Provides for the net energy metering of solar, wind, fuel cell and farm waste electric generating systems for both residential and business customers; increases the rated capacity of eligible solar electric generating equipment to 2,000 kilowatts; provides for the metering and fees for such electric generating equipment.
STATE OF NEW YORK
________________________________________________________________________
5785
2009-2010 Regular Sessions
IN ASSEMBLY
February 20, 2009
___________
Introduced by M. of A. ENGLEBRIGHT, BENEDETTO, SWEENEY, BRADLEY, REILLY,
FIELDS, DESTITO, JACOBS, MAISEL, DelMONTE, J. RIVERA, MARKEY, GALEF,
MILLMAN, KOON, CAHILL, GUNTHER, LUPARDO, CARROZZA, MAGNARELLI, SCHIM-
MINGER, ALFANO, ESPAILLAT, HOOPER, O'DONNELL, ROSENTHAL, BROOK-KRASNY,
GORDON, STIRPE, SPANO, TITONE, ALESSI, JAFFEE, KAVANAGH -- Multi-Spon-
sored by -- M. of A. BING, BOYLAND, BRENNAN, CALHOUN, COLTON, CONTE,
COOK, EDDINGTON, GIGLIO, GOTTFRIED, HYER-SPENCER, JEFFRIES, KOLB,
LATIMER, P. LOPEZ, MAGEE, MAYERSOHN, McENENY, PAULIN, PHEFFER, WEISEN-
BERG -- read once and referred to the Committee on Energy
AN ACT to amend the public service law and the public authorities law,
in relation to net energy metering for solar, wind, fuel cell and farm
waste electric generating systems; and to repeal section 66-l of the
public service law relating to net energy metering for residential
and/or farm service wind electric generating systems
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The section heading and subdivisions 1, 2, 3, 4 and 5 of
2 section 66-j of the public service law, the section heading, paragraphs
3 (a), (d) and (e) of subdivision 1, subdivision 2, paragraphs (a), (b)
4 and (c) of subdivision 3 and paragraphs (c) and (d) of subdivision 4 as
5 amended by chapter 452 of the laws of 2008, subdivisions 1, 3, 4 and 5
6 as amended by chapter 515 of the laws of 2002 and paragraph (b) and the
7 opening paragraph of paragraph (e) of subdivision 1 as amended by chap-
8 ter 480 of the laws of 2008, are amended to read as follows:
9 Net energy metering for [residential] solar, wind, fuel cell or farm
10 waste [or non-residential solar] electric generating systems. 1. Defi-
11 nitions. As used in this section, the following terms shall have the
12 following meanings:
13 (a) "Customer-generator" means: (i) [a residential] any customer of
14 an electric corporation, who owns or operates solar, wind or fuel cell
15 electric generating equipment, or any hybrid equipment composed of these
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09113-01-9
A. 5785 2
1 three technologies located and used at his or her [residence] premises;
2 and (ii) a customer of an electric corporation, who owns or operates
3 farm waste electric generating equipment located and used at his or her
4 "farm operation," as such term is defined in subdivision eleven of
5 section three hundred one of the agriculture and markets law[; and (iii)
6 a non-residential customer of an electric corporation which owns or
7 operates solar electric generating equipment located and used at its
8 premises].
9 (b) "Net energy meter" means a meter that measures the reverse flow of
10 electricity to register the difference between the electricity supplied
11 by an electric corporation to the customer-generator and the electricity
12 provided to the corporation by that customer-generator.
13 (c) "Net energy metering" means the use of a net energy meter to meas-
14 ure, during the billing period applicable to a customer-generator, the
15 net amount of electricity supplied by an electric corporation and
16 provided to the corporation by a customer-generator.
17 (d) "Solar electric generating equipment" means a photovoltaic system
18 [(i) (A) in the case of a residential customer,] with a rated capacity
19 of not more than [twenty-five] two thousand kilowatts[; and (B) in the
20 case of a non-residential customer, with a rated capacity of not more
21 than the lesser of two thousand kilowatts or such customer's peak load
22 as measured over the prior twelve month period, or in the case that such
23 twelve month period of measurement is not available, then as determined
24 by the commission based on its analysis of comparable facilities; and
25 (ii)] that is manufactured, installed, and operated in accordance with
26 applicable government and industry standards, that is connected to the
27 electric system and operated in [conjunction] parallel with an electric
28 corporation's transmission and distribution facilities, and that is
29 operated in compliance with any standards and requirements established
30 under this section.
