S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1335
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   January 12, 2015
                                      ___________
       Introduced  by  Sen.  LITTLE -- 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, in relation to neighborhood net
         energy metering
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  The public service law is amended by adding a new section
    2  66-o to read as follows:
    3    S 66-O. NEIGHBORHOOD NET ENERGY METERING. 1. DEFINITIONS. AS  USED  IN
    4  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
    5    (A)  "AGRICULTURAL  NET  METERING  FACILITY"  MEANS A RENEWABLE ENERGY
    6  GENERATING FACILITY THAT IS OPERATED AS PART OF  AN  AGRICULTURAL  BUSI-
    7  NESS, GENERATES ELECTRICITY, DOES NOT HAVE A GENERATION CAPACITY OF MORE
    8  THAN  TWO  MEGAWATTS,  IS  LOCATED AND USED ON LAND USED IN AGRICULTURAL
    9  PRODUCTION AS DEFINED IN SUBDIVISION FOUR OF SECTION THREE  HUNDRED  ONE
   10  OF  THE  AGRICULTURE  AND  MARKETS LAW, AND IS USED TO PROVIDE ENERGY TO
   11  METERED ACCOUNTS OF THE BUSINESS.
   12    (B) "BILLING PERIOD" MEANS THE PERIOD OF TIME SET FORTH IN AN ELECTRIC
   13  CORPORATION'S TERMS AND CONDITIONS FOR WHICH SUCH  CORPORATION  BILLS  A
   14  CUSTOMER  FOR  ITS  ELECTRICITY  CONSUMED  OR  ESTIMATED  TO  HAVE  BEEN
   15  CONSUMED.
   16    (C) "CLASS I NET METERING FACILITY" MEANS A PLANT OR EQUIPMENT THAT IS
   17  USED TO PRODUCE, MANUFACTURE OR OTHERWISE GENERATE ELECTRICITY, THAT  IS
   18  NOT  A  TRANSMISSION  FACILITY  AND  THAT HAS A DESIGN CAPACITY OF SIXTY
   19  KILOWATTS OR LESS.
   20    (D) "CLASS II NET METERING FACILITY" MEANS AN AGRICULTURAL NET  METER-
   21  ING  FACILITY, SOLAR NET METERING FACILITY OR WIND NET METERING FACILITY
   22  WITH A GENERATING CAPACITY OF MORE THAN SIXTY KILOWATTS BUT LESS THAN OR
   23  EQUAL TO ONE MEGAWATT.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06278-02-5
       S. 1335                             2
    1    (E) "CLASS III NET METERING FACILITY" MEANS AN AGRICULTURAL NET METER-
    2  ING FACILITY, SOLAR NET METERING FACILITY OR WIND NET METERING  FACILITY
    3  WITH  A  GENERATING  CAPACITY OF MORE THAN ONE MEGAWATT BUT LESS THAN OR
    4  EQUAL TO TWO MEGAWATTS.
    5    (F) "CUSTOMER" MEANS ANY PERSON, PARTNERSHIP, CORPORATION OR ANY OTHER
    6  ENTITY, WHETHER PUBLIC OR PRIVATE, WHICH OBTAINS DISTRIBUTION SERVICE AT
    7  A  CUSTOMER DELIVERY POINT AND WHICH IS A CUSTOMER OF RECORD OF AN ELEC-
    8  TRIC CORPORATION FOR ITS OWN ELECTRICITY CONSUMPTION.
    9    (G) "HOST CUSTOMER" MEANS A CUSTOMER WITH A CLASS I,  II  OR  III  NET
   10  METERING  FACILITY THAT GENERATES ELECTRICITY ON SUCH CUSTOMER'S SIDE OF
   11  THE METER.
   12    (H) "INDEPENDENT SYSTEM  OPERATOR"  MEANS  THE  NEW  YORK  INDEPENDENT
   13  SYSTEM OPERATOR.
   14    (I) "MUNICIPALITY" MEANS A TOWN OR A CITY.
