Report Title:

Renewable Energy; Net Energy Metering

Description:

Provides an eligible customer-generator with the option of either a one month or a one year billing schedule; requires the electrical utility to provide compensation to net energy producers for surplus energy supplied.

THE SENATE

S.B. NO.

526

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO RENEWABLE ENERGY.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Act 272, Session Laws of Hawaii 2001, demonstrated the legislature's intent to encourage the development of renewable energy resources by, among other things, the introduction of net energy metering. Net energy metering allows a consumer with a renewable energy system (such as a photovoltaic system) to have the power produced from that system measured against the amount of electricity supplied to the consumer from the electric grid. If the amount of electrical energy provided by the renewable energy system is at least equal to the amount of energy supplied by the utility, the utility does not charge the consumer for the electricity from the utility.

The legislature finds that, despite the advantages of renewable energy, relatively few solar electric systems have been installed in Hawaii since Act 272 was enacted. The increasing cost of oil and the growing demand for electricity across the State makes the promotion of renewable energy technology even more important. Changes in the current law may provide the necessary incentive for energy customers to participate in net energy metering. Presently, an electric utility does not owe any compensation for surplus kilowatt-hours produced by a consumer under this program.

The purpose of this Act is to:

(1) Give the eligible customer-generator the option of being billed either monthly or annually; and

(2) Compensate a customer who produces surplus energy under net energy metering.

SECTION 2. Section 269-101, Hawaii Revised Statutes, is amended by amending the definition of "net energy metering" to read as follows:

""Net energy metering" means measuring the difference between the electricity supplied through the electric grid and the electricity generated by an eligible customer-generator and fed back to the electric grid over a monthly [billing] period; provided that:

(1) Net energy metering shall be accomplished using a single meter capable of registering the flow of electricity in two directions;

(2) An additional meter or meters to monitor the flow of electricity in each direction may be installed with the consent of the customer-generator, at the expense of the electric utility, and the additional metering shall be used only to provide the information necessary to accurately bill or credit the customer-generator, or to collect solar, wind turbine, biomass, or hydroelectric energy generating system performance information for research purposes;

(3) If the existing electrical meter of an eligible customer-generator is not capable of measuring the flow of electricity in two directions, the electric utility shall be responsible for all expenses involved in purchasing and installing a meter that is able to measure electricity flow in two directions;

(4) If an additional meter or meters are installed, the net energy metering calculation shall yield a result identical to that of a single meter; and

(5) An eligible customer-generator who already owns an existing solar, wind turbine, biomass, or hydroelectric energy generating facility, or a hybrid system consisting of two or more of these facilities, is eligible to receive net energy metering service in accordance with this part."

SECTION 3. Section 269-105, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-105[]] Calculation. The net energy metering calculation shall be made by measuring the difference between the electricity supplied to the eligible customer-generator and the electricity generated by the eligible customer-generator and fed back to the electric grid over a monthly [billing] period."

SECTION 4. Section 269-106, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-106[]] Billing periods. Billing of net metering customers shall be [only] on a monthly or an annual basis[.], at the election of the eligible customer-generator."

SECTION 5. Section 269-107, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-107[]] Net electricity consumers. [At] If at the end of each [monthly] billing period, [where] the electricity supplied during the period by the electric utility exceeds the electricity generated by the eligible customer-generator during that same period, the eligible customer-generator is a net electricity consumer and the electric utility shall be owed compensation for the eligible customer-generator's net kilowatt-hour consumption over that same period. The compensation owed for the eligible customer-generator's net monthly kilowatt-hour consumption shall be calculated at the retail rate of the rate class the customer is normally assigned to."

SECTION 6. Section 269-108, Hawaii Revised Statutes, is amended to read as follows:

"[[]§269-108[]] Net electricity producers. [At] If at the end of each [monthly] billing period, [where] the electricity generated by the eligible customer-generator during the [month] billing period exceeds the electricity supplied by the electric utility during that same period, the eligible customer-generator is a net electricity producer and [the electric utility shall retain any excess kilowatt-hours generated during the prior monthly billing period. The eligible customer-generator] shall [not] be owed [any] compensation for those excess kilowatt-hours [unless the electric utility enters into a purchase agreement with the eligible customer-generator for those excess kilowatt-hours.] by the utility. The compensation owed by the electric utility for the eligible customer-generator's net kilowatt-hour production shall be calculated at the retail rate of the rate class to which the customer is normally assigned."

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval.

INTRODUCED BY:

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