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Amendment to Assembly Bill No. 270

A.B. 270

ASSEMBLY BILL NO. 270–ASSEMBLYMEN WATKINS, BROOKS,
YEAGER, FUMO; MCCURDY II AND MILLER
M
ARCH 8, 2017

____________
Referred to Committee on Commerce and Labor
SUMMARY—Revises provisions governing net metering. (BDR
58-686)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.

PROPOSED AMENDMENT by INSERT NAME OF ENTITY

EXPLANATION: Matter in (1) blue bold italics is new language in the original bill; (2) variations of green
bold underlining is language proposed to be added in this amendment; (3) red strikethrough is deleted
language in the original bill; (4) purple double strikethrough is language proposed to be deleted in this
amendment; (5) orange double underlining is deleted language in the original bill proposed to be retained in
this amendment.

AN ACT relating to energy; revising provisions governing the
eligibility of certain customers of electric utilities in this
State to participate in net metering; revising provisions
governing the billing of customers of electric utilities in
this State who participate in net metering; and providing
other matters properly relating thereto.
Legislative Counsel’s Digest:
1 “Net metering” is the measure of the difference between the electricity supplied
2 by an electric utility and the electricity generated by a customer-generator that is
3 fed back to the utility. (NRS 704.769) Senate Bill No. 374 of the 2015 Legislative
4 Session (S.B. 374) enacted several revisions to Nevada law governing net metering.
5 Existing law, as amended by S.B. 374, requires each electric utility in this State to
6 offer net metering to customer-generators operating in the service territory of the
7 utility until the date on which the cumulative capacity of all net metering systems in
8 this State for which electric utilities have accepted completed applications is 235
9 megawatts. (NRS 704.773) After the date on which that cumulative capacity is met,
10 existing law requires electric utilities to offer net metering to customer-generators
11 in accordance with a tariff filed by the utility and approved by the Public Utilities
12 Commission of Nevada. (NRS 704.773, 704.7735) Each electric utility in this
13 State was required to file with the Commission the new tariff and a cost-of -service
14 study on or before July 31, 2015. The Commission was required, not later than
15 December 31, 2015, to review each tariff filed by a utility and issue a written order
16 approving or disapproving the proposed tariff. (Section 4.5 of chapter 379, Statutes
17 of Nevada 2015, p. 2154)
18 Generally, this bill provides that each electric utility is required to offer net
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Amendment to Assembly Bill No. 270
19 metering to customer-generators operating in the service territory of the utility
20 under the tariffs, rates and charges in effect before the passage of S.B. 374, except
21 that section 2 of this bill provides that if the customer -generator is billed pursuant
22 to a time-of-use rate schedule, any excess electricity carried forward is added first
to the time-of-use period with the highest rate before the excess electricity is added
23 to any remaining time-of-use periods with lower rates.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1 Section 1. NRS 704.768 is hereby amended to read as follows:
2 NRS 704.768 “Customer-generator” defined. “Customer
3 -generator” means a user of a net metering system or a
4 customer renewable energy system.
5 (Added to NRS by 1997, 777)

6 Sec. 2. NRS Chapter 704 is hereby amended by adding
7 thereto a new section to read as follows:
8 NRS 704.7685 “Net billing” defined. Net billing means
9 measuring the net electricity generated by a customer-
10 generator which is fed back to the distribution system of the
11 utility over the applicable billing period and not used by the
12 customer-generator to offset the customer-generator’s
13 requirements for electricity.
14
15 Sec. 3. NRS Chapter 704 is hereby amended by adding thereto
a new section to read as follows:
16 NRS 704.7715. “Customer renewable energy system” defined.
“Customer renewable energy system” has the same definition as
“net metering system” under NRS 704.771.
17
18 Section 4 1. NRS 704.773 is hereby amended to read as follows:
19 704.773 1. A utility shall offer net metering [:
20 (a) In] to the customer-generators operating within its service
area in accordance with the provisions of this section[,] and
21 NRS 704.774, and 704.775, NRS 704.766 through 704.775 until
such time as the Commission establishes a Renewable Energy
Net Billing Tariff (“Net Billing Tariff”) pursuant to NRS
704.776. If the Commission establishes a Net Billing Tariff
pursuant to NRS 704.766, customer-generators that are not
eligible to take service under the tariff shall continue to be
eligible to take net metering service in accordance with this
section and NRS 704.766 through 704.775. to the customer-
generators operating
22 within its service area . [until the date on which the cumulative
23 capacity of all net metering systems for which all utilities in this
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Amendment to Assembly Bill No. 270

