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AN ACT TO PROVIDE NET METERING FOR CERTAIN CUSTOMERS OF AN ELECTRIC UTILITY WHO HAVE INSTALLED A RENEWABLE ENERGY SYSTEM; TO SPECIFY STANDARDS APPLICABLE TO SUCH SYSTEMS; AND TO PROVIDE FOR OTHER MATTERS PROPERLY RELATING ADDING A NEW ARTICLE 5 TO CHAPTER 8 OF TITLE 12, GUAM CODE ANNOTATED. 

BE IT ENACTED BY THE PEOPLE OF GUAM: Section 1. A new Article 5 is hereby added to Chapter 8 of Title 12, Guam Code Annotated, to read as follows: 

"Article 5 NET METERING"

§8501.Legislative Findings and Intent.

I Liheslaturan Guahan recognizes the island's historical crisis of power outages almost a decade ago. Rolling blackouts and endless load-shedding became part of one's daily life. Although the island has made great progress, power outages continue to plagUe the island. Each day, there remains the threat of disruption of electrical/power supply service. Therefore, it is the intent of I Liheslaturan Gudhan to combine new power-generation technologies with traditional power- generation systems in order to expand and safeguard the island's electric supply, without the need for additional capital investment by the utility company.

One way to accomplish the combination of both the new and traditional electric system is through the use of photovoltaic, solar technology and other alternative energy-generation systems. Such has the advantage. to generate power in a 'distributed' method, as electricity is generated and used at the same location. The use of this method enhances fhe island power generation system, and reduce~ the disruption of services if a central power plant were shut down or damaged. Moreover, it is the intent of I Liheslaturan Gudhan to (a) encourage private investment ill renewable energy resources; (b) stimulate economic growth; and (c) enhance the continued diversification of the renewable energy resources used on Guam.

§8502. Definitions.

(a) 'Customer-generator'means a user of a net metering system.

(b) 'Net Metering' means measuring the difference between the  electricity supplied by a utility and the electricity generated by a customer-generator which is fed back to the utility over the applicable billing period. 

(c) 'Net Metering System' means a facility for the production of electrical energy that: (1) uses fuel cells, microturbines, wind, biomass, hydroelectric, solar energy or a hybrid system consisting of these facilities, as its primary source of fuel;

(2) has a generating capacity of not more than twenty-five (25) kilowatts; (3) is located on the customer-generator's premises; (4) operates in parallel with the utility's transmission and distribution facilities; and (5) is intended primarily to offset part or all of the customer-generator's requirements for electricity. 

(d) 'Utili'ty' means a public utility that supplies electricity on Guam.

§8503. (a) A utility shall offer net metering, as set forth in §8505 of this Article, to customer-generators operating within its service area.

(b) A utility:

(1) shall offer to make available to each of its customer-generators who has accepted its offer for net metering an energy meter that is capable of registering the flow of electricity in two (2) directions; (2) may, at its own expense and with the written consent of the customer-generator, install one (1) or more additional meters to monitor the flow of electricity in each direction; and (3) shall not charge a customer-generator any fee or charge that. would increase the customer-generator's minimum monthly charge to an amount greater than that of other customers of the utility in the same rate class as the customer-generator,

§8504.

(a) A net metering system used by a customer-generator must meet all applicable safety and power quality standards established by:

 (1) the National Electrical Code;

 (2) Underwriters Laboratories, Inc.; and

(3) the Institute of Electrical and Electronic Engineers.

(b) A customer-generator whose net metering system meets such safety and quality standards must not be required by the utility to: (1) comply with additional standards or requirements; (2) perform additional tests; (3) install additional controls; or (4) purchase additional liability insurance, ansmg solely from his status as a customer-generator.

§8505.

(a) The billing period for net metering may be either a monthly period, or with the written consent of the customer-generator, quarterly, semi-annual or annual period.

(b) The net energy measurement must be calculated in the following manner:

(1) The utility shall measure the net electricity produced or consumed during the billing period, in accordance with normal metering practices.

(2) If the electricity supplied by the utility exceeds the electricity generated by the customer-generator which is fed back to the utility during the billing period, the customer-generator must be billed for the net electricity supplied by the utility metering an energy meter that is capable of registering the flow of electricity in two (2) directions; 

(3) If the electricity generated by the customer-generator which is fed back to the utility exceeds the electricity supplied by the utility during the billing period, the customer-generator is entitled to compensation for electricity provided to the utility during the billing period at a rate to be determined by the Public Utility Commission." 

Section 2. The Public Utility Commission shall promulgate all necessary rules and regulations for the implementation of the program within one hundred twenty (120) days upon the enactment of this Act.

Section 3. Severability. If any of the provisions of this Act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provision or application of this Act which can be given effect without the invalid provision or application, and to thisend the provisions of this Act are severable.