CHAPTER XV. UTILITIESCHAPTER XV. UTILITIES\ARTICLE 8. RENEWABLE GENERATION AND CONNECTION

The purpose of this article is to establish standards for eligible residential and commercial customers (“Customer”) to interconnect and operate Customer-owned inverter-based solar and wind Generation Facilities with a rated output of 25 kilowatts AC (kWAc) or less for residential service and 200 kilowatts AC (kWAc) or less for commercial service in parallel with the City of Chapman (“Utility”) Electric Distribution System.

(Ord. 1039)

The following terms shall have the following meanings for this ordinance.

(a)   AC -Alternating Current

(b)   Applicable Laws and Regulations - All duly promulgated applicable federal, state and local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or administrative orders, permits and other duly authorized actions of any Governmental Authority, including the Ordinances of the City of Chapman and Utility Electric Rates and Regulations.

(c)   City - The City of Chapman, Kansas.

(d)   Customer- a Residential or Commercial electric customer interconnected to the Electric Distribution System for the purpose of receiving retail electric service that also owns and operates an approved Generation Facility.

(e)   DC - Direct Current

(f)   Electric Distribution System - The Utility facilities and equipment used to provide electric service to customers, including the Customer.

(g)   Generation Facility - For purposes of these Interconnection Standards, the Customer device for conversion of solar and wind energy to electricity, as identified in the Interconnection Application, that:

(1)   Is an inverter-based energy facility with a rated capacity and output of 25 kWAc or less for Residential Service and 200 kWAc or less for Commercial Service when including any storage capabilities;

(2)   Is owned by the Customer;

(3)   Is located on the Customer’s premises;

(4)   Serves only the Customer’s premises (serves no other customers)

(5)   Is interconnected with and operates in parallel phase and synchronization with the Electric Distribution System and is in compliance with these Interconnection Standards;

(6)   Is sized primarily to offset part of the Customer’s own electrical energy requirements;

(7)   Contains a Utility-approved mechanism(s) that automatically disconnects the Generation Facility and interrupts the flow of electricity to the Electric Distribution System in the event that electric service to the Customer is interrupted.

(8)   Meets all of the following generating capacity limitations:

(A)  Generator annual energy generation shall not exceed Customer’s annual energy requirements.

(B)  Customer’s Generator Facility in kWAc shall not exceed Customer’s average monthly demand or estimated average annual demand when historical demand (kW) meter readings are unavailable for the previous 12-month period starting January 1 and ending December 31, or 25 kWAc for residential and 200 kWAc for commercial, whichever is less. Customer’s estimated average annual demand shall be calculated by using said customer’s historical annual energy usage in kWh divided by 8,760 hours and further dividing by 35% if demand meter readings are not available.

(C)  Total Customer-owned generating capacity shall not exceed four percent (4%) of the previous year Utility peak demand. No Generation Facility shall be interconnected that would cause total Customer-owned Generation Facility capacity to exceed four percent (4%) of the previous year Utility peak demand.

(h)   Governmental Authority - Any federal, state, local or other governmental regulatory or administrative agency, court, commission, department, board, or other governmental subdivision, legislature, rulemaking board, tribunal, or other governmental authority having jurisdiction over the Parties, their respective facilities, or the respective services they provide, and exercising or entitled to exercise any administrative, executive, police, or taxing authority or power; provided, however, that such term does not include the Customer or any Affiliate thereof.

(i)    Harmonic Distortion - Distortion of the normal AC sine wave typically caused by non-linear loads or inverters.

(j)    Initial Operation Date - The date on which the Generation Facility is operating and is in compliance with the requirements of these Interconnection Standards for Installation and Parallel Operation of Customer-Owned Renewable Electric Generation Facilities 25 kWAc or Less for Residential Service and 200 kWAc or less for Commercial Service as determined by the Utility.

(k)   Interconnection - The physical connection of a Generation Facility to the Utility Electric Distribution System.

(l)    Interconnection Application - The Customer request to interconnect a new Generation Facility, or to increase the capacity of, or make a material modification to the operating characteristics of an existing Generation Facility that is interconnected with the Electric Distribution System.

