1     
NET METERING ENERGY AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Wayne A. Harper

5     
House Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions regarding the net metering of electricity.
10     Highlighted Provisions:
11          This bill:
12          ▸     changes how a customer's credit for customer-generated energy is calculated.
13     Money Appropriated in this Bill:
14          None
15     Other Special Clauses:
16          None
17     Utah Code Sections Affected:
18     AMENDS:
19          54-15-104, as last amended by Laws of Utah 2015, Chapter 324
20          54-15-105.1, as enacted by Laws of Utah 2014, Chapter 53
21     

22     Be it enacted by the Legislature of the state of Utah:
23          Section 1. Section 54-15-104 is amended to read:
24          54-15-104. Charges or credits for net electricity.
25          (1) Each electrical corporation with a customer participating in a net metering program
26     shall measure net electricity during each monthly billing period, in accordance with normal
27     metering practices.

28          (2) If net metering does not result in excess customer-generated electricity during the
29     monthly billing period, the electrical corporation shall bill the customer for the net electricity,
30     in accordance with normal billing practices.
31          (3) Subject to Subsection (4), if net metering results in excess customer-generated
32     electricity during the monthly billing period:
33          (a) (i) the electrical corporation shall credit the customer for the excess
34     customer-generated electricity based on the meter reading for the billing period at a value that
35     is at least avoided cost[, or as determined by the governing authority] and as determined in
36     Section 54-15-105.1; and
37          (ii) all credits that the customer does not use during the annualized billing period
38     expire at the end of the annualized billing period; and
39          (b) as authorized by the governing authority, the electrical corporation may bill the
40     customer for customer charges that otherwise would have accrued during that billing period in
41     the absence of excess customer-generated electricity.
42          (4) At the end of an annualized billing period, an electrical corporation's avoided cost
43     value of remaining unused credits described in Subsection (3)(a) shall be granted:
44          (a) to the electrical corporation's low-income assistance programs for incremental
45     benefits as determined by the governing authority; or
46          (b) for another use as determined by the governing authority for the benefit of
47     low-income customers.
48          Section 2. Section 54-15-105.1 is amended to read:
49          54-15-105.1. Determination of costs and benefits -- Determination of just and
50     reasonable charge, credit, or ratemaking structure.
51          (1) As used in this section, "actual customer cost" means the average total customer
52     cost of electricity service on a given electric service rate schedule, including the retail energy
53     charges, and customer charges, divided by the average monthly electricity consumption
54     measured in kilowatt-hours, utilizing data from the last completed rate case.
55          (2) The governing authority shall:
56          [(1)] (a) determine, after appropriate notice and opportunity for public comment,
57     whether costs that the electrical corporation or other customers will incur from a net metering
58     program will exceed the benefits of the net metering program, or whether the benefits of the net

59     metering program will exceed the costs; and
60          [(2)] (b) determine a just and reasonable charge, credit, or ratemaking structure,
61     including new or existing tariffs, in light of the costs and benefits.
62          (3) For residential and small commercial customers served by a large-scale electric
63     utility, when determining a just and reasonable credit described in Subsection (2)(b), the
64     governing authority shall approve a credit that is at least 84% of the actual customer cost.
65          Section 3. Effective date.
66          This bill takes effect on May 1, 2024.