                                 CODE OF VIRGINIA

NET ENERGY METERING TRANSITION PROVISIONS FOR ELECTRIC COOPERATIVES (§
56-585.4)

Distribution electric cooperatives subject to Article 1 (§ 56-231.15 et seq.)
of Chapter 9.1 shall be regulated in accordance with the provisions of Chapters
9.1 (§ 56-231.15 et seq.) and 10 (§ 56-232 et seq.), as amended by relevant
sections of this chapter and by the following provisions:

1. Notwithstanding anything to the contrary in this title, each cooperative may,
without Commission approval or the requirement of any filing other than as
provided in this subdivision, upon the adoption by its board of directors of a
resolution so providing, make adjustments in the cooperative&#8217;s rates,
terms, conditions, and rate schedules governing net energy metering as provided
in this section by electing to subject itself to the provisions of this section.
The cooperative promptly shall (i) file such resolution and notice with the
Commission for informational purposes and (ii) place a notice of its board of
directors&#8217; adoption of such resolution (the Cooperative Net Energy
Metering Transition Notice) on the cooperative&#8217;s website. The Cooperative
Net Energy Metering Transition Notice shall contain an initial election date and
a date upon which, for each class of net energy metering customer, the
transition shall become effective upon the first to occur of (a) the date the
cooperative reaches the cap set forth in subsection F of &#xA7; 56-594.01 or (b)
five years following the date of the initial Cooperative Net Energy Metering
Transition Notice. If a cooperative transitions a given class of customers as a
result of reaching a cap set forth in subsection F of &#xA7; 56-594.01, the
effectiveness of such transition shall be permanent, regardless of future
changes in the cooperative&#8217;s system peak. A Cooperative Net Energy
Metering Transition Notice may be amended and refiled as the cooperative deems
appropriate at any time. Any eligible customer-generator as defined in &#xA7;
56-594 that was interconnected prior to a transition start date enumerated in a
Cooperative Net Energy Metering Transition Notice may continue to participate in
net energy metering pursuant to the terms of &#xA7; 56-594.01 until July 1,
2039.

2. After the transition date for a class of customers, any standby charges
implemented by the cooperative pursuant to subsection H of &#xA7; 56-594.01
shall be eliminated and are prohibited. The cooperative may make any necessary
changes to rate schedules or terms and conditions and shall promptly file the
same with the Commission for informational purposes.

3. Whenever the cooperative&#8217;s transition date occurs, the cooperative may
establish and publish, without Commission approval or the requirement of any
filing other than as provided in this subdivision, a new rate schedule or rider
for purposes of its new net energy metering program established pursuant to this
section and shall promptly file the same with the Commission for informational
purposes.

4. The new rate schedule or rider described in subdivision 3 may contain a
demand charge or charges for distribution, supply, or both, based upon a
customer&#8217;s monthly, ratcheted, or 60-minute absolute value noncoincident
peak demand for customers that were not previously subject to demand charges in
each rate class; however, such demand charges shall be revenue neutral based on
the cooperative&#8217;s determination of the proper intra-class allocation of
the revenues produced by its then-current rates serving the same rate class of
customer. The cooperative shall implement such new demand charge through the
provisions of subdivision 5. The cooperative shall file promptly revised tariffs
reflecting any such new demand charges with the Commission for informational
purposes. The demand charge component of any net energy metering rate class
derived from a rate class with a preexisting demand charge shall remain fixed
for a period of five years. The fixed monthly customer charge of any net energy
metering rate class derived from a preexisting rate class having a fixed monthly
customer charge less than or equal to $20 as of the transition date shall not
exceed $20 for the duration of the five-year period described in subdivision 5.
During the five-year period described in subdivision 5, a cooperative may not
increase the monthly customer charge of any net energy metering rate class
derived from a preexisting rate class having a fixed monthly customer charge
greater than $20 as of the transition date. Demand charges included in a new
rate schedule or rider shall apply to net energy metering customers, regardless
of whether a customer uses a third-party partial requirements power purchase
agreement or not.

5. For purposes of implementing subdivision 4, a cooperative shall, after the
published transition date for a given class of customers, close its existing net
energy metering rate schedule rider to new customers and open a new tariff
pursuant to subdivision 3. Demand charges shall be implemented over a five-year
period. In the first year of the five-year period, the demand charges shall be
set to zero. In the second year of the five-year period, implementation of the
demand rates may begin, and demand charges shall not exceed $0.25 per kilowatt
of distribution demand and $0.25 per kilowatt of supply demand. In the third
year of the five-year period, the demand charges shall not exceed $0.50 per
kilowatt of distribution demand and $0.50 per kilowatt of supply demand. In the
fourth year of the five-year period, the demand charges shall not exceed $0.75
per kilowatt of distribution demand and $0.75 per kilowatt of supply demand. In
the fifth year of the five-year period, the demand charges shall not exceed $1
per kilowatt of distribution demand and $1 per kilowatt of supply demand.
Following the expiration of the five-year period, the cooperative is authorized
to rebalance its rates. In any filing for informational purposes, the
cooperative shall clearly set forth to the Commission the schedule for the
five-year period.

6. After the transition date for a given class of customers, the following caps,
which shall be in lieu of the caps established by subsection F of &#xA7;
56-594.01, shall apply to net energy metering for that class of customer. The
caps shall be calculated as described in subsection F of &#xA7; 56-594.01 except
that the caps shall be adjusted as follows, expressed in alternating current
nameplate capacity of the generators: three percent of system peak for
residential customers, four percent of system peak for not-for-profit and
nonjurisdictional customers, and two percent for other nonresidential customers.

7. After the transition date for a given class of customers, only the following
restrictions shall apply to the capacity of a net energy metering electrical
generating facility:
			a. For nonresidential customers, the maximum capacity shall not exceed the
least of:

   1. 1.2 megawatts alternating current;

   2. One percent of the cooperative&#8217;s system peak calculated according to
   the methodology described in subsection F of &#xA7; 56-594.01; or

   3. The expected annual energy consumption based on the previous 12 months of
   billing history or an annualized calculation of billing history if 12 months
   of billing history is not available; and
   				b. For residential customers, the maximum capacity shall not exceed 125
   percent of the expected annual energy consumption based on the previous 12
   months of billing history or an annualized calculation of billing history if
   12 months of billing history is not available.

8. After the transition date for a given class of customers, third-party partial
requirements power purchase agreements entered into with registered providers
shall be permitted for that class of customer pursuant to subsection K of &#xA7;
56-594.01.

HISTORY: 2019, cc. 742, 763.