Source: http://register.dls.virginia.gov/details.aspx?id=5422
Timestamp: 2019-05-23 11:08:35
Document Index: 717377501

Matched Legal Cases: ['§ 12', '§ 56', '§ 56', '§ 56', '§ 56', '§ 56', '§ 56']

Vol. 32 Iss. 9 (Final Regulation) 20VAC5-315, Regulations Governing Net Energy Metering December 28, 2015
Title of Regulation: 20VAC5-315. Regulations Governing Net Energy Metering (amending 20VAC5-315-20, 20VAC5-315-30, 20VAC5-315-40, 20VAC5-315-70).
Statutory Authority: §§ 12.1-13 and 56-594 of the Code of Virginia.
Agency Contact: Armando J. deLeón, Utilities Engineer, Division of Energy Regulation, State Corporation Commission, P.O. Box 1197, Richmond, VA 23218, telephone (804) 371-9392, FAX (804) 371-9350, or email armando.deleon@scc.virginia.gov.
Pursuant to Chapters 431 and 432 of the 2015 Acts of Assembly, § 56-594 of the Code of Virginia was amended to, among other things, increase the maximum generating capacity of an electrical generating facility owned or operated by an electric utility's nonresidential customer that may be eligible for participation in the utility's net energy metering program and specify that new net metering facilities may not exceed the customer's expected annual energy consumption based on 12 months of billing history. The amendments to the rules (i) increase the capacity limit for participation by nonresidential customers in the net energy metering program; (ii) eliminate the authorization for electric utilities to allow a higher capacity limit for nonresidential customers than that set forth in the statute; (iii) require that new net metering facilities may not exceed the customer's expected annual energy consumption based on 12 months of billing history; (iv) require any eligible customer-generator seeking to participate in net energy metering to notify its supplier and receive approval to interconnect prior to installation of an electrical generating facility; and (v) clarify requirements regarding the customer-generator's obligation to bear the costs of equipment required for the interconnection to the supplier's electric distribution system.
Changes from the proposed regulation include new language to make clear that a customer seeking to add capacity to a generator must file a new application with the distribution company; a modification to the Interconnection Form to be provided by customer-generators to their electric distribution company to properly align with the process set forth in the statute; and several changes to the rules to ensure consistency in language and verb tense.
AT RICHMOND, NOVEMBER 24, 2015
CASE NO. PUE-2015-00057
governing net energy metering
The Regulations Governing Net Energy Metering, 20 VAC 5-315-10 et seq. ("Existing Rules"), adopted by the State Corporation Commission ("Commission") pursuant to § 56-594 of the Code of Virginia, establish the requirements for participation by an eligible customer-generator in net energy metering in the Commonwealth of Virginia. The Net Energy Metering Rules include conditions for interconnection and metering, billing, and contract requirements between net metering customers, electric distribution companies, and energy service providers.
On June 5, 2015, the Commission entered an Order Establishing Proceeding ("Order") to consider revisions to the Existing Rules to reflect statutory changes enacted by Chapters 431 and 432 of the 2015 Acts of Assembly, which amended § 56-594 of the Code of Virginia to: (1) increase the capacity limit for participation by nonresidential customers in the net energy metering program from 500 kilowatts to one megawatt, for facilities placed into service after July 1, 2015; (2) eliminate the authorization for electric utilities to allow a higher capacity limit for nonresidential customers than that set forth in the statute; (3) require that the capacity of any generating facility installed after July 1, 2015, shall not exceed the expected annual energy consumption based on the previous twelve months of billing history or an annualized calculation of billing history if twelve months of billing history is not available; (4) require any eligible customer-generator seeking to participate in net energy metering to notify its supplier and receive approval to interconnect prior to installation of an electrical generating facility; and (5) clarify requirements regarding the customer-generator's obligation to bear the costs of equipment required for the interconnection to the supplier's electric distribution system.
The Commission appended to its Order proposed amendments ("Proposed Rules") revising the Existing Rules, which were prepared by the Staff of the Commission to reflect the revisions mandated by Chapters 431 and 432.
