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http://www.dsireusa.org/documents/Incentives/2011%20HB%201983.pdf
CHAPTER 239An Act to amend and reenact § 56-594 of the Code of Virginia, relating to electric energy; net energymetering.[H 1983]Approved March 18, 2011Be it enacted by the General Assembly of Virginia:1. That § 56-594 of the Code of Virginia is amended and reenacted as follows:§ 56-594. Net energy metering provisions.A. The Commission shall establish by regulation a program, to begin no later than July 1, 2000, thataffords eligible customer-generators the opportunity to participate in net energy metering. Theregulations may include, but need not be limited to, requirements for (i) retail sellers; (ii) owners and/oroperators of distribution or transmission facilities; (iii) providers of default service; (iv) eligiblecustomer-generators; or (v) any combination of the foregoing, as the Commission determines willfacilitate the provision of net energy metering, provided that the Commission determines that suchrequirements do not adversely affect the public interest.B. For the purpose of this section:"Eligible customer-generator" means a customer that owns and operates, or contracts with otherpersons to own, operate, or both, an electrical generating facility that (i) has a capacity of not more than10 20 kilowatts for residential customers and 500 kilowatts for nonresidential customers unless a utilityelects a higher capacity limit for such a facility; (ii) uses as its total source of fuel renewable energy, asdefined in § 56-576; (iii) is located on the customer's premises and is connected to the customer's wiringon the customer's side of its interconnection with the distributor; (iv) is interconnected and operated inparallel with an electric company's transmission and distribution facilities; and (v) is intended primarilyto offset all or part of the customer's own electricity requirements."Net energy metering" means measuring the difference, over the net metering period, between (i)electricity supplied to an eligible customer-generator from the electric grid and (ii) the electricitygenerated and fed back to the electric grid by the eligible customer-generator."Net metering period" means the 12-month period following the date of final interconnection of theeligible customer-generator's system with an electric service provider, and each 12-month periodthereafter.C. The Commission's regulations shall ensure that the metering equipment installed for net meteringshall be capable of measuring the flow of electricity in two directions, and shall allocate fairly the costof such equipment and any necessary interconnection. An eligible customer-generator's electricalgenerating system shall meet all applicable safety and performance standards established by the NationalElectrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratoriessuch as Underwriters Laboratories. Beyond the requirements set forth in this section, an eligiblecustomer-generator whose electrical generating system meets those standards and rules shall bear thereasonable cost, if any, as determined by the Commission, to (i) install additional controls, (ii) performor pay for additional tests, or (iii) purchase additional liability insurance.D. The Commission shall establish minimum requirements for contracts to be entered into by theparties to net metering arrangements. Such requirements shall protect the customer-generator againstdiscrimination by virtue of its status as a customer-generator, and permit customers that are served ontime-of-use tariffs that have electricity supply demand charges contained within the electricity supplyportion of the time-of-use tariffs to participate as an eligible customer-generator. Notwithstanding thecost allocation provisions of subsection C, eligible customer-generators served on demand charge-basedtime-of-use tariffs shall bear the incremental metering costs required to net meter such customers.E. If electricity generated by an eligible customer-generator over the net metering period exceeds theelectricity consumed by the customer-generator, the customer-generator shall be compensated for theexcess electricity if the entity contracting to receive such electric energy and the customer-generatorenter into a power purchase agreement for such excess electricity. Upon the written request of thecustomer-generator, the supplier that serves the eligible customer-generator shall enter into a powerpurchase agreement with the requesting eligible customer-generator that is consistent with the minimumrequirements for contracts established by the Commission pursuant to subsection D. The power purchaseagreement shall obligate the supplier to purchase such excess electricity at the rate that is provided forsuch purchases in a net metering standard contract or tariff approved by the Commission, unless theparties agree to a higher rate. The eligible customer-generator owns the renewable energy certificatesassociated with its electrical generating facility, however, at the time that the eligible customer-generatorenters into a power purchase agreement with its supplier, the customer-generator shall have a one-time2 of 2option to sell the renewable energy certificates associated with such electrical generating facility to itssupplier and be compensated at an amount that is established by the Commission to reflect the value ofsuch renewable energy certificates. Nothing in this section shall prevent the eligible customer-generatorand the supplier from voluntarily entering into an agreement for the sale and purchase of excesse l e c t r i c i ty or r enewabl e ene rgy c e r t i f i c a t e s a t mutua l ly-agr e ed upon pr i c e s i f the e l igibl ecustomer-generator does not exercise its option to sell its renewable energy certificates to its supplier atCommission-approved prices at the time that the eligible customer-generator enters into a powerpurchase agreement with its supplier. All costs incurred by the supplier to purchase excess electricityand renewable energy certificates from eligible customer-generators shall be recoverable through itsRenewable Energy Portfolio Standard (RPS) rate adjustment clause, if the supplier has aCommission-approved RPS plan. If not, then all costs shall be recoverable through the supplier's fueladjustment clause. For purposes of this section, "all costs" shall be defined as the rates paid to theeligible customer-generator for the purchase of excess electricity and renewable energy certificates andany administrative costs incurred to manage the eligible customer-generator's power purchasea r r angement s . The ne t me t e r ing s t anda rd cont r a c t or t a r i f f sha l l be ava i l abl e to e l igibl ecustomer-generators on a first-come, first-served basis in each electric distribution company's Virginiaservice area until the rated generating capacity owned and operated by eligible customer-generators inthe state reaches one percent of each electric distribution company's adjusted Virginia peak-load forecastfor the previous year, and shall require the supplier to pay the eligible customer-generator for suchexcess electricity in a timely manner at a rate to be established by the Commission.F. Any residential eligible customer-generator who owns and operates, or contracts with otherpersons to own, operate, or both, an electrical generating facility with a capacity that exceeds 10kilowatts shall pay to its supplier, in addition to any other charges authorized by law, a monthlystandby charge. The amount of the standby charge and the terms and conditions under which it isassessed shall be in accordance with a methodology developed by the supplier and approved by theCommission. The Commission shall approve a supplier's proposed standby charge methodology if itfinds that the standby charges collected from all such eligible customer-generators allow the supplier torecover only the portion of the supplier's infrastructure costs that are properly associated with servingsuch eligible customer-generators. Such an eligible customer-generator shall not be liable for a standbycharge until the date specified in an order of the Commission approving its supplier's methodology.2. That the State Corporation Commission shall conduct a proceeding to determine thereasonableness of the methodology for any stand-by charge proposed by an electric utilitypursuant to subsection F of § 56-594 of the Code of Virginia. The Commission shall complete theproceeding by December 1, 2011, for any electric utility that submits, within 30 days following theeffective date of this act, a proposal to assess such a stand-by charge.