   15    (J) "NEIGHBORHOOD" MEANS A GEOGRAPHIC AREA WITHIN A MUNICIPALITY THAT:
   16    (I)  IS  RECOGNIZED  BY  THE  RESIDENTS  THEREOF AS INCLUDING A UNIQUE
   17  COMMUNITY OF INTERESTS;
   18    (II) FALLS WITHIN THE SERVICE TERRITORY OF A  SINGLE  ELECTRIC  CORPO-
   19  RATION AND WITHIN A SINGLE INDEPENDENT SYSTEM OPERATOR LOAD ZONE; AND
   20    (III)  MAY  ENCOMPASS  RESIDENTIAL, COMMERCIAL AND UNDEVELOPED PROPER-
   21  TIES.
   22    (K) "NEIGHBORHOOD NET METERING FACILITY" MEANS A CLASS I,  II  OR  III
   23  NET METERING FACILITY THAT:
   24    (I)  IS  OWNED BY OR SERVES THE ENERGY NEEDS OF A GROUP OF TEN OR MORE
   25  RESIDENTIAL CUSTOMERS THAT RESIDE  IN  A  SINGLE  NEIGHBORHOOD  AND  ARE
   26  SERVED BY A SINGLE ELECTRIC CORPORATION;
   27    (II)  MAY ALSO BE OWNED BY OR SERVES THE ENERGY NEEDS OF OTHER CUSTOM-
   28  ERS WHO RESIDE IN THE SAME NEIGHBORHOOD AND ARE SERVED BY THE SAME ELEC-
   29  TRIC CORPORATION AS THE RESIDENTIAL CUSTOMERS THAT OWN OR ARE SERVED  BY
   30  SUCH FACILITY; AND
   31    (III)  IS  LOCATED  WITHIN THE SAME NEIGHBORHOOD AS THE CUSTOMERS THAT
   32  OWN OR ARE SERVED BY THE FACILITY.
   33    (1) "NET METERING" MEANS  THE  PROCESS  OF  MEASURING  THE  DIFFERENCE
   34  BETWEEN ELECTRICITY DELIVERED BY AN ELECTRIC CORPORATION AND ELECTRICITY
   35  GENERATED  BY  A  CLASS  I,  CLASS  II OR CLASS III, OR NEIGHBORHOOD NET
   36  METERING FACILITY AND FED BACK TO SUCH ELECTRIC CORPORATION.
   37    (M) "NET METERING FACILITY OF A  MUNICIPALITY  OR  OTHER  GOVERNMENTAL
   38  ENTITY" MEANS A CLASS II OR III NET METERING FACILITY:
   39    (I)  THAT IS OWNED OR OPERATED BY A MUNICIPALITY OR OTHER GOVERNMENTAL
   40  ENTITY; OR
   41    (II) OF WHICH A MUNICIPALITY OR OTHER GOVERNMENTAL ENTITY IS THE  HOST
   42  CUSTOMER AND IS ASSIGNED THE ENTIRETY OF ITS OUTPUT.
   43    (N)  "RENEWABLE  ENERGY GENERATING FACILITY" MEANS AN AGRICULTURAL NET
   44  METERING FACILITY, SOLAR NET METERING  FACILITY  OR  WIND  NET  METERING
   45  FACILITY.
   46    (O)  "SOLAR NET METERING FACILITY" MEANS A FACILITY FOR THE PRODUCTION
   47  OF ELECTRICAL ENERGY THAT USES SUNLIGHT TO GENERATE ELECTRICITY, AND  IS
   48  INTERCONNECTED TO AN ELECTRIC CORPORATION.
   49    (P)  "WIND  NET METERING FACILITY" MEANS A FACILITY FOR THE PRODUCTION
   50  OF ELECTRICAL ENERGY THAT USES WIND  TO  GENERATE  ELECTRICITY,  AND  IS
   51  INTERCONNECTED TO AN ELECTRIC CORPORATION.
   52    2.  NET METERING SERVICES. (A) EACH ELECTRIC CORPORATION SHALL PROVIDE
   53  SERVICES TO CUSTOMERS AND HOST CUSTOMERS NECESSARY TO PERMIT NET  METER-
   54  ING,  INCLUDING  THOSE  RELATED TO INTERCONNECTION, METERING, AND CALCU-
   55  LATION AND BILLING OF NET METERING CREDITS.
       S. 1335                             3
