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13.08.315 – Interconnection services for on-site generation facilities

Section 1:        St. Charles Municipal Electric Utility (SCMEU) shall make available, upon request, interconnection services to any customer that meets the required guidelines. Interconnection services in this policy refers to on-site generating facilities (as defined in the Customer Self-Generation Net Metering Policy) connected to the SCMEU electric distribution system in a manner that will allow excess electricity generated by the eligible on-site generating facility to be safely delivered onto the SCMEU electric distribution system.

Section 2:        Guidelines for interconnecting to the utility system are as follows;

  1. Only generating facilities that have been approved by the Public Works Manager of Electric Services shall be interconnected with the SCMEU electric distribution system.
  2. All interconnections shall comply with codes established by National Electrical Code (NEC), National Electrical Safety Code (NESC), Institute of Electrical and Electronics Engineers (IEEE), and Underwriters Laboratories (UL) as they may be amended from time to time.
  3. Construction and development of generating facilities is required to follow all applicable building codes, permitting processes, and zoning rules.
  4. SCMEU is under no obligation to purchase energy supplied to the utility under this standard. This does not preclude the customer meeting applicable standards that would allow the customer to supply power onto the SCMEU distribution system and receive credit for such energy under City of St. Charles’ Customer Self-Generation Net Metering Policy or the Public Utility Regulatory Policies Act (PURPA).
  5. SCMEU may require periodic testing of systems. All test reports shall be submitted to the SCMEU Engineering Department after completion of the testing.
  6. SCMEU may charge reasonable fees associated with the implementation and application of this policy.

Section 3:        The terms and conditions for any and all such interconnections are set forth in the attached Customer-Owned Facilities Interconnection Agreement, which may be reasonably adapted by SCMEU staff from time to time in implementing this policy and the Customer Self-Generation Net Metering Policy.

Section 4:        SCMEU staff shall develop such documents as needed to implement this policy from time to time.

Customer-Owned Generating

FACILITIES INTERCONNECTION AGREEMENT

This Agreement, (“Agreement”) is entered into by and between the St. Charles Municipal Electric Utility, (“Utility”) and __________________________ (“Customer”).  Customer and Utility are referenced in this Agreement collectively as “Parties” and individually as “Party.”

Recitals

            WHEREAS, the St. Charles Municipal Electric Utility (SCMEU) is a municipality-owned electric utility engaged in the retail sale of electricity in the state of Illinois;

            WHEREAS, the interconnection Customer is proposing to install, own, and operate an electric generating facility, or is proposing a generating capacity addition to an existing generating facility that qualifies under the SCMEU’s Customer Self-Generation Interconnection Policy adopted March 7, 2022 consistent with the Electric Service Application which includes the proposed interconnection connection and the Building and Code Permit form completed by the interconnection Customer on ( filed___________ date).                    

Agreement

            NOW, THEREFORE, in consideration of the covenants and promises herein, the Parties mutually agree as follows:

Article I                                  Scope and Limitation of Agreement

  1.  

1.1   Scope of Agreement. This Agreement governs the terms and conditions under which the Customer’s generating facility will interconnect with, and operate in parallel with, the distribution system. Terms used in this Agreement and not otherwise defined shall have the respective meaning given to them in the SCMEU Customer Self-Generation Interconnection Policy.

1.2  Eligibility. Interconnection to the electric system shall be granted only to new or existing Customers in good standing under SCMEU’s terms, conditions, rules, regulations, and provisions for electric service.  The Interconnection Agreement shall be between the Customer who owns a generating facility and SCMEU.

1.3  Request. A Customer desiring to interconnect a qualifying generating facility must permit the installation of the facility, or modifications of an existing facility, through the City’s Building and Code Enforcement Division. All permit application documents, which must also include an  Interconnection Request Application Form and an Electric Service Application Form, must be permitted and processed through the City’s Building and Code Enforcement Division which will then distribute documents and plans to SCMEU and other appropriate divisions for review and approval. All applicable fees required for the permit must be paid upon approval of the permit for the permit to be released and in effect. The Interconnection Agreement processing fee for systems sized ­­­­­25 kW AC and under is $ 200.00.  The processing fee for systems sized greater than 25 kW AC is $300.00.  The Utility may require additional details or clarifications as needed to properly evaluate the application.

