Assembly Bill A409

2009-2010 Legislative Session

Provides for net metering of electric generating systems in areas of non-attainment of ambient air quality standards

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Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to energy
Jan 07, 2009	referred to energy

2009-A409 (ACTIVE) - Details

See Senate Version of this Bill:: S2085
Current Committee:: Assembly Energy
Law Section:: Public Service Law
Laws Affected:: Add §§66-m & 66-n, Pub Serv L

2009-A409 (ACTIVE) - Summary

Provides for net metering of electric generating systems in areas of non-attainment of ambient air quality standards.

2009-A409 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A409

TITLE OF BILL:  An act to amend the public service law, in relation to
net energy metering

PURPOSE: Removes restrictions on net energy metering of solar, farm
waste, wind, and fuel cell electric generation equipment, thereby open-
ing net energy metering to all users; increases size of systems avail-
able for net energy metering; increases each utility's cumulative cap on
net metering.

SUMMARY OF PROVISIONS:  Section one: * Defines customer-generator, net
energy meter, net energy metering, solar, wind, farm waste and fuel cell
generating equipment;

* Sets size-of-equipment requirements for net energy metering;

* Requires electric corporations to provide for the interconnection of
solar, farm waste and fuel cell electric generating equipment owned and
operated by a customer-generator;

* Requires electric corporations to develop model contracts and file
schedules that establish consistent and reasonable rates, terms and
conditions for net energy metering to customer generators;

* Provides for a rate structure for net metering;

* Sets safety standards;

* Requires customer-generators to comply with any applicable determi-
nations of the Public Service Commission relating to restructuring of
the electricity industry.

Section two is the enacting clause.

JUSTIFICATION:  Solar, wind, fuel cells and farm waste are prioritized
in the State's Renewable Portfolio Standard as fuels for procurement to
increase the statewide use of renewable energy. "Net energy metering" is
a way for customers of utilities who own and operate such systems
on-site to receive a financial credit for excess power that is automat-
ically sent back into the transmission grid and used by other electric
consumers.  Net energy metering helps make renewable power affordable.
The financial payments or credits derived from net energy metering
offset the high costs associated with capital investments in renewable
power generation.

However, current law restricts net energy metering on solar, wind or
farm waste generating equipment to certain qualified customers (residen-
tial), and to smaller-sized systems, and does not include fuel cells. In
each utility's service territory, current law caps net metering based on
a minuscule percent of a utility's total electric demand. There are no

technical or reliability reasons to maintain such caps, especially given
escalating prices for natural gas and oil.

Customers who are interconnected to the grid and who are generating
power from renewable sources automatically send any excess or unused
power back into the grid where it is then used by other customers.
Without net energy metering, the excess energy flows essentially free to
the utility and does not provide customer generators with any financial
credit. This situation serves as a disincentive for people or businesses
to make the large capital investment in renewable electric generation.

For renewable power to become a sustainable source of electric gener-
ation, it is incumbent upon the State to remove any conditions which
fetter its penetration into the marketplace. In fact, while all states
have net energy metering programs, New York has one of the most limited
programs in the nation.

LEGISLATIVE HISTORY: 2008; A11357A (Kavanagh) - Energy

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.

2009-A409 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   409

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced by M. of A. KAVANAGH -- read once and referred to the Commit-
  tee on Energy

AN ACT to amend the public service law, in relation to net energy meter-
  ing

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The public  service  law  is  amended  by  adding  two  new
sections 66-m and 66-n to read as follows:
  S  66-M. NET ENERGY METERING FOR SOLAR, FUEL CELL, OR FARM WASTE ELEC-
TRIC GENERATING SYSTEMS. 1. DEFINITIONS. AS USED IN  THIS  SECTION,  THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "CUSTOMER-GENERATOR"  MEANS: (I) A CUSTOMER OF AN ELECTRIC CORPO-
RATION, WHO OWNS OR OPERATES SOLAR ELECTRIC GENERATING EQUIPMENT LOCATED
AND USED AT THE SAME SITE WHERE THE EQUIPMENT IS LOCATED; (II) A CUSTOM-
ER OF AN ELECTRIC CORPORATION, WHO OWNS OR OPERATES FARM WASTE  ELECTRIC
GENERATING EQUIPMENT LOCATED AND USED AT HIS OR HER "FARM OPERATION," AS
SUCH  TERM IS DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE
OF THE AGRICULTURE AND MARKETS LAW; AND (III) A CUSTOMER OF AN  ELECTRIC
CORPORATION,  WHO  OWNS OR OPERATES FUEL CELL ELECTRIC GENERATING EQUIP-
MENT LOCATED AND USED AT THE SAME SITE WHERE THE EQUIPMENT IS LOCATED.
  (B) "NET ENERGY METER" MEANS  A  NON-DEMAND,  NON-TIME  DIFFERENTIATED
METER  THAT  MEASURES  THE  REVERSE  FLOW OF ELECTRICITY TO REGISTER THE
DIFFERENCE BETWEEN THE ELECTRICITY SUPPLIED BY AN  ELECTRIC  CORPORATION
TO  THE  CUSTOMER-GENERATOR  AND  THE ELECTRICITY PROVIDED TO THE CORPO-
RATION BY THAT CUSTOMER-GENERATOR.
  (C) "NET ENERGY METERING" MEANS THE USE OF A NET ENERGY METER TO MEAS-
URE, DURING THE BILLING PERIOD APPLICABLE TO A  CUSTOMER-GENERATOR,  THE
NET  AMOUNT  OF  ELECTRICITY  SUPPLIED  BY  AN  ELECTRIC CORPORATION AND
PROVIDED TO THE CORPORATION BY A CUSTOMER-GENERATOR.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01778-01-9

