Bill Number: OK51RHB 1972                          Filed: 01-19-2007

             Author: Faught

        

                                     STATE OF OKLAHOMA

  1                     1st Session of the 51st Legislature (2007)
 
  2                        HOUSE BILL 1972      By:      Faught
 
  3                                   AS INTRODUCED
 
  4                  An Act relating to energy; creating the Oklahoma Net
 
  5                  Metering for Schools Act; providing definitions;
 
  6                  providing for calculation of electric energy
 
  7                  measurement; specifying process for crediting excess
 
  8                  kilowatt hours generated; requiring electric service
 
  9                  providers to develop standard contracts or tariff;
 
 10                  providing for the installation of certain meter;
 
 11                  authorizing the installation of additional meters for
 
 12                  certain purpose; prohibiting additional fees;
 
 13                  prohibiting a requirement for additional insurance;
 
 14                  establishing certain safety regulations; directing
 
 15                  the Corporation Commission to promulgate rules;
 
 16                  providing for codification; and providing an
 
 17                  effective date.
 
 18     BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
 
 19           SECTION 1.     NEW LAW     A new section of law to be codified
 
 20     in the Oklahoma Statutes as Section 192.1 of Title 17, unless there
 
 21     is created a duplication in numbering, reads as follows:
 
 22           This act shall be known and may be cited as the Oklahoma Net
 
 23     Metering for Schools Act.
 
 24           SECTION 2.     NEW LAW     A new section of law to be codified
 


                                         1

1 in the Oklahoma Statutes as Section 192.2 of Title 17, unless there 2 is created a duplication in numbering, reads as follows: 3 As used in the Oklahoma Net Metering for Schools Act: 4 1. "Eligible customer-generator" means a public school 5 district in the state as defined in Section 1-108 of Title 70 of the 6 Oklahoma Statutes which is a customer of an electric service 7 provider and which uses a renewable energy source; 8 2. Electric service provider means a public or private 9 utility company, including investor-owned utilities, electrical 10 cooperatives including cooperatives who have voted to exempt 11 themselves from Corporation Commission regulation pursuant to 12 Section 158.27 of Title 17 of the Oklahoma Statutes, and municipal 13 electric systems that provide electricity to residential, 14 commercial, agricultural, and industrial customers; 15 3. "Average retail utility energy rate" means the average of 16 the retail energy rates, exclusive of special rates, according to 17 the applicable rate schedule of the utility for sales to that class 18 of customer; 19 4. Renewable energy source means energy derived from wind 20 power or solar power; 21 5. "Net energy metering" means measuring the difference 22 between the electricity supplied to a customer through the 23 electricity grid and the electricity generated by an eligible 24 customer-generator and fed back to the electricity grid over a 25 twelve-month period. Net energy metering shall be accomplished 26 using a single meter or a set of meters capable of registering the 27 flow of electricity both into and out of the electricity grid; and 2

1 6. "Net metering system" means a facility for generation of 2 electricity that: 3 a. is of no more than a 25-kilowatt capacity for a school 4 district system, 5 b. operates in parallel with facilities of the electric 6 distribution system, 7 c. is intended primarily to offset part or all of the 8 electricity requirements of the customer, 9 d. is located on the premises owned or operated by the 10 customer, and 11 e. employs a renewable energy source as defined in this 12 section. 13 SECTION 3. NEW LAW A new section of law to be codified 14 in the Oklahoma Statutes as Section 192.3 of Title 17, unless there 15 is created a duplication in numbering, reads as follows: 16 Consistent with the other provisions of the Oklahoma Net 17 Metering for Schools Act, electric energy measurement for net 18 metering systems shall be calculated in the following manner: 19 1. The electric service provider which serves the customer 20 shall measure the net electricity produced or consumed during the 21 billing period for the customer, in accordance with normal metering 22 practices; 23 2. If the electricity supplied by the electric service 24 provider exceeds the electricity generated by the customer and fed 25 back to the electric distribution system during the billing period, 26 then the customer shall be billed for the net electricity supplied 27 by the electric service provider in accordance with normal metering 3

1 practices; and 2 3. If electricity generated by the customer exceeds the 3 electricity supplied by the electric service provider: 4 a. the customer shall be credited for the excess 5 kilowatt-hours generated during the billing period, with this 6 kilowatt-hour credit appearing on the bill for the following billing 7 period, and 8 b. at the beginning of each calendar year, any remaining 9 unused kilowatt-hour credit accumulated during the previous year 10 shall revert to the customer-generator in the form of monetary 11 compensation at the fair market rate of electricity for the rate 12 class of the customer. 13 SECTION 4. NEW LAW A new section of law to be codified 14 in the Oklahoma Statutes as Section 192.4 of Title 17, unless there 15 is created a duplication in numbering, reads as follows: 16 Every electric service provider: 17 1. Shall develop a standard contract or tariff providing for 18 net energy metering and shall make this contract available to 19 eligible customer-generators, upon request; 20 2. May make available to each of its eligible customer- 21 generators that have installed a net metering system the meter or 22 set of meters that is needed to determine the net flow of 23 electricity both into and out of the electricity grid; 24 3. May, at its own expense, install additional metering that 25 shall be used only to provide the information necessary to 26 accurately bill or credit the customer-generator or to collect 27 system performance information for research purposes; 4

1 4. May charge the customer a minimum monthly fee that is the 2 same as other customers of the electric service provider in the same 3 rate class, but shall not charge the customer any additional or new 4 recurring fee or charge related to the installation of a renewable 5 energy system; and 6 5. Shall not require the customer to purchase additional 7 insurance beyond what they already maintain or to modify that 8 insurance in any way. 9 SECTION 5. NEW LAW A new section of law to be codified 10 in the Oklahoma Statutes as Section 192.5 of Title 17, unless there 11 is created a duplication in numbering, reads as follows: 12 Safety regulations for net metering systems under the Oklahoma 13 Net Metering for Schools Act are as follows: 14 1. A net metering system shall conform to applicable 15 electrical safety requirements established by the National 16 Electrical Code; 17 2. A net metering system shall incorporate an accessible 18 disconnect switch that will enable the electric service provider to 19 disconnect and lock out the generator of the customer in the event 20 that the provider determines that disconnection is necessary for the 21 safety of its personnel during repair operations. If the generating 22 system of the customer includes an inverter or protective relay 23 system conforming to IEEE 929 and/or UL 1741 then this requirement 24 shall be waived; and 25 3. An electric company may, at its own expense, and upon 26 reasonable written notice to the customer, perform testing and 27 inspection of a net metering system in order to confirm that the 5

1 system conforms to applicable electrical safety and interconnection 2 requirements. 3 SECTION 6. NEW LAW A new section of law to be codified 4 in the Oklahoma Statutes as Section 192.6 of Title 17, unless there 5 is created a duplication in numbering, reads as follows: 6 No later than one hundred eighty (180) days after the 7 effective date of this act, the Corporation Commission shall 8 promulgate all necessary rules to ensure the proper implementation 9 and enforcement of the provisions of the Oklahoma Net Metering for 10 Schools Act. 11 SECTION 7. This act shall become effective November 1, 2007. 12 51-1-6419 KB 01/09/07 13 Page 1 14 Req. No. 6419 6