    1    (B) NO ELECTRIC CORPORATION  SHALL  IMPOSE  SPECIAL  FEES  ON  A  HOST
    2  CUSTOMER  OPERATING  A  CLASS  I  NET  METERING FACILITY, SUCH AS BACKUP
    3  CHARGES AND DEMAND CHARGES, OR ADDITIONAL CONTROLS OR  LIABILITY  INSUR-
    4  ANCE, PROVIDED THAT THE FACILITY MEETS THE OTHER REQUIREMENTS FOR INTER-
    5  CONNECTION, AND ALL RELEVANT SAFETY AND POWER QUALITY STANDARDS.
    6    (C) EACH ELECTRIC CORPORATION SHALL CALCULATE A NET METERING CREDIT IN
    7  ACCORDANCE  WITH  SUBDIVISION  THREE  OF THIS SECTION, AND BILL ANY HOST
    8  CUSTOMER FOR KILOWATT-HOUR USAGE DURING ANY BILLING PERIOD IN WHICH  THE
    9  KILOWATT-HOURS  GENERATED  BY  SUCH  CUSTOMER'S  CLASS  I, II OR III NET
   10  METERING FACILITY EXCEED THE CUSTOMER'S KILOWATT-USAGE DURING SUCH PERI-
   11  OD.
   12    (D) EACH ELECTRIC CORPORATION SHALL BILL A HOST  CUSTOMER  FOR  EXCESS
   13  CONSUMPTION  DURING  ANY  BILLING  PERIOD  IN  WHICH  THE KILOWATT-HOURS
   14  CONSUMED BY SUCH CUSTOMER EXCEED THE  KILOWATT-HOURS  GENERATED  BY  ITS
   15  CLASS I, II OR III NET METERING FACILITY.
   16    3.  CALCULATION  OF  NET  METERING CREDITS. (A) FOR EACH CLASS I WIND,
   17  SOLAR OR AGRICULTURAL NET  METERING  FACILITY,  CLASS  II  NET  METERING
   18  FACILITY,  AND  NET METERING FACILITY OF A MUNICIPALITY OR OTHER GOVERN-
   19  MENTAL ENTITY, AN ELECTRIC CORPORATION SHALL CALCULATE, FOR EACH BILLING
   20  PERIOD, A NET METERING CREDIT EQUAL TO THE PRODUCT OF THE:
   21    (I) EXCESS KILOWATT-HOURS BY TIME OF USE, IF APPLICABLE; AND
   22    (II) SUM OF THE ELECTRIC CORPORATION CHARGES APPLICABLE  TO  THE  RATE
   23  CLASS UNDER WHICH THE HOST CUSTOMER RECEIVES ELECTRICITY.
   24    (B)  FOR  EACH  CLASS I NET METERING FACILITY NOT REFERRED TO IN PARA-
   25  GRAPH (A) OF THIS SUBDIVISION, AN ELECTRIC CORPORATION SHALL  CALCULATE,
   26  FOR  EACH  BILLING PERIOD, A NET METERING CREDIT EQUAL TO THE PRODUCT OF
   27  THE:
   28    (I) EXCESS KILOWATT-HOURS BY TIME OF USE, IF APPLICABLE; AND
   29    (II) THE AVERAGE MONTHLY CLEARING  PRICE  AT  THE  INDEPENDENT  SYSTEM
   30  OPERATOR.
   31    (C)  FOR  EACH  NEIGHBORHOOD OR CLASS III NET METERING FACILITY, OTHER
   32  THAN A NET METERING FACILITY OF A  MUNICIPALITY  OR  OTHER  GOVERNMENTAL
   33  ENTITY,  AN ELECTRIC CORPORATION SHALL CALCULATE, FOR EACH BILLING PERI-
   34  OD, A NET METERING CREDIT EQUAL TO THE PRODUCT OF THE:
   35    (I) EXCESS KILOWATT-HOURS BY TIME OF USE, IF APPLICABLE; AND
   36    (II) SUM OF ELECTRIC CORPORATION CHARGES APPLICABLE TO THE RATE  CLASS
   37  UNDER WHICH THE HOST CUSTOMER RECEIVES ELECTRICITY.
   38    (D) FOR ANY BILLING PERIOD IN WHICH AN ELECTRIC CORPORATION CALCULATES
   39  A  NET METERING CREDIT FOR A HOST CUSTOMER, SUCH CORPORATION SHALL APPLY
