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UTILITY COMMITTEE
The Utility Committee Meeting was held on January 25, 2010 at 5:00 p.m. with Chairman Ruane
presiding. Members present were Mr. Hogan, Mr. McGiffin, Major Kosior, and Mr. Snaman.
Mayor Carey was also present.
AGENDA ADDITIONS/DELETIONS
Mr. Hogan moved for approval of the agenda, seconded by Mr. Snaman and unanimously
carried.
White Oak Solar Project
During their meeting of July 27, 2009, City Council approved the Utility Committee=s
recommendation to authorize the City Manager to execute the Solar Energy Purchase Agreement
with White Oak Solar Energy, LLC, as per the terms outlined in the Agreement. During the
Committee=s consideration of this agreement (meeting of July 13, 2009), members were advised
that the agreement presented was the first agreement to be considered from the negotiation
process and, if approved, the agreement would be followed by a Land Lease Agreement and an
Interconnection Agreement for consideration.
Members were provided the additional agreements for their consideration, as follows:
Energy Land Lease
Mr. Ron Lunt, Public Utilities Director, reminded members that the approved Solar Energy
Purchase Agreement is between White Oak Solar Energy, LLC and the City of Dover for the
energy, capacity, and Renewable Energy Credits generated from a solar photovoltaic electric
generation facility located on the Garrison Tract. He submitted a proposed land lease that will
be used to construct the 10 Mw (approximated) solar facility.
Mr. Lunt advised members that the leased lot is currently identified as Lot 15, which is located in
the north-west corner of the Garrison Tract. It is approximately 103.5 acres, of which 96.5 acres
is useable land; the remaining seven (7) acres will be reforested at the City=s request to provide a
buffer between the solar facility and the Wild Meadows development. Since the Renewable
Energy Credits will be purchased by Delmarva Power, Sustainable Energy Utility, Delaware
Municipal Electric Corporation, and the City of Dover, Pace Global recommended that a non-
Delaware firm perform the land valuation to ensure a global view of the property. Pace had
worked with Alvarez and Marsal Real Estate Advisory Services (Alvarez) on a similar project
and recommended that staff use them for this project. The City of Dover contracted with
Alvarez and Marsal who performed a complete land valuation and prepared the Garrison Tract
Estimated Land Valuation Report. It was noted that Alvarez and Marsal recommended that the
City collect between $45,000 to $55,000 annually for a 100 acre lot.
Mr. Lunt reviewed highlights of the Energy Land Lease, as follows:
A. The proposed lease will collect $55,000 annually and include a two and one-half
percent annual increase once the construction commences, which is anticipated to be
late spring.
B. From the date of the lease execution until construction begins, White Oak will pay a
monthly rent of $1,000.
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UTILITY COMMITTEE MEETING OF JANUARY 25, 2010 PAGE 2
C. The lease is for twenty-eight (28) years from the date the facility starts producing
energy, which is anticipated to be in December 2010.
D. White Oak may extend the term in one (1) year increments five (5) times for a total of
five (5) years.
E. White Oak will be responsible for all Real Property Taxes levied by the appropriate
taxing authorities.
F. They have an option of leasing up to an additional ten (10) acres during construction
for forty-six dollars per acre per month to be used as a construction staging area.
G. The adjoining lots will have a solar easement to ensure that no structures are
constructed that will cause shading on the solar panels. These setbacks are as
follows:
a. Lots to the east and west – forty feet of horizontal distance for every ten feet of
structure or tree height; and
b. Lots to the north and south – twenty-five feet of horizontal distance for every ten
feet of structure or tree height.
H. At the end of the lease White Oak will be required, at its expense, to remove all the
equipment, foundations, structures, and similar facilities and backfill any holes
created by the removal process. This will be financed through a letter of credit or
bond in year fifteen of the Lease.
Mr. Lunt assured members that the Ground Lease had been reviewed by the City=s attorney,
Mr. Kirk Betts of Betts and Holt, and he approved the document in its final form. Staff
recommended that the City Manager be authorized to execute the presented Ground Lease
Agreement with White Oak Solar Energy, LLC, as per the terms outlined in the Lease.
Noting that the Garrison Tract Estimated Land Valuation Report has a report date of May 22,
2009, Mr. Ruane stated that the fifth and sixth paragraphs (bullets) on page 2, state that:
"According to current city zoning regulations, this classification permits the semi-conductor
industry as an approved use without further review, meaning that a company could receive a
building permit after having their site plan accepted."; and that "The minimum lot size is
presently set at 50 acres.". For record purposes, he noted that on October 12, 2009, the City
adopted Ordinance #2009-18 that added electric generation as a permitted use on the site and
amended the minimum lot size to 10 acres. The ordinance has been incorporated in the City
Code, Appendix B, Section 20A, Article 4.16 - Zoning Bulk. He stated that the new reference in
the Code to this zoning classification is IPM-2.
Mr. Ruane provided members with a copy of the "Dover SUN Park (DSP) – A Solar Milestone
for Delawareans" and referred to the timeline provided on page 4 (Attachment #1). He noted
that on February 16, 2010, the Planning Commission will be conducting a site plan review for
this project and that each parcel of the tract will be reviewed.
Mr. Hogan moved to recommend that the City Manager be authorized to execute the
presented Ground Lease Agreement with White Oak Solar Energy, LLC, as per the terms
outlined in the Lease (Attachment #2), as recommended by staff. The motion was seconded
by Mr. Snaman and unanimously carried.
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UTILITY COMMITTEE MEETING OF JANUARY 25, 2010 PAGE 3
Energy Interconnection Agreement
Members were provided a Small Generator Interconnection Agreement between the City of
Dover and White Oak Solar Energy, LLC, for their review. Mr. Lunt explained that in order for
White Oak Solar Energy to transmit the power from the site, it will be necessary for them to
interconnect to the City=s 69kV distribution system. The Agreement outlines the methods and
expectations of the interconnection, notices of outages, construction standards, etc. Mr. Lunt
reviewed the provisions of the Interconnection Agreement as follows:
A. White Oak will construct the facility according to national standards as
recognized by the industry.
B. White Oak will own and install the metering and will be required
to test the meter every three (3) years.
C. White Oak is required to maintain a 98.5% power factor (which is
the same requirement that Dover has with Delmarva Power).
D. Dover will be notified of any testing and may witness this testing
to ensure that the new system will operate properly and not adversely affect the
Dover distribution system.
E. White Oak will be authorized to operate the generation in parallel
with the Dover system.
F. The Term of the agreement is twenty (20) years from commercial
operation date and White Oak may extend this period annually until such time as
they terminate the interconnection.
G. There is no compensation to Dover since Dover is purchasing all
the energy under a separate Solar Energy Purchase Agreement.
H. Dover agrees to not disconnect the generation for routine
maintenance during the months of June, July, August, or September.
I. White Oak will be financially responsible for all of the expenses
related to modifying the existing 69 kV system to allow the interconnection of the
generation. White Oak will also be responsible for the construction and
maintenance of the interconnection substation located on the generation site.
J. In conjunction with the project there will be a 69 kV overhead line
extension, approximately one-half mile long, constructed from the existing 69 kV
line to the generation site. White Oak will construct this line and turn it over to
Dover; this will allow Dover to use the poles for any 12 kV services that they
choose.
K. Dover supplied White Oak with a detailed Technical Requirements
Attachment that specifies the equipment and communication requirements for all
the components and systems that could impact Dover=s 69 kV network. White
Oak will be required to comply with these requirements.
Mr. Lunt assured members that the Agreement has been reviewed by the City=s attorney,
Mr. Kirk Betts of Betts and Holt, and that he has approved the document in its final form.
Mr. Hogan moved to recommend that the City Manager be authorized to execute the
presented Small Generator Interconnection Agreement with White Oak Solar Energy,
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UTILITY COMMITTEE MEETING OF JANUARY 25, 2010 PAGE 4
LLC, as per the terms outlined in the Agreement (Attachment #3). The motion was
seconded by Mr. Snaman and unanimously carried.
Energy Transmission Tariff
Mr. Ron Lunt, Public Utilities Director, advised members that White Oak Solar Energy
(White Oak), LLC, has requested the development of a standard tariff for the delivery of energy
and capacity to the PJM grid through the Delmarva Power and Light transmission network. He
explained that the tariff would be required, should the City default on the Solar Energy Purchase
Agreement, or at the end of the Agreement. Realistically, he stated that the only occasion that
the tariff would be used is if the City were to no longer take power from the solar facility, in
which case the City would be in default for the first 20 years of the Agreement, which would be
highly unlikely but possible. After the 20 years, Mr. Lunt stated that the City may or may not
choose to take energy from the facility and that will be determined at that time.
Mr. Lunt reviewed a summary of the provisions contained in the recommended Tariff, as
follows:
A. This tariff limits the transmission of energy at 10 Mw AC.
B. White Oak would be required to reserve capacity of the 69 kV system on an annual
basis.
C. The City of Dover would not be required to facilitate any required interconnection or
other agreements; this would be White Oak=s responsibility.
D. The City of Dover would not be required to expand capacity on the network to
facilitate this reservation; however, White Oak could request expansion at its own
expense.
E. White Oak is required to maintain a 98.5% power factor (which is the same
requirement that Dover has with Delmarva Power).
F. The rate for this tariff is $0.23 per kW-month which is consistent with the tariff titled
69 kV Transmission Service Classification for Transmission Service for 16 Mw EWG
Unit operated by NRG Energy. Should White Oak exceed the reservation request the
penalty rate will be $1.00 per kW-month for the penalty month. Line losses will be
recovered by reducing the Net generation by one-percent, which is also consistent
with the existing NRG tariff.
G. The City of Dover reserves the right to adjust this tariff from time-to-time to reflect
changes in the cost of service.
Mr. Lunt indicated that White Oak Solar Energy has reviewed the proposed Tariff and agrees
that it is fair and acceptable. In addition, he assured members that the Tariff has been reviewed
by the City=s attorney, Mr. Kirk Betts of Betts and Holt, and that he approved this Tariff in its
final form.
Staff recommended the adoption of the Tariff titled 69 kV Delivery Service Classification to the
Grid for White Oak Solar Energy, LLC, and to recognize this as a standard City of Dover
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UTILITY COMMITTEE MEETING OF JANUARY 25, 2010 PAGE 5
Electric Tariff.
Mr. Hogan moved to recommend approval of staff=s recommendation (Attachment #4),
seconded by Mr. McGiffin and unanimously carried.
At the request of Mr. Ruane, Mr. Lunt reviewed the "Dover SUN Park (DSP) – A Solar
Milestone for Delawareans" document (see Attachment #1).
PACE/NAES Monthly Report (November)
Members were provided the PACE/NAES Monthly Report for November. The report was
provided to allow members the opportunity to monitor what is being sold in electric and the
revenues received, which will give members a better understanding of any fluctuations and make
improvements if deemed necessary. Although it was not staff=s intention to make a presentation
of the report, they welcomed any questions.
Mr. McGiffin moved to recommend acceptance of the report, seconded by Mr. Hogan and
unanimously carried.
Mr. Hogan moved for adjournment, seconded by Mr. McGiffin and unanimously carried.
Meeting Adjourned at 5:34 P.M.
Respectfully submitted,
Eugene B. Ruane
Chairman
EBR/JS/jg/tm
magB15B.wpd
Attachments
Attachment #1 - "Dover SUN Park (DSP) – A Solar Milestone for Delawareans"
Attachment #2 - Ground Lease Agreement with White Oak Solar Energy, LLC
Attachment #3 - Small Generator Interconnection Agreement with White Oak Solar Energy, LLC
Attachment #4 - Tariff titled 69 kV Delivery Service Classification to the Grid for White Oak Solar Energy, LLC
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ATTACHMENT #1
Utiility Committee Meeting of 1/25/2010
Dover SUN Park (DSP) – A Solar Milestone for Delawareans
103.5 acres leased (96.5 useable) and provides • Largest solar plant in the
an anchor project region - community-scale 10
MW AC
• Most competitive photovoltaic
technology
• Distributed - connects directly
into the Dover distribution
system
• Creates 150 local construction
jobs
• Supplies clean power for
ATTACHMENT #1
~1,300 homes
• RPS requires 2% by 2019,
public power is exempt for
now
Utiility Committee Meeting of 1/25/2010
The Power of Integration
Page 7
Dover SUN Park - Continued
• 1400+ seedling
reforestation
plus evergreen
buffer
• Timber harvest
to improve
solar efficiency
• Landscaped
along future
industrial park
road frontage
• Unmanned
operations
• Low traffic
• Good neighbor
The Power of Integration
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Solar Provides Significant Benefits with Negligible Costs
• Dover SUN Park provides significant environmental and other benefits
– Reduces hazardous air pollutants and other pollution
– Reduces Green House Gases
– Provides taxes and lease revenues
– Construction jobs for 2010
– Provides positive press and an expected catalyst to future development at Garrison Tract
– Provides stable, attractive energy pricing for the next twenty years
– Electricity is produced during daytime hours when electric demand is high – peak energy
• However, solar photovoltaic energy costs more than other forms of energy and that added
cost is paid for by the value in the Solar Renewable Energy Credit (SREC) – the SREC is a
compliance certificate that certifies that solar energy was produced.
– For every Mega Watt Hour a SREC is created that will be sold to the DE utilities including Dover
• Dover will purchase 15% of the SREC’s produced from the facility
• The cost of these SRECs will represent seven-tenths of one percent of Dover’s projected
power supply costs (wholesale costs)
• The SREC cost represents a significant discount compared to the penalty for failure to
comply with legislated requirements.
• Finally, the cost of solar will have a smaller impact on the Dover rate payers than a six cent
increase in natural gas prices.
The Power of Integration
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Projected Timeline
Site Plan review by
Commissioning /
Dover Planning
testing of solar
Commission
facility
Racking, inverters, &
Utility
Committee Notice to proceed issued PV module installation
to EPC contractor
1/20 1/25 2/8 2/16 Jun Jul Aug Sep Oct Nov Dec 2010
City
Engineering, site Construction of
Council
work & underground interconnection facilities
Joint Signing
and distribution upgrades
Event facilities
DEMEC Board
Meeting Commercial operations
The Power of Integration
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ATTACHMENT #2
Utiility Committee Meeting of 1/25/2010
GROUND LEASE
by and between
THE CITY OF DOVER, DELAWARE
and
WHITE OAK SOLAR ENERGY, LLC
THIS GROUND LEASE (the “Lease”) made as of the ____________day of
____________, 2010 (the “Effective Date”), by and between the City of Dover,
Delaware, having an address at 15 E. Loockerman Street, Dover, Delaware 19903
(“Dover”) and White Oak Solar Energy, LLC, a Delaware limited liability company,
having an address at c/o LS Power, Two Tower Center, 11th Floor, East
Brunswick, New Jersey 08816 (“Lessee”).
WITNESSETH
WHEREAS, Dover wishes to enter into an agreement with a power
producing company that will develop, construct, own, and operate a solar
photovoltaic electric generating facility with a nameplate rating of approximately 10
MW and ancillary or related services and facilities thereto (the “Facility”); and
WHEREAS, Dover issued an RFP seeking power producers able and willing
to develop, construct, own and operate such a facility, and after reviewing the
proposals received in response to the RFP, Dover selected Lessee to develop,
construct, own and operate the Facility at the site in Dover, Delaware known as the
Garrison Tract (as hereinafter defined); and
WHEREAS, concurrently herewith, Dover is entering into a Solar Energy
Purchase Agreement (“SEPA”) with Lessee pursuant to which Lessee will develop,
construct, improve, repair replace, own and operate the Facility and sell the
energy, capacity, and certain related products to Dover pursuant to the terms of the
SEPA; and
WHEREAS, Dover, for and in consideration of the rents, covenants and
agreement hereinafter mentioned, does hereby lease to Lessee, and Lessee does
hereby lease from Dover, that certain real property described on Exhibit A annexed
hereto and made a part hereof (the “Leased Land”), and all (1) of Dover’s interest
in all property in the nature of buildings, structures and fixtures now and hereafter
situated on such land and constituting parts of the Leased Land, and (2) rights,
interests, powers, licenses, easements, rights-of-way, privileges, hereditaments
and franchises now or hereafter situate thereon or appertaining thereto the Leased
Land or otherwise necessary for development, construction, ownership, operation
and maintenance of the Facility in Lessee’s reasonable discretion (collectively
referred to as the “Premises”).
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WHEREAS, capitalized terms used and not defined in this Lease have the
meanings given to them in Exhibit B hereto.
NOW, THEREFORE, the parties hereto, in consideration of the premises and
covenants herein set forth, and for other good and valuable consideration, receipt
of which is hereby acknowledged, each intending to be legally bound, hereby agree
as follows:
ARTICLE I
LEASE OF THE LAND; RENT; TERM OF LEASE; RENEWAL
Section 1.01. Premises. Dover hereby leases the Premises to Lessee and
Lessee hereby leases the Premises from Dover, subject to and upon the terms,
conditions and undertakings hereinafter set forth.
Section 1.02. Term. The term (as it may be extended or sooner terminated, the
“Term”) of this Lease shall commence on the Effective Date and shall expire on the
twenty-eighth (28th) anniversary of the Commercial Operations Date, subject to the
renewal terms and early termination rights set forth herein (the “Termination Date”);
provided, however, that this Lease shall terminate earlier on the date that is twelve (12)
months after the Effective Date if the Construction Start Up Date has not occurred by
such date, subject to Force Majeure Delays. In the event of any Force Majeure Delays,
any performance date or deadline applicable to Lessee (including, but not limited to, the
Termination Date) shall be extended by the same duration (on a day for day basis) as
the duration of such Force Majeure Delays. Dover grants Lessee five (5) irrevocable
options (each, an “Option” and together, the “Options”)(to be exercised in Lessee’s sole
discretion) to extend the Term by one (1) year for each Option (i.e., 5 years total) by
delivering written notice thereof to Dover not less than nine (9) months prior the then-
scheduled Expiration Date. In addition, at any time prior to the Commercial Operations
Date and after the expiration or early termination of the SEPA, Lessee shall have the
right to terminate this Lease upon not less than three (3) months prior notice to Dover.
Any extension of the term of the SEPA shall not cause an extension of the Term unless
otherwise agreed upon in writing by Lessee and Dover.
Section 1.03. Rent. Lessee shall pay Dover Rent in four (4) equal quarterly
installments, which shall be due on the first Business Day of January, April, July,
and October of each year during the Term, except that the first installment shall be
due thirty (30) days after the Effective Date. For purposes of this Lease, “Rent”
means:
(a) From the Effective Date until the Construction Start Up Date,
the monthly Rent shall be One Thousand Dollars ($1,000.00) per month.
(b) Following the Construction Start Up Date, the annual Rent shall
be Fifty-Five Thousand dollars and no cents ($55,000.00), which shall
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increase by two and one-half percent (2.5%) on each anniversary of such
date.
Section 1.04. Proration. Lessee’s obligation to pay the first and last
installments of Rent under the preceding clauses (a) and (b) of Section 1.03 shall
be prorated on a per diem basis.
ARTICLE II
WARRANTIES
Section 2.01. Warranties of Dover. Dover hereby represents, warrants and
covenants:
(a) That Dover has good and marketable title to the Leased Land, full
power and authority to execute and deliver this Lease, to perform its obligations
hereunder and to grant the rights granted to Lessee hereunder, and duly
authorized the forgoing.
(b) Dover has not received written notice from any governmental
authority pertaining to the violation of any law or regulation pertaining to the
Premises.
(c) Except for Permitted Encumbrances, there are and shall be no
liens, encumbrances, restrictions, covenants, easements or conditions, or other
title defects of record or otherwise, which would adversely affect Dover’s title to
the Leased Land or Lessee’s use or financing of the Leased Land for the Facility;
(d) That all Real Property Taxes and Other Property Taxes of any kind
with respect to the Leased Land, if any, or payments in lieu thereof, have been
paid in full; and
(e) That Dover makes no warranty or representation, express or
implied, as to whether the past uses of the Leased Land complied with federal,
Delaware, or local environmental laws.
