BILL NUMBER: AB 58 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 20, 2002
AMENDED IN ASSEMBLY JANUARY 16, 2002
AMENDED IN ASSEMBLY JANUARY 7, 2002
INTRODUCED BY Assembly Members Keeley and Pescetti
(Coauthors: Assembly Members Kehoe and Richman)
DECEMBER 4, 2000
An act to amend Sections 2827 and 2827.7 of , and to repeal
Section 2827 of, the Public Utilities Code, relating to public
utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 58, as amended, Keeley. Net energy metering.
(1) Existing law requires every electric service provider to
develop a standard contract or tariff providing for net energy
metering, and to make this contract available to eligible
customer-generators, upon request. Existing law, commencing on
January 1, 2003, requires every electric service provider, upon
request, to make available to eligible customer-generators contracts
for net energy metering subject to specified limitations on the
number of contracts. Existing law requires, commencing in 1999,
every electric service provider, to make available to the ratemaking
authority information on the total rated generating capacity used by
eligible customer-generators that are customers of that provider in
the provider's service area.
This bill would require every electric service provider,
commencing January 1, 2003, to make available to the ratemaking
authority information on the total rated generating capacity used by
eligible customer-generators that are customers of that provider in
the provider's service area. The bill would require every
electric service provider to ensure that requests for establishment
of net energy metering service are processed in a time
period not exceeding that for similarly situated customers requesting
new electric service, but not to exceed one month
30 working days from the date the electric service
provider receives a completed application form , including a
signed interconnection agreement from an eligible
customer-generator and an electric inspection clearance. The
bill would require an electric service provider to ensure that
requests for an interconnection agreement be processed in a time
period not to exceed 30 working days from the date the electric
service provided receives the completed application . The bill
would require an electric service provider that is unable to process
the request requests within
this timeframe these timeframes , to notify the
customer-generator and the Public Utilities Commission
ratemaking authority . The bill would also
require every electric service provider to make forms and contracts
for net energy metering available for download from the Internet.
The bill would specify special net-metering provisions for a
customer-generator with a capacity of more than 10 kilowatts, but not
exceeding one megawatt. The bill would require the Public Utilities
Commission to report to the Governor and the Legislature by January
1, 2007, on the costs and benefits of net metering.
(2) Existing law provides that generation eligible for net energy
metering installed on or before December 31, 2002, is entitled to the
net energy metering terms in effect on the date of installation for
the life of the installation.
This bill would make this provision applicable regardless of any
change in customer or ownership of the energy system.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2827 of the Public Utilities Code, as amended
by Section 11 of Chapter 8 of the Statutes of the 2001-02 First
Extraordinary Session, is amended to read:
2827. (a) The Legislature finds and declares that a program to
provide net energy metering for eligible customer-generators is one
way to encourage substantial private investment in renewable energy
resources, stimulate in-state economic growth, reduce demand for
electricity during peak consumption periods, help stabilize
California's energy supply infrastructure, enhance the continued
diversification of California's energy resource mix, and reduce
interconnection and administrative costs for electricity suppliers.
(b) As used in this section, the following definitions apply:
(1) "Electric service provider" means an electrical corporation,
as defined in Section 218, a local publicly owned electric utility,
as defined in Section 9604, or an electrical cooperative, as defined
in Section 2776, or any other entity that offers electrical service.
(2) "Eligible customer-generator" means a residential, small
commercial customer as defined in subdivision (h) of Section 331,
commercial, industrial, or agricultural customer of an electric
service provider, who uses a solar or a wind turbine electrical
generating facility, or a hybrid system of both, with a capacity of
not more than one megawatt that is located on the customer's owned,
leased, or rented premises, is interconnected and operates in
parallel with the electric grid, and is intended primarily to offset
part or all of the customer's own electrical requirements.
(3) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivision (e) (h) . Net energy
metering shall be accomplished using a single meter capable of
registering the flow of electricity in two directions. An additional
meter or meters to monitor the flow of electricity in each direction
may be installed with the consent of the customer-generator, at the
expense of the electric service provider, and the additional metering
shall be used only to provide the information necessary to
accurately bill or credit the customer-generator pursuant to
subdivision (e) (h) , or to collect
solar or wind electric generating system performance information for
research purposes. If the existing electrical meter of an eligible
customer-generator is not capable of measuring the flow of
electricity in two directions, the customer-generator shall be
responsible for all expenses involved in purchasing and installing a
meter that is able to measure electricity flow in two directions. If
an additional meter or meters are installed, the net energy metering
calculation shall yield a result identical to that of a single
meter. An eligible customer-generator who already owns an existing
solar or wind turbine electrical generating facility, or a hybrid
system of both, is eligible to receive net energy metering service in
accordance with this section.
