REPORT TITLE:
Net Energy Metering


DESCRIPTION:
Increases the maximum allowable generating capacity used by an
eligible customer-generator under a net energy metering contract,
establishes certain requirements for contracts, and limits the
imposition of additional charges.  Establishes more detailed
requirements for making net energy metering calculations.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2055
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO NET ENERGY METERING.



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

 1      SECTION 1.  The legislature finds and declares that a
 
 2 program to provide net energy metering for eligible customer-
 
 3 generators is one way to encourage private investment in
 
 4 renewable energy resources, stimulate in-state economic growth,
 
 5 enhance the continued diversification of Hawaii's energy resource
 
 6 mix, and reduce interconnection and administrative costs for
 
 7 electric utilities.  The purpose of this Act is to amend Hawaii's
 
 8 net energy metering law to accomplish these goals.
 
 9      SECTION 2.  Section 269-16.21, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "[[]§269-16.21[]]  Net energy metering.(a)  [Every
 
12 electric utility in the State that offers residential electrical
 
13 service shall develop a standard contract or tariff providing for
 
14 net energy metering, and shall make this contract available to
 
15 eligible customer-generators on a first-come, first-served basis
 
16 until such time as the total rated generated capacity owned and
 
17 operated by eligible customer-generators in each utility's
 
18 service areas equals 0.1 per cent of the utility's peak demand.
 
19      (b)  Each eligible customer-generator meeting the criteria
 

 
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 1 of subsection (a) shall be entitled to net energy metering,
 
 2 calculated as follows:
 
 3      (1)  The customer-generator shall be billed for the energy
 
 4           supplied by the utility at the utility-approved retail
 
 5           rate, less an amount equal to the amount of energy
 
 6           generated by the customer over the applicable billing
 
 7           period, multiplied by a rate set by the commission
 
 8           based on the incremental cost to the utility of
 
 9           alternative electric energy.
 
10      (2)  Where the amount in paragraph (1) is positive, the
 
11           customer-generator shall be billed by the utility.
 
12           Where the amount is negative, the customer-generator
 
13           shall be credited by the utility.
 
14      (c)  A utility, with the consent of the eligible customer-
 
15 generator, may annualize the period during which the net energy
 
16 measurement is calculated.
 
17      (d)  In the event of disputes between a utility and an
 
18 eligible customer-generator, either party may request a
 
19 determination of the disputed issue by the commission.
 
20      (e)  The electric utility shall have the right to deny
 
21 interconnection with an eligible customer-generator if the
 
22 interconnection will directly result in degradation of service.
 
23      (f)  The electric utility shall have the right to prevent
 

 
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                                     S.B. NO.           2055
                                                        
                                                        

 
 1 electric energy flow into the system by the customer-generator if
 
 2 the customer-generator's facilities are not in compliance with
 
 3 the electric utility's interconnection requirements.  The
 
 4 interconnection will be reinstated upon remediation by the
 
 5 customer-generator within a reasonable period.  Repeated
 
 6 violations within a one-year period may be grounds for
 
 7 termination of the interconnection agreement.] As used in this
 
 8 section:
 
 9      "Eligible customer-generator" means a metered residential,
 
10 commercial, industrial, military, or government customer of an
 
11 electric utility who owns and operates a solar, wind, biomass, or
 
12 micro-hydro electric energy generating facility with a capacity
 
13 of not more than two hundred-fifty kilowatts that is located on
 
14 the customer's premises, operates in parallel with the electric
 
15 utility's transmission and distribution facilities, and is
 
16 intended primarily to offset part or all of the customer's own
 
17 electrical requirements.
 
18      "Net energy metering" means using a single, reversible, non-
 
19 time-differentiated meter to measure the difference between the
 
20 electricity supplied by a electric utility and the electricity
 
21 generated by an eligible customer-generator and fed back to the
 
22 electric utility over an entire billing period.
 
23      (b)  Every electric utility shall develop no later than
 

 
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                                     S.B. NO.           2055
                                                        
                                                        

 
 1 three months after the effective date of this Act a standard
 
 2 contract providing for net energy metering and shall make this
 
 3 contract available to eligible customer-generators, upon request,
 
 4 on a first-come, first-served basis until the time that the total
 
 5 rated generating capacity used by eligible customer-generators,
 
 6 in each electric utility's area equals three per cent of the
 
 7 electric utility's peak electricity demand.
 
