PREFILED JAN 03 2013
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REFERENCE TITLE: net-metering; renewable energy source. |
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State of Arizona Senate Fifty-first Legislature First Regular Session 2013
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SB 1016 |
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Introduced by Senator Ableser
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AN ACT
Amending title 30, Arizona Revised Statutes, by adding chapter 2; relating to net‑metering.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 30, Arizona Revised Statutes, is amended by adding chapter 2, to read:
CHAPTER 2
NET‑METERING
ARTICLE 1. GENERAL PROVISIONS
30-301. Definitions
In this chapter, unless the context otherwise requires:
1. "Eligible Customer‑generator" means a retail customer that owns and operates or leases and operates a biomass, solar or wind electric generating facility and that meets the qualifications set forth in section 30‑302.
2. "Net‑metering" means electric energy that is generated by an electric utility customer from a net‑metering facility, that is delivered to the utility's local distribution facilities and that is used to offset electric energy provided by the electric utility to the electric utility customer during the applicable billing period.
3. "Public power entity" means any municipal corporation, city, town or other political subdivision that is organized under law, that distributes or otherwise provides electricity to retail customers in this state and that is not a public service corporation.
30-302. Applicability; eligibility
A. All public power entities serving an annual retail load of three hundred thousand megawatt hours or greater shall offer net‑metering to eligible customer‑generators. Each public power entity shall make net‑metering available to eligible customer‑generators in a timely manner and on a first come, first served basis up to five per cent of the public power entity's most recently measured annual peak load.
B. A customer‑generator is eligible to receive net‑metering under this chapter if all of the following apply:
1. The customer's biomass, solar or wind electric generating facility is:
(a) Located on the customer's premises.
(b) Interconnected and operated in parallel with an electric utility company's transmission and distribution facilities.
(c) Intended primarily to offset all or part of the customer's own electricity requirements.
2. The generating capacity of the customer‑generator's facility meets both of the following requirements:
(a) The rated capacity of the generator does not exceed one hundred twenty‑five per cent of total connected load.
(b) The rated capacity of the generator does not exceed the customer's service entrance capacity.
30-303. Net‑metering; requirements; calculation
A. The public power entity shall develop a net‑metering tariff that provides for eligible customer‑generators to be credited in kilowatt hours at a ratio of one‑to‑one for any excess production of the customer's generating facility that exceed the customer‑generator's on‑site consumption of kilowatt hours in the billing period following the billing period of excess production. Any excess kilowatt hour credits shall not reduce any fixed monthly customer charges imposed by the public power entity.
B. The public power entity shall carry forward any excess kilowatt hour credits earned under subsection A and apply those credits to subsequent billing periods to offset any eligible customer‑generator consumption in those billing periods until all credits are used or until the end of the calendar year. A public power entity that uses cycle bills shall use the December billing month as the end of the calendar year.
C. At the end of each calendar year the public power entity shall either carry forward any excess kilowatt credits for use against consumption in future months or shall compensate the eligible customer‑generator for any excess kilowatt hour credits at the public power entity's average hourly incremental cost of electricity supply over the same calendar‑year period.
30-304. Equipment
A. A customer‑generator facility used for net‑metering shall be equipped with metering equipment that can measure the flow of electricity in both directions at the same rate. For customer‑generator facilities less than ten kilowatts in rated capacity, this shall be accomplished through the use of a single, bidirectional electric revenue meter that has a single register for billing purposes.
B. An eligible customer‑generator may choose to use an existing electric revenue meter if the meter is both:
1. Capable of measuring the flow of electricity both into and out of the eligible customer‑generator's facility at the same rate and ratio.
2. Accurate to within plus or minus five per cent when measuring electricity flowing from the customer‑generator facility to the electric distribution system.
C. If the eligible customer‑generator's existing electric revenue meter does not meet the requirements of subsection B, the public power entity shall install and maintain a new revenue meter for the customer‑generator at the public power entity's expense. Any subsequent revenue meter change necessitated by the eligible customer‑generator shall be paid for by the customer‑generator.
D. The public power entity shall not require more than one meter per eligible customer‑generator. An additional meter may be installed under either of the following circumstances:
1. The public power entity may install an additional meter at its own expense with the consent of the eligible customer‑generator.
2. The eligible customer‑generator may request that the public power entity install a meter, in addition to the revenue meter specified in subsection B or C, at the customer‑generator's expense. The public power entity shall charge the customer‑generator no more than the actual cost of the meter and the installation.
30-305. Charges
A. A public power entity shall provide net‑metered eligible customer‑generators electric service at nondiscriminatory rates that are identical, with respect to rate structure, retail rate components and any monthly charges, to the rates that customer‑generators would be charged if they were not customer‑generators.
B. A public power entity shall not charge an eligible customer‑generator any fee or charge or impose any requirement that is not specifically authorized by this chapter, unless the fee, charge or other requirement would apply to other similarly situated customers who are not customer‑generators.
30-306. Right to inspect
A public power entity shall have the right to inspect an eligible customer‑generator's facility during reasonable hours and with reasonable prior notice to the customer‑generator. If the public power entity finds that the customer‑generator's facility is not in compliance with the requirements of the institute of electrical and electronics engineers 1547 standard and noncompliance adversely affects the safety or reliability of the public power entity's facilities or other customer's facilities, the public power entity may require the eligible customer‑generator to disconnect the facility until compliance is achieved.