Illinois General Assembly - Full Text of HB4262
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Full Text of HB4262  102nd General Assembly

HB4262 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4262

 

Introduced 1/5/2022, by Rep. Michelle Mussman

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-107.5

    Amends the Public Utilities Act. Provides that a local electric utility shall send notice, separate and apart from any other communication, to a customer listed as net metering in the electric utility's billing system if the customer's electricity provider changes. Provides that the notice shall remind customers to ensure that the customer's eligible system is registered with their current electricity provider and receiving credits for net metering.


LRB102 22305 SPS 31440 b

 

 

A BILL FOR

 

HB4262LRB102 22305 SPS 31440 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Section 16-107.5 as follows:
 
6    (220 ILCS 5/16-107.5)
7    Sec. 16-107.5. Net electricity metering.
8    (a) The General Assembly finds and declares that a program
9to provide net electricity metering, as defined in this
10Section, for eligible customers can encourage private
11investment in renewable energy resources, stimulate economic
12growth, enhance the continued diversification of Illinois'
13energy resource mix, and protect the Illinois environment.
14Further, to achieve the goals of this Act that robust options
15for customer-site distributed generation continue to thrive in
16Illinois, the General Assembly finds that a predictable
17transition must be ensured for customers between full net
18metering at the retail electricity rate to the distribution
19generation rebate described in Section 16-107.6.
20    (b) As used in this Section, (i) "community renewable
21generation project" shall have the meaning set forth in
22Section 1-10 of the Illinois Power Agency Act; (ii) "eligible
23customer" means a retail customer that owns, hosts, or

 

 

HB4262- 2 -LRB102 22305 SPS 31440 b

1operates, including any third-party owned systems, a solar,
2wind, or other eligible renewable electrical generating
3facility that is located on the customer's premises or
4customer's side of the billing meter and is intended primarily
5to offset the customer's own current or future electrical
6requirements; (iii) "electricity provider" means an electric
7utility or alternative retail electric supplier; (iv)
8"eligible renewable electrical generating facility" means a
9generator, which may include the co-location of an energy
10storage system, that is interconnected under rules adopted by
11the Commission and is powered by solar electric energy, wind,
12dedicated crops grown for electricity generation, agricultural
13residues, untreated and unadulterated wood waste, livestock
14manure, anaerobic digestion of livestock or food processing
15waste, fuel cells or microturbines powered by renewable fuels,
16or hydroelectric energy; (v) "net electricity metering" (or
17"net metering") means the measurement, during the billing
18period applicable to an eligible customer, of the net amount
19of electricity supplied by an electricity provider to the
20customer or provided to the electricity provider by the
21customer or subscriber; (vi) "subscriber" shall have the
22meaning as set forth in Section 1-10 of the Illinois Power
23Agency Act; (vii) "subscription" shall have the meaning set
24forth in Section 1-10 of the Illinois Power Agency Act; (viii)
25"energy storage system" means commercially available
26technology that is capable of absorbing energy and storing it

 

 

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1for a period of time for use at a later time, including, but
2not limited to, electrochemical, thermal, and
3electromechanical technologies, and may be interconnected
4behind the customer's meter or interconnected behind its own
5meter; and (ix) "future electrical requirements" means modeled
6electrical requirements upon occupation of a new or vacant
7property, and other reasonable expectations of future
8electrical use, as well as, for occupied properties, a
9reasonable approximation of the annual load of 2 electric
10vehicles and, for non-electric heating customers, a reasonable
11approximation of the incremental electric load associated with
12fuel switching. The approximations shall be applied to the
13appropriate net metering tariff and do not need to be unique to
14each individual eligible customer. The utility shall submit
15these approximations to the Commission for review,
16modification, and approval.
17    (c) A net metering facility shall be equipped with
18metering equipment that can measure the flow of electricity in
19both directions at the same rate.
20        (1) For eligible customers whose electric service has
21    not been declared competitive pursuant to Section 16-113
22    of this Act as of July 1, 2011 and whose electric delivery
23    service is provided and measured on a kilowatt-hour basis
24    and electric supply service is not provided based on
25    hourly pricing, this shall typically be accomplished
26    through use of a single, bi-directional meter. If the

 

 

