S T A T E O F N E W Y O R K
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11200
I N A S S E M B L Y
May 25, 2010
___________
Introduced by M. of A. GORDON -- read once and referred to the Committee
on Energy
AN ACT to amend the public service law, in relation to authorizing
virtual net energy metering
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public service law is amended by adding a new section
66-m to read as follows:
S 66-M. VIRTUAL NET ENERGY METERING. 1. DEFINITIONS. AS USED IN THIS
SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "CUSTOMER-GENERATOR" MEANS: (I) A CITY, TOWN, VILLAGE OR SPECIAL
DISTRICT WHICH OWNS OR OPERATES ENERGY GENERATING EQUIPMENT FOR THE
BENEFIT OF THE RESIDENTS THEREOF WHO ARE CUSTOMERS OF A SINGLE ELECTRIC
CORPORATION; (II) A GROUP OF NONRESIDENTIAL CUSTOMERS OF AN ELECTRIC
CORPORATION, WHO HAVE ENTERED INTO AN AGREEMENT TO JOINTLY OWN OR OPER-
ATE ENERGY GENERATING EQUIPMENT; AND (III) A GROUP OF FARM OPERATIONS
CUSTOMERS OF AN ELECTRIC CORPORATION, WHO HAVE ENTERED INTO AN AGREEMENT
TO JOINTLY OWN OR OPERATE ENERGY GENERATING EQUIPMENT.
(B) "ENERGY GENERATING EQUIPMENT" MEANS FARM WASTE ELECTRIC GENERATING
EQUIPMENT, FUEL CELL ELECTRIC GENERATING EQUIPMENT, MICRO-COMBINED HEAT
AND POWER GENERATING EQUIPMENT, SOLAR ELECTRIC GENERATING EQUIPMENT
AND/OR WIND ELECTRIC GENERATING EQUIPMENT.
(C) "FARM OPERATIONS CUSTOMER" MEANS THE CUSTOMER OF AN ELECTRIC
CORPORATION WHO USES ELECTRIC ENERGY IN HIS, HER OR ITS FARM OPERATION
AS DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE OF THE
AGRICULTURE AND MARKETS LAW.
(D) "FARM WASTE ELECTRIC GENERATING EQUIPMENT" MEANS EQUIPMENT THAT
GENERATES ELECTRIC ENERGY FROM BIOGAS PRODUCED BY THE ANAEROBIC
DIGESTION OF AGRICULTURAL WASTE, SUCH AS LIVESTOCK MANURE, FARMING
WASTES AND FOOD PROCESSING WASTES, THAT IS:
(I) MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICABLE
GOVERNMENT AND INDUSTRY STANDARDS;
(II) CONNECTED TO THE ELECTRIC SYSTEM AND OPERATED IN CONJUNCTION WITH
AN ELECTRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD17163-01-0
A. 11200 2
(III) FUELED AT A MINIMUM OF NINETY PERCENT ON AN ANNUAL BASIS BY
BIOGAS PRODUCED FROM THE ANAEROBIC DIGESTION OF AGRICULTURAL WASTE SUCH
AS LIVESTOCK MANURE MATERIALS, CROP RESIDUES AND FOOD PROCESSING WASTES;
AND
(IV) FUELED BY BIOGAS GENERATED BY ANAEROBIC DIGESTION WITH AT LEAST
FIFTY PERCENT BY WEIGHT OF ITS FEEDSTOCK BEING LIVESTOCK MANURE MATERI-
ALS ON AN ANNUAL BASIS.
(E) "FUEL CELL ELECTRIC GENERATING EQUIPMENT" MEANS A SOLID OXIDE,
MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR PHOSPHORIC ACID FUEL CELL
THAT IS MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICA-
BLE GOVERNMENT AND INDUSTRY STANDARDS, THAT IS CONNECTED TO THE ELECTRIC
SYSTEM AND OPERATED IN PARALLEL WITH AN ELECTRIC CORPORATION'S TRANS-
MISSION AND DISTRIBUTION FACILITIES.
(F) "MEMBER" MEANS ANY RESIDENT OF A MUNICIPALITY THAT IS A CUSTOMER-
GENERATOR, OR ANY MEMBER OF A GROUP OF ELECTRIC CUSTOMERS THAT IS A
CUSTOMER-GENERATOR.
