DEFINITIONS
Billing period
The billing period for net metering will be the same as the
billing period under the customer's applicable standard rate schedule.
Biomass facility
A facility 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.
Commercial customer
A customer served under a utility's standard rate schedule
applicable to commercial service.
Commission
The Arkansas Public Service Commission.
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.
Fuel cell facility
A facility that converts the chemical energy of a fuel directly
to direct current electricity without intermediate combustion or thermal
cycles.
Geothermal facility
An electric generating facility in which the prime mover is a
steam turbine. The steam is generated in the earth by heat from the earth's
magma.
Hydroelectric facility
An electric generating facility in which the prime mover is a
water wheel. The water wheel is driven by falling water.
Micro turbine facility
A facility that uses a small combustion turbine to produce
electricity.
Net metering
Measuring the difference between electricity supplied by an
electric utility and the electricity generated by a net metering customer and
fed back to the electric utility over the applicable billing period.
Net metering facility
A facility for the production of electrical energy that:
(A) Uses solar, wind, hydroelectric,
geothermal, or biomass resources to generate electricity including, but not
limited to, fuel cells and micro turbines that generate electricity if the fuel
source is entirely derived from renewable resources; and,
(B) Has a generating capacity of not more
than twenty-five (25) kilowatts for residential or one hundred (100) kilowatts
for commercial or agricultural use; and,
(C) Is located in Arkansas; and,
(D) Can operate in parallel with an electric
utility's existing transmission and distribution facilities; and,
(E) Is intended primarily to offset part or
all of the net-metering customer requirements for electricity; or,
(F) Is designated by the Commission as
eligible for net metering service pursuant to Ark. Code Ann. §
23-18-604(B)(3).
Parallel operation
The operation of on-site generation by a customer while the
customer is connected to the utility's distribution system.
Residential customer
A customer served under a utility's standard rate schedules
applicable to residential service. Solar facility
A facility in which electricity is generated through the
collection, transfer and/or storage of the sun's heat or light.
Wind facility
A facility in which an electric generator is powered by a
wind-driven turbine.
SECTION 1.
GENERAL PROVISIONS
Rule 1.01.
Purpose
The purpose of these Rules is to establish rules for net energy
metering and interconnection.
Rule
1.02.
Statutory Provisions
A. These Rules are developed pursuant to the
Arkansas Renewable Energy Development Act of 2001 (Act 1781 of 2001).
B. These Rules are promulgated pursuant to
the Commission's authority under Ark. Code Ann. §§
23-2-301,
23-2-304(3),
23-2-305, and
23-18-604.
C. Nothing in these Rules shall govern,
limit, or restrict the Commission's authority under Ark. Code Ann. §
23-18-604.
Rule 1.03.
Other
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 2.01.
Electric
Utility Requirements
An electric utility that offers residential or commercial
electrical service, or both, shall allow net metering facilities to be
interconnected using a standard meter capable of registering the flow of
electricity in two (2) directions.
Rule
2.02.
Metering 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.
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 utility either before or at the
time the net metering facility is placed in operation in accordance with these
Rules.
Rule 2.03.
New or Additional Charges
A. Any new or additional charge that 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 Rule
2.03.B.
B. Following notice and
opportunity for public comment, the Commission may authorize an electric
utility to assess a net metering customer a greater fee or charge, of any type,
if the electric utility's direct costs of interconnection and administration of
net-metering outweigh the distribution system, environmental and public policy
benefits of allocating the costs among the electric utility's entire customer
base.
Rule 2.04.
Billing 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 kilowatthour (kWh) units of a customer's bill are affected.
B.
I f 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 exceeds the
kWhs supplied by the electric utility to the net metering customer during the
applicable billing period, the customer shall not receive any compensation from
the utility for such net metering excess delivered kWhs during the billing
period.
SECTION
3.
INTERCONNECTION OF NET METERING FACILITIES TO EXISTING
ELECTRIC POWER SYSTEMS
Rule 3.01.
Requirements 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 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 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 utility's
system.
G. If the utility's
existing facilities are not adequate to interconnect with the net metering
facility, any changes will be performed in accordance with the Utility's
Extension of Facilities Tariff.
Rule
3.02.
Requirements for Modifications or Changes
to a Net Metering Facility
Modifications or changes made to a net metering facility shall
be evaluated by the electric utility prior to being made. The net metering
customer shall provide detailed information describing the modifications or
changes to the electric utility in writing prior to making the modifications to
the net metering facility. The utility shall review the proposed changes to the
facility and provide the results of its evaluation to the customer 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.
SECTION 4.
STANDARD
INTERCONNECTION AGREEMENT AND STANDARD NET METERING TARIFF FOR NET METERING
FACILITIES
Rule 4.01.
Standard Interconnection Agreement 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), 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. 86-033-A by
March 15 of each year, a report listing all existing net metering facilities
and the generator rating and, where applicable, the inverter power rating of
each net metering facility as of the end of the previous calendar year.
Appendix A
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Appendix B
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