Net Metering law

Net Energy Metering law
Wind Energy law
Renewable Energy law
Maryland Net Energy Metering law
Maryland Net Metering law
MD Net Metering law

July, 2012 Here in Maryland, USA, the state legislature has told us that if an individual produces electric (with up to 30KW of a grid-tied wind powered generator), and sends that electric into the electric utility grid, that Maryland state law forces the electric utility company to pay that person 100% FULL GENERATION RATE (excluding transmission and distribution) for that electric. * You should verify these laws yourself before acting upon this. * Utility: BGE, report of "Starting on June 1,2012"     rates link   Net Metering If we use a conservative $0.0700/kWh as an example On a persistently windy hill, here is a potential : (24 hours / day) X (365 days / year) = 8,760 hours / year (8,760 hours/year) X (30KW / hour) X ($0.0700 / kWh) = $18,396 PER YEAR Also, you might be shocked at the price that high-carbon-footprint manufactuing facilities are paying for RECs (Renewable Energy Credits). Seriously, you might thank us for telling you about it. We manufacture and sell Wind Powered Generators.

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WHEN YOU READ, NOTICE THIS: (5)   ["Generation credit" means a credit associated with the generation of electricity produced in excess of the electricity consumed by an eligible customer- generator in one billing period.   (6)]  "Micro combined heat and power" means the simultaneous or sequential production of useful thermal energy and electrical or mechanical power not exceeding 30 kilowatts.   [(7)] (6)   "Net energy metering" means measurement of the difference between the electricity that is supplied by an electric company and the electricity that is generated by an eligible customer - generator and fed back to the electric grid over the eligible customer -generator's billing period.   (7)  "NET EXCESS GENERATION" MEANS THE AMOUNT OF THE ELECTRICITY GENERATED BY AN ELIGIBLE CUSTOMER-GENERATOR THAT IS IN EXCESS    OF    THE    ELECTRICITY   CONSUMED    BY    THE   ELIGIBLE CUSTOMER-GENERATOR AND THAT RESULTS IN A NEGATIVE KILOWATT-HOUR READING AT THE END OF THE ELIGIBLE CUSTOMER-GENERATOR'S BILLING CYCLE.

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AND NOTICE THIS: (iii)  1.   The [amount of the generation credit shall be calculated at the prevailing market price of energy applicable to the electric company in the PJM Interconnection energy market, as that market may change from time to time] DOLLAR VALUE OF NET EXCESS GENERATION SHALL BE EQUAL TO THE SUM OF THE ENERGY CHARGE AND THE DISTRIBUTION CHARGE PORTION OF THE RETAIL GENERATION OR COMMODITY PORTION OF THE RATE THAT THE ELIGIBLE CUSTOMER-GENERATOR WOULD HAVE BEEN CHARGED BY THE ELECTRIC  COMPANY AVERAGED  OVER  THE CALENDAR  YEAR PREVIOUS 12 -MONTH PERIOD ENDING WITH THE BILLING CYCLE THAT IS COMPLETE IMMEDIATELY PRIOR TO THE END OF APRIL MULTIPLIED BY THE NUMBER OF KILOWATT-HOURS OF NET EXCESS GENERATION.   2.   FOR CUSTOMERS SERVED BY AN ELECTRICITY SUPPLIER, THE DOLLAR VALUE OF THE NET EXCESS GENERATION SHALL BE EQUAL TO THE GENERATION OR COMMODITY RATE THAT THE CUSTOMER WOULD HAVE BEEN CHARGED BY THE ELECTRICITY SUPPLIER MULTIPLIED BY THE NUMBER OF KILOWATT-HOURS OF NET EXCESS GENERATION.

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THE FOLLOWING IS QUOTED FROM : http://mlis.state.md.us/2011rs/chapters_noln/Ch_405_sb0380T.pdf

LINK TO WAS FOUND AT : http://mlis.state.md.us/2011rs/billfile/sb0380.htm

SEE ALSO: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=MD03R

This is a DIRECT COPY QUOTE as of July 17, 2012 .

