BILL REQ. #: H-1373.4
State of Washington | 63rd Legislature | 2013 Regular Session |
READ FIRST TIME 02/22/13.
AN ACT Relating to net metering of electricity; and amending RCW 80.60.010, 80.60.020, and 80.60.030.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 80.60.010 and 2007 c 323 s 1 are each amended to read
as follows:
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. A
customer-generator is responsible to the electric utility for the
interconnection, operation, and maintenance of a net metered system.
(3) "Electrical company" means a company owned by investors that
meets the definition of RCW 80.04.010. A third-party owner is not an
electrical company.
(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) "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.
(8) "Municipal electric utility" means a city or town that owns or
operates an electric utility authorized by chapter 35.92 RCW.
(9) "Net metering" means measuring the difference between the
electricity supplied by an electric utility and the electricity
generated by a customer-generator over the applicable billing period.
(10) "Net metering system" means a fuel cell, a facility that
produces electricity and used and useful thermal energy from a common
fuel source, or a facility for the production of electrical energy that
generates renewable energy, and that:
(a) Has an electrical generating capacity of not more than one
hundred ninety-nine kilowatts;
(b) Has an electrical generating capacity of not more than one
hundred ninety-nine kilowatts when used by a customer-generator for
meter aggregation;
(c) Is located on the customer-generator's premises;
(((c))) (d) Operates in parallel with the electric utility's
transmission and distribution facilities; and
(((d))) (e) Is intended primarily to offset part or all of the
customer-generator's requirements for electricity.
(11) "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.
(12) "Port district" means a port district within which an
industrial development district has been established as authorized by
Title 53 RCW.
(13) "Public utility district" means a district authorized by
chapter 54.04 RCW.
(14) "Renewable energy" means energy generated by a facility that
uses water, wind, solar energy, or biogas from animal waste as a fuel.
(15) "Third-party owner" means an entity that owns a net metering
system located on the premises of a customer-generator and has entered
into a contract with the customer-generator for provision of power from
the net metering system. A third-party owner may not resell the
electricity produced from the net metering system.
Sec. 2 RCW 80.60.020 and 2007 c 323 s 2 are each amended to read
as follows:
(1) An electric utility:
(a) 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 0.25
percent of the utility's peak demand during 1996. On ((January 1,
2014)) the effective date of this section, the cumulative generating
capacity available to net metering systems will equal 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 shall be
reserved for the cumulative generating capacity attributable to net
metering systems that generate renewable energy;
(b) 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:
(i) 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
(ii) How the cost of purchasing and installing an additional meter
is to be allocated between the customer-generator and the utility;
(c) 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:
(i) 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
(ii) 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.
(2) If a production meter and software is required by the electric
utility to provide meter aggregation under RCW 80.60.030(4), the
customer-generator is responsible for the purchase of the production
meter and software.
Sec. 3 RCW 80.60.030 and 2007 c 323 s 3 are each amended to read
as follows:
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 RCW 80.60.020; 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.
(4) If a customer-generator requests, an electric utility shall
provide meter aggregation.
(a) For a customer-generator((s)) participating in meter
aggregation, kilowatt-hour((s)) credits earned by a net metering system
during the billing period first shall be used to offset electricity
supplied by the electric utility.
(b) ((Not more than a total of)) A net metering system of not more
than one hundred ninety-nine kilowatts shall be aggregated among all
the meters of a customer-generator((s)) participating in ((a generating
facility)) meter aggregation under this subsection.
(c) Excess kilowatt-hour((s)) credits earned by the net metering
system, during the same billing period, shall be credited equally by
the electric utility to remaining meters located on all premises of a
customer-generator at the designated rate of each meter.
(d) Meters so aggregated shall not change rate classes due to meter
aggregation under this section.
(5) On August 31st of each calendar year for hydroelectric power
and on April 30th of each calendar year for all other technologies, 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.
(6) If a customer-generator has entered into a contract with a
third-party owner for the provision of power from a net metering
system, the electric utility maintains the net metering relationship
with the customer generator.
(7) If an electrical company submits a request to the commission or
an electric utility that is not an electrical company submits a request
to its governing board seeking to recover costs as a result of net
metered systems, the commission or the governing board must examine
both the system-wide costs and system-wide benefits of net metered
systems in order to ensure that these costs and benefits are equitably
distributed to customer-generators and ratepayers, while maintaining
the value of net metering to the participating customer-generator.