NEW YORK
2003 SENATE BILL 4890--E
[A> UPPERCASE TEXT WITHIN THESE SYMBOLS IS ADDED <A]
[D> Text within these symbols is deleted <D]
THE PEOPLE OF THE STATE OF
Section 1. The public service law is amended by adding a new section 66-1 to
read as follows:
[A> SECTION 66-1. NET ENERGY METERING FOR RESIDENTIAL AND FARM SERVICE WIND
ELECTRIC GENERATING SYSTEMS. 1. DEFINITIONS. AS USED IN THIS SECTION, THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: <A]
[A> (A) "CUSTOMER-GENERATOR" MEANS A RESIDENTIAL CUSTOMER AND/OR
FARM SERVICE CUSTOMER OF AN ELECTRIC CORPORATION, WHO OWNS OR OPERATES WIND
ELECTRIC GENERATING EQUIPMENT LOCATED AND USED AT HIS OR HER PRIMARY RESIDENCE.
<A]
[A> (B) "FARM SERVICE CUSTOMER" MEANS CUSTOMER LAND USED IN
AGRICULTURAL PRODUCTION AS DEFINED IN SUBDIVISION FOUR OF SECTION THREE HUNDRED
ONE OF THE AGRICULTURE AND MARKETS LAW. <A]
[A> (C) "NET ENERGY METER" MEANS A METER THAT MEASURES THE REVERSE
FLOW OF ELECTRICITY TO REGISTER THE DIFFERENCE BETWEEN THE ELECTRICITY SUPPLIED
BY AN ELECTRIC CORPORATION TO THE CUSTOMER-GENERATOR AND THE ELECTRICITY
PROVIDED TO THE CORPORATION BY THAT CUSTOMER-GENERATOR. <A]
[A> (D) "NET ENERGY METERING" MEANS THE USE OF A NET ENERGY METER
TO MEASURE, DURING THE BILLING PERIOD APPLICABLE TO A CUSTOMER-GENERATOR, THE
NET AMOUNT OF ELECTRICITY SUPPLIED BY AN ELECTRIC CORPORATION AND PROVIDED TO
THE CORPORATION BY A CUSTOMER-GENERATOR. <A]
[A> (E) "WIND ELECTRIC GENERATING EQUIPMENT" MEANS A WIND
GENERATOR OR GENERATORS WITH A COMBINED RATED CAPACITY OF NOT MORE THAN
TWENTY-FIVE KILOWATTS FOR RESIDENTIAL CUSTOMER-GENERATION AND NOT MORE THAN ONE
HUNDRED TWENTY-FIVE KILOWATTS FOR FARM SERVICE CUSTOMER-GENERATION, 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 CORPORATION'S TRANSMISSION AND DISTRIBUTION
FACILITIES, AND THAT IS OPERATED IN COMPLIANCE WITH ANY STANDARDS AND
REQUIREMENTS ESTABLISHED UNDER THIS SECTION. <A]
[A> 2. INTERCONNECTION AND NET ENERGY METERING. AN
ELECTRIC CORPORATION SHALL PROVIDE FOR THE INTERCONNECTION OF RESIDENTIAL AND
FARM SERVICE WIND ELECTRIC GENERATING EQUIPMENT OWNED OR OPERATED BY A
CUSTOMER-GENERATOR AND FOR NET ENERGY METERING, PROVIDED THAT THE
CUSTOMER-GENERATOR ENTERS INTO A NET ENERGY METERING CONTRACT WITH THE
CORPORATION OR COMPLIES WITH THE CORPORATION'S NET ENERGY METERING SCHEDULE AND
COMPLIES WITH STANDARDS AND REQUIREMENTS ESTABLISHED UNDER THIS SECTION. THE
CUSTOMER-GENERATOR SHALL BE RESPONSIBLE FOR PAYMENT OF ONE-HALF OF THE EXPENSE
OF SUCH INTERCONNECTION ON WIND-ELECTRIC GENERATING EQUIPMENT WITH A RATED
CAPACITY OF MORE THAN TEN KILOWATTS. <A]
[A> 3. CONDITIONS OF SERVICE. (A) ON OR BEFORE
THREE MONTHS AFTER THE EFFECTIVE DATE OF THIS SECTION, EACH ELECTRIC
