§ 66-l. Net energy metering for residential, farm service and
non-residential wind electric generating systems. 1. Definitions. As
used in this section, the following terms shall have the following
meanings:

(a) "Customer-generator" means a residential customer, farm service
customer or non-residential customer of an electric corporation, who
owns or operates wind electric generating equipment.

(b) "Residential customer-generator" means a customer who owns or
operates wind electric generating equipment located and used at his or
her primary residence.

(c) "Farm service customer-generator" means a customer of an electric
corporation who owns and operates wind electric generating equipment
located and used on land used in agricultural production as defined in
subdivision four of section three hundred one of the agriculture and
markets law, and which is also the location of the customer's primary
residence.

(c-1) "Non-residential customer-generator" means a customer of an
electric corporation which owns or operates wind electric generating
equipment located and used at its premises.

(d) "Net energy meter" means a meter that measures the reverse flow of
electricity to register the difference between the electricity supplied
by an electric corporation to the customer-generator and the electricity
provided to the corporation by that customer-generator.

(e) "Net energy metering" means the use of a net energy meter to
measure, during the billing period applicable to a customer-generator,
the net amount of electricity supplied by an electric corporation or
provided to the corporation by a customer-generator.

(f) "Wind electric generating equipment" means one or more wind
generators with a combined rated capacity of not more than twenty-five
kilowatts for a residential customer-generator, and not more than five
hundred kilowatts for a farm service customer-generator, and not more
than two thousand kilowatts for a non-residential customer-generator;
that is 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, and that is operated in
compliance with any standards and requirements established under this
section.

2. Interconnection and net energy metering. An electric corporation
shall provide for the interconnection and net energy metering of wind
electric generating equipment owned or operated by a customer-generator;
provided that the customer-generator 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 under this section. The customer-generator shall be
responsible for payment of one-half of the expense of such
interconnection for wind electric generating equipment with a rated
capacity of more than twenty-five kilowatts.

3. Conditions of service. (a) (i) 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
customer-generators, according to the requirements of this section. The
commission shall render a decision within three months from the date on
which the schedule is filed.

(ii) On or before three months after the effective date of this
subparagraph, 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 non-residential
customer-generators, according to the requirements of this section. The
commission shall render a decision within three months from the date on
which the schedule is filed.

(iii) Each electric corporation shall make such contract and schedule
available to customer-generators on a first come, first served basis,
until the total rated generating capacity for wind electric generating
equipment owned or operated by customer-generators in the corporation's
service area is equivalent to three-tenths percent of the corporation's
electric demand for the year two thousand five, as determined by the
department.

(b) Nothing in this subdivision shall prohibit a corporation from
providing net energy metering to additional customer-generators. The
commission shall have the authority, after January first, two thousand
twelve, to increase the percent limits if it determines that additional
net energy metering is in the public interest.

(c) In the event that the electric corporation determines that it is
necessary to install one or more dedicated transformers or other
equipment to protect the safety and adequacy of electric service
provided to its other customers, a customer-generator shall pay the
electric corporation's actual costs of installing the transformer or
transformers or other equipment:

(i) in the case of a residential, farm service or non-residential
customer-generator with a combined rated capacity of not more than
twenty-five kilowatts, up to a maximum amount of seven hundred fifty
dollars; and

(ii) in the case of a farm service customer-generator with a combined
rated capacity of not more than five hundred kilowatts, up to a maximum
of five thousand dollars; and

(iii) in the case of a non-residential customer-generator with a
combined rated capacity of more than twenty-five kilowatts, such cost
shall be as determined by the electric corporation subject to review,
upon the request of such customer-generator, by the department.

(d) An electric corporation shall impose no other charge or fee,
including, but not limited to, back up, stand by or demand charges, for
the provision of net metering to a customer-generator.

(e) A customer who owns or operates land used in agricultural
production as defined in subdivision four of section three hundred one
of the agriculture and markets law, or a non-residential
customer-generator as defined by paragraph (c-1) of subdivision one of
this section that locates wind electric generating equipment with a net
energy meter on property owned or leased by such customer-generator may
designate all or a portion of the net metering credits generated by such
equipment to meters, at any property owned or leased by such
customer-generator within the service territory of the same electric
corporation to which the customer-generator's net energy meters are
interconnected and being within the same load zone as determined by the
location based marginal price as of the date of initial request by the
customer-generator to conduct net metering. The electric corporation
will credit the accounts of the customer by applying any credits to the
highest use meter first, then subsequent highest use meters until all
such credits are attributed to the customer. Any excess credits shall be
carried over to the following month.

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
corporation during the billing period exceeds the amount of electricity
provided by a customer-generator, the corporation shall charge the
customer-generator for the net electricity supplied 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
customer-generator during the billing period exceeds the amount of
electricity used by the customer-generator, the corporation shall apply
a credit to the next bill for service to the customer-generator for the
net electricity 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.

(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 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
period by such customer-generator.

(d) In the event that the corporation imposes charges based on
kilowatt 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
customer-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.

5. Safety standards. (a) Each electric corporation shall establish and
maintain standards necessary for net energy metering and the
interconnection of wind electric 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:

(i) equipment necessary to isolate automatically a wind electric
generating system from the utility system for voltage and frequency
deviations; and

(ii) a manual lockable disconnect switch provided by the
customer-generator which shall be located on the outside of the
customer's premises and/or farm and externally accessible for the
purpose of isolating the wind electric generating equipment.

(b) Upon its own motion or upon a complaint, the commission, or its
designated representative, may investigate and make a determination as
to the reasonableness and necessity of the standards or responsibility
for compliance with the standards.

(c) Unless otherwise determined to be necessary by the commission, an
electric corporation may not require a customer-generator to comply with
additional safety or performance standards, or perform or pay for
additional tests, or purchase additional liability insurance, provided
that:

(i) the electric generating equipment meets the safety standards
established pursuant to this paragraph; and

(ii) the total rated capacity (measured in kilowatts) of wind electric
generating equipment that provides electricity to the electric
corporation through the same local feeder line, does not exceed twenty
percent of the rated capacity of that local feeder line.

In the event that the total rated generating capacity of wind electric
generating equipment that provides electricity to the electric
corporation through the same local feeder line exceeds twenty percent of
the rated capacity of the local feeder line, the electric corporation
may require the customer-generator to comply with reasonable measures to
ensure safety of that local feeder line.

6. Electric restructuring. Notwithstanding the provisions of this
section, including, but not limited to paragraph (c) of subdivision
three of this section, a customer-generator shall comply with any
applicable determinations of the commission relating to restructuring of
the electric industry.

7. Severability of provisions. The provisions of this section shall be
severable and if the application of any clause, sentence, paragraph,
subdivision, section, or part thereof to any person or circumstance
shall be adjudged by any court of competent jurisdiction to be invalid,
such judgment shall not necessarily affect, impair, or invalidate the
application of any such clause, sentence, paragraph, subdivision,
section, part or remainder thereof, as the case may be, to any other
person or circumstance, but shall be confined in its operation to the
clause, sentence, paragraph, subdivision, section or part thereof
directly involved in the controversy in which such judgment shall be
rendered.