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1    eligible customer's existing electric revenue meter does
2    not meet this requirement, the electricity provider shall
3    arrange for the local electric utility or a meter service
4    provider to install and maintain a new revenue meter at
5    the electricity provider's expense, which may be the smart
6    meter described by subsection (b) of Section 16-108.5 of
7    this Act.
8        (2) For eligible customers whose electric service has
9    not been declared competitive pursuant to Section 16-113
10    of this Act as of July 1, 2011 and whose electric delivery
11    service is provided and measured on a kilowatt demand
12    basis and electric supply service is not provided based on
13    hourly pricing, this shall typically be accomplished
14    through use of a dual channel meter capable of measuring
15    the flow of electricity both into and out of the
16    customer's facility at the same rate and ratio. If such
17    customer's existing electric revenue meter does not meet
18    this requirement, then the electricity provider shall
19    arrange for the local electric utility or a meter service
20    provider to install and maintain a new revenue meter at
21    the electricity provider's expense, which may be the smart
22    meter described by subsection (b) of Section 16-108.5 of
23    this Act.
24        (3) For all other eligible customers, until such time
25    as the local electric utility installs a smart meter, as
26    described by subsection (b) of Section 16-108.5 of this

 

 

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1    Act, the electricity provider may arrange for the local
2    electric utility or a meter service provider to install
3    and maintain metering equipment capable of measuring the
4    flow of electricity both into and out of the customer's
5    facility at the same rate and ratio, typically through the
6    use of a dual channel meter. If the eligible customer's
7    existing electric revenue meter does not meet this
8    requirement, then the costs of installing such equipment
9    shall be paid for by the customer.
10    (d) An electricity provider shall measure and charge or
11credit for the net electricity supplied to eligible customers
12or provided by eligible customers whose electric service has
13not been declared competitive pursuant to Section 16-113 of
14this Act as of July 1, 2011 and whose electric delivery service
15is provided and measured on a kilowatt-hour basis and electric
16supply service is not provided based on hourly pricing in the
17following manner:
18        (1) If the amount of electricity used by the customer
19    during the billing period exceeds the amount of
20    electricity produced by the customer, the electricity
21    provider shall charge the customer for the net electricity
22    supplied to and used by the customer as provided in
23    subsection (e-5) of this Section.
24        (2) If the amount of electricity produced by a
25    customer during the billing period exceeds the amount of
26    electricity used by the customer during that billing

 

 

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1    period, the electricity provider supplying that customer
2    shall apply a 1:1 kilowatt-hour credit to a subsequent
3    bill for service to the customer for the net electricity
4    supplied to the electricity provider. The electricity
5    provider shall continue to carry over any excess
6    kilowatt-hour credits earned and apply those credits to
7    subsequent billing periods to offset any
8    customer-generator consumption in those billing periods
9    until all credits are used or until the end of the
10    annualized period.
11        (3) At the end of the year or annualized over the
12    period that service is supplied by means of net metering,
13    or in the event that the retail customer terminates
14    service with the electricity provider prior to the end of
15    the year or the annualized period, any remaining credits
16    in the customer's account shall expire.
17    (d-5) An electricity provider shall measure and charge or
18credit for the net electricity supplied to eligible customers
19or provided by eligible customers whose electric service has
20not been declared competitive pursuant to Section 16-113 of
21this Act as of July 1, 2011 and whose electric delivery service
22is provided and measured on a kilowatt-hour basis and electric
23supply service is provided based on hourly pricing or
24time-of-use rates in the following manner:
25        (1) If the amount of electricity used by the customer
26    during any hourly period or time-of-use period exceeds the

 

 

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1    amount of electricity produced by the customer, the
2    electricity provider shall charge the customer for the net
3    electricity supplied to and used by the customer according
4    to the terms of the contract or tariff to which the same
5    customer would be assigned to or be eligible for if the
6    customer was not a net metering customer.
7        (2) If the amount of electricity produced by a
8    customer during any hourly period or time-of-use period
9    exceeds the amount of electricity used by the customer
10    during that hourly period or time-of-use period, the
11    energy provider shall apply a credit for the net
12    kilowatt-hours produced in such period. The credit shall
13    consist of an energy credit and a delivery service credit.
14    The energy credit shall be valued at the same price per
15    kilowatt-hour as the electric service provider would
16    charge for kilowatt-hour energy sales during that same
17    hourly period or time-of-use period. The delivery credit
18    shall be equal to the net kilowatt-hours produced in such
19    hourly period or time-of-use period times a credit that
20    reflects all kilowatt-hour based charges in the customer's
21    electric service rate, excluding energy charges.
22    (e) An electricity provider shall measure and charge or
23credit for the net electricity supplied to eligible customers
24whose electric service has not been declared competitive
25pursuant to Section 16-113 of this Act as of July 1, 2011 and
26whose electric delivery service is provided and measured on a

