Bill Text: NJ S2971 | 2010-2011 | Regular Session | Introduced
Bill Title: Regulates imposition of standby charges upon distributed generation customers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-12-01 - Referred to Senate Budget and Appropriations Committee [S2971 Detail]
Download: New_Jersey-2010-S2971-Introduced.html
Sponsored by:
Senator BOB SMITH
District 17 (Middlesex and Somerset)
SYNOPSIS
Regulates imposition of standby charges upon distributed generation customers.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the imposition of standby charges upon distributed generation customers and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Board" means the Board of Public Utilities.
"Demand charge" means a charge imposed by an electric public utility which are based upon peak electricity demand during a specified time period, typically, one month. A demand charge is utilized to recover the capital cost of infrastructure necessary to meet peak energy loads. Capacity measured in kilowatts or megawatts represents the ability of an electric public utility, or the electric power grid in the aggregate, to deliver electric service of a peak level of demand during any period of time.
"Distributed generation" means energy generated from a district energy system or a combined heat and power facility as that term is defined in section 3 of P.L.1999, c.23 (C.48:3-51), the simultaneous production in one facility of electric power and other forms of useful energy such as heating or process steam, and energy generated from other forms of clean energy efficient electric generation systems.
"Standby charge" means a charge imposed by an electric public utility upon a distributed generation facility for the recovery of costs necessary to make energy available to the distributed generation facility during a facility power outage including, but not limited to, the allocation of reasonable capital investment costs and operating and maintenance expenses associated with the electric public utility's infrastructure needed to provide such service.
2. Notwithstanding the provisions of any other law, rule, regulation, or order to the contrary, the board shall, within 60 days of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), conduct a study to determine the effects of distributed generation upon energy supply and demand and determine whether distributed generation contributes to any cost savings for electric public utilities.
3. a. The board shall, within 120 days of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), establish criteria for fixing rates associated with the assessment and imposition of standby charges, and shall require electric public utilities to file tariff rates with the board in accordance with such criteria.
b. In establishing such criteria, the board shall ensure equality between distributed generation customers and other electric public utility customers with regard to the imposition of standby charges and, in addition to any factors it deems relevant and such factors it may consider pursuant to R.S.48:2-21, consider the following factors:
(1) any findings of the study conducted by the board pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill);
(2) the impact of demand charges and how they drive the operating performance of projects utilizing distributed generation, particularly during peak electricity demand periods; and
(3) the economic and environmental benefits the board finds are associated with distributed generation.
c. In establishing the criteria for fixing rates pursuant to subsection b. of this section, the board shall assess the feasibility of including special discounted charges for distributed generation customers as part of the criteria. In making such assessment, the board shall consider cost savings to electric public utilities resulting from distributed generation and any other benefits associated with distributed generation, including, but not limited to, any increase in energy efficiency and any associated decrease in demand for electric power from the electric grid.
4. The board shall, pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq. adopt rules and regulations to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
5. This act shall take effect immediately.
STATEMENT
This bill would require the Board of Public Utilities (the "board") to, within 60 days of the bill's effective date, conduct a study to determine the effects of distributed generation upon energy supply and demand and determine whether distributed generation contributes to any cost savings for electric public utilities. "Distributed generation" is defined to mean energy generated from a district energy system or a combined heat and power facility as that term is defined in section 3 of P.L.1999, c.23 (C.48:3-51), the simultaneous production in one facility of electric power and other forms of useful energy such as heating or process steam, and energy generated from other forms of clean energy efficient electric generation systems.
Within 120 days of the bill's effective date, the board would establish criteria for fixing rates associated with the assessment and imposition of standby charges and would require electric public utilities to file tariff rates in accordance with such criteria. Such criteria would include the requirement that distributed generation customers and other electric public utility customers are treated equally with regard to the imposition of standby charges.
In establishing criteria for fixing rates for the imposition of standby charges, the board would also consider the following factors: (1) any findings of the study conducted by the board pursuant to the bill; (2) the impact of demand charges and how they drive the operating performance of distributed generation projects particularly during peak electricity demand periods; and (3) the economic and environmental benefits the board finds are associated with distributed generation; and (4) the feasibility of including special discounted charges for distributed generation customers. In making the determination concerning special discounted charges, the board would consider cost savings to electric public utilities resulting from distributed generation and any other benefits associated with distributed generation, including, but not limited to, any increase in energy efficiency and any associated decrease in demand for electric power from the electric grid.
"Standby charge" is defined to mean a charge imposed by an electric public utility upon a distributed generation facility for the recovery of costs necessary to make energy available to the distributed generation facility during a facility power outage including, but not limited to, the allocation of reasonable capital investment costs and operating and maintenance expenses associated with the electric public utility's infrastructure needed to provide such service. "Demand charge" is defined to mean a charge imposed by an electric public utility which are based upon peak electricity demand during a specified time period, typically, one month. A demand charge is utilized to recover the capital cost of infrastructure necessary to meet peak energy loads. Capacity measured in kilowatts or megawatts represents the ability of an electric public utility, or the electric power grid in the aggregate, to deliver electric service of a peak level of demand during any period of time.