24 State have accepted or approved completed applications for net
25 metering is equal to 235 megawatts.
26 (b) After the date on which the cumulative capacity requirement
27 described in paragraph (a) is met,
28 2. If the net metering system of a customer-generator who
29 accepts the offer of a utility for net metering has a capacity of not
30 more than 25 kilowatts, the utility:
31 (a) Shall offer to make available to the customer-generator an
32 energy meter that is capable of registering the flow of electricity in
33 two directions.
1 (b) May, at its own expense and with the written consent of the
2 customer-generator, install one or more additional meters to monitor
3 the flow of electricity in each direction.
4 (c) Except as otherwise provided in subsection 5, shall not
5 charge a customer-generator any fee or charge that would increase
6 the customer-generator’s minimum monthly charge to an amount
7 greater than that of other is different than the fees and charges
8 assessed to customers of the utility in the same rate
9 class as the customer-generator. The electricity
10 generated by a customer-generator and fed back to the utility must
11 not be used to reduce the minimum monthly charge of the
12 customer-generator.
13 3. If the net metering system of a customer-generator who
14 accepts the offer of a utility for net metering has a capacity of more
15 than 25 kilowatts, the utility:
16 (a) May require the customer-generator to install at its own
17 cost:
18 (1) An energy meter that is capable of measuring generation
19 output and customer load; and
20 (2) Any upgrades to the system of the utility that are required
21 to make the net metering system compatible with the system of the
22 utility.
23 (b) Except as otherwise provided in paragraph (c) and
24 subsection 5, may charge the customer-generator any applicable fee
25 or charge charged to other customers of the utility in the same rate
26 class as the customer-generator, including, without limitation,
customer, demand and facility charges.
27 (c) Shall not charge the customer-generator any standby charge.
28 At the time of installation or upgrade of any portion of a net
29 metering system, the utility must allow a customer- generator
30 governed by this subsection to pay the entire cost of the installation
31 or upgrade of the portion of the net metering system.
32 (d) Shall not place customer-generators in any other rate
class other than the rate class to which the customer-generator
would belong in the absence of having a net metering system, or
apply any fees or charges that are different than the fees and
charges assessed to customers of the same rate class without net
metering systems.
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Amendment to Assembly Bill No. 270

