1. Scope of Agreement: This
agreement is intended to provide for the safe and orderly
interconnection
and operation of the Member’s small power generation system more
fully
described in the attached Exhibit A (“Generation Facility”) and the electrical
distribution
facilities owned and operated by the Cooperative. This Agreement does
not
supersede and requirements of any of the Cooperative’s Articles of
Consolidation,
By-Laws,
applicable rate schedules, rules and regulations as the same may be amended
from time
to time by the Cooperative (the “Rules”) and which shall be controlling in
the event
of a conflict between this Agreement and such Rules.
2. Establishment of Point of Interconnection: The
point where the electric energy first
leaves the
wires or facilities owned by the Cooperative and enters the wires or facilities
provided
by the Member is the “Point of Interconnection.” The Cooperative and
Member
agree to interconnect the Generation Facility at the Point of Interconnection
in
accordance with the Cooperative’s Rules which are incorporated herein by
reference
and the
Technical Specifications set forth herein.
3. Technical Specifications: The
Generation Facility and all interconnection work shall,
at all
times, comply with and be operated and maintained in accordance with the
following:
i.
National Electric Safety Codes
ii.
National Electric Codes
iii. IEEE
1547 Standards
iv.
Underwriters Laboratory (UL) 1741 Standards
v.
Applicable manufacturer’s recommended maintenance schedule
vi.
Standard prudent engineering practices
vii. Any
other applicable National, State, and local codes and ordinances.
4. Responsibilities of Cooperative and Member for
Installation, Operation and
Maintenance of Facilities: The
Member will, at the Member’s own expense, install,
operate,
maintain, repair, inspect, and be fully responsible for the Generation
Facility,
unless
otherwise specified in Exhibit A. Member shall conduct operations of the
Generation
Facility in compliance with the Technical Specifications set forth herein
and in
accordance with industry standard prudent engineering practices. Maintenance
of the
Generation Facility shall be performed in accordance with the applicable
manufacturers’
recommended maintenance schedule and procedures. An automatic
disconnect
device must be installed between the generator unit and the interconnect
point. The
disconnecting device shall have a visible open gap when in the open position
and be
capable of being locked in the open position. A manual disconnection device
will also
be required in a UL approved disconnect box not to exceed twelve (12) feet
from the
Member’s electric meter on the same side of the structure which the
Cooperative
personnel will have access to at any given time. The cost and maintenance
of the
disconnect devices shall reside with the Member. Member shall also adhere to
all
building codes in the county of which the Generation Facility is located
including
obtaining
the proper building permit (s). The Member shall advise the Cooperative
prior to
making any revisions to the Member’s Generation Facility, the control system
or the
interface between the two power systems after the installation. Any such
revision
must be
acceptable to the Cooperative.
5. Suspension of Interconnection: Interconnection
of Member’s Generation Facility to
the
Cooperative’s electric distribution system shall not compromise or damage the
Cooperative’s
electric distribution system or violate its protection or operational
requirements.
The operation of the Member’s Generation Facility and interconnection
facilities
and the quality of electric energy supplied by the Member to the Cooperative
shall meet
the standards as specified by the Technical Specifications set forth herein.
If the
operation of the Member’s Generation Facility or quality of electric energy
supplied
(in the case of power export) does not meet the standards as specified, then
the
Cooperative will notify the Member to take reasonable and expedient corrective
action.
The Cooperative shall have the right to disconnect the Member’s Generation
Facility
until compliance is reasonably demonstrated. The Cooperative may, in its sole
discretion,
disconnect the Member’s Generation Facility from the Cooperative’s
distribution
system without notice if the operation of the Generation Facility imposes
a threat,
in the Cooperative’s sole judgment, of property damage or bodily injury or
damage to
the Cooperative’s distribution system .
6. Access: The Cooperative
shall have access at reasonable times to the Generation
Facility
whether before, during, or after the time the Generation Facility facilities
first
produce
energy, to perform reasonable on-site inspections to verify that the
installation
and
operation of the Generation Facility complies with the requirements of this
Agreement
and to verify proper installation and continuing safe operation of the
Generation
Facility. The Cooperative shall also have at all times immediate access to
breakers
or any other equipment that will isolate the Generation Facility from the
Cooperative’s
electric system. The cost of such inspection(s) shall be at the
Cooperative’s
expense; however, the Cooperative shall not be responsible for any other
cost the
Member may incur as a result of such inspection(s). The Cooperative assumes
no
liability in the event it exercises its rights under this Section and nothing
in this
Agreement
shall create or impose a duty or any obligation on the Cooperative to access
the Member’s
premises or inspect the Generation Facility.
