Bill Text: OR SB562 | 2013 | Regular Session | Introduced
Bill Title: Relating to electric utility operations.
Spectrum: Committee Bill
Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB562 Detail]
Download: Oregon-2013-SB562-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3024
Senate Bill 562
Sponsored by COMMITTEE ON BUSINESS AND TRANSPORTATION
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Directs electric utility to provide credit to subscribing
customer that receives electric service within service territory
of electric utility for electricity generated by community net
metering facility under certain circumstances.
A BILL FOR AN ACT
Relating to electric utility operations; creating new provisions;
and amending ORS 757.300.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 and 4 of this 2013 Act are added to
and made a part of ORS chapter 757. + }
SECTION 2. { + (1) As used in this section:
(a) 'Community net metering facility' means a facility located
in this state for the production of electrical energy that:
(A) Generates electricity using solar power, wind power, fuel
cells, hydroelectric power, landfill gas, digester gas, waste,
dedicated energy crops available on a renewable basis or
low-emission, nontoxic biomass based on solid organic fuels from
wood, forest or field residues, for which a subscribing customer
receives credit as described in subsections (2) and (3) of this
section;
(B) Is interconnected to an electric utility;
(C) Can operate in parallel with an electric utility's existing
transmission and distribution facilities;
(D) Has a meter in place to monitor and measure the quantity of
energy generated by the facility; and
(E) Is intended primarily to offset part or all of a
subscribing customer's requirements for electricity.
(b) 'Electric utility' means a public utility, a people's
utility district operating under ORS chapter 261, a municipal
electric utility operating under ORS chapter 225 or an electric
cooperative organized under ORS chapter 62.
(c) 'Subscribing customer' means a retail electricity consumer,
or an aggregate of retail electricity consumers, that receives
credit as described in subsections (2) and (3) of this section.
(2) An electric utility shall provide credit as described in
subsection (3) of this section to a subscribing customer that
receives electric service within the service territory of the
electric utility for electricity generated by a community net
metering facility that is interconnected to the electric utility
if:
(a) The owner of the community net metering facility provides
the electric utility with:
(A) A single point of contact;
(B) A list, to be updated no more than one time per year, of
all subscribing customers that are to receive credits for
electricity generated by the community net metering facility;
(C) The proportion or block of generated electricity assignable
to each subscribing customer; and
(D) A plan to maintain the efficiency of the community net
metering facility; and
(b) The community net metering facility has a generating
capacity of no less than 10 kilowatts and no greater than two
megawatts, except that the Public Utility Commission, for a
public utility, or the governing body, for a municipal electric
utility, electric cooperative or people's utility district, may
establish a generating capacity greater than two megawatts.
(3)(a) An electric utility shall credit a subscribing customer
for the subscribing customer's share of electricity generated by
a community net metering facility:
(A) Except as provided in paragraph (b) of this subsection, by
applying kilowatt-hour credits to the subscribing customer's
utility bill for the kilowatt-hours generated during the billing
period that are assignable to the subscribing customer; or
(B) If the electric utility is a municipal electric utility,
electric cooperative or people's utility district, by valuing the
kilowatt-hours generated during the billing period that are
assignable to the subscribing customer at the avoided cost of the
electric utility as determined by the governing body of the
municipal electric utility, electric cooperative or people's
utility district.
(b) For the billing cycle ending in March of each year, or on
such other date as agreed to by the electric utility and a
subscribing customer, any remaining unused kilowatt-hour credit
accumulated during the previous year for the subscribing customer
shall be:
(A) Granted to the electric utility for distribution to
customers enrolled in the electric utility's low-income
assistance programs;
(B) Credited to the subscribing customer; or
(C) Dedicated for other use as determined by the commission,
for a public utility, or by the governing body, for a municipal
electric utility, electric cooperative or people's utility
district, following notice and comment.
(4) The commission, for a public utility, or the governing
body, for a municipal electric utility, electric cooperative or
people's utility district, may limit the number of retail
electricity consumers that subscribe to a community net metering
facility under this section.
(5) The owner of a community net metering facility is
responsible for interconnection costs and meter fees established
by the commission, for a public utility, or by the governing
body, for a municipal electric utility, electric cooperative or
people's utility district.
(6) An electric utility may charge a community net metering
facility a fee to cover the reasonable administrative expenses
incurred under this section. The fee charged under this
subsection shall be adopted by the commission, for a public
utility, or by the governing body, for a municipal electric
utility, electric cooperative or people's utility district.
