S T A T E O F N E W Y O R K
________________________________________________________________________
1149--A
Cal. No. 608
2011-2012 Regular Sessions
I N S E N A T E
January 5, 2011
___________
Introduced by Sens. PARKER, MAZIARZ, OPPENHEIMER, SAMPSON -- read twice
and ordered printed, and when printed to be committed to the Committee
on Energy and Telecommunications -- reported favorably from said
committee, ordered to first and second report, ordered to a third
reading, substituted by Assembly Bill No. 28, substitution reconsid-
ered and vote reconsidered, restored to third reading, amended and
ordered reprinted, retaining its place in the order of third reading
AN ACT to amend the public service law and the public authorities law,
in relation to net energy metering with micro-hydroelectric generating
equipment
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The section heading and paragraph (a) of subdivision 1 of
section 66-j of the public service law, as amended by chapter 355 of the
laws of 2009, are amended and a new paragraph (h) is added to subdivi-
sion 1 to read as follows:
Net energy metering for residential solar, farm waste, non-residential
solar electric generating systems, micro-combined heat and power gener-
ating equipment, [or] fuel cell electric generating equipment, AND
MICRO-HYDROELECTRIC GENERATING EQUIPMENT.
(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; (iii) a non-residential customer of an
electric corporation which owns or operates solar electric generating
equipment located and used at its premises; (iv) a residential customer
of an electric corporation who owns, leases or operates micro-combined
heat and power generating equipment located on the customer's premises;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00896-03-1
S. 1149--A 2
[and] (v) a residential customer of an electric corporation who owns,
leases or operates fuel cell generating equipment located on the custom-
er's premises; (VI) A RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPORATION,
WHO OWNS OR OPERATES MICRO-HYDROELECTRIC GENERATING EQUIPMENT LOCATED
AND USED AT HIS OR HER RESIDENCE; AND (VII) A NON-RESIDENTIAL CUSTOMER
OF AN ELECTRIC CORPORATION WHICH OWNS OR OPERATES MICRO-HYDROELECTRIC
GENERATING EQUIPMENT LOCATED AND USED AT ITS PREMISES.
(H) "MICRO-HYDROELECTRIC GENERATING EQUIPMENT" MEANS A HYDROELECTRIC
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-RESIDENTIAL CUSTOMER, WITH A RATED CAPACITY OF NOT MORE THAN TWO
THOUSAND KILOWATTS; AND (II) THAT IS MANUFACTURED, INSTALLED, AND OPER-
ATED IN ACCORDANCE WITH APPLICABLE GOVERNMENT 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.
S 2. Subdivision 2 of section 66-j of the public service law, as
amended by chapter 355 of the laws of 2009, is amended to read as
follows:
2. Interconnection and net energy metering. An electric corporation
shall provide for the interconnection of solar and farm waste electric
generating equipment, micro-combined heat and power generating equipment
[and], fuel cell electric generating equipment AND MICRO-HYDROELECTRIC
GENERATING EQUIPMENT owned or operated by a customer-generator and for
net energy metering, provided that 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.
S 3. Subdivision 3 of section 66-j of the public service law, as
amended by chapter 355 of the laws of 2009, subparagraphs (i) and (iii)
of paragraph (c) as amended by chapter 7 of the laws of 2010 and para-
graph (e) as added by chapter 35 of the laws of 2011, is amended to read
as follows:
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-
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, micro-combined heat and power generating
equipment [and], fuel cell electric generating equipment AND MICRO-HY-
DROELECTRIC GENERATING EQUIPMENT owned, leased or operated by customer-
generators in the corporation's service area is equivalent to one
S. 1149--A 3
percent of the corporation's electric demand for the year two thousand
five, as determined 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, micro-combined heat and power generating
equipment [or], fuel cell electric generating equipment OR MICRO-HYDROE-
LECTRIC GENERATING EQUIPMENT located and used at his or her residence,
or a non-residential customer-generator who owns or operates solar elec-
tric generating equipment with a rated capacity of not more than twen-
ty-five kilowatts, 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"; and
(iii) In the case of a non-residential customer-generator who owns or
operates solar electric generating equipment OR MICRO-HYDROELECTRIC
GENERATING EQUIPMENT with a rated capacity of more than twenty-five
kilowatts located and used at its premises, such cost shall be as deter-
mined by the electric corporation subject to review, upon the request of
such customer-generator, by the department.