A. 409                              2

  (D) "SOLAR ELECTRIC GENERATING EQUIPMENT" MEANS A PHOTOVOLTAIC  SYSTEM
THAT  IS MANUFACTURED, INSTALLED, AND OPERATED IN ACCORDANCE WITH APPLI-
CABLE GOVERNMENT AND INDUSTRY STANDARDS, THAT IS CONNECTED TO THE  ELEC-
TRIC  SYSTEM  AND OPERATED IN CONJUNCTION WITH AN ELECTRIC CORPORATION'S
TRANSMISSION  AND  DISTRIBUTION  FACILITIES,  AND  THAT  IS  OPERATED IN
COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS  ESTABLISHED  UNDER  THIS
SECTION.
  (E)  "FARM  WASTE  ELECTRIC GENERATING EQUIPMENT" MEANS EQUIPMENT THAT
GENERATES  ELECTRIC  ENERGY  FROM  BIOGAS  PRODUCED  BY  THE   ANAEROBIC
DIGESTION  OF  AGRICULTURAL  WASTE,  SUCH  AS  LIVESTOCK MANURE, FARMING
WASTES AND FOOD PROCESSING WASTES, THAT IS:
  (I) MANUFACTURED, INSTALLED, AND OPERATED IN ACCORDANCE WITH  APPLICA-
BLE GOVERNMENT AND INDUSTRY STANDARDS;
  (II) CONNECTED TO THE ELECTRIC SYSTEM AND OPERATED IN CONJUNCTION WITH
AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES;
  (III)  OPERATED  IN  COMPLIANCE  WITH  ANY  STANDARDS AND REQUIREMENTS
ESTABLISHED UNDER THIS SECTION;
  (IV) FUELED AT A MINIMUM OF NINETY  PERCENT  ON  AN  ANNUAL  BASIS  BY
BIOGAS  PRODUCED FROM THE ANAEROBIC DIGESTION OF AGRICULTURAL WASTE SUCH
AS LIVESTOCK MANURE MATERIALS, CROP RESIDUES, AND FOOD PROCESSING WASTE;
AND
  (V) FUELED BY BIOGAS GENERATED BY ANAEROBIC DIGESTION  WITH  AT  LEAST
SEVENTY-FIVE  PERCENT  BY WEIGHT OF ITS FEEDSTOCK BEING LIVESTOCK MANURE
MATERIALS ON AN ANNUAL BASIS.
  (F) "FUEL CELL ELECTRIC GENERATING  EQUIPMENT"  MEANS  A  SOLID  OXIDE
(SOFC),  MOLTEN  CARBONATE  (MCFC),  PROTON  EXCHANGE MEMBRANE (PEM), OR
PHOSPHORIC ACID (PAFC) FUEL CELL THAT  IS  MANUFACTURED,  INSTALLED  AND
OPERATED  IN  ACCORDANCE  WITH APPLICABLE GOVERNMENT AND INDUSTRY STAND-
ARDS, THAT IS CONNECTED TO THE ELECTRIC SYSTEM AND OPERATED IN  PARALLEL
WITH AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES,
AND  THAT  IS OPERATED IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS
ESTABLISHED UNDER THIS SECTION.
  2. INTERCONNECTION AND NET ENERGY METERING.  AN  ELECTRIC  CORPORATION
SHALL PROVIDE FOR THE INTERCONNECTION OF SOLAR, FUEL CELL AND FARM WASTE
ELECTRIC GENERATING EQUIPMENT OWNED OR OPERATED BY A CUSTOMER-GENERATOR,
PROVIDED THAT FOR NET ENERGY METERING THE CUSTOMER-GENERATOR ENTERS INTO
A NET ENERGY METERING CONTRACT WITH THE CORPORATION OR COMPLIES WITH THE
CORPORATION'S  NET  ENERGY METERING SCHEDULE AND COMPLIES WITH STANDARDS
AND REQUIREMENTS ESTABLISHED UNDER THIS SECTION.
  3. CONDITIONS OF SERVICE. (A) ON OR  BEFORE  THREE  MONTHS  AFTER  THE
EFFECTIVE  DATE OF THIS SECTION, EACH ELECTRIC CORPORATION SHALL DEVELOP
A MODEL CONTRACT AND FILE A SCHEDULE  THAT  ESTABLISHES  CONSISTENT  AND
REASONABLE  RATES,  TERMS  AND  CONDITIONS  FOR  NET  ENERGY METERING TO
CUSTOMER-GENERATORS, ACCORDING TO THE REQUIREMENTS OF THIS SECTION.  THE
COMMISSION  SHALL RENDER A DECISION WITHIN THREE MONTHS FROM THE DATE ON
WHICH THE SCHEDULE IS FILED. EACH ELECTRIC CORPORATION SHALL  MAKE  SUCH
CONTRACT  AND SCHEDULE AVAILABLE TO CUSTOMER-GENERATORS ON A FIRST COME,
FIRST SERVED BASIS, UNTIL THE TOTAL RATED GENERATING CAPACITY FOR SOLAR,
FUEL CELL, AND FARM WASTE ELECTRIC GENERATING EQUIPMENT OWNED  OR  OPER-
ATED  BY CUSTOMER-GENERATORS IN THE CORPORATION'S SERVICE AREA IS EQUIV-
ALENT TO ONE PERCENT OF THE CORPORATION'S ELECTRIC DEMAND FOR  THE  YEAR
TWO THOUSAND SEVEN, AS DETERMINED BY THE DEPARTMENT.
  (B)  IN  THE EVENT THAT THE ELECTRIC CORPORATION DETERMINES THAT IT IS
NECESSARY TO INSTALL A  DEDICATED  TRANSFORMER,  TRANSFORMERS  OR  OTHER
EQUIPMENT  TO  PROTECT  THE  SAFETY  AND  ADEQUACY  OF  ELECTRIC SERVICE
PROVIDED TO OTHER CUSTOMERS, A CUSTOMER-GENERATOR SHALL PAY THE ELECTRIC