1.4  System Effects. SCMEU will analyze the overall impact of the proposed generating facility on the distribution system.  Such analyses will be based on Good Utility Practice to determine thermal effects, voltage fluctuations, power quality, system stability, and other parameters.

1.5  System Upgrades. As a result of the analysis described in section 1.4, SCMEU will provide the Customer with a cost estimate and projected timeframe for any distribution system upgrades that may be necessary to accommodate the generating facility.

1.6  Metering.  The interconnection Customer shall be responsible for the cost to purchase and install appropriate metering. Appendix A illustrates the sample of interconnection and metering requirement, ownership and responsibilities of the Parties.

1.7  Codes and Permits.

  1. The interconnection Customer shall be responsible for procuring all building, operating, and environmental permits that are required by any governmental authority having jurisdiction for the type of generating facility and for the necessary ancillary structures to be installed, if any.
  2. The equipment shall meet the standards listed in Section 2.7.
  3. The construction and the facilities shall meet all applicable building and electrical codes.

Article II                                 Technical Requirements

2.1  Character of Service. The electrical service shall be 60 cycles per second (60 Hertz) alternating current (AC) at supply voltages and number of phases that apply under SCMEU’s terms, conditions, rules, regulations and provisions for electric service, including  metering requirements.

​​​​​​​2.2  Codes Requirements.  Once the generating facility has been authorized to commence parallel operation, the interconnection Customer shall abide by all operating procedures established by the National Electrical Code (NEC), National Electrical Safety Code (NESC), Institute of Electrical and Electronics Engineers (IEEE), Underwriters Laboratories (UL), and Occupational Safety and Health Administration.  Specific codes are listed in Section 2.7 below as “National Certification Codes and Standards”.  In addition, Manufacturer’s Ownership, Operating and Maintenance Manuals shall be reviewed and accepted by both Parties prior to beginning operation.

2.3  Generating Facility Control and Operation. The control system of the generating facility shall comply with the IEEE specifications and standards for parallel operation with SCMEU and in particular as follows:

  1. Power output control system shall automatically disconnect from distribution system upon loss of utility voltage and not reconnect until utility voltage has been restored and stabilized by SCMEU.
  2. Power output control system shall ride through voltage fluctuations but shall automatically disconnect from the SCMEU distribution system if SCMEU supplied distribution voltage or Customer-owned generation voltage fluctuates beyond plus or minus 10% (ten percent). The interconnection Customer shall provide adequate protection to prevent damage to the distribution system  from inadvertent over/under voltage conditions originating in Customer’s generating facility and to protect the Customer’s generating facility from inadvertent over/under voltage conditions originating from the distribution system
  3. Power output control system shall ride through frequency fluctuations but shall automatically disconnect from the SCMEU distribution system if frequency fluctuates beyond plus or minus 2 cycles per second from 60 cycles per second (Hertz).
  4. Inverter output distortion shall meet IEEE requirements.
  5. The generating facility shall meet the applicable IEEE standards concerning impacts to the distribution system with regard to harmonic distortion, voltage flicker, power factor, direct current injection and electromagnetic interference.
  6. The voltage produced by the Customer’s generating facility must be balanced if it is a three-phase installation.  The interconnection Customer is responsible for protecting the generating facility from an inadvertent phase imbalance in the SCMEU distribution system’s service voltage

2.4  Fault Current Contribution. The generating facility shall be equipped with protective equipment designed to automatically disconnect during fault current conditions and remain disconnected until the voltage and frequency have stabilized.

​​​​​​​2.5  Reclosing Coordination. The generating facility shall be coordinated with the distribution system reclosing devices by disconnecting from the system during the initial de-energized operation and shall remain disconnected until the voltage and frequency have stabilized.

