1 | A bill to be entitled |
2 | An act relating to interconnection of customer-owned |
3 | renewable energy generation and net metering; creating s. |
4 | 366.925, F.S.; providing purpose and application; |
5 | providing definitions; requiring electric utilities to |
6 | develop and file standard interconnection agreements for |
7 | Public Service Commission approval; specifying criteria |
8 | for such agreements; specifying qualifications and fees |
9 | for customer-owned renewable energy generation; specifying |
10 | contractual contents of standard interconnection |
11 | agreements; providing administrative requirements for |
12 | customer applications and written notice related to |
13 | standard interconnection agreements; authorizing electric |
14 | utilities to disconnect customer-owned renewable energy |
15 | generation under certain circumstances; requiring electric |
16 | utilities to provide net metering; specifying net metering |
17 | requirements; requiring electric utilities to provide an |
18 | annual report to the commission; providing report |
19 | requirements; requiring the commission to resolve disputes |
20 | relating to customer-owned renewable energy generation and |
21 | net metering; providing an effective date. |
22 |
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23 | Be It Enacted by the Legislature of the State of Florida: |
24 |
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25 | Section 1. Section 366.925, Florida Statutes, is created |
26 | to read: |
27 | 366.925 Interconnection of customer-owned renewable energy |
28 | generation and net metering.-- |
29 | (1) PURPOSE AND APPLICATION.--The purpose of this section |
30 | is to promote the development of small customer-owned renewable |
31 | energy generation, particularly through photovoltaic and wind |
32 | systems; diversify the types of fuel used to generate |
33 | electricity in the state; lessen the state's dependence on |
34 | fossil fuels for the production of electricity; minimize the |
35 | volatility of fuel costs; encourage investment in the state; |
36 | improve environmental conditions; and, at the same time, |
37 | minimize costs of power supply to electric utilities and their |
38 | customers. This section applies to all electric utilities as |
39 | defined in s. 366.02(2). |
40 | (2) DEFINITIONS.--As used in this section, the term: |
41 | (a) "Commission" means the Public Service Commission. |
42 | (b) "Customer-owned renewable energy generation" means an |
43 | electric generating system located on a customer's premises that |
44 | is primarily intended to offset part or all of the customer's |
45 | electricity requirements with renewable energy. |
46 | (c) "Gross power rating" means the total maximum |
47 | generating capacity of onsite customer-owned renewable energy |
48 | generation interconnected to the electric utility's distribution |
49 | facilities. |
50 | (d) "Net metering" means a metering and billing |
51 | methodology whereby customer-owned renewable energy |
52 | generation is allowed to offset the customer's electricity |
53 | consumption on site, net customer usage is billed under the |
54 | electric utility's otherwise applicable rate schedule, and |
55 | excess customer-owned renewable energy generation delivered to |
56 | the electric utility is accumulated and paid for at the end of |
57 | each calendar year at a rate equal to the full retail rate. |
58 | (e) "Renewable energy" means electrical, mechanical, or |
59 | thermal energy produced from a method that uses one or more of |
60 | the following fuels or energy sources: hydrogen, biomass, solar |
61 | energy, geothermal energy, wind energy, ocean energy, waste |
62 | heat, or hydroelectric power. |
63 | (3) STANDARD INTERCONNECTION AGREEMENTS.--Each electric |
64 | utility shall, within 30 days after the effective date of this |
65 | act, file for commission approval a standard interconnection |
66 | agreement for expedited interconnection of customer-owned |
67 | renewable energy generation up to 1 megawatt that complies with |
68 | the following: |
69 | (a) Each customer-owned renewable energy generation |
70 | facility and interconnection shall comply with the following |
71 | standards, as applicable: |
72 | 1. IEEE 1547 (2003), Standard for Interconnecting |
73 | Distributed Resources with Electric Power Systems. |
74 | 2. UL 1741 (2001), Standard for Inverters, Converters, |
75 | Controllers and Interconnection System Equipment for Use With |
76 | Distributed Energy Resources. |
77 | (b) Customer-owned renewable energy generation shall be |
78 | considered certified for interconnected operation if it has been |
79 | submitted by a manufacturer to a nationally recognized testing |
80 | and certification laboratory and has been tested and listed by |
81 | the laboratory for continuous interactive operation with an |
82 | electric distribution system in compliance with the applicable |
83 | codes and standards listed in paragraph (a). |
84 | (c) If the equipment package has been tested and listed in |
85 | accordance with this subsection as an integrated package, which |
86 | includes a generator or other electric source, the equipment |
87 | package shall be deemed certified, and the electric utility |
88 | shall not require further design review, testing, or additional |
89 | equipment other than that provided for in subsection (5). |