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MARTIN O'MALLEY, Governor                Ch. 405

 

 

 

Chapter 405

 

(Senate Bill 380)

 

AN ACT concerning

 

Electricity - Net Energy Metering

 

FOR the purpose of altering the period during which an eligible customer - generator

may accrue certain net excess generation; requiring a certain electric company

to carry forward a negative kilowatt- hour reading net excess generation until a

certain consumption eliminates the net excess generation or a certain accrual

period expires; altering how the dollar value of a certain net excess generation

is calculated; repealing a requirement that certain generation credit appear on

the eligible customer - generator's bill in a dollar amount; requiring an electric

company to reimburse certain eligible customer - generators for the dollar value

of certain accrued net excess generation on or before a certain date each year;

providing that a certain eligible customer- generator may choose to be paid for

the dollar value of certain net excess generation on a monthly basis under

certain circumstances; repealing a provision authorizing the Public Service

Commission to require a certain eligible customer - generator to install a certain

dual meter under certain circumstances; repealing a provision that requires the

Commission to develop a certain credit formula; altering the date by which the

Commission is required to report each year on the status of the net metering

program; repealing a certain definition; defining a certain term; and generally

relating to net energy metering and payment for accrued net excess generation.

 

BY repealing and reenacting, with amendments,

Article - Public Utilities

Section 7 - 306

Annotated Code of Maryland

(2010 Replacement Volume)

 

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF

MARYLAND, That the Laws of Maryland read as follows:

 

Article - Public Utilities

 

7 - 306.

 

(a)   (1)   In this section the following words have the meanings indicated.

 

(2)   "Biomass" means "qualified biomass" as defined in § 7-701 of this

title.

 

 

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Ch. 405                2011 LAWS OF MARYLAND

 

 

(3)   "Eligible customer-generator" means a customer that owns and

operates, leases and operates, or contracts with a third party that owns and operates a

biomass, micro combined heat and power, solar, fuel cell, or wind electric generating

facility that:

 

(i)   is located on the customer's premises or contiguous property;

 

(ii)  is interconnected and operated in parallel with an electric

company's transmission an d distribution facilities; and

 

(iii)  is intended primarily to offset all or part of the customer's

own electricity requirements.

 

(4)   "Fuel cell" means an electric generating facility that:

 

(i)   includes integrated power plant systems containing a stack,

tubular array, or other functionally similar configuration used to electrochemically

convert fuel to electric energy; and

 

(ii)  may include:

 

1.   an inverter and fuel processing system; and

 

2.   other plant equipment to support the plant's

operation or its energy conversion, including heat recovery equipment.

 

(5)   ["Generation credit" means a credit associated with the generation

of electricity produced in excess of the electricity consumed by an eligible

customer- generator in one billing period.

 

(6)]  "Micro combined heat and power" means the simultaneous or

sequential production of useful thermal energy and electrical or mechanical power not

exceeding 30 kilowatts.

 

[(7)] (6)   "Net energy metering" means measurement of the difference

between the electricity that is supplied by an electric company and the electricity that

is generated by an eligible customer - generator and fed back to the electric grid over

the eligible customer -generator's billing period.

 

(7)  "NET EXCESS GENERATION" MEANS THE AMOUNT OF THE

ELECTRICITY GENERATED BY AN ELIGIBLE CUSTOMER-GENERATOR THAT IS IN

EXCESS    OF    THE    ELECTRICITY   CONSUMED    BY    THE   ELIGIBLE

CUSTOMER-GENERATOR AND THAT RESULTS IN A NEGATIVE KILOWATT-HOUR

READING AT THE END OF THE ELIGIBLE CUSTOMER-GENERATOR'S BILLING

CYCLE.

 

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MARTIN O'MALLEY, Governor               Ch. 405

 

 

 

(b)   The General Assembly finds and declares that a program to provide net

energy metering for eligible customer - generators is a means to encourage private

investment in renewable energy resources, stimulate in - State economic growth,

enhance continued diversification of the State's energy resource mix, and reduce costs

of interconnection and administration.

 

(c)   An electric company serving an eligible customer-generator shall ensure

that the meter installed for net energy metering is capable of measuring the flow of

electricity in two directions.

 

(d)  The Commission shall require electric utilities to develop a standard

contract or tariff for net energy metering and make it available to eligible

customer- generators on a first - come, first - served basis until the rated generating

capacity owned and operated by eligible customer - generators in the State reaches

1,500 megawatts.

 

(e)   (1)   [Except as provided in subsection (g) of this section, a] A net

energy metering contract or tariff shall be 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.

 

(2)   (i)   A net energy metering contract or tariff may not include

charges that would raise the eligible customer -generator's minimum monthly charge

above that of customers of the rate class to which the eligible customer - generator

would otherwise be assigned.

 

(ii)  Charges prohibited by this paragraph include new or

additional demand charges, standby charges, customer charges, and minimum

monthly charges.

 

(f)   (1)   The electric company shall calculate net energy metering in

accordance with this subsection.