(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.
(e) A customer who owns or operates a farm operation as such term is
defined in subdivision eleven of section three hundred one of the agri-
culture and markets law, or a non-residential customer-generator as
defined by subparagraph (iii) of paragraph (a) of subdivision one of
this section that locates solar electric generating equipment or farm
waste electric generating equipment with a net energy meter on property
owned or leased by such customer-generator may designate all or a
portion of the net metering credits generated by such equipment to
meters at any property owned or leased by such customer-generator within
the service territory of the same electric corporation to which the
customer-generator's net energy meters are interconnected and being
within the same load zone as determined by the location based marginal
price as of the date of initial request by the customer-generator to
conduct net metering. The electric corporation will credit the accounts
of the customer by applying any credits to the highest use meter first,
then subsequent highest use meters until all such credits are attributed
to the customer. Any excess credits shall be carried over to the follow-
ing month.
S 4. Subdivision 5 of section 66-j of the public service law, as
amended by chapter 355 of the laws of 2009, is amended to read as
follows:
S. 1149--A 4
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 solar or farm waste electric generating equipment,
micro-combined heat and power generating equipment and fuel cell elec-
tric generating equipment AND MICRO-HYDROELECTRIC 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 residential
solar, farm waste, micro-combined heat and power and fuel cell electric
generating system AND MICRO-HYDROELECTRIC GENERATING EQUIPMENT 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
solar and farm waste electric generating equipment AND MICRO-HYDROELEC-
TRIC 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;
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 the residential solar or farm waste electric generating equipment,
micro-combined heat and power generating equipment [or], fuel cell elec-
tric generating equipment OR MICRO-HYDROELECTRIC 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
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 5. Subdivision 5-a of section 66-j of the public service law, as
amended by chapter 355 of the laws of 2009, is amended to read as
follows:
5-a. Safety standards; non-residential solar electric generating
equipment AND MICRO-HYDROELECTRIC GENERATING EQUIPMENT. (a) On or
before three months after the effective date of this subdivision, each
electric corporation shall establish standards that are necessary for
S. 1149--A 5
net energy metering and the interconnection of non-residential solar
electric generating equipment OR MICRO-HYDROELECTRIC GENERATING EQUIP-
MENT 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 generating
system OR MICRO-HYDROELECTRIC GENERATING EQUIPMENT 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-generator's
premises and externally accessible for the purpose of isolating the
solar electric generating equipment OR MICRO-HYDROELECTRIC GENERATING
EQUIPMENT.
(b) In the event that the total rated generating capacity of solar
electric generating equipment OR MICRO-HYDROELECTRIC GENERATING EQUIP-
MENT 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 custom-
er-generator to comply with reasonable measures to ensure safety of the
local feeder line.
(c) Unless otherwise determined to be necessary by the commission, an
electric corporation may not require a customer-generator to comply with
additional safety or performance standards, perform or pay for addi-
tional tests, or purchase additional liability insurance provided that
the solar electric generating equipment OR MICRO-HYDROELECTRIC GENERAT-
ING EQUIPMENT meets the safety standards established pursuant to this
subdivision.
(d) 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.
S 6. Subdivision (h) of section 1020-g of the public authorities law,
as amended by chapter 355 of the laws of 2009, is amended to read as
follows:
(h) To implement programs and policies designed to provide for the
interconnection of: (i) (A) solar electric generating equipment owned or
operated by residential customers, (B) farm waste electric generating
equipment owned or operated by customer-generators, (C) solar electric
generating equipment owned or operated by non-residential customers, (D)
micro-combined heat and power generating equipment owned, leased or
operated by residential customers, [and] (E) fuel cell electric generat-
ing equipment owned, leased or operated by residential customers, AND
(F) MICRO-HYDROELECTRIC GENERATING EQUIPMENT OWNED, LEASED OR OPERATED
BY CUSTOMER-GENERATORS and for net energy metering consistent with
section sixty-six-j of the public service law, to increase the efficien-
cy of energy end use, to shift demand from periods of high demand to
periods of low demand and to facilitate the development of cogeneration;
and (ii) wind electric generating equipment owned or operated by custom-
er-generators and for net energy metering consistent with section
sixty-six-l of the public service law.
S 7. This act shall take effect immediately.