Section 2.02. Warranties of Lessee. Lessee represents and warrants to and
covenants with Dover that Lessee has full power and authority to adopt, enter into,
execute and deliver this Lease, and to perform all of its obligations hereunder, and has
duly authorized the foregoing.
ARTICLE III
TAXES
Section 3.01. Taxes.
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(a) Real Property Taxes. Provided that Dover causes all applicable
Real Property Tax bills to be delivered to Lessee not later than thirty (30) days
prior to the applicable due date, Lessee shall pay, prior to delinquency, the Real
Property Taxes, if any, levied or assessed (i) against the Leased Land or (ii) the
Garrison Tract if not a separately taxed parcel (however, Lessee shall only pay
(A) a pro rata amount of such Garrison Tract Real Property Taxes based on the
acreage of unimproved land on the Premises as it bears in relation to the
acreage of unimproved land on the Property) and (B) the Real Property Taxes
levied or assessed with respect to the Facility, in each case for the period
commencing on the Effective Date and ending on the Expiration Date.
(b) Other Property Taxes. Lessee shall pay directly to the taxing
authority any Other Property Taxes levied or assessed against the Premises
(accruing from and after the Construction Start Up Date and before the Expiration
Date) prior to delinquency provided Dover delivers an invoice therefor not later
than thirty (30) days prior to the due date.
(c) Contesting Taxes. Lessee may, at its sole cost and expense,
contest by appropriate legal proceedings conducted in good faith and with due
diligence, the amount or validity or application, in whole or in part, of any taxes or
assessments. Dover management agrees to reasonably cooperate with such
efforts. Dover agrees to promptly cause the Leased Land to be separated as a
legal parcel out of the Garrison Tract if Lessee reasonably believes that its share
of Real Estate Taxes or Other Property Taxes would be less if the Leased Land
was a separately taxed parcel.
ARTICLE IV
ASSIGNMENT AND SUBLETTING OF THE LEASED LAND
Section 4.01. Lessee Assignment. Lessee shall not assign without obtaining
Dover’s written consent for the same. Notwithstanding the foregoing, Lessee may: (i)
assign this Lease without the consent of Dover to any Affiliate of Lessee; (ii) assign,
pledge, hypothecate or otherwise transfer, as and for, among other purposes, collateral
security, in connection with any financing-related or sale-leaseback transaction; and (iii)
grant licenses with respect to the Premises on a temporary basis in connection with the
development, construction, repair, improvement, repowering, operation or replacement
of the Facility (or related improvements). Dover agrees to execute a written consent to
such financing-related or sale-leaseback assignment as may be reasonably requested
from time to time. If such written consent is not requested, Lessee shall notify Dover of
any such assignment no later than thirty (30) days after the assignment. In evaluating a
proposed assignee or sublessee, Dover’s consent shall be deemed unreasonably
withheld if such consent is denied to a party (a) with substantially similar
creditworthiness or valuation as Lessee, and (b) that has at least similar experience as
Lessee in the operation of power generation facilities. Dover shall respond in writing
accepting or denying a proposed assignee or sublettee within 15 days after Lessee’s
request therefor, otherwise Dover’s consent shall be deemed granted.
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ARTICLE V
EASEMENTS; ADDITIONAL SPACE DURING CONSTRUCTION;
QUIET USE AND ENJOYMENT
Section 5.01. Granting Easements. Dover shall grant (and shall reasonably
cooperate with Lessee in obtaining grants from third parties of) such easements,
licenses, rights-of-way or other rights in the Leased Land and adjacent property
owned by Dover, in such form and substance as are determined by Lessee to be
reasonably necessary to construct, maintain, replace, repower, improve, own and
finance the Facility, and the foregoing shall become part of the Premises.
Section 5.02. Permitting and Approvals. Dover shall reasonably cooperate
with Lessee in, and shall support (and not publicly oppose) Lessee’s applications
for, all entitlements (including, but not limited to, all zoning changes or variances,
site plan approvals, building permits, regulatory approvals, interconnection rights
and other licenses, permits and approvals) reasonably required to develop,
construct, replace, repower, improve and operate the Facility.
Section 5.03. Notice of Start of Construction. Lessee shall provide Dover
thirty (30) days notice prior to commencing construction.
Section 5.04. Additional Space During Construction. During the course of
construction of the Facility, Dover, upon thirty days notice by Lessee, shall use its best
efforts to set aside such additional land adjacent to the Premises ( in an amount not to
exceed ten (10) acres) as is reasonably requested by Lessee for the efficient
construction of the Facility. Lessee shall use its commercially reasonable efforts to
minimize interference with the operations of Dover and any other authorized user of the
land adjacent to the Leased Land during the period of construction of the Facility. Once
Dover makes available this additional space, Lessee shall pay Dover forty-six dollars
($46.00) per acre per month or any portion of a calendar month.
Section 5.05. Quiet Use and Enjoyment. Subject to the terms of this Lease,
Lessee shall enjoy the peaceful and quiet use, possession and enjoyment of the
Premises without hindrance or disturbance by Dover or any persons claiming by,
through or under Dover. Dover agrees to warrant and forever defend Lessee’s
exclusive right to such occupancy, use, and enjoyment and the title to the Leased Land
against the claims of any and all persons whomsoever lawfully claim the same, or any
part thereof, by, through or under Dover.
Section 5.06. Setbacks and Shading. Dover shall enforce setbacks on adjoining
uses of the Garrison Tract such that structures and landscaping must be setback from
the Leased Land at (i) a minimum of forty (40) feet of horizontal distance for every ten
(10) feet of structure or tree height for uses that are located to the east or west of any
property line of the Leased Land and (ii) a minimum of twenty-five (25) feet of horizontal
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distance for every ten (10) feet of structure or tree height for uses that are located to the
north or south of any property line of the Leased Land. Dover understands that this
setback is essential to prevent and minimize shading on the Facility and thus maximize
energy production from the Facility, and Lessee and the Facility would be harmed
otherwise. Lessee is hereby permitted to trim and remove trees on the Leased Land in
accordance with local and state ordinances.
ARTICLE VI
USE; SURRENDER; ASSIGNMENT; CONDEMNATION; INSPECTIONS
Section 6.01. Use of the Leased Land. Lessee shall use the Leased Land
solely for the purpose of the development, construction, installation, ownership,
maintenance and operation of the Facility. In addition, at any time and from time to
time during the Term, Lessee may perform such alteration, renovation, repair,
refurbishment, replacement, improvement, repowering, removal, and other work
with regard to any of Lessee’s improvements on the Leased Land (including, but
not limited to, the Facility) as Lessee may elect.
Section 6.02. Surrender of the Leased Land.
(a) Lessee, upon the termination of this Lease, shall surrender
the Leased Land to Dover free and clear of all liens and encumbrances, except
Permitted Encumbrances and those approved by Dover during the Term.
Except as set forth in, and subject to the provisions of the SEPA, upon
termination of the Lease for any reason or upon Lessee’s desertion, vacation,
abandonment of or eviction from the Premises, (1) Lessee shall, at its sole cost
and expense, (i) remove all of its personal property, equipment, fixtures, goods or
other personal property maintained within or on the Premises, (ii) remove any
appurtenances, including foundations, footers, supports, and structures
(including the Facility) placed on the Premises by Lessee and (iii) backfill any
holes or excavations with clean fill material that occur from the removal of the
items in the preceding clause (ii) (“Restoration”), and (2) the Term shall remain in
effect for not more than nine (9) months after such termination (with rent
continuing to be due and payable by Lessee in the amount provided in Section
1.03(b)) in order to permit Lessee to complete its obligations under the preceding
clause (1); provided, however, that Lessee may, upon notice to Dover, terminate
this Lease at any time prior to the expiration of the nine (9) month period
provided Lessee has completed its obligations set forth in the preceding clause
(1).
(b) In order to secure the Restoration obligation, fifteen (15)
years after the Construction Start Up Date, Lessee shall provide Dover with a
letter of credit or bond (“Surety”) in the amount of the estimated costs to
complete the Restoration (“Restoration Costs”). To determine the amount of the
Restoration Costs, Lessee shall provide Dover with a list of at least four
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contractors qualified to provide estimates for the costs of the Restoration and
Dover shall approve at least three of the contractors within (30) Business Days
after receipt of the list. In the event, that Dover does not approve at least three
contractors, Dover shall provide its reasons of disapproval and offer alternative
contractors that are acceptable to Lessor. Lessor shall have three approved
contractors each prepare an estimate of the costs to complete the Restoration
and the average amount of the estimates prepared by the three contractors shall
be the amount of the Restoration Costs for purposes of this Section 6.02(b). The
costs of any such contractors shall be borne by Lessor. On each full calendar
year thereafter, the security for the Restoration Costs shall be increased by an
annual escalation rate of two and one-half percent (2.5%). The Surety is to
remain in effect until the appropriate phase of decommissioning is complete and
all associated costs have been paid in full, free from all liens and claims of
contractors, subcontractors, mechanics, laborers, and materialmen. Lessee shall
provide Dover with information and documentation to confirm the existence and
maintenance of such security in favor of Dover within thirty (30) days of each
anniversary of the date the original Surety is established.
Section 6.03. Assignment by Dover. In no event shall Dover sell or assign
Dover’s interest in the Leased Land unless Lessee has consented to said assignment or
sale in writing and the transferee has fully assumed all of the obligations of Dover under
this Lease.
Section 6.04. Condemnation.
(a) The parties represent and warrant that it is their intention that
neither the Premises, Facility, nor any portion of the foregoing, shall be subject to
a condemnation action or proceeding by the City for the purpose of seizing
property for a public use at anytime during the Term. However, the balance of
the provisions of this Section 6.04 apply in the event that circumstances
affecting the Premises and/or Facility substantially change in the future to the
extent that a condemnation action or proceeding affecting the Premises and/or
Facility becomes necessary.
(b) If any portion of the Premises is taken pursuant to condemnation,
eminent domain, or exercise of a similar power, or transfer under threat of such
compulsory transfer or taking by a governmental authority having jurisdiction
(other than Dover), then this Lease shall terminate as to such portion. Upon a
taking of any portion of the Premises, Rent shall be reduced by an amount equal
to the product of the (a) Rent otherwise payable under this Lease, multiplied by
(b) a fraction, the numerator of which is the square footage of the Premises taken
and the denominator of which is the square footage of Premises immediately
prior to such taking. If the remaining portion of the Premises is insufficient for
Lessee’s use as determined by Lessee in Lessee’s sole and absolute discretion,
Lessee shall have the right to terminate this Lease upon providing thirty (30)
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days’ written notice thereof to Dover. In the event of a complete taking, this
Lease shall terminate and be of no further force or effect.
(c) Both Lessee and Dover shall have the right to participate in any
condemnation proceeding. Each shall notify the other promptly of any
contemplated or threatened condemnation proceeding of which it shall become
aware and shall keep the other informed of developments with respect thereto.
Section 6.05. Compliance Inspections. Dover shall have the right to enter the
Premises (a) at any time, in the case of an emergency, and (b) otherwise at reasonable
times upon not less than five (5) Business Days prior written notice and during normal
business hours, in each case for the purpose of inspecting the condition of the Leased
Land and for verifying compliance by Lessee with this Lease and all applicable laws
and required permits. Lessee may require any parties entering upon the Premises to
adhere to Lessee’s rules and regulations relating to the safety and operation of the
Facility other than in the event of emergencies where adherence to such rules and
regulations would be impracticable.
ARTICLE VII
INSURANCE AND INDEMNIFICATION
Section 7.01. General Liability Insurance. Lessee shall, at its sole cost and
expense, keep and maintain in full force and effect through the Term Comprehensive
General Liability Insurance, and such policy shall name Dover as an additional insured.
Lessee shall also, at its sole cost and expense, keep and maintain in full force and
effect through the Term Workers' Compensation Insurance, as required by law.
Section 7.02. Certificates of Insurance. Upon Dover's request, Lessee shall
deliver to Dover a certificate evidencing such insurance coverage. All insurance
policies shall provide for thirty (30) days advance notice in writing to Dover prior to
modification or cancellation. The insurance required under this Article VII shall be
issued by a solvent company or companies having at the time of issue or reissue a
financial size category of not less than XII and with general policy holders' ratings of not
less than A, as rated in the most current available "Best's" insurance reports.
Section 7.03. Indemnification by Lessee. Lessee shall save, defend, indemnify
and hold harmless Dover and its officials, officers and employees in their official and
personal capacities (collectively, the “Dover Parties”), from all losses, fines, penalties,
costs, suits, proceedings, liabilities, damages, claims and actions of any kind
(collectively, “Liabilities”) arising out of Lessee’s use and occupancy of the Premises or
any buildings or other improvements thereon during the Term hereof; provided,
however, that Lessee’s foregoing shall not extend to any Liabilities relating to (a) any
condition on or under the Premises not caused by Lessee or (b) the negligence or willful
misconduct of any Dover Party. This indemnification shall extend to all claims by any
person or party for death or injury to persons and damage to any property, and to legal
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expense, including reasonable attorneys' fees and court costs. The provisions of this
Article shall survive the termination of this Lease.
Section 7.04. Indemnification by Dover. Dover shall save, defend, indemnify and
hold harmless Lessee, its officials, officers, members, managers, agents and
employees, in their official and personal capacities, from all Liabilities arising out of
Lessee’s use and occupancy of the Premises or any buildings or other improvements
thereon during the Term hereof. This indemnification shall extend to all claims by any
person or party for death or injury to persons and damage to any property, and to legal
expense, including reasonable attorneys' fees and court costs, to the extent that the
same arise from any negligence or willful misconduct of Dover, its contractors or any of
the other Dover Parties. The provisions of this Article shall survive the termination of
this Lease.
ARTICLE VIII
UTILITIES
Section 8.01. Lessee’s Obligations. Unless otherwise provided in the SEPA,
Dover shall have no obligation to pay any utility meter, connection and service charges,
including those for gas, sewer, electricity, water or standby sprinkler and/or any
deposits required by utility suppliers with respect to the Premises. Dover shall
cooperate with Lessee in obtaining any easements from third parties for utility services,
including the execution and delivery of any easement agreements. Lessee may
arrange for and provide such utility and other services to or for the benefit of the
Premises as Lessee deems appropriate and may execute, deliver and record such
agreements in furtherance thereof as Lessee deems appropriate.
ARTICLE IX
ENVIRONMENTAL COMPLIANCE
Section 9.01. No Hazardous Materials. Lessee shall not cause or knowingly
permit any hazardous materials or substances (as such terms are defined in any
environmental laws, rules or regulations) ("Hazardous Materials") to be generated,
produced, brought upon, used, stored, treated, discharged, released, spilled or
disposed of on, in, under or about the Premises in violation of applicable laws by
Lessee, its affiliates, agents, employees, contractors, sublessees, assignees or
invitees. Notwithstanding the foregoing, Lessee shall be permitted to bring upon, use
and store certain Hazardous Materials customarily used in the construction,
maintenance, operation, repairing, improving, replacing and decommissioning of the
Facility by Lessee provided Lessee complies with all environmental laws in connection
therewith.
Section 9.02. Indemnification for Hazardous Materials. Lessee shall indemnify,
defend and save harmless Dover from all Liabilities connected with any spills or
discharges of Hazardous Materials at or on the Premises which occur during the Term
in breach of Lessee’s obligation as set forth in Section 9.01 above (other than with
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respect to matters for which Lessee is liable). Nothing contained herein shall preclude
Lessee’s right to contest, by appropriate proceedings, the validity, or applicability to the
Premises, of any law or requirement of any public authority, or direction of any public
officer. Dover, at Dover's sole cost and expense, shall cooperate fully with Lessee in
any environmental action taken by Lessee with respect to the Premises in furtherance
of Lessee’s obligations under this Lease, including, without limitation, executing and
delivering to Lessee any submissions to, providing information to, and complying with
all requirements of, the Delaware Natural Resources Commission.
Dover shall indemnify, defend and save harmless Lessee, its officials, officers
and employees, in their official and personal capacities, from all losses, fines, penalties,
costs, suits, proceedings, liabilities, damages, claims and actions of any kind arising
out of or in any way connected with any costs, losses or liability arising out of spills or
discharges of Hazardous Materials, violations of Environmental Laws or other
conditions of the Premises which occurred, or were in existence, prior to the
commencement or after the end of the Term or are otherwise caused by Dover.
Section 9.03. Survival of Provisions. The provisions of this Article shall survive
the expiration or termination of this Lease.
ARTICLE X
EVENT OF DEFAULT BY LESSEE
Section 10.01. Default. Lessee shall be in default under this Lease only if,
during the Term, Lessee shall fail to observe any requirement, obligation (including
payment of Rent), agreement, covenant or condition of this Lease, and any such failure
shall continue for thirty (30) days after written notice from Dover specifying the basis for
such default (each, an "Event of Default"); provided, however, that in the event such
failure cannot reasonably be remedied by Lessee within thirty (30) days, no Event of
Default shall occur if Lessee commences to remedy the default within the thirty (30)
day time period and prosecutes the same to completion with diligence.
Section 10.02. Notice, Opportunity to Cure. Subject to the provisions of Article
XI, (1) upon an Event of Default (or for so long as such Event of Default continues),
Dover, without waiving any other rights available to Dover at law or in equity, may
either (a) give Lessee thirty (30) days` written notice of termination of this Lease or (b)
without terminating this Lease, give Lessee notice of Dover's intention to re-enter and
take possession of the Premises pursuant to legal process, and (2) the giving of either
of such notices to Lessee shall precede the termination of Lessee’s right to possession
of the Premises under this Lease, and give rise to the rights of Dover to exercise all
other available legal remedies without discharging Lessee from any of its liabilities or
obligations hereunder, except those that cannot be satisfied in the absence of
possession of the Premises by Lessee.
ARTICLE XI
LESSEE’S FINANCING
Section 11.01. Lessee’s Right to Encumber. Lessee may, from time to time and
at any time, without Dover’s consent or joinder, encumber its interest in this Lease and
the leasehold estate hereby created with one or more deeds of trust, mortgages, or other
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lien instruments to secure any borrowings or obligations of Lessee or Lessee’s affiliates.
Any such mortgages, deeds of trust, and/or other lien instruments, and the indebtedness
secured thereby, provided that Dover has been given notice thereof as set forth in
Section 12.05, are herein referred to as “Permitted Mortgages,” and the holder or other
beneficiary thereof are herein referred to as “Permitted Mortgagees.” No lien of Lessee
upon its interest in this Lease and the leasehold estate hereby created shall encumber or
affect in any way the interest of Dover hereunder or in and to the Leased Property,
except insofar as Dover is obligated to take certain actions as to Permitted Mortgagees
as provided in this Article 11. The Facility and the leasehold estate created hereby shall
at all times remain separate and apart from the title to the Leased Land for all purposes
relating to the interests of any mortgagees of Dover and Lessee.
Section 11.02. Mortgagee Protective Provisions. If Lessee encumbers its
interest in this Lease and the leasehold estate hereby created with liens as above
provided, then Lessee shall notify Dover thereof, providing with such notice the name
and mailing address of the Permitted Mortgagee in question, Dover shall, upon request,
acknowledge receipt of such notice, and for so long as the Permitted Mortgage in
question remains in effect the following shall apply:
(a) Dover shall give to the Permitted Mortgagee a duplicate copy of
any and all notices which Dover gives to Lessee pursuant to the terms hereof,
including notices of default, and no such notice shall be effective until such
duplicate copy is actually received by such Permitted Mortgagee, in the manner
provided in Section 12.05.
