N.Y. Public Service Law § 66-j: Net energy metering for residential solar, farm waste, non-residential solar electric generating systems, micro-combined heat and power g...

§ 66-j. Net energy metering for residential solar, farm waste,

non-residential solar electric generating systems, micro-combined heat

and power generating equipment, fuel cell electric generating equipment,

fuel-flexible linear generator electric generating equipment, and

micro-hydroelectric generating equipment. 1. Definitions. As used in

this section, the following terms shall have the following meanings:

(a) "Customer-generator" means: (i) a residential customer of an

electric corporation, who owns or operates solar electric generating

equipment located and used at his or her residence; (ii) a customer of

an electric corporation, who owns or operates farm waste electric

generating equipment located and used at his or her "farm operation," as

such term is defined in subdivision eleven of section three hundred one

of the agriculture and markets law; (iii) a non-residential customer of

an electric corporation which owns or operates solar electric generating

equipment located and used at its premises; (iv) a residential customer

of an electric corporation who owns, leases or operates micro-combined

heat and power generating equipment located on the customer's premises;

(v) a residential customer of an electric corporation who owns, leases

or operates fuel cell generating equipment or fuel-flexible linear

generator electric generating equipment located on the customer's

premises; and (vi) a non-residential customer of an electric corporation

who owns, leases or operates fuel cell generating equipment or

fuel-flexible linear generator electric generating equipment located and

used at the customer's premises; (vii) a residential customer of an

electric corporation, who owns or operates micro-hydroelectric

generating equipment located and used at his or her residence; (viii) a

non-residential customer of an electric corporation which owns or

operates micro-hydroelectric generating equipment located and used at

its premises; and (ix) a non-residential customer of an electric

corporation which owns or operates farm waste electric generating

equipment located and used at its premises.

(b) "Net energy meter" means a meter that measures the reverse flow of

electricity to register the difference between the electricity supplied

by an electric corporation to the customer-generator and the electricity

provided to the corporation by that customer-generator.

(c) "Net energy metering" means the use of a net energy meter to

measure, during the billing period applicable to a customer-generator,

the net amount of electricity supplied by an electric corporation and

provided to the corporation by a customer-generator.

(d) "Solar electric generating equipment" means a photovoltaic system

(i) (A) in the case of a residential customer (other than a farm

utilizing a residential meter), with a rated capacity of not more than

twenty-five kilowatts; (B) in the case of a customer who owns or

operates a farm operation as such term is defined in subdivision eleven

of section three hundred one of the agriculture and markets law

utilizing a residential meter with a rated capacity of not more than one

hundred kilowatts; and (C) in the case of a non-residential customer,

with a rated capacity of not more than two thousand kilowatts; and (ii)

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, and that is

operated in compliance with any standards and requirements established

under this section.

(e) "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 with a rated capacity of not more than

two thousand kilowatts, that is:

(i) manufactured, installed, and operated in accordance with

applicable government and industry standards;

(ii) connected to the electric system and operated in conjunction with

an electric corporation's transmission and distribution facilities;

(iii) operated in compliance with any standards and requirements

established under this section;

(iv) 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 waste;

and

(v) 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.

(f) "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, fuel-flexible linear generator, or other technology, with a

rated capacity of at least one kilowatt and not more than ten kilowatts

electric and any thermal output that at full load has a design total

fuel use efficiency in the production of heat and electricity of not

less than eighty percent, and annually produces at least two thousand

kilowatt hours of useful energy in the form of electricity 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.

(g) "Fuel cell electric generating equipment" means:

(i)(A) in the case of a residential customer, a solid oxide, molten

carbonate, proton exchange membrane or phosphoric acid fuel cell with a

combined rated capacity of not more than ten kilowatts; and (B) in the

case of a non-residential customer, a solid oxide, molten carbonate,

proton exchange membrane or phosphoric acid fuel cell with a combined

rated capacity of not more than two thousand kilowatts; and

(ii) 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, and that is operated in

compliance with any standards and requirements established under this

section.

