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S1368......................................................by STATE AFFAIRS
NET ENERGY METERING - Adds to existing law to provide, under Public
Utilities Commission jurisdiction, a net energy metering program for
customers of electric utilities or providers with renewable fuel electric
generating facilities.
02/04 Senate intro - 1st rdg - to printing
02/05 Rpt prt - to St Aff
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1368
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO NET ENERGY METERING; AMENDING TITLE 61, IDAHO CODE, BY THE ADDI-
3 TION OF A NEW CHAPTER 8, TITLE 61, IDAHO CODE, TO PROVIDE LEGISLATIVE
4 INTENT, TO DEFINE TERMS, TO PROVIDE FOR NET METERING, TO PROVIDE FOR NET
5 ENERGY MEASUREMENT AND BILLING AND TO PROVIDE REQUIREMENTS FOR NET METER-
6 ING SYSTEMS.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Title 61, Idaho Code, be, and the same is hereby amended
9 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
10 ter 8, Title 61, Idaho Code, and to read as follows:
11 CHAPTER 8
12 NET ENERGY METERING
13 61-801. LEGISLATIVE INTENT. The legislature finds that a net energy
14 metering program for customers with renewable-fuel electric generating facili-
15 ties encourages private investment in renewable energy resources, stimulates
16 the economic growth of this state, encourages energy independence and secu-
17 rity, and enhances the continued diversification of this state's energy
18 resources.
19 61-802. DEFINITIONS. The definitions in this section apply throughout
20 this chapter unless the context clearly indicates otherwise.
21 (1) "Commission" means the Idaho public utilities commission as defined
22 in section 61-102, Idaho Code.
23 (2) "Customer-generator" means a user or users of a net metering facil-
24 ity.
25 (3) "Electric utility" means:
26 (a) A public utility regulated under title 61, Idaho Code;
27 (b) A municipal utility operating under section 50-325, Idaho Code;
28 (c) A cooperative electrical association as defined in section 63-3501,
29 Idaho Code; or
30 (d) An irrigation district operating under section 43-313, Idaho Code;
31 that is engaged in the business of distributing electricity to retail electric
32 customers in the state.
33 (4) "Eligible renewable energy resource" means electricity generation
34 facilities or fuel cells fueled by:
35 (a) Wind;
36 (b) Solar energy;
37 (c) Geothermal energy;
38 (d) Methane gas from landfills, sewage treatment plants or animal wastes;
39 (e) Biomass energy based on solid organic fuels from wood, forest or
40 field residues or dedicated energy crops that do not include:
41 (i) Wood pieces that have been treated with chemical preservatives
2
1 such as creosote, pentachlorophenol or copper-chrome arsenic;
2 (ii) Municipal solid waste;
3 (iii) Tires;
4 (iv) Construction and demolition debris; or
5 (v) Waste byproducts of pulp and paper mills;
6 (f) Hydropower.
7 (5) "Governing body" means the governing body of a municipal utility
8 operating under section 50-325, Idaho Code, a cooperative electrical associa-
9 tion as defined in section 63-3501, Idaho Code, or an irrigation district
10 operating under section 43-313, Idaho Code.
11 (6) "Net metering" means the difference between the electricity supplied
12 by an electric utility and the electricity generated by a customer-generator
13 that is fed back to the electric utility over the applicable billing period.
14 (7) "Net metering system" means a facility for the production of electric
15 energy that:
16 (a) Uses an eligible renewable energy resource to generate electricity;
17 (b) Has a generating capacity of not more than one hundred twenty-five
18 (125) kilowatts for irrigation and large commercial customers, or sixty-
19 five (65) kilowatts for all other customers;
20 (c) Is located on the customer-generator's premises;
21 (d) Operates in parallel with an electric utility's existing transmission
22 and distribution facilities; and
23 (e) Is intended primarily to offset part or all of the customer-
24 generator's requirements for electricity.
25 61-803. NET METERING. An electric utility:
26 (1) Shall offer to make net metering available to customer-generators on
27 a first-come, first-served basis; provided that after the cumulative generat-
28 ing capacity of net metering systems equals one-half of one percent (0.5%) of
29 the utility's single hour peak load during the previous year, the obligation
30 of a utility to offer net metering to a new customer-generator may be limited
31 by the commission, for a public utility, or by the governing body for other
32 electric utilities, in order to balance the interests of retail customers.
