What's happening
This bill authorizes and sets requirements for virtual net energy metering, allowing groups to share renewable energy generation credits in New York.
Why it matters
Enables collective access to renewable energy benefits. By allowing municipalities, groups of nonresidential customers, and farm operations to jointly own or operate energy-generating equipment, the bill opens up clean energy participation to those who may not have the means or suitable property to install their own systems.
Expands types of eligible renewable technologies. The bill covers a broad range of technologies—including solar, wind, fuel cells, micro-combined heat and power, and farm waste digesters—encouraging diverse paths to cleaner energy and allowing different communities to select the most suitable options for their needs.
Standardizes billing and interconnection. Utilities must create clear, uniform contracts and rate structures for virtual net metering, reducing administrative barriers and ensuring fair treatment for participants, while also limiting extra charges that could otherwise discourage adoption.
Promotes grid safety and reliability. The legislation mandates utilities to establish safety and interconnection standards (such as automatic disconnects and manual switches), aiming to integrate distributed generation without compromising grid stability or public safety.
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Who cares
Headline styles
Allow Shared Solar Credits
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3578
2019-2020 Regular Sessions
IN SENATE
February 11, 2019
Introduced by Sens. PARKER, BAILEY, MONTGOMERY -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the public service law, in relation to authorizing virtual net energy metering
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The public service law is amended by adding a new section 66-p to read as follows:
§ 66-p. Virtual net energy metering. 1. Definitions. As used in this section, the following terms shall have the following meanings:
(a) "Customer-generator" means: (i) a city, town, village or special district which owns or operates energy generating equipment for the benefit of the residents thereof who are customers of a single electric corporation; (ii) a group of nonresidential customers of an electric corporation, who have entered into an agreement to jointly own or operate energy generating equipment; and (iii) a group of farm operations customers of an electric corporation, who have entered into an agreement to jointly own or operate energy generating equipment.
(b) "Energy generating equipment" means farm waste electric generating equipment, fuel cell electric generating equipment, micro-combined heat and power generating equipment, solar electric generating equipment and/or wind electric generating equipment.
(c) "Farm operations customer" means the customer of an electric corporation who uses electric energy in his, her or its farm operation as defined in subdivision eleven of section three hundred one of the agriculture and markets law.
(d) "Farm waste electric generating equipment" means equipment that generates electric energy from biogas produced by the anaerobic digestion of agricultural waste, such as livestock manure, farming wastes and food processing wastes, that is:
(i) manufactured, installed and operated in accordance with applicable government and industry standards;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09601-01-9
S. 3578 2
(ii) connected to the electric system and operated in conjunction with an electric corporation's transmission and distribution facilities;
(iii) fueled at a minimum of ninety percent on an annual basis by biogas produced from the anaerobic digestion of agricultural waste such as livestock manure materials, crop residues and food processing wastes; and
(iv) fueled by biogas generated by anaerobic digestion with at least fifty percent by weight of its feedstock being livestock manure materials on an annual basis.
(e) "Fuel cell electric generating equipment" means a solid oxide, molten carbonate, proton exchange membrane or phosphoric acid fuel cell that is manufactured, installed and operated in accordance with applicable government and industry standards, that is connected to the electric system and operated in parallel with an electric corporation's transmission and distribution facilities.
(f) "Member" means any resident of a municipality that is a customergenerator, or any member of a group of electric customers that is a customer-generator.
(g) "Micro-combined heat and power generating equipment" means an integrated, cogenerating building heating and electrical power generation system, operating on any fuel and of any applicable engine, fuel cell or other technology that may work in combination with supplemental or parallel conventional heating systems, that is manufactured, installed and operated in accordance with applicable government and industry standards, that is connected to the electric system and operated in conjunction with an electric corporation's transmission and distribution facilities.
(h) "Net energy meter" means meters that measure the reverse flow of electricity to register the difference between the electricity supplied by an electric corporation to the members of a customer-generator and the electricity provided to the corporation by that customer-generator.