Notice of the proceeding and the Proposed Rules were published in the Virginia Register of Regulations on June 29, 2015. Additionally, each Virginia electric distribution company was directed to serve a copy of the Order upon each of their respective net metering customers. Interested persons were directed to file any comments and requests for hearing on the Proposed Rules on or before July 31, 2015.
Appalachian Power Company, Kentucky Utilities ("KU"), Virginia Electric and Power Company ("Virginia Power"), the Virginia Electric Cooperatives ("Cooperatives"),1 Maryland DC Virginia Solar Energy Industries Association ("MDV-SEIA"), Solar Services, Inc., the Sierra Club ("Sierra Club"), Joy Loving, Timothy Carr, Thomas Crockett, Joseph Schill, Carollyn Ogelsby, Charles Bier, Timothy Dolan, Mr. and Mrs. Edwin Craun, Mark Hanson, Mark Howard, Sue Krantz, Richard Good, William Marsh, Monica Rokicki, J. Daryl Byler, Jeanne Kirby, Walter Barry, Douglass McCallum, John M. Roberts, Odile Heisel, Brendan Breen, John Wray, Douglass Jones, Bryan Hantman and Mark Laity-Snyder filed comments. No one requested a hearing on the Proposed Rules.
NOW THE COMMISSION, upon consideration of this matter, is of the opinion and finds that the regulations attached hereto as Appendix A ("Revised Rules") should be adopted as final rules. To the extent parties have requested changes to the Proposed Rules that go beyond the scope of the modifications required by Chapters 431 and 432, we will not expand the scope of this proceeding to consider issues beyond those required to implement the amendments to § 56-594 of the Code of Virginia. In addition, some commenters have objected to the requirements set forth in Chapters 431 and 432 or the language used in the statute. These matters are beyond the Commission's jurisdiction to remedy and will not be addressed herein.
Virginia Power notes that the Proposed Rules limit the capacity of a customer-owned generation facility, but do so in terms of kilowatt hours rather than kilowatts. While we recognize the concern of Virginia Power, the Proposed Rules correspond with the express direction of the General Assembly in Chapters 431 and 432. Similarly, we will decline to make the modification requested by Joy Loving, Timothy Carr, Thomas Crockett, and Joseph Schill, who note that the rated capacity of a generator is not necessarily the same as the output of the generator. The statute specifically directs the Commission to limit participation based on the capacity of the generator.
KU requests additional clarification regarding the Proposed Rules' applicability to customers adding capacity to an existing generator. We have revised the rules to make clear that a customer seeking to add capacity to a generator must file a new application with the distribution company. KU also requests that the rules require an additional application if the customer replaces a significant portion of the generator. If this replacement results in an increase in capacity, the rules will require a new application; if the capacity is not increased, no new application is required.
Carollyn Ogelsby, Joy Loving, Timothy Carr, Thomas Crockett, Charles Bier, Timothy Dolan, Mr. and Mrs. Edwin Craun, Mark Hanson, and Mark Howard all request that the capacity calculated by the distribution company allow for accommodation of future needs or future conversion of non-renewable customer-owned generation to renewable. Under the Revised Rules, any such conversion or modification would result in an increase in capacity, and thus a new application.
The Sierra Club, MDV-SEIA, Joy Loving and Thomas Schill request additional clarification regarding calculation of capacity based on a customer's previous twelve months of usage. We do not believe that additional clarification is necessary. The statute describes the requirement discussed by the Sierra Club as "based on usage during the previous 12 month period," which will be determined by the distribution company using existing methodologies for estimating usage. If a customer disagrees with the calculation, they can pursue an informal complaint with the Commission.
Several commenters request changes in the approval process and application form to be submitted to the distribution company by the customer. The Cooperatives note that there is a problem in the order of approval in 20 VAC 5-315-30 (A)(1) and (A)(2). There are two steps to the approval process, but only one form is provided in the rules. We agree that there are two steps in the process under the rules. First, the customer must notify the utility of the generation to be interconnected, including the proposed unit's generating capacity. Second, the customer must verify that all requirements for interconnection have been met. The Revised Rules modify the form to properly align with the process set forth in the statute.