(m)  Interconnection Standards - Interconnection Standards shall mean all provisions, forms and related documents described in the collective parts of these Interconnection Standards for Installation and Parallel Operation of CustomerOwned Renewable Electric Generation Facilities 25 kWAc or Less for residential service and 200 kWAc or Less for Commercial Service, or successor document.

(n)   Metering Point - The Utility electric meter as shown on the one-line diagram accompanying the Customer’s Interconnection Application.

(o)   Party- Individually the Utility and the Customer; collectively the “Parties.”

(p)   Prudent Utility Practice - Any of the practices, methods and acts engaged in or approved by a significant portion of the electric utility industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Prudent Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region by the electric utility industry.

(q)   Reasonable Efforts - With respect to an action required to be attempted or taken by a Party under the Interconnection Agreement, efforts that are timely and consistent with Prudent Utility Practice and are otherwise substantially equivalent to those a Party would use to protect its own interests.

(r)    Renewable Parallel Generation Policy - Electric Rate Schedule - As found in Chapter 15, Article 9 of the Code of the City of Chapman, Kansas.

(s)   System Upgrades - Additions, modifications, improvements, and upgrades to the Electric Distribution System or Customer service connection at or beyond the point of interconnection to facilitate interconnection of the Customer Generation Facility.

(t)    Utility- City of Chapman, Kansas

(u)   Voltage Flicker - A variation of voltage sufficient in duration to allow visual observation of a change in electric light source intensity.

(Ord. 1039)

(a)   Must be a Residential or Commercial electric customer with a Customer-owned inverter-based renewable energy Generation Facility as defined herein that is interconnected behind the meter ( connected to the customer side of the electric meter or meters) and single-phase service at 60 Hertz at a nominal voltage of 120/240 volts or three-phase 120/208 or 277/480 volts furnished through a single bidirectional electric meter or multiple meters capable of recording the flow of electricity in each direction. Specific metering shall be at Utility discretion.

(b)   Customer’s utility account must be in good standing and in compliance with Utility electric rate schedules and Electric Rules and Regulations.

(c)   A Generation Facility that does not meet all requirements, including capacity limitations, of section 15-802(g), is not eligible to interconnect with the Electric Distribution System under this Interconnection Agreement.

(Ord. 1039)

The Customer shall request interconnection of a Generation Facility by completing and submitting to the Utility the attached document entitled “Interconnection Application”. The Utility may require additional information or clarification to evaluate the Customer Interconnection Request. Interconnection Applications will be reviewed by the Utility in the order in which they are received. If an Interconnection Application is viewed as incomplete, the Utility will provide notice to the Customer that the Application is not complete, provide a description of the information needed to complete the Application, and include a statement that processing of the Application cannot begin until the Application is complete.

(Ord. 1039)

The purpose of the Distribution System Impact Analysis is to determine if the Generation Facility will have an adverse impact on the Electric Distribution System equipment. If the proposed Generation Facility meets all of the requirements in a. through k. below, it will not be necessary to prepare a Feasibility Analysis and the proposed Generation Facility maybe installed without further analysis. After receiving a properly completed Interconnection Application, the Utility will analyze the potential impact of the proposed Generation Facility on the Electric Distribution System and on other Utility customers. Such analyses will be based on Prudent Utility Practice to determine thermal effects, voltage ranges, power quality, system stability, etc., and will include the following:

(a)   The Customer Generation Facility’s proposed interconnection point is on a radial distribution circuit and not a transmission line.

(b)   The proposed Generation Facility complies with IEEE 1547 and UL 1741 or successor standards.

(c)   The proposed Generation Facility’s capacity in aggregation with other generation on the circuit shall not exceed 15 percent (15%) of the total circuit peak demand (kW) as most recently measured at the substation during the previous 12-month period; nor shall it exceed 15 percent (15%) of a distribution circuit line section annual peak demand (kW).

(d)   The proposed Generation Facility, in aggregation with other generation on the distribution circuit, shall not contribute more than 10 percent (10%) to the distribution circuit’s maximum fault current at the point on the primary voltage distribution line nearest the proposed interconnection point.

