Full Text of SB3811 97th General Assembly
SB3811 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB3811 Introduced 2/10/2012, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: |
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Amends the Public Utilities Act. In provisions concerning net metering, makes changes concerning devices used to measure the flow of electricity; the methods for measuring and charging or crediting for the net electricity supplied; and the rates charged to net metering customers. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Public Utilities Act is amended by changing | 5 | | Section 16-107.5 as follows: | 6 | | (220 ILCS 5/16-107.5)
| 7 | | Sec. 16-107.5. Net electricity metering. | 8 | | (a) The Legislature finds and declares that a program to | 9 | | provide net electricity
metering, as defined in this Section,
| 10 | | for eligible customers can encourage private investment in | 11 | | renewable energy
resources, stimulate
economic growth, enhance | 12 | | the continued diversification of Illinois' energy
resource | 13 | | mix, and protect
the Illinois environment.
| 14 | | (b) As used in this Section, (i) "eligible customer" means | 15 | | a retail
customer that owns or operates a
solar, wind, or other | 16 | | eligible renewable electrical generating facility with a rated | 17 | | capacity of not more than
2,000 kilowatts that is
located on | 18 | | the customer's premises and is intended primarily to offset the | 19 | | customer's
own electrical requirements; (ii) "electricity | 20 | | provider" means an electric utility or alternative retail | 21 | | electric supplier; (iii) "eligible renewable electrical | 22 | | generating facility" means a generator powered by solar | 23 | | electric energy, wind, dedicated crops grown for electricity |
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| 1 | | generation, agricultural residues, untreated and unadulterated | 2 | | wood waste, landscape trimmings, livestock manure, anaerobic | 3 | | digestion of livestock or food processing waste, fuel cells or | 4 | | microturbines powered by renewable fuels, or hydroelectric | 5 | | energy; and (iv) "net electricity metering" (or "net metering") | 6 | | means the
measurement, during the
billing period applicable to | 7 | | an eligible customer, of the net amount of
electricity supplied | 8 | | by an
electricity provider to the customer's premises or | 9 | | provided to the electricity provider by the customer.
| 10 | | (c) A net metering facility shall be equipped with metering | 11 | | equipment that can measure the flow of electricity in both | 12 | | directions at the same rate. | 13 | | (1) For eligible customers whose electric service has | 14 | | not been declared competitive pursuant to Section 16-113 of | 15 | | this Act as of July 1, 2011 and whose electric delivery | 16 | | service is provided and measured on a kilowatt-hour basis | 17 | | and electric supply service is not provided based on hourly | 18 | | pricing, this shall typically be accomplished through use | 19 | | of a single, bi-directional meter. If the eligible | 20 | | customer's existing electric revenue meter does not meet | 21 | | this requirement, the electricity provider shall arrange | 22 | | for the local electric utility or a meter service provider | 23 | | to install and maintain a new revenue meter at the | 24 | | electricity provider's expense. | 25 | | (2) For eligible customers whose electric service has | 26 | | not been declared competitive pursuant to Section 16-113 of |
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| 1 | | this Act as of July 1, 2011 and whose electric delivery | 2 | | service is provided and measured on a kilowatt demand basis | 3 | | and electric supply service is not provided based on hourly | 4 | | pricing, this shall typically be accomplished through use | 5 | | of a dual channel meter capable of measuring the flow of | 6 | | electricity both into and out of the customer's facility at | 7 | | the same rate and ratio. If such customer's existing | 8 | | electric revenue meter does not meet this requirement, then | 9 | | the electricity provider shall arrange for the local | 10 | | electric utility or a meter service provider to install and | 11 | | maintain a new revenue meter at the electricity provider's | 12 | | expense. | 13 | | (3) For all other eligible customers, the electricity | 14 | | provider may arrange for the local electric utility or a | 15 | | meter service provider to install and maintain metering | 16 | | equipment capable of measuring the flow of electricity both | 17 | | into and out of the customer's facility at the same rate | 18 | | and ratio, typically through the use of a dual channel | 19 | | meter. If the eligible customer's existing electric | 20 | | revenue meter does not meet this requirement, then the | 21 | | costs of installing such equipment shall be paid for by the | 22 | | customer.
