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HomeMy WebLinkAboutItem 12j - Remote Grid Standalone Power SystemSCE Supplemental Provision Agreement June 7, 2022 Page 1 of 3 DATE: June 07, 2022 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Carmen Masud, Deputy Public Works Services Director SUBJECT: SUPPLEMENTAL PROVISIONS AGREEMENT WITH SOUTHERN CALIFORNIA EDISON FOR A REMOTE GRID STANDALONE POWER SYSTEM Recommendation: Approve SUMMARY The City of Arcadia’s repeater station that provides radio communication for various City departments is located above Chantry Flats Road. Due to the remote location of this equipment, Southern California Edison (“SCE”) identified Chantry Flats as a suitable candidate for a remote grid standalone power system. A standalone power system powered by solar panels and backup power sources will guarantee a stable source of electrical supply to the City’s public safety equipment. It is recommended that the City Council approve the Supplemental Provisions Agreement with Southern California Edison and authorize the City Manager to execute the Agreement for a remote grid standalone power system. BACKGROUND The City of Arcadia’s repeater station is located above Chantry Flats Road accessible only by a fire road on a steep mountainside. Power lines to the repeater station have repeatedly failed due to the difficulty of providing standard maintenance in the wild terrain and are susceptible to windstorms, mudslides, fires, and other hazards. The City has a backup generator at the repeater site, which is used more often than is ideal due to the repeated issues with the traditional supply system. Looking for solutions to modernize the grid and provide greater reliability, SCE identified this location as a suitable candidate for a remote grid standalone power system. A remote grid standalone power system is an electrical service provided to isolated or difficult to service areas and infrastructure on a standalone power system that is permanently disconnected from SCE’s “main” distribution grid. The standalone power system is powered by local sources of electricity such as solar, battery energy storage, or SCE Supplemental Provision Agreement June 7, 2022 Page 2 of 3 alternative fuel powered generation. The objective is to guarantee a stable source of electrical supply to the City’s public safety equipment. DISCUSSION Prior to identifying this location, SCE reviewed other options and locations to provide a reliable electricity source to this area. Unfortunately, due to severe weather conditions, aging infrastructure, and high fire threats in the area, it was determined that providing electrical service through a remote grid is the most reliable way to provide service to this location. Furthermore, SCE will be able to improve area maintenance by utilizing solar power generation versus traditional electrical service through long distribution lines and power poles. A remote standalone power system will also allow SCE to improve resiliency of infrastructure by minimizing the potential of fire hazards. The standalone power system will provide clean, solar powered electrical service to the site. The City will be served under existing SCE rates and tariffs and would not be subject to additional fees for participating in this program. If approved, SCE will file all letters of support for the implementation of the remote grid and will work with the California Public Utilities Commission (“CPUC”) to obtain all proper approvals and permits for implementation. ENVIRONMENTAL ANALYSIS This project is categorically exempt pursuant to the California Environmental Quality Act ("CEQA") under Section 15301 (b), Minor Alterations to Existing Utility Facilities, with no expansion of use. FISCAL IMPACT Upon approval of the Supplemental Provisions Agreement, SCE will install a standalone remote grid and will utilize the existing SCE rates and tariffs for electrical charges. The City of Arcadia would not be subject to additional fees. RECOMMENDATION It is recommended that the City Council determine that this action is categorically exempt under the California Environmental Quality Act (“CEQA”); and approve the Supplemental Provisions Agreement with Southern California Edison and authorize the City Manager to execute the Agreement for a remote grid standalone power system. SCE Supplemental Provision Agreement June 7, 2022 Page 3 of 3 Attachment: Supplemental Provision Agreement REMOTE GRID STANDALONE POWER SYSTEM SUPPLEMENTAL PROVISIONS AGREEMENT Form 14-989 Page 1 of 7 3/2022 This Remote Grid Standalone Power System Supplemental Provisions Agreement (“Agreement”) is entered into as of [Date] (“Effective Date”), by and between Southern California Edison Company (“SCE”) and _________________ (“Applicant”). Applicant and SCE are sometimes also referred to in this Agreement individually as “Party” and collectively as “Parties.” 