Chapter 147
2011 -- S 0457 SUBSTITUTE A
Enacted 06/29/11
A N A C T
RELATING TO
PUBLIC UTILITIES AND CARRIERS - RENEWABLE ENERGY STANDARD
Introduced By: Senator Maryellen Goodwin
Date Introduced: March 10, 2011
It is enacted by the General
Assembly as follows:
SECTION 1. Sections 39-26-2, 39-26-3, 39-26-5 and 39-26-6 of
the General Laws in
Chapter 39-26 entitled
"Renewable Energy Standard" are hereby
amended to read as follows:
39-26-2.
Definitions. -- When used in this chapter:
(1) "Alternative
compliance payment" means a payment to the Renewable Energy
Development Fund of fifty dollars ($50.00) per
megawatt-hour of renewable energy obligation, in
2003 dollars, adjusted annually up or down by the
consumer price index, which may be made in
lieu of standard means of compliance with this statute;
(2)
"Commission" means the
(3) "Compliance
year" means a calendar year beginning January 1 and ending December
31, for which an obligated entity must demonstrate
that it has met the requirements of this statute;
(4) "Customer-sited
generation facility" means a generation unit that is interconnected on
the end-use customer's side of the retail electricity
meter in such a manner that it displaces all or
part of the metered consumption of the end-use customer;
(5) "Educational
institution" means any public school, approved private non-profit
school, or institution of higher education as defined in 20
U.S.C. Chapter 28, Subchapter 1, Part
A section 1001 (a).
(6)(5)
"Electrical energy product" means an electrical energy offering,
including, but not
limited to, last resort and standard offer service, that can
be distinguished by its generation
attributes or other characteristics, and that is offered for
sale by an obligated entity to end-use
customers;
(7)(6)
"Eligible biomass fuel" means fuel sources including brush, stumps,
lumber ends
and trimmings, wood pallets, bark, wood chips, shavings,
slash and other clean wood that is not
mixed with other solid wastes; agricultural waste, food and
vegetative material; energy crops;
landfill methane; biogas; or neat bio-diesel and other neat
liquid fuels that are derived from such
fuel sources;
(8)(7)
"Eligible renewable energy resource" means resources as defined in
section 39-26-
5;
(9)(8)
"End-use customer" means a person or entity in
electrical energy at retail from an obligated entity;
(10)(9)
"Existing renewable energy resources" means generation units using
eligible
renewable energy resources and first going into commercial
operation before December 31, 1997;
(11) "Farm"
shall be defined in accordance with section 44-27-2, except that all buildings
associated with the farm shall be eligible for net metering
credits as long as: (i) the buildings are
owned by the same entity operating the farm or persons
associated with operating the farm; and
(ii) the buildings are on the
same farmland as the renewable generation on either a tract of land
contiguous with such farmland or across a public way from such
farmland.
(12)(10)
"Generation attributes" means the nonprice
characteristics of the electrical
energy output of a generation unit including, but not
limited to, the unit's fuel type, emissions,
vintage and policy eligibility;
(13)(11)
"Generation unit" means a facility that converts a fuel or an energy
resource into
electrical energy;
(14)(12)
"NE-GIS" means the generation information system operated by NEPOOL,
its
designee or successor entity, which includes a generation
information database and certificate
system, and that accounts for the generation attributes of
electrical energy consumed within
NEPOOL;
(15)(13)
"NE-GIS certificate" means an electronic record produced by the
NE-GIS that
identifies the relevant generation attributes of each
megawatt-hour accounted for in the NE-GIS;
(16)(14)
"NEPOOL" means the New England Power Pool or its successor;
(17) "Net
metering" means the process of measuring the difference between
electricity
delivered by an electrical distribution company and electricity
generated by a solar-net-metering
facility or wind-net-metering facility and fed back to the
distribution company;
(18)(15)
"New renewable energy resources" means generation
units using eligible
renewable energy resources and first going into commercial
operation after December 31, 1997;
or the incremental output of generation units using
eligible renewable energy resources that have
demonstrably increased generation in excess of ten percent (10%)
using eligible renewable
energy resources through capital investments made after
December 31, 1997; but in no case
involve any new impoundment or diversion of water with an
average salinity of twenty (20) parts
per thousand or less;
(19) "Non-profit
affordable housing" shall mean a housing development or housing
project as defined by section 42-55-3 undertaken by a
non-profit entity where the residential units
taking electric service are either in the same building in
close proximity to the renewable energy
source or, if not within the same building, are within
one-half (1/2) of a mile radius from the
renewable energy source; provided, however, that the
application has been filed with and
reviewed by the division of public utilities and carriers and
the division has certified the
development or project as eligible. The division shall promulgate
regulations setting forth an
application process and eligibility criteria to assure that the
net metering allowed will benefit the
low income affordable housing residents only. The
renewable generation credit applicable for
nonprofit affordable housing shall be calculated based on the
rate class applicable to residential
units.