   40  SUCH CREDIT TO THE HOST CUSTOMER'S ACCOUNT FOR  THE  SUBSEQUENT  BILLING
   41  PERIOD,  UNLESS  SUCH CUSTOMER DESIGNATES OTHERWISE PURSUANT TO SUBDIVI-
   42  SION FOUR OF THIS SECTION. AN ELECTRIC CORPORATION SHALL CARRY  FORWARD,
   43  FROM BILLING PERIOD TO BILLING PERIOD, ANY REMAINING NET METERING CREDIT
   44  BALANCE.
   45    4. ALLOCATION OF NET METERING CREDITS. (A) FOR EACH CLASS I, II OR III
   46  NET  METERING  FACILITY,  EACH  ELECTRIC  CORPORATION SHALL ALLOCATE NET
   47  METERING CREDITS, AS DESIGNATED IN WRITING  BY  THE  HOST  CUSTOMER,  TO
   48  OTHER  CUSTOMERS WHO ARE IN SUCH CORPORATION'S SERVICE TERRITORY AND ARE
   49  LOCATED IN THE SAME INDEPENDENT SYSTEM OPERATOR LOAD  ZONE.  THE  MANNER
   50  AND  FORM  OF  CREDIT  DESIGNATION SHALL BE AS SPECIFIED IN THE ELECTRIC
   51  CORPORATION'S REQUIREMENTS. NOTWITHSTANDING THE FOREGOING, IF  THE  HOST
   52  CUSTOMER  IS  A MUNICIPALITY OR OTHER GOVERNMENTAL ENTITY, IT MAY DIRECT
   53  ITS ELECTRIC CORPORATION TO ALLOCATE NET METERING CREDITS ONLY TO  OTHER
   54  CUSTOMERS THAT ARE MUNICIPALITIES OR OTHER GOVERNMENTAL ENTITIES.
   55    (B)  FOR A NEIGHBORHOOD NET METERING FACILITY, AN ELECTRIC CORPORATION
   56  SHALL ALLOCATE NET METERING CREDITS TO RESIDENTIAL  OR  OTHER  CUSTOMERS
       S. 1335                             4
    1  WHO RESIDE IN THE SAME NEIGHBORHOOD IN WHICH THE NEIGHBORHOOD NET METER-
    2  ING FACILITY IS LOCATED AND HAVE AN OWNERSHIP INTEREST IN, OR ARE SERVED
    3  BY THE NEIGHBORHOOD NET METERING FACILITY.
    4    (C) EACH ELECTRIC CORPORATION SHALL CARRY FORWARD, FROM BILLING PERIOD
    5  TO BILLING PERIOD, ANY REMAINING NET METERING CREDIT BALANCE.
    6    (D) FOR A CLASS III NET METERING FACILITY, AN ELECTRIC CORPORATION MAY
    7  ELECT  TO  PAY TO A HOST CUSTOMER NET METERING CREDITS RATHER THAN ALLO-
    8  CATING SUCH CREDITS PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
    9    5. ELIGIBILITY FOR NET METERING. NO ELECTRIC CORPORATION SHALL PROVIDE
   10  NET METERING SERVICES TO ANY HOST CUSTOMER  OR  TO  ANY  OTHER  ELECTRIC
   11  CORPORATION THAT IS SUBJECT TO THE PROVISIONS OF THIS CHAPTER.
   12    6. NET METERING CAPACITY. (A) EACH ELECTRIC CORPORATION SHALL MAKE NET
   13  METERING  SERVICES  AVAILABLE TO HOST CUSTOMERS, SUCH THAT THE AGGREGATE
   14  CAPACITY OF:
   15    (I) NET METERING FACILITIES THAT ARE NOT NET METERING FACILITIES OF  A
   16  MUNICIPALITY OR OTHER GOVERNMENTAL ENTITY DOES NOT EXCEED ONE PERCENT OF
   17  SUCH CORPORATION'S HIGHEST HISTORICAL PEAK LOAD; AND
   18    (II)  NET  METERING FACILITIES OF A MUNICIPALITY OR OTHER GOVERNMENTAL
   19  ENTITY DOES NOT EXCEED TWO PERCENT OF SUCH CORPORATION'S HIGHEST HISTOR-
   20  ICAL PEAK LOAD.
   21    (B) THE MAXIMUM AMOUNT OF GENERATING CAPACITY ELIGIBLE FOR NET  METER-
