The electrical distribution system shall be owned by the city and the city council shall appoint a superintendent who shall have general supervision of the electrical distribution system.

(Code 1975, 21-201)

That hereafter electrical service shall be made available only after the applicant consumer has made written application to the city clerk, who in turn shall notify the electrical power and light superintendent and has entered into a written contract. All electric accounts and applications for service shall be in the name of the owner of the premises or in the name of the actual resident of the building and the consumer of the electricity, and both the owner and the consumer shall be liable at all times for the electricity used in connection with the premises. The city is authorized to refuse service to any applicant other than the above named and if the city finds that the application is false or that a party other than those above named is actually using the electricity, the service may be disconnected.

(Code 1975, 21-202; Ord. 425, Sec. 3)

Each applicant for electric service shall specify the location of the property to be provided with electrical power; and agrees to abide by the rules and regulations now in force or hereafter to be enforced regulating the operation of the electrical distribution system and to pay rates as are now or are hereinafter to be fixed by the city until service is discontinued on request of the customer in writing or for other reasons by the city.

(Code 1975, 21-203)

There shall be a separate service connection for each detached residence or place of business. Each applicant for electric service to be provided by the city shall pay meter installation charges as follows:

Meters for residential service -  $20.00.

Meters for commercial service -  $40.00.

Meter installation charges for electricity shall be paid prior to installation.

The term applicant for electric service, shall not include an application by the owner of rental properties for transfer of the meter from tenant to owner upon termination of a tenancy, providing the premises continues to be used as a rental property and is not used by the owner as his or her residence or place of business.

(Code 1975, 21-204; Ord. 408, Secs. 2:4)

Hotels, rooming houses, apartments, cottages, camps and duplexes may be serviced to one meter provided that they are under one ownership or one lessee and all electrical power being used on one location. Two or more houses will not be permitted to be serviced to a single service under separate ownership.

(Code 1975, 21-205)

All service connections shall be made by or under the direction of city employees only. Service will be run to nearest point of attachment which is safe and prudent. Should any additional service be required special contract agreements covering costs and minimum charges shall be negotiated. Any person that disconnects electrical with the city and transfers its service to a new location within the city’s electrical service area, shall be entitled to meter installation for electrical service without paying a new service charge provided that all services for city utilities at the previous location are paid to date.

(Code 1975, 21-206; Ord. 425, Sec. 1)

Upon written request and the deposit of $1.00 by the consumer, the electrical superintendent shall cause a test to be made of the accuracy of the recording of any electric service meter If, upon test, the meter is shown to be recording 3% or more in excess of the total usage, the $1.00 testing deposit shall be returned to the customer, if less than 3%, the $1.00 shall be retained by the city.

(Code 1975, 21-207)

The following electric rates are hereby established for the electric current sold by the City of Udall to-wit:

(a)   Residential electric service to customers of the City:

Customer Minimum Charge


0 to 100 kwhr


per kwhr

101 to 300 kwhr


per kwhr

301 to 600 kwhr


per kwhr

All over 500 kwhr


per kwhr

The above schedule is the base rate to be charged each consumer. A fuel adjustment charge, hereinafter set out, shall be added to the base rate of each customer.

(b)   Commercial electric service for commercial business, including service to recognized boarding homes, rooming houses, apartments, schools, churches and establishments of a commercial nature, including single-phase motor or power requirements up to a total of five horsepower and measured through to one meter and not resold, shall be supplied at the following rates:

Customer Minimum Charge


0 to 100 kwhr


per kwhr

101 to 500 kwhr


per kwhr

501 to 2,000 kwhr


per kwhr

All over 2,000 kwhr


per kwhr

Customers having low power factor equipment such as uncorrected power factor fluorescent lighting units, will be required to provide such devices with capacitators for power factor correction at the expense of the customer. The city shall not be obligated to furnish or continue service to radio transmitters, x-ray equipment or other apparatus, the operation of which causes disturbance on the city’s electric distribution system, or is of such a character as to impair the satisfactory service to other customers.