A. 409                              3

CORPORATION'S ACTUAL COSTS OF INSTALLING THE  TRANSFORMER,  TRANSFORMERS
OR OTHER EQUIPMENT;
  (I)  IN  THE  CASE  OF A CUSTOMER-GENERATOR WHO OWNS OR OPERATES SOLAR
ELECTRIC GENERATING EQUIPMENT, UP TO A MAXIMUM AMOUNT OF  THREE  HUNDRED
FIFTY DOLLARS.
  (II)  IN  THE  CASE OF A CUSTOMER-GENERATOR OR COMMERCIAL CUSTOMER WHO
OWNS OR OPERATES FARM WASTE ELECTRIC GENERATING  EQUIPMENT  LOCATED  AND
USED AT HIS OR HER "FARM OPERATION," UP TO A TOTAL AMOUNT OF THREE THOU-
SAND DOLLARS PER "FARM OPERATION".
  (III)  IN  THE CASE OF A CUSTOMER-GENERATOR OR COMMERCIAL CUSTOMER WHO
OWNS OR OPERATES FUEL CELL ELECTRIC GENERATING EQUIPMENT, THE FEE  SHALL
BE ESTABLISHED BY THE COMMISSION.
  4.  RATES.  AN ELECTRONIC CORPORATION SHALL USE NET ENERGY METERING TO
MEASURE AND CHARGE FOR THE NET ELECTRICITY SUPPLIED BY  THE  CORPORATION
AND  PROVIDED  TO  THE CORPORATION BY A CUSTOMER-GENERATOR, ACCORDING TO
THESE REQUIREMENTS:
  (A) IN THE EVENT THAT THE AMOUNT OF ELECTRICITY SUPPLIED BY THE CORPO-
RATION DURING THE BILLING  PERIOD  EXCEEDS  THE  AMOUNT  OF  ELECTRICITY
PROVIDED  BY  A CUSTOMER-GENERATOR, THE CORPORATION SHALL RECORD THE NET
AMOUNT OF ELECTRICITY PROVIDED TO IT  BY  THE  CUSTOMER-GENERATOR  AS  A
CREDIT  AT  THE CORPORATION'S AVOIDED COST RATE.  THE CREDIT PROVIDED TO
THE CUSTOMER-GENERATOR SHALL BE EQUAL TO THE COST OTHERWISE  AVOIDED  BY
THE  ELECTRIC  CORPORATION  IN NOT HAVING TO PURCHASE SUCH ENERGY IN THE
COMPETITIVE MARKET OR GENERATE THE SAME THROUGH FACILITIES  IT  OWNS  OR
CONTROLS.
  (B)  IN THE EVENT THAT THE AMOUNT OF ELECTRICITY PRODUCED BY A CUSTOM-
ER-GENERATOR DURING THE BILLING PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY
USED BY THE CUSTOMER-GENERATOR, (I) FOR A CUSTOMER-GENERATOR WITH GENER-
ATING EQUIPMENT OF NOT MORE THAN TWENTY-FIVE KILOWATTS, THE  CORPORATION
