Report Title:
Net Energy Metering; Remove System Cap; Eligible Customer-Generators
Description:
Allows the Public Utilities Commission to increase the maximum capacity
of eligible customer-generators, and the total capacity a utility must
accept, and amend rate structure and standard tariffs and contracts.
Allows accumulation of customer generators' credit for excess
electricity generated over a 12-month period. (CD1)
THE SENATE S.B. NO. 1003
TWENTY-THIRD LEGISLATURE, 2005
S.D. 2
STATE OF HAWAII H.D. 2
C.D. 1
A BILL FOR AN ACT
RELATING TO NET ENERGY METERING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 269, Hawaii Revised Statutes, is amended by adding a
new section to be appropriately designated and to read as follows:
"§269- Maximum capacity of eligible customer-generator. The
eligible customer-generator shall have a capacity of not more than
fifty kilowatts; provided that the public utilities commission may
increase the maximum allowable capacity that eligible
customer-generators may have to an amount greater than fifty kilowatts
by rule or order."
SECTION 2. Section 269-101, Hawaii Revised Statutes, is amended by
amending the definition of "eligible customer-generator" to read as
follows:
""Eligible customer-generator" means a metered residential or
commercial customer, including a government entity, of an electric
utility who owns and operates a solar, wind turbine, biomass, or
hydroelectric energy generating facility, or a hybrid system consisting
of two or more of these facilities, [with a capacity of not more than
fifty kilowatts,] that is:
(1) Located on the customer's premises;
(2) Operated in parallel with the utility's transmission and
distribution facilities;
(3) In conformance with the utility's interconnection requirements; and
(4) Intended primarily to offset part or all of the customer's own
electrical requirements."
SECTION 3. Section 269-102, Hawaii Revised Statutes, is amended to read
as follows:
"[[]§269-102[]] Standard contract or tariff; rate structure. (a)
Every electric utility shall develop a standard contract or tariff
providing for net energy metering[,] and shall make this contract
available to eligible customer-generators, upon request, on a
first-come-first-served basis until the time that the total rated
generating capacity produced by eligible customer-generators equals .5
per cent of the electric utility's system peak demand[.]; provided that
the public utilities commission may increase, by rule or order, the
total rated generating capacity produced by eligible
customer-generators to an amount above .5 per cent of the electric
utility's system peak demand.
(b) Each net energy metering contract or tariff shall be identical,
with respect to rate structure, to the contract or tariff to which the
same customer would be assigned if the customer was not an eligible
customer-generator. The charges for all retail rate components for
eligible customer-generators shall be based exclusively on the eligible
customer-generator's net kilowatt-hour consumption over a monthly
billing period. Any new or additional demand charge, standby charge,
customer charge, minimum monthly charge, interconnection charge, or
other charge that would increase an eligible customer-generator's costs
beyond those of other customers in the rate class to which the eligible
customer-generator would otherwise be assigned are contrary to the
intent of this section, and shall not form a part of net energy
metering contracts or tariffs.
(c) The public utilities commission may amend the rate structure or
standard contract or tariff by rule or order."
SECTION 4. Section 269-104, Hawaii Revised Statutes, is amended to read
as follows:
"[[]§269-104[]] Additional customer-generators. Notwithstanding
section 269-102, an electric utility is not obligated to provide net
energy metering to additional customer-generators in its service area
when the combined total peak generating capacity of all eligible
customer-generators served by all the electric utilities in that
service area furnishing net energy metering to eligible
customer-generators equals .5 per cent of the system peak demand of
those electric utilities[.]; provided that the public utilities
commission may increase, by rule or order, the allowable percentage of
the electric utility's system peak demand produced from eligible
customer-generators in the electric utility's service area, whereupon
the electric utility will be obligated to provide net energy metering
to additional eligible customer-generators in that service area up to
the increased percentage amount."
SECTION 5. Section 269-105, Hawaii Revised Statutes, is amended to read
as follows:
"[[]§269-105[]] Calculation. The net energy metering calculation
shall be made by measuring the difference between the electricity
supplied to the eligible customer-generator and [the]:
(1) The electricity generated by the eligible customer-generator and
fed back to the electric grid over a monthly billing period[.]; and
(2) Any unused credits for excess electricity from the eligible
customer-generator carried over from previous months since the last
twelve-month reconciliation period."
