Brief Description: Allowing for the net meter aggregation of electricity.

Sponsors: By House Committee on Technology, Energy & Communications (originally sponsored by Representatives McCoy, Crouse, Grant and Blake).

House Committee on Technology, Energy & Communications
Senate Committee on Water, Energy & Telecommunications

Background:

Net Metering of Electricity.
Net metering means measuring the difference between the electricity supplied by an electric utility and the electricity generated by a net metering system customer-generator over an applicable billing period.

A net metering system is defined as either a fuel cell, a facility that produces electricity and useful thermal energy from a common fuel source, or a facility for the production of electrical energy that generates renewable energy. Renewable energy is defined as energy generated by a facility that uses water, wind, solar energy, or biogas from animal waste as a fuel.

Net Metering System.
A net metering system must: (1) have an electrical generating capacity of not more than 100 kilowatts; (2) be located on the customer-generator's premises; (3) operate in parallel with the electric utility's transmission and distribution facilities; and (4) be intended primarily to offset part or all of the customer-generator's requirements for electricity.

Calculating Net Energy.
An electric utility measures the net electricity produced or consumed during the billing period, in accordance with normal metering practices. If the electricity supplied by the electric utility exceeds the electricity generated by the customer-generator during the billing period, the customer-generator is billed for the net electricity supplied by the electric utility. If electricity generated by the customer-generator exceeds the electricity supplied by the electric utility, the customer-generator is billed for the appropriate customer charges for that billing period and is credited for the excess kilowatt-hours generated during the billing period, with this kilowatt-hour credit appearing on the bill for the following billing period.

Summary:

Meter Aggregation.
Electric utilities are required to provide meter aggregation for net metering customer-generators within their service territory upon request by the customer-generator.

Calculating Net Energy from Aggregated Meters.
Kilowatt-hours credits earned by a net metering system during the billing period must be used first to offset electricity supplied by the electric utility. Excess kilowatt-hours credits earned by the net metering system, during the same billing period, are credited equally by the electric utility to remaining meters located on all premises of a customer-generator at the designated rate of each meter. Not more than a total of 100 kilowatts shall be aggregated among all customer-generators participating in a generating facility.

Definitions.
"Meter aggregation" means the administrative combination of readings from and billing for all meters, regardless of the rate class, on premises owned or leased by a customer-generator located within the service territory of a single electric utility.

"Premises" means any residential property, commercial real estate, or lands, owned or leased by a customer-generator within the service area of a single electric utility.

Votes on Final Passage:

House   91   5
Senate   47   0   (Senate amended)
House   94   4   (House concurred)

Effective: July 22, 2007