Chapter 493
2014 -- S 2915 SUBSTITUTE A
Enacted 07/08/14
A
N A C T
RELATING TO PUBLIC
UTILITIES AND CARRIERS - NET METERING
Introduced
By: Senator Louis P.DiPalma
Date
Introduced: April 30, 2014
It is enacted by the General
Assembly as follows:
SECTION 1. Section 39-26.4-2 of the General Laws in Chapter
39-26.4 entitled "Net
Metering" is hereby
amended to read as follows:
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 public entity municipality or
multi-municipal collaborative or (ii) owned
and operated by a renewable generation developer on behalf of a public
entity municipality or
multi-municipal collaborative through public entity municipal net
metering financing
arrangement shall be treated as an eligible net metering system and all municipal accounts
designated by the public entity 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 public entity municipality or
multi-municipal collaborative through a public entity
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 public entity municipality or
multi- municipal collaborative through a public entity
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) "Public
entity Municipal net metering financing arrangement"
means arrangements
entered into by a public entity 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 public
entity municipality or
multi-municipal collaborative, where: (i) The eligible
net metering resource is located on property
owned or controlled by the municipality public
entity or one of the municipalities, as applicable,
and (ii) The production from the eligible net metering resource and
primary compensation paid by
the public entity 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 Rhode Island, multi-municipal
collaborative, or the State of Rhode
Island or 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)
"Public entity" means the state of Rhode Island, municipalities,
wastewater
treatment facilities, public transit agencies or any water distributing
plant or system employed for
the distribution of water to the consuming public within this state
including the water supply
board of the city of Providence.
(12)(13) "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)(14) "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)(15) "Municipality and
towns and cities" means any Rhode Island town or city,
including any agency or instrumentality thereof, with the powers set forth
in title 45 of the
general laws.
SECTION
2. This act shall take effect upon passage.