Bill Text: VA SB779 | 2016 | Regular Session | Comm Sub
Bill Title: Electric utility regulation; net energy metering.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2016-02-15 - Continued to 2017 in Commerce and Labor (15-Y 0-N) [SB779 Detail]
Download: Virginia-2016-SB779-Comm_Sub.html
16105574D
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. 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) 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. 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 "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 "Net energy metering" means measuring the difference, over the net metering period, between (i) electricity supplied to an eligible 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 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 or eligible agricultural customer-generator's system with an electric service provider, and each 12-month period thereafter. 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 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 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 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 or eligible agricultural customer-generator against discrimination by virtue of its status as an eligible 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 or eligible agricultural customer-generator. The Commission shall also establish such rules and regulations as it finds necessary and reasonable to allow any eligible customer-generator or eligible agricultural customer-generator to enter into a contract to sell any net-metering eligible energy that exceeds the eligible customer-generator's or eligible agricultural customer-generator's own energy demand for any monthly period to any other retail customer within the same service territory of the incumbent utility. Notwithstanding the cost allocation provisions of subsection C, eligible 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
or eligible agricultural customer-generator over the net metering period
exceeds the electricity consumed by the eligible customer-generator or eligible
agricultural customer-generator and is not sold to another customer under
subsection D, the 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 or eligible agricultural customer-generator enter into a
power purchase agreement for such excess electricity. Upon the written request
of the eligible customer-generator or eligible agricultural customer-generator,
the supplier that serves the eligible customer-generator or eligible
agricultural customer-generator shall enter into a power purchase agreement
with the requesting eligible 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 F. Any residential eligible customer-generator or eligible agricultural customer-generator who 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. |