California Legislature—2013–14 Regular Session

Assembly BillNo. 1104


Introduced by Assembly Member Salas

February 22, 2013


An act to amend Section 2827 of the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 1104, as introduced, Salas. Energy: net energy metering.

Existing law requires all electric service providers to develop a standard contract or tariff providing for net energy metering, and to make this contract available to eligible customer generators, upon request.

This bill would make a technical, nonsubstantive change to the above provision.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1

SECTION 1.  

Section 2827 of the Public Utilities Code is
2amended to read:

3

2827.  

(a) The Legislature finds and declares that a program
4to provide net energy metering combined with net surplus
5compensation, co-energy metering, and wind energy co-metering
6for eligible customer-generators is one way to encourage substantial
7private investment in renewable energy resources, stimulate in-state
8economic growth, reduce demand for electricity during peak
9consumption periods, help stabilize California’s energy supply
P2    1infrastructure, enhance the continued diversification of California’s
2energy resource mix, reduce interconnection and administrative
3costs for electricity suppliers, and encourage conservation and
4efficiency.

5(b) As used in this section, the following terms have the
6following meanings:

7(1) “Co-energy metering” means a program that is the same in
8all other respects as a net energy metering program, except that
9the local publicly owned electric utility has elected to apply a
10generation-to-generation energy and time-of-use credit formula
11as provided in subdivision (i).

12(2) “Electrical cooperative” means an electrical cooperative as
13defined in Section 2776.

14(3) “Electric utility” means an electrical corporation, a local
15publicly owned electric utility, or an electrical cooperative, or any
16other entity, except an electric service provider, that offers electrical
17service. This section shall not apply to a local publicly owned
18electric utility that serves more than 750,000 customers and that
19also conveys water to its customers.

20(4) “Eligible customer-generator” means a residential customer,
21small commercial customer as defined in subdivision (h) of Section
22331, or commercial, industrial, or agricultural customer of an
23electric utility, who uses a renewable electrical generation facility,
24or a combination of those facilities, with a total capacity of not
25more than one megawatt, that is located on the customer’s owned,
26leased, or rented premises, and is interconnected and operates in
27parallel with the electrical grid, and is intended primarily to offset
28part or all of the customer’s own electrical requirements.

29(5) “Renewable electrical generation facility” means a facility
30that generates electricity from a renewable source listed in
31paragraph (1) of subdivision (a) of Section 25741 of the Public
32Resources Code. A small hydroelectric generation facility is not
33an eligible renewable electrical generation facility if it will cause
34an adverse impact on instream beneficial uses or cause a change
35in the volume or timing of streamflow.

36(6) “Net energy metering” means measuring the difference
37between the electricity supplied through the electrical grid and the
38electricity generated by an eligible customer-generator and fed
39back to the electrical grid over a 12-month period as described in
40subdivisions (c) and (h).

P3    1(7) “Net surplus customer-generator” means an eligible
2customer-generator that generates more electricity during a
312-month period than is supplied by the electric utility to the
4eligible customer-generator during the same 12-month period.

5(8) “Net surplus electricity” means all electricity generated by
6an eligible customer-generator measured in kilowatthours over a
712-month period that exceeds the amount of electricity consumed
8by that eligible customer-generator.

9(9) “Net surplus electricity compensation” means a per
10kilowatthour rate offered by the electric utility to the net surplus
11customer-generator for net surplus electricity that is set by the
12ratemaking authority pursuant to subdivision (h).

13(10) “Ratemaking authority” means, for an electrical
14corporation, the commission, for an electrical cooperative, its
15ratesetting body selected by its shareholders or members, and for
16a local publicly owned electric utility, the local elected body
17responsible for setting the rates of the local publicly owned utility.

18(11) “Wind energy co-metering” means any wind energy project
19greater than 50 kilowatts, but not exceeding one megawatt, where
20the difference between the electricity supplied through the electrical
21grid and the electricity generated by an eligible customer-generator
22and fed back to the electrical grid over a 12-month period is as
23described in subdivision (h). Wind energy co-metering shall be
24accomplished pursuant to Section 2827.8.

