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A bill to be entitled

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An act relating to interconnection of customer-owned

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renewable energy generation and net metering; creating s.

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366.925, F.S.; providing purpose and application;

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providing definitions; requiring electric utilities to

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develop and file standard interconnection agreements for

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Public Service Commission approval; specifying criteria

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for such agreements; specifying qualifications and fees

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for customer-owned renewable energy generation; specifying

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contractual contents of standard interconnection

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agreements; providing administrative requirements for

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customer applications and written notice related to

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standard interconnection agreements; authorizing electric

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utilities to disconnect customer-owned renewable energy

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generation under certain circumstances; requiring electric

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utilities to provide net metering; specifying net metering

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requirements; requiring electric utilities to provide an

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annual report to the commission; providing report

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requirements; requiring the commission to resolve disputes

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relating to customer-owned renewable energy generation and

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net metering; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Section 366.925, Florida Statutes, is created to

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read:

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     366.925 Interconnection of customer-owned renewable energy

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generation and net metering.--

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     (1) PURPOSE AND Application.--The purpose of this section

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is to promote the development of small customer-owned renewable

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energy generation, particularly through photovoltaic and wind

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systems; diversify the types of fuel used to generate electricity

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in the state; lessen the state's dependence on fossil fuels for

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the production of electricity; minimize the volatility of fuel

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costs; encourage investment in the state; improve environmental

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conditions; and, at the same time, minimize costs of power supply

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to electric utilities and their customers. This section applies

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to all electric utilities as defined in s. 366.02(2).

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     (2) Definitions.--As used in this section, the term:

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     (a) "Commission" means the Public Service Commission.

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     (b) "Customer-owned renewable energy generation" means an

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electric generating system located on a customer's premises that

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is primarily intended to offset part or all of the customer's

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electricity requirements with renewable energy.

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     (c) "Gross power rating" means the total maximum generating

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capacity of onsite customer-owned renewable energy generation

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interconnected to the electric utility's distribution facilities.

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     (d) "Net metering" means a metering and billing methodology

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whereby customer-owned renewable energy generation is allowed to

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offset the customer's electricity consumption on site, net

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customer usage is billed under the electric utility's otherwise

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applicable rate schedule, and excess customer-owned renewable

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energy generation delivered to the electric utility is

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accumulated and paid for at the end of each calendar year at a

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rate equal to the full retail rate.

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     (e) "Renewable energy" means electrical, mechanical, or

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thermal energy produced from a method that uses one or more of

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the following fuels or energy sources: hydrogen, biomass, solar

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energy, geothermal energy, wind energy, ocean energy, waste heat,

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or hydroelectric power.

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     (3) Standard interconnection agreements.--Each electric

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utility shall, within 30 days after the effective date of this

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act, file for commission approval a standard interconnection

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agreement for expedited interconnection of customer-owned

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renewable energy generation up to 1 megawatt that complies with

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the following:

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     (a) Each customer-owned renewable energy generation

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facility and interconnection shall comply with the following

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standards, as applicable:

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     1. IEEE 1547 (2003), Standard for Interconnecting

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Distributed Resources with Electric Power Systems.

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     2. UL 1741 (2001), Standard for Inverters, Converters,

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Controllers and Interconnection System Equipment for Use With

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Distributed Energy Resources.

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     (b) Customer-owned renewable energy generation shall be

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considered certified for interconnected operation if it has been

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submitted by a manufacturer to a nationally recognized testing

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and certification laboratory and has been tested and listed by

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the laboratory for continuous interactive operation with an

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electric distribution system in compliance with the applicable

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codes and standards listed in paragraph (a).

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     (c) If the equipment package has been tested and listed in

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accordance with this subsection as an integrated package, which

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includes a generator or other electric source, the equipment

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package shall be deemed certified, and the electric utility shall

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not require further design review, testing, or additional

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equipment other than that provided for in subsection (5).

