PCS for CS/HB 741 — An Act Relating to Net Metering (2022)
Summary
PCS for CS/HB 741 (2022), a bill text entitled an act relating to net metering. Section 1 amends subsection (5) of section 366.91, Florida Statutes, on renewable energy. For renewable generation placed in service between January 1, 2023, and December 31, 2025, the customer's energy usage is offset by 75 percent of the amount credited, with 60 percent for 2026 and 50 percent for 2027 and 2028. A customer with generation placed in service before January 1, 2029, is granted 20 years under the net metering rate design that applied when it was placed into service, and the commission must adopt new rules effective January 1, 2029. Section 2 provides that the act takes effect July 1, 2022.
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Cite this document
“PCS for CS/HB 741 — An Act Relating to Net Metering (2022).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-3098-commerce-committee-proposed-committee-bills-pcbs-fn-pcs-for-e55e540b6c/
, SHA-256 0366ce31e68a6ac5a6c22d8cc5e5cc568907ddde0b8edf9ed0433881f69db225.Full text
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
PCS for CS/HB 741 2022
1 A bill to be entitled
2 An act relating to net metering; amending s. 366.91,
3 F.S.; requiring the Public Service Commission to
4 propose new net metering rules, by specified dates,
5 that comply with specified criteria; authorizing
6 certain customers who own or lease renewable
7 generation to remain under the existing net metering
8 rules that currently apply to those customers for a
9 specified time; providing a schedule of reductions to
10 net metering rate designs that apply to customers who
11 install purchased or leased renewable generation after
12 specified dates; providing conditions under which
13 rules must be initiated if penetration rates of
14 customer-owned or leased renewable generation meet
15 specified thresholds; authorizing public utilities to
16 recover specified lost revenues upon meeting certain
17 requirements; providing applicability; providing an
18 effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsection (5) of section 366.91, Florida
23 Statutes, is amended to read:
24 366.91 Renewable energy.—
25 (5)(a) On or before January 1, 2009, Each public utility
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26 shall develop a standardized interconnection agreement and net
27 metering program for customer-owned or leased renewable
28 generation. The commission shall establish requirements relating
29 to the expedited interconnection and net metering of customer -
30 owned or leased renewable generation by public utilities and
31 shall may adopt new rules to administer this section.
32 (b) Public utility net metering programs for customer-
33 owned or leased renewable generation must provide that:
34 1. Electricity used by the customer in excess of the
35 generation supplied by customer-owned renewable generation is
36 billed by the public utility in accordance with normal billing
37 practices;
38 2. Excess customer-owned renewable generation delivered to
39 the public utility’s electric grid must be credited to the
40 customer’s energy consumption for the next month’s billing cycle
41 as follows:
42 a. For energy credits produced from customer-owned or
43 leased renewable generation that is placed in service before
44 January 1, 2023, the customer’s energy usage shall be offset by
45 the entire amount credited;
46 b. For energy credits produced from customer-owned or
47 leased renewable generation that is placed in service between
48 January 1, 2023, and December 31, 2025, the customer’s energy
49 usage shall be offset by 75 percent of the amount credited;
50 c. For credits produced from customer-owned or leased
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51 renewable generation that is placed in service between January
52 1, 2026, and December 31, 2026, the customer’s energy usage
53 shall be offset by 60 percent of the amount credited;
54 d. For credits produced from customer-owned or leased
55 renewable generation that is placed in service between January
56 1, 2027, and December 31, 2028, the customer’s energy usage
57 shall be offset by 50 percent of the amount credited.
58 (c) A public utility customer who owns or leases renewable
59 generation that is placed in service before January 1, 2029,
60 pursuant to a standard interconnection agreement offered by a
61 public utility, shall be granted 20 years to continue to use the
62 net metering rate design and rates that applied at the time the
63 renewable generation was placed into service. This paragraph
64 applies to customers who purchase or lease real property upon
65 which customer-owned or leased renewable generation is installed
66 for all or part of that 20-year period.
67 (d) The commission must adopt new rules to become
68 effective January 1, 2029, that establish a new program design
69 for customer-owned or leased renewable generation that is placed
70 in service on or after January 1, 2029. The new program design
71 must comply with the following criteria:
72 1. Public utility customers owning or leasing renewable
73 generation must pay the full cost of electric service and may
74 not be subsidized by the public utility's general body of
75 ratepayers.
