An Act amending the act of November 30, 2004 (P.L.1672, No.213), known as the Alternative Energy Portfolio Standards Act, further providing for definitions, for interconnection standards for customer-generator facilities and for interagency responsibilities.

PRINTER'S NO. 1354
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1019
Session of
2025
INTRODUCED BY BOSCOLA, KIM, HAYWOOD, VOGEL, HUTCHINSON,
ROBINSON, FLYNN AND MILLER, DECEMBER 10, 2025
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
DECEMBER 10, 2025
AN ACT
Amending the act of November 30, 2004 (P.L.1672, No.213),
entitled "An act providing for the sale of electric energy
generated from renewable and environmentally beneficial
sources, for the acquisition of electric energy generated
from renewable and environmentally beneficial sources by
electric distribution and supply companies and for the powers
and duties of the Pennsylvania Public Utility Commission,"
further providing for definitions, for interconnection
standards for customer-generator facilities and for
interagency responsibilities.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "customer-generator" and "net
metering" in section 2 of the act of November 30, 2004
(P.L.1672, No.213), known as the Alternative Energy Portfolio
Standards Act, are amended and the section is amended by adding
definitions to read:
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
"Abandoned mine land." An area of land no longer in use
that, in connection with extracting a natural resource from its
natural deposits in the earth by any means, has had material
placed upon, under or above the surface.
* * *
"Avoided cost." The average locational marginal price of
energy, capacity and transmission and distribution grid services
values, as determined by the commission, in the applicable
transmission zone over the customer-generator's billing period.
"Brownfield." A property the expansion, redevelopment or
reuse of which may be complicated by the presence or potential
presence of a hazardous substance, pollutant or contaminant.
"Capped landfill." A capped facility for disposal of trash
or garbage in which waste is buried between layers of earth and
covered by a cap.
* * *
"Corporation." A body corporate, joint-stock company or
association, domestic or foreign, and the body corporate's,
joint-stock company's or association's lessee, assignee,
trustee, receiver or other successor in interest that has a
power or privilege of a corporation not possessed by an
individual or partnership. The term does not include a municipal
corporation, except as otherwise expressly provided in this act,
or a bona fide cooperative association that furnishes service on
a nonprofit basis only to the association's stockholders or
members.
* * *
"Customer-generator." A [nonutility owner or operator of a
net metered distributed generation system with] retail electric
customer that is a nonutility that owns and operates, leases or
20250SB1019PN1354 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
operates or contracts with a third party that owns or operates
an alternative energy system that meets all of the following
criteria:
(1) Has a nameplate capacity of not greater than 50
kilowatts if installed at a residential service or not larger
than 3,000 kilowatts at other customer service locations,
except for customers whose systems are above three megawatts
and up to five megawatts who make their systems available to
operate in parallel with the electric utility during grid
emergencies as defined by the regional transmission
organization or where a microgrid is in place for the primary
or secondary purpose of maintaining critical infrastructure,
such as homeland security assignments, emergency services
facilities, hospitals, traffic signals, wastewater treatment
plants or telecommunications facilities, provided that
technical rules for operating generators interconnected with
facilities of an electric distribution company, electric
cooperative or municipal electric system have been
promulgated by the Institute of Electrical and Electronic
Engineers and the Pennsylvania Public Utility Commission.
(2) Has electric load, independent of the alternative
energy system, behind the meter and the point of
interconnection of the alternative energy system. To be
independent of the alternative energy system, the electric
load must have a purpose other than to support operation,
maintenance or administration of the alternative energy
system.
(3) Is sized so the alternative energy system will
generate not more than the customer-generator's annual
electric consumption at the interconnection meter location
20250SB1019PN1354 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
when combined with all qualifying virtual meter aggregation
locations as of the interconnection application date. The
following shall apply:
(i) For existing service location accounts, annual
electric consumption shall be based on the highest
electric usage from any 12 consecutive-month period
within 60 months before submission of the interconnection
application.
(ii) For new service location accounts, annual
electric consumption shall be based on the building type
and size and the anticipated usage of electric equipment
and fixtures planned for the new service location, as
well as the customer's annual consumption from dependent
accounts to be included for virtual meter aggregation.
