Submitted By: Brittany Craven
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Presentation By: Doug Peebles
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Department: Electric Utility
FORMAL TITLE:
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Updated Tri-Party Net Metering Agreement Template for the City’s Net Metering Program
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
In the 2009 legislative session, the Florida Legislature adopted House Bill 7135, which amended section 366.91, Florida Statutes, to require municipal electric utilities to develop a standardized interconnection agreement and net metering program for small customer-owned renewable generation. This followed the federal Energy Policy Act of 2005 (EP Act 2005), which directed utilities to consider offering net metering.
Separately, the Florida Public Service Commission (PSC) adopted Rule 25-6.065, Florida Administrative Code, effective April 2008. The rule requires investor-owned utilities (IOUs) to allow interconnection and net metering of small customer-owned renewable generation. Although the rule applies primarily to IOUs, it also requires municipal electric utilities to file a standard interconnection agreement for customer-owned generation and to report certain information about interconnected customers. PSC staff have also indicated that they expect municipal utilities to substantially comply with the IOU rule or justify any deviations.
At its June 26, 2025, Executive Committee meeting, the Florida Municipal Power Agency (FMPA) approved changes to its Net Metering Policy and Tri-Party Power Purchase Agreement. FMPA then provided the City with a revised Tri-Party Net Metering Agreement reflecting those changes and asked the City to use it going forward. The revised agreement will serve as the standard template for future net metering agreements among the City, FMPA, and applicable solar-leasing companies.
FINDINGS AND CONCLUSIONS:
The revised agreement aligns the City's net metering agreement with current FMPA-approved terms and requirements. City staff has reviewed the template and recommends approval. Approval will authorize the City to utilize the updated form for future net metering agreements.
FISCAL IMPACT:
N/A
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This Agreement has been reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny