F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB741CS/HB741 2022 A bill to be entitled An act relating to net metering;
revising and providing thelegislative termsfindings forrelating publicto utilitythe redesign of net metering programsto afteravoid across-subsidization specifiedof date;electric service costs between classes of ratepayers;
providingrequiring athe schedulePublic ofService reductionsCommission to propose new net metering raterules designs that applycomply to customers with netspecified meteringcriteria applicationsby thata arecertain approveddate; after specified dates;
authorizing certain customers who own or lease renewable generation before a specified date to remain under the existing net metering rules that initially applied to those customers for a specified time;
authorizing public utilities to petition for approval of certain fixed charges designed to meet specified purposes;
providing conditions under which rules must be initiated if the penetration rate of customer-owned or leased renewable generation meets a specified threshold;
authorizing public utilities to recover specified lost revenues upon meeting certain requirements;
requiring certain public utilities to provide a specified report to the commission;
SubsectionSubsections (5)(6) through (9) of section 366.91, Florida Statutes, are renumbered as subsections (7) through (10), respectively, subsections (1) and present (7) of that section are amended, and a new subsection (6) is amendedadded to that section, to read:
366.91 Renewable energy.— Page(1) 1ofThe 7Legislature CODING:finds that:
(a) It is in the public interest to continue promote the Page 1of 4 CODING:
hb0741-02-c2hb0741-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB741CS/HB741 2022 (5)(a)development Onof orrenewable beforeenergy Januaryresources 1,in 2009,this Eachstate publicin utility shall develop a standardizedmanner interconnectionthat agreementis fair and netequitable meteringto programall forpublic customer-ownedutility orcustomers. leased renewable generation.
TheRenewable commissionenergy shallresources establishhave requirementsthe relatingpotential to thehelp expediteddiversify interconnectionfuel andtypes netto meteringmeet Florida's growing dependency on natural gas for electric production, minimize the volatility of customer-fuel ownedcosts, orencourage leasedinvestment renewablewithin generationthe bystate, publicimprove utilitiesenvironmental conditions, and shallmake mayFlorida adopta newleader rulesin tonew administerand thisinnovative section.technologies.
(b)The Effectivedevelopment Januaryand 1,maturation 2024,of publicthe utilitysolar netenergy meteringindustry, programsthe forsubstantial decline in the cost of solar panels, and the increase in customer-owned orand leased renewable generation mustsupport providethe that:redesign of net metering by the commission.
1.(b) Customer-owned and leased renewable generation are not available to many public utility customers who lack the financial resources to purchase or lease rooftop solar panels or who reside in multitenant buildings.
ElectricityThe usedsubstantial bygrowth theof customercustomer-owned inand excessleased ofrenewable the generation suppliedhas byresulted customer-ownedin orincreased leasedcross-subsidization renewableof generationthe isfull billedcost byof theelectric publicservice utilityonto inthe accordancepublic withutility's normalgeneral billingbody practices;of ratepayers.
Therefore, the redesigned net metering rate structures required in paragraph (6)(a) must ensure that public utility customers who own or lease renewable generation pay the full cost of electric service and 2.are not cross-subsidized by the public utility's general body of ratepayers.
Excess(6)(a) customer-ownedOn or leasedbefore renewableJanuary generation1, delivered2023, to the publiccommission utility'sshall electricPage grid2of during4 theCODING: customer's regular billing cycle is credited to the customer's energy consumption for the next month's billing cycle as follows:
a.
For energy credits produced from customer-owned or leased renewable generation for which a net metering application is approved between January 1, 2024, and December 31, 2025, the customer's energy usage is offset by 75 percent of the amount credited;
b.
For energy credits produced from customer-owned or Page 2of 7 CODING:
hb0741-02-c2hb0741-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB741CS/HB741 2022 leasedpropose renewable generation for which a revised net metering applicationrule isthat approvedcomplies betweenwith January 1, 2026, and December 31, 2026, the customer'sfollowing energycriteria: usage is offset by 60 percent of the amount credited;
and c.
For energy credits produced from customer-owned or leased renewable generation for which a net metering application is approved between January 1, 2027, and December 31, 2028, the customer's energy usage is offset by 50 percent of the amount credited.
(c) A public utility customer who owns or leases renewable generation for which a net metering application is approved before January 1, 2029, pursuant to a standard interconnection agreement offered by a public utility, is granted 20 years to continue to use the net metering rate design and rates that applied at the time the net metering application was approved.
This paragraph applies to customers who purchase or lease real property upon which customer-owned or leased renewable generation is installed for all or part of that 20-year period.
(d) On or after the effective date of the net metering programs described in paragraph (b), a public utility may petition the commission for approval to impose any combination of fixed charges, which may include base facilities charges, electric grid access fees, and monthly minimum bills, to ensure that the public utility recovers the fixed costs of serving customers that own or lease renewable generation and that the Page 3of 7 CODING:
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hb0741-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB741 2022 general body of public utility ratepayers do not subsidize customer-owned or leased generation.
Within 180 days after a petition is filed by a public utility pursuant to this paragraph, the commission must issue a final order on the petition.
(e) The commission must adopt new rules to become effective January 1, 2029, that establish a new program design for customer-owned or leased renewable generation for which a net metering application is approved on or after January 1, 2029.
