S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4304
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 7, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 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, paragraph (b) as amended  by
 chapter 691 of the laws of 2022 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.
                                                            LBD06333-01-3
              

 S. 4304                             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 or fuel-flexible linear generator  customer-
 generators  or  farm  waste  generating equipment customer-generators as
 described in subparagraph (ix) of paragraph (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 or fuel-flexible linear generator 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-GENERATOR,
 AS  DEFINED  IN  SUBPARAGRAPH (I), (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 BY THE CUSTOMER-GENERATOR.
   §  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:
 S. 4304                             3
 
   (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 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 CORPO-
 RATION  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-GENERATOR
 FOR  THE  VALUE  OF  ANY  REMAINING  CREDIT  FOR  THE EXCESS ELECTRICITY
 PRODUCED BY THE CUSTOMER-GENERATOR.
   § 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
 S. 4304                             4
 
 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
 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;
   §  4. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.