1. Applicant has requested to receive electric service at Applicant’s Premises by Remote Grid Service. Remote Grid Service shall be installed and provided in accordance with this Agreement, the provisions of SCE Rule 2, Description of Service; Rule 3, Application for Service; Rule 15, Distribution Line Extensions; Rule 16, Service Extensions; the Applicant’s Distribution Line Extension Agreement; and SCE’s design, specifications, and requirements. To the extent the requirements of this Agreement conflict with such Rules, agreements, or other tariffs, the requirements of this Agreement shall govern. SCE’s other tariffs will continue to govern Applicant’s service as applicable. 2. Term This Agreement shall be effective as of the Effective Date and, except as otherwise provided herein, shall continue in effect for 20 years from the Effective Date. This Agreement shall thereafter automatically renew for additional one-year term(s) unless both Parties mutually agree in writing not to renew at least 90 days prior to the expiration date of this Agreement. Should the Applicant elect not to renew this Agreement, the Applicant acknowledges and agrees that while Remote Grid Service is the sole standard service offering for Applicant, upon expiration of this Agreement, Applicant will no longer receive standard electrical service from SCE. If SCE offers standard service other than via the Standalone Power System in the future, Applicant may elect to receive such service at that time. 3. Definitions Unless the context otherwise specifies or requires, capitalized terms used in this Agreement shall have the meanings assigned to them either in this Agreement, including Appendix A, or in SCE’s Rule 1, Rule 15, or Rule 16. If any term is defined in both this Agreement, including Appendix A, and SCE’s Rule 1, Rule 15, or Rule 16, the definition in this Agreement, including Appendix A, shall prevail. 4. Standalone Power System Installation on Applicant’s Premises. A. Applicant’s Responsibility. In accordance with SCE’s Rule 16 and SCE’s design, specifications, and requirements for the installation of Service Extensions generated by a Standalone Power System, subject to SCE’s inspection and approval, Applicant is responsible for: Space for Standalone Power System equipment. Applicant shall provide space, if needed, on Applicant's Premises at a location approved by SCE for a Standalone Power System installation. Easements may be required by SCE to install the Standalone Power System on Applicant’s Premises to serve only the Applicant. If the Standalone Power System equipment will be or is designed to serve other third-party properties, then SCE may at its option install such equipment after appropriate rights of way or easements are obtained, satisfactory to SCE. Detailed information on SCE’s requirements for the Standalone Power System will be furnished by SCE. Form 14-989 Page 2 of 7 3/2022 B. SCE’s Responsibility. SCE will furnish, install, own, and maintain the following Standalone Power System equipment as applicable after Applicant meets all requirements to receive service as provided herein and in SCE’s tariffs: Standalone Power System: The Standalone Power System equipment may include, but is not limited to, photovoltaic panels, battery energy storage, backup fuel powered generator, and/or other associated equipment and facilities, where required. The construction of the Standalone Power System area, including any required fencing, enclosure, vault or cabinet shall conform with applicable laws, codes, and ordinances of governmental authorities having jurisdiction and SCE physical security requirements. Applicant shall not have access to the Standalone Power System equipment area. 5. Design and Installation of Standalone Power System. Electric service by the Standalone Power System shall be provided under the following terms and conditions: A. SCE will be responsible for the planning, design, and engineering of the Standalone Power System. The Applicant design option provisions of Rules 15 and 16 are not available for Standalone Power System equipment, with the exception of the Service Facilities that extend from the Standalone Power System equipment area to the Service Delivery Point. The Standalone Power System may be considered in the determination of the nearest available permanent Distribution Line for purposes of new Distribution Line Extensions under Rule 15 and/or connections for new Service Extensions under Rule 16. SCE will determine the Applicant’s maximum peak power and maximum energy that Applicant may draw from the Standalone Power System. This will be determined by SCE based on the Applicant’s demand and energy usage information provided in accordance with Rule 3. When Applicant is to be served by an existing Standalone Power System, SCE will evaluate the available capacity of the existing Standalone Power System to determine if the existing Standalone Power System can accommodate the requested service or if replacement or reinforcement is necessary. When Applicant is to be served by a new Standalone Power System, SCE will