(4) "Ratemaking authority" means, for an electrical corporation as
defined in Section 218, or an electrical cooperative as defined in
Section 2776, the commission, and for a local publicly owned electric
utility as defined in Section 9604, the local elected body
responsible for regulating the rates of the local publicly owned
utility.
(c) (1) Every electric service provider shall develop a standard
contract or tariff providing for net energy metering, and shall make
this contract available to eligible customer-generators, upon request
. , on a first-come-first-served basis until
the time that the total rated generating capacity used by eligible
customer-generators exceeds 1 percent of the electric service
provider's aggregate customer peak demand.
(2) On an annual basis, beginning in 2003, every electric service
provider shall make available to the ratemaking authority information
on the total rated generating capacity used by eligible
customer-generators that are customers of that provider in the
provider's service area. For those electric service providers who
are operating pursuant to Section 394, they shall make available to
the ratemaking authority the information required by this paragraph
for each eligible customer-generator that is their customer for each
service area of an electric corporation, local publicly owned
electric utility, or electrical cooperative, in which the customer
has net energy metering. The ratemaking authority shall develop a
process for making the information required by this paragraph
available to energy service providers, and for using that information
to determine when, pursuant to paragraph (3), a service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area.
(3) Notwithstanding paragraph (1), an electric service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area when the combined total peak
demand of all customer-generators served by all the electric service
providers in that service area furnishing net energy metering to
eligible customer-generators exceeds 1 percent of the aggregate
customer peak demand of those electric service providers.
(d) Electric service providers shall make all necessary forms and
contracts for net metering service available for download from the
Internet.
(e) (1) Every electric service provider shall ensure that
requests for establishment of net energy metering are processed in a
time period not exceeding that for similarly situated customers
requesting new electric service, but not to exceed one month
30 working days from the date the electric
service provider receives a completed application form from
an eligible customer-generator for net metering
service, including a signed interconnection agreement from an
eligible customer-generator and the electric inspection clearance
from the governmental authority having jurisdiction . If an
electric service provider is unable to process the request within the
allowable timeframe, the electric service provider shall notify both
the customer-generator and the commission
ratemaking authority of the reason for its inability
to process the request and the date the request will be completed.
Every electric service provider shall make all necessary forms and
contracts for net energy metering available for download from the
Internet.
(2) inability to process the request and the
expected completion date.
(2) Electric service providers shall ensure that requests for an
interconnection agreement from an eligible customer-generator are
processed in a time period not to exceed 30 working days from the
date the electric service provider receives a completed application
form from the eligible customer-generator for an interconnection
agreement. If an electric service provider is unable to process the
request within the allowable timeframe, the electric service provider
shall notify the customer-generator and the ratemaking authority of
the reason for its inability to process the request and the expected
completion date.
(f) (1) If a customer participates in direct transactions
pursuant to paragraph (1) of subdivision (b) of Section 365 with an
electric supplier that does not provide distribution service for the
direct transactions, the service provider that provides distribution
service for an eligible customer-generator is not obligated to
provide net energy metering to the customer.
(3)
(2) If a customer participates in direct transactions
pursuant to paragraph (1) of subdivision (b) of Section 365 with an
electric supplier, and the customer is an eligible
customer-generator, the service provider that provides distribution
service for the direct transactions may recover from the customer's
electric service provider the incremental costs of metering and
billing service related to net energy metering in an amount set by
the commission.
(d) ratemaking authority.
(g) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if such customer
was not an eligible customer-generator the customer
did not use an eligible solar or wind electrical generating facility
, except that eligible customer-generators shall not be
assessed standby charges on the electrical generating capacity or the
kilowatthour production of an eligible solar or wind electrical
generating facility. The charges for all retail rate components for
eligible customer-generators shall be based exclusively on the
customer-generator's net kilowatthour consumption over a 12-month
period, without regard to the customer-generator's choice of electric
service provider. Any new or additional demand charge, standby
charge, customer charge, minimum monthly charge, interconnection
charge, or any other charge that would increase an
eligible customer-generator's costs beyond those of other customers
who are not customer-generators in the rate class to which
the eligible customer-generator would otherwise be assigned if
the customer did not own, lease, rent, or otherwise operate an
eligible solar or wind electrical generating facility are
contrary to the intent of this legislation
section , and shall not form a part of net energy metering
contracts or tariffs.