 

 

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1kilowatt demand basis and electric supply service is not
2provided based on hourly pricing in the following manner:
3        (1) If the amount of electricity used by the customer
4    during the billing period exceeds the amount of
5    electricity produced by the customer, then the electricity
6    provider shall charge the customer for the net electricity
7    supplied to and used by the customer as provided in
8    subsection (e-5) of this Section. The customer shall
9    remain responsible for all taxes, fees, and utility
10    delivery charges that would otherwise be applicable to the
11    net amount of electricity used by the customer.
12        (2) If the amount of electricity produced by a
13    customer during the billing period exceeds the amount of
14    electricity used by the customer during that billing
15    period, then the electricity provider supplying that
16    customer shall apply a 1:1 kilowatt-hour credit that
17    reflects the kilowatt-hour based charges in the customer's
18    electric service rate to a subsequent bill for service to
19    the customer for the net electricity supplied to the
20    electricity provider. The electricity provider shall
21    continue to carry over any excess kilowatt-hour credits
22    earned and apply those credits to subsequent billing
23    periods to offset any customer-generator consumption in
24    those billing periods until all credits are used or until
25    the end of the annualized period.
26        (3) At the end of the year or annualized over the

 

 

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1    period that service is supplied by means of net metering,
2    or in the event that the retail customer terminates
3    service with the electricity provider prior to the end of
4    the year or the annualized period, any remaining credits
5    in the customer's account shall expire.
6    (e-5) An electricity provider shall provide electric
7service to eligible customers who utilize net metering at
8non-discriminatory rates that are identical, with respect to
9rate structure, retail rate components, and any monthly
10charges, to the rates that the customer would be charged if not
11a net metering customer. An electricity provider shall not
12charge net metering customers any fee or charge or require
13additional equipment, insurance, or any other requirements not
14specifically authorized by interconnection standards
15authorized by the Commission, unless the fee, charge, or other
16requirement would apply to other similarly situated customers
17who are not net metering customers. The customer will remain
18responsible for all taxes, fees, and utility delivery charges
19that would otherwise be applicable to the net amount of
20electricity used by the customer. Subsections (c) through (e)
21of this Section shall not be construed to prevent an
22arms-length agreement between an electricity provider and an
23eligible customer that sets forth different prices, terms, and
24conditions for the provision of net metering service,
25including, but not limited to, the provision of the
26appropriate metering equipment for non-residential customers.

 

 

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1    (f) Notwithstanding the requirements of subsections (c)
2through (e-5) of this Section, an electricity provider must
3require dual-channel metering for customers operating eligible
4renewable electrical generating facilities to whom the
5provisions of neither subsection (d), (d-5), nor (e) of this
6Section apply. In such cases, electricity charges and credits
7shall be determined as follows:
8        (1) The electricity provider shall assess and the
9    customer remains responsible for all taxes, fees, and
10    utility delivery charges that would otherwise be
11    applicable to the gross amount of kilowatt-hours supplied
12    to the eligible customer by the electricity provider.
13        (2) Each month that service is supplied by means of
14    dual-channel metering, the electricity provider shall
15    compensate the eligible customer for any excess
16    kilowatt-hour credits at the electricity provider's
17    avoided cost of electricity supply over the monthly period
18    or as otherwise specified by the terms of a power-purchase
19    agreement negotiated between the customer and electricity
20    provider.
21        (3) For all eligible net metering customers taking
22    service from an electricity provider under contracts or
23    tariffs employing hourly or time-of-use rates, any monthly
24    consumption of electricity shall be calculated according
25    to the terms of the contract or tariff to which the same
26    customer would be assigned to or be eligible for if the

 

 

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1    customer was not a net metering customer. When those same
2    customer-generators are net generators during any discrete
3    hourly or time-of-use period, the net kilowatt-hours
4    produced shall be valued at the same price per
5    kilowatt-hour as the electric service provider would
6    charge for retail kilowatt-hour sales during that same
7    time-of-use period.
8    (g) For purposes of federal and State laws providing
9renewable energy credits or greenhouse gas credits, the
10eligible customer shall be treated as owning and having title
11to the renewable energy attributes, renewable energy credits,
12and greenhouse gas emission credits related to any electricity
13produced by the qualified generating unit. The electricity
14provider may not condition participation in a net metering
15program on the signing over of a customer's renewable energy
16credits; provided, however, this subsection (g) shall not be
17construed to prevent an arms-length agreement between an
18electricity provider and an eligible customer that sets forth
19the ownership or title of the credits.
20    (h) Within 120 days after the effective date of this
21amendatory Act of the 95th General Assembly, the Commission
22shall establish standards for net metering and, if the
23Commission has not already acted on its own initiative,
24standards for the interconnection of eligible renewable
25generating equipment to the utility system. The
26interconnection standards shall address any procedural

