Agenda Information Sheet
DEPARTMENT: Denton Municipal Electric
CM/ ACM: Todd Hileman
Date: August 14, 2017
SUBJECT
Title
Consider recommending adoption of an ordinance of the City of Denton, Texas Authorizing the City Manager or his designee to execute an agreement for interconnection and parallel operation of distributed generation with Target Corporation for the installation of a solar photovoltaic system; and providing an effective date.
Body
BACKGROUND
Denton Municipal Electric (DME) Customers that choose to install a solar photovoltaic (PV) system on their property which could potentially return electricity to the DME grid, must complete and submit an Agreement for Interconnection and Parallel Operation of Distributed Generation (“Interconnection Agreement”) and Application for approval prior to installing their system. DME uses the information provided to perform necessary pre-interconnection studies, including assuring all installations meet all applicable national, local and manufacturer’s codes and specifications.
Additionally, the Interconnection Agreement allows DME to track and record locations of installed PV systems, assure PV systems are maintained as required by DME Service Standards and all applicable codes and ordinances, and access is granted to premises for City personnel to inspect, read, test, or disconnect the PV system if a hazardous condition exists or immediate action is necessary to protect persons, City facilities, or other properties.
Target Corporation submitted an Interconnection Agreement and Application to DME on March 21, 2017. The application shows an interest in installing a rooftop PV system that consists of 2,926 solar modules rated at 320 watts and 11 inverters with a maximum alternating current (AC) output of 660 kilo-watts (kW). This will be the largest system on the DME grid. Due to the size of the system, Target was required to complete a pre-interconnection study, which was completed prior to seeking approval of the Interconnection Agreement.
Once the Interconnection Agreement between Target Corporation and City of Denton is executed, Target Corporation will be able to move forward in applying for a building permit and will work to complete the permitting approval process through Building Inspections.
As a term of the Interconnection Agreement, systems over 50 kW must have a special agreement in place to set the credit rate for any excess generation returned to the grid. Staff will bring back options regarding the rate to be paid for excess generation from this system at a future meeting.
RECOMMENDATION
Staff recommends approval and execution of the Interconnection Agreement with Target Corporation.
ESTIMATED SCHEDULE OF PROJECT
Target Corporation is scheduled to complete the PV system install by the end of 2017.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
The interconnection agreement will be presented to the City Council during the August 15th meeting.
STRATEGIC PLAN RELATIONSHIP
The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Public Infrastructure
Related Goal: 2.3 Promote superior utility services and facilities
EXHIBITS
1. Agreement for Interconnection and Parallel Operation of Distributed Generation
Respectfully submitted:
Bryan Langley
Deputy City Manager
Prepared by:
Elizabeth Ruiz
Key Accounts &
Energy Programs Admin