Download Zipped Introduced WordPerfect SB0084S01.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

First Substitute S.B. 84

Senator Kevin T. VanTassell proposes the following substitute bill:


             1     
NET METERING PROGRAMS

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Kevin T. VanTassell

             5     
House Sponsor: Roger E. Barrus

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill addresses provisions allowing the net metering of electricity for an electrical
             10      corporation's customers.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    expands the type of eligible facilities that may qualify for a net metering program;
             15          .    changes the circumstances under which an electric corporation's discontinuance of a
             16      net metering program is allowed;
             17          .    allows various decisions to be made by a governing authority instead of solely by
             18      the Public Service Commission;
             19          .    provides methods for a governing authority's determination of the value of excess
             20      customer-generated electricity;
             21          .    requires that a customer generation system not compromise the quality of service
             22      for an electrical corporation's other customers;
             23          .    addresses the applicability of net metering provisions to a small electrical
             24      corporation headquartered in another state; and
             25          .    makes technical changes.


             26      Monies Appropriated in this Bill:
             27          None
             28      Other Special Clauses:
             29          None
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          54-15-102, as enacted by Laws of Utah 2002, Chapter 6
             33          54-15-103, as enacted by Laws of Utah 2002, Chapter 6
             34          54-15-104, as enacted by Laws of Utah 2002, Chapter 6
             35          54-15-105, as enacted by Laws of Utah 2002, Chapter 6
             36          54-15-106, as last amended by Laws of Utah 2003, Chapter 131
             37      ENACTS:
             38          54-15-107, Utah Code Annotated 1953
             39     
             40      Be it enacted by the Legislature of the state of Utah:
             41          Section 1. Section 54-15-102 is amended to read:
             42           54-15-102. Definitions.
             43          As used in this chapter:
             44          (1) "Annualized billing period" means a 12-month billing cycle beginning on April 1 of
             45      one year and ending on March 31 of the following year.
             46          [(1)] (2) "Customer-generated electricity" means electricity that:
             47          (a) is generated by a customer participating in a net metering program from a customer
             48      generation system;
             49          (b) exceeds the electricity the customer needs for the customer's own use; and
             50          (c) is supplied to the electrical corporation administering the net metering program.
             51          [(2)] (3) "Customer generation system":
             52          (a) means a [fuel cell or renewable] customer-owned or customer-leased eligible
             53      facility, operated by the customer, that:
             54          [(a)] (i) has a generating capacity of:
             55          (A) not more than 25 kilowatts for a residential facility; or
             56          (B) not more than 2 megawatts for a non-residential facility, unless the governing


             57      authority approves a greater generation capacity;
             58          [(b)] (ii) is located on, or adjacent to, the premises of the electrical corporation's
             59      customer, subject to the electrical corporation's service requirements;
             60          [(c)] (iii) operates in parallel and is interconnected with the electrical corporation's
             61      [transmission and] distribution facilities;
             62          [(d)] (iv) is intended primarily to offset part or all of the customer's requirements for
             63      electricity; and
             64          [(e)] (v) is controlled by an inverter[.] or switchgear; and
             65          (b) includes an electric generator and its accompanying equipment package.
             66          (4) "Eligible facility" means a facility that uses energy derived from one of the
             67      following to generate electricity:
             68          (a) solar photovoltaic and solar thermal energy;
             69          (b) wind energy;
             70          (c) hydrogen;
             71          (d) organic waste;
             72          (e) hydroelectric energy;
             73          (f) waste gas and waste heat capture or recovery;
             74          (g) biomass and biomass byproducts, except for the combustion of:
             75          (i) wood that has been treated with chemical preservatives such as creosote,
             76      pentachlorophenol, or chromated copper arsenate; or
             77          (ii) municipal waste in a solid form;
             78          (h) forest or rangeland woody debris from harvesting or thinning conducted to improve
             79      forest or rangeland ecological health and to reduce wildfire risk;
             80          (i) agricultural residues;
             81          (j) dedicated energy crops;
             82          (k) landfill gas or biogas produced from organic matter, wastewater, anaerobic
             83      digesters, or municipal solid waste; or
             84          (l) geothermal energy.
             85          (5) "Equipment package" means a group of components connecting an electric
             86      generator to an electric distribution system, including all interface equipment and the interface
             87      equipment's controls, switchgear, inverter, and other interface devices.


