Rate SGS – Small Generation Service


This rate is available to any customer connected to the municipally owned electric system of the City of Peru (Utility), that owns and operates an eligible solar, wind, biomass, hydroelectric, or other renewable generation source. In order to be entitled to this rate, however, the Customer shall enter into a contract with the Utility before operation of any generating equipment electrically connected to the Utility’s electrical system.

This rate is provided upon request and on a first-come, first-served basis, and is available only to residential (Rate RS-1) and general service (Rate GSA-1) Customers. The nameplate rating of the Customer’s generator must not exceed 10 kW. Total participation under this tariff is limited to a total nameplate rating of all Customers’ generators to one-tenth percent (0.1%) of the Utility’s most recent summer peak load.

This rate may be discontinued or be subject to change at any time upon approval of the Peru Utilities Service Board and the City of Peru Common Council.


The Utility shall measure the amount of electricity delivered by the Utility to the Customer and the amount of electricity generated by the Customer and delivered to the Utility during the billing period, in accordance with normal metering practices. The kWh delivered by the Utility to the Customer shall be billed in accordance with the standard tariff that would apply if the Customer did not participate in generation.

The kWh generated by the Customer and delivered to Utility shall be credited against the Customer’s next bill. Said credit shall be equal to the kWh delivered by the Customer to the Utility multiplied times the effective energy component charge of the Utility’s wholesale power bill for the month in which said kWh was delivered to the Utility by the Customer.


If possible, the Utility will install a standard meter, which is capable of measuring electricity in both directions. If Utility determines new metering equipment is necessary, the Utility will install metering capable of measuring electricity in both directions at the Customer’s expense. Additionally, the Utility reserves the right to install, at its own expense, a meter to measure the output of the generation system.

Terms & Conditions

In order to be eligible for this rate, the Customer’s generator must meet the following requirements:

  1. All kWh must be generated from the output of photovoltaic, wind, or low-head hydro electrical generation sources or through the combustion of refuse, a renewable or recovered resource.
  2. The generation equipment must be located on the Customer’s premises;
  3. The generator must operate in parallel with the Utility’s distribution facilities;
  4. The Customer’s generation must be intended primarily to offset part or all of the Customer’s requirements for electricity;
  5. The nameplate rating of the Customer’s generator must not exceed 10 kW.

Customer shall maintain homeowners, commercial, or other insurance providing coverage in the amount of at least one hundred thousand dollars ($100,000) for the liability of the insured against loss arising out of the use of generation equipment.

Utility and Customer shall indemnify and hold the other party harmless from and against all claims, liability, damages, and expenses, including attorney’s fees, based on any injury to any person, including loss of life or damage to any property, including loss of use thereof, arising out of, resulting from, or connected with an act or omission by such other party, its employees, agents, representatives, successors, or assigns in the construction, ownership, operation, or maintenance of such party’s facilities used in generation.


For generator systems eligible for this rate, the Utility’s technical requirements consist of:

  1. IEEE 1547-2003, “IEEE Standard for Interconnection Distributed Resources with Electric Power Systems” and as it might be revised from time to time (IEEE 1547).
  2. Current version of ANSI/NFPA 70, “National Electrical Code” (NEC).
  3. Any other applicable local building codes.

Inverter-based systems listed by Underwriters Laboratories (UL) to UL Standard 1741, published May 7, 1999, as revised January 17, 2001, and as it might be revised from time to time (UL 1741), are accepted by the Utility as meeting the technical requirements of IEEE 1547 tested by UL 1741.

Customer shall make an application for Interconnection Service and execute an Interconnection Agreement acceptable to the Utility.

The Customer shall install a disconnect switch to isolate the generator system from the Utility’s system. This disconnect must be visible from the utility meter, accessible at all times, and capable of being locked in the open position.

The Utility may isolate the generator system if the Utility believes that the continued interconnection with the generator system may create or contribute to a system emergency.

The Customer shall install, operate, and maintain the generation system in accordance with the manufacturer’s suggested practices for safe, efficient, and reliable operation in parallel to the Utility’s system.

The Customer shall operate the generation system in such a manner as not to cause undue fluctuations in voltage, intermittent load characteristics or otherwise interfere with the operation of the Utility’s electric system.

The Utility may perform on-site inspections to verify the proper installation and continuing safe operation of the generation system.

The Customer shall be responsible for all costs associated with improvements to the Utility’s system that are required to maintain the safe and reliable operation of the Utility’s system after the installation of the generator system.

Conformance with these requirements does not convey any liability to the Utility for damages or injuries arising from the installation or operation of the generator system.