(20)(16)
"Obligated entity" means a person or entity that sells electrical
energy to end-use
customers in
electric utility distribution companies, as defined in section
39-1-2, supplying standard offer
service, last resort service, or any successor service to
end-use customers; including Narragansett
Electric, but not to include Block Island Power
Company as described in section 39-26-7 or
Pascoag Utility District;
(21)(17)
"Off-grid generation facility" means a generation unit that is not
connected to a
utility transmission or distribution system;
(22) "Renewable
generation credit" means credit equal to the excess kWhs
by the time of
use billing period (if applicable) multiplied by the sum
of the distribution company's:
(i)
standard offer service kWh charge for the rate class
applicable to the net metering
customer;
(ii) distribution kWh charge;
(iii) transmission kWh charge; and
(iv) transition kWh charge. This does not include any charges
relating to conservation
and load management, demand side management, and
renewable energy.
(23)(18)
"Reserved certificate" means a NE-GIS certificate sold independent of
a
transaction involving electrical energy, pursuant to Rule 3.4 or
a successor rule of the operating
rules of the NE-GIS;
(24)(19)
"Reserved certificate account" means a specially designated account
established
by an obligated entity, pursuant to Rule 3.4 or a
successor rule of the operating rules of the NE-
GIS, for transfer and retirement of reserved
certificated from the NE-GIS;
(25)(20)
"Self-generator" means an end-use customer in
part of its retail electricity consumption, as metered by
the distribution utility to which it
interconnects, through the use of a customer-sited generation
facility, the ownership of any such
facility shall not be considered an obligated entity as a
result of any such ownership arrangement;
(26)(21)
"Small hydro facility" means a facility employing one or more
hydroelectric
turbine generators and with an aggregate capacity not
exceeding thirty (30) megawatts. For
purposes of this definition, "facility" shall be
defined in a manner consistent with Title 18 of the
Code of Federal Regulations, section 92.201 et seq.;
provided, however, that the size of the
facility is limited to thirty (30) megawatts, rather than eighty
(80) megawatts.
(27) "Towns and
cities" means any
title 45 of the general laws, which may exercise all such
powers, including those set forth in
chapter 45-40.1, in developing, owning, operating or
maintaining energy generation units
utilizing eligible renewable energy resources.
(22) "Renewable
energy resource" means any one or more of the renewable energy
resources described in subsection 39-26-5(a) of this chapter.
39-26-3.
Purposes. -- The purpose purposes of
this chapter is are to define renewable
energy resources and
to facilitate the development of new renewable energy resources to supply
electricity to customers in
enhancing environmental quality, and creating jobs in
sector.
39-26-5.
Eligible renewable energy resources. -Renewable
energy resources. -- (a)
For the purposes of the regulations promulgated under
this chapter, eligible renewable energy
resources are generation units in the NEPOOL control area
using: Renewable energy resources
are:
(1) Direct solar
radiation;
(2) The wind;
(3) Movement or the
latent heat of the ocean;
(4) The heat of the
earth;
(5) Small hydro
facilities;
(6) Biomass facilities
using eligible biomass fuels and maintaining compliance with
current air permits; eligible biomass fuels may be co-fired
with fossil fuels, provided that only the
renewable energy fraction of production from multi-fuel
facilities shall be considered eligible;
(7) Fuel cells using
the renewable resources referenced above in this section;
(8) Waste-to-energy
combustion of any sort or manner shall in no instance be considered
eligible except for fuels identified in section 39-26-2(6).