7. Liability and Indemnification: The
Member shall assume all liability for and shall
indemnify
the Cooperative for any claims, losses, costs, and expenses of any kind or
character
to the extent that they result from the Member’s negligence or other wrongful
conduct in
connection with the design, construction, or operation of the Member’s
facility.
8. Cooperative’s Limited Liability: With
respect to the Cooperative’s interconnection
of Member’s
Generation Facility and any equipment and services provided by the
Cooperative
pursuant to this Agreement, the Cooperative’s liability shall be limited to
claims,
losses, costs and expenses that result from the Cooperative’s gross negligence
or other
willful misconduct, shown by clear and convincing evidence, in connection
with the
operation or maintenance of its electric distribution system.
9. Insurance: The Member, at
the Member’s own expense, shall secure and maintain in
effect
while interconnected to the Cooperative’s distribution system Comprehensive
General
Commercial Liability Insurance insuring the Member’s indemnification
obligations
under Section 6 above, and bodily injury, death, and property damage with
a combined
single limit for bodily injury and property damage of not less than
$500,000.00
for each occurrence.
10. Maintenance Outages: Maintenance
outages will occasionally be required on the
Cooperative’s
distribution system and the Cooperative will provide as much notice and
planning
as practical to minimize downtime. It is agreed that in some emergency cases
such
notice may not be practical. Compensation will not be made for unavailability
of
Cooperative’s
distribution facilities due to distribution system outages.
11. Effective Term and Termination Rights: this
agreement shall be effective for at least
twelve
(12) months upon execution by both Parties and shall continue in full force and
effect so
long as the Member’s Generation Facility is interconnected to the
Cooperative’s
electric distribution system. This agreement may be amended by the
Cooperative
without the consent of the Member upon 30 days prior written notice to
the
Member. This agreement shall terminate on the date that the Member permanently
de-installs
its interconnection of its Generation Facility with the Cooperative’s system
and
provides notice thereof to the Cooperative provided, however, any obligation
contained
herein which would naturally survive the termination of this agreement,
including
but not limited to the Member’s indemnification obligations under Section 7,
shall
survive the termination of this Agreement. This Agreement may also be
terminated
as follows: (a) Cooperative may terminate upon failure by the Member to
generate
energy from the Generation Facility and deliver such energy to the
Cooperative
within six (6) months after completion of the interconnection; (b)
Cooperative
may terminate this Agreement by giving the Member at least thirty (30)
days prior
written notice that the other Party is in default of any of the Technical
Specifications
set forth herein or any other terms and conditions of the Agreement or
the Rules
or any rate schedule, tariff, regulation, contract, or policy of the
Cooperative,
so long as
the notice specifies the basis for termination and the default is not cured
within
such thirty (30) day period; (c) Cooperative may terminate by giving the
Member at
least sixty (60) days notice in the event that there is a material change in an
applicable
law, or any requirement of the Cooperative’s wholesale power supplier or
of any
transmission utility, independent system operator or regional transmission
organization
having responsibility for the operation of any part of the Cooperative’s
distribution
system.
12. Assignment: At any time
during this Agreement, the Member may assign this
Agreement
to a corporation, an entity with limited liability or an individual (the
“Assignee”)
to whom the Member transfers ownership of the Generation Facility;
provided
that the Member obtains the consent of the Cooperative in advance of this
assignment.
The Cooperative’s consent will be based on a determination that the
Assignee
is financially and technically capable to assume ownership and/or operation
of the
Generation Facility. The company or individual to which this assignment will
be
responsible for the proper operation and maintenance of the Generation
Facility, and
must agree
in writing to be subject to all provisions of this Agreement.
13. Notices: Notices given
under this Agreement are deemed to have been duly delivered
if
hand delivered or sent by United States certified mail, return receipt