   22  ING  BY  A  MUNICIPALITY OR OTHER GOVERNMENTAL ENTITY SHALL BE TEN MEGA-
   23  WATTS, AS DETERMINED BY THE SUM OF THE NAMEPLATE RATINGS OF CLASS II AND
   24  III NET METERING FACILITIES FOR WHICH THE MUNICIPALITY OR OTHER  GOVERN-
   25  MENTAL ENTITY IS THE HOST CUSTOMER.
   26    (C)  EACH  ELECTRIC  CORPORATION SHALL IDENTIFY ON AN ANNUAL BASIS ITS
   27  HIGHEST HISTORICAL PEAK LOAD AND POST THAT DATA ON  ITS  WEBSITE  ON  OR
   28  BEFORE THE FIRST OF FEBRUARY OF THE FOLLOWING YEAR.
   29    (D)  FOR THE PURPOSE OF CALCULATING THE AGGREGATE CAPACITY OF CLASS I,
   30  II AND III NET METERING FACILITIES, THE CAPACITY OF A:
   31    (I) SOLAR NET METERING FACILITY SHALL BE EIGHTY PERCENT OF THE FACILI-
   32  TY'S DIRECT CURRENT RATING AT STANDARD TEST CONDITIONS; AND
   33    (II) WIND NET METERING FACILITY, AND ALL OTHER NON-SOLAR NET  METERING
   34  FACILITIES, SHALL BE THE NAMEPLATE RATING.
   35    7.  NET  METERING REPORTS. (A) EACH ELECTRIC CORPORATION SHALL COMPILE
   36  AND MAINTAIN RECORDS OF THE FOLLOWING:
   37    (I) THE SIZE, GENERATION TYPE, NET METERING CLASS, FUEL TYPE  AND  THE
   38  MUNICIPALITY WITHIN WHICH EACH NET METERING FACILITY RECEIVES NET METER-
   39  ING SERVICES;
   40    (II)  THE SIZE, GENERATION TYPE, FUEL TYPE AND THE MUNICIPALITY WITHIN
   41  WHICH EACH NET METERING FACILITY HAS REQUESTED INTERCONNECTION WITH SUCH
   42  ELECTRIC CORPORATION; AND
   43    (III) THE AGGREGATE CAPACITY OF  NET  METERING  FACILITIES  THAT  HAVE
   44  INTERCONNECTED, AND THAT HAVE REQUESTED INTERCONNECTION TO SUCH ELECTRIC
   45  CORPORATION.
   46    (B)  EACH  ELECTRIC  CORPORATION  SHALL  REPORT  TO THE COMMISSION THE
   47  INFORMATION REQUIRED TO BE COMPILED PURSUANT TO PARAGRAPH  (A)  OF  THIS
   48  SUBDIVISION, AT SUCH TIME AND IN SUCH FORM AS SHALL BE DESIGNATED IN THE
   49  RULES OF THE COMMISSION.
   50    (C)  EACH  ELECTRIC  CORPORATION  SHALL POST, ON A PUBLICLY ACCESSIBLE
   51  INTERNET WEBSITE, DATA TRACKING THE AGGREGATE CAPACITY OF  ELIGIBLE  NET
   52  METERING  FACILITIES  THAT  HAVE  CONNECTED AND HAVE REQUESTED INTERCON-
   53  NECTION RELATIVE TO THE NET METERING CAPACITY  ESTABLISHED  PURSUANT  TO
   54  SUBDIVISION SIX OF THIS SECTION.
   55    8.  RULES.  THE  COMMISSION SHALL PROMULGATE ANY RULES AND REGULATIONS
   56  NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
       S. 1335                             5
    1    S 2. This act shall take effect on the first of January next  succeed-
    2  ing  the  date  on  which it shall have become a law; provided, however,
    3  that effective immediately any rules and regulations necessary to imple-
    4  ment the provisions of this act on its effective date are authorized and
    5  directed to be completed on or before such date.