Subchapter B. NET METERING


Sec.


75.11.    Scope.
75.12.    Definitions.
75.13.    General provisions.
75.14.    Meters and metering.
75.15.    Treatment of stranded costs.
75.16.    Large customer-generators.
75.17.    Process for obtaining Commission approval of customer-generator status.

§ 75.11. Scope.

 This subchapter sets forth net metering requirements that apply to EGSs and EDCs which have customer-generators intending to pursue net metering opportunities in accordance with the act.

§ 75.12. Definitions.

 The following words and terms, when used in this subchapter, have the following meanings unless the context clearly indicates otherwise:

   Base year—For customer-generators who initiated self generation on or after January 1, 1999, the base year will be the immediate prior calendar year; for all other customer generators, the base year will be 1996.

   Billing month—The term has the same meaning as set forth in §  56.2 (relating to definitions).

   Customer-generator facility—The equipment used by a customer-generator to generate, manage, monitor and deliver electricity to the EDC.

   Electric distribution system—That portion of an electric system which delivers electricity from transformation points on the transmission system to points of connection at a customer’s premises.

   Meter aggregation—The combination of readings from and billing for all meters regardless of rate class on properties owned or leased and operated by a customer-generator for properties located within the service territory of a single EDC. Meter aggregation may be completed through physical or virtual meter aggregation.

   Net metering—The means of measuring the difference between the electricity supplied by an electric utility or EGS and the electricity generated by a customer-generator when any portion of the electricity generated by the alternative energy generating system is used to offset part or all of the customer-generator’s requirements for electricity.

   Physical meter aggregation—The physical rewiring of all meters regardless of rate class on properties owned or leased and operated by a customer-generator to provide a single point of contact for a single meter to measure electric service for that customer-generator.

   Virtual meter aggregation—The combination of readings and billing for all meters regardless of rate class on properties owned or leased and operated by a customer-generator by means of the EDC’s billing process, rather than through physical rewiring of the customer-generator’s property for a physical, single point of contact. Virtual meter aggregation on properties owned or leased and operated by the same customer-generator and located within 2 miles of the boundaries of the customer-generator’s property and within a single EDC’s service territory shall be eligible for net metering. Service locations to be aggregated must be EDC service location accounts, held by the same individual or legal entity, receiving retail electric service from the same EDC and have measureable electric load independent of the alternative energy system. To be independent of the alternative energy system, the electric load must have a purpose other than to support the operation, maintenance or administration of the alternative energy system.

   Year and yearly—The period of time from June 1 through May 31.

Authority

   The provisions of this §  75.12 amended under 66 Pa.C.S. § §  501, 1501 and 2807(e); and sections 1648.7(a) and 1648.3(e)(2) of the Alternative Energy Portfolio Standards Act of 2004 (73 P.S. § §  1648.7(a) and 1648.3(e)(2)).

Source

   The provisions of this §  75.12 amended November 28, 2008, effective November 29, 2008, 38 Pa.B. 6473; amended November 18, 2016, effective November 19, 2016, 46 Pa.B. 7277, 7448. Immediately preceding text appears at serial pages (340017) to (340018).

§ 75.13. General provisions.

 (a)  EDCs and DSPs shall offer net metering to customer-generators that generate electricity on the customer-generator’s side of the meter using Tier I or Tier II alternative energy sources, on a first come, first served basis. To qualify for net metering, the customer-generator shall meet the following conditions:

   (1)  Have electric load, independent of the alternative energy system, behind the meter and point of interconnection of the alternative energy system. To be independent of the alternative energy system, the electric load must have a purpose other than to support the operation, maintenance or administration of the alternative energy system.

   (2)  The owner or operator of the alternative energy system may not be a utility.

   (3)  The alternative energy system must have a nameplate capacity of not greater than 50 kW if installed at a residential service location.

   (4)  The alternative energy system must have a nameplate capacity not larger than 3 MW at other customer service locations, except when the alternative energy system has a nameplate capacity not larger than 5 MW and meets the conditions in §  75.16 (relating to large customer-generators).