25(c) (1) Every electric utility shall develop a standard contract
26or tariff providing for net energy metering, and shall make this
27standard contract or tariff available to eligible customer-generators,
28upon request, on a first-come-first-served basis until the time that
29the total rated generating capacity used by eligible
30customer-generators exceeds 5 percent of the electric utility’s
31aggregate customer peak demand. Net energy metering shall be
32accomplished using a single meter capable of registering the flow
33of electricity in two directions. An additional meter or meters to
34monitor the flow of electricity in each direction may be installed
35with the consent of the eligible customer-generator, at the expense
36of the electric utility, and the additional metering shall be used
37only to provide the information necessary to accurately bill or
38credit the eligible customer-generator pursuant to subdivision (h),
39or to collect generating system performance information for
40research purposes relative to a renewable electrical generation
P4    1facility. If the existing electrical meter of an eligible
2customer-generator is not capable of measuring the flow of
3electricity in two directions, the eligible customer-generator shall
4be responsible for all expenses involved in purchasing and
5installing a meter that is able to measure electricity flow in two
6directions. If an additional meter or meters are installed, the net
7energy metering calculation shall yield a result identical to that of
8a single meter. An eligible customer-generator that is receiving
9service other than through the standard contract or tariff may elect
10to receive service through the standard contract or tariff until the
11electric utility reaches the generation limit set forth in this
12paragraph. Once the generation limit is reached, only eligible
13customer-generators that had previously elected to receive service
14pursuant to the standard contract or tariff have a right to continue
15to receive service pursuant to the standard contract or tariff.
16Eligibility for net energy metering does not limit an eligible
17customer-generator’s eligibility for any other rebate, incentive, or
18credit provided by the electric utility, or pursuant to any
19governmental program, including rebates and incentives provided
20pursuant to the California Solar Initiative.

21(2) An electrical corporation shall include a provision in the net
22energy metering contract or tariff requiring that any customer with
23an existing electrical generating facility and meter who enters into
24a new net energy metering contract shall provide an inspection
25report to the electrical corporation, unless the electrical generating
26facility and meter have been installed or inspected within the
27previous three years. The inspection report shall be prepared by a
28California licensed contractor who is not the owner or operator of
29the facility and meter. A California licensed electrician shall
30perform the inspection of the electrical portion of the facility and
31meter.

32(3) (A) On an annual basis, every electric utility shall make
33available to the ratemaking authority information on the total rated
34generating capacity used by eligible customer-generators that are
35customers of that provider in the provider’s service area and the
36net surplus electricity purchased by the electric utility pursuant to
37this section.

38(B) An electric service provider operating pursuant to Section
39394 shall make available to the ratemaking authority the
40information required by this paragraph for each eligible
P5    1customer-generator that is their customer for each service area of
2an electrical corporation, local publicly owned electrical utility,
3or electrical cooperative, in which the eligible customer-generator
4has net energy metering.

5(C) The ratemaking authority shall develop a process for making
6the information required by this paragraph available to electric
7utilities, and for using that information to determine when, pursuant
8to paragraphs (1) and (4), an electric utility is not obligated to
9provide net energy metering to additional eligible
10customer-generators in its service area.

11(4) An electric utility is not obligated to provide net energy
12metering to additional eligible customer-generators in its service
13area when the combined total peak demand of all electricity used
14by eligible customer-generators served by all the electric utilities
15in that service area furnishing net energy metering to eligible
16customer-generators exceeds 5 percent of the aggregate customer
17peak demand of those electric utilities.

18(d) Every electric utility shall make all necessary forms and
19contracts for net energy metering and net surplus electricity
20compensation service available for download from the Internet.

21(e) (1) Every electric utility shall ensure that requests for
22establishment of net energy metering and net surplus electricity
23compensation are processed in a time period not exceeding that
24for similarly situated customers requesting new electric service,
25but not to exceed 30 working days from the date it receives a
26completed application form for net energy metering service or net
27surplus electricity compensation, including a signed interconnection
28agreement from an eligible customer-generator and the electric
29inspection clearance from the governmental authority having
30jurisdiction.

