TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING
VA.R. Doc. No. R10-2372; Filed April 22, 2010, 1:15 p.m. 
TITLE 18. PROFESSIONAL AND OCCUPATIONAL LICENSING
VA.R. Doc. No. R10-2358; Filed April 13, 2010, 2:33 p.m. 
TITLE 20. PUBLIC UTILITIES AND TELECOMMUNICATIONS
        REGISTRAR'S NOTICE: The  State Corporation Commission is exempt from the Administrative Process Act in  accordance with § 2.2-4002 A 2 of the Code of Virginia, which exempts  courts, any agency of the Supreme Court, and any agency that by the  Constitution is expressly granted any of the powers of a court of record.
         Title of Regulation: 20VAC5-315. Regulations  Governing Net Energy Metering (amending 20VAC5-315-10, 20VAC5-315-20,  20VAC5-315-40, 20VAC5-315-50, 20VAC5-315-70).
    Statutory Authority: §§ 12.1-13 and 56-594 of the  Code of Virginia.
    Effective Date: April 28, 2010.
    Agency Contact: Cody Walker, Assistant Director, Energy  Division, State Corporation Commission, P.O. Box 1197, Richmond, VA 23218,  telephone (804) 371-9611, FAX (804) 371-9350, or email  cody.walker@scc.virginia.gov.
    Summary:
    Pursuant to Chapter 804 of the 2009 Acts of Assembly,  § 56-594 of the Code of Virginia was amended to (i) authorize utilities to  elect a capacity limit for participation by nonresidential customers in the net  energy metering program that exceeds the existing limit of 500 kW; (ii) permit  customers who are served on time-of-use tariffs that have electricity supply  demand charges contained within the electricity supply portion of the  time-of-use tariff to participate as customer-generators; and (iii) provide  that a participating customer-generator owns any renewable energy certificate  associated with its generation of electricity and has a one-time option to sell  the certificates to its supplier at a rate established by the State Corporation  Commission, with the supplier's costs of acquiring the certificates recoverable  under the Renewable Energy Portfolio Standard rate adjustment clause or through  the supplier's fuel adjustment clause.
    The amendments to the rules reflect the statutory increase  of allowable total capacity of net metering customers, permit certain  time-of-use customers to participate as customer-generators, and establish a  mechanism for eligible customer-generators to sell renewable energy  certificates to their electric distribution company at rates established by the  State Corporation Commission. Changes from the proposed regulation include changing  the definitions of "demand charge-based time-of-use tariff" and  "energy service provider" to refer to electricity supply service,  rather than electricity supply. In addition, the proposed rules have been  modified to clarify that an electric distribution company may change the  otherwise-applicable alternating current capacity limit by tariff for  nonresidential customers only. In addition, the proposed rules have been  amended to provide that a cooperative purchasing renewable energy certificates  may require that the certificates be certified, tradable, marketable  commodities or instruments issued by a regional transmission entity. Finally,  the proposed rules have been revised to clarify that a renewable energy  certificate represents the total output of the customer's renewable fuel  generator, and not the net power produced. 
    AT RICHMOND, APRIL 13, 2010
    COMMONWEALTH OF VIRGINIA, ex rel. 
    STATE CORPORATION COMMISSION
    CASE NO. PUE-2009-00105
    Ex Parte: In the matter of amending regulations
  governing net energy metering
    ORDER ADOPTING REGULATIONS
    The Regulations Governing Net Energy Metering, 20 VAC  5-315-10 et seq. ("Net Energy Metering Rules"), adopted by the State  Corporation Commission ("Commission") pursuant to § 56-594 of  the Virginia Electric Utility Regulation Act ("Regulation Act"), and  Chapter 23 (§ 56-576 et seq.) of Title 56 of the Code of  Virginia ("Code"), establish the requirements for participation by an  eligible customer‑generator in net energy metering in the Commonwealth.  The Net Energy Metering Rules include conditions for interconnection and  metering, billing, and contract requirements between net metering customers,  electric distribution companies, and energy service providers.