(h) "Micro-hydroelectric generating equipment" means a hydroelectric

system (i) (A) in the case of a residential customer, with a rated

capacity of not more than twenty-five kilowatts; and (B) in the case of

a non-residential customer, with a rated capacity of not more than two

thousand kilowatts; and (ii) 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, and that is operated in compliance with any standards and

requirements established under this section.

(i) "Fuel-flexible linear generator electric generating equipment" or

"fuel-flexible linear generator" means an integrated system consisting

of oscillators, cylinders, electricity conversion equipment and

associated balance of plant components that directly convert the linear

motion of the oscillators into electricity and which has a combined

rated capacity of not more than two thousand kilowatts.

(j) "Flexible interconnection" means the use of smart-grid technology

to monitor and actively manage distributed energy resources.

2. Interconnection and net energy metering. An electric corporation

shall provide for the interconnection of solar and farm waste electric

generating equipment, micro-combined heat and power generating

equipment, fuel cell electric generating equipment, fuel-flexible linear

generator electric generating equipment and micro-hydroelectric

generating equipment owned or operated by a customer-generator and for

net energy metering, 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 under this section.

2-a. Flexible interconnection. (a) The commission shall direct

electric corporations to develop proposals for a flexible

interconnection program to be established in the state. Such proposals

shall demonstrate how to implement flexible interconnection without

increasing costs to ratepayers of distributed renewable energy resources

or increasing the cost of maintaining and operating the distribution

system. The commission shall solicit public comments on the electric

corporation proposals.

(b) Upon review of the proposals and comments received, if the

commission determines there is a viable proposal that would not

meaningfully increase costs to ratepayers or the cost of maintaining and

operating the distribution system, the commission shall commence a

proceeding to develop such a proposal and establish guidelines and

timelines for the implementation of flexible interconnection procedures.

3. Conditions of service. (a) (i) 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

reasonable rates, terms and conditions for net energy metering to

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.

(ii) On or before three months after the effective date of this

subparagraph, each electric corporation shall develop a model contract

and file a schedule that establishes consistent and reasonable rates,

terms and conditions for net energy metering to non-residential customer

generators, according to the requirements of this section. The

commission shall render a decision within three months of the date on

which the schedule is filed.

(iii) Each electric corporation shall make such contract and schedule

available to customer-generators on a first come, first served basis,

until the total rated generating capacity for solar and farm waste

electric generating equipment, micro-combined heat and power generating

equipment, fuel cell electric generating equipment, fuel-flexible linear

generator electric generating equipment and micro-hydroelectric

generating equipment owned, leased or operated by customer-generators in

the corporation's service area is equivalent to one percent of the

corporation's electric demand for the year two thousand five, as

determined by the department.

(b) Nothing in this subdivision shall prohibit a corporation from

providing net energy metering to additional customer-generators. The

commission shall have the authority, after January first, two thousand

twelve, to increase the percent limits if it determines that additional

net energy metering is in the public interest.

(c) 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:

(i) In the case of a customer-generator who owns or operates solar

electric generating equipment, micro-combined heat and power generating

equipment, fuel cell electric generating equipment, fuel-flexible linear

generator electric generating equipment or micro-hydroelectric

generating equipment located and used at his or her residence, or a

non-residential customer-generator who owns or operates solar electric

generating equipment with a rated capacity of not more than twenty-five

kilowatts, up to a maximum amount of three hundred fifty dollars;

(ii) In the case of a customer-generator who owns or operates farm

waste electric generating equipment located and used at his or her "farm

operation," up to a total amount of five thousand dollars per "farm

operation"; and

(iii) In the case of a non-residential customer-generator who owns or

operates solar electric generating equipment or fuel cell electric

generating equipment or fuel-flexible linear generator electric

generating equipment or micro-hydroelectric generating equipment or farm

waste generating equipment as described in subparagraph (ix) of

paragraph (a) of subdivision one of this section, with a rated capacity

of more than twenty-five kilowatts located and used at its premises,

such cost shall be as determined by the electric corporation subject to

review, upon the request of such customer-generator, by the department.

(d) An electric corporation shall impose no other charge or fee,

including back-up, stand by and demand charges, for the provision of net

energy metering to a customer-generator, except as provided in paragraph

(d) of subdivision four of this section.

