Relates to the rates paid for net-metering technology

1 Co-sponsor

• Kevin S. Parker

BILL NUMBER:S2383

Title of bill

An act to amend the public service law, in relation to the rates paid for net energy metering technology

Purpose

To include micro-combined heat and power and fuel cell customer-generators in total rate reimbursement from electric corporations.

Summary of provisions

Amends paragraph (b) of subdivision 4 of section 66-j of the public service law to eliminate the exclusion of micro-combined heat and power and fuel cell customer-generators from receiving the a credit based on same rate per kilowatt hour as customers without on-site generation, just as other net metered technologies currently receive.

Existing law

Currently, micro-combined heat and power and fuel cells are credited at the utility's avoided cost for electricity produced in excess of the customer's usage.

Justification

The reliability and environmental advantages of micro-combined heat (CHP) and power and fuel cell customer-generator technologies are proven and such technologies should be provided with equal benefits as other renewable technologies.

Fuel cell and micro-CHP electric generating technology have many advantages. Fuel cells and micro-CHP commonly provide power to host facilities during power outages, enhancing storm response, and allowing critical facilities to remain operational in such events. The fuel flexibility of these technologies unlocks a large portfolio of locally available fuels and the existing fuel infrastructure, which has the potential to increase the reliability of the power system and to keep more energy dollars in New York State. Fuel cells and micro-CHP commonly provide power to host facilities during power outages, enhancing storm response, and allowing critical facilities to remain operational in such events. Fuel cells and micro-CHP are exceptionally efficient, they can stretch available supplies of fuel, reduce energy costs and help reduce our dependence on foreign oil. The scalability and resiliency of fuel cells and micro-CHP makes them suitable for a wide range of heat and power needs in electronics, homes, offices, and factories. In addition, these technologies have a low impact on their surroundings, with near-silent operation and low emissions, making them suitable in locations where combustion systems may not be appropriate. Also, fuel cells can be used in conjunction with solar panels or wind farms to produce electricity when renewable energy is unavailable. The high capacity factors, fuel and efficiency, associated with these technologies make them equal or superior to renewable technologies in the displacement of conventional fossil generation, leading to lower air emissions, including carbon. For these reasons, such technologies should be treated equally to renewable technologies in determining the appropriate rates for such technologies.

Fiscal implications

This bill would generate a de minimis total annual reduction in tax liabilities.

History

New bill.

Effective date

This act shall take effect on the one hundred twentieth day after it shall become a law