Chapter 164 of the General Laws as appearing in the 2004 Official Edition is hereby amended by adding after section 137 a subchapter captioned “On Site Electric Generation Via Renewable Resources” and consisting of the following new sections:-

Section 138.  Net Metering.  Definitions.

The following words and phrases as used in sections 139 through 141 inclusive shall, unless the context otherwise requires, have the following meanings:-

“Affected Property Owner,” a person who owns or rents property within one thousand (1000) yards of a renewable generation facility.

“Municipal Light Board,” the municipal light board, municipal gas and electric commission or similar body in a city or town having a municipal light board, gas and electric commission or similar body; the mayor of a city having no municipal light board, municipal gas and electric commission or similar body; or the selectmen of a town having no municipal light board, municipal gas and electric commission or similar body.

“Net metering,” the process of measuring the difference between electricity delivered by an electric distribution company and electricity generated by a solar-net-metering facility or wind-net-metering facility and fed back to the distribution company.

“Renewable Generation Facility,” a solar-net-metering or wind-net-metering facility.

“Solar-net-metering facility,” a facility for the production of electrical energy that:  uses sunlight to generate electricity, has a generating capacity of not more than two (2) megawatts, is located on or in the vicinity of a customer’s premise, and is intended to offset part or all of that customer’s requirements for electricity.

“Wind-net-metering facility,” a facility for the production of electrical energy that:  uses wind to generate electricity, has a generating capacity of not more than two (2) megawatts, is located on or in the vicinity of a customer’s premise, and is intended to offset part or all of that customer’s requirements for electricity.

Section 139.  Net Metering.

(A)  A distribution company customer that uses electricity generated by a renewable generation facility may elect net metering.

(1) If the electricity generated by the renewable generation during a billing period plus and generation credits carried forward from prior billing periods exceeds the customer’s kilowatt-hour usage during the billing period, the customer shall be billed for zero kilowatt-hour usage and the excess generation shall be credited to the customer’s account for the following billing period.  No less than once a year the distribution company shall reconcile its account with the customer operating a renewable generation facility and pay that customer any money due the customer for the electricity it has acquired from that customer during the period covered by the reconciliation.

(2) If the customer’s kilowatt-hour usage exceeds the electricity generated by the renewable generation facility during the billing period plus any generation credits carried forward from prior billing periods, the customer shall be billed for the net kilowatt-hour usage at the applicable rate.  All credit balances will be paid annually by the owning party.

(B) Net metering shall apply to all charges calculated on a kilowatt-hour basis, including distribution, transmission, generation, and transition charges.

(C) Net metering shall be implemented using a single meter.  Where an electro-mechanical meter is employed, the meter shall register the flow of electric power in both directions and shall display the net flow.  Where a digital meter is employed, it shall be programmed to register the net flow as implemented in electro-mechanical meters, or shall separately register the inward flow to the customer and the outward flow to the distribution company to enable subsequent calculation of the net flow.

(D) Distribution companies are prohibited from imposing special fees on net metering customers, such as backup charges, or additional controls or liability insurance as long as the renewable generation facility complies with the applicable interconnection, safety, and power quality standards.

Section 140.  Authority to Contract With Affected Property Owners, the Commonwealth and Political Subdivisions.

            In addition to net-metering, a distribution company customer that operates a renewable generation facility or its designee may share the economic benefit it realizes by contracting for the sale of electric power generated at its renewable generation facility with the Commonwealth, its political subdivisions or the municipality in which the renewable generation facility is located and/or its neighbors who meet the definition of “affected property owners.”  In the case of municipalities the contracting party shall be the Municipal Light Board.  Notwithstanding any general or special law to the contrary, a distribution or transmission company servicing both parties to a contract authorized by this section shall transmit electricity generated at the renewable generator’s facility to affected property owners and/or the Municipal Light Board without charge, as long as the renewable generation facility complies with the applicable interconnection, safety, and power quality standards over existing transmission or distribution facilities.  Instead of utilizing the facilities of a transmission company, a distribution company customer that operates a renewable generation facility or its designee may construct its own transmission lines to transmit the electricity it generates to the Commonwealth, its political subdivisions, affected property owners and the Municipal Light Board of the municipality in which the renewable generation facility is located.  Such transmission lines may cross the property of another, including the Commonwealth or its political subdivisions, only if authorized by that property owner.