FL
Florida House Bill H0741

Florida 2022 Regular Session

Florida House Bill H0741 Compare Versions

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1010 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
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14+A bill to be entitled 1
1515 An act relating to net metering; amending s. 366.91, 2
1616 F.S.; providing the terms for public utility net 3
1717 metering programs after a specified date; providing a 4
1818 schedule of reductions to net metering rate designs 5
1919 that apply to customers with net metering applications 6
2020 that are approved after specified dates; authorizing 7
2121 certain customers who own or lease renewable 8
2222 generation to remain under the net metering rules t hat 9
2323 initially applied to those customers for a specified 10
2424 time; authorizing public utilities to petition for 11
2525 approval of certain fixed charges designed to meet 12
2626 specified purposes; providing conditions under which 13
2727 rules must be initiated if the penetration r ate of 14
2828 customer-owned or leased renewable generation meets a 15
2929 specified threshold; authorizing public utilities to 16
3030 recover specified lost revenues upon meeting certain 17
3131 requirements; providing applicability; providing an 18
3232 effective date. 19
3333 20
3434 Be It Enacted by the Legislature of the State of Florida: 21
3535 22
3636 Section 1. Subsection (5) of section 366.91, Florida 23
3737 Statutes, is amended to read: 24
3838 366.91 Renewable energy. — 25
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4747 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
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5151 (5)(a) On or before January 1, 2009, Each public utility 26
5252 shall develop a standardized interconne ction agreement and net 27
5353 metering program for customer -owned or leased renewable 28
5454 generation. The commission shall establish requirements relating 29
5555 to the expedited interconnection and net metering of customer -30
5656 owned or leased renewable generation by public ut ilities and 31
5757 shall may adopt new rules to administer this section. 32
5858 (b) Effective January 1, 2024, public utility net metering 33
5959 programs for customer -owned or leased renewable generation must 34
6060 provide that: 35
6161 1. Electricity used by the customer in excess of the 36
6262 generation supplied by customer -owned or leased renewable 37
6363 generation is billed by the public utility in accordance with 38
6464 normal billing practices; and 39
6565 2. Excess customer-owned or leased renewable generation 40
6666 delivered to the public utility's electric g rid during the 41
6767 customer's regular billing cycle is credited to the customer's 42
6868 energy consumption for the next month's billing cycle as 43
6969 follows: 44
7070 a. For energy credits produced from customer -owned or 45
7171 leased renewable generation for which a net metering app lication 46
7272 is approved between January 1, 2024, and December 31, 2025, the 47
7373 customer's energy usage is offset by 75 percent of the amount 48
7474 credited; 49
7575 b. For energy credits produced from customer -owned or 50
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8484 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
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8888 leased renewable generation for which a net metering ap plication 51
8989 is approved between January 1, 2026, and December 31, 2026, the 52
9090 customer's energy usage is offset by 60 percent of the amount 53
9191 credited; and 54
9292 c. For energy credits produced from customer -owned or 55
9393 leased renewable generation for which a net meteri ng application 56
9494 is approved between January 1, 2027, and December 31, 2028, the 57
9595 customer's energy usage is offset by 50 percent of the amount 58
9696 credited. 59
9797 (c) A public utility customer who owns or leases renewable 60
9898 generation for which a net metering applicat ion is approved 61
9999 before January 1, 2029, pursuant to a standard interconnection 62
100100 agreement offered by a public utility, is granted 20 years to 63
101101 continue to use the net metering rate design and rates that 64
102102 applied at the time the net metering application was ap proved. 65
103103 This paragraph applies to customers who purchase or lease real 66
104104 property upon which customer -owned or leased renewable 67
105105 generation is installed for all or part of that 20 -year period. 68
106106 (d) On or after the effective date of the net metering 69
107107 programs described in paragraph (b), a public utility may 70
108108 petition the commission for approval to impose any combination 71
109109 of fixed charges, which may include base facilities charges, 72
110110 electric grid access fees, and monthly minimum bills, to ensure 73
111111 that the public utility recovers the fixed costs of serving 74
112112 customers that own or lease renewable generation and that the 75
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121121 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
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125125 general body of public utility ratepayers do not subsidize 76
126126 customer-owned or leased generation. Within 180 days after a 77
127127 petition is filed by a public uti lity pursuant to this 78
128128 paragraph, the commission must issue a final order on the 79
129129 petition. 80
130130 (e) The commission must adopt new rules to become 81
131131 effective January 1, 2029, that establish a new program design 82
132132 for customer-owned or leased renewable generation for which a 83
133133 net metering application is approved on or after January 1, 84
134134 2029. The new program design must comply with the following 85
135135 criteria: 86
