NY Pub Serv L § 66-J (2021)
2021 New York Laws PBS - Public Service Article 4 - 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; (viii) a non-residential customer  of  an  electric  corporation  which  owns  or operates  micro-hydroelectric  generating  equipment located and used at its premises;  and  (ix)  a  non-residential  customer  of  an  electric corporation  which  owns  or  operates  farm  waste  electric 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 two 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 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 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 or farm waste   generating  equipment  as  described  in  subparagraph  (ix)  of paragraph (a) of subdivision one of this section, 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.  (h)  A  non-residential  customer-generator as defined by subparagraph (ix) of paragraph (a) of subdivision one of this  section  that  locates farm  waste  generating  equipment with a net 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  or  farm  waste   generating equipment  customer-generators  as  described  in  subparagraph  (ix) of paragraph (a) of subdivision one of this section, 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  or  farm waste   generating   equipment   customer-generators   as  described  in subparagraph (ix) of paragraph (a) of subdivision one  of  this  section 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),  (ii)  or  (ix)  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.