   (5)  An alternative energy system with a nameplate capacity of 500 kW or more must have Commission approval to net meter in accordance with §  75.17 (relating to process for obtaining Commission approval of customer-generator status).

 (b)  EGSs may offer net metering to customer-generators, on a first come, first served basis, under the terms and conditions as are set forth in agreements between EGSs and customer-generators taking service from EGSs, or as directed by the Commission.

 (c)  An EDC shall file a tariff with the Commission that provides for net metering consistent with this chapter. An EDC shall file a tariff providing net metering protocols that enables EGSs to offer net metering to customer-generators taking service from EGSs. To the extent that an EGS offers net metering service, the EGS shall prepare information about net metering consistent with this chapter and provide that information with the disclosure information required under §  54.5 (relating to disclosure statement for residential and small business customers).

 (d)  An EDC and DSP shall credit a customer-generator at the full retail kilowatt-hour rate, which shall include generation, transmission and distribution charges, for each kilowatt-hour produced by a Tier I or Tier II resource installed on the customer-generator’s side of the electric revenue meter, up to the total amount of electricity used by that customer during the billing period. If a customer-generator supplies more electricity to the electric distribution system than the EDC and DSP deliver to the customer-generator in a given billing period, the excess kilowatt hours shall be carried forward and credited against the customer-generator’s kilowatt-hour usage in subsequent billing periods at the full retail rate. Any excess kilowatt hours that are not offset by electricity used by the customer in subsequent billing periods shall continue to accumulate until the end of the year. For customer-generators involved in virtual meter aggregation programs, a credit shall be applied first to the meter through which the generating facility supplies electricity to the distribution system, then through the remaining meters for the customer-generator’s account equally at each meter’s designated rate.

 (e)  At the end of each year, the DSP shall compensate the customer-generator for any remaining excess kilowatt hours generated by the customer-generator that were not previously credited against the customer-generator’s usage in prior billing periods at the DSP’s price to compare rate.

 (f)  The credit or compensation terms for excess electricity produced by customer-generators who are customers of EGSs must be stated in the service agreement between the customer-generator and the EGS. EDCs shall credit customer-generators who are EGS customers for each kilowatt-hour of electricity produced at the EDC’s unbundled distribution kilowatt-hour rate. The distribution kilowatt-hour rate credit shall be applied monthly against kilowatt-hour distribution usage. If the customer-generator supplies more electricity to the electric distribution system than the EDC delivers to the customer-generator in any billing period, the excess kilowatt hours shall be carried forward and credited against the customer-generator’s unbundled kilowatt-hour distribution usage in subsequent billing periods until the end of the year when all remaining unused kilowatt-hour distribution credits shall be zeroed-out. Distribution credits are not carried forward into the next year.

 (g)  If a customer-generator switches electricity suppliers, the EDC shall treat the end of the service period as if it were the end of the year.

 (h)  An EDC and EGS which offer net metering shall submit an annual net metering report to the Commission. The report shall be submitted by July 30 of each year, and include the following information for the reporting period ending May 31 of that year:

   (1)  The total number of customer-generator facilities.

   (2)  The total estimated rated generating capacity of its net metering customer-generators.

 (i)  A customer-generator that is eligible for net metering owns the alternative energy credits of the electricity it generates, unless there is a contract with an express provision that assigns ownership of the alternative energy credits to another entity or the customer-generator expressly rejects any ownership interest in alternative energy credits under §  75.14(d) (relating to meters and metering).

 (j)  An EDC and DSP shall provide net metering at nondiscriminatory rates identical with respect to rate structure, retail rate components and any monthly charges to the rates charged to other customers that are not customer-generators on the same default service rate. An EDC and DSP may use a special load profile for the customer-generator which incorporates the customer-generator’s real time generation if the special load profile is approved by the Commission.

 (k)  An EDC or DSP may not charge a customer-generator a fee or other type of charge unless the fee or charge would apply to other customers that are not customer-generators, or is specifically authorized under this chapter or by order of the Commission. The EDC and DSP may not require additional equipment or insurance or impose any other requirement unless the additional equipment, insurance or other requirement is specifically authorized under this chapter or by order of the Commission.

