BILL NUMBER:S3917

TITLE OF BILL:

An act to amend the public service law, in relation to the rates paid
for micro-combined heat and power or fuel cell customer-generators

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 microcombined heat
(CHP) and power and fuel cell customer-generator technologies are
proven, and such technologies should be provided with benefits equal
to 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.
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. Fuel cells
can be used in conjunction with solar panels or wind farms to produce
electricity when sun or wind is unavailable.

Fuel cells and micro-CHP were added to net metering, because they are
efficient, extremely low-emission sources of electricity generation.
For these reasons, such technologies should be treated equally to
renewable technologies in determining the appropriate rates for such
technologies.

This bill was vetoed in 2014 due to an ongoing Public Service
Commission proceeding (Reforming Energy Vision) which includes a


review of net metering and distributed energy resources. However, this
bill is still necessary in order to encourage the installation of fuel
cells and micro-CHP in the near future as the PSC proceeding is
expected to be lengthy. Other states, such as Connecticut, are
surpassing New York in fuel cell installations and we should not wait
to further encourage the development of this industry in New York.

LEGISLATIVE HISTORY:

S.2383, 2013 referred to Energy and Telecommunications and 2014 vetoed
(Memo 535); same as A.6367, 2013 passed Assembly and 2014 vetoed (Memo
535).

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

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