(7) The commission, for a public utility, or the governing
body, for a municipal electric utility, electric cooperative or
people's utility district, may establish a limit for the
cumulative generating capacity of community net metering
facilities.
(8)(a) Unless otherwise agreed to by contract, a subscribing
customer is the owner of a renewable energy certificate
established under ORS 469A.130 that is associated with energy
generated for that subscribing customer by a community net
metering facility.
(b) The owner of a community net metering facility is
responsible for determining the share of renewable energy
certificates assignable to each subscribing customer under this
subsection.
(9) The owner of a community net metering facility is eligible
for expenditures under ORS 757.612 (3)(b)(B).
(10) A community net metering facility and a subscribing
customer are not public utilities, as defined in ORS 757.005, for
purposes of this section. + }
SECTION 3. { + Until the Public Utility Commission, for a
public utility, or the governing body, for a municipal electric
utility, electric cooperative or people's utility district,
adopts the fee authorized by section 2 (6) of this 2013 Act, an
electric utility may charge a community net metering facility a
fee not to exceed $400 plus $10 per subscribing customer per year
for purposes described in section 2 (6) of this 2013 Act. + }
SECTION 4. { + The Public Utility Commission, for a public
utility, or the governing body, for a municipal electric utility,
electric cooperative or people's utility district, may not limit
the cumulative generating capacity of solar, wind, fuel cell and
microhydroelectric net metering and community net metering
systems described in ORS 757.300 and section 2 of this 2013 Act
to less than one-half of one percent of a utility's,
cooperative's or district's historic single-hour peak load. After
a cumulative limit of one-half of one percent has been reached,
the obligation of a public utility, municipal electric utility,
electric cooperative or people's utility district to offer net
metering or community net metering to a new customer-generator
may be limited by the commission or governing body in order to
balance the interests of retail customers. When limiting net
metering or community net metering obligations under this
section, the commission or the governing body shall consider the
environmental and other public policy benefits of net metering
and community net metering systems. The commission may limit net
metering and community net metering obligations under this
subsection only following notice and opportunity for public
comment. The governing body of a municipal electric utility,
electric cooperative or people's utility district may limit net
metering and community net metering obligations under this
section only following notice and opportunity for comment from
the customers of the utility, cooperative or district. + }
SECTION 5. ORS 757.300 is amended to read:
757.300. (1) As used in this section:
(a) 'Customer-generator' means a user of a net metering
facility.
(b) 'Electric utility' means a public utility, a people's
utility district operating under ORS chapter 261, a municipal
utility operating under ORS chapter 225 or an electric
cooperative organized under ORS chapter 62.
(c) 'Net metering' means measuring the difference between the
electricity supplied by an electric utility and the electricity
generated by a customer-generator and fed back to the electric
utility over the applicable billing period.
(d) 'Net metering facility' means a facility for the production
of electrical energy that:
(A) Generates electricity using solar power, wind power, fuel
cells, hydroelectric power, landfill gas, digester gas, waste,
dedicated energy crops available on a renewable basis or
low-emission, nontoxic biomass based on solid organic fuels from
wood, forest or field residues;
(B) Is located on the customer-generator's premises;
(C) Can operate in parallel with an electric utility's existing
transmission and distribution facilities; and
(D) Is intended primarily to offset part or all of the
customer-generator's requirements for electricity.
(2) An electric utility that offers residential and commercial
electric service:
(a) Shall allow net metering facilities to be interconnected
using a standard meter that is capable of registering the flow of
electricity in two directions.
(b) May at its own expense install one or more additional
meters to monitor the flow of electricity in each direction.
(c) May not charge a customer-generator a fee or charge that
would increase the customer-generator's minimum monthly charge to
an amount greater than that of other customers in the same rate
class as the customer-generator. However, the Public Utility
Commission, for a public utility, or the governing body, for a
municipal electric utility, electric cooperative or people's
utility district, may authorize an electric utility to assess a
greater fee or charge, of any type, if the electric utility's
direct costs of interconnection and administration of the net
metering outweigh the distribution system, environmental and
public policy benefits of allocating such costs among the
electric utility's entire customer base. The commission may
authorize a public utility to assess a greater fee or charge
under this paragraph only following notice and opportunity for
public comment. The governing body of a municipal electric
utility, electric cooperative or people's utility district may
assess a greater fee or charge under this paragraph only
following notice and opportunity for comment from the customers
of the utility, cooperative or district.