    On November 16, 2009, the Commission entered an Order  Establishing Proceeding to amend the Net Energy Metering Rules  ("Order") to reflect statutory changes enacted by Chapter 804 of the  2009 Acts of Assembly ("Chapter 804"), which amended § 56-594 of  the Code to: (1) authorize utilities to elect a capacity limit for participation  by nonresidential customers in the net energy metering program that exceeds the  existing limit of 500 kW; (2) permit customers who are served on  time-of-use tariffs that have electricity supply demand charges contained  within the electricity supply portion of the time-of-use tariff to participate  as customer-generators; and (3) provide that a participating  customer-generator owns any renewable energy certificate ("REC" or  "certificate") associated with its generation of electricity, and  provides for a one-time option to sell the certificates to its supplier at a  rate established by the Commission, with the utility's costs of acquiring the  certificates recoverable under the Renewable Energy Portfolio Standard rate  adjustment clause or through the supplier's fuel adjustment clause.
    The Commission appended to its Order proposed amendments  revising the Net Energy Metering Rules ("Proposed Rules"), which were  prepared by the Commission Staff to reflect the permitted increase in the  nonresidential capacity, to permit certain time-of-use customers to participate  as customer-generators, and to establish a mechanism for eligible  customer-generators to sell RECs to their electric distribution company at  rates established by the Commission.
    Notice of the proceeding was published in the Virginia  Register of Regulations on December 7, 2009 and in newspapers of general  circulation throughout the Commonwealth.1 Interested persons  were directed to file any comments and requests for hearing on the Proposed  Rules on or before December 21, 2009. 
    The Virginia, Maryland & Delaware Association of Electric  Cooperatives2, Virginia Electric and Power Company ("Virginia  Power"), and the Interstate Renewable Energy Council ("IREC")  filed timely comments. The Commission also received public comments from  several individuals including some who participate in net metering. No requests  for hearing on the Proposed Rules were filed.
    NOW THE COMMISSION, upon consideration of the record and  applicable statutes, is of the opinion and finds that the regulations attached  hereto as Appendix A should be adopted as final rules. To the extent parties  have requested changes to the Proposed Rules that go beyond the scope of such  rules, we will not expand the scope of this proceeding to consider issues  beyond those required to implement the amendments to § 56-594 of the  Regulation Act.
    The Proposed Rules define "Demand charge-based  time-of-use tariff" as "a retail tariff for electric supply service  that has two or more time-of-use tiers for energy-based charges and an  electricity supply demand (kilowatt) charge" and define "Energy  service provider" as the entity providing electricity supply to a net  metering customer. Virginia Power proposes that each definition be changed to  refer to electricity supply service, rather than electricity supply. We agree,  and the Proposed Rules will be amended accordingly. Virginia Power also  requests that the term "generation demand charge" be added to the  definition of "Demand charge-based time-of-use tariff." We disagree  that such a change is necessary.
    As required by Chapter 804, the Proposed Rules revised the  definition of "Renewable fuel generator" to provide that an electric  distribution company may change the otherwise-applicable alternating current  capacity limit for certain customers by tariff. Virginia Power requests that  the Proposed Rules be changed to clarify that the electric distribution company  may only elect a higher capacity limit for nonresidential customers. Although  we believe that the language in the Proposed Rules is consistent with the  statutory language, the clarification requested by Virginia Power is  reasonable, and we will amend the Proposed Rules accordingly.
    The Cooperatives argue that the Commission has not provided  adequate guidance regarding the mechanism to be used in setting higher capacity  limits for nonresidential customers, and express concern that setting a fixed  higher capacity limit (rather than, for example, a variable limit based on the  size of the nonresidential customer's load) could lead to abuse of the net  metering program through installation of generation in excess of that required  to offset the customer's load. The Commission does not believe that such a  change in the Proposed Rules, which the Cooperatives concede are consistent  with the statute, is necessary at this time. The Commission will review such  matters as they arise on a case-by-case basis.
    The Proposed Rules define "Renewable Energy Certificate  (REC)" as "the renewable energy attributes associated with the  production of one megawatt-hour (MWh) of electrical energy generated by a  renewable fuel generator." The Cooperatives suggest that this definition  does not provide a sufficient description for purposes of recognizing and  establishing its value, and argue that a REC only has value if it is a  tradable, marketable commodity. We find, however, that the scope of the  proposed definition is reasonable for purposes of these rules. IREC proposes  that RECs be defined in terms of kWh produced, rather than MWh, given that most  customers will produce only a fraction of a MWh each year. The extent of the  Commission's regulations, however, are set by the statute, which does not  provide for fractional RECs. Furthermore, the change proposed by IREC would not  eliminate the need to account for fractional RECs, as there would still remain  fractions of such kWh-based RECs.
