70th OREGON LEGISLATIVE ASSEMBLY--1999 Regular Session
Enrolled
House Bill 3219
Sponsored by COMMITTEE ON COMMERCE (at the request of the
Renewable Northwest Project and the Solar Energy Industry
Association of Oregon)
CHAPTER ................
AN ACT
Relating to net metering; creating new provisions; amending ORS
757.262; and declaring an emergency.
Whereas the Legislative Assembly finds that a net energy
metering program for customers with small-scale, renewable-fuel
electric generating facilities encourages private investment in
renewable energy resources, stimulates in-state economic growth,
enhances the continued diversification of this state's energy
resources and reduces utility interconnection and administrative
costs; now, therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 1999 Act is added to and made
a part of ORS chapter 757. + }
SECTION 2. { + (1) As used in this section:
(a) 'Customer-generator' means a user of a net metering
facility.
(b) 'Electric utility' means a public utility, a people's
utility district operating under ORS chapter 261, a municipal
utility operating under ORS chapter 225 or an electric
cooperative organized under ORS chapter 62.
(c) 'Net metering' means measuring the difference between the
electricity supplied by an electric utility and the electricity
generated by a customer-generator and fed back to the electric
utility over the applicable billing period.
(d) 'Net metering facility' means a facility for the production
of electrical energy that:
(A) Uses solar, wind, fuel cell or hydroelectric power to
generate electricity;
(B) Has a generating capacity of not more than 25 kilowatts;
(C) Is located on the customer-generator's premises;
(D) Can operate in parallel with an electric utility's existing
transmission and distribution facilities; and
(E) Is intended primarily to offset part or all of the
customer-generator's requirements for electricity.
(2) An electric utility that offers residential and commercial
electric service:
(a) Shall allow net metering facilities to be interconnected
using a standard meter that is capable of registering the flow of
electricity in two directions.
(b) May at its own expense install one or more additional
meters to monitor the flow of electricity in each direction.
Enrolled House Bill 3219 (HB 3219-B) Page 1
(c) May not charge a customer-generator a fee or charge that
would increase the customer-generator's minimum monthly charge to
an amount greater than that of other customers in the same rate
class as the customer-generator. However, the Public Utility
Commission, for a public utility, or the governing body, for a
municipal electric utility, electric cooperative or people's
utility district, may authorize an electric utility to assess a
greater fee or charge, of any type, if the electric utility's
direct costs of interconnection and administration of the net
metering outweigh the distribution system, environmental and
public policy benefits of allocating such costs among the
electric utility's entire customer base. The commission may
authorize a public utility to assess a greater fee or charge
under this paragraph only following notice and opportunity for
public comment. The governing body of a municipal electric
utility, electric cooperative or people's utility district may
assess a greater fee or charge under this paragraph only
following notice and opportunity for comment from the customers
of the utility, cooperative or district.
(3)(a) For a customer-generator, an electric utility shall
measure the net electricity produced or consumed during the
billing period in accordance with normal metering practices.
(b) If an electric utility supplies a customer-generator more
electricity than the customer-generator feeds back to the
electric utility during a billing period, the electric utility
shall charge the customer-generator for the net electricity that
the electric utility supplied.
(c) Except as provided in paragraph (d) of this subsection, if
a customer-generator feeds back to an electric utility more
electricity than the electric utility supplies the
customer-generator during a billing period, the electric utility
may charge the minimum monthly charge described in subsection (2)
of this section but must credit the customer-generator for the
excess kilowatt-hours generated during the billing period. An
electric utility may value the excess kilowatt-hours at the
avoided cost of the utility, as determined by the commission or
the appropriate governing body. An electric utility that values
the excess kilowatt-hours at the avoided cost shall bear the cost
of measuring the excess kilowatt-hours, issuing payments and
billing for the excess hours. The electric utility also shall
bear the cost of providing and installing additional metering to
measure the reverse flow of electricity.
(d) For the billing cycle ending in March of each year, or on
such other date as agreed to by the electric utility and the
customer-generator, 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
electric utility's low-income assistance programs, credited to
the customer-generator or dedicated for other use as determined
by the commission, for a public utility, or the governing body,
for a municipal electric utility, electric cooperative or
people's utility district, following notice and opportunity for
public comment.
