Model Net Metering Legislation

AN ACT RELATING TO NET METERING FOR CERTAIN RENEWABLE ENERGY SYSTEMS
 
Be It Enacted by the Legislature of the State of _______:
 
Section 1. LEGISLATIVE INTENT. The Legislature finds that a net energy metering program for customers with renewable-fuel electric generating facilities encourages private investment in renewable energy resources, stimulates the economic growth of this state, encourages energy independence and security, and enhances the continued diversification of this state's energy resources; now, therefore,
 
Section 2. DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly indicates otherwise.
 
(1) "Commission" means the [State Public Utilities Commission] as defined in [State] Code [#].
 
(2) "Customer-Generator" means a user or users of a net metering facility.
 
(3) "Electric Utility" means:
(a) a public utility regulated under Title [#] of the [State] Code;
(b) a municipal utility operating under [State] Code [#];
(c) a cooperative electrical association as defined in [State] Code [#]; or
(d) an irrigation district operating under [State] Code [#]
that is engaged in the business of distributing electricity to retail electric customers in the state.
 
(4) "Eligible Renewable Energy Resource" means electricity generation facilities or fuel cells fueled by:
(a) wind;
(b) solar energy;
(c) geothermal energy;
(d) methane gas from landfills, sewage treatment plants, or animal wastes;
(e) biomass energy based on solid organic fuels from wood, forest or field residues or dedicated energy crops that does not include:
(i) wood pieces that have been treated with chemical preservatives such as creosote, pentachlorophenol, or copper-chrome-arsenic;
(ii) municipal solid waste;
(iii) tires;
(iv) construction and demolition debris; or
(v) waste byproducts of pulp and paper mills.
(f) hydropower.
(5) "Governing Body" means the governing body of a municipal utility operating under [State] Code [#], a cooperative electrical association as defined in [State] Code [#], or an irrigation district operating under [State] Code [#].
 
(6) "Net Metering" means the difference between the electricity supplied by an electric utility and the electricity generated by a customer-generator that is fed back to the electric utility over the applicable billing period.
 
(7) "Net Metering System" means a facility for the production of electric energy that:
(a) uses an eligible renewable energy resource to generate electricity;
(b) has a generating capacity of not more than 250 kilowatts for irrigation and large commercial customers; or 100 kilowatts for all other customers;
(c) is located on the customer-generator's premises;
(d) operates in parallel with an electric utility's existing transmission and distribution facilities; and
(e) is intended primarily to offset part or all of the customer-generator's requirements for electricity.
 
Section 3. NET METERING. An electric utility:
 
(1) Shall offer to make net metering available to customer-generators on a first-come, first-served basis; provided, that after the cumulative generating capacity of net metering systems equals 0.5% of the utility's single hour peak load during the previous year, the obligation of a utility to offer net metering to a new customer-generator may be limited by the Commission, for a public utility, or the governing body for other electric utilities, in order to balance the interests of retail customers.
 
When limiting net metering obligations under this subsection, the Commission, for a public utility, or the governing body, for other electric utilities shall consider the economic, environmental and other public policy benefits of net metering systems. The Commission may limit net metering obligations under this subsection only following notice and opportunity for public comment. The governing body, for other electric utilities, may limit net metering obligations only following notice and opportunity for comment from the customers of the utility, cooperative, or district.
 
(2) Shall allow net metering facilities to be interconnected using a standard kilowatt-hour meter that is capable of registering the flow of electricity in two directions.
 
(3) May, at its own expense, install one or more additional meters to monitor the flow of electricity in each direction.
 
(4) Shall charge the customer-generator a minimum monthly fee that is the same as other customers of the electric utility in the same rate class, but shall not charge the customer-generator any additional standby, capacity, interconnection or other fee or charge.
 
(5) Shall disclose annually the availability of the net metering program to each of its customers, with the method of disclosure being at the discretion of the electric utility.
 
Section 4. NET ENERGY MEASUREMENT; BILLING. Consistent with the other provisions of this Act, the net energy measurement must be calculated in the following manner:
 
(1) For a customer-generator, an electric utility shall measure the net electricity produced or consumed during the billing period in accordance with normal metering practices.
 
(2) If the electricity supplied by the electric utility exceeds the electricity generated by the customer-generator and fed back to the electric utility during the billing period, the customer-generator shall be billed for the net electricity supplied by the electric utility in accordance with normal metering practices.
 
(3) If the electricity generated by the customer-generator exceeds the electricity supplied by the electric utility, the customer-generator shall be billed for the appropriate customer charges for that billing period, in accordance with Section 3 of this Act, and shall be credited for the excess kilowatt-hours generated during the billing period, with this kilowatt-hour credit applied to the following billing period.
 
Section 5. NET METERING SYSTEMS.
 
(1) A net metering system used by a customer-generator shall include, at the customer-generator's own expense, all equipment necessary to meet applicable safety, power quality and interconnection requirements established by the National Electrical Code, National Electrical Safety Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories.
 
(2) An electric utility may not require a customer-generator whose net metering system meets the standards in subsection (1) of this section to comply with additional safety or performance standards, perform or pay for additional tests, or purchase additional liability insurance. An electric utility shall not be liable directly or indirectly for permitting or continuing to allow an attachment of a net metering system, or for the acts or omissions of the customer-generator that cause loss or injury, including death, to any third party.
 
(3) A maximum number of ten (10) customer-generators may jointly share a single net metering system; provided:
(a) that a net metering system jointly shared by multiple customer-generators shall comply with the generating capacity limitation provided in this Act, and
(b) that an electric utility may require customer-generators jointly sharing a single net-metering system to designate a customer representative to communicate with the utility in ensuring compliance with this Act.
SECTION 6. Sections 1 through 5 of this Act constitute a new chapter in Title [#] [State] Code.
 
STATEMENT OF PURPOSE
 
The proposed legislation intends to provide for a program of net metering for utility customers with small-scale, electric generating facilities utilizing renewable fuels to encourage private investment in renewable energy sources, stimulate the economic growth of the state, provide customers with options to reduce demand for utility provided power, increase energy independence and security, and enhance the continued diversification of [State]'s energy resources.
 
FISCAL NOTES
 
None.