Request for Proposal Solar Photovoltaic Power Purchase...

Request for Proposal

Solar Photovoltaic Power Purchase Agreements

Jacksonville, Florida

December 22, 2014

Bid Due Date: January 27, 2015 by 5:00 PM

Submit responses via email to: [email protected]

mailto:[email protected]

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Table of Contents

1. REQUEST FOR PROPOSAL ................................................................................................. 1

1.1. Scope of Work .................................................................................................................. 1

1.2. Background ...................................................................................................................... 1

1.3. Questions .......................................................................................................................... 2

1.4. Proposal Due Date and Time ........................................................................................... 3

1.5. RFP Schedule ................................................................................................................... 3

1.6. Proposal Format ............................................................................................................... 3

1.7. Required Forms to be Submitted with Proposal............................................................... 4

1.8. Basis of Award of Power Purchase Agreement (PPA) .................................................... 4

1.9. Opening Of Proposals ...................................................................................................... 4

1.10. Rejection of Proposals ...................................................................................................... 4

1.11. Interconnections ............................................................................................................... 4

1.12. Jacksonville Small and Emerging Business ..................................................................... 4

1.13. Public Record Requirements ............................................................................................ 5

1.14. Ex Parte Communication ................................................................................................. 5

2. CONTACT TERMS AND CONDITIONS ............................................................................. 7

2.1. Contract Document .......................................................................................................... 7

2.2. Definitions ........................................................................................................................ 7

2.2.1. Company ...................................................................... Error! Bookmark not defined.

2.3. Regulatory and Environmental Compliance .................................................................... 7

2.4. Invoicing and Payment ..................................................................................................... 7

2.5. Option to Renew Terms or Purchase upon Expiration ..................................................... 7

2.6. Curtailment ....................................................................................................................... 8

EXHIBIT A ..................................................................................................................................... 9

EVALUATION CRITERIA, DETAIL DESCRIPTION AND RESPONSE FORM ..................... 9

Submittal Instructions ................................................................................................................. 9

Evaluation Criteria ...................................................................................................................... 9

Proposer’s Checklist .................................................................................................................. 10

Proposer's Certification ............................................................................................................. 11

Section 1 – General Information ............................................................................................... 12

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Executive Summary ............................................................................................................. 13

Section 2 – Project Information ................................................................................................ 14

Key Evaluation Element ........................................................................................................ 14

Project Location and Information .......................................................................................... 15

Section 3 – Pricing .................................................................................................................... 19

Key Evaluation Element ........................................................................................................ 19

Pricing Information................................................................................................................ 20

Section 4 – Delivered Energy Profile ....................................................................................... 22

Section 5 – Financial Information ............................................................................................. 24

Section 6 – Proposed Contract .................................................................................................. 28

EXHIBIT B ................................................................................................................................... 29

JEA Solar Photovoltaic Policy ...................................................................................................... 29

EXHIBIT C ................................................................................................................................... 30

JEA Procedure ES 20202 902 for Distribution Interconnection ................................................... 30

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1. REQUEST FOR PROPOSAL

1.1. Scope of Work

JEA is seeking competitive proposals (Proposals) from companies or individuals (Proposers)

to enter into a Solar Photovoltaic (PV) Power Purchase Agreement (PPAs) whose location

are within JEA’s electric service territory. JEA is interested in purchasing up to 38

Megawatts of alternating current (MWAC) of Solar PV and all environmental attributes

(Renewable Energy Credits (RECs), etc.) of produced energy. There will be multiple PPAs

awarded under this Request for Proposal (RFP). It is JEA’s intent to secure PPAs for solar

PV facilities as follows:

1. At least 20 MW of the aforementioned 38 MW shall be in the form of utility-scale

(typically over 5 MW) solar farms, or

2. At least 2 MW of the aforementioned 38 MW shall be in the form of 500 kW or less

“solar gardens”.

The Proposer will be responsible for the design, construction, installation, delivery,

operation, maintenance, real estate, and ownership of the PV systems. The Proposer will be

responsible for interconnection studies, required equipment, maintenance, ancillary services,

and other necessary interconnection-related costs and arrangements throughout the term of the

PPA. JEA will purchase the power output measured in megawatt-hours (MWh) for a

minimum term of 20 years, with an option to renew, under a firm-fixed price.

Please refer to the attached JEA Solar Photovoltaic Policy under Exhibit B, attached hereto,

for additional information.

1.2. Background

JEA owns, operates and manages the electric system established by the City of Jacksonville,

Florida in 1895. JEA also owns, operates and manages Jacksonville’s water and sewer

system that was established in 1880 and transferred from the City of Jacksonville in June

1997. JEA is Florida's largest municipally owned electric utility and the seventh largest in the

United States. JEA currently serves over 427,000 electric accounts, 313,000 water accounts

and 240,000 wastewater accounts in Jacksonville and adjacent counties.

The governing body of JEA consists of seven members appointed by the Mayor and

confirmed by the City Council. JEA is not subject to regulation by the Florida Public Service

Commission except for certain environmental, health and electric safety issues, energy

conservation, power plant and transmission line siting, territorial, and electric rate structure

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matters.

The JEA’s electric system includes generation, transmission, interconnection and distribution

facilities. The wholly-owned generating facilities, located on five plant sites in the City,

consist of two dual petroleum coke/coal fired circulating fluidized bed steam generating

units, one dual oil/gas fired steam turbine-generator unit, four oil fired, five gas/oil fired

combustion turbine-generator units, and one combined cycle unit, with a combined installed

capacity of 2,896 Winter MW. In addition, JEA is entitled to 50% of the capacity of Units 1

and 2 of the St Johns River Power Park, a coal-fired, steam electric generating station, jointly

owned by JEA and Florida Power and Light Company (FPL), providing 638 net MW of

capacity. JEA has 200 MW of the capacity of Unit 4 of the Robert W. Scherer Electric

Generating Plant, a coal-fired, steam-electric generating station, also jointly owned by JEA

and FPL, located near Forsyth, Georgia.

JEA has renewable PPAs for 9.6 megawatts of methane-generated power from Trail Ridge

Landfill and 12.6 megawatts of energy from a 100 acre solar project on the west side of

Jacksonville.

