56-594 - Net energy metering provisions.
§ 56-594. Net energy metering provisions.
A. The Commission shall establish by regulation a program, to begin no laterthan July 1, 2000, that affords eligible customer-generators the opportunityto participate in net energy metering. The regulations may include, but neednot be limited to, requirements for (i) retail sellers; (ii) owners and/oroperators of distribution or transmission facilities; (iii) providers ofdefault service; (iv) eligible customer-generators; or (v) any combination ofthe foregoing, as the Commission determines will facilitate the provision ofnet 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, orcontracts with other persons to own, operate, or both, an electricalgenerating facility that (i) has a capacity of not more than 10 kilowatts forresidential customers and 500 kilowatts for nonresidential customers unless autility elects a higher capacity limit for such a facility; (ii) uses as itstotal source of fuel renewable energy, as defined in § 56-576; (iii) islocated on the customer's premises and is connected to the customer's wiringon the customer's side of its interconnection with the distributor; (iv) isinterconnected and operated in parallel with an electric company'stransmission and distribution facilities; and (v) is intended primarily tooffset all or part of the customer's own electricity requirements.
"Net energy metering" means measuring the difference, over the net meteringperiod, between (i) electricity supplied to an eligible customer-generatorfrom the electric grid and (ii) the electricity generated and fed back to theelectric grid by the eligible customer-generator.
"Net metering period" means the 12-month period following the date of finalinterconnection of the eligible customer-generator's system with an electricservice provider, and each 12-month period thereafter.
C. The Commission's regulations shall ensure that the metering equipmentinstalled for net metering shall be capable of measuring the flow ofelectricity in two directions, and shall allocate fairly the cost of suchequipment and any necessary interconnection. An eligible customer-generator'selectrical generating system shall meet all applicable safety and performancestandards established by the National Electrical Code, the Institute ofElectrical and Electronics Engineers, and accredited testing laboratoriessuch as Underwriters Laboratories. Beyond the requirements set forth in thissection, an eligible customer-generator whose electrical generating systemmeets those standards and rules shall bear the reasonable cost, if any, asdetermined by the Commission, to (i) install additional controls, (ii)perform or pay for additional tests, or (iii) purchase additional liabilityinsurance.
D. The Commission shall establish minimum requirements for contracts to beentered into by the parties to net metering arrangements. Such requirementsshall protect the customer-generator against discrimination by virtue of itsstatus as a customer-generator, and permit customers that are served ontime-of-use tariffs that have electricity supply demand charges containedwithin the electricity supply portion of the time-of-use tariffs toparticipate as an eligible customer-generator. Notwithstanding the costallocation provisions of subsection C, eligible customer-generators served ondemand charge-based time-of-use tariffs shall bear the incremental meteringcosts required to net meter such customers.
E. If electricity generated by an eligible customer-generator over the netmetering period exceeds the electricity consumed by the customer-generator,the customer-generator shall be compensated for the excess electricity if theentity contracting to receive such electric energy and the customer-generatorenter into a power purchase agreement for such excess electricity. Upon thewritten request of the customer-generator, the supplier that serves theeligible customer-generator shall enter into a power purchase agreement withthe requesting eligible customer-generator that is consistent with theminimum requirements for contracts established by the Commission pursuant tosubsection D. The power purchase agreement shall obligate the supplier topurchase such excess electricity at the rate that is provided for suchpurchases in a net metering standard contract or tariff approved by theCommission, unless the parties agree to a higher rate. The eligiblecustomer-generator owns the renewable energy certificates associated with itselectrical generating facility, however, at the time that the eligiblecustomer-generator enters into a power purchase agreement with its supplier,the customer-generator shall have a one-time option to sell the renewableenergy certificates associated with such electrical generating facility toits supplier and be compensated at an amount that is established by theCommission to reflect the value of such renewable energy certificates.Nothing in this section shall prevent the eligible customer-generator and thesupplier from voluntarily entering into an agreement for the sale andpurchase of excess electricity or renewable energy certificates atmutually-agreed upon prices if the eligible customer-generator does notexercise its option to sell its renewable energy certificates to its supplierat Commission-approved prices at the time that the eligiblecustomer-generator enters into a power purchase agreement with its supplier.All costs incurred by the supplier to purchase excess electricity andrenewable energy certificates from eligible customer-generators shall berecoverable through its Renewable Energy Portfolio Standard (RPS) rateadjustment clause, if the supplier has a Commission-approved RPS plan. Ifnot, then all costs shall be recoverable through the supplier's fueladjustment clause. For purposes of this section, "all costs" shall bedefined as the rates paid to the eligible customer-generator for the purchaseof excess electricity and renewable energy certificates and anyadministrative costs incurred to manage the eligible customer-generator'spower purchase arrangements. The net metering standard contract or tariffshall be available to eligible customer-generators on a first-come,first-served basis in each electric distribution company's Virginia servicearea until the rated generating capacity owned and operated by eligiblecustomer-generators in the state reaches one percent of each electricdistribution company's adjusted Virginia peak-load forecast for the previousyear, and shall require the supplier to pay the eligible customer-generatorfor such excess electricity in a timely manner at a rate to be established bythe Commission.
(1999, c. 411; 2004, c. 827; 2006, c. 470; 2007, cc. 877, 888, 933; 2009, c.804.)