SHALL APPLY A CREDIT TO THE NEXT BILL FOR SERVICE TO THE CUSTOMER-GENER-
ATOR FOR THE NET ELECTRICITY PROVIDED AT THE SAME RATE PER KILOWATT HOUR
APPLICABLE  TO  SERVICE  PROVIDED TO OTHER CUSTOMERS IN THE SAME SERVICE
CLASS  WHICH  DO  NOT  GENERATE  ELECTRICITY  ON  SITE;   (II)   FOR   A
CUSTOMER-GENERATOR  WITH  GENERATING  EQUIPMENT OF MORE THAN TWENTY-FIVE
KILOWATTS, THE CORPORATION SHALL RECORD THE NET  AMOUNT  OF  ELECTRICITY
PROVIDED  TO  IT  BY  THE  CUSTOMER-GENERATOR  AS A CREDIT AT THE CORPO-
RATION'S AVOIDED COST RATE.  THE CREDIT PROVIDED TO THE CUSTOMER-GENERA-
TOR SHALL BE EQUAL TO THE COST OTHERWISE AVOIDED BY THE ELECTRIC  CORPO-
RATION  IN  NOT HAVING TO PURCHASE SUCH ENERGY IN THE COMPETITIVE MARKET
OR GENERATE THE SAME THROUGH FACILITIES IT OWNS OR CONTROLS.
  (C) AT THE END OF THE YEAR OR ANNUALIZED OVER THE PERIOD THAT  SERVICE
IS  SUPPLIED  BY  MEANS  OF  NET  ENERGY METERING, THE CORPORATION SHALL
PROMPTLY ISSUE PAYMENT AT ITS AVOIDED COST TO THE CUSTOMER-GENERATOR FOR
THE VALUE OF ANY REMAINING CREDIT FOR THE  EXCESS  ELECTRICITY  PRODUCED
DURING THE YEAR OR OVER THE ANNUALIZED PERIOD BY THE CUSTOMER-GENERATOR.
  (D) WITH RESPECT TO CUSTOMER-GENERATORS THAT OWN OR OPERATE FARM WASTE
ELECTRIC GENERATING EQUIPMENT, IN THE EVENT THAT THE CORPORATION IMPOSES
CHARGES  BASED  ON  KILOWATT,  DEMAND  ON  CUSTOMERS WHO ARE IN THE SAME
SERVICE CLASS AS THE CUSTOMER-GENERATOR BUT WHICH DO NOT GENERATE  ELEC-
TRICITY ON SITE, THE CORPORATION MAY IMPOSE THE SAME CHARGES AT THE SAME
RATES  TO  THE  CUSTOMER-GENERATOR, PROVIDED, HOWEVER, THAT THE KILOWATT
DEMAND FOR SUCH DEMAND CHARGES IS DETERMINED  BY  THE  MAXIMUM  MEASURED
KILOWATT   DEMAND   ACTUALLY   SUPPLIED   BY   THE  CORPORATION  TO  THE
CUSTOMER-GENERATOR DURING THE BILLING PERIOD.
  5. SAFETY STANDARDS. (A) ON OR BEFORE THREE MONTHS AFTER THE EFFECTIVE
DATE OF THIS SECTION, EACH ELECTRIC CORPORATION SHALL  ESTABLISH  STAND-

