| 1 | A bill to be entitled | 
| 2 | An act relating to interconnection of customer-owned | 
| 3 | renewable energy generation and net metering; creating s. | 
| 4 | 366.925, F.S.; providing purpose and application; | 
| 5 | providing definitions; requiring electric utilities to | 
| 6 | develop and file standard interconnection agreements for | 
| 7 | Public Service Commission approval; specifying criteria | 
| 8 | for such agreements; specifying qualifications and fees | 
| 9 | for customer-owned renewable energy generation; specifying | 
| 10 | contractual contents of standard interconnection | 
| 11 | agreements; providing administrative requirements for | 
| 12 | customer applications and written notice related to | 
| 13 | standard interconnection agreements; authorizing electric | 
| 14 | utilities to disconnect customer-owned renewable energy | 
| 15 | generation under certain circumstances; requiring electric | 
| 16 | utilities to provide net metering; specifying net metering | 
| 17 | requirements; requiring electric utilities to provide an | 
| 18 | annual report to the commission; providing report | 
| 19 | requirements; requiring the commission to resolve disputes | 
| 20 | relating to customer-owned renewable energy generation and | 
| 21 | net metering; providing an effective date. | 
| 22 | 
 | 
| 23 | Be It Enacted by the Legislature of the State of Florida: | 
| 24 | 
 | 
| 25 | Section 1.  Section 366.925, Florida Statutes, is created | 
| 26 | to read: | 
| 27 | 366.925  Interconnection of customer-owned renewable energy | 
| 28 | generation and net metering.-- | 
| 29 | (1)  PURPOSE AND APPLICATION.--The purpose of this section | 
| 30 | is to promote the development of small customer-owned renewable | 
| 31 | energy generation, particularly through photovoltaic and wind | 
| 32 | systems; diversify the types of fuel used to generate | 
| 33 | electricity in the state; lessen the state's dependence on | 
| 34 | fossil fuels for the production of electricity; minimize the | 
| 35 | volatility of fuel costs; encourage investment in the state; | 
| 36 | improve environmental conditions; and, at the same time, | 
| 37 | minimize costs of power supply to electric utilities and their | 
| 38 | customers. This section applies to all electric utilities as | 
| 39 | defined in s. 366.02(2). | 
| 40 | (2)  DEFINITIONS.--As used in this section, the term: | 
| 41 | (a)  "Commission" means the Public Service Commission. | 
| 42 | (b)  "Customer-owned renewable energy generation" means an | 
| 43 | electric generating system located on a customer's premises that | 
| 44 | is primarily intended to offset part or all of the customer's | 
| 45 | electricity requirements with renewable energy. | 
| 46 | (c)  "Gross power rating" means the total maximum | 
| 47 | generating capacity of onsite customer-owned renewable energy | 
| 48 | generation interconnected to the electric utility's distribution | 
| 49 | facilities. | 
| 50 | (d)  "Net metering" means a metering and billing | 
| 51 | methodology whereby customer-owned renewable energy | 
| 52 | generation is allowed to offset the customer's electricity | 
| 53 | consumption on site, net customer usage is billed under the | 
| 54 | electric utility's otherwise applicable rate schedule, and | 
| 55 | excess customer-owned renewable energy generation delivered to | 
| 56 | the electric utility is accumulated and paid for at the end of | 
| 57 | each calendar year at a rate equal to the full retail rate. | 
| 58 | (e)  "Renewable energy" means electrical, mechanical, or | 
| 59 | thermal energy produced from a method that uses one or more of | 
| 60 | the following fuels or energy sources: hydrogen, biomass, solar | 
| 61 | energy, geothermal energy, wind energy, ocean energy, waste | 
| 62 | heat, or hydroelectric power. | 
| 63 | (3)  STANDARD INTERCONNECTION AGREEMENTS.--Each electric | 
| 64 | utility shall, within 30 days after the effective date of this | 
| 65 | act, file for commission approval a standard interconnection | 
| 66 | agreement for expedited interconnection of customer-owned | 
| 67 | renewable energy generation up to 1 megawatt that complies with | 
| 68 | the following: | 
| 69 | (a)  Each customer-owned renewable energy generation | 