​​​​​​​2.6  Disconnect Device. A safety manual disconnect switch of the visible load break type shall be installed by the customer. The disconnect switch shall be visible to and readily accessible by SCMEU and St. Charles Emergency and Fire Department personnel.  The switch shall be capable of being locked in the open position and shall prevent the generator from supplying power to the distribution system.

​​​​​​​2.7  Standards for Interconnection, Safety, and Operating Reliability. The interconnection of a generating facility and associated interconnection equipment to the Utility’s distribution System shall meet the applicable provisions of the following publications:

  1. ANSI/IEEE1547-2018 Standard for Interconnecting Distributed Resources with Electric Power Systems (including use of IEEE 1547.1-2020 testing protocols to establish conformity) as they may be amended from time to time. The following standards shall be used as guidance in applying IEEE 1547:
  2. IEEE Std 519-2014, IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems
  3. IEEE1453, IEEE Recommended Practice for the Analysis of Fluctuating Installation on Power Systems
  4. UL1741 requirement for inverter based generation
  5. National  Electric Safety Code (NESC)
  6. ANSI/NFPA 70, National Electrical Code (NEC)
  7. OSHA (29 CFR § 1910.269)

Article III                               Inspection, Testing, Authorization, and Right to Access

​​​​​​​3.1  Equipment Testing and Inspection.

  1. Upon completing construction, the interconnection Customer shall test and inspect its generating facility including the interconnection equipment prior to interconnection in accordance with updated IEEE standards 1547 and IEEE standard 1547.1 by SCMEU inspection authority. The interconnection Customer shall not operate its generating facility in parallel with distribution system without prior written authorization by SCMEU.
  2. All interconnection related protective functions and associated direct current supplies shall be tested prior to commencement of commercial service, and (if nameplate rating of Customer’s generating facilities is greater than 25 kW AC) periodically tested thereafter no less than every three (3) years with test results forwarded to SCMEU.

3.2  Certification of Completion. The interconnection Customer shall provide SCMEU with a copy of the Certificate of Completion with all relevant and necessary information fully completed by the interconnection Customer, as well as an inspection form from the Building and Code Enforcement Division and SCMEU inspector demonstrating that the generating facility passed inspection.

​​​​​​​3.3  Witness Test. 

  1. For all installations of 25 kW AC or larger, the interconnection Customer shall provide the Utility at least 30 business days’ notice of the planned commissioning test for the generating facility, which will also provide a witness test. For systems sized less than 25 kW AC,  the 30 business days’ notice shall be waived.
  2.  If the witness test is not acceptable to SCMEU, the interconnection Customer has 30 business days to address and resolve any deficiencies. This time period may be extended upon agreement between SCMEU and interconnection Customer. If the interconnection Customer fails to address and resolve the deficiencies to the satisfaction of SCMEU, this Agreement shall be terminated. The interconnection Customer shall, if requested by SCMEU, provide a copy of all documentation in its possession regarding testing conducted pursuant to IEEE standard 1547.1.
  3. After the generating facility passes the witness testing, the Utility shall affix an authorized signature to the Certificate of Completion and return it to the interconnection Customer approving the interconnection and authorization parallel operation.

3.4  Right of Access. SCMEU must have access to the disconnect switch and metering equipment of the generating facility at all times without notice. When practical, SCMEU will attempt to provide advance notice to the Customer prior to using its right of access.

Article IV                   Effective Date, Term, Termination, and Disconnection

​​​​​​​4.1  Effective Date. This Agreement shall become effective upon execution by all parties.

​​​​​​​4.2  Term of Agreement. This Agreement shall become effective on the effective date and shall remain in effect unless terminated earlier in accordance with Article 4.4 of this Agreement.

​​​​​​​4.3  Governing Law, Regulatory Authority, and Rules.  The validity, interpretation and enforcement of this Agreement and each of its provisions shall be governed by the Codes and Regulations of the City of St. Charles, as well as the laws of the State of Illinois, without regard to its choice of law principals. Nothing in this Agreement is intended to affect any other agreement between SCMEU and the interconnection Customer.