31(2) Every electric utility shall ensure that requests for an
32interconnection agreement from an eligible customer-generator
33are processed in a time period not to exceed 30 working days from
34the date it receives a completed application form from the eligible
35customer-generator for an interconnection agreement.

36(3) If an electric utility is unable to process a request within the
37allowable timeframe pursuant to paragraph (1) or (2), it shall notify
38the eligible customer-generator and the ratemaking authority of
39the reason for its inability to process the request and the expected
40completion date.

P6    1(f) (1) If a customer participates in direct transactions pursuant
2to paragraph (1) of subdivision (b) of Section 365, or Section 365.1,
3with an electric service provider that does not provide distribution
4service for the direct transactions, the electric utility that provides
5distribution service for the eligible customer-generator is not
6obligated to provide net energy metering or net surplus electricity
7compensation to the customer.

8(2) If a customer participates in direct transactions pursuant to
9 paragraph (1) of subdivision (b) of Section 365 with an electric
10service provider, and the customer is an eligible
11customer-generator, the electric utility that provides distribution
12service for the direct transactions may recover from the customer’s
13electric service provider the incremental costs of metering and
14billing service related to net energy metering and net surplus
15electricity compensation in an amount set by the ratemaking
16authority.

17(g) Except for the time-variant kilowatthour pricing portion of
18any tariff adopted by the commission pursuant to paragraph (4) of
19subdivision (a) of Section 2851, each net energy metering contract
20or tariff shall be identical, with respect to rate structure, all retail
21rate components, and any monthly charges, to the contract or tariff
22to which the same customer would be assigned if the customer did
23not use a renewable electrical generation facility, except that
24eligible customer-generators shall not be assessed standby charges
25on the electrical generating capacity or the kilowatthour production
26of a renewable electrical generation facility. The charges for all
27retail rate components for eligible customer-generators shall be
28based exclusively on the customer-generator’s net kilowatthour
29consumption over a 12-month period, without regard to the eligible
30customer-generator’s choice as to from whom it purchases
31electricity that is not self-generated. Any new or additional demand
32charge, standby charge, customer charge, minimum monthly
33charge, interconnection charge, or any other charge that would
34increase an eligible customer-generator’s costs beyond those of
35other customers who are not eligible customer-generators in the
36rate class to which the eligible customer-generator would otherwise
37be assigned if the customer did not own, lease, rent, or otherwise
38operate a renewable electrical generation facility is contrary to the
39intent of this section, and shall not form a part of net energy
40metering contracts or tariffs.

P7    1(h) For eligible customer-generators, the net energy metering
2calculation shall be made by measuring the difference between
3the electricity supplied to the eligible customer-generator and the
4electricity generated by the eligible customer-generator and fed
5back to the electrical grid over a 12-month period. The following
6rules shall apply to the annualized net metering calculation:

7(1) The eligible residential or small commercial
8customer-generator, at the end of each 12-month period following
9the date of final interconnection of the eligible
10 customer-generator’s system with an electric utility, and at each
11anniversary date thereafter, shall be billed for electricity used
12during that 12-month period. The electric utility shall determine
13if the eligible residential or small commercial customer-generator
14was a net consumer or a net surplus customer-generator during
15that period.

16(2) At the end of each 12-month period, where the electricity
17supplied during the period by the electric utility exceeds the
18electricity generated by the eligible residential or small commercial
19customer-generator during that same period, the eligible residential
20or small commercial customer-generator is a net electricity
21consumer and the electric utility shall be owed compensation for
22the eligible customer-generator’s net kilowatthour consumption
23over that 12-month period. The compensation owed for the eligible
24residential or small commercial customer-generator’s consumption
25shall be calculated as follows:

26(A) For all eligible customer-generators taking service under
27contracts or tariffs employing “baseline” and “over baseline” rates,
28any net monthly consumption of electricity shall be calculated
29according to the terms of the contract or tariff to which the same
30customer would be assigned to, or be eligible for, if the customer
31was not an eligible customer-generator. If those same
32customer-generators are net generators over a billing period, the
33net kilowatthours generated shall be valued at the same price per
34kilowatthour as the electric utility would charge for the baseline
35quantity of electricity during that billing period, and if the number
36of kilowatthours generated exceeds the baseline quantity, the excess
37shall be valued at the same price per kilowatthour as the electric
38utility would charge for electricity over the baseline quantity during
39that billing period.