(c)   Power service shall be applicable to all customers having power installations of five horsepower motor load or over. Service shall be furnished at a single point of delivery through one metering connection, such point of delivery to be at the option of the city. Service hereunder is not available for resale. A power service when established shall continue for a period of not less than 12 months. Power service shall be supplied at the following rates:

Customer Minimum Charge


0 to 40 kwhr


per kwhr

41 to 100 kwhr


per kwhr

101 to 500 kwhr


per kwhr

501 to 5,000 kwhr


per kwhr

5,001 to 15,000 kwhr


per kwhr

All over 15,000 kwhr


per kwhr

The above schedules shall be the base rate. A fuel adjustment charge, as hereinafter described, shall be added to the base rate of each customer on all kwhr used as needed when suppliers increase their rate to the City of Udall.

(d)   Fuel adjustment charge as used in this article is the amount the city pays in excess of its base rate to the supplier of electricity for the city. All amounts in excess of the base rate paid by the city to the supplier of electricity, shall be passed on to the customer for each kilowatt hour used, and shall be designated as fuel adjustment charge. The fuel adjustment charge shall be in addition to base rate for each category of service hereinafter set forth.

(e)   The voltage phase and transformer capacity for service under this schedule shall be at the discretion to the city. Where power is delivered at primary line voltage, a discount of two percent (2%) will be allowed on the monthly billing which is calculated under the above rate schedule. The city shall approve the customer’s installation before establishing service at such primary voltage installations. Customers shall utilize reduced voltage starters or the equivalent thereof for all motors 25 h.p. and above, unless otherwise approved by the city for the specific installation.

(Ord. 584, Secs. 1A:1E; Code 2007)

All bills due the City of Udall for electrical service shall be payable by check or cash to the City Clerk in the City Hall. A New Connect fee of $25.00 and a deposit of $150.00 will be required to establish service. Regular bills for electrical service shall be due and payable the first day of each month for the previous month’s usage. Final bills rendered upon discontinuance of service and all other bills shall be due and payable upon rendition of the bill. A penalty often per cent (10%) of the amount thereof shall be added to any bill if not paid in the city office by 4:00 P.M. on the 20th day of the month in which due.  Such penalty shall be added to and collected with the bill. If any customer fails or refuses to pay for such services on or before 4:00 P.M. on the 25th day of the month in which due, it shall be the duty of the superintendent to discontinue service to the customer failing to pay; provided, however, that any customer who has failed to pay their bill and whose service is subject to being discontinued for non-payment may request a hearing and be heard if such customer requests a hearing in writing and files such written request with the City Clerk at least five (5) days prior to the date service is subject to being discontinued. A hearing, if requested in the manner hereinbefore set forth, shall be held before the Mayor and the City Clerk no later than twenty-five (25) days following the due date of  such bill.  The City Clerk shall set the hearing date and give notice of the time and place of hearing to the customer who has filed the request. Service which has been discontinued for non-payment of a bill shall not be restored until all bills are paid in full and a service charge of twenty dollars ($20.00) has been paid to reestablish services.

(Ord. 584, Sec. 1F; Code 2007)

Electric service shall be terminated for nonpayment of service fees or charges as provided in sections 15-102:104.

(Code 1998)

All services and devices shall, at all reasonable times, be subject to inspection by duly authorized officials of the electrical department of this city. Any repairs found to be necessary by such officials shall be made promptly by the consumer, or the city will disconnect services until such repairs are made.

(Code 1975, 21-209)

For the purpose of reading meters, the electrical superintendent, or his or her duly authorized employee, may legally enter upon any premise at any reasonable hour.

(Code 1975, 21-210)

It is hereby declared unlawful for any person to take any electricity from the municipal electrical system of this city, in any manner whatever, except through a meter installed by the city, or from any premises now owned by him, her, or them, without the permission of the owner thereof.

