2013 New York Consolidated Laws
PBS - Public Service
Article 4 - (64 - 77) PROVISIONS RELATING TO GAS AND ELECTRIC CORPORATIONS; REGULATION OF PRICE OF GAS AND ELECTRICITY
66-J - Net energy metering for residential solar, farm waste, non-residential solar electric generating systems, micro-combined heat and power generating equipment, fuel cell electric generating equipment, and micro-hydroelectric generating equipment.

 
    §  66-j.  Net  energy  metering  for  residential  solar,  farm waste,
  non-residential solar electric generating systems,  micro-combined  heat
  and power generating equipment, fuel cell electric generating equipment,
  and micro-hydroelectric generating equipment. 1. Definitions. As used in
  this section, the following terms shall have the following meanings:
    (a)  "Customer-generator"  means:  (i)  a  residential  customer of an
  electric corporation, who owns or  operates  solar  electric  generating
  equipment  located  and used at his or her residence; (ii) a customer of
  an electric corporation,  who  owns  or  operates  farm  waste  electric
  generating equipment located and used at his or her "farm operation," as
  such  term is defined in subdivision eleven of section three hundred one
  of the agriculture and markets law; (iii) a non-residential customer  of
  an electric corporation which owns or operates solar electric generating
  equipment  located and used at its premises; (iv) a residential customer
  of an electric corporation who owns, leases or  operates  micro-combined
  heat  and power generating equipment located on the customer's premises;
  (v) a residential customer of an electric corporation who  owns,  leases
  or  operates  fuel  cell  generating equipment located on the customer's
  premises; and (vi) a non-residential customer of an electric corporation
  who owns, leases or operates fuel cell generating equipment located  and
  used  at  the  customer's  premises;  (vii) a residential customer of an
  electric  corporation,  who   owns   or   operates   micro-hydroelectric
  generating  equipment  located  and  used  at  his or her residence; and
  (viii) a non-residential customer of an electric corporation which  owns
  or operates micro-hydroelectric generating equipment located and used at
  its premises.
    (b) "Net energy meter" means a meter that measures the reverse flow of
  electricity  to register the difference between the electricity supplied
  by an electric corporation to the customer-generator and the electricity
  provided to the corporation by that customer-generator.
    (c) "Net energy metering" means the use  of  a  net  energy  meter  to
  measure,  during  the billing period applicable to a customer-generator,
  the net amount of electricity supplied by an  electric  corporation  and
  provided to the corporation by a customer-generator.
    (d)  "Solar electric generating equipment" means a photovoltaic system
  (i) (A) in the case  of  a  residential  customer  (other  than  a  farm
  utilizing  a  residential meter), with a rated capacity of not more than
  twenty-five kilowatts; (B) in  the  case  of  a  customer  who  owns  or
  operates  a farm operation as such term is defined in subdivision eleven
  of section  three  hundred  one  of  the  agriculture  and  markets  law
  utilizing a residential meter with a rated capacity of not more than one
  hundred  kilowatts;  and  (C) in the case of a non-residential customer,
  with a rated capacity of not more than two thousand kilowatts; and  (ii)
  that  is  manufactured,  installed,  and  operated  in  accordance  with
  applicable government and industry standards, that is connected  to  the
  electric   system   and   operated   in  conjunction  with  an  electric
  corporation's transmission and  distribution  facilities,  and  that  is
  operated  in  compliance with any standards and requirements established
  under this section.
    (e) "Farm waste electric generating equipment"  means  equipment  that
  generates   electric  energy  from  biogas  produced  by  the  anaerobic
  digestion of agricultural  waste,  such  as  livestock  manure,  farming
  wastes and food processing wastes with a rated capacity of not more than
  one thousand kilowatts, that is:
    (i)   manufactured,   installed,   and  operated  in  accordance  with
  applicable government and industry standards;
    (ii) connected to the electric system and operated in conjunction with
  an electric corporation's transmission and distribution facilities;

    (iii) operated in  compliance  with  any  standards  and  requirements
  established under this section;
    (iv)  fueled  at  a  minimum  of  ninety percent on an annual basis by
  biogas produced from the anaerobic digestion of agricultural waste  such
  as livestock manure materials, crop residues, and food processing waste;
  and
    (v)  fueled  by  biogas generated by anaerobic digestion with at least
  fifty  percent  by  weight  of  its  feedstock  being  livestock  manure
  materials on an annual basis.
