126.03.16 Ark. Code R. 001

Current through Register Vol. 49, No. 10, October, 2024

Rule 126.03.16-001 - Net Metering Rules

SECTION 1.GENERAL PROVISIONS

Rule 1.01Definitions

The following definitions shall apply throughout the Net-Metering Rules (NMRs) except as otherwise required by the context, and any references to the NMRs shall include these definitions:

(a) Additional Meter

A meter associated with the Net-Metering Customer's account that the Net-Metering Customer may credit with Net Excess Generation from the Generation Meter. Additional Meter(s): l) shall be under common ownership within a single Electric Utility's service area; 2) shall be used to measure the Net-Metering Customer's requirements for electricity; 3) may be in a different class of service than the Generation Meter; 4) shall be assigned to one, and only one, Generation Meter; 5) shall not be a Generation Meter; and 6) shall not be associated with unmetered service.

(b) Annual Billing Cycle

The normal annual fiscal accounting period used by the utility.

(c) Avoided Costs

As defined in Ark. Code Ann. § 23-3-702(1).

(d) Billing Period

The billing period for net-metering will be the same as the billing period under the customer's applicable standard rate schedule.

(e) Biomass Resource

A resource that may use one or more organic fuel sources that can either be processed into synthetic fuels or burned directly to produce steam or electricity, provided that the resources are renewable, environmentally sustainable in their production and use, and the process of conversion to electricity results in a net environmental benefit. This includes, but is not limited to, dedicated energy crops and trees, agricultural food and feed crops, agricultural crop wastes and residues, wood wastes and residues, aquatic plants, animal wastes, and other accepted organic, renewable waste materials.

(f) Commission

The Arkansas Public Service Commission.

(g) Electric Utility

A public or investor-owned utility, an electric cooperative, municipal utility, or any private power supplier or marketer that is engaged in the business of supplying electric energy to the ultimate customer or any customer class within the state.

(h) Fuel Cell Resource

A resource that converts the chemical energy of a fuel directly to direct current electricity without intermediate combustion or thermal cycles.

(i) Generation Meter

The meter associated with the Net-Metering Customer's account to which the Net-Metering Facility is physically attached.

(j) Geo thermal Resource

A resource in which the prime mover is a steam turbine. The steam is generated in the earth by heat from the earth's magma.

(k) Hydroelectric Resource

A resource in which the prime mover is a water wheel. The water wheel is driven by falling water.

(l) Micro Turbine Resource

A resource that uses a small combustion turbine to produce electricity.

(m) Net Excess Generation

As defined in Ark. Code Ann. § 23-18-603(3).

(n) Net Excess Generation Credits

Uncredited customer generated kilowatt hours remaining in a Net-Metering Customer's account at the close of a Billing Period to be credited, or, pursuant to Rule 2.04, purchased by the utility in a future billing period.

(o)Net-Metering

As defined in Ark. Code Ann. § 23-18-603(4).

(p) Net-Metering Customer

As defined in Ark. Code Ann. § 23-18-603(5).

(q) Net-Metering Facility

As defined in Ark. Code Ann. § 23-18-603(6).

(r) Parallel Operation

The operation of on-site generation by a customer while the customer is connected to the Electric Utility's distribution system.

(s) Qualifying Facility

As defined in Ark. Code Ann. § 23-3-702(4).

(t) Renewable Energy Credit

As defined in Ark. Code Ann. § 23-18-603(7).

(u) Residential Use

Service provided under an Electric Utility's standard rate schedules applicable to residential service.

(v)Solar Resource

A resource in which electricity is generated through the collection, transfer and/or storage of the sun's heat or light.

(w) Wind Resource

A resource in which an electric generator is powered by a wind-driven turbine.

Rule 1.02Purpose

The purpose of these Net-Metering Rules is to establish rules for net energy metering and interconnection.

Rule 1.03Statutory Provisions

A. These Rules are developed pursuant to the Arkansas Renewable Energy Development Act of 2001 (Ark. Code Ann. § 23-18-601 et seq. as amended.)

B. These Rules are promulgated pursuant to the Commission's authority under Ark. Code Ann. §§ 23-2-301, 23-2-304 (a) 3), and 23-2-305.

C. Nothing in these Rules shall govern, limit, or restrict the Commission's authority under Ark. Code Ann. § 23-18-604.

Rule 1.04Other Provisions

A. These Rules apply to all Electric Utilities, as defined in these Rules, that are jurisdictional to the Commission.

B. The Net-Metering Rules are not intended to, and do not affect or replace any Commission approved general service regulation, policy, procedure, rule, or service application of any utility which addresses items other than those covered in these Rules.

