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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to net metering; amending s. 366.91, 2
F.S.; providing the terms for public utility net 3
metering programs after a specified date; providing a 4
schedule of reductions to net metering rate designs 5
that apply to customers with net metering applications 6
that are approved after specified dates; authorizing 7
certain customers who own or lease renewable 8
generation to remain under the net metering rules t hat 9
initially applied to those customers for a specified 10
time; authorizing public utilities to petition for 11
approval of certain fixed charges designed to meet 12
specified purposes; providing conditions under which 13
rules must be initiated if the penetration r ate of 14
customer-owned or leased renewable generation meets a 15
specified threshold; authorizing public utilities to 16
recover specified lost revenues upon meeting certain 17
requirements; providing applicability; providing an 18
effective date. 19
20
Be It Enacted by the Legislature of the State of Florida: 21
22
Section 1. Subsection (5) of section 366.91, Florida 23
Statutes, is amended to read: 24
366.91 Renewable energy. — 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(5)(a) On or before January 1, 2009, Each public utility 26
shall develop a standardized interconne ction agreement and net 27
metering program for customer -owned or leased renewable 28
generation. The commission shall establish requirements relating 29
to the expedited interconnection and net metering of customer -30
owned or leased renewable generation by public ut ilities and 31
shall may adopt new rules to administer this section. 32
(b) Effective January 1, 2024, public utility net metering 33
programs for customer -owned or leased renewable generation must 34
provide that: 35
1. Electricity used by the customer in excess of the 36
generation supplied by customer -owned or leased renewable 37
generation is billed by the public utility in accordance with 38
normal billing practices; and 39
2. Excess customer-owned or leased renewable generation 40
delivered to the public utility's electric g rid during the 41
customer's regular billing cycle is credited to the customer's 42
energy consumption for the next month's billing cycle as 43
follows: 44
a. For energy credits produced from customer -owned or 45
leased renewable generation for which a net metering app lication 46
is approved between January 1, 2024, and December 31, 2025, the 47
customer's energy usage is offset by 75 percent of the amount 48
credited; 49
b. For energy credits produced from customer -owned or 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
leased renewable generation for which a net metering ap plication 51
is approved between January 1, 2026, and December 31, 2026, the 52
customer's energy usage is offset by 60 percent of the amount 53
credited; and 54
c. For energy credits produced from customer -owned or 55
leased renewable generation for which a net meteri ng application 56
is approved between January 1, 2027, and December 31, 2028, the 57
customer's energy usage is offset by 50 percent of the amount 58
credited. 59
(c) A public utility customer who owns or leases renewable 60
generation for which a net metering applicat ion is approved 61
before January 1, 2029, pursuant to a standard interconnection 62
agreement offered by a public utility, is granted 20 years to 63
continue to use the net metering rate design and rates that 64
applied at the time the net metering application was ap proved. 65
This paragraph applies to customers who purchase or lease real 66
property upon which customer -owned or leased renewable 67
generation is installed for all or part of that 20 -year period. 68
(d) On or after the effective date of the net metering 69
programs described in paragraph (b), a public utility may 70
petition the commission for approval to impose any combination 71
of fixed charges, which may include base facilities charges, 72
electric grid access fees, and monthly minimum bills, to ensure 73
that the public utility recovers the fixed costs of serving 74
customers that own or lease renewable generation and that the 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
general body of public utility ratepayers do not subsidize 76
customer-owned or leased generation. Within 180 days after a 77
petition is filed by a public uti lity pursuant to this 78
paragraph, the commission must issue a final order on the 79
petition. 80
(e) The commission must adopt new rules to become 81
effective January 1, 2029, that establish a new program design 82
for customer-owned or leased renewable generation for which a 83
net metering application is approved on or after January 1, 84
2029. The new program design must comply with the following 85
criteria: 86
1. Each public utility customer who owns or leases 87