| 70 | facility and interconnection shall comply with the following | 
| 71 | standards, as applicable: | 
| 72 | 1.  IEEE 1547 (2003), Standard for Interconnecting | 
| 73 | Distributed Resources with Electric Power Systems. | 
| 74 | 2.  UL 1741 (2001), Standard for Inverters, Converters, | 
| 75 | Controllers and Interconnection System Equipment for Use With | 
| 76 | Distributed Energy Resources. | 
| 77 | (b)  Customer-owned renewable energy generation shall be | 
| 78 | considered certified for interconnected operation if it has been | 
| 79 | submitted by a manufacturer to a nationally recognized testing | 
| 80 | and certification laboratory and has been tested and listed by | 
| 81 | the laboratory for continuous interactive operation with an | 
| 82 | electric distribution system in compliance with the applicable | 
| 83 | codes and standards listed in paragraph (a). | 
| 84 | (c)  If the equipment package has been tested and listed in | 
| 85 | accordance with this subsection as an integrated package, which | 
| 86 | includes a generator or other electric source, the equipment | 
| 87 | package shall be deemed certified, and the electric utility | 
| 88 | shall not require further design review, testing, or additional | 
| 89 | equipment other than that provided for in subsection (5). | 
| 90 | (4)  CUSTOMER QUALIFICATIONS AND FEES.-- | 
| 91 | (a)  Regardless of customer load, to qualify for expedited | 
| 92 | interconnection under this section, customer-owned renewable | 
| 93 | energy generation must have a gross power rating that falls | 
| 94 | within one of the following ranges: | 
| 95 | 1.  Tier 1: 25 kilowatts or less. | 
| 96 | 2.  Tier 2: greater than 25 kilowatts and less than or | 
| 97 | equal to 100 kilowatts. | 
| 98 | 3.  Tier 3: greater than 100 kilowatts and less than or | 
| 99 | equal to 1 megawatt. | 
| 100 | (b)  Tier 1 customers who request interconnection of | 
| 101 | customer-owned renewable energy generation shall not be charged | 
| 102 | fees in addition to those charged to other retail customers | 
| 103 | without self-generation, including application fees. | 
| 104 | (c)  Along with the standard interconnection agreement | 
| 105 | filed pursuant to subsection (3), each electric utility may | 
| 106 | propose for commission approval a standard application fee for | 
| 107 | Tiers 2 and 3, including an itemized accounting of each cost | 
| 108 | contained within the fee. | 
| 109 | (d)  The electric utility may also propose for commission | 
| 110 | approval an interconnection study charge for Tier 3. | 
| 111 | (e)  The electric utility shall show that its fees and | 
| 112 | charges are cost-based and reasonable. No fees or charges shall | 
| 113 | be assessed for interconnecting customer-owned renewable energy | 
| 114 | generation without prior commission approval. | 
| 115 | (5)  CONTENTS OF STANDARD INTERCONNECTION AGREEMENT.-- | 
| 116 | (a)  Each electric utility's standard interconnection | 
| 117 | agreement for customer-owned renewable energy generation shall, | 
| 118 | at a minimum, contain the following: | 
| 119 | 1.  A requirement that customer-owned renewable energy | 
| 120 | generation must be inspected and approved by local code | 
| 121 | officials prior to its operation in parallel with an electric | 
| 122 | utility to ensure compliance with applicable local codes. | 
| 123 | 2.  Provisions that permit the electric utility to inspect | 
| 124 | customer-owned renewable energy generation and its component | 
| 125 | equipment and the documents necessary to ensure compliance with | 
| 126 | subsections (2), (3), and (4). The electric utility shall have | 
| 127 | the right to have personnel present at the initial testing of | 
| 128 | customer equipment and protective apparatus. | 
| 129 | 3.  A provision that the customer who operates customer- | 
| 130 | owned renewable energy generation is responsible for protecting | 
| 131 | its generating equipment, inverters, protective devices, and | 
| 132 | other system components from damage from the normal and abnormal | 
| 133 | conditions and operations that occur on the electric utility | 
| 134 | system in delivering and restoring power and is responsible for | 