P8    1(B) For all eligible customer-generators taking service under
2contracts or tariffs employing time-of-use rates, any net monthly
3consumption of electricity shall be calculated according to the
4terms of the contract or tariff to which the same customer would
5be assigned, or be eligible for, if the customer was not an eligible
6customer-generator. When those same customer-generators are
7net generators during any discrete time-of-use period, the net
8kilowatthours produced shall be valued at the same price per
9kilowatthour as the electric utility would charge for retail
10kilowatthour sales during that same time-of-use period. If the
11eligible customer-generator’s time-of-use electrical meter is unable
12to measure the flow of electricity in two directions, paragraph (1)
13of subdivision (c) shall apply.

14(C) For all eligible residential and small commercial
15customer-generators and for each billing period, the net balance
16of moneys owed to the electric utility for net consumption of
17electricity or credits owed to the eligible customer-generator for
18net generation of electricity shall be carried forward as a monetary
19value until the end of each 12-month period. For all eligible
20commercial, industrial, and agricultural customer-generators, the
21net balance of moneys owed shall be paid in accordance with the
22electric utility’s normal billing cycle, except that if the eligible
23commercial, industrial, or agricultural customer-generator is a net
24electricity producer over a normal billing cycle, any excess
25kilowatthours generated during the billing cycle shall be carried
26over to the following billing period as a monetary value, calculated
27according to the procedures set forth in this section, and appear as
28a credit on the eligible commercial, industrial, or agricultural
29customer-generator’s account, until the end of the annual period
30when paragraph (3) shall apply.

31(3) At the end of each 12-month period, where the electricity
32generated by the eligible customer-generator during the 12-month
33period exceeds the electricity supplied by the electric utility during
34that same period, the eligible customer-generator is a net surplus
35customer-generator and the electric utility, upon an affirmative
36election by the net surplus customer-generator, shall either (A)
37provide net surplus electricity compensation for any net surplus
38electricity generated during the prior 12-month period, or (B) allow
39the net surplus customer-generator to apply the net surplus
40electricity as a credit for kilowatthours subsequently supplied by
P9    1the electric utility to the net surplus customer-generator. For an
2eligible customer-generator that does not affirmatively elect to
3receive service pursuant to net surplus electricity compensation,
4the electric utility shall retain any excess kilowatthours generated
5during the prior 12-month period. The eligible customer-generator
6not affirmatively electing to receive service pursuant to net surplus
7electricity compensation shall not be owed any compensation for
8the net surplus electricity unless the electric utility enters into a
9purchase agreement with the eligible customer-generator for those
10excess kilowatthours. Every electric utility shall provide notice to
11eligible customer-generators that they are eligible to receive net
12surplus electricity compensation for net surplus electricity, that
13they must elect to receive net surplus electricity compensation,
14and that the 12-month period commences when the electric utility
15receives the eligible customer-generator’s election. For an electric
16utility that is an electrical corporation or electrical cooperative,
17the commission may adopt requirements for providing notice and
18the manner by which eligible customer-generators may elect to
19receive net surplus electricity compensation.

20(4) (A) An eligible customer-generator with multiple meters
21may elect to aggregate the electrical load of the meters located on
22the property where the renewable electrical generation facility is
23located and on all property adjacent or contiguous to the property
24on which the renewable electrical generation facility is located, if
25those properties are solely owned, leased, or rented by the eligible
26customer-generator. If the eligible customer-generator elects to
27aggregate the electric load pursuant to this paragraph, the electric
28utility shall use the aggregated load for the purpose of determining
29whether an eligible customer-generator is a net consumer or a net
30surplus customer-generator during a 12-month period.

