AN
ACT Relating to net metering for certain renewable energy systems; and adding a
new chapter to Title 80 RCW.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that it is in the public interest to:
(1)
Encourage private investment in renewable energy resources;
(2)
Stimulate the economic growth of this state; and
(3)
Enhance the continued diversification of the energy resources used in this
state.
NEW
SECTION. Sec. 2. The
definitions in this section apply throughout this chapter unless the context
clearly indicates otherwise.
(1)
"Commission" means the utilities and transportation commission.
(2)
"Customer-generator" means a user of a net metering system.
(3)
"Electrical company" means a company owned by investors that meets
the definition of RCW 80.04.010.
(4)
"Electric cooperative" means a cooperative or association organized
under chapter 23.86 or 24.06 RCW.
(5)
"Electric utility" means any electrical company, public utility
district, irrigation district, port district, electric cooperative, or
municipal electric utility that is engaged in the business of distributing
electricity to retail electric customers in the state.
(6)
"Irrigation district" means an irrigation district under chapter
87.03 RCW.
(7)
"Municipal electric utility" means a city or town that owns or
operates an electric utility authorized by chapter 35.92 RCW.
(8)
"Net metering" means measuring the difference between the electricity
supplied by an electric utility and the electricity generated by a
customer-generator that is fed back to the electric utility over the applicable
billing period.
(9)
"Net metering system" means a facility for the production of
electrical energy that:
(a)
Uses as its fuel either solar, wind, or hydropower;
(b)
Has a generating capacity of not more than twenty-five kilowatts;
(c)
Is located on the customer-generator's premises;
(d)
Operates in parallel with the electric utility's transmission and distribution
facilities; and
(e)
Is intended primarily to offset part or all of the customer-generator's
requirements for electricity.
(10)
"Port district" means a port district within which an industrial
development district has been established as authorized by Title 53 RCW.
(11)
"Public utility district" means a district authorized by chapter
54.04 RCW.
NEW
SECTION. Sec. 3. An
electric utility:
(1)
Shall offer to make net metering available to eligible customers-generators on
a first-come, first-served basis until the cumulative generating capacity of
net metering systems equals 0.1 percent of the utility's peak demand during
1996;
(2)
Shall allow net metering systems to be interconnected using a standard
kilowatt-hour meter capable of registering the flow of electricity in two
directions, unless the commission, in the case of an electrical company, or the
appropriate governing body, in the case of other electric utilities,
determines, after appropriate notice and opportunity for comment:
(a)
That the use of additional metering equipment to monitor the flow of
electricity in each direction is necessary and appropriate for the
interconnection of net metering systems, after taking into account the benefits
and costs of purchasing and installing additional metering equipment; and
(b)
How the cost of purchasing and installing an additional meter is to be
allocated between the customer-generator and the utility;
(3)
Shall charge the customer-generator a minimum monthly fee that is the same as
other customers of the electric utility in the same rate class, but shall not
charge the customer-generator any additional standby, capacity,
interconnection, or other fee or charge unless the commission, in the case of
an electrical company, or the appropriate governing body, in the case of other
electric utilities, determines, after appropriate notice and opportunity for
comment that:
(a)
The electric utility will incur direct costs associated with interconnecting or
administering net metering systems that exceed any offsetting benefits
associated with these systems; and
(b)
Public policy is best served by imposing these costs on the customer-generator
rather than allocating these costs among the utility's entire customer base.
NEW
SECTION. Sec. 4.
Consistent with the other provisions of this chapter, the net energy
measurement must be calculated in the following manner:
(1)
The electric utility shall measure the net electricity produced or consumed
during the billing period, in accordance with normal metering practices.
(2)
If the electricity supplied by the electric utility exceeds the electricity
generated by the customer-generator and fed back to the electric utility during
the billing period, the customer-generator shall be billed for the net
electricity supplied by the electric utility, in accordance with normal
metering practices.
(3)
If electricity generated by the customer-generator exceeds the electricity
supplied by the electric utility, the customer-generator:
(a)
Shall be billed for the appropriate customer charges for that billing period,
in accordance with section 3 of this act; and
(b)
Shall be 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.
At
the beginning of each calendar year, any remaining unused kilowatt-hour credit
accumulated during the previous year shall be granted to the electric utility,
without any compensation to the customer-generator.
NEW
SECTION. Sec. 5. (1) A
net metering system used by a customer-generator shall include, at the
customer-generator's own expense, all equipment necessary to meet applicable
safety, power quality, and interconnection requirements established by the
national electrical code, national electrical safety code, the institute of
electrical and electronics engineers, and underwriters laboratories.
(2)
The commission, in the case of an electrical company, or the appropriate
governing body, in the case of other electric utilities, after appropriate
notice and opportunity for comment, may adopt by regulation additional safety,
power quality, and interconnection requirements for customer-generators that
the commission determines are necessary to protect public safety and system
reliability.
NEW
SECTION. Sec. 6.
Sections 1 through 5 of this act constitute a new chapter in Title 80 RCW.
