S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5822

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              March 6, 2013
                               ___________

Introduced by M. of A. ENGLEBRIGHT, RUSSELL -- read once and referred to
  the Committee on Energy

AN  ACT  to amend the public service law and the public authorities law,
  in relation to credit for electricity generated by a  customer-genera-
  tor subject to net energy metering

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 4 of section 66-j of the public service law, as
amended by chapter 355 of the laws  of  2009,  is  amended  to  read  as
follows:
  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  by  a customer-generator, the corporation shall, AFTER DEDUCT-
ING, FROM THE AGGREGATE OF UNUSED CREDIT FOR EXCESS  ELECTRICITY  GENER-
ATED  BY SUCH CUSTOMER-GENERATOR PRIOR TO SUCH BILLING PERIOD, AN AMOUNT
OF CREDIT EQUAL TO THE AMOUNT OF ELECTRICITY SUPPLIED  BY  THE  ELECTRIC
CORPORATION, TO THE EXTENT SUCH CREDIT EXISTS, AND MAY THEREAFTER charge
the customer-generator for the net electricity supplied, AFTER DEDUCTION
OF  SUCH  CREDITS,  at  the  same  rate  per kilowatt hour applicable 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 customer-generator, the corporation shall (I) apply a credit
to the next bill for service to the customer-generator for the net elec-
tricity provided at the  same  rate  per  kilowatt  hour  applicable  to
service  provided  to other customers in the same service class which do

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06940-01-3
              

A. 5822                             2

not generate electricity onsite, OR (II) AT THE OPTION OF THE  CUSTOMER-
GENERATOR,  CREDIT  SUCH  CUSTOMER-GENERATOR  WITH  THE AMOUNT OF EXCESS
KILOWATT HOURS GENERATED IN EXCESS OF ITS USE, AND SUCH CREDIT SHALL  BE
AGGREGATED  INDEFINITELY  TO  BE USED AS CREDIT AGAINST CHARGES INCURRED
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION; except for micro-combined
heat and power or fuel cell customer-generators, who will be credited at
the corporation's avoided costs. The avoided  cost  credit  provided  to
micro-combined  heat and power or fuel cell customer-generators shall be
treated for ratemaking purposes as a  purchase  of  electricity  in  the
market that is includable in commodity costs.
  (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  (I)
promptly issue payment at its avoided cost to the customer-generator, as
defined  in subparagraph (i) [or], (ii), (IV) OR (V) of paragraph (a) of
subdivision one of this section, 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, OR (II)  AT  THE  OPTION  OF  THE
CUSTOMER-GENERATOR,  SHALL  CONTINUE  TO  AGGREGATE SUCH CREDITS, AT THE
SAME RATE PER KILOWATT HOUR APPLICABLE TO THE SERVICE PROVIDED TO  OTHER
CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO NOT GENERATE ELECTRICITY ON
SITE, FOR AN INDEFINITE PERIOD OF TIME AND CONTINUE TO ALLOW USE OF SUCH
CREDIT TO OFFSET ANY LIABILITY OF THE CUSTOMER-GENERATOR TO THE ELECTRIC
CORPORATION DURING BILLING PERIODS IN WHICH THE ELECTRICITY GENERATED BY
THE CUSTOMER-GENERATOR IS LESS THAN THAT USED BY SUCH CUSTOMER.
  (d)  In  the event that the corporation imposes charges based on kilo-
watt demand on customers who are  in  the  same  service  class  as  the
customer-generator  but  which  do not generate electricity on site, the
corporation may impose the same charges at the same rates to the custom-
er-generator, provided, however,  that  the  kilowatt  demand  for  such
demand  charges  is  determined  by the maximum measured kilowatt demand
actually supplied by the corporation to  the  customer-generator  during
the billing period.
  (E)  IN THE EVENT THAT A CUSTOMER-GENERATOR ELECTS TO ALLOW THE AGGRE-
GATION  OF  ANY  CREDITS   FOR   EXCESS   ELECTRICITY   GENERATED,   THE
CUSTOMER-GENERATOR  SHALL  BE  ENTITLED TO AN ACCOUNTING OF SUCH CREDITS
ONCE EVERY FIVE YEARS AND UPON SUCH ACCOUNTING, THE ELECTRIC CORPORATION
SHALL PROMPTLY ISSUE PAYMENT AT ITS AVOIDED COST TO SUCH CUSTOMER-GENER-
ATOR, AS DEFINED IN SUBPARAGRAPH (I), (II), (IV) OR (V) OF PARAGRAPH (A)
OF SUBDIVISION ONE OF THIS SECTION, FOR THE VALUE OF ANY REMAINING CRED-
IT FOR THE EXCESS ELECTRICITY PRODUCED BY THE CUSTOMER-GENERATOR.
  S 2. Subdivision 4 of section 66-l  of  the  public  service  law,  as
amended  by  chapter  721 of the laws of 2006, paragraphs (b) and (c) as
amended and paragraph (d) as added by chapter 483 of the laws  of  2008,
is amended to read as follows:
  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
the following 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  by  a customer-generator, the corporation shall, AFTER DEDUCT-
ING, FROM THE AGGREGATE OF UNUSED CREDIT FOR EXCESS  ELECTRICITY  GENER-
ATED  BY SUCH CUSTOMER-GENERATOR PRIOR TO SUCH BILLING PERIOD, AN AMOUNT
OF CREDIT EQUAL TO THE AMOUNT OF ELECTRICITY SUPPLIED  BY  THE  ELECTRIC
CORPORATION, TO THE EXTENT SUCH CREDIT EXISTS, AND MAY THEREAFTER charge
the customer-generator for the net electricity supplied, AFTER DEDUCTION