​​​​​​​4.4  Termination. This Agreement may be terminated under the following conditions:

  1. By interconnection Customer - The interconnection Customer may terminate this Agreement by providing written notice to the SCMEU, and if the interconnection Customer ceases operation of the generating facility, the interconnection Customer must notify SCMEU in writing.
  2. By SCMEU - SCMEU may terminate this Agreement if the interconnection Customer fails to remedy a violation of the terms of this Agreement within 30 calendar days after notice, or such other date as may be mutually agreed to prior to the expiration of the 30 calendar day remedy period.  The termination date may be no less than 30 calendar days after the interconnection Customer receives notice of its violation from the SCMEU distribution system.
  3. Upon termination of this Agreement, the generating facility will be permanently disconnected from the distribution system. Terminating this Agreement does not relieve either party of its liabilities and obligations that are owed or continuing when the Agreement is terminated.
  4. Upon termination of this Agreement, SCMEU shall open and padlock the manual disconnect switch on Customer’s premises.

4.5  Disconnection.  SCMEU may temporarily disconnect the generating facility upon any of the following conditions, but must reconnect the generating facility once the condition is cured:

  1. For scheduled outages, provided that the generating facility is treated in the same manner as SCMEU’s load Customers;
  2. For unscheduled outages or emergency conditions;
  3. If the generating facility does not operate in the manner consistent with this Agreement;
  4. Improper installation or failure to pass the witness test;
  5. If the generating facility is creating a safety, reliability or a power quality problem; or
  6. The interconnection equipment used by the generating facility is de-listed by the nationally recognized testing Laboratory that provided the listing at the time the interconnection was approved.
  7. Failure of the customer to obtain or maintain the insurance coverage set forth in Article 7 of this Agreement.

4.6  Modification of Generating Facility.  The interconnection Customer must receive written authorization from SCMEU before making any changes to the generating facility that could affect the distribution system.  If the interconnection Customer makes such modifications without SCMEU’s prior written authorization, SCMEU shall have the right to disconnect the generating facility immediately.

​​​​​​​4.7  Permanent Disconnection.  In the event the Agreement is terminated, SCMEU shall have the right to disconnect its distribution system or direct the interconnection Customer to disconnect its generating facility.

​​​​​​​4.8  Lost Opportunity. SCMEU is not responsible for any lost opportunity or other costs incurred by the interconnection Customer as a result of an interruption of service under this Article 4.

Article V                     Cost Responsibility for Interconnection Facilities and Distribution Upgrades

​​​​​​​5.1  Interconnection Facilities.

  1. The interconnection Customer is responsible for the cost of additional interconnection facilities necessary to interconnect the generating facility with the SCMEU distribution system.
  2. The interconnection Customer is responsible for its expenses, including overheads, associated with owning, operation, maintaining, repairing, and replacing its interconnection equipment
  3. Distribution System Upgrades. SCMEU shall design, procure, construct, install, and own any distribution system upgrades. The cost of the distribution system upgrades shall be directly assigned to the interconnection Customer whose generating facility caused the need for the distribution system upgrades.

5.2  Cost for Small Systems. For qualifying systems sized 10 kW AC or less, the cost in section 5.1 shall be capped at $1,500.00.

Article VI                   Assignment, Limitation on Damages, Indemnity, Force Majeure

​​​​​​​6.1  Assignment/Transfer of Ownership of the Generating Facility.  This Agreement shall terminate upon the transfer of ownership of the generating facility to a new owner unless the transferring owner assigns the Agreement to the new owner, the new owner agrees in writing to the terms of this Agreement, and the transferring owner so notifies SCMEU in writing prior to the transfer of ownership.

​​​​​​​6.2  Limitation of Liability.  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, shall be limited to the amount of direct damage actually incurred.  In no event shall either Party be liable to the other Party for any indirect, incidental, special, consequential, or punitive damages of any kind whatsoever.