31(B) If an eligible customer-generator chooses to aggregate
32pursuant to subparagraph (A), the eligible customer-generator shall
33be permanently ineligible to receive net surplus electricity
34compensation, and the electric utility shall retain any kilowatthours
35in excess of the eligible customer-generator’s aggregated electrical
36load generated during the 12-month period.

37(C) If an eligible customer-generator with multiple meters elects
38to aggregate the electrical load of those meters pursuant to
39subparagraph (A), and different rate schedules are applicable to
40service at any of those meters, the electricity generated by the
P10   1renewable electrical generation facility shall be allocated to each
2of the meters in proportion to the electrical load served by those
3meters. For example, if the eligible customer-generator receives
4electric service through three meters, two meters being at an
5agricultural rate that each provide service to 25 percent of the
6customer’s total load, and a third meter, at a commercial rate, that
7provides service to 50 percent of the customer’s total load, then
850 percent of the electrical generation of the eligible renewable
9generation facility shall be allocated to the third meter that provides
10service at the commercial rate and 25 percent of the generation
11shall be allocated to each of the two meters providing service at
12the agricultural rate. This proportionate allocation shall be
13computed each billing period.

14(D) This paragraph shall not become operative for an electrical
15corporation unless the commission determines that allowing
16eligible customer-generators to aggregate their load from multiple
17meters will not result in an increase in the expected revenue
18obligations of customers who are not eligible customer-generators.
19The commission shall make this determination by September 30,
202013. In making this determination, the commission shall determine
21if there are any public purpose or other noncommodity charges
22that the eligible customer-generators would pay pursuant to the
23net energy metering program as it exists prior to aggregation, that
24the eligible customer-generator would not pay if permitted to
25aggregate the electrical load of multiple meters pursuant to this
26paragraph.

27(E) A local publicly owned electric utility or electrical
28cooperative shall only allow eligible customer-generators to
29aggregate their load if the utility’s ratemaking authority determines
30that allowing eligible customer-generators to aggregate their load
31from multiple meters will not result in an increase in the expected
32revenue obligations of customers that are not eligible
33customer-generators. The ratemaking authority of a local publicly
34owned electric utility or electrical cooperative shall make this
35determination within 180 days of the first request made by an
36eligible customer-generator to aggregate their load. In making the
37determination, the ratemaking authority shall determine if there
38are any public purpose or other noncommodity charges that the
39eligible customer-generator would pay pursuant to the net energy
40metering or co-energy metering program of the utility as it exists
P11   1prior to aggregation, that the eligible customer-generator would
2not pay if permitted to aggregate the electrical load of multiple
3meters pursuant to this paragraph. If the ratemaking authority
4determines that load aggregation will not cause an incremental
5rate impact on the utility’s customers that are not eligible
6customer-generators, the local publicly owned electric utility or
7electrical cooperative shall permit an eligible customer-generator
8to elect to aggregate the electrical load of multiple meters pursuant
9to this paragraph. The ratemaking authority may reconsider any
10determination made pursuant to this subparagraph in a subsequent
11public proceeding.

12(F) For purposes of this paragraph, parcels that are divided by
13a street, highway, or public thoroughfare are considered contiguous,
14provided they are otherwise contiguous and under the same
15ownership.

16(G) An eligible customer-generator may only elect to aggregate
17the electrical load of multiple meters if the renewable electrical
18generation facility, or a combination of those facilities, has a total
19generating capacity of not more than one megawatt.

20(H) Notwithstanding subdivision (g), an eligible
21customer-generator electing to aggregate the electrical load of
22multiple meters pursuant to this subdivision shall remit service
23charges for the cost of providing billing services to the electric
24utility that provides service to the meters.