JEA has direct interconnections with FPL, Seminole Electric Cooperative, Inc. and the

Georgia Integrated Transmissions System that includes Georgia Power Company,

Oglethorpe Power Corporation and Municipal Electric Authority of Georgia.

1.3. Questions

All requests for further information and clarification regarding this proposal must be directed

solely to the following JEA representative:

Steve McInall, Director, Electric Production Resource Planning

JEA

21 West Church Street, Tower-10

Jacksonville, Florida 32202

Email: [email protected]

Proposer’s questions must be communicated via e-mail. If further explanation is deemed

necessary, JEA will notify each Proposer by addendum.

The deadline for questions is January 19, 2014. JEA’s responses to questions will be posted

on JEA.com.


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1.4. Proposal Due Date and Time

All Proposals are due to JEA via email delivery by 5:00 PM on January 27, 2015. Electronic

proposals are to be in Word or PDF formats. Proposals must include one scanned copy of an

initialed Proposer’s Checklist and a signed Proposer’s Certification located in Exhibit A.

Submittals shall be made to:



Clearly mark on the header of the Email – “RESPONSE TO JEA SOLAR PV RFP 2015”.

1.5. RFP Schedule

Activity Date

Issue RFP December 22, 2014

Deadline for Questions from respondents January 19, 2015

Proposal Due Date January 27, 2015

JEA Evaluation Complete February 24, 2015

Contract Negotiations TBD

Contract Executed TBD

Responses will be allowed after the initial dates until the 38 MW

of Solar PV detailed in the policy is fully subscribed. Responses

submitted after January 27, 2015 will be evaluated on a case-by-

case basis.

TBD

Bidders must submit Proposal by 5:00 PM EST on the due date listed in the table above.

1.6. Proposal Format

Proposals shall be submitted using the forms attached to this RFP located in Exhibit A.

If an item is not applicable, then the Bidder should indicate “N/A” and provide an

explanation as to why the information is not applicable. If a Bidder is proposing multiple

systems, complete sections 2, 3, and 4 for each project. Clearly identify in the Executive

Summary how many projects are being proposed.


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1.7. Required Forms to be Submitted with Proposal

The following forms must be submitted for a Proposal to be considered:

Proposal Form which can be found in Exhibit A.

1.8. Basis of Award of Power Purchase Agreement (PPA)

JEA will Award PPAs to the responsive and responsible Proposers whose Proposal(s) meet or

exceed the Evaluation Criteria as stated in Exhibit A, attached hereto.

1.9. Opening of Proposals

All Proposals received by the Due Date shall be opened at 5:00 PM on January 27, 2014. JEA

has the right to waive any irregularities or informalities in the Proposals.

1.10. Rejection of Proposals

JEA may reject any Proposal that deviate from the requirements of this RFP. Additionally:

JEA reserves the right to reject any bids not meeting goals.

JEA reserves the right to reject any bids from firms that do not demonstrate financial

stability and ability to provide proper financing for a project.

Not all Proposals are guaranteed a contract.

1.11. Interconnections

The Proposer shall be responsible for any cost associated to the interconnection studies, required

equipment, maintenance, ancillary services, and other necessary interconnection-related costs

and arrangements to transmit the energy to JEA service territory.

Proposer is to prepare the proposal with an adder of $100,000 per 1 MW incremental cost for

associated line and substation work that may be needed for the interconnection to JEA

transmission/distribution system. JEA will provide the detailed associated costs to the

successful Proposers during contract negotiation.

1.12. Jacksonville Small and Emerging Business

JEA supports the utilization of local companies who participate in the Jacksonville Small and

Emerging Business (JSEB) Program. The Proposer is encouraged to consider utilizing JSEB

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companies where appropriate in their operations. JSEB information can be found at

http://www.coj.net/departments/jacksonville-small-emerging-business.aspx.

For more information contact:

G. Nadine Carswell

JSEB Manager

JEA

21 West Church Street, CC-6


Phone: (904) 665-6257


1.13. Public Record Requirements

The parties acknowledge that JEA is a body politic and corporate that is subject to Chapter 119,

Florida Statutes, and related statutes known as the "Public Records Laws". Proposers should be

aware that all submittals provided to JEA are subject to public disclosure and will not be

afforded confidentiality unless clearly exempt by law.

A Proposer claiming in good faith that its response contains information that is exempt from the

Public Records Law shall clearly segregate and mark that information as confidential, and

provide the specific statutory citation for such exemption. Be aware that the designation of an

item as exempt from disclosure may be challenged in court by any person or entity. By the

designation of material in a Proposal as exempt, the Proposer agrees to indemnify, hold

harmless, and defend JEA and its employees and agents for any award to a plaintiff for damages,

costs and attorneys' fees, and for costs and attorneys' fees incurred by JEA by reason of any

claim or action related to the Bidder's designation of material as exempt.

1.14. Ex Parte Communication

Ex Parte Communication is strictly prohibited. Ex Parte Communication is defined as any

inappropriate communication concerning a Solicitation between a firm submitting a Proposal and

a JEA representative during the time in which the Solicitation is being advertised through the

time of Award. Examples of inappropriate communications include: private communications

concerning the details of Solicitation in which a Proposer becomes privy to information not

available to the other Proposers. Social contact between Proposers and JEA Representatives

should be kept to an absolute minimum during the solicitation process.

Failure to adhere to this policy will disqualify the noncompliant Company's Proposal.

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For more information on Ex Parte communications, see JEA Procurement Code, Section 2-103,

which is available at www.jea.com.

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2. CONTRACT TERMS AND CONDITIONS

2.1. Contract Document

Provided below are the Contract terms and conditions that will be incorporated by reference in

the Contract Document executed by the Company and JEA. The Contract Document will

incorporate by reference the terms contained in the Request for Proposal portion of this

document provided in Section 1, the Contract Terms provided in Section 2; and the Technical

Specifications provided in Section 3.

2.2. “Company” Definition

The legal person, firm, corporation or any other entity or business relationship with whom JEA

has executed the Contract. Where the word "Company" is used it shall also include permitted

assigns. Prime Contractor, Contractor, Vendor, Supplier and Company shall be considered

synonymous for the purpose of the Contract.