(4)(a) A net metering facility shall meet all applicable safety
and performance standards established in the state building code.
The standards shall be consistent with the applicable standards
established by the National Electrical Code, the Institute of
Electrical and Electronics Engineers and Underwriters
Laboratories or other similarly accredited laboratory.
Enrolled House Bill 3219 (HB 3219-B) Page 2
(b) Following notice and opportunity for public comment, the
commission, for a public utility, or the governing body, for a
municipal electric utility, electric cooperative or people's
utility district, may adopt additional control and testing
requirements for customer-generators to protect public safety or
system reliability.
(c) An electric utility may not require a customer-generator
whose net metering facility meets the standards in paragraphs (a)
and (b) of this subsection to comply with additional safety or
performance standards, perform or pay for additional tests or
purchase additional liability insurance. However, an electric
utility shall not be liable directly or indirectly for permitting
or continuing to allow an attachment of a net metering facility,
or for the acts or omissions of the customer-generator that cause
loss or injury, including death, to any third party.
(5) Nothing in this section is intended to prevent an electric
utility from offering, or a customer-generator from accepting,
products or services related to the customer-generator's net
metering facility that are different from the net metering
services described in this section.
(6) The commission, for a public utility, or the governing
body, for a municipal electric utility, electric cooperative or
people's utility district, may not limit the cumulative
generating capacity of solar, wind, fuel cell and
microhydroelectric net metering systems to less than one-half of
one percent of a utility's, cooperative's or district's historic
single-hour peak load. After a cumulative limit of one-half of
one percent has been reached, the obligation of a public utility,
municipal electric utility, electric cooperative or people's
utility district to offer net metering to a new
customer-generator may be limited by the commission or governing
body in order to balance the interests of retail customers. When
limiting net metering obligations under this subsection, the
commission or the governing body shall consider the environmental
and other public policy benefits of net metering systems. The
commission may limit net metering obligations under this
subsection only following notice and opportunity for public
comment. The governing body of a municipal electric utility,
electric cooperative or people's utility district may limit net
metering obligations under this subsection only following notice
and opportunity for comment from the customers of the utility,
cooperative or district.
(7) The commission or the governing body may adopt rules or
ordinances to ensure that the obligations and costs associated
with net metering apply to all power suppliers within the service
territory of a public utility, municipal electric utility,
electric cooperative or people's utility district.
(8) Notwithstanding subsections (2) to (7) of this section, an
electric utility serving fewer than 25,000 customers in Oregon
that has its headquarters located in another state and offers net
metering services or a substantial equivalent offset against
retail sales in that state shall be deemed to be in compliance
with this section if the electric utility offers net metering
services to its customers in Oregon in accordance with tariffs,
schedules and other regulations promulgated by the appropriate
authority in the state where the electric utility's headquarters
are located. + }
SECTION 3. ORS 757.262 is amended to read:
757.262. (1) The Public Utility Commission, by rule, may adopt
policies designed to encourage the acquisition of cost-effective
Enrolled House Bill 3219 (HB 3219-B) Page 3
conservation resources { + and small-scale, renewable-fuel
electric generating resources + }.
(2) In furtherance of the policies adopted pursuant to
subsection (1) of this section, and in such manner as the
commission considers proper, the commission may authorize
periodic rate adjustments for the purpose of providing some
protection to a utility from reduction of short-term earnings
{ - which - } { + that + } may result from implementation of
such policies. The adjustments may include, but are not limited
to, adjustments based in whole or in part upon the extent to
which actual sales deviate from a base level of sales the
commission considers appropriate.
SECTION 4. { + This 1999 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 1999 Act takes effect September 1,
1999. + }
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Passed by House May 6, 1999
Repassed by House July 14, 1999
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate July 13, 1999
...........................................................
President of Senate
Enrolled House Bill 3219 (HB 3219-B) Page 4
Received by Governor:
......M.,............., 1999
Approved:
......M.,............., 1999
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 1999
...........................................................
Secretary of State
Enrolled House Bill 3219 (HB 3219-B) Page 5