 

 

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1barriers, delays, and administrative costs associated with the
2interconnection of customer-generation while ensuring the
3safety and reliability of the units and the electric utility
4system. The Commission shall consider the Institute of
5Electrical and Electronics Engineers (IEEE) Standard 1547 and
6the issues of (i) reasonable and fair fees and costs, (ii)
7clear timelines for major milestones in the interconnection
8process, (iii) nondiscriminatory terms of agreement, and (iv)
9any best practices for interconnection of distributed
10generation.
11    (h-5) Within 90 days after the effective date of this
12amendatory Act of the 102nd General Assembly, the Commission
13shall:
14        (1) establish an Interconnection Working Group. The
15    working group shall include representatives from electric
16    utilities, developers of renewable electric generating
17    facilities, other industries that regularly apply for
18    interconnection with the electric utilities,
19    representatives of distributed generation customers, the
20    Commission Staff, and such other stakeholders with a
21    substantial interest in the topics addressed by the
22    Interconnection Working Group. The Interconnection Working
23    Group shall address at least the following issues:
24            (A) cost and best available technology for
25        interconnection and metering, including the
26        standardization and publication of standard costs;

 

 

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1            (B) transparency, accuracy and use of the
2        distribution interconnection queue and hosting
3        capacity maps;
4            (C) distribution system upgrade cost avoidance
5        through use of advanced inverter functions;
6            (D) predictability of the queue management process
7        and enforcement of timelines;
8            (E) benefits and challenges associated with group
9        studies and cost sharing;
10            (F) minimum requirements for application to the
11        interconnection process and throughout the
12        interconnection process to avoid queue clogging
13        behavior;
14            (G) process and customer service for
15        interconnecting customers adopting distributed energy
16        resources, including energy storage;
17            (H) options for metering distributed energy
18        resources, including energy storage;
19            (I) interconnection of new technologies, including
20        smart inverters and energy storage;
21            (J) collect, share, and examine data on Level 1
22        interconnection costs, including cost and type of
23        upgrades required for interconnection, and use this
24        data to inform the final standardized cost of Level 1
25        interconnection; and
26            (K) such other technical, policy, and tariff

 

 

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1        issues related to and affecting interconnection
2        performance and customer service as determined by the
3        Interconnection Working Group.
4        The Commission may create subcommittees of the
5    Interconnection Working Group to focus on specific issues
6    of importance, as appropriate. The Interconnection Working
7    Group shall report to the Commission on recommended
8    improvements to interconnection rules and tariffs and
9    policies as determined by the Interconnection Working
10    Group at least every 6 months. Such reports shall include
11    consensus recommendations of the Interconnection Working
12    Group and, if applicable, additional recommendations for
13    which consensus was not reached. The Commission shall use
14    the report from the Interconnection Working Group to
15    determine whether processes should be commenced to
16    formally codify or implement the recommendations;
17        (2) create or contract for an Ombudsman to resolve
18    interconnection disputes through non-binding arbitration.
19    The Ombudsman may be paid in full or in part through fees
20    levied on the initiators of the dispute; and
21        (3) determine a single standardized cost for Level 1
22    interconnections, which shall not exceed $200.
23    (i) All electricity providers shall begin to offer net
24metering no later than April 1, 2008.
25    (j) An electricity provider shall provide net metering to
26eligible customers according to subsections (d), (d-5), and

 

 

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1(e). Eligible renewable electrical generating facilities for
2which eligible customers registered for net metering before
3January 1, 2025 shall continue to receive net metering
4services according to subsections (d), (d-5), and (e) of this
5Section for the lifetime of the system, regardless of whether
6those retail customers change electricity providers or whether
7the retail customer benefiting from the system changes. On and
8after January 1, 2025, any eligible customer that applies for
9net metering and previously would have qualified under
10subsections (d), (d-5), or (e) shall only be eligible for net
11metering as described in subsection (n).
12    (k) Each electricity provider shall maintain records and
13report annually to the Commission the total number of net
14metering customers served by the provider, as well as the
15type, capacity, and energy sources of the generating systems
16used by the net metering customers. Nothing in this Section
17shall limit the ability of an electricity provider to request
18the redaction of information deemed by the Commission to be
19confidential business information.
20    (l)(1) Notwithstanding the definition of "eligible
21customer" in item (ii) of subsection (b) of this Section, each
22electricity provider shall allow net metering as set forth in
23this subsection (l) and for the following projects, provided
24that only electric utilities serving more than 200,000
25customers as of January 1, 2021 shall provide net metering for
26projects that are eligible for subparagraph (C) of this

