AB 425 — Revises provisions governing net metering. (BDR 58-1036)

EXEMPT (Reprinted with amendments adopted on April 20, 2023) FIRST REPRINT A.B.

Section 8 of this bill excludes persons who own or operate a low-income housing shared net metering system from the definition of “public utility.” Section 9 of this bill makes a conforming change to indicatemake the properdefinitions placementset offorth in sections 2-7 inapplicable theto Nevadaprovisions governing net metering to provide for the administration of net metering with respect to low-low-income income housing shared net metering systems, including the measuring of net electricity produced or consumed and the awarding of credit for excess electricity produced by a low-income housing shared net metering system.

Section 12 of this bill requires the Public Utilities Commission of Nevada to adopt regulations prescribing the form and substance for a low-income housing shared net meteringcontract. of this bill provides that, with certain exceptions, certain provisions governing the rates charged for the provision of electric service by the landlord of a manufactured - *AB425* – 2 – home park or mobile home park or owner of a company town do not apply to the owner or operator of a low-income housing shared net metering system.

Section 15 of this bill provides that, with certain exceptions, certain provisions governing the rates charged for the provision of electric service by the - *AB425_R1* – 2 – landlord of a manufactured home park or mobile home park or owner of a company metering system.y to the owner or operator of a low-income housing shared net THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

(a) AIn the case of common-area meters or master meters, a capacity that is sized to supply not more than 120100 percent of the metered historic usage or reasonably expected future usageusage; for common-area meters or master meters;

and (b) AIn the case of meters serving tenant units, a capacity of not more than 25 kilowatts per unitunit; for meters serving tenant units;

Is net metered by the utility by allocating creditnet formetering excesscredits electricity either to common area meters or to individually-metered accounts, or both, that receive an allocation, according to the allocation schedule provided by the owner of the energy system, without requiring the energy system to be physically interconnected with eachthe meter associatedof witheach auser. customer account.

- *AB425**AB425_R1* – 3 – Sec.

4.5.

“Net metering credits” means the credit that the utility is required to provide to a customer-generator for each kilowatt-hour of excess electricity governed by paragraph (c) of subsection 2 of NRS 704.775 that is generated by the customer-generator.

Sec.

(a) Contains one or more qualifying low-income residential buildings that are part of a single low-income housing enterpriseenterprise; on the same property or contiguous property;

Persons engaged in the production and sale of natural gas, other than sales to the public, or engaged in the transmission of - *AB425_R1* – 4 – natural gas other than as a common carrier transmission or distribution line or system.

- *AB425* – 4 – (a) They serve 25 persons or less;

- *AB425_R1* – 5 – (b) The residential or commercial units or spaces do not have individual meters measuring electricity use by an individual unit or space;

- *AB425* – 5 – 11.

Any user of a low-income housing shared net metering system, including, without limitation, tenant meters and common area meters that receive an allocation of the capacity and associated production of the low-income housing shared net - *AB425_R1* – 6 – metering system, regardless of the legal ownership of the low- income housing shared net metering system.

- *AB425* – 6 – (1) Uses renewable energy as its primary source of energy to generate electricity;

The term does not include a facility or energy system for the generation of electricity , other than a low-income housing shared - *AB425_R1* – 7 – net metering system, which has a generating capacity that exceeds the greater of:

- *AB425* – 7 – Sec.

If the net metering system of a customer-generator who accepts the offer of a utility for net metering has a capacity of not more than 25 kilowattskilowatts, [,] or if a customer-generator is allocated not more than 25 kilowatts from a low-income housing shared net metering system, the utility:

If the net metering system of a customer-generator who accepts the offer of a utility for net metering has a capacity of more than 25 kilowattskilowatts, [,] or if a customer-generator is allocated more than 25 kilowatts from a low-income housing shared net metering system, the utility:

(b) Except as otherwise provided in paragraph (d) and subsection 7, shall not charge the customer-generator any fee or charge that is different than that charged to other customers of the utility in the rate class to which the customer-generator would belong if the customer-generator did not have a net metering system, - *AB425_R1* – 8 – including, without limitation, customer, demand and facility charges.

