HB 557

1
A bill to be entitled
2An act relating to interconnection of customer-owned
3renewable energy generation and net metering; creating s.
4366.925, F.S.; providing purpose and application;
5providing definitions; requiring electric utilities to
6develop and file standard interconnection agreements for
7Public Service Commission approval; specifying criteria
8for such agreements; specifying qualifications and fees
9for customer-owned renewable energy generation; specifying
10contractual contents of standard interconnection
11agreements; providing administrative requirements for
12customer applications and written notice related to
13standard interconnection agreements; authorizing electric
14utilities to disconnect customer-owned renewable energy
15generation under certain circumstances; requiring electric
16utilities to provide net metering; specifying net metering
17requirements; requiring electric utilities to provide an
18annual report to the commission; providing report
19requirements; requiring the commission to resolve disputes
20relating to customer-owned renewable energy generation and
21net metering; providing an effective date.
22
23Be It Enacted by the Legislature of the State of Florida:
24
25     Section 1.  Section 366.925, Florida Statutes, is created
26to read:
27     366.925  Interconnection of customer-owned renewable energy
28generation and net metering.--
29     (1)  PURPOSE AND APPLICATION.--The purpose of this section
30is to promote the development of small customer-owned renewable
31energy generation, particularly through photovoltaic and wind
32systems; diversify the types of fuel used to generate
33electricity in the state; lessen the state's dependence on
34fossil fuels for the production of electricity; minimize the
35volatility of fuel costs; encourage investment in the state;
36improve environmental conditions; and, at the same time,
37minimize costs of power supply to electric utilities and their
38customers. This section applies to all electric utilities as
39defined 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
43electric generating system located on a customer's premises that
44is primarily intended to offset part or all of the customer's
45electricity requirements with renewable energy.
46     (c)  "Gross power rating" means the total maximum
47generating capacity of onsite customer-owned renewable energy
48generation interconnected to the electric utility's distribution
49facilities.
50     (d)  "Net metering" means a metering and billing
51methodology whereby customer-owned renewable energy
52generation is allowed to offset the customer's electricity
53consumption on site, net customer usage is billed under the
54electric utility's otherwise applicable rate schedule, and
55excess customer-owned renewable energy generation delivered to
56the electric utility is accumulated and paid for at the end of
57each calendar year at a rate equal to the full retail rate.
58     (e)  "Renewable energy" means electrical, mechanical, or
59thermal energy produced from a method that uses one or more of
60the following fuels or energy sources: hydrogen, biomass, solar
61energy, geothermal energy, wind energy, ocean energy, waste
62heat, or hydroelectric power.
63     (3)  STANDARD INTERCONNECTION AGREEMENTS.--Each electric
64utility shall, within 30 days after the effective date of this
65act, file for commission approval a standard interconnection
66agreement for expedited interconnection of customer-owned
67renewable energy generation up to 1 megawatt that complies with
68the following:
69     (a)  Each customer-owned renewable energy generation
70facility and interconnection shall comply with the following
71standards, as applicable:
72     1.  IEEE 1547 (2003), Standard for Interconnecting
73Distributed Resources with Electric Power Systems.
74     2.  UL 1741 (2001), Standard for Inverters, Converters,
75Controllers and Interconnection System Equipment for Use With
76Distributed Energy Resources.
77     (b)  Customer-owned renewable energy generation shall be
78considered certified for interconnected operation if it has been
79submitted by a manufacturer to a nationally recognized testing
80and certification laboratory and has been tested and listed by
81the laboratory for continuous interactive operation with an
82electric distribution system in compliance with the applicable
83codes and standards listed in paragraph (a).
84     (c)  If the equipment package has been tested and listed in
85accordance with this subsection as an integrated package, which
86includes a generator or other electric source, the equipment
87package shall be deemed certified, and the electric utility
88shall not require further design review, testing, or additional
89equipment other than that provided for in subsection (5).