determine the required capacity of the new Standalone Power System to accommodate the requested service. As a condition of receiving Remote Grid Service, the Applicant hereby agrees that Applicant will not exceed and will only operate in accordance with the limitations on maximum peak power and maximum energy as determined by SCE and subject to provisions of Section 5.B and 5.C. B. If, after the date SCE is first ready to provide service, the Applicant has a need for increased load at the Premises from the installed capacity (and therefore the peak power and/or maximum energy usage that may be consumed from the Standalone Power System), all of the following apply: 1) Applicant shall give SCE written notice in advance of any material change in the size, character, or extent of the utilizing equipment or operations for which SCE is supplying electric service, in accordance with Rule 3. In addition, Applicant must not make any such change without SCE’s prior written approval and consent, to be determined in SCE’s sole discretion. 2) SCE will work with the Applicant to optimize the Applicant’s demand profile; if SCE and the Applicant are unable to agree how to optimize the customer’s demand profile such that the fuel powered generator forming part of the Standalone Power System will not run out of fuel between refueling visits, SCE is not obligated to supply additional fuel to the generator forming part of the Standalone Power System outside of scheduled refueling visits. This may result in the Applicant experiencing outages. 3) SCE will require the Applicant to perform an energy audit of Applicant’s facility that identifies potential efficiency opportunities. SCE may consider the audit results and any implementation of audit recommendations in determining whether it can, in SCE’s sole discretion, accommodate any request by Applicant in accordance with Section 5.C. Form 14-989 Page 3 of 7 3/2022 C. If, after the date SCE is first ready to provide service, the Applicant requests an increase in the peak power and/or maximum energy usage that the Applicant can draw from the Standalone Power System, SCE will consider this request and may request reasonable information from the Applicant to enable SCE to make a determination, in its sole discretion, as to whether it can accommodate the Applicant’s request. Applicant hereby agrees to comply with such determination. When SCE determines an increase in the installed capacity of the Standalone Power System would require replacement or reinforcement, such replacement or reinforcement shall be treated in the same manner as would be such a replacement or reinforcement required for service provided under Rule 15, Rule 16, and/or Section 5.A. of this Agreement. 6. On-Site Generation. A. Service by the Standalone Power System may decrease the amount of electricity that can be exported from the Premises because that export will be to the energy storage system component of the Standalone Power System, which will have limited capacity and which is designed to store electricity generated by the Standalone Power System. Applicant agrees not to install or permit the installation of any permanent on- site electricity generation or storage system on the Premises (or any other location that may serve the Premises) that exports to the Remote Grid. The installation of permanent non-export generation must follow the requirements specified in SCE’s Rule 21, Generating Facility Interconnection. B. Applicant agrees not to install or permit the installation of any new temporary generation, or to retain any existing temporary generation, at the Premises without SCE’s prior written consent. Any installation or retention of temporary generators including for emergency, standby, backup, or momentary paralleling purposes must follow the guidelines specified in SCE’s Interconnection Handbook, and any other guidelines, standards, or requirements that are determined by SCE and communicated to Applicant by SCE. SCE’s written consent to the installation or retention of temporary generation may include terms regarding Applicant’s operation of temporary generation, and Applicant hereby agrees it will comply with any such terms. C. Applicant is not eligible to take service under any rate or tariff or participate in any program that involves or potentially involves exporting or selling power directly to SCE, a third party, or into the open market, including but not limited to Schedules NEM, RES-BCT, BioMAT, or Re-MAT. Applicant is also not eligible to participate in demand response programs, including but not limited to the Capacity Bidding Program and the Emergency Load Reduction Program. 