CORPORATION SHALL DEVELOP A MODEL CONTRACT AND FILE A SCHEDULE THAT ESTABLISHES
CONSISTENT AND REASONABLE RATES, TERMS AND CONDITIONS FOR NET ENERGY METERING
TO CUSTOMER-GENERATORS, ACCORDING TO THE REQUIREMENTS OF THIS SECTION. THE
COMMISSION SHALL RENDER A DECISION WITHIN THREE MONTHS FROM THE DATE ON WHICH
THE SCHEDULE IS FILED. 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 RESIDENTIAL AND FARM SERVICE WIND ELECTRIC
GENERATING EQUIPMENT OWNED OR OPERATED BY CUSTOMER-GENERATORS IN THE
CORPORATION'S SERVICE AREA IS EQUIVALENT TO TWO-TENTHS PERCENT OF THE
CORPORATION'S ELECTRIC DEMAND FOR THE YEAR TWO THOUSAND THREE, AS DETERMINED BY
THE DEPARTMENT. <A]
[A> (B) NOTHING IN THIS SUBDIVISION SHALL PROHIBIT A CORPORATION FROM
PROVIDING NET ENERGY METERING TO ADDITIONAL CUSTOMER-GENERATORS. THE COMMISSION
SHALL HAVE THE AUTHORITY, AFTER JANUARY FIRST, TWO THOUSAND SIX, TO INCREASE
THE PERCENT LIMITS IF IT DETERMINES THAT ADDITIONAL NET ENERGY METERING IS IN
THE PUBLIC INTEREST. <A]
[A> (C) IN THE EVENT THAT THE ELECTRIC CORPORATION DETERMINES THAT IT IS
NECESSARY TO INSTALL A DEDICATED TRANSFORMER OR TRANSFORMERS TO PROTECT THE
SAFETY AND ADEQUACY OF ELECTRIC SERVICE PROVIDED TO OTHER CUSTOMERS, A
CUSTOMER-GENERATOR SHALL PAY THE ELECTRIC CORPORATION'S ACTUAL COSTS OF
INSTALLING THE TRANSFORMER OR TRANSFORMERS: <A]
[A> (I) IN THE CASE OF A CUSTOMER-GENERATOR WHO OWNS AND OPERATES WIND
ELECTRIC GENERATING EQUIPMENT LOCATED AND USED AT HIS OR HER RESIDENCE WITH A
COMBINED RATED CAPACITY OF NOT MORE THAN TWENTY-FIVE KILOWATTS, UP TO A MAXIMUM
AMOUNT OF SEVEN HUNDRED FIFTY DOLLARS; AND (II) IN THE CASE OF A
CUSTOMER-GENERATOR WHO OWNS AND OPERATES WIND ELECTRIC GENERATING EQUIPMENT
LOCATED AND USED AT HIS OR HER RESIDENCE WITH A COMBINED RATED CAPACITY OF NOT
MORE THAN ONE HUNDRED TWENTY-FIVE KILOWATTS, UP TO A MAXIMUM OF ONE THOUSAND
DOLLARS. <A]
[A> (D) AN ELECTRIC CORPORATION SHALL IMPOSE NO OTHER CHARGE OR FEE,
INCLUDING, BUT NOT LIMITED TO, BACK UP, STAND BY OR DEMAND CHARGES, FOR THE
PROVISION OF NET METERING TO A CUSTOMER-GENERATOR. <A]
[A> 4. RATES. AN ELECTRIC CORPORATION SHALL USE NET
ENERGY METERING TO MEASURE AND CHARGE FOR THE NET ELECTRICITY SUPPLIED BY THE
CORPORATION AND PROVIDED TO THE CORPORATION BY A CUSTOMER-GENERATOR, ACCORDING
TO THE FOLLOWING REQUIREMENTS: <A]
[A> (A) IN THE EVENT THAT THE AMOUNT OF ELECTRICITY SUPPLIED BY THE
CORPORATION DURING THE BILLING PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY
PROVIDED BY A CUSTOMER-GENERATOR, THE CORPORATION SHALL CHARGE THE
CUSTOMER-GENERATOR FOR THE NET ELECTRICITY SUPPLIED 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. <A]
