Capital letters indicate new material to be added to existing statute.

Dashes through the words indicate deletions from statute.

First Regular Session

Sixty-first General Assembly

LLS NO. 97­0582.01 BWM HOUSE BILL 97­1305

STATE OF COLORADO

BY REPRESENTATIVE Udall

TRANSPORTATION & ENERGY

A BILL FOR AN ACT

CONCERNING NET ENERGY METERING FOR ELECTRIC POWER.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Declares that net energy metering is one way to encourage eligible customer­generators of electricity to engage in private investment in distributed renewable energy resources, stimulate economic growth, enhance the continued diversification of Colorado's energy resource mix, and reduce utility interconnection and administrative costs.

Defines the terms "eligible customer­generator" and "net energy metering" for purposes of this act. Requires electric utilities to develop and make available a standard net energy metering contract to a certain percentage of customers in the service area of each utility.

Prohibits additional charges in net metering contracts that would result in higher charges than other customers pay in the rate class to which the eligible customer­generator would otherwise be assigned.

Provides for billing eligible customer­generators for power supplied by an electric utility that exceeds the electricity generated by the customer­generator during a billing period. Provides for compensation to the eligible customer­generator from electric utilities when electric energy generated by the eligible customer­generator exceeds energy supplied by the utility.


Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  Article 4 of title 40, Colorado Revised Statutes, 1993 Repl. Vol., is amended BY THE ADDITION OF A NEW SECTION to read:

40­4­113.  Net metering of electricity. (1)  THE GENERAL ASSEMBLY HEREBY FINDS, DETERMINES, AND DECLARES THAT NET ENERGY METERING FOR ELIGIBLE CUSTOMER­GENERATORS WILL ENCOURAGE PRIVATE INVESTMENT IN DISTRIBUTED RENEWABLE ENERGY RESOURCES, STIMULATE IN­STATE ECONOMIC GROWTH, ENHANCE THE CONTINUED DIVERSIFICATION OF COLORADO'S ENERGY RESOURCE MIX, AND REDUCE UTILITY INTERCONNECTION AND ADMINISTRATIVE COSTS.

(2)  AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a)  "ELIGIBLE CUSTOMER­GENERATOR" MEANS A CUSTOMER OF AN ELECTRIC UTILITY, INCLUDING ANY PRIVATELY OWNED OR PUBLICLY OWNED PUBLIC UTILITY, MUNICIPALLY OWNED UTILITY, OR COOPERATIVE ELECTRIC ASSOCIATION, WHETHER OR NOT THE ENTITY IS SUBJECT TO THE JURISDICTION OF THE COMMISSION, THAT OWNS AND OPERATES A RENEWABLE ELECTRICAL GENERATING FACILITY WITH A CAPACITY OF NOT MORE THAN TWENTY KILOWATTS THAT IS LOCATED ON THE CUSTOMER'S PREMISES, OPERATES IN PARALLEL WITH THE UTILITY'S TRANSMISSION AND DISTRIBUTION FACILITIES, AND IS INTENDED PRIMARILY TO OFFSET PART OR ALL OF THE CUSTOMER'S OWN ELECTRICAL REQUIREMENTS.

(b)  "NET ENERGY METERING" MEANS MEASURING THE DIFFERENCE BETWEEN THE ELECTRICITY SUPPLIED BY A UTILITY AND THE ELECTRICITY GENERATED BY AN ELIGIBLE CUSTOMER­GENERATOR AND FED BACK TO THE UTILITY OVER AN ENTIRE MONTHLY OR ANNUAL BILLING PERIOD. NET ENERGY METERING SHALL BE ACCOMPLISHED USING A SINGLE, BIDIRECTIONAL METER THAT IS CAPABLE OF REGISTERING THE FLOW OF ELECTRICITY IN TWO DIRECTIONS. THE UTILITY MAY, AT ITS OWN EXPENSE AND WITH THE CONSENT OF THE ELIGIBLE CUSTOMER­GENERATOR, INSTALL AN ADDITIONAL METER OR METERS TO MONITOR THE FLOW OF ELECTRICITY IN EACH DIRECTION. IF A UTILITY INSTALLS AN ADDITIONAL METER OR METERS, THE NET ENERGY METERING CALCULATION SHALL YIELD THE SAME RESULT AS WHEN A SINGLE METER IS USED. THE NET ENERGY METERING CALCULATION SHALL BE MADE BY TAKING THE DIFFERENCE BETWEEN THE ELECTRICITY SUPPLIED BY THE UTILITY AND THE ELECTRICITY GENERATED BY THE ELIGIBLE CUSTOMER­GENERATOR AND FED BACK TO THE UTILITY OVER AN ENTIRE MONTHLY OR ANNUAL BILLING PERIOD.

