVE: September 1December 410, 20142016 Second Revision of Sheet No. 135.4 OriginalCanceling First Revision of Sheet No. 135A.4 P.S.C.U. No. 50 ELECTRIC SERVICE SCHEDULE NO. 135A - Continued SPECIAL CONDITIONS (continued) Schedule 6: Schedule 6A: Schedule 6B: Schedule 8: Schedule 10: 8. 4498¢ per kWh 11.7871¢ per kWh 10.8914¢ per kWh 7.5210¢ per kWh 7.5619¢ per kWh A Large Non-Residential Customer may change the compensation method once per year at the beginning of each Annualized Billing Period. The Company must receive written change notification of any change within sixty (60) days of the beginning of the Annualized Billing Period. 3. All unused credits accumulated by the customer-generator, except Customers taking service under Electric Service Schedule No. 10, shall expire with the regularly scheduled meter reading for the month of March of each year. For Customers taking service under Electric Service Schedule No. 10, all unused credits accumulated by the customer-generator shall expire with the regularly scheduled meter reading for the month of October of each year. 4. Upon the customer-generator’s request and within thirty (30) days notice to the Company, the Company shall aggregate for billing purposes the meter to which the net metering facility is physically attached (“designated meter”) with one or more meters (“additional meter”) if the following conditions are met: (i) the additional meter is located on or adjacent to premises of the customer-generator; (ii) the additional meter is used to measure only electricity used for the customergenerator’s requirements; (iii) the designated meter and additional meter are subject to the same rate schedule; and (iv) the designated meter and the additional meter are served by the same primary feeder. At the time of notice to the Company, the customer-generator must identify the specific meters and designate a rank order for the additional meters to which net metering credits are to be applied. 5. The customer-generator shall provide at the customer’s expense all equipment necessary to meet applicable local and national standards regarding electrical and fire safety, power quality, and interconnection requirements established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories. Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-0613 FILED: May 27November 9, 2016 2016 EFFECTIVE: July 1December 410, Second Revision of Sheet No. 135.4 OriginalCanceling First Revision of Sheet No. 135A.4 P.S.C.U. No. 50 ELECTRIC SERVICE SCHEDULE NO. 135A - Continued (Continued) Issued by authority of Report and Order of the Public Service Commission of Utah in Advice No. 16-0613 FILED: May 27November 9, 2016 2016 EFFECTIVE: July 1December 410, P.S.C.U. No. 50 Original Sheet No. 135A.5 ELECTRIC SERVICE SCHEDULE NO. 135A - Continued 6. For customer-generators generation systems of 10 kilowatts or less that are inverter-based, a a disconnect switch is not required. For all other generation systems, the customer-generator must install and maintain a manual disconnect switch that will disconnect the generating facility from the Company’s distribution system. The disconnect switch must be a lockable, load-break switch that plainly indicates whether it is in the open or closed position. Except as provided in R746-312-4(2) (a) (ii), the disconnect switch must be readily accessible to the Company at all times and located within ten (10) feet of the Company’s meter. 7. The Company shall not be liable directly or indirectly for permitting or continuing to allow an attachment of a net metering facility, or for the acts or omissions of the customer-generator that cause loss or injury, including death, to any third party. 8. The Company may test and inspect an interconnection at times that the electrical corporation considers necessary to ensure the safety of electrical workers and to preserve the integrity of the electric power grid. 9. Unless otherwise agreed to by a separate contract, the owner of the renewable energy facility retains ownership of the non-energy attributes associated with electricity the facility generates. ELECTRIC SERVICE REGULATIONS: Service under this Schedule will be in accordance with the terms of the Electric Service Agreement between the Customer and the Company. The Electric Service Regulations of the Company on file with and approved by the Public Service Commission of the State of Utah, including future applicable amendments, will be considered as forming a part of and incorporated in said Agreement. Issued by authority of Report and Order of the Public Service Commission of Utah in Docket No. 13-035184Advice No. 16-13 FILED: September 5November 9, 20142016 1December 410, 20142016 EFFECTIVE: September EXHIBIT A Redlined Rocky Mountain Power Interconnection and Net Metering Agreements Utah Forms Ver. 4 - Level 1, Level 2, and Level 3 We appreciate your interest in Rocky Mountain Power’s net metering program. Before purchasing any net metering equipment, we recommend you review the requirements for interconnecting a net metering system to Rocky Mountain Power’s electrical distribution system. The requirements are found in the Interconnection Agreement. To complete the process for a net metering interconnection, please follow the steps below: 1. Complete and submit the following to Rocky Mountain Power: Interconnection Agreement including the Application for Net Metering Interconnection The inverter specification sheet For systems larger than 10 kW, a simple one-line diagram showing • The location of Rocky Mountain Power’s meter • The location of the disconnect switch 2. Rocky Mountain Power will review your agreement and application and send you a written notification of approval either by mail or e-mail 3. Install the net metering system after you receive the written approval of your Interconnection Agreement and Application for Net Metering from Rocky Mountain Power 4. Obtain an inspection of your net metering system by the local city or county electrical inspector 5. Submit the electrical inspector’s approval to Rocky Mountain Power 6. Turn on your net metering system after Rocky Mountain Power provides you written notification the interconnection work has been completed and the net meter installed Return completed documents to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, Utah 84125-0308 Or Email to: [email protected] Thank you for your interest in the net metering program. If you have questions, please call us toll free at 1-888-221-7070 and ask for a net metering specialist. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 1 of 21 Service ID#:___________ Request #: ___________ INTERCONNECTION AND NET METERING SERVICE AGREEMENT FOR NET METERING FACILITY LEVEL 1 INTERCONNECTION 25 KW NAMEPLATE CAPACITY OR SMALLER This Interconnection and Net Metering Service Agreement (“Agreement”) is made and entered into this ___ day of _____________, 20___ by and between ____________________________, an electric customer (“Customer”), and PacifiCorp, dba Rocky Mountain Power (“Rocky Mountain Power”), a Corporation organized and existing under the laws of the State of Oregon. Customer and Rocky Mountain Power each may be referred to as a “Party”, or collectively as the “Parties”. Recitals: Whereas, Customer has installed or intends to install a Net Metering Facility qualifying for “Net Metering,” Utah Rate Schedule No. 135A (“Schedule 135A”), as given in Rocky Mountain Power’s currently effective tariff as filed with the Public Service Commission of Utah (“Commission”), on or adjacent to Customer’s premises located at ____________________________, Utah, for the purpose of generating electric energy; Whereas, the Net Metering rate schedule may be amended from time to time, and the Public Service Commission may alter the charge, credit, and ratemaking structure applicable to Net Metering customers pursuant to Utah Code § 54-15-105.1; Whereas, Customer represents to Rocky Mountain Power that Customer either owns or leases its Net Metering Facility qualifying for Schedule 135A, or meets the exemption requirements set forth in Utah Code § 54-2-1.16(d) because it is a county, municipality, city, town, other political subdivision, local district, special service district, state institution of higher education, school district, charter school, or any entity within the state system of public education; or an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3) operated for religious, charitable, or educational purposes that is exempt from federal income tax and able to demonstrate its tax-exempt status; Whereas, Customer desires to interconnect the Net Metering Facility with Rocky Mountain Power’s distribution system consistent with the Application completed by on _____________ ____, 20___,Customer as described in Appendix A (“Application”) of this Agreement; and Whereas, Customer, using its Net Metering Facility, intends to offset part or all of its electrical requirements supplied by Rocky Mountain Power. Now, therefore, in consideration of and subject to the mutual covenants contained herein, the Parties agree as follows: Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 2 of 21 Article 1. Scope and Limitations of Agreement 1.1 Scope The Agreement shall be used for all approved Level 1 Applications according to the procedures set forth in Utah Rule 746-312 (“Rule”), as may be amended from time to time. The Rule can be viewed at www.psc.utah.gov. The Agreement establishes standard terms and conditions approved by the Commission under which a Level 1 Net Metering Facility as described in Appendix A with an electric nameplate capacity of 25 kW or smaller will interconnect to, and operate in parallel with, Rocky Mountain Power’s system. 1.2 Definitions Terms with initial capitalization, when used in this Agreement, shall have the meanings indicated or as specified in the Rule Section R746-312-2 and, to the extent this Agreement conflicts with the Rule, the Rule shall take precedence. 1.3 Other Agreements Nothing in this Agreement is intended to affect any other agreement between Rocky Mountain Power and Customer or any other Interconnection Customer. However, in the event that the provisions of the Agreement are in conflict with the provisions of any Rocky Mountain Power Tariff, the Rocky Mountain Power Tariff shall control. 1.4 Responsibilities of the Parties 1.4.1 The Parties shall perform all obligations of the Agreement in accordance with all applicable laws and regulations. 1.4.2 Customer will construct, operate, test, and maintain its Net Metering Facility in accordance with the Agreement, IEEE standards (available at the following link: http://standards.ieee.org/index.html), National Electric Code Standards (available for purchase at http://standards.ieee.org/faqs/NESCFAQ.html#q8), Utah state building codes (available at the following link: http://www.dopl.utah.gov/programs/ubc/), the Rule, and other applicable standards required by the Commission, as may be amended from time to time. 1.4.3 Each Party shall be responsible for the safe installation, maintenance, repair and condition of their respective lines and equipment on their respective sides of the Point of Common Coupling. Each Party shall provide interconnection facilities that adequately protect the other Party’s facilities, personnel and other persons from damage and injury. The allocation of responsibility for the design, installation, operation and maintenance of interconnection facilities is prescribed in the Rule, including but not necessarily limited to R746-312-4. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 3 of 21 1.4.4 1.5 Customer is responsible for protecting the generating equipment, inverters, protective devices, and other system components from damage from the normal and abnormal conditions and operations that occur on Rocky Mountain Power’s system in delivering and restoring power; and is responsible for ensuring that the Net Metering Facility equipment is inspected, maintained, and tested in accordance with the manufacturer’s instructions to ensure that it is operating correctly and safely. Parallel Operation and Maintenance Obligations Once the Net Metering Facility has been authorized to commence parallel operation by an approved application and execution of this Agreement, Customer will abide by all written provisions for operations and maintenance as required by the Rule and Rocky Mountain Power’s tariffs, including but not necessarily limited to R746-312-4 and Schedule 135A or its successor tariff(s). 1.6 Metering Rocky Mountain Power shall install, own and maintain, at its sole expense, a kilowatthour meter(s) and associated equipment to measure the flow of energy in each direction, unless otherwise authorized by the Commission. Customer hereby consents to the installation of and operation by Rocky Mountain Power, at Rocky Mountain Power’s expense, one or more additional meters to monitor the flow of electricity in each direction. Such meter(s) shall be located on the premises of Customer. 1.7 1.8 Net Metering Facility Requirements, Installation, Operation 1.7.1 Customer’s Net Metering Facility must meet the requirements set forth in, including but not necessarily limited to, the Rule, R746-312-4 and Schedule 135A or its successor tariff(s). This also applies to installation and operation of the Net Metering Facility. 1.7.2 Customer is responsible for all costs associated with its Net Metering Facility. Anticipated Start Date Customer must include an anticipated start date for operation of its Net Metering Facility in the Application. After receiving notice that the Application has been approved, Customer must execute and return this Agreement with a copy of the approved electric inspection to Rocky Mountain Power. Upon satisfactory completion of all reviews and inspections of the Net Metering Facility, Customer must notify Rocky Mountain Power at least ten (10) business days prior to starting operation of the Net Metering Facility, either through submission of an executed Agreement or through separate written notice. Customer shall not commence parallel operation of the Net Metering Facility until Rocky Mountain Power executes this Agreement, installs the net meter and notifies Customer that the Net Metering Facility is interconnected. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 4 of 21 1.9 Net Metering Facility Inspection 1.9.1 Building Code Inspection Prior to operation in parallel with Rocky Mountain Power’s system, the Net Metering Facility must be inspected by a local building code official to ensure compliance with applicable local codes. 1.9.2 Inspection by Rocky Mountain Power Rocky Mountain Power may inspect the Net Metering Facility and its component equipment, and the documents necessary to ensure compliance with the Rule. Customer shall notify Rocky Mountain Power prior to placing the Net Metering Facility in service, and Rocky Mountain Power shall have the right to have personnel present on the in-service date. If the Net Metering Facility is subsequently modified in order to increase its gross power rating, Customer must notify Rocky Mountain Power by submitting a new application specifying the modifications in accordance with the level of review required for that application. 1.10 Power Quality Customer will design its Net Metering Facility to maintain a composite power delivery at continuous rated power output at the Point of Common Coupling that meets the requirements set forth in IEEE 1547, in accordance with the Rule, R746-312-4. 1.11 Net Metering Facility Testing and Maintenance Customer shall conduct maintenance and testing on its Net Metering Facilities as set forth in the Rule, including but not necessarily limited to R746-312-14. 1.11.1 Customer shall conduct any manufacturer-recommended testing or maintenance at its expense. 1.11.2 Customer shall conduct any post-installation testing, at its expense, necessary to ensure compliance with IEEE standards as set forth in the Rule or to ensure safety. This includes replacing a major equipment component that is different from the originally installed model. 1.11.3 When Customer performs maintenance or testing in accordance with the Rule, it must retain written records documenting the maintenance and results of the testing for three (3) years. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 5 of 21 1.12 1.11.4 Rocky Mountain Power shall have the right to inspect Customer’s facility after interconnection approval is granted, at reasonable hours and with reasonable prior notice to Customer. If Rocky Mountain Power discovers that the Net Metering Facility is not in compliance with the Rule, Rocky Mountain Power may require Customer to disconnect the Net Metering Facility until compliance is achieved. Removal of Facility Customer shall immediately notify Rocky Mountain Power if Customer removes or ceases to operate the Net Metering Facility. Article 2. 2.1 Review, Inspection, Testing, Disconnect Switch and Signage, and Right of Access Review After determining Customer’s interconnection request is complete, in accordance with the Rule, R746-312-8, Rocky Mountain Power will conduct a review of the proposed interconnection using screens set forth in the Rule, R746-312-7. Rocky Mountain Power will conduct such review within fifteen (15) days after notifying Customer that the interconnection request is complete and will notify Customer either that the Net Metering Facility meets all applicable criteria and the interconnection request is approved, or the Net Metering Facility has failed to meet one or more of the applicable criteria, the reason for failure, and the interconnection request is denied under Level 1 review. If the interconnection request is denied, Customer may resubmit the application under the Level 2 or Level 3 review process. 2.2 Equipment Testing and Inspection Customer must notify Rocky Mountain Power of the anticipated testing and inspection date of the Net Metering Facility at least ten (10) business days prior to testing, either through submittal of the Agreement, a notice of completion, or in a separate notice. Within ten (10) business days after receipt of such required documentation, Rocky Mountain Power will inspect the Net Metering Facility, set the new meter if required, approve the interconnection and may arrange a witness test as set forth in the Rule, R746-312-8(4). Rocky Mountain Power and Customer will select a date by mutual agreement for the witness test. Rocky Mountain Power will test and inspect the Net Metering Facility and Interconnection Facilities prior to interconnection in accordance with IEEE Standards as provided for in the Rule, R746-312-4. Customer shall not begin operation of its Net Metering Facility until after inspection and testing is completed. If a witness test is conducted and is not satisfactory, Customer must resolve any deficiencies within thirty (30) business days or other time period as mutually agreed by the Parties. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 6 of 21 2.3 Disconnect Switch and Signage Customer shall comply with the Rule regarding disconnect switches, R746-312-4. The disconnect switch may be located more than 10 feet from the public utility meter if permanent instructions in letters of appropriate size are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve in writing the location of the disconnect switch prior to the installation of the Net Metering Facility. 2.4 Right of Access As provided in the Rule, R746-312-4, Rocky Mountain Power shall have access to any required disconnect switch at the Net Metering Facility at all times. Rocky Mountain Power will provide reasonable notice to Customer when possible prior to using the right of access. Additionally, as provided in Rocky Mountain Power Utah Rule 6, or its successor tariff, Rocky Mountain Power shall have access to the metering equipment. Article 3. 