(e)   The proposed Generation Facility, in aggregation with other generation located on the distribution circuit, may not cause any distribution protective devices and equipment (including substation breakers, fuse cutouts, and line reclosers, or other customer equipment on the electric distribution system to be exposed to fault currents exceeding 85 percent (85%) of the short circuit interrupting capability.

(f)   No additional Generation Facilities shall be interconnected on a circuit that equals or exceeds 85 percent (85%) of its short circuit interrupting capability.

(g)   No Generation Facility shall be interconnected that would cause the total interconnected Customer-owned Generating Facility capacity to exceed four percent (4%) of the previous year Utility system peak demand.

(h)   When a proposed Generation Facility is single-phase and is to be interconnected on a center tap neutral on a 240-volt service, its addition shall not create an imbalance between the two sides of the 240-volt service of more than 20 percent of the nameplate rating of the service transformer.

(i)    The proposed Generation Facility installation must be certified to pass an applicable non-islanding test or use reverse power relays or other means to meet IEEE 1547 unintentional islanding requirements.

(j)    A review of the type of electrical service provided to the Customer, including line configuration, and the transformer connection, will be conducted to limit the potential for creating over voltages on the Electric Distribution System due to a loss of ground during the operation time of any anti-islanding function.

(k)   When the proposed Generation Facility is to be interconnected on a single-phase shared secondary line, the aggregate generation capacity on the shared secondary line, including the proposed Generation Facility, shall not exceed ten kilowatts (10 kWAc).

(Ord. 1039)

(a)   If the proposed Generation Facility fails to meet one or more of the above requirements, the Customer may request that the Utility complete an analysis to determine the feasibility of interconnecting the proposed Generation Facility to the Electric Distribution System. The Feasibility Analysis shall include:

(1)   Initial identification of any circuit breaker short-circuits capability limits exceeded as a result of the interconnection.

(2)   Initial identification of any thermal overload or voltage limit violations resulting from the interconnection.

(3)   Initial review of grounding requirements and system protection.

(4)   A description and nonbinding estimated cost of facilities required to interconnect the Generation Facility to the Electric Distribution System in a safe and reliable manner.

(b)   The actual cost of the Feasibility Analysis shall be paid by the Customer. The Utility will provide an estimated cost of the Feasibility Analysis to Customer and Customer shall advance 50% of such estimate to Utility if Customer wants Utility to prepare a Feasibility Analysis. When Feasibility Analysis cost exceeds 50% of the estimated cost, Utility shall bill Customer as such fees are incurred.

(Ord. 1039)

(a)   If the Feasibility Analysis concludes that interconnection of the proposed Generation Facility would create an adverse system impact, a System Impact Study is required.

(b)   A System Impact Study shall evaluate the impact of the proposed Generation Facility interconnection on the safety and reliability of the Electric Distribution system. The study shall:

(1)    Identify and detail the system impacts that result if the proposed Generation Facility is interconnected without project or system modifications.

(2)    Consider the adverse system impacts or potential impacts identified in the Feasibility Analysis.

(3)    Consider all Generating Facilities that, on the date the System Impact Study is commenced, are directly interconnected with the Electric Distribution System.

(4)    Consider pending Interconnection Applications of Generation Facilities requesting interconnection to the Electric Distribution System.

(c)   The System Impact Study shall consider the following criteria:

(1)   A load flow study.

(2)   A short circuit analysis.

(3)   A stability analysis.

(4)   Voltage drop and flicker studies.

(5)   Protection and set point coordination studies.

(6)   Grounding reviews.

(d)   The Utility shall state the underlying assumptions of the Study and share the results of the analyses with the Customer, including the following:

(1)   Any potential impediments to providing the requested interconnection service.

(2)   Any required Electric Distribution System Upgrades and the estimated cost and time to engineer and construct said System Upgrades.

(e)   The actual cost of the System Impact Study shall be paid by the Customer. The Utility will provide an estimated cost of the System Impact Study to Customer and Customer shall advance 50% of such estimate to the Utility if Customer wants the Utility to prepare a System Impact Study.

(f)   When System Impact Study cost exceeds 50% of the estimated cost, the Utility shall bill Customer as such fees are incurred.