    (f)  "Micro-combined  heat  and  power  generating equipment" means an
  integrated,  cogenerating  building   heating   and   electrical   power
  generation  system,  operating on any fuel and of any applicable engine,
  fuel cell, or other technology, with a rated capacity of  at  least  one
  kilowatt and not more than ten kilowatts electric and any thermal output
  that  at  full  load  has  a  design  total  fuel  use efficiency in the
  production of heat and electricity of not less than eighty percent,  and
  annually  produces at least two thousand kilowatt hours of useful energy
  in  the  form  of  electricity  that  may  work  in   combination   with
  supplemental   or   parallel   conventional  heating  systems,  that  is
  manufactured, installed  and  operated  in  accordance  with  applicable
  government  and  industry  standards,  that is connected to the electric
  system and  operated  in  conjunction  with  an  electric  corporation's
  transmission and distribution facilities.
    (g) "Fuel cell electric generating equipment" means:
    (i)(A)  in  the  case of a residential customer, a solid oxide, molten
  carbonate, proton exchange membrane or phosphoric acid fuel cell with  a
  combined  rated  capacity of not more than ten kilowatts; and (B) in the
  case of a non-residential customer, a  solid  oxide,  molten  carbonate,
  proton  exchange  membrane  or phosphoric acid fuel cell with a combined
  rated capacity of not more than one thousand five hundred kilowatts; and
    (ii) that is manufactured, installed and operated in  accordance  with
  applicable  government  and industry standards, that is connected to the
  electric system and operated in parallel with an electric  corporation's
  transmission  and  distribution  facilities,  and  that  is  operated in
  compliance with any standards and requirements  established  under  this
  section.
    (h)  "Micro-hydroelectric  generating equipment" means a hydroelectric
  system (i) (A) in the case of  a  residential  customer,  with  a  rated
  capacity  of not more than twenty-five kilowatts; and (B) in the case of
  a non-residential customer, with a rated capacity of not more  than  two
  thousand  kilowatts;  and  (ii)  that  is  manufactured,  installed, and
  operated  in  accordance  with  applicable   government   and   industry
  standards,  that  is  connected  to  the electric system and operated in
  conjunction with an electric corporation's transmission and distribution
  facilities, and that is operated in compliance with  any  standards  and
  requirements established under this section.
    2.  Interconnection  and  net energy metering. An electric corporation
  shall provide for the interconnection of solar and farm  waste  electric
  generating   equipment,   micro-combined   heat   and  power  generating
  equipment,    fuel    cell    electric    generating    equipment    and
  micro-hydroelectric   generating   equipment  owned  or  operated  by  a
  customer-generator and  for  net  energy  metering,  provided  that  the
  customer-generator  enters  into a net energy metering contract with the
  corporation or complies  with  the  corporation's  net  energy  metering
  schedule  and complies with standards and requirements established under
  this section.
    3. Conditions of service. (a) (i) On or before three months after  the
  effective  date of this section, each electric corporation shall develop

  a model contract and file a schedule  that  establishes  consistent  and
  reasonable  rates,  terms  and  conditions  for  net  energy metering to
  customer-generators, according to the requirements of this section.  The
  commission  shall render a decision within three months from the date on
  which the schedule is filed.
    (ii) On or before three  months  after  the  effective  date  of  this
  subparagraph,  each  electric corporation shall develop a model contract
  and file a schedule that establishes consistent  and  reasonable  rates,
  terms and conditions for net energy metering to non-residential customer
  generators,   according   to  the  requirements  of  this  section.  The
  commission shall render a decision within three months of  the  date  on
  which the schedule is filed.
    (iii)  Each electric corporation shall make such contract and schedule
  available to customer-generators on a first come,  first  served  basis,
  until  the  total  rated  generating  capacity  for solar and farm waste
  electric generating equipment, micro-combined heat and power  generating
  equipment,    fuel    cell    electric    generating    equipment    and
  micro-hydroelectric generating equipment owned, leased  or  operated  by
  customer-generators  in  the corporation's service area is equivalent to
  one percent of the  corporation's  electric  demand  for  the  year  two
  thousand five, as determined by the department.