3.1 Effective Date, Term, Termination and Disconnection Effective Date The Agreement shall become effective upon execution by the Parties. 3.2 Term of Agreement The Agreement will become effective on the Effective Date and will remain in effect unless terminated in accordance with provisions of this Agreement, or Order by the Commission. 3.3 Termination No termination will become effective until the Parties have complied with all applicable laws and clauses of this Agreement applicable to such termination. 3.3.1 Customer may terminate this Agreement at any time by giving Rocky Mountain Power twenty (20) business days written notice. 3.3.2 Either Party may terminate this Agreement after default pursuant to Article 6.4 of this Agreement. 3.3.3 The Commission may Order termination of this Agreement. 3.3.4 Upon termination of this Agreement, Customer shall disconnect the Net Metering Facility from Rocky Mountain Power’s system. The termination of this Agreement will not relieve either Party of its liabilities and obligations, owed or continuing at the time of termination. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 7 of 21 3.4 3.3.5 If Customer removes the Net Metering equipment at the Net Metering Facility or ceases to operate its Net Metering Facility at the premises listed in Recital 1 above, this Agreement will be immediately terminated. 3.3.6 The provisions of this Article shall survive termination or expiration of this Agreement. Temporary Disconnection 3.4.1 Rocky Mountain Power may temporarily disconnect the Net Metering Facility from Rocky Mountain Power’s system for so long as reasonably necessary in the event one or more of the following conditions or events occurs: 3.4.1.1 Emergencies or to address maintenance requirements for Rocky Mountain Power’s system. 3.4.1.2 Hazardous conditions existing on Rocky Mountain Power’s system which may affect the safety of the general public or Rocky Mountain Power employees due to the operation of the Net Metering Facility or protective equipment as determined by Rocky Mountain Power. 3.4.1.3 Adverse electrical effects on the electrical equipment of Rocky Mountain Power’s other electric customers caused by the Net Metering Facility as determined by Rocky Mountain Power. 3.4.2 In the event that no disconnect switch is installed, Rocky Mountain Power may physically disconnect all service to the Customer and/or all service to the premises where the Net Metering Facility is located. 3.4.3 To the extent practicable, Rocky Mountain Power will give prior notice of any temporary disconnection of the Net Metering Facility. If Rocky Mountain Power is unable to give prior notice, Rocky Mountain Power will provide notice including an explanation of the condition necessitating the disconnection at the time of disconnection 3.4.4 Under emergency conditions, Rocky Mountain Power or Customer may immediately suspend interconnection service and temporarily disconnect the Net Metering Facility. Rocky Mountain Power shall notify Customer promptly when Rocky Mountain Power becomes aware of an emergency condition that may reasonably be expected to affect the Net Metering Facility operation. Customer shall notify Rocky Mountain Power promptly when Customer becomes aware of an emergency condition that may reasonably be expected to affect Rocky Mountain Power’s system. To the extent the information is known, the notification shall describe the emergency condition, the extent of any damage or Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 8 of 21 deficiency, the expected effect on the operation of both Parties’ facilities and operations, the anticipated duration, and the necessary corrective action. 3.4.5 Customer shall make reasonable efforts to provide notice of interruption of Net Metering Facility operation for safety and/or reliability reasons prior to the interruption unless an emergency occurs. Emergency interruptions or temporary terminations are subject to Section 3.4.4 above. 3.4.6 Rocky Mountain Power shall use reasonable efforts to provide Customer with prior notice of forced outages to effect immediate repairs to Rocky Mountain Power’s system. If prior notice is not given, Rocky Mountain Power, shall, upon request, provide Customer written documentation after the fact explaining the circumstances of the disconnection. 3.4.7 Customer must provide Rocky Mountain Power notice and obtain Rocky Mountain Power’s written approval before Customer may modify its Net Metering Facility in order to increase the electric output of the Net Metering Facility. If Customer makes any material change without prior written authorization of Rocky Mountain Power, Rocky Mountain Power will have the right to temporarily disconnect the Net Metering Facility until Rocky Mountain Power has had an opportunity to review the change(s) made to determine whether they are acceptable. If system modifications or other equipment installations are deemed necessary by Rocky Mountain Power to accommodate the modified Net Metering Facility, Customer shall submit the appropriate net metering application at that time. 3.4.8 The Parties shall cooperate with each other to restore the Net Metering Facility, interconnection facilities, and Rocky Mountain Power’s system to their normal operating state as soon as reasonably practicable following any disconnection pursuant to Section 3.4. Article 4. Cost Responsibility Customer shall bear the cost of any facilities, equipment, modifications and upgrades as required by the Rule. Customer shall also be responsible for all reasonable expenses, including overheads, associated with owning, operating, maintaining, repairing, and replacing its Net Metering Facility. Article 5. 5.1 Billing Monthly Billing The electric service charge shall be computed in accordance with the monthly billing in the applicable standard currently applicable service tariff applicable to Net Metering customers. Customer will be compensated for net excess energy in accordance with Schedule 135A or its successor tariff(s). Customer will be transitioned to any successor Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 9 of 21 tariff immediately upon approval of that tariff by the Public Service Commission and will be subject to any charge, credit, or ratemaking structure implemented therein. 5.2 Special Conditions Customer must comply with the special conditions found in Schedule 135A or its successor tariff(s). 5.3 Aggregating Meters Aggregating Meters is allowed if certain conditions are met under the Rule, R746-3125. Customer designates the following meters for aggregation: _______________________. In the event that the Net Metering Facility supplies more electricity to Rocky Mountain Power than the Customer uses from Rocky Mountain Power, Rocky Mountain Power will apply any credits to the next monthly bill in accordance with Utah Code § 54-15-104 and the Rule, R746-312-15. Customer shall designate the order in which to apply any credits in accordance with the Rule. <<If customer does not want to aggregate, insert “N\A” in the space above.>> Article 6. 6.1 Assignment, Liability, Indemnity, Consequential Damages and Default Assignment This Agreement may be assigned by either Party with the consent of the other Party. A Party’s consent to an assignment may not be unreasonably withheld. The assigning Party must give the non-assigning Party written notice of the assignment at least fifteen days (15) before the effective date of the assignment. The non-assigning Party must submit its objection to the assignment, if any, to the assigning Party in writing at least 5 business days before the effective date of the assignment. If a written objection is not received within that time period, the non-assigning party is deemed to consent to the assignment. 6.1.1 Exceptions to Consent Requirement 6.1.1.1 Either Party may assign the Agreement without the consent of the other Party to any affiliate (including a merger or acquisition of the Party with another entity) of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.1.2 Customer is entitled to assign the Agreement without the consent of Rocky Mountain Power for collateral security purposes to aid in obtaining financing for the Net Metering Facility. 6.1.1.3 For small generator systems that are integrated into a building facility, the sale of the building or property will result in the automatic Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 10 of 21 assignment of this Agreement to the new owner who will be responsible for complying with the terms and conditions of this Agreement. 6.1.2 6.2 Any attempted assignment that violates this Article is void and ineffective. Assignment does not change or eliminate a Party’s obligations under this Agreement. An assignee is responsible for meeting the same obligations as the assigning Party. Limitation of Liability and Consequential Damages Each Party’s liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in its performance of this Agreement, is limited to the amount of direct damage actually incurred. Neither Party is liable to the other Party for any indirect, special, consequential, or punitive damages. 6.3 Indemnification Customer shall hold harmless and indemnify Rocky Mountain Power for all loss to third parties resulting from the operation of the Net Metering Facility, except when the loss occurs due to the negligent actions of Rocky Mountain Power. Rocky Mountain Power shall hold harmless and indemnify Customer for all loss to third parties resulting from the operation of Rocky Mountain Power’s system, except where the loss occurs due to the negligent actions of Customer. 6.4 Force Majeure 6.4.1 As used in this Agreement, a Force Majeure Event shall mean “any act of God, labor disturbance, act of the public enemy, war, acts of terrorism, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment through no direct, indirect, or contributory act of a Party, any order, regulation, or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party’s control. A Force Majeure Event does not include an act of negligence or wrongdoing.” 6.4.2 If a Force Majeure Event prevents a Party from fulfilling any obligations under this Agreement, the Party affected by the Force Majeure Event (“Affected Party”) shall promptly notify the other Party of the existence of the Force Majeure Event. The notification must specify in reasonable detail the circumstances of the Force Majeure Event, its expected duration, and the steps that the Affected Party is taking to mitigate the effects of the event on its performance, and if the initial notification was verbal, it should be promptly followed up with a written notification. The Affected Party shall keep the other Party informed on a continuing basis of developments relating to the Force Majeure Event until the event ends. The Affected Party will be entitled to Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 11 of 21 suspend or modify its performance of obligations under this Agreement (other than the obligation to make payments) only to the extent that the effect of the Force Majeure Event cannot be reasonably mitigated. The Affected Party will use reasonable efforts to resume its performance as soon as possible. The Parties shall immediately report to the Commission should a Force Majeure Event prevent performance of an action required by Rule that the Rule does not permit the Parties to mutually waive. 6.5 Default 6.5.1 A Party is in default if the Party fails to perform an obligation required under this Agreement (other than the payment of money). A Party is not considered in default of this agreement if the failure to perform an obligation is caused by an act or omission of the other Party. 6.5.2 Upon a default, the non-defaulting Party must give written notice of the default to the defaulting party. The defaulting party has sixty (60) calendar days from the receipt of the written default notice to cure the default. If the default is not capable of cure within the 60-day period, the defaulting Party must begin to cure the default within twenty (20) calendar days after receipt of the written default notice, and must continuously and diligently complete the cure within six (6) months of the receipt of the notice. 6.5.3 If a default is not cured as provided in 6.5.2, then the non-defaulting Party is entitled to terminate the Agreement by written notice at any time until cure occurs. If the non-defaulting Party chooses to terminate this Agreement, the termination provisions in Article 3.3 apply. Alternately, the non-defaulting Party is entitled to seek dispute resolution with the Commission in lieu of termination. Article 7. Insurance Additional liability insurance is not required as a part of the Agreement if the Net Metering Facility is in compliance with the provisions of the Application approval, the Agreement and the standards contained in Utah Code § 54-15-106. Article 8. Dispute Resolution Nothing in this Article shall restrict the rights of any Party to file a Complaint with the Commission under relevant provisions of the Rule, R746-312-3(5) and applicable state law. Article 9. 9.1 Miscellaneous Governing Law, Regulatory Authority, and Rules Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 12 of 21 The validity, interpretation, and enforcement of this Agreement is governed by the laws of the State of Utah. If any provision of this Agreement conflicts with any applicable provision, as may be amended from time to time, of the Utah Code (“Code”), Utah Administrative Rules (“Rules”), or Rocky Mountain Power’s Tariffs (“Tariff”), then the applicable provision of the Code, Rules, or Tariff controls. Rocky Mountain Power must provide copies of the applicable provisions of the Code, Rules, and Tariff upon the Customer’s request. 9.2 Amendment Additions, deletions or changes to the standard terms and conditions of this Agreement will not be permitted unless they are mutually agreed to by the Parties and permitted by the Rule or permitted by the Commission for good cause shown. The Parties may amend the Agreement by a written instrument duly executed by both Parties in accordance with the provisions of the Rule, applicable Commission Orders and provisions of the laws of the State of Utah. 9.3 No Third Party Beneficiaries The Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, or where permitted, their successors in interest and their assigns. 9.4 9.5 Waiver 9.4.1 The failure of a Party to the Agreement to insist, on any occasion, upon strict performance of any provision of the Agreement, will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party. 9.4.2 The Parties may also agree to mutually waive a Section of this Agreement without the Commission’s approval where the Rule so provides. 9.4.3 Any waiver at any time by either Party of its rights with respect to the Agreement shall not be deemed a continuing waiver or a waiver with respect to any other failure to comply with any other obligation, right, duty of the Agreement. Termination or default of this Agreement for any reason by Customer shall not constitute a waiver of the Customer’s legal rights to obtain interconnection from Rocky Mountain Power. Any request for waiver of the Agreement or any provisions thereof shall be provided in writing. Entire Agreement Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 13 of 21 The Agreement, including any supplementary attachments that may be necessary, constitutes the entire Agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of the Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party’s compliance with its obligations under the Agreement. 9.6 Multiple Counterparts This Agreement may be executed in one or more counterparts, whether electronically or otherwise, each of which is deemed an original but all constitute one and the same instrument. 9.7 No Partnership The Agreement will not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party. 9.8 Severability If any provision or portion of the Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (1) such portion or provision shall be deemed separate and independent, (2) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (3) the remainder of the Agreement shall remain in full force and effect. 9.9 Subcontractors Nothing in the Agreement shall prevent a Party from using the services of any subcontractor, or designating a third party agent as the one responsible for a specific obligation or act required in the Agreement (collectively subcontractors), as it deems appropriate to perform its obligations under the Agreement; provided, however, that each Party will require its subcontractors to comply with all applicable terms and conditions of the Agreement in providing such services and each Party will remain primarily liable to the other Party for the performance of the subcontractor. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 14 of 21 9.10 9.9.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under the Agreement. The hiring Party shall by fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made. Any applicable obligation imposed by the Agreement upon the hiring Party shall be equally binding upon, and will be construed as having application to, any subcontractor of such Party. 9.9.2 The obligations under this Article will not be limited in any way by any limitation of a subcontractor’s insurance. Reservation of Rights Rocky Mountain Power shall have the right to make a unilateral filing with the Commission to modify this Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule, regulation or any other applicable provision of the Federal Power Act and the Commission’s rules and regulations thereunder, and Customer shall have the right to make a unilateral filing with the Commission to modify this Agreement under any applicable provision of the Federal Power Act and the Commission’s rules and regulations; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the Commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties, except to the extent that the Parties otherwise agree as provided herein. Article 10. 10.1 Notices and Records General Unless otherwise provided in the Agreement, any written notice, demand, or request required or authorized in connection with the Agreement shall be deemed properly given if delivered in person, delivered by recognized national courier service, sent by first class mail, postage prepaid, or by electronic mail if an electronic mail address is provided below, to the person specified below: If to Customer: Customer: ______________________________________________________ Attention: _____________________________________________________________ Address: ________________________________________________________________ City: ________________________________ State: _________________ Zip: ________ Phone: (____) ______________________ Fax: (____) ___________________________ Email: _________________________________________________________________ If to Rocky Mountain Power: Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 15 of 21 By Mail: Rocky Mountain Power Attention: Net Metering Group P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 Or By email: [email protected] 10.2 Changes to the Notice Information Either Party may change this notice information by giving five (5) business days written notice prior to the effective date of the change. 