SHENANDOAH VALLEY ELECTRIC COOPERATIVE SCHEDULE NEM-8 NET ENERGY METERING RIDER

Page 1 of 5 APPLICABILITY SHENANDOAH VALLEY ELECTRIC COOPERATIVE SCHEDULE NEM-8 NET ENERGY METERING RIDER Unless specifically excluded within this Schedule, all of the Cooperative's Terms and Conditions shall apply to net metering customers, including agricultural net metering customers. This Rider applies to any distribution customer in the Cooperative's service area that qualifies for and executes an agreement for net metering service or agricultural net metering service. "Net metering service" means providing retail electric service to a customer operating a renewable fuel generator and measuring the difference, over the net metering period, between electricity supplied to the customer from the Cooperative's distribution system and the electricity generated and fed back to the Cooperative's distribution system by the customer. A customer may qualify for this service by owning and operating, or contracting with other persons to own, operate, or both, a renewable fuel generator that (i) uses as its total fuel source sunlight, wind, falling wafer, sustainable biomass, energy from waste, wave motion, tides, or geothermal power; (ii) is located on his premises and is connected to the customer's wiring on the customer's side of its interconnection with the Cooperative; (iii) is interconnected and operated in parallel with an electric company's transmission and distribution facilities; and (iv) is primarily intended to offset part or all of the member/customer's own electricity requirements. "Agricultural net metering service" means, for the limited purpose of providing net metering service as defined above, aggregating into one account the load of multiple meters serving a single customer meeting the definition of "agricultural net metering customer" as defined in 20 VAC 5-315-20. Agricultural net metering customers are included within the terms governing net metering customers in this Schedule unless stated otherwise, and are subject to additional provisions as indicated within the Schedule. For the purpose of agricultural net metering, "aggregating into one account the load of multiple meters" will be accomplished by adding all of the billing determinants (energy and coincident demand) from each meter and calculating the charges as if the totalized energy and demand had been measured by a single meter. For residential customers, the renewable fuel generator capacity may not exceed twenty (20) kilowatts alternating current, for non-residential customers, the renewable fuel generator capacity may not exceed one megawatt (1 MW) alternating current, and for eligible agricultural customer-generators, the renewable fuel generator capacity may not exceed five hundred (500) kilowatts alternating current. The interconnection shall be through a single meter or, as provided in 20 VAC 5-315-70, additional meters; or for an agricultural net metering customer, multiple meters of the utility that are located at separate but contiguous sites as defined in 20 VAC 5-315-20. The total connected capacity of all Filed: January 12. 2016 Effective: On and after January 12. 2016

Page 2 of 5 net metering and agricultural renewable fuel generators connected to the Cooperative shall not exceed 1.0% of the Cooperative's Virginia peak-load forecast for the previous year. In addition to the foregoing maximum renewable fuel generator size limitations, the maximum aggregate capacity of the renewable fuel generator(s) shall also be limited. The customer shall be allowed to install a generator(s) capable of generating up to the customer's previous 12 months of usage history (or an annualized estimate thereof made using existing utility methodologies) based upon the expected annual output of the generator(s), but not more. The Cooperative will work with the customer to ascertain a maximum capacity agreeable to both the Cooperative and the customer, with the primary determinant being the customer's historic or predicted annual consumption. Should the Cooperative and the customer be unable to agree, the customer may submit an infonnal complaint to the Commission Staff. The restriction on maximum generator capacity contained within this paragraph shall be applicable to those customers whose renewable fuel generator(s) are interconnected on and after July 1, 2015, and are subject to this Rider. The Cooperative will abide by the State Corporation Commission's Regulations Governing Net Energy Metering, 20 VAC 5-315-10 etseq., as amended (the "Rules") in applying the provisions of this Rider. The Cooperative may require an applicant for agricultural net metering to provide documentation (such as, e.g., deeds, plats, or leases) or such other evidence satisfactory to the Cooperative to reasonably demonstrate that the meters the applicant desires to aggregate are (1) on the same or contiguous sites and (2) that the customer uses the affected sites for its agricultural business. If the Cooperative has an applicable time-of-use ("TOU") tariff, the following definitions shall apply. A TOU net metering customer is one electing to receive retail electricity supply service under a demand charge-based TOU tariff, if one is offered by the Cooperative. A TOU period is an interval of time over which the energy rate charged to a TOU customer does not change. A TOU Tier is all of those TOU periods given the same name, such as "on-peak" or "off-peak" or "critical peak." TOU Tier rates may vary. The TOU Tiers will be denominated on the Cooperative's TOU tariff. MONTHLY CHARGES The tariff for a net energy metering customer shall be that tariff under which the customer would be served if the customer were not a net energy metering customer (the customer's standard tariff), with the exception that TOU net metering is not permitted under an electricity supply seivice tariff having no demand charges. An agricultural net metering customer will be served on a rate schedule determined by the Cooperative to be available, applicable, and appropriate to the characteristics of the totalized load, as if the energy consmnption and demand had been measured by a single meter at a single location. If more than one rate schedule is available, applicable, and appropriate for the characteristics of the aggregated account, the customer will have the option to select the schedule on which the customer will be served. Filed: January 12, 2016 Effective: On and after January 12, 2016