(e)
(h) For eligible residential and small commercial
customer-generators, the net energy metering calculation shall be
made by measuring the difference between the electricity supplied to
the eligible customer-generator and the electricity generated by the
eligible customer-generator and fed back to the electric grid over a
12-month period. The following rules shall apply to the annualized
net metering calculation:
(1) The eligible residential or small commercial
customer-generator shall, at the end of each 12-month period
following the date of final interconnection of the eligible
customer-generator's system with an electric service provider, and at
each anniversary date thereafter, be billed for electricity used
during that period. The electric service provider shall determine if
the eligible residential or small commercial customer-generator was
a net consumer or a net producer of electricity during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electric service provider exceeds
the electricity generated by the eligible residential or small
commercial customer-generator during that same period, the eligible
residential or small commercial customer-generator is a net
electricity consumer and the electric service provider shall be owed
compensation for the eligible customer-generator's net kilowatthour
consumption over that same period. The compensation owed for the
eligible residential or small commercial customer-generator's
consumption shall be calculated as follows:
(A) For all eligible customer-generators taking service under
tariffs employing "baseline" and "over baseline" rates, any net
monthly consumption of electricity shall be calculated according to
the terms of the contract or tariff to which the same customer would
be assigned to or be eligible for if the customer was not an eligible
customer-generator. If those same customer-generators are net
generators over a billing period, the net kilowatthours generated
shall be valued at the same price per kilowatthour as the electric
service provider would charge for the baseline quantity of
electricity during that billing period, and if the number of
kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
service provider would charge for electricity over the baseline
quantity during that billing period.
(B) For all eligible customer-generators taking service under
tariffs employing "time of use" rates, any net monthly consumption of
electricity shall be calculated according to the terms of the
contract or tariff to which the same customer would be assigned to or
be eligible for if the customer was not an eligible
customer-generator. When those same customer-generators are net
generators during any discrete time of use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric service provider would charge for retail
kilowatthour sales during that same time of use period. If the
eligible customer-generator's time of use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (3)
of subdivision (b) shall apply.
(C) For all residential and small commercial customer-generators
and for each monthly period, the net balance of moneys owed to the
electric service provider for net consumption of electricity or
credits owed to the customer-generator for net generation of
electricity shall be carried forward as a monetary value
until the end of each 12-month period. For all commercial,
industrial, and agricultural customer-generators the net balance of
moneys owed shall be paid in accordance with the electric service
provider's normal billing cycle, except that if the commercial,
industrial, or agricultural customer-generator is a net electricity
producer over a normal billing cycle, any excess kilowatthours
generated during the billing cycle shall be carried over to the
following billing period , valued as a
monetary value, calculated according to the procedures set
forth in this section, and appear as a credit on the
customer-generator's account, until the end of the annual period when
paragraph (3) of subdivision (e) shall apply.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric service
provider during that same period, the eligible customer-generator is
a net electricity producer and the electric service provider shall
retain any excess kilowatthours generated during the prior 12-month
period. The eligible customer-generator shall not be owed any
compensation for those excess kilowatthours unless the electric
service provider enters into a purchase agreement with the eligible
customer-generator for those excess kilowatthours.
(4) The electric service provider shall provide every eligible
residential or small commercial customer-generator with net
electricity consumption information with each regular bill. That
information shall include the current monetary balance owed the
electric service provider for net electricity consumed since the last
12-month period ended. Notwithstanding subdivision (e)
this subdivision , an electric service provider
shall permit that customer to pay monthly for net energy consumed.
(5) If an eligible residential or small commercial
customer-generator terminates the customer relationship with the
electric service provider, the electric service provider shall
reconcile the eligible customer-generator's consumption and
production of electricity during any part of a 12-month period
following the last reconciliation, according to the requirements set
forth in this subdivision, except that those requirements shall apply
only to the months since the most recent 12-month bill.
(6) If an electric service provider providing net metering to a
residential or small commercial customer-generator ceases providing
that electrical service to that customer during any 12-month period,
and the customer-generator enters into a new net metering contract or
tariff with a new electric service provider, the 12-month period,
with respect to that new electric service provider, shall commence on
the date on which the new electric service provider first supplies
electric service to the customer-generator.