(b) There shall be no cancellation, surrender, or modification of this
Lease by joint action of Dover and Lessee without the prior written consent of the
Permitted Mortgagee.
(c) if an Event of Default should occur hereunder, then Dover
specifically agrees that:
(1) Dover shall not enforce or seek to enforce any of its rights,
recourses, or remedies, including but not limited to termination of this Lease
or Lessee’s right to possession hereunder, until a notice specifying the
Default and the event giving rise to such Default has been received by the
Permitted Mortgagee, in the manner provided in Section 12.05, and if the
Permitted Mortgagee proceeds to cure the Event of Default within a period of
30 days after the later of receipt of such notice or the occurrence of such
Event of Default, as to Events of Default which Permitted Mortgagee cannot
reasonably cure within such time period, the Permitted Mortgagee, to the
extent it is reasonably able to do so, commences curing such Event Default
within such time period and thereafter diligently pursues such cure to
completion, then any payments made and all things done by the Permitted
Mortgagee to effect such cure shall be as fully effective to prevent the
exercise of any rights, recourses, or remedies by Dover as if done by Lessee;
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(2) if the Event of Default is a nonmonetary default that a
Permitted Mortgagee cannot reasonably cure without being in possession of
the Premises, then for so long as the Permitted Mortgagee is diligently
attempting to secure possession of the Premises (whether by foreclosure or
other procedures), provided the Permitted Mortgagee cures any monetary
Events of Defaults as well as any other Events of Defaults that are reasonably
susceptible of then being cured by the Permitted Mortgagee, then Dover shall
allow the Permitted Mortgagee such time as may be reasonably necessary
under the circumstances to obtain possession of the Premises in order to
cure such Event of Default, and during such time Dover shall not enforce or
seek to enforce any of its rights, remedies or recourses hereunder; and
(3) if the Event of Default is a non monetary default of such a
nature that it is not reasonably susceptible of being cured by the Permitted
Mortgagee, then Dover shall not enforce or seek to enforce any of its rights,
remedies, or recourses hereunder so long as Permitted Mortgagee pays all
Rent then due and thereafter keeps the monetary obligations of Lessee
hereunder current and complies with those other provisions of this Lease
which, by their nature, Permitted Mortgagee may then reasonably comply
with.
(d) Should the Lease be terminated for any reason other than
expiration of the stated Term, then the Permitted Mortgagee shall have the right
and option, exercisable by delivering notice to Dover not later than 60 days after
receipt from Dover of written notice of such termination (which notice Dover
agrees to give) to elect to receive, in its own name or in the name of its nominee
or assignee, a new lease of the Premises for the unexpired balance of the Term
on the same terms and conditions as herein set forth, having the same priority as
this Lease, and Dover agrees to execute such new lease provided such
Permitted Mortgagee shall undertake forthwith to remedy any then uncured
Event of Default reasonably susceptible by its nature of being remedied by such
Permitted Mortgagee, including the payment of any amount due hereunder.
(e) No Permitted Mortgagee shall be or become liable to Dover as an
assignee of this Lease until such time as such Permitted Mortgagee, by
foreclosure or other procedures, shall either acquire the rights and interests of
Lessee under this Lease or shall actually take possession of the Premises, and
upon such Permitted Mortgagee’s assigning such rights and interests to another
party or upon relinquishment of such possession, as the case may be, such
Permitted Mortgagee shall have no further such liability.
(f) From time to time during the Term, Dover shall, within ten (10)
Business Days after receipt, execute and deliver to a Permitted Mortgagee, or a
prospective Permitted Mortgagee, any estoppel, nondistrubance agreement,
recognition agreement, consent, lien waiver or other commercially reasonable
document requested by any Permitted Mortgagee or prospective Permitted
Mortgagee, in each case in form and substance reasonably acceptable to Dover.
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(g) Dover shall not encumber the Premises (or any interest therein)
without obtaining Lessee’s prior written consent. Lessee may condition its
consent to any encumbrance on fee title to the Leased Land on the execution by
the fee lender of a subordination agreement or a nondisturbance/recognition
agreement in form and substance acceptable to all Permitted Mortgagees.
11.03. Modifications. If any prospective Permitted Mortgagee requires
modifications to this Lease as a condition to granting a Permitted Mortgage, Dover shall
not unreasonably withhold its consent to such modifications, provided that Dover shall
not be required to consent to any such modification pertaining to Rent, the Term, or any
other material economic provision of this Lease, nor to any modification which would
materially decrease Dover’s rights or increase its burdens or obligations hereunder. Any
out of pocket cost incurred by Dover in connection with any such proposed modification
shall be borne by Lessee.
ARTICLE XII
MISCELLANEOUS
Section 12.01. Amendments. The parties hereto may amend this Lease only in
writing. Without limiting the generality of the foregoing, the term of this Lease shall be,
and is hereby, extended to coincide with any extension of the terms of the SEPA.
Section 12.02. Severability. If any term or provision of this Lease, or the
application thereof to any person or circumstances shall to any extent, be invalid or
unenforceable, the remainder of this Lease or the application of such term or provision
to persons or circumstances other than those as to which it is invalid or unenforceable,
shall not be affected thereby, and each term and provision of this Lease shall be valid
and enforceable to the fullest extent permitted by law.
Section 12.03. Waiver. The waiver by either party of any breach of this Lease
shall not be deemed to be a waiver of a subsequent breach of the same or any other
covenant, condition or term of this Lease.
Section 12.04. Merger. This Lease, including all exhibits attached hereto,
constitutes the entire agreement between the parties, and all prior understandings,
agreements and representations have been merged herein.
Section 12.05. Notices and Demands. Notices required by this Lease shall be
addressed to the other Party at the addresses noted in Exhibit C as either Party updates
them from time to time by written notice to the other Party. Any notice, request,
consent, or other communication required or authorized under this Lease to be given by
one Party to the other Party shall be in writing. It shall either be hand delivered or
mailed via overnight service with signature required upon receipt, to the representative
of said other Party. If delivered, the notice, request, consent or other communication
shall be simultaneously sent by facsimile or other electronic means. Any such notice,
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request, consent, or other communication shall be deemed to have been received by
the close of the Business Day on which it was hand delivered or transmitted
electronically (unless hand delivered or transmitted after such close in which case it
shall be deemed received at the close of the next Business Day). Real-time or routine
communications concerning Facility operations shall be exempt from this Section.
Section 12.06. Mutual Waiver of Subrogation. Each party hereby waives any
and all claims which arise or which may arise in its favor and against the other party
hereto during the Term or any extension or renewal thereof for any and all loss of, or
damage to, any of its property located within or upon or constituting a part of the
Facility, to the extent that such loss or damage is recovered under an insurance policy
or policies and to the extent such policy or policies contain provision permitting such
waiver of claims. Each party agrees to request its insurers to issue policies containing
such provisions and if any extra premium is payable therefor, the party which would
benefit from the provision shall have the option to pay such additional premium in order
to obtain such benefit.
Section 12.07. Standard of Approvals. If and to the extent the consent, approval
or similar action of a party is required under this Lease, such consent, approval or
similar action shall not be unreasonably withheld, conditioned or delayed unless
otherwise expressly provided in the terms of this Lease.
Section 12.08. Estoppel Certificate. Dover and Lessee shall execute and deliver
to each other, within 15 Business Days after request therefor by the other party, or by
any Permitted Mortgagee, a certificate addressed as indicated by the requesting party
and stating:
(a) whether or not this Lease is in full force and effect;
(b) whether or not this Lease has been modified or amended in any
respect, and submitting copies of such modifications or amendments;
(c) whether or not there are any existing defaults or Events of Default
hereunder known to the party executing the certificate, and specifying the nature
thereof;
(d) whether or not any particular Article, Section, or provision of this
Lease has been complied with; and
(e) such other matters as may be reasonably requested by the
requesting party.
Section 12.09. Binding Effect. This Lease shall inure to the benefit of and shall
be binding upon Lessee and Dover and their respective successors and assigns.
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Section 12.10. Counterparts. This Lease may be executed in counterparts, each
of which shall constitute original documents, but all of which together shall constitute
one and the same instrument.
Section 12.11. Applicable Law. This Lease shall be interpreted and enforced in
accordance with the laws of Delaware.
Section 12.12. Recording. A memorandum of this Lease shall be recorded by
Lessee, and Dover agrees to execute and acknowledge such memorandum promptly
following Lessee’s request therefor.
Section 12.13. Headings. The headings of the several sections hereof are
inserted for convenience only and shall not control or affect the interpretation of the
provisions hereof.
Section 12.14. Force Majeure. If Dover or Lessee shall be delayed, hindered in
or prevented from the performance of any acts required hereunder, other than the
payment of Rent, by reason of a Force Majeure Delay, then performance of such acts
shall be excused for the period of the delay and the period for the performance of any
such act shall be extended for a period equal to the period of such delay.
Section 12.15. Brokerage. Lessee and Dover each represents and warrants to
the other that it knows of no person who is entitled to a real estate brokerage
commission or sum in lieu thereof in connection with the execution of this Lease or the
creation of the tenancy effected by this Lease and each agrees to save, defend and
indemnify the other from and against any claims, costs or damages attributable to any
misrepresentation or breach of warranty by the indemnitor hereunder.
Section 12.16. No Joint Venture. Nothing contained in this Lease shall be
interpreted as creating a joint venture, partnership, or any other relationship between
the parties, other than the relationship described in this Lease.
Section 12.17 Legal Representation. The provisions of and exhibits to this
Lease have been prepared, examined, negotiated and revised by each party and their
respective lawyers, and no implication shall be drawn and no provision shall be
construed against any party hereto by virtue of the purported identity of the drafter of
the Lease or any portion thereof.
Section 12.18. Recitals Incorporated. The above recitals are incorporated herein
by this reference as part of this Agreement.
Section 12.19. Integration. This Lease and the SEPA constitute the entire
agreement of the parties hereto with respect to its subject matter, and all prior
agreements (whether written or oral) with respect thereto are merged herein. Any
agreements entered into between Dover and Lessee of even date herewith are not,
however, merged herein. Notwithstanding anything to the contrary in this Lease, if and
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to the extent any terms of this Lease conflict with the terms of the SEPA (or any of
them), the terms of the SEPA shall control.
Section 12.20. Attorneys’ Fees. If litigation is ever instituted by either party
hereto to enforce, interpret, or to seek damages for the breach of, any provision hereof,
the prevailing party therein shall be promptly reimbursed by the other party for all
attorneys’ fees and expenses reasonably incurred by the prevailing party in connection
with such litigation.
Section 12.21. Dispute Resolution. It is the intent of the parties that disputes
involving construction or operation of the Facility on the Premises shall be resolved as
quickly as possible.
[remainder of page intentionally left blank – signature page follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the
date first above written.
Attest: CITY OF DOVER, DELAWARE
By:_______________________________ By:
Title:______________________________
Attest: WHITE OAK SOLAR ENERGY, LLC
By:_______________________________ By:
Title:______________________________
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EXHIBIT A - LEGAL DESCRIPTION OF LEASED PREMISES
Page 28
EXHIBIT B
CERTAIN DEFINITIONS
1. “Affiliate” shall have the meaning set forth in the SEPA.
2. “Business Day” or “Business Days” shall have the meaning set forth in the
SEPA.
3. Commercial Operations Date” shall have the same meaning set forth in the
SEPA.
4. “Comprehensive General Liability Insurance” means commercial general
liability insurance with a limit of liability shall not be less than $1,000,000 per
occurrence.
5. “Construction Start Up Date” means the date upon which Lessee provides
notice to its engineering, procurement and construction contractor to start
construction of the Facility.
6. “Force Majeure Delay” means a cause or event that actually and proximately
prevents either Party, in whole or in part, from performing any of its
obligations under this Lease including, acts of God; unusually severe actions
of the elements such as floods, inundation, landslides, earthquake, lightning,
hurricanes, or tornadoes; unusually severe weather; terrorism; war (whether
or not declared); sabotage, acts or threats of terrorism, riots or public
disorders; delays in obtaining necessary permits, regulatory approvals and
other entitlements from a Governmental Authority (as defined in the SEPA),
utility or quasi-governmental; strikes or labor disputes not expressly excluded
below; actions or failures to act of an unaffiliated third party supplier of goods
or services (to the extent caused by an event which would meet the definition
of Force Majeure); actions or failures to act of any Governmental Authority
(including the failure to issue permits, blockade, embargo, military or
governmentally usurped power, expropriation or requisition) to the extent
preventing or delaying the performance of the Party claiming Force Majeure;
any delay or extension in the initial Commercial Operations Date permitted
under the SEPA; any delay reasonably necessary in order to achieve
Financial Closing (as defined in the SEPA); and any other event beyond the
reasonable control of the Party claiming Force Majeure, whether or not
foreseeable, but only to the extent the Party claiming Force Majeure is unable
to prevent, avoid or overcome such event through the exercise of
commercially reasonable efforts, and such event is not the result of the fault
or negligence of the Party claiming Force Majeure.
7. “Garrison Tract” means the property identified on Exhibit A .
Page 29
8. “Other Property Taxes” means taxes, other than Real Property Taxes,
assessed or levied against the Leased Land.
9. “Permitted Encumbrances” means:
(a) Real Property Taxes and Other Property Taxes to the extent not
past due or payable;
(b) title encumbrances and matters reasonably acceptable to the
parties, as confirmed in writing by the parties; and
(c) such other easements, reservations, covenants, rights of way and
other title matters that may be caused from time to time by Lessee in order to
facilitate the development, financing, installation and//or operation of the
Facility.
10. “Real Property Taxes” means the real property taxes assessed or levied
against the Leased Land.
11. “Workers’ Compensation Insurance” means workers’ compensation insurance
as to Lessee’s employees involved in the construction, operation, or
maintenance of the Facility in compliance with applicable laws.
Page 30
EXHIBIT C
NOTICE ADDRESSES
FOR DOVER:
Registered/Notice Address:
City Manager
City of Dover Attn: Mr. Anthony DePrima
15 E. Loockerman St. Email: tdeprima@dover.de.us
Dover, DE 19903 Phone: (302) 736-7005
Fax: (302) 736-7002
Copy to:
Public Utilities Director Attn: Mr. Ronald Lunt
860 Buttner Pl. Email: rlunt@dover.de.us
Dover, DE 19904 Phone: (302) 736-7070
Wire Transfer Information - US
Bank:
Account Name: To be provided
Bank Name:
Bank City and State:
ABA# (9 digits):
Account #:
Page 31
FOR LESSEE:
Registered/Notice Address: Attn: David Haden
Two Tower Center, 11th Floor Email: dhaden@LSPower.com
East Brunswick, NJ 08816 Phone: 732-867-5852
Fax: 732-249-7290
Confirmation Address: Attn: David Haden
Two Tower Center, 11th Floor Email: dhaden@LSPower.com
East Brunswick, NJ 08816 Phone: 732-867-5852
Fax: 732-249-7290
cc All invoices and notices to:
Billing Address: Attn: Srinivasan Sridharan
Two Tower Center, 11th Floor Email: ssridharan@LSPower.com
East Brunswick, NJ 08816 Phone: 732-867-5882
Fax: 732-249-6750
Credit Address: Attn: Scott Tansey
Two Tower Center, 11th Floor Email: stansey@LSPower.com
East Brunswick, NJ 08816 Phone: 732-867-5881
Fax: 732-249-7290
Legal Address Attn: David Sass
Two Tower Center, 11th Floor Email: dsass@LSPower.com
East Brunswick, NJ 08816 Phone: 732-867-5853
Fax: 732-249-7290
Operations/Scheduling Notifications Facility Manager
Phone: TBD
Email: TBD
Plant Control Room: TBD
Wire Transfer Information - US
Bank:
Account Name: To be provided
Bank Name:
Bank City and State:
ABA# (9 digits):
Account #:
Page 32
ATTACHMENT #3
Utiility Committee Meeting of 1/25/2010
SMALL GENERATOR
INTERCONNECTION AGREEMENT
Between the City of Dover, Delaware
and
White Oak Solar Energy, LLC
(For Generating Facilities No Larger Than 20 MW)
Page 33
TABLE OF CONTENTS
Page No.
Article 1. Scope and Limitations of Agreement. ................................................................... - 1 -
1.1 Applicability ....................................................................................................... - 1 -
1.2 Purpose................................................................................................................ - 1 -
1.3 No Agreement to Purchase or Deliver Power ..................................................... - 1 -
1.4 Limitations .......................................................................................................... - 2 -
1.5 Responsibilities of the Parties ............................................................................. - 2 -
1.6 Parallel Operation Obligations ............................................................................ - 3 -
1.7 Metering .............................................................................................................. - 3 -
1.8 Reactive Power ................................................................................................... - 4 -
Article 2. Inspection, Testing, Authorization, and Right of Access ..................................... - 4 -
2.1 Equipment Testing and Inspection...................................................................... - 4 -
2.2 Authorization Required Prior to Parallel Operation. .......................................... - 5 -
2.3 Right of Access ................................................................................................... - 5 -
Article 3. Effective Date, Term, Termination, and Disconnection ...................................... - 6 -
3.1 Effective Date ..................................................................................................... - 6 -
3.2 Term of Agreement ............................................................................................. - 6 -
3.3 Termination ......................................................................................................... - 6 -
3.4 Temporary Disconnection................................................................................... - 7 -
3.4.1 Emergency Conditions ............................................................................ - 7 -
3.4.2 Routine Maintenance, Construction, and Repair .................................... - 7 -
3.4.3 Forced Outages ....................................................................................... - 8 -
3.4.4 Adverse Operating Effects ...................................................................... - 8 -
3.4.5 Modification of the Small Generating Facility ....................................... - 8 -
3.4.6 Reconnection........................................................................................... - 8 -
Article 4. Cost Responsibility for Interconnection Facilities and Distribution Upgrades - 9 -
4.1 Interconnection Facilities .................................................................................... - 9 -
4.2 Distribution Upgrades ......................................................................................... - 9 -
Article 5. Cost Responsibility for Network Upgrades .......................................................... - 9 -
5.1 Applicability ....................................................................................................... - 9 -
5.2 Network Upgrades .............................................................................................. - 9 -
5.3 Special Provisions for Affected Systems .......................................................... - 10 -
5.4 Rights Under Other Agreements ....................................................................... - 10 -
Article 6. Billing, Payment, Milestones, and Financial Security ....................................... - 10 -
6.1 Billing and Payment Procedures and Final Accounting ................................... - 10 -
6.2 Milestones. ........................................................................................................ - 11 -
6.3 Financial Security Arrangements ...................................................................... - 11 -
-i-
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Article 7. Assignment, Liability, Indemnity, Force Majeure, Consequential Damages,
and Default .................................................................................................................. - 12 -
7.1 Assignment ....................................................................................................... - 12 -
7.2 Limitation of Liability....................................................................................... - 13 -
7.3 Indemnity .......................................................................................................... - 13 -
7.4 Consequential Damages .................................................................................... - 14 -
7.5 Force Majeure. .................................................................................................. - 14 -
7.6 Default............................................................................................................... - 15 -
Article 8. Insurance ................................................................................................................ - 16 -
Article 9. Confidentiality ....................................................................................................... - 17 -
Article 10. Disputes ................................................................................................................ - 18 -
Article 11. Taxes ..................................................................................................................... - 19 -
Article 12. Miscellaneous ....................................................................................................... - 19 -
12.1 Governing Law, Regulatory Authority, and Rules ........................................... - 19 -
12.2 Amendment ....................................................................................................... - 19 -
12.3 No Third-Party Beneficiaries ............................................................................ - 19 -
12.4 Waiver ............................................................................................................... - 20 -
12.5 Entire Agreement .............................................................................................. - 20 -
12.6 Multiple Counterparts. ...................................................................................... - 20 -
12.7 No Partnership .................................................................................................. - 20 -
12.8 Severability ....................................................................................................... - 20 -
12.9 Security Arrangements...................................................................................... - 21 -
12.10 Environmental Releases .................................................................................... - 21 -
12.11 Subcontractors................................................................................................... - 21 -
Article 13. Notices .................................................................................................................. - 21 -
13.1 General .............................................................................................................. - 22 -
13.2 Billing and Payment .......................................................................................... - 22 -
13.3 Alternative Forms of Notice ............................................................................. - 23 -
13.4 Designated Operating Representative ............................................................... - 23 -
13.5 Changes to the Notice Information ................................................................... - 23 -
Article 14. Signatures............................................................................................................. - 24 -
Attachment 1 – Glossary of Terms
Attachment 2 – Description and Costs of the Interconnection Facilities and Metering
Equipment
Attachment 3 – One-line Diagram Depicting the Small Generating Facility, Interconnection
Facilities, Metering Equipment, and Upgrades
Attachment 4 – Milestones
Attachment 5 – Interconnection Requirements and Additional Operating Requirements for
the Interconnection Provider's Distribution System and Affected Systems Needed to Support
- ii -
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the Interconnection Customer’s Needs
Attachment 6 – Interconnection Provider's Description of its Upgrades and Best Estimate of
Upgrade Costs
Attachment 7 – Rate for Use of Interconnection Provider Distribution System
- iii -
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This Interconnection Agreement ("Agreement") is made and entered into this
________ day of ________________, 2010, by City of Dover Municipal Electric
Department on behalf of the City of Dover, Delaware ("Interconnection Provider"), and
White Oak Solar Energy, LLC ("Interconnection Customer") each hereinafter sometimes
referred to individually as "Party" or both referred to collectively as the "Parties."
