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S.B. 208 Enrolled

             1     

PUBLIC UTILITY MODIFICATIONS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Curtis S. Bramble

             5     
House Sponsor: James A. Dunnigan

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions related to net metering of electricity.
             10      Highlighted Provisions:
             11          This bill:
             12          .    modifies definitions;
             13          .    provides that the Public Service Commission shall grant certain unused credits to
             14      low-income assistance programs or for another use as determined by the Public
             15      Service Commission;
             16          .    addresses customer charges, credits, and ratemaking;
             17          .    addresses a requirement for a customer to provide equipment; and
             18          .    makes technical and conforming changes.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25           54-15-102 , as last amended by Laws of Utah 2013, Chapter 136
             26           54-15-104 , as last amended by Laws of Utah 2008, Chapter 244
             27           54-15-106 , as last amended by Laws of Utah 2008, Chapter 244
             28      ENACTS:
             29           54-15-105.1 , Utah Code Annotated 1953


             30      REPEALS:
             31           54-15-105 , as last amended by Laws of Utah 2008, Chapter 244
             32     
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 54-15-102 is amended to read:
             35           54-15-102. Definitions.
             36          As used in this chapter:
             37          (1) "Annualized billing period" means:
             38          (a) a 12-month billing cycle beginning on April 1 of one year and ending on March 31
             39      of the following year; or
             40          (b) an additional 12-month billing cycle as defined by an electrical corporation's net
             41      metering tariff or rate schedule.
             42          (2) "Customer-generated electricity" means electricity that:
             43          (a) is generated by a customer generation system for a customer participating in a net
             44      metering program;
             45          (b) exceeds the electricity the customer needs for the customer's own use; and
             46          (c) is supplied to the electrical corporation administering the net metering program.
             47          (3) "Customer generation system":
             48          (a) means an eligible facility that is used to supply energy to or for a specific customer
             49      that:
             50          (i) has a generating capacity of:
             51          (A) not more than 25 kilowatts for a residential facility; or
             52          (B) not more than two megawatts for a non-residential facility, unless the governing
             53      authority approves a greater generation capacity;
             54          (ii) is located on, or adjacent to, the premises of the electrical corporation's customer,
             55      subject to the electrical corporation's service requirements;
             56          (iii) operates in parallel and is interconnected with the electrical corporation's
             57      distribution facilities;


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


             86      a monthly billing period, as measured at the electrical corporation's meter.
             87          (7) "Fuel cell" means a device in which the energy of a reaction between a fuel and an
             88      oxidant is converted directly and continuously into electrical energy.
             89          (8) "Governing authority" means:
             90          (a) for a distribution electrical cooperative, its board of directors; and
             91          (b) for each other electrical corporation, the Public Service Commission.
             92          (9) "Inverter" means a device that:
             93          (a) converts direct current power into alternating current power that is compatible with
             94      power generated by an electrical corporation; and
             95          (b) has been designed, tested, and [UL] certified to UL1741 and installed and operated
             96      in accordance with the latest revision of IEEE1547 [standards], as amended.
             97          (10) "Net electricity" means the difference, as measured at the meter owned by the
             98      electrical corporation between:
             99          (a) the amount of electricity that an electrical corporation supplies to a customer
             100      participating in a net metering program; and
             101          (b) the amount of customer-generated electricity delivered to the electrical corporation.
             102          (11) "Net metering" means measuring the amount of net electricity for the applicable
             103      billing period.
             104          (12) "Net metering program" means a program administered by an electrical
             105      corporation whereby a customer with a customer generation system may:
             106          (a) generate electricity primarily for the customer's own use;
             107          (b) supply customer-generated electricity to the electrical corporation; and
             108          (c) if net metering results in excess customer-generated electricity during a billing
             109      period, receive a credit [under] as provided in Section 54-15-104 .
             110          (13) "Switchgear" means the combination of electrical disconnects, fuses, or circuit
             111      breakers:
             112          (a) used to:
             113          (i) isolate electrical equipment; and


