King Amendment

7/25/2019 King Amendment

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ARP16047 S.L.C.

AMENDMENT NO. llll Calendar No. lll

Purpose: To protect residential renewable energy customersfrom abusive rate changes.

IN THE SENATE OF THE UNITED STATES—114th Cong., 2d Sess.

S. 2012

To provide for the modernization of the energy policy of

the United States, and for other purposes.

Referred to the Committee on llllllllll

andordered to be printed

Ordered to lie on the table and to be printed

A MENDMENT intended to be proposed by Mr. K ING (for him-

self and Mr. REID) to the amendment (No. 2953) pro-

posed by Ms. MURKOWSKI

Viz:

At the end of title III, add the following:1

Subtitle I—Residential Renewable2

Energy Generation3

SEC. 3801. EXISTING ON-SITE GENERATING CUSTOMERS.4

(a) IN GENERAL.—Section 111(d) of the Public Util-5

ity Regulatory Policies Act of 1978 (16 U.S.C. 2621(d))6

is amended by adding at the end the following:7

‘‘(20) CONSUMER PROTECTIONS FOR ON-SITE 8

GENERATING FACILITIES.—9

‘‘(A) STANDARD.—Once an electric con-10

sumer has been offered and has accepted net11



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metering service as described in paragraph (11)1

from an electric utility, the State regulatory au-2

thority with ratemaking authority over the elec-3

tric utility and the electric utility may not4

change the rate classification of the consumer5

unless the State regulatory authority or electric6

utility, as applicable, demonstrates, in an evi-7

dentiary hearing in a general rate case, that the8

current and future net benefits of the net me-9

tered system to the distribution, transmission,10

and generation systems of the electric utility11

are less than the full retail rate.12

‘‘(B) RESTRICTION.—A State regulatory13

authority or electric utility may not impose a14

new or higher rate (such as a new fee or de-15

mand charge) on an existing electric consumer16

taking net metering service as described in17

paragraph (11) from an electric utility unless18

the new or higher rate is also charged to all19

electric consumers in the same rate class of the20

electric utility.21

‘‘(C) EFFECT.—Nothing in this paragraph22

prevents an electric utility from charging rates23

to each rate class designed to recover all rea-24



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sonable costs to the electric utility of providing1

service to the electric consumers in that class.’’.2

(b) COMPLIANCE.—Section 112(b) of the Public Util-3

ity Regulatory Policies Act of 1978 (16 U.S.C. 2622(b))4

is amended by adding at the end the following:5

‘‘(7) Before changing the rate classification of,6

or imposing a new or higher rate on, an existing7

electric consumer taking net metering service as de-8

scribed in section 111(d)(11), a State regulatory au-9

thority (with respect to each electric utility for which10

the authority has ratemaking authority) or a non-11

regulated electric utility shall, with respect to the12

standard established by paragraph (20) of section13

111(d)—14

‘‘(A) conduct a hearing and complete the15

consideration required under that paragraph;16

and17

‘‘(B) make the determination referred to in18

section 111 with respect to the standard estab-19

lished by paragraph (20) of section 111(d).’’.20

SEC. 3802. DISTRIBUTED ENERGY RESOURCES.21

(a) IN GENERAL.—Section 111(d) of the Public Util-22

ity Regulatory Policies Act of 1978 (16 U.S.C. 2621(d))23

(as amended by section 3801(a)) is amended by adding24

at the end the following:25



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‘‘(21) DISTRIBUTED ENERGY RESOURCES.—1

‘‘(A) DEFINITION OF DISTRIBUTED EN-2

ERGY RESOURCE.—In this paragraph, the term3

‘distributed energy resource’ means an electric4

energy supply resource, technology, or service5

that—6

‘‘(i) is interconnected to the distribu-7

tion system of an electric utility; and8

‘‘(ii) supplies electric energy to the9

distribution system by generating or stor-10

ing energy.11

‘‘(B) REQUIREMENT.—If a State regu-12

latory authority considers, through a rate pro-13

ceeding or another mechanism (such as consid-14

eration of fixed or minimum charges or any15

other mechanism described in subparagraph16

(C)), modifying the treatment of future net en-17

ergy metering customers, the State regulatory18

authority shall take into account the consider-19

ations in subparagraph (C).20

‘‘(C) CONSIDERATIONS.—The consider-21

ations referred to in subparagraph (B) in-22

clude—23

‘‘(i) pricing for energy—24

‘‘(I) sold to an electric utility; or25



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‘‘(II) purchased from an electric1

utility;2

‘‘(ii) capacity;3

‘‘(iii) the provision of ancillary serv-4

ices;5

‘‘(iv) the societal value of distributed6

energy resources;7

‘‘(v) transmission and distribution8

losses; and9

‘‘(vi) any other benefits that the State10

regulatory authority considers to be appro-11

priate.’’.12

(b) COMPLIANCE.—Section 112(b) of the Public Util-13

ity Regulatory Policies Act of 1978 (16 U.S.C. 2622(b))14

(as amended by section 3801(b)) is amended by adding15

at the end the following:16

‘‘(8) Before considering, through a rate pro-17

ceeding or other mechanism, modifying the treat-18

ment of any future net metering customer, a State19

regulatory authority (with respect to each electric20

utility for which the authority has ratemaking au-21

thority) or a nonregulated electric utility shall, with22

respect to the standard established by paragraph23

(21) of section 111(d)—24



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‘‘(A) conduct a hearing and complete the1

consideration required under that paragraph;2

and3

‘‘(B) make the determination referred to in4

section 111 with respect to the standard estab-5

lished by paragraph (21) of section 111(d).’’.6

King Amendment

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