| 135 | ensuring that customer-owned renewable energy generation | 
| 136 | equipment is inspected, maintained, and tested in accordance | 
| 137 | with the manufacturer's instructions to ensure that it is | 
| 138 | operating correctly and safely. | 
| 139 | 4.  A requirement for general liability insurance for | 
| 140 | personal and property damage in the amount of no more than | 
| 141 | $100,000 for Tiers 1 and 2 and no more than $1 million for Tier | 
| 142 | 3. | 
| 143 | 5.  Identification of any fees or charges approved pursuant | 
| 144 | to subsection (4). | 
| 145 | (b)  Each electric utility's standard interconnection | 
| 146 | agreement for customer-owned renewable energy generation may | 
| 147 | require the customer to: | 
| 148 | 1.  Install, at the electric utility's expense for Tier 1 | 
| 149 | systems and at the customer's expense for Tier 2 and Tier 3 | 
| 150 | systems, a manual disconnect switch of the visible load break | 
| 151 | type to provide a separation point between the AC power output | 
| 152 | of the customer-owned renewable energy generation and any | 
| 153 | customer wiring connected to the electric utility's system. The | 
| 154 | manual disconnect switch shall be mounted separately from the | 
| 155 | meter socket and shall be readily accessible to the electric | 
| 156 | utility and capable of being locked in the open position with an | 
| 157 | electric utility padlock. The electric utility may open the | 
| 158 | switch, isolating the customer-owned renewable energy | 
| 159 | generation, without prior notice to the customer. To the extent | 
| 160 | practicable, however, prior notice shall be given. | 
| 161 | 2.  Provide a written agreement to hold harmless and | 
| 162 | indemnify the electric utility from all loss resulting from the | 
| 163 | operation of the customer-owned renewable energy generation, | 
| 164 | except when loss occurs due to the negligent actions of the | 
| 165 | electric utility. | 
| 166 | (6)  ADMINISTRATIVE REQUIREMENTS.--Upon a customer's | 
| 167 | request, the electric utility shall provide, within 5 business | 
| 168 | days, an application for interconnection detailing the | 
| 169 | information necessary to execute the standard interconnection | 
| 170 | agreement. Within 10 business days after receipt of the | 
| 171 | customer's application, the electric utility shall provide | 
| 172 | written notice that it has received all documents required by | 
| 173 | the standard interconnection agreement. The written notice shall | 
| 174 | also include dates for any physical inspection of the customer- | 
| 175 | owned renewable energy generation necessary for the electric | 
| 176 | utility to confirm compliance with subsections (2), (3), (4), | 
| 177 | and (5). The standard interconnection agreement shall be | 
| 178 | executed by the electric utility within 30 calendar days after | 
| 179 | receipt of a completed application for Tiers 1 and 2, and within | 
| 180 | 60 calendar days for Tier 3 if an interconnection study is | 
| 181 | necessary. The customer must execute the standard | 
| 182 | interconnection agreement and return it to the electric utility | 
| 183 | at least 5 business days prior to beginning parallel operations. | 
| 184 | (7)  CONDITIONS FOR DISCONNECT.--Any of the following | 
| 185 | conditions shall be cause for the electric utility to disconnect | 
| 186 | customer-owned renewable energy generation from its system: | 
| 187 | (a)  Electric utility system emergencies or maintenance | 
| 188 | requirements. | 
| 189 | (b)  Hazardous conditions existing on the electric utility | 
| 190 | system due to the operation of the customer's generating or | 
| 191 | protective equipment as determined by the electric utility. | 
| 192 | (c)  Adverse electrical effects, such as power quality | 
| 193 | problems, on the electrical equipment of the electric utility's | 
| 194 | other electric consumers caused by the customer-owned renewable | 
| 195 | energy generation as determined by the electric utility. | 
| 196 | (d)  Failure of the customer to maintain the required | 
| 197 | insurance coverage. | 
| 198 | (8)  NET METERING.-- | 
| 199 | (a)  Each electric utility shall enable each customer-owned | 