(e) A customer who owns or operates a farm operation as such term is

defined in subdivision eleven of section three hundred one of the

agriculture and markets law, or a non-residential customer-generator as

defined by subparagraph (iii) of paragraph (a) of subdivision one of

this section that locates solar electric generating equipment or farm

waste electric generating equipment with a net energy meter on property

owned or leased by such customer-generator may designate all or a

portion of the net metering credits generated by such equipment to

meters at any property owned or leased by such customer-generator within

the service territory of the same electric corporation to which the

customer-generator's net energy meters are interconnected and being

within the same load zone as determined by the location based marginal

price as of the date of initial request by the customer-generator to

conduct net metering. The electric corporation will credit the accounts

of the customer by applying any credits to the highest use meter first,

then subsequent highest use meters until all such credits are attributed

to the customer. Any excess credits shall be carried over to the

following month.

(f) A customer who owns or operates a farm operation as such term is

defined in subdivision eleven of section three hundred one of the

agriculture and markets law, or a non-residential customer-generator as

defined by subparagraph (viii) of paragraph (a) of subdivision one of

this section that locates micro-hydroelectric generating equipment with

a net energy meter on property owned or leased by such

customer-generator may designate all or a portion of the net metering

credits generated by such equipment to meters at any property owned or

leased by such customer-generator within the service territory of the

same electric corporation to which the customer-generator's net energy

meters are interconnected and being within the same load zone as

determined by the location based marginal price as of the date of

initial request by the customer-generator to conduct net metering. The

electric corporation will credit the accounts of the customer by

applying any credits to the highest use meter first, then subsequent

highest use meters until all such credits are attributed to the

customer. Any excess credits shall be carried over to the following

month.

(g) A customer who owns or operates a farm operation as such term is

defined in subdivision eleven of section three hundred one of the

agriculture and markets law, or a non-residential customer-generator as

defined by subparagraph (viii) of paragraph (a) of subdivision one of

this section that locates fuel cell electric generating equipment or

fuel-flexible linear generator electric generating equipment with a net

energy meter on property owned or leased by such customer-generator may

designate all or a portion of the net metering credits generated by such

equipment to meters at any property owned or leased by such

customer-generator within the service territory of the same electric

corporation to which the customer-generator's net energy meters are

interconnected and being within the same load zone as determined by the

location based marginal price as of the date of initial request by the

customer-generator to conduct net metering. The electric corporation

will credit the accounts of the customer by applying any credits to the

highest use meter first, then subsequent highest use meters until all

such credits are attributed to the customer. Any excess credits shall be

carried over to the following month.

(h) A non-residential customer-generator as defined by subparagraph

(ix) of paragraph (a) of subdivision one of this section that locates

farm waste generating equipment with a net meter on property owned or

leased by such customer-generator may designate all or a portion of the

net metering credits generated by such equipment to meters at any

property owned or leased by such customer-generator within the service

territory of the same electric corporation to which the

customer-generator's net energy meters are interconnected and being

within the same load zone as determined by the location based marginal

price as of the date of initial request by the customer-generator to

conduct net metering. The electric corporation will credit the accounts

of the customer by applying any credits to the highest use meter first,

then subsequent highest use meters until all such credits are attributed

to the customer. Any excess credits shall be carried over to the

following month.

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 charge the

customer-generator 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 customer-generator, the corporation shall 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 onsite, except for micro-combined heat and

power or fuel cell or fuel-flexible linear generator 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 or

fuel-flexible linear generator 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

promptly issue payment at its avoided cost to the customer-generator, as

defined in subparagraph (i), (ii) 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.

(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.

5. Safety standards. (a) 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 residential solar or farm waste electric generating

equipment, micro-combined heat and power generating equipment and fuel

cell electric generating equipment, fuel-flexible linear generator

electric generating equipment and micro-hydroelectric 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:

(i) equipment necessary to isolate automatically the residential

solar, farm waste, micro-combined heat and power and fuel cell electric

generating system and fuel-flexible linear generator electric generating

equipment and micro-hydroelectric generating equipment from the utility

system for voltage and frequency deviations; and

(ii) a manual lockable disconnect switch provided by the

customer-generator which shall be located on the outside of the

customer's premises and externally accessible for the purpose of

isolating the residential solar and farm waste electric generating

equipment and micro-hydroelectric generating equipment.