 (l)  Nothing in this subchapter abrogates a person’s obligation to comply with other applicable law.

Authority

   The provisions of this §  75.13 amended under 66 Pa.C.S. § §  501, 1501 and 2807(e); and sections 1648.7(a) and 1648.3(e)(2) of the Alternative Energy Portfolio Standards Act of 2004 (73 P.S. § §  1648.7(a) and 1648.3(e)(2)).

Source

   The provisions of this §  75.13 amended November 28, 2008, effective November 29, 2008, 38 Pa.B. 6437; amended November 18, 2016, effective November 19, 2016, 46 Pa.B. 7277, 7448. Immediately preceding text appears at serial pages (340018) to (340020).

§ 75.14. Meters and metering.

 (a)  A customer-generator facility used for net metering must be equipped with a single bidirectional meter that can measure and record the flow of electricity in both directions at the same rate. If the customer-generator agrees, a dual meter arrangement may be substituted for a single bidirectional meter.

 (b)  If the customer-generator’s existing electric metering equipment does not meet the requirements in subsection (a), the EDC shall install new metering equipment for the customer-generator at the EDC’s expense. Any subsequent metering equipment change necessitated by the customer-generator shall be paid for by the customer-generator.

 (c)  When the customer-generator intends to take title or transfer title to any alternative energy credits which may be produced by the customer-generator’s facility, the customer-generator shall bear the cost of additional net metering equipment required to qualify the alternative energy credits in accordance with the act.

 (d)  When the customer-generator expressly rejects ownership of alternative energy credits produced by the customer-generator’s facility, the EDC may supply additional metering equipment required to qualify the alternative energy credit at the EDC’s expense. In those circumstances, the EDC shall take title to any alternative energy credit produced. An EDC shall, prior to taking title to any alternative energy credits produced by a customer-generator, fully inform the customer-generator of the potential value of the alternative energy credits and other options available to the customer-generator for the disposition of those credits. A customer-generator is not prohibited from having a qualified meter service provider install metering equipment for the measurement of generation, or from selling alternative energy credits to a third party other than an EDC.

 (e)  Virtual meter aggregation on properties owned or leased and operated by the same customer-generator shall be allowed for purposes of net metering. Virtual meter aggregation shall be limited to meters located on properties owned or leased and operated by the same customer-generator within 2 miles of the boundaries of the customer-generator’s property and within a single EDC’s service territory. All service locations to be aggregated must be EDC service location accounts held by the same individual or legal entity receiving retail electric service from the same EDC and have measureable load independent of any alternative energy system. Physical meter aggregation shall be at the customer-generator’s expense. The EDC shall provide the necessary equipment to complete physical aggregation. If the customer-generator requests virtual meter aggregation, it shall be provided by the EDC at the customer-generator’s expense. The customer-generator shall be responsible only for any incremental expense entailed in processing his account on a virtual meter aggregation basis.

Authority

   The provisions of this §  75.13 amended under 66 Pa.C.S. § §  501, 1501 and 2807(e); and sections 1648.7(a) and 1648.3(e)(2) of the Alternative Energy Portfolio Standards Act of 2004 (73 P.S. § §  1648.7(a) and 1648.3(e)(2)).

Source

   The provisions of this §  75.14 amended November 28, 2008, effective November 29, 2008, 38 Pa.B. 6437; amended November 18, 2016, effective November 19, 2016, 46 Pa.B. 7277, 7448. Immediately preceding text appears at serial pages (340020) and (342489).

Cross References

   This section cited in 52 Pa. Code §  75.13 (relating to general provisions).

§ 75.15. Treatment of stranded costs.