| 23 | | (d) An electricity provider shall
measure and charge or | 24 | | credit for the net
electricity supplied to eligible customers | 25 | | or provided by eligible customers whose electric service has | 26 | | not been declared competitive pursuant to Section 16-113 of the |
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| 1 | | Act as of July 1, 2011 and whose electric delivery service is | 2 | | provided and measured on a kilowatt-hour basis and electric | 3 | | supply service is not provided based on hourly pricing in
the | 4 | | following manner:
| 5 | | (1) If the amount of electricity used by the customer | 6 | | during the billing
period exceeds the
amount of electricity | 7 | | produced by the customer, the electricity provider shall | 8 | | charge the customer for the net electricity supplied to and | 9 | | used
by the customer as provided in subsection (e-5) of | 10 | | this Section.
| 11 | | (2) If the amount of electricity produced by a customer | 12 | | during the billing period exceeds the amount of electricity | 13 | | used by the customer during that billing period, the | 14 | | electricity provider supplying that customer shall apply a | 15 | | 1:1 kilowatt-hour credit to a subsequent bill for service | 16 | | to the customer for the net electricity supplied to the | 17 | | electricity provider. The electricity provider shall | 18 | | continue to carry over any excess kilowatt-hour credits | 19 | | earned and apply those credits to subsequent billing | 20 | | periods to offset any customer-generator consumption in | 21 | | those billing periods until all credits are used or until | 22 | | the end of the annualized period.
| 23 | | (3) At the end of the year or annualized over the | 24 | | period that service is supplied by means of net metering, | 25 | | or in the event that the retail customer terminates service | 26 | | with the electricity provider prior to the end of the year |
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| 1 | | or the annualized period, any remaining credits in the | 2 | | customer's account shall expire.
| 3 | | (d-5) An electricity provider shall measure and charge or | 4 | | credit for the net electricity
supplied to eligible customers | 5 | | or provided by eligible customers whose electric service has | 6 | | not
been declared competitive pursuant to Section 16-113 of | 7 | | this Act as of July 1, 2011 and whose electric delivery
service | 8 | | is provided and measured on a kilowatt-hour basis and electric | 9 | | supply service is provided
based on hourly pricing in the | 10 | | following manner: | 11 | | (1) If the amount of electricity used by the customer | 12 | | during any hourly period exceeds the amount of electricity | 13 | | produced by the customer, the electricity provider shall | 14 | | charge the customer for the net electricity supplied to and | 15 | | used by the customer according to the terms of the contract | 16 | | or tariff to which the same customer would be assigned to | 17 | | or be eligible for if the customer was not a net metering | 18 | | customer. | 19 | | (2) If the amount of electricity produced by a customer | 20 | | during any hourly period exceeds the amount of electricity | 21 | | used by the customer during that hourly period, the energy | 22 | | provider shall apply a credit for the net kilowatt-hours | 23 | | produced in such period. The credit shall consist of an | 24 | | energy credit and a delivery service credit. The energy
| 25 | | credit shall be valued at the same price per kilowatt-hour | 26 | | as the electric service provider
would charge for |
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| 1 | | kilowatt-hour energy sales during that same hourly period. | 2 | | The delivery credit shall be equal to the net | 3 | | kilowatt-hours produced in such hourly period times a | 4 | | credit that reflects all kilowatt-hour based charges in the | 5 | | customer's electric service rate, excluding energy | 6 | | charges. | 7 | | (e) An electricity provider shall measure and charge or | 8 | | credit for the net electricity supplied to eligible customers | 9 | | whose electric service has not been declared competitive | 10 | | pursuant to Section 16-113 of this Act as of July 1, 2011 and | 11 | | whose electric delivery service is provided and measured on a | 12 | | kilowatt demand basis and electric supply service is not | 13 | | provided based on hourly pricing in the following manner: | 14 | | (1) If the amount of electricity used by the customer | 15 | | during the billing period exceeds the amount of electricity | 16 | | produced by the customer, then the electricity provider | 17 | | shall charge the customer for the net electricity supplied | 18 | | to and used by the customer as provided in subsection (e-5) | 19 | | of this Section . The , provided that the electricity | 20 | | provider shall assess and the customer shall remain remains | 21 | | responsible for all taxes, fees, and utility delivery | 22 | | charges that would otherwise be applicable to the net gross | 23 | | amount of electricity used by kilowatt-hours supplied to | 24 | | the eligible customer by the electricity provider . | 25 | | (2) If the amount of electricity produced by a customer | 26 | | during the billing period exceeds the amount of electricity |