10.3 Records Rocky Mountain Power will maintain a record of the Net Metering Agreement and related Attachments, if any, for as long as the net metering arrangement is in place. Rocky Mountain Power will provide a copy of these records to Customer within fifteen (15) Business Days if a request is made in writing. Article 11. Signatures IN WITNESSETH WHEREOF, the Parties have caused the Agreement to be executed by their respective duly authorized representatives. For the Customer: By: ______________________________________________ Name: ____________________________________________ Title: _____________________________________________ Date: _____________________________________________ For Rocky Mountain Power: Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 16 of 21 By: ______________________________________________ Name: ____________________________________________ Title: _____________________________________________ Date: _____________________________________________ Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 17 of 21 APPENDIX A ROCKY MOUNTAIN POWER UTAH NET METERING APPLICATION LEVEL 1 REVIEW INVERTER BASED SYSTEMS, 25 KW OR SMALLER Section 1: For Rocky Mountain Power Use Only Customer Name: ______________________________________________________________________ Service Address: ______________________________________________________________________ City, State, Zip: _______________________________________________________________________ Customer Account No. & Request No.: ____________________________________________________ Section 2: To Be Completed By Customer A. Applicant Information Name: _____________________________________________________________________ Mailing Address: ____________________________________________________________ City: ___________________________________State: _________ Zip Code: ____________ Site Street Address (if different from above): ______________________________________ City: ___________________________________State: __________ Zip Code: ___________ Daytime Phone: (_____) _____________________ Fax: (_____) ______________________ Email: _____________________________________________________________________ B. System Information System Type: Solar Wind Hydro Other (Specify): ___________________ Generation Nameplate Capacity: _____ kW (Combine DC total of wind turbines, solar panels, etc) Inverter Controlled: Yes No Inverter Manufacturer: __________ Model: _______ Number of Inverters: ___ Rating: ____ kW Manufacturer Nameplate Inverter Total AC Capacity Rating: _________ kW Inverter(s): Single Phase Three Phase Multiple Single Phase Connected on Polyphase (three phase) system (Attach Inverter and Panel Technical Specifications Sheets) Type of Service: Single Phase Three Phase If Three Phase: 120/208 Volts, 4 wire 120/240 Volts, 4 wire 277/480 Volts, 4 wire Other (Please Specify Voltage and Number of Service Wires): _______________________________________ Meets IEEE standard 1547 & UL Subject 1741 requirements as specified in Rule: Yes No Please note: A disconnect switch is not required for an inverter-based facility with a name plate rating of not more than 10 kW. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 18 of 21 Manual disconnect required: Yes No Will the net metering facility interconnect to a switchgear? Yes No Net metering facility available fault duty at the point of common coupling:__________________ For other service types, the net metering facility must not impact the Customer’s service conductors by more than 10 kW. If a disconnect switch is installed, Customer to provide a simple one-line diagram that shows the location of the disconnect switch and Rocky Mountain Power meter. Customer must post metal or plastic engraved signage indicating on-site generation in accordance with National Electric Code. The signage must be permanent and located adjacent to the meter base and disconnect switch noting “Parallel Generation on Site” and identifying the manual disconnect switch with the words “Manual Disconnect for Parallel Generation.”____ (Initial Here) Electrical Inspection approval date (attach copy or provide to utility when obtained):__________ Anticipated Operational Date of Net Metering Facilities: ________________________________ C. Additional Information 1. An equipment package will be considered certified for interconnected operation if it has been submitted by a manufacturer to a nationally recognized testing and certification laboratory, and has been tested and listed by the laboratory for continuous interactive operation with an electric distribution system in compliance with the applicable IEEE and UL 1741 standards in the Rule. 2. If the equipment package has been tested and listed as an integrated package, which includes a generator or other electric source, the equipment package will be deemed certified, and Rocky Mountain Power will not require any further design review, testing or additional information. 3. If the equipment package includes only the interface components (switchgears, inverters, or other interface devices), an interconnection applicant must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and consistent with the testing and listing specified for the package. If the generator or electric source being utilized with the equipment package is consistent with the testing and listing performed by the nationally recognized testing and certification laboratory, the equipment package will be deemed certified and Rocky Mountain Power will not require further design review, testing or additional equipment. 4. A net metering facility must be equipped with metering equipment that can measure the flow of electricity in both directions, comply with ANSI C12.1 standards and Utah Administrative Rule R746-312. Rocky Mountain Power will install the required metering equipment at Rocky Mountain Power’s expense. 5. Rocky Mountain Power will not be responsible for the cost of determining the rating of equipment owned by the customer-generator or of equipment owned by other local customers. 6. Customer may operate the Net Metering Facility temporarily for testing and obtaining inspection approval. Customer shall not operate the Net Metering Facility in continuous parallel without an executed Interconnection and Net Metering Service Agreement, and approval from Rocky Mountain Power. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 19 of 21 D. Customer Acknowledgment I certify that the information provided in this Application is true. I will provide Rocky Mountain Power a copy of the signed government electrical inspection approval document when obtained, if not already provided with this Application. I agree to abide by the terms of this Application and I agree to notify Rocky Mountain Power thirty (30) days prior to modification or replacement of the System’s components or design. Any such modification or replacement may require submission of a new Application to Rocky Mountain Power. I agree not to operate the Net Metering Facility in parallel with Rocky Mountain Power, except temporarily for testing and obtaining inspection approval, until this Application is approved by Rocky Mountain Power, until this agreement is signed by both parties, and until I have provided Rocky Mountain Power with at least five (5) days notice of anticipated start date. Customer or Applicant Signature & Date: ____________________________________ Please send completed application to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 or Please scan the completed application and email [email protected] Section 3: To be completed by the System Installer Installation Contractor Information/Hardware and Installation Compliance Installation Contractor (Company Name): _________________________________________________ Contractor's License No.: ______________________ Proposed Installation Date: __________________ Mailing Address: _____________________________________________________________________ City: _____________________________________ State: ___________ Zip Code: ________________ Daytime Phone: _______________ Fax: _______________ Email: ____________________________ For inverter-controlled system, meets IEEE Standards and UL 1741 Inverters, Converters, and Controllers for use in Independent Power Systems as set forth in the Rule: Yes No If Photovoltaic System, System must be installed in compliance with IEEE Standards, Recommended Practice for Utility Interface of Photovoltaic Systems. All System types must be installed in compliance with applicable requirements of local electrical codes, Rocky Mountain Power and the National Electrical Code® (NEC) and must use an anti-islanding inverter. The System must include a manual, lockable, load-break (disconnect) switch, unless exempt under Rule 746-312-4(2), accessible at all times to Rocky Mountain Power personnel and located within 10 feet of Rocky Mountain Power’s meter. The disconnect switch may be located more than 10 feet from Rocky Mountain Power’s meter if permanent instructions are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve the location of the disconnect switch prior to the installation of the net metering facility. Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 20 of 21 If the Net Metering Facility is designed to provide uninterruptible power to critical loads, either through energy storage, back-up generator, or the generation source, the Net Metering Facility will include a parallel blocking scheme for this backup source. This function may be integral to the inverter manufacturer’s packaged system. Does the Net Metering Facility include a parallel blocking scheme: Yes No Signed (Contractor): ______________________________________ Date: _____________ Name (Print): _______________________________________________ Section 4. To be completed by Rocky Mountain Power: A. If approving the application: Rocky Mountain Power does not, by approval of this Application, assume any responsibility or liability for damage to property or physical injury to persons. Further, this Application does not constitute a dedication of the owner's System to Rocky Mountain Power electrical system equipment or facilities. Customer entered into an Interconnection and Net Metering Service Agreement with Rocky Mountain Power on the ____ day of _____, 20__. Customer satisfactorily passed Witness Tests on the ____ day of _________, 20__. (Rocky Mountain Power may waive Witness Tests at its option; if tests are waived initial here __) This Application is approved by Rocky Mountain Power on this ______ day of _________, 20__ Rocky Mountain Power Representative Name (Print):___________________________________ Signed (Rocky Mountain Power Representative): ______________________ Date: __________ B. If denying the application: This application is denied by Rocky Mountain Power on this ______ day of ____________, 20__ for the following reason(s):_________________________________________________________ Rocky Mountain Power Representative Name (Print):____________________________________ Signed (Rocky Mountain Power Representative): ________________________ Date:__________ Applicant may submit a new application for Level 2 review. Section 5: To be completed by Rocky Mountain Power Meterman Customer Account No. _____________________________ Site ID No. : ______________________ Served from Facility Point No.: ________________________________ New Net Meter No.: ____________________________ Date net meter installed: ________________ Manual disconnect required: Yes No Proper location & permanent signage in place: Yes No Signature/Title:_____________________________________________ Date:___________________ Rocky Mountain Power Interconnection and Net Metering Agreement Utah Form Ver. 34 - Level 1 Page 21 of 21 We appreciate your interest in Rocky Mountain Power’s net metering program. Before purchasing any net metering equipment, we recommend you review the requirements for interconnecting a net metering system to Rocky Mountain Power’s electrical distribution system. The requirements are found in the Interconnection Agreement. To complete the process for a net metering interconnection, please follow the steps below: 1. Complete and submit the following to Rocky Mountain Power: Interconnection Agreement including the Application for Net Metering Interconnection The inverter specification sheet For systems larger than 10 kW, a simple one-line diagram showing • The location of Rocky Mountain Power’s meter • The location of the disconnect switch 2. Rocky Mountain Power will review your agreement and application and send you a written notification of approval either by mail or e-mail 3. Install the net metering system after you receive the written approval of your Interconnection Agreement and Application for Net Metering from Rocky Mountain Power 4. Obtain an inspection of your net metering system by the local city or county electrical inspector 5. Submit the electrical inspector’s approval to Rocky Mountain Power 6. Turn on your net metering system after Rocky Mountain Power provides you written notification the interconnection work has been completed and the net meter installed Return completed documents to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, Utah 84125-0308 Or Email to: [email protected] Thank you for your interest in the net metering program. If you have questions, please call us toll free at 1-888-221-7070 and ask for a net metering specialist. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 1 of 25 Service ID#:___________ Request #: ___________ INTERCONNECTION AND NET METERING SERVICE AGREEMENT FOR NET METERING FACILITY LEVEL 2 INTERCONNECTION UP TO 2 MW NAMEPLATE CAPACITY This Interconnection and Net Metering Service Agreement (“Agreement”) is made and entered into this ____ day of _____________, 20___, by and between _____________________________, an electric customer (“Customer”), and PacifiCorp, dba Rocky Mountain Power (“Rocky Mountain Power”), a Corporation organized and existing under the laws of the State of Oregon. Customer and Rocky Mountain Power each may be referred to as a “Party”, or collectively as the “Parties”. Recitals: Whereas, Customer has installed or intends to install a Net Metering Facility qualifying for “Net Metering,” Utah Rate Schedule No. 135A (“Schedule 135A”), as given in Rocky Mountain Power’s currently effective tariff as filed with the Public Service Commission of Utah (“Commission”), on or adjacent to Customer’s premises located at ____________________________, Utah, for the purpose of generating electric energy; Whereas, the Net Metering rate schedule may be amended from time to time, and the Public Service Commission may alter the charge, credit, and ratemaking structure applicable to Net Metering customers pursuant to Utah Code § 54-15-105.1; Whereas, Customer represents to Rocky Mountain Power that Customer either owns or leases its Net Metering Facility qualifying for Schedule 135A, or meets the exemption requirements set forth in Utah Code § 54-2-1.16(d) because it is a county, municipality, city, town, other political subdivision, local district, special service district, state institution of higher education, school district, charter school, or any entity within the state system of public education; or an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3) operated for religious, charitable, or educational purposes that is exempt from federal income tax and able to demonstrate its tax-exempt status; Whereas, Customer desires to interconnect the Net Metering Facility with Rocky Mountain Power’s distribution system consistent with the Application completed by Customer on _____________ ____, 20___, as described in as described in Appendix B (“Application”) of this Agreement; and Whereas, Customer, using its Net Metering Facility, intends to offset part or all of its electrical requirements supplied by Rocky Mountain Power. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 2 of 25 Now, therefore, in consideration of and subject to the mutual covenants contained herein, the Parties agree as follows: Article 1. Scope and Limitations of Agreement 1.1 Scope The Agreement shall be used for all approved Level 2 Applications according to the procedures set forth in Utah Administrative Rule 746-312, as may be amended from time to time (“Rule”). . The Rule can be viewed at www.psc.utah.gov. The Agreement establishes standard terms and conditions approved by the Public Service Commission of Utah (“Commission”) under which the Net Metering Facility with an Electric Nameplate Capacity of 2 MW or smaller as described in Appendix B will interconnect to, and operate in parallel with, Rocky Mountain Power’s system. 1.2 Definitions Terms with initial capitalization, when used in this Agreement, shall have the meanings indicated or as specified in the Rule Section R746-312-2 and, to the extent this Agreement conflicts with the Rule, the Rule shall take precedence. 1.3 Other Agreements Nothing in this Agreement is intended to affect any other agreement between Rocky Mountain Power and Customer or any other Interconnection Customer. However, in the event that the provisions of the Agreement are in conflict with the provisions of any Rocky Mountain Power Tariff, as may be amended from time to time, the Rocky Mountain Power Tariff, as may be amended from time to time, shall control. 1.4 Responsibilities of the Parties 1.4.1 The Parties shall perform all obligations of the Agreement in accordance with all applicable laws and regulations. 1.4.2 Customer will construct, operate, test, and maintain its Net Metering Facility in accordance with the Agreement, IEEE standards (available at the following link: http://standards.ieee.org/index.html), National Electric Code Standards (available for purchase at http://standards.ieee.org/faqs/NESCFAQ.html#q8), Utah state building codes (available at the following link: http://www.dopl.utah.gov/programs/ubc/), the Rule and other applicable standards required by the Commission, as may be amended from time to time. 1.4.3 Each Party shall be responsible for the safe installation, maintenance, repair and condition of their respective lines and appurtenances on their respective sides of the Point of Common Coupling. Each Party shall provide interconnection facilities that adequately protect the other Party’s facilities, personnel and other Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 3 of 25 persons from damage and injury. The allocation of responsibility for the design, installation, operation, maintenance and ownership of interconnection facilities is prescribed in the Rule, including but not necessarily limited to R746-312-4. 1.5 1.4.4 Customer is responsible for protecting the generating equipment, inverters, protective devices, and other system components from damage from the normal and abnormal conditions and operations that occur on Rocky Mountain Power’s system in delivering and restoring power; and is responsible for ensuring that the Net Metering Facility equipment is inspected, maintained, and tested in accordance with the manufacturer’s instructions to ensure that it is operating correctly and safely. 1.4.5 Customer shall obtain Rocky Mountain Power’s approval of the Application prior to commencing parallel operation of its interconnected Net Metering Facility. Parallel Operation and Maintenance Obligations Once the Net Metering Facility has been authorized to commence parallel operation by an approved application, and execution of this Agreement, Customer will abide by all written provisions for operations and maintenance as required by the Rule and Rocky Mountain Power’s Tariffs, including but not necessarily limited to R746-312-4 and Schedule 135A or its successor tariff(s). 1.6 Metering Rocky Mountain Power shall install, own and maintain, at its sole expense, a kilowatthour meter(s) and associated equipment to measure the flow of energy in each direction, unless otherwise authorized by the Commission. Customer shall provide, at its sole expense, adequate facilities, including, but not limited to, a current transformer enclosure (if required), meter socket(s) and junction box, for the installation of the meter and associated equipment. Customer hereby consents to the installation and operation by Rocky Mountain Power and at Rocky Mountain Power’s expense, of one or more additional meters to monitor the flow of electricity in each direction. Such meters shall be located on the premises of Customer. 