SECTION 6. Section 269-106, Hawaii Revised Statutes, is amended to read
as follows:
"[[]§269-106[]] Billing periods[.]; twelve-month reconciliation.
(a) Billing of net energy metering customers shall be [only] on a
monthly basis[.]; provided that the last monthly bill for each
twelve-month period shall reconcile for that twelve-month period the
net electricity provided by the electric utility with:
(1) The electricity generated by the eligible customer-generator and
fed back to the electric grid over the monthly billing period; and
(2) Any unused credits for excess electricity from the eligible
customer-generator carried over from prior months since the last
twelve-month reconciliation period.
(b) Credits for excess electricity from the eligible customer-generator
that remain unused after each twelve-month reconciliation period may
not be carried over to the next twelve-month period."
SECTION 7. Section 269-107, Hawaii Revised Statutes, is amended to read
as follows:
"[[]§269-107[]] Net electricity consumers. At the end of each
monthly billing period, where the electricity supplied during the
period by the electric utility exceeds [the electricity]:
(1) The electricity generated by the eligible customer-generator during
that same period[,]; and
(2) Any unused credits for excess electricity from the eligible
customer-generator carried over from prior months since the last
twelve-month reconciliation period,
the eligible customer-generator is a net electricity consumer and the
electric utility shall be owed compensation for the eligible
customer-generator's net kilowatt-hour consumption over that same
period. The compensation owed for the eligible customer-generator's net
monthly kilowatt-hour consumption shall be calculated at the retail
rate of the rate class the customer is normally assigned to."
SECTION 8. Section 269-108, Hawaii Revised Statutes, is amended to read
as follows:
"[[]§269-108[]] Net electricity producers[.]; excess electricity
credits and credit carry over. At the end of each monthly billing
period, where the electricity generated by the eligible
customer-generator during the month exceeds the electricity supplied by
the electric utility during that same period, the eligible
customer-generator is a net electricity producer and the electric
utility shall retain any excess kilowatt-hours generated during the
prior monthly billing period[.]; provided that the excess electricity
generated by the customer-generator, if any, in each monthly billing
period shall be carried over to the next month as a monetary value to
the credit of the eligible customer-generator, which credit may
accumulate and be used to offset the compensation owed the electric
utility for the eligible customer-generator's net kilowatt-hour
consumption for succeeding months within each twelve-month period;
provided further that the electric utility shall reconcile the eligible
customer-generator's electricity production and consumption for each
twelve-month period as set forth in section 269-106. The eligible
customer-generator shall not be owed any compensation for [those]
excess kilowatt-hours unless the electric utility enters into a
purchase agreement with the eligible customer-generator for those
excess kilowatt-hours."
SECTION 9. Section 269-109, Hawaii Revised Statutes, is amended to read
as follows:
"[[]§269-109[]] Net electricity consumption or production
information. The electric utility shall provide every eligible
customer-generator with net electricity consumption or production
information with each regular monthly bill, which shall include [the]:
(1) The current monetary balance owed the electric utility for net
electricity consumed [or,];
(2) The net electricity produced since the end of the last monthly
billing period[.]; and
(3) An accounting of the credits for excess electricity produced by the
eligible customer-generator since the last twelve-month reconciliation
period that shows credits applied to the monthly billing period and the
balance of unused credits, if any."
SECTION 10. Section 269-110, Hawaii Revised Statutes, is amended to
read as follows:
"[[]§269-110[]] Termination by eligible customer-generators. If an
eligible customer-generator terminates the customer relationship with
the electric utility, the electric utility shall reconcile the eligible
customer-generator's consumption and production of electricity [during
any part of a monthly billing], including any unused credits for excess
electricity from the eligible customer-generator carried over from
prior months, for the period following the last twelve-month
reconciliation period to the date of termination of the relationship,
according to the requirements set forth in this part."
SECTION 11. This Act does not affect rights and duties that matured,
penalties that were incurred, and proceedings that were begun, before
its effective date.
SECTION 12. Statutory material to be repealed is bracketed and
stricken. New statutory material is underscored.
SECTION 13. This Act shall take effect on July 1, 2005.