SB 191 — Net energy metering; eligibility limits.

SESSION history | hilite | pdf | print version 18102658D18106596D SENATE BILL NO.

191 OfferedAMENDMENT JanuaryIN 10,THE 2018NATURE PrefiledOF DecemberA 29,SUBSTITUTE 2017(Proposed by the Senate Committee on Commerce and Labor on February 5, 2018) (Patron Prior to Substitute--Senator Favola) A BILL to amend and reenact § 56-594 of the Code of Virginia, relating to net energy metering.

----------Be Patrons--it Favola;enacted by the General Assembly of Virginia:

Delegate:

Lopez ---------- Referred to Committee on Commerce and Labor ---------- Be it enacted by the General Assembly of Virginia:

In addition to the electrical generating facility size limitations in clause (i), the capacity of any generating facility installed under this section after July 1, 2015 2018, shall not exceed (a) for an investor-owned utility 125 percent or (b) for an electric cooperative 100 percent, of the expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available or (b) the projected energy consumption based on annual energy consumption at similar buildings if the building to be served by the generating facility is newly constructed.

"Excess generation" means the amount of electrical energy generated in excess of the electrical energy consumed by the eligible agricultural customer-generator or eligible customer-generator over the course of the net metering period.

For time-of-use eligible agricultural customer generators or eligible customer-generators, excess generation is determined separately for each time-of-use tier.

"Net metering period" means the 12-month period following the date of final interconnection of the eligiblebeginning customer-generator'sJune or1 eligibleof agriculturaleach customer-generator'syear systemand withending anMay electric31 serviceof provider,the andnext eachyear. 12-month period thereafter.

Notwithstanding the foregoing, for the first year an eligible customer-generator's customer-generator or eligible agricultural customer-generator's system with an electric service provider, and each 12-month period thereafter customer-generator is interconnected, the net metering period shall consist of at least one full 12-month period and shall end on the May 31 following that period and begin anew on June 1.

The Except as otherwise required by this section, the Commission shall establish minimum requirements for contracts to be entered into by the parties to net metering arrangements.

If electricity generated by an eligible customer-generator or eligible agricultural customer-generator over the net metering period exceeds the electricity consumed by the eligible customer-generator or eligible agricultural customer-generator, the customer-generator or eligible agricultural customer-generator shall be compensated for the excess electricity generation at the end of the net metering period if the entity contracting to receive such electric energy and the eligible customer-generator or eligible agricultural customer-generator enter into a power purchase agreement for such excess electricity.electricity generation.

For investor-owned electric utilities only, excess generation for which compensation has been received shall not be carried forward into the next net metering period.

If the eligible customer-generator or eligible agricultural customer-generator does not enter into a power purchase agreement for such excess generation, then any excess generation remaining at the end of the net metering period is forfeited by eligible customer-generator or eligible agricultural customer-generator and surrendered to the supplier.

The power purchase agreement shall obligate the supplier to purchase such excess electricity generation at the rate that is provided for such purchases in a net metering standard contract or tariff approved by the Commission, unless the parties agree to a higher rate.rate price determined by the method set forth in 20VAC5-315-50 as of July 1, 2018.

Nothing in this section shall prevent the eligible customer-generator or eligible agricultural customer-generator and the supplier from voluntarily entering into an agreement for the sale and purchase of excess electricity generation or renewable energy certificates at mutually-agreed upon prices if the eligible customer-generator or eligible agricultural customer-generator does not exercise its option to sell its renewable energy certificates to its supplier at Commission-approved prices at the time that the eligible customer-generator or eligible agricultural customer-generator enters into a power purchase agreement with its supplier.

All costs incurred by the supplier to purchase excess electricity generation and renewable energy certificates from eligible customer-generators or eligible agricultural customer-generators shall be recoverable through its Renewable Energy Portfolio Standard (RPS) rate adjustment clause, if the supplier has a Commission-approved RPS plan.

For purposes of this section, "all costs" shall be defined as the rates prices paid to the eligible customer-generator or eligible agricultural customer-generator for the purchase of excess electricity generation and renewable energy certificates and any administrative costs incurred to manage the eligible customer-generator's or eligible agricultural customer-generator's power purchase arrangements.

The net metering standard contract or tariff shall be available to eligible customer-generators or eligible agricultural customer-generators on a first-come, first-served basis in each electric distribution company's Virginia service area until the rated generating capacity owned and operated by eligible customer-generators, eligible agricultural customer-generators, and small agricultural generators in the state reaches one percent of each electric distribution company's adjusted Virginia peak-load forecast for the previous year, and shall require the supplier to pay the eligible customer-generator or eligible agricultural customer-generator for such excess electricity generation in a timely manner at a rate to be established by the Commission.Commission the price determined by the method set forth in 20VAC5-315-50 as of July 1, 2018.