MDV-SEIA requests that the rules be modified to make clear that a distribution company may only reject the application if the customer fails to meet the requirements set forth in the statute. We do not believe this clarification is necessary. If a customer believes an application has been denied improperly, the customer may pursue an informal complaint with the Commission.
We will deny additional requests for changes to the rules regarding notification and approval. The Revised Rules clearly define a two-step process for interconnection of new customer-owned generation, and clearly delineate the notification required by each party, all consistent with the requirements set forth in the statute.
Virginia Power requests that the Commission eliminate the requirement in 20 VAC 5-315-40 for multiple signatures, requiring only one signature for certification and allowing the form to be automated electronically. We disagree with Virginia Power. The rules currently require multiple signatures for the safety of the customer and distribution company before the facility is interconnected. The Commission is unaware of any customer seeking a more streamlined process. Virginia Power also requests that the rules require that all equipment must meet Underwriters Laboratories and The Institute of Electrical and Electronics Engineers standards. This is already provided for in 20 VAC 5-315-70, and thus no further modification of the rules is necessary.
The Cooperatives and KU each request several changes to 20 VAC 5-315-40 (A)(7) to ensure consistency in language and verb tense. We agree, and have modified the Revised Rules to address these concerns.
Timothy Carr, Richard Good, and the Sierra Club each request additional clarification regarding the costs the generator must pay the utility for installation. We clarify that the costs in question are equipment and labor costs for work needed to interconnect with the distribution company. These costs are already addressed in the rules, and thus no modification is needed at this time.
Virginia Power requests that the Commission modify 20 VAC 5-315-70 to make clear that in addition to other costs noted in the rules, the customer-generator will be responsible for: (1) additional tests related to the interconnection; and (2) the costs of interconnection. We do not believe that additional clarification is necessary, as the costs to be paid by the customer are already defined by the rules.
(1) The Regulations Governing Net Energy Metering, as shown in Appendix A to this Order, are hereby adopted and are effective as of December 28, 2015.
(2) A copy of this Order with Appendix A including the Regulations Governing Net Energy Metering shall be forwarded to the Registrar of Regulations for publication in the Virginia Register of Regulations.
(3) On or before January 12, 2016, each utility in the Commonwealth subject to Chapter 10 (§ 56-232 et seq.) of Title 56 of the Code of Virginia shall file with the Clerk of the Commission, in this docket, one (1) original document containing any revised tariff provisions necessary to implement the regulations adopted herein, and shall also file a copy of the document containing the revised tariff provisions with the Commission's Division of Energy Regulation. The Clerk of the Commission need not distribute copies but shall make such filings available for public inspection in the Clerk's Office and post them on the Commission's website at: http://www.scc.virginia.gov/case.
(4) This docket shall remain open to receive the filings from electric utilities pursuant to Ordering Paragraph (3).
AN ATTESTED COPY hereof shall be sent by the Clerk of the Commission to all electric distribution companies licensed in Virginia as shown on Appendix B, hereto; and a copy shall be sent to the Commission's Office of General Counsel and Division of Energy Regulation.
1 The filing entitled "Comments of the Virginia Electric Cooperatives" was submitted jointly on behalf of: A&N Electric Cooperative, BARC Electric Cooperative, Central Virginia Electric Cooperative, Community Electric Cooperative, Craig-Botetourt Electric Cooperative, Mecklenburg Electric Cooperative, Northern Neck Electric Cooperative, Northern Virginia Electric Cooperative, Powell Valley Electric Cooperative, Prince George Electric Cooperative, Rappahannock Electric Cooperative, Shenandoah Valley Electric Cooperative, and Southside Electric Cooperative, as well as the Virginia, Maryland & Delaware Association of Electric Cooperatives.
"Electric distribution company" means the entity that owns and/or operates the distribution facilities delivering electricity to the premises of an agricultural net metering customer or a net metering customer.