(b) For the purposes
of the regulations promulgated under this chapter, eligible renewable
energy resources are generation units in the NEPOOL control
area using renewable energy
resources as defined in this section.
(b)(c) A
generation unit located in an adjacent control area outside of the NEPOOL may
qualify as an eligible renewable energy resource, but the
associated generation attributes shall be
applied to the renewable energy standard only to the extent
that the energy produced by the
generation unit is actually delivered into NEPOOL for
consumption by
The delivery of such energy from the generation unit
into NEPOOL must be generated by:
(1) A unit-specific
bilateral contract for the sale and delivery of such energy into
NEPOOL; and
(2) Confirmation from
ISO-New England that the renewable energy was actually settled
in the NEPOOL system; and
(3) Confirmation
through the North American Reliability Council tagging system that
the import of the energy into NEPOOL actually occurred;
or
(4) Any such other
requirements as the commission deems appropriate.
(c)(d)
NE-GIS certificates associated with energy production from off-grid generation
and customer-sited generation facilities certified by the
commission as eligible renewable energy
resources may also be used to demonstrate compliance, provided
that the facilities are physically
located in
39-26-6.
Duties of the commission. -- The commission shall:
(a) Develop and adopt
regulations on or before December 31, 2005, for implementing a
renewable energy standard, which regulations shall include, but
be limited to, provisions for:
(1) Verifying the
eligibility of renewable energy generators and the production of energy
from such generators, including requirements to notify the
commission in the event of a change in
a generator's eligibility status.
(2) Standards for
contracts and procurement plans for renewable energy resources, to
achieve the purposes of this chapter.
(3) Flexibility
mechanisms for the purposes of easing compliance burdens, facilitating
bringing new renewable resources on-line, and avoiding and/or
mitigating conflicts with state
level source disclosure requirements and green marketing
claims throughout the region; which
flexibility mechanisms shall allow obligated entities to: (i) demonstrate compliance over a
compliance year; (ii) bank excess compliance for two (2)
subsequent compliance years, capped at
thirty percent (30%) of the current year's obligation; and
(iii) allow renewable energy generated
during 2006 to be banked by an obligated entity as early
compliance, usable towards meeting an
obligated entity's 2007 requirement. Generation used for early
compliance must result in the
retirement of NE-GIS certificate in a reserved certificate
account designated for such purposes.
(4) Annual compliance
filings to be made by all obligated entities within one month after
NE-GIS reports are available for the fourth (4th)
quarter of each calendar year. All electric utility
distribution companies shall cooperate with the commission in
providing data necessary to assess
the magnitude of obligation and verify the compliance of
all obligated entities.
(b) Authorize rate
recovery by electric utility distribution companies of all prudent
incremental costs arising from the implementation of this
chapter, including, without limitation,
the purchase of NE-GIS certificates, the payment of
alternative compliance payments, required
payments to support the NE-GIS, assessments made pursuant to
section 39-26-7(c) and the
incremental costs of complying with energy source disclosure
requirements.
(c) Certify eligible
renewable energy resources by issuing statements of qualification
within ninety (90) days of application. The commission shall
provide prospective reviews for
applicants seeking to determine whether a facility would be
eligible.
(d) Determine, on or
before January 1, 2010, the adequacy, or potential adequacy, of
renewable energy supplies to meet the increase in the
percentage requirement of energy from
renewable energy resources to go into effect in 2011 and
determine on or before January 1, 2014,
the adequacy or potential adequacy, of renewable energy
supplies to meet the increase in the
percentage requirement of energy from renewable energy resources
to go into effect in 2015. In
making such determinations the commission shall consider
among other factors the historical use
of alternative compliance payments in
the event that the commission determines an inadequacy or
potential inadequacy of supplies for
scheduled percentage increases, the commission shall delay the
implementation of the scheduled
percentage increase for a period of one year or recommend to the
general assembly a revised
schedule of percentage increases, if any, to achieve the
purposes of this chapter.