(f)
(i) Notwithstanding any other provisions of this section, the
following provisions shall apply to a customer-generator with a
capacity of more than 10 kilowatts, but not exceeding one megawatt:
(1) The customer-generator shall be required to utilize a meter,
or multiple meters, capable of separately measuring electricity flow
in both directions. All meters shall provide "time-of-use"
measurements of electricity flow.
(2) The consumption of electricity from the electric service
provider shall result in a cost to the customer-generator to be
priced in accordance with the standard rate charged to the
customer-generator in accordance with the electric service provider's
rate structure. The generation of electricity provided to the
electric service provider shall result in a credit to the
customer-generator and shall be priced in accordance with the
generation value established under the electric service provider's
rate structure.
(3) All costs and credits shall be shown on the customer-generator'
s bill on a monthly basis. The costs to the customer-generator based
on the consumption of electricity from the electric service
provider, and the credits owed to the customer-generator based on the
generation and delivery of electricity to the electric service
provider, shall be carried forward as a monetary value to subsequent
months during a 12-month period.
(4) (A) At the end of each 12-month period, in which the
customer-generator has been a net consumer of electricity calculated
on the basis of value determined pursuant to paragraph (2), the
customer-generator shall owe to the electric service provider the
balance of electricity costs and credits during the prior 12-month
period.
(B) At the end of each 12-month period, where the
customer-generator has been a net producer of electricity calculated
on the basis of value determined pursuant to paragraph (2), the
electric service provider shall owe to the customer-generator the
balance of electricity costs and credits during the prior 12-month
period.
(j) A solar or wind turbine electrical generating system, or
a hybrid system of both, used by an eligible customer-generator
shall meet all applicable safety and performance standards
established by the National Electrical Code, the Institute of
Electrical and Electronics Engineers, and accredited testing
laboratories such as Underwriters Laboratories and, where applicable,
rules of the Public Utilities Commission regarding safety and
reliability. A customer-generator whose solar or wind turbine
electrical generating system, or a hybrid system of both, meets those
standards and rules shall not be required to install additional
controls, perform or pay for additional tests, or purchase additional
liability insurance.
(g) This section shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2003, deletes or extends
that date.
(k) By January 1, 2007, the commission shall submit a report to
the Governor and the Legislature that assesses the costs and benefits
of net metering to customer-generators, ratepayers, and utilities.
The report shall be prepared by an independent party under contract
with the commission.
SEC. 2. Section 2827 of the Public Utilities Code, as added by
Section 12 of Chapter 8 of the Statutes of the 2001-02 First
Extraordinary Session, is amended to read:
2827. (a) The Legislature finds and declares that a program to
provide net energy metering for eligible customer-generators is one
way to encourage private investment in renewable energy resources,
stimulate in-state economic growth, enhance the continued
diversification of California's energy resource mix, and reduce
interconnection and administrative costs for electricity suppliers.
(b) As used in this section, the following definitions apply:
(1) "Electric service provider" means an electric corporation, as
defined in Section 218, a local publicly owned electric utility, as
defined in Section 9604, or an electrical cooperative, as defined in
Section 2776. "Electric service provider" also means an entity that
offers electrical service to residential and small commercial
customers, as defined in Section 394, if that entity offers net
energy metering. Any entity that offers net energy metering to
residential and small commercial customers shall comply with this
section.
(2) "Eligible customer-generator" means a residential customer, or
a small commercial customer as defined in subdivision (h) of Section
331, of an electric service provider, who uses a solar or a wind
turbine electrical generating facility, or a hybrid system of both,
with a capacity of not more than 10 kilowatts that is located on the
customer's premises, is interconnected and operates in parallel with
the electric grid, and is intended primarily to offset part or all of
the customer's own electrical requirements.
(3) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivision (e). Net energy metering shall be accomplished using a
single meter capable of registering the flow of electricity in two
directions. An additional meter or meters to monitor the flow of
electricity in each direction may be installed with the consent of
the customer-generator, at the expense of the electric service
provider, and the additional metering shall be used only to provide
the information necessary to accurately bill or credit the
customer-generator pursuant to subdivision (e), or to collect solar
or wind electric generating system performance information for
research purposes. If the existing electrical meter of an eligible
customer-generator is not capable of measuring the flow of
electricity in two directions, the customer-generator shall be
responsible for all expenses involved in purchasing and installing a
meter that is able to measure electricity flow in two directions. If
an additional meter or meters are installed, the net energy metering
calculation shall yield a result identical to that of a single
meter. An eligible customer-generator who already owns an existing
solar or wind turbine electrical generating facility, or a hybrid
system of both, is eligible to receive net energy metering service in
accordance with this section.
