S T A T E   O F   N E W   Y O R K
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                                  6065

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             March 14, 2013
                               ___________

Introduced by M. of A. CRESPO -- 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-n to read as follows:
  S 66-N. 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.
                                                           LBD06874-01-3

A. 6065                             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

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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.