2.3. Regulatory and Environmental Compliance

The Company is responsible for meeting all federal, state and local permits, licenses,

approvals and/or variances that are currently or become in the future, required for the

operation of the project and the delivery of energy to JEA. The Company’s facility operation

records should be available for periodic inspection by JEA for purposes of auditing

environmental compliance and safety. These records shall remain available throughout the

term of the contract and for five years afterwards.

2.4. Invoicing and Payment

All invoicing shall be based on monthly meter readings at the Point of Interconnection. All

costs associated with billing shall be included in the offered price. JEA will not pay any

additional charges for billing services. Invoices shall be provided to JEA within ten days after

the last day of each month. The Company shall allow JEA thirty (30) days payment due date,

from the date the statement is received.

2.5. Option to Renew Terms or Purchase upon Expiration

Three years before the expiration date of the term of the PAA, the Company shall grant JEA

the option to:

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• Renew the term of the PPA a minimum of five years increment at a negotiated

fixed price, or

• Purchase the solar photovoltaic system for a negotiated purchase price.

2.6. Curtailment

JEA may exercise its ability to curtail the energy delivery from time-to-time due to power

quality or system reliability requirements. The Company under any PPA resulting from this

RFP is solely responsible for any lost revenue associated with such curtailment.

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EXHIBIT A

EVALUATION CRITERIA, DETAIL DESCRIPTION AND RESPONSE FORM

Evaluation Criteria

Submitted responses will be evaluated on the following basis:

a. Location 10 points

b. Community Outreach Content 5 points

c. JSEB Participation 5 points

d. Cost ($/MWh) 80 points

TOTAL 100 points

Submittal Instructions

A. Proposal Submittal

All Proposals are due to JEA via email delivery by 5:00 PM on January 27, 2015. Electronic

proposals are to be in Word or PDF formats. Proposals must include one scanned copy of an

initialed Proposer’s Checklist and a signed Proposer’s Certification.

Submittals shall be made to:


JEA

21 West Church Street, Tower-10



Clearly mark on the exterior of the envelope and the header of the Email – “RESPONSE TO

JEA SOLAR PV RFP 2015”.

B. Forms

If an item is not applicable, then the Bidder should indicate “N/A” and provide an

explanation as to why the information is not applicable. If a Bidder is proposing multiple

systems, complete sections 2, 3, and 4 for each project. Clearly identify in the Executive

Summary how many projects are being proposed. Pages 10 to 28 of this RFP constitute the

submittal package to be completed by the Company and submitted to JEA.

Submittal Package

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Proposer’s Checklist

Item Initial

Proposer’s Certification

Section 1 – General Information

Section 2 – Project Information

Section 3 – Pricing

Section 4 – Delivered Energy Profile

Section 5 – Financial Information

Section 6 – Proposed Contract

Appendix A

Last three (3) fiscal year audited financial statements

W-9

Financier Letter (If third party financing)

Company Name

Email one scanned copy of the initialed Proposer’s Checklist to [email protected].


Submittal Package

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Proposer's Certification

By submitting a Proposal, the Proposer certifies that it has read and reviewed all of the

documents pertaining to this RFP, that the person signing below is an authorized representative

of the Company, that the Company is legally authorized to do business in the State of Florida.

We have received addenda through

Handwritten Signature of Authorized Officer of Firm or Agent Date

Printed Name and Title

Company Name

Email one scanned copy of the signed Proposer’s Certification to [email protected].


Submittal Package

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Section 1 – General Information

Provide name of the company, business address, primary and secondary contact name, title,

telephone and email address.

Company Name:

Business

Address:

Primary Contact

Name:

Title:

Phone:

Email:

Secondary Contact

Name:

Title:

Phone:

Email:

Submittal Package

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Executive Summary

Provide an overall description of the project, including the key components of the project.

Identify, if more than one, how many projects are being proposed:

* Insert additional pages if needed.

Submittal Package

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Section 2 – Project Information

Key Evaluation Element

A. Location (10 points)

JEA desires to have the Solar PV systems distributed around the service territory, in order to

reduce weather impacts. Points will be awarded in ½ point increments based on distance from

JEA’s closest existing or planned utility scale solar facility (currently, one facility near Brandy

Branch). Coordinates for the existing utility scale solar facility are N 30.320810, W -81.957274.

Example:

Company A - 8.7 miles from closest existing solar facility– Score = 8.5 points

Company B - 3.4 miles from closest existing solar facility– Score = 3.5 points

As further solar contracts are awarded, and additional utility scale solar facilities are located, the

location of the “closest” unit will be modified.

B. Community Outreach Content (5 points)

Contractor shall include Community Outreach elements in their proposals. At a minimum, data

shall be provided to FSU’s SUNGRIN program. Other efforts can include demonstration panels,

information kiosks, or solar education centers. Bidders offering identifiable community outreach

elements will receive 5 points. Bidders not identifying any community outreach elements will

receive zero points.

C. JSEB Participation (5 points)

Contractor shall make best effort to involve JSEB vendors where appropriate. Bidder offering the

greatest percentage of JSEB participation will be awarded 5 points. Other bidders will receive a

proportionate share of 5 points, using the same methodology as illustrated in the “Cost” section.

Contractor will be required to submit JSEB participation documentation once the project is

constructed.

Submittal Package

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Project Location and Information

A. Project Location (10 points)

Include project/facility name, the project/facility address. Coordinates for the facility are to be

in six (6) decimal places.

Project/Facility Name:

Project / Facility Address:

(latitude, longitude)

°N °W

B. Project Information

Include solar photovoltaic capacity, first year energy production, and annual percent

degradation factor. Note the project expected construction start date, expected completion

date, commercial operation date, and contract terms.

Solar Photovoltaic Capacity: MW(AC) MW(DC)

First Year Production: MWh(AC)

Degradation Factor: %

Construction Start Date: (MM/YYYY)

Expected Completion Date: (MM/YYYY)

Commercial Operation Date: (MM/DD/YYYY)

Contract Term:

(Years)

Submittal Package

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Include any additional or other projection related information.


Submittal Package

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C. Interconnection

Provide the point of interconnection information and a description of how the energy will be

delivered to JEA’s electric system. Include the interconnection point, metering location,

distribution paths, and voltage level of the distribution facilities. All projects will be expected

to comply with JEA’s Interconnection Standards.

Distribution Interconnections will follow JEA Procedure ES 20202 902 – Parallel

Operations and Interconnection of DG Facilities (Exhibit C).