(4) "Ratemaking authority" means, for an electrical corporation as
defined in Section 218, or an electrical cooperative as defined in
Section 2776, the commission, and for a local publicly owned electric
utility as defined in Section 9604, the local elected body
responsible for regulating the rates of the utility.
(c) (1) Every electric service provider shall develop a standard
contract or tariff providing for net energy metering, and shall make
this contract available to eligible customer-generators, upon
request, on a first-come-first-served basis until the time that the
total rated generating capacity used by eligible customer-generators
equals one-tenth of 1 percent of the electric service provider's
aggregate customer peak demand. Every electric service provider
shall ensure that requests for establishment of net energy metering
are processed in a time period not exceeding that for similarly
situated customers requesting new electric service, but not to exceed
one month from the date the electric service provider receives a
completed application form from an eligible customer-generator. If
an electric service provider is unable to process the request within
the allowable timeframe, the electric service provider shall notify
both the customer-generator and the commission of the reason for its
inability to process the request and the date the request will be
completed. Every electric service provider shall make all necessary
forms and contracts for net energy metering available for download
from the Internet.
(2) On an annual basis, beginning in 1999, every electric service
provider shall make available to the ratemaking authority information
on the total rated generating capacity used by eligible
customer-generators that are customers of that provider in the
provider's service area. For those electric service providers who
are operating pursuant to Section 394, they shall make available to
the ratemaking authority the information required by this paragraph
for each eligible customer-generator that is their customer for each
service area of an electric corporation, local publicly owned
electric utility, or electrical cooperative, in which the customer
has net energy metering. The ratemaking authority shall develop a
process for making the information required by this paragraph
available to energy service providers, and for using that information
to determine when, pursuant to paragraph (3), a
service provider is not obligated to
provide net energy metering to additional customer-generators in its
service area.
(3) Notwithstanding paragraph (1), an electric service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area when the combined total peak
demand of all customer-generators served by all the electric service
providers in that service area furnishing net energy metering to
eligible customer-generators equals one-tenth of 1 percent of the
aggregate customer peak demand of those electric service providers.
(4) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that does not offer net energy metering and is therefore not
an electric service provider, the customer is not an eligible
customer-generator and the electric corporation, as defined in
Section 218, that provides distribution service for the direct
transactions, is not obligated to provide net energy metering to the
customer.
(5) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that offers net energy metering and is therefore an electric
service provider, and the customer is an eligible
customer-generator, the electric corporation, as defined in Section
218, that provides distribution service for the direct transactions
may recover from the customer's electric service provider the
incremental costs of metering and billing service related to net
energy metering in an amount set by the commission.
(d) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if such customer was not an
eligible customer-generator. The charges for all retail rate
components for eligible customer-generators shall be based
exclusively on the customer-generator's net kilowatthour consumption
over a 12-month period, without regard to the customer-generator's
choice of electric service provider that offers net energy metering
and is subject to this section pursuant to paragraph (1) of
subdivision (b), in accordance with subdivision (e). Any new or
additional demand charge, standby charge, customer charge, minimum
monthly charge, interconnection charge, or other charge that would
increase an eligible customer-generator's costs beyond those of other
customers in the rate class to which the eligible customer-generator
would otherwise be assigned are contrary to the intent of this
legislation, and shall not form a part of net energy metering
contracts or tariffs.
(e) The net energy metering calculation shall be made by measuring
the difference between the electricity supplied to the eligible
customer-generator and the electricity generated by the eligible
customer-generator and fed back to the electric grid over a 12-month
period. The following rules shall apply to the annualized net
metering calculation:
(1) The eligible customer-generator shall, at the end of each
12-month period following the date of final interconnection of the
eligible customer-generator's system with an electric service
provider, and at each anniversary date thereafter, be billed for
electricity used during that period. The electric service provider
shall determine if the eligible customer-generator was a net consumer
or a net producer of electricity during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electric service provider exceeds
the electricity generated by the eligible customer-generator during
that same period, the eligible customer-generator is a net
electricity consumer and the electric service provider shall be owed
compensation for the eligible customer-generator's net kilowatthour
consumption over that same period. The compensation owed for the
eligible customer-generator's net 12-month kilowatthour consumption
shall be calculated as follows:
(A) For eligible customer-generators taking service under tariffs
employing "baseline" and "over baseline" rates, any net monthly
consumption of electricity shall be calculated according to the terms
of the contract or tariff to which the same customer would be
assigned to or be eligible for if the customer was not an eligible
customer-generator. If those same customer-generators are net
generators over a billing period, the net kilowatthours generated
shall be valued at the same price per kilowatthour as the electric
service provider would charge for the baseline quantity of
electricity during that billing period, and if the number of
kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
service provider would charge for electricity over the baseline
quantity during that billing period.