    IREC requests that the Commission eliminate the Conditions of  Interconnection set forth in 20 VAC 5-315-40, and instead incorporate  the distributed generation interconnection standards established in Case No.  PUE-2008-00004. We note that the distributed generation and net metering  interconnection rules are based on different statutory standards and have  evolved largely independently. Thus, the Commission believes the existing  regulatory regime remains appropriate. We will not adopt IREC's  recommendations.
    The Proposed Rules provide that a net metering customer owns  any RECs associated with its renewable fuel generator and may sell those RECs  to any willing buyer at any time. The Proposed Rules further provide that the  net metering customer has a one-time option at the time of signing a power  purchase agreement with its supplier to require the purchase, by the supplier,  of all generated RECs over the duration of the power purchase agreement. The  Cooperatives have requested clarification regarding whether a REC represents  the total energy produced or the net power produced. We will revise the  Proposed Rules to clarify that a REC represents the total output of the  customer's renewable fuel generator.
    Virginia Power proposes that the Rules be clarified to  provide that the supplier is obligated to purchase only "generated RECs  associated with excess generation purchased by the company in accordance with a  power purchase agreement." Chapter 804, however, is quite explicit on this  point, providing that "the customer-generator shall have a one-time option  to sell the renewable energy certificates associated with such electrical  generating facility to its supplier and be compensated at an amount that is  established by the Commission to reflect the value of such renewable energy  certificates." The statute and the Proposed Rules provide that the  supplier may be required to purchase all RECs associated with the customer's  generating facility, so we decline to make the change requested by Virginia  Power.
    The Proposed Rules require that the rate of the payment by  the supplier for the customer's RECs shall be the daily unweighted average of  the "CR" component of Virginia Power's Rider G tariff in effect over  the period for which the rate of payment for the excess generation is  determined. Virginia Power states that it is concerned that future changes to  its tariff may require changes to the rules, and suggests that the Proposed  Rules be revised to provide more generally that the applicable rate "shall  be the daily unweighted average of the applicable REC commodity price component  of that supplier's retail renewable energy tariff as approved by the  Commission, if the utility has such a tariff." The Proposed Rules, which  apply the CR component of the Virginia Power rate in effect at the time of  delivery, recognize that the CR rate will change from time to time. The  Commission believes that this approach is reasonable, and will not adopt the  change to the rules proposed by Virginia Power.
    The Cooperatives believe the Proposed Rules go beyond the  statutory mandate by providing that a customer may sell its RECs to a willing  buyer at any time. The Commission disagrees. The statute provides that the customer  owns the RECs associated with its generating facility. As such, the customer is  free to sell such RECs to any third party upon mutually agreeable terms. While  only the supplier is required to buy such RECs, any third party remains  free to do so voluntarily. The Cooperatives also complain that while the  statute speaks of the customer's one-time option to sell the RECs to its  supplier, the Proposed Rules require the supplier to purchase the RECs. The  Proposed Rules are fully consistent with the statute, which provides the  customer a right to sell the RECs to the supplier at a Commission-defined  price. If the customer has a right to sell, it is clear that the supplier has a  corresponding obligation to purchase. The Commission will not revise the Proposed  Rules as requested by the Cooperatives.
    The Cooperatives complain that the Proposed Rules'  requirement that suppliers develop and implement billing and accounting systems  to deal with multiple time-of-use tiers may prove costly and discouraging. The  Cooperatives further state that the Proposed Rules are ambiguous regarding how  credits and charges over time-of-use tiers are to be accounted for. The  Commission agrees that time-of-use rates for net metering customers is likely  to be complicated, and may require special billing procedures by the supplier  for such customers. However, Chapter 804 mandates that the Commission's  regulations permit customers that are served on time-of-use tariffs that have  electricity supply demand charges contained within the electricity supply  portion of the time-of-use tariffs to participate as eligible  customer-generators. The Proposed Rules are consistent with this statutory  mandate. 