1.7 Net Metering Facility Requirements, Installation, Operation 1.7.1 Customer’s Net Metering Facility must meet the requirements set forth in, including but not necessarily limited to, the Rule, R746-312-4 and Schedule 135A or its successor tariff(s). This also applies to installation and operation of the Net Metering Facility. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 4 of 25 1.7.2 1.8 Customer is responsible for all costs associated with its Net Metering Facility and is also responsible for all costs related to any modifications to the Net Metering Facility that may be required by Rocky Mountain Power for purposes of safety and reliability as allowed under the Rule and Rocky Mountain Power tariffs. Power Quality Customer will design its Net Metering Facility to maintain a composite power delivery at continuous rated power output at the Point of Common Coupling that meets the requirements set forth in IEEE 1547, in accordance with the Rule, R746-312-4. 1.9 Anticipated Start Date Customer must include an anticipated start date for operation of its Net Metering Facility in the Application. After receiving notice that the Application has been approved and satisfactory completion of all reviews and inspections of the Net Metering Facility, Customer must notify Rocky Mountain Power at least ten (10) Business Days prior to starting operation of the Facility, through either submission of an executed Agreement or through separate written notice. Customer shall not commence parallel operation of the Net Metering Facility until Rocky Mountain Power executes this Agreement, installs the net meter and notifies Customer that the Net Metering Facility is interconnected. 1.10 Net Metering Facility Inspection 1.10.1 Building Code Inspection Prior to operation in parallel with Rocky Mountain Power’s system, the Net Metering Facility must be inspected by a local building code official to ensure compliance with applicable local codes. 1.10.2 Inspection by Rocky Mountain Power Rocky Mountain Power may inspect the Net Metering Facility and its component equipment, and the documents necessary to ensure compliance with the Rule. Customer shall notify Rocky Mountain Power prior to placing the Net Metering Facility in service, and Rocky Mountain Power shall have the right to have personnel present on the in-service date. If the Net Metering Facility is subsequently modified in order to increase its gross power rating, Customer must notify Rocky Mountain Power by submitting a new application specifying the modifications in accordance with the level of review required for that application. 1.11 Net Metering Facility Testing and Maintenance Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 5 of 25 Customer shall conduct maintenance and testing on its Net Metering Facilities as set forth in the Rule, including but not necessarily limited to R746-312-14. 1.11.1 Customer shall conduct any manufacturer-recommended testing or maintenance at its expense. 1.11.2 Customer shall conduct any post-installation testing, at its expense, necessary to ensure compliance with IEEE standards as set forth in the Rule or to ensure safety. This includes replacing a major equipment component that is different from the originally installed model. 1.11.3 When Customer performs maintenance or testing in accordance with the Rule, it must retain written records documenting the maintenance and results of the testing for three (3) years. 1.11.4 Rocky Mountain Power shall have the right to inspect Customer’s facility after interconnection approval is granted, at reasonable hours and with reasonable prior notice to Customer. If Rocky Mountain Power discovers that the Net Metering Facility is not in compliance with the Rule, Rocky Mountain Power may require Customer to disconnect the Net Metering Facility until compliance is achieved. 1.12 Removal of Facility Customer shall immediately notify Rocky Mountain Power if Customer removes or ceases to operate the Net Metering Facility. Article 2. 2.1 Review, Inspection, Testing, Disconnect Switch and Signage, and Right of Access Initial Review and Additional Review After determining Customer’s interconnection request is complete, in accordance with the Rule, R746-312-9, Rocky Mountain Power will conduct a review of the proposed interconnection, using screens set forth in the Rule R746-312-7. Rocky Mountain Power will conduct such review within fifteen (15) days after notifying Customer that the interconnection request is complete and will notify Customer either: 1) the Net Metering Facility meets all applicable criteria and the interconnection request is approved; 2) although the Net Metering Facility fails one or more of the screens the Net Metering Facility may be interconnected consistent with safety, reliability, and power quality standards and the interconnection is approved; or 3) the interconnection of the Net Metering Facility has failed to meet one or more of the applicable criteria and the reason for failure, or Rocky Mountain Power has not or could not determine from the initial reviews that the Net Metering Facility may be interconnected consistent with safety reliability, and power quality standards, or the Net Metering Facility cannot be approved Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 6 of 25 without minor modifications at minimal cost and the interconnection request is denied unless the Customer is willing to consider minor modifications or further study. If the initial review determines that the Net Metering Facility fails to meet one or more applicable requirements, but additional review may enable Rocky Mountain Power to determine that the Net Metering Facility may be interconnected consistent with safety, reliability and power quality standards, Rocky Mountain Power will offer to perform the additional review to determine whether minor modifications to the electric distribution system would enable the interconnection to be made consistent with safety, reliability and power quality standards. In this instance, Rocky Mountain Power will provide Customer with a good faith, nonbinding estimate of costs of such additional review and minor modifications. Rocky Mountain Power will conduct additional review and make minor modifications after receipt of payment from Customer in accordance with the attached Appendix A. 2.2 Equipment Testing and Inspection Customer must notify Rocky Mountain Power of the anticipated testing and inspection date of the Net Metering Facility at least ten (10) business days prior to testing, either through submittal of the Agreement, a notice of completion, or in a separate notice. Within ten (10) business days after receipt of such required documentation, Rocky Mountain Power will inspect the Net Metering Facility, set the new meter if required, approve the interconnection and may arrange a witness test as set forth in the Rule, R746-312-9(5). Rocky Mountain Power and Customer will select a date by mutual agreement for the witness tests. Rocky Mountain Power will test and inspect the Net Metering Facility and Interconnection Facilities prior to interconnection in accordance with IEEE Standards as provided for in the Rule, R746-312-4. Customer shall not begin operation of its Net Metering Facility until after inspection and testing is completed. If a witness test is conducted and is not satisfactory, Customer must resolve any deficiencies within forty-five (45) business days or other time period as mutually agreed by the Parties. 2.3 Disconnect Switch and Signage Customer shall comply with the Rule regarding disconnect switches, R746-312-4. The disconnect switch may be located more than 10 feet from the public utility meter if permanent instructions in letters of appropriate size are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve in writing the location of the disconnect switch prior to the installation of the Net Metering Facility. 2.4 Right of Access Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 7 of 25 As provided in the Rule, R746-312-4, Rocky Mountain Power shall have access to any required disconnect switch at the Net Metering Facility at all times. Rocky Mountain Power will provide reasonable notice to Customer when possible prior to using the right of access. Additionally, as provided in Rocky Mountain Power Utah Rule 6, or its successor tariff, Rocky Mountain Power shall have access to the metering equipment. Article 3. 3.1 Effective Date, Term, Termination and Disconnection Effective Date The Agreement shall become effective upon execution by the Parties. 3.2 Term of Agreement The Agreement will become effective on the Effective Date and will remain in effect unless terminated in accordance with provisions of this Agreement, or Order by the Commission. 3.3 Termination No termination will become effective until the Parties have complied with all applicable laws and clauses of this Agreement applicable to such termination. 3.4 3.3.1 Customer may terminate this Agreement at any time by giving Rocky Mountain Power twenty (20) business days written notice. 3.3.2 Either Party may terminate this Agreement after default pursuant to Article 6.4 of this Agreement. 3.3.3 The Commission may Order termination of this Agreement. 3.3.4 Upon termination of this Agreement, Customer shall disconnect the Net Metering Facility from Rocky Mountain Power’s system. The termination of this Agreement will not relieve either Party of its liabilities and obligations, owed or continuing at the time of termination. 3.3.5 If Customer removes the Net Metering equipment at the Net Metering Facility or ceases to operate its Net Metering Facility at the premise listed in the Application, this Agreement will be immediately terminated. 3.3.6 The provisions of this Article shall survive termination or expiration of this Agreement. Temporary Disconnection Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 8 of 25 3.4.1 Rocky Mountain Power may temporarily disconnect the Net Metering Facility from Rocky Mountain Power’s system for so long as reasonably necessary in the event one or more of the following conditions or events occurs: 3.4.1.1 Emergencies or to address maintenance requirements for Rocky Mountain Power’s system. 3.4.1.2 Hazardous conditions existing on Rocky Mountain Power’s system which may affect the safety of the general public or Rocky Mountain Power employees due to the operation of the Net Metering Facility or protective equipment as determined by Rocky Mountain Power. 3.4.1.3 Adverse electrical effects on the electrical equipment of Rocky Mountain Power’s other electric customers caused by the Net Metering Facility as determined by Rocky Mountain Power. 3.4.2 In the event that no disconnect switch is installed, Rocky Mountain Power may physically disconnect all service to the Customer and/or all service to the premises where the Net Metering Facility is located. 3.4.3 To the extent practicable, Rocky Mountain Power will give prior notice of any temporary disconnection of the Net Metering Facility. If Rocky Mountain Power is unable to give prior notice, Rocky Mountain Power will provide notice including an explanation of the condition necessitating the disconnection at the time of disconnection. 3.4.4 Under emergency conditions, Rocky Mountain Power or Customer may immediately suspend interconnection service and temporarily disconnect the Net Metering Facility. Rocky Mountain Power shall notify Customer promptly when Rocky Mountain Power becomes aware of an emergency condition that may reasonably be expected to affect the Net Metering Facility operation. Customer shall notify Rocky Mountain Power promptly when Customer becomes aware of an emergency condition that may reasonably be expected to affect Rocky Mountain Power’s system. To the extent the information is known, the notification shall describe the emergency condition, the extent of any damage or deficiency, the expected effect on the operation of both Parties’ facilities and operations, the anticipated duration, and the necessary corrective action. 3.4.5 Customer shall make reasonable efforts to provide notice of interruption of Net Metering Facility operation for safety and/or reliability reasons prior to the interruption unless an emergency occurs. Emergency interruptions or temporary terminations are subject to Section 3.4.1 above. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 9 of 25 3.4.6 Rocky Mountain Power shall use reasonable efforts to provide Customer with prior notice of forced outages to effect immediate repairs to Rocky Mountain Power’s system. If prior notice is not given, Rocky Mountain Power, shall, upon request, provide Customer written documentation after the fact explaining the circumstances of the disconnection. 3.4.7 Customer must provide Rocky Mountain Power notice and obtain Rocky Mountain Power’s written approval before Customer may modify its Net Metering Facility in order to increase the electric output of the Net Metering Facility. If Customer makes any material change without prior written authorization of Rocky Mountain Power, Rocky Mountain Power will have the right to temporarily disconnect the Net Metering Facility until Rocky Mountain Power has had an opportunity to review the change(s) made to determine whether they are acceptable. If any system modifications or other equipment installations are deemed necessary by Rocky Mountain Power to accommodate the modified Net Metering Facility, Customer shall submit the appropriate net metering application at that time. 3.4.8 The Parties shall cooperate with each other to restore the Net Metering Facility, Interconnection Facilities, and Rocky Mountain Power’s system to their normal operating state as soon as reasonably practicable following any disconnection pursuant to this section. Article 4. 4.1 Cost Responsibility Application Fee Customer shall bear the cost of any Application fee provided for in the Rule, R746-31213(2), or as otherwise approved by the Commission. Customer shall remit payment with the Application as calculated in the Application, Section 2(C). 4.2 Net Metering Facility and Interconnection Equipment Customer shall be responsible for all costs including overheads, associated with procuring, installing, owning, operating, maintaining, repairing, and replacing its Net Metering Facility, any associated equipment package, and any associated interconnection equipment or interconnection facilities required to be installed on Customer’s side of the Point of Common Coupling. 4.3 Minor Modifications If, under Section 2.1 of this Agreement, additional review is performed and minor modifications to the electric distribution system are required to enable the interconnection to be made consistent with safety, reliability and power quality standards applicable to Level 2 interconnection reviews, the Customer shall pay for the Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 10 of 25 cost to procure, install, and construct, operate, maintain, repair and replace any such Minor Modifications. A description of the minor modifications may be found in Appendix A. The cost of the minor modifications as described on Appendix A shall be $________. Customer shall remit payment for minor modifications prior to Rocky Mountain Power commencing the work required for the minor modifications. Article 5. 5.1 Billing Monthly Billing The electric service charge shall be computed in accordance with the monthly billing in the currently applicable standard service tariff. Customer will be compensated for net excess energy in accordance with Schedule 135A or its successor tariff(s). Customer will be transitioned to any successor tariff immediately upon approval of that tariff by the Public Service Commission and will be subject to any charge, credit, or ratemaking structure implemented therein. 5.2 Special Conditions Customer must comply with the special conditions found in Schedule 135A or its successor tariff(s). 5.3 Aggregating Meters Aggregating Meters is allowed if certain conditions are met under the Rule, R746-3125. Customer designates the following meters for aggregation: _______________________. In the event that the Net Metering Facility supplies more electricity to Rocky Mountain Power than the Customer uses from Rocky Mountain Power, Rocky Mountain Power will apply any credits to the next monthly bill in accordance with Utah Code § 54-15-104 and the Rule, R746-312-15. Customer shall designate the order in which to apply any credits in accordance with the Rule. <<If customer does not want to aggregate, insert “N\A” in the gray box.>> Article 6. 6.1 Assignment, Liability, Indemnity, Force Majeure, Consequential Damages and Default Assignment This Agreement may be assigned by either Party with the consent of the other Party. A Party’s consent to an assignment may not be unreasonably withheld. The assigning Party must give the non-assigning Party written notice of the assignment at least fifteen days (15) before the effective date of the assignment. The non-assigning Party must submit its objection to the assignment, if any, to the assigning Party in writing at least 5 business days before the effective date of the assignment. If a written objection is not Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 11 of 25 received within that time period, the non-assigning party is deemed to consent to the assignment. 6.1.1 Exceptions to the Consent Requirement 6.1.1.1 Either Party may assign the Agreement without the consent of the other Party to any affiliate (including a merger or acquisition of the Party with another entity), of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.1.2 Customer-Generator is entitled to assign the Agreement, without the consent of Rocky Mountain Power, for collateral security purposes to aid in obtaining financing for the Net Metering Facility. 6.1.1.3 For Net Metering systems that are integrated into a building facility, the sale of the building or property will result in the automatic assignment of this Agreement to the new owner who will be responsible for complying with the terms and conditions of this Agreement. 6.1.2 6.2 Any attempted assignment that violates this Article is void and ineffective. Assignment does not change or eliminate a Party’s obligations under this Agreement. An assignee is responsible for meeting the same obligations as the assigning Party. Limitation of Liability and Consequential Damages Each Party’s liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in the performance of this Agreement, is limited to the amount of direct damage actually incurred. Neither Party is liable to the other Party for any indirect, special, consequential, or punitive damages. 6.3 Indemnification Customer shall hold harmless and indemnify Rocky Mountain Power for all loss to third parties resulting from the operation of the Net Metering Facility, except when the loss occurs due to the negligent actions of Rocky Mountain Power. Rocky Mountain Power shall hold harmless and indemnify Customer for all loss to third parties resulting from the operation of Rocky Mountain Power’s system, except where the loss occurs due to the negligent actions of Customer. 6.4 Force Majeure Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 12 of 25 6.5 6.4.1 As used in this Agreement, a Force Majeure Event shall mean “any act of God, labor disturbance, act of the public enemy, war, acts of terrorism, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment through no direct, indirect, or contributory act of a Party, any order, regulation, or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party’s control. A Force Majeure Event does not include an act of negligence or wrongdoing.” 