(e) Establish sanctions
for those obligated entities that after investigation have been found
to fail to reasonably comply with the commission's
regulations. No sanction or penalty shall
relieve or diminish an obligated entity from liability for
fulfilling any shortfall in its compliance
obligation; provided, however, that no sanction shall be imposed
if compliance is achieved
through alternative compliance payments. The commission may
suspend or revoke the
certification of generation units, certified in accordance with
subsection (c) above, that are found
to provide false information, or that fail to notify the
commission in the event of a change in
eligibility status or otherwise comply with its rules. Financial
penalties resulting from sanctions
from obligated entities shall not be recoverable in rates.
(f) Report, by February
15, 2006, and by February 15 each year thereafter, to the
governor, the speaker of the house and the president of the
senate on the status of the
implementation of the renewable energy standards in
report shall include in 2009, and each year thereafter, the
level of use of renewable energy
certificates by eligible renewable energy resources and the
portion of renewable energy standards
met through alternative compliance payments, and the
amount of rate increases authorized
pursuant to subsection (b) above.
(g) Implement the
following changes regarding distributed generation from renewable
energy systems by June 1, 2009.
(1) Increase the
maximum allowable distributed generation capacity for eligible net-
metered energy systems to 1.65 megawatts (MW); except that
for eligible net-metered renewable
energy systems developed but not owned by cities and towns,
located on city or town owned land,
and providing power solely to the city or town that the
project is located in, increase said
maximum to 2.25 megawatts; and except that for eligible
net-metered renewable energy systems
owned by cities and towns of
increase said maximum to 3.5 megawatts (MW).
(2) Increase the
aggregate amount of net metering to a maximum of two percent (2%) of
peak load, provided that at least one megawatt is reserved
for projects less than twenty-five (25)
kW.
(3) (i) With the exception of those customers described in
subsection (ii), if the electricity
generated by the renewable generation facility during a billing
period exceeds the customer's
kilowatt-hour usage during the billing period, the customer shall
upon a request of the customer
be billed for zero kilowatt-hour usage and the excess
renewable generation credits shall be
credited to the customer's account for the following billing
period. Unless otherwise requested by
the customer, the customer shall be compensated monthly
by a check from the electric
distribution company for the excess renewable generation credits
pursuant to the rate specified in
subdivision 39-26-2(22).
(ii) If the
electricity generated by the renewable generation facility owned by a Rhode
Island city or town, educational institution,
nonprofit affordable housing, farm, the state or the
Narragansett Bay Commission, during a billing period
exceeds the customer's kilowatt-hour
usage during the billing period, the customer shall be
billed for zero-kilowatt-hour usage, and:
(A) Upon request of
the customer, the excess renewable generation credits shall be
credited to the customer's account for the following billing
period; or
(B) Upon request of
the customer, the excess renewable generation credits shall be
applied to no more than ten (10) other accounts owned by the
customer during the billing period;
or
(C) Unless otherwise
requested by the customer, the customer shall be compensated
monthly by a check from the distribution company for the
excess renewable generation credits
pursuant to the rates specified in subdivisions 39-26-2(19)
and 39-26-2(22).
(iii) Nonprofit
affordable housing shall use said compensation, pursuant to paragraph (ii),
to benefit the residents of the housing development.
(4) If the customer's
kilowatt-hour usage exceeds the electricity generated by the
renewable generation facility during the billing period, the
customer shall be billed for the net
kilowatt-hour usage at the applicable rate. Any excess credits may
be carried forward month to
month for twelve (12) month periods as established by the
commission. At the end of the
applicable twelve (12) month period, if there are unused excess
credits on the net metering
customer accounts, such credits shall be used to offset
recoverable utility costs. Where
compensation has been provided for excess renewable generation
credits, no further charge may
be made to the customer against said credits.
(h) Any prudent and
reasonable costs incurred by the electric distribution company
pursuant to achieving compliance with subsection (g) and the
annual amount of the distribution
component of any renewable generation credits provided to net
metering customers shall be
aggregated by the distribution company and billed to all
customers on an annual basis through a
uniform per kilowatt-hour surcharge embedded in the distribution
component of the rates
reflected on customer bills.
(i) Report, by July 1, 2010 to the governor, the
speaker of the house and the president of
the senate on the status of the implementation of
subsection (g) and (h), including if said
provisions are optimally cost-effective, reliable, prudent and
environmentally responsible.
(j)(g) Consistent with the public policy objective of
developing renewable generation as
an option in
distribution company is authorized to propose and implement pilot
programs to own and operate
no more than fifteen megawatts (15 MW) of renewable
generation demonstration projects in
two (2) demonstration projects shall include renewable
generation installed at or in the vicinity of
nonprofit affordable housing projects where energy savings
benefits are provided to reduce
electric bills of the customers at the nonprofit affordable
housing projects. Any renewable
generation proposals shall be subject to the review and approval
of the commission. The
commission shall annually make an adjustment to the minimum
amounts required under the
renewable energy standard under chapter 39-26 in an amount
equal to the kilowatt hours
generated by such units owned by the electric distribution
company. The electric and gas
distribution company shall also be authorized to propose and
implement smart metering and
smart grid demonstration projects in
commission, in order to determine the effectiveness of such new
technologies for reducing and
managing energy consumption, and may include the costs
of such demonstration projects in
distribution rates to electric customers to the extent the project
pertains to electricity usage and in
distribution rates to gas customers to the extent the project
pertains to gas usage.
SECTION 2. Title 39 of the General Laws entitled
"PUBLIC UTILITIES AND
CARRIERS" is hereby
amended by adding thereto the following chapter:
CHAPTER
26.4
NET
METERING
39-26.4-1. Purpose.
-- The purpose of this chapter is to facilitate and promote
installation
of customer-sited, grid-connected generation of
renewable energy; to support and encourage
customer development of renewable generation systems; to
reduce environmental impacts; to
reduce carbon emissions that contribute to climate change by
encouraging the local siting of
renewable energy projects; to diversify the state’s energy
generation sources; to stimulate
economic development; to improve distribution system
resilience and reliability; and to reduce
distribution system costs.
39-26.4-2. Definitions.
-- Terms not defined in this section herein shall have the same
meaning as contained in chapter 26 of title 39 of the general
laws. When used in this chapter:
(1) "Eligible
net metering resource" means eligible renewable energy resource as defined
in section 39-26-5 including biogas created as a result
of anaerobic digestion, but, specifically
excluding all other listed eligible biomass fuels;
(2) “Eligible Net
Metering System” means a facility generating electricity using an
eligible net metering resource that is reasonably designed and
sized to annually produce
electricity in an amount that is equal to or less than the
renewable self-generator’s usage at the
eligible net metering system site measured by the three (3)
year average annual consumption of
energy over the previous three (3) years at the electric
distribution account(s) located at the
eligible net metering system site. A projected annual
consumption of energy may be used until
the actual three (3) year average annual consumption of
energy over the previous three (3) years
at the electric distribution account(s) located at the
eligible net metering system site becomes
available for use in determining eligibility of the generating
system. The eligible net metering
system must be owned by the same entity that is the customer
of record on the net metered
accounts. Notwithstanding any other provisions of this
chapter, any eligible net metering
resource: (i) owned by a
municipality or multi-municipal collaborative or (ii) owned and operated
by a renewable generation developer on behalf of a
municipality or multi-municipal collaborative
through municipal net metering financing arrangement shall be
treated as an eligible net metering
system and all municipal accounts designated by the
municipality or multi-municipal
collaborative for net metering shall be treated as accounts
eligible for net metering within an
eligible net metering system site.
(3) “Eligible Net
Metering System Site” means the site where the eligible net metering
system is located or is part of the same campus or complex
of sites contiguous to one another and
the site where the eligible net metering system is
located or a farm in which the eligible net
metering system is located. Except for an eligible net
metering system owned by or operated on
behalf of a municipality or multi-municipal collaborative
through a municipal net metering
financing arrangement, the purpose of this definition is to
reasonably assure that energy generated
by the eligible net metering system is consumed by net
metered electric service account(s) that
are actually located in the same geographical location as
the eligible net metering system. Except
for an eligible net metering system owned by or operated
on behalf of a municipality or multi-
municipal collaborative through a municipal net metering
financing arrangement, all of the net
metered accounts at the eligible net metering system site
must be the accounts of the same
customer of record and customers are not permitted to enter
into agreements or arrangements to
change the name on accounts for the purpose of artificially
expanding the eligible net metering
system site to contiguous sites in an attempt to avoid this
restriction. However, a property owner
may change the nature of the metered service at the
accounts at the site to be master metered in
the owner’s name, or become the customer of record for
each of the accounts, provided that the
owner becoming the customer of record actually owns the
property at which the account is
located. As long as the net metered accounts meet the
requirements set forth in this definition,
there is no limit on the number of accounts that may be net
metered within the eligible net
metering system site.