(B) For eligible customer-generators taking service under tariffs
employing "time of use" rates, any net monthly consumption of
electricity shall be calculated according to the terms of the
contract or tariff to which the same customer would be assigned to or
be eligible for if the customer was not an eligible
customer-generator. When those same customer-generators are net
generators during any discrete time of use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric service provider would charge for retail
kilowatthour sales during that same time of use period. If the
eligible customer-generator's time of use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (3)
of subdivision (b) shall apply.
(C) For all customer-generators and for each monthly period, the
net balance of moneys owed to the electric service provider for net
consumption of electricity or credits owed to the customer-generator
for net generation of electricity shall be carried forward until the
end of each 12-month period.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric service
provider during that same period, the eligible customer-generator is
a net electricity producer and the electric service provider shall
retain any excess kilowatthours generated during the prior 12-month
period. The eligible customer-generator shall not be owed any
compensation for those excess kilowatthours unless the electric
service provider enters into a purchase agreement with the eligible
customer-generator for those excess kilowatthours.
(4) The electric service provider shall provide every eligible
customer-generator with net electricity consumption information with
each regular bill. That information shall include the current
monetary balance owed the electric service provider for net
electricity consumed since the last 12-month period ended.
Notwithstanding subdivision (e), an electric service provider shall
permit that customer to pay monthly for net energy consumed.
(5) If an eligible customer-generator terminates the customer
relationship with the electric service provider, the electric service
provider shall reconcile the eligible customer-generator's
consumption and production of electricity during any part of a
12-month period following the last reconciliation, according to the
requirements set forth in this subdivision, except that those
requirements shall apply only to the months since the most recent
12-month bill.
(6) If an electric service provider providing net metering to a
customer-generator ceases providing that electrical service to that
customer during any 12-month period, and the customer-generator
enters into a new net metering contract or tariff with a new electric
service provider, the 12-month period, with respect to that new
electric service provider, shall commence on the date on which the
new electric service provider first supplies electric service to the
customer-generator.
(f) A solar or wind turbine electrical generating system, or a
hybrid system of both, used by an eligible customer-generator shall
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories such as
Underwriters Laboratories and, where applicable, rules of the Public
Utilities Commission regarding safety and reliability. A
customer-generator whose solar or wind turbine electrical generating
system, or a hybrid system of both, meets those standards and rules
shall not be required to install additional controls, perform or pay
for additional tests, or purchase additional liability insurance.
(g) This section shall become operative on January 1, 2003.
SEC. 2. Section 2827 of the Public Utilities Code, as added by
Section 12 of Chapter 8 of the Statutes of the 2001-02 First
Extraordinary Session, is repealed.
2827. (a) The Legislature finds and declares that a program to
provide net energy metering for eligible customer-generators is one
way to encourage private investment in renewable energy resources,
stimulate in-state economic growth, enhance the continued
diversification of California's energy resource mix, and reduce
interconnection and administrative costs for electricity suppliers.
(b) As used in this section, the following definitions apply:
(1) "Electric service provider" means an electric corporation, as
defined in Section 218, a local publicly owned electric utility, as
defined in Section 9604, or an electrical cooperative, as defined in
Section 2776. "Electric service provider" also means an entity that
offers electrical service to residential and small commercial
customers, as defined in Section 394, if that entity offers net
energy metering. Any entity that offers net energy metering to
residential and small commercial customers shall comply with this
section.
(2) "Eligible customer-generator" means a residential customer, or
a small commercial customer as defined in subdivision (h) of Section
331, of an electric service provider, who uses a solar or a wind
turbine electrical generating facility, or a hybrid system of both,
with a capacity of not more than 10 kilowatts that is located on the
customer's premises, is interconnected and operates in parallel with
the electric grid, and is intended primarily to offset part or all of
the customer's own electrical requirements.