C. Net-Metering Customers taking service under the provisions of the Net-Metering Tariff may not simultaneously take service under the provisions of any other alternative source generation or cogeneration tariffs except as provided herein.

SECTION 2. NET-METERING REQUIREMENTS

Rule 2.01Electric Utility Requirements

An Electric Utility shall allow Net-Metering Facilities to be interconnected using a standard meter capable of registering the flow of electricity in two (2) directions.

Rule 2.02Metering Requirements

A. Metering equipment shall be installed to both accurately measure the electricity supplied by the Electric Utility to each Net-Metering Customer and also to accurately measure the electricity generated by each Net-Metering Customer that is fed back to the Electric Utility over the applicable Billing Period. If nonstandard metering equipment is required, the customer is responsible for the cost differential between the required metering equipment and the utility's standard metering equipment for the customer's current rate schedule.

B. Accuracy requirements for a meter operating in both forward and reverse registration modes shall be as defined in the Commission's Special Rules -Electric. A test to determine compliance with this accuracy requirement shall be made by the Electric Utility either before or at the time the Net-Metering Facility is placed in operation in accordance with these Rules.

Rule 2.03New or Additional Charges

Any new or additional charge which would increase a Net-Metering Customer's costs beyond those of other customers in the rate class shall be filed by the Electric Utility with the Commission for approval. The filing shall be supported by the cost/benefit analysis described in Ark. Code Ann. § 23-i8-6o4(b)(2).

Rule 2.04Billing for Net-Metering

A. On a monthly basis, the Net-Metering Customer shall be billed the charges applicable under the currently effective standard rate schedule and any appropriate rider schedules. Under Net-Metering, only the kilowatt hour (kWh) units of a customer's bill are netted.

B. If the kWhs supplied by the Electric Utility exceeds the kWhs generated by the Net- Metering Facility and fed back to the Electric Utility during the Billing Period, the Net-Metering Customer shall be billed for the net kWhs supplied by the Electric Utility in accordance with the rates and charges under the customer's standard rate schedule.

C. If the kWhs generated by the Net-Metering Facility and fed back to the Electric Utility exceed the kWhs supplied by the Electric Utility to the Net-Metering Customer during the applicable Billing Period, the utility shall credit the Net-Metering Customer with any accumulated Net Excess Generation in the next applicable Billing Period.

1. Net Excess Generation shall first be credited to the Net-Metering Customer's Generation Meter.

2. After application of subsection C.1. and upon request of the Net-Metering Customer pursuant to subsection D., any remaining Net Excess Generation shall be credited to one or more of the Net-Metering Customer's Additional Meters in the rank order provided by the customer.

3. Net Excess Generation shall be credited as described in subsections C.1. and C.2. during subsequent Billing Periods. Net Excess Generation Credits remaining in a Net-Metering Customer's account at the close of a Billing Period shall not expire and shall be carried forward to subsequent Billing Periods indefinitely.

a. For Net Excess Generation Credits older than 24 months, a Net-Metering Customer may elect to have the Electric Utility purchase the Net Excess Generation Credits in the Net-Metering Customer's account at the Electric Utility's estimated annual average Avoided Cost rate for wholesale energy if the sum to be paid to the Net-Metering Customer is at least $100.

b. An Electric Utility shall purchase at the Electric Utility's estimated annual average Avoided Cost rate for wholesale energy any Net Excess Generation Credits remaining in a Net-Metering Customer's account when the Net-Metering Customer:

i. ceases to be a customer of the Electric Utility;

ii. ceases to operate the Net-Metering Facility; or

iii. transfers the Net-Metering Facility to another person.

4. When purchasing Net Excess Generation Credits from a Net-Metering Customer, the Electric Utility shall calculate the payment based on its annual average avoided energy costs in the applicable Regional Transmission Organization for the current calendar year.

D. Upon request from a Net-Metering Customer, an Electric Utility must apply Net Excess Generation to the Net-Metering Customer's Additional Meters provided that:

1. The Net-Metering Customer must give at least 30 days' notice to the Electric Utility of its request to apply Net Excess Generation to the Additional Meter(s).

2. The Additional Meter(s) must be identified at the time of the request.

3. In the event that more than one of the Net-Metering Customer's Additional Meters is identified, the Net-Metering Customer must designate the rank order for the Additional Meters to which Net Excess Generation is to be applied. The Net-Metering Customer cannot designate the rank order more than once during the Annual Billing Cycle.

