Report Title:

Net Energy Metering

 

Description:

Provides net energy metering for eligible customer-generators. Provides for monthly billing and an annual reconciliation period. (HD3)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1385

TWENTY-FIRST LEGISLATURE, 2001

H.D. 3

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO NET ENERGY METERING.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 269, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . Net energy metering

269-A Definitions. As used in this part:

"Eligible customer-generator" means a metered residential or commercial customer of an electric utility who owns and operates a solar, wind turbine, biomass, or hydroelectric energy generating facility, or a hybrid system consisting of two or more of these facilities, with a capacity of not more than ten kilowatts, that is:

(1) Located on the customer's premises;

(2) Operates in parallel with the utility's transmission and distribution facilities;

(3) In conformance with the utility's interconnection requirements; and

(4) Intended primarily to offset part or all of the customer's own electrical requirements.

"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 twelve-month period; provided that:

(1) Net energy metering shall be accomplished using a single meter capable of registering the flow of electricity in two directions;

(2) 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 utility, and the additional metering shall be used only to provide the information necessary to accurately bill or credit the customer-generator, or to collect solar, wind turbine, biomass, or hydroelectric energy generating system performance information for research purposes;

(3) If the existing electrical meter of an eligible customer-generator is not capable of measuring the flow of electricity in two directions, the electric utility shall be responsible for all expenses involved in purchasing and installing a meter that is able to measure electricity flow in two directions;

(4) If an additional meter or meters are installed, the net energy metering calculation shall yield a result identical to that of a single meter; and

(5) An eligible customer-generator who already owns an existing solar, wind turbine, biomass, or hydroelectric energy generating facility, or a hybrid system consisting of two or more of these facilities, is eligible to receive net energy metering service in accordance with this part.

269-B Standard contract or tariff; rate structure. (a) Every electric utility 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 produced by eligible customer-generators equals      per cent of the electric utility's aggregate customer peak demand.

(b) 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 the customer was not an eligible customer-generator. The charges for all retail rate components for eligible customer-generators shall be based exclusively on the eligible customer-generator's net kilowatt-hour consumption over a twelve-month period, without regard to the eligible customer-generator's choice of electric utility that offers net energy metering and is subject to sections 269-E to 269-K. 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 section, and shall not form a part of net energy metering contracts or tariffs.

269-C Generating capacity. On an annual basis, beginning in 2003, every electric utility shall make available to the public utilities commission information on the total rated generating capacity produced by eligible customer-generators that are customers of that utility in the utility's service area. The public utilities commission shall develop a process for making the information required by this subsection available to electric utilities, and for using that information to determine when, pursuant to section 269-D, an electric utility is not obligated to provide net energy metering to additional customer-generators in its service area.

269-D Additional customer-generators. Notwithstanding section 269-B, an electric utility 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 utilities in that service area furnishing net energy metering to eligible customer-generators equals      per cent of the aggregate customer peak demand of those electric utilities.

269-E Calculation. 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 twelve-month period. Sections 269-F to 269-K shall apply to the annualized net metering calculation.

269-F Billing and reconciliation periods. (a) Billing of net metering customers shall be only on a monthly basis.

(b) There shall be an annual reconciliation period at the end of each twelve-month period following the date of final interconnection of the eligible customer-generator's system with an electric utility, and at each anniversary date thereafter, in which the electric utility shall:

(1) Review the electricity consumed or generated by the eligible customer-generator during that period; and

(2) Determine if the eligible customer-generator was a net consumer of electricity pursuant to section 269-G, or a net producer of electricity pursuant to section 269-H, during that period.

269-G Net electricity consumers. At the end of each twelve-month period, where the electricity supplied during the period by the electric utility 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 utility shall be owed compensation for the eligible customer-generator's net kilowatt-hour consumption over that same period. The compensation owed for the eligible customer-generator's net twelve-month kilowatt-hour consumption shall be calculated as follows:

(1) 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 kilowatt-hours generated shall be valued at the same price per kilowatt-hour as the electric utility would charge for the baseline quantity of electricity during that billing period, and if the number of kilowatt-hours generated exceeds the baseline quantity, the excess shall be valued at the same price per kilowatt-hour as the electric utility would charge for electricity over the baseline quantity during that billing period;

(2) 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 eligible customer-generators are net generators during any discrete time of use period, the net kilowatt-hours produced shall be valued at the same price per kilowatt-hour as the electric utility would charge for retail kilowatt-hour 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, the provisions in the definition of "eligible customer-generator" in section 269-1 shall apply; and

(3) For all eligible customer-generators, the net balance of moneys owed to the electric utility for net consumption of electricity shall be submitted to the eligible customer-generator for payment for net electricity consumed on a monthly basis.

Any credits owed to the eligible customer-generator for net production of electricity in a specific month shall be carried forward to the next month's bill until the end of each twelve-month period.