"Net metering customer" means a customer owning and operating, or contracting with other persons to own or operate, or both, an electrical generating facility consisting of one or more renewable fuel generators having an aggregate generation capacity of not more than 20 kilowatts for residential customers and not more than 500 kilowatts one megawatt for nonresidential customers unless the electric distribution company has chosen a higher capacity limit for nonresidential customers in its net metering tariff. The generating facility shall be operated under a net metering service arrangement.
5. Are intended primarily to offset all or part of the net metering customer's own electricity requirements. The capacity of any generating facility installed [ on or ] after July 1, 2015, shall not exceed the expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available.
A. A prospective agricultural net metering customer or a prospective net metering customer (hereinafter referred to as "customer") shall submit a completed commission-approved notification form to the electric distribution company and, if different from the electric distribution company, to the energy service provider, according to the time limits in this subsection. If the prospective customer has contracted with another person to own or operate, or both, the generator or generators, then the notice will include detailed, current, and accurate contract information for the owner or operator, or both, including without limitation, the name and title of one or more individuals responsible for the interconnection and operation of the generator or generators, a telephone number, a physical street address other than a post office box, a fax number, and an email address for each such person.
1. A prospective residential customer proposing to install an electrical generating facility with an alternating current capacity of 25 kilowatts or less shall submit the notification form at least 30 days prior to the date the prospective customer intends to interconnect the generating facility to the electric distribution company's distribution facilities. All equipment necessary to complete the interconnection of the generating facility shall have been installed prior to submitting the notification form shall notify its supplier and receive approval to interconnect prior to installation [ of or adding capacity to ] an electrical generating facility. The electric distribution company shall have 30 days from the date of notification to determine whether the requirements contained in 20VAC5-315-40 have been met. The date of notification shall be considered to be the third day following the mailing of the notification form by the prospective customer.
2. A prospective nonresidential customer proposing to install an electrical generating facility with an alternating current capacity greater than 25 kilowatts shall submit the notification form at least 60 days prior to the date the prospective customer intends to interconnect the generating facility to the electric distribution company's distribution facilities. All equipment necessary to complete the interconnection of the generating facility shall have been installed prior to submitting the notification form. The prospective customer should contact its electric distribution company prior to making financial commitments shall notify its supplier and receive approval to interconnect prior to installation [ of or adding capacity to ] an electrical generating facility. The electric distribution company shall have 60 days from the date of notification to determine whether the requirements contained in 20VAC5-315-40 have been met. The date of notification shall be considered to be the third day following the mailing of the notification form by the prospective customer.
B. Thirty-one days after the date of notification for a generating facility with an alternating current capacity of 25 kilowatts or less residential customer, and 61 days after the date of notification for a generating facility with an alternating current capacity greater than 25 kilowatts nonresidential customer, the prospective customer may interconnect and begin operation of the generating facility unless the electric distribution company or the energy service provider requests a waiver of this requirement under the provisions of 20VAC5-315-80 prior to the 31st or 61st day, respectively. In cases where the electric distribution company or energy service provider requests a waiver, a copy of the request for waiver must be mailed simultaneously by the requesting party to the prospective customer and to the commission's Division of Energy Regulation.
C. The electric distribution company shall file with the commission's Division of Energy Regulation a copy of each completed notification form within 30 days of final interconnection.
3. [ In cases where a The ] licensed electrician [ who ] installs the customer's generator or generators [ , the licensed electrician has certified certifies ], by signing the commission-approved notification form, that any required manual disconnect switch or switches [ have been are being ] installed properly and that the generator or generators have been installed in accordance with the manufacturer's specifications as well as all applicable provisions of the National Electrical Code. If the customer or licensed Virginia Class A or B general contractor installs the customer's generator or generators, the signed final electrical inspection can be used in lieu of the licensed electrician's certification.
4. The vendor [ has certified certifies ], by signing the commission-approved notification form, that the generator or generators being installed are in compliance with the requirements established by Underwriters Laboratories or other national testing laboratories in accordance with IEEE Standard 1547, Standard for Interconnecting Distributed Resources with Electric Power Systems, July 2003.