A. 409                              4

ARDS  THAT ARE NECESSARY FOR NET ENERGY METERING AND THE INTERCONNECTION
OF SOLAR, FUEL CELL OR FARM WASTE ELECTRIC GENERATING EQUIPMENT  TO  ITS
SYSTEM  AND  THAT  THE COMMISSION SHALL DETERMINE ARE NECESSARY FOR SAFE
AND  ADEQUATE  SERVICE  AND  FURTHER THE PUBLIC POLICY SET FORTH IN THIS
SECTION. SUCH STANDARDS MAY INCLUDE BUT SHALL NOT BE LIMITED TO:
  (I) EQUIPMENT NECESSARY TO ISOLATE AUTOMATICALLY THE SOLAR, FUEL  CELL
AND FARM WASTE GENERATING SYSTEM FROM THE UTILITY SYSTEM FOR VOLTAGE AND
FREQUENCY DEVIATIONS; AND
  (II) A MANUAL LOCKABLE DISCONNECT SWITCH PROVIDED BY THE CUSTOMER-GEN-
ERATOR  WHICH SHALL BE LOCATED ON THE OUTSIDE OF THE CUSTOMER'S PREMISES
AND EXTERNALLY ACCESSIBLE FOR THE PURPOSE OF ISOLATING THE  SOLAR,  FUEL
CELL AND FARM WASTE ELECTRIC GENERATING EQUIPMENT.
  (B)  UPON  ITS  OWN MOTION OR UPON A COMPLAINT, THE COMMISSION, OR ITS
DESIGNATED REPRESENTATIVE, MAY INVESTIGATE AND MAKE A  DETERMINATION  AS
TO  THE  REASONABLENESS AND NECESSITY OF THE STANDARDS OR RESPONSIBILITY
FOR COMPLIANCE WITH THE STANDARDS.
  (I) IN THE CASE OF A CUSTOMER-GENERATOR WHO OWNS  OR  OPERATES  SOLAR,
FUEL  CELL  OR FARM WASTE ELECTRIC GENERATING EQUIPMENT LOCATED AND USED
AT THE SAME SITE WHERE THE EQUIPMENT IS LOCATED, AN ELECTRIC CORPORATION
MAY NOT REQUIRE A CUSTOMER-GENERATOR TO COMPLY WITH ADDITIONAL SAFETY OR
PERFORMANCE STANDARDS, PERFORM OR PAY FOR ADDITIONAL TESTS, OR  PURCHASE
ADDITIONAL LIABILITY INSURANCE PROVIDED THAT:
  (1)  THE  ELECTRIC  GENERATING  EQUIPMENT  MEETS  THE SAFETY STANDARDS
ESTABLISHED PURSUANT TO THIS PARAGRAPH; AND
  (2) THE TOTAL RATED GENERATING CAPACITY (MEASURED  IN  KW)  OF  SOLAR,
FUEL  CELL  OR  FARM  WASTE  ELECTRIC GENERATING EQUIPMENT THAT PROVIDES
ELECTRICITY TO THE ELECTRIC CORPORATION THROUGH THE  SAME  LOCAL  FEEDER
LINE, DOES NOT EXCEED TWENTY PERCENT OF THE RATED CAPACITY OF THAT LOCAL
FEEDER LINE.
  (II)  IN  THE EVENT THAT THE TOTAL RATED GENERATING CAPACITY OF SOLAR,
FUEL CELL OR FARM WASTE  ELECTRIC  GENERATING  EQUIPMENT  THAT  PROVIDES
ELECTRICITY  TO  THE  ELECTRIC CORPORATION THROUGH THE SAME LOCAL FEEDER
LINE EXCEEDS TWENTY PERCENT OF THE RATED CAPACITY OF  THE  LOCAL  FEEDER
LINE,  THE  ELECTRIC  CORPORATION  MAY REQUIRE THE CUSTOMER-GENERATOR TO
COMPLY WITH REASONABLE MEASURES TO ENSURE SAFETY OF  THAT  LOCAL  FEEDER
LINE.
  6.  ELECTRIC  RESTRUCTURING.  NOTWITHSTANDING  THE  PROVISIONS OF THIS
SECTION, INCLUDING, BUT NOT LIMITED  TO  PARAGRAPH  (B)  OF  SUBDIVISION
THREE OF THIS SECTION, A CUSTOMER-GENERATOR SHALL COMPLY WITH ANY APPLI-
CABLE  DETERMINATIONS OF THE COMMISSION RELATING TO RESTRUCTURING OF THE
ELECTRIC INDUSTRY.
  S 66-N. NET ENERGY METERING FOR WIND ELECTRIC GENERATING SYSTEMS.   1.
DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
  (A)  "CUSTOMER-GENERATOR" MEANS A CUSTOMER OF AN ELECTRIC CORPORATION,
WHO OWNS OR OPERATES WIND ELECTRIC GENERATING EQUIPMENT USED AT THE SAME
SITE ON WHICH THE EQUIPMENT IS LOCATED.
  (B) "NET ENERGY METER" MEANS A METER THAT MEASURES THE REVERSE FLOW OF
ELECTRICITY TO REGISTER THE DIFFERENCE BETWEEN THE ELECTRICITY  SUPPLIED
BY AN ELECTRIC CORPORATION TO THE CUSTOMER-GENERATOR AND THE ELECTRICITY
PROVIDED TO THE CORPORATION BY THAT CUSTOMER-GENERATOR.
  (C) "NET ENERGY METERING" MEANS THE USE OF A NET ENERGY METER TO MEAS-
URE,  DURING  THE BILLING PERIOD APPLICABLE TO A CUSTOMER-GENERATOR, THE
NET AMOUNT OF  ELECTRICITY  SUPPLIED  BY  AN  ELECTRIC  CORPORATION  AND
PROVIDED TO THE CORPORATION BY A CUSTOMER-GENERATOR.