renewable generation must pay the full cost of electric service 88
and may not be subsidized by the public utility's general body 89
of ratepayers. 90
2. All energy delivered by the public utility must be 91
purchased at the public utility's applicable retail rate a nd all 92
energy delivered by the customer -owned or leased renewable 93
generation to the public utility must be credited to the 94
customer at the public utility's full avoided costs. 95
(f)1. If at any time the penetration rate of customer -96
owned or leased renewab le generation in a public utility's 97
service territory is reasonably expected to exceed 6.5 percent 98
within the succeeding 12 months, the commission, upon petition 99
or on its own motion, must initiate rulemaking to adopt a new 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
program design that complies wit h subparagraphs (e)1. and 2. A 101
new program design adopted pursuant to this subparagraph becomes 102
effective 60 days after rule adoption or 60 days after the date 103
the commission determines that the actual penetration rate has 104
reached 6.5 percent, whichever is later, and shall apply to 105
customer-owned or leased renewable generation for which a net 106
metering application is approved after that effective date. 107
2. For purposes of this paragraph, the penetration rate 108
shall be calculated by dividing the aggregate gro ss power rating 109
(alternating current) of all in -service customer-owned or leased 110
renewable generation in the public utility's service territory 111
by the total summer peak demand of the public utility. 112
(g) This subsection establishes the minimum requirement s 113
for each public utility net metering program. A public utility 114
may petition the commission at any time for approval to offer a 115
net metering program on terms that are not less favorable to 116
customers who own or lease renewable generation than the terms 117
specified in this subsection or in commission rules adopted 118
pursuant to this subsection. 119
(h)1. A public utility may recover, through its fuel and 120
purchased power cost recovery charge, its lost revenues 121
resulting from the incremental addition of residential customer-122
owned or leased solar photovoltaic generation within the public 123
utility's service territory between July 1, 2022, and December 124
31, 2023, above the level that such generation, for purposes of 125
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
setting base rates in the public utility's most recent b ase rate 126
proceeding, was estimated to be installed within the public 127
utility's service territory during the same period. 128
2. A public utility seeking recovery of lost revenues 129
under this paragraph must file with the commission a petition 130
that: 131
a. Identifies the total capacity of residential customer -132
owned or leased solar photovoltaic generation that, for purposes 133
of setting base rates in the public utility's most recent base 134
rate proceeding, was estimated to be installed in the public 135
utility's service territory between July 1, 2022, and December 136
31, 2023; 137
b. Identifies the total capacity of residential customer -138
owned or leased solar photovoltaic generation that was installed 139
in the public utility's service territory between July 1, 2022, 140
and December 31, 2023; 141
c. Demonstrates the difference in revenues collected by 142
the public utility as a direct result of the incremental 143
difference in the estimated and actual capacity additions 144
identified in sub-subparagraphs a. and b. and identifies the 145
specific amount that the utility seeks to recover; 146
d. Demonstrates that the relief requested does not cause 147
the public utility to exceed the rate of return on equity 148
authorized by the commission in the public utility's most recent 149
base rate proceeding; and 150
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
e. Includes such other reasonably related information as 151
the commission may require by rule. 152
3. Upon receipt of a petition that meets the requirements 153
of subparagraph 2., the commission must determine the amount, if 154
any, that the utility is entitled to recover u nder this 155
paragraph. 156
4. A petition filed under this subsection may not be filed 157
before December 31, 2023, or after March 31, 2024. 158
5. The Legislature provides the limited, extraordinary 159
relief set forth in this paragraph to address the potential 160
impact on a public utility of a previously unanticipated surge, 161
unaccounted for in the utility's last rate case, in the 162
installation of customer -owned or leased renewable generation 163
over the period specified in this subsection. The Legislature 164
makes no findings as to whether the recovery of lost revenues by 165
a public utility is appropriate for any other purpose. 166
Section 2. This act shall take effect July 1, 2022. 167