             88          [(3)] (6) "Excess customer-generated electricity" means the amount of
             89      customer-generated electricity in excess of the customer's consumption from the customer
             90      generation system during a monthly billing period [that exceeds the amount of electricity that
             91      an electrical corporation supplies to the customer during that billing period], as measured at the
             92      electrical corporation's meter.
             93          [(4)] (7) "Fuel cell" means a device in which the energy of a reaction between a fuel
             94      and an oxidant is converted directly and continuously into electrical energy.
             95          [(5)] (8) "Governing authority" means:
             96          (a) for a distribution electrical cooperative, its board of directors; and
             97          (b) for each other electrical corporation, the Public Service Commission.
             98          [(6)] (9) "Inverter" means a device that:
             99          (a) converts direct current power into alternating current power that is compatible with
             100      power generated by an electrical corporation; and
             101          (b) has been designed, tested, and UL certified to UL1741 and [IEEE929] installed and
             102      operated in accordance with IEEE1547 standards.
             103          [(7)] (10) "Net electricity" means the difference, as measured at the meter owned by the
             104      electrical corporation between:
             105          (a) the amount of electricity that an electrical corporation supplies to a customer
             106      participating in a net metering program; and
             107          (b) the amount of customer-generated electricity delivered to the electrical corporation.
             108          [(8)] (11) "Net metering" means measuring the amount of net electricity for the
             109      applicable billing period [the difference between:].
             110          [(a) the amount of electricity that an electrical corporation supplies to a customer
             111      participating in a net metering program; and]
             112          [(b) the amount of customer-generated electricity.]
             113          [(9)] (12) "Net metering program" means a program administered by [a] an electrical
             114      corporation whereby a customer with a customer generation system may:
             115          (a) generate electricity primarily for the customer's own use;
             116          (b) supply customer-generated electricity to the electrical corporation; and
             117          (c) if net metering results in excess customer-generated electricity during a billing
             118      period, receive a credit [against the cost of electricity supplied by the electrical corporation to


             119      the customer within the same calendar year] under Section 54-15-104 .
             120          [(10) "Renewable facility" means a facility that uses energy derived from the sun,
             121      wind, or water to generate electricity.]
             122          (13) "Switchgear" means the combination of electrical disconnects, fuses, or circuit
             123      breakers:
             124          (a) used to:
             125          (i) isolate electrical equipment; and
             126          (ii) de-energize equipment to allow work to be performed or faults downstream to be
             127      cleared; and
             128          (b) that is:
             129          (i) designed, tested, and UL certified to UL1741; and
             130          (ii) installed and operated in accordance with IEEE1547 standards.
             131          Section 2. Section 54-15-103 is amended to read:
             132           54-15-103. Net metering program -- Metering equipment -- Interconnection
             133      agreement.
             134          (1) Each electrical corporation shall:
             135          (a) except as provided in Subsection (2), make a net metering program available to the
             136      electrical corporation's customers; and
             137          (b) allow customer generation systems to be interconnected to the electrical
             138      corporation's facilities using, except as provided in Subsection [(3)] (4), a [standard]
             139      kilowatt-hour meter capable of net metering.
             140          (2) An electrical corporation may discontinue making a net metering program available
             141      to customers not already participating in the program [as long as] if:
             142          (a) the cumulative generating capacity of customer generation systems in the program
             143      equals at least .1% of the electrical corporation's peak demand during [2001; and] 2007; or
             144          (b) [at least half of the electricity representing the .1% figure in Subsection (2)(a) is
             145      generated by renewable facilities] the electrical corporation serves fewer than 1,000 customers
             146      in the state.
             147          (3) (a) Notwithstanding Subsection (2)(a), the governing authority may establish a
             148      higher amount of generating capacity from customer generation systems than .1% of the
             149      electrical corporation's peak demand during 2007 before a net metering program may be


             150      discontinued under Subsection (2).
             151          (b) Before acting under Subsection (3)(a), the governing authority shall provide public
             152      notice of its proposed action and an opportunity for public comment.
             153          [(3)] (4) (a) Notwithstanding Subsection (1)(b), an electrical corporation may require a
             154      customer participating in the electrical corporation's net metering program to use metering
             155      equipment other than a standard kilowatt-hour meter if the [commission] governing authority,
             156      after appropriate notice and opportunity for public comment:
             157          (i) determines that the use of other metering equipment is necessary and appropriate to
             158      monitor the flow of electricity from and to the electrical corporation; and
             159          (ii) approves the requirement for other metering equipment, after considering the
             160      benefits and costs associated with the other metering equipment.
             161          (b) If the [commission] governing authority approves the requirement for other
             162      metering equipment under Subsection [(3)] (4)(a), the governing authority shall determine how
             163      the cost of purchasing and installing the other metering equipment is to be allocated between
             164      the electrical corporation and the customer.
             165          [(4)] (5) An electrical corporation may require a customer to enter into an
             166      interconnection agreement before connecting the customer generation system to the electrical
             167      corporation's facilities.
             168          Section 3. Section 54-15-104 is amended to read:
             169           54-15-104. Charges or credits for net electricity.
             170          (1) Each electrical corporation with a customer participating in a net metering program
             171      shall measure net electricity during each monthly billing period, in accordance with normal
             172      metering practices.
             173          (2) If net metering does not result in excess customer-generated electricity during the
             174      monthly billing period, the electrical corporation shall bill the customer for the net electricity,
             175      in accordance with normal billing practices.
             176          (3) If net metering results in excess customer-generated electricity during the monthly
             177      billing period:
             178          (a) (i) the electrical corporation shall credit the customer for the excess
             179      customer-generated electricity based on the meter reading for the billing period at a value that
             180      is at least avoided cost[;], or as determined by the governing authority; and


