SB 674
Requires electric service providers to allow net metering
LR Number:
Last Action:
4/12/2007 - SCS Voted Do Pass S Commerce, Energy and the Environment Committee (2514S.02C)
Journal Page:
Calendar Position:
Effective Date:
August 28, 2007

Current Bill Summary

SCS/SB 674 - This act requires retail electric suppliers to make net metering available to customers who have their own electric generation units that meet certain criteria, one of which is that the unit is powered by renewable energy resources. Net metering is where the customer gets credit for the electricity he or she generates in lieu of electricity supplied by the electric utility. Net metering shall be made available to customers on a first-come, first-served basis until the total rated generating capacity of the net metering systems equals 5% of the utility's single-hour peak load during the previous year.

Customers involved in net metering shall not be assessed any additional fees or charges and shall receive the same electric rates as an equivalent non-net metering customer.

The act describes how the net energy measurement shall be calculated and applied to the electric service billing. Customer-owned electric generation units must meet certain safety, performance, interconnection and reliability standards.

The Public Service Commission shall promulgate rules for the administration of this act. The rules shall require electric suppliers to use contract documents and an application process that is simple and easy to understand and shall require electric suppliers to annually report to the Commission with regard to the act.

Retail electric suppliers shall not be liable for damages caused by a customer-generator's generating unit when no evidence exists of fault by the supplier. Suppliers may discontinue electric service to any person who is determined to be conducting net metering without the approval of the supplier.

A retail electric supplier may use the energy generated by its customer-generators to meet any required renewable energy targets and may recover any costs associated with net metering in its rate structure.

The Attorney General is given authority to regulate merchandising practices associated with the sale of electric generating units.

The act repeals the Consumer Clean Energy Act.