    Finally, the individual customer-generators who provided  comments suggest that the Proposed Rules are complicated and suggest several  changes to make the rules easier to understand. The Commission is sympathetic  with these concerns, and agrees that the rules, as well as the statute upon  which the rules are based, are complex. However, given that the Proposed Rules  are consistent with Chapter 804, the Commission will not make further revisions  at this time.
    Accordingly, IT IS ORDERED THAT:
    (1) The Regulations Governing Net Energy Metering are  hereby adopted as shown in Appendix A to this Order, effective as of April 28,  2010.
    (2) A copy of this Order with Appendix A including the  Regulations Governing Net Energy Metering shall be forwarded to the Registrar  of Regulations for publication in the Virginia Register of Regulations.
    (3) On or before June 2, 2010, all electric utilities in  the Commonwealth subject to Chapter 10 (§ 56-232 et seq.) of Title 56 of  Code of Virginia shall file with the Commission's Division of Energy Regulation  any revised tariff provisions necessary to implement the regulations as adopted  herein.
    (4) There being nothing further to come before the  Commission, this case shall be removed from the docket and the papers filed  herein be placed in the file for ended causes.
    AN ATTESTED COPY hereof shall be sent by the Clerk of the  Commission to all electric distribution companies licensed in Virginia as shown  on Appendix A, hereto; and a copy shall also be sent to the Commission's Office  of General Counsel and Divisions of Energy Regulation, Public Utility  Accounting, and Economics and Finance.
    _______________________
    1 See Memoranda from Laura S. Martin and Affidavits of  Publication, filed in this docket on December 10, 2009.
    2 The Association submitted its comments along with and  on behalf of its Virginia members:  A&N Electric Cooperative, BARC Electric  Cooperative, Central Virginia Electric Cooperative, Community Electric  Cooperative, Craig-Botetourt Electric Cooperative, Mecklenburg Electric  Cooperative, Northern Neck Electric Cooperative, Northern Virginia Electric  Cooperative, Prince George Electric Cooperative, Rappahannock Electric  Cooperative, Shenandoah Valley Electric Cooperative, and Southside Electric  Cooperative (collectively, the "Cooperatives").
    20VAC5-315-10. Applicability and scope.
    These regulations are promulgated pursuant to the provisions  of § 56-594 of the Virginia Electric Utility Restructuring Regulation  Act (§ 56-576 et seq. of the Code of Virginia). They establish requirements  intended to facilitate net energy metering for customers owning and operating,  or contracting with persons to own or operate, or both, an electrical generator  that uses renewable energy, as defined by § 56-576 of the Code of Virginia  as its total fuel source. These regulations will standardize the  interconnection requirements for such facilities and will govern the metering,  billing, payment and contract requirements between net metering customers,  electric distribution companies and energy service providers.
    20VAC5-315-20. Definitions.
    The following words and terms when used in this chapter shall  have the following meanings unless the context clearly indicates otherwise:
    "Billing period" means, as to a particular  customer, the time period between the dates on two meter readings  upon which the electric distribution company or and the  energy service provider, as the case may be, issues calculate the  customer's bills.
    "Billing period credit" means, for a  nontime-of-use net metering customer, the quantity of electricity generated and  fed back into the electric grid by the customer's renewable fuel generator in  excess of the electricity supplied to the customer over the billing period. For  time-of-use net metering customers, billing period credits are determined  separately for each time-of-use tier.
    "Demand charge-based time-of-use tariff" means a  retail tariff for electric supply service that has two or more time-of-use  tiers for energy-based charges and an electricity supply demand (kilowatt)  charge.
    "Electric distribution company" means the entity  that owns and/or operates the distribution facilities delivering electricity to  the net metering customer's premises.
    "Energy service provider (supplier)" means  the entity providing electric energy electricity supply [ service ]  to a net metering customer, either as a tariffed, or  competitive, or default service pursuant to § 56-585 of the Code  of Virginia.
    "Excess generation" means the amount by which  of electricity generated by the renewable fuel generator exceeds in  excess of the electricity consumed by the net metering customer for  over the course of the net metering period. For time-of-use net  metering customers, excess generation is determined separately for each  time-of-use tier.