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     (4) Customer qualifications and fees.--

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     (a) Regardless of customer load, to qualify for expedited

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interconnection under this section, customer-owned renewable

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energy generation must have a gross power rating that falls

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within one of the following ranges:

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     1. Tier 1: 25 kilowatts or less.

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     2. Tier 2: greater than 25 kilowatts and less than or equal

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to 100 kilowatts.

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     3. Tier 3: greater than 100 kilowatts and less than or

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equal to 1 megawatt.

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     (b) Tier 1 customers who request interconnection of

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customer-owned renewable energy generation shall not be charged

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fees in addition to those charged to other retail customers

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without self-generation, including application fees.

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     (c) Along with the standard interconnection agreement filed

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pursuant to subsection (3), each electric utility may propose for

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commission approval a standard application fee for Tiers 2 and 3,

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including an itemized accounting of each cost contained within

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the fee.

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     (d) The electric utility may also propose for commission

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approval an interconnection study charge for Tier 3.

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     (e) The electric utility shall show that its fees and

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charges are cost-based and reasonable. No fees or charges shall

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be assessed for interconnecting customer-owned renewable energy

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generation without prior commission approval.

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     (5) Contents of standard interconnection agreement.--

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     (a) Each electric utility's standard interconnection

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agreement for customer-owned renewable energy generation shall,

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at a minimum, contain the following:

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     1. A requirement that customer-owned renewable energy

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generation must be inspected and approved by local code officials

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prior to its operation in parallel with an electric utility to

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ensure compliance with applicable local codes.

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     2. Provisions that permit the electric utility to inspect

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customer-owned renewable energy generation and its component

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equipment and the documents necessary to ensure compliance with

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subsections (2), (3), and (4). The electric utility shall have

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the right to have personnel present at the initial testing of

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customer equipment and protective apparatus.

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     3. A provision that the customer who operates customer-

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owned renewable energy generation is responsible for protecting

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its generating equipment, inverters, protective devices, and

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other system components from damage from the normal and abnormal

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conditions and operations that occur on the electric utility

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system in delivering and restoring power and is responsible for

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ensuring that customer-owned renewable energy generation

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equipment is inspected, maintained, and tested in accordance with

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the manufacturer's instructions to ensure that it is operating

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correctly and safely.

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     4. A requirement for general liability insurance for

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personal and property damage in the amount of no more than

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$100,000 for Tiers 1 and 2 and no more than $1 million for Tier

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3.

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     5. Identification of any fees or charges approved pursuant

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to subsection (4).

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     (b) Each electric utility's standard interconnection

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agreement for customer-owned renewable energy generation may

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require the customer to:

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     1. Install, at the electric utility's expense for Tier 1

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systems and at the customer's expense for Tier 2 and Tier 3

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systems, a manual disconnect switch of the visible load break

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type to provide a separation point between the AC power output of

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the customer-owned renewable energy generation and any customer

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wiring connected to the electric utility's system. The manual

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disconnect switch shall be mounted separately from the meter

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socket and shall be readily accessible to the electric utility

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and capable of being locked in the open position with an electric

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utility padlock. The electric utility may open the switch,

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isolating the customer-owned renewable energy generation, without

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prior notice to the customer. To the extent practicable, however,

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prior notice shall be given.

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     2. Provide a written agreement to hold harmless and

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indemnify the electric utility from all loss resulting from the

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operation of the customer-owned renewable energy generation,

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except when loss occurs due to the negligent actions of the

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electric utility.

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     (6) Administrative requirements.--Upon a customer's

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request, the electric utility shall provide, within 5 business

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days, an application for interconnection detailing the

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information necessary to execute the standard interconnection

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agreement. Within 10 business days after receipt of the

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customer's application, the electric utility shall provide

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written notice that it has received all documents required by the

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standard interconnection agreement. The written notice shall also

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include dates for any physical inspection of the customer-owned

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renewable energy generation necessary for the electric utility to

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confirm compliance with subsections (2), (3), (4), and (5). The

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standard interconnection agreement shall be executed by the

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electric utility within 30 calendar days after receipt of a

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completed application for Tiers 1 and 2, and within 60 calendar

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days for Tier 3 if an interconnection study is necessary. The

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customer must execute the standard interconnection agreement and

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return it to the electric utility at least 5 business days prior

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to beginning parallel operations.