33 4. If the net metering system of a customer-generator is a net
34 metering system described in paragraph (b) or (c) of subsection 1 of
35 NRS 704.771 and:
36 (a) The system is intended primarily to offset part or all of the
37 customer-generator’s requirements for electricity on property
38 contiguous to the property on which the net metering system is
39 located; and
40 (b) The customer-generator sells or transfers his or her interest
41 in the contiguous property,
42 the net metering system ceases to be eligible to participate in net
43 metering.
44 5. A utility shall assess against a customer-generator:
45 (a) If applicable, the universal energy charge imposed pursuant
46 to NRS 702.160; and
47 (b) Any charges imposed pursuant to chapter 701B of NRS or
48 NRS 704.7827 or 704.785 which are assessed against other
1 customers in the same rate class as the customer-generator. [; and
2 (c) The charges or rates, if any, which the Commission
3 determines must be assessed against the customer-generator
4 pursuant to any tariff submitted to and approved by the Commission
5 pursuant to NRS 704.7735.]
6 For any such charges calculated on the basis of a kilowatt-hour
7 rate, the customer-generator must only be charged with respect to
8 kilowatt- hours of energy delivered by the utility to the
9 customer-generator.
10 6. The Commission shall adopt regulations prescribing the
11 form and substance for a net metering tariff and a standard net
12 metering contract. The regulations must include, without limitation:
13 (a) The particular provisions, limitations and responsibilities of
14 a customer- generator which must be included in a net metering tariff
15 with regard to:
16 (1) Metering equipment;
17 (2) Net energy metering and billing; and
18 (3) Interconnection,
19 based on the allowable size of the net metering system.
20 (b) The particular provisions, limitations and responsibilities of
21 a customer -generator and the utility which must be included in a
22 standard net metering contract.
23 (c) A timeline for processing applications and contracts for net
24 metering applicants.
25 (d) Any other provisions the Commission finds necessary to
26 carry out the provisions of NRS 704.766 to 704.775, inclusive.
27 Sec. 2. NRS 704.775 is hereby amended to read as follows:
28 704.775 1. The billing period for net metering must be a
29 monthly period.
30 2. The net energy measurement must be calculated in the
31 following manner:
32 (a) The utility shall measure, in kilowatt-hours, the net
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33 electricity produced or consumed during the billing period, in
34 accordance with normal metering practices.
35 (b) If the electricity supplied by the utility exceeds the electricity
36 generated by the customer-generator which is fed back to the utility
37 during the billing period, the customer-generator must be billed for
38 the net electricity supplied by the utility.
39 (c) If the electricity generated by the customer-generator which
40 is fed back to the utility exceeds the electricity supplied by the
41 utility during the billing period:
42 (1) Neither the utility nor the customer-generator is entitled
43 to compensation for the electricity provided to the other during the
44 billing period.
45 (2) The excess electricity which is fed back to the utility
46 during the billing period is carried forward to the next billing period
47 as an addition to the kilowatt-hours generated by the customer-
48 generator in that billing period. If the customer- generator is billed
49 for electricity pursuant to a time- of-use rate schedule, the excess
50 electricity carried forward must be added first to the [same] time-of-
51 use period [as the] with the highest rate before the excess electricity
52 is added to any remaining time- of-use period [in which it was
53 generated unless the subsequent billing period lacks a corresponding
54 time-of-use period. In that case, the excess electricity carried
55 forward must be apportioned evenly among the available time-of-
56 use periods.] with a lower rate.
57 (3) Excess electricity may be carried forward to subsequent
58 billing periods indefinitely, but a customer-generator is not entitled
59 to receive compensation for any excess electricity that remains if:
60 (I) The net metering system ceases to operate or is
61 disconnected from the utility’s transmission and distribution
62 facilities;
63 (II) The customer-generator ceases to be a customer of
64 the utility at the premises served by the net metering system; or
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1 (III) The customer-generator transfers the net metering
2 system to another person.
3 (4) The value of the excess electricity must not be used to
4 reduce any other fee or charge imposed by the utility.
5 3. If the cost of purchasing and installing a net metering system
6 was paid for:
7 (a) In whole or in part by a utility, the electricity generated by
8 the net metering system shall be deemed to be electricity that the
9 utility generated or acquired from a renewable energy system for the
10 purposes of complying with its portfolio standard pursuant to NRS
11 704.7801 to 704.7828, inclusive.
12 (b) Entirely by a customer -generator, the Commission shall
13 issue to the customer-generator portfolio energy credits for use
14 within the system of portfolio energy credits adopted by the
15 Commission pursuant to NRS 704.7821 and 704.78213 equal to the
16 electricity generated by the net metering system.
17 4. A bill for electrical service is due at the time established
18 pursuant to the terms of the contract between the utility and the
19 customer -generator.
20
21 Sec. 5. Chapter 704 of the NRS is hereby amended by adding
thereto a new subchapter 704.776 to read as follows:
22 704.776 “Renewable Energy Net Billing Tariff.”
1. Each utility shall offer net metering in accordance with
NRS 704.766 through 704.775 to customer-generators who
submit applications to install net metering systems within its
service territory until such time as the Commission has
established a renewable energy net billing tariff (“net billing
tariff”) pursuant to subsections 2 and 3.
2. Upon approval of the net billing tariff, each utility shall
offer net billing to customer-generators who submit applications
to install customer renewable energy systems within its service
territory.
3. For the purposes of evaluating and approving any net
billing tariff filed by a utility with the Commission pursuant to
subsection 1 and otherwise carrying out the provisions of this
section, the Commission:
(a) Shall establish a just and reasonable per kilowatt hour rate
for electricity that is fed back to the utility from a customer
renewable energy system, where such just and reasonable
rate shall incorporate:
(1) The following electric grid and direct benefits provided
by a customer renewable energy system, the total value
of which shall not be less than $0.09 per kilowatt hour:
a. Avoided energy;
b. Avoided generation capacity;
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Amendment to Assembly Bill No. 270