(iii) Excess generation shall be subject to an
annual net-metered accounting period, and compensation to
the customer-generator for any remaining excess
generation shall be capped at the avoided cost.
* * *
"Full retail value." The value of electric energy credited
to a customer-generator at the retail rate, including the
generation, capacity, transmission and distribution components
of the electric distribution company's approved tariff.
"Industrial land." Land planned and zoned for industrial
use. The term includes land used for manufacturing, assembly,
fabrication, processing, storage, logistics, warehousing,
importation, distribution, transshipment or research and
development.
* * *
"Net metering." The means of measuring the difference
20250SB1019PN1354 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
between the electricity supplied by an electric utility and the
electricity generated by a customer-generator when any portion
of the electricity generated by the alternative energy
generating system is used to offset part or all of the customer-
generator's requirements for electricity. Virtual meter
aggregation on properties owned or leased and operated by [a]
the same customer-generator [and located within two miles of the
boundaries of the customer-generator's property and] within a
single electric distribution company's service territory shall
be eligible for net metering. All service locations to be
aggregated must be metered electric utility service location
retail customer accounts, held by the same individual , legal
entity or parent corporation .
"Nonutility." A business, person or entity whose primary or
secondary purpose, character or nature is not the generation,
transmission, distribution or sale of electricity at wholesale
or retail.
"Parking facility canopy." A structure constructed over a
public or private parking lot.
"Preferred site." A location determined by the commission to
qualify based on whether a majority of the facility's generating
capacity or physical footprint is located on one or more of the
following:
(1) A warehouse or commercial rooftop.
(2) A brownfield.
(3) Abandoned mine land.
(4) A capped landfill.
(5) A parking facility canopy.
(6) A site on or adjacent to coal-fired electric
generation plants that have closed or will close within one
20250SB1019PN1354 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
year of the effective date of this definition.
(7) A school facility.
(8) Industrial land.
* * *
"School facility." An educational building and surrounding
premises owned by any of the following:
(1) A school entity as defined in the act of March 10,
1949 (P.L.30, No.14), known as the Public School Code of
1949, including any of the following:
(i) A school district.
(ii) An intermediate unit.
(iii) An area career and technical school.
(iv) A charter school.
(v) A cyber charter school.
(vi) A regional charter school.
(2) A charter school for the education of the deaf or
the blind.
(3) A nonpublic school recognized by the Department of
Education.
(4) A community college.
(5) The Thaddeus Stevens College of Technology.
(6) The Pennsylvania College of Technology.
* * *
"Utility." A business, person or entity whose primary
purpose, character or nature is the generation, transmission,
distribution or sale of electricity at wholesale or retail. The
term does not include a building or facility owner or operator
that manages the internal distribution system serving the
building or facility and that supplies electric power and
related power services to occupants of the building or facility.
20250SB1019PN1354 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"Virtual meter aggregation." The combination of readings and
billing for meters, regardless of rate class, on properties
owned or leased and operated by a customer-generator by means of
the electric distribution company's billing process rather than
through physical rewiring of the customer-generator's property
for a single physical point of contact. Virtual meter
aggregation on properties owned or leased by the same customer-
generator or alternative energy system operator and within a
single electric distribution company's service territory shall
be eligible for net metering. Service locations of dependent
accounts to be aggregated must be electric distribution company
service location accounts, held by the same individual , legal
entity or parent corporation receiving retail electric service
from the same electric distribution company . The location of an
alternative energy system that serves virtual meter aggregation
service locations of dependent accounts shall not be required to
have measurable electric load independent of the alternative
energy system.
"Vis major." An event or circumstance that is beyond human
control and cannot be predicted or prevented.
"Warehouse." A distribution facility, storage facility,
fulfillment center, logistics facility or a facility engaging in
similar uses.
"Warehouse or commercial rooftop." A roof located on a
building or group of buildings used primarily for indoor
storage, transf er, manufacture, assembly and distribution or
sale of products, services and materials.
Section 2. Section 5 of the act is amended to read:
Section 5. Interconnection standards for customer-generator
facilities.
