S T A T E O F N E W Y O R K
________________________________________________________________________
5841
2015-2016 Regular Sessions
I N S E N A T E
June 5, 2015
___________
Introduced by Sen. GRIFFO -- 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 a community solar
pilot program
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. NEW YORK STATE COMMUNITY SOLAR PILOT PROGRAM. 1. THE COMMIS-
4 SION SHALL ESTABLISH THE NEW YORK STATE COMMUNITY SOLAR PILOT PROGRAM TO
5 AUTHORIZE THE DEVELOPMENT OF UP TO FIFTY MEGAWATTS OF COMMUNITY SOLAR
6 CAPACITY STATEWIDE, STRIVING FOR A REGIONAL BALANCE, IN ORDER TO STIMU-
7 LATE THE GROWTH OF COMMUNITY SOLAR, USING A SUBSCRIPTION-BASED MODEL
8 WHICH OFFERS ENERGY FOR A FIXED PERIOD OF YEARS, WITH ELECTRIC CORPO-
9 RATION OWNERSHIP AND MANAGEMENT. ANY SUBSCRIPTION PARTICIPATION BY ELEC-
10 TRIC CORPORATIONS SHALL BE ON A DEFAULT BASIS ONLY IN THE EVENT OF
11 UNSOLD SUBSCRIPTIONS.
12 2. THE COMMISSION SHALL OVERSEE AND APPROVE THE IMPLEMENTATION OF
13 COMMUNITY SOLAR PILOT PROGRAMS BY ELECTRIC CORPORATIONS WHICH SHALL
14 INCLUDE THE FOLLOWING ELEMENTS:
15 (A) ELECTRIC CORPORATIONS SHALL OWN OR HAVE A LONG-TERM LEASE ON THE
16 REAL PROPERTY WHERE A SOLAR ARRAY WILL BE CONSTRUCTED AND SUCH LOCATION
17 SHALL BE STRATEGICALLY LOCATED SO AS TO ALLOW FOR AN OPTIMIZED AND MORE
18 SECURE AND FLEXIBLE ELECTRIC POWER SYSTEM.
19 (B) THE ELECTRIC CORPORATION SHALL OWN THE SOLAR PANELS AND OTHER
20 INFRASTRUCTURE REQUIRED TO INTEGRATE THE ELECTRICITY PRODUCED EFFEC-
21 TIVELY INTO THE GRID CONNECTING TO THE ELECTRIC SYSTEM WHICH SHALL BE
22 INTERCONNECTED AND OPERATED IN PARALLEL WITH THE ELECTRIC CORPORATION'S
23 DISTRIBUTION FACILITIES.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11429-01-5
S. 5841 2
1 (C) THE ELECTRIC CORPORATIONS SHALL ISSUE A REQUEST FOR PROPOSAL FOR
2 THE CONSTRUCTION FOR THE SOLAR ARRAY.
3 (D) CUSTOMERS SHALL BE PROVIDED THE OPPORTUNITY TO PARTICIPATE IN THE
4 COMMUNITY SOLAR PILOT PROGRAM ON A FIRST COME, FIRST SERVE BASIS WHILE A
5 PERCENTAGE OF SUBSCRIPTIONS SHALL BE RETAINED AS DETERMINED BY THE
6 COMMISSION FOR LOW AND MODERATE INCOME PARTICIPATION.
7 (E) TERMS OF PARTICIPATION FOR CUSTOMERS SHALL BE PROPOSED BY THE
8 ELECTRIC CORPORATION FOR REVIEW BY THE COMMISSION:
9 (I) THE COMMISSION SHALL ALLOW UTILITIES TO PROPOSE TERMS WHEREBY
10 PARTICIPATING CUSTOMERS SHALL RECEIVE A BLOCK OF ENERGY IN INCREMENTS
11 APPROVED BY THE COMMISSION BASED ON THE AVERAGE MONTHLY USAGE OF THE
12 CUSTOMER WITH A FIXED PRICE PER KILOWATT HOUR FOR EACH BLOCK OF ENERGY