25(5) (A) The ratemaking authority shall establish a net surplus
26electricity compensation valuation to compensate the net surplus
27customer-generator for the value of net surplus electricity generated
28by the net surplus customer-generator. The commission shall
29establish the valuation in a ratemaking proceeding. The ratemaking
30authority for a local publicly owned electric utility shall establish
31the valuation in a public proceeding. The net surplus electricity
32compensation valuation shall be establishedbegin delete so asend delete to provide the
33net surplus customer-generator just and reasonable compensation
34for the value of net surplus electricity, while leaving other
35ratepayers unaffected. The ratemaking authority shall determine
36whether the compensation will include, where appropriate
37justification exists, either or both of the following components:

38(i) The value of the electricity itself.

39(ii) The value of the renewable attributes of the electricity.

P12   1(B) In establishing the rate pursuant to subparagraph (A), the
2ratemaking authority shall ensure that the rate does not result in a
3shifting of costs between eligible customer-generators and other
4bundled service customers.

5(6) (A) Upon adoption of the net surplus electricity
6compensation rate by the ratemaking authority, any renewable
7energy credit, as defined in Section 399.12, for net surplus
8electricity purchased by the electric utility shall belong to the
9electric utility. Any renewable energy credit associated with
10electricity generated by the eligible customer-generator that is
11utilized by the eligible customer-generator shall remain the property
12of the eligible customer-generator.

13(B) Upon adoption of the net surplus electricity compensation
14rate by the ratemaking authority, the net surplus electricity
15purchased by the electric utility shall count toward the electric
16utility’s renewables portfolio standard annual procurement targets
17for the purposes of paragraph (1) of subdivision (b) of Section
18399.15, or for a local publicly owned electric utility, the renewables
19portfolio standard annual procurement targets established pursuant
20to Section 387.

21(7) The electric utility shall provide every eligible residential
22or small commercial customer-generator with net electricity
23consumption and net surplus electricity generation information
24with each regular bill. That information shall include the current
25monetary balance owed the electric utility for net electricity
26consumed, or the net surplus electricity generated, since the last
2712-month period ended. Notwithstanding this subdivision, an
28electric utility shall permit that customer to pay monthly for net
29energy consumed.

30(8) If an eligible residential or small commercial
31customer-generator terminates the customer relationship with the
32electric utility, the electric utility shall reconcile the eligible
33customer-generator’s consumption and production of electricity
34during any part of a 12-month period following the last
35reconciliation, according to the requirements set forth in this
36subdivision, except that those requirements shall apply only to the
37months since the most recent 12-month bill.

38(9) If an electric service provider or electric utility providing
39net energy metering to a residential or small commercial
40customer-generator ceases providing that electric service to that
P13   1customer during any 12-month period, and the customer-generator
2enters into a new net energy metering contract or tariff with a new
3electric service provider or electric utility, the 12-month period,
4with respect to that new electric service provider or electric utility,
5shall commence on the date on which the new electric service
6provider or electric utility first supplies electric service to the
7customer-generator.

8(i) Notwithstanding any other provisions of this section,
9paragraphs (1), (2), and (3) shall apply to an eligible
10customer-generator with a capacity of more than 10 kilowatts, but
11not exceeding one megawatt, that receives electric service from a
12local publicly owned electric utility that has elected to utilize a
13co-energy metering program unless the local publicly owned
14electric utility chooses to provide service for eligible
15customer-generators with a capacity of more than 10 kilowatts in
16accordance with subdivisions (g) and (h):

17(1) The eligible customer-generator shall be required to utilize
18a meter, or multiple meters, capable of separately measuring
19electricity flow in both directions. All meters shall provide
20time-of-use measurements of electricity flow, and the customer
21shall take service on a time-of-use rate schedule. If the existing
22meter of the eligible customer-generator is not a time-of-use meter
23or is not capable of measuring total flow of electricity in both
24directions, the eligible customer-generator shall be responsible for
25all expenses involved in purchasing and installing a meter that is
26both time-of-use and able to measure total electricity flow in both
27directions. This subdivision shall not restrict the ability of an
28eligible customer-generator to utilize any economic incentives
29provided by a governmental agency or an electric utility to reduce
30its costs for purchasing and installing a time-of-use meter.

