HF845

This bill aims to modify existing laws concerning net metering, which allows customers who generate their own electricity (through solar, wind, etc.) to send excess electricity back to the grid and get credited. Here are the key changes and details it introduces in simple terms:

1. Definitions:

   • Aggregated Meter: A meter that is located on contiguous property owned or leased by the customer.
   • Capacity: Refers to the capacity of a distributed generation facility in megawatts.
   • Cogeneration: The simultaneous production of electrical and useful thermal energy.
   • Contiguous Property: Property that shares a common border with the customer's property, despite possible separations like roads or utility rights-of-way.
   • Customer: The person named on the utility electric bill.
   • Designated Meter: The main meter attached to a facility for billing and crediting purposes.
   • Distributed Generation: Small-scale power generation technology that produces electricity close to the point of consumption.
   • High-Efficiency Distributed Generation: A facility with at least 40% efficiency.
   • Net Metered Facility: A facility that generates electricity to offset energy use through renewable or high-efficiency sources.
   • Renewable Energy: Defined as per existing laws.
   • Standby Charge: A charge for backup power from the grid.

2. Regulations for Small Generation Facilities:

   • For cooperative and municipal utilities: Facilities under 40 kilowatts are billed for net energy supplied, with possible additional charges based on cost studies which must be made available to customers.
   • For public utilities: Facilities under 1,000 kilowatts are also billed for net energy supplied, with distinct terms for those over and under 40 kilowatts.

3. Compensation for Electricity Supplied to the Grid:

   • The rates for energy sent back to the grid are based on fixed costs, ensuring fairness without discrimination.
   • Qualifying smaller facilities can choose to be compensated at the average retail utility rate for their input.
   • In cases where a non-generating utility is involved, arrangements are made for compensation through its supplier.

4. Credit System:

   • Customers of cooperative or municipal utilities with facilities under 40 kilowatts can receive credits for excess energy, which are applied to future bills and expire annually.

This bill essentially updates and clarifies how small energy producers interact with the grid and are compensated, making the process more defined and potentially fairer across different types of utilities.