Committee/Subcommittee Amendment No. 1 to PCS for CS/HB 741 (2022)

Summary

Committee/Subcommittee Amendment No. 1 to PCS for CS/HB 741 (2022), offered by Representative McClure for the Commerce Committee hearing on the bill, with a title amendment. It removes everything after the enacting clause and inserts a section amending subsection (5) of section 366.91, Florida Statutes, on renewable energy. For customer-owned or leased renewable generation placed in service between January 1, 2024, and December 31, 2025, the customer's energy usage would be offset by 75 percent of the amount credited, with 60 percent for 2026 and 50 percent from January 1, 2027, to December 31, 2028. It provides 20 years under the existing net metering rate design for generation placed in service before January 1, 2029, and sets a July 1, 2022 effective date.

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                                          COMMITTEE/SUBCOMMITTEE AMENDMENT
                                       Bill No. PCS for CS/HB 741     (2022)
       Amendment No. 1




            COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                      (Y/N)
       ADOPTED AS AMENDED           (Y/N)
       ADOPTED W/O OBJECTION        (Y/N)
       FAILED TO ADOPT              (Y/N)
       WITHDRAWN                    (Y/N)
       OTHER


 1     Committee/Subcommittee hearing bill:      Commerce Committee
 2     Representative McClure offered the following:
 3
 4          Amendment (with title amendment)
 5          Remove everything after the enacting clause and insert:
 6          Section 1.   Subsection (5) of section 366.91, Florida
 7     Statutes, is amended to read:
 8          366.91   Renewable energy.—
 9          (5)(a)   On or before January 1, 2009, Each public utility
10     shall develop a standardized interconnection agreement and net
11     metering program for customer-owned or leased renewable
12     generation. The commission shall establish requirements relating
13     to the expedited interconnection and net metering of customer -
14     owned or leased renewable generation by public utilities and
15     shall may adopt new rules to administer this section.
16          (b)    Effective January 1, 2024, public utility net metering
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17     programs for customer-owned or leased renewable generation must
18     provide that:
19          1.    Electricity used by the customer in excess of the
20     generation supplied by customer-owned or leased renewable
21     generation is billed by the public utility in accordance with
22     normal billing practices;
23          2.    Excess customer-owned or leased renewable generation
24     delivered to the public utility’s electric grid during the
25     customer’s regular billing cycle must be credited to the
26     customer’s energy consumption for the next month’s billing cycle
27     as follows:
28          a.    For energy credits produced from customer-owned or
29     leased renewable generation that is placed in service between
30     January 1, 2024, and December 31, 2025, the customer’s energy
31     usage shall be offset by 75 percent of the amount credited;
32          b.    For energy credits produced from customer-owned or
33     leased renewable generation that is placed in service between
34     January 1, 2026, and December 31, 2026, the customer’s energy
35     usage shall be offset by 60 percent of the amount credited;
36          c.    For energy credits produced from customer-owned or
37     leased renewable generation that is placed in service between
38     January 1, 2027, and December 31, 2028, the customer’s energy
39     usage shall be offset by 50 percent of the amount credited.
40          (c)    A public utility customer who owns or leases renewable
41     generation that is placed in service before January 1, 2029,
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       Amendment No. 1


42     pursuant to a standard interconnection agreement offered by a
43     public utility, shall be granted 20 years to continue to use the
44     net metering rate design and rates that applied at the time the
45     renewable generation was placed into service. This paragraph
46     applies to customers who purchase or lease real property upo n
47     which customer-owned or leased renewable generation is installed
48     for all or part of that 20-year period.
49          (d)     On or after the effective date of the net metering
50     programs described in paragraph (b), a public utility may
51     petition the commission for approval to impose any combination
52     of fixed charges, which may include base facilities charges,
53     electric grid access fees, and monthly minimum bills, necessary
54     to ensure that the public utility recovers the fixed costs of
55     serving customers that own or lease renewable generation and
56     that the general body of public utility ratepayers do not
57     subsidize customer-owned or leased generation. Within 180 days
58     after a petition is filed by a public utility pursuant to this
59     paragraph, the commission must issue a final order on the
60     petition.
61          (e)     The commission must adopt new rules to become
62     effective January 1, 2029, that establish a new program design
63     for customer-owned or leased renewable generation that is placed
64     in service on or after January 1, 2029. The new program design
65     must comply with the following criteria:
66          1.     Public utility customers owning or leasing renewable
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                                       Bill No. PCS for CS/HB 741     (2022)
       Amendment No. 1