    "Net metering customer (customer)" means a  customer owning and operating, or contracting with other persons to own or  operate, or both, a renewable fuel generator under a net metering service  arrangement.
    "Net metering period" means each successive  12-month period beginning with the first meter reading date following the date  of final interconnection of the renewable fuel generator with the electric  distribution company's facilities.
    "Net metering service" means providing retail  electric service to a customer operating a renewable fuel generator and  measuring the difference, over the net metering period, between  electricity supplied to a net metering the customer from the  electric grid and the electricity generated and fed back to the electric grid  by the net metering customer, using a single meter or, as provided in  20VAC5-315-70, additional meters.
    "Person" means any individual, corporation,  partnership, association, company, business, trust, joint venture, or other  private legal entity and the Commonwealth or any municipality.
    "Renewable Energy Certificate (REC)" represents  the renewable energy attributes associated with the production of one  megawatt-hour (MWh) of electrical energy generated by a renewable fuel  generator.
    "Renewable fuel generator" means an electrical  generating facility that:
    1. Has an alternating current capacity of not more than 10  kilowatts for residential customers and not more than 500 kilowatts for  nonresidential customers unless the electric distribution company has chosen  a higher capacity limit [ for nonresidential customers ] in  its net metering tariff;
    2. Uses renewable energy, as defined by § 56-576 of the  Code of Virginia, as its total fuel source;
    3. The net metering customer owns and operates, or has  contracted with other persons to own or operate, or both;
    4. Is located on the customer's premises and is connected to  the customer's wiring on the customer's side of its interconnection with the  distributor;
    5. Is interconnected pursuant to a net metering arrangement  and operated in parallel with the electric distribution company's facilities;  and
    6. Is intended primarily to offset all or part of the net  metering customer's own electricity requirements.
    "Time-of-use net metering customer (time-of-use  customer)" means a net metering customer receiving retail electricity  supply service under a demand charge-based time-of-use tariff.
    "Time-of-use period" means an interval of time  over which the energy (kilowatt-hour) rate charged to a time-of-use customer  does not change.
    "Time-of-use tier (tier)" means all time-of-use  periods given the same name (e.g., on-peak, off-peak, critical peak, etc.) for  the purpose of time-differentiating energy (kilowatt-hour)-based charges. The  rates associated with a particular tier may vary by day and by season.
    20VAC5-315-40. Conditions of interconnection.
    A. A prospective net metering customer may begin operation of  his renewable fuel generator on an interconnected basis when:
    1. The net metering customer has properly notified both the  electric distribution company and energy service provider (in accordance with  20VAC5-315-30) of his intent to interconnect.
    2. If required by the electric distribution company's net  metering tariff, the net metering customer has installed a lockable, electric  distribution company accessible, load breaking manual disconnect switch.
    3. A licensed electrician has certified, by signing the  commission-approved notification form, that any required manual disconnect  switch has been installed properly and that the renewable fuel generator has  been installed in accordance with the manufacturer's specifications as well as  all applicable provisions of the National Electrical Code.
    4. The vendor has certified, by signing the  commission-approved notification form, that the renewable fuel generator being  installed is in compliance with the requirements established by Underwriters  Laboratories or other national testing laboratories in accordance with IEEE  Standard 1547, Standard for Interconnecting Distributed Resources with Electric  Power Systems, July 2003.
    5. In the case of static inverter-connected renewable fuel  generators with an alternating current capacity in excess of 10 kilowatts, the  net metering customer has had the inverter settings inspected by the electric  distribution company. The inspecting electric distribution company may impose a  fee on the net metering customer of no more than $50 for such inspection.
    6. In the case of nonstatic inverter-connected renewable fuel  generators, the net metering customer has interconnected according to the  electric distribution company's interconnection guidelines and the electric  distribution company has inspected all protective equipment settings. The  inspecting electric distribution company may impose a fee on the net metering  customer of no more than $50 for such inspection.
