A BILL TO BE ENTITLED
AN ACT requiring electric utilities to make net energy metering available to nonutility customers who have their own electric generation facility.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 62 of the General Statutes is amended by adding a new Article to read:
"Article 5B."Net Energy Metering.
"§ 62-109.1.  Purpose.
It's in the public interest to encourage small scale and diversified sources of electrical generation to lessen North Carolina's dependence upon other sources that may, from time to time, be uncertain. It is also in the public interest to encourage and support diversified electrical production that uses indigenous and renewable fuels and has a beneficial impact on the environment and public health. Net energy metering for eligible customer-generators may be one way to provide a reasonable opportunity for customers to choose interconnected self-generation, encourage private investment in renewable energy resources, stimulate in-State commercialization of innovative and beneficial new technology, enhance the future diversification of the State's energy resource mix, and reduce interconnection and administrative costs for all parties.
"§ 62-109.2.  Definitions.
The following definitions shall apply in this Article:
(1)	Commission. – The North Carolina Utilities Commission.
(2)	Customer-generator. – A nonutility owner of an electric generation facility.
(3)	Electric utility. – A public utility, as defined in G.S. 62-3(23), a municipally owned and operated utility, or an electric cooperative that delivers electricity to customers.
(4)	Net metering. – Using a single meter to measure the difference between the electricity supplied by an electric utility and the electricity generated by a customer-generator that is fed back to the electric utility over the applicable billing period.
(5)	Net metering facility. – A facility for the production of electricity that:
a.	Uses solar, wind, biomass, biogas, or hydroelectric energy to generate electricity.
b.	Has a generating capacity of not more than 20 kilowatts, if a residential facility.
c.	Has a generating capacity of not more than 100 kilowatts, if a commercial, industrial, or institutional facility.
d.	Has a generating capacity of not more than one megawatt, if a farm-based facility.
e.	Is located on the customer-generator's premises.
f.	Has the ability to be operated in parallel with an electric utility's existing transmission and distribution facilities.
g.	Is intended primarily to offset part or all of the customer-generator's requirements for electricity.
"§ 62-109.3.  Electric utility's responsibilities.
(a)	Every electric utility that offers residential and commercial service:
(1)	Shall offer to make net metering available to eligible customer-generators.
(2)	Shall allow net metering facilities to be interconnected using a single standard kilowatt-hour meter.
(3)	Shall offer to the customer-generator a tariff or contract, that is identical, in energy rates, rate structure, and monthly charges, to the contract or tariff that the customer would be assigned if the customer were not an eligible customer-generator, but shall not charge the customer-generator any additional standby, capacity, interconnection, or other fee or charge.
(4)	May, at its own expense and with the consent of the customer-generator, install additional metering equipment to separately monitor the flow of electricity in each direction provided that the net effect on billing is exactly the same as it would be if a single standard kilowatt-hour meter was installed.
(b)	An electric utility is not required to provide net metering to additional customer-generators in its service territory when the combined total peak generation capacity of all customer-generators reaches one percent (1%) of the aggregate customer peak demand in the service territory.
"§ 62-109.4.  Net energy measured.
Consistent with the other provisions of this Article, the net energy measurement shall be calculated as follows:
(1)	The electric utility shall measure the net electricity produced or consumed during the billing period, in accordance with normal metering practices of customers in the same rate class.
(2)	If the electricity supplied by the electric utility exceeds the electricity generated by the customer-generator and fed back to the electric utility during the billing period, the customer-generator shall be billed for the net electricity supplied by the electric utility, in accordance with normal metering and billing practices.
(3)	If electricity generated by the customer-generator equals or exceeds the electricity supplied by the electric utility, the customer-generator:
a.	Shall be billed for the appropriate customer charges for that month, if any, in accordance with the requirements of this Article.
b.	Shall be credited for the excess kilowatt-hours generated during the month, and the kilowatt-hour credit shall appear on the customer-generator's bill for the following month.
(4)	For the billing cycle ending in December of each year, any remaining unused kilowatt-hour credit accumulated during the previous year shall be granted to the electric utility for distribution to customers enrolled in the utility's low-income assistance programs, without any compensation to the customer-generator.
"§ 62-109.5.  Net metering facility installed.
(a)	Each net metering facility shall be designed and installed to meet all applicable safety and performance standards established by the National Electrical Code and local electrical codes, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories.
(b)	An electric utility may not require a customer-generator whose net metering facility meets the standards provided in subsection (a) of this section to:
(1)	Comply with additional safety or performance standards.
(2)	Perform or pay for additional tests.
(3)	Purchase liability insurance in excess of one hundred thousand dollars ($100,000) for residential facilities and three hundred thousand dollars ($300,000) for nonresidential facilities.
(4)	Sign any unfair or unreasonable indemnification agreement.
"§ 62-109.6.  Duties of Commission and governing body.
(a)	The Commission, in the case of a public utility, or the appropriate governing body, in the case of other electric utilities, after appropriate notice and opportunity for comment, shall develop a standard application for use by eligible customer-generators who want to net meter. The application shall contain:  (i) relevant contact information for the customer-generator; (ii) the name and license number for the electrical contractor who installed the net metering facility; and (iii) a statement that the facility meets applicable safety and performance standards as required by G.S. 62-109.5(a).
(b)	The Commission, in the case of a public utility, or the appropriate governing body, in the case of other electric utilities, after appropriate notice and opportunity for comment, shall consider interconnection rules for non-net metered facilities under 20 megawatts and regulatory structures that promote distributed generation, including rates.
"§ 62-109.7.  Application for net metering; inspection.
(a)	Upon receipt of an application for net metering, the utility shall have 10 business days to respond to the customer-generator in writing with questions, modifications, or notices. If the utility fails to respond as required by this section, and the customer-generator's application has been filled out completely as required by G.S. 62-109.6(a), the customer-generator may interconnect with the utility grid without obtaining approval from the utility.
(b)	If the utility wants to inspect the facility, the utility shall provide notice to the customer-generator within 10 business days of receipt of the application, and the inspection shall be completed within 20 business days of receipt of the application. If the utility wants to install additional meters as authorized in G.S. 62-109.3(4), the utility shall provide notice of its intention to the customer-generator within 10 business days of receipt of the application, and the meters shall be installed within 20 business days of receipt of the application."
SECTION 2.  The Commission shall have four months from the effective date of this act to adopt rules to carry out the purposes of this Article.
SECTION 3.  This act becomes effective on September 1, 2003.