31 (e) "Farm waste electric generating equipment" means equipment that
32 generates electric energy from biogas produced by the anaerobic
33 digestion of agricultural waste, such as livestock manure, farming
34 wastes and food processing wastes with a rated capacity of not more than
35 [five hundred] two thousand kilowatts, that is:
36 i. manufactured, installed, and operated in accordance with applicable
37 government and industry standards;
38 ii. connected to the electric system and operated in conjunction with
39 an electric corporation's transmission and distribution facilities;
40 iii. operated in compliance with any standards and requirements estab-
41 lished under this section;
42 iv. fueled at a minimum of ninety percent on an annual basis by biogas
43 produced from the anaerobic digestion of agricultural waste such as
44 livestock manure materials, crop residues, and food processing waste;
45 and
46 v. fueled by biogas generated by anaerobic digestion with at least
47 fifty percent by weight of its feedstock being livestock manure materi-
48 als on an annual basis.
49 (f) "Wind electric generating equipment" means a wind generator or
50 generators with a combined rated capacity of not more than two thousand
51 kilowatts that is manufactured, installed and operated in accordance
52 with applicable government and industry standards, that is connected to
53 the electric system and operated in parallel with an electric corpo-
54 ration's transmission and distribution facilities, and that is operated
55 in compliance with any standards and requirements established under this
56 section.
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1 (g) "Fuel cell electric generating equipment" means a solid oxide,
2 molten carbonate, proton exchange membrane or phosphoric acid fuel cell
3 with a combined rated capacity of not more than two thousand kilowatts
4 that is manufactured, installed and operated in accordance with applica-
5 ble government and industry standards, that is connected to the electric
6 system and operated in parallel with an electric corporation's trans-
7 mission and distribution facilities, and that is operated in compliance
8 with any standards and requirements established under this section.
9 (h) "Electric corporation" means any public or privately owned entity
10 that offers retail electrical service to end-use electric consumers.
11 (i) "Eligible technologies" means the solar, wind, fuel cell or farm
12 waste electric generating equipment.
13 2. Interconnection and net energy metering. An electric corporation
14 shall provide for the interconnection of [solar and farm waste electric
15 generating equipment] eligible technologies owned or operated by a
16 customer-generator and for net energy metering, provided that the
17 customer-generator enters into a net energy metering contract with the
18 corporation or complies with the corporation's net energy metering sche-
19 dule and complies with standards and requirements established under this
20 section.
21 3. Conditions of service. (a) [(i)] On or before three months after
22 the effective date of this section, each electric corporation shall
23 develop a model contract and file a schedule that establishes consistent
24 and reasonable rates, terms and conditions for net energy metering to
25 customer-generators, according to the requirements of this section. The
26 commission shall render a decision within three months from the date on
27 which the schedule is filed.
28 [(ii) On or before three months after the effective date of this
29 subparagraph, each electric corporation shall develop a model contract
30 and file a schedule that establishes consistent and reasonable rates,
31 terms and conditions for net energy metering to non-residential customer
32 generators, according to the requirements of this section. The commis-
33 sion shall render a decision within three months of the date on which
34 the schedule is filed.
35 (iii) Each electric corporation shall make such contract and schedule
36 available to customer-generators on a first come, first served basis,
37 until the total rated generating capacity for solar and farm waste elec-
38 tric generating equipment owned or operated by customer-generators in
39 the corporation's service area is equivalent to one percent of the
40 corporation's electric demand for the year two thousand five, as deter-
41 mined by the department.]
42 (b) [Nothing in this subdivision shall prohibit a corporation from
43 providing net energy metering to additional customer-generators. The
44 commission shall have the authority, after January first, two thousand
45 twelve, to increase the percent limits if it determines that additional
46 net energy metering is in the public interest.
47 (c) In the event that the electric corporation determines that it is
48 necessary to install a dedicated transformer or transformers, or other
49 equipment to protect the safety and adequacy of electric service
50 provided to other customers, a customer-generator shall pay the electric
51 corporation's actual costs of installing the transformer or transfor-
52 mers, or other equipment:
53 (i) In the case of a customer-generator who owns or operates solar
54 electric generating equipment located and used at his or her residence;
55 up to a maximum amount of three hundred fifty dollars.
A. 5785 4
1 (ii) In the case of a customer-generator who owns or operates farm
2 waste electric generating equipment located and used at his or her "farm
3 operation," up to a total amount of five thousand dollars per "farm
4 operation".
5 (iii) In the case of a non-residential customer-generator who owns or
6 operates solar electric generating equipment located and used at its
7 premises, such cost shall be as determined by the department pursuant to
8 standards established thereby.
9 (d)] An electric corporation shall impose no other charge or fee,
10 including, but not limited to, back-up, stand by and demand charges, for
11 the provision of net energy metering to a customer-generator, except as
12 provided in paragraph (d) of subdivision four of this section.
