State of Illinois
92nd General Assembly

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 1        AN ACT concerning public utilities.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Public Utilities Act is amended by adding
 5    Section 16-107.5 as follows:

 6        (220 ILCS 5/16-107.5 new)
 7        Sec. 16-107.5.  Net electricity metering.
 8        (a)  The Legislature finds and declares that a program to
 9    provide net energy metering, as defined in this Section,  for
10    eligible   customers  can  encourage  private  investment  in
11    renewable  energy  resources,  stimulate   economic   growth,
12    enhance  the  continued  diversification  of Illinois' energy
13    resource mix, and protect the Illinois environment.
14        (b)  As used in this Section,  (i)   "eligible  customer"
15    means  a  retail  customer  that owns and operates a solar or
16    wind electrical generating facility with a  capacity  of  not
17    more  than  40  kilowatts  that  is located on the customer's
18    premises and is intended primarily to offset part or  all  of
19    the  customer's  own  electrical  requirements  and (ii) "net
20    energy metering" means the measurement,  during  the  billing
21    period  applicable to an eligible customer, of the net amount
22    of electricity  delivered  by  an  electric  utility  to  the
23    customer's  premises  or  provided to the electric utility by
24    the customer.
25        (c)  An electric utility shall provide for, and bear  the
26    costs  of,  meters,  meter  fittings and associated wiring in
27    excess of standard metering, and any other equipment  on  the
28    utility side of the meter required by the utility in order to
29    effect net energy metering.
30        (d)  An   electric  utility  and  an  alternative  retail
31    electric supplier shall measure and charge or credit for  the
                            -2-          SDS/92Abill0004/SHhs
 1    net electricity supplied to eligible customers or provided by
 2    eligible customers in the following manner:
 3             (1)  If  the  amount  of  electricity  used  by  the
 4        customer  during the billing period exceeds the amount of
 5        electricity  produced  by  the  customer,  the   electric
 6        utility  or  alternative  retail  electric supplier shall
 7        charge the customer for the net electricity  supplied  to
 8        and  used by the customer at the same rates applicable to
 9        electricity  provided  by   the   electric   utility   or
10        alternative retail electric supplier to other residential
11        customers   and  small  commercial  retail  customers  of
12        similar end-use consumption characteristics.
13             (2)  If the amount  of  electricity  produced  by  a
14        customer  during the billing period exceeds the amount of
15        electricity used by  the  customer  during  that  billing
16        period,  the  electric  utility  or  alternative electric
17        supplier supplying that customer shall apply a credit  to
18        the  next  bill  for  service to the customer for the net
19        electricity supplied to the utility  at  the  same  rate,
20        including  delivery  charges,  applicable  to electricity
21        provided  to  other  residential  customers   and   small
22        commercial    retail   customers   of   similar   end-use
23        consumption characteristics. The number of kilowatt-hours
24        credited to the customer on the bill in any given billing
25        period shall not  exceed  the  amount  of  kilowatt-hours
26        delivered  to the customer by the utility in that billing
27        period. The balance of kilowatt-hours uncredited shall be
28        carried forward and applied to  kilowatt-hours  delivered
29        to the customer by the utility in future billing periods.
30             (3)  At  the  end of the year or annualized over the
31        period that service is supplied by means  of  net  energy
32        metering,  the  electric  utility  or  alternative retail
33        electric supplier supplying  a  customer  shall  promptly
34        issue payment at its avoided cost to the customer for the
                            -3-          SDS/92Abill0004/SHhs
 1        value   of   the  balance  of  any  remaining  uncredited
 2        kilowatt-hours provided by the customer during  the  year
 3        or annualized period.
 4        (e)  An  electric  utility  may  use  separate  meters to
 5    measure the gross amount  of  electricity  delivered  by  the
 6    utility  to  the customer and the electricity supplied to the
 7    utility by the customer and may  bill  customers  for  taxes,
 8    franchise   charges,   or  infrastructure  maintenance  fees,
 9    instrument  funding  charges,  and  decommissioning   charges
10    applicable  to  the  gross amount of electricity delivered to
11    the customer, if the electric utility  does  not  charge  the
12    customer  for  the installation or use of the separate meters
13    in excess of standard metering.
14        (f)  An electric utility may, instead of  using  separate
15    meters,  use  a  single  meter  to  measure the net amount of
16    electricity delivered  to  or  from  a  customer  during  the
17    billing period.
18        (g)  Within  3  months  after  the effective date of this
19    amendatory Act of the 92nd  General  Assembly,  the  Illinois
20    Commerce  Commission shall establish standards for net energy
21    metering and the interconnection of solar and  wind  electric
22    generating  equipment to the utility system if the Commission
23    determines that such standards are  necessary  for  safe  and
24    adequate  service  and further the public policy set forth in
25    this Section. The standards shall conform to the "Recommended
26    Practice for Utility Interface, of Photo-voltaic Systems" set
27    forth by the IEEE (Institute  of  Electrical  and  Electronic
28    Engineers).  If  a  utility desires equipment or standards in
29    excess of these standards, the utility shall bear  the  costs
30    of those additional standards.
31        (h)  Before  February  1,  2002,  the  Illinois  Commerce
32    Commission  shall  determine  how alternative retail electric
33    suppliers  will  be  required  to  credit  delivery   service
34    charges.
                            -4-          SDS/92Abill0004/SHhs
 1        (i)  All  electric  utilities  shall  begin  to offer net
 2    energy metering no later than April 1, 2002.
 3        (j)  All  alternative  retail  electric  suppliers  shall
 4    begin to offer net energy metering no  later  than  April  1,
 5    2002.
 6        (k)  An   electric  utility  and  an  alternative  retail
 7    electric supplier must offer net energy metering to  eligible
 8    customers until the load of its net energy metering customers
 9    equals  0.1%  of  the  total  peak  demand  supplied  by that
10    electric utility  or  alternative  retail  electric  supplier
11    during  the previous year. Electric utilities and alternative
12    retail electric suppliers are authorized to offer net  energy
13    metering beyond the 0.1% level if they so choose.

14        Section  99.  Effective  date. This Act takes effect upon
15    becoming law.

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