Relates to net metering and designating all or a portion of net metering credits generated by equipment.
Ayes (63): Adams, Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
TITLE OF BILL: An act to amend the public service law, in relation to net metering
PURPOSE: The purpose of this bill is to facilitate the development of large scale photovoltaic installations through net metering in cities of a million or more.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends subparagraph (iii) of paragraph (a) of subdivision 1 of section 66-j of the Public Service Law.
Section 2 of the bill amends paragraph (d) of subdivision 1 of section 66-j of the Public Service Law.
Section 4 of the bill amends paragraph (e) of subdivision 3 of section 66-j of the Public Service Law.
JUSTIFICATION: In 1997, New York State began to allow customers to utilize net metering to promote the installation of renewable energy while reducing their utility bills. Net metering is a straightforward method of encouraging customer investment in renewable energy. Net metering allows the owner of an on-site renewable energy system to receive a credit on his or her utility bill for any unused power supplied to the electric grid by the system. "Net", in this context, is used in the sense of meaning "what remains after deductions," in this case, the deduction of any energy outflows from metered energy inflows. Under net metering, a system owner receives retail credit for at least a portion of the electricity they generate. The credit then offsets the power received from the grid when the customer consumes more energy than the system is generating. In addition to acting as a hedge against rising energy costs and reducing overall stress on the electric grid, on-site renewable energy systems provide numerous environmental, public health, and economic development benefits to local communities.
This bill proposes a dramatic increase of allowable kilowatts for a net metered project, the largest increase to date. By increasing the cap for cities of one million or more, we would be expanding the universe of people who can easily access net metering and thereby expanding renewable energy generation, reducing emissions and decreasing consumer's utility bills. The use of a third-party arrangement as proposed here would allow the transfer of net metering credits to a customer that owns or leases the property where the solar cells are to be located, and that otherwise has electricity demand in the applicable load zone
within the service territory. Such an arrangement would remain consistent with the overall goal of the net metering statute, while introducing a much-needed degree of flexibility to address the market realities necessary to facilitate the siting of larger-scale projects in an urban environment. If enacted, the proposed amendment is likely to markedly increase the amount of renewable power that can be generated in cities of one million or more, thus reducing the need for inefficient peak load generation from fossil fuel sources, avoiding or deferring the need for costly utility infrastructure investments, and enhancing air quality.
LEGISLATIVE HISTORY: This is a new bill.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 5150--A 2013-2014 Regular Sessions IN SENATE May 10, 2013 ___________Introduced by Sens. MAZIARZ, LANZA, PARKER, SAMPSON, SAVINO -- (at request of the NYC Office of Long Term Planning and Sustainability) -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the public service law, in relation to net metering THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph (iii) of paragraph (a) of subdivision 1 of section 66-j of the public service law, as amended by chapter 546 of the laws of 2011, is amended to read as follows: (iii) a non-residential customer of an electric corporation which owns or operates solar electric generating equipment located and used at its premises, OR A CORPORATION THAT OWNS, LEASES, OR OPERATES SOLAR ELECTRIC GENERATING EQUIPMENT ON PROPERTY OWNED OR LEASED BY A NON-RESIDENTIAL CUSTOMER OF AN ELECTRIC CORPORATION; S 2. Paragraph (d) of subdivision 1 of section 66-j of the public service law, as amended by chapter 7 of the laws of 2010, is amended to read as follows: (d) "Solar electric generating equipment" means a photovoltaic system (i) (A) in the case of a residential customer, with a rated capacity of not more than twenty-five kilowatts; and (B) in the case of a non-resi- dential customer, (1) with a rated capacity of not more than two thou- sand kilowatts, OR (2) WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, WITH A RATED CAPACITY OF NOT MORE THAN TEN THOUSAND KILOWATTS; and (ii) that is manufactured, installed, and operated in accordance with applicable government and industry standards, that is connected to the electric system and operated in conjunction with an electric corpo- ration's transmission and distribution facilities, and that is operatedEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10737-07-3 S. 5150--A 2
