LEGISLATIVE GENERAL COUNSEL S.B. 189
6 Approved for Filing: S. Elder 6 st
1 Sub. (Green)
6 02-21-24 9:34 AM 6
Senator Wayne A. Harper proposes the following substitute bill:
1 NET METERING ENERGY AMENDMENTS
2 2024 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Wayne A. Harper
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to net metering of electricity by large scale electric
10 utilities and the determination of net metering rates and charges.
11 Highlighted Provisions:
12 This bill:
13 < requires a large-scale electric utility to provide customers a set rate for credits on
14 excess energy those customers generate, with the set rate being effective for 20
15 years based on rates in effect when the customer's system was connected; and
16 < makes technical and conforming changes.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None 1 stSub. S.B. 189
21 Utah Code Sections Affected:
22 AMENDS:
23 54-15-104, as last amended by Laws of Utah 2015, Chapter 324
24 54-15-105.1, as enacted by Laws of Utah 2014, Chapter 53
25
*SB0189S01*
1st Sub. (Green) S.B. 189 02-21-24 9:34 AM
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 54-15-104 is amended to read:
28 54-15-104. Charges or credits for net electricity.
29 (1) Each electrical corporation with a customer participating in a net metering program
30 shall measure net electricity during each monthly billing period, in accordance with normal
31 metering practices.
32 (2) If net metering does not result in excess customer-generated electricity during the
33 monthly billing period, the electrical corporation shall bill the customer for the net electricity,
34 in accordance with normal billing practices.
35 (3) Subject to Subsection (4), if net metering results in excess customer-generated
36 electricity during the monthly billing period:
37 (a) (i) for an electrical corporation that is not a large-scale electric utility, the electrical
38 corporation shall credit the customer for the excess customer-generated electricity based on the
39 meter reading for the billing period at a value that is at least avoided cost, or as determined by
40 the governing authority; and
41 (ii) [all credits that the customer does not use during the annualized billing period
42 expire at the end of the annualized billing period] for a large-scale electric utility, the
43 large-scale electric utility shall credit the customer for the excess customer-generated electricity
44 based on the meter reading for the billing period at a value that is determined in accordance
45 with the updated rate schedule established under Section 54-15-105.1; and
46 (b) as authorized by the governing authority, the electrical corporation may bill the
47 customer for customer charges that otherwise would have accrued during that billing period in
48 the absence of excess customer-generated electricity.
49 (4) At the end of an annualized billing period[,]:
50 (a) all credits that the customer does not use during the annualized billing period expire
51 at the end of the annualized billing period; and
52 (b) an electrical corporation's avoided cost value of remaining unused credits[
53 described in Subsection (3)(a)] shall be granted:
54 [(a)] (i) to the electrical corporation's low-income assistance programs as determined
55 by the governing authority; or
56 [(b)] (ii) for another use as determined by the governing authority.
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02-21-24 9:34 AM 1st Sub. (Green) S.B. 189
57 Section 2. Section 54-15-105.1 is amended to read:
58 54-15-105.1. Determination of costs and benefits -- Determination of just and
59 reasonable charge, credit, or ratemaking structure.
60 (1) [The] Except as provided in Subsection (2), the governing authority shall:
61 [(1)] (a) determine, after appropriate notice and opportunity for public comment,
62 whether costs that the electrical corporation or other customers will incur from a net metering
63 program will exceed the benefits of the net metering program, or whether the benefits of the net
64 metering program will exceed the costs; and
65 [(2)] (b) determine a just and reasonable charge, credit, or ratemaking structure,
66 including new or existing tariffs, in light of the costs and benefits.
67 (2) For customers served by a large-scale electric utility and subject to a tariff with a
68 variable export credit, a customer's credit for exported energy may not be less than the credit
69 value effective on the date of the system's executed interconnection agreement for a period of
70 20 years.
71 Section 3. Effective date.
72 This bill takes effect on May 1, 2024.
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Statutes affected: Introduced: 54-15-104, 54-15-105.1
S.B. 189 1st Substitute (Not Adopted) Text: 54-15-104, 54-15-105.1