6.4.2 If a Force Majeure Event prevents a Party from fulfilling any obligations under this Agreement, the Party affected by the Force Majeure Event (“Affected Party”) shall promptly notify the other Party of the existence of the Force Majeure Event. The notification must specify in reasonable detail the circumstances of the Force Majeure Event, its expected duration, and the steps that the Affected Party is taking to mitigate the effects of the event on its performance, and if the initial notification was verbal, it should be promptly followed up with a written notification. The Affected Party shall keep the other Party informed on a continuing basis of developments relating to the Force Majeure Event until the event ends. The Affected Party will be entitled to suspend or modify its performance of obligations under this Agreement (other than the obligation to make payments) only to the extent that the effect of the Force Majeure Event cannot be reasonably mitigated. The Affected Party will use reasonable efforts to resume its performance as soon as possible. The Parties shall immediately report to the Commission should a Force Majeure Event prevent performance of an action required by Rule that the Rule does not permit the Parties to mutually waive. Default 6.5.1 A Party is in default if the Party fails to perform an obligation required under this Agreement (other than the payment of money). A Party is not considered in default of this agreement if the failure to perform an obligation is caused by an act or omission of the other Party or is the result of a Force Majeure as defined in this Agreement. 6.5.2 Upon a default, the non-defaulting Party must give written notice of the default to the defaulting party. The defaulting party has sixty (60) calendar days from the receipt of the written default notice to cure the default. If the default is not capable of cure within the 60-day period, the defaulting Party must begin to cure the default within twenty (20) calendar days after receipt of the written default notice, and must continuously and diligently complete the cure within six (6) months of the receipt of the notice. 6.5.3 If a default is not cured as provided for in 6.5.2, then the non-defaulting Party is entitled to terminate the Agreement by written notice at any time until cure occurs. If the non-defaulting Party chooses to terminate this Agreement, the Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 13 of 25 termination provisions in Article 3.3 apply. Alternately, the non-defaulting Party is entitled to seek dispute resolution with the Commission in lieu of termination. Article 7. Insurance Additional liability insurance is not required as a part of the Agreement if the Net Metering Facility is in compliance with the provisions of the Application approval, the Agreement and the standards contained in Utah Code § 54-15-106. Article 8. Dispute Resolution 8.1 Nothing in this Article shall restrict the rights of any Party to file a complaint with the Commission under relevant provisions of the Rule and applicable state law. 8.2 Pursuit of dispute resolution may not affect a Customer with regard to consideration of an Interconnection Request or a Customer’s queue position. Article 9. 9.1 Miscellaneous Governing Law, Regulatory Authority and Rules The validity, interpretation, and enforcement of this Agreement is governed by the laws of the State of Utah. If any provision of this Agreement conflicts with any applicable provision, as may be amended from time to time, of the Utah Code (“Code”), Utah Administrative Rules (“Rules”), or Rocky Mountain Power’s Tariffs (“Tariff”), then the applicable provision of the Code, Rules, or Tariff controls. Rocky Mountain Power must provide copies of the applicable provisions of the Code, Rules, and Tariff upon the Customer’s request. 9.2 Amendment Additions, deletions or changes to the standard terms and conditions of this Agreement will not be permitted unless they are mutually agreed to by the Parties and permitted by the Rule or permitted by the Commission for good cause shown. The Parties may amend the Agreement by a written instrument duly executed by both Parties in accordance with the provisions of the Rule and applicable Commission Orders and provisions of the laws of the State of Utah. 9.3 No Third Party Beneficiaries The Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 14 of 25 other than the Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, or where permitted, their successors in interest and their assigns. 9.4 9.5 Waiver 9.4.1 The failure of a Party to the Agreement to insist, on any occasion, upon strict performance of any provision of the Agreement, will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party. 9.4.2 The Parties may also agree to mutually waive a Section of this Agreement without the Commission’s approval where the Rule so provides. 9.4.3 Any waiver at any time by either Party of its rights with respect to the Agreement shall not be deemed a continuing waiver or a wavier with respect to any other failure to comply with any other obligation, right, duty of the Agreement. Termination or default of this Agreement for any reason by Customer shall not constitute a waiver of the Customer’s legal rights to obtain interconnection from Rocky Mountain Power. Any request for waiver of the Agreement or any provisions thereof shall be provided in writing. Entire Agreement The Agreement, including any supplementary attachments that may be necessary, constitutes the entire Agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of the Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party’s compliance with its obligations under the Agreement. 9.6 Multiple Counterparts This Agreement may be executed in one or more counterparts, whether electronically or otherwise, each of which is deemed an original but all constitute one and the same instrument. 9.7 No Partnership The Agreement will not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 15 of 25 behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party. 9.8 Severability If any provision or portion of the Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (1) such portion or provision shall be deemed separate and independent, (2) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (3) the remainder of the Agreement shall remain in full force and effect. 9.9 Subcontractors Nothing in the Agreement shall prevent a Party from using the services of any subcontractor, or designating a third party agent as one responsible for a specific obligation or act required in the Agreement (collectively “subcontractors”), as it deems appropriate to perform its obligations under the Agreement; provided, however, that each Party will require its subcontractors to comply with all applicable terms and conditions of the Agreement in providing such services and each Party will remain primarily liable to the other Party for the performance of the subcontractor. 9.10 9.9.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under the Agreement. The hiring Party shall by fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made. Any applicable obligation imposed by the Agreement upon the hiring Party shall be equally binding upon, and will be construed as having application to, any subcontractor of such Party. 9.9.2 The obligations under this Article will not be limited in any way by any limitation of a subcontractor’s insurance. Reservation of Rights Rocky Mountain Power shall have the right to make a unilateral filing with the Commission to modify this Interconnection Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule, regulation or any other applicable provision of the Federal Power Act and the Commission’s rules and regulations thereunder, and Customer shall have the right to make a unilateral filing with the Commission to modify this Agreement under any applicable provision of the Federal Power Act and the Commission’s rules and regulations; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the governing authority in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties, except to the extent that the Parties otherwise agree as provided herein. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 16 of 25 Article 10. 10.1 Notices and Records General Unless otherwise provided in the Agreement, any written notice, demand, or request required or authorized in connection with the Agreement shall be deemed properly given if delivered in person, delivered by recognized national courier service, sent by first class mail, postage prepaid, or by electronic mail if an electronic mail address is provided below to the person specified below: If to Customer: Customer: ______________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: ________________________________ State: _________________ Zip: ________ Phone: (____) ________________________ Fax: (____) _________________________ Email: __________________________________________________________________ If to Rocky Mountain Power: By Mail: Rocky Mountain Power Attention: Net Metering Group P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 Or By email: [email protected] 10.2 Records Rocky Mountain Power will maintain a record of the Interconnection Agreement and related Attachments, if any, for as long as the interconnection is in place. Rocky Mountain Power will provide a copy of these records to Customer within fifteen (15) Business Days upon written request. 10.3 Billing and Payment Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 17 of 25 Billings and payments shall be sent to the addresses below (complete if different from Section 10.1 above): If to Customer: Customer: ______________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: _______________________________ State: _______________ Zip: ___________ 10.4 Designated Operating Representative The Parties will designate one operating representative each to conduct the communications that may be necessary or convenient for the administration of the operations provisions of the Agreement. This person will also serve as the point of contact with respect to operations and maintenance of the Party’s facilities (complete if different from Section 10.1 above): Customer’s Operating Representative: Name: __________________________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: _______________________________ State: _______________ Zip: ___________ Phone: (____) _______________________ Fax: (____) __________________________ Email: __________________________________________________________________ 10.5 Changes to the Notice Information Either Party may change this notice information by giving five (5) business days written notice prior to the effective date of the change. Article 11. Signatures IN WITNESSETH WHEREOF, the Parties have caused the Agreement to be executed by their respective duly authorized representatives. For the Customer: For Rocky Mountain Power: By: _____________________________ By: _____________________________ Name: ___________________________ Name: ___________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 18 of 25 Title: ____________________________ Title: ____________________________ Date: ____________________________ Date: ____________________________ Appendix A Minor Modifications Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 19 of 25 APPENDIX B ROCKY MOUNTAIN POWER UTAH NET METERING APPLICATION LEVEL 2 REVIEW CAPACITY OF 2 MW OR LESS Section 1: For Rocky Mountain Power Use Only Customer Name: _________________________________________________________________________ Service Address: _________________________________________________________________________ City, State, Zip: __________________________________________________________________________ Customer Account No. & Request No.:________________________________________________________ Interconnection Agreement Acknowledgement (Date): ___________________________________________ Application fee: $__________________ Date Paid: _____________________________________________ Section 2: To Be Completed By Customer A. Applicant Information Name: ___________________________________________________________________________ Mailing Address: ___________________________________________________________________ City: __________________________________________State: _________ Zip Code: ____________ Site Street Address (if different from above): _____________________________________________ City: __________________________________________State: __________ Zip Code: ___________ Daytime Phone: (_____) ________________________ Fax: (_____) __________________________ Email: ____________________________________________________________________________ B. System Information System Type: Solar Wind Hydro Other (Specify): _________________________ Generation Nameplate Capacity: ______________ kW (Combine DC total of wind turbines, solar panels, etc. or AC rating if an inverter is not utilized) Inverter Manufacturer: ___________ Model: _______ Number of Inverters: _____ Rating: _____ kW Manufacturer Nameplate Inverter Total AC Capacity Rating: _________ kW Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 20 of 25 Inverter(s): Single Phase Three Phase Multiple Single Phase Connected on Poly-phase (three phase) system (Attach Inverter and Panel Technical Specifications Sheets) Type: Induction Type of Service: Inverter Single Phase Synchronous __________________Other Three Phase If Three Phase Transformer: Indicate Type: Wye Delta Indicate Voltage and Number of Service Wires: 120/208 Volts, 4 wire 120/240 Volts, 4 wire 277/480 Volts, 4 wire Other ___________ ________________________________________________________________________________ Other Information:_________________________________________________________________ ________________________________________________________________________________ Self Contained Location: ___________________________________________________________ Outdoor Manual AC Disconnect Switch Location (show Disconnect Switch and Rocky Mountain Power Meter Location on Site Plan), unless exempt under Utah Administrative Rule 746-312-4(2): ________________________________________________________________________________ System Location (show all protective devices on One Line Diagram):_________________________ Will the net metering facility interconnect to a switchgear? Yes No Customer must post metal or plastic engraved signage indicating on-site generation in accordance with the National Electric Code. The signage must be permanent and located adjacent to the meter base and disconnect switch noting “Parallel Generation on Site” and identifying the manual disconnect switch with the words “Manual Disconnect for Parallel Generation.” _____ (Initial Here) One Line Diagram Attached: Installation Test Plan attached: Yes Yes No Site Plan Attached: Yes No No Anticipated Operational Date of Net Metering Facilities: __________________________________ (Rocky Mountain Power must be notified at least ten (10) business days prior to starting operation.) Net metering facility available fault duty at the point of common coupling:_____________________ (A Rocky Mountain Power Engineer may contact you for additional information) Electrical Inspection approval date (attach copy or provide to utility when obtained):_____________ C. Application Fees Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 21 of 25 $ 50.00 + $ __________ $ __________ Base $1.00 x ____ kW of Net Metering Facility’s capacity TOTAL APPLICATION FEE D. Additional Information 1. 2. 3. 4. 5. 6. 7. An equipment package will be considered certified for interconnected operation if it has been submitted by a manufacturer to a nationally recognized testing and certification laboratory, and has been tested and listed by the laboratory for continuous interactive operation with an electric distribution system in compliance with the applicable IEEE and UL 1741 standards, as set forth in the Rule. If the equipment package has been tested and listed as an integrated package, which includes a generator or other electric source, the equipment package will be deemed certified, and Rocky Mountain Power will not require any further design review, testing or additional information. If the equipment package includes only the interface components (switchgears, inverters, or other interface devices), an interconnection applicant must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and consistent with the testing and listing specified for the package. If the generator or electric source being utilized with the equipment package is consistent with the testing and listing performed by the nationally recognized testing and certification laboratory, the equipment package will be deemed certified and Rocky Mountain Power will not require further design review, testing or additional equipment. A net metering facility must be equipped with metering equipment that can measure the flow of electricity in both directions, comply with ANSI C12.1 standards and Rule 746-312. Rocky Mountain Power will install the required metering equipment at Rocky Mountain Power’s expense. Rocky Mountain Power will not be responsible for the cost of determining the rating of equipment owned by the customer-generator or of equipment owned by other local customers. Customer may operate the Net Metering Facility temporarily for testing and obtaining inspection approval. Customer shall not operate the Net Metering Facility in continuous parallel without an executed Interconnection and Net Metering Service Agreement, and approval from Rocky Mountain Power. Customer will pay to Rocky Mountain Power at the time of application the applicable Application fee of $50.00 plus $1.00 per kilowatt of the net metering facility’s capacity. Customer-generator will pay to Rocky Mountain Power all costs of minor modifications or additional review as set forth in Rule 746-312 prior to commencement of work. E. Customer Acknowledgment I certify that the information provided in this Application is true. I will provide Rocky Mountain Power a copy of the signed government electrical inspection approval document when obtained, if not already provided with this Application. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 22 of 25 I agree to abide by the terms of this Application and I agree to notify Rocky Mountain Power thirty (30) days prior to modification or replacement of the System’s components or design. Any such modification or replacement may require submission of a new Application to Rocky Mountain Power. I agree not to operate the Net Metering Facility in parallel with Rocky Mountain Power, except temporarily for testing and obtaining inspection approval, until this Application is approved by Rocky Mountain Power, until this agreement is signed by both parties, and until I have provided Rocky Mountain Power with at least five (5) days notice of anticipated start date. Customer or Applicant Signature & Date: ____________________________________ Please send completed application to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 or Please scan the completed application and email [email protected] Section 3. To be completed by System Installer Installation Contractor Information/Hardware and Installation Compliance Installation Contractor (Company Name): ______________________________________________________ Contractor's License No.: _______________________________ Proposed Installation Date: _____________ Mailing Address: _________________________________________________________________________ City: ______________________________________________ State: _________ Zip Code: _____________ Daytime Phone: ________________ Fax: _____________ Email: __________________________________ For inverter-controlled system, meets IEEE Standards and UL 1741 Inverters, Converters, and Yes No Controllers for use in Independent Power Systems as set forth in the Rule: For induction or synchronous device, meets IEEE Standard 1547 and IEEE/ANSI Standard C37.90 Yes No requirements as set forth in the Rule: If Photovoltaic System, System must be installed in compliance with IEEE Standards, Recommended Practice for Utility Interface of Photovoltaic Systems. All System types must be installed in compliance with applicable requirements of local electrical codes, Rocky Mountain Power and the National Electrical Code® (NEC) and must use an anti-islanding inverter. The System must include a manual, lockable, load-break (disconnect) switch, unless exempt under Rule 746312-4(2), accessible at all times to Rocky Mountain Power personnel and located within 10 feet of Rocky Mountain Power’s meter. The disconnect switch may be located more than 10 feet from Rocky Mountain Power’s meter if permanent instructions are posted at the meter indicating the precise location of the disconnect Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 23 of 25 switch. Rocky Mountain Power must approve the location of the disconnect switch prior to the installation of the net metering facility. If the Net Metering Facility is designed to provide uninterruptible power to critical loads, either through energy storage, back-up generator, or the generation source, the Net Metering Facility will include a parallel blocking scheme for this backup source. This function may be integral to the inverter manufacturer’s packaged system. Does the Net Metering Facility include a parallel blocking scheme: Yes No Signed (Contractor): ______________________________________ Date: _____________ Name (Print): _______________________________________________ Section 4. To be completed by Rocky Mountain Power: A. If approving the application: Rocky Mountain Power does not, by approval of this Application, assume any responsibility or liability for damage to property or physical injury to persons. Further, this Application does not constitute a dedication of the owner's System to Rocky Mountain Power electrical system equipment or facilities. Customer entered into an Interconnection and Net Metering Service Agreement with Rocky Mountain Power on the ____ day of _____, 20__. Customer satisfactorily passed Witness Tests on the ___ day of ________, 20___ (Rocky Mountain Power may waive Witness Tests at its option; if tests are waived initial here ______). This Application is approved by Rocky Mountain Power on this _____ day of ______________, 20__ Rocky Mountain Power Representative Name (Print): ______________________________________ Signed (Rocky Mountain Power Representative): __________________________ Date: ___________ B. If denying the application: This application is denied by Rocky Mountain Power on this _____ day of ____________, 20__ for the following reason(s):__________________________________________________________________ Rocky Mountain Power Representative Name (Print): ______________________________________ Signed (Rocky Mountain Power Representative): ________________________ Date:____________ Applicant may submit a new application for Level 3 review. Section 5. To be completed by Rocky Mountain Power Meterman Customer Account No. __________________________________ Site ID No.: _______________________ Served from Facility Point No.: ________________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 24 of 25 New Net Meter No.: ____________________________ Date net meter installed: ______________________ Manual disconnect location and permanent signage in place unless system is less than 10 kW: Yes No Signature/Title: _________________________________________ Date: ___________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 4 - Level 2 Utah Level 2 Page 25 of 25 We appreciate your interest in Rocky Mountain Power’s net metering program. Before purchasing any net metering equipment, we recommend you review the requirements for interconnecting a net metering system to Rocky Mountain Power’s electrical distribution system. The requirements are found in the Interconnection Agreement. To complete the process for a net metering interconnection, please follow the steps below: 1. Complete and submit the following to Rocky Mountain Power: Interconnection Agreement including the Application for Net Metering Interconnection The inverter specification sheet For systems larger than 10 kW, a simple one-line diagram showing • The location of Rocky Mountain Power’s meter • The location of the disconnect switch 2. Rocky Mountain Power will review your agreement and application and send you a written notification of approval either by mail or e-mail 3. Install the net metering system after you receive the written approval of your Interconnection Agreement and Application for Net Metering from Rocky Mountain Power 4. Obtain an inspection of your net metering system by the local city or county electrical inspector 5. Submit the electrical inspector’s approval to Rocky Mountain Power 6. Turn on your net metering system after Rocky Mountain Power provides you written notification the interconnection work has been completed and the net meter installed Return completed documents to: Rocky Mountain Power Customer Generation P.O. Box 25308 Salt Lake City, Utah 84125-0308 Or Email to: [email protected] Thank you for your interest in the net metering program. If you have questions, please call us toll free at 1-888-221-7070 and ask for a net metering specialist. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 1 of 27 Service ID#:___________ Request #: ___________ INTERCONNECTION AND NET METERING SERVICE AGREEMENT FOR NET METERING FACILITY LEVEL 3 INTERCONNECTION UP TO 2 MW NAMEPLATE CAPACITY This Interconnection and Net Metering Service Agreement (“Agreement”) is made and entered into this ____ day of _____________, 20___, by and between ____________________________, an electric customer (“Customer”), and PacifiCorp, dba Rocky Mountain Power (“Rocky Mountain Power”), a Corporation organized and existing under the laws of the State of Oregon. Customer and Rocky Mountain Power each may be referred to as a “Party”, or collectively as the “Parties”. Recitals: Whereas, Customer has installed or intends to install a Net Metering Facility qualifying for “Net Metering,” Utah Rate Schedule No. 135A (“Schedule 135A”), as given in Rocky Mountain Power’s currently effective tariff as filed with the Public Service Commission of Utah (“Commission”), on or adjacent to Customer’s premises located at ____________________________, Utah, for the purpose of generating electric energy; Whereas, the Net Metering rate schedule may be amended from time to time, and the Public Service Commission may alter the charge, credit, and ratemaking structure applicable to Net Metering customers pursuant to Utah Code § 54-15-105.1; Whereas, Customer represents to Rocky Mountain Power that Customer either owns or leases its Net Metering Facility qualifying for Schedule 135A, or meets the exemption requirements set forth in Utah Code § 54-2-1.16(d) because it is a county, municipality, city, town, other political subdivision, local district, special service district, state institution of higher education, school district, charter school, or any entity within the state system of public education; or an entity qualifying as a charitable organization under 26 U.S.C. Sec. 501(c)(3) operated for religious, charitable, or educational purposes that is exempt from federal income tax and able to demonstrate its tax-exempt status; Whereas, Customer desires to interconnect the Net Metering Facility with Rocky Mountain Power’s distribution system consistent with the Application completed by Customer on _____________ ____, 20___, as described in as described in Appendix C (“Application”) of this Agreement; and Whereas, Customer, using its Net Metering Facility, intends to offset part or all of its electrical requirements supplied by Rocky Mountain Power. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 2 of 27 Now, therefore, in consideration of and subject to the mutual covenants contained herein, the Parties agree as follows: Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 3 of 27 Article 1. Scope and Limitations of Agreement 1.1 Scope The Agreement shall be used for all Level 3 Applications according to the procedures set forth in Utah Administrative Rule R746-312, as may be amended from time to time (“Rule”). The Rule can be viewed at www.psc.utah.gov. The Agreement establishes standard terms and conditions approved by the Public Service Commission of Utah (“Commission”) under which the Net Metering Facility with an Electric Nameplate Capacity of 2 MW or smaller as described in Appendix C will interconnect to, and operate in parallel with, Rocky Mountain Power’s system. 1.2 Definitions Terms with initial capitalization, when used in this Agreement, shall have the meanings indicated or as specified in the Rule Section R746-312-2 and, to the extent this Agreement conflicts with the Rule, the Rule shall take precedence. 1.3 Other Agreements Nothing in this Agreement is intended to affect any other agreement between Rocky Mountain Power and Customer or any other Interconnection Customer. However, in the event that the provisions of the Agreement are in conflict with the provisions of any Rocky Mountain Power Tariff, as may be amended from time to time the Rocky Mountain Power Tariff, as may be amended from time to time, shall control. 1.4 Responsibilities of the Parties 1.4.1 The Parties shall perform all obligations of the Agreement in accordance with all applicable laws and regulations. 1.4.2 Customer will construct, own, operate, test, and maintain its Net Metering Facility in accordance with the Agreement, IEEE Standards (available at the following link: http://standards.ieee.org/index.html), National Electric Code Standards (available for purchase at http://standards.ieee.org/faqs/NESCFAQ.html#q8), Utah state building codes, the Rule (available at the following link: http://www.dopl.utah.gov/programs/ubc/), and other applicable standards required by the Commission, as may be amended from time to time. 1.4.3 Each Party shall be responsible for the safe installation, maintenance, repair and condition of their respective lines and equipment on their respective sides of the Point of Common Coupling. Each Party shall provide Interconnection Facilities that adequately protect the other Party’s facilities, personnel and other persons from damage and injury. The allocation of responsibility for the design, Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 4 of 27 installation, operation, maintenance and ownership of Interconnection Facilities is prescribed in the Rule, including but not necessarily limited to R746-312-4. 1.4.4 Customer is responsible for protecting the generating equipment, inverters, protective devices, and other system components from damage from the normal and abnormal conditions and operations that occur on Rocky Mountain Power’s system in delivering and restoring power; and is responsible for ensuring that the Net Metering Facility equipment is inspected, maintained, and tested in accordance with the manufacturer’s instructions to ensure that it is operating correctly and safely. 1.4.5 Customer shall obtain Rocky Mountain Power’s approval of the Application prior to commencing parallel operation of its interconnected Net Metering Facility. 1.4.6 Customer is responsible for all costs associated with its Net Metering Facility. 1.5 Parallel Operation and Maintenance Obligations Once the Net Metering Facility has been authorized to commence parallel operation by an approved Application, and execution of this, Customer will abide by all written provisions for operations and maintenance as required by the Rule and Rocky Mountain Power’s tariffs, including but not necessarily limited to R746-312-4 and Schedule 135A or its successor tariff(s). 1.6 Results of System Impact Study Rocky Mountain Power completed a System Impact Study on_____________ ____, 20___. The System Impact Study shows the following minor modifications or substantial modifications (Rocky Mountain Power to circle appropriate option) are necessary to Customer’s Net Metering Facility prior to interconnecting with Rocky Mountain Power’s system: Description of necessary minor modifications_____________________________________________________________ __________________________________________________________. Rocky Mountain Power estimates, in good faith, that these minor modifications/ substantial modifications (Rocky Mountain Power to circle appropriate option) will cost $__________. This is a non-binding estimate that will provide break down of costs:___________________________________________________________________ ___________________________________________________________ Customer shall pay the actual installed cost of the minor modifications or substantial modifications needed to interconnect the Net Metering Facility to Rocky Mountain Power’s system. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 5 of 27 1.7 Results of Interconnection Facilities Study << to be filled in upon completion of Interconnection Facilities Study, if one is conducted. Otherwise, the text should read “This Section intentionally left blank.”>> Rocky Mountain Power completed a Facilities Study on _____________ ____, 20___. The Facilities Study shows the following equipment, engineering, procurement and construction work (including overheads) are necessary to implement the conclusion of the System Impact Study for Customer’s Net Metering Facility to safely interconnect to Rocky Mountain Power’s system and the time required to build and install those facilities: Rocky Mountain Power estimates, in good faith, that these modifications will cost $______. This is a non-binding estimate for provide break down of costs____________________________________________________________________ ___________________________________________________________. Customer shall pay the actual installed cost of the facilities needed to interconnect as identified in the Facilities Study. Rocky Mountain Power estimates these facilities can be installed by_____________ ____, 20___. 1.8 Metering Rocky Mountain Power shall install, own and maintain, at its sole expense, a kilowatt-hour meter(s) and associated equipment to measure the flow of energy in each direction, unless otherwise authorized by the Commission. Customer shall provide, at its sole expense, adequate facilities, including, but not limited to, a current transformer enclosure (if required), meter socket(s) and junction box, for the installation of the meter and associated equipment. Customer hereby consents to the installation and operation by Rocky Mountain Power and at Rocky Mountain Power’s expense, of one or more additional meters to monitor the flow of electricity in each direction. Such meters shall be located on the premises of Customer. 1.9 Power Quality Customer will design its Net Metering Facility to maintain a composite power delivery at continuous rated power output at the Point of Common Coupling that meets the requirements set forth in IEEE 1547, as required by the Rule, R746-312-4. 1.10 Net Metering Facility Inspection 1.10.1 Building Code Inspection Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 6 of 27 Prior to operation in parallel with Rocky Mountain Power’s system, the Net Metering Facility must be inspected by a local building code official to ensure compliance with applicable local codes. 1.10.2 Inspection by Rocky Mountain Power Rocky Mountain Power may inspect the Net Metering Facility and its component equipment, and the documents necessary to ensure compliance with the Rule. Customer shall notify Rocky Mountain Power prior to placing the Net Metering Facility in service, and Rocky Mountain Power shall have the right to have personnel present on the in-service date. If the Net Metering Facility is subsequently modified in order to increase its gross power rating, Customer must notify Rocky Mountain Power by submitting a new application specifying the modifications in accordance with the level of review required for that application. 1.11 Anticipated Start Date Customer must include an anticipated start date for operation of its Net Metering Facility in the Application. 1.12 Net Metering Facility Testing and Maintenance Customer shall conduct maintenance and testing as set forth in the Rule, including but not necessarily limited to R746-312-14. 1.12.1 Customer shall conduct any manufacturer-recommended testing or maintenance at its expense. 1.12.2 Customer shall conduct any post-installation testing, at its expense, necessary to ensure compliance with IEEE standards as set forth in the Rule or to ensure safety. This includes replacing a major equipment component that is different from the originally installed model. 1.12.3 When Customer performs maintenance or testing in accordance with the Rule, it must retain written records documenting the maintenance and results of the testing for three (3) years. 1.12.4 Rocky Mountain Power shall have the right to inspect Customer’s Net Metering Facility after interconnection approval is granted, at reasonable hours and with reasonable prior notice to Customer. If Rocky Mountain Power discovers that the Net Metering Facility is not in compliance with the Rule, Rocky Mountain Power may require Customer to disconnect the Net Metering Facility until compliance is achieved. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 7 of 27 1.13 Removal of Facility Customer shall immediately notify Rocky Mountain Power if Customer removes or ceases to operate the Net Metering Facility. Article 2. 2.1 Review, Inspection, Testing, Disconnect Switch and Signage, and Right of Access Review After determining Customer’s interconnection request is complete, in accordance with the Rule, R746-312-10, Rocky Mountain Power will conduct meetings and studies and provide estimates set forth in the Rule, R746-312-10. Upon completion of the required studies and receipt of agreement of the Customer to pay for required interconnection facilities and upgrades, Rocky Mountain Power will approve the Interconnection request. 2.2 Equipment Testing and Inspection Customer must notify Rocky Mountain Power of the anticipated testing and inspection date of the Net Metering Facility at least ten (10) business days prior to testing, either through submittal of the Agreement, a notice of completion, or in a separate notice. Within ten (10) business days after receipt of such required documentation, Rocky Mountain Power will conduct any required inspection or witness test of the Net Metering Facility, set the new meter if required, approve the Interconnection, and provide written notification to the Customer of the final interconnection authorization/approval and that the generating facility is authorized/approved for parallel operation. If Rocky Mountain Power and Customer, by mutual agreement, select a date for the required inspection and/or witness testing which would prevent Rocky Mountain Power from providing final written notice within ten (10) days of receipt of required documentation as specified above, and if the Net Metering Facility satisfactorily passes the required inspection and/or witness tests, Rocky Mountain Power shall notify Customer within three (3) business days after the tests and/or inspections that either the interconnection is approved and the Net Metering Facility may begin operation or the interconnection facilities study identified necessary construction that has not been completed, the date upon which the construction will be completed and the date when the Net Metering Facility may begin operation or state any other reason why the commissioning tests are not satisfactory. If the witness tests are not satisfactory, Customer must resolve any deficiencies within sixty (60) business days or other time period as mutually agreed by the Parties. 