 

(2)   Net energy produced or consumed on a regular basis shall be

measured in accordance with standard metering practices.

 

(3)   If electricity supplied by the grid exceeds electricity generated by

the eligible customer - generator during a month, the eligible customer - generator shall

be billed for the net energy supplied in accordance with subsection (e) of this section.

 

(4)   If electricity generated by the eligible customer-generator exceeds

the electricity supplied by the grid, the eligible customer - generator shall be billed only

customer charges for that month in accordance with subsection (e) of this section.

 

 

 

 

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Ch. 405                2011 LAWS OF MARYLAND

 

 

(5)   (i)   An eligible customer-generator under paragraph (4) of this

subsection may accrue [generation credit] NET EXCESS GENERATION FOR A

PERIOD:

 

1.   NOT TO EXCEED 1 CALENDAR YEAR 12 MONTHS;

AND

 

2.   THAT ENDS WITH THE BILLING CYCLE THAT IS

COMPLETE IMMEDIATELY PRIOR TO THE END OF APRIL OF EACH YEAR.

 

(ii)  The electric company shall carry forward [accrued

generation credit] A NEGATIVE KILOWATT-HOUR READING NET EXCESS

GENERATION until:

 

1.   the eligible customer-generator's consumption of

electricity from the grid eliminates the [credit] NEGATIVE KILOWATT-HOUR

READING NET EXCESS GENERATION; or

 

2.   the [eligible customer-generator has been paid by the

electric company for any remaining credit in accordance with paragraph (6) of this

subsection] 1 -YEAR ACCRUAL PERIOD UNDER SUBPARAGRAPH (1) (I) OF THIS

PARAGRAPH EXPIRES.

 

(iii)  1.   The [amount of the generation credit shall be

calculated at the prevailing market price of energy applicable to the electric company

in the PJM Interconnection energy market, as that market may change from time to

time] DOLLAR VALUE OF NET EXCESS GENERATION SHALL BE EQUAL TO THE

SUM OF THE ENERGY CHARGE AND THE DISTRIBUTION CHARGE PORTION OF

THE RETAIL GENERATION OR COMMODITY PORTION OF THE RATE THAT THE

ELIGIBLE CUSTOMER-GENERATOR WOULD HAVE BEEN CHARGED BY THE

ELECTRIC  COMPANY AVERAGED  OVER  THE CALENDAR  YEAR PREVIOUS

12 -MONTH PERIOD ENDING WITH THE BILLING CYCLE THAT IS COMPLETE

IMMEDIATELY PRIOR TO THE END OF APRIL MULTIPLIED BY THE NUMBER OF

KILOWATT-HOURS OF NET EXCESS GENERATION.

 

2.   FOR CUSTOMERS SERVED BY AN ELECTRICITY

SUPPLIER, THE DOLLAR VALUE OF THE NET EXCESS GENERATION SHALL BE

EQUAL TO THE GENERATION OR COMMODITY RATE THAT THE CUSTOMER

WOULD HAVE BEEN CHARGED BY THE ELECTRICITY SUPPLIER MULTIPLIED BY

THE NUMBER OF KILOWATT-HOURS OF NET EXCESS GENERATION.

 

[(iv) The generation credit shall appear on the eligible

customer-generator's bill in a dollar amount.]

 

 

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MARTIN O'MALLEY, Governor               Ch. 405

 

 

(6)   (i)   [By written request, the eligible customer-generator may

receive payment from the electric company for any accrued generation credit that

remains at the end of a 12 - month period.

 

(ii)  On written request of the eligible customer-generator under

subparagraph (i) of this paragraph, within 15 days after the end of a 12 - month

period,] ON OR BEFORE JANUARY 15 30 DAYS AFTER THE BILLING CYCLE THAT

IS COMPLETE IMMEDIATELY PRIOR TO THE END OF APRIL OF EACH YEAR, the

electric company shall pay [the] EACH eligible customer - generator for THE DOLLAR

VALUE OF any accrued [generation credit] NET EXCESS GENERATION remaining at

the end of the [12 - month period] PREVIOUS CALENDAR YEAR 12 -MONTH PERIOD

ENDING WITH THE BILLING CYCLE THAT IS COMPLETE IMMEDIATELY PRIOR TO

THE END OF APRIL.

 

[(iii)] (II)  Within 15 days after the date the eligible

customer- generator closes the eligible customer -generator's account, the electric

company shall pay the eligible customer - generator for THE DOLLAR VALUE OF any

accrued [generation credit] NET EXCESS GENERATION remaining at the time the

eligible customer - generator closes the account.

