S T A T E O F N E W Y O R K
________________________________________________________________________
4312
2009-2010 Regular Sessions
I N S E N A T E
April 21, 2009
___________
Introduced by Sen. C. JOHNSON -- read twice and ordered printed, and
when printed to be committed to the Committee on Energy and Telecommu-
nications
AN ACT to amend the public service law, in relation to providing for net
energy metering for business solar electric generating systems
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The section heading and subdivisions 1, 3, 4 and 5 of
section 66-j of the public service law, the section heading, paragraphs
(a), (d) and (e) of subdivision 1, paragraphs (a), (b) and (c) of subdi-
vision 3, and paragraphs (c) and (d) of subdivision 4 as amended by
chapter 452 of the laws of 2008, subdivisions 1, 3, 4 and 5 as amended
by chapter 515 of the laws of 2002, paragraph (b) and the opening para-
graph of paragraph (e) of subdivision 1 as amended by chapter 480 of the
laws of 2008, are amended to read as follows:
Net energy metering for residential OR BUSINESS solar, farm waste [or]
AND non-residential solar electric generating systems. 1. Definitions.
As used in this section, the following terms shall have the following
meanings:
(a) "Customer-generator" means: (i) a residential customer of an elec-
tric corporation, who owns or operates solar electric generating equip-
ment located and used at his or her residence; (ii) a customer of an
electric corporation, who owns or operates farm waste electric generat-
ing 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 non-residential customer
of an electric corporation which owns or operates solar electric gener-
ating equipment located and used at its premises; OR (IV) A BUSINESS
CUSTOMER OF AN ELECTRIC CORPORATION WHICH OWNS OR OPERATES SOLAR ELEC-
TRICITY GENERATING EQUIPMENT LOCATED AND USED AT ITS PLACE OF BUSINESS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06354-02-9
S. 4312 2
(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.
(d) "Solar electric generating equipment" means a photovoltaic system
(i) (A) in the case of a residential customer, with a rated capacity of
not more than twenty-five kilowatts; and (B) in the case of a non-resi-
dential customer, with a rated capacity of not more than the lesser of
two thousand kilowatts or such customer's peak load as measured over the
prior twelve month period, or in the case that such twelve month period
of measurement is not available, then as determined by the commission
based on its analysis of comparable facilities; and (ii) that is manu-
factured, installed, and operated in accordance with applicable govern-
ment and industry standards, that is connected to the electric 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. PROVIDED,
THAT, FOR A BUSINESS CUSTOMER OF AN ELECTRIC CORPORATION WHICH OWNS OR
OPERATES SOLAR ELECTRIC GENERATING EQUIPMENT LOCATED AND USED AT ITS
PLACE OF BUSINESS, THE TERM "SOLAR ELECTRIC GENERATING EQUIPMENT" MEANS
A PHOTOVOLTAIC SYSTEM WITH A RATED CAPACITY OF NOT MORE THAN ONE HUNDRED
KILOWATTS.
(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 with a rated capacity of not more than
five hundred kilowatts, that is:
i. manufactured, installed, and operated in accordance with applicable
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 estab-
lished 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
fifty percent by weight of its feedstock being livestock manure materi-
als on an annual basis.
3. Conditions of service. (a) (i) 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.
(ii) On or before three months after the effective date of this
subparagraph, 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 non-residential customer
generators, according to the requirements of this section. The commis-
S. 4312 3
sion shall render a decision within three months of the date on which
the schedule is filed.
(iii) 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 and farm waste elec-
tric generating equipment owned or operated by customer-generators in
the corporation's service area is equivalent to one percent of the
corporation's electric demand for the year two thousand five, as deter-
mined by the department.
(b) Nothing in this subdivision shall prohibit a corporation from
providing net energy metering to additional customer-generators. The
commission shall have the authority, after January first, two thousand
twelve, to increase the percent limits if it determines that additional
net energy metering is in the public interest.
(c) In the event that the electric corporation determines that it is
necessary to install a dedicated transformer or transformers, or other
equipment 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 transfor-
mers, or other equipment:
(i) In the case of a customer-generator who owns or operates solar
electric generating equipment located and used at his or her residence
OR ITS BUSINESS; up to a maximum amount of three hundred fifty dollars.
(ii) In the case of a customer-generator who owns or operates farm
waste electric generating equipment located and used at his or her "farm
operation," up to a total amount of five thousand dollars per "farm
operation".
(iii) In the case of a non-residential customer-generator who owns or
operates solar electric generating equipment located and used at its
premises, such cost shall be as determined by the department pursuant to
standards established thereby.
(d) An electric corporation shall impose no other charge or fee,
including back-up, stand by and demand charges, for the provision of net
energy metering to a customer-generator, except as provided in paragraph
(d) of subdivision four of this section.
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
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 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 onsite.
(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, the corporation shall apply a credit to
the next bill for service to the customer-generator for the net elec-
tricity 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 onsite; PROVIDED THAT FOR BUSINESS
CUSTOMER-GENERATORS, THE CORPORATION SHALL APPLY A CREDIT TO THE NEXT
BILL FOR SERVICE TO SUCH BUSINESS FOR THE NET ELECTRICITY PROVIDED AT
THE WHOLE-SALE RATE THAT SUCH CORPORATION HAS PAID FOR SUCH ELECTRICITY,
AS DETERMINED BY THE COMMISSION.
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(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, as
defined in subparagraph (i) or (ii) of paragraph (a) of subdivision one
of this section, 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) In the event that the corporation imposes charges based on kilo-
watt demand on customers who are in the same service class as the
customer-generator but which do not generate electricity on site, the
corporation may impose the same charges at the same rates to the custom-
er-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-
ards that are necessary for net energy metering and the interconnection
of residential AND BUSINESS solar [or] AND farm waste electric generat-
ing 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 residential OR
BUSINESS solar 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 residential
OR BUSINESS solar 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
electric generating equipment located and used at his or her residence
OR ITS BUSINESS; an electric corporation may not require a customer-gen-
erator to comply with additional safety or performance standards,
perform or pay for additional tests, or purchase additional liability
insurance provided that the residential solar or farm waste electric
generating equipment meets the safety standards established pursuant to
this paragraph.
(ii) In the case of a customer-generator who owns or operates farm
waste electric generating equipment located and used at his or her "farm
operation," 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 estab-
lished pursuant to this paragraph; and
2. the total rated generating capacity (measured in kW) of 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.
(iii) In the event that the total rated generating capacity of farm
waste electric generating equipment that provides electricity to the
S. 4312 5
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.
S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.