             114          (ii) de-energize equipment to allow work to be performed or faults downstream to be
             115      cleared; and
             116          (b) that is:
             117          (i) designed, tested, and [UL] certified to UL1741; and
             118          (ii) installed and operated in accordance with the latest revision of IEEE1547
             119      [standards], as amended.
             120          Section 2. Section 54-15-104 is amended to read:
             121           54-15-104. Charges or credits for net electricity.
             122          (1) Each electrical corporation with a customer participating in a net metering program
             123      shall measure net electricity during each monthly billing period, in accordance with normal
             124      metering practices.
             125          (2) If net metering does not result in excess customer-generated electricity during the
             126      monthly billing period, the electrical corporation shall bill the customer for the net electricity,
             127      in accordance with normal billing practices.
             128          (3) [If] Subject to Subsection (4), if net metering results in excess customer-generated
             129      electricity during the monthly billing period:
             130          (a) (i) the electrical corporation shall credit the customer for the excess
             131      customer-generated electricity based on the meter reading for the billing period at a value that
             132      is at least avoided cost, or as determined by the governing authority; and
             133          (ii) all credits that the customer does not use during the annualized billing period
             134      expire at the end of the annualized billing period; and
             135          (b) as authorized by the governing authority, the electrical corporation may bill the
             136      customer for customer charges that otherwise would have accrued during that billing period in
             137      the absence of excess customer-generated electricity.
             138          (4) At the end of an annualized billing period, an electrical corporation's avoided cost
             139      value of remaining unused credits described in Subsection (3)(a) shall be granted:
             140          (a) to the electrical corporation's low-income assistance programs as determined by the
             141      commission; or


             142          (b) for another use as determined by the commission.
             143          Section 3. Section 54-15-105.1 is enacted to read:
             144          54-15-105.1. Determination of costs and benefits -- Determination of just and
             145      reasonable charge, credit, or ratemaking structure.
             146          The governing authority shall:
             147          (1) determine, after appropriate notice and opportunity for public comment, whether
             148      costs that the electrical corporation or other customers will incur from a net metering program
             149      will exceed the benefits of the net metering program, or whether the benefits of the net
             150      metering program will exceed the costs; and
             151          (2) determine a just and reasonable charge, credit, or ratemaking structure, including
             152      new or existing tariffs, in light of the costs and benefits.
             153          Section 4. Section 54-15-106 is amended to read:
             154           54-15-106. Customer to provide equipment necessary to meet certain
             155      requirements -- Governing authority may adopt additional reasonable requirements --
             156      Testing and inspection of interconnection.
             157          (1) Each customer participating in a net metering program shall provide at the
             158      customer's expense all equipment necessary to meet:
             159          (a) applicable local and national standards regarding electrical and fire safety, power
             160      quality, and interconnection requirements established by the National Electrical Code, the
             161      National Electrical Safety Code, the Institute of Electrical and Electronics Engineers, and
             162      Underwriters Laboratories[.]; and
             163          (b) any other utility interconnection requirements as determined by the commission by
             164      rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             165          (2) After appropriate notice and opportunity for public comment, the governing
             166      authority may by rule adopt additional reasonable safety, power quality, and interconnection
             167      requirements for customer generation systems that the governing authority considers to be
             168      necessary to protect public safety and system reliability.
             169          (3) (a) If a customer participating in a net metering program complies with


             170      requirements referred to under Subsection (1) and additional requirements established under
             171      Subsection (2), an electrical corporation may not require that customer to:
             172          (i) perform or pay for additional tests; or
             173          (ii) purchase additional liability insurance.
             174          (b) An electrical corporation may not be held directly or indirectly liable for permitting
             175      or continuing to permit an interconnection of a customer generation system to the electrical
             176      corporation's system or for an act or omission of a customer participating in a net metering
             177      program for loss, injury, or death to a third party.
             178          (4) An electrical corporation may test and inspect an interconnection at times that the
             179      electrical corporation considers necessary to ensure the safety of electrical workers and to
             180      preserve the integrity of the electric power grid.
             181          (5) The electrical function, operation, or capacity of a customer generation system, at
             182      the point of connection to the electrical corporation's distribution system, may not compromise
             183      the quality of service to the electrical corporation's other customers.
             184          Section 5. Repealer.
             185          This bill repeals:
             186          Section 54-15-105 , No additional fee or charge without governing authority
             187      approval -- Exception.


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