90 | (4) CUSTOMER QUALIFICATIONS AND FEES.-- |
91 | (a) Regardless of customer load, to qualify for expedited |
92 | interconnection under this section, customer-owned renewable |
93 | energy generation must have a gross power rating that falls |
94 | within one of the following ranges: |
95 | 1. Tier 1: 25 kilowatts or less. |
96 | 2. Tier 2: greater than 25 kilowatts and less than or |
97 | equal to 100 kilowatts. |
98 | 3. Tier 3: greater than 100 kilowatts and less than or |
99 | equal to 1 megawatt. |
100 | (b) Tier 1 customers who request interconnection of |
101 | customer-owned renewable energy generation shall not be charged |
102 | fees in addition to those charged to other retail customers |
103 | without self-generation, including application fees. |
104 | (c) Along with the standard interconnection agreement |
105 | filed pursuant to subsection (3), each electric utility may |
106 | propose for commission approval a standard application fee for |
107 | Tiers 2 and 3, including an itemized accounting of each cost |
108 | contained within the fee. |
109 | (d) The electric utility may also propose for commission |
110 | approval an interconnection study charge for Tier 3. |
111 | (e) The electric utility shall show that its fees and |
112 | charges are cost-based and reasonable. No fees or charges shall |
113 | be assessed for interconnecting customer-owned renewable energy |
114 | generation without prior commission approval. |
115 | (5) CONTENTS OF STANDARD INTERCONNECTION AGREEMENT.-- |
116 | (a) Each electric utility's standard interconnection |
117 | agreement for customer-owned renewable energy generation shall, |
118 | at a minimum, contain the following: |
119 | 1. A requirement that customer-owned renewable energy |
120 | generation must be inspected and approved by local code |
121 | officials prior to its operation in parallel with an electric |
122 | utility to ensure compliance with applicable local codes. |
123 | 2. Provisions that permit the electric utility to inspect |
124 | customer-owned renewable energy generation and its component |
125 | equipment and the documents necessary to ensure compliance with |
126 | subsections (2), (3), and (4). The electric utility shall have |
127 | the right to have personnel present at the initial testing of |
128 | customer equipment and protective apparatus. |
129 | 3. A provision that the customer who operates customer- |
130 | owned renewable energy generation is responsible for protecting |
131 | its generating equipment, inverters, protective devices, and |
132 | other system components from damage from the normal and abnormal |
133 | conditions and operations that occur on the electric utility |
134 | system in delivering and restoring power and is responsible for |
135 | ensuring that customer-owned renewable energy generation |
136 | equipment is inspected, maintained, and tested in accordance |
137 | with the manufacturer's instructions to ensure that it is |
138 | operating correctly and safely. |
139 | 4. A requirement for general liability insurance for |
140 | personal and property damage in the amount of no more than |
141 | $100,000 for Tiers 1 and 2 and no more than $1 million for Tier |
142 | 3. |
143 | 5. Identification of any fees or charges approved pursuant |
144 | to subsection (4). |
145 | (b) Each electric utility's standard interconnection |
146 | agreement for customer-owned renewable energy generation may |
147 | require the customer to: |
148 | 1. Install, at the electric utility's expense for Tier 1 |
149 | systems and at the customer's expense for Tier 2 and Tier 3 |
150 | systems, a manual disconnect switch of the visible load break |
151 | type to provide a separation point between the AC power output |
152 | of the customer-owned renewable energy generation and any |
153 | customer wiring connected to the electric utility's system. The |
154 | manual disconnect switch shall be mounted separately from the |
155 | meter socket and shall be readily accessible to the electric |
156 | utility and capable of being locked in the open position with an |
157 | electric utility padlock. The electric utility may open the |
158 | switch, isolating the customer-owned renewable energy |
159 | generation, without prior notice to the customer. To the extent |
160 | practicable, however, prior notice shall be given. |
161 | 2. Provide a written agreement to hold harmless and |
162 | indemnify the electric utility from all loss resulting from the |
163 | operation of the customer-owned renewable energy generation, |
164 | except when loss occurs due to the negligent actions of the |
165 | electric utility. |
166 | (6) ADMINISTRATIVE REQUIREMENTS.--Upon a customer's |
167 | request, the electric utility shall provide, within 5 business |
168 | days, an application for interconnection detailing the |
169 | information necessary to execute the standard interconnection |
170 | agreement. Within 10 business days after receipt of the |
171 | customer's application, the electric utility shall provide |
172 | written notice that it has received all documents required by |
173 | the standard interconnection agreement. The written notice shall |
174 | also include dates for any physical inspection of the customer- |
175 | owned renewable energy generation necessary for the electric |
176 | utility to confirm compliance with subsections (2), (3), (4), |
