A5093

An Act concerning certain electric generation facilities, supplementing P.L.1999, c.23 (C.48:3-49 et al).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

“Standby charge” means a charge imposed by an electric public utility upon: (1) a resource recovery facility that delivers or sells electric power to an end-use customer; or (2) an end-use customer of that power, for the recovery of costs necessary to make power available to the resource recovery facility or the end-use customer during a resource recovery facility electric power outage including, but not limited to, the allocation of reasonable capital investment costs and operating and maintenance expenses associated with the electric public utility’s infrastructure needed to provide the standby power.

“Standby power” means electric power made available to a resource recovery facility during a resource recovery facility outage or to an end-use customer who uses power generated by the resource recovery facility.

2. At the request of an owner of a resource recovery facility, an electric public utility shall install distribution lines to connect the resource recovery facility with the electric public utility’s distribution network. The electric public utility may charge the owner of the resource recovery facility for the entire amount of costs incurred to connect the resource recovery facility to the distribution network.

3. a. (1) An electric power supplier or a basic generation service provider shall offer a resource recovery facility net metering at a non-discriminatory rate. If the amount of electricity generated by the resource recovery facility, plus any kilowatt hour credits held over from previous billing periods, exceeds the electricity supplied by the electric power supplier or basic generation service provider, then the electric power supplier or basic generation service provider shall credit the resource recovery facility for the excess kilowatt hours generated until the end of the billing period. If any kilowatt hour credit remains at the end of the billing period, the resource recovery facility shall be compensated by the electric power supplier or basic generation service provider for any remaining credits or, if the resource recovery facility chooses, have the electric power supplier or a basic generation service provider credit the resource recovery facility on a real-time basis, at the electric power supplier’s or basic generation service provider’s avoided cost of wholesale power or the PJM electric power pool’s real-time locational marginal pricing rate, adjusted for losses, for the respective zone in the PJM electric power pool.

(2) In the event that the resource recovery facility elects not to receive a credit pursuant to paragraph (1) of this subsection, the resource recovery facility may execute a bilateral agreement with an electric power supplier or basic generation service provider for the sale and purchase of the resource recovery facility’s excess generation. The resource recovery facility may be credited on a real-time basis, if the resource recovery facility follows applicable rules prescribed by the PJM electric power pool for its capacity requirements for the net amount of electricity supplied by the electric power supplier or basic generation service provider.

b. A resource recovery facility may deliver or sell power to up to 10 end-use customers, who are located within 10 miles of the resource recovery facility and net-metered within the service territory of a single electric public utility, and designate the end-use customers to be credited by the electric power supplier or basic generation service provider with the excess generation of the resource recovery facility. The resource recovery facility may designate the proportionate share of the excess electricity generated to credit each of the designated end-use customers.

c. The owner of a resource recovery facility who sells or delivers power to an end-use customer pursuant to the provisions of this section shall not be considered a public utility pursuant to R.S.48:2-13 or P.L.1999, c.23 (C.48:3-49 et al.).

4. a. An electric public utility, electric power supplier, or basic generation provider shall impose and assess a standby charge upon request for standby power by: (1) a resource recovery facility that supplies power to an end-use customer pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill); or (2) the end-use customer of that power,

b. The board shall, within 120 days after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), establish criteria for an electric public utility, electric power supplier, or a basic generation provider to assess and impose a standby charge.

5. This act shall take effect immediately.

STATEMENT

This bill authorizes “virtual” net metering for certain customers of an electric public utility (utility).

Under the bill, a resource recovery facility (facility) is eligible for net metering. The bill authorizes a facility to deliver or sell power to up to 10 end-use customers, who are located within 10 miles of the facility and net-metered within the service territory of a single electric public utility, and designate the end-use customers to be credited by the electric power supplier or basic generation service provider with the excess generation of the facility.

The bill requires an electric public utility, electric power supplier, or a basic generation service provider to provide standby power at the request of a facility or an end-use customer who uses power generated by the facility. Under the bill, “standby power” means electric power made available during a facility outage to a facility or to an end-use customer who uses power generated by the facility.