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     (7) Conditions for disconnect.--Any of the following

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conditions shall be cause for the electric utility to disconnect

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customer-owned renewable energy generation from its system:

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     (a) Electric utility system emergencies or maintenance

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requirements.

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     (b) Hazardous conditions existing on the electric utility

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system due to the operation of the customer's generating or

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protective equipment as determined by the electric utility.

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     (c) Adverse electrical effects, such as power quality

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problems, on the electrical equipment of the electric utility's

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other electric consumers caused by the customer-owned renewable

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energy generation as determined by the electric utility.

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     (d) Failure of the customer to maintain the required

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insurance coverage.

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     (8) Net metering.--

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     (a) Each electric utility shall enable each customer-owned

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renewable energy generation facility interconnected to the

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electric utility's electrical grid pursuant to this section to

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net meter.

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     (b) Each electric utility shall install, at no additional

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cost to the customer, metering equipment at the point of delivery

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capable of measuring the difference between the electricity

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supplied to the customer from the electric utility and the

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electricity generated by customer-owned renewable energy

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generation, including excess electric energy delivered to the

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electric utility's electrical grid.

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     (c) Meter readings shall be taken monthly on the same cycle

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as required under the otherwise applicable rate schedule.

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     (d) The electric utility shall charge for electricity used

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by the customer in excess of the electricity supplied by

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customer-owned renewable energy generation in accordance with

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normal billing practices.

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     (e) During any billing cycle, excess customer-owned

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renewable energy generation delivered to the electric utility's

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electrical grid shall be credited to the customer's energy

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consumption for the next month's billing cycle.

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     (f) Energy credits produced pursuant to paragraph (e) shall

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accumulate and be used to offset the customer's energy usage in

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subsequent months for a period of not more than 12 months. At the

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end of each calendar year, the electric utility shall pay the

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customer for any unused energy credits at a rate equal to the

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full retail rate under the otherwise applicable rate schedule.

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Payment for accumulated year-end energy credits shall not include

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any portion of the applicable customer charge or demand charge.

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     (g) When a customer leaves the system, that customer's

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unused credits for excess kilowatt hours generated shall be paid

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to the customer at a rate equal to the full retail rate under the

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otherwise applicable rate schedule.

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     (9) Reporting requirements.--Each electric utility shall

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report the following to the commission by April 1 of each year:

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     (a) Total number of customer-owned renewable energy

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generation interconnections.

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     (b) Total kilowatt capacity of customer-owned renewable

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energy generation interconnected.

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     (c) Total kilowatt hours received by interconnected

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customers from the electric utility, by month and by year for the

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previous calendar year.

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     (d) Total kilowatt hours of customer-owned renewable energy

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generation delivered to the electric utility, by month and by

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year for the previous calendar year.

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     (e) Total energy payments made to interconnected customers

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for customer-owned renewable energy generation delivered to the

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electric utility.

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     (f) For each individual customer-owned renewable energy

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generation interconnection:

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     1. Renewable technology utilized.

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     2. Gross power rating.

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     3. Geographic location by county.

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     4. Date interconnected.

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     (10) Dispute resolution.--When an electric utility refuses

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to interconnect with customer-owned renewable energy generation

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or provide net metering or attempts to impose unreasonable

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standards or conditions, the customer may petition the commission

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for relief. The electric utility shall have the burden of

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demonstrating to the commission why interconnection with the

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customer-owned renewable energy generation should not be

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required, why net metering should not be provided, or that the

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standards or conditions the electric utility seeks to impose on

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the customer-owned renewable energy generation are reasonable.

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The commission shall resolve each issue set forth in the petition

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in an expedited manner.

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     Section 2.  This act shall take effect July 1, 2008.