Interconnection Provider Information
City of Dover Public Utilities Department
Attention: Ron Lunt
860 Buttner Place
Dover, DE 19904
Phone: 302-736-7070
Fax: 302-736-7081
email: rlunt@Dover.de.us
Interconnection Customer Information
White Oak Solar Energy, LLC
Attention: David Haden
Address: Two Tower Center, 11th Floor
City: East Brunswick, NJ 08816
Phone: 732-867-5852
Fax: 732-249-7290
Email: dhaden@LSPower.com
In consideration of the mutual covenants set forth herein, the Parties agree as follows:
Article 1. Scope and Limitations of Agreement
1.1 This Agreement shall be used for all Interconnection Requests for Interconnection
Customer’s Small Generating Facility.
1.2 This Agreement governs the terms and conditions under which the Interconnection
Customer’s Small Generating Facility will interconnect with, and operate in parallel
with, the Interconnection Provider's Distribution System.
1.3 This Agreement does not constitute an agreement to purchase or deliver the
Interconnection Customer's power. The purchase or delivery of power and other
services of the Interconnection Customer are covered under a separate Solar Energy
Purchase Agreement between Interconnection Customer and the Interconnection
Small Generator Interconnection Agreement -1-
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Provider.
1.4 Nothing in this Agreement is intended to affect any other agreement between the
Interconnection Provider and the Interconnection Customer.
1.5 Responsibilities of the Parties
1.5.1 The Parties shall perform all obligations of this Agreement in accordance with
all Applicable Laws and Regulations, Operating Requirements, and Good
Utility Practice.
1.5.2 The Interconnection Customer shall construct, interconnect, operate and
maintain its Small Generating Facility and construct, operate, and maintain its
Interconnection Facilities in accordance with the applicable manufacturer's
recommended maintenance schedule, and in accordance with this Agreement,
and with Good Utility Practice.
1.5.3 The Interconnection Provider shall construct, operate, and maintain its
Distribution System and Interconnection Facilities in accordance with this
Agreement, and with Good Utility Practice.
1.5.4 The Interconnection Customer agrees to construct its facilities or systems in
accordance with applicable specifications that meet or exceed those provided
by the National Electrical Safety Code, the American National Standards
Institute, IEEE, Underwriter's Laboratory, and Operating Requirements in
effect at the time of construction and other applicable national and state codes
and standards. The Interconnection Customer agrees to design, install,
maintain, and operate its Small Generating Facility so as to reasonably
minimize the likelihood of a disturbance adversely affecting or impairing the
system or equipment of the Interconnection Provider and any Affected
Systems.
1.5.5 Each Party shall operate, maintain, repair, and inspect, and shall be fully
responsible for the facilities that it now or subsequently may own unless
otherwise specified in the Attachments to this Agreement. Each Party shall be
responsible for the safe installation, maintenance, repair and condition of their
respective lines and appurtenances on their respective sides of the point of
change of ownership. The Interconnection Provider and the Interconnection
Customer, as appropriate, shall provide Interconnection Facilities that
adequately protect the Interconnection Provider's Distribution System,
personnel, and other persons from damage and injury. The allocation of
responsibility for the design, installation, operation, maintenance and
ownership of Interconnection Facilities shall be delineated in the Attachments
to this Agreement.
Small Generator Interconnection Agreement -2-
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1.5.6 The Interconnection Provider shall coordinate with all Affected Systems to
support the interconnection.
1.6 Parallel Operation Obligations
Once the Small Generating Facility has been authorized to commence parallel
operation, the Interconnection Customer shall abide by all rules and procedures
pertaining to the parallel operation of the Small Generating Facility in the applicable
control area, including, but not limited to: 1) the rules and procedures concerning the
operation of generation set forth in the City of Dover Interconnection Requirements
or by the applicable system operator(s) for the Interconnection Provider's Distribution
System and; 2) the Operating Requirements set forth in Attachment 5 of this
Agreement.
1.7 Metering
The Interconnection Customer shall be responsible for the Interconnection Provider's
reasonable and necessary cost for the purchase, installation, operation, maintenance,
testing, repair, and replacement of metering and data acquisition equipment specified
in Attachments 2 and 3 of this Agreement, including meters required by Affected
Parties. The Interconnection Customer's metering (and data acquisition, as required)
equipment shall conform to applicable industry rules and Operating Requirements.
1.7.1 A meter of revenue quality and associated equipment shall be installed at or
near the Point of Interconnection and readings shall be available to the
Interconnection Provider, Interconnection Customer, and PJM at all times.
1.7.2 The meter(s) shall be tested by Interconnection Customer according to Good
Utility Practice but no less than every three (3) years or upon request by either
Party. A written report shall be prepared by Interconnection Customer and
provided to Interconnection Provider. The Parties may be present during any
testing of the meter. The Party requesting the test shall be responsible for the
costs of such testing if performed outside of the normal periodic testing
criteria stated in article 1.7.4.
1.7.3 Each Party shall have the right to install back up metering. Back up metering,
if it is ever to be relied upon for revenue, shall be of the same manufacturer
and model as the primary revenue meter. Back up metering shall be tested
according to the same procedures and standards as the primary metering.
1.7.4 A meter shall be deemed inaccurate if it is inaccurate by more than +/- 1%. If
a meter is found to be inaccurate, the Parties may use the back up metering, if
any, if it has been tested regularly according to the same protocols as the
primary metering. If back up metering is not available or if it is also found to
be inaccurate, the Parties shall estimate the amount of the necessary
adjustment on the basis of deliveries during a period of similar operating
conditions when the primary meter was registering accurately.
Small Generator Interconnection Agreement -3-
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1.7.5 In the event that the Parties cannot agree on a period during which the
inaccurate measurements were made, the period during which the
measurements are to be adjusted shall be the shorter of (i) the last one-half of
the period from the least previous test of the electric metering device, or (ii)
the one hundred eighty (180) days immediately preceding the test that found
the meter was inaccurate.
1.8 Reactive Power
1.8.1 The Interconnection Customer shall design its Small Generating Facility to
maintain a continuous rated power output at the Point of Interconnection at a
power factor of equal to 98.5% or better unless the Interconnection Provider
has established different requirements that apply to all similarly situated
generators in the control area on a comparable basis.
1.8.2 The Interconnection Provider is required to pay the Interconnection Customer
for reactive power that the Interconnection Customer provides or absorbs from
the Small Generating Facility when the Interconnection Provider requests the
Interconnection Customer to operate its Small Generating Facility outside the
range specified in article 1.8.1.
1.9 Fee for the Use of the System. The Interconnection Customer shall pay the
Interconnection Provider for the use of the System in accordance with the
Interconnection Provider’s Tariff when the Interconnection Customer uses the
Interconnection Providers System to transmit electricity to another Transmission
System.
1.10 Capitalized terms used herein shall have the meanings specified in the Glossary of
Terms in Attachment 1 or the body of this Agreement.
Article 2. Inspection, Testing, Authorization, and Right of Access
2.1 Equipment Testing and Inspection
2.1.1 The Interconnection Customer shall test and inspect its Small Generating
Facility and Interconnection Facilities prior to interconnection in accordance
with the Dover Interconnection Requirements. In addition, periodic testing is
required in accordance with the Dover Interconnection Requirements. The
Interconnection Customer shall notify the Interconnection Provider of such
activities no fewer than five Business Days (or as may be agreed to by the
Parties) prior to such testing and inspection. Testing and inspection shall
occur on a Business Day. The Interconnection Provider may, at its own
expense, send qualified personnel to the Small Generating Facility site to
Small Generator Interconnection Agreement -4-
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inspect the interconnection and observe the testing. The Interconnection
Customer shall provide the Interconnection Provider a written test report when
such testing and inspection is completed.
2.1.2 The Interconnection Provider shall provide the Interconnection Customer
written acknowledgment that it has received the Interconnection Customer's
written test report. Such written acknowledgment shall not be deemed to be
or construed as any representation, assurance, guarantee, or warranty by the
Interconnection Provider of the safety, durability, suitability, or reliability of
the Small Generating Facility or any associated control, protective, and safety
devices owned or controlled by the Interconnection Customer or the quality of
power produced by the Small Generating Facility.
2.2 Authorization Required Prior to Parallel Operation
2.2.1 Interconnection Provider has attached the Dover Interconnection
Requirements as Attachment 5 of this Agreement. Interconnection Provider
shall notify the Interconnection Customer of any changes to these
requirements as soon as they are adopted.; provided, however, that other than
changes as may be required by Applicable Laws and Regulations,
Interconnection Provider shall not, without Interconnection Customer’s prior
written approval, change the attached Dover Interconnection Requirements in
a manner that would adversely affect the Interconnection Customer.
Interconnection Provider shall make Reasonable Efforts to cooperate with the
Interconnection Customer in meeting requirements necessary for the
Interconnection Customer to commence parallel operations by the in-service
date.
2.2.2 The Interconnection Customer shall not operate its Small Generating Facility
in parallel with the Interconnection Provider's Distribution System without
prior written authorization of the Interconnection Provider. The
Interconnection Provider will provide such authorization once the
Interconnection Provider receives notification that the Interconnection
Customer has complied with all commissioning tests and applicable parallel
operation requirements. Such authorization shall not be unreasonably
withheld, conditioned, or delayed.
2.3 Right of Access
2.3.1 Upon reasonable notice, the Interconnection Provider may send a qualified
person to the premises of the Interconnection Customer at or immediately
before the time the Small Generating Facility first produces energy to inspect
the interconnection, and observe the commissioning of the Small Generating
Facility (including any required testing), startup, and operation for a period of
up to three Business Days after initial start-up of the unit. In addition, the
Small Generator Interconnection Agreement -5-
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Interconnection Customer shall notify the Interconnection Provider at least
forty-eight hours prior to conducting any on-site verification testing of the
Small Generating Facility.
2.3.2 Following the initial inspection process described above, at reasonable hours
and upon reasonable notice, or at any time without notice in the event of an
emergency or hazardous condition, the Interconnection Provider shall have
access to the Interconnection Customer's premises for any reasonable purpose
in connection with the performance of the obligations imposed on it by this
Agreement or if necessary to meet its legal obligation to provide service to its
customers.
2.3.3 Each Party shall be responsible for its own costs incurred to comply with this
article.
Article 3. Effective Date, Term, Termination, and Disconnection
3.1 Effective Date
This Agreement shall become effective upon execution by the Parties.
3.2 Term of Agreement
This Agreement shall become effective on the Effective Date and shall remain in
effect for a period of twenty years from the commercial operation date of the Small
Generating Facility, or such other longer period as the Interconnection Customer may
request, and shall be automatically renewed for each successive one-year period
thereafter, unless terminated earlier in accordance with article 3.3 of this Agreement.
3.3 Termination
No termination shall become effective until the Parties have complied with all
Applicable Laws and Regulations applicable to such termination; provided, however,
that the Parties understand and agree that this Agreement is not jurisdictional to the
Federal Energy Regulatory Commission.
3.3.1 The Interconnection Customer may terminate this Agreement at any time by
giving the Interconnection Provider twenty (20) Business Days written notice.
3.3.2 Either Party may terminate this Agreement after Default pursuant to article
7.6.
3.3.3 Upon termination of this Agreement, the Small Generating Facility will be
disconnected from the Interconnection Provider's Distribution System. All
costs required to effectuate such disconnection shall be borne by the
terminating Party, unless such termination resulted from the non-terminating
Party’s Default of this Agreement or such non-terminating Party otherwise is
Small Generator Interconnection Agreement -6-
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responsible for these costs under this Agreement.
3.3.4 The termination of this Agreement shall not relieve either Party of its
liabilities and obligations, owed or continuing at the time of the termination.
3.3.5 This provisions of this article shall survive termination or expiration of this
Agreement.
3.4 Temporary Disconnection
Temporary disconnection shall continue only for so long as reasonably necessary
under Good Utility Practice.
3.4.1 Emergency Conditions -- "Emergency Condition" shall mean a condition or
situation: (1) that in the judgment of the Party making the claim is
imminently likely to endanger life or property; or (2) that, in the case of the
Interconnection Provider, is imminently likely (as determined in a non-
discriminatory manner) to cause a material adverse effect on the security of,
or damage to, the Distribution System, the Interconnection Provider's
Interconnection Facilities or the Affected Systems to which the Distribution
System is directly connected; or (3) that, in the case of the Interconnection
Customer, is imminently likely (as determined in a non-discriminatory
manner) to cause a material adverse effect on the security of, or damage to,
the Small Generating Facility or the Interconnection Customer's
Interconnection Facilities. Under Emergency Conditions, the Interconnection
Provider may immediately suspend interconnection service and temporarily
disconnect the Small Generating Facility. The Interconnection Provider shall
notify the Interconnection Customer promptly when it becomes aware of an
Emergency Condition that may reasonably be expected to affect the
Interconnection Customer's operation of the Small Generating Facility. The
Interconnection Customer shall notify the Interconnection Provider promptly
when it becomes aware of an Emergency Condition that may reasonably be
expected to affect the Interconnection Provider's Distribution System or any
Affected Systems. To the extent information is known, the notification shall
describe the Emergency Condition, the extent of the damage or deficiency, the
expected effect on the operation of both Parties' facilities and operations, its
anticipated duration, and the necessary corrective action.
3.4.2 Routine Maintenance, Construction, and Repair
The Interconnection Provider may interrupt interconnection service or curtail
the output of the Small Generating Facility and temporarily disconnect the
Small Generating Facility from the Interconnection Provider's Distribution
System when necessary for routine maintenance, construction, and repairs on
the Interconnection Provider's Distribution System; provided, however, that
Interconnection Provider may not schedule maintenance during the months of
June, July, August, or September unless agreed to in writing by the
Small Generator Interconnection Agreement -7-
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Interconnection Customer, or unless such maintenance outages can be
performed at night and do not affect the Small Generating Facility’s
operations during the day. The Interconnection Provider will provide
Interconnection Customer three months advance notice of scheduled
maintenance that could impact the Small Generating Facility. The
Interconnection Provider shall use Reasonable Efforts to coordinate such
reduction or temporary disconnection with the Interconnection Customer, and
shall take into account any reasonable requests by Interconnection Customer
to adjust any scheduled maintenance outage.
3.4.3 Forced Outages
During any forced outage, the Interconnection Provider may suspend
interconnection service to effect immediate repairs on the Interconnection
Provider's Distribution System. The Interconnection Provider shall use
Reasonable Efforts to provide the Interconnection Customer with prior notice.
If prior notice is not given, the Interconnection Provider shall, upon request,
provide the Interconnection Customer written documentation after the fact
explaining the circumstances of the disconnection.
3.4.4 Adverse Operating Effects
The Interconnection Provider shall notify the Interconnection Customer as
soon as practicable if, based on Good Utility Practice, operation of the Small
Generating Facility may cause disruption or deterioration of service to other
customers served from the same electric system, or if operating the Small
Generating Facility could cause damage to the Interconnection Provider's
Distribution System or Affected Systems. Supporting documentation used to
reach the decision to disconnect shall be provided to the Interconnection
Customer upon request. If, after notice, the Interconnection Customer fails to
remedy the adverse operating effect within a reasonable time, the
Interconnection Provider may disconnect the Small Generating Facility. The
Interconnection Provider shall provide the Interconnection Customer with five
Business Day notice of such disconnection, unless the provisions of article
3.4.1 apply.
3.4.5 Modification of the Small Generating Facility
The Interconnection Customer must receive written authorization from the
Interconnection Provider before making any change to the Small Generating
Facility that may have a material impact on the safety or reliability of the
Distribution System. Such authorization shall not be unreasonably withheld.
Modifications shall be done in accordance with Good Utility Practice. If the
Interconnection Customer makes such modification without the
Interconnection Provider's prior written authorization, the latter shall have the
right to temporarily disconnect the Small Generating Facility.
3.4.6 Reconnection
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The Parties shall cooperate with each other to restore the Small Generating
Facility, Interconnection Facilities, and the Interconnection Provider's
Distribution System to their normal operating state as soon as reasonably
practicable following a temporary disconnection.
Article 4. Cost Responsibility for Interconnection Facilities and Distribution Upgrades
4.1 Interconnection Facilities
4.1.1 The Interconnection Customer shall pay for the cost of the Interconnection
Provider’s study and Interconnection Facilities itemized in Attachment 2 of
this Agreement. The Interconnection Provider shall provide a best estimate
cost, including overheads, for the purchase and construction of its
Interconnection Facilities and provide a detailed itemization of such costs.
Costs associated with Interconnection Facilities may be shared with other
entities that may benefit from such facilities by agreement between the
Interconnection Customer and such other entities.
4.1.2 The Interconnection Customer shall be responsible for all reasonable
expenses, including overheads, associated with (1) owning, operating,
maintaining, repairing, and replacing its own Interconnection Facilities, and
(2) operating, maintaining, repairing, and replacing the Interconnection
Provider's Interconnection Facilities, and an interconnection study.
4.2 Distribution Upgrades
The Interconnection Provider shall design, procure, construct, install, and own the
Distribution Upgrades described in Attachment 6 of this Agreement. If the
Interconnection Provider and the Interconnection Customer agree, the Interconnection
Customer may construct Distribution Upgrades that are located on land owned by the
Interconnection Customer. The actual cost of the Distribution Upgrades, including
overheads, shall be directly assigned to the Interconnection Customer.
Article 5. Cost Responsibility for Network Upgrades
5.1 Applicability
No portion of this article 5 shall apply unless the interconnection of the Small
Generating Facility requires Network Upgrades.
5.2 Network Upgrades
The Interconnection Provider shall design, procure, construct, install, and own the
Network Upgrades described in Attachment 6 of this Agreement. If the
Interconnection Provider and the Interconnection Customer agree, the Interconnection
Customer may construct Network Upgrades that are located on land owned by the
Small Generator Interconnection Agreement -9-
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Interconnection Customer. Unless the Interconnection Provider elects to pay for
Network Upgrades, the actual cost of the Network Upgrades, including overheads,
shall be borne initially by the Interconnection Customer.