13 4. Rates. An electric corporation shall use net energy metering to
14 measure and charge for the net electricity supplied by the corporation
15 and provided to the corporation by a customer-generator, according to
16 these requirements:
17 (a) In the event that the amount of electricity supplied by the corpo-
18 ration during the billing period exceeds the amount of electricity
19 provided by a customer-generator, the corporation shall charge the
20 customer-generator for the net electricity supplied at the same rate per
21 kilowatt hour applicable to service provided to other customers in the
22 same service class which do not generate electricity onsite.
23 (b) In the event that the amount of electricity produced by a custom-
24 er-generator during the billing period exceeds the amount of electricity
25 used by the customer-generator, the corporation shall apply a credit to
26 the next bill for service to the customer-generator for the net elec-
27 tricity provided at the same rate per kilowatt hour applicable to
28 service provided to other customers in the same service class which do
29 not generate electricity onsite.
30 (c) At the end of the year or annualized over the period that service
31 is supplied by means of net energy metering, the corporation shall
32 promptly issue payment at its avoided cost to the customer-generator, as
33 defined in subparagraph (i) or (ii) of paragraph (a) of subdivision one
34 of this section, for the value of any remaining credit for the excess
35 electricity produced during the year or over the annualized period by
36 the customer-generator.
37 (d) In the event that the corporation imposes charges based on kilo-
38 watt demand on customers who are in the same service class as the
39 customer-generator but which do not generate electricity on site, the
40 corporation may impose the same charges at the same rates to the custom-
41 er-generator, provided, however, that the kilowatt demand for such
42 demand charges is determined by the maximum measured kilowatt demand
43 actually supplied by the corporation to the customer-generator during
44 the billing period.
45 (e) Net energy metering shall be accomplished using a single meter
46 capable of registering the flow of electricity in two directions. An
47 additional meter or meters to monitor the flow of electricity in each
48 direction may be installed with the consent of the customer-generator,
49 at the expense of the electric corporation, and the additional metering
50 shall be used only to provide the information necessary to accurately
51 bill or credit the customer-generator pursuant to paragraph (f) of this
52 subdivision, or to collect system performance information on the eligi-
53 ble technology for research purposes. If the existing electrical meter
54 of an eligible customer-generator is not capable of measuring the flow
55 of electricity in two directions and provided the reason the meter is
56 not capable of measuring the flow in two directions is not related
A. 5785 5
1 either to a mechanical device installed by an electric corporation or
2 such corporation's selection of a meter without this capability when
3 other meters capable of measuring the flow of electricity in two
4 directions were available to the electric corporation, the customer-gen-
5 erator shall be responsible for all expenses involved in purchasing and
6 installing a meter that is able to measure the flow of electricity in
7 two directions. If an additional meter or meters are installed, the net
8 energy metering calculation shall yield a result identical to that of a
9 single meter.
10 (f) Every electric corporation shall develop a standard contract or
11 tariff providing for net energy metering, and shall make this contract
12 available to eligible customer-generators, upon request. Every electric
13 corporation shall ensure that requests for establishment of net energy
14 metering are processed in a time period not exceeding that for similarly
15 situated customers requesting new electric service, but not to exceed
16 one month from the date the electric corporation receives a completed
17 application form from an eligible customer-generator. If an electric
18 corporation is unable to process the request within the allowable time-
19 frame, the electric corporation shall notify the customer-generator of
20 the reason for its inability to process the request and the date the
21 request will be completed. Every electric corporation shall make all
22 necessary forms and contracts for net energy metering available for
23 download from the internet.
24 (g) Each net energy metering contract or tariff shall be identical,
25 with respect to rate structure, all retail rate components and any
26 monthly charges, to the contract or tariff to which the same customer
27 would be assigned if such customer was not an eligible customer-genera-
28 tor, except that eligible customer-generators shall not be assessed
29 standby charges on the electrical generating capacity or the kilowatt-
30 hour production of an eligible technology. The charges for all retail
31 rate components for eligible customer-generators shall be based exclu-
32 sively on the customer-generator's net kilowatt-hour consumption over a
33 twelve month period, without regard to the customer-generator's choice
34 of electric corporation. Any new or additional demand charge, standby
35 charge, customer charge, minimum monthly charge, interconnection charge
36 or other charge that would increase an eligible customer-generator's
37 costs beyond those of other customers in the rate class to which the
38 eligible customer-generator would otherwise be assigned are contrary to
39 the intent of this section, and shall not form a part of net energy
40 metering contracts or tariffs.
