[36 Pa.B. 7562]
[Saturday, December 16, 2006]
[Continued from previous Web Page]
Annex A
TITLE 52. PUBLIC UTILITIES
PART I. PUBLIC UTILITY COMMISSION
Subpart C. FIXED SERVICE UTILITIES
CHAPTER 75. ALTERNATIVE ENERGY PORTFOLIO STANDARDS Subchap.
A. GENERAL PROVISIONS B. NET METERING Subchapter A. GENERAL PROVISIONS
Sec.
75.1. Definitions § 75.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings unless the context clearly indicates otherwise:
Act--The Alternative Energy Portfolio Standards Act (73 P. S. §§ 1648.1--1648.8).
Alternative energy credit--A tradable instrument that is used to establish, verify and monitor compliance with the act. A unit of credit must equal 1 megawatt hour of electricity from an alternative energy source.
Alternative energy sources--The term includes the following existing and new sources for the production of electricity:
(i) Solar photovoltaic or other solar electric energy.
(ii) Solar thermal energy.
(iii) Wind power.
(iv) Large-scale hydropower, which means the production of electric power by harnessing the hydroelectric potential of moving water impoundments, including pumped storage that does not meet the requirements of low-impact hydropower.
(v) Low-impact hydropower consisting of any technology that produces electric power and that harnesses the hydroelectric potential of moving water impoundments, provided the incremental hydroelectric development:
(A) Does not adversely change existing impacts to aquatic systems.
(B) Meets the certification standards established by the low impact hydropower institute and American Rivers, Inc., or their successors.
(C) Provides an adequate water flow for protection of aquatic life and for safe and effective fish passage.
(D) Protects against erosion.
(E) Protects cultural and historic resources.
(vi) Geothermal energy, which means electricity produced by extracting hot water or steam from geothermal reserves in the earth's crust and supplied to steam turbines that drive generators to produce electricity.
(vii) Biomass energy, which means the generation of electricity utilizing the following:
(A) Organic material from a plant that is grown for the purpose of being used to produce electricity or is protected by the Federal Conservation Reserve Program (CRP) and provided further that crop production on CRP lands does not prevent the achievement of the water quality protection, soil erosion prevention or wildlife enhancement purposes for which the land was primarily set aside.
(B) Solid nonhazardous, cellulosic waste material that is segregated from other waste materials, such as waste pallets, crates and landscape or right-of-way tree trimmings or agricultural sources, including orchard tree crops, vineyards, grain, legumes, sugar and other byproducts or residues.
(viii) Biologically derived methane gas, which includes methane from the anaerobic digestion of organic materials from yard waste, such as grass clippings and leaves, food waste, animal waste and sewage sludge. The term also includes landfill methane gas.
(ix) Fuel cells, which means any electrochemical device that converts chemical energy in a hydrogen-rich fuel directly into electricity, heat and water without combustion.
(x) Waste coal, which includes the combustion of waste coal in facilities in which the waste coal was disposed or abandoned prior to July 31, 1982, or disposed of thereafter in a permitted coal refuse disposal site regardless of when disposed of, and used to generate electricity, or other waste coal combustion meeting alternate eligibility requirements established by regulation. Facilities combusting waste coal shall use at a minimum a combined fluidized bed boiler and be outfitted with a limestone injection system and a fabric filter particulate removal system. Alternative energy credits shall be calculated based upon the proportion of waste coal utilized to produce electricity at the facility.
(xi) Coal mine methane, which means methane gas emitting from abandoned or working coal mines.
(xii) Demand-side management consisting of the management of customer consumption of electricity or the demand for electricity through the implementation of:
(A) Energy efficient technologies, management practices or other strategies in residential, commercial, industrial, institutional and government customers that shift electric load from periods of higher demand to periods of lower demand.
(B) Load management or demand response technologies, management practices or other strategies in residential, commercial, industrial, institutional and government customers that shift electric load from periods of higher demand to periods of lower demand.
(C) Industrial by-product technologies consisting of the use of a by-product from an industrial process, including reuse of energy from exhaust gases or other manufacturing by-products that are used in the direct production of electricity at the facility of a customer.
(xiii) Distributed generation systems, which means the small-scale power generation of electricity and useful thermal energy.
Alternative energy system--A facility or energy system that uses a form of alternative energy source to generate electricity and delivers the electricity it generates to the distribution system of an EDC or to the transmission system operated by a regional transmission organization.
Competitive transition charge--A nonbypassable charge applied to the bill of every customer accessing the transmission or distribution network which charge is designed to recover an electric utility's transition or stranded costs.
Cost recovery period--The longer of:
(i) The period during which competitive transition charges under 66 Pa.C.S. § 2808 (relating to competitive transition charge) or intangible transition charges under 66 Pa.C.S. § 2812 (relating to approval of transition bonds) are recovered.
(ii) The period during which an EDC operates under a Commission-approved generation rate plan that has been approved prior to or within 1 year of February 28, 2005, but the cost-recovery period under the act may not extend beyond December 31, 2010.
Customer-generator--A nonutility owner or operator of a net metered distributed generation system with a nameplate capacity of not greater than 50 kilowatts if installed at a residential service or not larger than 1,000 kilowatts at other customer service locations, except for customers whose systems are above 1 megawatt and up to 2 megawatts who make their systems available to operate in parallel with the electric utility during grid emergencies as defined by the regional transmission organization or where a microgrid is in place for the purpose of maintaining critical infrastructure, such as homeland security assignments, emergency services facilities, hospitals, traffic signals, wastewater treatment plants or telecommunications facilities, provided that technical rules for operating generators interconnected with facilities of an EDC, electric cooperative or municipal electric system have been promulgated by the institute of electrical and electronic engineers and the Commission.
