2002 Legislation
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SENATE BILL NO. 1368 – Net energy metering


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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

Bill Text

  ||||              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
  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
  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-
  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 / Fiscal Impact

                       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


Name: Sen. Clint Stennett 
Phone: 208/332-1531