 

 

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1paragraph (1) and have energized after the effective date of
2this amendatory Act of the 102nd General Assembly:
3        (A) properties owned or leased by multiple customers
4    that contribute to the operation of an eligible renewable
5    electrical generating facility through an ownership or
6    leasehold interest of at least 200 watts in such facility,
7    such as a community-owned wind project, a community-owned
8    biomass project, a community-owned solar project, or a
9    community methane digester processing livestock waste from
10    multiple sources, provided that the facility is also
11    located within the utility's service territory;
12        (B) individual units, apartments, or properties
13    located in a single building that are owned or leased by
14    multiple customers and collectively served by a common
15    eligible renewable electrical generating facility, such as
16    an office or apartment building, a shopping center or
17    strip mall served by photovoltaic panels on the roof; and
18        (C) subscriptions to community renewable generation
19    projects, including community renewable generation
20    projects on the customer's side of the billing meter of a
21    host facility and partially used for the customer's own
22    load.
23    In addition, the nameplate capacity of the eligible
24renewable electric generating facility that serves the demand
25of the properties, units, or apartments identified in
26paragraphs (1) and (2) of this subsection (l) shall not exceed

 

 

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15,000 kilowatts in nameplate capacity in total. Any eligible
2renewable electrical generating facility or community
3renewable generation project that is powered by photovoltaic
4electric energy and installed after the effective date of this
5amendatory Act of the 99th General Assembly must be installed
6by a qualified person in compliance with the requirements of
7Section 16-128A of the Public Utilities Act and any rules or
8regulations adopted thereunder.
9    (2) Notwithstanding anything to the contrary, an
10electricity provider shall provide credits for the electricity
11produced by the projects described in paragraph (1) of this
12subsection (l). The electricity provider shall provide credits
13that include at least energy supply, capacity, transmission,
14and, if applicable, the purchased energy adjustment on the
15subscriber's monthly bill equal to the subscriber's share of
16the production of electricity from the project, as determined
17by paragraph (3) of this subsection (l). For customers with
18transmission or capacity charges not charged on a
19kilowatt-hour basis, the electricity provider shall prepare a
20reasonable approximation of the kilowatt-hour equivalent value
21and provide that value as a monetary credit. The electricity
22provider shall submit these approximation methodologies to the
23Commission for review, modification, and approval.
24Notwithstanding anything to the contrary, customers on payment
25plans or participating in budget billing programs shall have
26credits applied on a monthly basis.

 

 

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1    (3) Notwithstanding anything to the contrary and
2regardless of whether a subscriber to an eligible community
3renewable generation project receives power and energy service
4from the electric utility or an alternative retail electric
5supplier, for projects eligible under paragraph (C) of
6subparagraph (1) of this subsection (l), electric utilities
7serving more than 200,000 customers as of January 1, 2021
8shall provide the monetary credits to a subscriber's
9subsequent bill for the electricity produced by community
10renewable generation projects. The electric utility shall
11provide monetary credits to a subscriber's subsequent bill at
12the utility's total price to compare equal to the subscriber's
13share of the production of electricity from the project, as
14determined by paragraph (5) of this subsection (l). For the
15purposes of this subsection, "total price to compare" means
16the rate or rates published by the Illinois Commerce
17Commission for energy supply for eligible customers receiving
18supply service from the electric utility, and shall include
19energy, capacity, transmission, and the purchased energy
20adjustment. Notwithstanding anything to the contrary,
21customers on payment plans or participating in budget billing
22programs shall have credits applied on a monthly basis. Any
23applicable credit or reduction in load obligation from the
24production of the community renewable generating projects
25receiving a credit under this subsection shall be credited to
26the electric utility to offset the cost of providing the

 

 

