Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Technology & Economic Development Committee

HB 2510

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 Summary of Bill

Increases the maximum capacity of systems eligible for net metering to 1,000 kilowatts.
Requires an electric utility to offer to make net metering available to eligible customer-generators until the cumulative generating capacity of net metering systems equals 0.5 percent of the utility's peak demand during 2006.
Authorizes the Department of Commerce and the Washington State University Extension Energy Program to coordinate to provide technical assistance to small utilities for the purpose of implementing net metering.

Background:

An electric utility must offer to make net metering available to eligible customer-generators on a first-come, first-served basis until the cumulative generating capacity of net metering systems equals 0.5 percent of the utility's peak demand during 1996. Not less than one-half of the utility's 1996 peak demand available for net metering systems must be reserved for the cumulative generating capacity attributable to net metering systems that generate renewable energy.

"Net metering system" means a fuel cell, a combined heat and power facility, or a renewable energy generation facility that:

has an electrical generating capacity of not more than 100 kilowatts;
is located on the customer-generator's premises;
operates in parallel with the electric utility's transmission and distribution facilities; and
is intended primarily to offset part or all of the customer-generator's requirements for electricity.

Summary of Bill:

An electric utility must offer to make net metering available to eligible customer-generators on a first-come, first-served basis until the cumulative generating capacity of net metering systems equals 0.5 percent of the utility's peak demand during 2006. Not less than one-half of the utility's 2006 peak demand available for net metering systems must be reserved for the cumulative generating capacity attributable to net metering systems that generate renewable energy.

A net metering system must have an electrical generating capacity of not more than 1,000 kilowatts and must be sized appropriately for the customer-generator's specific rate class.

The Department of Commerce and the Washington State University Extension Energy Program may coordinate to provide technical assistance to small utilities for the purpose of implementing net metering.