Provides for net metering of electric generating systems in areas of non-attainment of ambient air quality standards

Section two is the enacting clause.

Existing law

Section 66-j of the Public Service Law authorizes net energy metering for residential customers who own or operate solar electric generation equipment with a rated capacity of not more than ten kilowatts. It authorizes the use of net energy metering for customer owned or operated farm waste generation equipment used on-site to systems with a rated capacity of not more than four hundred kilowatts.

Section 66-1 of the Public Service Law authorizes net energy metering on customer owned or operated residential wind electric generation equipment with a combined rated capacity of not more than twenty-five kilowatts and not more than one hundred twenty-five kilowatts for customer owned or operated farm service wind generation.

Sections 66-j and 66-1 authorize utilities to make net energy metering contracts with customer-generators on a first come, first served basis until the total rated generating capacity for residential solar electric generation equipment is equivalent to one tenth percent of the corporation's electric demand for the year 1996 and for farm waste generation equipment until the total rate generation capacity is equivalent to four tenths of the corporation's electric demand for 1996.

Justification

Solar, wind, fuel cells and farm waste are prioritized in the State's Renewable Portfolio Standard as fuels for procurement to increase the statewide use of renewable energy. "Net energy metering" is a way for customers of utilities who own and operate such systems on-site to receive a financial credit for excess power that is automatically sent back into the transmission grid and used by other electric consumers.

Net energy metering helps make renewable power affordable. The financial payments or credits derived from net energy metering offset the high costs associated with capital investments in renewable power generation.

However, current law restricts net energy metering on solar, wind or farm waste generating equipment to certain qualified customers (residential), and to smaller-sized systems, and does not include fuel cells. In each utility's service territory, current law caps net metering based on a minuscule percent of a utility's total electric demand. There are no technical or reliability reasons to maintain such caps, especially given escalating prices for natural gas and oil.

Customers who are interconnected to the grid and who are generating power from renewable sources automatically send any excess or unused power back into the grid where it is then used by other customers.

Without net energy metering, the excess energy flows essentially free to the utility and does not provide customer generators with any financial credit. This situation serves as a disincentive for people or businesses to make the large capital investment in renewable electric generation.

For renewable power to become a sustainable source of electric generation, it is incumbent upon the State to remove any conditions which fetter its penetration into the marketplace. In fact, while all states have net energy metering programs, New York has one of the most limited programs in the nation.

Legislative history

2007: Similar bill (S.5818) died in Energy & Telecommunications Committee. 2008: S.5818A

Fiscal implications

None to State.

Local fiscal implications

None to localities.

Effective date

This act shall take effect immediately.