5.2.1. If the Small Generating Facility fails to achieve commercial operation, but it
or another generating facility is later constructed and requires use of the
Network Upgrades, the Interconnection Provider and Affected System
operator shall at that time reimburse the Interconnection Customer for the
amounts advanced for the Network Upgrades. Before any such
reimbursement can occur, the Interconnection Customer, or the entity that
ultimately constructs the generating facility, if different, is responsible for
identifying the entity to which reimbursement must be made.
5.3 Special Provisions for Affected Systems
Unless the Interconnection Provider provides under this Agreement for the repayment
of amounts advanced to any applicable Affected System operators for Network
Upgrades, the Interconnection Customer and Affected System operator shall enter
into an agreement that provides for such repayment. The agreement shall specify the
terms governing payments to be made by the Interconnection Customer to Affected
System operator as well as the repayment by Affected System operator.
5.4 Rights Under Other Agreements
Notwithstanding any other provision of this Agreement, nothing herein shall be
construed as relinquishing or foreclosing any rights, including but not limited to firm
transmission rights, capacity rights, transmission congestion rights, or transmission
credits, that the Interconnection Customer shall be entitled to, now or in the future,
under any other agreement or tariff as a result of, or otherwise associated with, the
transmission capacity, if any, created by the Network Upgrades, including the right to
obtain cash reimbursements or transmission credits for transmission service that is not
associated with the Small Generating Facility.
Article 6. Billing, Payment, Milestones, and Financial Security
6.1 Billing and Payment Procedures and Final Accounting
Within three months of completing the construction and installation of the
Interconnection Provider's Interconnection Facilities and/or Upgrades described in the
Attachments to this Agreement, the Interconnection Provider shall provide the
Interconnection Customer with a final accounting report of any difference between
(1) the Interconnection Customer's cost responsibility for the actual cost of such
facilities or Upgrades, and (2) the Interconnection Customer's previous aggregate
payments to the Interconnection Provider for such facilities or Upgrades. If the
Interconnection Customer's cost responsibility exceeds its previous aggregate
payments, the Interconnection Provider shall invoice the Interconnection Customer
for the amount due and the Interconnection Customer shall make payment to the
Small Generator Interconnection Agreement - 10 -
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Interconnection Provider within 15 calendar days. If the Interconnection Customer's
previous aggregate payments exceed its cost responsibility under this Agreement, the
Interconnection Provider shall refund to the Interconnection Customer an amount
equal to the difference within 15 calendar days of the final accounting report.
6.2 Milestones
The Parties shall agree on milestones for which each Party is responsible and list
them in Attachment 4 of this Agreement. A Party's obligations under this provision
may be extended by agreement; however, the Interconnection Customer may elect, in
its sole discretion, to delay the commercial operations date of the Small Generating
Facility by up to 6 months upon written notice to the Interconnection Provider. If the
Interconnection Customer provides such notice, the Parties will amend other
milestones, as appropriate. If a Party anticipates that it will be unable to meet a
milestone for any reason other than a Force Majeure Event, it shall immediately
notify the other Party of the reason(s) for not meeting the milestone and (1) propose
the earliest reasonable alternate date by which it can attain this and future milestones,
and (2) requesting appropriate amendments to Attachment 4. The Party affected by
the failure to meet a milestone shall not unreasonably withhold agreement to such an
amendment unless (1) it will suffer significant uncompensated economic or
operational harm from the delay, (2) attainment of the same milestone has previously
been delayed, or (3) it has reason to believe that the delay in meeting the milestone is
intentional or unwarranted notwithstanding the circumstances explained by the Party
proposing the amendment.
6.3 Financial Security Arrangements
At least twenty (20) Business Days prior to the commencement of the design,
procurement, installation, or construction of a discrete portion of the Interconnection
Provider's Interconnection Facilities and Upgrades, the Interconnection Customer
shall provide the Interconnection Provider, at the Interconnection Customer's option,
cash, or in lieu thereof, a guarantee, a surety bond, letter of credit or other form of
security that is reasonably acceptable to the Interconnection Provider and is consistent
with the Delaware Uniform Commercial Code. Such security for payment shall be in
an amount sufficient to cover the costs for constructing, designing, procuring, and
installing the applicable portion of the Interconnection Provider's Interconnection
Facilities and Network Upgrades and shall be reduced on a dollar-for-dollar basis for
payments made to the Interconnection Provider under this Agreement during its term.
In addition:
6.3.1 The guarantee must be made by an entity that meets the creditworthiness
requirements of the Interconnection Provider, and contain terms and
conditions that guarantee payment of any amount that may be due from the
Interconnection Customer, up to an agreed-to maximum amount.
6.3.2 The letter of credit or surety bond must be issued by a financial institution that
is a U.S. commercial bank or the licensed U.S. branch of a foreign commercial
Small Generator Interconnection Agreement - 11 -
Page 47
bank having a Senior Debt Rating equivalent to A- or better as determined by
at least two (2) rating agencies, one of which must be either Standard &
Poor’s or Moody’s or insurer reasonably acceptable to the Interconnection
Provider and must specify a reasonable expiration date.
Article 7. Assignment, Liability, Indemnity, Force Majeure, Consequential Damages,
and Default
7.1 Assignment
7.1.1 Except as permitted in this article 7.1.2, neither Party shall assign this
Agreement or any portion thereof, without the prior written consent of the
other Party, which consent shall not be unreasonably withheld if (i) the
assignor provides at least thirty (30) Days prior notice of any such assignment
to the other Party; (ii) the assignee shall expressly assume the assignor’s
obligations hereunder; (iii) assignment shall not relieve the assignor of its
obligations hereunder in the event the assignee fails to perform; (iv)
assignment shall not impair any security given by Interconnection Customer
hereunder; and (v) the assignee first obtains such approvals as may be
required by all Applicable Laws and Regulations.
7.1.2 Notwithstanding article 7.1.1, Interconnection Customer may: (i) assign this
Agreement without the consent of Interconnection Provider to any Affiliate of
Interconnection Provider; and (ii) assign, pledge, hypothecate or otherwise
transfer, as and for, among other purposes, collateral security, in connection
with any financing or the refinancing of the Facility, including a sale of this
Agreement, together with a sale of the Facility, combined with the lease back
to Interconnection Customer of the Agreement and Facility, as part of a sale-
leaseback financing transaction. In connection with any such permitted
transfer by Interconnection Customer, Interconnection Provider agrees to
execute a written consent to such collateral assignment as may be reasonably
requested, which collateral assignment may include, among other terms,
Interconnection Provider’s agreement not to terminate this Agreement on
account of any Event of Default without written notice to the Financing
Parties and first providing the Financing Parties with such opportunity to cure
such Event of Default. If such written consent is not requested,
Interconnection Customer shall notify Interconnection Provider of any such
assignment to the Financing Parties no later than ten (10) Business Days after
the assignment. Interconnection Customer may subcontract its duties or
obligations under this Agreement without the prior written consent of
Interconnection Provider, provided, that no such subcontract shall relieve
Interconnection Customer of any of its duties or obligations hereunder.
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7.1.3 Any attempted assignment that violates this article is void and ineffective.
Assignment shall not relieve a Party of its obligations, nor shall a Party's
obligations be enlarged, in whole or in part, by reason thereof. An assignee is
responsible for meeting the same financial, credit, and insurance obligations
as the Interconnection Customer. Where required, consent to assignment will
not be unreasonably withheld, conditioned or delayed.
7.2 Limitation of Liability
Each Party's liability to the other Party for any loss, cost, claim, injury, liability, or
expense, including reasonable attorney's fees, relating to or arising from any act or
omission in its performance of this Agreement, shall be limited to the amount of
direct damage actually incurred. In no event shall either Party be liable to the other
Party for any indirect, special, consequential, or punitive damages, except as
authorized by this Agreement.
7.3 Indemnity
7.3.1 This provision protects each Party from liability incurred to third parties as a
result of carrying out the provisions of this Agreement. Liability under this
provision is exempt from the general limitations on liability found in article
7.2.
7.3.2 The Parties shall at all times indemnify, defend, and hold the other Party
harmless from, any and all damages, losses, claims, including claims and
actions relating to injury to or death of any person or damage to property,
demand, suits, recoveries, costs and expenses, court costs, attorney fees, and
all other obligations by or to third parties, arising out of or resulting from the
other Party's action or failure to meet its obligations under this Agreement on
behalf of the indemnifying Party, except in cases of gross negligence or
intentional wrongdoing by the indemnified Party.
7.3.3 If an indemnified person is entitled to indemnification under this article as a
result of a claim by a third party, and the indemnifying Party fails, after notice
and reasonable opportunity to proceed under this article, to assume the
defense of such claim, such indemnified person may at the expense of the
indemnifying Party contest, settle or consent to the entry of any judgment with
respect to, or pay in full, such claim.
7.3.4 If an indemnifying party is obligated to indemnify and hold any indemnified
person harmless under this article, the amount owing to the indemnified
person shall be the amount of such indemnified person's actual loss, net of any
insurance or other recovery.
7.3.5 Promptly after receipt by an indemnified person of any claim or notice of the
commencement of any action or administrative or legal proceeding or
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investigation as to which the indemnity provided for in this article may apply,
the indemnified person shall notify the indemnifying party of such fact. Any
failure of or delay in such notification shall not affect a Party's
indemnification obligation unless such failure or delay is materially
prejudicial to the indemnifying party.
7.4 Consequential Damages
Other than as expressly provided for in this Agreement, neither Party shall be liable
under any provision of this Agreement for any losses, damages, costs or expenses for
any special, indirect, incidental, consequential, or punitive damages, including but not
limited to loss of profit or revenue, loss of the use of equipment, cost of capital, cost
of temporary equipment or services, whether based in whole or in part in contract, in
tort, including negligence, strict liability, or any other theory of liability; provided,
however, that damages for which a Party may be liable to the other Party under
another agreement will not be considered to be special, indirect, incidental, or
consequential damages hereunder.
7.5 Force Majeure
7.5.1 As used in this article, a Force Majeure Event shall mean a cause or event that
actually and proximately prevents either Party, in whole or in part, from
performing any of its obligations under this Agreement including, acts of God;
unusually severe actions of the elements such as floods, inundation,
landslides, earthquake, lightning, hurricanes, or tornadoes; unusually severe
weather; terrorism; war (whether or not declared); sabotage, acts or threats of
terrorism, riots or public disorders; delays in obtaining necessary permits and
regulatory approvals; strikes or labor disputes not expressly excluded below;
actions or failures to act of an unaffiliated third party supplier of goods or
services (to the extent caused by an event which would meet the definition of
Force Majeure); and actions or failures to act of any Governmental Authority
(including the failure to issue permits, blockade, embargo, military or
governmentally usurped power, expropriation or requisition) to the extent
preventing or delaying the performance of the Party claiming Force Majeure;
or any other event beyond the reasonable control of the Party claiming Force
Majeure, whether or not foreseeable, but only to the extent the Party claiming
Force Majeure is unable to prevent, avoid or overcome such event through the
exercise of commercially reasonable efforts, and such event is not the result of
the fault or negligence of the Party claiming Force Majeure. “Force Majeure”
shall not include: (i) any failure of, or delay in performance, or any full or
partial curtailment in the electric output of the Small Generation Facility that
is caused by a labor dispute or strike by Interconnection Customer’s
employees or any employees of Interconnection Customer’s contractors
employed at the Small Generation Facility (except to the extent arising out of
a strike or labor action not directed specifically at the Interconnection
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Customer or the Facility, including without limitation, a national or regional
strike), (ii) market changes in, or that otherwise effect, the price of energy,
capacity or environmental attributes, or (iii) any change in Applicable Law or
Regulations that effects the value or existence of environmental attributes.
7.5.2 If a Force Majeure Event prevents a Party from fulfilling any obligations
under this Agreement, the Party affected by the Force Majeure Event
(Affected Party) shall promptly notify the other Party, either in writing or via
the telephone, of the existence of the Force Majeure Event. The notification
must specify in reasonable detail the circumstances of the Force Majeure
Event, its expected duration, and the steps that the Affected Party is taking to
mitigate the effects of the event on its performance. The Affected Party shall
keep the other Party informed on a continuing basis of developments relating
to the Force Majeure Event until the event ends. The Affected Party will be
entitled to suspend or modify its performance of obligations under this
Agreement (other than the obligation to make payments) only to the extent
that the effect of the Force Majeure Event cannot be mitigated by the use of
Reasonable Efforts. The Affected Party will use Reasonable Efforts to resume
its performance as soon as possible.
7.6 Default
7.6.1 Any of the following shall constitute a Default:
a) A Party’s dissolution or liquidation;
b) A Party’s filing of a voluntary petition in bankruptcy or insolvency or
for reorganization or arrangement under the bankruptcy laws of the
United States or under any insolvency law of any State, or
Interconnection Provider voluntarily taking advantage of any such law
by answer or otherwise.
c) Interconnection Customer’s failure to establish and maintain the
funding of the Security in accordance with Article 6.3.
d) Interconnection Customer’s failure to make any payment due
hereunder that is not cured within ten (10) Days of the date on which
such payment is due shall constitute an Event of Default.
e) A Party’s failure to achieve milestones for which each Party is
responsible as set forth in Attachment 4 of this Agreement.
f) A Party’s failure to comply with any other material obligation under
this Agreement.
7.6.2 No Default shall exist where such failure to discharge an obligation (other
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than the payment of money) is the result of a Force Majeure Event as defined
in this Agreement or the result of an act or omission of the other Party. Upon
a Default, the non-defaulting Party shall give written notice of such Default to
the defaulting Party. Except as provided in article 7.6.1 (d) or for failure to
pay for the services of the Interconnection Provider under its tariffs, the
defaulting Party shall have thirty (30) calendar days from receipt of the
Default notice within which to cure such Default; provided however, if such
Default is not capable of cure within thirty (30) calendar days, the defaulting
Party shall commence such cure within ten (10) calendar days after notice and
continuously and diligently complete such cure within forty-five (45) days
from receipt of the Default notice; and, if cured within such time, the Default
specified in such notice shall cease to exist.
7.6.3 If a Default is not cured as provided in this article, or if a Default is not
capable of being cured within the period provided for herein, the non-
defaulting Party shall have the right to terminate this Agreement by written
notice at any time until cure occurs, and be relieved of any further obligation
hereunder and, whether or not that Party terminates this Agreement, to recover
from the defaulting Party all amounts due hereunder, plus all other damages
and remedies to which it is entitled at law or in equity. The provisions of this
article will survive termination of this Agreement.
Article 8. Insurance
8.1 The Interconnection Customer shall, at its own expense, maintain in force general
liability insurance without any exclusion for liabilities related to the interconnection
undertaken pursuant to this Agreement as set forth in Article XVI of the Solar Energy
Purchase Agreement. The amount of such insurance shall be sufficient to insure
against all reasonably foreseeable direct liabilities given the size and nature of the
generating equipment being interconnected, the interconnection itself, and the
characteristics of the system to which the interconnection is made. Such insurance
shall be obtained from an insurance provider authorized to do business in the State of
Delaware. Certification that such insurance is in effect shall be provided upon
request of the Interconnection Provider, except that the Interconnection Customer
shall show proof of insurance to the Interconnection Provider no later than ten (10)
Business Days prior to the anticipated commercial operation date and annually
thereafter
8.2 The Interconnection Provider agrees to maintain general liability insurance or self-
insurance consistent with the Interconnection Provider’s commercial practice. Such
insurance or self-insurance shall not exclude coverage for the Interconnection
Provider's liabilities undertaken pursuant to this Agreement.
8.3 The Parties further agree to notify each other whenever an accident or incident occurs
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resulting in any injuries or damages that are included within the scope of coverage of
such insurance, whether or not such coverage is sought.
Article 9. Confidentiality
9.1 Confidential Information shall mean any confidential and/or proprietary information
provided by one Party to the other Party that is clearly marked or otherwise
designated "Confidential".
9.2 Confidential Information does not include (i) information which is or becomes
generally available to the public other than as a result of a disclosure or other act by
the Receiving Party or its receiving Party’s Representatives (as defined below); (ii)
information which can be shown by the receiving Party to have been already known
to the receiving Party on a non-confidential basis prior to being furnished to the
receiving Party by the disclosing Party; and (iii) information that becomes available
to the receiving Party on a non-confidential basis from a source other than the
disclosing Party or a representative of the disclosing Party if to the knowledge of the
receiving Party such source was not subject to any prohibition against transmitting the
information to the receiving Party.
9.3 If a receiving Party or its Representatives are requested or required (by a FOIA
request, oral question, interrogatories, requests for information or documents,
subpoena, civil investigative demand or similar process, or by applicable law) to
disclose any Confidential Information, the receiving Party shall promptly notify the
disclosing Party of such request or requirement, if that notification can be made
without violating the terms of such compelled disclosure, so that the disclosing Party
may seek an appropriate protective order or waive compliance with this article 9.3
with respect to such disclosure. If, in the absence of a protective order or the receipt
of a waiver hereunder, the receiving Party or its receiving Party’s Representatives are,
in the opinion of their legal counsel, compelled to disclose the Confidential
Information, the receiving Party and its Representatives may disclose only such of the
Confidential Information to the party compelling disclosure as is required by law and,
in connection with such compelled disclosure, the receiving Party and its
Representatives shall use their reasonable efforts to obtain from the party to whom
disclosure is made written assurance that confidential treatment will be accorded to
such portion of the Confidential Information as is disclosed. Notwithstanding the
foregoing, if a receiving Party believes that it is necessary to disclose Confidential
Information in any proceeding before any applicable Governmental Authority relating
to this Agreement in order to enforce this Agreement, it shall be entitled to make such
disclosure but only if the receiving Party (i) takes all reasonable steps to limit the
scope of any disclosure of Confidential Information; and (ii) uses its best efforts
to make such disclosure of Confidential Information in an executive session or under
a protective order or other similar procedure.
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9.4 Except as otherwise provided for herein, each Party receiving Confidential
Information shall hold such information in confidence and shall not disclose it to any
third party without the prior written authorization from the disclosing Party.
Notwithstanding the foregoing, Confidential Information may be disclosed by the
receiving Party to its affiliates and any of their respective directors, officers,
employees, financial advisors, financing parties, legal counsel, accountants,
purchasers from the Interconnection Customer’s Small Generating Facility,
authorized agents of the receiving Party identified in writing to the Disclosing Party,
and current and potential investors (collectively, " Representatives"), but only if such
Representatives need to know the Confidential Information in connection with this
PPA. The Parties agree that (i) such Representatives will be informed by the
Receiving Party of the confidential nature of the Confidential Information and the
requirement and the limitations of its use, (ii) such Representatives will be required to
agree to and be bound by the terms of this article 9.4 as a condition of receiving the
Confidential Information, and (iii) in any event, the receiving Party will be
responsible for any disclosure of Confidential Information, or any other breach of
confidentiality provisions of this Agreement, by any of its Representatives. Each
Party shall employ at least the same standard of care to protect Confidential
Information obtained from the other Party as it employs to protect its own
Confidential Information.
Article 10. Disputes
10.1 The Parties agree to attempt to resolve all disputes arising out of the interconnection
process according to the provisions of this article.
10.2 In the event of a dispute, either Party shall provide the other Party with a written
Notice of Dispute. Such Notice shall describe in detail the nature of the dispute.
10.3 Any dispute concerning interpretation or clarification of this Agreement, or the
acceptable performance thereof by a Party (“Dispute”), shall be immediately
submitted in writing for resolution to the Interconnection Provider. All
determinations, instructions, and clarifications of the Interconnection Provider shall be
final and conclusive, unless the Interconnection Customer files with Interconnection
Provider a written protest stating clearly and in detail the basis thereof within ten (10)
Business Days after the Interconnection Provider notifies the Interconnection
Customer of any such determination, instruction, or clarification. Interconnection
Provider shall respond to such protest within twenty (20) Business Days of its receipt.