​​​​​​​6.3  Indemnification.   The interconnection Customer shall indemnify and defend SCMEU, the City of St. Charles and all its elected officials, directors, officers, employees, and agents from all damages and expenses resulting from any third party claim arising out of or based upon the interconnection Customer's (a) negligence or willful misconduct; (b) breach of this Agreement; or (c) the operation of the Customer's generating facility, regardless of Customer’s negligence or willful misconduct, except when and to the extent the loss occurs due to the grossly negligent actions of SCMEU. SCMEU shall indemnify and defend the interconnection Customer and the interconnection Customer's directors, officers, employees, and agents from all damages and expenses resulting from a third party claim arising out of or based upon SCMEU’s (a) negligence or willful misconduct or (b) breach of this Agreement.    

​​​​​​​6.4  Force Majeure. If a force majeure event prevents a Party from fulfilling any obligations under this Agreement, the Party effected by the force majeure event (Affected Party) shall notify the other Party of the existence of the force majeure event within one business day. The notification must specify the circumstances of the force majeure event, the expected duration, and the steps that the Affected Party is taking and will take to mitigate the effects of the event on its performance. If the initial notification is verbal, it must be followed up with a written notification within one business day. The Affected Party shall keep the other Party informed on a continuing basis of developments relating to the force majeure event unit the event ends. The Affected Party may suspend or modify its obligations under this Agreement.  The term “force majeure” shall mean any act of God, labor disturbance, act of the public enemy, war, insurrection, riot, fire, storm or flood, explosion, epidemic, pandemic, breakage or accident to machinery or equipment, an order, regulation or restriction imposed by governmental, military or lawfully established civilian authorities, or any other cause beyond a Party's reasonable control.  A Force Majeure event does not include an act of negligence or intentional wrongdoing by the Party claiming Force Majeure.

Article VII                  Insurance

​​​​​​​7.1  Insurance. The interconnection customer shall carry general liability insurance coverage, such as, but not limited to, homeowner’s insurance or commercial building insurance.  The interconnection Customer shall provide SCMEU with proof that it has a current homeowner's insurance or commercial building insurance policy, or other general liability policy.  The interconnection Customer shall name the City of St. Charles as an additional insured on its homeowner's insurance or commercial building insurance policy, or similar policy covering general liability and shall cause the insurance company to issue a Certificate of Insurance to the City of St. Charles. The interconnection customer shall notify the City of St. Charles immediately if such insurance policy is terminated or cancelled prior to the end of its term and if the insurance company has communicated an intent not to renew the policy.

Article VIII                Documents and Notices

​​​​​​​8.1  Documents. The Agreement includes the following documents, which are attached or incorporated by reference:

  1. One-line drawing
  2. Interconnection Request Application Forms
  3. System Upgrade Estimated Costs
  4. Certificate of Completion

8.2  Notice.  The Parties may mutually agree to provide notices, demands, comments, or requests by electronic means such as e-mail.  Absent Agreement to electronic communication, or unless otherwise provided in this Agreement, any written notice, demand, or request required or authorized in connection with this Agreement shall be deemed properly given if delivered in person, delivered by recognized national courier service, or sent by first class mail, postage prepaid, to the person specified below:

If to Interconnection Customer:

Use the contact information provided in the interconnection Customer's application. The interconnection Customer is responsible for notifying SCMEU of any change in the contact party information, including change of ownership.

If to SCMEU:

Use the contact information provided below. SCMEU is responsible for notifying the interconnection Customer of any change in the contact party information.

Public Works Manager-Electric Services

Two East Main Street

St. Charles, Illinois  60174

Telephone (Daytime): 630-377-4407  (Evening-Emergency ONLY): 630-816-6007

Fax Number: 630-513-7442                 E-Mail Address: Electric@stcharlesil.gov

Article IX                   Signatures

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized representatives.

For the Interconnection Customer:

Name:

Title:

Date:

For Utility

Name:

Title: Public Works Manager-Electric Services

Date:

(2022-M-12: § 1; 2009-M-69: § 1)