(Ord. 1039)

The Utility shall not be obligated to make upgrades or improvements to its Electric Distribution System to accommodate the Customer’s Generation Facility. Where System Upgrades are required prior to interconnection of the Generation Facility as identified in the System Impact Study, the Utility will provide the Customer with an estimated schedule and the Customer’s cost for said System Upgrades.

(Ord. 1039)

After the Customer and the Utility have identified and mutually agreed on the project scope including the Generation Facility, System Upgrades and estimated costs (if any), the Customer and the Utility shall execute the attached document entitled “Interconnection Agreement.” The lntercorinection Agreement shall be between the Utility and the Customer and shall not include third parties. Prior to commencement of System Upgrades required to allow interconnection of the Customer-owned Generation Facility, Customer shall deposit with the Utility an amount equal to the estimated cost of said System Upgrades. See “Section 4. Interconnection Costs” of the Interconnection Agreement (Part 4) for additional information.

(Ord. 1039)

(a)   The Customer shall be responsible for procuring all building, operating, environmental or other permits for the Generation Facility and for the necessary ancillary structures to be installed that are required by any Governmental Authority having jurisdiction.

(b)   The Generation Facility and interconnecting equipment shall meet all requirements in “Part 2. Technical Requirements” of these Interconnection Standards.

(c)   The construction and facilities shall meet all applicable building and electrical codes.

(Ord. 1039)

Upon completion of the Generation Facility and prior to the Initial Operation Date of said Facility, the Customer shall complete and submit a signed copy of the attached document entitled “Certificate of Completion.”

(Ord. 1039)

The Customer may begin initial operation of the Generation Facility upon receipt of written approval from the Utility.

(Ord. 1039)

The electric service shall be 60 cycles per second (60 Hertz) alternating current (AC) at supply voltages and single phase under the Residential rate schedule that would apply if the Customer did not have an interconnected Generation Facility.

(Ord. 1039)

The Generation Facility shall meet all requirements established by the National Electrical Code (NEC), National Electrical Safety Code (NESC), Institute of Electrical and Electronics Engineers (IEEE), Underwriters Laboratories (UL), and the Occupational Safety and Health Administration. Specific applicable codes are shown in Section 9 of this Part 2 below as “Standards for Interconnection, Safety and Operating Reliability.

(Ord. 1039)

The control system of the Generation Facility shall comply with IEEE and UL specifications and standards for parallel operation with the Electric Distribution System and in particular as follows:

(a)   Power output control system shall automatically disconnect from the Electric Distribution System upon loss of System voltage and shall not reconnect until System voltage has been restored.

(b)   Power output control system shall automatically disconnect from the Electric Distribution System if System voltage fluctuates beyond plus or minus ten percent (10%).

(c)   Power output control system shall automatically disconnect from the Electric Distribution System if the generator fails to operate within the operating frequency range of 59.3 - 60.5 Hz.

(d)   Inverter output Harmonic Distortion shall meet IEEE and UL standards.

(e)   The Generation Facility shall meet applicable IEEE and UL standards concerning impacts to the Electric Distribution System with regard to Harmonic Distortion, Voltage Flicker, power factor, direct current injection and electromagnetic interference.

(Ord. 1039)

When connected to a single-phase transformer, the Generation Facility must be installed such that the aggregated gross output is balanced between the two phases of the single-phase voltage and the maximum aggregated Gross Ratings for all the Generating Facilities shall not exceed the transformer rating.

(Ord. 1039)

The applicant must balance the demand load and the Generation Facility as nearly as practical between the two sides of a three-wire single phase service and between all phases of a three-phase service. The difference in amperes between any two phases at the customer’s peak load should not be greater than 10 percent or 50 amperes (at the service delivery voltage), whichever is greater; except that the difference between the load on the lighting phase of a four-wire delta service and the load on the power phase may be more than these limits. It will be the responsibility of the customer to keep the demand load balanced within these limits.

(Ord. 1039)

The owner of the customer owned generator is responsible for providing adequate protection to electric Utility facilities for conditions arising from the operation of generation under all Utility distribution system operating conditions. The owner is also responsible for providing adequate protection to its facility under any Utility distribution system operating condition whether or not its customer owned generator is in operation. Conditions may include but are not limited to:

(a)   Loss of a single phase of supply.

