(1) Net
Metering Credits shall be allocated to Customer accounts by each Distribution
Company as follows:
(a) For a Class I Net
Metering Facility, Class II Net Metering Facility, or Class III Net Metering
Facility that is not a New Solar Net Metering Facility or not a Cap Exempt
Facility that is also a Class II Solar Net Metering Facility or Class III Solar
Net Metering Facility, or a Small Hydroelectric Net Metering Facility
participating in the Small Hydroelectric Net Metering Program, each
Distribution Company shall allocate Net Metering Credits, as designated in
writing by the Host Customer, to other Customers who are in the Distribution
Company's service territory and are located in the same ISO NE load zone. The
manner and form of credit designation shall be as specified in the Distribution
Company's Net Metering Tariff pursuant to
220
CMR 18.09(2).
Notwithstanding the foregoing, if the Host Customer of a Class I Net Metering
Facility, Class II Net Metering Facility, or Class III Net Metering Facility is
a Municipality or Other Governmental Entity, including a Governmental
Cooperative, it may direct its Distribution Company to allocate Net Metering
Credits only to other Customers that are Municipalities or Other Governmental
Entities.
(b) For a New Solar Net
Metering Facility or a Cap Exempt Facility that is also a Class II Solar Net
Metering Facility or a Class III Solar Net Metering Facility, each Distribution
Company shall allocate Net Metering Credits, as designated in writing by the
Host Customer, to other Customers who are Customers of a Distribution Company
located in the Commonwealth and may allocate credits to customers in more than
one Distribution Company service territory. The manner and form of credit
designation shall be as specified in the Distribution Company's Net Metering
Tariff pursuant to
220
CMR 18.09(2).
Notwithstanding the foregoing, the Host Customer of a Class I Net Metering
Facility, Class II Net Metering Facility, or Class III Net Metering Facility
that is a Municipality or Other Governmental Entity, including a Governmental
Cooperative, may direct its Distribution Company to allocate Net Metering
Credits only to other Customers that are Municipalities or Other Governmental
Entities.
(c) For a Neighborhood
Net Metering Facility, the Distribution Company may only allocate Net Metering
Credits to residential or other Customers who reside in the same Neighborhood
in which the Neighborhood Net Metering Facility is located and have an
ownership interest in, or are served by, the Neighborhood Net Metering
Facility.
(2) The
Distribution Company shall carry forward, from Billing Period to Billing
Period, any remaining Net Metering Credit balance.
(3) For a Class III Net Metering Facility,
including a Class III Net Metering Facility that is a New Solar Net Metering
Facility, and a Small Hydroelectric Net Metering Facility participating in the
Small Hydroelectric Net Metering Program, a Distribution Company may elect to
pay to the Host Customer Net Metering Credits rather than allocating such
credits pursuant to 220 CMR 18.05(1).
(4) For a Class II Net Metering Facility or
Class III Net Metering Facility that is also a Cap Exempt Facility, a
Distribution Company shall credit or pay the Host Customer for any Net Metering
Credits that are accrued in excess of its annual electricity consumption for
the period running from April through the following March. The value of such
excess Net Metering Credits shall be equal to the Distribution Company's
Avoided Cost Rate as determined pursuant to 220 CMR 18.05(5).
(5) The Avoided Cost Rate is based on data
used by ISO-NE to set prices for energy purchases and sales. A Distribution
Company's annual payout amount for Net Metering Credits shall be derived by
applying an adjustment factor to the value of the Net Metering Credits that
accrued during the preceding 12-month period beginning from April of the
preceding year and are remaining on the Host Customer's billing account as of
March 31st of the current year. The adjustment
factor ratio shall be the average monthly LMP rate that was realized by the
settlement of the output of Net Metering facilities with ISO NE, divided by the
average monthly Net Metering Credit rate that the Net Metering facility
received from the Distribution Company, weighted by the monthly net excess
electricity generated by the Net Metering Facility.