90     (4)  CUSTOMER QUALIFICATIONS AND FEES.--
91     (a)  Regardless of customer load, to qualify for expedited
92interconnection under this section, customer-owned renewable
93energy generation must have a gross power rating that falls
94within 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
97equal to 100 kilowatts.
98     3.  Tier 3: greater than 100 kilowatts and less than or
99equal to 1 megawatt.
100     (b)  Tier 1 customers who request interconnection of
101customer-owned renewable energy generation shall not be charged
102fees in addition to those charged to other retail customers
103without self-generation, including application fees.
104     (c)  Along with the standard interconnection agreement
105filed pursuant to subsection (3), each electric utility may
106propose for commission approval a standard application fee for
107Tiers 2 and 3, including an itemized accounting of each cost
108contained within the fee.
109     (d)  The electric utility may also propose for commission
110approval an interconnection study charge for Tier 3.
111     (e)  The electric utility shall show that its fees and
112charges are cost-based and reasonable. No fees or charges shall
113be assessed for interconnecting customer-owned renewable energy
114generation without prior commission approval.
115     (5)  CONTENTS OF STANDARD INTERCONNECTION AGREEMENT.--
116     (a)  Each electric utility's standard interconnection
117agreement for customer-owned renewable energy generation shall,
118at a minimum, contain the following:
119     1.  A requirement that customer-owned renewable energy
120generation must be inspected and approved by local code
121officials prior to its operation in parallel with an electric
122utility to ensure compliance with applicable local codes.
123     2.  Provisions that permit the electric utility to inspect
124customer-owned renewable energy generation and its component
125equipment and the documents necessary to ensure compliance with
126subsections (2), (3), and (4). The electric utility shall have
127the right to have personnel present at the initial testing of
128customer equipment and protective apparatus.
129     3.  A provision that the customer who operates customer-
130owned renewable energy generation is responsible for protecting
131its generating equipment, inverters, protective devices, and
132other system components from damage from the normal and abnormal
133conditions and operations that occur on the electric utility
134system in delivering and restoring power and is responsible for
135ensuring that customer-owned renewable energy generation
136equipment is inspected, maintained, and tested in accordance
137with the manufacturer's instructions to ensure that it is
138operating correctly and safely.
139     4.  A requirement for general liability insurance for
140personal 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
1423.
143     5.  Identification of any fees or charges approved pursuant
144to subsection (4).
145     (b)  Each electric utility's standard interconnection
146agreement for customer-owned renewable energy generation may
147require the customer to:
148     1.  Install, at the electric utility's expense for Tier 1
149systems and at the customer's expense for Tier 2 and Tier 3
150systems, a manual disconnect switch of the visible load break
151type to provide a separation point between the AC power output
152of the customer-owned renewable energy generation and any
153customer wiring connected to the electric utility's system. The
154manual disconnect switch shall be mounted separately from the
155meter socket and shall be readily accessible to the electric
156utility and capable of being locked in the open position with an
157electric utility padlock. The electric utility may open the
158switch, isolating the customer-owned renewable energy
159generation, without prior notice to the customer. To the extent
160practicable, however, prior notice shall be given.
161     2.  Provide a written agreement to hold harmless and
162indemnify the electric utility from all loss resulting from the
163operation of the customer-owned renewable energy generation,
164except when loss occurs due to the negligent actions of the
165electric utility.
166     (6)  ADMINISTRATIVE REQUIREMENTS.--Upon a customer's
167request, the electric utility shall provide, within 5 business
168days, an application for interconnection detailing the
169information necessary to execute the standard interconnection
170agreement. Within 10 business days after receipt of the
171customer's application, the electric utility shall provide
172written notice that it has received all documents required by
173the standard interconnection agreement. The written notice shall
174also include dates for any physical inspection of the customer-
175owned renewable energy generation necessary for the electric
176utility to confirm compliance with subsections (2), (3), (4),
177and (5). The standard interconnection agreement shall be
178executed by the electric utility within 30 calendar days after
179receipt of a completed application for Tiers 1 and 2, and within
18060 calendar days for Tier 3 if an interconnection study is
181necessary. The customer must execute the standard
182interconnection agreement and return it to the electric utility
183at least 5 business days prior to beginning parallel operations.
