Bill Text: VA HB930 | 2018 | Regular Session | Prefiled
Bill Title: Multifamily net energy metering; SCC to establish program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-02-13 - Left in Commerce and Labor [HB930 Detail]
Download: Virginia-2018-HB930-Prefiled.html
Be it enacted by the General Assembly of Virginia:
1. That §56-594 of the Code of Virginia is amended and reenacted as follows:
§56-594. Net energy metering provisions.
A. The Commission shall establish by regulation a program that
affords eligible customer-generators the opportunity to participate in net
energy metering, and a
program, to begin no later than July 1, 2014, for customers of investor-owned
utilities and no later than July 1, 2015, for customers of electric
cooperatives, to afford eligible agricultural customer-generators the
opportunity to participate in net energy metering, and a program, to
begin no later than January 1, 2019, to
afford eligible multifamily net metering customer-generators the opportunity to
participate in net energy metering. The regulations may
include, but need not be limited to, requirements for (i) retail sellers; (ii)
owners or operators of distribution or transmission facilities; (iii) providers
of default service; (iv) eligible customer-generators; (v) eligible agricultural
customer-generators; or (vi) eligible multifamily net
metering customer-generators; or (vii) any combination of
the foregoing, as the Commission determines will facilitate the provision of
net energy metering, provided that the Commission determines that such
requirements do not adversely affect the public interest. On and after July 1,
2017, small agricultural generators or eligible agricultural
customer-generators may elect to interconnect pursuant to the provisions of
this section or as small agricultural generators pursuant to §56-594.2, but
not both. Existing eligible agricultural customer-generators may elect to
become small agricultural generators, but may not revert to being eligible
agricultural customer-generators after such election. On and after July 1,
2019, interconnection of eligible agricultural customer-generators shall cease
for electric cooperatives only, and such facilities shall interconnect solely
as small agricultural generators. For electric cooperatives, eligible agricultural
customer-generators whose renewable energy generating facilities were
interconnected before July 1, 2019, may continue to participate in net energy
metering pursuant to this section for a period not to exceed 25 years from the
date of their renewable energy generating facility's original interconnection.
B. For the purpose of this section:
"Eligible agricultural customer-generator" means a
customer that operates a renewable energy generating facility as part of an
agricultural business, which generating facility (i) uses as its sole energy
source solar power, wind power, or aerobic or anaerobic digester gas, (ii) does
not have an aggregate generation capacity of more than 500 kilowatts, (iii) is
located on land owned or controlled by the agricultural business, (iv) is
connected to the customer's wiring on the customer's side of its
interconnection with the distributor; (v) is interconnected and operated in
parallel with an electric company's utility's transmission and
distribution facilities, and (vi) is used primarily to provide energy to
metered accounts of the agricultural business. An eligible agricultural
customer-generator may be served by multiple meters that are located at
separate but contiguous sites, such that the eligible agricultural customer-generator
may aggregate in a single account the electricity consumption and generation
measured by the meters, provided that the same electric
utility serves all such meters. The aggregated load shall be served under the
appropriate tariff.
"Eligible customer-generator" means a customer that
owns and operates, or contracts with other persons to own, operate, or both, an
electrical generating facility that (i) has a capacity of not more than 20
kilowatts for residential customers and not more than one megawatt for
nonresidential customers on an electrical generating facility placed in service
after July 1, 2015; (ii) uses as its total source of fuel renewable energy, as defined in §56-576; (iii)
is located on the customer's premises and is connected to the customer's wiring
on the customer's side of its interconnection with the distributor; (iv) is
interconnected and operated in parallel with an electric company's utility's transmission and
distribution facilities; and (v) is intended primarily to offset all or part of
the customer's own electricity requirements. 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, shall not
exceed 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.
"Eligible multifamily net metering customer-generator" means a customer or customers that operate a renewable energy generating facility in a condominium, apartment complex, or homeowners association served by a common distribution circuit, which generating facility (i) uses as its total source of fuel renewable energy; (ii) does not have an aggregate generation capacity of more than 500 kilowatts; (iii) is located on land owned or controlled by the eligible condominium, apartment complex, or homeowners association or on customers' property within the condominium, apartment complex, or homeowners association; (iv) is interconnected and operated in parallel with an electric utility's transmission and distribution facilities; and (v) is used primarily to provide energy to metered accounts of the eligible multifamily net metering customer-generator. An eligible multifamily net metering customer-generator may be served by multiple meters that are located at separate sites within the site of the condominium, apartment complex, or homeowners association, such that the eligible multifamily net metering customer-generator may aggregate the electricity consumption and generation measured by the meters, provided that the same electric utility serves all such meters. Each eligible multifamily net metering customer-generator shall own the energy transmitted by the renewable energy system until drawn from the grid at each eligible multifamily net metering customer-generator's residence. The aggregated load shall be served under the appropriate tariff or rate schedule.
"Net energy metering" means measuring the difference, over the net metering period, between (i) electricity supplied to an eligible customer-generator, eligible multifamily net metering customer-generator, or eligible agricultural customer-generator from the electric grid and (ii) the electricity generated and fed back to the electric grid by the eligible customer-generator, eligible multifamily net metering customer-generator, or eligible agricultural customer-generator.
"Net metering period" means the 12-month period following the date of final interconnection of the eligible customer-generator's, eligible multifamily net metering customer-generator's, or eligible agricultural customer-generator's system with an electric service provider, and each 12-month period thereafter.
"Small agricultural generator" has the same meaning that is ascribed to that term in §56-594.2.