A. 409                              5

  (D)  "WIND  ELECTRIC  GENERATING  EQUIPMENT" MEANS A WIND GENERATOR OR
GENERATORS THAT IS MANUFACTURED, INSTALLED, AND OPERATED  IN  ACCORDANCE
WITH  APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, THAT IS CONNECTED TO
THE ELECTRIC SYSTEM AND OPERATED IN CONJUNCTION WITH AN ELECTRIC  CORPO-
RATION'S  TRANSMISSION AND DISTRIBUTION FACILITIES, AND THAT IS OPERATED
IN COMPLIANCE WITH ANY STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS
SECTION.
  2. INTERCONNECTION AND NET ENERGY METERING.  AN  ELECTRIC  CORPORATION
SHALL PROVIDE FOR THE INTERCONNECTION OF WIND ELECTRIC GENERATING EQUIP-
MENT OWNED OR OPERATED BY A CUSTOMER-GENERATOR AND FOR NET ENERGY METER-
ING,  PROVIDED  THAT  THE  CUSTOMER-GENERATOR  ENTERS  INTO A NET ENERGY
METERING CONTRACT WITH THE  CORPORATION  OR  COMPLIES  WITH  THE  CORPO-
RATION'S  NET  ENERGY  METERING SCHEDULE AND COMPLIES WITH STANDARDS AND
REQUIREMENTS ESTABLISHED  UNDER  THIS  SECTION.  THE  CUSTOMER-GENERATOR
SHALL  BE  RESPONSIBLE  FOR  PAYMENT  OF ONE-HALF OF THE EXPENSE OF SUCH
INTERCONNECTION ON  WIND-ELECTRIC  GENERATING  EQUIPMENT  WITH  A  RATED
CAPACITY OF MORE THAN TEN KILOWATTS.
  3.  CONDITIONS  OF  SERVICE.  (A)  ON OR BEFORE THREE MONTHS AFTER THE
EFFECTIVE DATE OF THIS SECTION, EACH ELECTRIC CORPORATION SHALL  DEVELOP
A  MODEL  CONTRACT  AND  FILE A SCHEDULE THAT ESTABLISHES CONSISTENT AND
REASONABLE RATES, TERMS  AND  CONDITIONS  FOR  NET  ENERGY  METERING  TO
CUSTOMER-GENERATORS,  ACCORDING TO THE REQUIREMENTS OF THIS SECTION. THE
COMMISSION SHALL RENDER A DECISION WITHIN THREE MONTHS FROM THE DATE  ON
WHICH  THE  SCHEDULE IS FILED. EACH ELECTRIC CORPORATION SHALL MAKE SUCH
CONTRACT AND SCHEDULE AVAILABLE TO CUSTOMER-GENERATORS ON A FIRST  COME,
FIRST SERVED BASIS.
  (B)  IN  THE EVENT THAT THE ELECTRIC CORPORATION DETERMINES THAT IT IS
NECESSARY TO INSTALL A DEDICATED TRANSFORMER OR TRANSFORMERS TO  PROTECT
THE SAFETY AND ADEQUACY OF ELECTRIC SERVICE PROVIDED TO OTHER CUSTOMERS,
A  CUSTOMER-GENERATOR  SHALL PAY THE ELECTRIC CORPORATION'S ACTUAL COSTS
OF INSTALLING THE TRANSFORMER OR TRANSFORMERS;
  (I) IN THE CASE OF A CUSTOMER-GENERATOR WHO  OWNS  AND  OPERATES  WIND
ELECTRIC  GENERATING  EQUIPMENT LOCATED AND USED AT THE SAME SITE WITH A
COMBINED RATE CAPACITY OF NOT MORE THAN TWENTY-FIVE KILOWATTS, UP  TO  A
MAXIMUM AMOUNT OF SEVEN HUNDRED FIFTY DOLLARS; AND
  (II)  IN  THE  CASE OF A CUSTOMER-GENERATOR WHO OWNS AND OPERATES WIND
ELECTRIC GENERATING EQUIPMENT LOCATED AND USED AT THE SAME SITE  WITH  A
COMBINED  RATED CAPACITY EQUAL TO OR GREATER THAN TWENTY-FIVE KILOWATTS,
THE PUBLIC SERVICE COMMISSION SHALL DETERMINE A RATE  SCHEDULE  THAT  IS
PROPORTIONATE WITH THE RATED CAPACITY OF THE GENERATING EQUIPMENT.
  (C)  AN  ELECTRIC  CORPORATION  SHALL  IMPOSE  NO OTHER CHARGE OR FEE,
INCLUDING, BUT NOT LIMITED TO, BACK UP, STAND BY OR DEMAND CHARGES,  FOR
THE PROVISION OF NET METERING TO A CUSTOMER-GENERATOR.
  4.  RATES.  AN  ELECTRIC  CORPORATION SHALL USE NET ENERGY METERING TO
MEASURE AND CHARGE FOR THE NET ELECTRICITY SUPPLIED BY  THE  CORPORATION
AND  PROVIDED  TO  THE CORPORATION BY A CUSTOMER-GENERATOR, ACCORDING TO
THE FOLLOWING REQUIREMENTS:
  (A) IN THE EVENT THAT THE AMOUNT OF ELECTRICITY SUPPLIED BY THE CORPO-
RATION DURING THE BILLING  PERIOD  EXCEEDS  THE  AMOUNT  OF  ELECTRICITY
PROVIDED  BY  A  CUSTOMER-GENERATOR,  THE  CORPORATION  SHALL CHARGE THE
CUSTOMER-GENERATOR FOR THE NET ELECTRICITY SUPPLIED AT THE SAME RATE PER
KILOWATT HOUR APPLICABLE TO SERVICE PROVIDED TO OTHER CUSTOMERS  IN  THE
SAME SERVICE CLASS WHICH DO NOT GENERATE ELECTRICITY ON SITE.
  (B)  IN THE EVENT THAT THE AMOUNT OF ELECTRICITY PRODUCED BY A CUSTOM-
ER-GENERATOR DURING THE BILLING PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY
USED BY THE CUSTOMER-GENERATOR, (I) FOR A CUSTOMER-GENERATOR  WITH  WIND

