SB 680 — ELECTRICITY NET METERING

SB0680 EngrossedEnrolled LRB095 07321 MJR 27460 b AN ACT concerning regulation.

(b) As used in this Section, (i) "eligible customer" means a retail customer that owns andor operates a solar, wind, or other eligible renewable electrical generating facility with a rated capacity of not more than 2,000 kilowatts that is located on the customer’s premises and is intended primarily to offset the customer’s own electrical requirements;

(iii) "eligible renewable electrical generating facility" means a generator powered by solar electric energy, wind, dedicated crops grown for electricity SB0680 EngrossedEnrolled - 2 - LRB095 07321 MJR 27460 b generation, anaerobic digestion of livestock or food processing waste, fuel cells or microturbines powered by renewable fuels, or hydroelectric energy;

and (iv) "net electricity metering" (or "net metering") means the measurement, during the billing period applicable to an eligible customer, of the net amount of electricity deliveredsupplied by an electricity provider to the customer’s premises or provided to the electricity provider by the customer.

(c) A net-meteringnet metering facility shall be equipped with metering equipment that can measure the flow of electricity in both directions at the same rate.

AnFor eligible customerresidential maycustomers, choosethis toshall usetypically anbe existingaccomplished electricthrough revenueuse meter if the meter is capable of measuringa thesingle, flowbi-directional ofmeter. electricity both into and out of the customer’s facility at the same rate and ratio.

If the eligible customer’s existing electric revenue meter does not meet this requirement, the electricity provider shall arrange for the local electric utility or a meter service provider to install and maintain a new revenue meter at the electricity provider’s expense.

AnyFor subsequentnon-residential revenuecustomers, the electricity provider may arrange for the local electric utility or a meter changeservice necessitatedprovider byto install and maintain metering equipment capable of measuring the eligibleflow customerof shallelectricity beboth paidinto forand byout of the customer.customer’s facility at the same rate and ratio, typically through the use of a dual channel meter.

For generators with a nameplate rating of 40 kilowatts and below, the costs of installing such equipment shall be paid for by the electricity provider.

For generators with a nameplate rating over 40 SB0680 Enrolled - 3 - LRB095 07321 MJR 27460 b kilowatts and up to 2,000 kilowatts capacity, the costs of installing such equipment shall be paid for by the customer.

Any subsequent revenue meter change necessitated by any eligible customer shall be paid for by the customer.

(1) If the amount of electricity used by the customer during the billing period exceeds the amount of electricity produced by the customer, the electricity provider shall charge the customer for the net electricity supplied to and SB0680 Engrossed - 3 - LRB095 07321 MJR 27460 b used by the customer as provided in subsection (e) of this Section.

(2) If the amount of electricity produced by a customer during the billing period exceeds the amount of electricity used by the customer during that billing period, the electricity provider supplying that customer shall apply a 1:1 kilowatt-hour credit,credit including delivery charges, to thea nextsubsequent bill for service to the customer for the net electricity supplied to the electricity provider.

(3) At the end of the year or annualized over the SB0680 Enrolled - 4 - LRB095 07321 MJR 27460 b period that service is supplied by means of net energy metering, theor electricityin providerthe shallevent compensatethat the eligibleretail customer forterminates anyservice excesswith kilowatt-hourthe creditselectricity atprovider prior to the electricityend provider’sof averagethe costyear ofor electricitythe supplyannualized overperiod, any remaining credits in the samecustomer’s calendaraccount yearshall period.expire.

In(e) lieuAn ofelectricity compensation,provider theshall eligibleprovide customerto maynet electmetering tocustomers carryelectric forwardservice anyat remainingnon-discriminatory creditsrates that are identical, with respect to therate nextstructure, annualizedretail periodrate orcomponents, untiland any monthly charges, to the customerrates leavesthat the program,customer whicheverwould maybe comecharged first.if not a net metering customer.

(e) An electricity provider shall providenot tocharge net-meteringnet SB0680metering Engrossedcustomers -any 4fee -or LRB095charge 07321or MJRrequire 27460additional bequipment, customersinsurance, electricor serviceany atother non-discriminatoryrequirements ratesnot thatspecifically areauthorized identical,by withinterconnection respectstandards toauthorized rateby structure,the retailCommission, rateunless components,the andfee, anycharge, monthlyor charges,other torequirement thewould ratesapply thatto theother customersimilarly wouldsituated becustomers chargedwho ifare not anet net-meteringmetering customer.customers.

AnThe electricitycustomer providerwill shallremain notresponsible chargefor net-meteringall customerstaxes, anyfees, feeand orutility chargedelivery orcharges requirethat additionalwould equipment,otherwise insurance,be orapplicable anyto otherthe requirementsnet notamount specificallyof authorizedelectricity used by rule, unless the fee,customer. charge, or other requirement would apply to other similarly situated customers who are not net-metering customers.

(f)Subsections For(c) purposesthrough (e) of federalthis andSection Stateshall lawsnot providingbe renewableconstrued energyto creditsprevent oran greenhousearms-length gasagreement credits,between thean electricity provider and an eligible customer shallthat besets treatedforth asdifferent owningprices, terms, and havingconditions titlefor to the renewableprovision energyof attributes,net renewablemetering energyservice, credits,including, andbut greenhousenot gaslimited emissionto, creditsthe relatedprovision toof anythe electricityappropriate producedmetering byequipment thefor qualifiednon-residential generatingcustomers. unit.