 

(7)  (I)  NOTWITHSTANDING PARAGRAPHS (5) AND (6) OF THIS

SUBSECTION, AN ELIGIBLE CUSTOMER-GENERATOR SERVED BY AN ELECTRIC

COOPERATIVE THAT SERVES A POPULATION OF LESS THAN 250,000 IN ITS

DISTRIBUTION TERRITORY MAY CHOOSE TO BE PAID FOR THE DOLLAR VALUE

OF NET EXCESS GENERATION REMAINING AT THE END OF EACH MONTH INSTEAD

OF AT THE END OF THE ACCRUAL PERIOD SPECIFIED UNDER PARAGRAPH (5)(I)

OF THIS SUBSECTION.

 

(II)  IF AN ELIGIBLE-CUSTOMER GENERATOR CHOOSES TO

BE PAID FOR THE DOLLAR VALUE OF NET EXCESS GENERATION REMAINING AT

THE END OF EACH MONTH:

 

1.   THE CUSTOMER-GENERATOR MAY ACCRUE NET

EXCESS GENERATION ON A MONTHLY BASIS;

 

2.   THE DOLLAR VALUE OF THE NET EXCESS

GENERATION SHALL BE EQUAL TO THE GENERATION OR COMMODITY PORTION

OF THE RATE THAT THE ELIGIBLE CUSTOMER-GENERATOR WOULD HAVE BEEN

CHARGED BY THE ELECTRIC COMPANY FOR THE PREVIOUS MONTH; AND

 

3.   ON OR BEFORE 30 DAYS AFTER THE END OF EACH

MONTH,  THE   ELECTRIC   COOPERATIVE  SHALL   PAY   THE   ELIGIBLE

CUSTOMER-GENERATOR FOR THE DOLLAR VALUE OF NET EXCESS GENERATION

REMAINING AT THE END OF THE PREVIOUS MONTH.

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Ch. 405                2011 LAWS OF MARYLAND

 

 

 

(g)   [(1)  For an eligible customer-generator whose facility is sized to

produce energy in excess of the eligible customer -generator's annual energy

consumption, the Commission:

 

(i)   may require the eligible customer-generator to install a dual

meter that is capable of measuring the flow of electricity in two directions; and

 

(ii)  shall develop a credit formula that:

 

1.   excludes recovery of transmission and distribution

costs; and

 

2.   provides that the credit may be calculated using a

method other than a kilowatt - hour basis, including a method that allows a

dollar- for- dollar offset of electricity supplied by the grid compared to electricity

generated by the eligible customer - generator.

 

(2)   In determining whether to require an eligible customer-generator

to install a dual meter under paragraph (1)(i) of this subsection, the Commission shall

consider the generating capacity of the eligible customer - generator.

 

(h)]  (1)  The generating capacity of an electric generating system used by

an eligible customer -generator for net metering may not exceed 2 megawatts.

 

(2)   An  electric  generating   system   used  by   an  eligible

customer- generator for net metering shall meet all applicable safety and performance

standards established by the National Electrical Code, the Institute of Electrical and

Electronics Engineers, and Underwriters Laboratories.

 

(3)   The Commission may adopt by regulation additional control and

testing  requirements  for  eligible  customer - generators  that  the  Commission

determines are necessary to protect public safety and system reliability.

 

(4)   An   electric   company   may   not   require   an   eligible

customer- generator whose electric generating system meets the standards of

paragraphs (2) and (3) of this subsection to:

 

(i)   install additional controls;

 

(ii)  perform or pay for additional tests; or

 

(iii)  purchase additional liability insurance.

 

(5)   An   eligible   customer-generator   OR   THE   ELIGIBLE

CUSTOMER-GENERATOR'S ASSIGNEE shall own and have title to all renewable

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MARTIN O'MALLEY, Governor               Ch. 405

 

 

energy attributes or renewable energy credits associated with any electricity produced

by its electric generating system.

 

[(i)] (H)   On or before February SEPTEMBER 1 of each year, the

Commission shall report to the General Assembly, in accordance with § 2 - 1246 of the

State Government Article, on the status of the net metering program under this

section, including:

 

(1)   the amount of capacity of electric generating facilities owned and

operated by eligible customer- generators in the State by type of energy resource;

 

(2)   based on the need to encourage a diversification of the State's

energy resource mix to ensure reliability, whether the rated generating capacity limit

in subsection (d) of this section should be altered; and

 

(3)   other pertinent information.

 

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect

June 1, 2011.

 

Approved by the Governor, May 19, 2011.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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