Submittal Package

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D. Community Outreach Content (5 points)

Including community relations/education elements of the project.

E. JSEB Participation (5 points)

Identify JSEB participation.

Submittal Package

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Section 3 – Pricing

Key Evaluation Element

A. Cost (80 points)

Lowest cost bidder will receive 80 points. Higher bidders will receive a proportionate share of

80 points.

Example:

Company A - $50/MWh – low bid - Score = 80 points

Company B - $60/MWh – not low bid - Score = (low bid)/(Company bid) * 80 =

50/60*80 = 67 points

The average cost per MWh over the term of the contract shall be used for the evaluation.

Submittal Package

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Pricing Information

Provide the annual committed energy in MWh(AC) and energy price in dollar per MWh(AC).

Provide the Annual Energy Price $/MWh(AC) percent escalation after year 20, if bidding for a

proposed term of more than 20 years. Pricing should be in current year dollars, or nominal

dollars. Pricing must be in terms of “all-in” energy price.

Exp

ecte

d E

ner

gy d

eliv

ered

to J

EA

Ser

vic

e T

erri

tory

Contract Energy Energy Price Annual Price

Year MWh(AC) $/MWh(AC) ($000)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

20 Year Total

Annual Energy Price $/MWh(AC) escalation (after year 20):

%

JEA will have rights to all environmental attributes (RECs, etc.) of produced energy. Price

proposals must remain valid for at least 180 days following the proposal due date.

Submittal Package

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Describe all the variables include in the “all-in” energy price. Include all applicable federal and

state tax credits. Clearly state how the current federal or state tax credits will factor into the

pricing. If proposed or future federal or state tax credits will affect the pricing, explain the

proposed/future tax credits that will affect this project and how JEA could benefit. Other

additional pricing information may be included here.


Submittal Package

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Section 4 – Delivered Energy Profile

Estimate the annual energy in MWh(AC) utilizing historical meteorological data for Jacksonville,

Florida (i.e. NOAA Jacksonville International Airport Weather Station). Provide the maximum

hourly energy that can be produced in the first year of each month. Provide the average hourly

energy production in the first year of each month.

Maximum hourly energy production (MWhAC)

Max

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Average hourly energy production (MWhAC)

Hour Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

Daily

Month

Total

Submittal Package

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Explain fully the methodology and meteorological data used for the annual energy estimates.


Submittal Package

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Section 5 – Financial Information

Provide a short company history of sales/growth profile. Include company’s D&B rating.

Attach (as Appendix A) at the back of this response package the annual reports including

audited financial statements for the last three (3) preceding fiscal years that include balance

sheet, income statement, statement of cash flows, other financial statements and reports

needed to fully explain financial position, and IRS Form W-9.


Submittal Package

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Provide a detailed plan for financing the project during construction and operation

throughout the term of a PPA. If financing comes from a third party, provide an official letter

of interest from the financier confirming the prospective financial arrangement as an

attachment, under Appendix A, at the back of this response package.


Submittal Package

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Describe any/all legal or administrative proceedings currently pending or concluded that

were conducted against the Contractor/Vendor within the last five years which relate to

procurement or performance of any public or private contracts. Disclose whether the firm (or

its predecessors, if any) has been insolvent or filed for bankruptcy within the past five years.


Submittal Package

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Provide a list of up to five relevant (of equal or greater size than those being proposed) solar

renewable energy project(s). Provide the total dollar amount for each project, if it was self-

financed, third party financing, or the percent self-financed versus obtained from a third

party. Identify how and from whom the third party financing was obtained and how this

capital investment was/is being amortized.


Submittal Package

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Section 6 – Proposed Contract

Provide a copy of the proposed contract for the PPA sale to JEA.

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EXHIBIT B

JEA Solar Photovoltaic Policy

Summary

JEA will support the addition of solar photovoltaic (PV) resources to its service territory through a

combination of Purchase Power Agreements (PPAs) and equity ownership to bring JEA’s total solar

portfolio up to an interim level of 50 MW (ac). JEA currently has 12 MW (ac) of PV under contract.

JEA will offer the community opportunities to be involved in the new solar facilities by rate and/or

program offerings.

Key considerations in the selection of the new solar assets will be cost, location, ability to integrate into

the grid using existing infrastructure, and community outreach and education opportunities.

Policy Statement

As part of JEA’s continued commitment to the environment, and to increase JEA’s level of carbon-free

renewable energy generation, the following goals are established:

1. By the end of CY 2016, have additional PPAs in place to add 38 MW(ac) of Solar Capacity to the JEA

system. This would bring JEA’s total solar portfolio to 50 MW.

2. At least 20 MW of the aforementioned 38 MW shall be in the form of utility-scale (typically over 5

MW) solar farms.

3. At least 2 MW of the aforementioned 38 MW shall be in the form of 500 kW or less “solar gardens”.

4. Any solar to be added shall be cost-competitive, defined as being within 20 percent of JEA’s system

average Fuel Cost plus Variable Operating Cost.

5. Locations shall be selected to provide for geographic diversity within the service territory, in order to

decrease the overall simultaneous system response in reaction to weather events.

6. Preference will be given to locations which offer high visibility.

7. Each offering should contain some level of community outreach (e.g., data provided for FSU

SUNGRIN program, educational center or kiosk, dedicated area for school or community tours.)

8. At a minimum, all offers will be evaluated on the following criteria:

a. Cost

b. Contract terms

c. Financial strength of PPA offeror

d. Location

e. Community outreach content

JEA is in the process of developing rates and community offerings related to solar offerings. The 50MW

level identified herein is an interim goal. As additional solar power is added to the system, system

response will be evaluated and the goal will be reevaluated in the future. This policy does not involve any

changes to the existing Net Metering Policy.

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EXHIBIT C

JEA Procedure ES 20202 902 for Distribution Interconnection

ELECTRIC SYSTEMS PROCEDURE: ES 20202 902 DISTRIBUTED GENERATION (DG)

TITLE: Parallel Operations & Interconnection of

DG Facilities on the Distribution System

CREATION DATE: October 16th

, 2014 REVISED DATE: November 21st, 2014 October 1, 1979

POLICY STATEMENT: It is the policy of JEA to support programs which enhance the quality of life,

protect the environment, and provide significant value to the City of Jacksonville and the communities we

serve. This will establish clearly defined technical and safety standards necessary for a customer's

Distributed Generation (DG) system to interconnect with JEA. All interconnections are to comply with

the applicable statutes, ordinances, codes, rules, and regulations of all governmental units, bodies, and

agencies.

