SUBJECT/RECOMMENDATION:
Title
Approve the form of Standard Interconnection Agreements with Duke Energy Florida for city-owned renewable energy systems and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The Standard Interconnection Agreement (SIA) outlines the terms and conditions for connecting a distributed renewable energy generation system to the Duke Energy Florida electrical grid. Investor-owned utilities are required by Florida Administrative Code 25-6.065 to adopt a Standard Interconnection Agreement with minimum terms as required by the rule, and to submit said agreements to the Florida Public Service Commission for approval. All solar energy systems or other renewable energy systems that are added to city-owned facilities or buildings and connected to the investor-owned utility’s electric grid will need to go through this standard agreement process.
Completing this agreement is essential in ensuring that the City receives credits from the utility company for the corresponding amount of renewable energy produced on our own sites. Since the agreement requires the City to indemnify Duke Energy, the City Council must approve.
The interconnection agreement may differ in three tiers based on the renewable energy system sizing: Tier 1 (10kW and less), Tier 2 (11kW to 100kW), and Tier 3 (more than 100kW). Please refer to the attachments for agreement samples. Also attached are the agreements for the three city-owned solar energy systems in Coachman Park that comprise of (2) Tier 1 SIA and (1) Tier 2 SIA which need to be executed:
• Bandshell Rooftop Solar System: 225 Drew St, Clearwater, FL - Tier 2 SIA
• Dockmaster Rooftop Solar System: 206 Pierce St, Clearwater, FL - Tier 1 SIA
• Event Restroom Rooftop Solar System: 303 Drew St, Clearwater, FL - Tier 1 SIA
Renewable energy systems that are planned by city departments would usually be brought to Council for approval prior to construction and installation as part of the procurement of designers and contractors. It is the intent of this item, that going forward, if Council approves the construction of a renewable energy project, the city staff would then be authorized to execute the required interconnection agreement at project completion based on the terms and conditions of the Standard Agreement forms that are attached, notwithstanding the indemnification requirement. This will allow the City to quickly realize the return on investment into renewable energy projects by eliminating the need to return to Council for approval of the standard form agreement.
STRATEGIC PRIORITY:
Objectives 1.1 Provide evidence-based measurement tools to continually guide municipal performance and promote accountable governance; 1.5 Embrace a culture of innovation that drives continuous improvement and successfully serves all our customers; 4.1, Providing proactive climate resiliency strategies based on science; 4.2, Adopting renewable resource usage