7. In the case of a customer's electrical generating facility having an alternating current capacity greater than 25 kilowatts, the The following requirements shall be met before interconnection may occur:
a. Electric distribution facilities and customer impact limitations. A customer's generator shall not be permitted to interconnect to distribution facilities if the interconnection would reasonably lead to damage to any of the electric distribution company's facilities or would reasonably lead to voltage regulation or power quality problems at other customer revenue meters due to the incremental effect of the generator on the performance of the electric distribution system, unless the customer reimburses the electric distribution company for its cost [ to modify any facilities needed ] to accommodate the interconnection, including [ any the ] reasonable [ costs cost ] of equipment required for the interconnection.
b. Secondary, service, and service entrance limitations. The capacity of the generators at any one service location shall be less than the capacity of the electric distribution company-owned secondary, service, and service entrance cable connected to the point of interconnection, unless the customer reimburses the electric distribution company for its cost to modify any facilities needed [ all the ] reasonable [ costs cost ] of equipment required [ to accommodate for ] the interconnection.
c. Transformer loading limitations. A customer's generator shall not have the ability to overload the electric distribution company's transformer, or any transformer winding, beyond manufacturer or nameplate ratings, unless the customer reimburses the electric distribution company for its cost to modify any facilities needed [ all the ] reasonable [ costs cost ] of equipment required [ to accommodate for ] the interconnection.
e. Balance limitation. The generator or generators shall not create a voltage imbalance of more than 3.0% at any other customer's revenue meter if the electric distribution company transformer, with the secondary connected to the point of interconnection, is a three-phase transformer, unless the customer reimburses the electric distribution company for its cost to modify any facilities needed [ all the ] reasonable [ costs cost ] of equipment required [ to accommodate for ] the interconnection.
B. A prospective customer shall not be allowed to interconnect a generator if doing so will cause the total rated generating alternating current capacity of all interconnected net metered generators, as defined in 20VAC5-315-20, within that customer's electric distribution company's Virginia service territory to exceed 1.0% of that company's Virginia peak-load forecast for the previous year. In any case where a prospective customer has submitted a notification form required by 20VAC5-315-30 and that customer's interconnection would cause the total rated generating alternating current capacity of all interconnected net metered generators, as defined in 20VAC5-315-20, within that electric distribution company's service territory to exceed 1.0% of that company's Virginia peak-load forecast for the previous year, the electric distribution company shall, at the time it becomes aware of the fact, send written notification to the prospective customer and to the commission's Division of Energy Regulation that the interconnection is not allowed. In addition, upon request from any customer, the electric distribution company shall provide to the customer the amount of capacity still available for interconnection pursuant to § 56-594 D of the Code of Virginia.
C. Neither the electric distribution company nor the energy service provider shall impose any charges upon a customer for any interconnection requirements specified by this chapter, except as provided under subdivisions A 5, 6, and 7 of this section, [ and ] 20VAC5-315-50 [ , and 20VAC5-315-70 ] as related to additional metering.
Except as provided in 20VAC5-315-40 A 5 and 6 and 20VAC5-315-50 as related to additional metering, no customer shall be required to pay for additional metering, testing or controls in order to interconnect with the electric distribution company or energy service provider. However, this chapter shall not preclude a customer, an electric distribution company or an energy service provider from installing additional controls or meters, or from conducting additional tests. The expenses associated with these additional meters, tests or equipment shall be borne by the party desiring the additional meters, tests or equipment. [ A net metering customer's An eligible customer-generator's ] electrical generating system, and each electrical generating system of an [ eligible ] agricultural [ net metering customer customer-generator ], shall meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories. Beyond the requirements set forth in this chapter, and to insure public safety, power quality, and reliability of the supplier's electric distribution system, [ a net metering customer an eligible customer-generator ] or [ eligible ] agricultural [ net metering customer customer-generator ] whose electrical generating system meets those standards and rules shall bear all reasonable costs of equipment required for the interconnection to the supplier's electric distribution system, including costs, if any, to (i) install additional controls and (ii) perform additional tests.
Net Metering Interconnection Notification, Form NMIN (rev. 7/14)
VA.R. Doc. No. R15-4412; Filed December 4, 2015, 4:31 p.m.