(3) "Net energy metering" means measuring the difference between
the electricity supplied through the electric grid and the
electricity generated by an eligible customer-generator and fed back
to the electric grid over a 12-month period as described in
subdivision (e). Net energy metering shall be accomplished using a
single meter capable of registering the flow of electricity in two
directions. An additional meter or meters to monitor the flow of
electricity in each direction may be installed with the consent of
the customer-generator, at the expense of the electric service
provider, and the additional metering shall be used only to provide
the information necessary to accurately bill or credit the
customer-generator pursuant to subdivision (e), or to collect solar
or wind electric generating system performance information for
research purposes. If the existing electrical meter of an eligible
customer-generator is not capable of measuring the flow of
electricity in two directions, the customer-generator shall be
responsible for all expenses involved in purchasing and installing a
meter that is able to measure electricity flow in two directions. If
an additional meter or meters are installed, the net energy metering
calculation shall yield a result identical to that of a single
meter. An eligible customer-generator who already owns an existing
solar or wind turbine electrical generating facility, or a hybrid
system of both, is eligible to receive net energy metering service in
accordance with this section.
(4) "Ratemaking authority" means, for an electrical corporation as
defined in Section 218, or an electrical cooperative as defined in
Section 2776, the commission, and for a local publicly owned electric
utility as defined in Section 9604, the local elected body
responsible for regulating the rates of the utility.
(c) (1) Every electric service provider shall develop a standard
contract or tariff providing for net energy metering, and shall make
this contract available to eligible customer-generators, upon
request, on a first-come-first-served basis until the time that the
total rated generating capacity used by eligible customer-generators
equals one-tenth of 1 percent of the electric service provider's
aggregate customer peak demand.
(2) On an annual basis, beginning in 1999, every electric service
provider shall make available to the ratemaking authority information
on the total rated generating capacity used by eligible
customer-generators that are customers of that provider in the
provider's service area. For those electric service providers who
are operating pursuant to Section 394, they shall make available to
the ratemaking authority the information required by this paragraph
for each eligible customer-generator that is their customer for each
service area of an electric corporation, local publicly owned
electric utility, or electrical cooperative, in which the customer
has net energy metering. The ratemaking authority shall develop a
process for making the information required by this paragraph
available to energy service providers, and for using that information
to determine when, pursuant to paragraph (3), a service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area.
(3) Notwithstanding paragraph (1), an electric service provider is
not obligated to provide net energy metering to additional
customer-generators in its service area when the combined total peak
demand of all customer-generators served by all the electric service
providers in that service area furnishing net energy metering to
eligible customer-generators equals one-tenth of 1 percent of the
aggregate customer peak demand of those electric service providers.
(4) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that does not offer net energy metering and is therefore not
an electric service provider, the customer is not an eligible
customer-generator and the electric corporation, as defined in
Section 218, that provides distribution service for the direct
transactions, is not obligated to provide net energy metering to the
customer.
(5) If a customer participates in direct transactions pursuant to
paragraph (1) of subdivision (b) of Section 365 with an electric
supplier that offers net energy metering and is therefore an electric
service provider, and the customer is an eligible
customer-generator, the electric corporation, as defined in Section
218, that provides distribution service for the direct transactions
may recover from the customer's electric service provider the
incremental costs of metering and billing service related to net
energy metering in an amount set by the commission.
(d) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the same customer would be assigned if such customer was not an
eligible customer-generator. The charges for all retail rate
components for eligible customer-generators shall be based
exclusively on the customer-generator's net kilowatthour consumption
over a 12-month period, without regard to the customer-generator's
choice of electric service provider that offers net energy metering
and is subject to this section pursuant to paragraph (1) of
subdivision (b), in accordance with subdivision (e). Any new or
additional demand charge, standby charge, customer charge, minimum
monthly charge, interconnection charge, or other charge that would
increase an eligible customer-generator's costs beyond those of other
customers in the rate class to which the eligible customer-generator
would otherwise be assigned are contrary to the intent of this
legislation, and shall not form a part of net energy metering
contracts or tariffs.
