2827.10
. (a) As used in this section, the following terms have the
following meanings:
(1) "Electrical corporation" means an electrical corporation, as
defined in Section 218.
(2) "Eligible fuel cell electrical generating facility" means a
facility that includes the following:
(A) Integrated powerplant systems containing a stack, tubular
array, or other functionally similar configuration used to
electrochemically convert fuel to electricity.
(B) An inverter and fuel processing system where necessary.
(C) Other plant equipment, including heat recovery equipment,
necessary to support the plant's operation or its energy conversion.
(3) (A) "Eligible fuel cell customer-generator" means a customer
of an electrical corporation that meets all the following criteria:
(i) Uses a fuel cell electrical generating facility with a
capacity of not more than one megawatt that is located on or adjacent
to the customer's owned, leased, or rented premises, is
interconnected and operates in parallel with the electrical grid
while the grid is operational or in a grid independent mode when the
grid is nonoperational, and is sized to offset part or all of the
eligible fuel cell customer-generator's own electrical requirements.
(ii) Is the recipient of local, state, or federal funds, or who
self-finances projects designed to encourage the development of
eligible fuel cell electrical generating facilities.
(iii) Uses technology the commission has determined will achieve
reductions in emissions of greenhouse gases pursuant to subdivision
(b), and meets the emission requirements for eligibility for funding
set forth in subdivision (c), of Section 379.6.
(B) For purposes of this paragraph, a person or entity is a
customer of the electrical corporation if the customer is physically
located within the service territory of the electrical corporation
and receives bundled service, distribution service, or transmission
service from the electrical corporation.
(4) "Net energy metering" means measuring the difference between
the electricity supplied through the electrical grid and the
difference between the electricity generated by an eligible fuel cell
electrical generating facility and fed back to the electrical grid
over a 12-month period as described in subdivision (e). Net energy
metering shall be accomplished using a time-of-use meter capable of
registering the flow of electricity in two directions. If the
existing electrical meter of an eligible fuel cell customer-generator
is not capable of measuring the flow of electricity in two
directions, the eligible fuel cell customer-generator shall be
responsible for all expenses involved in purchasing and installing a
meter that is able to measure electricity flow in two directions. If
an additional meter or meters are installed, the net energy metering
calculation shall yield a result identical to that of a time-of-use
meter.
(b) (1) Every electrical corporation, not later than March 1,
2004, shall file with the commission a standard tariff providing for
net energy metering for eligible fuel cell customer-generators,
consistent with this section. Subject to the limitation in
subdivision (f), every electrical corporation shall make this tariff
available to eligible fuel cell customer-generators upon request, on
a first-come-first-served basis, until the total cumulative rated
generating capacity of the eligible fuel cell electrical generating
facilities receiving service pursuant to the tariff reaches a level
equal to its proportionate share of a statewide limitation of 500
megawatts cumulative rated generation capacity served under this
section. The proportionate share shall be calculated based on the
ratio of the electrical corporation's peak demand compared to the
total statewide peak demand.
(2) To continue the growth of the market for onsite electrical
generation using fuel cells, the commission may review and
incrementally raise the limitation established in paragraph (1) on
the total cumulative rated generating capacity of the eligible fuel
cell electrical generating facilities receiving service pursuant to
the tariff in paragraph (1).
(c) In determining the eligibility for the cumulative rated
generating capacity within an electrical corporation's service
territory, preference shall be given to facilities that, at the time
of installation, are located in a community with significant exposure
to air contaminants or localized air contaminants, or both,
including, but not limited to, communities of minority populations or
low-income populations, or both, based on the ambient air quality
standards established pursuant to Division 26 (commencing with
Section 39000) of the Health and Safety Code.
(d) (1) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate
components, and any monthly charges, to the contract or tariff to
which the customer would be assigned if the customer was not an
eligible fuel cell customer-generator. Any new or additional demand
charge, standby charge, customer charge, minimum monthly charge,
interconnection charge, or other charge that would increase an
eligible fuel cell customer-generator's costs beyond those of other
customers in the rate class to which the eligible fuel cell
customer-generator would otherwise be assigned are contrary to the
intent of the Legislature in enacting this section, and shall not
form a part of net energy metering tariffs.