41 (h) For all eligible customer-generators taking service under tariffs
42 employing "time of use" rates, any net monthly consumption of electric-
43 ity shall be calculated according to the terms of the contract or tariff
44 to which the same customer would be assigned to or be eligible for if
45 the customer was not an eligible customer-generator. When those same
46 customer-generators are net generators during any discrete time of use
47 period, the net kilowatt-hours produced shall be valued at the same
48 price per kilowatt-hour as the electric corporation would charge for
49 retail kilowatt-hour sales during that same time of use period and that
50 value shall be applied as a credit to any of the discrete time of use
51 periods under the tariff. If the eligible customer-generator's time of
52 use electrical meter is unable to measure the flow of electricity in two
53 directions, the provisions of paragraph (d) of this subdivision shall
54 apply.
55 5. Safety standards. (a) On or before three months after the effective
56 date of [this section, each electric corporation shall establish stand-
A. 5785 6
1 ards that are necessary for net energy metering and the interconnection
2 of residential solar or farm waste electric generating equipment to its
3 system and that the commission shall determine are necessary for safe
4 and adequate service and further the public policy set forth in this
5 section. Such standards may include but shall not be limited to:
6 (i) equipment necessary to isolate automatically the residential solar
7 and farm waste generating system from the utility system for voltage and
8 frequency deviations; and
9 (ii) a manual lockable disconnect switch provided by the customer-gen-
10 erator which shall be located on the outside of the customer's premises
11 and externally accessible for the purpose of isolating the residential
12 solar and farm waste electric generating equipment.
13 (b) Upon its own motion or upon a complaint, the commission, or its
14 designated representative, may investigate and make a determination as
15 to the reasonableness and necessity of the standards or responsibility
16 for compliance with the standards.
17 (i) In the case of a customer-generator who owns or operates solar
18 electric generating equipment located and used at his or her residence;
19 an electric corporation may not require a customer-generator to comply
20 with additional safety or performance standards, perform or pay for
21 additional tests, or purchase additional liability insurance provided
22 that the residential solar or farm waste electric generating equipment
23 meets the safety standards established pursuant to this paragraph.
24 (ii) In the case of a customer-generator who owns or operates farm
25 waste electric generating equipment located and used at his or her "farm
26 operation," an electric corporation may not require a customer-generator
27 to comply with additional safety or performance standards, perform or
28 pay for additional tests, or purchase additional liability insurance
29 provided that:
30 1. the electric generating equipment meets the safety standards estab-
31 lished pursuant to this paragraph; and
32 2. the total rated generating capacity (measured in kW) of farm waste
33 electric generating equipment that provides electricity to the electric
34 corporation through the same local feeder line, does not exceed twenty
35 percent of the rated capacity of that local feeder line.
36 (iii) In the event that the total rated generating capacity of farm
37 waste electric generating equipment that provides electricity to the
38 electric corporation through the same local feeder line exceeds twenty
39 percent of the rated capacity of the local feeder line, the electric
40 corporation may require the customer-generator to comply with reasonable
41 measures to ensure safety of that local feeder line.] paragraph (b) of
42 this subdivision, the commission shall establish standards for intercon-
43 nection of generators, taking into account applicable industry standards
44 including IEEE 1541, and best practices included in the Interstate
45 Renewable Energy Council's model interconnection rules MR-12005. Such
46 standards shall not be more restrictive of interconnection than stand-
47 ards established in FERC Orders 2006 and 2006a as of the effective date
48 of paragraph (b) of this subdivision.
49 (b) The commission shall promulgate regulations ensuring that simpli-
50 fied contracts will be used for the interconnection of generators that
51 have a production capacity not exceeding two thousand kilowatts and
52 shall consider the best practices for consumer friendly contracts
53 adopted by national associations of state utility regulators. Such
54 contracts shall not require liability or other insurance in excess of
55 what is typically carried by customer-generators for general liability.
56 § 2. Section 66-l of the public service law is REPEALED.
A. 5785 7
1 § 3. Subdivision (h) of section 1020-g of the public authorities law,
2 as amended by chapter 452 of the laws of 2008, is amended to read as
3 follows:
4 (h) To implement programs and policies designed to provide for the
5 interconnection of[: (i) (A)] solar, wind, fuel cell or farm waste elec-
6 tric generating equipment owned or operated by [residential customers,
7 (B) farm waste electric generating equipment owned or operated by
8 customer-generators, and (C) solar electric generating equipment owned
9 or operated by non-residential customers,] customer-generators and for
10 net energy metering consistent with section sixty-six-j of the public
11 service law, and to increase the efficiency of energy end use, to shift
12 demand from periods of high demand to periods of low demand and to
13 facilitate the development of cogeneration; [and (ii) wind electric
14 generating equipment owned or operated by customer-generators and for
15 net energy metering consistent with section sixty-six-l of the public
16 service law.]
17 § 4. This act shall take effect immediately.
