For the purposes of this article, the terms below shall have
the meanings given herein. When not inconsistent with the context,
words used in the present tense include the future tense, words in
the plural include the singular, and words in the singular include
the plural.
AVOIDED COSTS
Incremental costs to the Borough of electric energy, capacity,
or both, which, if not for the purchase from the qualifying facility,
the Borough would generate itself or purchase from another source.
BACKUP POWER
Electric energy or capacity supplied by the Borough to replace
energy ordinarily generated by a facility's own generation equipment
during an unscheduled outage of the facility.
DECOMMISSIONING COSTS
Shall be those costs associated with the removal of a qualifying
facility from the Borough's electric grid.
INTERCONNECTION COSTS
The reasonable costs of connection, switching, metering,
transmission, distribution, safety provisions, and administration
incurred by the Borough directly related to the installation and maintenance
of physical facilities necessary to permit interconnected operations
with a qualifying facility. Interconnection costs do not include any
costs included in calculation of avoided costs. Interconnection costs
shall include, but not be limited to, the costs associated with municipal
administration, municipal audit, load management and monitoring, load
dispatch or curtailment services, ongoing inspection and monitoring
of interconnection, physical and digital maintenance of both the Borough's
and the qualifying facility's side of the interconnection, interference
with market pricing associated with congestion, delivery, or any other
PJM fee or charge now in effect or imposed in the future, capital
costs associated with the interconnection, costs assessed by the larger
regional grid which may be necessitated by the load associated with
the installation, consulting engineering costs, legal costs, and regulatory
filing costs.
INTERRUPTIBLE POWER
Electric energy or capacity supplied by the Borough subject
to interruption by the Borough under specified conditions.
MAINTENANCE POWER
Electric energy or capacity supplied by the Borough during
scheduled outages of the qualifying facility.
PLANNING YEAR
The following year's guaranteed energy output from a
qualifying facility that shall be agreed upon by the parties and held
as a required output for planning purposes.
PURCHASE
The purchase of electric energy, capacity, or both from a
qualifying facility by the Borough.
SALE
The sale of electric energy, capacity, or both by the Borough
to a qualifying facility.
SUPPLEMENTARY POWER
Electric energy or capacity supplied by the Borough and regularly
used by a qualifying facility in addition to that electric energy
or capacity which the qualifying facility generates/provides itself.
SYSTEM
The facilities, lines, and equipment used to supply electric
energy and/or capacity from suppliers to customers.
SYSTEM EMERGENCY
A condition on the Borough's system or any interconnected
system that may result in an imminent significant disruption of service
to customers or may imminently endanger life or property.
This article sets forth the manner in which the Borough will
discharge duties imposed upon it by Title II of the Public Utility
Regulatory Policies Act of 1978 and FERC's implementing orders,
including, without limitation, qualifying facility Rates and Requirements
Implementation Issues Under the Public Utility Regulatory Policies
Act of 1978, Order No. 872, 85 FR 54638 (Sept. 2, 2020), 172 FERC
61,041 (2020).
This article shall apply to any purchases from or sales to any
qualifying facility made by the Borough.
The criteria for qualification of small power production facilities
and cogeneration facilities as qualifying facilities under this article
are the same as those adopted by FERC, including, but not limited
to, 18 CFR 292.203, 292.204, 292.205, and 292.206, as amended.
To the extent required by law, the Borough shall, upon request,
make available the data necessary to enable qualifying facilities
to estimate the Borough's then-current estimated avoided cost
with respect to both energy and capacity, using the procedures and
requirements set forth in this article. Likewise, on an annual basis,
or as needed, the operator of the qualifying facility shall make data
and estimates available to the Borough for the proper integration
of the facility into the Borough's load pattern in advance of
each planning year.
Any qualifying facility operating in the Borough shall provide
adequate staff and equipment to ensure the safety and reliability
of interconnected operations and comply with all Borough requirements
and specifications. This equipment shall be specifically designed,
installed, and operated to protect interconnected operations between
the qualifying facility and the Borough's system. The qualifying
facility shall be solely responsible for the cost of obtaining, installing,
maintaining, repairing, renovating, replacing, removing, and operating
this equipment. Access to the facility and inspection of all equipment
is a required right of interconnection.
Upon request by a qualifying facility, the Borough shall provide,
at rates reasonably determined by the Borough, supplementary power,
backup power, maintenance power, and interruptible power; provided,
however, that the Borough shall not be obligated to provide such services
if the Borough determines in its sole discretion that such service
would impair its ability to render adequate service to its other customers
or would be unduly burdensome on the Borough's system. Nothing
herein shall require the Borough to offer power to the qualifying
facility or its property owner at the same rate or same regularity
as other commercial or residential customers of the Borough system.
The Borough can curtail supply or adopt a supplementary power rate
as reasonable for these services.
The Borough may wheel power to another utility if the qualifying
facility approves. This provision shall not eliminate the responsibility
of the Borough to purchase power from the qualifying facility if the
qualifying facility does not approve the wheeling transaction. Resale
of power supplied by the qualifying facility is unrestricted.
No legally enforceable obligation will be created until the
qualifying facility has demonstrated, to the Borough's reasonable
satisfaction:
A. The commercial viability of the qualifying facility's project
("project");
B. A financial commitment from the qualifying facility to construct
the project;
C. The project's compliance with all applicable Borough laws, rules,
and regulations, including, but not limited to, this article of the
Borough Code; and
D. The project's compliance with the then-current requirements
of PURPA and any implementing orders from FERC.
This article shall not restrict the creation and execution of
voluntary, written agreements between a qualifying facility and the
Borough consistent with the provisions of this article concerning
the purchase of electric power and/or capacity from the facility.