c. Avoided transmission and distribution
capacity;
d. Fuel cost hedging;
e. Avoided transmission and distribution
upgrades;
f. Voltage support;
g. Line losses; and
h. Ancillary services.
(2) The following societal benefits provided by a customer
renewable energy system, the total value of which shall
be not less than $0.02 per kilowatt hour:
a. Avoided criteria pollutants;
b. Avoided carbon dioxide emissions;
c. Avoided water consumption;
d. Environmental benefits; and
e. Direct and indirect economic benefits to the
state, including job creation.

(b) Shall not approve a net billing tariff filed pursuant to
subsection 1 that unreasonably shifts costs from customer-
generators to other customers of the utility. The Commission’s
measure of reasonableness shall consider the benefits listed
under subsection 2(a) and other related policies of this state
supporting renewable energy.
(c) Shall ensure that the tariff made available to customer-
generators results in continued expansion of deployment of
customer renewable energy systems in the state.
(d) Shall not place customer-generators in any other rate class
other than the rate class to which the customer-generator
would belong in the absence of having a customer renewable
energy system, or apply any fees or charges that are different
than the fees and charges assessed to customers of the same
rate class without customer renewable energy systems.

3. Customer-generators that submit a request to interconnect a
customer renewable energy system under a net billing tariff
approved by the Commission pursuant to subsection 1 shall be
allowed to continue net billing pursuant to the net billing tariff that
was approved on the date of interconnection for the life of the
customer renewable energy system or 20 years, whichever is longer.
Customer-generators that submit a request to interconnect a net
metering system prior to the date on which the Commission
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Amendment to Assembly Bill No. 270

approves a net billing tariff pursuant to subsection 1 shall be allowed
to continue net metering pursuant to NRS 704.766 through NRS 704-
775 for the life of the net metering system or 20 years, whichever is
longer.

23 Sec. 6 3. NRS 704.7735 is hereby repealed.
24 Sec. 74. This act becomes effective upon passage and approval.

TEXT OF REPEALED SECTION

704.7735 Utility required to offer net metering in accordance
with tariff after certain cumulative capacity requirements are
met.
1. Except as otherwise provided in subsection 3, each utility
shall, in accordance with a tariff filed by the utility and approved by
the Commission, offer net metering to customer -generators who
submit applications to install net metering systems within its service
territory after the date on which the cumulative capacity requirement
described in paragraph (a) of subsection 1 of NRS 704.773 is met.
2. For the purposes of evaluating and approving any tariff filed
with the Commission pursuant to subsection 1 and otherwise
carrying out the provisions of this section, the Commission:
(a) May establish one or more rate classes for customer-generators.

(b) May establish terms and conditions for the participation by
customer-generators in net metering, including, without limitation,
limitations on enrollment in net metering which the Commission
determines are appropriate to further the public interest.

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(c) May close to new customer-generators a tariff filed
pursuant to subsection 1 and approved by the Commission if the
Commission determines that closing the tariff to new customer -
generators is in the public interest.
(d) May authorize a utility to establish just and reasonable
rates and charges to avoid, reduce or eliminate an unreasonable
shifting of costs from customer-generators to other customers of
the utility.
(e) Shall not approve a tariff filed pursuant to subsection 1 or
authorize any rates or charges for net metering that unreasonably
shift costs from customer-generators to other customers of the
utility.
3. In approving any tariff submitted pursuant to subsection 1,
the Commission shall determine whether and the extent to which
any tariff approved or rates or charges authorized pursuant to this
section are applicable to customer-generators who, on or before
the date on which the cumulative capacity requirement described
in paragraph (a) of subsection 1 of NRS 704.773 is met,
submitted a complete application to install a net metering system
within the service territory of a utility.
H