S T A T E O F N E W Y O R K
________________________________________________________________________
4304
2023-2024 Regular Sessions
I N S E N A T E
February 7, 2023
___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when
printed to be committed to the Committee on Energy and Telecommuni-
cations
AN ACT to amend the public service law and the public authorities law,
in relation to credit for electricity generated by a customer-genera-
tor subject to net energy metering
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 4 of section 66-j of the public service law, as
amended by chapter 355 of the laws of 2009, paragraph (b) as amended by
chapter 691 of the laws of 2022 and (c) as amended by chapter 494 of the
laws of 2014, is amended to read as follows:
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, AFTER DEDUCT-
ING, FROM THE AGGREGATE OF UNUSED CREDIT FOR EXCESS ELECTRICITY GENER-
ATED BY SUCH CUSTOMER-GENERATOR PRIOR TO SUCH BILLING PERIOD, AN AMOUNT
OF CREDIT EQUAL TO THE AMOUNT OF ELECTRICITY SUPPLIED BY THE ELECTRIC
CORPORATION, TO THE EXTENT SUCH CREDIT EXISTS, AND MAY THEREAFTER charge
the customer-generator for the net electricity supplied, AFTER DEDUCTION
OF SUCH CREDITS, 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 (I) apply a credit
to the next bill for service to the customer-generator for the net elec-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06333-01-3
S. 4304 2
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, OR (II) AT THE OPTION OF THE CUSTOMER-
GENERATOR, CREDIT SUCH CUSTOMER-GENERATOR WITH THE AMOUNT OF EXCESS
KILOWATT HOURS GENERATED IN EXCESS OF ITS USE, AND SUCH CREDIT SHALL BE
AGGREGATED INDEFINITELY TO BE USED AS CREDIT AGAINST CHARGES INCURRED
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION; except for micro-combined
heat and power or fuel cell or fuel-flexible linear generator customer-
generators or farm waste generating equipment customer-generators as
described in subparagraph (ix) of paragraph (a) of subdivision one of
this section, who will be credited at the corporation's avoided costs.
The avoided cost credit provided to micro-combined heat and power or
fuel cell or fuel-flexible linear generator customer-generators or farm
waste generating equipment customer-generators as described in subpara-
graph (ix) of paragraph (a) of subdivision one of this section shall be
treated for ratemaking purposes as a purchase of electricity in the
market that is includable in commodity costs.
(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 (I)
promptly issue payment at its avoided cost to the customer-generator, as
defined in subparagraph (i), (ii), (IV), (V) or (ix) 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 annual-
ized period by the customer-generator, OR (II) AT THE OPTION OF THE
CUSTOMER-GENERATOR, SHALL CONTINUE TO AGGREGATE SUCH CREDITS, AT THE
SAME RATE PER KILOWATT HOUR APPLICABLE TO THE SERVICE PROVIDED TO OTHER
CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO NOT GENERATE ELECTRICITY ON
SITE, FOR AN INDEFINITE PERIOD OF TIME AND CONTINUE TO ALLOW USE OF SUCH
CREDIT TO OFFSET ANY LIABILITY OF THE CUSTOMER-GENERATOR TO THE ELECTRIC
CORPORATION DURING BILLING PERIODS IN WHICH THE ELECTRICITY GENERATED BY
THE CUSTOMER-GENERATOR IS LESS THAN THAT USED BY SUCH CUSTOMER.
(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.
(E) IN THE EVENT THAT A CUSTOMER-GENERATOR ELECTS TO ALLOW THE AGGRE-
GATION OF ANY CREDITS FOR EXCESS ELECTRICITY GENERATED, THE CUSTOMER-
GENERATOR SHALL BE ENTITLED TO AN ACCOUNTING OF SUCH CREDITS ONCE EVERY
FIVE YEARS AND UPON SUCH ACCOUNTING, THE ELECTRIC CORPORATION SHALL
PROMPTLY ISSUE PAYMENT AT ITS AVOIDED COST TO SUCH CUSTOMER-GENERATOR,
AS DEFINED IN SUBPARAGRAPH (I), (II), (IV) OR (V) OF PARAGRAPH (A) OF
SUBDIVISION ONE OF THIS SECTION, FOR THE VALUE OF ANY REMAINING CREDIT
FOR THE EXCESS ELECTRICITY PRODUCED BY THE CUSTOMER-GENERATOR.