    7. In the case of renewable fuel generators with an  alternating current capacity greater than 25 kilowatts, the following  requirements shall be met before interconnection may occur:
    a. Electric distribution facilities and customer impact  limitations. A renewable fuel generator shall not be permitted to interconnect  to distribution facilities if the interconnection would reasonably lead to  damage to any of the electric distribution company's facilities or would  reasonably lead to voltage regulation or power quality problems at other  customer revenue meters due to the incremental effect of the generator on the  performance of the electric distribution system, unless the customer reimburses  the electric distribution company for its cost to modify any facilities needed  to accommodate the interconnection.
    b. Secondary, service, and service entrance limitations. The  capacity of the renewable fuel generator shall be less than the capacity of the  electric distribution company-owned secondary, service, and service entrance  cable connected to the point of interconnection, unless the customer reimburses  the electric distribution company for its cost to modify any facilities needed  to accommodate the interconnection.
    c. Transformer loading limitations. The renewable fuel  generator shall not have the ability to overload the electric distribution  company transformer, or any transformer winding, beyond manufacturer or  nameplate ratings, unless the customer reimburses the electric distribution  company for its cost to modify any facilities needed to accommodate the  interconnection.
    d. Integration with electric distribution company facilities  grounding. The grounding scheme of the renewable fuel generator shall comply  with IEEE 1547, Standard for Interconnecting Distributed Resources with  Electric Power Systems, July 2003, and shall be consistent with the grounding scheme  used by the electric distribution company. If requested by a prospective net  metering customer, the electric distribution company shall assist the  prospective net metering customer in selecting a grounding scheme that  coordinates with its distribution system.
    e. Balance limitation. The renewable fuel generator shall not  create a voltage imbalance of more than 3.0% at any other customer's revenue  meter if the electric distribution company transformer, with the secondary  connected to the point of interconnection, is a three-phase transformer, unless  the customer reimburses the electric distribution company for its cost to  modify any facilities needed to accommodate the interconnection.
    B. A prospective net metering customer shall not be allowed  to interconnect a renewable fuel generator if doing so will cause the total  rated generating alternating current capacity of all interconnected renewable  fuel generators within that customer's electric distribution company's Virginia  service territory to exceed 1.0% of that company's Virginia peak-load forecast  for the previous year. In any case where a prospective net metering customer  has submitted a notification form required by 20VAC5-315-30 and that customer's  interconnection would cause the total rated generating alternating current  capacity of all interconnected renewable fuel generators within that electric  distribution company's service territory to exceed 1.0% of that company's  Virginia peak-load forecast for the previous year, the electric distribution company  shall, at the time it becomes aware of the fact, send written notification to  such prospective net metering customer and to the commission's Division of  Energy Regulation that the interconnection is not allowed. In addition, upon  request from any customer, the electric distribution company shall provide to  the customer the amount of capacity still available for interconnection  pursuant to § 56-594 D of the Code of Virginia.
    C. Neither the electric distribution company nor the energy  service provider shall impose any charges upon a net metering customer for any  interconnection requirements specified by this chapter, except as provided  under subdivisions A 5 and 6 of this section, and 20VAC5-315-50 as related to off-site  additional metering.
    D. The net energy metering customer shall immediately notify  the electric distribution company of any changes in the ownership of,  operational responsibility for, or contact information for the generator.
    20VAC5-315-50. Metering, billing, payment and contract or  tariff considerations.
    Net metered energy shall be measured in accordance with  standard metering practices by metering equipment capable of measuring (but not  necessarily displaying) power flow in both directions. Each contract or tariff  governing the relationship between a net metering customer, electric  distribution company or energy service provider shall be identical, with  respect to the rate structure, all retail rate components, and monthly charges,  to the contract or tariff under which the same customer would be served if such  customer was not a net metering customer with the exception that time of use  time-of-use metering under an electricity supply [ service ]  tariff having no demand charges is not permitted. Said contract or  tariff shall be applicable to both the electric energy supplied to, and  consumed from, the grid by that customer.
    In instances where a net metering customers' customer's  metering equipment is of a type for which meter readings are made off site and  where this equipment has, or will be, installed for the convenience of the  electric distribution company, the electric distribution company shall provide  the necessary additional metering equipment to enable net metering service at  no charge to the net metering customer. In instances where a net metering  customer has requested, and where the electric distribution company would not  have otherwise installed, metering equipment which that is  intended to be read off site, the electric distribution company may charge the  net metering customer its actual cost of installing any additional equipment  necessary to implement net metering service. A time-of-use net metering  customer shall bear the incremental metering costs associated with net  metering. Any incremental metering [ expense costs ]  associated with measuring the [ total ] output of  the renewable fuel generator for the purposes of receiving renewable energy  certificates shall be installed at the customer's expense unless otherwise  negotiated between the customer and the REC purchaser.