7. Force Majeure. SCE shall not be responsible for any delay in its performance of this Agreement resulting from a force majeure event including, but not limited to, shortage of labor or material, strike or other labor disturbance, war, riot, weather conditions, pandemic, epidemic, government rule, regulation or order, including orders or judgments of any court or commission, delay in obtaining any necessary land rights, acts of God, or any other cause or condition beyond the control of SCE. 8. Material Breach. Applicant’s failure to fully comply with Section 4, 5, 6, or 14 will constitute a material breach of this Agreement, which shall give SCE the right to immediately terminate this Agreement upon notice to Applicant. Applicant acknowledges and agrees that while Remote Grid Service is the sole standard service offering for Applicant, upon such termination resulting from Applicant’s material breach, Applicant will no longer receive standard electrical service from SCE. If SCE offers standard service other than via the Standalone Power System in the future, Applicant may elect to receive such service at that time. Form 14-989 Page 4 of 7 3/2022 9. Liability. A. In the event of any breach of this Agreement by the Applicant, SCE reserves all rights to seek recovery of damages from Applicant. In the event of any breach, SCE may also terminate this Agreement as provided in Section 10.B. Applicant shall, at its own cost, hold harmless SCE, its officers, agents, employees, assigns, and successors in interest from and against any and all liability and/or claim for damages arising in contract and/or tort, caused by Applicant or its officers, employees, agents or representatives, or any of them, and arising out of the Remote Grid Service and/or the performance or nonperformance of Applicant’s obligations under this Agreement. B. 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, special, consequential, or punitive damages of any kind whatsoever. 10. Termination of Agreement. A. SCE reserves the right to terminate this Agreement upon no shorter than thirty (30) days’ written notice and to thereafter provide electric service to Applicant through an alternative method of service in accordance with Rules 15 and 16, including by a conventional Distribution Line Extension that may be constructed in the future. B. If Applicant breaches any term of this Agreement, except for Section 4, 5, 6, or 14, for which SCE has the right to immediately terminate this Agreement pursuant to Section 8, SCE shall have the right to terminate this Agreement upon no shorter than thirty (30) days’ written notice. Applicant acknowledges and agrees that while Remote Grid Service is the sole standard service offering for Applicant, upon such termination resulting from Applicant’s breach, Applicant will no longer receive standard electrical service from SCE. If SCE offers standard service other than via the Standalone Power System in the future, Applicant may elect to receive such service at that time. C. Applicant may terminate this Agreement by electing to no longer receive electrical service from SCE via the Standalone Power System. To elect such a termination, Applicant shall provide SCE with written notice no less than thirty (30) days prior to the date of such termination. Applicant acknowledges and agrees that while Remote Grid Service is the sole standard service offering for Applicant, by terminating this Agreement and electing to no longer receive electrical service from SCE via the Standalone Power System, Applicant elects to no longer receive standard electrical service from SCE. If SCE offers standard service other than via the Standalone Power System in the future, Applicant may elect to receive such service at that time. D. Upon termination or non-renewal of this Agreement, SCE may elect to remove some or all of the Standalone Power System. 11. Recorded Memorandum. A memorandum on a form satisfactory to SCE may, in SCE’s discretion, be recorded in the public records of the subject county for the purpose of putting subsequent owners on notice. 12. No Waiver. None of the provisions of the Agreement shall be considered waived by either Party unless the waiver is in writing and manually signed by the waiving Party. The waiver of a provision by one Party will not be construed to mean a waiver of that provision by the Party for any subsequent action, or a waiver of any other provision. 13. Governing Law; CPUC Jurisdiction. This Agreement shall be governed by the laws of the State of California, without reference to its conflicts of laws provisions; provided, however, that this Agreement shall be subject to all of SCE’s applicable tariffs on file and authorized by the Commission. This Agreement and the supplemental provisions herein shall at all times be subject to such changes or modifications as the Commission may direct from time to time in the exercise of its jurisdiction. (T) (D) (T) (T) (T) Form 14-989 Page 5 of 7 3/2022 14. Signatures. The signatories hereto represent that they have been duly authorized to enter into this Agreement on behalf of the party for whom they sign. Southern California Edison Company This contract has been reviewed and approved by: Authorized Name: Title: Signature: Date: Applicant Agreed and accepted by: Applicant’s Legal Name: Title: Signature: Date: (T)