§ 2. Subdivision 4 of section 66-l of the public service law, as
amended by chapter 721 of the laws of 2006, paragraphs (b) and (c) as
amended and paragraph (d) as added by chapter 483 of the laws of 2008,
is amended to read as follows:
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:
S. 4304 3
(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, AFTER DEDUCT-
ING, FROM THE AGGREGATE OF UNUSED CREDIT FOR EXCESS ELECTRICITY GENER-
ATED BY SUCH CUSTOMER-GENERATOR PRIOR TO SUCH BILLING PERIOD, AN AMOUNT
OF CREDIT EQUAL TO THE AMOUNT OF ELECTRICITY SUPPLIED BY THE ELECTRIC
CORPORATION, TO THE EXTENT SUCH CREDIT EXISTS, AND MAY THEREAFTER charge
the customer-generator for the net electricity supplied, AFTER DEDUCTION
OF SUCH CREDITS, 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, the corporation shall (I) 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 on site, OR (II) AT THE OPTION OF THE CUSTOM-
ER-GENERATOR, CREDIT SUCH CUSTOMER-GENERATOR WITH THE AMOUNT OF EXCESS
KILOWATT HOURS GENERATED IN EXCESS OF ITS USE, AND SUCH CREDIT SHALL BE
AGGREGATED INDEFINITELY TO BE USED AS CREDIT AGAINST CHARGES INCURRED
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
(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 (I)
promptly issue payment at its avoided cost to a residential or farm
service customer-generator for the value of any remaining credit for the
excess electricity produced during the year or over the annualized peri-
od by such customer-generator, OR (II) AT THE OPTION OF THE CUSTOMER-
GENERATOR, SHALL CONTINUE TO AGGREGATE SUCH CREDITS, AT THE SAME RATE
PER KILOWATT HOUR APPLICABLE TO THE SERVICE PROVIDED TO OTHER CUSTOMERS
IN THE SAME SERVICE CLASS WHICH DO NOT GENERATE ELECTRICITY ON SITE, FOR
AN INDEFINITE PERIOD OF TIME, AND CONTINUE TO ALLOW USE OF SUCH CREDIT
TO OFFSET ANY LIABILITY OF THE CUSTOMER-GENERATOR TO THE ELECTRIC CORPO-
RATION DURING BILLING PERIODS IN WHICH THE ELECTRICITY GENERATED BY THE
CUSTOMER-GENERATOR IS LESS THAN THAT USED BY SUCH CUSTOMER.
(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.
(E) IN THE EVENT THAT A CUSTOMER-GENERATOR ELECTS TO ALLOW THE AGGRE-
GATION OF ANY CREDITS FOR EXCESS ELECTRICITY GENERATED, THE CUSTOMER-
GENERATOR SHALL BE ENTITLED TO AN ACCOUNTING OF SUCH CREDITS ONCE EVERY
FIVE YEARS AND UPON SUCH ACCOUNTING, THE ELECTRIC CORPORATION SHALL
PROMPTLY ISSUE PAYMENT AT ITS AVOIDED COST TO SUCH CUSTOMER-GENERATOR
FOR THE VALUE OF ANY REMAINING CREDIT FOR THE EXCESS ELECTRICITY
PRODUCED BY THE CUSTOMER-GENERATOR.
§ 3. Subdivision (h) of section 1020-g of the public authorities law,
as amended by chapter 546 of the laws of 2011, 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
S. 4304 4
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, (E) fuel cell electric generating
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 efficiency 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 customer-
generators and for net energy metering consistent with section sixty-
six-l of the public service law. NOTWITHSTANDING THE PROVISIONS OF
SECTION ONE THOUSAND TWENTY-S OF THIS TITLE, AS AMENDED BY CHAPTER THREE
HUNDRED EIGHTY-EIGHT OF THE LAWS OF TWO THOUSAND ELEVEN, THE AUTHORITY,
IN ITS IMPLEMENTATION OF SUCH PROGRAMS AND POLICIES, SHALL BE SUBJECT TO
THE PROVISIONS OF SUBDIVISION FOUR OF SECTION SIXTY-SIX-J AND SUBDIVI-
SION FOUR OF SECTION SIXTY-SIX-L OF THE PUBLIC SERVICE LAW;
§ 4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.