ASSIGNMENT OF RESPONSIBILITY: The Vice President/GM – Electric Systems, through his/her

designee, the Director – Electric T&D Planning is responsible for the maintenance of this procedure. It is

the responsibility of the customer requesting the interconnection to provide for the design and installation

of an adequate protection and control system to meet the following items:

The requirements of this procedure

All applicable electrical and safety standards and codes

The criteria of all licensing authorities

JEA’s DG, Net Metering, and Solar Photovoltaic Policies

JEA Electric Rules and Regulations

DEFINITIONS:

ABNORMAL – Term characterizing an event that results in electrical parameters deviating

from normal steady state conditions causing undesirable conditions. The main electric

characteristics are Voltage, Current, and Frequency.

CLOSED TRANSITION TRANSFER SWITCH – Make-before-break, resulting in

temporary parallel operation of the two power sources.

COGENERATION – To generate two forms of energy sequentially more effectively than

two separate systems producing the same energy.

COGENERATOR- A generating facility that produces electricity and another form of useful

thermal energy (such as heat or steam), that is used for industrial, commercial, heating, or

cooling purposes.

DISTRIBUTED GENERATION (DG) – DG refers to the power generation at the point of

consumption. The generation fuel source includes but is not limited to Renewables (Biomass,

Solar Thermal, Solar PV, Wind) and Fossil Fuels (Natural Gas)

EPS – The JEA Electric Power System

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INTERCONNECTION – The physical connection of a distributed energy resource or

distributed generation to the utility’s power system to operate in parallel.

INVERTER – A device that converts direct current (DC) power into alternating current (AC)

power.

ISLANDING – A condition in which a portion of a utility network that contains both load

and generation remains energized while isolated from the remainder of the utility grid.

OPEN TRANSITION TRANSFER SWITCH – Break-before-make ensures that the

customer load is fed from only one source at a time.

PARALLEL OPERATION – The physical and electrical connection of non-JEA source to

JEA’s Electric Power System

PHOTOVOLTAIC CELLS – Semiconductor devices that convert sunlight into direct

current (DC) electricity.

POINT OF INTERCONNECTION – The physical point where the customer’s equipment

connects to the JEA EPS to allow parallel operations.

POINT OF SERVICE – The point of service is defined as the point of ownership

delineation between where JEA delivers electric service and the customer.

POWER PURCHASE AGREEMENT – Technical and commercial agreements in which a

third party developer owns, operates and maintains an electric generation system and an

electric utility purchases the system’s electric output for a predetermined period. Any systems

installed in JEA’s service territory that are not covered under a net metering interconnection

agreement must have a PPA in order to sell energy to JEA. POWER QUALITY – The measurement and characteristics of Voltage and current with

respect to instantaneous and steady state values or fluctuations thereof.

QUALIFYING FACILITY – A facility which can produce electric energy and other forms

of energy such as heat as a sequential secondary source from the generation of the original

form of energy produced. The Qualifying Facility shall meet the criteria for qualification as

set by the Federal Energy Regulatory Commission in 18 C.F.R. Part 292

RELIABILITY – The availability of electrical service that has acceptable Power Quality

characteristics.

UTILITY INTERACTIVE OR GRID CONNECTED – An inverter intended for use in

parallel with the JEA EPS to supply common loads that may deliver power to the JEA EPS.

VISIBLE BREAK DISCONNECT SWITCH – A lockable switch where the electrical

contacts of the blades are readily visible (air gap) in the “off” position. Turning the handle of

a disconnect switch to the “off” position does not ensure safety. An internal linkage might be

broken, leaving one or more contacts engaged. When working on JEA equipment, JEA crews

must be able to readily locate the switch, open the door of this disconnect (without defeating

switch safeties), verify the visible break, then be able to close the door and lock the handle.

SCOPE: This procedure includes the minimum engineering, operating, and protective requirements for

safe and reliable operation of both JEA's system and the customer's generating system. These standards

provide a uniform policy to be used for interconnecting DG to the JEA EPS, but JEA reserves the right to

review each interconnection separately for specific needs according to the particular set of conditions and

situation involved in each case. For customers wishing to interconnect DG to the Transmission System

please refer to the “JEA Facilities Interconnection Requirements” on JEA.com.

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PROCEDURE:

I. Requirements

A. These standards include such items as follow:

1. Personnel safety

2. Protection and Operation

3. Power Quality

4. Cost Responsibility Associated with Customer Owned Generation

5. Implementation

6. Terms of Service

B. If an installation fails to meet any requirements herein specified, JEA may disconnect or

refuse to connect the installation. JEA reserves the right to alter the requirements herein

specified by special agreement if conditions change and a subsequent technical study

indicates that the safe and acceptable operation of the JEA EPS and service to other

customers may be compromised.

C. A customer shall not operate electrical generating equipment in parallel with JEA's EPS

without the prior written consent of JEA and without full compliance with this procedure.

D. A system study may be required prior to the interconnection of the DG facility which

may include, but not limited to the following:

1. Site Visit

2. Coordination Analysis

3. Distribution Impact Study (Interconnection for Voltages at 26.4kV and below)

4. Transmission Impact Study – The guidelines for interconnecting to the JEA

Transmission System (69kV and above) are set forth in the “JEA Facilities

Interconnection Requirements.”

II. Personnel Safety

A. General - The foremost concern is safety. It must be recognized that JEA's EPS and the

customer’s electrical system will interact through the interconnection of the customer's

generation facility.

1. Adequate protection and safe operational procedures must be achieved by the joint

interconnection system. The customer shall be required to furnish, install, repair,

operate, and maintain in good order, and be solely responsible for the safe operation

of the generation and associated interconnection systems to be operated in parallel

with JEA’s EPS. JEA reserves the right to request the maintenance records for all

equipment and/or devices associated with the generating equipment and

interconnection at any time during the life of the Interconnection Agreement. JEA

may require periodic testing of the customer’s protection equipment to ensure safe

parallel operations.