A. 409                              6

ELECTRIC  GENERATING  EQUIPMENT  OF NOT MORE THAN TWENTY-FIVE KILOWATTS,
THE CORPORATION SHALL APPLY A CREDIT TO THE NEXT BILL FOR SERVICE TO THE
CUSTOMER-GENERATOR FOR THE NET ELECTRICITY PROVIDED AT THE SAME RATE PER
KILOWATT  HOUR  APPLICABLE TO SERVICE PROVIDED TO OTHER CUSTOMERS IN THE
SAME SERVICE CLASS WHICH DO NOT GENERATE ELECTRICITY ON SITE; (II) FOR A
CUSTOMER-GENERATOR WITH WIND ELECTRIC GENERATING EQUIPMENT OF MORE  THAN
TWENTY-FIVE  KILOWATTS,  THE  CORPORATION SHALL RECORD THE NET AMOUNT OF
ELECTRICITY PROVIDED TO IT BY THE CUSTOMER-GENERATOR AS A CREDIT AT  THE
CORPORATION'S   AVOIDED   COST   RATE.   THE   CREDIT  PROVIDED  TO  THE
CUSTOMER-GENERATOR SHALL BE EQUAL TO THE COST OTHERWISE AVOIDED  BY  THE
ELECTRIC  CORPORATION  IN  NOT  HAVING  TO PURCHASE SUCH ENERGY   IN THE
COMPETITIVE MARKET OR GENERATE THE SAME THROUGH FACILITIES  IT  OWNS  OR
CONTROLS.
  (C)  AT THE END OF THE YEAR OR ANNUALIZED OVER THE PERIOD THAT SERVICE
IS SUPPLIED BY MEANS OF  NET  ENERGY  METERING,  THE  CORPORATION  SHALL
PROMPTLY ISSUE PAYMENT AT ITS AVOIDED COST TO THE CUSTOMER-GENERATOR FOR
THE  VALUE  OF  ANY REMAINING CREDIT FOR THE EXCESS ELECTRICITY PRODUCED
DURING THE YEAR OR OVER THE ANNUALIZED PERIOD BY THE CUSTOMER-GENERATOR.
  5. SAFETY STANDARDS. (A) ON OR BEFORE THREE MONTHS AFTER THE EFFECTIVE
DATE OF THIS SECTION, EACH ELECTRIC CORPORATION SHALL  ESTABLISH  STAND-
ARDS  THAT ARE NECESSARY FOR NET ENERGY METERING AND THE INTERCONNECTION
OF WIND ELECTRIC GENERATING EQUIPMENT TO ITS SYSTEM AND THAT THE COMMIS-
SION SHALL DETERMINE ARE NECESSARY FOR SAFE  AND  ADEQUATE  SERVICE  AND
FURTHER  THE PUBLIC POLICY SET FORTH IN THIS SECTION. SUCH STANDARDS MAY
INCLUDE, BUT SHALL NOT BE LIMITED TO:
  (I) EQUIPMENT NECESSARY TO ISOLATE AUTOMATICALLY THE GENERATING SYSTEM
FROM THE UTILITY SYSTEM FOR VOLTAGE AND FREQUENCY DEVIATIONS; AND
  (II) A MANUAL LOCKABLE DISCONNECT SWITCH PROVIDED BY THE CUSTOMER-GEN-
ERATOR WHICH SHALL BE LOCATED ON THE OUTSIDE OF THE CUSTOMER'S  PREMISES
AND  EXTERNALLY  ACCESSIBLE  FOR  THE  PURPOSE OF ISOLATING THE ELECTRIC