[A> (B) IN THE EVENT THAT THE AMOUNT OF ELECTRICITY PRODUCED BY A CUSTOMER-
GENERATOR DURING THE BILLING PERIOD EXCEEDS THE AMOUNT OF ELECTRICITY USED BY
THE CUSTOMER-GENERATOR, (I) FOR A CUSTOMER-GENERATOR WITH WIND ELECTRIC
GENERATING EQUIPMENT OF NOT MORE THAN TEN KILOWATTS, THE CORPORATION SHALL
APPLY A CREDIT TO THE NEXT BILL FOR SERVICE TO THE CUSTOMER- GENERATOR FOR THE
NET ELECTRICITY 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; (II) FOR A CUSTOMER-GENERATOR WITH WIND ELECTRIC
GENERATING EQUIPMENT OF MORE THAN TEN KILOWATTS, THE CORPORATION SHALL RECORD
THE NET AMOUNT OF ELECTRICITY PROVIDED TO IT BY THE CUSTOMER-GENERATOR AS A
CREDIT AT THE CORPORATION' S AVOIDED COST RATE. THE CREDIT PROVIDED TO THE
CUSTOMER-GENERATOR SHALL BE EQUAL TO THE COST OTHERWISE AVOIDED BY THE ELECTRIC
CORPORATION IN NOT HAVING TO PURCHASE SUCH ENERGY IN THE COMPETITIVE MARKET OR
GENERATE THE SAME THROUGH FACILITIES IT OWNS OR CONTROLS. <A]
[A> (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 FOR THE VALUE OF ANY
REMAINING CREDIT FOR THE EXCESS ELECTRICITY PRODUCED DURING THE YEAR OR OVER
THE ANNUALIZED PERIOD BY THE CUSTOMER-GENERATOR. <A]
[A> 5. SAFETY STANDARDS. (A) ON OR BEFORE THREE
MONTHS AFTER THE EFFECTIVE DATE OF THIS SECTION, EACH ELECTRIC CORPORATION
SHALL ESTABLISH STANDARDS THAT ARE NECESSARY FOR NET ENERGY METERING AND THE
INTERCONNECTION OF RESIDENTIAL AND FARM SERVICE WIND ELECTRIC GENERATING
EQUIPMENT TO ITS SYSTEM AND THAT THE COMMISSION SHALL DETERMINE ARE NECESSARY
FOR SAFE AND ADEQUATE SERVICE AND FURTHER THE PUBLIC POLICY SET FORTH IN THIS
SECTION. SUCH STANDARDS MAY INCLUDE, BUT SHALL NOT BE LIMITED TO: <A]
[A> (I) EQUIPMENT NECESSARY TO ISOLATE AUTOMATICALLY THE RESIDENTIAL AND
FARM SERVICE GENERATING SYSTEM FROM THE UTILITY SYSTEM FOR VOLTAGE AND
FREQUENCY DEVIATIONS; AND (II) A MANUAL LOCKABLE DISCONNECT SWITCH PROVIDED BY
THE CUSTOMER-GENERATOR WHICH SHALL BE LOCATED ON THE OUTSIDE OF THE CUSTOMER'S
PREMISES AND EXTERNALLY ACCESSIBLE FOR THE PURPOSE OF ISOLATING THE RESIDENTIAL
AND FARM SERVICE ELECTRIC GENERATING EQUIPMENT. <A]
[A> (B) UPON ITS OWN MOTION OR UPON A COMPLAINT, THE COMMISSION, OR ITS
DESIGNATED REPRESENTATIVE, MAY INVESTIGATE AND MAKE A DETERMINATION AS TO THE
REASONABLENESS AND NECESSITY OF THE STANDARDS OR RESPONSIBILITY FOR COMPLIANCE
WITH THE STANDARDS. <A]
[A> (I) AN ELECTRIC CORPORATION MAY NOT REQUIRE A CUSTOMER-GENERATOR TO
COMPLY WITH ADDITIONAL SAFETY OR PERFORMANCE STANDARDS, OR PERFORM OR PAY FOR
ADDITIONAL TESTS, OR PURCHASE ADDITIONAL LIABILITY INSURANCE, PROVIDED THAT:
<A]
[A> A. THE ELECTRIC GENERATING EQUIPMENT MEETS THE SAFETY STANDARDS
ESTABLISHED PURSUANT TO THIS PARAGRAPH; AND <A]