Page 3 of 5 MINIMUM MONTHLY CHARGES For any billing period in which generation exceeds consumption, producing a billing period credit, the monthly charge shall be based only on the fixed charges of the customer's standard tariff, and any charges that may be applicable per: (i) an excess facilities agreement and, (ii) a Commission-approved standby charge. Fox net metering customers not utilizing a TOU tariff, the customer must pay only the nonusage sensitive charges for any billing period in which a billing period credit exists. Regarding TOU net metering customers, for whom excess generation is determined separately for each TOU Tier, the customer must pay only the demand charges and the nonusage sensitive charges in any billing period when there are credits in all tiers for that billing period. Billing period credits will be carried forward and applied to offset future consumption charges as provided in Rule 20 VAC 5-315-50. OPTIONS FOR PURCHASE OF EXCESS ENERGY AND FOR PURCHASE OF RENEWABLE ENERGY CERTIFICATES ("RECS") If the Cooperative is also the energy service provider of the net metering customer, the Cooperative, upon written request of the net metering customer, shall enter into an agreement to purchase excess generation for the requested net metering periods at a price equal to the simple average of the Cooperative's hourly avoidable cost of energy, including fuel, based on the energy and energy-related charges of its primary wholesale power supplier for the net metering period, unless the Cooperative and the net metering customer mutually agree to a higher price or unless, after notice and opportunity for hearing, the commission establishes a different price or pricing methodology. A net metering customer shall receive no compensation for excess generation unless the net metering customer has entered into a power purchase agreement with the Cooperative. Net metering customers own the RECs associated with their renewable fuel generators. A net metering customer wishing to sell its RECs to the Cooperative may do so by exercising a one-time only option, at the time it executes the power purchase agreement with the Cooperative, to include a provision requiring the purchase by the supplier of all generated RECs over the duration of the power purchase agreement. Such sales shall be subject to reasonable metering and verification requirements as determined by the Cooperative. The rate payable for RECs shall be (i) determined by adherence to the.rules and (ii) reference to the "CR" component of Dominion Virginia Power's Rider G Tariff, as permitted under the Rules. NOTIFICATION REQUIREMENTS A prospective net metering customer shall give notice to the Cooperative of the proposed renewable fuel generator that the customer proposes to install, or to which the customer proposes to add capacity, including the proposed unit's generating capacity. The customer is encouraged to contact the Cooperative as soon as possible, ideally before entering into an agreement to purchase a renewable fuel generator, to ascertain the capacity limitations and other suitability requirements prior to proposing installation. The customer shall also Filed: January 12. 2016 Effective: On and after January 12, 2016