(b)   Distribution system faults,

(c)   Equipment failures,

(d)   Abnormal voltage or frequency,

(e)   Lightning and switching surges,

(f)   Excessive harmonic voltages,

(g)   Excessive negative sequence voltages,

(h)   Separation from supply,

(i)    Synchronizing generation,

(j)    Re-synchronizing the Owner’s generation after electric restoration of the supply.

(Ord. 1039)

The Generation Facility shall be equipped with protective equipment designed to automatically disconnect from the Electric Distribution System during fault current conditions and remain disconnected until System voltage and frequency have stabilized.

(Ord. 1039)

The Generation Facility shall be coordinated with Electric Distribution System reclosing devices by disconnecting from the Electric Distribution System during deenergized Electric Distribution System. operation. The Generation Facility shall remain disconnected until System voltage and frequency have stabilized.

(Ord. 1039)

The Customer shall install an external alternating current (AC) disconnect switch within six (6) feet of the Utility electric meter(s) that is visible and readily accessible to Utility representatives at all times. This switch shall be clearly labeled as “Generator AC Disconnect Switch”. The switch shall be capable of being locked in an open position and shall prevent the Generation Facility from supplying power to the Electric Distribution System while in the open position.

(Ord. 1039)

The interconnection of a Generation Facility and associated equipment to the Electric Distribution System shall meet the current applicable provisions of the following publications or successor standards: This list is intended for the customer and its solar installer.

(a)   ANSI/IEEE 1547-2003 Standard for Interconnecting Distributed Resources with Electric Power Systems (including use of IEEE 1547.1 testing protocols to establish conformity). The following standards shall be used as guidance in applying IEEE 1574:

(1)   IEEE Standard 519-1992, IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems

(2)   IEC/TR3 61000-3-7 Assessment of emission limits for fluctuating loads in MV and HV power systems

(b)   UL 1741 Standard for Inverters, Converters and Controllers for Use in Independent Power Systems

(c)   ANSI/NFPA 70 (2008), National Electrical Code

(d)   OSHA (29 CFR § 1910.269)

(e)   IEEE Standard 929-2000, IEEE Recommended Practice for Utility Interface of Photovoltaic (PV) Systems

(f)   IEEE Standard C37.90.1-1989 (R1994), IEEE Standard Surge Withstand Capability (SWC) Tests for Protective Relays and Relay Systems

(g)   IEEE Standard C37.90.2 (1995), IEEE Standard Withstand Capability of Relay Systems to Radiated Electromagnetic Interference from Transceivers

(h)   IEEE Standard C37.108-1989 (R2002), IEEE Guide for the Protection of Network Transformers

(i)    IEEE Standard C57.12.44-2000, IEEE Standard Requirements for Secondary Network Protectors

(j)    IEEE Standard C62.41.2-2002, IEEE Recommended Practice on Characterization of Surges in Low Voltage (1000Vand Less) AC Power Circuits

(k)   IEEE Standard C62.45-1992 (R2002), IEEE Recommended Practice on Surge Testing for Equipment Connected to Low-Voltage (1000V and Less) AC Power Circuits

(l)    IEEE Standard 100-2000, IEEE Standard Dictionary of Electrical and Electronic Terms

(m)  ANSI C84.1-1995 Electric Power Systems and Equipment - Voltage Ratings (60 Hertz)

(n)   NEMA MG 1-1998, Motors and Generators, Revision 3

(o)   IEEE Standard 2030.2, Guide for the Interoperability of Energy Storage Systems Integrated with the Electric Power Infrastructure (Including use of IEEE 2030.3 testing protocols to establish conformity).

(Ord. 1039)

(a)   Customer shall provide the Utility reasonable opportunity to inspect the Generation Facility prior to its interconnection and Initial Operation Date _and to witness initial testing and commissioning of the Generation Facility. The Utility may witness any commissioning tests required by IEEE 1547/UL 1741.

(b)   Following initial testing and inspection of the Generation Facility and upon reasonable advance notice to Customer, the Utility shall have access at all reasonable times to the Generation Facility to perform on-site inspections to verify that the installation, maintenance and operation of the Generation Facility complies with the requirements of these Interconnection Standards.