(G) "MICRO-COMBINED HEAT AND POWER GENERATING EQUIPMENT" MEANS AN
INTEGRATED, COGENERATING BUILDING HEATING AND ELECTRICAL POWER GENER-
ATION SYSTEM, OPERATING ON ANY FUEL AND OF ANY APPLICABLE ENGINE, FUEL
CELL OR OTHER TECHNOLOGY THAT MAY WORK IN COMBINATION WITH SUPPLEMENTAL
OR PARALLEL CONVENTIONAL HEATING SYSTEMS, THAT IS MANUFACTURED,
INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICABLE GOVERNMENT AND
INDUSTRY STANDARDS, THAT IS CONNECTED TO THE ELECTRIC SYSTEM AND OPER-
ATED IN CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANSMISSION AND
DISTRIBUTION FACILITIES.
(H) "NET ENERGY METER" MEANS METERS THAT MEASURE THE REVERSE FLOW OF
ELECTRICITY TO REGISTER THE DIFFERENCE BETWEEN THE ELECTRICITY SUPPLIED
BY AN ELECTRIC CORPORATION TO THE MEMBERS OF A CUSTOMER-GENERATOR AND
THE ELECTRICITY PROVIDED TO THE CORPORATION BY THAT CUSTOMER-GENERATOR.
(I) "NET ENERGY METERING" MEANS THE USE OF NET ENERGY METERS TO MEAS-
URE, DURING THE BILLING PERIOD APPLICABLE TO THE MEMBERS OF A CUSTOMER-
GENERATOR, THE NET AMOUNT OF ELECTRICITY SUPPLIED BY AN ELECTRIC CORPO-
RATION AND PROVIDED TO THE CORPORATION BY SUCH CUSTOMER-GENERATOR.
(J) "SOLAR ELECTRIC GENERATING EQUIPMENT" MEANS A PHOTOVOLTAIC SYSTEM
THAT IS MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICA-
BLE GOVERNMENT AND INDUSTRY STANDARDS, THAT IS CONNECTED TO THE ELECTRIC
SYSTEM AND OPERATED IN CONJUNCTION WITH AN ELECTRIC CORPORATION'S TRANS-
MISSION AND DISTRIBUTION FACILITIES.
(K) "WIND ELECTRIC GENERATING EQUIPMENT" MEANS ONE OR MORE WIND GENER-
ATORS THAT ARE MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH
APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, THAT IS CONNECTED TO THE
ELECTRIC SYSTEM AND OPERATED IN PARALLEL WITH AN ELECTRIC CORPORATION'S
TRANSMISSION AND DISTRIBUTION FACILITIES.
2. INTERCONNECTION AND NET ENERGY METERING. AN ELECTRIC CORPORATION
SHALL PROVIDE FOR THE INTERCONNECTION OF ENERGY GENERATING EQUIPMENT
OWNED OR OPERATED BY A CUSTOMER-GENERATOR AND FOR NET ENERGY METERING OF
THE MEMBERS OF SUCH CUSTOMER-GENERATOR, PROVIDED THAT THE CUSTOMER-GEN-
ERATOR ENTERS INTO A NET ENERGY METERING CONTRACT WITH THE CORPORATION
OR COMPLIES WITH THE CORPORATION'S NET ENERGY METERING SCHEDULE AND
COMPLIES WITH STANDARDS AND REQUIREMENTS ESTABLISHED PURSUANT TO THIS
SECTION.
3. CONDITIONS OF SERVICE. (A) ON OR BEFORE THREE MONTHS AFTER THE
EFFECTIVE DATE OF THIS SECTION, EACH ELECTRIC CORPORATION SHALL DEVELOP
A MODEL CONTRACT AND FILE A SCHEDULE THAT ESTABLISHES CONSISTENT AND
REASONABLE RATES, TERMS AND CONDITIONS FOR NET ENERGY METERING TO
MEMBERS OF CUSTOMER-GENERATORS, ACCORDING TO THE REQUIREMENTS OF THIS
A. 11200 3
SECTION. THE COMMISSION SHALL RENDER A DECISION WITHIN THREE MONTHS FROM
THE DATE ON WHICH THE SCHEDULE IS FILED.
(B) IN THE EVENT THAT THE ELECTRIC CORPORATION DETERMINES THAT IT IS
NECESSARY TO INSTALL A DEDICATED TRANSFORMER OR TRANSFORMERS, OR OTHER
EQUIPMENT TO PROTECT THE SAFETY AND ADEQUACY OF ELECTRIC SERVICE
PROVIDED TO OTHER CUSTOMERS, A CUSTOMER-GENERATOR SHALL PAY THE ELECTRIC
CORPORATION'S ACTUAL COSTS OF INSTALLING THE TRANSFORMER OR TRANSFOR-
MERS, OR OTHER EQUIPMENT AS DETERMINED BY THE ELECTRIC CORPORATION
SUBJECT TO REVIEW, UPON REQUEST OF SUCH CUSTOMER-GENERATOR, BY THE
DEPARTMENT.
