| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Technology, Energy & Communications Committee | |
HB 1140
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Allowing for the net meter aggregation of electricity.
Sponsors: Representatives McCoy, Crouse, Grant and Blake.
Brief Summary of Bill |
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Hearing Date: 1/24/07
Staff: Scott Richards (786-7156).
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.
Under current law, 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: have an electrical generating capacity of not more than 100
kilowatts; be located on the customer-generator's premises; operate in parallel with the electric
utility's transmission and distribution facilities; and 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 of Bill:
Electric utilities are required to provide meter aggregation for net metering customer-generators
within their service territory upon request by the customer-generator.
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.
In calculating the bill of a customer-generator, kilowatt-hours generated by a net metering system
during a billing period are used first to offset electricity supplied by the electric utility.
Excess kilowatt-hours generated 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.
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.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.