10.4 In the event that use of the procedures set forth in article 10.3 does not lead to
satisfactory resolution of the Dispute, either Party may send a Notice of Dispute to the
other Party and request a conference for resolution of such dispute. Within three (3)
Business Days after delivery of such notice, each Party shall nominate a senior officer
of its management to meet at the Interconnection Provider’s office, or at any other
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mutually agreed location, to resolve the dispute, which conference shall be convened
within ten (10) Business Days after exchange of such nominations unless the parties
mutually agree to another date. In the event the Parties are unable to resolve the
Dispute through the procedures set forth in this article 10.4, either Party shall have the
right to pursue the remedies in accordance with the procedures set forth in article 10.5.
10.5 With respect to any Dispute or claim arising out of or related to this Agreement, or
breach thereof, which cannot be resolved amicably, the Parties consent to the
exclusive jurisdiction of, and venue in, the state or federal courts located in
Wilmington, Delaware.
10.6 During the pendency of any dispute, the Parties will continue to perform the
obligations imposed upon them under this Agreement to the fullest extent possible,
without prejudice to their respective positions in dispute.
Article 11. Taxes
11.1 The Parties agree to follow all applicable tax laws and regulations, consistent with
Internal Revenue Service and Delaware requirements.
11.2 Each Party shall cooperate with the other to maintain the other Party's tax status.
Nothing in this Agreement is intended to adversely affect the Interconnection
Provider's tax exempt status with respect to the issuance of bonds including, but not
limited to, local furnishing bonds.
Article 12. Miscellaneous
12.1 Governing Law, Regulatory Authority, and Rules
The validity, interpretation and enforcement of this Agreement and each of its
provisions shall be governed by the laws of the state of Delaware, without regard to
its conflicts of law principles. This Agreement is subject to all Applicable Laws and
Regulations. Each Party expressly reserves the right to seek changes in, appeal, or
otherwise contest any laws, orders, or regulations of a Governmental Authority.
12.2 Amendment
The Parties may amend this Agreement by a written instrument duly authorized and
executed by both Parties.
12.3 No Third-Party Beneficiaries
This Agreement is not intended to and does not create rights, remedies, or benefits of
any character whatsoever in favor of any persons, corporations, associations, or
entities other than the Parties, and the obligations herein assumed are solely for the
use and benefit of the Parties, their successors in interest and where permitted, their
assigns.
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12.4 Waiver
12.4.1 The failure of a Party to this Agreement to insist, on any occasion, upon strict
performance of any provision of this Agreement will not be considered a
waiver of any obligation, right, or duty of, or imposed upon, such Party.
12.4.2 Any waiver at any time by either Party of its rights with respect to this
Agreement shall not be deemed a continuing waiver or a waiver with respect
to any other failure to comply with any other obligation, right, or duty of this
Agreement. Termination or default of this Agreement for any reason by
Interconnection Customer shall not constitute a waiver of the Interconnection
Customer’s legal rights to obtain an interconnection from the Transmission
Provider. Any waiver of this Agreement shall, if requested, be provided in
writing.
12.5 Entire Agreement
This Agreement, including all Attachments, constitutes the entire agreement between
the Parties with reference to the subject matter hereof, and supersedes all prior and
contemporaneous understandings or agreements, oral or written, between the Parties
with respect to the subject matter of this Agreement. There are no other agreements,
representations, warranties, or covenants which constitute any part of the
consideration for, or any condition to, either Party's compliance with its obligations
under this Agreement.
12.6 Multiple Counterparts
This Agreement may be executed in two or more counterparts, each of which is
deemed an original but all constitute one and the same instrument.
12.7 No Partnership
This Agreement shall not be interpreted or construed to create an association, joint
venture, agency relationship, or partnership between the Parties or to impose any
partnership obligation or partnership liability upon either Party. Neither Party shall
have any right, power or authority to enter into any agreement or undertaking for, or
act on behalf of, or to act as or be an agent or representative of, or to otherwise bind,
the other Party.
12.8 Severability
If any provision or portion of this Agreement shall for any reason be held or adjudged
to be invalid or illegal or unenforceable by any court of competent jurisdiction or
other Governmental Authority, (1) such portion or provision shall be deemed separate
and independent, (2) the Parties shall negotiate in good faith to restore insofar as
practicable the benefits to each Party that were affected by such ruling, and (3) the
remainder of this Agreement shall remain in full force and effect.
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12.9 Security Arrangements
Infrastructure security of electric system equipment and operations and control
hardware and software is essential to ensure day-to-day reliability and operational
security. The Parties will comply with the recommendations offered by the
President's Critical Infrastructure Protection Board and, eventually, best practice
recommendations from the electric reliability authority. All public utilities are
expected to meet basic standards for system infrastructure and operational security,
including physical, operational, and cyber-security practices.
12.10 Environmental Releases
Each Party shall notify the other Party, first orally and then in writing, of the release
of any hazardous substances, any asbestos or lead abatement activities, or any type of
remediation activities related to the Small Generating Facility or the Interconnection
Facilities, each of which may reasonably be expected to affect the other Party. The
notifying Party shall (1) provide the notice as soon as practicable, provided such Party
makes a good faith effort to provide the notice no later than 24 hours after such Party
becomes aware of the occurrence, and (2) promptly furnish to the other Party copies
of any publicly available reports filed with any governmental authorities addressing
such events.
12.11 Subcontractors
Nothing in this Agreement shall prevent a Party from utilizing the services of any
subcontractor as it deems appropriate to perform its obligations under this
Agreement; provided, however, that each Party shall require its subcontractors to
comply with all applicable terms and conditions of this Agreement in providing such
services and each Party shall remain primarily liable to the other Party for the
performance of such subcontractor.
12.11.1 The creation of any subcontract relationship shall not relieve the hiring
Party of any of its obligations under this Agreement. The hiring Party
shall be fully responsible to the other Party for the acts or omissions
of any subcontractor the hiring Party hires as if no subcontract had
been made; provided, however, that in no event shall the
Interconnection Provider be liable for the actions or inactions of the
Interconnection Customer or its subcontractors with respect to
obligations of the Interconnection Customer under this Agreement.
Any applicable obligation imposed by this Agreement upon the hiring
Party shall be equally binding upon, and shall be construed as having
application to, any subcontractor of such Party.
12.11.2 The obligations under this article will not be limited in any way by any
limitation of subcontractor’s insurance.
Article 13. Notices
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13.1 General
Unless otherwise provided in this Agreement, any written notice, demand, or request
required or authorized in connection with this Agreement ("Notice") shall be deemed
properly given if delivered in person, delivered by recognized national currier service,
or sent by first class mail, postage prepaid, to the person specified below:
If to the Interconnection Customer:
White Oak Solar Energy, LLC
Attention: Asset Manager
Address: Two Tower Center, 11th Floor
City: East Brunswick State: NJ Zip: 08816
Phone: 732-249-6750
Fax: 732-249-7290
With a copy to:
White Oak Solar Energy, LLC
Attention: Eric Crawford
Address 5000 Hopyard Road, Suite 480
City: Pleasanton State: CA Zip: 94588
Phone: 925-201-5234
Fax: 925-201-5230
If to the Interconnection Provider:
City of Dover Public Utilities Department
Attention: Ron Lunt
Address: 860 Buttner Place
City: Dover State: DE Zip: 19904
Phone: 302-736-7070
Fax: 302-736-7081
13.2 Billing and Payment
Billings and payments shall be sent to the addresses set out below:
Interconnection Customer:
White Oak Solar Energy, LLC
Attention: David Haden
Address: Two Tower Center, 11th Floor
City: East Brunswick, NJ 08816
Phone: 732-867-5852
Fax: 732-249-7290
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If to the Interconnection Provider:
City of Dover Finance Department
Attention: Controller - Donna Mitchell
Address: P.O. Box 475
City: Dover State: DE Zip: 19903-0475
Phone: 302-736-7018
Fax: 302-736-7177
13.3 Alternative Forms of Notice
Any notice or request required or permitted to be given by either Party to the other
and not required by this Agreement to be given in writing may be so given by
telephone, facsimile or e-mail to the telephone numbers and e-mail addresses set out
above.
13.4 Designated Operating Representative
The Parties shall designate operating representatives to conduct the communications
which may be necessary or convenient for the administration of this Agreement. This
person will also serve as the point of contact with respect to operations and
maintenance of the Party’s facilities.
Interconnection Customer’s Operating Representative:
Interconnection Customer:
White Oak Solar Energy, LLC
Attention: Asset Manager
Address: Two Tower Center, 11th Floor
City: East Brunswick State: NJ Zip: 08816
Phone: 732-249-6750
Fax: 732-249-7290
Interconnection Provider’s Operating Representative:
Interconnection Provider:
City of Dover Public Utilities Department
Attention: Steve Enss
Address: 860 Buttner Place
City: Dover State: DE Zip: 19904
Phone: 302-736-7086
Fax: 302-736-7081
Email: sEnss@dover.de.us
13.5 Changes to the Notice Information
Either Party may change this information by giving five Business Days written notice
prior to the effective date of the change.
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Article 14. Signatures
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized representatives.
For the Interconnection Provider
Name: ___________________________________________
Title: ___________________________________________
Date: ___________________
For the Interconnection Customer
Name: ___________________________________________
Title: ___________________________________________
Date: ___________________
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Attachment 1
Glossary of Terms
Affected System – An electric system other than the Interconnection Provider's Distribution
System that may be affected by the proposed interconnection.
Applicable Laws and Regulations – All duly promulgated applicable federal, state and
local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or
administrative orders, permits and other duly authorized actions of any Governmental
Authority.
Business Day – Any calendar Day that is not a Saturday, a Sunday, or a NERC, state and/or
federal recognized holiday where banks in Delaware are permitted or authorized to close.
Default – The failure of a breaching Party to cure its breach under the Small Generator
Interconnection Agreement.
Dover Interconnection Requirements means the Technical Requirements for
Interconnection of White Oak Solar Energy, LLC 10 MW Photovoltaic Plant to the City of
Dover Electric Transmission System, of even date herewith.
Distribution System – The Interconnection Provider's facilities and equipment used to
transmit electricity to ultimate usage points such as homes and industries directly from
nearby generators or from interchanges with higher voltage transmission networks which
transport bulk power over longer distances.
Distribution Upgrades – The additions, modifications, and upgrades to the Interconnection
Provider's Distribution System at or beyond the Point of Interconnection to facilitate
interconnection of the Small Generating Facility. Distribution Upgrades do not include
Interconnection Facilities.
Good Utility Practice – Any of the practices, methods and acts engaged in or approved by a
significant portion of the electric industry during the relevant time period, or any of the
practices, methods and acts which, in the exercise of reasonable judgment in light of the facts
known at the time the decision was made, could have been expected to accomplish the
desired result at a reasonable cost consistent with good business practices, reliability, safety
and expedition. Good Utility Practice is not intended to be limited to the optimum practice,
method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or
acts generally accepted in the region.
Governmental Authority – Any federal, state, local or municipal governmental body; any
governmental, quasi-governmental, regulatory or administrative agency, commission, body
or other authority exercising or entitled to exercise any administrative, executive, judicial,
legislative, policy, regulatory or taxing authority or power; or any court or governmental
Glossary of Terms -1-
Page 61
tribunal.
Interconnection Customer – White Oak Solar Energy, LLC.
Interconnection Facilities – The Interconnection Provider's Interconnection Facilities and
the Interconnection Customer's Interconnection Facilities. Collectively, Interconnection
Facilities include all facilities and equipment between the Small Generating Facility and the
Point of Interconnection, including any modification, additions or upgrades that are
necessary to physically and electrically interconnect the Small Generating Facility to the
Interconnection Provider's Distribution System. Interconnection Facilities are sole use
facilities and shall not include Distribution Upgrades or Network Upgrades.
Interconnection Provider – City of Dover Municipal Electric Department on behalf of the
City of Dover, Delaware.
Interconnection Request – The Interconnection Customer's request, in accordance with
Interconnection Provider’s procedures, to interconnect a new Small Generating Facility, or to
increase the capacity of, or make a Material Modification to the operating characteristics of,
an existing Small Generating Facility that is interconnected with the Interconnection
Provider’s Distribution System.
Material Modification – A modification that has a material impact on the cost or timing of
any Interconnection Request with a later queue priority date.
Network Upgrades – Additions, modifications, and upgrades to the Interconnection
Provider's Distribution System required at or beyond the point at which the Small Generating
Facility interconnects with the Interconnection Provider’s Distribution System to
accommodate the interconnection of the Small Generating Facility with the Interconnection
Provider’s Distribution System. Network Upgrades do not include Distribution Upgrades.
Operating Requirements – Any operating and technical requirements that may be
applicable due to Regional Transmission Organization, Independent System Operator,
control area, or the Interconnection Provider's requirements, including those set forth in the
Small Generator Interconnection Agreement.
Party or Parties – The Interconnection Provider, and/or Interconnection Customer.
Point of Interconnection – The point where the Interconnection Facilities connect with the
Interconnection Provider's Distribution System.
PJM means PJM Interconnection, LLC, or any successor organization thereto.
Reasonable Efforts – With respect to an action required to be attempted or taken by a Party
under the Small Generator Interconnection Agreement, efforts that are timely and consistent
with Good Utility Practice and are otherwise substantially equivalent to those a Party would
Glossary of Terms -2-
Page 62
use to protect its own interests.
Small Generating Facility – The Interconnection Customer's device for the production of
electricity identified in the Interconnection Request, but shall not include the Interconnection
Customer's Interconnection Facilities.
Tariff – The Interconnection Provider or Affected System's Tariff through which
Interconnection Service is offered, as amended or supplemented from time to time, or any
successor tariff.
Upgrades – The required additions and modifications to the Interconnection Provider's
Distribution System at or beyond the Point of Interconnection. Upgrades may be Network
Upgrades or Distribution Upgrades. Upgrades do not include Interconnection Facilities.
Glossary of Terms -3-
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Attachment 2
Description and Costs of the
Interconnection Facilities and Metering Equipment
Interconnection Customer’s Interconnection Facilities:
Description Section Reference in
Technical
Requirements
69 kV Interface Transformer G
Fiber Optic Interface K.2
Fiber Patch/Splice Panel K.2, K.3
Conduit for fiber optic cable and power and control circuits K.4
Metering Equipment (GE KV2 C+ or similar) L
RTU – Siemens Station Manager 2 in NEMA 2 enclosure M
Recording equipment N
69 kV Breaker and protective relays P
Interconnection Provider’s Interconnection Facilities:
Description Cost Estimate
None
Attachment 5 - Technical Requirements -4-
White Oak Solar Energy, LLC 10 MW
Page 64
Attachment 3
One-line Diagram Depicting the Small Generating Facility, Interconnection
Facilities, Metering Equipment, and Upgrades
Typical One-Line Diagram
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White Oak Solar Energy, LLC 10 MW
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Attachment 4
Milestones
In-Service Date: 12/31/2010
Critical milestones and responsibility as agreed to by the Parties:
Milestone Date Responsible Party
(1) Small Generating Facility Site Plan Approval by 4/30/2010 IC
Dover Planning Commission
(2) Financial Security Posting (pursuant to article 6.3 of 4/30/2010 IC
IA)
(3) Specifications for the IP’s Interconnection Facilities 5/31/2010 IP
and Distribution Upgrades major equipment to be
procured by IC
(4) Notice to Proceed issued to EPC Contractor for Small 6/30/2010 IC
Generating Facility
(5) Major equipment ordered for Distribution Upgrades 7/15/2010 IC
(6) Major equipment ordered by IC for IP Interconnection 10/15/2010 IC
Facilities and Distribution Upgrades delivered and turned
over to IP
(7) IP commences construction of IP’s Interconnection 10/20/2010 IP
Facilities and Distribution Upgrades
(8) Completion of IP’s Interconnection Facilities and 11/15/2010 IP
Distribution Upgrades
(9) Commissioning/Testing of Small Generating Facility 12/1/2010 IC
(10) Commercial Operations Date of Small Generating 12/31/2010 IC
Facility
IC = Interconnection Customer, IP = Interconnection Provider
Agreed to by:
For the Interconnection Provider: Date:
For the Interconnection Customer: Date:
Attachment 5 - Technical Requirements -6-
White Oak Solar Energy, LLC 10 MW
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Attachment 5
Technical Requirements for Interconnection of White Oak Solar Energy, LLC 10
MW Photovoltaic Plant to the City of Dover Electric Transmission System
A. General
1) This Technical Considerations Document describes the minimum design requirements and operating
procedures necessary for the safe and effective interconnection of parallel Customer owned generation.
The Generator Owner’s design must meet or exceed the requirements outlined in these Technical
Considerations and also meet any applicable Tariff requirements. Some aspects of the Generator owner’s
design and operation may also be required to meet PJM, MAAC and NERC requirements.
2) The Customer’s generation Facility must meet all applicable national, state and local construction,
safety and electrical codes. City approval to interconnect indicates only that the minimum requirements
for parallel operation outlined in this document have been satisfied. Such approval does not imply that the
generator Owner‘s Facility meets all federal, state and local standards and regulations.
3) All equipment, circuit breakers and other current interrupting devices at the Generator Owner’s Facility
must be capable of interrupting the maximum available fault current at the site including any contribution
from the Facility’s generator. Fault current contributions from the City of Dover Electric Transmission
System at the proposed point of interconnection are detailed under the heading “System Information at
Point of Interconnection”.
4) All equipment and insulation must be capable of continuous operation at the specified voltage ratings
at the Point of Interconnection. Voltage ratings for the City of Dover Electric Transmission System at the
proposed point of interconnection are detailed under the heading “System Information at Point of
Interconnection”.
5) The three-way switch will be the isolation point for both parties; however, the Generation Owner may
elect to install additional disconnect switches within the interconnection substation.
6) This agreement is only for the interconnection to the Transmission System, station service information
and requirements are addressed in the Electric Service Handbook.
7) The three-way motor operated disconnect switch and pole required to interconnect the Generation
Owner and City of Dover transmission line will be specified, purchased, installed and owned by the City of
Dover. All expenses related to this installation/modification shall be the financial responsibility of the
Generation Owner.
8) All expenses incurred by the City of Dover for staff, contractors, consultants and engineering services
related to the installation of the interconnection facility will be reimbursed to the City of Dover. For
example these expenses could be related to design, reviews, installation, and commissioning, to name a
few.
B. Definitions
Various terms as utilized in this document are defined below. Whenever used in the document with initial
capitalization, the following terms have the meanings specified in this Section.
City – The City of Dover, Delaware.
City of Dover Electric Transmission System – The electric transmission system belonging to the City of
Dover, Delaware, typically operating at a voltage of 69kV.
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Customer - Any adult person, partnership, association, corporation, or other entity: (i) in whose name a
service account is listed, (ii) who occupies or is the ratepayer for a premises, building, structure, etc., and
(iii) who is primarily responsible for payment of bills. Multiple premises or sites under the same name are
considered multiple Customers.
Interface Transformer - A transformer which interconnects a privately owned generation source with the
City of Dover Electric Transmission System.
Facility (or Facilities) (or Generator) – The Customer owned generating equipment and all associated or
ancillary equipment, including Interconnection Equipment, on the Customer’s side of the Point of
Interconnection.
Generator Owner – The owner of the Facility that is interconnected to the City.
Grid – The interconnected arrangement of lines, transformers and generators including, but not limited to,
those that make up the City of Dover Electric Transmission System.
Interconnection – The physical connection of Customer owned generation to the City of Dover Electric
Transmission System in accordance with these technical considerations so that parallel operation can
occur.
Interconnection Equipment - That equipment necessary to interconnect the Facility to the City of Dover
Electric Transmission System, including any and all relaying, interrupting, metering or communication
equipment needed to protect the Facility and the City of Dover Electric Transmission System and to
control and safely operate the Facility in parallel with the City of Dover Electric Transmission System.