    If electricity generated by the net metering customer and  fed back to the electric grid exceeds the electricity supplied to the net  metering customer from the grid during a net metering period, the A  net metering customer shall receive no compensation from the electric  distribution company nor the energy service provider for excess  generation unless that the net metering customer has entered  into a power purchase agreement with the electric distribution company  and/or the energy service provider its supplier.
    If the electric distribution company is also the energy  service provider of the net metering customer, the electric distribution  company, upon Upon the written request of the net metering customer,  the customer's supplier shall enter into a power purchase agreement for  the excess generation for one or more net metering periods, as requested by the  net metering customer, that begin on or after July 1, 2007. For net metering  periods beginning during the time period July 1, 2007, through December 31,  2008, the written request of the net metering customer shall be submitted prior  to the end of the net metering period. For net metering periods beginning on or  after January 1, 2009, the. The written request of the net metering  customer shall be submitted prior to the beginning of the first net  metering period covered by the power purchase agreement. The power  purchase agreement shall be consistent with this chapter and obligate the.  If the customer's supplier is an investor-owned electric distribution  company, the supplier shall be obligated by the power purchase agreement  to purchase the excess generation for the requested net metering periods  at a price equal to the PJM Interconnection, L.L.C. (PJM) zonal day-ahead  annual, simple average LMP (locational marginal price) for the PJM load zone in  which the electric distribution company's Virginia retail service territory  resides (simple average of hourly LMPs, by tiers, for time-of-use customers),  as published by the PJM Market Monitoring Unit, for the most recent calendar year  ending on or before the end of each net metering period, unless the electric  distribution company and the net metering customer mutually agree to a higher  price or unless, after notice and opportunity for hearing, the commission  establishes a different price or pricing methodology. If the Virginia retail  service territory of the investor-owned electric distribution company does not  reside within a PJM load zone, the power purchase agreement shall obligate the  electric distribution company to purchase excess generation for the  requested net metering periods at a price equal to the systemwide PJM day-ahead  annual, simple average LMP (simple average of hourly LMPs, by tiers, for  time-of-use customers), as published by the PJM Market Monitoring Unit, for  the most recent calendar year ending on or before the end of each net metering  period, unless the electric distribution company and the net metering customer  mutually agree to a higher price or unless, after notice and opportunity for  hearing, the commission establishes a different price or pricing methodology.
    The If the customer's supplier is a member-owned  electric cooperative electric distribution company, the supplier  shall be obligated by the power purchase agreement to purchase excess  generation for the requested net metering periods at a price equal to  the simple average (by tiers for time-of-use customers) of the cooperative  electric distribution company's cooperative's hourly avoidable  cost of energy, including fuel, based on the energy and energy-related charges  of its primary wholesale power supplier for the net metering period, unless the  electric distribution company and the net metering customer mutually agree to a  higher price or unless, after notice and opportunity for hearing, the  commission establishes a different price or pricing methodology.
    If the customer's supplier is a competitive supplier, the  supplier shall be obligated by the power purchase agreement to purchase the  excess generation for the requested net metering periods at a price equal to  the systemwide PJM day-ahead annual, simple average LMP (simple average of  hourly LMPs, by tiers, for time-of-use customers), as published by the PJM  Market Monitoring Unit, for the most recent calendar year ending on or before  the end of each net metering period, unless the supplier and the net metering  customer mutually agree to a higher price or unless, after notice and  opportunity for hearing, the commission establishes a different price or  pricing methodology.
    The electric distribution company customer's  supplier shall make full payment annually to the net metering customer  within 30 days following the latter of the end of the net metering period or,  if applicable, the date of the PJM Market Monitoring Unit's publication of  the previous calendar-year's applicable zonal or systemwide PJM day-ahead  annual, simple average LMP (locational marginal price), or hourly  LMP, as appropriate. The electric distribution company supplier  may offer the net metering customer the choice of an account credit in lieu of  a direct payment. The option of a net metering customer to request payment from  its supplier for excess generation for the net metering period and the  corresponding price or pricing formula applicable to such excess generation  and the price or pricing formula shall be clearly delineated in the net  metering tariff of the electric distribution company or timely provided by  the customer's competitive supplier, as applicable. A copy of such tariff,  or an Internet link to such tariff, at the option of the customer, shall be  provided to each customer requesting interconnection of a renewable fuel  generator. A competitive supplier shall provide in its contract with the net  metering customer the price or pricing formula for excess generation.