269-H Net electricity producers. At the end of each twelve-month period, where the electricity generated by the eligible customer-generator during the twelve-month period exceeds the electricity supplied by the electric utility during that same period, the eligible customer-generator is a net electricity producer and the electric utility shall retain any excess kilowatt-hours generated during the prior twelve-month period. The eligible customer-generator shall not be owed any compensation for those excess kilowatt-hours unless the electric utility enters into a purchase agreement with the eligible customer-generator for those excess kilowatt-hours. The electric utility shall have the right to resell any excess net metered electricity to other customers as green power and charge an appropriate premium for the service. The public utilities commission shall approve any green power tariffs.

269-I Net electricity consumption or production information. The electric utility shall provide every eligible customer-generator with net electricity consumption or production information with each regular monthly bill, which shall include the current monetary balance owed the electric utility for net electricity consumed or credited by the utility for net electricity produced since the end of the last monthly billing period.

269-J Termination by eligible customer-generators. If an eligible customer-generator terminates the customer relationship with the electric utility, the electric utility shall reconcile the eligible customer-generator's consumption and production of electricity during any part of a twelve-month period following the last reconciliation, according to the requirements set forth in this part.

269-K Termination by electric utilities. If an electric utility providing net metering to an eligible customer-generator ceases providing that electrical service to that customer during any twelve-month period, and the eligible customer-generator enters into a new net metering contract or tariff with a new electric utility, the twelve-month reconciliation period, with respect to that new electric utility, shall commence on the date on which the new electric utility first supplies electric service to the eligible customer-generator.

269-L Safety and performance standards. A solar, wind turbine, biomass, or hydroelectric energy generating system, or a hybrid system consisting of two or more of these facilities, 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 the Underwriters Laboratories and, where applicable, rules of the public utilities commission regarding safety and reliability. An eligible customer-generator whose solar, wind turbine, biomass, or hydroelectric energy generating system, or whose hybrid system consisting of two or more of these facilities, meets those standards and rules shall not be required to install additional controls, perform or pay for additional tests, or purchase additional liability insurance."

SECTION 2. Section 269-1, Hawaii Revised Statutes, is amended as follows:

1. By deleting the definition of "eligible customer-generator" as follows:

[""Eligible customer-generator" means a metered residential customer of an electric utility who owns and operates a solar, wind, or micro-hydro electric energy generating facility with a capacity of not more than ten kilowatts, that is located on the customer's premises, operates in parallel with the utility's transmission and distribution facilities, is in conformance with the utility's interconnection requirements, and is intended primarily to offset part or all of the customer's own electrical requirements."]

2. By deleting the definitions of "incremental cost of alternative electric energy", and "net energy metering" as follows:

[""Incremental cost of alternative electric energy" means, with respect to electric energy purchased from an eligible customer-generator, the cost to the utility of the electric energy that, but for the purchase from the eligible customer-generator, the utility would generate or purchase from another non-firm source.

"Net energy metering" means using a non-time-differentiated meter to measure the electricity supplied by a utility and another non-time-differentiated meter to measure the electricity generated by an eligible customer-generator and fed back to the utility over an entire billing period."]

SECTION 3. Section 269-16.21, Hawaii Revised Statutes, is repealed.

["[269-16.21] Net energy metering. (a) Every electric utility in the State that offers residential electrical service shall develop a standard contract or tariff providing for net energy metering, and shall make this contract available to eligible customer-generators on a first-come, first-served basis until such time as the total rated generated capacity owned and operated by eligible customer-generators in each utility's service areas equals 0.1 per cent of the utility's peak demand.

(b) Each eligible customer-generator meeting the criteria of subsection (a) shall be entitled to net energy metering, calculated as follows:

    1. The customer-generator shall be billed for the energy supplied by the utility at the utility-approved retail rate, less an amount equal to the amount of energy generated by the customer over the applicable billing period, multiplied by a rate set by the commission based on the incremental cost to the utility of alternative electric energy.
    2. Where the amount in paragraph (1) is positive, the customer-generator shall be billed by the utility. Where the amount is negative, the customer-generator shall be credited by the utility.

(c) A utility, with the consent of the eligible customer-generator, may annualize the period during which the net energy measurement is calculated.

(d) In the event of disputes between a utility and an eligible customer-generator, either party may request a determination of the disputed issue by the commission.

(e) The electric utility shall have the right to deny interconnection with an eligible customer-generator if the interconnection will directly result in degradation of service.

(f) The electric utility shall have the right to prevent electric energy flow into the system by the customer-generator if the customer-generator's facilities are not in compliance with the electric utility's interconnection requirements. The interconnection will be reinstated upon remediation by the customer-generator within a reasonable period. Repeated violations within a one-year period may be grounds for termination of the interconnection agreement."]

SECTION 4. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.