Inverter – A static power converter with control, protection and filtering functions that converts Direct
Current (DC) input to Alternating Current (AC) output. Inverters connected to the City of Dover Electric
Transmission System must be of the non-islanding type.
Island – A portion of the City of Dover Electric Transmission System containing both load and Customer
owned generation that is electrically isolated from the remainder of the City of Dover Electric
Transmission System.
MAAC -Mid-Atlantic Area Council. One of ten Regional Reliability Councils which form the North
American Electric Reliability Council (NERC). MAAC is responsible for the mid-Atlantic region, including
all or parts of the states of Pennsylvania, New Jersey, Delaware, Maryland, Virginia and the District of
Columbia.
NERC -North American Electric Reliability Council. The purpose of NERC is to ensure the adequacy,
reliability and security of the bulk electric supply systems through coordinated operations and planning of
generation and transmission facilities.
Parallel Operation – Any electrical connection between the City of Dover Electric Transmission System
and the Generator Owner’s generation source.
PJM - PJM Interconnection, L.L.C. The Independent System Operator for the Pennsylvania, New Jersey
Maryland area of the Northeast U.S. whose members include electric utilities and independently owned
generating resources. The organization is responsible for dispatching generation, operating the bulk
transmission system within its service area and operating a buy/sell market for member’s generation.
Point of Interconnection – Also known as the Point of Common Coupling (or PCC). The point where the
electrical conductors of the City of Dover Electric Transmission System are connected to the Generator
Owner’s conductors and where any transfer of electric power between the Customer and the City of
Dover Electric Transmission System takes place.
RTU - Remote Terminal Unit. The remote unit of a supervisory control system used to telemeter operating
data, provide device status/alarms and to provide remote control of equipment at a substation or
generator site. The unit communicates with a master unit at the System Control Center.
Stabilized – The state of the City’s system following a disturbance which returns to the normal range of
voltage and frequency for approximately 5 seconds or longer as determined by the City. The City may
require a longer time period if necessary to ensure the safety and reliability of the City of Dover Electric
Transmission System.
System Control Center – The City office that monitors and has direct control over the operation of the City
of Dover Electric Transmission System.
System Emergency – An imminent or occurring condition on the City of Dover Electric Transmission
System, the PJM System, the system of a neighboring utility, or in the Facility, that is likely to impair
system reliability, quality of service, or result in significant disruption of service, or damage, to any of the
foregoing, or is likely to endanger life, property or the environment.
Transmission System – The City of Dover 69kv distribution circuit(s) and associated poles, conductors,
insulators, and related equipment.
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C. Background Information and Need for Protection
1) The City of Dover Electric Transmission System is subject to a variety of natural and man-made
hazards. Among these are lightning, wind, snow, animals, vehicular accidents, vandalism and human
error. These same hazards are present in residential and commercial electric systems but to a lesser
degree due to the smaller size and protected environment of these systems.
2) The electric problems that can result from the preceding hazards are principally short circuits,
grounded conductors and broken or open conductors. All of these problems require that the affected
equipment be de-energized as quickly as possible to minimize equipment damage, to protect Grid
security, to lessen the adverse impact on Customers and to remove any hazard to the public and City
personnel.
3) The Generator Owner has the responsibility to protect both his own Facility and the impact of his
Facility on the Grid.
D. Basic Protection Goals
The protection system at the Point of Interconnection should be designed and operated with the
following desired goals in mind:
1) Protect the City of Dover Electric Transmission System from the adverse impacts of the parallel
generator.
2) Protect the parallel generator from faults or other disturbances in the City of Dover Electric
Transmission System.
3) Disconnect the parallel generator from the City of Dover Electric Transmission System for
abnormal operating conditions.
4) Permit the desired range of power transfer without false operation.
E. Protection General Requirements
1) The generator and Point of Interconnection protection schemes shall be continuously monitored
and in a functional state. The generator shall immediately be disconnected from the City of Dover
Electric Transmission System for any condition that would make the protection scheme inoperable.
2) The operating power for the generator and Point of Interconnection protection schemes and the
control power used to disconnect the generator from the City of Dover Electric Transmission System
must not be directly dependent on City of Dover Electric Transmission System power.
3) The generator protection shall be designed to automatically and immediately disconnect the
generator from the City of Dover Electric Transmission System if the source circuit from the City is
lost, irrespective of connected loads or other generators on the circuit.
4) The generator shall be equipped with protective equipment (hardware or software) to prevent the
generator from energizing a de-energized City of Dover Electric Transmission circuit.
5) Parallel operation must cease immediately and automatically for abnormal operating voltage,
frequency, harmonic content or power flow. Parallel operation must also cease for loss of a phase or
improper phase sequence. Voltage sensing shall be performed on all three phases.
6) Protection at the Point of Interconnection must detect and isolate the Facility from the City of Dover
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Electric Transmission System for a fault condition in the Generation Owner’s Facility.
7) Protection at the Point of Interconnection must detect and isolate from the City of Dover Electric
Transmission System the Generation Owner’s Facility for a fault condition on the City of Dover
Electric Transmission System circuit that supplies the generator site.
8) The protection scheme should permit the desired range of power transfer without false operation.
The protection scheme should also prevent excessive or unnecessary tripping that would adversely
affect the City’s service reliability to other Customers or Generator Owners.
9) The generator protection or protection at the Point of Interconnection must insure that the
generator is disconnected from the City of Dover Electric Transmission System before any automatic
re-energizing of the City of Dover Electric Transmission System supply circuit.
10) The protection at the Facility must recognize and disconnect the Generator from the City of Dover
Electric Transmission System if the generator is islanded with other Customer load.
11) Any automatic re-connection of the generator to the Grid following a loss and subsequent
restoration of the City of Dover Electric Transmission System source must occur only after the City of
Dover Electric Transmission System has stabilized.
Note: This preceding list of design requirements is not intended to be all-inclusive. Other hazards and
conditions may need to be taken into consideration by the design engineer based upon the
circumstances, the specific site, the Generation Owner’s needs and other appropriate criteria.
F. Grid Interconnection Point Information
1) The proposed 10MW Solar Photovoltaic Generation Facility is to be located in the northern portion
of the Garrison Tract located on the north side of White Oak Road and east of US Highway 1, in the
City of Dover, Kent County, Delaware. This places the proposed 69 kV tap (new 3-way switch and
pole) on the Cartanza – Dover Downs 69kV Line approximately halfway between Cartanza
Substation and Dover Downs Substation. This Cartanza-Dover Downs line is also referred to as line
9080. From the new 69 kV tap, approximately ½ mile of aboveground 69 kV line will be built to the
Facility’s substation. The actual physical Point of Interconnection is defined as the 69 kV line
conductor tail (the portion of the conductor that extends through the dead-end shoe), excluding the
connector, located on the Facility installed dead-end structure at the interconnection substation. .
The Facility will own the connection, and hardware connecting the Facility to the conductor tail. Some
details on the City of Dover Electric Transmission System are noted below to assist the Generator
Owner in the design of their Facility.
The City of Dover Electric Transmission System consists of multiple 69kV circuits, substations, local
generation, and a 230kV interconnection to Delmarva Power and Light. The System is solidly
grounded wye at the larger generators and at the 230kV interconnection.
System Information at Point of Interconnection:
Type 3 Phase, 60 Hz AC, Solidly grounded wye
Nominal Operating Voltage 69,000 Volts Phase-Phase
Maximum Operating Voltage 72,500 Volts Phase-Phase
Basic Impulse Level 350kV
Surge Arrester Rating 42kV MCOV
Max Available Fault Current 15,241 Amps 3 Phase (with no Solar Farm contribution)
9,880 Amps Phase-Gnd (with no Solar Farm contribution)
2) Most distribution and transmission lines have automatic line restoration following a line trip. The
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majority of faults (short circuits) are temporary in nature such as a flashed insulator or a tree limb that
brushed against a line. Once the fault has been detected and the affected circuit de-energized, the
circuit can normally be successfully re-energized. This re-energization or automatic reclose could
occur after the line has been dead for 0.20 second, up to a minute or more. The net result of
automatic line restoration is to restore the integrity of the Grid and to reduce any Customer outage
time. The Generator Owner will have to take into account the impact of automatic circuit restoration in
the design and operation of their Facility.
3) The Generator Owner may request the City to delay any high speed reclosing on the City of Dover
Electric Transmission System supply circuit to allow the Parallel Operation generator sufficient time to
remove itself from an islanded or de-energized circuit prior to automatic reclose. Since delaying the
automatic reclose time degrades the level of service to other Customers on the circuit, the City may
limit any delay of the automatic reclose to a few seconds or less. Alternatively, the Generator Owner
may request that a direct transfer trip scheme be added to remove the interconnected generator from
service prior to automatic reclosing by using communication equipment between the Generator
Owner’s site and the City. Similarly, the Generator Owner may request that a synchronizing check or
reclose-blocking scheme be installed on the City’s source circuit to prevent out of phase reclosing.
The Generator owner is responsible for all costs associated with the installation and maintenance of
these requested modifications.
G. Interface Transformer
1) In most cases, an Interface Transformer will be required to interconnect the Generator Owner’s
Facility to the City of Dover Electric Transmission System voltage. In addition to matching the proper
voltage level, this Interface Transformer will decrease possible voltage variations seen by other City
Customers, attenuate any possible harmonics and reduces the effects of fault currents.
2) The proposed 10MW Solar Photovoltaic Generation Facility Interface Transformer should be
configured for nominal 69kV operation with a de-energized tap changer ranging from -5% to +5% of
nominal in 2.5% steps. The transformer should be connected in Delta on the 69kV winding. A
special zero-sequence/over/under voltage detection scheme will be required for this configuration
(see details under heading “Protection Scheme Details”). The Transformer must be sized to support
maximum anticipated power transfers to and from the City of Dover Electric Transmission System.
H. Power Quality Considerations
1) The Generator Owner’s Facility shall be designed and operated in such a manner that there are no
noticeable adverse impacts to system voltage, frequency, harmonics etc.
2) The parallel generator shall not cause excessive voltage flicker on the City of Dover Electric
Transmission System. (Voltage flicker is defined as variations in system voltage magnitude and
duration sufficient to allow visual observation of a change in electric light source intensity.) Any flicker
shall not exceed the “Borderline of Irritation” Curve, Fig. 10.3, as defined in IEEE Std. 519-1992,
Recommended Practices and Requirements for Harmonic Control in Electric Power Systems. The
City reserves the right to require tighter flicker control in situations where other Customer’s equipment
or operations (computers, instrumentation, process controls, etc.) are impacted.
3) The parallel generator could introduce harmonics distortion into the City of Dover Electric
Transmission System if equipment such as DC to AC inverters are used in the Facility. (Harmonic
distortion is defined as continuous distortion of the normal 60 Hz. sine wave typically caused by
nonlinear loads or by inverters, measured in total harmonic distortion, THD.) Any voltage harmonic
distortion shall not exceed the limitation as defined in IEEE Std. 519-1992, Recommended Practices
and Requirements for Harmonic Control in Electric Power Systems, Table 11.1. The limits vary
dependent on the voltage. In addition, the level of harmonic current that the Generator Owner shall
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inject into the City of Dover Electric Transmission System should not exceed the level specified in
Table 10.3 in IEEE Std. 519-1992.
4) Any DC to AC inverter should not inject DC current greater that 0.5% of the rated inverter capacity
into the Point of Interconnection during both normal and abnormal operation.
I. Power Factor Considerations
1) A parallel generator shall not adversely impact the power factor of the City of Dover Electric
Transmission System at or near the Point of Interconnection. The generator type impacts the power
factor. The inverters of most DC generators are designed to operate close to unity power factor.
Induction generators absorb VARs from the City of Dover Electric Transmission System.
Synchronous generators can either absorb or produce VARs thus having a varying power factor
depending upon excitation control.
2) The City of Dover Electric Transmission System requires that the power factor of the Facility at the
point of Interconnection be maintained in the range of 98.5% lagging to 98.5% leading.
J. Inverter Considerations
1) The Generator Owner must use a non-islanding type inverter as defined in IEEE 929 2000, IEEE
Recommended Practices for Utility Interface of Photovoltaic (PV) Systems.
2) Non-islanding type inverters are inherently designed to automatically disconnect from the Grid if
the Generator Owner’s site becomes isolated from the City of Dover Electric Transmission System.
This type inverter also prevents the Generator owner from inadvertently supplying other City
Customers in an isolated Island situation.
3) The inverter output specifications must meet the power quality considerations detailed under
heading “Power Quality Considerations”.
K. Communication Facilities Considerations
1) The City will provide and install optical fiber for data communication purposes. The city will install
a 48 fiber count ADSS splice case near the location of the existing fiber. The City will install a 24
strand ADSS fiber optic cable from this splice case to a 24 strand patch panel with ST connections
provided by Generation owner at the substation. The Generation Owner will incorporate this
communication system during design and construction. Additional fiber will be required at the
Dover Downs substation. The city will install a 48 ADSS fiber strand cable from DuPont Hwy to the
Dover Downs substation. The existing 24 strand patch panel will be replaced with a 48 strand patch
panel to incorporate the pilot wire relaying. All cost of this installation incurred by the City will be
paid by Generation Owner.
a. No voice circuits will be provided and this data communication will be limited to City of
Dover facilities only. No interconnection with other voice/data sources will be allowed.
2) The Facility shall provide the following equipment:
Fiber Optic Interface RFL IMUX 2000 Mini-DACS, Model 2000CCM with 1300NM single
mode fiber optic interface
Fiber Patch/Splice Panel Corning Cable Systems – Qty 1 Closet connector
housing Part # CCH-02U; Qty 4 Closet connector
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housing panels Part # CCH-CP06-19T; Qty 4
Buffer tube fan-out kits Part # FAN-BT25-06; Qty 2
Buffer tube fan-out kits Part # FAN-BT25-12
Qty 26 Anaerobic-Cure connectors Part # 95-201-52-SP
3) RFL IMUX 2000, fiber patch and splice panel and accessories and commissioning services after
final installation is complete, must be purchased from:
RFL Electronics Inc.
353 Powerville Road
Boonton Twp., NJ 07005-9151
IMUX 2000, Fiber Patch and Splice Panel and accessories:
Attention: Mike Reinhold
Email: Mike.Reinhold@rflelect.com
Phone: (973) 334-3100 Ext. 239 – Fax: (973) 334-3863
Reference: IMUX 2000 New Node
Quotation No: CQ-51457-A
Commissioning Services:
Attention: Marko Stieber
Email: Marko.Stieber@rflelect.com
Phone: (973) 334-3100 Ext. 211 – Fax: (973) 334-3863
Reference: RFL IMUX 2000/ILS Commissioning Adding a new
ILS/MUX Node
Quotation No: CQ-52458
4) The following items will be supplied by the facility:
a) Conduit from interconnection substation to riser pole for the fiber optic cable;
b) Conduits for the power and control circuits for the 3-way motor operated disconnect
switches including materials and installation of the appropriate controls, cabling and
circuits; and
c) Exact number and sizing to be determined during design.
L. Interval (Revenue) Metering Considerations
1) All paralleled generator Facilities shall be metered in accordance with applicable tariffs and
specifications provided in approved City publications or other contractual documents related to this
project as appropriate. As a minimum, the following interval data is required:
a) MWhr and MVARhr Input/Output at the Point of Interconnection
2) The Facility shall provide, at a minimum, the following metering equipment:
a) The City of Dover would prefer that a GE KV2 C+ be installed in this application.
b) The Facility shall provide the RS-232 connection from the meter to the RFL IMUX.
3) Interval Data requires the Generator Owner to supply communication facilities which allows the
City to retrieve the interval data remotely. Specific requirements will be determined on a case-by-case
basis.
4) All metering equipment will be owned and maintained by the Generation Owner.
5) Unless otherwise mutually agreed upon by the City and the Generator Owner, the Generation
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Owner shall have ownership of the equipment and supply all inspection, reading, maintenance and
testing of all metering equipment for the Generator Owner’s Facility, at the Generator Owner's cost.
The Generator Owner shall install the metering PTs (potential transformers) and CTs (current
transformers) on the 69kv side of the transformer.
6) Revenue metering combined current transformer (CT) and potential transformer (PT) units shall
have the following minimum specifications; however, the final design and potential light load of the
Generator Owner’s equipment during non-generation hours may require modification to this
specification:
Type Metering CT
Ratio 100/5
Accuracy Class 0.3 B1.8
Type Inductive PT
Ratio 40,250 – 115/67.08 Volts
Accuracy/Burden 0.3 O,W,X,M,Y,Z,ZZ
7) The City shall require interval metering of the generator output to the extent reasonably necessary
to provide the City with the data needed to administer its tariffs and to operate and plan the City of
Dover Electric Transmission System.
8) The Point of Interconnection interval metering shall be bi-directional so that power deliveries to and
from the Generator Owner’s site can be separately recorded. The Point of Interconnection metering
shall not be equipped with detents.
9) The Generator Owner may, at its sole option and cost, install or request to have the City install
additional metering equipment to meet any special needs that the Generator Owner may have.
M. Monitoring and Control Considerations
1) The Generator Owner shall purchase and install a Remote Terminal Unit (RTU) per the
specifications below to enable the City to monitor the status of the data points listed in below at the
Generator Owner’s site and to control certain breakers, if required. This RTU shall utilize DNP 3.0
protocol, or other such protocol compatible with the existing Supervisory Control System at the City.
Siemens 5700 Station Manager 2 mounted in NEMA 2 enclosure
RTU must be purchased from:
Siemens Energy Management and Automation
7000 Siemens Road
Wendell, NC 27591
Attention: Kelly Roberson
Email: kelly.roberson@siemens.com
Phone: (877) 217-4943 – Fax: (877) 217-4945
Reference: TG5700 RTU
Quotation No:?
Seller to contact above for further details on the RTU.
2) The following SCADA points shall be provided to the City:
Indication:
1: 69kV GCB Loss of DC Control Power
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2: 69kV GCB Breaker Status
3: 69kV GCB Discharged Spring Alarm
4: 69kV GCB Low SF6 Pressure
5: 69kV GCB Breaker In Local
6: 69kV GCB Breaker Lockout
7: 69kV Relays Common Alarm
8: Transformer information as appropriate and agreed upon by both parties
Control:
1. Breaker Control (trip & close) – 69kV Breaker
2. Individual control for MOD switches located on 3-way switch pole.
Analog:
1. 69kV Instantaneous MW
2. 69kV Instantaneous MVAR
3. 69kV MW-hrs
4. 69kV MVAR-hrs
5. 69kV A ph Amps
6. 69kV B ph Amps
7. 69kV C ph Amps
8. 69kV A ph Volts
9. 69kV B ph Volts
10. 69kV C ph Volts
RS-485:
1. All 69kV Relays
2. All 69kV Power Meters
3) City personnel shall be responsible for programming the RTU and Master Station. All costs will be
borne by the Generation Owner.
N. Event Recording Considerations
1) The Generator Owner shall purchase and install recording equipment to monitor the performance
of their protection and control equipment for those parallel generator sites interconnected with the
City of Dover Electric Transmission System.
2) The City reserves the right to specify the voltages, currents, device status, etc. to be monitored and
recorded by this event recording equipment. At a minimum, these are:
1. 69kV Amps
2. 69kV Volts
3. 69kV Breaker and Alarm Statuses
3) Event information may be recorded by features internal to microprocessor type protective relays,
by separate digital fault/event recorders or by a combination of these two methods.
4) The City shall have remote access to any recorded information for use in analyzing the
performance of the overall Electric System.
5) The Generator Owner will supply communication facilities for the event recording equipment for
remote access of the data and this data shall be sent to a SEL 2030. SEL 2030 shall be provided by
Generation owner, connected to the IMUX, and required inputs will be determined by the City during
design.
