Senate Bill No. 255

Senate Bill No. 255-Senator Titus

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AN ACT relating to energy; providing for net metering for certain customers of an electric utility who have installed a renewable energy system; specifying standards applicable to such systems; and providing other matters properly relating thereto.

[Approved June 30, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 704 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 10, inclusive, of this act.
Sec. 2. It is hereby declared to be the purpose and policy of the legislature in enacting sections 2 to 10, inclusive, of this act to:
1. Encourage private investment in renewable energy resources;
2. Stimulate the economic growth of this state; and
3. Enhance the continued diversification of the energy resources used in this state.
Sec. 3. As used in sections 3 to 10, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 4 to 7, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 4. "Customer-generator" means a user of a net metering system.
Sec. 5. "Net metering" means measuring the difference between the electricity supplied by a utility and the electricity generated by a customer-generator which is fed back to the utility over the applicable billing period.
Sec. 6. "Net metering system" means a facility for the production of electrical energy that:
1. Uses wind or solar energy as its primary source of fuel;
2. Has a generating capacity of not more than 10 kilowatts;
3. Is located on the customer-generator's premises;
4. Operates in parallel with the utility's transmission and distribution facilities; and
5. Is intended primarily to offset part or all of the customer-generator's requirements for electricity.
Sec. 7. "Utility" means a public utility that supplies electricity in this state.
Sec. 8. 1. A utility shall offer net metering, as set forth in section 10 of this act, to the customer-generators operating within its service area until 100 of those customer-generators have accepted the offer.
2. A utility:
(a) Shall offer to make available to each of its customer-generators who has accepted its offer for net metering an energy meter that is capable of registering the flow of electricity in two directions.
(b) May, at its own expense and with the written consent of the customer-generator, install one or more additional meters to monitor the flow of electricity in each direction.
(c) Shall not charge a customer-generator any fee or charge that would increase the customer-generator's minimum monthly charge to an amount greater than that of other customers of the utility in the same rate class as the customer-generator.
Sec. 9. 1. A net metering system used by a customer-generator must meet all applicable safety and power quality standards established by:
(a) The National Electrical Code;
(b) Underwriters Laboratories, Inc.; and
(c) The Institute of Electrical and Electronic Engineers.
2. A customer-generator whose net metering system meets such safety and quality standards must not be required by the utility to:
(a) Comply with additional standards or requirements;
(b) Perform additional tests;
(c) Install additional controls; or
(d) Purchase additional liability insurance,
arising solely from his status as a customer-generator.
Sec. 10. 1. The billing period for net metering may be either a monthly period or, with the written consent of the customer-generator, an annual period.
2. Except as otherwise provided in subsection 3, the net energy measurement must be calculated in the following manner:
(a) The utility shall measure the net electricity produced or consumed during the billing period, in accordance with normal metering practices.
(b) If the electricity supplied by the utility exceeds the electricity generated by the customer-generator which is fed back to the utility during the billing period, the customer-generator must be billed for the net electricity supplied by the utility.
(c) If the electricity generated by the customer-generator which is fed back to the utility exceeds the electricity supplied by the utility during the billing period, neither the utility nor the customer-generator is entitled to compensation for electricity provided to the other during the billing period.
Sec. 11. This act becomes effective on July 1, 1997.
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