13 WITH A RATE TO REMAIN CONSTANT FOR A FIXED PERIOD OF YEARS AS APPROVED
14 BY THE COMMISSION; AND
15 (II) THE COMMISSIONER SHALL CONSIDER ALTERNATE OR ADDITIONAL TERMS OF
16 PARTICIPATION AS PROPOSED BY THE ELECTRIC CORPORATION.
17 (F) ANY CUSTOMER PARTICIPATING IN THE COMMUNITY SOLAR PILOT PROGRAM
18 SHALL BE EXEMPT FROM THE SYSTEMS BENEFITS CHARGES AND THE RENEWABLE
19 PORTFOLIO STANDARD SURCHARGES BASED ON THEIR SUBSCRIPTION.
20 (G) THE ELECTRIC CORPORATION MAY PARTICIPATE IN FUNDING OPPORTUNITIES
21 PROVIDED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY
22 OF THE NEW YORK POWER AUTHORITY.
23 3. THE ECONOMIC EVALUATION OF THE PROPOSED COMMUNITY SOLAR PILOT
24 PROGRAM BY THE COMMISSION SHALL INCLUDE A REVIEW OF THE FOLLOWING:
25 (A) THE ELECTRIC CORPORATION, IN DETERMINING THE FIXED PRICE PER KILO-
26 WATT HOUR FOR COMMUNITY SOLAR OWNERSHIP, SHALL INCLUDE THE ANNUAL COST
27 OF SERVICE ON THE ASSET, LESS THE ESTIMATED AVERAGE ANNUAL CAPACITY AND
28 ENERGY REVENUE. FOR PURPOSES OF THIS PARAGRAPH, FIXED COSTS IN DETERMIN-
29 ING THE FIXED PRICE SHALL INCLUDE: PROJECT INSTALLATION, PROJECT MATERI-
30 AL, LABOR, TAXES, INSURANCE, OPERATION, MAINTENANCE, INTERCONNECTION
31 COSTS, THE ELECTRIC CORPORATION'S FINANCING COSTS FOR THE PROJECT
32 INCLUDING COST OF DEBT, DEPRECIATION AND RETURN ON EQUITY, ENVIRONMENTAL
33 AND PERMITTING COSTS, SITE SECURITY, DECOMMISSIONING COSTS AND INFORMA-
34 TION TECHNOLOGY PROGRAMMING COSTS.
35 4. THE PARTICIPATING ELECTRIC CORPORATION SHALL:
36 (A) DEMONSTRATE TO THE COMMISSION THAT REASONABLE EFFORTS SHALL BE
37 MADE TO INFORM CUSTOMERS OF THE OPPORTUNITY TO PARTICIPATE IN THE COMMU-
38 NITY SOLAR PILOT PROGRAM;
39 (B) PROVIDE A COPY OF ANY CUSTOMER AGREEMENTS TO BE EXECUTED AS PART
40 OF THE PROGRAM; AND
41 (C) PROVIDE AN EXAMINATION OF THE COSTS, BENEFITS, AND RISKS OF ANY
42 PROPOSAL SUBMITTED BY AN ELECTRIC CORPORATION INCLUDING THE RATE IMPLI-
43 CATIONS.
44 5. THE COMMISSION SHALL PROVIDE AN ANNUAL REPORT ON OR BEFORE THE
45 FIRST DAY OF JANUARY TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
46 SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE SENATE
47 AND THE MINORITY LEADER OF THE ASSEMBLY, ON THE COMMUNITY SOLAR PILOT
48 PROGRAM.
49 S 2. This act shall take effect immediately; provided however, that
50 not later than one hundred eighty days after this act shall have become
51 a law, the public service commission shall have in place a competitive
52 process which shall be open to electric corporations.