BILL NUMBER: AB 918 CHAPTERED
BILL TEXT
CHAPTER 1043
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2000
APPROVED BY GOVERNOR SEPTEMBER 30, 2000
PASSED THE ASSEMBLY AUGUST 30, 2000
PASSED THE SENATE AUGUST 29, 2000
AMENDED IN SENATE AUGUST 25, 2000
AMENDED IN SENATE AUGUST 10, 2000
AMENDED IN SENATE JULY 1, 1999
AMENDED IN ASSEMBLY APRIL 19, 1999
INTRODUCED BY Assembly Member Keeley
FEBRUARY 25, 1999
An act to amend Section 2827 of the Public Utilities Code,
relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 918, Keeley. Public utilities: net energy metering.
Existing law requires electric service providers, as defined, to
develop a standard contract or tariff for net energy metering and to
make this contract available to eligible customer-generators, as
defined. Existing law defines net energy metering as measuring the
difference between the electricity supplied through the electric grid
and the electricity generated by an eligible customer-generator and
fed back to the electric grid over a 12-month period. Existing law
requires that the compensation owed to eligible customer-generators
be based on the average retail price per kilowatthour for the
eligible customer-generator's rate class.
This bill would exempt an electric corporation that provides
distribution service for direct transactions from the obligation to
provide net energy metering to a customer, if the customer
participates in direct transactions with an electric supplier that
does not offer net energy metering. The bill would authorize an
electric corporation that provides distribution service for direct
transactions to recover from the electric service provider of a
customer that participates in direct transactions the incremental
costs of metering and billing service related to net energy metering,
in an amount set by the Public Utilities Commission.
The bill would also establish formulas for the calculation of net
monthly consumption for eligible customer-generators taking service
employing baseline, over baseline, and time of use rates. The bill
would also require that moneys owed to the electric service provider
and credits owed to the customer-generator be carried forward until
the end of each 12-month period. Under the bill, if the electric
service provider providing net metering to a customer-generator
ceases providing that electrical service to that customer during any
12-month period, and the customer-generator enters into a new net
metering contract or tariff with a new electric service provider, the
12-month period, with respect to that new electric service provider,
would commence on the date on which the new electric service
provider first supplies electric service to the customer-generator.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2827 of the Public Utilities Code is amended to
read:
2827. (a) The Legislature finds and declares that a program to
provide net energy metering for eligible customer-generators is one
way to encourage private investment in renewable energy resources,
stimulate in-state economic growth, enhance the continued
diversification of California's energy resource mix, and reduce
interconnection and administrative costs for electricity suppliers.
(b) As used in this section, the following definitions apply:
(1) "Electric service provider" means an electric corporation, as
defined in Section 218, a local publicly owned electric utility, as
defined in Section 9604, or an electrical cooperative, as defined in
Section 2776. "Electric service provider" also means an entity that
offers electrical service to residential and small commercial
customers, as defined in Section 394, if that entity offers net
energy metering. Any entity that offers net energy metering to
residential and small commercial customers shall comply with this
section.
(2) "Eligible customer-generator" means a residential customer, or
a small commercial customer as defined in subdivision (h) of Section
331, of an electric service provider, who uses a solar or a wind
turbine electrical generating facility, or a hybrid system of both,
with a capacity of not more than 10 kilowatts that is located on the
customer's premises, is interconnected and operates in parallel with
the electric grid, and is intended primarily to offset part or all of
the customer's own electrical requirements.
(3) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivision (e). Net energy metering shall be accomplished using a
single meter capable of registering the flow of electricity in two
directions. An additional meter or meters to monitor the flow of
electricity in each direction may be installed with the consent of
the customer-generator, at the expense of the electric service
provider, and the additional metering shall be used only to provide
the information necessary to accurately bill or credit the
customer-generator pursuant to subdivision (e), or to collect solar
or wind electric generating system performance information for
research purposes. If the existing electrical meter of an eligible
customer-generator is not capable of measuring the flow of
electricity in two directions, the customer-generator shall be
responsible for all expenses involved in purchasing and installing a
meter that is able to measure electricity flow in two directions. If
an additional meter or meters are installed, the net energy metering
calculation shall yield a result identical to that of a single
meter. An eligible customer-generator who already owns an existing
solar or wind turbine electrical generating facility, or a hybrid
system of both, is eligible to receive net energy metering service in
accordance with this section.
(4) "Ratemaking authority" means, for an electrical corporation as
defined in Section 218, or an electrical cooperative as defined in
Section 2776, the commission, and for a local publicly owned electric
utility as defined in Section 9604, the local elected body
responsible for regulating the rates of the utility.
(c) (1) Every electric service provider shall develop a standard
contract or tariff providing for net energy metering, and shall make
this contract available to eligible customer-generators, upon
request, on a first-come-first-served basis until the time that the
total rated generating capacity used by eligible customer-generators
equals one-tenth of 1 percent of the electric service provider's
aggregate customer peak demand.
(2) On an annual basis, beginning in 1999, every electric service
provider shall make available to the ratemaking authority information
on the total rated generating capacity used by eligible
customer-generators that are customers of that provider in the
provider's service area. For those electric service providers who
are operating pursuant to Section 394, they shall make available to
the ratemaking authority the information required by this paragraph
for each eligible customer-generator that is their customer for each
service area of an electric corporation, local publicly owned
electric utility, or electrical cooperative, in which the customer
has net energy metering. The ratemaking authority shall develop a
process for making the information required by this paragraph
available to energy service providers, and for using that information
to determine when, pursuant to paragraph (3), a service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area.