GENERATING EQUIPMENT.
  (B) UPON ITS OWN MOTION OR UPON A COMPLAINT, THE  COMMISSION,  OR  ITS
DESIGNATED  REPRESENTATIVE,  MAY INVESTIGATE AND MAKE A DETERMINATION AS
TO THE REASONABLENESS AND NECESSITY OF THE STANDARDS  OR  RESPONSIBILITY
FOR COMPLIANCE WITH THE STANDARDS.
  (I)  AN  ELECTRIC  CORPORATION MAY NOT REQUIRE A CUSTOMER-GENERATOR TO
COMPLY WITH ADDITIONAL SAFETY OR PERFORMANCE STANDARDS,  OR  PERFORM  OR
PAY  FOR  ADDITIONAL  TESTS, OR PURCHASE ADDITIONAL LIABILITY INSURANCE,
PROVIDED THAT:
  A. THE ELECTRIC GENERATING EQUIPMENT MEETS THE SAFETY STANDARDS ESTAB-
LISHED PURSUANT TO THIS PARAGRAPH; AND
  B. THE TOTAL RATED GENERATING CAPACITY (MEASURED IN  KW)  OF  ELECTRIC
GENERATING  EQUIPMENT  THAT  PROVIDES ELECTRICITY TO THE ELECTRIC CORPO-
RATION THROUGH THE SAME  LOCAL  FEEDER  LINE,  DOES  NOT  EXCEED  TWENTY
PERCENT OF THE RATED CAPACITY OF THAT LOCAL FEEDER LINE.
  (II) IN THE EVENT THAT THE TOTAL RATED GENERATING CAPACITY OF ELECTRIC
GENERATING  EQUIPMENT  THAT  PROVIDES ELECTRICITY TO THE ELECTRIC CORPO-
RATION THROUGH THE SAME LOCAL FEEDER LINE EXCEEDS TWENTY PERCENT OF  THE
RATED  CAPACITY  OF  THE LOCAL FEEDER LINE, THE ELECTRIC CORPORATION MAY
REQUIRE THE CUSTOMER-GENERATOR TO COMPLY  WITH  REASONABLE  MEASURES  TO
ENSURE SAFETY OF THAT LOCAL FEEDER LINE.
  6.  ELECTRIC  RESTRUCTURING.  NOTWITHSTANDING  THE  PROVISIONS OF THIS
SECTION, A CUSTOMER-GENERATOR SHALL COMPLY WITH ANY APPLICABLE  DETERMI-
NATIONS  OF  THE  COMMISSION  RELATING  TO RESTRUCTURING OF THE ELECTRIC
INDUSTRY.
  S 2. This act shall take effect immediately.

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Assembly Bill A409

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Archive: Last Bill Status - In Assembly Committee

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Sponsored By

KAVANAGH

Archive: Last Bill Status - In Assembly Committee

Actions

2009-A409 (ACTIVE) - Details

2009-A409 (ACTIVE) - Summary

2009-A409 (ACTIVE) - Sponsor Memo

2009-A409 (ACTIVE) - Bill Text download pdf

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