    (b)  Nothing  in  this  subdivision  shall prohibit a corporation from
  providing net energy metering  to  additional  customer-generators.  The
  commission  shall  have the authority, after January first, two thousand
  twelve, to increase the percent limits if it determines that  additional
  net energy metering is in the public interest.
    (c)  In  the event that the electric corporation determines that it is
  necessary to install a dedicated transformer or transformers,  or  other
  equipment  to  protect  the  safety  and  adequacy  of  electric service
  provided to other customers, a customer-generator shall pay the electric
  corporation's  actual   costs   of   installing   the   transformer   or
  transformers, or other equipment:
    (i)  In  the  case  of a customer-generator who owns or operates solar
  electric generating equipment, micro-combined heat and power  generating
  equipment,     fuel    cell    electric    generating    equipment    or
  micro-hydroelectric generating equipment located and used at his or  her
  residence,  or a non-residential customer-generator who owns or operates
  solar electric generating equipment with a rated capacity  of  not  more
  than  twenty-five  kilowatts,  up  to  a maximum amount of three hundred
  fifty dollars;
    (ii) In the case of a customer-generator who  owns  or  operates  farm
  waste electric generating equipment located and used at his or her "farm
  operation,"  up  to  a  total  amount of five thousand dollars per "farm
  operation"; and
    (iii) In the case of a non-residential customer-generator who owns  or
  operates  solar  electric  generating  equipment  or  fuel cell electric
  generating equipment or micro-hydroelectric generating equipment with  a
  rated  capacity  of  more than twenty-five kilowatts located and used at
  its  premises,  such  cost  shall  be  as  determined  by  the  electric
  corporation    subject   to   review,   upon   the   request   of   such
  customer-generator, by the department.
    (d) An electric corporation shall  impose  no  other  charge  or  fee,
  including back-up, stand by and demand charges, for the provision of net
  energy metering to a customer-generator, except as provided in paragraph
  (d) of subdivision four of this section.
    (e)  A  customer who owns or operates a farm operation as such term is
  defined in subdivision eleven  of  section  three  hundred  one  of  the
  agriculture  and markets law, or a non-residential customer-generator as

  defined by subparagraph (iii) of paragraph (a)  of  subdivision  one  of
  this  section  that  locates solar electric generating equipment or farm
  waste electric generating equipment with a net energy meter on  property
  owned  or  leased  by  such  customer-generator  may  designate all or a
  portion of the net metering  credits  generated  by  such  equipment  to
  meters at any property owned or leased by such customer-generator within
  the  service  territory  of  the  same electric corporation to which the
  customer-generator's net energy  meters  are  interconnected  and  being
  within  the  same load zone as determined by the location based marginal
  price as of the date of initial request  by  the  customer-generator  to
  conduct  net metering. The electric corporation will credit the accounts
  of the customer by applying any credits to the highest use meter  first,
  then subsequent highest use meters until all such credits are attributed
  to  the  customer.  Any  excess  credits  shall  be  carried over to the
  following month.
    (f) A customer who owns or operates a farm operation as such  term  is
  defined  in  subdivision  eleven  of  section  three  hundred one of the
  agriculture and markets law, or a non-residential customer-generator  as
  defined  by  subparagraph  (viii) of paragraph (a) of subdivision one of
  this section that locates micro-hydroelectric generating equipment  with
  a   net   energy   meter   on   property   owned   or   leased  by  such
  customer-generator may designate all or a portion of  the  net  metering
  credits  generated  by such equipment to meters at any property owned or
  leased by such customer-generator within the service  territory  of  the
  same  electric  corporation to which the customer-generator's net energy
  meters are interconnected  and  being  within  the  same  load  zone  as
  determined  by  the  location  based  marginal  price  as of the date of
  initial request by the customer-generator to conduct net  metering.  The
  electric  corporation  will  credit  the  accounts  of  the  customer by
  applying any credits to the highest use  meter  first,  then  subsequent
  highest  use  meters  until  all  such  credits  are  attributed  to the
  customer. Any excess credits shall be  carried  over  to  the  following
  month.
