BILL NUMBER: S1553
SPONSOR: PARKER
 
TITLE OF BILL:
An act to amend the public service law and the public authorities law,
in relation to credit for electricity generated by a customer-generator
subject to net energy metering
 
PURPOSE OR GENERAL IDEA OF BILL:
To provide that credits for excess electricity generated by customer-
generators subject to net metering may be carried over and used to
offset electricity used.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends subdivision 4 of section 66-j of the Public Service
Law, as amended by Chapter 355 of the laws of 2009.
Section 2 amends subdivision 4 of section 66-1 of the Public Service
Law, as amended by Chapter 721 of the laws of 2006, paragraphs (b) and
(e) as amended and paragraph (d) as added by Chapter 483 of the laws of
2003.
 
JUSTIFICATION:
New York State's net metering law allows a utility customer with an
on-site electric generating system using solar or wind to send any
excess power that they Generate back to the utility arid, receiving an
equal credit against their own usage. Customers are credited for the
excess energy they produce at the retail rate, and the credits can be
rolled over from month to month for a year. If there is excess electric-
ity generated by the customer generator at the end of the annualized
period of service, the utility pays for this-electricity at the avoided
cost rate. Avoided cost is the cost the utility would have incurred for
producing the same amount of power at a rate lower than the retail rate.
Under this legislation, net-metered customer-generators can choose the
option to carryover the credits that come from their producing energy in
excess of what they use and have that credit aggregated indefinitely so
as to be used as credit against times when they use more energy than
they produce. In cases where customer-generators elect to carry over
credits indefinitely, they will be entitled to an accounting of those
credits every five years.
Net-metered customer generators do not produce excess energy for
profit.The electricity that the net-metered customer generators put into
the grid roughly equals what that customer uses during the periods when
they must use electricity from the grid. It is logical and reasonable to
allow the option of carryover of excess electricity credit longer than a
12 month period so that a customer-generator may take advantage of using
their credits priced at the retail rate. This is significant because the
periods of time that the sun may shine and wind may blow are not the
same from year to year, leaving a customer generator to either make more
or less energy then use in anyone, year. By giving the customer-genera-
tor the opportunity to carryover credits over a period of time longer
than a year, the customer generator will be better able to take advan-
tage of the natural year to year fluctuations of the sun and wind. New
York's interconnection and net metering rules are designed to motivate
ratepayers to invest in renewable energy sources on their properties by
ensuring that customer generators are compensated for the energy they
produce. By providing reasonable and appropriate benefits for customers,
New York can incentivize customer-genera tors to contribute to the
availability of safe, reliable, and affordable electricity and help
protectour environment in New York and reduce our dependence on foreign
fuel sources.
 
PRIOR LEGISLATIVE HISTORY:
2023/24- S4304 REFERRED TO ENERGY AND TELECOMMUNICATIONS
2021/22 S3140B - REFERRED TO ENERGY AND TELECOMMUNICATIONS
2019/20 S3596 - REFERRED TO ENERGY AND TELECOMMUNICATIONS
2017/18 S2696 - Referred to Energy and Telecom
2015-16: S.2878/A.3096Referred to Energy and Telecomm/ Passes Assembly
2013-14: S.2957/A.5822 - Referred to Energy and Telecomm/ Passed Assem-
bly
2011-12: S.5839/A.5521 - Referred to Energy and Telecomm/ Passed Assem-
bly
2009-10 A.10244A - Reported Referred to Rules
 
FISCAL IMPLICATIONS:
No fiscal implications.
 
EFFECTIVE DATE:
This act shall take effect on the first day of January next succeeding
the date on which it shall have become a law.

Statutes affected:
S1553: 1020-g public authorities law