(2) The commission shall authorize an electrical corporation to
charge a fuel cell customer-generator a fee based on the cost to the
utility associated with providing interconnection inspection services
for that fuel cell customer-generator.
(e) The net metering calculation shall be made by measuring the
difference between the electricity supplied to the eligible fuel cell
customer-generator and the electricity generated by the eligible
fuel cell customer-generator and fed back to the electrical grid over
a 12-month period. The following rules shall apply to the annualized
metering calculation:
(1) The eligible fuel cell customer-generator shall, at the end of
each 12-month period following the date of final interconnection of
the eligible fuel cell electrical generating facility with an
electrical corporation, and at each anniversary date thereafter, be
billed for electricity used during that period. The electrical
corporation shall determine if the eligible fuel cell
customer-generator was a net consumer or a net producer of
electricity during that period. For purposes of determining if the
eligible fuel cell customer-generator was a net consumer or a net
producer of electricity during that period, the electrical
corporation shall aggregate the electrical load of the meters located
on the property where the eligible fuel cell electrical generating
facility is located and on all property adjacent or contiguous to the
property on which the facility is located, if those properties are
solely owned, leased, or rented by the eligible fuel cell
customer-generator. Each aggregated account shall be billed and
measured according to a time-of-use rate schedule.
(2) At the end of each 12-month period, where the electricity
supplied during the period by the electrical corporation exceeds the
electricity generated by the eligible fuel cell customer-generator
during that same period, the eligible fuel cell customer-generator is
a net electricity consumer and the electrical corporation shall be
owed compensation for the eligible fuel cell customer-generator's net
kilowatthour consumption over that same period. The compensation
owed for the eligible fuel cell customer-generator's consumption
shall be calculated as follows:
(A) The generation charges for any net monthly consumption of
electricity shall be calculated according to the terms of the tariff
to which the same customer would be assigned to or be eligible for if
the customer was not an eligible fuel cell customer-generator. When
the eligible fuel cell customer-generator is a net generator during
any discrete time-of-use period, the net kilowatthours produced shall
be valued at the same price per kilowatthour as the electrical
corporation would charge for retail kilowatthour sales for
generation, exclusive of any surcharges, during that same time-of-use
period. If the eligible fuel cell customer-generator's time-of-use
electrical meter is unable to measure the flow of electricity in two
directions, paragraph (4) of subdivision (a) shall apply. All other
charges, other than generation charges, shall be calculated in
accordance with the eligible fuel cell customer-generator's
applicable tariff and based on the total kilowatthours delivered by
the electrical corporation to the eligible fuel cell
customer-generator. To the extent that charges for transmission and
distribution services are recovered through demand charges in any
particular month, no standby reservation charges shall apply in that
monthly billing cycle.
(B) The net balance of moneys owed shall be paid in accordance
with the electrical corporation's normal billing cycle.
(3) At the end of each 12-month period, where the electricity
generated by the eligible fuel cell customer-generator during the
12-month period exceeds the electricity supplied by the electrical
corporation during that same period, the eligible fuel cell
customer-generator is a net electricity producer and the electrical
corporation shall retain any excess kilowatthours generated during
the prior 12-month period. The eligible fuel cell customer-generator
shall not be owed any compensation for those excess kilowatthours.
(4) If an eligible fuel cell customer-generator terminates service
with the electrical corporation, the electrical corporation shall
reconcile the eligible fuel cell customer-generator's consumption and
production of electricity during any 12-month period.
(f) A fuel cell electrical generating facility shall not be
eligible for the tariff unless it commences operation prior to
January 1, 2017, unless a later enacted statute, that is chaptered
before January 1, 2017, extends this eligibility commencement date.
The tariff shall remain in effect for an eligible fuel cell
electrical generating facility that commences operation pursuant to
the tariff prior to January 1, 2017. A fuel cell customer-generator
shall be eligible for the tariff established pursuant to this section
only for the operating life of the eligible fuel cell electrical
generating facility.