(3)  EVERY ELECTRIC UTILITY IN THE STATE, INCLUDING WITHOUT LIMITATION A PRIVATELY OWNED OR PUBLICLY OWNED UTILITY, MUNICIPALLY OWNED UTILITY, AND COOPERATIVE ELECTRIC ASSOCIATION, THAT OFFERS RESIDENTIAL AND COMMERCIAL ELECTRICAL SERVICE, WHETHER OR NOT THE ENTITY IS SUBJECT TO THE JURISDICTION OF THE COMMISSION, SHALL DEVELOP A STANDARD CONTRACT FOR NET ENERGY METERING AND SHALL MAKE SUCH STANDARD CONTRACT AVAILABLE TO ELIGIBLE CUSTOMER­GENERATORS ON A FIRST­COME, FIRST­SERVED BASIS UNTIL THE TIME THAT THE TOTAL RATED GENERATING CAPACITY OWNED AND OPERATED BY ELIGIBLE CUSTOMER­GENERATORS IN EACH UTILITY'S SERVICE AREA EQUALS AT LEAST TWO PERCENT OF THE UTILITY'S PEAK ELECTRICITY DEMAND FORECAST FOR THE IMMEDIATELY FOLLOWING CALENDAR YEAR.

(4) (a)  EACH ELIGIBLE CUSTOMER­GENERATOR THAT ACCEPTS THE OFFER OF A STANDARD CONTRACT PURSUANT TO SUBSECTION (3) OF THIS SECTION SHALL BE ENTITLED TO NET ENERGY METERING UNDER THE FOLLOWING CONDITIONS: EACH UTILITY'S NET ENERGY METERING CONTRACT OR TARIFF SHALL BE IDENTICAL, WITH RESPECT TO ENERGY RATES, RATE STRUCTURE, AND MONTHLY CHARGES, TO THE CONTRACT OR TARIFF TO WHICH THE SAME CUSTOMER WOULD BE ASSIGNED IF SUCH CUSTOMER WERE NOT AN ELIGIBLE CUSTOMER­GENERATOR. ANY NEW OR ADDITIONAL DEMAND, STAND­BY, CUSTOMER, MINIMUM MONTHLY, OR OTHER CHARGES THAT WOULD RESULT IN AN AMOUNT GREATER THAN THE AMOUNT THE ELIGIBLE CUSTOMER­GENERATOR'S MINIMUM MONTHLY CHARGE WOULD OTHERWISE BE SHALL NOT FORM A PART OF NET ENERGY METERING CONTRACTS OR TARIFFS.

(b)  WHERE THE ELECTRICITY SUPPLIED BY THE UTILITY EXCEEDS THE ELECTRICITY GENERATED BY THE CUSTOMER­GENERATOR OVER THE APPLICABLE BILLING PERIOD, EITHER MONTHLY OR ANNUALLY, THE CUSTOMER­GENERATOR SHALL BE BILLED FOR THE NET ENERGY SUPPLIED.

(c)  WHERE THE ELECTRICAL ENERGY GENERATED BY THE CUSTOMER­GENERATOR EXCEEDS THE ENERGY SUPPLIED BY THE UTILITY OVER THE APPLICABLE BILLING PERIOD, EITHER MONTHLY OR ANNUALLY, THE CUSTOMER­GENERATOR SHALL BE COMPENSATED FOR THE NET ENERGY GENERATED AT THE APPLICABLE ENERGY PAYMENT RATE FOR QUALIFYING SMALL POWER PRODUCERS. ACTUAL ISSUANCE OF A CHECK PAYABLE TO THE CUSTOMER­GENERATOR SHALL NOT OCCUR UNTIL THE AMOUNT CREDITED TO THE CUSTOMER­GENERATOR EXCEEDS TWENTY­FIVE DOLLARS.

(5) (a)  A UTILITY MAY, WITH THE CONSENT OF THE ELIGIBLE CUSTOMER­GENERATOR, ANNUALIZE THE PERIOD DURING WHICH THE NET ENERGY MEASUREMENT IS CALCULATED, IN WHICH CASE THE UTILITY SHALL MEASURE THE NET ENERGY PRODUCED OR CONSUMED ON A MONTHLY BASIS IN ACCORDANCE WITH NORMAL METERING PRACTICES. WHERE THE ANNUALIZED MEASUREMENT SHOWS THAT THE ELECTRICITY SUPPLIED BY THE UTILITY EXCEEDS THE ELECTRICITY GENERATED BY THE CUSTOMER­GENERATOR DURING THE MONTH, THE CUSTOMER­GENERATOR SHALL BE BILLED FOR THE NET ENERGY SUPPLIED IN ACCORDANCE WITH PARAGRAPH (b) OF SUBSECTION (4) OF THIS SECTION.

(b)  WHERE THE ELECTRICITY GENERATED BY THE CUSTOMER­GENERATOR EXCEEDS THE ELECTRICITY SUPPLIED BY THE UTILITY, THE UTILITY SHALL CREDIT THE CUSTOMER­GENERATOR FOR THE EXCESS NET ENERGY GENERATED IN ACCORDANCE WITH PARAGRAPH (c) OF SUBSECTION (4) OF THIS SECTION. THIS KILOWATT­HOUR CREDIT SHALL APPEAR ON THE NEXT MONTHLY BILL.

(c)  AT THE END OF THE ANNUAL PERIOD, THE UTILITY SHALL ISSUE PAYMENT TO THE CUSTOMER­GENERATOR FOR ANY REMAINING UNUSED CREDIT FOR THE EXCESS KILOWATT­HOURS GENERATED DURING THE PRIOR YEAR. PAYMENT FOR THIS CREDIT SHALL BE AT THE APPLICABLE ENERGY PAYMENT RATE FOR QUALIFYING SMALL POWER PRODUCERS AND SHALL COMPLY WITH PARAGRAPH (a) OF SUBSECTION (4) OF THIS SECTION.

SECTION 2.  Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety­day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.