31(2) The consumption of electricity from the local publicly owned
32electric utility shall result in a cost to the eligible
33customer-generator to be priced in accordance with the standard
34rate charged to the eligible customer-generator in accordance with
35the rate structure to which the customer would be assigned if the
36customer did not use a renewable electrical generation facility.
37The generation of electricity provided to the local publicly owned
38electric utility shall result in a credit to the eligible
39 customer-generator and shall be priced in accordance with the
40generation component, established under the applicable structure
P14   1to which the customer would be assigned if the customer did not
2use a renewable electrical generation facility.

3(3) All costs and credits shall be shown on the eligible
4customer-generator’s bill for each billing period. In any months
5in which the eligible customer-generator has been a net consumer
6of electricity calculated on the basis of value determined pursuant
7to paragraph (2), the customer-generator shall owe to the local
8publicly owned electric utility the balance of electricity costs and
9credits during that billing period. In any billing period in which
10the eligible customer-generator has been a net producer of
11electricity calculated on the basis of value determined pursuant to
12paragraph (2), the local publicly owned electric utility shall owe
13to the eligible customer-generator the balance of electricity costs
14 and credits during that billing period. Any net credit to the eligible
15customer-generator of electricity costs may be carried forward to
16subsequent billing periods, provided that a local publicly owned
17electric utility may choose to carry the credit over as a kilowatthour
18credit consistent with the provisions of any applicable contract or
19tariff, including any differences attributable to the time of
20generation of the electricity. At the end of each 12-month period,
21the local publicly owned electric utility may reduce any net credit
22due to the eligible customer-generator to zero.

23(j) A renewable electrical generation facility used by an eligible
24customer-generator shall meet all applicable safety and
25performance standards established by the National Electrical Code,
26the Institute of Electrical and Electronics Engineers, and accredited
27testing laboratories, including Underwriters Laboratories
28Incorporated and, where applicable, rules of the commission
29regarding safety and reliability. A customer-generator whose
30renewable electrical generation facility meets those standards and
31rules shall not be required to install additional controls, perform
32or pay for additional tests, or purchase additional liability
33insurance.

34(k) If the commission determines that there are cost or revenue
35obligations for an electrical corporation that may not be recovered
36from customer-generators acting pursuant to this section, those
37obligations shall remain within the customer class from which any
38shortfall occurred and shall not be shifted to any other customer
39class. Net energy metering and co-energy metering customers shall
40not be exempt from the public goods charges imposed pursuant to
P15   1Article 7 (commencing with Section 381), Article 8 (commencing
2with Section 385), or Article 15 (commencing with Section 399)
3of Chapter 2.3 of Part 1.

4(l) A net energy metering, co-energy metering, or wind energy
5co-metering customer shall reimburse the Department of Water
6Resources for all charges that would otherwise be imposed on the
7customer by the commission to recover bond-related costs pursuant
8to an agreement between the commission and the Department of
9Water Resources pursuant to Section 80110 of the Water Code,
10as well as the costs of the department equal to the share of the
11department’s estimated net unavoidable power purchase contract
12costs attributable to the customer. The commission shall
13incorporate the determination into an existing proceeding before
14the commission, and shall ensure that the charges are
15nonbypassable. Until the commission has made a determination
16regarding the nonbypassable charges, net energy metering,
17co-energy metering, and wind energy co-metering shall continue
18under the same rules, procedures, terms, and conditions as were
19applicable on December 31, 2002.

20(m) In implementing the requirements of subdivisions (k) and
21(l), an eligible customer-generator shall not be required to replace
22its existing meter except as set forth in paragraph (1) of subdivision
23(c), nor shall the electric utility require additional measurement of
24usage beyond that which is necessary for customers in the same
25rate class as the eligible customer-generator.

26(n) It is the intent of the Legislature that the Treasurer
27incorporate net energy metering, including net surplus electricity
28compensation, co-energy metering, and wind energy co-metering
29projects undertaken pursuant to this section as sustainable building
30methods or distributive energy technologies for purposes of
31evaluating low-income housing projects.



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