    (g)  A  customer who owns or operates a farm operation as such term is
  defined in subdivision eleven  of  section  three  hundred  one  of  the
  agriculture  and markets law, or a non-residential customer-generator as
  defined by subparagraph (viii) of paragraph (a) of  subdivision  one  of
  this section that locates fuel cell electric generating equipment with a
  net  energy meter on property owned or leased by such customer-generator
  may designate all or a portion of the net metering credits generated  by
  such  equipment  to  meters  at  any  property  owned  or leased by such
  customer-generator within the service territory  of  the  same  electric
  corporation  to  which  the  customer-generator's  net energy meters are
  interconnected and being within the same load zone as determined by  the
  location  based  marginal price as of the date of initial request by the
  customer-generator to conduct net  metering.  The  electric  corporation
  will  credit the accounts of the customer by applying any credits to the
  highest use meter first, then subsequent highest use  meters  until  all
  such credits are attributed to the customer. Any excess credits shall be
  carried over to the following month.
    4.  Rates.  An  electric  corporation shall use net energy metering to
  measure and charge for the net electricity supplied by  the  corporation
  and  provided  to  the corporation by a customer-generator, according to
  these requirements:
    (a) In the event that  the  amount  of  electricity  supplied  by  the
  corporation  during the billing period exceeds the amount of electricity
  provided by a  customer-generator,  the  corporation  shall  charge  the
  customer-generator for the net electricity supplied at the same rate per

  kilowatt  hour  applicable to service provided to other customers in the
  same service class which do not generate electricity onsite.
    (b)  In  the  event  that  the  amount  of  electricity  produced by a
  customer-generator during the  billing  period  exceeds  the  amount  of
  electricity  used by the customer-generator, the corporation shall apply
  a credit to the next bill for service to the customer-generator for  the
  net  electricity  provided at the same rate per kilowatt hour applicable
  to service provided to other customers in the same service  class  which
  do  not  generate electricity onsite, except for micro-combined heat and
  power or fuel cell customer-generators, who  will  be  credited  at  the
  corporation's  avoided  costs.  The  avoided  cost  credit  provided  to
  micro-combined heat and power or fuel cell customer-generators shall  be
  treated  for  ratemaking  purposes  as  a purchase of electricity in the
  market that is includable in commodity costs.
    (c) At the end of the year or annualized over the period that  service
  is  supplied  by  means  of  net  energy metering, the corporation shall
  promptly issue payment at its avoided cost to the customer-generator, as
  defined in subparagraph (i) or (ii) of paragraph (a) of subdivision  one
  of  this  section,  for the value of any remaining credit for the excess
  electricity produced during the year or over the  annualized  period  by
  the customer-generator.
    (d)  In  the  event  that  the  corporation  imposes  charges based on
  kilowatt demand on customers who are in the same service  class  as  the
  customer-generator  but  which  do not generate electricity on site, the
  corporation may impose the  same  charges  at  the  same  rates  to  the
  customer-generator, provided, however, that the kilowatt demand for such
  demand  charges  is  determined  by the maximum measured kilowatt demand
  actually supplied by the corporation to  the  customer-generator  during
  the billing period.
    5. Safety standards. (a) On or before three months after the effective
  date   of  this  section,  each  electric  corporation  shall  establish
  standards  that  are  necessary  for  net  energy   metering   and   the
  interconnection  of  residential solar or farm waste electric generating
  equipment, micro-combined heat and power generating equipment  and  fuel
  cell  electric  generating  equipment and micro-hydroelectric generating
  equipment to its system and that  the  commission  shall  determine  are
  necessary  for  safe  and adequate service and further the public policy
  set forth in this section. Such standards may include but shall  not  be
  limited to:
    (i)  equipment  necessary  to  isolate  automatically  the residential
  solar, farm waste, micro-combined heat and power and fuel cell  electric
  generating  system and micro-hydroelectric generating equipment from the
  utility system for voltage and frequency deviations; and
    (ii)  a  manual   lockable   disconnect   switch   provided   by   the
  customer-generator  which  shall  be  located  on  the  outside  of  the
  customer's  premises  and  externally  accessible  for  the  purpose  of
  isolating  the  residential  solar  and  farm  waste electric generating
  equipment and micro-hydroelectric generating equipment.
    (b) Upon its own motion or upon a complaint, the  commission,  or  its
  designated  representative,  may investigate and make a determination as
  to the reasonableness and necessity of the standards  or  responsibility
  for compliance with the standards.
