02/25/2025 Ordinances 10,010 ORDINANCE NO. 10,010
An ordinance to repeal and replace Grand Island City Code; Section 15-76 pertaining to
electric utility rates; to repeal Section 15-76, as now existing, and any ordinance or parts of
ordinances in conflict herewith; add Section 15-80; and to provide for publication and the effective
date of this ordinance.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF GRAND
ISLAND,NEBRASKA:
SECTION 1. Section 15-76 of the Grand Island City Code is hereby amended to read as
follows:
§15-76. Co-Generation Standby
Applicable in the territory served by the City of Grand Island at locations acceptable to the City
who meet all of the following conditions:
1. Take three-phase service from the City's system at a nominal standard voltage of 13,800
volts or greater.
2. Operates any PURPA-eligible electric generating equipment in parallel with the City's
electric system with availability to produce energy at an average of 65% of nameplate
capacity during the hours of 12:00 PM and 7:00 PM, June 15 through September 15.
3. Requires 1,000 kW or more of standby capacity from the City.
4. Desire use of the City's electric service for temporary backup or maintenance power and
energy.
5. The City determines that it has sufficient capacity available in production and transmission
facilities at the location where service is requested.
Not applicable to resale service. Service under this rate is only provided via an agreement for
standby service.
Rate:
Effective Date: October 1,2024
Customer Charge, per month $1,000.00
Distribution Standby Rate $5.79/kW-month of Standby Capacity
Monthly Standby Usage Demand $9.16/kW-month
Summer
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ORDINANCE NO. 10,010 (Cont.)
Winter $4.91/kW-month
Excess Usage Demand
Summer $14.95/kW-month
Winter $10.70/kW-month
Firm Energy Usage (per kWh)
Summer
First 450 kWh per kW of Monthly $0.049
Usage Demand
Excess $0.040
Winter
First 450 kWh per kW of Monthly $0.047
Usage Demand
Excess $0.037
Plus the applicable Power Cost Adjustment charge
Effective Date: October 1,2025
Customer Charge, per month $1,000.00
Distribution Standby Rate $5.79/kW-month of Standby Capacity
Monthly Standby Usage Demand $9.61/kW-month
Summer
Winter $5.21/kW-month
Excess Usage Demand
Summer $15.40/kW-month
Winter $11.00/kW-month
Firm Energy Usage (per kWh)
Summer
First 450 kWh per kW of Monthly $0.051
Usage Demand
Excess $0.041
Winter
First 450 kWh per kW of Monthly $0.048
Usage Demand
Excess $0.038
Plus the applicable Power Cost Adjustment charge, Power Factor Correction Charge, and
Electric City Dividend.
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ORDINANCE NO. 10,010 (Cont.)
Definition of Standby Capacity: Standby Capacity is defined as the lower of:
A. Customer's accredited summer capability, as determined under the procedures established
by Attachment AA of the Southwest Power Pool Open Access Transmission Tariff, or
B. The customer's gross demand, defined as the highest 30-minute integrated demand of
customer facility as determined by a meter that measures total load, including amounts that may
be served by customer-owned generation, or
C. The Contract Standby Capacity, as stated in the service contract between the Customer and
City.
Standby Capacity will be set for a 12-month period beginning on January 1 of each calendar year
based on the above criteria applied to the prior October 1 through September 30.
Determination of Monthly Standby Usage Demand: Monthly Usage Demand equals the
Customer's measured net demand (gross usage less output of customer-owned generation used to
serve customer energy requirements) in a given month, less the capacity associated with any
generation that is out of service for a maintenance outage that has been approved by the City (see
"Maintenance Outages" section of this rate schedule), up to the Contract Standby Capacity.
Determination of Excess Usage Demand: Excess Usage Demand equals the Customer's
measured gross demand (metered usage including output of customer-owned generation used to
serve customer energy requirements) in a given month, less the Standby Capacity.
Determination of Hourly Usage Energy: Hourly Usage Energy equals the energy usage by
customer in excess of the output of customer-owned generation, provided that the energy usage
in any hour cannot be less than zero. In the event that customer-owned generation produces
excess energy in a given hour, the Monthly Usage Energy for that interval shall be zero and any
excess energy shall be reimbursed under the "Excess Energy Rate" section of this rate schedule.
Determination of Distribution Standby Demand: The Distribution Standby Demand rate is
paid on the Standby Capacity as defined herein.
Determination of Firm Energy: Firm Energy is determined hourly and is equal to Hourly
Usage Energy minus Standby Contract Capacity, provided that the Firm Energy in any hour
cannot be less than zero.
Determination of Standby Energy: Standby Energy is determined hourly and is equal to the
Hourly Usage Energy up to the Standby Capacity.
Deposit: Two (2)times the highest estimated monthly bill. Deposits held until Customer no
longer takes service from the District.
Excess Energy Rate: In the event the customer's generators produce excess energy over the
energy used by the customer's facility and the customer has not made arrangements with a third
party to purchase said energy, the energy shall be purchased by the City at the real-time
locational marginal price for the Grand Island load settlement location in the Southwest Power
Pool Integrated Marketplace.
Billing for Actual Demand: If customer takes service associated with the standby capacity from
City without approval of a maintenance outage, the customer will be billed for its Actual
Demand based on Schedule 100, provided that charges for Distribution Standby Service will be
credited against the demand charges applicable to said customer.
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ORDINANCE NO. 10,010 (Cont.)
Billing for Firm Energy: Firm Energy is billed at the established rate in this rate schedule,
including applicable monthly Power Cost Adjustment.