(e) The net energy metering calculation shall be made by measuring
the difference between the electricity supplied to the eligible
customer-generator and the electricity generated by the eligible
customer-generator and fed back to the electric grid over a 12-month
period. The following rules shall apply to the annualized net
metering calculation:
(1) The eligible customer-generator shall, at the end of each
12-month period following the date of final interconnection of the
eligible customer-generator's system with an electric service
provider, and at each anniversary date thereafter, be billed for
electricity used during that period. The electric service provider
shall determine if the eligible customer-generator was a net consumer
or a net producer of electricity during that period.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electric service provider exceeds
the electricity generated by the eligible customer-generator during
that same period, the eligible customer-generator is a net
electricity consumer and the electric service provider shall be owed
compensation for the eligible customer-generator's net kilowatthour
consumption over that same period. The compensation owed for the
eligible customer-generator's net 12-month kilowatthour consumption
shall be calculated as follows:
(A) For eligible customer-generators taking service under tariffs
employing "baseline" and "over baseline" rates, any net monthly
consumption of electricity shall be calculated according to the terms
of the contract or tariff to which the same customer would be
assigned to or be eligible for if the customer was not an eligible
customer-generator. If those same customer-generators are net
generators over a billing period, the net kilowatthours generated
shall be valued at the same price per kilowatthour as the electric
service provider would charge for the baseline quantity of
electricity during that billing period, and if the number of
kilowatthours generated exceeds the baseline quantity, the excess
shall be valued at the same price per kilowatthour as the electric
service provider would charge for electricity over the baseline
quantity during that billing period.
(B) For eligible customer-generators taking service under tariffs
employing "time of use" rates, any net monthly consumption of
electricity shall be calculated according to the terms of the
contract or tariff to which the same customer would be assigned to or
be eligible for if the customer was not an eligible
customer-generator. When those same customer-generators are net
generators during any discrete time of use period, the net
kilowatthours produced shall be valued at the same price per
kilowatthour as the electric service provider would charge for retail
kilowatthour sales during that same time of use period. If the
eligible customer-generator's time of use electrical meter is unable
to measure the flow of electricity in two directions, paragraph (3)
of subdivision (b) shall apply.
(C) For all customer-generators and for each monthly period, the
net balance of moneys owed to the electric service provider for net
consumption of electricity or credits owed to the customer-generator
for net generation of electricity shall be carried forward until the
end of each 12-month period.
(3) At the end of each 12-month period, where the electricity
generated by the eligible customer-generator during the 12-month
period exceeds the electricity supplied by the electric service
provider during that same period, the eligible customer-generator is
a net electricity producer and the electric service provider shall
retain any excess kilowatthours generated during the prior 12-month
period. The eligible customer-generator shall not be owed any
compensation for those excess kilowatthours unless the electric
service provider enters into a purchase agreement with the eligible
customer-generator for those excess kilowatthours.
(4) The electric service provider shall provide every eligible
customer-generator with net electricity consumption information with
each regular bill. That information shall include the current
monetary balance owed the electric service provider for net
electricity consumed since the last 12-month period ended.
Notwithstanding subdivision (e), an electric service provider shall
permit that customer to pay monthly for net energy consumed.
(5) If an eligible customer-generator terminates the customer
relationship with the electric service provider, the electric service
provider shall reconcile the eligible customer-generator's
consumption and production of electricity during any part of a
12-month period following the last reconciliation, according to the
requirements set forth in this subdivision, except that those
requirements shall apply only to the months since the most recent
12-month bill.
(6) If an electric service provider providing net metering to a
customer-generator ceases providing that electrical service to that
customer during any 12-month period, and the customer-generator
enters into a new net metering contract or tariff with a new electric
service provider, the 12-month period, with respect to that new
electric service provider, shall commence on the date on which the
new electric service provider first supplies electric service to the
customer-generator.
(f) A solar or wind turbine electrical generating system, or a
hybrid system of both, used by an eligible customer-generator shall
meet all applicable safety and performance standards established by
the National Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories such as
Underwriters Laboratories and, where applicable, rules of the Public
Utilities Commission regarding safety and reliability. A
customer-generator whose solar or wind turbine electrical generating
system, or a hybrid system of both, meets those standards and rules
shall not be required to install additional controls, perform or pay
for additional tests, or purchase additional liability insurance.
(g) This section shall become operative on January 1, 2003.
SEC. 3. Section 2827.7 of the Public Utilities Code is amended to
read:
2827.7. Generation eligible for net energy metering that is
installed on or before December 31, 2002, shall be entitled,
regardless of any change in customer or ownership of the energy
system, for the life of the installation, to the net energy metering
terms in effect on the date of installation.