67     generation must pay the full cost of electric service and may
68     not be subsidized by the public utility's general body of
69     ratepayers.
70          2.   All energy delivered by the public utility must be
71     purchased at the public utility's applicable retail rate and all
72     energy delivered by the customer-owned or leased renewable
73     generation to the public utility must be credited to the
74     customer at the public utility's full avoided costs.
75          (f)1.    If at any time the penetration rate of customer-
76     owned or leased renewable generation in a public utility’s
77     service territory is reasonably expected to exceed 6.5 percent
78     within the succeeding 12 months, the commission, upon petition
79     or on its own motion, must initiate rulemaking to adopt a new
80     program design that complies with subparagraphs (e)1.-2. A new
81     program design adopted pursuant to this subparagraph becomes
82     effective 60 days after rule adoption or 60 days after the date
83     the commission determines that the actual penetration rate has
84     reached 6.5 percent, whichever is later, and shall apply to
85     customer-owned or leased renewable generation placed in service
86     after that effective date.
87          2.   For purposes of this paragraph, the penetration rate
88     shall be calculated by dividing the total summer peak demand of
89     the public utility by the aggregate gross power rating
90     (alternating current) of all in-service customer-owned or leased
91     renewable generation in the public utility’s service territory.
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 92          (f)     This subsection establishes the minimum requirements
 93     for each public utility net metering program. A public utility
 94     may petition the commission at any time for approval to offer a
 95     net metering program on terms that are not less favorable to
 96     customers who own or lease renewable generation than the terms
 97     specified in this subsection or in commission rules adopted
 98     pursuant to this subsection.
 99          (g)1.     A public utility may recover, through its fuel and
100     purchased power cost recovery charge, its lost revenues
101     resulting from the incremental addition of residential customer -
102     owned or leased solar photovoltaic generation within the public
103     utility's service territory between July 1, 2022 and December
104     31, 2023, above the level that such generation, for purposes of
105     setting base rates in the public utility's most recent base rate
106     proceeding, was estimated to be installed within the public
107     utility's service territory during the same period.
108          2.     A public utility seeking recovery of lost revenues
109     under this paragraph must file with the commission a petition
110     that:
111          a.     Identifies the total capacity of residential customer-
112     owned or leased solar photovoltaic generation that, for purposes
113     of setting base rates in the public utility's most recent base
114     rate proceeding, was estimated to be installed in the public
115     utility's service territory between July 1, 2022, and December
116     31, 2023;
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117          b.   Identifies the total capacity of residential customer-
118     owned or leased solar photovoltaic generation that was installed
119     in the public utility's service territory between July 1, 2022,
120     and December 31, 2023;
121          c.   Demonstrates the difference in revenues collected by
122     the public utility as a direct result of the incremental
123     difference in the estimated and actual capacity additions
124     identified in sub-subparagraphs a. and b. and identifies the
125     specific amount that the utility seeks to recover;
126          d.   Demonstrates that the relief requested does not cause
127     the public utility to exceed the rate of return on equity
128     authorized by the commission in the public utility's most recent
129     base rate proceeding; and
130          e.   Includes such other reasonably related information as
131     the commission may require by rule.
132          3.   Upon receipt of a petition that meets the requirements
133     of subparagraph 2., the commission must determine the amount, if
134     any, that the utility is entitled to recover under this
135     paragraph.
136          4.   A petition filed under this section may not be filed
137     before December 31, 2023, or after March 31, 2024.
138          5.   The Legislature provides the limited, extraordinary
139     relief set forth in this paragraph to address the potential
140     impact on a public utility of a previously unanticipated surge,
141     unaccounted for in the utility's last rate case, in the
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        Amendment No. 1


142     installation of customer-owned or leased renewable generation
143     over the period specified in this section.   The Legislature
144     makes no findings as to whether the recovery of lost revenues by
145     a public utility is appropriate for any other purpose.
146          Section 2.   This act shall take effect July 1, 2022.
147
148
149           -----------------------------------------------------
150                        T I T L E   A M E N D M E N T
151          Remove everything before the enacting clause and insert:
152     An act relating to net metering; amending s. 366.91, F.S.;
153     providing the terms for public utility net metering programs
154     after a specified date; providing a schedule of reductions to
155     net metering rate designs that apply to customers who install
156     purchased or leased renewable generation after specified dates;
157     authorizing certain customers who own or lease renewable
158     generation to remain under the existing net metering rules that
159     currently apply to those customers for a specified time;
160     authorizing public utilities to petition for approval of certain
161     fixed charges designed to meet specified purposes; providing
162     conditions under which rules must be initiated if the
163     penetration rate of customer-owned or leased renewable
164     generation meet a specified threshold; authorizing public
165     utilities to recover specified lost revenues upon meeting


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166     certain requirements; providing applicability; providing an
167     effective date.




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