Billing for Standby Energy: Standby Energy will be assessed based on the number of kilowatt-
hours consumed in any given hour multiplied by the cost of purchased energy from the
Southwest Power Pool. The cost of purchased energy will be the higher of the day-ahead or real-
time locational marginal price for the Grand Island load settlement location plus 0.0015 per kWh
($1.50 per MWh). In no instance shall any one (1) hour interval be assessed at less than$0.0015
per kWh($1.50 per MWh), which will be the minimum assessed hourly rate calculated.
Maintenance Outages: Customer may take up to 14 days per year of maintenance outages
without being billed for Actual Demand under the following conditions:
1. Outages must be scheduled at least 120 days in advance during the period of September 15
and December 1 and March 15 through May 31, with written notification provided to the City
and approval or rejection provided in writing to the customer within 7 days, or
2. During other periods as agreed-upon by the City based on weather conditions, loads, and
local and regional generation availability, provided the customer must notify the City at least 14
days prior to any planned outage, with the City providing an approval or rejection within 7 days
of the request.
Minimum Bill: The minimum bill shall be the sum of the following:
1. Customer Charge plus
2. Distribution Standby Rate multiplied by the contracted standby capacity,plus
3. Generation Standby Rate multiplied by the contracted standby capacity, plus
4. Electric City Dividend.
Specific Terms and Conditions Applicable to Standby Rate: The following terms and
conditions are specific to service provided under this rate schedule:
A. Contract Year: All contracts under this schedule shall be for a minimum period of one
year, beginning January 1 and ending December 31, and one-year periods thereafter until
terminated, where service is no longer required on 30 days' notice. Greater minimum periods
may be required by contract in situations involving large or unusual loads.
B. Meter Installation: The City shall, at the expense of the customer, install, own, operate, and
maintain the metering to measure the electric power and energy supplied to customer to allow for
proper billing. Said meter will provide data based on the billing intervals used by the Southwest
Power Pool Integrated Marketplace. In addition, the City will install, at the expense of the
customer, a meter that measures the flow of power and energy from the customer's own
generating facility (generation metering). As a result of the electrical or physical configuration of
the customer's generation facility,the City may determine that it is more practical or economical
to use generation metering installed and owned by the customer rather than installing its own
metering equipment. If the City, at its sole discretion, makes such a determination, then the
customer-owned generation metering may be used for billing purposes, so long as such metering
equipment meets the City's standards for quality and accuracy.
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ORDINANCE NO. 10,010 (Cont.)
SECTION 2. Section 15-80 of the Grand Island City Code is hereby added and shall read
as follows:
§15-80. Contribution in Aid of Construction
The Grand Island Utilities Department, pursuant to this section, will make all
improvements and extensions to its distribution system, which shall include street lighting units
and circuits. The purpose of this Section is to establish general conditions under which the Grand
Island Utilities Department will make extensions or additions to electric facilities, or upgrades to
existing electric facilities, and the general guidelines to be followed in determining a customer's
Contribution in Aid of Construction(CIAOC).
The Grand Island Utilities Department will make permanent extensions of electrical lines
and facilities and require a customer's CIAOC based on the customer's estimated new or increased
electrical usage associated with the extension. The Grand Island Utilities Department reserves the
right to determine the advisability and legality of making any extension. Extensions made by the
Grand Island Utilities Department shall remain the property of the Grand Island Utilities
Department.
The Total Extension Investment shall mean the total estimated project cost to serve a
proposed load. This Total Extension Investment shall include, but not limited to, costs related to
materials, labor, vehicles, subsistence, and applicable overheads, but exclude customer-provided
facilities and costs and any costs incurred but not required solely for the customer's service
requirement.
The Grand Island Utilities Department's required Allowable Investment Limit (AIL) and
the CIAOC calculations within this Section are based on the customer's projected revenue. To
mitigate the Grand Island Utilities Department's risk for new loads not meeting projected
thresholds in a given time period, the Grand Island Utilities Department reserves the right, in its
sole discretion,to require the customer to enter into an agreement to guarantee the recovery of line
extension costs prior to construction.
Contribution in Aid of Construction Calculation
1. The contribution in aid of construction calculations in this section apply to:
a. All three-phase commercial customers, regardless of location, on or after the
effective date of this ordinance.
2. All Class 50 and Class 100 three-phase commercial customers will be provided an
AIL equal to 2.5 times the projected annual gross revenue for the customer,excluding
City dividend and sales taxes. In the case of an apartment or other multi-family unit
where individual units are not separated by a firewall,the dwelling will be considered
commercial and revenues will be calculated based on the projected combined revenue
from all services in the complex. The customer will be required to pay to the City an
amount equal to the actual Total Extension Investment less 2.5 times the projected
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ORDINANCE NO. 10,010 (Cont.)
annual revenues for the customer. The City will provide an estimate of the amount
the customer is required to pay and the customer will be required to pay that amount
in advance of construction commencement. The City will charge the customer for
any overage in costs and refund any overpayment within 60 days of the completion
of construction.The revenue estimate shall be based on a)customer's usage at similar
facilitates in other jurisdictions, b) similar existing customers usage, or c) if no other
comparison is available, the City shall assume a load factor and usage based on the
transformer size and historical references.
SECTION 3. Those portions of Section 15-76 as now existing,and any ordinances or parts
of ordinances in conflict herewith be, and hereby are, repealed.
SECTION 4. The validity of any section, subsection, sentence, clause or phrase of this
ordinance shall not affect the validity or enforceability of any other section, subsection, sentence,
clause or phrase thereof
SECTION 5. That this ordinance shall be in force and take effect from and after its passage
and publication, in pamphlet form,within 15 days in one issue of the Grand Island Independent as
provided by law.
Enacted: February 25, 2025
Roger Steele, Mayor
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