[A> B. THE TOTAL RATED GENERATING CAPACITY (MEASURED IN KW) OF RESIDENTIAL
OR FARM SERVICE ELECTRIC GENERATING EQUIPMENT THAT PROVIDES ELECTRICITY TO THE
ELECTRIC CORPORATION THROUGH THE SAME LOCAL FEEDER LINE, DOES NOT EXCEED TWENTY
PERCENT OF THE RATED CAPACITY OF THAT LOCAL FEEDER LINE. <A]
[A> (II) IN THE EVENT THAT THE TOTAL RATED GENERATING CAPACITY OF
RESIDENTIAL OR FARM SERVICE ELECTRIC GENERATING EQUIPMENT THAT PROVIDES
ELECTRICITY TO THE ELECTRIC CORPORATION THROUGH THE SAME LOCAL FEEDER LINE
EXCEEDS TWENTY PERCENT OF THE RATED CAPACITY OF THE LOCAL FEEDER LINE, THE
ELECTRIC CORPORATION MAY REQUIRE THE CUSTOMER-GENERATOR TO COMPLY WITH
REASONABLE MEASURES TO ENSURE SAFETY OF THAT LOCAL FEEDER LINE. <A]
[A> 6. ELECTRIC RESTRUCTURING. NOTWITHSTANDING THE
PROVISIONS OF THIS SECTION, INCLUDING, BUT NOT LIMITED TO PARAGRAPH (C) OF
SUBDIVISION THREE OF THIS SECTION, A CUSTOMER-GENERATOR SHALL COMPLY WITH ANY
APPLICABLE DETERMINATIONS OF THE COMMISSION RELATING TO RESTRUCTURING OF THE
ELECTRIC INDUSTRY. <A]
[A> 7. SEVERABILITY OF PROVISIONS. THE PROVISIONS
OF THIS SECTION SHALL BE SEVERABLE AND IF THE APPLICATION OF ANY CLAUSE,
SENTENCE, PARAGRAPH, SUBDIVISION, SECTION, OR PART THEREOF TO ANY PERSON OR
CIRCUMSTANCE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURISDICTION TO BE
INVALID, SUCH JUDGMENT SHALL NOT NECESSARILY AFFECT, IMPAIR, OR INVALIDATE THE
APPLICATION OF ANY SUCH CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, SECTION, PART
OR REMAINDER THEREOF, AS THE CASE MAY BE, TO ANY OTHER PERSON OR CIRCUMSTANCE,
BUT SHALL BE CONFINED IN ITS OPERATION TO THE CLAUSE, SENTENCE, PARAGRAPH,
SUBDIVISION, SECTION OR PART THEREOF DIRECTLY INVOLVED IN THE CONTROVERSY IN
WHICH SUCH JUDGMENT SHALL BE RENDERED. <A]
Section 2. Subdivision (h) of section 1020-g of the public authorities law, as
amended by chapter 515 of the laws of 2002, is amended to read as follows:
(h) To implement programs and policies designed to provide for the
interconnection of: (i) solar electric generating
equipment owned or operated by residential customers; [D> and <D] (ii)
farm waste electric generating equipment owned or operated by
customer-generators and for net energy metering consistent with section
sixty-six-j of the public service law, to increase the efficiency of energy end
use, to shift demand from periods of high demand to periods of low demand and
to facilitate the development of cogeneration [A> ; AND (III) WIND ELECTRIC
GENERATING EQUIPMENT OWNED OR OPERATED BY CUSTOMER-GENERATORS AND FOR NET
ENERGY METERING CONSISTENT WITH SECTION SIXTY-SIX-L OF THE PUBLIC SERVICE LAW
<A] .
Section 3. This act shall take effect on the one
hundred eightieth day after it shall have become a law.