Net Energy Metering

Amends Hawaii's net energy metering law.  Increases amount of
capacity that must be allowed from 0.1% to 3% of peak demand.
Establishes certain requirements for contracts.  Limits charges
that may be imposed.  Provides more detailed requirements for
making net energy metering calculation.

THE SENATE                              S.B. NO.           205
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds and declares that a
 2 program to provide net energy metering for eligible customer-
 3 generators is one way to encourage private investment in
 4 renewable energy resources, stimulate in-state economic growth,
 5 enhance the continued diversification of Hawaii's energy resource
 6 mix, and reduce interconnection and administrative costs for
 7 electric service providers.  The purpose of this Act is to amend
 8 Hawaii's net energy metering law to accomplish these goals.
 9      SECTION 2.  Section 269-16.21, Hawaii Revised Statutes, is
10 amended to read as follows:
11      "[[]269-16.21[]]  Net energy metering.(a)  [Every
12 electric utility in the State that offers residential electrical
13 service shall develop a standard contract or tariff providing for
14 net energy metering, and shall make this contract available to
15 eligible customer-generators on a first-come, first-served basis
16 until such time as the total rated generated capacity owned and
17 operated by eligible customer-generators in each utility's
18 service areas equals 0.1 per cent of the utility's peak demand.
19      (b)  Each eligible customer-generator meeting the criteria

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 1 of subsection (a) shall be entitled to net energy metering,
 2 calculated as follows:
 3      (1)  The customer-generator shall be billed for the energy
 4           supplied by the utility at the utility-approved retail
 5           rate, less an amount equal to the amount of energy
 6           generated by the customer over the applicable billing
 7           period, multiplied by a rate set by the commission
 8           based on the incremental cost to the utility of
 9           alternative electric energy.
10      (2)  Where the amount in paragraph (1) is positive, the
11           customer-generator shall be billed by the utility.
12           Where the amount is negative, the customer-generator
13           shall be credited by the utility.
14      (c)  A utility, with the consent of the eligible customer-
15 generator, may annualize the period during which the net energy
16 measurement is calculated.
17      (d)  In the event of disputes between a utility and an
18 eligible customer-generator, either party may request a
19 determination of the disputed issue by the commission.
20      (e)  The electric utility shall have the right to deny
21 interconnection with an eligible customer-generator if the
22 interconnection will directly result in degradation of service.
23      (f)  The electric utility shall have the right to prevent

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 1 electric energy flow into the system by the customer-generator if
 2 the customer-generator's facilities are not in compliance with
 3 the electric utility's interconnection requirements.  The
 4 interconnection will be reinstated upon remediation by the
 5 customer-generator within a reasonable period.  Repeated
 6 violations within a one-year period may be grounds for
 7 termination of the interconnection agreement.] As used in this
 8 section:
 9      "Eligible customer-generator" means a customer of an
10 electric service provider, who uses a solar-electric generating
11 facility with a capacity of not more than two hundred-fifty
12 kilowatts that is located on the customer's premises, is
13 interconnected and operates in parallel with the electric grid,
14 and is intended primarily to offset part or all of the customer's
15 own electrical requirements.
16      "Net energy metering" means measuring the difference between
17 the electricity supplied to the eligible customer-generator and
18 the electricity generated and fed back to the electric grid by
19 the eligible customer-generator over an annual billing period.
20      (b)  Every electric service provider shall develop a
21 standard contract or tariff providing for net energy metering and
22 shall make this contract available to eligible customer-
23 generators, upon request, on a first-come, first-served basis

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 1 until the time that the total rated generating capacity used by
 2 eligible customer-generators, in each electric service provider's
 3 area, equals three per cent of the electric service provider's
 4 peak electricity demand.
 5      (c)  Each net energy metering contract or tariff shall be
 6 identical, with respect to rate structure, all retail rate
 7 components, and any monthly charges, to the contract or tariff to
 8 which the same customer would choose or be assigned if the
 9 customer was not an eligible customer-generator.  The charges for
10 all retail rate components for eligible customer-generators shall
11 be based exclusively on the eligible customer-generator's net
12 kilowatt-hour consumption in accordance with subsection (e).  No
13 other new or additional demand charge, stand-by charge, customer
14 charge, minimum monthly charge, interconnection charge, or other
15 charge that would increase an eligible customer-generator's costs
16 beyond those of other customers in the rate class to which the
17 eligible customer-generator would otherwise choose or be assigned
18 shall be included in the net energy metering contract or tariff.
19      (d)  Net energy metering shall be accomplished using a
20 single meter capable of registering the flow of electricity in
21 two directions.  An additional meter or meters to monitor the
22 flow of electricity in each direction may be installed, with the
23 consent of the eligible customer-generator, at the expense of the

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 1 electric service provider, and the additional metering shall be
 2 used only to provide the information necessary to accurately bill
 3 or credit the eligible customer-generator pursuant to subsection
 4 (e).  If an additional meter or meters are installed, the net
 5 energy metering calculation shall yield a result identical to
 6 that for a single meter.
 7      (e)  The net energy metering calculation shall be made by
 8 measuring the difference between the electricity supplied to the
 9 eligible customer-generator and the electricity generated and fed
10 back to the electric grid by the eligible customer-generator over
11 an annual billing period.  If time-of-use metering is used, then
12 the net energy metering calculation shall be made separately
13 during each time of use period.  The following shall apply to the
14 net metering calculation:
15      (1)  The electric service provider shall measure the net
16           energy produced or consumed during a regular billing
17           period, in accordance with normal metering practices;
18      (2)  If the electricity supplied by the electric service
19           provider exceeds the electricity generated by the
20           eligible customer-generator during the billing period,
21           the eligible customer-generator shall be billed for the
22           net energy supplied, in accordance with subsection (c);
23      (3)  If the electricity generated by the eligible customer-

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 1           generator exceeds the electricity supplied by the
 2           electric service provider, the electric service
 3           provider shall credit the eligible customer-generator
 4           for the excess kilowatt-hours generated, in accordance
 5           with subsection (c).  This kilowatt-hour credit shall
 6           appear on the next regular billing statement;
 7      (4)  At the end of each annual period, the electric service
 8           provider shall retain any remaining unused credit for
 9           the excess kilowatt-hours generated during the prior
10           annual period and the eligible customer-generator shall
11           not be owed any compensation for that unused credit.
12      (f)  A solar-electric generating system used by an eligible
13 customer-generator shall meet all applicable safety and
14 performance standards established by the National Electrical
15 Code, the Institute of Electrical and Electronics Engineers, and
16 accredited testing laboratories, such as Underwriters
17 Laboratories.  Eligible customer-generators whose solar-electric
18 systems meet those standards shall not be required to install
19 additional controls or perform or pay for additional tests."
20      SECTION 3.  Section 269-1, Hawaii Revised Statutes, is
21 amended by deleting the definition "net energy metering".
22      [""Net energy metering" means using a non-time-
23 differentiated meter to measure the electricity supplied by a

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 1 utility and another non-time-differentiated meter to measure the
 2 electricity generated by an eligible customer-generator and fed
 3 back to the utility over an entire billing period."]
 4      SECTION 4.  Statutory material to be repealed is bracketed.
 5 New statutory material is underscored.
 6      SECTION 5.  This Act shall take effect upon its approval.
 8                           INTRODUCED BY:  _______________________