7 LONG TITLE
8 General Description:
9 This bill amends provisions relating to the net metering of electricity program.
10 Highlighted Provisions:
11 This bill:
12 ▸ amends definitions;
13 ▸ requires an electrical corporation to pay cash to certain customers who produce
14 customer-generated electricity;
15 ▸ specifies requirements for an electrical corporation to charge an interconnection fee
16 for an interconnection of a customer generation system to the electrical corporation's
17 system; and
18 ▸ makes technical changes.
19 Money Appropriated in this Bill:
21 Other Special Clauses:
23 Utah Code Sections Affected:
25 54-15-102, as last amended by Laws of Utah 2014, Chapter 53
26 54-15-104, as last amended by Laws of Utah 2015, Chapter 324
27 54-15-106, as last amended by Laws of Utah 2014, Chapter 53
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 54-15-102 is amended to read:
31 54-15-102. Definitions.
32 As used in this chapter:
33 (1) "Annualized billing period" means:
34 (a) a 12-month billing cycle beginning on April 1 of one year and ending on March 31
35 of the following year; or
36 (b) an additional 12-month billing cycle as defined by an electrical corporation's net
37 metering tariff or rate schedule.
38 (2) "Customer-generated electricity" means electricity that:
39 (a) is generated by a customer generation system for a customer participating in a net
40 metering program;
41 (b) exceeds the electricity the customer needs for the customer's own use; and
42 (c) is supplied to the electrical corporation administering the net metering program.
43 (3) "Customer generation system":
44 (a) means an eligible facility that is used to supply energy to or for a specific customer
46 (i) has a generating capacity of:
47 (A) not more than 25 kilowatts for a residential facility; or
48 (B) not more than two megawatts for a non-residential facility, unless the governing
49 authority approves a greater generation capacity;
50 (ii) is located on, or adjacent to, the premises of the electrical corporation's customer,
51 subject to the electrical corporation's service requirements;
52 (iii) operates in parallel and is interconnected with the electrical corporation's
53 distribution facilities;
54 (iv) is intended primarily to offset part or all of the customer's requirements for
55 electricity; and
56 (v) is controlled by an inverter; and
57 (b) includes an electric generator and its accompanying equipment package.
58 (4) "Eligible facility" means a facility that uses energy derived from one of the
59 following to generate electricity:
60 (a) solar photovoltaic and solar thermal energy;
61 (b) wind energy;
62 (c) hydrogen;
63 (d) organic waste;
64 (e) hydroelectric energy;
65 (f) waste gas and waste heat capture or recovery;
66 (g) biomass and biomass byproducts, except for the combustion of:
67 (i) wood that has been treated with chemical preservatives such as creosote,
68 pentachlorophenol, or chromated copper arsenate; or
69 (ii) municipal waste in a solid form;
70 (h) forest or rangeland woody debris from harvesting or thinning conducted to improve
71 forest or rangeland ecological health and to reduce wildfire risk;
72 (i) agricultural residues;
73 (j) dedicated energy crops;
74 (k) landfill gas or biogas produced from organic matter, wastewater, anaerobic
75 digesters, or municipal solid waste; or
76 (l) geothermal energy.
77 (5) "Equipment package" means a group of components connecting an electric
78 generator to an electric distribution system, including all interface equipment and the interface
79 equipment's controls, switchgear, inverter, and other interface devices.
80 (6) "Excess customer-generated electricity" means the amount of customer-generated
81 electricity in excess of the customer's consumption from the customer generation system during
82 a monthly billing period, as measured at the electrical corporation's meter.
83 (7) "Fuel cell" means a device in which the energy of a reaction between a fuel and an
84 oxidant is converted directly and continuously into electrical energy.
85 (8) "Governing authority" means:
86 (a) for a distribution electrical cooperative, its board of directors; and
87 (b) for each other electrical corporation, the Public Service Commission.
88 (9) "Inverter" means a device that:
89 (a) converts direct current power into alternating current power that is compatible with
90 power generated by an electrical corporation; and
91 (b) has been designed, tested, and certified to UL1741 and installed and operated in
92 accordance with the latest revision of IEEE1547, as amended.
93 (10) "Net electricity" means the difference, as measured at the meter owned by the
94 electrical corporation between:
95 (a) the amount of electricity that an electrical corporation supplies to a customer
96 participating in a net metering program; and
97 (b) the amount of customer-generated electricity delivered to the electrical corporation.
98 (11) "Net metering" means measuring the amount of net electricity for the applicable
99 billing period.
100 (12) "Net metering program" means a program administered by an electrical
101 corporation whereby a customer with a customer generation system may:
102 (a) generate electricity primarily for the customer's own use;
103 (b) supply customer-generated electricity to the electrical corporation; and
104 (c) if net metering results in excess customer-generated electricity during a billing
105 period, receive cash or a credit as provided in Section 54-15-104.