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| 1 | | used by the customer during that billing period, then the | 2 | | electricity provider supplying that customer shall apply a | 3 | | 1:1 kilowatt-hour credit that reflects the kilowatt-hour | 4 | | based charges in the customer's electric service rate to a | 5 | | subsequent bill for service to the customer for the net | 6 | | electricity supplied to the electricity provider. The | 7 | | electricity provider shall continue to carry over any | 8 | | excess kilowatt-hour credits earned and apply those | 9 | | credits to subsequent billing periods to offset any | 10 | | customer-generator consumption in those billing periods | 11 | | until all credits are used or until the end of the | 12 | | annualized period. | 13 | | (3) At the end of the year or annualized over the | 14 | | period that service is supplied by means of net metering, | 15 | | or in the event that the retail customer terminates service | 16 | | with the electricity provider prior to the end of the year | 17 | | or the annualized period, any remaining credits in the | 18 | | customer's account shall expire. | 19 | | (e-5) An electricity provider shall provide electric | 20 | | service to eligible customers whose electric service has not | 21 | | been declared competitive pursuant to Section 16-113 of this | 22 | | Act and whose electric supply service is not provided based on | 23 | | hourly pricing who utilize net metering at non-discriminatory | 24 | | rates that are identical, with respect to rate structure, | 25 | | retail rate components, and any monthly charges, to the rates | 26 | | that the customer would be charged if not a net metering |
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| 1 | | customer. An electricity provider shall not charge net metering | 2 | | customers any fee or charge or require additional equipment, | 3 | | insurance, or any other requirements not specifically | 4 | | authorized by interconnection standards authorized by the | 5 | | Commission, unless the fee, charge, or other requirement would | 6 | | apply to other similarly situated customers who are not net | 7 | | metering customers. The customer will remain responsible for | 8 | | all taxes, fees, and utility delivery charges that would | 9 | | otherwise be applicable to the net amount of electricity used | 10 | | by the customer. Subsections (c) through (e) of this Section | 11 | | shall not be construed to prevent an arms-length agreement | 12 | | between an electricity provider and an eligible customer that | 13 | | sets forth different prices, terms, and conditions for the | 14 | | provision of net metering service, including, but not limited | 15 | | to, the provision of the appropriate metering equipment for | 16 | | non-residential customers.
| 17 | | (f) Notwithstanding the requirements of subsections (c) | 18 | | through (e-5) of this Section, an electricity provider must | 19 | | require dual-channel metering for customers operating eligible | 20 | | renewable electrical generating facilities with a nameplate | 21 | | rating up to 2,000 kilowatts and to whom the provisions of | 22 | | neither subsection (d), (d-5), nor (e) of this Section apply. | 23 | | In such cases, electricity charges and credits shall be | 24 | | determined as follows:
| 25 | | (1) The electricity provider shall assess and the | 26 | | customer remains responsible for all taxes, fees, and |
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| 1 | | utility delivery charges that would otherwise be | 2 | | applicable to the gross amount of kilowatt-hours supplied | 3 | | to the eligible customer by the electricity provider. | 4 | | (2) Each month that service is supplied by means of | 5 | | dual-channel metering, the electricity provider shall | 6 | | compensate the eligible customer for any excess | 7 | | kilowatt-hour credits at the electricity provider's | 8 | | avoided cost of electricity supply over the monthly period | 9 | | or as otherwise specified by the terms of a power-purchase | 10 | | agreement negotiated between the customer and electricity | 11 | | provider. | 12 | | (3) For all eligible net metering customers taking | 13 | | service from an electricity provider under contracts or | 14 | | tariffs employing time of use rates, any monthly | 15 | | consumption of electricity shall be calculated according | 16 | | to the terms of the contract or tariff to which the same | 17 | | customer would be assigned to or be eligible for if the | 18 | | customer was not a net metering customer. When those same | 19 | | customer-generators are net generators during any discrete | 20 | | time of use period, the net kilowatt-hours produced shall | 21 | | be valued at the same price per kilowatt-hour as the | 22 | | electric service provider would charge for retail | 23 | | kilowatt-hour sales during that same time of use period.