in compliance with any standards and requirements established under this section. S 3. Subparagraph (iii) of paragraph (a) of subdivision 3 of section 66-j of the public service law, as amended by chapter 546 of the laws of 2011, is amended to read as follows: (iii) Each electric corporation shall make such contract and schedule available to customer-generators on a first come, first served basis, until the total rated generating capacity for solar and farm waste elec- tric generating equipment, micro-combined heat and power generating equipment, fuel cell electric generating equipment and micro-hydroelec- tric generating equipment owned, leased or operated by customer-genera- tors in the corporation's service area is equivalent to one percent of the corporation's electric demand for the year two thousand five, as determined by the department. WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, NO MORE THAN FORTY MEGAWATTS OF THE TOTAL AMOUNT ALLOWED HEREUNDER SHALL BE RESERVED FOR SOLAR PHOTOVOLTAIC SYSTEMS WITH A RATED CAPACITY OF AT LEAST ONE THOUSAND KILOWATTS, AS FURTHER DESCRIBED IN ITEM TWO OF CLAUSE (B) OF SUBPARAGRAPH (I) OF PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION. S 4. Paragraph (e) of subdivision 3 of section 66-j of the public service law, as amended by chapter 546 of the laws of 2011, is amended to read as follows: (e) (I) A customer who owns or operates a farm operation as such term is defined in subdivision eleven of section three hundred one of the agriculture and markets law, or a non-residential customer-generator as defined by subparagraph (iii) of paragraph (a) of subdivision one of this section that locates solar electric generating equipment or farm waste electric generating equipment with a net energy meter on property owned or leased by such customer-generator may designate all or a portion of the net metering credits generated by such equipment to meters at any property owned or leased by such customer-generator within the service territory of the same electric corporation to which the customer-generator's net energy meters are interconnected and being within the same load zone as determined by the location based marginal price as of the date of initial request by the customer-generator to conduct net metering. The electric corporation will credit the accounts of the customer by applying any credits to the highest use meter first, then subsequent highest use meters until all such credits are attributed to the customer. Any excess credits shall be carried over to the follow- ing month. (II) AS AN ALTERNATIVE TO THE RIGHTS ESTABLISHED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH, A CUSTOMER-GENERATOR LOCATED WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE MAY ELECT TO DESIGNATE ALL OR A PORTION OF THE NET METERING CREDITS GENERATED BY SOLAR ELECTRIC GENERAT- ING EQUIPMENT AS DESCRIBED IN ITEM TWO OF CLAUSE (B) OF SUBPARAGRAPH (I) OF PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION PROVIDED THE EQUIP- MENT WAS INSTALLED PRIOR TO JANUARY FIRST, TWO THOUSAND EIGHTEEN TO ONE OR MORE METERS OF UP TO TEN CUSTOMER ACCOUNTS, PROVIDED THAT EACH SUCH CUSTOMER ACCOUNT HAS AN ON-SITE LOAD OF AT LEAST ONE HUNDRED KILOWATTS; AND PROVIDED, THAT ANY METERS DESIGNATED TO RECEIVE CREDITS HEREUNDER MUST BE INSTALLED AT ANY PROPERTY LOCATED WITHIN THE SERVICE TERRITORY OF THE SAME ELECTRIC CORPORATION TO WHICH THE CUSTOMER-GENERATOR'S NET ENERGY METERS ARE INTERCONNECTED AND ARE LOCATED WITHIN THE SAME LOAD ZONE AS DETERMINED BY THE LOCATION BASED MARGINAL PRICE AS OF THE DATE OF INITIAL REQUEST BY THE CUSTOMER-GENERATOR TO CONDUCT NET METERING. THE ELECTRIC CORPORATION WILL CREDIT THE ACCOUNTS OF SUCH ELIGIBLES. 5150--A 3
CUSTOMERS AS DIRECTED BY THE CUSTOMER-GENERATOR, UNTIL ALL SUCH CREDITS ATTRIBUTED TO THE CUSTOMER-GENERATOR HAVE BEEN DISTRIBUTED. ANY EXCESS CREDITS SHALL BE CARRIED OVER TO THE FOLLOWING MONTH, AS FURTHER DESCRIBED IN PARAGRAPH (C) OF SUBDIVISION FOUR OF THIS SECTION. S 5. Paragraph (c) 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: (c) At the end of the year or annualized over the period that service is supplied by means of net energy metering, the corporation shall promptly issue payment at its avoided cost to the customer-generator, as defined in subparagraph (i) or (ii) of paragraph (a) of subdivision one of this section, for the value of any remaining credit for the excess electricity produced during the year or over the annualized period by the customer-generator. THE CORPORATION SHALL CARRY OVER, FOR A PERIOD NOT TO EXCEED ONE YEAR, REMAINING CREDITS FOR THE EXCESS ELECTRICITY PRODUCED DURING THE YEAR OR OVER THE ANNUALIZED PERIOD BY THE CUSTOMER- GENERATOR PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (E) OF SUBDIVISION THREE OF THIS SECTION. S 6. This act shall take effect immediately.