CS/CS/HB 741 (McClure) revises current law relating to net metering by investor-owned utilities (IOUs). Net metering allows customers who own on-site renewable energy systems, typically solar systems, to interconnect with the electric grid and be compensated for excess electricity generated on-site that is subsequently transferred to the electric grid. Under Florida’s current net metering framework for IOU’s, the credit customers receive on their bill equals the value of the excess energy to the utility’s retail rate. The bill modifies the current net metering framework for IOUs, establishing a graduated schedule for crediting excess energy delivered to the electric grid by a customer. The schedule is based on the date a customer’s net metering application is approved. For applications approved between January 2024 and December 2025, the customer’s energy usage will be offset by 75% of the amount credited. For applications approved between January 2026 and December 2026, the customer’s energy usage shall be offset by 60% of the amount credited. For applications approved between January 2027 and December 2028, the customer’s energy usage shall be offset by 50% of the amount credited. Customers for which a net metering application is approved before January 2029 pursuant to a standard interconnection agreement will be given 20 years to continue to use the net metering rates that applied at the time the application was approved. The bill further provides that if customer-owned renewable generation in the state exceeds a certain threshold, the Public Service Commission must initiate rulemaking to adopt a new rule for net metering. The bill authorizes an IOU to petition the Public Service Commission after January 2024 for approval to impose any combination of charges to ensure that the IOU recovers the fixed costs of serving customers who own or lease renewable generation and that the general class of ratepayers does not subsidize customer-owned or leased generation. The bill directs the Public Service Commission to establish a new program to become effective January 2029 for customers for which a net metering application is approved after that date. The new program must ensure that: IOU customers who own renewable generation pay their full cost of electric service and are not cross-subsidized by the general class of ratepayers; all energy delivered by the IOU is purchased at its applicable retail rate; and all energy delivered by the customer-owned renewable generation to the IOU is credited to the customer at the IOU’s full avoided costs. CS/CS/HB 741 passed the House (83-31) and the Senate (24-15) and is awaiting action by the Governor. (O'Hara)