| 200 | renewable energy generation facility interconnected to the | 
| 201 | electric utility's electrical grid pursuant to this section to | 
| 202 | net meter. | 
| 203 | (b)  Each electric utility shall install, at no additional | 
| 204 | cost to the customer, metering equipment at the point of | 
| 205 | delivery capable of measuring the difference between the | 
| 206 | electricity supplied to the customer from the electric utility | 
| 207 | and the electricity generated by customer-owned renewable energy | 
| 208 | generation, including excess electric energy delivered to the | 
| 209 | electric utility's electrical grid. | 
| 210 | (c)  Meter readings shall be taken monthly on the same | 
| 211 | cycle as required under the otherwise applicable rate schedule. | 
| 212 | (d)  The electric utility shall charge for electricity used | 
| 213 | by the customer in excess of the electricity supplied by | 
| 214 | customer-owned renewable energy generation in accordance with | 
| 215 | normal billing practices. | 
| 216 | (e)  During any billing cycle, excess customer-owned | 
| 217 | renewable energy generation delivered to the electric utility's | 
| 218 | electrical grid shall be credited to the customer's energy | 
| 219 | consumption for the next month's billing cycle. | 
| 220 | (f)  Energy credits produced pursuant to paragraph (e) | 
| 221 | shall accumulate and be used to offset the customer's energy | 
| 222 | usage in subsequent months for a period of not more than 12 | 
| 223 | months. At the end of each calendar year, the electric utility | 
| 224 | shall pay the customer for any unused energy credits at a rate | 
| 225 | equal to the full retail rate under the otherwise applicable | 
| 226 | rate schedule. Payment for accumulated year-end energy credits | 
| 227 | shall not include any portion of the applicable customer charge | 
| 228 | or demand charge. | 
| 229 | (g)  When a customer leaves the system, that customer's | 
| 230 | unused credits for excess kilowatt hours generated shall be paid | 
| 231 | to the customer at a rate equal to the full retail rate under | 
| 232 | the otherwise applicable rate schedule. | 
| 233 | (9)  REPORTING REQUIREMENTS.--Each electric utility shall | 
| 234 | report the following to the commission by April 1 of each year: | 
| 235 | (a)  Total number of customer-owned renewable energy | 
| 236 | generation interconnections. | 
| 237 | (b)  Total kilowatt capacity of customer-owned renewable | 
| 238 | energy generation interconnected. | 
| 239 | (c)  Total kilowatt hours received by interconnected | 
| 240 | customers from the electric utility, by month and by year for | 
| 241 | the previous calendar year. | 
| 242 | (d)  Total kilowatt hours of customer-owned renewable | 
| 243 | energy generation delivered to the electric utility, by month | 
| 244 | and by year for the previous calendar year. | 
| 245 | (e)  Total energy payments made to interconnected customers | 
| 246 | for customer-owned renewable energy generation delivered to the | 
| 247 | electric utility. | 
| 248 | (f)  For each individual customer-owned renewable energy | 
| 249 | generation interconnection: | 
| 250 | 1.  Renewable technology utilized. | 
| 251 | 2.  Gross power rating. | 
| 252 | 3.  Geographic location by county. | 
| 253 | 4.  Date interconnected. | 
| 254 | (10)  DISPUTE RESOLUTION.--When an electric utility refuses | 
| 255 | to interconnect with customer-owned renewable energy generation | 
| 256 | or provide net metering or attempts to impose unreasonable | 
| 257 | standards or conditions, the customer may petition the | 
| 258 | commission for relief. The electric utility shall have the | 
| 259 | burden of demonstrating to the commission why interconnection | 
| 260 | with the customer-owned renewable energy generation should not | 
| 261 | be required, why net metering should not be provided, or that | 
| 262 | the standards or conditions the electric utility seeks to impose | 
| 263 | on the customer-owned renewable energy generation are | 
| 264 | reasonable. The commission shall resolve each issue set forth in | 
| 265 | the petition in an expedited manner. | 
| 266 | Section 2.  This act shall take effect July 1, 2008. |