Authorizes virtual net energy metering

BILL NUMBER:S2792

Title of bill

An act to amend the public service law, in relation to authorizing virtual net energy metering

Purpose or general idea of bill

Virtual net metering creates the option of receiving energy credits on electric meters in locations where a renewable energy project is not currently, or may never be able to be installed

Summary of specific provisions

Section 1 provides necessary definitions.

Section 2 provides for a virtual net metering interconnection by the electric corporation. Also provides that customer-generator must enter into corporation's net energy metering contract and comply with the corporation's net energy metering schedule, standards and requirements.

Section 3 provides that each electric corporation develop a model contract with reasonable rates, terms, conditions and schedules. It also provides that the customer-generator shall pay the costs of installing a dedicated transformer or transformers, should it be necessary in providing virtual net metering interconnection without compromise of other customers' energy services. There shall be no other fee or charge for the provision of virtual net energy metering to customer-generators.

Section 4 provides for fair rate calculation and timely crediting (at avoided cost) of energy created that exceeds customer-generator use.

Section 5 provides safety standards to be established by each electric corporation necessary for safe and adequate service.

Justification

Net metering has served as an important incentive for consumer investment in solar. However, until recently, to capture net metering credits, there needed to be a one-to-one relationship between the solar generation system's meter and the meter associated with the offsetting electricity load. Moreover, the two needed to be co-located and tied to the same electric service account.

In order to lessen those restrictions, various states have tried community-based net metering and remote net metering. However, even those adaptations of the basic net metering principle require close proximity of the generator to the customer. For large urban areas with completely built environments, such proximity is difficult or impossible to realize. Therefore, it is necessary to institute virtual net metering.

Virtual Net Metering (VNM) is an electric tariff that allows for the net-metering credits from a single solar generating system to be

distributed among multiple electric service accounts, such as a high-density multiple dwelling unit (i.e., a high-rise apartment building or high-density housing development).

Net metering has been around since the 1980s. Now, 43 states as well as the District of Columbia allow net metering. VNM, however, is a relatively new concept. Massachusetts, for example, has implemented a "neighborhood net metering" program, which allows groups of at least 10 "neighbors" to spread the net metering credits from a single PV system across the electric accounts of the participating neighbors. Rhode Island offers VNM for certain customer classes such as local and state governments. Neither, however, has implemented VNM across all customer classes. California has taken a similar approach, piloting the concept with a select group of customers, namely the multi-family low-income segment. New Jersey and Pennsylvania have also instituted VNM, leaving New York to be one of the last of the states with significant urban areas to update its net metering policies.

Prior legislative history

2013-2014: S.3217 - Referred to Energy and Telecommunications 2011-2012: S.3625 - Energy & Telecommunications 2009-2010: A.11200 - Died in Energy

Fiscal implications

None to the State.

Effective date

Immediately upon enactment