(3) Notwithstanding paragraph (1), an electric service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area when the combined total peak
demand of all customer-generators served by all the electric service
providers in that service area furnishing net energy metering to
eligible customer-generators equals one-tenth of 1 percent of the
aggregate customer peak demand of those electric service providers.
(4) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that does not offer net energy metering and is therefore not
an electric service provider, the customer is not an eligible
customer-generator and the electric corporation, as defined in
Section 218, that provides distribution service for the direct
transactions, is not obligated to provide net energy metering to the
customer.
(5) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that offers net energy metering and is therefore an electric
service provider, and the customer is an eligible customer-generator
, the electric corporation, as defined in Section 218, that provides
distribution service for the direct transactions may recover from
the customer's electric service provider the incremental costs of
metering and billing service related to net energy metering in an
amount set by the commission.
(d) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if such customer was not an
eligible customer-generator. The charges for all retail rate
components for eligible customer-generators shall be based
exclusively on the customer-generator's net kilowatthour consumption
over a 12-month period, without regard to the customer-generator's
choice of electric service provider that offers net energy metering
and is subject to this section pursuant to paragraph (1) of
subdivision (b), in accordance with subdivision (e). Any new or
additional demand charge, standby charge, customer charge, minimum
monthly charge, interconnection charge, or other charge that would
increase an eligible customer-generator's costs beyond those of other
customers in the rate class to which the eligible customer-generator
would otherwise be assigned are contrary to the intent of this
legislation, and shall not form a part of net energy metering
contracts or tariffs.
(e) The net energy metering calculation shall be made by measuring
the difference between the electricity supplied to the eligible
customer-generator and the electricity generated by the eligible
customer-generator and fed back to the electric grid over a 12-month
period. The following rules shall apply to the annualized net
metering calculation:
(1) The eligible customer-generator shall, at the end of each
12-month period following the date of final interconnection of the
eligible customer-generator's system with an electric service
provider, and at each anniversary date thereafter, be billed for
electricity used during that period. The electric service provider
shall determine if the eligible customer-generator was a net consumer
or a net producer of electricity during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electric service provider exceeds
the electricity generated by the eligible customer-generator during
that same period, the eligible customer-generator is a net
electricity consumer and the electric service provider shall be owed
compensation for the eligible customer-generator's net kilowatthour
consumption over that same period. The compensation owed for the
eligible customer-generator's net 12-month kilowatthour consumption
shall be calculated as follows:
(A) For eligible customer-generators taking service under tariffs
employing "baseline" and "over baseline" rates, any net monthly
consumption of electricity shall be calculated according to the terms
of the contract or tariff to which the same customer would be
assigned to or be eligible for if the customer was not an eligible
customer-generator. If those same customer-generators are net
generators over a billing period, the net kilowatthours generated
shall be valued at the same price per kilowatthour as the electric
service provider would charge for the baseline quantity of
electricity during that billing period, and if the number of
kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
service provider would charge for electricity over the baseline
quantity during that billing period.
(B) For eligible customer-generators taking service under tariffs
employing "time of use" rates, any net monthly consumption of
electricity shall be calculated according to the terms of the
contract or tariff to which the same customer would be assigned to or
be eligible for if the customer was not an eligible
customer-generator. When those same customer-generators are net
generators during any discrete time of use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric service provider would charge for retail
kilowatthour sales during that same time of use period. If the
eligible customer-generator's time of use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (3)
of subdivision (b) shall apply.
(C) For all customer-generators and for each monthly period, the
net balance of moneys owed to the electric service provider for net
consumption of electricity or credits owed to the customer-generator
for net generation of electricity shall be carried forward until the
end of each 12-month period.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric service
provider during that same period, the eligible customer-generator is
a net electricity producer and the electric service provider shall
retain any excess kilowatthours generated during the prior 12-month
period. The eligible customer-generator shall not be owed any
compensation for those excess kilowatthours unless the electric
service provider enters into a purchase agreement with the eligible
customer-generator for those excess kilowatthours.
(4) The electric service provider shall provide every eligible
customer-generator with net electricity consumption information with
each regular bill. That information shall include the current
monetary balance owed the electric service provider for net
electricity consumed since the last 12-month period ended.
Notwithstanding subdivision (e), an electric service provider shall
permit that customer to pay monthly for net energy consumed.
(5) If an eligible customer-generator terminates the customer
relationship with the electric service provider, the electric service
provider shall reconcile the eligible customer-generator's
consumption and production of electricity during any part of a
12-month period following the last reconciliation, according to the
requirements set forth in this subdivision, except that those
requirements shall apply only to the months since the most recent
12-month bill.
(6) If an electric service provider providing net metering to a
customer-generator ceases providing that electrical service to that
customer during any 12-month period, and the customer-generator
enters into a new net metering contract or tariff with a new electric
service provider, the 12-month period, with respect to that new
electric service provider, shall commence on the date on which the
new electric service provider first supplies electric service to the
customer-generator.
(f) A solar or wind turbine electrical generating system, or a
hybrid system of both, used by an eligible customer-generator shall
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories such as
Underwriters Laboratories and, where applicable, rules of the Public
Utilities Commission regarding safety and reliability. A
customer-generator whose solar or wind turbine electrical generating
system, or a hybrid system of both, meets those standards and rules
shall not be required to install additional controls, perform or pay
for additional tests, or purchase additional liability insurance.