HB4262- 19 -LRB102 22305 SPS 31440 b

1credit. To the extent that the credit or load obligation
2reduction does not completely offset the cost of providing the
3credit to subscribers of community renewable generation
4projects as described in this subsection, the electric utility
5may recover the remaining costs through its Multi-Year Rate
6Plan. All electric utilities serving 200,000 or fewer
7customers as of January 1, 2021 shall only provide the
8monetary credits to a subscriber's subsequent bill for the
9electricity produced by community renewable generation
10projects if the subscriber receives power and energy service
11from the electric utility. Alternative retail electric
12suppliers providing power and energy service to a subscriber
13located within the service territory of an electric utility
14not subject to Sections 16-108.18 and 16-118 shall provide the
15monetary credits to the subscriber's subsequent bill for the
16electricity produced by community renewable generation
17projects.
18    (4) If requested by the owner or operator of a community
19renewable generating project, an electric utility serving more
20than 200,000 customers as of January 1, 2021 shall enter into a
21net crediting agreement with the owner or operator to include
22a subscriber's subscription fee on the subscriber's monthly
23electric bill and provide the subscriber with a net credit
24equivalent to the total bill credit value for that generation
25period minus the subscription fee, provided the subscription
26fee is structured as a fixed percentage of bill credit value.

 

 

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1The net crediting agreement shall set forth payment terms from
2the electric utility to the owner or operator of the community
3renewable generating project, and the electric utility may
4charge a net crediting fee to the owner or operator of a
5community renewable generating project that may not exceed 2%
6of the bill credit value. Notwithstanding anything to the
7contrary, an electric utility serving 200,000 customers or
8fewer as of January 1, 2021 shall not be obligated to enter
9into a net crediting agreement with the owner or operator of a
10community renewable generating project.
11    (5) For the purposes of facilitating net metering, the
12owner or operator of the eligible renewable electrical
13generating facility or community renewable generation project
14shall be responsible for determining the amount of the credit
15that each customer or subscriber participating in a project
16under this subsection (l) is to receive in the following
17manner:
18        (A) The owner or operator shall, on a monthly basis,
19    provide to the electric utility the kilowatthours of
20    generation attributable to each of the utility's retail
21    customers and subscribers participating in projects under
22    this subsection (l) in accordance with the customer's or
23    subscriber's share of the eligible renewable electric
24    generating facility's or community renewable generation
25    project's output of power and energy for such month. The
26    owner or operator shall electronically transmit such

 

 

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1    calculations and associated documentation to the electric
2    utility, in a format or method set forth in the applicable
3    tariff, on a monthly basis so that the electric utility
4    can reflect the monetary credits on customers' and
5    subscribers' electric utility bills. The electric utility
6    shall be permitted to revise its tariffs to implement the
7    provisions of this amendatory Act of the 102nd General
8    Assembly. The owner or operator shall separately provide
9    the electric utility with the documentation detailing the
10    calculations supporting the credit in the manner set forth
11    in the applicable tariff.
12        (B) For those participating customers and subscribers
13    who receive their energy supply from an alternative retail
14    electric supplier, the electric utility shall remit to the
15    applicable alternative retail electric supplier the
16    information provided under subparagraph (A) of this
17    paragraph (3) for such customers and subscribers in a
18    manner set forth in such alternative retail electric
19    supplier's net metering program, or as otherwise agreed
20    between the utility and the alternative retail electric
21    supplier. The alternative retail electric supplier shall
22    then submit to the utility the amount of the charges for
23    power and energy to be applied to such customers and
24    subscribers, including the amount of the credit associated
25    with net metering.
26        (C) A participating customer or subscriber may provide

 

 

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1    authorization as required by applicable law that directs
2    the electric utility to submit information to the owner or
3    operator of the eligible renewable electrical generating
4    facility or community renewable generation project to
5    which the customer or subscriber has an ownership or
6    leasehold interest or a subscription. Such information
7    shall be limited to the components of the net metering
8    credit calculated under this subsection (l), including the
9    bill credit rate, total kilowatthours, and total monetary
10    credit value applied to the customer's or subscriber's
11    bill for the monthly billing period.
12    (l-5) Within 90 days after the effective date of this
13amendatory Act of the 102nd General Assembly, each electric
14utility subject to this Section shall file a tariff or tariffs
15to implement the provisions of subsection (l) of this Section,
16which shall, consistent with the provisions of subsection (l),
17describe the terms and conditions under which owners or
18operators of qualifying properties, units, or apartments may
19participate in net metering. The Commission shall approve, or
20approve with modification, the tariff within 120 days after
21the effective date of this amendatory Act of the 102nd General
22Assembly.
23    (m) Nothing in this Section shall affect the right of an
24electricity provider to continue to provide, or the right of a
25retail customer to continue to receive service pursuant to a
26contract for electric service between the electricity provider