C. The Commission's regulations shall ensure that (i) the metering equipment installed for net metering shall be capable of measuring the flow of electricity in two directions and (ii) any eligible customer-generator, eligible multifamily net metering customer-generator, or eligible agricultural customer-generator seeking to participate in net energy metering shall notify its supplier and receive approval to interconnect prior to installation of an electrical generating facility. The electric distribution company shall have 30 days from the date of notification for residential facilities, and 60 days from the date of notification for nonresidential facilities, to determine whether the interconnection requirements have been met. Such regulations shall allocate fairly the cost of such equipment and any necessary interconnection. An eligible customer-generator's electrical generating system, and each electrical generating system of an eligible multifamily net metering customer-generator or eligible agricultural customer-generator, shall meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories. Beyond the requirements set forth in this section and to ensure public safety, power quality, and reliability of the supplier's electric distribution system, an eligible customer-generator, eligible multifamily net metering customer-generator, or eligible agricultural customer-generator whose electrical generating system meets those standards and rules shall bear all reasonable costs of equipment required for the interconnection to the supplier's electric distribution system, including costs, if any, to (a) install additional controls, (b) perform or pay for additional tests, and (c) purchase additional liability insurance.
D. The Commission shall establish minimum requirements for contracts to be entered into by the parties to net metering arrangements. Such requirements shall protect the eligible customer-generator, eligible multifamily net metering customer-generator, or eligible agricultural customer-generator against discrimination by virtue of its status as an eligible customer-generator, eligible multifamily net metering customer-generator, or eligible agricultural customer-generator, and permit customers that are served on time-of-use tariffs that have electricity supply demand charges contained within the electricity supply portion of the time-of-use tariffs to participate as an eligible customer-generator, eligible multifamily net metering customer-generator, or eligible agricultural customer-generator. Notwithstanding the cost allocation provisions of subsection C, eligible customer-generators, eligible multifamily net metering customer-generators, or eligible agricultural customer-generators served on demand charge-based time-of-use tariffs shall bear the incremental metering costs required to net meter such customers.
E. If electricity generated by an eligible customer-generator, eligible multifamily net metering
customer-generator, or eligible agricultural
customer-generator over the net metering period exceeds the electricity
consumed by the eligible customer-generator, eligible
multifamily net metering customer-generator, or eligible
agricultural customer-generator, the eligible
customer-generator, eligible multifamily net
metering customer-generator, or eligible agricultural
customer-generator shall be compensated for the excess electricity if the
entity contracting to receive such electric energy and the eligible
customer-generator, eligible multifamily net
metering customer-generator, or eligible agricultural
customer-generator enter into a power purchase agreement for such excess
electricity. Upon the written request of the eligible customer-generator, eligible multifamily net metering
customer-generator, or eligible agricultural
customer-generator, the supplier that serves the eligible customer-generator, eligible multifamily net metering
customer-generator, or eligible agricultural
customer-generator shall enter into a power purchase agreement with the
requesting eligible customer-generator, eligible multifamily net
metering customer-generator, or eligible agricultural
customer-generator that is consistent with the minimum requirements for
contracts established by the Commission pursuant to subsection D. The power
purchase agreement shall obligate the supplier to purchase such excess
electricity 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. The eligible customer-generator, eligible
multifamily net metering customer-generator, or eligible
agricultural customer-generator owns any renewable energy certificates
associated with its electrical generating facility; however, at the time that
the eligible customer-generator, eligible multifamily net
metering customer-generator, or eligible agricultural
customer-generator enters into a power purchase agreement with its supplier,
the eligible customer-generator, eligible multifamily net
metering customer-generator, or eligible agricultural
customer-generator shall have a one-time option to sell the renewable energy
certificates associated with such electrical generating facility to its
supplier and be compensated at an amount that is established by the Commission
to reflect the value of such renewable energy certificates. Nothing in this
section shall prevent the eligible customer-generator, eligible
multifamily net metering customer-generator, or eligible
agricultural customer-generator and the supplier from voluntarily entering into
an agreement for the sale and purchase of excess electricity or renewable
energy certificates at mutually-agreed upon prices if the eligible
customer-generator, eligible multifamily net
metering 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, eligible multifamily net
metering 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 and renewable
energy certificates from eligible customer-generators, eligible
multifamily net metering 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. If not, then all costs shall be recoverable
through the supplier's fuel adjustment clause. For purposes of this section,
"all costs" shall be defined as the rates paid to the eligible
customer-generator, eligible multifamily net
metering customer-generator, or eligible agricultural
customer-generator for the purchase of excess electricity and renewable energy
certificates and any administrative costs incurred to manage the eligible
customer-generator's, eligible multifamily net
metering 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, eligible multifamily net metering
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 multifamily net metering
customer-generators, eligible
agricultural customer-generators, and small agricultural generators in the state
Commonwealth 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, eligible multifamily net metering
customer-generator, or eligible agricultural
customer-generator for such excess electricity in a timely manner at a rate to
be established by the Commission.
F. Any residential eligible customer-generator or eligible
agricultural customer-generator who that owns and operates, or
contracts with other persons to own, operate, or both, an electrical generating
facility with a capacity that exceeds 10 kilowatts shall pay to its supplier,
in addition to any other charges authorized by law, a monthly standby charge.
The amount of the standby charge and the terms and conditions under which it is
assessed shall be in accordance with a methodology developed by the supplier
and approved by the Commission. The Commission shall approve a supplier's
proposed standby charge methodology if it finds that the standby charges
collected from all such eligible customer-generators and eligible agricultural
customer-generators allow the supplier to recover only the portion of the
supplier's infrastructure costs that are properly associated with serving such
eligible customer-generators or eligible agricultural customer-generators. Such
an eligible customer-generator or eligible agricultural customer-generator shall
not be liable for a standby charge until the date specified in an order of the
Commission approving its supplier's methodology.
