| 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 |
|
| 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. |