184     (7)  CONDITIONS FOR DISCONNECT.--Any of the following
185conditions shall be cause for the electric utility to disconnect
186customer-owned renewable energy generation from its system:
187     (a)  Electric utility system emergencies or maintenance
188requirements.
189     (b)  Hazardous conditions existing on the electric utility
190system due to the operation of the customer's generating or
191protective equipment as determined by the electric utility.
192     (c)  Adverse electrical effects, such as power quality
193problems, on the electrical equipment of the electric utility's
194other electric consumers caused by the customer-owned renewable
195energy generation as determined by the electric utility.
196     (d)  Failure of the customer to maintain the required
197insurance coverage.
198     (8)  NET METERING.--
199     (a)  Each electric utility shall enable each customer-owned
200renewable energy generation facility interconnected to the
201electric utility's electrical grid pursuant to this section to
202net meter.
203     (b)  Each electric utility shall install, at no additional
204cost to the customer, metering equipment at the point of
205delivery capable of measuring the difference between the
206electricity supplied to the customer from the electric utility
207and the electricity generated by customer-owned renewable energy
208generation, including excess electric energy delivered to the
209electric utility's electrical grid.
210     (c)  Meter readings shall be taken monthly on the same
211cycle as required under the otherwise applicable rate schedule.
212     (d)  The electric utility shall charge for electricity used
213by the customer in excess of the electricity supplied by
214customer-owned renewable energy generation in accordance with
215normal billing practices.
216     (e)  During any billing cycle, excess customer-owned
217renewable energy generation delivered to the electric utility's
218electrical grid shall be credited to the customer's energy
219consumption for the next month's billing cycle.
220     (f)  Energy credits produced pursuant to paragraph (e)
221shall accumulate and be used to offset the customer's energy
222usage in subsequent months for a period of not more than 12
223months. At the end of each calendar year, the electric utility
224shall pay the customer for any unused energy credits at a rate
225equal to the full retail rate under the otherwise applicable
226rate schedule. Payment for accumulated year-end energy credits
227shall not include any portion of the applicable customer charge
228or demand charge.
229     (g)  When a customer leaves the system, that customer's
230unused credits for excess kilowatt hours generated shall be paid
231to the customer at a rate equal to the full retail rate under
232the otherwise applicable rate schedule.
233     (9)  REPORTING REQUIREMENTS.--Each electric utility shall
234report the following to the commission by April 1 of each year:
235     (a)  Total number of customer-owned renewable energy
236generation interconnections.
237     (b)  Total kilowatt capacity of customer-owned renewable
238energy generation interconnected.
239     (c)  Total kilowatt hours received by interconnected
240customers from the electric utility, by month and by year for
241the previous calendar year.
242     (d)  Total kilowatt hours of customer-owned renewable
243energy generation delivered to the electric utility, by month
244and by year for the previous calendar year.
245     (e)  Total energy payments made to interconnected customers
246for customer-owned renewable energy generation delivered to the
247electric utility.
248     (f)  For each individual customer-owned renewable energy
249generation 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
255to interconnect with customer-owned renewable energy generation
256or provide net metering or attempts to impose unreasonable
257standards or conditions, the customer may petition the
258commission for relief. The electric utility shall have the
259burden of demonstrating to the commission why interconnection
260with the customer-owned renewable energy generation should not
261be required, why net metering should not be provided, or that
262the standards or conditions the electric utility seeks to impose
263on the customer-owned renewable energy generation are
264reasonable. The commission shall resolve each issue set forth in
265the petition in an expedited manner.
266     Section 2.  This act shall take effect July 1, 2008.


CODING: Words stricken are deletions; words underlined are additions.