20250SB1019PN1354 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(a) Compensation for small customer-generator systems.--
Excess generation from net-metered customer-generators with a
nameplate capacity of not greater than 50 kilowatts if installed
at a residential service or not greater than 3,000 kilowatts at
other customer service locations shall receive full retail value
for all energy produced on an annual basis. The commission shall
develop technical and net metering interconnection rules for
customer-generators intending to operate renewable onsite
generators in parallel with the electric utility grid,
consistent with rules defined in other states within the service
region of the regional transmission organization that manages
the transmission system in any part of this Commonwealth. The
commission shall convene a stakeholder process to develop
Statewide technical and net metering rules for customer-
generators. The commission shall develop these rules within nine
months of the effective date of this act.
(b) Safe-harbored net metering for existing systems and
applications.--
(1) Excess generation from net-metered customer-
generators that are not eligible for compensation under
subsection (a) and that, as of the effective date of this
paragraph, are in operation or have submitted an
interconnection application to an electric distribution
company before September 1, 2025, shall receive full retail
value under the electric distribution company's small general
service or small commercial rate schedule for all energy
produced on an annual basis until the earlier of:
(i) replacement of generation equipment that extends
the life of the system or changes the nameplate
generating capacity, except when the customer-generator
20250SB1019PN1354 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
is actively working to recommence production after
routine maintenance or a vis major event; or
(ii) December 31, 2050.
(2) After the applicable time period specified under
paragraph (1), excess generation shall be subject to an
annual net metered accounting period, and compensation to the
customer-generator for any remaining excess generation shall
be capped at the avoided cost.
(3) A customer-generator shall be responsible for
interconnection costs and distribution system upgrades
related to the interconnection of the customer-generator's
facility in accordance with the commission's regulations.
(4) The commission, in collaboration with the Office of
Consumer Advocate, electric distribution companies and solar
energy organizations, may establish, by order, a cap on the
total megawatts of customer-generators that are eligible for
safe harbor under this subsection. A cap established under
this paragraph may not exceed a defined percentage of each
electric distribution company's default service peak load. A
net-metered customer-generator that has an interconnection
agreement with an electric distribution company that was
executed before September 1, 2025, qualifies for safe harbor
under this subsection and may not be excluded by a cap
established under this paragraph.
(c) Preferred-site virtual meter aggregation projects.--
(1) Notwithstanding subsection (a) or (b), excess
generation from virtual meter aggregation proj ects that are
constructed on a preferred site and that commence op eration
after the effective date of this paragraph shall receive full
retail value at the applicable rate schedule of the dependent
20250SB1019PN1354 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
accounts for all energy produced on a monthly basis until the
earlier of:
(i) replacement of generation equipment that extends
the life of the system or changes the nameplate
generating capacity, except when the customer-generator
is actively working to recommence production after
routine maintenance or a vis major event; or
(ii) December 31, 2050, if the project is
constructed primarily on a preferred site, as determined
by the commission based on a majority of the facility's
generating capacity or physical footprint.
(2) A preferred-site alternative energy system that
serves virtual meter aggregation service locations of
dependent accounts shall not be required to have measurable
electric load independent of the alternative energy system.
(3) After the applicable time period specified under
paragraph (1), excess generation shall be subject to an
annual net metered accounting period, and compensation to the
customer-generator for any remaining excess generation shall
be capped at the avoided cost.
(d) Rate schedule classification.-- The installation of a net
metered facility or the participation in virtual meter
aggregation shall not constitute grounds for reclassification of
the customer-generator's applicable rate schedule.
Section 3. Section 7 of the act is amended by adding a
subsection to read:
Section 7. Interagency responsibilities.
* * *
(d) Enforcement of provisions.-- The commission shall have
authority to enforce this act in accordance with the
20250SB1019PN1354 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
commission's regulations and orders. The commission may issue,
modify or rescind a regulation or order to enforce this act,
whether issued before or after the effective date of this
subsection. Nothing in this subsection shall be construed to
limit authority granted to the commission under 66 Pa.C.S.
(relating to public utilities).
Section 4. This act shall take effect in 60 days.
20250SB1019PN1354 - 11 -
1
2
3
4
5
6
7