(c)   The Utility cost of such inspection(s) shall be at Utility expense; however, the Utility shall not be responsible for any cost Customer may incur as a result of such inspection(s).

(d)   Upon written request, Customer shall inform the Utility of the next scheduled maintenance and allow the Utility to witness the maintenance program and any associated testing.

(e)   The Utility shall at all times have immediate access to the external Generator AC Disconnect Switch to isolate the Generation Facility from the Electric Distribution System

(Ord. 1039)

(a)   Customer shall install, operate, and maintain, at Customer’s sole cost and expense, the Generation Facility in accordance with the manufacturer’s suggested practices for safe, efficient and reliable operation of the Generation Facility in parallel with the Electric Distribution System. Customer shall bear full responsibility for the installation, maintenance and safe operation of the Generation Facility. Upon request from the Utility, Customer shall supply copies of periodic test reports or inspection logs, which maybe requested annually.

(b)   Customer shall be responsible for protecting, at Customer’s sole cost and expense, the Generation Facility from any condition or disturbance on the Electric Distribution System, including, but not limited to, voltage sags or swells, system faults, outages, loss of a single phase of supply, equipment failures, and lightning or switching surges.

(c)   Customer agrees that, without prior written permission from the Utility, no changes shall be made to the configuration of the Generation Facility as approved by the Utility, and no relay or other control or protection settings shall be set, reset, adjusted or tampered with, except to the extent necessary to verify that the Generation Facility complies with Utility-approved settings.

(d)   Customer shall operate the Generation Facility in such a manner as not to cause undue voltage fluctuations, power quality issues, intermittent load fluctuation characteristics or to otherwise interfere with the operation of the Electric Distribution System. At all times when the Generation Facility is operated in ·parallel with the Electric Distribution System, Customer shall operate said Generation Facility in such a manner that no disturbance will be produced thereby to the service rendered by the Utility to any of its other customers or to any electric system interconnected with the Electric Distribution System. Customer understands and agrees that the interconnection and operation of the Generation Facility pursuant to these Interconnection Standards is secondary to, and shall not reduce the safety, quality, or reliability of electric service provided by the Utility.

(e)   Customer’s control equipment for the Generation Facility shall immediately, completely, and automatically disconnect and isolate the Generation Facility from the Electric Distribution System in the event of a fault on the Electric Distribution System, a fault on Customer’s electric system, or loss of a source or sources on the Electric Distribution System. The automatic disconnecting device included in such. control equipment shall not be capable of reclosing until after service is restored on the Electric Distribution System. Additionally, if the fault is on Customer’s electric system, such automatic disconnecting device shall not be reclosed until after the fault is isolated from the Customer’s electric system.

(Ord. 1039)

The Utility shall have the right and authority to disconnect and isolate the Generation Facility without notice at Utility’s sole discretion if the Utility believes that any of the following has occurred or is occurring:

(a)   Electric service to Customer’s premises is discontinued for any reason;

(b)   Adverse electrical effects (such as power quality problems) on the Electric Distribution System and/or the electrical equipment of other Utility customers attributed to the Generation Facility as determined by the Utility.

(c)   Electric Distribution System emergencies or maintenance requirements

(d)   Hazardous conditions existing on the Electric Distribution System as a result of the operation of the Generation Facility or protective equipment

(e)   Failure of the Customer to obtain and maintain required insurance and to provide the Utility with proof of insurance within ten (10) days of request.

(f)   Utility identification of uninspected or unapproved equipment or modifications to the Generation Facility after initial approval.

(g)   Recurring abnormal operation, substandard operation or inadequate maintenance of the Generation Facility.

(h)   Noncompliance with the obligations under the Interconnection Agreement. In non-emergency situations, the Utility shall give Customer notice of noncompliance including a description of the specific noncompliance condition and allow Customer a reasonable time to cure the noncompliance prior to disconnecting and isolating the Generation Facility.

(i)    Failure to remit payment to the Utility for any amounts owed, including but not limited to, amounts invoiced pursuant to Paragraph 15 of this Agreement.

(j)    In the event that the Utility disconnects the Generation Facility for routine maintenance, the Utility shall make reasonable efforts to reconnect the Generation Facility as soon as practicable.