(Code 1975, 21-211)

The city hereby reserves the right to discontinue service to any or all customers of the municipal electrical system, without notice, when the same is necessary for the repair of the system, or any part thereof. Charges for reconnection within the city limits shall be $2.50, if made during regular working hours; and $5.00 if made after working hours, or on holidays or Sundays. A charge of $5.00 shall be made for all re-connections outside the limits of the city.

(Code 1975, 21-212)

(a)   The Public Utility Regulatory Policies Act of 1978 (PURPA), under Section 210, requires the Federal Energy Regulatory Commission (FERC) to develop rules which encourage co-generation and small power production. Pursuant to Section 210, Register (45 FR 12214, February 24, 1980). The City of Udall Utility herein referred to as “utility” which is a non-regulated electric utility will implement, to the extent possible, the procedures and requirements of FERC Order No. 69, pursuant to these rules.

(b)   These rules shall apply to all entities willing and able to enter into an agreement with the utility. Provisions of these rules shall not supersede existing contracts. Entities who have the statue of “qualifying small power production facility” and/or “qualifying co-generation facility” (hereinafter referred to collectively as qualifying facility), pursuant to FERC Order No. 70 (45 FT 17959, March 20, 1980) are eligible to apply for service under these rules.

(c)   These rules represent general guidelines since the nature, size and character of qualifying facility can vary widely. The utility reserves the right to evaluate a qualifying facility on a case by case basis.

(Ord. 402, Sec. 1)

For the purpose of this article, words and phrases listed below shall have the following meanings.

(a)   Accredited Capacity:  The electrical rating given to general equipment that meets the utility’s criteria for uniform rating of equipment. This criteria includes but is not limited to reliability, availability, type of equipment, and the degree of coordination between the qualifying facility and the utility.

(b)   Avoided Costs:  Avoided costs means the incremental costs to an electric utility of electric energy or capacity or both which, but for the purchase from the qualifying facility or qualifying facilities, such utility would generate itself or purchase from another source.

(c)   Capacity Costs:  The costs associated with providing the capability to deliver energy. They consist of the capital costs of facilities used to generate and transmit electricity or the cost to purchase such capacity from other utilities.

(d)   Cogeneration Facility:  Equipment used to produce electric energy and forms of useful thermal energy (such as heat or steam), used for industrial, commercial, heating, or cooling purposed, through the sequential use of energy.

(e)   Demand:  The average rate in kilowatts at which electric capacity is made available as determined at the point of measurement during any 30 minute period or any other period to be determined by the utility.

(f)   Energy:  Electric energy as measured in kilowatt hours at the point of measurement.

(g)   Energy Costs:  The variable costs associated with the production of electric energy. They represent energy related cost only, or the average cost of purchased energy. Identifiable capacity charges included in purchased power agreements shall not be included in the calculation of the cost of purchased energy.

(h)   Interconnection Costs:  The reasonable costs of connection, switching, metering, transmission, distribution, safety provisions and administrative costs incurred by the electric utility directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations with a qualifying facility, to the extent such costs are in excess of the corresponding costs which the electric utility would have incurred if it had not engaged interconnected operations, but instead generated an equivalent amount of energy itself or purchased an equivalent amount of electric energy or capacity from other sources. Interconnection costs do not include any costs included in a calculation of avoided costs.

(i)    Point of Measurement:  The point or points where energy and/or demand are metered.

(j)    Point of Interconnection:  The point or points at which the qualifying facility is to receive and/or deliver energy or capacity and energy under normal operating conditions.

(k)   Present Utility Practice:  Any of the practices, methods, and acts engaged in or approved by a significant portion of the electrical utility industry consistent with reliability, safety, and expedition.

(l)    Qualifying Facility:  A cogeneration facility or a small power production facility which is a qualifying facility under Subpart B of Part 292-Regulations under Sections 201 and 210 of the Public Regulatory Policies Act of 1978 with regard to the small power production and cogeneration, as published in the Federal Register at 45 FR 12214, February 24, 1980.