A. 5822                             3

OF  SUCH  CREDITS,  at  the  same  rate  per kilowatt hour applicable to
service provided to other customers in the same service class  which  do
not generate electricity on site.
  (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 customer-generator, the corporation shall (I) apply a credit
to the next bill for service to the customer-generator for the net elec-
tricity provided at the  same  rate  per  kilowatt  hour  applicable  to
service  provided  to other customers in the same service class which do
not generate electricity on site, OR (II) AT THE OPTION OF  THE  CUSTOM-
ER-GENERATOR,  CREDIT  SUCH CUSTOMER-GENERATOR WITH THE AMOUNT OF EXCESS
KILOWATT HOURS GENERATED IN EXCESS OF ITS USE, AND SUCH CREDIT SHALL  BE
AGGREGATED  INDEFINITELY  TO  BE USED AS CREDIT AGAINST CHARGES INCURRED
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
  (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 (I)
promptly issue payment at its avoided cost  to  a  residential  or  farm
service customer-generator for the value of any remaining credit for the
excess electricity produced during the year or over the annualized peri-
od   by   such   customer-generator,  OR  (II)  AT  THE  OPTION  OF  THE
CUSTOMER-GENERATOR, SHALL CONTINUE TO AGGREGATE  SUCH  CREDITS,  AT  THE
SAME  RATE PER KILOWATT HOUR APPLICABLE TO THE SERVICE PROVIDED TO OTHER
CUSTOMERS IN THE SAME SERVICE CLASS WHICH DO NOT GENERATE ELECTRICITY ON
SITE, FOR AN INDEFINITE PERIOD OF TIME, AND CONTINUE  TO  ALLOW  USE  OF
SUCH  CREDIT  TO  OFFSET  ANY LIABILITY OF THE CUSTOMER-GENERATOR TO THE
ELECTRIC CORPORATION DURING BILLING PERIODS  IN  WHICH  THE  ELECTRICITY
GENERATED  BY  THE  CUSTOMER-GENERATOR  IS  LESS  THAN THAT USED BY SUCH
CUSTOMER.
  (d) In the event that the corporation imposes charges based  on  kilo-
watt  demand  on  customers  who  are  in  the same service class as the
customer-generator but which do not generate electricity  on  site,  the
corporation may impose the same charges at the same rates to the custom-
er-generator,  provided,  however,  that  the  kilowatt  demand for such
demand charges is determined by the  maximum  measured  kilowatt  demand
actually  supplied  by  the corporation to the customer-generator during
the billing period.
  (E) IN THE EVENT THAT A CUSTOMER-GENERATOR ELECTS TO ALLOW THE  AGGRE-
GATION   OF   ANY   CREDITS   FOR   EXCESS  ELECTRICITY  GENERATED,  THE
CUSTOMER-GENERATOR SHALL BE ENTITLED TO AN ACCOUNTING  OF  SUCH  CREDITS
ONCE EVERY FIVE YEARS AND UPON SUCH ACCOUNTING, THE ELECTRIC CORPORATION
SHALL PROMPTLY ISSUE PAYMENT AT ITS AVOIDED COST TO SUCH CUSTOMER-GENER-
ATOR  FOR  THE  VALUE OF ANY REMAINING CREDIT FOR THE EXCESS ELECTRICITY
PRODUCED BY THE CUSTOMER-GENERATOR.
  S 3. Subdivision (h) of section 1020-g of the public authorities  law,
as  amended  by  chapter  546 of the laws of 2011, is amended to read as
follows:
  (h) To implement programs and policies designed  to  provide  for  the
interconnection of: (i) (A) solar electric generating equipment owned or
operated  by  residential  customers, (B) farm waste electric generating
equipment owned or operated by customer-generators, (C)  solar  electric
generating equipment owned or operated by non-residential customers, (D)
micro-combined  heat  and  power  generating  equipment owned, leased or
operated by residential customers, (E)  fuel  cell  electric  generating
equipment  owned,  leased  or operated by residential customers, and (F)
micro-hydroelectric generating equipment owned, leased  or  operated  by
customer-generators  and for net energy metering consistent with section

A. 5822                             4

sixty-six-j of the public service law, to  increase  the  efficiency  of
energy  end  use, to shift demand from periods of high demand to periods
of low demand and to facilitate the  development  of  cogeneration;  and
(ii)  wind  electric generating equipment owned or operated by customer-
generators and for net energy metering consistent  with  section  sixty-
six-l  of  the  public  service  law.  NOTWITHSTANDING THE PROVISIONS OF
SECTION ONE THOUSAND TWENTY-S OF THIS TITLE, AS AMENDED BY CHAPTER THREE
HUNDRED EIGHTY-EIGHT OF THE LAWS OF TWO THOUSAND ELEVEN, THE  AUTHORITY,
IN ITS IMPLEMENTATION OF SUCH PROGRAMS AND POLICIES, SHALL BE SUBJECT TO
THE  PROVISIONS  OF SUBDIVISION FOUR OF SECTION SIXTY-SIX-J AND SUBDIVI-
SION FOUR OF SECTION SIXTY-SIX-L OF THE PUBLIC SERVICE LAW;
  S 4. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.