The new program design must comply with the following criteria:
EachThe net metering rate structures and billing must ensure that public utility customercustomers whoowning owns or leasesleasing renewable generation must pay the full cost of electric service and mayare not be subsidized by the public utility's general body of ratepayers.
AllThe net metering must ensure that all energy delivered by the public utility mustis be purchased at the public utility's applicable retail rate and that all energy delivered by the customer-owned or leased renewable generation to the public utility mustis be credited to the customer at the public utility's full avoided costs.
(f)1.3.
IfThe atnet anymetering timemay theinclude penetrationfixed ratecharges, ofincluding customer-base ownedfacilities orcharges, leasedelectric renewablegrid generationaccess infees, aor publicmonthly utility'sminimum servicebills, territoryto ishelp reasonablyensure expectedthat tothe exceedpublic 6.5utility percentrecovers within the succeedingfixed 12costs months,of theserving commission,customers uponwho petitionengage orin onnet itsmetering ownand motion,that mustthe initiategeneral rulemakingbody toof adoptpublic autility newratepayers Pagedo 4ofnot 7subsidize CODING:customer-owned or leased generation.
(b) Any public utility customer who owns or leases renewable generation that is in service before January 1, 2023, pursuant to a standard interconnection agreement offered by a public utility, shall be granted 20 years to continue to use the net metering rate design and rates that applied before the revised net metering rule was adopted under paragraph (a).
This paragraph applies to customers who purchase or lease real Page 3of 4 CODING:
hb0741-02-c2hb0741-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB741CS/HB741 2022 programproperty designupon thatwhich compliescustomer-owned withor subparagraphsleased (e)1.renewable generation is installed for all or part of that 20-year period.
and(c) 2.The commission shall require a public utility requesting a change in base rates under s.
A366.06 newto programreport design adopted pursuant to this subparagraph becomes effective 60 days after rule adoption or 60 days after the date the commission determines that the actualimpact penetrationof ratenet hasmetering reachedon 6.5the percent,public whicheverutility's isrevenues later, and shallcost applyof toservice. customer-owned or leased renewable generation for which a net metering application is approved after that effective date.
2.(8)(7) Under the provisions of subsections (5) and (7)(6), when a utility purchases power generated from biogas produced by the anaerobic digestion of agricultural waste, including food waste or other agricultural byproducts, net metering shall be available at a single metering point or as a part of conjunctive billing of multiple points for a customer at a single location, so long as the provision of such service and its associated charges, terms, and other conditions are not reasonably projected to result in higher cost electric service to the utility's general body of ratepayers or adversely affect the adequacy or reliability of electric service to all customers, as determined by the commission for public utilities, or as determined by the governing authority of the municipal electric utility or rural electric cooperative that serves at retail.
For purposes of this paragraph, the penetration rate shall be calculated by dividing the total summer peak demand of the public utility by the aggregate gross power rating (alternating current) of all in-service customer-owned or leased renewable generation in the public utility's service territory.
(g) This subsection establishes the minimum requirements for each public utility net metering program.
A public utility may petition the commission at any time for approval to offer a net metering program on terms that are not less favorable to customers who own or lease renewable generation than the terms specified in this subsection or in commission rules adopted pursuant to this subsection.
(h)1.
A public utility may recover, through its fuel and purchased power cost recovery charge, its lost revenues resulting from the incremental addition of residential customer- owned or leased solar photovoltaic generation within the public utility's service territory between July 1, 2022, and December 31, 2023, above the level that such generation, for purposes of Page 5of 7 CODING:
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hb0741-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB741 2022 setting base rates in the public utility's most recent base rate proceeding, was estimated to be installed within the public utility's service territory during the same period.
2.
A public utility seeking recovery of lost revenues under this paragraph must file with the commission a petition that:
a.
Identifies the total capacity of residential customer- owned or leased solar photovoltaic generation that, for purposes of setting base rates in the public utility's most recent base rate proceeding, was estimated to be installed in the public utility's service territory between July 1, 2022, and December 31, 2023;
b.
Identifies the total capacity of residential customer- owned or leased solar photovoltaic generation that was installed in the public utility's service territory between July 1, 2022, and December 31, 2023;
c.
Demonstrates the difference in revenues collected by the public utility as a direct result of the incremental difference in the estimated and actual capacity additions identified in sub-subparagraphs a.
and b.
and identifies the specific amount that the utility seeks to recover;
d.
Demonstrates that the relief requested does not cause the public utility to exceed the rate of return on equity authorized by the commission in the public utility's most recent base rate proceeding;
and Page 6of 7 CODING:
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hb0741-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB741 2022 e.
Includes such other reasonably related information as the commission may require by rule.
3.
Upon receipt of a petition that meets the requirements of subparagraph 2., the commission must determine the amount, if any, that the utility is entitled to recover under this paragraph.
4.
A petition filed under this subsection may not be filed before December 31, 2023, or after March 31, 2024.
5.
The Legislature provides the limited, extraordinary relief set forth in this paragraph to address the potential impact on a public utility of a previously unanticipated surge, unaccounted for in the utility's last rate case, in the installation of customer-owned or leased renewable generation over the period specified in this subsection.
The Legislature makes no findings as to whether the recovery of lost revenues by a public utility is appropriate for any other purpose.
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