What's happening
This bill allows customer-generators in New York to indefinitely carry forward and aggregate excess electricity credits for net metering, or receive payments for unused credits after five years.
Why it matters
Helps solar and other renewable energy users recoup investments. By letting customer-generators indefinitely carry forward unused credits or get paid for surplus electricity after five years, the bill provides greater financial certainty and improved return on investment for people and businesses installing renewable energy systems.
Encourages more renewable energy adoption. Removing expiration dates for excess credits reduces the risk that customers will “lose” the value of the energy they generate, making it more attractive for new participants to install solar panels or other on-site generation.
Gives customers more flexibility and control. The option to aggregate credits indefinitely or request payment after five years lets individual customer-generators choose what works best for their situation—potentially helping schools, municipalities, or other entities with fluctuating energy use.
Could impact utility revenue and rate design. By increasing the value of net metering for customer-generators, the bill may shift some costs among utility customers and prompt utilities to revisit how rates and grid maintenance fees are structured.
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Who cares
Net-metered residential customer-generators
The bill would let them choose to carry excess-generation credits forward indefinitely to offset electricity used in later billing periods.
Farm and non-residential customer-generators
The bill would allow them to bank excess-generation credits rather than apply them only to the next bill, subject to the applicable credit rules.
Electric utilities
The bill would require them to apply accumulated credits before charging for net electricity supplied and provide five-year accountings with avoided-cost payments to eligible customer-generators.
Long Island Power Authority
The bill would expressly subject its net-metering programs to the amended rate and credit requirements for covered customer-generators.
Headline styles
Let Solar Credits Roll Over
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
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Solar Credits Roll Over
In Assembly Committee · Energy · Sponsor Steven Englebright
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3596
2019-2020 Regular Sessions
IN SENATE
February 11, 2019
Introduced by Sens. PARKER, BOYLE, 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 and the public authorities law, in relation to credit for electricity generated by a customer-generator subject to net energy metering
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 4 of section 66-j of the public service law, as amended by chapter 355 of the laws of 2009, paragraphs (b) and (c) as amended by chapter 494 of the laws of 2014, is amended to read as follows:
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 by a customer-generator, the corporation shall, after deducting, from the aggregate of unused credit for excess electricity generated by such customer-generator prior to such billing period, an amount of credit equal to the amount of electricity supplied by the electric corporation, to the extent such credit exists, and may thereafter charge the customer-generator for the net electricity supplied, after deduction of such credits, 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 customer-generator, the corporation shall (i) apply a credit to the next bill for service to the customer-generator for the net elec-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08646-01-9
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tricity 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 onsite, or (ii) at the option of the customergenerator, credit such customer-generator with the amount of excess kilowatt hours generated in excess of its use, and such credit shall be aggregated indefinitely to be used as credit against charges incurred pursuant to paragraph (a) of this subdivision; except for micro-combined heat and power or fuel cell customer-generators or farm waste generating equipment customer-generators as described in subparagraph (ix) of paragraph (a) of subdivision one of this section, who will be credited at the corporation's avoided costs. The avoided cost credit provided to micro-combined heat and power or fuel cell customer-generators or farm waste generating equipment customer-generators as described in subparagraph (ix) of paragraph (a) of subdivision one of this section shall be treated for ratemaking purposes as a purchase of electricity in the market that is includable in commodity costs.
(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 (i) promptly issue payment at its avoided cost to the customer-generator, as defined in subparagraph (i), (ii), (iv), (v) or (ix) of paragraph (a) of subdivision one of this section, for the value of any remaining credit for the excess electricity produced during the year or over the annualized period by the customer-generator, or (ii) at the option of the customer-generator, shall continue to aggregate such credits, at the same rate per kilowatt hour applicable to the service provided to other customers in the same service class which do not generate electricity on site, for an indefinite period of time and continue to allow use of such credit to offset any liability of the customer-generator to the electric corporation during billing periods in which the electricity generated by the customer-generator is less than that used by such customer.
(d) In the event that the corporation imposes charges based on kilowatt demand on customers who are in the same service class as the customer-generator but which do not generate electricity on site, the corporation may impose the same charges at the same rates to the customer-generator, provided, however, that the kilowatt demand for such demand charges is determined by the maximum measured kilowatt demand actually supplied by the corporation to the customer-generator during the billing period.
(e) In the event that a customer-generator elects to allow the aggregation of any credits for excess electricity generated, the customergenerator shall be entitled to an accounting of such credits once every five years and upon such accounting, the electric corporation shall promptly issue payment at its avoided cost to such customer-generator, as defined in subparagraph (i), (ii), (iv) or (v) of paragraph (a) of subdivision one of this section, for the value of any remaining credit for the excess electricity produced by the customer-generator.