    If electricity generated by the net metering customer and  fed back to the electric grid exceeds the electricity supplied to the net  metering customer from the grid during any billing period (billing period  credit), For a nontime-of use net metering customer, in any billing period  in which there is a billing period credit, the net metering customer  shall be required to pay only the nonusage sensitive charges for that billing  period. Such For a time-of-use net metering customer, in any billing  period for which there are billing period credits in all tiers, the customer  shall be required to pay only the demand charge or charges and nonusage  sensitive charges for that billing period. Any billing period credits shall  be accumulated, carried forward, and applied at the first opportunity to  any billing periods having positive net consumptions (by tiers, in the case  of time-of-use customers). However, any accumulated billing period credits  remaining unused at the end of a net metering period shall be carried forward  into the next net metering period only to the extent that such accumulated  billing period credits carried forward do not exceed the net metering  customer's billed consumption for the current net metering period, adjusted to  exclude accumulated billing period credits carried forward and applied from the  previous net metering period (recognizing tiers for time-of-use customers).
    A net metering customer owns any renewable energy  certificates associated with [ the total output of ] its  renewable fuel generator [ and may sell those RECs to any  willing buyer at any time at a mutually agreeable price ].  [ The A supplier is only obligated to purchase a ]  net metering [ customer customer's RECs if the net  metering customer ] has [ a exercised its ]  one-time option at the time of signing a power purchase agreement with its  supplier to include a provision requiring the purchase by the supplier of all  generated RECs over the duration of the power purchase agreement. 
    Payment for all whole RECs [ generated  purchased by the supplier ] during a net metering period [ covered  by in accordance with ] the purchase power agreement  shall be made at the same time as the payment for any excess generation. The  supplier will post a credit to the customer's account, or the customer may  elect a direct payment. Any fractional REC remaining shall not receive  immediate payment, but may be carried forward to subsequent net metering  periods for the duration of the power purchase agreement. 
    The rate of the payment by the supplier for a customer's  RECs shall be the daily unweighted average of the "CR" component of  Virginia Electric and Power Company's Virginia jurisdiction Rider G tariff in  effect over the period for which the rate of payment for the excess generation  is determined, unless the customer's supplier is not Virginia Electric and  Power Company, and that supplier has an applicable Virginia retail renewable  energy tariff containing a comparable REC commodity price component, in which  case that price component shall be the basis of the rate of payment. The  commission may, with notice and opportunity for hearing, set another rate of  payment or methodology for setting the rate of payment for RECs.
    [ To the extent that RECs are not sold to the net  metering customer's supplier, they may be sold to any willing buyer at any time  at a mutually agreeable price. ]
    20VAC5-315-70. Additional controls and tests.
    Except as provided in 20VAC5-315-40 A 5 and 6 and  20VAC5-315-50 as related to off-site additional metering, no net  metering customer shall be required to pay for additional metering, testing or  controls in order to interconnect with the electric distribution company or  energy service provider. However, this chapter shall not preclude a net  metering customer, an electric distribution company or an energy service  provider from installing additional controls or meters, or from conducting  additional tests. The expenses associated with these additional meters, tests  or equipment shall be borne by the party desiring the additional meters, tests  or equipment.
    DOCUMENTS INCORPORATED BY REFERENCE
    1547, IEEE Standard for Interconnecting Distributed Resources  with Electric Power Systems, July 2003, The Institute of Electrical and  Electronics Engineers, Inc.
    Rider G, Renewable Energy Program, Virginia Electric and  Power Company, January 1, 2009.
    VA.R. Doc. No. R10-2151; Filed April 14, 2010, 9:50 a.m. 
TITLE 24. TRANSPORTATION AND MOTOR VEHICLES 
VA.R. Doc. No. R10-2377; Filed April 27, 2010, 10:01 a.m.