E. Any Renewable Energy Credit created as a result of electricity supplied by a Net-Metering Customer is the property of the Net-Metering Customer that generated the Renewable Energy Credit.

Rule 2.05Application to Exceed Generating Capacity Limit

A. A Net-Metering Customer shall file an application with the Commission seeking approval to install a Net-Metering Facility with a generating capacity of more than 300 kW for non-residential use under Ark. Code Ann. §§ 23-18-604(b) (5) or (7) as appropriate.

B. The application shall be filed in conformance with Section 3 of the Commission's Rules of Practice and Procedure and shall, at a minimum, include:

1. Evidence that the Net-Metering Facility in excess of 300 kW satisfies the requirements of Ark. Code Ann. §§ 23-18-6o4(b)(5) or (7):

2. A description of the proposed Net-Metering Facility including:

a. Project proposal;

b. Project location (street address, town, utility service area);

c. Generator type (wind, solar, hydro, etc.);

d. Generator rating in kW (DC or AC);

e. Capacity factor;

f. Point of interconnection with the Electric Utility;

g. Single Phase or Three Phase interconnection;

h. Planned method of interconnection consistent with Rule 3.01.B.;

i. Expected facility performance calculated using an industry recognized simulation model (PVWatts, etc.);

3. Evidence that the electrical energy produced by the Net-Metering Facility is not intended to-exceed the amount necessary to offset part or all of the Net-Metering Customer requirements for electricity in the form of:

a. The monthly electric bills for the 12 months prior to the application for the Generation Meter and Additional Meter(s), if any, to be credited with Net Excess Generation or

b. In the absence of historical data reasonable estimates for the class and character of service may be made; and

4. A copy of the Preliminary Interconnection Review Request submitted to the Electric Utility and the results of the utility's interconnection site review conducted pursuant to Rule 3.03.

SECTION 3. INTERCONNECTION OF NET- METERING FACILITIES TO EXISTING ELECTRIC POWER SYSTEMS

Rule 3.01Requirements for Initial Interconnection of a Net-Metering Facility

A. A Net-Metering customer shall execute a Standard Interconnection Agreement for Net-Metering Facilities (Appendix A) prior to interconnection with the utility's facilities.

B. A Net-Metering Facility shall be capable of operating in parallel and safely commencing the delivery of power into the utility system at a single point of interconnection. To prevent a Net-Metering Customer from back-feeding a de-energized line, a Net-Metering Facility shall have a visibly open, lockable, manual disconnect switch which is accessible by the Electric Utility and clearly labeled. This requirement for a manual disconnect switch shall be waived if the following three conditions are met:

1) The inverter equipment must be designed to shut down or disconnect and cannot be manually overridden by the customer upon loss of utility service;

2) The inverter must be warranted by the manufacturer to shut down or disconnect upon loss of utility service; and

3) The inverter must be properly installed and operated, and inspected and/or tested by utility personnel.

C. The customer shall submit a Standard Interconnection Agreement to the Electric Utility at least thirty (30) days prior to the date the customer intends to interconnect the Net-Metering Facilities to the utility's facilities. Part I, Standard Information, Sections 1 through 4 of the Standard Interconnection Agreement must be completed for the notification to be valid. The customer shall have all equipment necessary to complete the interconnection prior to such notification. If mailed, the date of notification shall be the third day following the mailing of the Standard Interconnection Agreement. The Electric Utility shall provide a copy of the Standard Interconnection Agreement to the customer upon request.

D. Following notification by the customer as specified in Rule 3.01.C, the utility shall review the plans of the facility and provide the results of its review to the customer, in writing, within 30 calendar days. Any items that would prevent Parallel Operation due to violation of safety standards and/or power generation limits shall be explained along with a description of the modifications necessary to remedy the violations.

E. The Net-Metering Facility, at the Net-Metering Customer's expense, shall meet safety and performance standards established by local and national electrical codes including the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), the National Electrical Safety Code (NESC), and Underwriters Laboratories (UL).

F. The Net-Metering Facility, at the Net-Metering Customer's expense, shall meet all safety and performance standards adopted by the Electric Utility and filed with and approved by the Commission pursuant to these Rules that are necessary to assure safe and reliable operation of the Net-Metering Facility to the Electric Utility's system.

G. If the Electric Utility's existing facilities are not adequate to interconnect with the Net-Metering Facility, the Net-Metering Customer shall pay the cost of additional or reconfigured facilities prior to the installation or reconfiguration of the facilities.