§ 2. 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, is amended to read as follows:
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 the following requirements:
(a) In the event that the amount of electricity supplied by the corporation during the billing period exceeds the amount of electricity
S. 3596 3
provided by a customer-generator, the corporation shall, after deducting, from the aggregate of unused credit for excess electricity generated by such customer-generator prior to such billing period, an amount of credit equal to the amount of electricity supplied by the electric corporation, to the extent such credit exists, and may thereafter charge the customer-generator for the net electricity supplied, after deduction of such credits, 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.
(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 customer-generator, the corporation shall (i) apply a credit to the next bill for service to 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, or (ii) at the option of the customer-generator, credit such customer-generator with the amount of excess kilowatt hours generated in excess of its use, and such credit shall be aggregated indefinitely to be used as credit against charges incurred pursuant to paragraph (a) of this subdivision.
(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 (i) promptly issue payment at its avoided cost to a residential or farm service customer-generator for the value of any remaining credit for the excess electricity produced during the year or over the annualized period by such customer-generator, or (ii) at the option of the customergenerator, shall continue to aggregate such credits, at the same rate per kilowatt hour applicable to the service provided to other customers in the same service class which do not generate electricity on site, for an indefinite period of time, and continue to allow use of such credit to offset any liability of the customer-generator to the electric corporation during billing periods in which the electricity generated by the customer-generator is less than that used by such customer.
(d) In the event that the corporation imposes charges based on kilowatt demand on customers who are in the same service class as the customer-generator but which do not generate electricity on site, the corporation may impose the same charges at the same rates to the customer-generator, provided, however, that the kilowatt demand for such demand charges is determined by the maximum measured kilowatt demand actually supplied by the corporation to the customer-generator during the billing period.
(e) In the event that a customer-generator elects to allow the aggregation of any credits for excess electricity generated, the customergenerator shall be entitled to an accounting of such credits once every five years and upon such accounting, the electric corporation shall promptly issue payment at its avoided cost to such customer-generator for the value of any remaining credit for the excess electricity produced by the customer-generator.
§ 3. Subdivision (h) of section 1020-g of the public authorities law, as amended by chapter 546 of the laws of 2011, is amended to read as follows:
(h) To implement programs and policies designed to provide for the interconnection of: (i) (A) solar electric generating equipment owned or operated by residential customers, (B) farm waste electric generating equipment owned or operated by customer-generators, (C) solar electric generating equipment owned or operated by non-residential customers, (D)
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micro-combined heat and power generating equipment owned, leased or operated by residential customers, (E) fuel cell electric generating equipment owned, leased or operated by residential customers, and (F) micro-hydroelectric generating equipment owned, leased or operated by customer-generators and for net energy metering consistent with section sixty-six-j of the public service law, to increase the efficiency of energy end use, to shift demand from periods of high demand to periods of low demand and to facilitate the development of cogeneration; and (ii) wind electric generating equipment owned or operated by customergenerators and for net energy metering consistent with section sixtysix-l of the public service law. Notwithstanding the provisions of section one thousand twenty-s of this title, as amended by chapter three hundred eighty-eight of the laws of two thousand eleven, the authority, in its implementation of such programs and policies, shall be subject to the provisions of subdivision four of section sixty-six-j and subdivision four of section sixty-six-l of the public service law;
§ 4. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
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 and the public authorities law, in relation to credit for electricity generated by a customer-generator subject to net energy metering
Purpose or general idea of bill
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 specific provisions
Section 1 amends subdivision 4 of section 66-j of the Public Service Law, as amended by Chapter 355 of the laws of 2009.
Read the full memo (642 words)
Section 2 amends subdivision 4 of section 66-1 of the Public Service Law, as amended by Chapter 721 of the laws of 2006, paragraphs (b) and (e) as amended and paragraph (d) as added by Chapter 483 of the laws of 2003.
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 arid, 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 electric- ity generated by the customer generator at the end of the 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 at a rate lower than the retail rate.
Under this legislation, net-metered customer-generators can choose the option to carryover the credits that come from their producing energy in excess of what they use and have that credit aggregated indefinitely so as 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 the 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 logical 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 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-genera- tor the opportunity to carryover credits over a period of time longer than a year, the customer generator will be better able to take advan- tage 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-gener ators 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.
Prior legislative history
2017/18 S2696 - Referred to Energy and Telecom 2015-16: S.2878/A.3096 - Referred to Energy and Telecomm/ Passes Assem- bly 2013-14: S.2957/A.5822 - Referred to Energy and Telecomm/ Passed Assem- bly 2011-12: S.5839/A.5521 - Referred to Energy and Telecomm/ Passed Assem- bly 2009-10 A.10244A - Reported Referred to Rules
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.
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