CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Adopt the resolution authorizing execution and approval of new Parallel Operation and Energy Purchase Agreement between the City of Naperville and Nalco Company LLC
body
DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City of Naperville and Nalco Company LLC entered into an original Parallel Operation and Energy Purchase Agreement on August 27, 1985. The Nalco facility was a Qualifying Facility as defined in the federal Public Utility Regulatory Policies Act (PURPA) of 1978. This PURPA legislation was passed to promote increased efficiency in the utilization of energy resources and authorized non-utility entities to enter the business of generating electricity if the electricity they generate was a byproduct of other business processes such as steam used to heat buildings or used in industrial processes. The City is required to purchase energy that is generated but not used by the Nalco facility.
The Interconnection Agreement, signed by both parties, defines the requirements and parameters around the operation of Nalco's generator and the delivery of energy to the Naperville grid. INEOS is the only other Electric Utility customer that operates a cogeneration facility under PURPA.
The only revisions from the current contract are the location of interconnection, to ensure safety of utility crews, and how harmonic distortion shall be governed.
DISCUSSION:
The Nalco facility continues to be a Qualifying Facility under the PURPA of 1978 and the Energy Policy Act of 2005. The facility is interconnected with the Electric Utility system by a dedicated 12.47kV utility feeder. The agreement outlines the interconnection, maintenance, operating, billing, and insurance requirements to allow parallel operation of the cogeneration facility with the City's electric system.
The new agreement moves the point of interconnection, where Nalco's cable meets the E...
Click here for full text