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MODEL NET METERING AND INTERCONNECTION STANDARDS FOR RENEWABLE ENERGY SYSTEMS FINAL DRAFT

MODEL NET METERING STANDARDS FOR RENEWABLE ENERGY SYSTEMS

1.0 Scope .............................................................................................................................. 1
2.0 Definitions ....................................................................................................................... 1
3.0 Net metering general provisions...................................................................................... 2
4.0 Meters and metering ....................................................................................................... 4

NET METERING STANDARDS FOR RENEWABLE ENERGY SYSTEMS

1.0 Scope

This document sets forth net metering requirements that apply to electric power suppliers, basic
generation service providers and electric distribution companies, as defined herein [and at State
administrative code section defining terms], which have residential, commercial or industrial
customers who generate less than two megawatts of electricity using renewable energy.

2.0 Definitions

The following words and terms, when used in this subchapter, shall have the following
meanings, unless the context clearly indicates otherwise.

"Annualized period" means a period of 12 consecutive monthly billing periods. A customer-
generator's first annualized period begins on the first day of the first full monthly billing period
after which the customer-generator's facility is interconnected and is generating electricity.

"Avoided cost of wholesale power" means the average locational marginal price of energy in the
applicable utility's transmission zone. This cost can be obtained through the website maintained
by [insert].

"Basic generation service" means electric generation service that is provided to any customer
that has not chosen an electric power supplier, as defined herein, whether or not the customer
has received offers for competitive supply options; including, but not limited to, any customer
that cannot obtain such service from an electric power supplier for any reason, including non-
payment for services. Basic generation service is not a competitive service and shall be fully
regulated by the PUC. An EDC, as defined herein, may provide basic generation service.

Company means an electric company operating a distribution system, also known as an
Electric Distribution Company.

Customer means any entity interconnected to the Utility Company system for the purpose of
receiving [or exporting] electric power from [or to] the Utility Company system.

"Customer-generator" means a residential, commercial or industrial customer that generates
electricity, on the customer's side of the meter.

Customer-generator facility means the equipment used by a customer-generator to generate,
manage, and monitor electricity. A customer-generator facility typically includes an electric
generator and/or an equipment package, as defined herein. Also referred to as the generating
facility or generator.

1
"Electric Distribution Company" or EDC means an electric public utility that transmits or
distributes electricity to end users within [insert State]. An EDC cannot be an electric power
supplier, but may provide basic generation service. The term public utility shall include
[DEFINITION FROM STATE PUBLIC UTILITY STATUTE OR REGULATIONS]

"Electric power supplier" means a person or entity that is duly licensed by the PUC to offer and
to assume the contractual and legal responsibility to provide electric generation service to retail
customers. This term includes load serving entities, marketers and brokers that offer or provide
electric generation service to retail customers. An electric power supplier may provide basic
generation service, as defined herein. However, the term excludes an electric public utility that
provides electric generation service only for the purpose of providing basic generation service,
as defined herein.

kW means kilowatts, a unit of power representing 1,000 watts. A kW equals 1/1000 of a MW,
as defined herein.

MW means megawatts, a unit of power representing 1,000,000 watts. A megawatt equals
1000 kW.

"Net metering" means a system of metering electricity in which the EDC or electric
supplier/provider:
1. Credits a customer-generator at the full retail rate for each kilowatt-hour produced by a
renewable energy system installed on the customer-generators side of the electric
revenue meter, up to the total amount of electricity used by that customer during an
annualized period; and
2. Compensates the customer-generator at the end of the annualized period for any
remaining credits, at a rate equal to the supplier/provider's avoided cost of wholesale
power.

PUC means the state regulatory authority over electricity utilities or any successor agency."

Renewable energy means electric energy produced from solar technologies, photovoltaic
technologies, wind energy, fuel cells powered by renewable fuels, geothermal electric
technologies, wave or tidal action, and/or methane gas from landfills or a biomass facility,
provided that the biomass is cultivated and harvested in a sustainable manner. Specific types of
renewable energy generation methods that qualify for use in meeting the requirements of this
subchapter are listed in [STATE STATUTE OR RULE SECTION DEFINING RENEWABLE
ENERGY]

Solar electric generation" means creation of electricity using a system that employs solar
radiation to produce energy that powers an electric generator. Solar electric generation includes
technologies that utilize the photovoltaic effect.

"Supplier/provider" means an electric power supplier of competitive electricity supply in a retail
competition market.

3.0 Net metering general provisions

(a) All Electric Distribution Companies (EDC) and electric supplier/providers shall offer net
metering to their residential, commercial and industrial customers that generate electricity, on

2 the customer's side of the meter, using renewable energy sources, provided that the generating
capacity of the customer-generator's facility does not exceed two megawatts, and does not
exceed the customer's peak electric needs.

(b) The EDC shall develop a tariff providing for net metering. Each supplier/provider and EDC
shall make net metering available to eligible customer-generators on a first come, first-served
basis.

(c) When the amount of electricity delivered by the customer-generator plus any kilowatt hour
credits held over from previous monthly billing periods exceed the electricity supplied by the
supplier/provider and/or EDC, the supplier/provider and/or EDC shall credit the customer-
generator for the excess kilowatt hours.
1. The customer-generator will be compensated, unless otherwise agreed upon between
the customer-generator and the supplier/provider and/or EDC, at the end of the
annualized period for any remaining credits at a rate equal to the suppliers avoided cost
of wholesale power.
2. Upon agreement between the customer-generator and the supplier/provider and/or EDC,
the customer-generator may roll over credits from a previous annualized period and be
compensated at the end of any future annualized period for any remaining credits at a
rate equal to the suppliers avoided cost of wholesale power.

(d) If a customer-generator switches electric suppliers or otherwise formally terminates net-
metering, the electric power supplier or basic generation service provider with whom service is
terminating shall treat the end of the service period as if it were the end of the annualized period
and compensate customer-generator according to 3(c)(1).

(e) Each supplier/provider or EDC shall submit an annual net metering report to the PUC. The
report shall be submitted by [insert date] of each year, and shall include the following
information for the one-year period ending [insert date] of that year:
1. The total number of customer-generator facilities;
2. The total estimated rated generating capacity of its net metering customer-generators;
3. The total estimated net kilowatt-hours received from customer-generators; and
4. The total estimated amount of energy produced by the customer-generators, which shall
be calculated using protocols approved by the PUC.

(f) A customer-generator that is eligible for net metering owns the renewable attributes of the
electricity it generates on or after [insert date], unless there is a contract with an express