177 | and (5). The standard interconnection agreement shall be |
178 | executed by the electric utility within 30 calendar days after |
179 | receipt of a completed application for Tiers 1 and 2, and within |
180 | 60 calendar days for Tier 3 if an interconnection study is |
181 | necessary. The customer must execute the standard |
182 | interconnection agreement and return it to the electric utility |
183 | at least 5 business days prior to beginning parallel operations. |
184 | (7) CONDITIONS FOR DISCONNECT.--Any of the following |
185 | conditions shall be cause for the electric utility to disconnect |
186 | customer-owned renewable energy generation from its system: |
187 | (a) Electric utility system emergencies or maintenance |
188 | requirements. |
189 | (b) Hazardous conditions existing on the electric utility |
190 | system due to the operation of the customer's generating or |
191 | protective equipment as determined by the electric utility. |
192 | (c) Adverse electrical effects, such as power quality |
193 | problems, on the electrical equipment of the electric utility's |
194 | other electric consumers caused by the customer-owned renewable |
195 | energy generation as determined by the electric utility. |
196 | (d) Failure of the customer to maintain the required |
197 | insurance coverage. |
198 | (8) NET METERING.-- |
199 | (a) Each electric utility shall enable each customer-owned |
200 | renewable energy generation facility interconnected to the |
201 | electric utility's electrical grid pursuant to this section to |
202 | net meter. |
203 | (b) Each electric utility shall install, at no additional |
204 | cost to the customer, metering equipment at the point of |
205 | delivery capable of measuring the difference between the |
206 | electricity supplied to the customer from the electric utility |
207 | and the electricity generated by customer-owned renewable energy |
208 | generation, including excess electric energy delivered to the |
209 | electric utility's electrical grid. |
210 | (c) Meter readings shall be taken monthly on the same |
211 | cycle as required under the otherwise applicable rate schedule. |
212 | (d) The electric utility shall charge for electricity used |
213 | by the customer in excess of the electricity supplied by |
214 | customer-owned renewable energy generation in accordance with |
215 | normal billing practices. |
216 | (e) During any billing cycle, excess customer-owned |
217 | renewable energy generation delivered to the electric utility's |
218 | electrical grid shall be credited to the customer's energy |
219 | consumption for the next month's billing cycle. |
220 | (f) Energy credits produced pursuant to paragraph (e) |
221 | shall accumulate and be used to offset the customer's energy |
222 | usage in subsequent months for a period of not more than 12 |
223 | months. At the end of each calendar year, the electric utility |
224 | shall pay the customer for any unused energy credits at a rate |
225 | equal to the full retail rate under the otherwise applicable |
226 | rate schedule. Payment for accumulated year-end energy credits |
227 | shall not include any portion of the applicable customer charge |
228 | or demand charge. |
229 | (g) When a customer leaves the system, that customer's |
230 | unused credits for excess kilowatt hours generated shall be paid |
231 | to the customer at a rate equal to the full retail rate under |
232 | the otherwise applicable rate schedule. |
233 | (9) REPORTING REQUIREMENTS.--Each electric utility shall |
234 | report the following to the commission by April 1 of each year: |
235 | (a) Total number of customer-owned renewable energy |
236 | generation interconnections. |
237 | (b) Total kilowatt capacity of customer-owned renewable |
238 | energy generation interconnected. |
239 | (c) Total kilowatt hours received by interconnected |
240 | customers from the electric utility, by month and by year for |
241 | the previous calendar year. |
242 | (d) Total kilowatt hours of customer-owned renewable |
243 | energy generation delivered to the electric utility, by month |
244 | and by year for the previous calendar year. |
245 | (e) Total energy payments made to interconnected customers |
246 | for customer-owned renewable energy generation delivered to the |
247 | electric utility. |
248 | (f) For each individual customer-owned renewable energy |
249 | generation interconnection: |
250 | 1. Renewable technology utilized. |
251 | 2. Gross power rating. |
252 | 3. Geographic location by county. |
253 | 4. Date interconnected. |
254 | (10) DISPUTE RESOLUTION.--When an electric utility refuses |
255 | to interconnect with customer-owned renewable energy generation |
256 | or provide net metering or attempts to impose unreasonable |
257 | standards or conditions, the customer may petition the |
258 | commission for relief. The electric utility shall have the |
259 | burden of demonstrating to the commission why interconnection |
260 | with the customer-owned renewable energy generation should not |
261 | be required, why net metering should not be provided, or that |
262 | the standards or conditions the electric utility seeks to impose |
263 | on the customer-owned renewable energy generation are |
264 | reasonable. The commission shall resolve each issue set forth in |
265 | the petition in an expedited manner. |
266 | Section 2. This act shall take effect July 1, 2008. |