TheSB0680 electricityEnrolled provider- may5 not- conditionLRB095 participation07321 inMJR a27460 net-meteringb program(f) onNotwithstanding the signingrequirements overof subsections (c) through (e) of athis customer’sSection, an electricity provider must require dual-channel metering for non-residential customers operating eligible renewable energyelectrical credits.generating facilities with a nameplate rating over 40 kilowatts and up to 2,000 kilowatts.

(g)In Withinsuch 120cases, dayselectricity aftercharges theand effectivecredits date of this amendatory Act of the 95th General Assembly, the Commission shall establishbe standardsdetermined foras netfollows: energy metering and the interconnection of eligible renewable generating equipment to the utility system.

These(1) standardsThe shallelectricity beprovider designedshall toassess minimizeand the proceduralcustomer barriers,remains delays,responsible andfor administrativeall coststaxes, associatedfees, withand theutility interconnectiondelivery ofcharges customerthat SB0680would Engrossedotherwise -be 5applicable -to LRB095the 07321gross MJRamount 27460of bkilowatt-hours generationsupplied whileto ensuring the safetyeligible andcustomer reliabilityby of such units and the electricelectricity utilityprovider. system.

The(2) interconnectionEach standardsmonth establishedthat underservice thisis Sectionsupplied shallby bemeans based upon the Institute of Electricaldual-channel andmetering, Electronicsthe Engineerselectricity (IEEE)provider Standard 1547 and shall alsocompensate includethe (i)eligible reasonablecustomer andfor fairany feesexcess andkilowatt-hour costs,credits (ii)at clear timelines for major milestones in the interconnectionelectricity process,provider’s (iii)avoided nondiscriminatorycost terms of agreement,electricity andsupply (iv)over anythe othermonthly requirementsperiod necessaryor toas ensureotherwise thatspecified by the proceduresterms areof equivalenta topower-purchase theagreement currentnegotiated bestbetween practicesthe forcustomer interconnectionand ofelectricity distributedprovider. generation.

(h)(3) AllFor all eligible net metering customers taking service from an electricity providersprovider under contracts or tariffs employing time of use rates, any monthly consumption of electricity shall beginbe calculated according to offerthe netterms energyof meteringthe nocontract lateror thantariff Aprilto 1,which 2008.the same customer would be assigned to or be eligible for if the SB0680 Enrolled - 6 - LRB095 07321 MJR 27460 b customer was not a net metering customer.

(i)When Anthose electricitysame providercustomer-generators mustare offer net energygenerators meteringduring toany eligiblediscrete customerstime untilof theuse loadperiod, ofthe its net energykilowatt-hours meteringproduced customersshall equalsbe 1%valued ofat the totalsame peakprice demandper suppliedkilowatt-hour byas thatthe electricityelectric service provider would charge for retail kilowatt-hour sales during thethat previoussame year.time of use period.

Electricity(g) providersFor arepurposes authorizedof tofederal offerand netState laws providing renewable energy meteringcredits beyondor greenhouse gas credits, the 1%eligible levelcustomer ifshall theybe sotreated choose.as owning and having title to the renewable energy attributes, renewable energy credits, and greenhouse gas emission credits related to any electricity produced by the qualified generating unit.

The electricity provider may not condition participation in a net metering program on the signing over of a customer’s renewable energy credits;

provided, however, this subsection (g) shall not be construed to prevent an arms-length agreement between an electricity provider and an eligible customer that sets forth the ownership or title of the credits.

(h) Within 120 days after the effective date of this amendatory Act of the 95th General Assembly, the Commission shall establish standards for net metering and, if the Commission has not already acted on its own initiative, standards for the interconnection of eligible renewable generating equipment to the utility system.

The interconnection standards shall address any procedural barriers, delays, and administrative costs associated with the SB0680 Enrolled - 7 - LRB095 07321 MJR 27460 b interconnection of customer-generation while ensuring the safety and reliability of the units and the electric utility system.

The Commission shall consider the Institute of Electrical and Electronics Engineers (IEEE) Standard 1547 and the issues of (i) reasonable and fair fees and costs, (ii) clear timelines for major milestones in the interconnection process, (iii) nondiscriminatory terms of agreement, and (iv) any best practices for interconnection of distributed generation.

(i) All electricity providers shall begin to offer net metering no later than April 1, 2008.

(j) An electricity provider shall provide net metering to eligible customers until the load of its net metering customers equals 1% of the total peak demand supplied by that electricity provider during the previous year.

Electricity providers are authorized to offer net metering beyond the 1% level if they so choose.

The number of new eligible customers with generators that have a nameplate rating of 40 kilowatts and below will be limited to 200 total new billing accounts for the utilities (Ameren Companies, ComEd, and MidAmerican) for the period of April 1, 2008 through March 31, 2009.

(k) Each electricity provider shall maintain records and report annually to the Commission the total number of net metering customers served by the provider, as well as the type, capacity, and energy sources of the generating systems used by the net metering customers.

Nothing in this Section shall limit SB0680 Enrolled - 8 - LRB095 07321 MJR 27460 b the ability of an electricity provider to request the redaction of information deemed by the Commission to be confidential business information.

Each electricity provider shall notify the Commission when the total generating capacity of its net metering customers is equal to or in excess of the 1% cap specified in subsection (j) of this Section.

(l) Notwithstanding the definition of "eligible customer" in item (i) of subsection (b) of this Section, each electricity provider shall consider whether to allow meter aggregation for the purposes of net metering on:

(1) properties owned or leased by multiple customers that contribute to the operation of an eligible renewable electrical generating facility, such as a community-owned wind project or a community methane digester processing livestock waste from multiple sources;

and (2) individual units, apartments, or properties owned or leased by multiple customers and collectively served by a common eligible renewable electrical generating facility, such as an apartment building served by photovoltaic panels on the roof.