REPORT TITLE:
Net Energy Metering


DESCRIPTION:
Allows commercial, industrial, military, and government customers
of an electric utility to participate in net energy metering.
Repeals the requirement that an electric utility pay a customer-
generator for any surplus electrical energy produced by the
customer-generator.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           711
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO NET ENERGY METERING. 


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

 1      SECTION 1.  The legislature finds that a program to provide
 
 2 net energy metering for eligible customer-generators is one way
 
 3 to encourage private investment in renewable energy resources,
 
 4 stimulate in-state economic growth, enhance the continued
 
 5 diversification of Hawaii's energy resource mix, and reduce
 
 6 utility interconnect and administrative costs.  
 
 7      SECTION 2.  Section 269-1, Hawaii Revised Statutes, is
 
 8 amended as follows:
 
 9      1.  By amending the definition of "eligible customer-
 
10 generator" to read:
 
11      ""Eligible customer-generator" means a metered residential,
 
12 commercial, industrial, military, or government customer of an
 
13 electric utility who owns and operates a solar, wind, or micro-
 
14 hydro electric energy generating facility with a capacity of not
 
15 more than ten kilowatts, that is located on the customer's
 
16 premises, operates in parallel with the utility's transmission
 
17 and distribution facilities, is in conformance with the utility's
 
18 interconnection requirements, and is intended primarily to offset
 
19 part or all of the customer's own electrical requirements."
 

 
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                                     S.B. NO.           711
                                                        
                                                        

 
 1      2.  By amending the definition of "net energy metering" to
 
 2 read:
 
 3      ""Net energy metering" means using a single, reversible,
 
 4 non-time-differentiated meter to measure the difference between
 
 5 the electricity supplied by a utility and [another non-time-
 
 6 differentiated meter to measure] the electricity generated by an
 
 7 eligible customer-generator and fed back to the utility over an
 
 8 entire billing period."
 
 9      3.  By deleting the definition of "incremental cost of
 
10 alternative electric energy."
 
11      [""Incremental cost of alternative electric energy" means,
 
12 with respect to electric energy purchased from an eligible
 
13 customer-generator, the cost to the utility of the electric
 
14 energy that, but for the purchase from the eligible customer-
 
15 generator, the utility would generate or purchase from another
 
16 non-firm source."]
 
17      SECTION 3.  Section 269-16.21, Hawaii Revised Statutes, is
 
18 amended by amending subsections (a) to (c) to read as follows:
 
19      "(a)  Every electric utility in the State that offers
 
20 residential electrical service shall develop a standard contract
 
21 [or tariff] providing for net energy metering, and shall make
 
22 this contract available to eligible customer-generators on a
 
23 first-come, first-served basis until such time as the total rated
 

 
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                                     S.B. NO.           711
                                                        
                                                        

 
 1 generated capacity owned and operated by eligible customer-
 
 2 generators in each utility's service areas equals 0.1 per cent of
 
 3 the utility's peak demand.
 
 4      (b)  Each eligible customer-generator meeting the criteria
 
 5 of subsection (a) shall be entitled to net energy metering,
 
 6 calculated as follows:
 
 7      (1)  The customer-generator shall be billed for the energy
 
 8           supplied by the utility [at the utility-approved retail
 
 9           rate], less an amount equal to the amount of energy
 
10           generated by the customer over the applicable billing
 
11           period[, multiplied by a rate set by the commission
 
12           based on the incremental cost to the utility of
 
13           alternative electric energy.]; and
 
14      (2)  Where the amount in paragraph (1) is positive, the
 
15           customer-generator shall be billed by the utility[.] at
 
16           the utility-approved retail rate.  Where the amount is
 
17           negative, the customer-generator shall [be credited by
 
18           the utility.] provide any electricity generated in
 
19           excess of its total annual use to the utility at no
 
20           cost to the utility.
 
21      (c)  A utility[, with the consent of the eligible customer-
 
22 generator, may] shall annualize the period during which the net
 
23 energy measurement is calculated."
 

 
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                                     S.B. NO.           711
                                                        
                                                        

 
 1      SECTION 4.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 5.  This Act shall take effect upon its approval.
 
 4 
 
 5                           INTRODUCED BY:  _______________________