Relates to the rates paid for net-metering; makes the rates paid by micro-combined heat and power or fuel cell customer-generators the same as other customer-generators.
TITLE OF BILL: An act to amend the public service law, in relation to the rates paid for net energy metering technology
PURPOSE: To include micro-combined heat and power and fuel cell customer-generators in total rate reimbursement from electric corporations.
SUMMARY OF PROVISIONS: Amends paragraph (b) of subdivision 4 of section 66-j of the public service law to eliminate the exclusion of micro-combined heat and power and fuel cell customer-generators from receiving the a credit based on same rate per kilowatt hour as customers without on-site generation, just as other net metered technologies currently receive.
EXISTING LAW: Currently, micro-combined heat and power and fuel cells are credited at the utility's avoided cost for electricity produced in excess of the customer's usage.
JUSTIFICATION: The reliability and environmental advantages of micro-combined heat (CHP) and power and fuel cell customer-generator technologies are proven and such technologies should be provided with equal benefits as other renewable technologies.
Fuel cell and micro-CHP electric generating technology have many advantages. Fuel cells and micro-CHP commonly provide power to host facilities during power outages, enhancing storm response, and allowing critical facilities to remain operational in such events. The fuel flexibility of these technologies unlocks a large portfolio of locally available fuels and the existing fuel infrastructure, which has the potential to increase the reliability of the power system and to keep more energy dollars in New York State. Fuel cells and micro-CHP commonly provide power to host facilities during power outages, enhancing storm response, and allowing critical facilities to remain operational in such events. Fuel cells and micro-CHP are exceptionally efficient, they can stretch available supplies of fuel, reduce energy costs and help reduce our dependence on foreign oil. The scalability and resiliency of fuel cells and micro-CHP makes them suitable for a wide range of heat and power needs in electronics, homes, offices, and factories. In addition, these technologies have a low impact on their surroundings, with near-silent operation and low emissions, making them suitable in locations where combustion systems may not be appropriate. Also, fuel cells can be used in conjunction with solar panels or wind farms to produce electricity when renewable energy is unavailable. The high capacity factors, fuel and efficiency, associated with these technologies make them equal or superior to renewable technologies in the displacement of conventional fossil generation, leading to lower air emissions, including carbon. For these reasons, such technologies should be treated equally to renewable technologies in determining the appropriate rates for such technologies.
FISCAL IMPLICATIONS: This bill would generate a de minimis total annual reduction in tax liabilities.
HISTORY: New bill.
EFFECTIVE DATE: This act shall take effect on the one hundred twentieth day after it shall become a law
STATE OF NEW YORK ________________________________________________________________________ 2383 2013-2014 Regular Sessions IN SENATE January 17, 2013 ___________Introduced by Sen. MAZIARZ -- 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 the rates paid for net energy metering technology THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (b) of subdivision 4 of section 66-j of the public service law, as amended by chapter 355 of the laws of 2009, is amended to read as follows: (b) In the event that the amount of electricity produced by a custom- er-generator during the billing period exceeds the amount of electricity used by the customer-generator, the corporation shall apply a credit to the next bill for service to the customer-generator for the net elec- tricity provided at the same rate per kilowatt hour applicable to service provided to other customers in the same service class which do not generate electricity onsite
[, except for micro-combined heat and power or fuel cell customer-generators, who will be credited at the corporation's avoided costs. The avoided cost credit provided to micro- combined heat and power or fuel cell customer-generators shall be treat- ed for ratemaking purposes as a purchase of electricity in the market that is includable in commodity costs]. S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07067-01-3