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2. The customer shall permit JEA employees to enter upon its property at any

reasonable time for the purpose of inspecting and/or testing the customer's

equipment, facilities, or apparatus. Such inspections shall not relieve the customer

from the obligation to maintain the equipment in safe and satisfactory operating

condition.

3. JEA's approval of isolating devices used by the customer will be required in order to

ensure that such devices will comply with JEA's switching and tagging procedure for

safe working conditions.

B. DG Isolation and Disconnect Requirements

For all DG installations the customer shall install an approved Isolation Point as

indicated below:

1. JEA Isolation Point – A device shall be required to provide a separation point

between the customer's generating equipment and JEA’s EPS, thus providing a

JEA Isolation Point. This device will be furnished and installed by the customer,

in a visible location accessible to JEA personnel at all times. The device will be

installed as close to the JEA revenue meter as practical and be capable of being

locked in the open position with a JEA padlock. The device shall meet all

applicable local and national electrical codes for the installed generating system.

The type of isolation device used shall be a manual disconnect switch of the visible

break type. Exceptions:

a) Circuit breakers with a door/cover capable of being locked with a JEA

padlock may be used as the JEA required isolation device (hold cards by

themselves are not acceptable).

b) Manual transfer switches capable of being locked in the open position

with a JEA padlock may be used as the JEA required isolation device

c) Automatic transfer switches, if used, must have one of the above

approved isolation devices between the JEA transformer and the

customer’s generations system.

For PV Systems or DG systems that use Utility Interactive Inverter Technology:

2. Disconnect Switch - A manual disconnecting switch, of the visible load break

type, shall be required to provide a separation point between the customer's

generating facility and JEA’s EPS. This switch will be furnished and installed by

the customer, in a visible location accessible to JEA personnel at all times. The

switch will be installed as close to the JEA revenue meter as practical and be

capable of being locked in the open position with a JEA padlock. The switch

shall meet all applicable local and national electrical codes for the installed DG

system. The switch shall be permanently labeled with a sign provided by JEA

stating “JEA RGS DISC” for renewable systems or “JEA GEN DISC” for non-

renewable systems. If the switch is mounted out of sight of the JEA revenue

meter, instructions must be posted at the meter clearly stating the location of the

disconnect switch. In the event of a system emergency JEA reserves the right to

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open the switch thereby isolating the customer's electrical system without prior

notice to the customer.

If for any reason the customer’s generating installation is not in compliance with this

procedure, JEA will reschedule the work for a time when the customer will turn the

generating system off, disable the start circuit and allow JEA to put a lock on the

generator control box to prevent starting the generator until the customer’s

installation/design is in full compliance with this procedure.

Signage – The device used as the JEA Isolation point shall be permanently labeled

clearly stating “Generator - JEA Disconnect Switch” with a black, oil based enamel paint

or a laminated sign. Laminate signs, if used, should be approximately six inches by six

inches with 3/8” white letters on a bright red background. If the isolation device is

mounted out of sight of the meter, additional signage must be posted at the meter clearly

stating the location of the isolation device.

Emergencies – In the event of a system emergency JEA reserves the right to open the

switch thereby isolating the customer's electrical system without prior notice to the

customer. Any of the following conditions shall be cause for disconnection:

1. JEA’s system emergencies and/or maintenance requirements

2. Hazardous conditions existing on the customer's generating or protective

equipment, as determined by JEA

3. Adverse effects of customer's generation to JEA's other electric customers and/or

system, as determined by JEA

4. Failure of customer to comply with any existing or future regulations, rules,

order, or decisions of any governmental or regulatory authority having

jurisdiction over the customer's electric generating equipment or the operation of

such equipment.

Exception: Primary Metered Customers and/or Customers with Service Voltages

Above 600 Volts – The customer shall coordinate with JEA to accomplish the

procurement and installation of the disconnect switch. The customer is required to bear

all JEA related labor and equipment costs associated with the disconnect and associated

equipment and devices beyond that which would be required to provide normal service to

the customer if no interconnection of the customer’s DG system were involved. The

costs shall be paid in advance by the customer to JEA for all material and labor that is

required. JEA shall supply the customer with a written cost estimate of all its required

materials and labor prior to any work being done. JEA shall also provide project timing

and feasibility information to the customer.

C. Responsibility and Liability - JEA shall be responsible for JEA owned facilities. The

customer shall be responsible for the customer's entire system, ensuring adequate

safeguards for; other customers, JEA personnel, JEA equipment and for the protection of

its own generating system.

The customer shall indemnify and hold JEA harmless from any and all claims, demands,

costs, or expenses for loss, damage, or injury to persons or property (including the

customer's DG system) caused by, arising out of, or resulting from:

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1. Any act or omission by the customer, or customer's contractors, agents, servants,

and employees in connection with the installation or operation of the customer's

DG system or the operation thereof in connection with JEA's system

2. Any defect in, failure of, or fault related to the customer's generating system

3. Customer's negligence or negligence of customer's contractors, agents, servants,

and employees

4. Any other event or act that is the result of, or proximately caused by the customer

or the customer's facilities

III. Protection and Operation of DG Systems

A. General - The protection and operation of the interconnection between the customer's

DG system and JEA’s EPS depends on the size, type, and location of the facility within

JEA's system. It will be the responsibility of the customer to provide all devices

necessary to protect the customer's equipment from damage by any abnormal conditions

and operations which occur on JEA’s system that result in interruptions, restorations of

service by JEA's equipment, personnel and their DG System. The protection criteria are

also required to protect the JEA EPS.

It is the customers’ responsibility to protect their DG system and associated equipment

from the abnormal conditions and/or events below. The DG system shall be equipped

with all protective functions necessary to sense the abnormal conditions and operate to

cause the DG system to be automatically disconnected from the EPS or attempt to

connect to the EPS inappropriately.

Abnormal Conditions:

1. Overvoltage or Undervoltage

2. Overfrequency or Underfrequency

3. Overload

4. Short Circuits (including ground fault)

5. Open Circuits

6. Phase Unbalance and Reversal

7. Reverse Power Flow Conditions

8. Reclose attempt by JEA

9. Any attempt by the Customer to synchronize with JEA’s system

10. Any other injurious electrical conditions that may arise on JEA’s system

JEA reserves the right to perform such tests as it deems necessary to ensure safe and

efficient protection and operation of the customer's DG facility.

