Chief Sponsor: Wayne A. Harper

House Sponsor: ____________


8     General Description:
9          This bill modifies provisions regarding the net metering of electricity.
10     Highlighted Provisions:
11          This bill:
12          ▸     makes changes to when an electrical corporation may discontinue offering a net
13     metering program to the electrical corporation's customers not already participating
14     in the program;
15          ▸     requires an electrical corporation to provide credits to customers at the prevailing
16     rate for customer-generated electricity;
17          ▸     requires an electrical corporation to donate unused credits to the public education
18     foundation located in the customer's geographic area, unless the customer directs the
19     credits to the electrical corporation's low-income assistance programs;
20          ▸     requires an electrical corporation to obtain approval from the governing authority
21     before issuing a charge or fee to a customer participating in a net metering program;
22     and
23          ▸     repeals a section that tasks the governing authority with creating appropriate
24     customer fees or charges for a net metering program.
25     Money Appropriated in this Bill:
26          None
27     Other Special Clauses:

28          None
29     Utah Code Sections Affected:
30     AMENDS:
31          54-15-103, as last amended by Laws of Utah 2008, Chapter 244
32          54-15-104, as last amended by Laws of Utah 2015, Chapter 324
33     ENACTS:
34          54-15-105.2, Utah Code Annotated 1953
35     REPEALS:
36          54-15-105.1, as enacted by Laws of Utah 2014, Chapter 53

38     Be it enacted by the Legislature of the state of Utah:
39          Section 1. Section 54-15-103 is amended to read:
40          54-15-103. Net metering program -- Metering equipment -- Interconnection
41     agreement.
42          (1) Each electrical corporation shall:
43          (a) [except as provided in Subsection (2),] make a net metering program available to
44     the electrical corporation's customers; and
45          (b) allow customer generation systems to be interconnected to the electrical
46     corporation's facilities using, except as provided in Subsection [(4)] (2), a kilowatt-hour meter
47     capable of net metering.
48          [(2) An electrical corporation may discontinue making a net metering program
49     available to customers not already participating in the program if:]
50          [(a) the cumulative generating capacity of customer generation systems in the program
51     equals at least .1% of the electrical corporation's peak demand during 2007; or]
52          [(b) the electrical corporation serves fewer than 1,000 customers in the state.]
53          [(3) (a) Notwithstanding Subsection (2)(a), the governing authority may establish a
54     higher amount of generating capacity from customer generation systems than .1% of the
55     electrical corporation's peak demand during 2007 before a net metering program may be
56     discontinued under Subsection (2).]
57          [(b) Before acting under Subsection (3)(a), the governing authority shall provide public
58     notice of its proposed action and an opportunity for public comment.]

59          [(4)] (2) (a) Notwithstanding Subsection (1)(b), an electrical corporation may require a
60     customer participating in the electrical corporation's net metering program to use metering
61     equipment other than a standard kilowatt-hour meter if the governing authority, after
62     appropriate notice and opportunity for public comment:
63          (i) determines that the use of other metering equipment is necessary and appropriate to
64     monitor the flow of electricity from and to the electrical corporation; and
65          (ii) approves the requirement for other metering equipment, after considering the
66     benefits and costs associated with the other metering equipment.
67          (b) If the governing authority approves the requirement for other metering equipment
68     under Subsection [(4)(a)] (2)(a), the governing authority shall determine how the cost of
69     purchasing and installing the other metering equipment is to be allocated between the electrical
70     corporation and the customer.
71          [(5)] (3) An electrical corporation may require a customer to enter into an
72     interconnection agreement before connecting the customer generation system to the electrical
73     corporation's facilities.
74          Section 2. Section 54-15-104 is amended to read:
75          54-15-104. Charges or credits for net electricity.
76          (1) Each electrical corporation with a customer participating in a net metering program
77     shall measure net electricity during each monthly billing period, in accordance with normal
78     metering practices.
79          (2) If net metering does not result in excess customer-generated electricity during the
80     monthly billing period, the electrical corporation shall bill the customer for the net electricity,
81     in accordance with normal billing practices.
82          (3) Subject to Subsection (4), if net metering results in excess customer-generated
83     electricity during the monthly billing period, the electrical corporation:
84          (a) [(i) the electrical corporation] shall credit the customer for the excess
85     customer-generated electricity based on the meter reading for the billing period [at a value that
86     is at least avoided cost, or as determined by the governing authority] at the prevailing retail rate
87     for customer-generated electricity; and
88          [(ii)] (b) shall donate all credits that the customer does not use during the annualized
89     billing period [expire at the end of the annualized billing period; and] in accordance with

90     Subsection (4).
91          [(b) as authorized by the governing authority, the electrical corporation may bill the
92     customer for customer charges that otherwise would have accrued during that billing period in
93     the absence of excess customer-generated electricity.]
94          (4) At the end of an annualized billing period, an electrical corporation's avoided cost
95     value of remaining unused credits described in Subsection [(3)(a)] (3) shall be [granted]
96     donated:
97          (a) to the public education foundation for the customer's geographic area as described
98     in Section 53E-3-501; or
99          (b) if elected by the customer, to the electrical corporation's low-income assistance
100     programs [as determined by the governing authority; or] for use in the state.
101          [(b) for another use as determined by the governing authority.]
102          (5) Within 90 days after the day on which an annualized billing period ends, the
103     electrical corporation shall provide each customer with a donor statement detailing the amounts
104     donated by the customer in accordance with Subsection (4).
105          Section 3. Section 54-15-105.2 is enacted to read:
106          54-15-105.2. No additional fee or charge without governing authority approval --
107     Exception.
108          (1) An electrical corporation administering a net metering program may not charge, or
109     continue to charge, a customer participating in the program an additional standby, capacity,
110     interconnection, or other fee or charge, unless, after appropriate notice and opportunity for
111     comment, the governing authority:
112          (a) determines that:
113          (i) the electrical corporation will incur direct costs from the interconnection or from
114     administering the net metering program that exceed the benefits resulting from the program;
115     and
116          (ii) public policy is best served by imposing the fee or charge on the customer
117     participating in the net metering program rather than by allocating the fee or charge among the
118     electrical corporation's entire customer base; and
119          (b) authorizes the additional fee or charge.
120          (2) If a cost of a net metering program is allocated among the electrical corporation's

121     entire customer base, an electrical corporation may charge a customer participating in the net
122     metering program for that cost to the same extent that the electrical corporation charges a
123     customer not participating in the program for that cost.
124          Section 4. Repealer.
125          This bill repeals:
126          Section 54-15-105.1, Determination of costs and benefits -- Determination of just
127     and reasonable charge, credit, or ratemaking structure.