S T A T E O F N E W Y O R K
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9486
I N A S S E M B L Y
May 2, 2014
___________
Introduced by M. of A. RUSSELL -- read once and referred to the Commit-
tee on Energy
AN ACT to amend the public service law, in relation to neighborhood net
energy metering
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 a new section
66-n to read as follows:
S 66-N. NEIGHBORHOOD NET ENERGY METERING. 1. DEFINITIONS. AS USED IN
THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "AGRICULTURAL NET METERING FACILITY" MEANS A RENEWABLE ENERGY
GENERATING FACILITY THAT IS OPERATED AS PART OF AN AGRICULTURAL BUSI-
NESS, GENERATES ELECTRICITY, DOES NOT HAVE A GENERATION CAPACITY OF MORE
THAN TWO MEGAWATTS, IS LOCATED AND USED ON LAND USED IN AGRICULTURAL
PRODUCTION AS DEFINED IN SUBDIVISION FOUR OF SECTION THREE HUNDRED ONE
OF THE AGRICULTURE AND MARKETS LAW, AND IS USED TO PROVIDE ENERGY TO
METERED ACCOUNTS OF THE BUSINESS.
(B) "BILLING PERIOD" MEANS THE PERIOD OF TIME SET FORTH IN AN ELECTRIC
CORPORATION'S TERMS AND CONDITIONS FOR WHICH SUCH CORPORATION BILLS A
CUSTOMER FOR ITS ELECTRICITY CONSUMED OR ESTIMATED TO HAVE BEEN
CONSUMED.
(C) "CLASS I NET METERING FACILITY" MEANS A PLANT OR EQUIPMENT THAT IS
USED TO PRODUCE, MANUFACTURE OR OTHERWISE GENERATE ELECTRICITY, THAT IS
NOT A TRANSMISSION FACILITY AND THAT HAS A DESIGN CAPACITY OF SIXTY
KILOWATTS OR LESS.
(D) "CLASS II NET METERING FACILITY" MEANS AN AGRICULTURAL NET METER-
ING FACILITY, SOLAR NET METERING FACILITY OR WIND NET METERING FACILITY
WITH A GENERATING CAPACITY OF MORE THAN SIXTY KILOWATTS BUT LESS THAN OR
EQUAL TO ONE MEGAWATT.
(E) "CLASS III NET METERING FACILITY" MEANS AN AGRICULTURAL NET METER-
ING FACILITY, SOLAR NET METERING FACILITY OR WIND NET METERING FACILITY
WITH A GENERATING CAPACITY OF MORE THAN ONE MEGAWATT BUT LESS THAN OR
EQUAL TO TWO MEGAWATTS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10298-01-3
A. 9486 2
(F) "CUSTOMER" MEANS ANY PERSON, PARTNERSHIP, CORPORATION OR ANY OTHER
ENTITY, WHETHER PUBLIC OR PRIVATE, WHICH OBTAINS DISTRIBUTION SERVICE AT
A CUSTOMER DELIVERY POINT AND WHICH IS A CUSTOMER OF RECORD OF AN ELEC-
TRIC CORPORATION FOR ITS OWN ELECTRICITY CONSUMPTION.
(G) "HOST CUSTOMER" MEANS A CUSTOMER WITH A CLASS I, II OR III NET
METERING FACILITY THAT GENERATES ELECTRICITY ON SUCH CUSTOMER'S SIDE OF
THE METER.
(H) "INDEPENDENT SYSTEM OPERATOR" MEANS THE NEW YORK INDEPENDENT
SYSTEM OPERATOR.
(I) "MUNICIPALITY" MEANS A TOWN OR A CITY.
(J) "NEIGHBORHOOD" MEANS A GEOGRAPHIC AREA WITHIN A MUNICIPALITY THAT:
(I) IS RECOGNIZED BY THE RESIDENTS THEREOF AS INCLUDING A UNIQUE
COMMUNITY OF INTERESTS;
(II) FALLS WITHIN THE SERVICE TERRITORY OF A SINGLE ELECTRIC CORPO-
RATION AND WITHIN A SINGLE INDEPENDENT SYSTEM OPERATOR LOAD ZONE; AND
(III) MAY ENCOMPASS RESIDENTIAL, COMMERCIAL AND UNDEVELOPED PROPER-
TIES.