2.3 Disconnect Switch and Signage Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 8 of 27 Customer shall comply with the Rule regarding disconnect switches, R746-312-4. The disconnect switch may be located more than 10 feet from the public utility meter if permanent instructions in letters of appropriate size are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve in writing the location of the disconnect switch prior to the installation of the Net Metering Facility. 2.4 Right of Access As provided in the Rule, R746-312-4, Rocky Mountain Power shall have access to any required disconnect switch at the Net Metering Facility at all times. Rocky Mountain Power will provide reasonable notice to Customer when possible prior to using its right of access. Additionally, as provided in Rocky Mountain Power Utah Rule 6, or its successor tariff, Rocky Mountain Power shall have access to the metering equipment. Article 3. 3.1 Effective Date, Term, Termination and Disconnection Effective Date The Agreement shall become effective upon execution by the Parties. 3.2 Term of Agreement The Agreement will become effective on the Effective Date and will remain in effect unless terminated in accordance with provisions of this Agreement, or Order by the Commission. 3.3 Termination No termination will become effective until the Parties have complied with all applicable laws and clauses of this Agreement applicable to such termination. 3.3.1 Customer may terminate this Agreement at any time by giving Rocky Mountain Power twenty (20) business days written notice. 3.3.2 Either Party may terminate this Agreement after default pursuant to Article 5.4 of this Agreement. 3.3.3 The Commission may Order termination of this Agreement. 3.3.4 Upon termination of this Agreement, Customer shall disconnect the Net Metering Facility from Rocky Mountain Power’s system. The termination of this Agreement will not relieve either Party of its liabilities and obligations, owed or continuing at the time of termination. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 9 of 27 3.4 3.3.5 If Customer removes the Net Metering equipment at the Net Metering Facility or ceases to operate its Net Metering Facility at the premise listed in the Application, this Agreement will be immediately terminated. 3.3.6 The provisions of this Article shall survive termination or expiration of this Agreement. Temporary Disconnection 3.4.1 Rocky Mountain Power may temporarily disconnect the Net Metering Facility from Rocky Mountain Power’s system for so long as reasonably necessary without prior notice to Customer in the event one or more of the following conditions or events occurs: 3.4.1.1 Emergencies or to address maintenance requirements for Rocky Mountain Power’s system. 3.4.1.2 Hazardous conditions existing on Rocky Mountain Power’s system which may affect the safety of the general public or Rocky Mountain Power employees due to the operation of the Net Metering Facility or protective equipment as determined by Rocky Mountain Power. 3.4.1.3 Adverse electrical effects on the electrical equipment of Rocky Mountain Power’s other electric customers caused by the Net Metering Facility as determined by Rocky Mountain Power. 3.4.2 In the event that no disconnect switch is installed, Rocky Mountain Power may physically disconnect all service to the Customer or all service to the premises where the Net Metering Facility is located, or both. 3.4.3 To the extent practicable, Rocky Mountain Power will give prior notice of any temporary disconnection of the Net Metering Facility. If Rocky Mountain Power is unable to give prior notice, Rocky Mountain Power will provide notice including an explanation of the condition necessitating the disconnection at the time of disconnection. 3.4.4 Under emergency conditions, Rocky Mountain Power shall notify Customer promptly when Rocky Mountain Power becomes aware of an emergency condition that may reasonably be expected to affect the Net Metering operation. Customer shall notify Rocky Mountain Power promptly when it becomes aware of an emergency condition that may reasonably be expected to affect Rocky Mountain Power’s system. To the extent the information is known, the notification shall describe the emergency condition, the extent of any damage or Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 10 of 27 deficiency, the expected effect on the operation of both Parties’ facilities and operations, the anticipated duration, and the necessary corrective action. 3.4.5 Customer shall make reasonable efforts to provide notice of interruption of Net Metering Facility operation for safety and/or reliability reasons prior to the interruption unless an emergency occurs. Emergency interruptions or temporary terminations are subject to Section 3.4.4 above. 3.4.6 Rocky Mountain Power shall use reasonable efforts to provide Customer with prior notice of forced outages to effect immediate repairs to Rocky Mountain Power’s system. If prior notice is not given, Rocky Mountain Power, shall, upon request, provide Customer written documentation after the fact explaining the circumstances of the disconnection. 3.4.7 Customer must provide Rocky Mountain Power notice and obtain Rocky Mountain Power’s written approval before Customer may modify its Net Metering Facility in order to increase the electric output of the Net Metering Facility. If Customer makes any material change without prior written authorization of Rocky Mountain Power, Rocky Mountain Power will have the right to temporarily disconnect the Net Metering Facility until Rocky Mountain Power has had an opportunity to review the change(s) made to determine whether they are acceptable. If any system modifications or other equipment installations are deemed necessary by Rocky Mountain Power to accommodate the modified Net Metering Facility, Customer shall submit the appropriate net metering application at that time. 3.4.8 The Parties shall cooperate with each other to restore the Net Metering Facility, Interconnection Facilities, and Rocky Mountain Power’s system to their normal operating state as soon as reasonably practicable following any disconnection pursuant to this section. Article 4. 4.1 Cost Responsibility Application Fee Customer shall bear the cost of any Application fee provided for in the Rule, R746-31213(2), or as otherwise approved by the Commission. Customer shall remit payment with the Application as calculated in Appendix C, the Application, Section 2.C. 4.2 Net Metering Facility and Interconnection Equipment Customer shall be responsible for all costs, including overheads, associated with procuring, installing, owning, operating, maintaining, repairing, and replacing its Net Metering Facility, any associated equipment package, and any associated interconnection Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 11 of 27 equipment or interconnection facilities required to be installed on Customer’s side of the Point of Common Coupling as detailed in the results of the System Impact Study or Facilities Study, or both. 4.3 Minor Modifications This section shall apply if the System Impact Study performed pursuant to Section 1.6 above shows that minor modifications to the electric distribution system are required to enable the interconnection to be made consistent with safety, reliability and power quality standards applicable to Level 3 interconnection reviews. The Customer shall pay for the cost to procure, install, and construct, operate, maintain, repair and replace any such minor modifications. A description of the minor modifications may be found in Appendix A. The cost of the minor modifications as described on Appendix A shall be $_______. Customer shall remit payment for minor modifications prior to Rocky Mountain Power commencing the work required for the minor modifications. 4.4 4.5 Substantial Modifications 4.4.1 This section shall apply if the System Impact Study performed pursuant to Section 1.6 above or the Facilities Study performed pursuant to Section 1.7 above, or both, shows that substantial modifications to the electric distribution system are required to enable the interconnection to be made consistent with safety, reliability and power quality standards applicable to Level 3 interconnection reviews. The Customer shall pay for the cost to procure, install, and construct, operate, maintain, repair and replace any such substantial modifications. A description of the substantial modifications may be found in Appendix B. The cost of the substantial modifications as described on Appendix B shall be $_______. 4.4.2 Before beginning substantial modifications to accommodate the interconnection of the Net Metering Facility to Rocky Mountain Power’s system, Rocky Mountain Power may require that Customer pay a deposit of not more than 50% of the estimated cost of procuring, installing and constructing equipment and facilities to be procured, installed or constructed by Rocky Mountain Power. Payment Rocky Mountain Power may require progress payments from Customer or Rocky Mountain Power may wait until construction and installation of all equipment and facilities are complete and the total actual cost of such equipment and facilities has been established and then provide Customer with a statement indicating whether actual cost was more or less than the deposit paid by Customer-Generator. If actual costs exceed the deposit, Rocky Mountain Power will invoice Customer-Generator for the balance and Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 12 of 27 Customer-Generator shall pay any such invoice within 30 days of receipt. If actual costs are less than the deposit, Rocky Mountain Power will refund the difference to CustomerGenerator. Article 5. 5.1 Billing Monthly Billing The electric service charge shall be computed in accordance with the monthly billing in the currently applicable standard service tariff. Customer will be compensated for net excess energy in accordance with Schedule 135A or its successor tariff(s). Customer will be transitioned to any successor tariff immediately upon approval of that tariff by the Public Service Commission and will be subject to any charge, credit, or ratemaking structure implemented therein. 5.2 Special Conditions Customer must comply with the special conditions found in Schedule 135A or its successor tariff(s). 5.3 Aggregating Meters Aggregating Meters is allowed if certain conditions are met under the Rule, R746-312-5. Customer designates the following meters for aggregation: _______________________. In the event that the Net Metering Facility supplies more electricity to Rocky Mountain Power than the Customer uses from Rocky Mountain Power, Rocky Mountain Power will apply any credits to the next monthly bill in accordance with Utah Code § 54-15-104 and the Rule, R746-312-15. Customer shall designate the order in which to apply any credits in accordance with the Rule. <<If customer does not want to aggregate, insert “N\A” in the gray box.>> Article 6. 6.1 Assignment, Liability, Indemnity, Force Majeure, Consequential Damages and Default Assignment This Agreement may be assigned by either Party with the consent of the other Party. A Party’s consent to an assignment may not be unreasonably withheld. The assigning Party must give the non-assigning Party written notice of the assignment at least fifteen days (15) before the effective date of the assignment. The non-assigning Party must submit its objection to the assignment, if any, to the assigning Party in writing at least 5 business days before the effective date of the assignment. If a written objection is not received within that time period, the non-assigning party is deemed to consent to the assignment. 6.1.1 Exceptions to the Consent Requirement Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 13 of 27 6.1.1.1 Either Party may assign the Agreement without the consent of the other Party to any affiliate (including a merger or acquisition of the Party with another entity), of the assigning Party with an equal or greater credit rating and with the legal authority and operational ability to satisfy the obligations of the assigning Party under this Agreement. 6.1.1.2 Customer-Generator is entitled to assign the Agreement, without the consent of Rocky Mountain Power, for collateral security purposes to aid in obtaining financing for the Net Metering Facility. 6.1.1.3 For Net Metering systems that are integrated into a building facility, the sale of the building or property will result in the automatic assignment of this Agreement to the new owner who will be responsible for complying with the terms and conditions of this Agreement. 6.1.2 6.2 Any attempted assignment that violates this Article is void and ineffective. Assignment does not change or eliminate a Party’s obligations under this Agreement. An assignee is responsible for meeting the same obligations as the assigning Party. Limitation of Liability and Consequential Damages Each Party’s liability to the other Party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in its performance of this Agreement, is limited to the amount of direct damage actually incurred. Neither Party is liable to the other Party for any indirect, special, consequential, or punitive damages. 6.3 Indemnification Customer shall hold harmless and indemnify Rocky Mountain Power for all loss to third parties resulting from the operation of the Net Metering Facility, except when the loss occurs due to the negligent actions of Rocky Mountain Power. Rocky Mountain Power shall hold harmless and indemnify Customer for all loss to third parties resulting from the operation of Rocky Mountain Power’s system, except where the loss occurs due to the negligent actions of Customer. 6.4 Force Majeure 6.4.1 As used in this Agreement, a Force Majeure Event shall mean “any act of God, labor disturbance, act of the public enemy, war, acts of terrorism, insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or equipment through no direct, indirect, or contributory act of a Party, any order, Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 14 of 27 regulation, or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party’s control. A Force Majeure Event does not include an act of negligence or wrongdoing.” 6.4.2 6.5 If a Force Majeure Event prevents a Party from fulfilling any obligations under this Agreement, the Party affected by the Force Majeure Event (“Affected Party”) shall promptly notify the other Party of the existence of the Force Majeure Event. The notification must specify in reasonable detail the circumstances of the Force Majeure Event, the expected duration, and the steps that the Affected Party is taking to mitigate the effects of the event on its performance, and if the initial notification was verbal, it should be promptly followed up with a written notification. The Affected Party shall keep the other Party informed on a continuing basis of developments relating to the Force Majeure Event until the event ends. The Affected Party will be entitled to suspend or modify its performance of obligations under this Agreement (other than the obligation to make payments) only to the extent that the effect of the Force Majeure Event cannot be reasonably mitigated. The Affected Party will use reasonable efforts to resume its performance as soon as possible. The Parties shall immediately report to the Commission should a Force Majeure Event prevent performance of an action required by Rule that the Rule does not permit the Parties to mutually waive. Default 6.5.1 A Party is in default if the Party fails to perform an obligation required under this Agreement (other than the payment of money). A Party is not considered in default of this agreement if the failure to perform an obligation is caused by an act or omission of the other Party or is the result of a Force Majeure as defined in this Agreement. 6.5.2 Upon a default, the non-defaulting Party must give written notice of the default to the defaulting party. The defaulting party has sixty (60) calendar days from the receipt of the written default notice to cure the default. If the default is not capable of cure within the 60-day period, the defaulting Party must begin to cure the default within twenty (20) calendar days after receipt of the written default notice, and must continuously and diligently complete the cure within six (6) months of the receipt of the notice. 6.5.3 If a default is not cured as provided for in 6.5.2, then the non-defaulting Party is entitled to terminate the Agreement by written notice at any time until cure occurs. If the non-defaulting Party chooses to terminate this Agreement, the termination provisions in Article 3.3 apply. Alternately, the non-defaulting Party is entitled to seek dispute resolution with the Commission in lieu of termination. Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 15 of 27 Article 7. Insurance Additional liability insurance is not required as a part of the Agreement if the Net Metering Facility is in compliance with the provisions of the Application approval, the Agreement and the standards contained in Utah Code § 54-15-106. Article 8. Dispute Resolution 8.1 Nothing in this Article shall restrict the rights of any Party to file a Complaint with the Commission under relevant provisions of the Rule and applicable state law. 8.2 Pursuit of dispute resolution may not affect Customer with regard to consideration of an Interconnection Request or Customer’s queue position. Article 9. 9.1 Miscellaneous Governing Law, Regulatory Authority and Rules The validity, interpretation, and enforcement of this Agreement is governed by the laws of the State of Utah. If any provision of this Agreement conflicts with any applicable provision, as may be amended from time to time, of the Utah Code (“Code”), Utah Administrative Rules (“Rules”), or Rocky Mountain Power’s Tariffs (“Tariff”), then the applicable provision of the Code, Rules, or Tariff controls. Rocky Mountain Power must provide copies of the applicable provisions of the Code, Rules, and Tariff upon the Customer’s request. 9.2 Amendment Additions, deletions or changes to the standard terms and conditions of this Agreement will not be permitted unless they are mutually agreed to by the Parties and permitted by the Rule or permitted by the Commission for good cause shown. The Parties may amend the Agreement by a written instrument duly executed by both Parties in accordance with the provisions of the Rule and applicable Commission Orders and provisions of the laws of the State of Utah. 9.3 No Third Party Beneficiaries The Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, or where permitted, their successors in interest or their assigns. 9.4 Waiver Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 16 of 27 9.5 9.4.1 The failure of a Party to the Agreement to insist, on any occasion, upon strict performance of any provision of the Agreement, will not be considered a waiver of any obligation, right, or duty of, or imposed upon, such Party. 