| 24 | | (g) For purposes of federal and State laws providing | 25 | | renewable energy credits or greenhouse gas credits, the | 26 | | eligible customer shall be treated as owning and having title |
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| 1 | | to the renewable energy attributes, renewable energy credits, | 2 | | and greenhouse gas emission credits related to any electricity | 3 | | produced by the qualified generating unit. The electricity | 4 | | provider may not condition participation in a net metering | 5 | | program on the signing over of a customer's renewable energy | 6 | | credits; provided, however, this subsection (g) shall not be | 7 | | construed to prevent an arms-length agreement between an | 8 | | electricity provider and an eligible customer that sets forth | 9 | | the ownership or title of the credits.
| 10 | | (h) Within 120 days after the effective date of this
| 11 | | amendatory Act of the 95th General Assembly, the Commission | 12 | | shall establish standards for net metering and, if the | 13 | | Commission has not already acted on its own initiative, | 14 | | standards for the interconnection of eligible renewable | 15 | | generating equipment to the utility system. The | 16 | | interconnection standards shall address any procedural | 17 | | barriers, delays, and administrative costs associated with the | 18 | | interconnection of customer-generation while ensuring the | 19 | | safety and reliability of the units and the electric utility | 20 | | system. The Commission shall consider the Institute of | 21 | | Electrical and Electronics Engineers (IEEE) Standard 1547 and | 22 | | the issues of (i) reasonable and fair fees and costs, (ii) | 23 | | clear timelines for major milestones in the interconnection | 24 | | process, (iii) nondiscriminatory terms of agreement, and (iv) | 25 | | any best practices for interconnection of distributed | 26 | | generation.
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| 1 | | (i) All electricity providers shall begin to offer net | 2 | | metering
no later than April 1,
2008.
| 3 | | (j) An electricity provider shall provide net metering to | 4 | | eligible
customers until the load of its net metering customers | 5 | | equals 5% of
the total peak demand supplied by
that electricity | 6 | | provider during the
previous year. Electricity providers are | 7 | | authorized to offer net metering beyond
the 5% level if they so | 8 | | choose.
| 9 | | (k) Each electricity provider shall maintain records and | 10 | | report annually to the Commission the total number of net | 11 | | metering customers served by the provider, as well as the type, | 12 | | capacity, and energy sources of the generating systems used by | 13 | | the net metering customers. Nothing in this Section shall limit | 14 | | the ability of an electricity provider to request the redaction | 15 | | of information deemed by the Commission to be confidential | 16 | | business information. Each electricity provider shall notify | 17 | | the Commission when the total generating capacity of its net | 18 | | metering customers is equal to or in excess of the 5% cap | 19 | | specified in subsection (j) of this Section. | 20 | | (l) Notwithstanding the definition of "eligible customer" | 21 | | in item (i) of subsection (b) of this Section, each electricity | 22 | | provider shall consider whether to allow meter aggregation for | 23 | | the purposes of net metering on:
| 24 | | (1) properties owned or leased by multiple customers | 25 | | that contribute to the operation of an eligible renewable | 26 | | electrical generating facility, such as a community-owned |
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| 1 | | wind project, a community-owned biomass project, a | 2 | | community-owned solar project, or a community methane | 3 | | digester processing livestock waste from multiple sources; | 4 | | and
| 5 | | (2) individual units, apartments, or properties owned | 6 | | or leased by multiple customers and collectively served by | 7 | | a common eligible renewable electrical generating | 8 | | facility, such as an apartment building served by | 9 | | photovoltaic panels on the roof.
| 10 | | For the purposes of this subsection (l), "meter | 11 | | aggregation" means the combination of reading and billing on a | 12 | | pro rata basis for the types of eligible customers described in | 13 | | this Section.
| 14 | | (m) Nothing in this Section shall affect the right of an | 15 | | electricity provider to continue to provide, or the right of a | 16 | | retail customer to continue to receive service pursuant to a | 17 | | contract for electric service between the electricity provider | 18 | | and the retail customer in accordance with the prices, terms, | 19 | | and conditions provided for in that contract. Either the | 20 | | electricity provider or the customer may require compliance | 21 | | with the prices, terms, and conditions of the contract.
| 22 | | (Source: P.A. 97-616, eff. 10-26-11; 97-646, eff. 12-30-11.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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