(K) "NEIGHBORHOOD NET METERING FACILITY" MEANS A CLASS I, II OR III
NET METERING FACILITY THAT:
(I) IS OWNED BY OR SERVES THE ENERGY NEEDS OF A GROUP OF TEN OR MORE
RESIDENTIAL CUSTOMERS THAT RESIDE IN A SINGLE NEIGHBORHOOD AND ARE
SERVED BY A SINGLE ELECTRIC CORPORATION;
(II) MAY ALSO BE OWNED BY OR SERVES THE ENERGY NEEDS OF OTHER CUSTOM-
ERS WHO RESIDE IN THE SAME NEIGHBORHOOD AND ARE SERVED BY THE SAME ELEC-
TRIC CORPORATION AS THE RESIDENTIAL CUSTOMERS THAT OWN OR ARE SERVED BY
SUCH FACILITY; AND
(III) IS LOCATED WITHIN THE SAME NEIGHBORHOOD AS THE CUSTOMERS THAT
OWN OR ARE SERVED BY THE FACILITY.
(1) "NET METERING" MEANS THE PROCESS OF MEASURING THE DIFFERENCE
BETWEEN ELECTRICITY DELIVERED BY AN ELECTRIC CORPORATION AND ELECTRICITY
GENERATED BY A CLASS I, CLASS II OR CLASS III, OR NEIGHBORHOOD NET
METERING FACILITY AND FED BACK TO SUCH ELECTRIC CORPORATION.
(M) "NET METERING FACILITY OF A MUNICIPALITY OR OTHER GOVERNMENTAL
ENTITY" MEANS A CLASS II OR III NET METERING FACILITY:
(I) THAT IS OWNED OR OPERATED BY A MUNICIPALITY OR OTHER GOVERNMENTAL
ENTITY; OR
(II) OF WHICH A MUNICIPALITY OR OTHER GOVERNMENTAL ENTITY IS THE HOST
CUSTOMER AND IS ASSIGNED THE ENTIRETY OF ITS OUTPUT.
(N) "RENEWABLE ENERGY GENERATING FACILITY" MEANS AN AGRICULTURAL NET
METERING FACILITY, SOLAR NET METERING FACILITY OR WIND NET METERING
FACILITY.
(O) "SOLAR NET METERING FACILITY" MEANS A FACILITY FOR THE PRODUCTION
OF ELECTRICAL ENERGY THAT USES SUNLIGHT TO GENERATE ELECTRICITY, AND IS
INTERCONNECTED TO AN ELECTRIC CORPORATION.
(P) "WIND NET METERING FACILITY" MEANS A FACILITY FOR THE PRODUCTION
OF ELECTRICAL ENERGY THAT USES WIND TO GENERATE ELECTRICITY, AND IS
INTERCONNECTED TO AN ELECTRIC CORPORATION.
2. NET METERING SERVICES. (A) EACH ELECTRIC CORPORATION SHALL PROVIDE
SERVICES TO CUSTOMERS AND HOST CUSTOMERS NECESSARY TO PERMIT NET METER-
ING, INCLUDING THOSE RELATED TO INTERCONNECTION, METERING, AND CALCU-
LATION AND BILLING OF NET METERING CREDITS.
(B) NO ELECTRIC CORPORATION SHALL IMPOSE SPECIAL FEES ON A HOST
CUSTOMER OPERATING A CLASS I NET METERING FACILITY, SUCH AS BACKUP
CHARGES AND DEMAND CHARGES, OR ADDITIONAL CONTROLS OR LIABILITY INSUR-
ANCE, PROVIDED THAT THE FACILITY MEETS THE OTHER REQUIREMENTS FOR INTER-
CONNECTION, AND ALL RELEVANT SAFETY AND POWER QUALITY STANDARDS.
A. 9486 3
(C) EACH ELECTRIC CORPORATION SHALL CALCULATE A NET METERING CREDIT IN
ACCORDANCE WITH SUBDIVISION THREE OF THIS SECTION, AND BILL ANY HOST
CUSTOMER FOR KILOWATT-HOUR USAGE DURING ANY BILLING PERIOD IN WHICH THE
KILOWATT-HOURS GENERATED BY SUCH CUSTOMER'S CLASS I, II OR III NET
METERING FACILITY EXCEED THE CUSTOMER'S KILOWATT-USAGE DURING SUCH PERI-
OD.
(D) EACH ELECTRIC CORPORATION SHALL BILL A HOST CUSTOMER FOR EXCESS
CONSUMPTION DURING ANY BILLING PERIOD IN WHICH THE KILOWATT-HOURS
CONSUMED BY SUCH CUSTOMER EXCEED THE KILOWATT-HOURS GENERATED BY ITS
CLASS I, II OR III NET METERING FACILITY.