(4) “Excess
Renewable Net Metering Credit” means a credit that applies to an eligible
net metering system for that portion of the renewable
self-generator’s production of electricity
beyond one hundred percent (100%) and no greater than one
hundred twenty-five percent (125%)
of the renewable self-generator’s own consumption at the
eligible net metering system site during
the applicable billing period. Such excess
renewable net metering credit shall be equal to the
electric distribution company’s avoided cost rate, which is
hereby declared to be the electric
distribution company’s standard offer service kilo-watt hour (kWh)
charge for the rate class and
time-of-use billing period (if applicable) applicable to the
distribution customer account(s) at the
eligible net metering system site. Where there are
accounts at the eligible net metering system
site in different rate classes, the electric distribution
company may calculate the excess renewable
net metering credit based on the average of the standard
offer service rates applicable to those on-
site accounts. The electric distribution company has the
option to use the energy received from
such excess generation to serve the standard offer service
load. The commission shall have the
authority to make determinations as to the applicability of
this credit to specific generation
facilities to the extent there is any uncertainty or
disagreement.
(5) "Farm"
shall be defined in accordance with section 44-27-2, except that all buildings
associated with the farm shall be eligible for net metering
credits as long as: (i) The buildings are
owned by the same entity operating the farm or persons
associated with operating the farm; and
(ii) The buildings are on the same farmland as the
project on either a tract of land contiguous with
or reasonably proximate to such farmland or across a
public way from such farmland.
(6) “Multi-municipal
collaborative” means a group of towns and/or cities that enter into
an agreement for the purpose of co-owning a renewable
generation facility or entering into a
financing arrangement pursuant to subdivision (7).
(7) “Municipal net
metering financing arrangement” means arrangements entered into by
a municipality or multi-municipal collaborative with a
private entity to facilitate the financing and
operation of a net metering resource, in which the private
entity owns and operates an eligible net
metering resource on behalf of a municipality or
multi-municipal collaborative, where: (i) The
eligible net metering resource is located on property owned or
controlled by the municipality or
one of the municipalities, as applicable, and (ii) The
production from the eligible net metering
resource and primary compensation paid by the municipality or
multi-municipal collaborative to
the private entity for such production is directly tied
to the consumption of electricity occurring at
the designated net metered accounts.
(8) "Net
metering" means using electricity generated by an eligible net metering
system
for the purpose of self-supplying power at the eligible
net metering system site and thereby
offsetting consumption at the eligible net metering system site through
the netting process
established in this chapter.
(9) “Net metering
customer” means a customer of the electric distribution company
receiving and being billed for distribution service whose
distribution account(s) are being net
metered.
(10) “Person” means
an individual, firm, corporation, association, partnership, farm, town
or city of the State of
any department of the state government, governmental
agency or public instrumentality of the
state.
(11) “Project” means
a distinct installation of an eligible net metering system. An
installation will be considered distinct if it is installed in a
different location, or at a different
time, or involves a different type of renewable energy.
(12) "Renewable
Net Metering Credit" means a credit that applies to an Eligible Net
Metering System up to one hundred percent (100%) of
the renewable self-generator’s usage at the
Eligible Net Metering System Site
over the applicable billing period. This credit shall be equal to
the total kilowatt hours of electricity generated and
consumed on-site during the billing period
multiplied by the sum of the distribution company's:
(i) Standard offer service kilowatt hour charge for the rate
class applicable to the net
metering customer;
(ii)
Distribution kilowatt hour charge;
(iii)
Transmission kilowatt hour charge; and
(iv) Transition kilowatt hour charge.
(13) “Renewable
self-generator" means an electric distribution service customer who
installs or arranges for an installation of renewable
generation that is primarily designed to
produce electricity for consumption by that same customer at
its distribution service account(s).