 

 

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1and the retail customer in accordance with the prices, terms,
2and conditions provided for in that contract. Either the
3electricity provider or the customer may require compliance
4with the prices, terms, and conditions of the contract.
5    (n) On and after January 1, 2025, the net metering
6services described in subsections (d), (d-5), and (e) of this
7Section shall no longer be offered, except as to those
8eligible renewable electrical generating facilities for which
9retail customers are receiving net metering service under
10these subsections at the time the net metering services under
11those subsections are no longer offered; those systems shall
12continue to receive net metering services described in
13subsections (d), (d-5), and (e) of this Section for the
14lifetime of the system, regardless of if those retail
15customers change electricity providers or whether the retail
16customer benefiting from the system changes. The electric
17utility serving more than 200,000 customers as of January 1,
182021 is responsible for ensuring the billing credits continue
19without lapse for the lifetime of systems, as required in
20subsection (o). Those retail customers that begin taking net
21metering service after the date that net metering services are
22no longer offered under such subsections shall be subject to
23the provisions set forth in the following paragraphs (1)
24through (3) of this subsection (n):
25        (1) An electricity provider shall charge or credit for
26    the net electricity supplied to eligible customers or

 

 

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1    provided by eligible customers whose electric supply
2    service is not provided based on hourly pricing in the
3    following manner:
4            (A) If the amount of electricity used by the
5        customer during the monthly billing period exceeds the
6        amount of electricity produced by the customer, then
7        the electricity provider shall charge the customer for
8        the net kilowatt-hour based electricity charges
9        reflected in the customer's electric service rate
10        supplied to and used by the customer as provided in
11        paragraph (3) of this subsection (n).
12            (B) If the amount of electricity produced by a
13        customer during the monthly billing period exceeds the
14        amount of electricity used by the customer during that
15        billing period, then the electricity provider
16        supplying that customer shall apply a 1:1
17        kilowatt-hour energy or monetary credit kilowatt-hour
18        supply charges to the customer's subsequent bill. The
19        customer shall choose between 1:1 kilowatt-hour or
20        monetary credit at the time of application. For the
21        purposes of this subsection, "kilowatt-hour supply
22        charges" means the kilowatt-hour equivalent values for
23        energy, capacity, transmission, and the purchased
24        energy adjustment, if applicable. Notwithstanding
25        anything to the contrary, customers on payment plans
26        or participating in budget billing programs shall have

 

 

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1        credits applied on a monthly basis. The electricity
2        provider shall continue to carry over any excess
3        kilowatt-hour or monetary energy credits earned and
4        apply those credits to subsequent billing periods. For
5        customers with transmission or capacity charges not
6        charged on a kilowatt-hour basis, the electricity
7        provider shall prepare a reasonable approximation of
8        the kilowatt-hour equivalent value and provide that
9        value as a monetary credit. The electricity provider
10        shall submit these approximation methodologies to the
11        Commission for review, modification, and approval.
12            (C) (Blank).
13        (2) An electricity provider shall charge or credit for
14    the net electricity supplied to eligible customers or
15    provided by eligible customers whose electric supply
16    service is provided based on hourly pricing in the
17    following manner:
18            (A) If the amount of electricity used by the
19        customer during any hourly period exceeds the amount
20        of electricity produced by the customer, then the
21        electricity provider shall charge the customer for the
22        net electricity supplied to and used by the customer
23        as provided in paragraph (3) of this subsection (n).
24            (B) If the amount of electricity produced by a
25        customer during any hourly period exceeds the amount
26        of electricity used by the customer during that hourly

 

 

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1        period, the energy provider shall calculate an energy
2        credit for the net kilowatt-hours produced in such
3        period, and shall apply that credit as a monetary
4        credit to the customer's subsequent bill. The value of
5        the energy credit shall be calculated using the same
6        price per kilowatt-hour as the electric service
7        provider would charge for kilowatt-hour energy sales
8        during that same hourly period and shall also include
9        values for capacity and transmission. For customers
10        with transmission or capacity charges not charged on a
11        kilowatt-hour basis, the electricity provider shall
12        prepare a reasonable approximation of the
13        kilowatt-hour equivalent value and provide that value
14        as a monetary credit. The electricity provider shall
15        submit these approximation methodologies to the
16        Commission for review, modification, and approval.
17        Notwithstanding anything to the contrary, customers on
18        payment plans or participating in budget billing
19        programs shall have credits applied on a monthly
20        basis.
21        (3) An electricity provider shall provide electric
22    service to eligible customers who utilize net metering at
23    non-discriminatory rates that are identical, with respect
24    to rate structure, retail rate components, and any monthly
25    charges, to the rates that the customer would be charged
26    if not a net metering customer. An electricity provider

