12.03.080 Generation or Transmission of Electricity by Entities Other than Provo City.
(1) Except as otherwise provided in Section 12.03.090, Provo City Code, this Section shall govern the generation and transmission of electric energy in Provo City by entities other than Provo City. Electric energy may not be generated or transmitted in Provo City without a license therefor.
(a) The unauthorized generation of electric energy in violation of this Section shall be grounds for disconnection from the Provo City electrical system if, in the discretion of the Department Director, disconnection is necessary to serve the purposes stated in Subsection (4)(b) of this Section.
(b) Entities that engage in unauthorized generation shall not receive any rate or bill credits for the energy generated and will be charged for all energy consumed, including consumed energy generated by the entity, at the rate established in the Consolidated Fee Schedule.
(2) A license for the generation of electric energy by an entity other than Provo City or an interlocal entity of which Provo City is a member may be issued by the Director of the Energy Department (herein “the Director”) only in accordance with this Section. The applicant shall complete and submit the license application for consumer generation to the Department. The Department shall have thirty (30) days to review the license application and either issue a license or deny the license request. The Department’s denial of a license application may be appealed to the Mayor within thirty (30) calendar days from the date written notice of denial is sent by the Department. The successful applicant/licensee shall comply with the other requirements of this Section prior to construction or installation of any equipment necessary for the generation of electric energy. A license may be issued if the Director finds the following:
(a) That the proposed activity will conform to all local, state and federal requirements applicable to such activities;
(b) That the proposed activity will not result in any increased technical or financial burden on the electric system or operations of the Department of Energy beyond that normally associated with distributed generation facilities that are designed and installed in accordance with industry standards; and
(c) That the proposed activity will not be detrimental to the health, safety and general welfare of the residents of Provo City or the employees of the Department.
(3) The Director may refuse to issue a license where the exercise of that power is not contrary to applicable state or federal law.
(4) Each license shall be subject to the following regulations:
(a) Provo City may at any reasonable time inspect any facilities of the applicant/licensee which are directly or indirectly used in the licensed activity.
(b) Provo City may impose any condition on the issuance or continuation of a license which is necessary to:
(i) Maintain the integrity and reliability of the Provo City electric system; or
(ii) Maintain the health, safety and general welfare of the residents of Provo City or the employees of the Department in relation to the proposed activity.
(c) The violation of any condition imposed on the issuance or continuation of a license shall be a basis for revoking the license to which it applies.
(d) Provo City may impose an initial fee and annual fees upon the licensee, the amount of which may include all costs incurred by Provo City which are associated with the licensing and regulatory functions described in this Section.
(e) A license for the generation of less than twenty-five (25) kW is subject to the following additional conditions:
(i) The license is conditioned upon the licensee entering into the standard “Net Metering Agreement” between the licensee and the City;
(ii) The licensee shall adhere to the current “Net Metering Standards” adopted by the Department. Any failure to comply with these standards will result in an immediate suspension of the license and disconnection from the City’s electrical system without advanced notice to licensee. Within five (5) business days of the suspension and disconnection, the Department shall issue written notice to the licensee who must remedy the violation before the generation will be connected to the City’s electrical system and/or reinstatement of the license. The licensee shall be responsible for the Department’s actual costs to enforce this Section; and
(iii) The billing of such licensees shall be governed by either Subsection (5) or (6) of this Section, in accordance with the terms of those Subsections.
(f) Industrial and commercial electric service account holders are eligible for a license for the generation of twenty-five (25) kW or more, subject to the following additional conditions, except as specifically provided otherwise in a written agreement between Provo City and the generating entity, which may be entered into to accommodate the circumstances described in Section 12.03.090, Provo City Code, or where otherwise determined to be in the best interests of Provo City:
(i) Before such a license may be issued, the applicant must enter into an agreement, in a form approved by the Director, to sell all the electric energy generated by the licensee to the Utah Municipal Power Agency, a behind-the-meter generation license agreement with Provo City, and an interconnection agreement with Provo City;
(ii) Termination of said agreement with the Utah Municipal Power Agency, or failure by the licensee to adhere to the terms of said agreement, shall be grounds for the Director to revoke the license; and
(iii) Such licensees shall be charged for the electricity that is consumed, including consumed energy generated by the licensee, at the rates set forth in the Consolidated Fee Schedule, as amended from time to time by the Municipal Council, that are applicable to the category of service accounts of which the licensee is a part and shall not receive any rate or bill credits from Provo City for the energy generated.