9.4.2 The Parties may agree to mutually waive a Section of this Agreement without the Commission’s approval in accordance with the Rule. 9.4.3 Any waiver at any time by either Party of its rights with respect to the Agreement shall not be deemed a continuing waiver or a wavier with respect to any other failure to comply with any other obligation, right, or duty of the Agreement. Termination or default of this Agreement for any reason by Customer shall not constitute a waiver of the Customer’s legal rights to obtain interconnection from Rocky Mountain Power. Any request for waiver of the Agreement or any provisions thereof shall be provided in writing. Entire Agreement The Agreement, including any supplementary attachments that may be necessary, constitutes the entire Agreement between the Parties with reference to the subject matter hereof, and supersedes all prior and contemporaneous understandings or agreements, oral or written, between the Parties with respect to the subject matter of the Agreement. There are no other agreements, representations, warranties, or covenants that constitute any part of the consideration for, or any condition to, either Party’s compliance with its obligations under the Agreement. 9.6 Multiple Counterparts This Agreement may be executed in one or more counterparts, whether electronically or otherwise, each of which is deemed an original but all constitute one and the same instrument. 9.7 No Partnership The Agreement will not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the Parties or to impose any partnership obligation or partnership liability upon either Party. Neither Party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other Party. 9.8 Severability If any provision or portion of the Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction or other governmental authority, (1) such portion or provision shall be deemed separate and Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 17 of 27 independent, (2) the Parties shall negotiate in good faith to restore insofar as practicable the benefits to each Party that were affected by such ruling, and (3) the remainder of the Agreement shall remain in full force and effect. 9.9 Subcontractors Nothing in the Agreement shall prevent a Party from using the services of any subcontractor, or designating a third party agent as one responsible for a specific obligation or act required in the Agreement (collectively subcontractors), as it deems appropriate to perform its obligations under the Agreement; provided, however, that each Party will require its subcontractors to comply with all applicable terms and conditions of the Agreement in providing such services and each Party will remain primarily liable to the other Party for the performance of the subcontractor. 9.10 9.9.1 The creation of any subcontract relationship shall not relieve the hiring Party of any of its obligations under the Agreement. The hiring Party shall be fully responsible to the other Party for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been made. Any applicable obligation imposed by the Agreement upon the hiring Party shall be equally binding upon, and will be construed as having application to, any subcontractor of such Party. 9.9.2 The obligations under this Article will not be limited in any way by any limitation of a subcontractor’s insurance. Reservation of Rights Rocky Mountain Power shall have the right to make a unilateral filing with the Commission to modify this Agreement with respect to any rates, terms and conditions, charges, classifications of service, rule, regulation or any other applicable provision of the Federal Power Act and the Commission’s rules and regulations thereunder, and Customer shall have the right to make a unilateral filing with Commission to modify this Agreement under any applicable provision of the Federal Power Act and the Commission’s rules and regulations; provided that each Party shall have the right to protest any such filing by the other Party and to participate fully in any proceeding before the Commission in which such modifications may be considered. Nothing in this Agreement shall limit the rights of the Parties, except to the extent that the Parties otherwise agree as provided herein. Article 10. 10.1 Notices and Records General Unless otherwise provided in the Agreement, any written notice, demand, or request required or authorized in connection with the Agreement shall be deemed properly given if delivered in person, delivered by recognized national courier service, sent by first class Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 18 of 27 mail, postage prepaid, or by electronic mail if an electronic mail address is provided below to the person specified below: If to Customer: Customer: ______________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: ________________________________ State: _________________ Zip: ________ Phone: (___) _______________________ Fax: (____) ___________________________ Email: __________________________________________________________________ If to Rocky Mountain Power: By Mail: Rocky Mountain Power Attention: Net Metering Group P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 Or By email: [email protected] 10.2 Records Rocky Mountain Power will maintain a record of all Interconnection Agreements and related Attachments, if any, for as long as the interconnection is in place. Rocky Mountain Power will provide a copy of these records to Customer within fifteen (15) Business Days upon written request. 10.3 Billing and Payment Billings and payments shall be sent to the addresses below (complete if different from Section 9.1 above): If to Customer: Customer: ______________________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: _______________________________ State: _______________ Zip: ___________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 19 of 27 10.4 Designated Operating Representative The Parties will designate an operating representative each to conduct the communications that may be necessary or convenient for the administration of the operations provisions of the Agreement. This person will also serve as the point of contact with respect to operations and maintenance of the Party’s facilities (complete if different from Section 9.1 above): Customer’s Operating Representative: Name: __________________________________________________________________ Attention (if applicable): ___________________________________________________ Address: ________________________________________________________________ City: ______________________________ State: ________________ Zip: ___________ Phone: (____) _______________________ Fax: (____) __________________________ Email: __________________________________________________________________ 10.5 Changes to the Notice Information Either Party may change this notice information by giving five (5) business days written notice prior to the effective date of the change. Article 11. Signatures IN WITNESSETH WHEREOF, the Parties have caused the Agreement to be executed by their respective duly authorized representatives. For the Customer: For Rocky Mountain Power: By: _____________________________ By: _____________________________ Name: ___________________________ Name: ___________________________ Title: ____________________________ Title: ____________________________ Date: ____________________________ Date: ____________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 20 of 27 Appendix A Minor Modifications Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 21 of 27 Appendix B Substantial Modifications Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 22 of 27 APPENDIX C ROCKY MOUNTAIN POWER UTAH NET METERING APPLICATION LEVEL 3 REVIEW CAPACITY OF 2 MW OR LESS Section 1: For Rocky Mountain Power Use Only Customer Name: _________________________________________________________________________ Service Address: _________________________________________________________________________ City, State, Zip: ___________________________________________________________________________ Customer Account No. and Request No.: _______________________________________________________ Interconnection Agreement Acknowledgement (Date): ____________________________________________ Application fee: $______________________________ Date Paid ___________________________________ Section 2: To Be Completed By Customer A. Applicant Information Name: ___________________________________________________________________________ Mailing Address: __________________________________________________________________ City: __________________________________________State: _________ Zip Code: ____________ Site Street Address (if different from above): _____________________________________________ City: __________________________________________State: __________ Zip Code: ___________ Daytime Phone: (_____) ________________________ Fax: (_____) __________________________ Email: ____________________________________________________________________________ B. System Information System Type: Solar Wind Hydro Other (Specify): _________________________ Generation Nameplate Capacity: ______________ kW (Combine DC total of wind turbines, solar panels, etc. or AC rating if an inverter is not utilized) Inverter Manufacturer: ___________ Model: ________ Number of Inverters: _____ Rating: _____ kW Manufacturer Nameplate Inverter Total AC Capacity Rating: _________ kW Inverter(s): Single Phase Three Phase Multiple Single Phase Connected on Poly-phase (three phase) system – (Attach Inverter and Panel Technical Specifications Sheets) Type: Induction Type of Service: Inverter Single Phase Synchronous __________________Other Three Phase Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 23 of 27 If Three Phase Transformer: Indicate Type: Wye Delta Indicate Voltage and Number of Service Wires: 120/208 Volts, 4 wire 120/240 Volts, 4 wire 277/480 Volts, 4 wire Other ___________ ________________________________________________________________________________ Other Information:__________________________________________________________________ _________________________________________________________________________________ Self Contained Location: ____________________________________________________________ Outdoor Manual AC Disconnect Switch Location (show Disconnect Switch and Rocky Mountain Power Meter Location on Site Plan), unless exempt under Utah Administrative Rule 746-312-4(2): __________________________________________________________________________________ System Location (show all protective devices on One Line Diagram):___________________________ Will the net metering facility interconnect to a switchgear? Yes No Customer must post metal or plastic engraved signage indicating on-site generation in accordance with National Electric Code. The signage must be permanent and located adjacent to the meter base and disconnect switch noting “Parallel Generation on Site” and identifying the manual disconnect switch with the words “Manual Disconnect for Parallel Generation.” _____ (Initial Here) One Line Diagram Attached: Installation Test Plan attached: Yes Yes No Site Plan Attached: Yes No No Anticipated Operational Date of Net Metering Facilities: _____________________________________ (Rocky Mountain Power must be notified at least ten (10) business days prior to starting operation.) Net metering facility available fault duty at the point of common coupling: ________________ (A Rocky Mountain Power Engineer may contact you for additional information) Electrical Inspection approval date (attach copy or provide to utility when obtained):__________ C. Application Fees $ 100.00 Base + $ __________ $ __________ $2.00 x _____ kW of net metering facility’s capacity TOTAL APPLICATION FEE D. Additional Information 1. An equipment package will be considered certified for interconnected operation if it has been submitted by a manufacturer to a nationally recognized testing and certification laboratory, and Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 24 of 27 2. 3. 4. 5. 6. 7. has been tested and listed by the laboratory for continuous interactive operation with an electric distribution system in compliance with the applicable IEEE and UL 1741 standards, as set forth in the Rule. If the equipment package has been tested and listed as an integrated package, which includes a generator or other electric source, the equipment package will be deemed certified, and Rocky Mountain Power will not require any further design review, testing or additional information. If the equipment package includes only the interface components (switchgears, inverters, or other interface devices), an interconnection applicant must show that the generator or other electric source being utilized with the equipment package is compatible with the equipment package and consistent with the testing and listing specified for the package. If the generator or electric source being utilized with the equipment package is consistent with the testing and listing performed by the nationally recognized testing and certification laboratory, the equipment package will be deemed certified and Rocky Mountain Power will not require further design review, testing or additional equipment. A net metering facility must be equipped with metering equipment that can measure the flow of electricity in both directions, comply with ANSI C12.1 standards and Utah Administrative Rule R746-312. Rocky Mountain Power will install the required metering equipment at Rocky Mountain Power’s expense. Rocky Mountain Power will not be responsible for the cost of determining the rating of equipment owned by the customer-generator or of equipment owned by other local customers. Customer may operate the Net Metering Facility temporarily for testing and obtaining inspection approval. Customer shall not operate the Net Metering Facility in continuous parallel without an executed Interconnection and Net Metering Service Agreement, and approval from Rocky Mountain Power. Customer will pay to Rocky Mountain Power at the time of application the applicable Application fee of $100.00 plus $2.00 per kilowatt of the net metering facility’s capacity; and costs of modifications or additional review as set forth in Utah Administrative Rule R746-312 prior to commencement of work. E. Customer Acknowledgment I certify that the information provided in this Application is true. I will provide Rocky Mountain Power a copy of the signed government electrical inspection approval document when obtained, if not already provided with this Application. I agree to abide by the terms of this Application and I agree to notify Rocky Mountain Power thirty (30) days prior to modification or replacement of the System’s components or design. Any such modification or replacement may require submission of a new Application to Rocky Mountain Power. I agree not to operate the Net Metering Facility in parallel with Rocky Mountain Power, except temporarily for testing and obtaining inspection approval, until this Application is approved by Rocky Mountain Power, until this agreement is signed by both parties, and until I have provided Rocky Mountain Power with at least five (5) days notice of anticipated start date. Customer or Applicant Signature & Date: ____________________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 25 of 27 Please send completed application to: Rocky Mountain Power Attention: Customer Generation P.O. Box 25308 Salt Lake City, UT 84125-0308 Phone: (888) 221-7070 or Please scan the completed application and email [email protected] Section 3. To be completed by System Installer Installation Contractor Information/Hardware and Installation Compliance Installation Contractor (Company Name): _______________________________________________________ Contractor's License No.: ____________________________ Proposed Installation Date: _________________ Mailing Address: __________________________________________________________________________ City: ____________________________________________ State: __________ Zip Code: _______________ Daytime Phone: _________________ Fax: _________________Email: ______________________________ For inverter-controlled system, meets IEEE Standards and UL 1741 Inverters, Converters, and Controllers for use in Independent Power Systems as set forth in the Rule: Yes No For induction or synchronous device, meets IEEE Standard 1547 and IEEE/ANSI Standard C37.90 requirements Yes No as set forth in the Rule: If Photovoltaic System, System must be installed in compliance with IEEE Standards, Recommended Practice for Utility Interface of Photovoltaic Systems. All System types must be installed in compliance with applicable requirements of local electrical codes, Rocky Mountain Power and the National Electrical Code® (NEC) and must use an anti-islanding inverter. The System must include a manual, lockable, load-break (disconnect) switch, unless exempt under Utah Administrative Rule 746-312-4(2), accessible at all times to Rocky Mountain Power personnel and located within 10 feet of Rocky Mountain Power’s meter. The disconnect switch may be located more than 10 feet from Rocky Mountain Power’s meter if permanent instructions are posted at the meter indicating the precise location of the disconnect switch. Rocky Mountain Power must approve the location of the disconnect switch prior to the installation of the net metering facility. If the Net Metering Facility is designed to provide uninterruptible power to critical loads, either through energy storage, back-up generator, or the generation source, the Net Metering Facility will include a parallel blocking scheme for this backup source. This function may be integral to the inverter manufacturer’s packaged system. Does the Net Metering Facility include a parallel blocking scheme: Yes No Signed (Contractor): ________________________________________ Date: _________________ Name (Print): _______________________________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 26 of 27 Section 4. To be completed by Rocky Mountain Power: A. If approving the application: Rocky Mountain Power does not, by approval of this Application, assume any responsibility or liability for damage to property or physical injury to persons. Further, this Application does not constitute a dedication of the owner's System to Rocky Mountain Power electrical system equipment or facilities. Customer-Generator entered into an Interconnection and Net Metering Service Agreement with Rocky Mountain Power on the ____ day of _____, 20__. Customer-Generator satisfactorily passed Witness Tests on the ____ day of _________, 20__. (Rocky Mountain Power may waive Witness Tests at its option; if tests are waived initial here ____) This Application is approved by Rocky Mountain Power on this ______ day of ______________, 20__ Rocky Mountain Power Representative Name (Print): _______________________________________ Signed (Rocky Mountain Power Representative): ________________________ Date: ____________ B. If denying the application: This application is denied by Rocky Mountain Power on this ______ day of ____________, 20__ for the following reason(s): _______________________________________________________________ Rocky Mountain Power Representative Name (Print): _______________________________________ Signed (Rocky Mountain Power Representative): ___________________________ Date: __________ Section 5. To be completed by Rocky Mountain Power Meterman Customer Account No. ______________________________ Site ID No. : ___________________________ Served from Facility Point No.: ________________________________ New Net Meter No.: ___________________________ Date net meter installed: _______________________ Manual disconnect device in proper location and permanent signage in place: Yes No Signature/Title: ________________________________________ Date: ____________________________ Rocky Mountain Power Interconnection and Net Metering Service Agreement Utah Form Ver. 3 54 - Level 3 Page 27 of 27
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