B. Loss of Source – The customer shall provide approved protective equipment necessary to

disconnect the DG facility from the JEA EPS in the event of the following:

1. Fault on JEA’s system

2. Fault on the customer’s DG system

3. Loss of source on JEA’s system

4. Loss of the customers DG source

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The customer’s DG system shall cease to energize the EPS as well as contain an anti-

islanding function such that the customers DG system does not attempt to generate and

reconnect to the EPS until the abnormal conditions above have been cleared. The

customer’s system shall disconnect in 0.160 seconds or less from the detection of any one

of the above mentioned abnormal conditions unless a different clearing time or load shed

scheme is required by JEA.

C. Coordination and Synchronization - The customer shall be responsible for the

coordination and synchronization of the customer's equipment with JEA's EPS, and

assumes all responsibility for damage that may occur from improper coordination or

synchronization of the DG facility with JEA's EPS. The customer shall install the

equipment necessary to sense Voltage and Frequency with time delay functionality to

prevent the DG system from energizing a de-energized JEA circuit and to prevent the DG

system from connecting to the EPS if the DG system is not operating within the specified

Voltage and Frequency range in this procedure. Details of synchronization are in the

Power Quality section of this procedure.

D. Electrical Characteristics – Single-phase interconnections with JEA are permitted at

power levels up to 15 kW. For power levels exceeding 15 kW, a three-phase balanced

interconnection will normally be required. The Customer shall interconnect with JEA at

the Voltage of the available distribution line of JEA for the locality of the

interconnection.

JEA reserves the right to require a separate transformation and/or service for a customer's

DG system, at the customer's expense. The customer shall bond all neutrals of the

customer’s system to JEA’s neutral, install a separate driven ground to 10 ohms or less,

and bond the ground to the customer’s neutral.

E. Exceptions – DG systems having capacity ratings that can perform as follows or

characteristics described below may require more complex interconnection protection

criteria, equipment, and/or studies as deemed necessary by JEA:

a. Produce power in excess of 1/2 of the minimum electrical load requirements of

the interconnected distribution circuit

b. Produce power flows approaching or exceeding the thermal capacity of the

connected JEA distribution line or transformers

c. Adversely affect the operation of JEA or other customer’s Voltage, Frequency or

overcurrent control and protection devices

d. Adversely affect the Reliability or Power Quality of electric service to other

customers

e. Interconnect at Voltage levels greater than the local distribution Voltage(s)

f. DG Systems containing storage capabilities

F. Load Shed/Recovery

JEA may require the customer’s DG system to have an automatic load shed/recovery

strategy to minimize potential Power Quality issues for the following conditions:

a. Produce power in excess of 1/2 of the minimum electrical load requirements of

the interconnected distribution circuit

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b. Produce power flows approaching or exceeding the thermal capacity of the

connected JEA distribution line or transformers

c. Adversely affect the operation of JEA or other customer’s Voltage, Frequency or

overcurrent control and protection devices

d. Adversely affect the Reliability or Power Quality of electric service to other

customers

e. Interconnect at Voltage levels greater than the local distribution Voltage(s)

f. DG Systems containing storage capabilities

G. The DG Facility/System must comply with all of the following standards:

1. IEEE Std. C37.95, Guide for Protective Relaying of Utility-Consumer

Interconnection (Latest Revision)

2. UL 1741-2010, UL Standard for Inverters, Converters, Controllers and

Interconnection System Equipment for use with Distributed Energy Resources

3. IEEE Std. 1547 -2003, IEEE Standard for Interconnecting Distributed Resources

with Electric Power Systems

4. IEEE 1547.1 – 2005, IEEE Standard Conformance Test Procedures for

Equipment Interconnecting Distributed Resources with Electric Power Systems

5. NFPA 70 – National Electric Code (latest edition/revision)

6. NESC – National Electric Safety Code (latest edition/revision)

The most up to date version will apply to meet 100% compliance with all Standards

noted.

Power Quality

A. General - It is the policy of JEA to allow only those interconnections which can be

achieved without reducing the Power Quality and Reliability of service to other

customers and to disconnect such interconnections should unforeseen difficulties arise

which impair the Power Quality or Reliability of the JEA EPS.

B. The customer's DG system must be of sound engineering design and quality

workmanship, it shall have safe and reliable operating characteristics, it shall meet all

applicable codes, and shall be approved by all Governmental authorities having

jurisdiction. JEA reserves the right to perform such tests as it deems necessary to ensure

the quality of the customer’s DG system.

C. The characteristics of the customer's DG system shall meet the following minimum

guidelines below in addition to all requirements of the JEA Rules and Regulations:

1. The customers generation system shall be designed, operated, and controlled to

provide reactive power requirements from ≥ .90 (lagging or leading) at the point of

service when output is > l0% of nameplate rating.

a. The customer’s location in the service territory may change the minimum

power factor requirement at the point of service. JEA reserves the right

to require a higher/lower power factor at the point of service necessary to

facilitate efficient distribution operations at any time during the life of

the interconnection agreement. Operating at a power factor outside the

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range specified is acceptable if the reactive power needs of the

customer’s local load requires it and it does not adversely impact the JEA

EPS.

In addition, the customer’s DG system shall operate under the following reactive

power flow criteria:

April through October:

a. Between the hours of 6AM and 11PM, for real power flow to JEA, the

customer shall supply reactive power to the point of service if the EPS

requires it for Voltage control and shall not take reactive power from the

EPS

b. Between the hours of 11PM and 6AM, regardless of direction of real

power flow, the customer shall not deliver reactive power to the EPS

November through March:

a. Between the hours of 5AM and 11PM, for real power flow to JEA the

customer shall supply reactive power to the point of service if EPS

requires it for Voltage control and shall not take reactive power from

JEA’s distribution system

b. Between the hours of 11PM and 5AM, regardless of direction of real

power flow, the customer shall not deliver reactive power to JEA’s EPS

2. Operate in the Frequency range of 59.3 - 60.5 Hz. If the DG system is generating 50

kW or less and operates outside this range, the DG system must automatically

disconnect from the Point of Interconnection with JEA in 0.16 seconds or less. If the

DG system is generating more than 50 kW, JEA may require a faster or slower

clearing time for this abnormality.