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76 2. All energy delivered by the public utility must be
77 purchased at the public utility's applicable retail rate and all
78 energy delivered by the customer-owned or leased renewable
79 generation to the public utility must be credited to the
80 customer at the public utility's full avoided costs.
81 3. The program design must include any combination of
82 fixed charges, which may include base facilities charges,
83 electric grid access fees, and monthly minimum bills, that the
84 commission determines are necessary to ensure that the public
85 utility recovers the fixed costs of serving customers that own
86 or lease renewable generation and that the general body of
87 public utility ratepayers do not subsidize customer -owned or
88 leased generation.
89 (e) The commission must initiate rulemaking to adopt a new
90 program design that complies with subparagraphs (d)1. -3. if,
91 before the commission initiates rulemaking under paragraph (d),
92 the commission, upon petition or on its own motion, finds that:
93 1. The penetration rate of customer-owned or leased
94 renewable generation across all investor-owned electric utility
95 service territories in the state has reached or exceeded 6.5
96 percent within the preceding calendar year. A new program design
97 adopted pursuant to this subparagraph becomes effective 180 days
98 after rule adoption and shall apply to customer-owned or leased
99 renewable generation placed in service after that effective
100 date; or
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101 2. The actual penetration rate of customer-owned or leased
102 renewable generation across all investor-owned electric utility
103 service territories in the state increased, on an absolute
104 basis, by more than 1 percentage point over the course of a
105 calendar year for any calendar year after 2024. A new program
106 design adopted pursuant to this subparagraph becomes effective 1
107 year after rule adoption and shall apply to customer-owned or
108 leased renewable generation placed in service after the
109 effective date.
110
111 For purposes of this paragraph, the penetration rate shall be
112 calculated by dividing the aggregate total summer peak demand of
113 all investor-owned electric utilities in the state by the
114 aggregate gross power rating (alternating current) of all in -
115 service customer-owned or leased renewable generation across all
116 investor-owned electric utility service territories in the
117 state.
118 (f) This subsection establishes the minimum requirements
119 for each public utility net metering program. A public utility
120 may petition the commission at any time for approval to offer a
121 net metering program on terms that are not less favorable to
122 customers who own or lease renewable generation than the terms
123 required by this subsection or commission rules adopted pursuant
124 to this subsection.
125 (g)1. A public utility may recover, through its fuel and
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126 purchased power cost recovery charge, its lost revenues
127 resulting from the incremental addition of residential customer -
128 owned or leased solar photovoltaic generation within the public
129 utility's service territory between July 1, 2022 and December
130 31, 2023, above the level that such generation, for purposes of
131 setting base rates in the public utility's most recent base rate
132 proceeding, was estimated to be installed within the public
133 utility's service territory during the same period.
134 2. A public utility seeking recovery of lost revenues
135 under this paragraph must file with the commission a petition
136 that:
137 a. Identifies the total capacity of residential customer-
138 owned or leased solar photovoltaic generation that, for purposes
139 of setting base rates in the public utility's most recent base
140 rate proceeding, was estimated to be installed in the public
141 utility's service territory between July 1, 2022, and December
142 31, 2023;
143 b. Identifies the total capacity of residential customer-
144 owned or leased solar photovoltaic generation that was installed
145 in the public utility's service territory between July 1, 2022,
146 and December 31, 2023;
147 c. Demonstrates the difference in revenues collected by
148 the public utility as a direct result of the incremental
149 difference in the estimated and actual capacity additions
150 identified in sub-subparagraphs a. and b. and identifies the
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151 specific amount that the utility seeks to recover;
152 d. Demonstrates that the relief requested does not cause
153 the public utility to exceed the rate of return on equity
154 authorized by the commission in the public utility's most recent
155 base rate proceeding; and
156 e. Includes such other information as the commission may
157 require by rule.
158 3. Upon receipt of a petition that meets the requirements
159 of subparagraph 2., the commission must determine the amount, if
160 any, that the utility is entitled to recover under this
161 paragraph.
162 4. A petition filed under this section may not be filed
163 before December 31, 2023, or after March 31, 2024.
164 5. The Legislature provides the limited, extraordinary
165 relief set forth in this paragraph to address the potential
166 impact on a public utility of a previously unanticipated surge,
167 unaccounted for in the utility's last rate case, in the
168 installation of customer-owned or leased renewable generation
169 over the period specified in this section. The Legislature
170 makes no findings as to whether the recovery of lost revenues by
171 a public utility is appropriate for any other purpo se.
172 Section 2. This act shall take effect July 1, 2022.
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