3. CALCULATION OF NET METERING CREDITS. (A) FOR EACH CLASS I WIND,
SOLAR OR AGRICULTURAL NET METERING FACILITY, CLASS II NET METERING
FACILITY, AND NET METERING FACILITY OF A MUNICIPALITY OR OTHER GOVERN-
MENTAL ENTITY, AN ELECTRIC CORPORATION SHALL CALCULATE, FOR EACH BILLING
PERIOD, A NET METERING CREDIT EQUAL TO THE PRODUCT OF THE:
(I) EXCESS KILOWATT-HOURS BY TIME OF USE, IF APPLICABLE; AND
(II) SUM OF THE ELECTRIC CORPORATION CHARGES APPLICABLE TO THE RATE
CLASS UNDER WHICH THE HOST CUSTOMER RECEIVES ELECTRICITY.
(B) FOR EACH CLASS I NET METERING FACILITY NOT REFERRED TO IN PARA-
GRAPH (A) OF THIS SUBDIVISION, AN ELECTRIC CORPORATION SHALL CALCULATE,
FOR EACH BILLING PERIOD, A NET METERING CREDIT EQUAL TO THE PRODUCT OF
THE:
(I) EXCESS KILOWATT-HOURS BY TIME OF USE, IF APPLICABLE; AND
(II) THE AVERAGE MONTHLY CLEARING PRICE AT THE INDEPENDENT SYSTEM
OPERATOR.
(C) FOR EACH NEIGHBORHOOD OR CLASS III NET METERING FACILITY, OTHER
THAN A NET METERING FACILITY OF A MUNICIPALITY OR OTHER GOVERNMENTAL
ENTITY, AN ELECTRIC CORPORATION SHALL CALCULATE, FOR EACH BILLING PERI-
OD, A NET METERING CREDIT EQUAL TO THE PRODUCT OF THE:
(I) EXCESS KILOWATT-HOURS BY TIME OF USE, IF APPLICABLE; AND
(II) SUM OF ELECTRIC CORPORATION CHARGES APPLICABLE TO THE RATE CLASS
UNDER WHICH THE HOST CUSTOMER RECEIVES ELECTRICITY.
(D) FOR ANY BILLING PERIOD IN WHICH AN ELECTRIC CORPORATION CALCULATES
A NET METERING CREDIT FOR A HOST CUSTOMER, SUCH CORPORATION SHALL APPLY
SUCH CREDIT TO THE HOST CUSTOMER'S ACCOUNT FOR THE SUBSEQUENT BILLING
PERIOD, UNLESS SUCH CUSTOMER DESIGNATES OTHERWISE PURSUANT TO SUBDIVI-
SION FOUR OF THIS SECTION. AN ELECTRIC CORPORATION SHALL CARRY FORWARD,
FROM BILLING PERIOD TO BILLING PERIOD, ANY REMAINING NET METERING CREDIT
BALANCE.
4. ALLOCATION OF NET METERING CREDITS. (A) FOR EACH CLASS I, II OR III
NET METERING FACILITY, EACH ELECTRIC CORPORATION SHALL ALLOCATE NET
METERING CREDITS, AS DESIGNATED IN WRITING BY THE HOST CUSTOMER, TO
OTHER CUSTOMERS WHO ARE IN SUCH CORPORATION'S SERVICE TERRITORY AND ARE
LOCATED IN THE SAME INDEPENDENT SYSTEM OPERATOR LOAD ZONE. THE MANNER
AND FORM OF CREDIT DESIGNATION SHALL BE AS SPECIFIED IN THE ELECTRIC
CORPORATION'S REQUIREMENTS. NOTWITHSTANDING THE FOREGOING, IF THE HOST
CUSTOMER IS A MUNICIPALITY OR OTHER GOVERNMENTAL ENTITY, IT MAY DIRECT
ITS ELECTRIC CORPORATION TO ALLOCATE NET METERING CREDITS ONLY TO OTHER
CUSTOMERS THAT ARE MUNICIPALITIES OR OTHER GOVERNMENTAL ENTITIES.
(B) FOR A NEIGHBORHOOD NET METERING FACILITY, AN ELECTRIC CORPORATION
SHALL ALLOCATE NET METERING CREDITS TO RESIDENTIAL OR OTHER CUSTOMERS
WHO RESIDE IN THE SAME NEIGHBORHOOD IN WHICH THE NEIGHBORHOOD NET METER-
ING FACILITY IS LOCATED AND HAVE AN OWNERSHIP INTEREST IN, OR ARE SERVED
BY THE NEIGHBORHOOD NET METERING FACILITY.
(C) EACH ELECTRIC CORPORATION SHALL CARRY FORWARD, FROM BILLING PERIOD
TO BILLING PERIOD, ANY REMAINING NET METERING CREDIT BALANCE.