(m)  Rate:  The price, rate, charge, or classification made, demanded, observed or received with respect to the sale or purchase of electric energy or capacity, or any rule, regulation, or practice respecting any such rate, charge, or classification, and any contract pertaining to the sale or purchase of electric energy or capacity.

(n)   Sale:  The sale of electric energy or capacity or both by an electric utility to a qualifying facility.

(o)   System Emergency:  A condition on a utility system which is likely to result in imminent significant disruption of service to customers, or is imminently likely to endanger life or property.

(Ord. 402, Sec. 2)


The conditions listed in this paragraph shall apply to all qualifying facilities served under these rules

(a)   No person shall enter upon the construction of any qualifying facility whether original installation or material alteration of existing installations, on any property in this city without first having secured a permit therefor. Application for such permit shall be made in writing with the city clerk upon blanks furnished by the city, describing the proposed work and the structure to be installed.

(b)   The electrical inspector appointed by the city shall be empowered to inspect all new installations of, or existing, qualifying facilities, during reasonable hours. He or she shall have the authority to enter upon any premises in the discharge of his or her official duties for the purpose of making inspection. It shall be the duty of every person who may have installed any such qualifying facility within the corporate limits of the city to report the installation to the city clerk. It shall be the duty of every person to notify the city clerk prior to the initial energizing and start-up testing of the qualifying facility, and the utility shall have the right to have a representative present at such test.

(c)   The utility shall purchase energy or capacity and energy from any qualifying facility who offers to sell energy or capacity and energy.

(d)   The utility shall sell any capacity and energy that is required by the qualifying facility to the qualifying facility. The qualifying facility shall be billed under the applicable residential,. general, industrial, or contractual service schedule.

(e)   The utility may, at its option provide maintenance, and shall offer to provide interruptible, supplementary, and back-up power to the qualifying facility if requested by the qualifying facility.

(f)   The qualifying facility shall execute a written, agreement with the utility. The utility reserves the right to waive this requirement. The waiving of this requirement by the utility does not relinquish the utility’s right to require the execution of a written agreement in the future.

(g)   The qualifying facility shall not exceed 45 feet in height above natural grade; provided, however, such facility shall not be located closer to any adjacent property than the height of the qualifying facility unless this requirement is waived by the city.

(h)   The utility shall interconnect and operate in parallel with the qualifying facility. The qualifying facility shall, to the point of interconnection, furnish, install, operate, and maintain in good order and repair and without cost to the utility such relays, jocks and seals, breakers, automatic synchronizers, and other control and protective equipment as shall be designated by the utility as being required as suitable for the operation of the qualifying facility in parallel with the utility’s system. The qualifying facility shall take appropriate steps to insure that operating in parallel will not degrade in any fashion the quality of service that is normally maintained on the utility’s system.

(i)    Switching equipment capable of isolating the qualifying facility from the utility’s system shall be accessible to the utility or its agent at all times.

(j)    At its option, the utility or its agent may choose to operate, without notice or liability, the switching equipment described in subsection (i) above if, in the opinion of the utility or its agent, continued operation of the qualifying facility in connection with the utility’s system may create or contribute to a system emergency or safety hazard. The utility’s objection to purchase from the qualifying facility ceases when the utility or its agent operates the switching equipment described in subsection (i) above. The utility shall endeavor to minimize any adverse effects of such operation on the qualifying facility.

(k)   The qualifying facility shall indemnify and hold harmless the utility from any and all liability arising from the operation and interconnection of the customer’s facilities. The qualifying facility shall bear full responsibility for the installation and safe operation of the equipment required to generate and deliver energy or capacity and energy to the point of interconnection.

(l)    The utility shall provide upon request sufficient data to allow the customer to determine the cost effectiveness of the qualifying facility if it goes into operation pursuant to these rules. The data given will conform to the outline given in Section 292.303 (Order No. 69-18 CFR Part 292).