 

   If a net metering small commercial, commercial or industrial customer’s self-generation results in a 10% or more reduction in the customer’s purchase of electricity through the EDC’s transmission and distribution network for an annualized period when compared to the prior annualized period, the net metering small commercial, commercial or industrial customer shall be responsible for its share of stranded costs to prevent interclass or intraclass cost shifting under 66 Pa.C.S. §  2808(a) (relating to competitive transition charge). The net metering small commercial, commercial or industrial customer’s stranded cost obligation shall be calculated based upon the applicable ‘‘base year’’ as defined in this chapter.

§ 75.16. Large customer-generators.

 (a)  This section applies to distributed generation systems with a nameplate capacity above 3 MW and up to 5 MW. The section identifies the standards that distributed generation systems must satisfy to qualify for customer-generator status.

 (b)  A retail electric customer may qualify its alternative energy system for customer-generator status if it makes its system available to operate in parallel with the grid during grid emergencies by satisfying the following requirements:

   (1)  The alternative energy system is able to provide the emergency support consistent with the RTO tariff or agreement.

   (2)  The alternative energy system is able to increase and decrease generation delivered to the distribution system in parallel with the EDC’s operation of the distribution system during the grid emergency.

 (c)  A retail electric customer may qualify its alternative energy system located within a microgrid for customer-generator status if it satisfies the following requirements:

   (1)  The alternative energy system complies with IEEE Standard 1547.4.

   (2)  The customer documents that the alternative energy system exists for the primary or secondary purpose of maintaining critical infrastructure.

Authority

   The provisions of this §  75.16 issued under 66 Pa.C.S. § §  501, 1501 and 2807(e); and sections 1648.7(a) and 1648.3(e)(2) of the Alternative Energy Portfolio Standards Act of 2004 (73 P.S. § §  1648.7(a) and 1648.3(e)(2)).

Source

   The provisions of this §  75.16 adopted November 18, 2016, effective November 19, 2016, 46 Pa.B. 7277, 7448.

Cross References

   This section cited in 52 Pa. Code §  75.13 (relating to general provisions).

§ 75.17. Process for obtaining Commission approval of customer-generator status.

 (a)  This section establishes the process through which EDCs obtain Commission approval to net meter alternative energy systems with a nameplate capacity of 500 kW or greater.

 (b)  An EDC shall submit a completed net metering application to the Commission’s Bureau of Technical Utility Services with a recommendation on whether the alternative energy system complies with the applicable provisions of this chapter and the EDC’s net metering tariff provisions within 20 days of receiving a completed application. The EDC shall serve its recommendation on the applicant.

 (c)  The net metering applicant has 20 days to submit a response to the EDC’s recommendation to reject an application to the Bureau of Technical Utility Services.

 (d)  The Bureau of Technical Utility Services will review the net metering application, the EDC recommendation and applicant response, and make a determination as to whether the alternative energy system complies with this chapter and the EDC’s net metering tariff.

 (e)  The Bureau of Technical Utility Services will approve or disapprove the net metering application within 10 days of an EDC’s submission recommending approval. If disapproved, the Bureau of Technical Utility Services will describe in detail the reasons for disapproval. The Bureau of Technical Utility Services will serve its determination on the EDC and the applicant.

 (f)  The Bureau of Technical Utility Services will approve or disapprove the net metering application within 5 days of an applicant’s response to an EDC’s recommendation to deny approval, but no more than 30 days after an EDC submits an application with a recommendation to deny approval, whichever is earlier. The Bureau of Technical Utility Services will serve its determination on the EDC and the applicant.

 (g)  The applicant and the EDC may appeal the determination of the Bureau of Technical Utility Services in accordance with §  5.44 (relating to petitions for reconsideration from actions of the staff).

Authority

   The provisons of this §  75.17 issued under 66 Pa.C.S. § §  501, 1501 and 2807(e); and sections 1648.7(a) and 1648.3(e)(2) of the Alternative Energy Portfolio Standards Act of 2004 (73 P.S. § §  1648.7(a) and 1648.3(e)(2)).

Source

   The provisions of this §  75.17 adopted November 18, 2016, effective November 19, 2016, 46 Pa.B. 7277, 7448.

Cross References

   This section cited in 52 Pa. Code §  75.13 (relating to general provisions).



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