44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO PUBLIC UTILITIES; AMENDING THE NMSA 1978 TO ESTABLISH A NET METERING SYSTEM TO ENCOURAGE SELF-GENERATION OF ELECTRICITY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the Public Utility Act is enacted to read:

"[NEW MATERIAL] NET METERING SYSTEM FOR SELF-GENERATION ESTABLISHED--FINDINGS--DEFINITIONS--OPERATION OF SYSTEM.--

A. The legislature finds that it is in the public interest to:

(1) allow self-generation of electricity as a customer choice;

(2) encourage private investment in renewable energy resources, cogeneration and other clean, efficient electricity generation technologies;

(3) stimulate economic growth in the state; and

(4) enhance the continued diversification of energy resources in the state.

B. As used in this section:

(1) "electric utility" means an electric utility subject to the regulation of the public regulation commission and engaged in distributing electricity in the state;

(2) "net metering" means measuring by use of a single meter capable of registering flow in both directions the difference between the electricity supplied by an electric utility and the electricity generated by a self-generation source that is fed back to the electric utility during a billing period;

(3) "net metering system" means a facility that produces electrical energy and that is:

(a) primarily intended to offset any part or all of a self-generator's requirements for electricity;

(b) located on the self-generator's premises; and

(c) operated in parallel with an electric utility's distribution facilities;

(4) "self-generation" means the production of electricity using a facility owned or controlled by an end-use customer of electricity for his own consumption on the same or adjoining premises; and

(5) "self-generator" means the end-use customer who engages in self-generation.

C. An electric utility shall offer net metering to all customers and shall not assess any fee or charge to a self-generator that increases his minimum monthly charge above that paid by other customers in the same rate class.

D. An electric utility may, at its own expense and with the prior written consent of a self-generator, install a meter or meters to monitor the flow of electricity to and from the self-generator.

E. A net metering system shall satisfy applicable safety and power quality standards established by the national electrical code, the underwriters laboratories, incorporated, and the institute of electrical and electronic engineers.

F. Subject to compliance by the self-generator with the requirements of Subsection E of this section and to ensure that compliance is not unduly burdensome and expensive, a self-generator is not required to comply with other standards, perform additional tests, install additional controls or be covered by additional liability insurance.

G. Net metering is to be accomplished in accordance with the terms of this section and shall be determined by the electric utility's measurement of the electricity produced in relation to the electricity consumed by the self-generator during a billing period in accordance with established metering and billing practices. If the electricity consumed by the self-generator exceeds the electricity generated by the self-generator in the billing period, the self-generator shall be billed for the net difference of electricity supplied by the electric utility at the same rate as other customers in the same rate class. If the electricity generated by the self-generator exceeds the electricity consumed by the self-generator, the electric utility shall bill the self-generator the applicable customer charges for the billing period and shall credit the self-generator for the net difference of electricity supplied by the self-generator during the billing period reflecting the net difference as a kilowatt-hour credit on the self-generator's bill for the next billing period.

H. On January 1 of each year, any kilowatt-hour credit to a self-generator shall be reduced to zero, without compensation or credit to the self-generator.

I. The public regulation commission shall promulgate rules to implement and direct compliance with this section on or before June 19, 1999."