3. Have a Total Harmonic Distortion (THD) less than 5% at the Fundamental

Frequency and at rated output of the generator. The THD shall also be less than 3%

for each phase.

4. The Voltage at the Point of Interconnection shall not fluctuate more than plus or

minus 5% from misoperation or malfunctioning of customer owned equipment. The

DG system shall not actively regulate the Voltage at the Point of Interconnection.

See Table 1 for acceptable clearing times associated with each range of Abnormal

Voltage detection.

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Table 1

Interconnection System Response to Abnormal Voltages

Voltage (% of nominal)

*Clearing Time

(Sec)

V < 50 0.16

50 ≤ V < 88 2.00

110 < V < 120 1.00

V ≥ 120 0.16

Nominal Voltages comply with ANSI C84.1 -1995,

Table 1

*Clearing time is defined as the time it takes between the onset of the Abnormal

Voltage condition and the time it takes the DG system ceasing to energize the JEA

EPS.

5. No reconnection shall take place until every abnormal condition is cleared and the

EPS Voltage and/or DG System Voltage is within Range B of ANSI C84.1-1995 and

the Frequency range is within 59.3 and 60.5 Hz for at least 5 minutes.

All Solar PV Installations and DG Systems utilizing Utility Interactive Inverter

Technology must comply with the following criteria:

1. All inverter(s) shall be listed and in compliance with Underwriters

Laboratories (UL) 1741, Inverters, Converters, and Controllers for Use in

Independent Power Systems.

2. Photovoltaic modules and panels shall be in compliance with:

a. Underwriters Laboratories (UL) 1703, Standard for Safety: Flat-Plate

Photovoltaic Modules and Panels.

b. IEEE Standard 1262-1995, IEEE Recommended Practice for Qualification of

Photovoltaic (PV) Modules.

3. PV system installation shall be completed by a qualified state licensed contractor. In

addition, the system shall be in compliance with:

a. IEEE Standard 929-2000, Recommended Practice for Utility Interface of

Photovoltaic Systems.

b. All relevant articles of the latest edition of the National Electrical Code.

4. All local building and electrical codes.

IV. Cost Responsibility

The customer is required to bear all JEA related labor and equipment costs associated with the

protective devices, transformers, lines, services, switches, and associated equipment and devices

beyond that which would be required to provide normal service to the customer if no

interconnection of the customer’s DG system were involved. The costs shall be paid in advance

by the customer to JEA for all material and labor that is required. JEA shall supply the customer

Page | 40

with a written cost estimate of all its required materials and labor prior to any work being done.

JEA shall also provide project timing and feasibility information to the customer.

V. Metering

Renewable DG Installations (i.e. Solar PV):

JEA does not require metering of the energy deliveries from the PV system. If the customer

desires to meter the system, the meter shall be furnished and installed by the customer. JEA shall

follow the JEA Net Metering and DG Policy guidelines regarding JEA’s revenue meter install.

Non-Renewable DG Installations:

If the customer wishes to export energy as defined in the Interconnection Agreement or Power

Purchase Agreement, JEA shall follow the JEA Net Metering and DG Policy guidelines regarding

the required revenue meter install.

VI. Implementation

A. Application for Interconnection and Interconnection Agreements for DG Systems

1. Application for Interconnection of Renewable DG Systems - Formal

application for Interconnection shall be made by the customer prior to the

installation of any photovoltaic related equipment. This application shall be

accompanied by, but not limited to, the following:

a. Gross power Rating (GPR) in watts

b. Electrical system interface drawing to include a one line diagram of the

JEA/customer interface, clearly indicating the location of the JEA PV

disconnect switch, inverter and panels.

Any subsequent change in the system must also be submitted to JEA for review

and written approval prior to actual modification. The above mentioned review,

recommendations and approval by JEA do not relieve the customer from the

complete responsibility for the adequate engineering design, construction, and

operation of the customer's equipment and for any liability for injuries to

property or persons associated with any failure to perform in a proper and safe

manner for any reason.

Interconnection Agreement – At the first opportunity the customer shall

complete and submit to JEA the Renewable Generation System (RGS)

Interconnection Agreement, Renewable Generation System (RGS) Application

and IRS W-9 form.

2. Application for Interconnection of Non-Renewable DG Systems- Formal

application shall be made by the customer prior to the installation of any

generating related equipment. The application package shall include, but not

limited to the following:

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a. Physical layout drawings of the entire DG System, including dimensions

showing the locations of JEA transformers and metering equipment

along with customer disconnect switch/isolation device, main panel, sub

panels, transfer switch(es) and DG system with a description of the

access to be provided to JEA during all hours of the year.

b. DG equipment ratings, specifications, system protection (including all

settings for all protection devices), and characteristics including fault

current analysis at the point of service from the addition of the DG

system.

c. Synchronizing method and operating instructions for paralleling the

customer’s electrical system with JEA.

Any subsequent change in the system must also be submitted to JEA for review

and written approval prior to actual modification. The above mentioned review,

recommendations and approval by JEA do not relieve the customer from the

complete responsibility for the adequate engineering design, construction, and

operation of the customer's equipment and for any liability for injuries to

property or persons associated with any failure to perform in a proper and safe

manner for any reason.

Interconnection Agreement - At the first opportunity the customer shall

complete and submit to JEA the DG Interconnection Agreement, DG

Application, and IRS W-9 form. Upon formal completion of the Interconnection

Agreement and DG Application, the customer shall give JEA seventy-two hours’

notice to provide JEA an opportunity to witness and approve the initial

interconnection of any DG facility with JEA’s EPS after installation of the DG

System.

VIII. Terms of Service

A. Generation Capability/Equipment Changes - It shall be the customer's responsibility

to inform JEA of any change in their electric generating capability and/or equipment

required for the interconnection with JEA. JEA reserves the right to disconnect the DG

System if any changes on the customers system results in adverse impacts to the JEA

EPS.

B. Maintenance and Outages – The customer shall notify JEA immediately in the event

emergency conditions or planned maintenance requires the DG system to be out of

service.

SIGNED: /s/ John B. Coarsey

Director, Electric T&D Planning

LAST REVISION DATE: 11/21/2014

5/1/2013

3/19/2010

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