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6) Digital fault recording equipment should be time synchronized to a reference traceable to the
National Institute of Standards and Technology.
O. Performance Considerations
1) The interconnection of parallel generation with the City of Dover Electric Transmission System is
permissible only if the system voltage, frequency and current flow at the Point of Interconnection are
within normal limits. Parallel operation must cease immediately and automatically for abnormal
voltage, frequency, or current flow as defined below.
2) Parallel operation must also cease automatically for operation outside the power quality limitations
detailed in Technical Design Considerations, Section VIII - G.
3) The Generator Owner’s equipment shall be operated in such a manner that the voltage levels on
the City’s Grid remain within the operating limits defined by ANSI C84.1.
4) The generator must immediately and automatically cease parallel operation and disconnect from
the City of Dover Electric Transmission System if the voltage at the Point of Interconnection exceeds
the limits defined below:
DC Generating Systems with Non-Islanding Inverters
a) Trip in 0.1 Second for V < 50%
b) Trip within 0.1 to 30 Seconds for 50% = V < 88%
c) Trip within 0.1 to 30 Seconds for 106% < V < 137%
d) Trip in 0.03 Second for 137% = V (Specific voltage and time delay set points will be
determined for each generator installation)
Notes:
a) Trip time refers to the time between when the abnormal voltage condition occurs and the
generator being disconnected from the City of Dover Electric Transmission System.
b) Three-phase voltage sensing shall be used.
5) The Generator may reconnect automatically to the Grid after a 60 seconds has elapsed if both the
system voltage has returned to normal range and the Grid is stabilized..
6) The generator must immediately and automatically cease parallel operation and disconnect from
the City of Dover Electric Transmission System if the operating frequency exceeds the limits defined
below:
DC Generating Systems with Non-Islanding Inverters
a) Trip in 0.1 Second for F < 59.3 Hz.
b) Trip in 0.1 Second for F > 60.5 Hz. (Set points taken from IEEE Std. 929.)
8) The inverters of DC generating systems shall obtain their commutation reference from the City of
Dover Electric Transmission System and thus synchronization will not be an issue.
9) The generator must automatically and immediately disconnect from the City of Dover Electric
Transmission System if the source from the Grid is lost. This separation must occur irrespective of
connected load or other generators on the circuit.
10) The generator must be disconnected from the City of Dover Electric Transmission System before
any automatic reclose or re-energization of the City source.
11) For a fault condition on the City source circuit that interconnects with the Generator Owner’s
Facility, the Generator Owner must have protective relaying to detect this condition and disconnect
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the generator from the Grid. The required operating time of the protection scheme is dependent on
many variables such as voltage class, generator stability concerns, primary vs. backup relaying,
coordination requirements with City relaying scheme, etc. The City will work with the Generator
Owner and ascertain the performance requirements on a case by case basis.
12) In cases where clearing time from the Generator Site is critical, transfer trip from the City end of
the circuit to the Generator Owner’s site may be required.
13) For a fault condition within the Generator Owner’s Facility, the Generator Owner must have
protective relaying to detect and isolate the fault from the City of Dover Electric Transmission System.
The required clearing time of the Facility’s protection schemes is dependent on many variables such
as voltage class and the operating time of any City protection schemes that reach into the Facility.
The City will review the proposed operating time of the Facility’s protection schemes and ascertain
the performance requirements on a case by case basis.
P. Protection Scheme Details
1) Protective relays shall be microprocessor type with integral trip record and fault recording, self-
checking and remote communications. Remote communications should be provided through a digital
switching device to allow a single communication line to service multiple protective 69kv relays.
2) All protective relays must have the desired sensitivity and speed for its intended application and be
of utility grade. The City can provide feedback to the Generator Owner in this regard.
3) All equipment, lines and busses operating at 69kV shall be protected by two independent
protective schemes.
4) Primary and backup protection schemes shall be supplied via independent current/potential circuits
and independently protected DC control circuits. Potential circuits will be considered independent if
they emanate from different windings from the same potential transformer.
5) DC circuits supplying protective relaying schemes shall be continuously monitored and fused
separately from any other DC control circuits. Loss of any control power bus including DC trip and
close busses of each breaker shall also be monitored and alarmed to a manned location so that
corrective action can be taken. Relay failure alarms shall be handled in a similar manner. See section
M. Monitoring and Control Considerations for duplicate alarms that are required by Dover.
6) All protective relay systems, equipment, design, operation and maintenance shall be in accordance
with all applicable Federal, State and Local requirements, National and Regional Reliability Criteria
and Industry Recognized Standards and Guidelines.
7) Primary 69kV line protection shall be provided by a SEL-311L line differential relay. This will
communicate via optical fiber to both remote line end relays (at Carranza and Dover Downs) to form a
3-terminal line differential scheme. On-board transfer trip capabilities will be used to enable tripping
of the local 69kV and intermediate voltage breakers (e.g. 12 or 34.5 kV, based on the final Facility
design) breakers despite the weak infeed inherent with an inverter source.
8) Additional weak infeed protection shall be provided by a logical “and” condition when both remote
line end breakers are open. “b” contact status from both of these breakers will be provided via the
communications capabilities onboard the SEL-311L scheme to trip the local 69kV and intermediate
voltage breakers when both line ends are open. This will help protect against an islanding condition
and force synchronization back to the plant.
9) Local 69kV breaker and intermediate voltage breaker shall use auxiliary contacts such that the
intermediated voltage breaker will trip and be inhibited from closing whenever the 69kV breaker is
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open.
10) Backup line protection shall be provided by a SEL-351 relay. Logic inside the relay will be
configured to provide undervoltage protection, overvoltage protection, and zero-sequence voltage
protection.
11) Transformer protection shall be provided by a transformer differential relay and a separate
overcurrent relay. SEL-587 and SEL-551 relays are recommended. Fault pressure relay protection
should also be provided.
12) Local 69kV breaker closing shall be supervised by a Hot Line Dead Bus (Dead Customer)
scheme.
13) Bushing Current transformers (CTs) used for protective relaying on the 69kV side should have the
following minimum specifications:
Type Multi-ratio bushing CT
Ratio 1200/5
Accuracy Class C800
14) Potential Transformers (PTs) used for protective relaying on the 69kV side should have the
following minimum specifications:
Type CCVT dual winding
Ratio 40,250 – 115/67.08 Volts
Accuracy/Burden 0.6 MWXYZ 200 VA
15) 69kV Breaker Minimum Specifications are below. A Siemens type SP2 is recommended to
maintain consistency with the City of Dover Electric Transmission System.
Rated Maximum Voltage 72.5 kV
Rated Continuous Current 1200 A
Frequency 60 HZ
Rated Short Circuit Current 40 kA
Full Wave Impulse Withstand 350 kV
Rated Interrupting Time 3.0 cycles
16) Line Protection relay settings will be provided by the City of Dover prior to commissioning.
Transformer and bus relay/differential settings will be the responsibility of the Generation Owner;
however, the City of Dover will be provided the settings and they may review these settings to
evaluate any potential impact on the transmission system.
Q. Maintenance requirements
1) Proper maintenance of electrical equipment is important to ensure a safe and reliable electrical
system.
2) Electrical equipment in the Interconnect substation should be maintained, at a minimum, per the
requirements in the latest edition of ANSI/NETA MTS-XXXX, including appendix B “frequency of
Maintenance Tests”. The current edition is ANSI/NETA MTS-2007. Generation owner will provide
the City of Dover a detailed 5-year maintenance schedule prior to facility commissioning and will
update annually.
3) Revenue Metering Maintenance – will be performed by the Generation Owner.
R. City of Dover Approvals
1) All designs and components of the 69kv system shall be approved by the City of Dover prior
to purchase/installation.
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2) The City of Dover shall approve all third-party testing company(ies) prior to the
commencement of work on any component/system related to the 69kv equipment. Such
approval shall not be unreasonably withheld.
3) Commissioning tests will require an outage on the interconnection line segment; Dover
reserves the right to mandate the days and times that this can be scheduled.
4) The Facility will develop a comprehensive commissioning test plan/procedure (plan) and
submit this to the City of Dover for approval at a minimum of 30 days prior to the work. Dover
will review and approve/disapprove this plan for any component/system that could directly
impact the 69kv system, such approval shall not be unreasonably withheld. The Facility will
be responsible for modifications to the plan until Dover accepts the plan. This shall be
completed prior to commissioning.
5) During Dover’s design review other considerations/concerns may require additional
components; Generator Owner will modify the Facility to incorporate these changes.
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S. Typical One-Line Diagram
Page 80
T. References
The references and standards listed below can provide technical requirements, support and
insight into the safe, reliable interconnection of parallel generation with the City of Dover
Electric Transmission system. It is suggested that those individuals and firms contemplating
operation of parallel generation with the City review these references for applicability to their
installation. This listing is not intended to be all-inclusive.
• IEEE C2, National Electric Safety Code® (NESC®)
• NFPA 70, National Electric Code® (NEC®)
• IEEE Std. 493-1997, IEEE Recommended Practice for Design of Reliable Industrial and
Commercial Power Systems (IEEE Gold Book)
• IEEE Std. 519-1992, IEEE Recommended Practice and Requirements for Harmonic
Control in Electric Power Systems
• IEEE Std. 242-1986, IEEE Recommended Practice for Protection and Coordination of
Industrial and Commercial Power Systems (IEEE Buff Book)
• ANSI Std. C84.1-1995, Electric Power Systems and Equipment – Voltage Ratings
• IEEE Std. 1159-1995, IEEE Recommended Practice for Monitoring Power Quality
• IEEE Std. 929-2000, IEEE Recommended Practice for Utility Interface of Photovoltaic
(PV) Systems
• ANSI/IEEE Std. C37.1-1994, Standard Definitions, Specifications and Analysis of Systems
Used for Supervisory Control, Data Acquisition and Automatic Control
• IEEE Std. C37.2-1991, IEEE Standard Electric Power System Device Function Numbers
• IEEE Std. C37.90-1989, Standard for Relays and Relay Systems Associated with Electric
Power Apparatus
• IEEE Std. C37.90.1-1989, Standard Surge Withstand Capability (SWC) Tests for Protective
Relays and Relay Systems
• IEEE Std. C37.91-1985 (Reaff 1990), Guide for Protective Relay Application to Power
Transformers
• IEEE Std. C37.93-1987, IEEE Guide for Power System Protective Relay Applications of
Audio Tones over Telephone Channels
• IEEE Std. C37.95-1989, IEEE Guide for Protective Relaying of Utility Consumer
Interconnections
• IEEE Std. C37.97-1979 (Reaff 1990), Guide to Protective Relay Applications to Power
System Buses
• IEEE Std. C37.101-1985, (Reaff 1990) Guide for Generator Ground Protection
• IEEE C37.102-1987, (Reaff 1990) Guide for AC Generator Protection
• IEEE C37.103-1990, Guide for Differential and Polarizing Relay Circuit Testing
• IEEE C37.106-1987, Guide for Abnormal Frequency Protection of Power Generating
Plants
• IEEE Std. C37.110-1996, Guide for the Application of Current Transformers Used for
Protective Relaying Purposes
• IEEE Std. C37.113-1999, Guide for Protective Relaying Applications to Transmission
Lines
• IEEE Std. C57.13.1-1981 (Reaff 1986) Guide to Field Testing of Relaying Current
Transformers
• IEEE Std. C57.13.2-1986 Standard Conformance Test Procedures for Instrument
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Transformers
• IEEE Std. C57.13.3-1983 (Reaff 1990) Guide for the Grounding of Instrument Transformer
Secondary Circuits and Cases
• IEEE Std. 100-1996, IEEE Standard Dictionary of Electrical and Electronics Terms
• IEEE Std. 141-1993, Recommended Practice for Electric Power Distribution for Industrial
Plants (IEEE Red Book)
• IEEE Std. 1001-1988, Guide for Interfacing Dispersed Storage and Generation Facilities
with Electric Utility Systems
• IEEE Std. 1021-1988, IEEE Recommended Practices for Utility Interconnection of Small
Wind Energy Conversion Systems
• IEEE Std. P1547 Draft, Standard for Distributed Resources Interconnected with Electric
Power Systems
• PJM Protective Relaying Philosophy and Design Standards
• PJM Relay Testing and Maintenance Practices
• PJM Transmission Substation and Line Design, Application and Maintenance Guidelines
• MAAC Protective Relaying Philosophy and Design Standards
• NERC Planning Standards
Page 82
Attachment 6
Interconnection Provider's Description of its Upgrades
and Best Estimate of Upgrade Costs
Distribution Upgrades:
Description Responsible Party for Cost Estimate
Design & Construction
69 kV line tap (3 way switch, steel pole, Interconnection $365,000
conductor, etc) Provider1
Approx. ½ mile of aboveground 69 kV Interconnection n/a
line from the 69 kV tap to A-frame Customer to build and
structure transfer ownership to
Interconnection Provider
Optical fiber installation at Dover Interconnection Provider $24,700
Downs
Optical fiber installation at Garrison Interconnection Provider $54,450
Tract
1
Interconnection Customer to procure major equipment based on Interconnection Provider’s design and
equipment specifications.
Network Upgrades:
None
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Attachment 7
Rate for Use of Interconnection Provider Distribution System
[Dover to insert rate or reference to a tariff here if applicable]
Page 84
ATTACHMENT #4
Utiility Committee Meeting of 1/25/2010
69 KV DELIVERY SERVICE CLASSIFICATION TO THE GRID
FOR WHITE OAK SOLAR ENERGY, LLC
AVAILABILITY
This tariff is available to the solar electric generating station owned by White Oak Solar Energy, LLC (“White
Oak”) to transmit up to 10 MW AC of associated energy from the Point of Interconnection as defined by the
Technical Requirements Exhibit to the Interconnection Agreement between White Oak Solar Energy, LLC and
the City of Dover (“City”)(“White Oak/Dover Interconnection Point”) to the point of interconnection that the City
maintains with Delmarva Power & Light (“DP&L”) pursuant to the Interconnection Agreement between DP&L
and the City of Dover, Delaware dated September 12, 2004 (“Dover/DP&L Interconnection Point”). The City
affirms and White Oak confirms that nothing in this tariff authorizes White Oak to make retail sales in the City’s
service territory. The service provided under the tariff shall be electrically isolated from any other electric
service, including retail supply provided to White Oak by the City under a different tariff. This tariff is available
to provide access to the City’s networked system only for delivery of up to 10 MW AC to the Dover/DP&L
Interconnection Point and is not available for service on other City non-networked facilities.
This tariff shall apply to White Oak when service under this tariff is requested by White Oak. To request
service, White Oak shall provide written notice to Dover no less than thirty (30) days prior to the date when it
requires service. The reservation term shall be one year, subject to renewal annually by giving written notice to
Dover no less than thirty (30) days prior to the expiration of the term.
CHARACTER OF SERVICE
The City is providing firm service on its networked system only under this tariff, which is normally operated as a
three phase, sixty cycle, alternating current system at a nominal voltage of sixty-nine thousand (69,000) volts,
line to line.
The parties expressly agree that the City shall have no responsibility to White Oak for securing any necessary
interconnection or other agreement(s) for the use of facilities beyond the City’s networked system, i.e., DP&L or
the PJM Interconnection, LLC.
The City shall own, operate, maintain and repair its system in accordance with Prudent Utility Practices. White
Oak shall operate its electric generating facilities and interconnection facilities in accordance with Prudent
Utility Practices. White Oak shall use the City’s networked system in accordance with Prudent Utility Practices.
The City shall have no obligation to expand the capacity of its system to accommodate this transaction or to
provide any new interconnection facilities of any kind, provided, however, that changes to the system or
interconnection requested and fully paid for by White Oak may be made by the City, subject to design, safety,
and system security considerations.
REACTIVE POWER AND VOLTAGE CONTROL
White Oak shall provide sufficient reactive capability and voltage control facilities to meet its reactive power
requirements and adequately maintain voltage levels and stability. White Oak shall provide sufficient facilities
to maintain a unity (1.0 per unit) power factor at the White Oak/Dover Interconnection Point, based upon
projected peak reactive demand measured at the Metering Point and subject to the criteria in the following
paragraph.
White Oak shall operate so as to maintain a power factor at the Metering Point that is comparable to the
average power factor that Dover maintains in its service area, but in no case shall the White Oak monthly peak
one-hour interval power factor fall below 98.5%. If White Oak fails to meet this power factor requirement,
Dover may install, at White Oak’s cost, capacitors or other equipment to maintain a unity power factor at the
White Oak/Dover Interconnection Point.
RATES
The rate for services hereunder shall be $0.23 per kW-month of service requested for up to 10,000 kW per
month, plus charges imposed for reactive power and voltage regulation as provided above, plus Line Losses,
commencing when service under this tariff is requested by White Oak. The monthly rate shall be set for a
one year period starting with the first day of the month for which this service is requested. The first and
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last month’s service shall be prorated on a daily basis whereby White Oak shall pay only for those
contiguous days for which the service is requested.
If White Oak exceeds the kW reservation of service requested in the notice, the rate for service shall be
$1.00 per kW-month for the month in which the reservation was exceeded.
LOSSES
Line Losses. White Oak shall bear responsibility for line losses from the White Oak/Dover Interconnection
Point to the Dover/DP&L Interconnection Point at the rate of 1%. Losses shall be taken by adjusting the
quantities at the White Oak/Dover Interconnection Point (Metering Point quantities net of Interconnection
Facilities Losses) and multiplying the kW and kWh quantities for purposes of reporting White Oak Generating
Station quantities to the PJM Interconnection, LLC and DP&L.
All revenue metering equipment, including the revenue meter, the metering CTs and VTs are owned by White
Oak. These quantities are compensated by the meter to incorporate the Line Losses that are a part of this tariff
such that the Solar Unit output quantities reported to DP&L and PJM at the DP&L/Dover Interconnection Point
are net of losses. White Oak shall provide pulse outputs for metering and adequate space for meters and/or
communications facilities to report on Solar Unit operations.
PURCHASE POWER ADJUSTMENT
This tariff shall not be subject to the Purchase Power Adjustment.
PUBLIC UTILITY TAX
In addition to the charges for this service classification, a surcharge will apply to recover any tax imposed by
governmental authority upon provision of transmission services for electricity.
RATE CHANGES
The rates stated may be adjusted from time to time by Dover to reflect changes in the cost of service provided
under this tariff.
RULES AND REGULATIONS/MUNICIPAL ORDINANCES
The General Rules and Regulations of the City of Dover for electric service which are published in the Dover
Electric Service Handbook shall apply to service rendered under this service classification.
OPERATING CONDITIONS
Service provided under this tariff requires the following additional conditions.
1. White Oak shall communicate and coordinate with the City system dispatch office at all times and
especially when the Solar Unit is dispatched, synchronized, operated, and released.
2. The City has an RTU for its SCADA system installed at the Solar Unit to receive real time generating
station net MW output information (analog transducer) at its dispatch center. This quantity is one of
the values used to produce a real time value for City of Dover net system load. Any changes in the
current SCADA system reporting methods or equipment required by DP&L, PJM, the City, or White
Oak, must be compatible with existing or new City of Dover SCADA requirements, DP&L, and PJM
requirements. The cost of such changes shall be paid by White Oak.
3. White Oak shall cooperate when emergency procedures are implemented by the PJM Interconnection,
LLC, or when required under the DP&L/Dover Interconnection Agreement.
4. Subject to the Interconnection Agreement between White Oak and Dover, the City shall have the right
to direct White Oak to reduce or increase the output of the Solar Unit, including the temporary
shutdown or start-up of the Solar Unit, as necessary for system emergencies and to preserve the
City’s system security and reliability, or for the City to perform maintenance, facilities construction or
system expansion, or any modification that requires facility outages. The City shall provide White Oak
reasonable notice of any such directive.