             181          [(ii) the customer may use the credit under Subsection (3)(a)(i) to offset purchases of
             182      electricity from the electrical corporation during future billing periods during the same calendar
             183      year; and]
             184          [(iii)] (ii) all credits that the customer does not use during the [calendar year]
             185      annualized billing period expire at the end of the [calendar year] annualized billing period; and
             186          (b) as authorized by the governing authority, the electrical corporation may bill the
             187      customer for customer charges that otherwise would have accrued during that billing period in
             188      the absence of excess customer-generated electricity.
             189          Section 4. Section 54-15-105 is amended to read:
             190           54-15-105. No additional fee or charge without governing authority approval --
             191      Exception.
             192          (1) An electrical corporation administering a net metering program may not charge a
             193      customer participating in the program an additional standby, capacity, interconnection, or other
             194      fee or charge unless the governing authority, after appropriate notice and opportunity for public
             195      comment:
             196          (a) determines that:
             197          (i) the electrical corporation will incur direct costs from the interconnection or from
             198      administering the net metering program that exceed benefits, as determined by the governing
             199      authority, resulting from the program; and
             200          (ii) public policy is best served by imposing [the] a reasonable fee or charge on the
             201      customer participating in the net metering program rather than by allocating the fee or charge
             202      among the electrical corporation's entire customer base; and
             203          (b) after making its determination under Subsection (1)(a), authorizes the additional
             204      reasonable fee or charge.
             205          (2) If a cost of a net metering program is allocated among the electrical corporation's
             206      entire customer base, Subsection (1) may not be construed to prohibit an electrical corporation
             207      from charging a customer participating in the net metering program for that cost to the same
             208      extent that the electrical corporation charges a customer not participating in the program for
             209      that cost.
             210          Section 5. Section 54-15-106 is amended to read:
             211           54-15-106. Customer to provide equipment necessary to meet applicable code


             212      requirements -- Governing authority may adopt additional reasonable requirements --
             213      Testing and inspection of interconnection.
             214          (1) Each customer participating in a net metering program shall provide at the
             215      customer's expense all equipment necessary to meet applicable local and national standards
             216      regarding electrical and fire safety, power quality, and interconnection requirements established
             217      by the National Electrical Code, the National Electrical Safety Code, the Institute of Electrical
             218      and Electronics Engineers, and Underwriters Laboratories.
             219          (2) After appropriate notice and opportunity for public comment, the [commission]
             220      governing authority may by rule adopt additional reasonable safety, power quality, and
             221      interconnection requirements for customer generation systems that the [commission] governing
             222      authority considers to be necessary to protect public safety and system reliability.
             223          (3) (a) If a customer participating in a net metering program complies with
             224      requirements referred to under Subsection (1) and additional requirements established under
             225      Subsection (2), an electrical corporation may not require that customer to:
             226          (i) perform or pay for additional tests; or
             227          (ii) purchase additional liability insurance.
             228          (b) An electrical corporation may not be held directly or indirectly liable for permitting
             229      or continuing to permit an interconnection of a customer generation system to the electrical
             230      corporation's system or for an act or omission of a customer participating in a net metering
             231      program for loss, injury, or death to a third party.
             232          (4) An electrical corporation may test and inspect an interconnection at times that the
             233      electrical corporation considers necessary to ensure the safety of electrical workers and to
             234      preserve the integrity of the electric power grid.
             235          (5) The electrical function, operation, or capacity of a customer generation system, at
             236      the point of connection to the electrical corporation's distribution system, may not compromise
             237      the quality of service to the electrical corporation's other customers.
             238          Section 6. Section 54-15-107 is enacted to read:
             239          54-15-107. Application to out-of-state electrical corporation.
             240          An electrical corporation with fewer than 5,000 customers in this state that is
             241      headquartered in another state is considered to be in compliance with this chapter if the
             242      electrical corporation offers net metering to its customers in Utah in accordance with a tariff,


             243      schedule, or other requirement of the appropriate authority in the state in which the electrical
             244      corporation's headquarters are located.


[Bill Documents][Bills Directory]