Legal NEM Application

LEGAL NEM APPLICATION

This Net Energy Metering Application and Agreement (the "Agreement") is entered into as of Effective Date: by and between Utility Name: ("Utility") and Applicant Name: ("Applicant").

RECITALS

WHEREAS, Applicant desires to interconnect and operate a distributed generation facility using renewable energy resources at the premises located at: (the "Premises") and to receive net energy metering credits in accordance with applicable rates and tariffs; and

WHEREAS, Utility administers net energy metering and interconnection under its service obligations and applicable rules and requires submission of this Application and Agreement as a condition to interconnection; and

WHEREAS, the parties intend by this Agreement to set forth the terms, conditions and certifications governing the interconnection, metering, billing and compensation for exported energy from Applicant's generating facility.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. DEFINITIONS

For the purposes of this Agreement, the following terms have the following meanings: "Interconnection Facilities" means all equipment, meters, and protective devices required to safely interconnect the generating facility to Utility's distribution system. "Generating Facility" or "System" means the Applicant-owned or third-party-owned renewable generation equipment described in Section 2 below. "Net Energy Metering" means the metering and billing practice by which surplus generation exported to the Utility is credited to Applicant in accordance with Utility rates and tariffs.

2. APPLICATION DATA

Owner-occupied Third-party owned (PPA/lease) Lessee

3. INTERCONNECTION AND INSTALLATION

Applicant shall install and operate the Generating Facility in compliance with Utility interconnection standards and applicable electrical code. Applicant shall obtain and maintain all permits, inspections and approvals required by local authorities and shall not connect or operate the Generating Facility in parallel with Utility's distribution system until written acceptance of the interconnection is issued by Utility.

Utility retains the right to require additional protective equipment or upgrades to the distribution system as a condition of interconnection; Applicant shall be responsible for the reasonable costs of upgrades that are solely for interconnection of the Generating Facility.

4. METERING, BILLING, AND COMPENSATION

Utility shall determine the appropriate metering configuration consistent with Utility metering rules. Net energy metering credits will be applied to Applicant's account in accordance with Utility's rate schedule and in effect at the time billing occurs. Credits shall be applied and carried forward as provided under applicable tariffs, subject to any limits or adjustments required by law.

Applicant hereby authorizes Utility to access billing data and interval meter data for the Premises for the purposes of verifying net metering calculations and interconnection performance.

5. REPRESENTATIONS, WARRANTIES AND CERTIFICATIONS

Applicant represents and warrants that Applicant is authorized to make this Application and to execute this Agreement on behalf of the owner of the Premises; that the information provided herein is true and correct; that Applicant will maintain the Generating Facility in good working order and in compliance with law; and that Applicant will notify Utility in writing prior to any material modification to the Generating Facility.

6. INSURANCE, LIABILITY AND INDEMNIFICATION

Applicant shall maintain insurance covering the Generating Facility and liability arising out of its installation and operation in commercially reasonable amounts, and shall provide proof of such insurance to Utility upon request. Applicant agrees to indemnify, defend and hold harmless Utility and its affiliates from and against any liabilities, claims, losses or damages to the extent caused by Applicant's negligent acts or omissions or willful misconduct in connection with the installation, operation or maintenance of the Generating Facility, except to the extent caused by Utility's gross negligence or willful misconduct.

7. INSPECTION, ACCESS AND DISCONNECTION

Utility and its authorized agents shall have reasonable access to the Premises for inspection, testing, meter reading and maintenance of Utility equipment. Utility reserves the right to temporarily disconnect the Generating Facility for maintenance, safety or emergency reasons. Permanent disconnection may occur for material breach of this Agreement or if the Generating Facility creates adverse impact on the distribution system.

8. TERM, TERMINATION AND MODIFICATION

This Agreement becomes effective when executed by both parties and shall remain in effect until terminated by mutual agreement or in accordance with applicable tariff provisions. Either party may terminate this Agreement for material breach following written notice and a thirty (30) day opportunity to cure. Modifications to the Generating Facility that materially change its capacity or interconnection characteristics require prior written approval by Utility.

9. NOTICES

All notices required or permitted hereunder shall be in writing and delivered by hand, certified mail or other delivery service to the addresses below or to such other address as a party designates by notice.

10. AMENDMENTS, WAIVER, COUNTERPARTS

This Agreement may be amended only by a written instrument executed by both parties. No failure or delay by either party in exercising any right shall operate as a waiver of that right. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

11. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

This Agreement shall be governed by and construed in accordance with the laws of the state in which the Premises are located, without regard to its conflict of law principles. This Agreement, together with any attachments and accepted application materials, constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior negotiations, representations or agreements. If any provision of this Agreement is held invalid or unenforceable, the remainder of the Agreement shall remain in full force and effect, and the invalid provision shall be reformed to the extent possible to give effect to the parties' intent.

12. ATTACHMENTS

CERTIFICATION AND AUTHORIZATION

Applicant certifies under penalty of perjury that Applicant is the owner or has authority from the owner to execute this Agreement, that the Generating Facility will comply with applicable codes and standards, and that false statements may result in denial or revocation of interconnection. Applicant authorizes Utility to obtain necessary meter and billing data and to exchange information with authorized contractors or inspectors solely for the purposes of interconnection and net energy metering administration.

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