A. 9486 4
(D) FOR A CLASS III NET METERING FACILITY, AN ELECTRIC CORPORATION MAY
ELECT TO PAY TO A HOST CUSTOMER NET METERING CREDITS RATHER THAN ALLO-
CATING SUCH CREDITS PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
5. ELIGIBILITY FOR NET METERING. NO ELECTRIC CORPORATION SHALL PROVIDE
NET METERING SERVICES TO ANY HOST CUSTOMER OR TO ANY OTHER ELECTRIC
CORPORATION THAT IS SUBJECT TO THE PROVISIONS OF THIS CHAPTER.
6. NET METERING CAPACITY. (A) EACH ELECTRIC CORPORATION SHALL MAKE NET
METERING SERVICES AVAILABLE TO HOST CUSTOMERS, SUCH THAT THE AGGREGATE
CAPACITY OF:
(I) NET METERING FACILITIES THAT ARE NOT NET METERING FACILITIES OF A
MUNICIPALITY OR OTHER GOVERNMENTAL ENTITY DOES NOT EXCEED ONE PERCENT OF
SUCH CORPORATION'S HIGHEST HISTORICAL PEAK LOAD; AND
(II) NET METERING FACILITIES OF A MUNICIPALITY OR OTHER GOVERNMENTAL
ENTITY DOES NOT EXCEED TWO PERCENT OF SUCH CORPORATION'S HIGHEST HISTOR-
ICAL PEAK LOAD.
(B) THE MAXIMUM AMOUNT OF GENERATING CAPACITY ELIGIBLE FOR NET METER-
ING BY A MUNICIPALITY OR OTHER GOVERNMENTAL ENTITY SHALL BE TEN MEGA-
WATTS, AS DETERMINED BY THE SUM OF THE NAMEPLATE RATINGS OF CLASS II AND
III NET METERING FACILITIES FOR WHICH THE MUNICIPALITY OR OTHER GOVERN-
MENTAL ENTITY IS THE HOST CUSTOMER.
(C) EACH ELECTRIC CORPORATION SHALL IDENTIFY ON AN ANNUAL BASIS ITS
HIGHEST HISTORICAL PEAK LOAD AND POST THAT DATA ON ITS WEBSITE ON OR
BEFORE THE FIRST OF FEBRUARY OF THE FOLLOWING YEAR.
(D) FOR THE PURPOSE OF CALCULATING THE AGGREGATE CAPACITY OF CLASS I,
II AND III NET METERING FACILITIES, THE CAPACITY OF A:
(I) SOLAR NET METERING FACILITY SHALL BE EIGHTY PERCENT OF THE FACILI-
TY'S DIRECT CURRENT RATING AT STANDARD TEST CONDITIONS; AND
(II) WIND NET METERING FACILITY, AND ALL OTHER NON-SOLAR NET METERING
FACILITIES, SHALL BE THE NAMEPLATE RATING.
7. NET METERING REPORTS. (A) EACH ELECTRIC CORPORATION SHALL COMPILE
AND MAINTAIN RECORDS OF THE FOLLOWING:
(I) THE SIZE, GENERATION TYPE, NET METERING CLASS, FUEL TYPE AND THE
MUNICIPALITY WITHIN WHICH EACH NET METERING FACILITY RECEIVES NET METER-
ING SERVICES;
(II) THE SIZE, GENERATION TYPE, FUEL TYPE AND THE MUNICIPALITY WITHIN
WHICH EACH NET METERING FACILITY HAS REQUESTED INTERCONNECTION WITH SUCH
ELECTRIC CORPORATION; AND
(III) THE AGGREGATE CAPACITY OF NET METERING FACILITIES THAT HAVE
INTERCONNECTED, AND THAT HAVE REQUESTED INTERCONNECTION TO SUCH ELECTRIC
CORPORATION.
(B) EACH ELECTRIC CORPORATION SHALL REPORT TO THE COMMISSION THE
INFORMATION REQUIRED TO BE COMPILED PURSUANT TO PARAGRAPH (A) OF THIS
SUBDIVISION, AT SUCH TIME AND IN SUCH FORM AS SHALL BE DESIGNATED IN THE
RULES OF THE COMMISSION.
(C) EACH ELECTRIC CORPORATION SHALL POST, ON A PUBLICLY ACCESSIBLE
INTERNET WEBSITE, DATA TRACKING THE AGGREGATE CAPACITY OF ELIGIBLE NET
METERING FACILITIES THAT HAVE CONNECTED AND HAVE REQUESTED INTERCON-
NECTION RELATIVE TO THE NET METERING CAPACITY ESTABLISHED PURSUANT TO
SUBDIVISION SIX OF THIS SECTION.
8. RULES. THE COMMISSION SHALL PROMULGATE ANY RULES AND REGULATIONS
NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
S 2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law; provided, however,
that effective immediately any rules and regulations necessary to imple-
ment the provisions of this act on its effective date are authorized and
directed to be completed on or before such date.