Rule 3.02Requirements for Modifications or Changes to a Net-Metering Facility

A. Prior to being made, the Net-Metering Customer shall notify the Electric Utility of, and the Electric Utility shall evaluate, any modifications or changes to the Net-Metering Facility described in Part I, Standard Information, Section 2 of the Standard Interconnection Agreement for Net-Metering Facilities. The notice provided by the Net-Metering Customer shall provide detailed information describing the modifications or changes to the Electric Utility in writing, including a revised Standard Interconnection Agreement for Net-Metering Facilities that clearly identifies the changes to be made. The utility shall review the proposed changes to the facility and provide the results of its evaluation to the customer, in writing, within thirty (30) days of receipt of the customer's proposal. Any items that would prevent Parallel Operation due to violation of applicable safety standards and/or power generation limits shall be explained along with a description of the modifications necessary to remedy the violations.

B. If the Net-Metering Customer makes such modification without the Electric Utility's prior written authorization and the execution of a new Standard Interconnection Agreement, the Electric Utility shall have the right to suspend Net-Metering service pursuant to the procedures in Section 6 of the Commission's General Service Rules.

C. A Net-Metering Facility shall not be modified or changed to generate electrical energy in excess of the amount necessary to offset all of the Net-Metering Customer requirements for electricity.

Rule 3.03Requirements for Preliminary Interconnection Site Review Request

A. For the purpose of requesting that the Electric Utility conduct a preliminary interconnection site review for a proposed Net-Metering Facility pursuant to Rule 2.05.B.4, or as otherwise requested by the customer, the customer shall notify the Electric Utility by submitting a completed Preliminary Interconnection Site Review Request. The customer shall submit a separate Preliminary Interconnection Site Review Request for each point of interconnection if information about multiple points of interconnection is requested. Part 1, Standard Information, Sections 1 through 4 of the Preliminary Interconnection Site Review Request must be completed for the notification to be valid. If mailed, the date of notification shall be the third day following the mailing of the Preliminary Interconnection Site Review Request. The Electric Utility shall provide a copy of the Preliminary Interconnection Site Review Request to the customer upon request.

B. Following notification by the customer as specified in Rule 3.03.A., the Electric Utility shall review the plans of the facility interconnection and provide the results of its review to the customer, in writing, within 30 calendar days. If the customer requests that multiple interconnection site reviews be conducted the Electric Utility shall make reasonable efforts to provide the customer with the results of the review within 30 calendar days. If the Electric Utility cannot meet the deadline it will provide the customer with an estimated date by which it will complete the review. Any items that would prevent Parallel Operation due to violation of safety standards and/or power generation limits shall be explained along with a description of the modifications necessary to remedy the violations.

C. The preliminary interconnection site review is non-binding and need only include existing data and does not require the Electric Utility to conduct a study or other analysis of the proposed interconnection site in the event that data is not readily available. The utility shall notify the customer if additional site screening may be required prior to interconnection of the facility. The customer shall be responsible for the actual costs of conducting the preliminary interconnection site review and any subsequent costs associated with site screening that maybe required.

D. The preliminary interconnection site review does not relieve the customer of the requirement to execute a Standard Interconnection Agreement prior to interconnection of the facility.

SECTION 4. STANDARD INTERCONNECTION AGREEMENT, PRELIMINARY INTERCONNECTION SITE REVIEW REQUEST, AND STANDARD NET-METERING TARIFF FOR NET-METERING FACILITIES

Rule 4.01 Standard_____Interconnection_____Agreement,_____Preliminary Interconnection Site Review Request, and Standard Net-Metering Tariff

Each Electric Utility shall file, for approval by the Commission, a Standard Interconnection Agreement for Net-Metering Facilities (Appendix A), Preliminary Interconnection Site Review Request (Appendix A-i) and a Net-Metering Tariff in standard tariff format (Appendix B).

Rule 4.02 Filing and Reporting Requirements

Each Electric Utility shall file in Docket No. 06-105-U by March 15 of each year, a report individually listing each Net-Metering Facility, the type of resource (Solar, Wind, etc.), its use (Residential or Other), generator capacity rating, inverter capacity rating, and if the Net-Metering Facility is associated with Additional Meters (Yes or No), as of the end of the previous calendar year. The annual report shall be provided in spreadsheet format.

APPENDIX A-1

STANDARD INTERCONNECTION AGREEMENT FOR NET-METERING FACILITIES

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APPENDIX A-1

STANDARD INTERCONNECTION AGREEMENT FOR NET-METERING FACILITIES

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Attachment 1

Strawman Net-Metering Rules

Markup Version

Appendix B

ARKANSAS PUBLIC SERVICE COMMISSION

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126.03.16 Ark. Code R. 001

10/5/2017