(b) Upon its own motion or upon a complaint, the commission, or its

designated representative, may investigate and make a determination as

to the reasonableness and necessity of the standards or responsibility

for compliance with the standards.

(i) In the case of a customer-generator who owns or operates solar

electric generating equipment located and used at his or her residence;

an electric corporation may not require a customer-generator to comply

with additional safety or performance standards, perform or pay for

additional tests, or purchase additional liability insurance provided

that the residential solar or farm waste electric generating equipment,

micro-combined heat and power generating equipment, fuel cell electric

generating equipment, fuel-flexible linear generator electric generating

equipment or micro-hydroelectric generating equipment meets the safety

standards established pursuant to this paragraph.

(ii) In the case of a customer-generator who owns or operates farm

waste electric generating equipment located and used at his or her "farm

operation," an electric corporation may not require a customer-generator

to comply with additional safety or performance standards, perform or

pay for additional tests, or purchase additional liability insurance

provided that:

1. the electric generating equipment meets the safety standards

established pursuant to this paragraph; and

2. the total rated generating capacity (measured in kW) of farm waste

electric generating equipment that provides electricity to the electric

corporation through the same local feeder line, does not exceed twenty

percent of the rated capacity of that local feeder line.

(iii) In the event that the total rated generating capacity of farm

waste electric generating equipment that provides electricity to the

electric corporation through the same local feeder line exceeds twenty

percent of the rated capacity of the local feeder line, the electric

corporation may require the customer-generator to comply with reasonable

measures to ensure safety of that local feeder line.

5-a. Safety standards; non-residential solar electric generating

equipment and micro-hydroelectric generating equipment. (a) On or before

three months after the effective date of this subdivision, each electric

corporation shall establish standards that are necessary for net energy

metering and the interconnection of non-residential solar electric

generating equipment or micro-hydroelectric 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:

(i) equipment necessary to isolate automatically the solar generating

system or micro-hydroelectric generating equipment from the utility

system for voltage and frequency deviations; and

(ii) a manual lockable disconnect switch provided by the

customer-generator which shall be located on the outside of the

customer-generator's premises and externally accessible for the purpose

of isolating the solar electric generating equipment or

micro-hydroelectric generating equipment.

(b) In the event that the total rated generating capacity of solar

electric generating equipment or micro-hydroelectric generating

equipment that provides electricity to the electric corporation through

the same local feeder line exceeds twenty percent of the rated capacity

of the local feeder line, the electric corporation may require the

customer-generator to comply with reasonable measures to ensure safety

of the local feeder line.

(c) Unless otherwise determined to be necessary by the commission, an

electric corporation may not require a customer-generator to comply with

additional safety or performance standards, perform or pay for

additional tests, or purchase additional liability insurance provided

that the solar electric generating equipment or micro-hydroelectric

generating equipment meets the safety standards established pursuant to

this subdivision.

(d) Upon its own motion or upon a complaint, the commission, or its

designated representative, may investigate and make a determination as

to the reasonableness and necessity of the standards or responsibility

for compliance with the standards.

6. Electric restructuring. Notwithstanding the provisions of this

section, including, but not limited to paragraph (b) of subdivision

three of this section, a customer-generator shall comply with any

applicable determinations of the commission relating to restructuring of

the electric industry.

6-a. Distributed energy resource capacity expansion. The commission

shall consider opportunities for proactive distribution upgrades that

create distributed energy resource hosting capacity as part of its

energy system planning. The commission shall take into account

affordability, grid reliability, customer service goals, and costs.

7. Severability of provisions. The provisions of this section shall be

severable and if the application of any clause, sentence, paragraph,

subdivision, section, or part thereof to any person or circumstance

shall be adjudged by any court of competent jurisdiction to be invalid,

such judgment shall not necessarily affect, impair, or invalidate the

application of any such clause, sentence, paragraph, subdivision,

section, part or remainder thereof, as the case may be, to any other

person, circumstance, but shall be confined in its operation to the

clause, sentence, paragraph, subdivision, section or part thereof

directly involved in the controversy in which such judgment shall have

been rendered.