Provides that credits for excess electricity generated by customer-generators subject to net energy metering may be carried over and used to offset electricity used

Title of bill

An act to amend the public service law, in relation to credit for electricity generated by a customer-generator subject to net energy metering

Purpose

To provide that credits for excess electricity generated by customer generators subject to net metering may be carried over and used to offset electricity used.

Summary of provisions

Section 1 amends subdivision 40f section 66-j of the Public Service Law, as amended by Chapter 355 of the laws of 2009.

Section 2 amends subdivision 4 of section 66-l of the Public Service Law, as amended by Chapter 721 of the laws of 2006, paragraphs (b) and (c) as amended and paragraph (d) as added by Chapter 483 of the laws of 2008.

Justification

New York State's net metering law allows a utility customer with an on-site electric generating system using solar or wind to send any excess power that they generate back to the utility grid, receiving an equal credit against their own usage. Customers are credited for the excess energy they produce at the retail rate, and the credits can be rolled over from month to month for a year. If there is excess electricity generator by the customer generator at the end of the year or annualized period of service, the utility pays for this electricity at the avoided cost rate. Avoided cost is the cost the utility would have incurred for producing the same amount of power-less than the retail rate.

Under this legislation, net-metered customer-generators can choose the option to carryover the credit that comes from their producing energy in excess of what they use and have that credit be aggregated indefinitely to be used as credit against times when they use more energy than they produce. In cases where customer-generators elect to carryover credits indefinitely, they will be entitled to an accounting of those credits every five years.

Net-metered customer generators do not produce excess energy for profit The electricity that net-metered customer generators put into the grid roughly equals what that customer uses during the periods when they must use electricity from the grid. It is logic and reasonable to allow the option of carryover of excess electricity credit longer than a 12 month period so that a customer-generator may take advantage of using their credits priced at the retail rate. This is significant t because the periods of time that the sun may shine and wind may blow are not the same from year to year, leaving a customer generator to either make more or less energy then use in anyone year. By giving the customer-generator the opportunity to carryover credits over a period of time longer than a year, the customer generator will be better able to take advantage of the natural year to year fluctuations of the sun and wind.

New York's interconnection and net metering rules are designed to motivate ratepayers to invest in renewable energy sources on their properties by ensuring that customer-generators are compensated for the energy they produce. By providing reasonable and appropriate benefits for customers, New York can incentivize customer-generators to contribute to the availability of safe, reliable, and affordable electricity and help protect our environment in New York and reduce our dependence on foreign fuel sources.

Legislative history

New bill.

Fiscal implications

No fiscal implications.

Effective date

This act shall take effect on the first day of January next succeeding the date on which it shall have become a law.