KRS § 278.466 — KY Code / Title XXIV / Chapter 278 / Section 278.466
278.466 Availability of net metering -- Type, expense, and installation of meter -- Compensation to eligible customer-generators for electricity fed back into grid -- Commission to set compensation rate -- Excess generation credits nonrefundable -- Twenty-five year cap on preexisting net metering tariff provisions -- Safety and power quality standards -- Transferability of installation at same premises
Status: in_force

278.466 Availability of net metering -- Type, expense, and installation of meter --

Compensation to eligible customer-generators for electricity fed back into grid

-- Commission to set compensation rate -- Excess generation credits

nonrefundable -- Twenty-five year cap on preexisting net metering tariff

provisions -- Safety and power quality standards -- Transferability of

installation at same premises.

(1) Each retail electric supplier shall make net metering available to any eligible

customer-generator that the supplier currently serves or solicits for service. If the

cumulative generating capacity of net metering systems reaches one percent (1%) of

a supplier's single hour peak load during a calendar year, the supplier shall have no

further obligation to offer net metering to any new customer-generator at any

subsequent time.

(2) Each retail electric supplier serving a customer with eligible electric generating

facilities shall use a standard kilowatt-hour meter capable of registering the flow of

electricity in two (2) directions. Any additional meter, meters, or distribution

upgrades needed to monitor the flow in each direction shall be installed at the

customer-generator's expense. If additional meters are installed, the net metering

calculation shall yield the same result as when a single meter is used.

(3) A retail electric supplier serving an eligible customer-generator shall compensate

that customer for all electricity produced by the customer's eligible electric

generating facility that flows to the retail electric supplier, as measured by the

standard kilowatt-hour metering prescribed in subsection (2) of this section. The

rate to be used for such compensation shall be set by the commission using the

ratemaking processes under this chapter during a proceeding initiated by a retail

electric supplier or generation and transmission cooperative on behalf of one (1) or

more retail electric suppliers.

(4) Each billing period, compensation provided to an eligible customer-generator shall

be in the form of a dollar-denominated bill credit. If an eligible customer-generator's

bill credit exceeds the amount to be billed to the customer in a billing period, the

amount of the credit in excess of the customer's bill shall carry forward to the

customer's next bill. Excess bill credits shall not be transferable between customers

or premises. If an eligible customer-generator closes his or her account, no cash

refund for accumulated credits shall be paid.

(5) Using the ratemaking process provided by this chapter, each retail electric supplier

shall be entitled to implement rates to recover from its eligible customer-generators

all costs necessary to serve its eligible customer-generators, including but not

limited to fixed and demand-based costs, without regard for the rate structure for

customers who are not eligible customer-generators.

(6) For an eligible electric generating facility in service prior to the effective date of the

initial net metering order by the commission in accordance with subsection (3) of

this section, the net metering tariff provisions in place when the eligible customer-

generator began taking net metering service, including the one-to-one (1:1)

kilowatt-hour denominated energy credit provided for electricity fed into the grid,

shall remain in effect at those premises for a twenty-five (25) year period, regardless

of whether the premises are sold or conveyed during that twenty-five (25) year

period. For any eligible customer-generator to whom this subsection applies, each

net metering contract or tariff under which the customer takes service shall be

identical, with respect to energy rates, rate structure, and monthly charges, to the

contract or tariff to which the same customer would be assigned if the customer

were not an eligible customer-generator.

(7) Electric generating systems and interconnecting equipment used by eligible

customer-generators shall meet all applicable safety and power quality standards

established by the National Electrical Code (NEC), Institute of Electrical and

Electronics Engineers (IEEE), and accredited testing laboratories such as

Underwriters Laboratories.

(8) An eligible customer-generator installation is transferable to other persons at the

same premises upon notification to the retail electric supplier and verification that

the installation is in compliance with the applicable safety and power quality

standards in KRS 278.467 and in subsection (7) of this section.

(9) Any upgrade of the interconnection between the retail electric supplier and the

customer-generator that is required by commission-approved tariffs for the purpose

of allowing net metering shall be made at the expense of the customer-generator.