106 (13) "Switchgear" means the combination of electrical disconnects, fuses, or circuit
108 (a) used to:
109 (i) isolate electrical equipment; and
110 (ii) de-energize equipment to allow work to be performed or faults downstream to be
111 cleared; and
112 (b) that is:
113 (i) designed, tested, and certified to UL1741; and
114 (ii) installed and operated in accordance with the latest revision of IEEE1547, as
116 Section 2. Section 54-15-104 is amended to read:
117 54-15-104. Charges or credits for net electricity.
118 (1) Each electrical corporation with a customer participating in a net metering program
119 shall measure net electricity during each monthly billing period, in accordance with normal
120 metering practices.
121 (2) If net metering does not result in excess customer-generated electricity during the
122 monthly billing period, the electrical corporation shall bill the customer for the net electricity,
123 in accordance with normal billing practices.
124 (3) Subject to Subsection (4), if net metering results in excess customer-generated
125 electricity during the monthly billing period:
126 (a) (i) (A) if a customer elects to receive cash payment, the electrical corporation shall
127 pay cash to a customer for the excess customer-generated electricity based on the meter reading
128 for the billing period at rates established under Title 54, Chapter 12, Small Power Production
129 and Cogeneration, for facilities of up to three megawatts; or
130 (B) if the customer elects to receive credit, the electrical corporation shall credit the
131 customer for the excess customer-generated electricity based on the meter reading for the
132 billing period at a value that is at least avoided cost, or as determined by the governing
133 authority; and
134 (ii) all credits that the customer does not use during the annualized billing period
135 expire at the end of the annualized billing period; and
136 (b) as authorized by the governing authority, the electrical corporation may bill the
137 customer for customer charges that otherwise would have accrued during that billing period in
138 the absence of excess customer-generated electricity.
139 (4) At the end of an annualized billing period, an electrical corporation's avoided cost
140 value of remaining unused credits described in Subsection (3)(a) shall be granted:
141 (a) to the electrical corporation's low-income assistance programs as determined by the
142 governing authority; or
143 (b) for another use as determined by the governing authority.
144 Section 3. Section 54-15-106 is amended to read:
145 54-15-106. Customer to provide equipment necessary to meet certain
146 requirements -- Governing authority may adopt additional reasonable requirements --
147 Testing and inspection of interconnection.
148 (1) Each customer participating in a net metering program shall provide at the
149 customer's expense all equipment necessary to meet:
150 (a) applicable local and national standards regarding electrical and fire safety, power
151 quality, and interconnection requirements established by the National Electrical Code, the
152 National Electrical Safety Code, the Institute of Electrical and Electronics Engineers, and
153 Underwriters Laboratories; and
154 (b) any other utility interconnection requirements as determined by the commission by
155 rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
156 (2) After appropriate notice and opportunity for public comment, the governing
157 authority may by rule adopt additional reasonable safety, power quality, and interconnection
158 requirements for customer generation systems that the governing authority considers to be
159 necessary to protect public safety and system reliability.
160 (3) (a) If a customer participating in a net metering program complies with
161 requirements referred to under Subsection (1) and additional requirements established under
162 Subsection (2), an electrical corporation may not require that customer to:
163 (i) perform or pay for additional tests; or
164 (ii) purchase additional liability insurance.
165 (b) An electrical corporation may not be held directly or indirectly liable for permitting
166 or continuing to permit an interconnection of a customer generation system to the electrical
167 corporation's system or for an act or omission of a customer participating in a net metering
168 program for loss, injury, or death to a third party.
169 (4) An electrical corporation may test and inspect an interconnection at times that the
170 electrical corporation considers necessary to ensure the safety of electrical workers and to
171 preserve the integrity of the electric power grid.
172 (5) The electrical function, operation, or capacity of a customer generation system, at
173 the point of connection to the electrical corporation's distribution system, may not compromise
174 the quality of service to the electrical corporation's other customers.
175 (6) (a) Except as provided in Subsection (6)(b), an electrical corporation administering
176 a net metering program:
177 (i) may not charge a customer an interconnection fee of more than $2 during a monthly
178 billing period for an interconnection of a customer generation system to the electrical
179 corporation's system if the customer has zero power consumption during a monthly billing
180 period; or
181 (ii) may not charge a customer an interconnection fee of more than $2 during a
182 monthly billing period for an interconnection of a customer generation system to the electrical
183 corporation's system if the customer is enrolled in a net-metering credit program as described in
184 Subsection 54-15-104(3)(a)(i)(B) or (3)(b).
185 (b) An electrical corporation may charge a customer an interconnection fee of more
186 than $2 during a monthly billing period for an interconnection of a customer generation system
187 to the electrical corporation's system if the customer is selling excess customer-generated
188 electricity for cash as described in Subsection 54-15-104(3)(a)(i)(A).
Legislative Review Note
Office of Legislative Research and General Counsel