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Bill

HB 832

Regards virtual net metering and meter aggregation

136th Legislature (2025-2026) Introduced by Tex Fischer and 1 co-sponsor

The bill creates a framework for virtual net metering and meter aggregation, enabling large non-residential customers to benefit from off-site generation with standardized contract

Referred to committee
#electricutilities #utilities
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Bill Summary · HB 832

Purpose and intent

  • Introduces a framework for virtual net metering (VNM) and meter aggregation in Ohio, expanding how certain non-residential customers (e.g., hospitals, mercantile customers, and large industrials) can participate in net energy metering and how meters can be aggregated across a utility’s service territory.
  • Replaces the existing net metering structure with dedicated provisions for VNM and adds explicit rules for measurement, credits, eligibility, and administration by the Public Utilities Commission of Ohio (PUCO).

Key provisions and changes

Net metering (existing framework) updates

  • Requires electric utilities to develop:
    • A standard net metering contract or tariff with the same rate structure and monthly charges as non-customer-generators.
    • Separate specialized net metering contracts for:
    • Hospitals (no eligibility limitations; base on market value of generated electricity and the hospital’s normal rate structure; no wattage cap per se; may operate facilities individually or collectively).
    • Mercantile customers (non-residential retailers) with:
      • Net metering that mirrors the customer’s rate structure, but excludes transmission costs.
      • Option for transmission costs to be billed by the mercantile customer’s competitive retail supplier.
      • Capacity cap: system capacity must be less than 50 MW.
  • Net metering measurement uses a single bidirectional meter; customers may be required to install a bidirectional meter at their cost if the existing meter cannot measure both directions.
  • Utilities may install additional meters at their expense with customer consent.
  • Billing: net metered energy is calculated by normal metering practices; credits for excess generation appear in the next billing cycle.

Virtual net metering (VNM) framework

  • Defines terms:
    • Large industrial customer, virtual net metering (VNM) system and VNM customer (excludes residential customers).
    • VNM system must meet specific location, ownership, and safety criteria.
  • VNM system requirements (Sec. 4928.676):
    • Fuel options: solar, wind, biomass, landfill gas, hydropower, microturbine, natural gas-fired generator, battery storage, or fuel cell, with capacity stacking limitations to prevent exceedance relative to co-located facilities using approved fuels.
    • Not a net metering system; not located on agricultural land.
    • Located on a qualifying site (e.g., mine, brownfield, disposal-related site, county land reutilization property, or a roof used for commercial/industrial purposes).
    • Must be within the same utility’s certified territory and operate in parallel with grid facilities.
    • Interconnection cannot exceed 120% of the customer’s current electricity requirements.
    • Requires an electric meter at the system site.
    • May be located on the same site as other VNM systems.
  • VNM mechanics (Sec. 4928.679):
    • Utilities must offer a standard VNM contract/tariff, similar to standard net metering but credits apply to generation and transmission charges, while distribution charges remain with the VNM customer.
    • Possibility for mercantile transmission costs to be billed by the customer’s competitive retail supplier.
    • Measurement involves separately measuring generation attributed to the VNM system and the customer’s consumption, then calculating net as the difference.
    • Credits when generation exceeds utility supply: monetary credits equal to the value of generation and transmission charges (excluding disaster recovery charges) carried forward to future bills, limited to the utility’s generation and transmission savings; credits are non-cash payments and can be lost if the customer stops service or does not use the credit.
    • Safety and performance standards apply; utilities cannot impose additional costs beyond required standards.
    • Residential or large industrial customers cannot be charged for VNM-related costs.

Meter aggregation

  • A VNM customer may aggregate multiple electric meters within the same utility territory that are attributed to the VNM system (Sec. 4928.6710).

Oversight and administration

  • PUCO is required to adopt rules to administer VNM and meter aggregation, including additional control and testing requirements deemed necessary for safety and reliability (Sec. 4928.6711).

Who and what is affected

  • Electric utilities: must implement standard contracts/tariffs for both traditional net metering and virtual net metering, adjust metering practices, and work with PUCO on rules.
  • Non-residential customers:
    • Hospitals (separate net metering contract with favorable expansion of eligibility).
    • Mercantile customers (commercial/industrial retailers) with options related to transmission charges and a 50 MW cap on VNM-related projects.
    • Large industrial customers (under VNM definitions).
  • Metering and data: requirements for bidirectional metering, potential installation of additional meters, and access to consumption and coincident peak data for VNM calculations.
  • PUCO: responsible for adopting comprehensive rules governing VNM, meter aggregation, safety, and reliability.

Procedural and timeline aspects

  • The bill repeals the current 4928.67 section and replaces it with detailed provisions for net metering, VNM, and meter aggregation (sections 4928.675 to 4928.6711).
  • Effective operations depend on PUCO rulemaking to implement the VNM framework and meter aggregation (Sec. 4928.6711).
  • The bill as introduced references ongoing administration by utilities and customers, with standard contracts to be developed by each electric utility.
  • The action history shows introduction in 2026 and referral to committee for consideration.

Potential impacts and considerations

  • Expands access to net metering for non-residential customers, particularly hospitals and mercantile entities, with distinct rate treatment and potential transmission cost arrangements.
  • Establishes a framework for virtual net metering, enabling larger customers to benefit from distributed generation located off-site, subject to site-type restrictions and interconnection limits.
  • Introduces monetary credits for excess VNM generation, incentivizing investment in qualifying facilities while limiting financial exposure to utilities.
  • Allows meter aggregation to simplify billing for customers with multiple meters in the same utility territory.
  • Requires robust PUCO rulemaking to ensure safety, reliability, and consistency across utilities.

Compiled from official sources — confirm details with the bill’s official record.

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