33 When limiting net metering obligations under this subsection, the commis-
34 sion, for a public utility, or the governing body for other electric utilities
35 shall consider the economic, environmental and other public policy benefits of
36 a net metering system. The commission may limit net metering obligations under
37 this subsection only following notice and opportunity for public comment. The
38 governing body for other electric utilities, may limit net metering obliga-
39 tions only following notice and opportunity for comment from the customers of
40 the utility, cooperative or district;
41 (2) Shall allow net metering facilities to be interconnected using a
42 standard kilowatt hour meter that is capable of registering the flow of elec-
43 tricity in two (2) directions;
44 (3) May, at its own expense, install one (1) or more additional meters to
45 monitor the flow of electricity in each direction;
46 (4) Shall charge the customer-generator a minimum monthly fee that is the
47 same as other customers of the electric utility in the same rate class, but
48 shall not charge the customer-generator any additional standby, capacity,
49 interconnection or other fee or charge;
50 (5) Shall disclose annually the availability of the net metering program
51 to each of its customers, with the method of disclosure being at the discre-
52 tion of the electric utility.
53 61-804. NET ENERGY MEASUREMENT -- BILLING. Consistent with the other pro-
3
1 visions of this chapter, the net energy measurement must be calculated in the
2 following manner:
3 (1) For a customer-generator, an electric utility shall measure the net
4 electricity produced or consumed during the billing period in accordance with
5 normal metering practices;
6 (2) If the electricity supplied by the electric utility exceeds the elec-
7 tricity generated by the customer-generator and fed back to the electric util-
8 ity during the billing period, the customer-generator shall be billed for the
9 net electricity supplied by the electric utility in accordance with normal
10 metering practices;
11 (3) If the electricity generated by the customer-generator exceeds the
12 electricity supplied by the electric utility, the customer-generator shall be
13 billed for the appropriate customer charges for that billing period, in accor-
14 dance with section 61-803, Idaho Code, and shall be credited for the excess
15 kilowatt hours generated during the billing period, with this kilowatt hour
16 credit applied to the following billing period.
17 61-805. NET METERING SYSTEMS. (1) A net metering system used by a
18 customer-generator shall include, at the customer-generator's own expense, all
19 equipment necessary to meet applicable safety, power quality and interconnec-
20 tion requirements established by the National Electrical Code, National Elec-
21 trical Safety Code, the Institute of Electrical and Electronics Engineers and
22 Underwriters Laboratories, Inc.
23 (2) An electric utility may not require a customer-generator whose net
24 metering system meets the standards in subsection (1) of this section to com-
25 ply with additional safety or performance standards, perform or pay for addi-
26 tional tests, or purchase additional liability insurance. An electric utility
27 shall not be liable directly or indirectly for permitting or continuing to
28 allow an attachment of a net metering system, or for the acts or omissions of
29 the customer-generator that cause loss or injury, including death, to any
30 third party.
31 (3) A maximum number of ten (10) customer-generators may jointly share a
32 single net metering system, provided:
33 (a) That a net metering system jointly shared by multiple customers shall
34 comply with the generating capacity limitation provided in this chapter;
35 and
36 (b) That an electric utility may require customer-generators jointly
37 sharing a single net metering system to designate a customer representa-
38 tive to communicate with the utility in ensuring compliance with this
39 chapter.
STATEMENT OF PURPOSE
RS 11539C2
The purpose of this legislation is to provide for a program
of net metering for utility customers with small-scale, electric
generating facilities utilizing renewable fuels to encourage
private investment in renewable energy sources, stimulate the
economic growth of the state, provide customers with options to
reduce demand for utility provided power, increase energy
independence and security, and enhance the continued
diversification of Idaho's energy resources.
FISCAL IMPACT
NONE.
Contact
Name: Sen. Clint Stennett
Phone: 208/332-1531
STATEMENT OF PURPOSE/FISCAL NOTE S 1368