(k)   The Customer retains the option lo temporarily disconnect its Generation Facility from the Electric Distribution System at any time. Such temporary disconnection shall not constitute termination of the Interconnection Agreement unless the Customer exercises its termination rights under Section 16 of Part 2.

(Ord. 1039)

(a)   Customer must participate in the Renewable Parallel Generation Policy- Electric Rate Code as a condition of interconnecting a Customer-owned Generating Facility.

(b)   Customer must complete and submit to the Utility the Renewable Energy Parallel Generation Application for Service in Part 7. The Utility shall not approve a Customer-owned Generation Facility Interconnection Application that does not include a completed Renewable Energy Parallel Generation Application for Service.

(c)   Terms and conditions of service are contained in the Renewable Parallel Generation - Residential Service rate schedule, Interconnection Standards for Installation and Parallel Operation of Customer-Owned. Renewable Electric Generation Facilities 25 kWAc or Less for Residential service and 200 kWAc or Less for Commercial service.

(d)   Customer must participate in the electric Utility’s Renewable Parallel Generation - Residential Service rate schedule or Renewable Parallel Generation - Commercial Service Rate Schedule if the customer wishes to receive credit for any excess energy generated by the customer and delivered to the Utility.

(Ord. 1039)

(a)   Customer shall at its own expense obtain and continuously maintain bodily injury, property damage liability and general liability insurance, without any exclusion for liabilities related to the interconnection undertaken pursuant to the Interconnection Agreement.

(b)   The amount of such insurance shall be sufficient to insure against all reasonably foreseeable liabilities and risks related to the Generation Facility, the ownership and operation of such Generation Facility, and the interconnection itself. Such insurance must be obtained from an insurance provider authorized to do business in the State of Kansas. Customer shall provide proof of insurance to the Utility not later than ten (10) days prior to the commercial operation date of the Generation Facility.

(c)   Utility shall not interconnect the Generation Facility absent submission by the Customer of proof of insurance in accordance with these Interconnection Standards. Thereafter Customer shall provide proof of insurance to the Utility within ten (10) days of such request by the Utility. Utility receipt of proof of insurance does not imply an endorsement of the terms and conditions of said coverage.

(d)   Customer shall promptly notify the Utility whenever an accident or incident occurs resulting in injuries or damages that are included within the scope of coverage of such insurance, whether or not Customer intends to submit a claim under such policy.

(Ord. 1039)

(a)   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 and court fees, relating to or arising from any act or omission in its performance of the Interconnection Agreement, shall be limited to the amount of direct damage actually incurred. In no event shall the Utility or the City of Chapman be liable for any indirect, special, consequential, or punitive damages.

(b)   Indemnity. Customer assumes all liability for, and shall. indemnify, defend and hold the Utility and the City of Chapman harmless from, any and all claims, losses, costs, and expenses of any kind or character, direct or indirect, including claims and actions relating to injury to or death of any person or damage to property, demand, suits, recoveries, costs and expenses, court costs, attorney fees, labor costs, and all other obligations by or to third parties arising out of or resulting from the design, construction, operation or maintenance of the Generation Facility, or the Customer’s actions or omissions in breach of its obligations under the Interconnection Agreement. Such indemnity shall include, but is not limited to, financial responsibility for: (a) Utility monetary losses; (b) reasonable costs and expenses of defending an action or claim made by a third party; (c) damages related to the death or injury of a third party; (d) damages to Utility property; (e) damages to the property of a third party; (f) damages for the disruption of the business of a third party. The limitations of liability provided in this paragraph do not apply in cases of gross negligence or intentional wrongdoing. If the Utility or the City of Chapman incurs any costs as to which the indemnity provided in this section b. applies, the Utility or City of Chapman shall invoice the Customer for such costs in writing. Customer shall remit payment to the Utility or the City of Chapman, as appropriate, within 45 calendar days of the date of such invoice.