(m)  Any costs of interconnection which are over and above the interconnection costs that would be incurred due to the connection of a comparable non-generating customer and which are incurred by the utility due to the interconnection of the qualifying facility shall be the responsibility of the qualifying facility.  Interconnection costs shall be paid to the utility upon demand.

(n)   The utility may discontinue purchase from the qualifying facility if the utility determines that purchase from the qualifying facility would result in costs greater than those which the utility would incur if it did not make such purchases.

(o)   The utility will give sufficient notice to the qualifying facility when it intends to invoke subsection (n).

(p)   The utility may discontinue sales to the qualifying facility during a system emergency, providing that such discontinuance is on a nondiscriminatory basis.

(q)   The qualifying facility shall when requested, make payment in advance to the utility for the costs of interconnection.

(r)    The qualifying facility shall comply with all requirements of the National Electrical Safety Code as published in 1981, American National Standards Institute, Institute of Electrical and Electronic Engineers, American Society of Mechanical Engineers, and any other applicable local, state or national code and operate its equipment according to prudent utility practice. In case of any conflict in the foregoing codes or standards, the utility shall decide which shall govern.

(Ord. 402, Sec. 3)

(a)   The utility shall purchase the surplus energy or surplus capacity and energy from qualifying facilities. The rate paid by the utility to the qualifying facility for such surplus energy or surplus capacity and energy may be a negotiated rate.

(b)   Qualifying facilities of 100 kW or less shall be paid a standard rate, except as otherwise stated in subsection (a), based on avoided cost as outlined in subsections (d) and (e). The installation of metering equipment shall be according to utility policy.

(c)   For qualifying facilities of 100 kW or more, the qualifying facility may negotiate a contract with the utility. For qualifying facilities who choose not to negotiate, or in the event of an impasse in negotiations between the utility and the qualifying facility, avoided costs will be paid. Such avoided costs shall be determined as outlined in subsections (d) and (e), except as otherwise stated in subsection (a).

(d)   Avoided energy costs shall be estimated or actual energy costs adjusted for the following items:

(1)   The costs of savings to the utility resulting from variations in line losses from those that would have existed in the absence of purchase from the qualifying facility, if the utility generated or purchased an equivalent amount of energy.

(2)   Sanctions imposed for noncompliance with these rules and any contract between the utility and the qualifying facility.

(e)   Capacity payments shall be made in any case in which the qualifying facility enters into a legally enforceable contract to provide accredited capacity.  The payment for the capacity purchase from the qualifying facility shall take into account the following items:

(1)   Length of the contract term.

(2)   Reasonable scheduling of maintenance.

(3)   Willingness and ability of the customer to allow the utility to dispatch the customer’s generation.

(4)   The utility’s ability to defer a purchase from another source or to defer construction of a facility or a portion of a facility.

(5)   Sanctions imposed for noncompliance with these rules and any contract between the utility and the qualifying facility.

(6)   Availability and reliability of the qualifying facility.

(f)   Any tax or payment in lieu thereof imposed on the utility by any lawful authority on the production, transmission, sale, or purchase of energy or capacity and energy that would not occur due to a comparable non-generating customer shall be the responsibility of the qualifying facility.

(Ord. 402, Sec. 4)

(a)   The qualifying facility shall defend, indemnify and hold harmless the utility from any and all liability arising from the operation and interconnection of the customer’s facilities. The qualifying facility shall bear full responsibility for the installation and safe operation of the equipment required to generate and deliver energy or capacity and energy to the point of interconnection.

(b)   The owner of a qualifying facility shall maintain workers compensation insurance as required by law and public liability insurance covering bodily injury and property damage in such an amount as the city shall determine by resolution duly adopted by the governing body of the city. Each public liability policy shall name the city as an additional insured.

(c)   The city shall not be liable whether in contract or in tort or under any other legal theory to the owner of the qualifying facility, the owner’s customers, or any other person or entity for (1) lost generation revenue (2) loss of use revenue or profit (3) cost of capital (4) substitute use or performance or (5) for any other incidental, indirect, special or consequential damages.

(Ord. 402, Sec. 5)