(3)(a) For a customer-generator, an electric utility shall
measure the net electricity produced or consumed during the
billing period in accordance with normal metering practices.
(b) If an electric utility supplies a customer-generator more
electricity than the customer-generator feeds back to the
electric utility during a billing period, the electric utility
shall charge the customer-generator for the net electricity that
the electric utility supplied.
(c) Except as provided in paragraph (d) of this subsection, if
a customer-generator feeds back to an electric utility more
electricity than the electric utility supplies the
customer-generator during a billing period, the electric utility
may charge the minimum monthly charge described in subsection (2)
of this section but must credit the customer-generator for the
excess kilowatt-hours generated during the billing period. An
electric utility may value the excess kilowatt-hours at the
avoided cost of the utility, as determined by the commission or
the appropriate governing body. An electric utility that values
the excess kilowatt-hours at the avoided cost shall bear the cost
of measuring the excess kilowatt-hours, issuing payments and
billing for the excess hours. The electric utility also shall
bear the cost of providing and installing additional metering to
measure the reverse flow of electricity.
(d) For the billing cycle ending in March of each year, or on
such other date as agreed to by the electric utility and the
customer-generator, any remaining unused kilowatt-hour credit
accumulated during the previous year shall be granted to the
electric utility for distribution to customers enrolled in the
electric utility's low-income assistance programs, credited to
the customer-generator or dedicated for other use as determined
by the commission, for a public utility, or the governing body,
for a municipal electric utility, electric cooperative or
people's utility district, following notice and opportunity for
public comment.
(4)(a) A net metering facility shall meet all applicable safety
and performance standards established in the state building code.
The standards shall be consistent with the applicable standards
established by the National Electrical Code, the Institute of
Electrical and Electronics Engineers and Underwriters
Laboratories or other similarly accredited laboratory.
(b) Following notice and opportunity for public comment, the
commission, for a public utility, or the governing body, for a
municipal electric utility, electric cooperative or people's
utility district, may adopt additional control and testing
requirements for customer-generators to protect public safety or
system reliability.
(c) An electric utility may not require a customer-generator
whose net metering facility meets the standards in paragraphs (a)
and (b) of this subsection to comply with additional safety or
performance standards, perform or pay for additional tests or
purchase additional liability insurance. However, an electric
utility shall not be liable directly or indirectly for permitting
or continuing to allow an attachment of a net metering facility,
or for the acts or omissions of the customer-generator that cause
loss or injury, including death, to any third party.
(5) Nothing in this section is intended to prevent an electric
utility from offering, or a customer-generator from accepting,
products or services related to the customer-generator's net
metering facility that are different from the net metering
services described in this section.
{ - (6) The commission, for a public utility, or the
governing body, for a municipal electric utility, electric
cooperative or people's utility district, may not limit the
cumulative generating capacity of solar, wind, fuel cell and
microhydroelectric net metering systems to less than one-half of
one percent of a utility's, cooperative's or district's historic
single-hour peak load. After a cumulative limit of one-half of
one percent has been reached, the obligation of a public utility,
municipal electric utility, electric cooperative or people's
utility district to offer net metering to a new
customer-generator may be limited by the commission or governing
body in order to balance the interests of retail customers. When
limiting net metering obligations under this subsection, the
commission or the governing body shall consider the environmental
and other public policy benefits of net metering systems. The
commission may limit net metering obligations under this
subsection only following notice and opportunity for public
comment. The governing body of a municipal electric utility,
electric cooperative or people's utility district may limit net
metering obligations under this subsection only following notice
and opportunity for comment from the customers of the utility,
cooperative or district. - }
{ - (7) - } { + (6) + } The commission or the governing
body may adopt rules or ordinances to ensure that the obligations
and costs associated with net metering apply to all power
suppliers within the service territory of a public utility,
municipal electric utility, electric cooperative or people's
utility district.
{ - (8) - } { + (7) + } This section applies only to net
metering facilities that have a generating capacity of 25
kilowatts or less, except that the commission by rule may provide
for a higher limit for customers of a public utility.
{ - (9) - } { + (8) + } Notwithstanding subsections (2) to
{ - (8) - } { + (7) + } of this section, an electric utility
serving fewer than 25,000 customers in Oregon that has its
headquarters located in another state and offers net metering
services or a substantial equivalent offset against retail sales
in that state shall be deemed to be in compliance with this
section if the electric utility offers net metering services to
its customers in Oregon in accordance with tariffs, schedules and
other regulations promulgated by the appropriate authority in the
state where the electric utility's headquarters are located.
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