(C) AN ELECTRIC CORPORATION SHALL IMPOSE NO OTHER CHARGE OR FEE,
INCLUDING BACK-UP, STANDBY AND DEMAND CHARGES, FOR THE PROVISION OF NET
ENERGY METERING TO THE MEMBERS OF A CUSTOMER-GENERATOR.
4. RATES. AN ELECTRIC CORPORATION SHALL USE NET ENERGY METERING TO
MEASURE AND CHARGE FOR THE NET ELECTRICITY SUPPLIED BY THE CORPORATION
AND PROVIDED TO THE CORPORATION BY A CUSTOMER-GENERATOR, ACCORDING TO
THESE REQUIREMENTS:
(A) IN THE EVENT THAT THE AMOUNT OF ELECTRICITY SUPPLIED BY THE CORPO-
RATION DURING THE BILLING PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY
PROVIDED TO THE MEMBERS OF A CUSTOMER-GENERATOR, THE CORPORATION SHALL
CHARGE THE MEMBERS OF THE CUSTOMER-GENERATOR, ON A PRO-RATA BASIS, FOR
THE NET ELECTRICITY SUPPLIED AT THE SAME RATE PER KILOWATT HOUR APPLICA-
BLE TO SERVICE PROVIDED TO OTHER CUSTOMERS IN THE SAME SERVICE CLASS
WHICH DO NOT GENERATE ELECTRICITY ONSITE.
(B) IN THE EVENT THAT THE AMOUNT OF ELECTRICITY PRODUCED BY A CUSTOM-
ER-GENERATOR DURING THE BILLING PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY
USED BY THE MEMBERS OF THE CUSTOMER-GENERATOR, THE CORPORATION SHALL
APPLY A CREDIT, ON A PRO-RATA BASIS, TO THE NEXT BILLS FOR SERVICE TO
THE MEMBERS OF THE CUSTOMER-GENERATOR FOR THE NET ELECTRICITY PROVIDED
AS THE SAME RATE PER KILOWATT HOUR APPLICABLE TO SERVICE PROVIDED TO
OTHER CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO NOT GENERATE ELEC-
TRICITY ON SITE.
(C) AT THE END OF THE YEAR OR ANNUALIZED OVER THE PERIOD THAT SERVICE
IS SUPPLIED BY MEANS OF NET ENERGY METERING, THE CORPORATION SHALL
PROMPTLY ISSUE PAYMENT AT ITS AVOIDED COSTS, ON A PRO-RATA BASIS, TO THE
MEMBERS OF A CUSTOMER-GENERATOR FOR THE VALUE OF ANY REMAINING CREDIT
FOR THE EXCESS ELECTRICITY PRODUCED DURING THE YEAR OR OVER THE ANNUAL-
IZED PERIOD BY THE CUSTOMER-GENERATOR.
5. SAFETY STANDARDS. ON OR BEFORE THREE MONTHS AFTER THE EFFECTIVE
DATE OF THIS SECTION, EACH ELECTRIC CORPORATION SHALL ESTABLISH STAND-
ARDS THAT ARE NECESSARY FOR NET ENERGY METERING AND THE INTERCONNECTION
OF ENERGY GENERATING EQUIPMENT TO ITS SYSTEM AND THAT THE COMMISSION
SHALL DETERMINE ARE NECESSARY FOR SAFE AND ADEQUATE SERVICE AND FURTHER
THE PUBLIC POLICY SET FORTH IN THIS SECTION. SUCH STANDARDS MAY INCLUDE,
BUT SHALL NOT BE LIMITED TO:
(A) EQUIPMENT NECESSARY TO ISOLATE AUTOMATICALLY THE ENERGY GENERATING
EQUIPMENT FROM THE UTILITY SYSTEM FOR VOLTAGE AND FREQUENCY DEVIATIONS;
AND
(B) A MANUAL LOCKABLE DISCONNECT SWITCH PROVIDED BY THE CUSTOMER-GEN-
ERATOR WHICH SHALL BE LOCATED ON THE OUTSIDE OF THE MEMBERS' PREMISES
AND EXTERNALLY ACCESSIBLE FOR THE PURPOSE OF ISOLATING THE ENERGY GENER-
ATING EQUIPMENT.
S 2. This act shall take effect immediately.