    (i)  In  the  case  of a customer-generator who owns or operates solar
  electric generating equipment located and used at his or her  residence;
  an  electric  corporation may not require a customer-generator to comply
  with additional safety or performance  standards,  perform  or  pay  for
  additional  tests,  or  purchase additional liability insurance provided
  that the residential solar or farm waste electric generating  equipment,

  micro-combined  heat  and power generating equipment, fuel cell electric
  generating equipment or micro-hydroelectric generating  equipment  meets
  the safety standards established pursuant to this paragraph.
    (ii)  In  the  case  of a customer-generator who owns or operates farm
  waste electric generating equipment located and used at his or her "farm
  operation," an electric corporation may not require a customer-generator
  to comply with additional safety or performance  standards,  perform  or
  pay  for  additional  tests,  or purchase additional liability insurance
  provided that:
    1. the  electric  generating  equipment  meets  the  safety  standards
  established pursuant to this paragraph; and
    2.  the total rated generating capacity (measured in kW) of farm waste
  electric generating equipment that provides electricity to the  electric
  corporation  through  the same local feeder line, does not exceed twenty
  percent of the rated capacity of that local feeder line.
    (iii) In the event that the total rated generating  capacity  of  farm
  waste  electric  generating  equipment  that provides electricity to the
  electric corporation through the same local feeder line  exceeds  twenty
  percent  of  the  rated  capacity of the local feeder line, the electric
  corporation may require the customer-generator to comply with reasonable
  measures to ensure safety of that local feeder line.
    5-a.  Safety  standards;  non-residential  solar  electric  generating
  equipment and micro-hydroelectric generating equipment. (a) On or before
  three months after the effective date of this subdivision, each electric
  corporation  shall establish standards that are necessary for net energy
  metering and  the  interconnection  of  non-residential  solar  electric
  generating  equipment or micro-hydroelectric generating equipment to its
  system and that the commission shall determine are  necessary  for  safe
  and  adequate  service  and  further the public policy set forth in this
  section. Such standards may include but shall not be limited to:
    (i) equipment necessary to isolate automatically the solar  generating
  system  or  micro-hydroelectric  generating  equipment  from the utility
  system for voltage and frequency deviations; and
    (ii)  a  manual   lockable   disconnect   switch   provided   by   the
  customer-generator  which  shall  be  located  on  the  outside  of  the
  customer-generator's premises and externally accessible for the  purpose
  of    isolating    the    solar   electric   generating   equipment   or
  micro-hydroelectric generating equipment.
    (b) In the event that the total rated  generating  capacity  of  solar
  electric   generating   equipment   or   micro-hydroelectric  generating
  equipment that provides electricity to the electric corporation  through
  the  same local feeder line exceeds twenty percent of the rated capacity
  of the local feeder line,  the  electric  corporation  may  require  the
  customer-generator  to  comply with reasonable measures to ensure safety
  of the local feeder line.
    (c) Unless otherwise determined to be necessary by the commission,  an
  electric corporation may not require a customer-generator to comply with
  additional   safety   or  performance  standards,  perform  or  pay  for
  additional tests, or purchase additional  liability  insurance  provided
  that  the  solar  electric  generating  equipment or micro-hydroelectric
  generating equipment meets the safety standards established pursuant  to
  this subdivision.
    (d)  Upon  its  own motion or upon a complaint, the commission, or its
  designated representative, may investigate and make a  determination  as
  to  the  reasonableness and necessity of the standards or responsibility
  for compliance with the standards.
    6. Electric restructuring.  Notwithstanding  the  provisions  of  this
  section,  including,  but  not  limited  to paragraph (b) of subdivision

  three of this  section,  a  customer-generator  shall  comply  with  any
  applicable determinations of the commission relating to restructuring of
  the electric industry.
    7. Severability of provisions. The provisions of this section shall be
  severable  and  if  the  application of any clause, sentence, paragraph,
  subdivision, section, or part thereof  to  any  person  or  circumstance
  shall  be adjudged by any court of competent jurisdiction to be invalid,
  such judgment shall not necessarily affect, impair,  or  invalidate  the
  application  of  any  such  clause,  sentence,  paragraph,  subdivision,
  section, part or remainder thereof, as the case may  be,  to  any  other
  person,  circumstance,  but  shall  be  confined in its operation to the
  clause,  sentence,  paragraph,  subdivision,  section  or  part  thereof
  directly  involved  in the controversy in which such judgment shall have
  been rendered.