Page 4 of 5 verify that the requirements for interconnection are met once the renewable fuel generator has been installed. The customer shall use the Commission-approved form (Form NMIN) for the purposes of making said notification and verification. An agricultural net metering customer who aggregates meters must notify the Cooperative within 30 days of any outage of the customer's generating facility and provide reasonable evidence of the customer's efforts to restore the generating facility to service in a timely manner. The Cooperative will use good faith to determine if the customer's plans to restore the facility to service are reasonably likely to restore the facility to seivice in a timely manner. If the Cooperative determines in its discretion that the customer is not making reasonable efforts to restore the facility in a timely manner, the Cooperative will suspend the customer's meter aggregation effective immediately. Upon suspension of meter aggregation due to an outage of the customer's generating facility, all usage during an outage, starting with the next full billing period after the billing period in which the outage began, will be billed at the standard rate schedules individually applicable to the previously aggregated meters. Meter aggregation will resume once the generation facility is operational. For purposes of this paragraph only, the phrase "timely manner" shall mean within a period of two calendar weeks, or longer should the Cooperative and the customer both agree, OPERATING REQUIREMENTS Prior to interconnecting the renewable fuel generator the net energy metering customer must comply with all requirements of the Regulations Governing Net Energy Metering, Title 20, Agency 5, Chapter 315, Virginia Administrative Code, pursuant to provision of Section 56-594 of the Virginia Electric Utility Restructuring Act, as amended. These regulations specify insurance requirements, interconnection requirements, and govern the metering, billing and contract requirements between net energy metering customers, electric distribution companies, and energy service providers. All net energy metering customers shall have installed a lockable, load-breaking manual disconnect switch at a suitable location, approved by the Cooperative, that allows the Cooperative round-the-clock, unobstructed access to the switch and that can be easily located and accessed by the Cooperative. Unobstructed access to tire switch must be maintained at all times, at the customer's expense. NET METERING ADDITIONAL COST PROVISIONS ' Customers who take service (see "Monthly Charges," above) under a time-of-use tariff are responsible for all incremental metering costs associated with net metering. Any additional metering equipment associated with incremental metering to measure the total output of the renewable fuel generator for the purposes of receiving RECs, as reasonably determined by the Cooperative, shall be installed at the customer's expense unless otherwise negotiated between the customer and the Cooperative, Filed: January 12. 2016 Effective: On and after January 12. 2016

Page 5 of 5 For an agricultural net metering customer, the meters at all locations from which usage is to be totalized into one account shall be capable of measuring demand determinants as specified in the rate schedule appropriate to the totalized load. The Cooperative will eitherexchange an existing meter with one capable of measuring the required demand determinants or use an approximate demand value based on consumption data. Any additional metering equipment resulting from the need to measure demand as a requirement of the rate schedule applicable to an agricultural net metering customer, as reasonably determined by the Cooperative, shall be installed at the customer's expense unless otherwise negotiated between the customer and the Cooperative. The customer's expenses as described above may be recovered from the customer by way of an excess facilities agreement. CONTACT INFORMATION If the prospective net energy metering customer has contracted with another person to own, operate, or both, the renewable fuel generator, the Cooperative must have detailed, current and accurate contact information for the owner, operator, or both, including without limitation, the name and title of one or more individuals responsible for the interconnection and operation of the generator, a telephone number, a physical sheet address other than a post office box, a fax number, and an e-mail address for each person or persons. The net energy metering customer shall immediately notify the electric distribution company of any changes in the ownership of, operational responsibility for, or contact information for the generator. CHARGES FOR SERVICES BY THE COOPERATIVE Inspection of static inverter-connected generators in excess of 10 kw - Inverter settings: $ 50.00 Inspection of non-static inverter-connected generators - All protective equipment: $ 50.00 TERMS OF SERVICE The contract term shall be the same as that under the customer's applicable service classification. A separate agreement with the customer is required for service provided under this Rider. Filed: January 12, 2016 Effective: On and after January 12, 2016