 

 

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1    shall charge the customer for the net electricity supplied
2    to and used by the customer according to the terms of the
3    contract or tariff to which the same customer would be
4    assigned or be eligible for if the customer was not a net
5    metering customer. An electricity provider shall not
6    charge net metering customers any fee or charge or require
7    additional equipment, insurance, or any other requirements
8    not specifically authorized by interconnection standards
9    authorized by the Commission, unless the fee, charge, or
10    other requirement would apply to other similarly situated
11    customers who are not net metering customers. The customer
12    remains responsible for the gross amount of delivery
13    services charges, supply-related charges that are kilowatt
14    based, and all taxes and fees related to such charges. The
15    customer also remains responsible for all taxes and fees
16    that would otherwise be applicable to the net amount of
17    electricity used by the customer. Paragraphs (1) and (2)
18    of this subsection (n) shall not be construed to prevent
19    an arms-length agreement between an electricity provider
20    and an eligible customer that sets forth different prices,
21    terms, and conditions for the provision of net metering
22    service, including, but not limited to, the provision of
23    the appropriate metering equipment for non-residential
24    customers. Nothing in this paragraph (3) shall be
25    interpreted to mandate that a utility that is only
26    required to provide delivery services to a given customer

 

 

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1    must also sell electricity to such customer.
2        (4) A local electric utility shall send notice,
3    separate and apart from any other communication, to a
4    customer listed as net metering in the electric utility's
5    billing system if the customer's electricity provider
6    changes. The notice shall remind customers to ensure that
7    the customer's eligible system is registered with their
8    current electricity provider and receiving credits for net
9    metering.
10    (o) Within 90 days after the effective date of this
11amendatory Act of the 102nd General Assembly, each electric
12utility subject to this Section shall file a tariff, which
13shall, consistent with the provisions of this Section, propose
14the terms and conditions under which a customer may
15participate in net metering. The tariff for electric utilities
16serving more than 200,000 customers as of January 1, 2021
17shall also provide a streamlined and transparent bill
18crediting system for net metering to be managed by the
19electric utilities. The terms and conditions shall include,
20but are not limited to, that an electric utility shall manage
21and maintain billing of net metering credits and charges
22regardless of if the eligible customer takes net metering
23under an electric utility or alternative retail electric
24supplier. The electric utility serving more than 200,000
25customers as of January 1, 2021 shall process and approve all
26net metering applications, even if an eligible customer is

 

 

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1served by an alternative retail electric supplier; and the
2utility shall forward application approval to the appropriate
3alternative retail electric supplier. Eligibility for net
4metering shall remain with the owner of the utility billing
5address such that, if an eligible renewable electrical
6generating facility changes ownership, the net metering
7eligibility transfers to the new owner. The electric utility
8serving more than 200,000 customers as of January 1, 2021
9shall manage net metering billing for eligible customers to
10ensure full crediting occurs on electricity bills, including,
11but not limited to, ensuring net metering crediting begins
12upon commercial operation date, net metering billing transfers
13immediately if an eligible customer switches from an electric
14utility to alternative retail electric supplier or vice versa,
15and net metering billing transfers between ownership of a
16valid billing address. All transfers referenced in the
17preceding sentence shall include transfer of all banked
18credits. All electric utilities serving 200,000 or fewer
19customers as of January 1, 2021 shall manage net metering
20billing for eligible customers receiving power and energy
21service from the electric utility to ensure full crediting
22occurs on electricity bills, ensuring net metering crediting
23begins upon commercial operation date, net metering billing
24transfers immediately if an eligible customer switches from an
25electric utility to alternative retail electric supplier or
26vice versa, and net metering billing transfers between

 

 

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1ownership of a valid billing address. Alternative retail
2electric suppliers providing power and energy service to
3eligible customers located within the service territory of an
4electric utility serving 200,000 or fewer customers as of
5January 1, 2021 shall manage net metering billing for eligible
6customers to ensure full crediting occurs on electricity
7bills, including, but not limited to, ensuring net metering
8crediting begins upon commercial operation date, net metering
9billing transfers immediately if an eligible customer switches
10from an electric utility to alternative retail electric
11supplier or vice versa, and net metering billing transfers
12between ownership of a valid billing address.
13(Source: P.A. 102-662, eff. 9-15-21.)