(Ord. 1039)

The Interconnection Agreement shall become effective when executed by both Parties and shall continue in effect until terminated in accordance with the provisions of this Section. The Interconnection Agreement may be terminated for the following reasons:

(a)   Electric service to Customer’s premises is discontinued for any reason. If electric service is disconnected for any reason or a change occurs in the account holder, a new Interconnection Application must be submitted to the electric Utility for consideration;

(b)   Customer may terminate the Interconnection Agreement at any time by giving the Utility at least sixty (60) days’ prior written notice stating Customer’s intent to terminate the Agreement at the expiration of such notice period;

(c)   the Utility may terminate the Interconnection Agreement at any time following Customer’s failure to generate energy from the Generation Facility in parallel with the Electric Distribution System by the later of two (2) years from the date of execution of the Interconnection Agreement or during any twelve (12) month period following completion of the interconnection provided for by the Agreement;

(d)   the Utility may terminate the Interconnection Agreement at any time by giving Customer at least sixty (60) days’ prior written notice in the event the Customer generates and delivers to the Utility more energy than Customer consumes within a calendar year for two consecutive years or more.

(e)   either Party may terminate the Interconnection Agreement at any time by giving the other Party at least sixty (60) days’ prior written notice that the other Party is in default of any of the material terms and conditions of the Interconnection Agreement or these Interconnection Standards for Installation and Parallel Operation of Customer-Owned Renewable Electric Generation Facilities 25 kW Ac or Less for Residential service and 200 kWAc or less for Commercial service, so long as the notice specifies the basis for termination and there is reasonable opportunity for the Party in default to cure the default; or

(f)   the Utility may terminate the Interconnection Agreement at any time by giving Customer at least sixty (60) days’ prior written notice in the event that there is a change in an applicable rule or statute affecting the Agreement.

Upon termination of the Interconnection Agreement, Customer’s Generation Facility shall be permanently disconnected from the Electric Distribution System. Termination of the Interconnection Agreement shall not relieve either party of its liabilities and obligations, owed or continuing at the time of said termination.

(Ord. 1039)

From and after the date when service commences under the Interconnection Agreement, the Agreement shall supersede any oral and/or written agreement or understanding between the Utility and Customer concerning the interconnection service covered by the Agreement. Any such prior agreement or understanding shall be deemed to be terminated as of the date interconnection service commences under the Interconnection Agreement.

(Ord. 1039)

(a)   For purposes of the Interconnection Agreement, the term “Force Majeure” means any cause or event not reasonably within the control of the Party claiming Force Majeure, including, but not limited to, the following: acts of God, strikes, lockouts, or other industrial disturbances; acts of public enemies; orders or permits or the absence of the necessary orders or permits of any kind which have been properly applied for from the government of the United States, the State of Kansas, any political subdivision or municipal subdivision or any of their departments, agencies or officials, or any civil or military authority; unavailability of a fuel or resource used in connection with the generation of electricity; extraordinary delay in transportation; unforeseen soil conditions; equipment, material, supplies, labor or machinery shortages; epidemics; landslides; lightning; earthquakes; fires; hurricanes; tornadoes; storms; floods; washouts; drought; arrest; war; civil disturbances; explosions; breakage or accident to machinery, transmission lines, pipes or canals; partial or entire failure of utilities; breach of contract by any supplier, contractor, subcontractor, laborer or materialman; sabotage; injunction; blight; famine; blockade; or quarantine. A Force Majeure event does not include an act of negligence or intentional wrongdoing.

(b)   If either Party is rendered wholly or partially unable to perform its obligations under the Interconnection Agreement because of Force Majeure, both Parties shall be excused from whatever obligations under the Agreement are affected by the Force Majeure (other than the obligation to pay money) and shall not be liable or responsible for any delay in the performance of, or the inability to perform, any such obligations for so long as the Force Majeure continues. The Party suffering an occurrence of Force Majeure shall, as soon as is reasonably possible after such occurrence, give the other Party written notice describing the particulars of the occurrence and shall use reasonable efforts to remedy its inability to perform; provided, however, that the settlement of any strike, walkout, lockout or other labor dispute shall be entirely within the discretion of the Party involved in such labor dispute.

(Ord. 1039)

There shall be standardized forms developed and provided by the City of Chapman to facilitate the purposes and requirements of this article. Said forms may be amended from time to time by the city without approval of the governing body. Forms which are in substantial conformance with these forms may be used instead.

(Ord. 1039)