Department--The Department of Environmental Protection of the Commonwealth.
EDC--Electric distribution company--The public utility providing facilities for the jurisdictional transmission and distribution of electricity to retail customers, except building or facility owners/operators that manage the internal distribution system serving the building or facility and that supply electric power and other related electric power services to occupants of the building or facility.
EGS--Electric generation supplier---
(i) A person or corporation, including municipal corporations which choose to provide service outside their municipal limits except to the extent provided prior to December 16, 2006, brokers and marketers, aggregators or any other entities, that sells to end-use customers electricity or related services utilizing the jurisdictional transmission and distribution facilities of an EDC or that purchases, brokers, arranges or markets electricity or related services for sale to end-use customers utilizing the jurisdictional transmission and distribution facilities of an EDC.
(ii) The term excludes building or facility owner/operators that manage the internal distribution system serving the building or facility and that supply electric power and other related power services to occupants of the building or facility.
(iii) The term excludes electric cooperative corporations except as provided in 15 Pa.C.S. Chapter 74 (relating to generation choice for customers of electric cooperatives).
Force majeure--Upon its own initiative or upon a request of an EDC or an EGS, the Commission, within 60 days, will determine if alternative energy resources are reasonably available in the marketplace in sufficient quantities for the EDCs and the EGSs to meet their obligations for that reporting period under the act. If the Commission determines that alternative energy resources are not reasonably available in sufficient quantities in the marketplace for the EDCs and EGSs to meet their obligations under the act, the Commission will modify the underlying obligation of the EDC or EGS or recommend to the General Assembly that the underlying obligation be eliminated.
kW--Kilowatt--A unit of power representing 1,000 watts. A kW equals 1/1000 of a MW.
MW--Megawatt--A unit of power representing 1,000,000 watts. An MW equals 1,000 kWs.
Municipal solid waste--The term includes energy from existing waste to energy facilities which the Department has determined are in compliance with current environmental standards, including the applicable requirements of the Clean Air Act (42 U.S.C. §§ 7401--7671q) and associated permit restrictions and the applicable requirements of the Solid Waste Management Act (35 P. S. §§ 6018.101--6018.1003).
RTO--Regional transmission organization--An entity approved by the Federal Energy Regulatory Commission (FERC) that is created to operate and manage the electrical transmission grids of the member electric transmission utilities as required under FERC Order 2000, Docket No. RM99-2-000, FERC Chapter 31.089 (1999) or any successor organization approved by the FERC.
Reporting period--The 12-month period from June 1 through May 31. A reporting year shall be numbered according to the calendar year in which it begins and ends.
Retail electric customer--
(i) A direct purchaser of electric power.
(ii) The term excludes an occupant of a building or facility where the following apply:
(A) The owners/operators manage the internal distribution system serving the building or facility and supply electric power and other related power services to occupants of the building or facility.
(B) The owners/operators are direct purchasers of electric power.
(C) The occupants are not direct purchasers.
Stranded costs--An electric utility's known and measurable net electric generation-related costs, determined on a net present value basis over the life of the asset or liability as part of its restructuring plan, which traditionally would be recoverable under a regulated environment but which may not be recoverable in a competitive electric generation market and which the commission determines will remain following mitigation by the electric utility.
Tier I alternative energy source--Energy derived from:
(i) Solar photovoltaic energy.
(ii) Wind power.
(iii) Low-impact hydropower.
(iv) Geothermal energy.
(v) Biologically derived methane gas.
(vi) Fuel cells.
(vii) Biomass energy.
(viii) Coal mine methane.
Tier II alternative energy source--Energy derived from:
(i) Waste coal.
(ii) Distributed generation systems.
(iii) Demand-side management.
(iv) Large-scale hydropower.
(v) Municipal solid waste.
(vi) Generation of electricity utilizing by-products of the pulping process and wood manufacturing process, including bark, wood chips, sawdust and lignin in spent pulping liquors.
(vii) Integrated combined coal gasification technology.
True-up period--The period each year from the end of the reporting year until September 1.
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. § 75.11. 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:
Avoided cost of wholesale power--The actual cost of wholesale power avoided by the EDC, due to the operation of the customer-generator's facility, pursuant to binding, full-requirements, fixed rate contracts, or, at the EDC's option, the average locational marginal price (LMP) of energy, or its successor, over the billing period in the applicable EDC's transmission zone.
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 the alternative energy generating system is intended primarily 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.
§ 75.13. General provisions.
(a) EDCs 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. 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.
(b) 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 enable 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 in § 54.5 (relating to disclosure statement for residential and small business customers).
(c) The EDC shall credit a customer-generator at the full retail rate 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. 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.
(d) At the end of each billing period, the EDC shall compensate the customer-generator for kilowatt-hours generated by the customer-generator over the amount of kilowatt hours delivered by the EDC during the billing period at the EDC's avoided cost of wholesale power.
(e) The credit or compensation terms for excess electricity produced by customer-generators who are customers of EGSs shall be stated in the service agreement between the customer-generator and the EGS.
(f) 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 billing period.
(g) 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 shall 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.
(h) 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).
(i) An EDC 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. An EDC 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.
(j) An EDC 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. The EDC 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.
(k) Nothing in this subchapter abrogates a person's obligation to comply with other applicable law.
§ 75.14. Meters and metering.
(a) A customer-generator facility used for net metering must be equipped with a single bi-directional 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) Meter aggregation on properties owned or leased and operated by a customer-generator shall be allowed for purposes of net metering. Meter aggregation shall be limited to meters located on properties within 2 miles of the boundaries of the customer-generator's property. Meter aggregation shall only be available for properties located within a single EDC's service territory. 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.
§ 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.
[Pa.B. Doc. No. 06-2450. Filed for public inspection December 15, 2006, 9:00 a.m.]
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