(14)
"Municipality and towns and cities" means any
any agency or instrumentality thereof, with the powers
set forth in title 45 of the general laws.
39-26.4-3. Net Metering.
-- (a) The following policies regarding net
metering of
electricity from eligible net metering systems and regarding any
person that is a renewable self-
generator shall apply:
(1) The maximum
allowable capacity for eligible net metering systems, based on
nameplate capacity, shall be five megawatts (5 mw).
(2) The aggregate
amount of net metering in
(3%) of peak load, provided that at least two
megawatts (2 mw) are reserved for projects of less
than fifty kilowatts (50 kw).
(3) For ease of
administering net metered accounts and stabilizing net metered account
bills, the electric distribution company may elect (but is
not required) to estimate for any twelve
(12) month period:
(i)
The production from the eligible net metering system; and
(ii) Aggregate
consumption of the net metered accounts at the eligible net metering
system site and establish a monthly billing plan that
reflects the expected credits that would be
applied to the net metered accounts over twelve (12) months.
The billing plan would be designed
to even out monthly billings over twelve (12) months,
regardless of actual production and usage.
If such election is made by the electric distribution
company, the electric distribution company
would reconcile payments and credits under the billing plan
to actual production and
consumption at the end of the twelve (12) month period and apply
any credits or charges to the
net metered accounts for any positive or negative difference,
as applicable. Should there be a
material change in circumstances at the eligible net metering
system site or associated accounts
during the twelve (12) month period, the estimates and
credits may be adjusted by the electric
distribution company during the reconciliation period. The
electric distribution company also may
elect (but is not required) to issue checks to any net
metering customer in lieu of billing credits or
carry forward credits or charges to the next billing
period. For residential eligible net metering
systems twenty-five kilowatts (25 kw)
or smaller, the electric distribution company, at its option,
may administer renewable net metering credits month to
month allowing unused credits to carry
forward into following billing period.
(4) If the
electricity generated by an eligible net metering system during a billing
period
is equal to or less than the net metering customer’s
usage during the billing period for electric
distribution company customer accounts at the eligible net
metering system site, the customer
shall receive renewable net metering credits, which shall
be applied to offset the net metering
customer’s usage on accounts at the eligible net metering system
site.
(5) If the
electricity generated by an eligible net metering system during a billing
period
is greater than the net metering customer’s usage on
accounts at the eligible net metering system
site during the billing period, the customer shall be paid
by excess renewable net metering credits
for the excess electricity generated beyond the net
metering customer’s usage at the eligible net
metering system site up to an additional twenty-five percent
(25%) of the renewable self-
generator’s consumption during the billing period; unless the
electric distribution company and
net metering customer have agreed to a billing plan
pursuant to subdivision (3).
(6) The rates
applicable to any net metered account shall be the same as those that apply
to the rate classification that would be applicable to
such account in the absence of net metering
including customer and demand charges and no other charges may
be imposed to offset net
metering credits.
(b) The commission
shall exempt electric distribution company customer accounts
associated with an eligible net metering system from back-up or
standby rates commensurate with
the size of the eligible net metering system, provided
that any revenue shortfall caused by any
such exemption shall be fully recovered by the electric
distribution company through rates.
(c) Any prudent and
reasonable costs incurred by the electric distribution company
pursuant to achieving compliance with subsection (a) and the
annual amount of the distribution
component of any renewable net metering credits or excess
renewable net metering credits
provided to accounts associated with eligible net metering
systems, shall be aggregated by the
distribution company and billed to all distribution customers on
an annual basis through a
uniform per kilowatt-hour (kwh)
surcharge embedded in the distribution component of the rates
reflected on customer bills.
(7) The billing
process set out in this section shall be applicable to electric distribution
companies thirty (30) days after the enactment of this chapter.
39-26.4-4. Liberal construction of chapter
required. -- This chapter shall be construed
liberally in aid of its declared purposes.
39-26.4-5. Severability.
-- If any provision of this chapter or the application thereof to
any person or circumstances is held invalid, such
invalidity shall not affect other provisions or
applications of the chapter, which can be given effect without the
invalid provision or application,
and to this and the provisions of this chapter are
declared to be severable.
SECTION 3. This act shall take effect upon passage.
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LC01746/SUB A/2
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