BILL NUMBER:S2383

TITLE OF BILL:  An act to amend the public service law, in relation to
the rates paid for net energy metering technology

PURPOSE: To include micro-combined heat and power and fuel cell
customer-generators in total rate reimbursement from electric
corporations.

SUMMARY OF PROVISIONS: Amends paragraph (b) of subdivision 4 of
section 66-j of the public service law to eliminate the exclusion of
micro-combined heat and power and fuel cell customer-generators from
receiving the a credit based on same rate per kilowatt hour as
customers without on-site generation, just as other net metered
technologies currently receive.

EXISTING LAW: Currently, micro-combined heat and power and fuel cells
are credited at the utility's avoided cost for electricity produced in
excess of the customer's usage.

JUSTIFICATION: The reliability and environmental advantages of
micro-combined heat (CHP) and power and fuel cell customer-generator
technologies are proven and such technologies should be provided with
equal benefits as other renewable technologies.

Fuel cell and micro-CHP electric generating technology have many
              

advantages. Fuel cells and micro-CHP commonly provide power to host
facilities during power outages, enhancing storm response, and
allowing critical facilities to remain operational in such events.
The fuel flexibility of these technologies unlocks a large portfolio
of locally available fuels and the existing fuel infrastructure, which
has the potential to increase the reliability of the power system and
to keep more energy dollars in New York State. Fuel cells and
micro-CHP commonly provide power to host facilities during power
outages, enhancing storm response, and allowing critical facilities to
remain operational in such events. Fuel cells and micro-CHP are
exceptionally efficient, they can stretch available supplies of fuel,
reduce energy costs and help reduce our dependence on foreign oil.
The scalability and resiliency of fuel cells and micro-CHP makes them
suitable for a wide range of heat and power needs in electronics,
homes, offices, and factories. In addition, these technologies have a
low impact on their surroundings, with near-silent operation and low
emissions, making them suitable in locations where combustion systems
may not be appropriate. Also, fuel cells can be used in conjunction
with solar panels or wind farms to produce electricity when renewable
energy is unavailable. The high capacity factors, fuel and efficiency,
associated with these technologies make them equal or superior to
renewable technologies in the displacement of conventional fossil
generation, leading to lower air emissions, including carbon.  For
these reasons, such technologies should be treated equally to
renewable technologies in determining the appropriate rates for such
technologies.

FISCAL IMPLICATIONS: This bill would generate a de minimis total
annual reduction in tax liabilities.


HISTORY: New bill.

EFFECTIVE DATE: This act shall take effect on the one hundred
twentieth day after it shall become a law