136136 1. Each public utility customer who owns or leases 87
137137 renewable generation must pay the full cost of electric service 88
138138 and may not be subsidized by the public utility's general body 89
139139 of ratepayers. 90
140140 2. All energy delivered by the public utility must be 91
141141 purchased at the public utility's applicable retail rate a nd all 92
142142 energy delivered by the customer -owned or leased renewable 93
143143 generation to the public utility must be credited to the 94
144144 customer at the public utility's full avoided costs. 95
145145 (f)1. If at any time the penetration rate of customer -96
146146 owned or leased renewab le generation in a public utility's 97
147147 service territory is reasonably expected to exceed 6.5 percent 98
148148 within the succeeding 12 months, the commission, upon petition 99
149149 or on its own motion, must initiate rulemaking to adopt a new 100
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158158 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
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162162 program design that complies wit h subparagraphs (e)1. and 2. A 101
163163 new program design adopted pursuant to this subparagraph becomes 102
164164 effective 60 days after rule adoption or 60 days after the date 103
165165 the commission determines that the actual penetration rate has 104
166166 reached 6.5 percent, whichever is later, and shall apply to 105
167167 customer-owned or leased renewable generation for which a net 106
168168 metering application is approved after that effective date. 107
169169 2. For purposes of this paragraph, the penetration rate 108
170170 shall be calculated by dividing the aggregate gro ss power rating 109
171171 (alternating current) of all in -service customer-owned or leased 110
172172 renewable generation in the public utility's service territory 111
173173 by the total summer peak demand of the public utility. 112
174174 (g) This subsection establishes the minimum requirement s 113
175175 for each public utility net metering program. A public utility 114
176176 may petition the commission at any time for approval to offer a 115
177177 net metering program on terms that are not less favorable to 116
178178 customers who own or lease renewable generation than the terms 117
179179 specified in this subsection or in commission rules adopted 118
180180 pursuant to this subsection. 119
181181 (h)1. A public utility may recover, through its fuel and 120
182182 purchased power cost recovery charge, its lost revenues 121
183183 resulting from the incremental addition of residential customer-122
184184 owned or leased solar photovoltaic generation within the public 123
185185 utility's service territory between July 1, 2022, and December 124
186186 31, 2023, above the level that such generation, for purposes of 125
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195195 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
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199199 setting base rates in the public utility's most recent b ase rate 126
200200 proceeding, was estimated to be installed within the public 127
201201 utility's service territory during the same period. 128
202202 2. A public utility seeking recovery of lost revenues 129
203203 under this paragraph must file with the commission a petition 130
204204 that: 131
205205 a. Identifies the total capacity of residential customer -132
206206 owned or leased solar photovoltaic generation that, for purposes 133
207207 of setting base rates in the public utility's most recent base 134
208208 rate proceeding, was estimated to be installed in the public 135
209209 utility's service territory between July 1, 2022, and December 136
210210 31, 2023; 137
211211 b. Identifies the total capacity of residential customer -138
212212 owned or leased solar photovoltaic generation that was installed 139
213213 in the public utility's service territory between July 1, 2022, 140
214214 and December 31, 2023; 141
215215 c. Demonstrates the difference in revenues collected by 142
216216 the public utility as a direct result of the incremental 143
217217 difference in the estimated and actual capacity additions 144
218218 identified in sub-subparagraphs a. and b. and identifies the 145
219219 specific amount that the utility seeks to recover; 146
220220 d. Demonstrates that the relief requested does not cause 147
221221 the public utility to exceed the rate of return on equity 148
222222 authorized by the commission in the public utility's most recent 149
223223 base rate proceeding; and 150
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232232 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
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236236 e. Includes such other reasonably related information as 151
237237 the commission may require by rule. 152
238238 3. Upon receipt of a petition that meets the requirements 153
239239 of subparagraph 2., the commission must determine the amount, if 154
240240 any, that the utility is entitled to recover u nder this 155
241241 paragraph. 156
242242 4. A petition filed under this subsection may not be filed 157
243243 before December 31, 2023, or after March 31, 2024. 158
244244 5. The Legislature provides the limited, extraordinary 159
245245 relief set forth in this paragraph to address the potential 160
246246 impact on a public utility of a previously unanticipated surge, 161
247247 unaccounted for in the utility's last rate case, in the 162
248248 installation of customer -owned or leased renewable generation 163
249249 over the period specified in this subsection. The Legislature 164
250250 makes no findings as to whether the recovery of lost revenues by 165
251251 a public utility is appropriate for any other purpose. 166
252252 Section 2. This act shall take effect July 1, 2022. 167