 8      (c)  Each net energy metering contract shall be identical,
 
 9 with respect to rate structure, all retail rate components, and
 
10 any monthly charges, to the contract to which the same customer
 
11 would choose or be assigned if the customer was not an eligible
 
12 customer-generator.  The charges for all retail rate components
 
13 for eligible customer-generators shall be based exclusively on
 
14 the eligible customer-generator's net kilowatt-hour consumption
 
15 in accordance with subsection (e).  No other new or additional
 
16 demand charge, stand-by charge, customer charge, minimum monthly
 
17 charge, interconnection charge, engineering review charge, or
 
18 other charge that would increase an eligible customer-generator's
 
19 costs beyond those of other customers in the rate class to which
 
20 the eligible customer-generator would otherwise choose or be
 
21 assigned shall be included in the net energy metering contract.
 
22      (d)  The net energy metering contract shall not be more than
 
23 two pages and shall be concisely written.
 

 
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                                     S.B. NO.           2055
                                                        
                                                        

 
 1      (e)  The net energy metering calculation shall be made by
 
 2 measuring the difference between the electricity supplied to the
 
 3 eligible customer-generator and the electricity generated and fed
 
 4 back to the electric grid by the eligible customer-generator over
 
 5 an annual billing period.  Each eligible customer-generator
 
 6 meeting the criteria of subsection (a) shall be entitled to net
 
 7 energy metering, calculated as follows:
 
 8      (1)  The electric utility shall measure the net energy
 
 9           produced or consumed during a regular billing period,
 
10           in accordance with normal metering practices;
 
11      (2)  If the electricity supplied by the electric utility
 
12           exceeds the electricity generated by the eligible
 
13           customer-generator during the billing period, the
 
14           eligible customer-generator shall be billed for the net
 
15           energy supplied, in accordance with subsection (c);
 
16      (3)  If the electricity generated by the eligible customer-
 
17           generator exceeds the electricity supplied by the
 
18           electric utility, the electric utility shall credit the
 
19           eligible customer-generator for the excess kilowatt-
 
20           hours generated, in accordance with subsection (c).
 
21           The kilowatt-hour credit shall appear on the next
 
22           regular billing statement; and
 
23      (4)  At the end of each annual period, the electric utility
 

 
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 1           shall retain any remaining unused credit for the excess
 
 2           kilowatt-hours generated during the prior annual period
 
 3           and the eligible customer-generator shall not be owed
 
 4           any compensation for the unused credit.                
 
 5      (f)  A solar, wind, biomass, or micro-hydro electric
 
 6 generating system used by an eligible customer-generator shall
 
 7 meet all applicable safety and performance standards established
 
 8 by the National Electrical Code, the Institute of Electrical and
 
 9 Electronics Engineers, and accredited testing laboratories, such
 
10 as Underwriters Laboratories.  Eligible customer-generators whose
 
11 solar, wind, biomass, or micro-hydro electric generating systems
 
12 meet those standards shall not be required to install additional
 
13 controls or perform or pay for additional tests.
 
14      (g)  A solar, wind, biomass, or micro-hydro electric
 
15 generating system used by an eligible customer-generator shall
 
16 not be required to carry additional liability insurance beyond
 
17 the customer-generator's existing home or business liability
 
18 coverage."
 
19      SECTION 3.  Section 269-1, Hawaii Revised Statutes, is
 
20 amended by deleting the definitions "eligible customer-
 
21 generator", "incremental cost of alternative electric energy",
 
22 and "net energy metering".
 
23      [""Eligible customer-generator" means a metered residential
 

 
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                                     S.B. NO.           2055
                                                        
                                                        

 
 1 customer of an electric utility who owns and operates a solar,
 
 2 wind, or micro-hydro electric energy generating facility with a
 
 3 capacity of not more than ten kilowatts, that is located on the
 
 4 customer's premises, operates in parallel with the utility's
 
 5 transmission and distribution facilities, is in conformance with
 
 6 the utility's interconnection requirements, and is intended
 
 7 primarily to offset part or all of the customer's own electrical
 
 8 requirements.
 
 9      "Incremental cost of alternative electric energy" means,
 
10 with respect to electric energy purchased from an eligible
 
11 customer-generator, the cost to the utility of the electric
 
12 energy that, but for the purchase from the eligible customer-
 
13 generator, the utility would generate or purchase from another
 
14 non-firm source.
 
15      "Net energy metering" means using a non-time-differentiated
 
16 meter to measure the electricity supplied by a utility and
 
17 another non-time-differentiated meter to measure the electricity
 
18 generated by an eligible customer-generator and fed back to the
 
19 utility over an entire billing period."]
 
20      SECTION 4.  Statutory material to be repealed is bracketed.
 
21 New statutory material is underscored.
 

 
 
 
 
 
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 1      SECTION 5.  This Act shall take effect upon its approval.
 
 2 
 
 3                           INTRODUCED BY:  _______________________