(5) Residential service accounts licensed to generate electricity in Provo City that meet the criteria in Subsections (5)(a) and (b) of this Section shall be governed by Subsection (5)(c) of this Section:
(a) The account owner, as of October 4, 2016:
(i) Was licensed under this Section;
(ii) Had applied for a license under this Section; or
(iii) Had executed with a company that installs distributed generation systems a contract that obligated the account owner to purchase and install such a system and the account owner meets all other requirements for issuance of a license under this Section.
(b) A residential account owner who meets the criteria in Subsection (5)(a) of this Section is nevertheless eligible to be billed as described in Subsection (5)(c) of this Section only so long as:
(i) The system used to generate electricity is the same system that met the criteria in Subsection (5)(a) of this Section. If that system has been subsequently replaced, including upgrades or repairs that essentially constitute a replacement of the system, the account owner is no longer eligible;
(ii) The account owner is the same individual that met the eligibility requirements in Subsection (5)(a) of this Section or meets the eligibility requirements to be a transferee in Section 12.02.030(7)(a) or (b), Provo City Code; and
(iii) The account owner is generating electricity at the same physical address that met the eligibility requirements in Subsection (5)(a) of this Section or meets the eligibility requirements to be a transferee in Section 12.02.030(7)(c), Provo City Code. An account owner generating electricity at a different physical address that meets the requirement in this subsection only by virtue of Section 12.02.030(7)(c), Provo City Code, is only eligible if the account owner has physically moved the actual generation system from the original physical address.
(c) Such accounts shall:
(i) Be charged for the electricity that is received from the Department at the rates set forth in the Consolidated Fee Schedule, as amended from time to time by the Municipal Council, that are applicable to residential service accounts generally or to a residential service class of which the account is a part;
(ii) Be credited for the electricity that is generated and transmitted to the Department at the same rates that apply to the charges described in Subsection (5)(c)(i) of this Section;
(iii) Carry over any total electricity credit resulting when the credits under Subsection (5)(c)(ii) of this Section exceed the charges under Subsections (5)(c)(i) and (iv) of this Section to successive billing cycles until the billing cycle that includes February 28 in any year, at which time any remaining credit shall lapse; and
(iv) Be subject to all other charges, fees, and rates set forth in the Consolidated Fee Schedule, as amended from time to time by the Municipal Council, that are applicable to residential service accounts generally or to a residential service class of which the account is a part.
(6) Residential service accounts licensed to generate electricity in Provo City that do not meet the criteria in Subsection (5) of this Section shall:
(a) Be charged for the electricity that is received from the Department at the rates set forth in the Consolidated Fee Schedule, as amended from time to time by the Municipal Council, that are applicable to residential service accounts generally or to a residential service class of which the account is a part;
(b) Be credited for the electricity that is generated and transmitted to the Department at the rate defined for the crediting of residential electricity generation in the Consolidated Fee Schedule, as amended from time to time by the Municipal Council;
(c) Carry over any total credit resulting when the credits under Subsection (6)(b) of this Section exceed the charges under Subsections (6)(a) and (d) of this Section to successive billing cycles until the billing cycle that includes February 28 in any year, at which time any remaining credit shall lapse; and
(d) Be subject to all other charges, fees, and rates set forth in the Consolidated Fee Schedule, as amended from time to time by the Municipal Council, that are applicable to residential service accounts generally or to a residential service class of which the account is a part.
(7) This Section shall be interpreted in a manner consistent with the provisions of applicable state and federal law.
(8) This Section shall not apply to the generation or transmission of electric energy by Provo City or any interlocal entity of which Provo City is a member.
(9) This Section shall not apply to the temporary generation of electric energy for emergency or standby purposes, except as noted below.
(a) All emergency or standby generation shall not be interconnected with Provo City’s power system at any time. A positive, physical means of transferring and separating loads between normal and alternate sources of supply must be used to prevent inadvertent interconnection.
(b) All emergency or standby generation shall comply with the provisions of the latest revision of the National Electric Code.
(10) Nothing in this Section shall be construed to mean that the Municipal Council may not amend, enact, or repeal any provision of the Provo City Code or any portion of the Consolidated Fee Schedule so as to create, modify, or terminate any fee, rate, charge, service class, rate schedule, or rate structure for electrical service, including, but not limited to, implementing entirely new ways of monitoring and charging for the use of the Department’s electrical service and/or electrical system. Unless specifically and expressly provided otherwise, any such changes shall be applicable to every service account affected by the terms of the change.