NY State Senate Bill 2015-S2878

Senate Bill S2878

2015-2016 Legislative Session

Provides that credits for excess electricity generated by customer-generators subject to net energy metering may be carried over and used to offset electricity used

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Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to energy and telecommunications
Jan 29, 2015	referred to energy and telecommunications

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2015-S2878 (ACTIVE) - Details

See Assembly Version of this Bill:: A3096
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §§66-j & 66-l, Pub Serv L; amd §1020-g, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A10244
2011-2012: S5839, A5521
2013-2014: S2957, A5822
2017-2018: S2696, A5527
2019-2020: S3596, A4639
2021-2022: S3140, A5530
2023-2024: S4304

2015-S2878 (ACTIVE) - Summary

Provides that credits for excess electricity generated by customer-generators subject to net energy metering by an electric corporation or the Long Island power authority may be carried over indefinitely and used against any charges imposed by an electric corporation or the Long Island power authority when the customer-generator uses more electricity than such customer generates; provides for the accounting of credits once every 5 years and the electric corporation or Long Island power authority shall reimburse the customer-generator for the accumulated credits.

2015-S2878 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2878

TITLE OF BILL:

An act to amend the public service law and the public authorities law,
in    relation    to   credit   for   electricity   generated   by   a
customer-generator subject to net energy metering

PURPOSE OR GENERAL IDEA OF BILL:

To provide that credits for excess electricity generated by  customer-
generators  subject  to  net  metering may be carried over and used to
offset electricity used.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends subdivision 4 of section 66-j of the  Public  Service
Law, as amended by Chapter 355 of the laws of 2009.

Section  2  amends subdivision 4 of section 66-1 of the Public Service
Law, as amended by Chapter 721 of the laws of 2006, paragraphs (b) and
(e) as amended and paragraph (d) as added by Chapter 483 of  the  laws
of 2003.

JUSTIFICATION:

New  York  State's  net metering law allows a utility customer with an
on-site electric generating system using solar or  wind  to  send  any
excess power that they Generate back to the utility arid, receiving an
equal  credit  against,their own usage. Customers are credited for the
excess energy they produce at the retail rate, and the credits can  be
rolled  over  from  month  to  month  for  a  year. If there is excess
electricity generated by the customer generator  at  the  end  of  the
annualized period of service, the utility pays for this-electricity at
the avoided cost rate. Avoided cost is the cost the utility would have
incurred  for  producing the same amount of power at a rate lower than
the retail rate.

Under this legislation, net-metered customer-generators can choose the
option to carryover the credits that come from their producing  energy
in   excess   of  what  they  use  and  have  that  credit  aggregated
indefinitely so as to be used as credit against times  when  they  use
more  energy  than  they  produce.  In cases where customer-generators
elect to carryover credits indefinitely, they will be entitled  to  an
accounting of those credits every five years.

Net-metered  customer  generators  do  not  produce  excess energy for
profit. The electricity that the net-metered customer  generators  put
into  the  grid  roughly  equals  what  that  customer uses during the
periods when they must use electricity from the grid.  It  is  logical
and  reasonable to allow the option of carryover of excess electricity
credit longer than a 12 month period so that a customer-generator  may
take  advantage of using their credits priced at the retail rate. This
is significant because the periods of time that the sun may shine  and
wind  may  blow are not the same from year to year, leaving a customer
generator to either make more or less energy then use in anyone, year.
By giving the customer-generator the opportunity to carryover  credits


over  a period of time longer than a year, the customer generator will
be better  able  to  take  advantage  of  the  natural  year  to  year
fluctuations of the sun and wind.

New  York's  interconnection  and  net  metering rules are designed to
motivate ratepayers to invest in renewable  energy  sources  on  their
properties  by  ensuring  that customer generators are compensated for
the energy they  produce.  By  providing  reasonable  and  appropriate
benefits  for  customers, New York can incentivize customer-generators
to contribute to the availability of safe,  reliable,  and  affordable
electricity  and  help  protect our environment in New York and reduce
our dependence on foreign fuel sources.

PRIOR LEGISLATIVE HISTORY:

2013-14: S.2957/A.5822 -  Referred  to  Energy  and  Telecomm/  Passed
Assembly
2011-12:  S.5839/A.5521  -  Referred  to  Energy  and Telecomm/ Passed
Assembly
2009-10 A.10244A - Reported Referred to Rules

FISCAL IMPLICATIONS:

No fiscal implications.

EFFECTIVE DATE:

This act shall take effect on the first day of January next succeeding
the date on which it shall have become a law.

2015-S2878 (ACTIVE) - Bill Text download pdf

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

                                  2878

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 29, 2015
                               ___________

Introduced  by Sens. PARKER, BOYLE, MONTGOMERY, PERKINS, SAMPSON -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Energy and Telecommunications

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, paragraphs (b)  and  (c)  as
amended  by  chapter  494  of  the  laws  of 2014, 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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06076-02-5

S. 2878                             2

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 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 or farm waste generating
equipment customer-generators as described in subparagraph (ix) of para-
graph (a) of subdivision one of this section, 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  or  farm
waste  generating equipment customer-generators as described in subpara-
graph (ix) of paragraph (a) of subdivision one of this section 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), (ii), (IV), (V) or (ix) 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

S. 2878                             3

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 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

S. 2878                             4

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
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.

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Senate Bill S2878

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Sponsored By

Kevin S. Parker