Report Title:

Net Energy Metering

Description:

Increases allowed capacity of energy generating facilities that may be used by an eligible customer-generator engaged in net energy metering; increases the allowed total energy generating capacity produced by eligible customer-generators; requires net energy metering to be billed and compensated quarterly after the first year of a customer's operation.

THE SENATE

S.B. NO.

1682

TWENTY-SECOND LEGISLATURE, 2003

 

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. Section 269-101, Hawaii Revised Statutes, is amended by amending the definitions of "eligible customer-generator" and "net energy metering" to read as follows:

""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, or other energy generating facility[,] that does not utilize fossil fuels, or a hybrid system consisting of two or more of these facilities, with a capacity of not more than [ten] one hundred kilowatts, that is:

(1) Located on the customer's premises;

(2) Operated 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 the use of imported fossil fuel energy production for part or all of the customer's [own] and utilities' 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 monthly or quarterly billing 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[;], and this information shall be made available in a timely manner to the public utilities commission and the public;

(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."

SECTION 2. Section 269-102, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-102[]] 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 [.5] five per cent of the electric utility's system peak demand.

(b) Each net energy metering contract or tariff shall be identical, with respect to rate structure, 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 monthly or quarterly billing period. Any new or additional demand charge, standby charge, customer charge, minimum monthly or quarterly 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."

SECTION 3. Section 269-103, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-103[]] Generating capacity. On an annual basis, beginning in 2003, every electric utility shall make available to the public utilities commission and the public 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 section available to electric utilities, and for using that information to determine when, pursuant to section 269-104, an electric utility is not obligated to provide net energy metering to additional customer-generators in its service area."

SECTION 4. Section 269-104, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-104[]] Additional customer-generators. Notwithstanding section 269-102, an electric utility is not obligated to provide net energy metering to additional customer-generators in its service area when the combined total peak generating capacity of all eligible customer-generators served by all the electric utilities in that service area furnishing net energy metering to eligible customer-generators equals [.5] five per cent of the system peak demand of those electric utilities."

SECTION 5. Section 269-105, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-105[]] 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 monthly or quarterly billing period."

SECTION 6. Section 269-106, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-106[]] Billing periods. Billing of net metering customers shall be [only] on a monthly basis[.] until twelve consecutive months of data are generated from a customer, at which point the customer shall be billed on a quarterly basis."

SECTION 7. Section 269-107, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-107[]] Net electricity consumers. At the end of each monthly or quarterly billing 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 monthly or quarterly kilowatt-hour consumption shall be calculated at the retail rate of the rate class the customer is normally assigned to."

SECTION 8. Section 269-108, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-108[]] Net electricity producers. During the first twelve months of a net electricity producer's billing cycle, the following shall apply:

At the end of each monthly billing period, where the electricity generated by the eligible customer-generator during the month 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 monthly billing 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].

Beginning with the thirteenth month of a net electricity producer's billing cycle, the following shall apply:

At the end of each quarterly billing period, where the electricity generated by the eligible customer-generator during the quarter 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 quarterly billing period. The eligible customer-generator shall be owed compensation by the utility for excess kilowatt-hours generated at a standardized rate determined by a panel of consumer and utility advocates."

SECTION 9. Section 269-109, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-109[]] 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 or quarterly bill, which shall include the current monetary balance owed the electric utility for net electricity consumed or the current monetary balance owed to the eligible customer-generator for net electricity produced since the end of the last monthly or quarterly billing period."

SECTION 10. Section 269-110, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-110[]] 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 monthly or quarterly billing period following the last reconciliation, according to the requirements set forth in this part."

SECTION 11. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 12. This Act shall take effect upon its approval.

INTRODUCED BY:

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