- *AB425* – 8 – (c) Shall not reduce the minimum monthly charge of the customer-generator based on the electricity generated by the customer-generator and fed back to the utility.

- *AB425_R1* – 9 – (a) Retaining the percentage set forth in subsection 3 of NRS 704.7732 to be used to determine the credit for electricity governed - *AB425* – 9 – by paragraph (c) of subsection 2 of NRS 704.775, which is applicable to the customer-generator;

The Commission shall adopt regulations prescribing the form and substance for a low-income housing shared net metering tariff or tariffs and a standard low-income housing shared net metering contract.

(1) In the case of individually metered tenant units, net metering credits are equitably allocated among the tenant units inas a- manner*AB425_R1* that– is10 equitable– anda percentage of system production in proportion to the size of each unit measured in square feet;

and (2) In the case of master-metered buildings, residents receive such financial benefits in the form of additional property - *AB425* – 10 – amenities or services that are equitably accessible to all residents of the property.

(d) The manner in which a utility is required to billmeter customer-and generatorsbill customer-generators who are allocated shares of the capacity of a low-low-income income housing net metering system.system, including, without limitation, the provision of net metering credits on the bill of a customer-generator.

(e) Provisions governing the interconnection of a low-income housing shared net metering system to the system of the utility without requiring the meters inof individual unitsusers or owners of the low-income housing shared net metering system to be directly interconnected to the low-income housing shared net metering system, including, without limitation, procedures and timelines that are consistent with the procedures and timelines established for other net metering systems.

If a customer-generator accepts the offer of a utility for net metering on or after June 15, 2017, and the net metering system of the customer-generator has a capacity of not more than 25 kilowatts, the customer-generator is allocated not more than 25 kilowatts from[,] a low-income housing shared net metering system or the customer-generator is usinga anuser allocationor fromowner of a low-income housing shared net metering systemsystem, to serve common areas of a qualified affordable housing property, the utility must, in accordance with this section, provide to the customer-generator a credit for each kilowatt-hour of excess electricity governed by paragraph (c) of subsection 2 of NRS 704.775 that is generated by the customer-generator [.] or which represents the customer-generator’s allocation of the excess electricity generated by a low-income housing shared net metering system.

- *AB425_R1* – 11 – 2.

The credit for each kilowatt-hour of excess electricity described in subsection 1 must equal a percentage, as set forth in subsection 3, of the rate the customer-generator would have paid for a kilowatt-hour of electricity supplied by the utility at the time the - *AB425* – 11 – customer-generator fed the kilowatt-hour of excess electricity back to the utility.

- *AB425_R1* – 12 – 4.

On or before the 15th day of each calendar month, a utility shall post on its Internet website and report to the Commission the cumulative installed capacity of the net metering systems with a capacity of not more than 25 kilowatts for which a customer- - *AB425* – 12 – generator has accepted the offer of that utility as of the close of business of the utility on the last business day of the immediately preceding calendar month.

(1) For a net metering system other than a low-income housing shared net metering system or for a low-income housing shared net metering system that serves only one meter, in accordance with normal metering practices.

- *AB425_R1* – 13 – (b) If the electricity supplied by the utility exceeds the electricity generated by the customer-generator , or the customer-generator’s allocated share of the electricity generated by a low-income - *AB425* – 13 – housing shared net metering system, which is fed back to the utility during the billing period, the customer-generator must be billed for the net electricity supplied by the utility.

- *AB425_R1* – 14 – (b) Entirely by a customer-generatorcustomer-generator, [,] , including a customer- generator that is the owner of a low-income housing shared net metering system, the Commission shall issue to the customer- generator portfolio energy credits for use within the system of - *AB425* – 14 – portfolio energy credits adopted by the Commission pursuant to NRS 704.7821 and 704.78213 equal to the electricity generated by the net metering system.

- *AB425_R1* – 15 – 3.

To the extent that the cost of providing a utility service to the common area of a manufactured home park, mobile home park or company town can be identified, the landlord or owner may not recover the cost of the utility service provided to the common area - *AB425* – 15 – by directly charging a tenant or the occupant of a dwelling for those services.