(i) "Net energy metering" means the use of net energy meters to measure, during the billing period applicable to the members of a customergenerator, the net amount of electricity supplied by an electric corporation and provided to the corporation by such customer-generator.
(j) "Solar electric generating equipment" means a photovoltaic system that is manufactured, installed and operated in accordance with applicable government and industry standards, that is connected to the electric system and operated in conjunction with an electric corporation's transmission and distribution facilities.
(k) "Wind electric generating equipment" means one or more wind generators that are manufactured, installed and operated in accordance with applicable government and industry standards, that is connected to the electric system and operated in parallel with an electric corporation's transmission and distribution facilities.
2. Interconnection and net energy metering. An electric corporation shall provide for the interconnection of energy generating equipment owned or operated by a customer-generator and for net energy metering of the members of such customer-generator, provided that the customer-generator enters into a net energy metering contract with the corporation or complies with the corporation's net energy metering schedule and complies with standards and requirements established pursuant to this section.
3. Conditions of service. (a) On or before three months after the effective date of this section, each electric corporation shall develop a model contract and file a schedule that establishes consistent and
S. 3578 3
reasonable rates, terms and conditions for net energy metering to members of customer-generators, according to the requirements of this section. The commission shall render a decision within three months from the date on which the schedule is filed.
(b) In the event that the electric corporation determines that it is necessary to install a dedicated transformer or transformers, or other equipment to protect the safety and adequacy of electric service provided to other customers, a customer-generator shall pay the electric corporation's actual costs of installing the transformer or transformers, or other equipment as determined by the electric corporation subject to review, upon request of such customer-generator, by the department.
(c) An electric corporation shall impose no other charge or fee, including back-up, standby and demand charges, for the provision of net energy metering to the members of a customer-generator.
4. Rates. An electric corporation shall use net energy metering to measure and charge for the net electricity supplied by the corporation and provided to the corporation by a customer-generator, according to these requirements:
(a) In the event that the amount of electricity supplied by the corporation during the billing period exceeds the amount of electricity provided to the members of a customer-generator, the corporation shall charge the members of the customer-generator, on a pro-rata basis, for the net electricity supplied at the same rate per kilowatt hour applicable to service provided to other customers in the same service class which do not generate electricity onsite.
(b) In the event that the amount of electricity produced by a customer-generator during the billing period exceeds the amount of electricity used by the members of the customer-generator, the corporation shall apply a credit, on a pro-rata basis, to the next bills for service to the members of the customer-generator for the net electricity provided at the same rate per kilowatt hour applicable to service provided to other customers in the same service class which do not generate electricity on site.
(c) At the end of the year or annualized over the period that service is supplied by means of net energy metering, the corporation shall promptly issue payment at its avoided costs, on a pro-rata basis, to the members of a customer-generator for the value of any remaining credit for the excess electricity produced during the year or over the annualized period by the customer-generator.
5. Safety standards. On or before three months after the effective date of this section, each electric corporation shall establish standards that are necessary for net energy metering and the interconnection of energy generating equipment to its system and that the commission shall determine are necessary for safe and adequate service and further the public policy set forth in this section. Such standards may include, but shall not be limited to:
(a) equipment necessary to isolate automatically the energy generating equipment from the utility system for voltage and frequency deviations; and
(b) a manual lockable disconnect switch provided by the customer-generator which shall be located on the outside of the members' premises and externally accessible for the purpose of isolating the energy generating equipment.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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 provid- ing 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 invest- ment in solar. However, until recently, to capture net metering credits, there needed to be a one-to-one relationship between the solar gener- ation system's meter and the meter associated with the offsetting elec- tricity 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 commu- nity-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 real- ize. 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 rela- tively 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
2017/18: S3893 - Referred to Energy and Telecommunications 2015-16: S.2792 - Referred to Energy and Telecommunications 2013-14: S.3217/A.6065 - Referred to Energy and Telecommunications 2011-12: S.3625 - Referred to Energy & Telecommunications 2009-10: A.11200 - Referred to Energy and Telecommunications
Fiscal implications
None to the State.
Effective date
Immediately upon enactment
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