2016 SESSION INTRODUCED 16103826D 1 HOUSE BILL NO. 1137 U 2 Offered January 13, 2016 3 Prefiled January 13, 2016 ^ 4 A BILL to amend and reenact 56-594 of the Code of Virginia, relating to electric utilities; net energy 5 metering programs; energy balancing devices; study and report. 8 6 Patron Toscano 7 8 Committee Referral Pending ^ 9 1. reenacted as follows: 10 11 Be it enacted by the General Assembly of Virginia: That 56-594 of the Code of Virginia is amended and ^ a 12 13 56-594. Net energy metering provisions. A. The Commission shall establish by regulation a program programs that affords eligible afford: I J hfj 14 1. Eligible customer-generators the opportunity to participate in net energy meterings and a program, 15 te begin ne later than July 2014, for customers ef investor owned utilities and ne later than July Jrj Q 16 2015, for customers ef electric cooperatives, te afford eligible; 17 2. Eligible agricultural customer-generators the opportunity to participate in net energy metering, 18 which program shall begin no later than Jidy 1, 2014, for such customers of investor-owned utilities and 19 no later than July 1, 2015, for such customers of electric cooperatives; and 20 3. Eligible energy balancing customers the opportunity to participate in net energy metering, which 21 program shall begin no later than July 1, 2017, for such customers of investor-owned utilities and no 22 later than July 1, 2018, for such customers of electric cooperatives, provided that the aggregate 23 capacity of energy balancing devices deployed by all eligible energy balancing customers in the 24 Commonwealth shall not exceed 25 megawatts. 25 26 The regulations may include, but need not be limited to, requirements for (i) retail sellers electric utilities; (ii) owners or operators of distribution or transmission facilities; (iii) providers ef default JT 27 28 service; (tv) eligible customer-generators; fv) (iv) eligible agricultural customer-generators; (v) eligible energy balancing customers; or (vi) any combination of the foregoing, as the Commission determines 29 will facilitate the provision of net energy metering, provided that the Commission determines that such 30 requirements do not adversely affect the public interest. 31 32 B. For the purpose of this section: "Eligible agricultural customer-generator" means a customer that operates a renewable energy 33 generating facility as part of an agricultural business, which generating facility (i) uses as its sole energy 34 source solar power, wind power, or aerobic or anaerobic digester gas ; ; (ii) does not have an aggregate 35 generation capacity of more than 500 kilowatts^; (iii) is located on land owned or controlled by the 36 agricultural business^; (iv) is connected to the customer's wiring on the customer's side of its 37 interconnection with the distributor electric utility; (v) is interconnected and operated in parallel with an 38 electric company's utility's transmission and distribution facilities^; and (vi) is used primarily to provide 39 energy to metered accounts of the agricultural business. An eligible agricultural customer-generator may 40 be served by multiple meters that are located at separate but contiguous sites, such that the eligible 41 agricultural customer-generator may aggregate in a single account the electricity consumption and 42 generation measured by the meters, provided that the same utility serves all such meters. The aggregated 43 44 load shall be served under the appropriate tariff. "Eligible customer-generator" means a customer that owns and operates, or contracts with other 45 persons to own, operate, or both, an electrical generating facility that (i) has a capacity of not more than 46 47 20 kilowatts for residential customers and not more than one megawatt for nonresidential customers on an electrical generating facility placed in service after July 1, 2015; (ii) uses as its total source of fuel 48 renewable energy, as defined in 56-576; (iii) is located on the customer's premises and is connected to 49 the customer's wiring on the customer's side of its interconnection with the distributor electric utility, 50 (iv) is interconnected and operated in parallel with an electric company's transmission and distribution 51 facilities; and (v) is intended primarily to offset all or part of the customer's own electricity 52 requirements. In addition to the electrical generating facility size limitations in clause (i), the capacity of 53 any generating facility installed under this section after July 1, 2015, shall not exceed the expected 54 annual energy consumption based on the previous 12 months of billing history or an annualized 55 calculation of billing history if 12 months of billing history is not available. 56 "Eligible energy balancing customer" means a commercial or indusbial customer that owns an 57 energy balancing device that is (i) located on the customer's premises, (ii) connected to the customer's 58 wiring on the customer's side of its interconnection with the elecbic utility, and (iii) interconnected and

HB1137 2 of 4 59 operated in parallel with an electric utility's transmission and distribution facilities. A customer shall 60 not qualify as an eligible energy balancing customer unless (a) the operation of its energy balancing 61 device provides a service of value to the electric utility or regional transmission entity, including 62 spinning reserve, frequency regulation, distribution system support, reactive power, demand response, or 63 other electric grid services; (b) discharge from the energy balancing device to the electric grid meets all 64 requirements for safety, including anti-islanding, and power quality established pursuant to the IEEE 65 1547-2003 Standard for Interconnecting Distributed Resources with Electric Power Systems or SAE 66 67 Standard J3072, or successor standards, approved by the Institute of Electrical and Electronics Engineers Standards Board or the Society of Automotive Engineers, as appropriate; (c) the electric 68 utility and the customer have entered into an agreement pursuant to which the electric utility undertakes 69 to credit the customer for electricity fed back to the electric grid by operation of the energy balancing 70 device as provided in subsection G; and (I) the aggregate net energy flows from the customer's energy 71 balancing device over any net metering period result in a net energy inflow to the customer's premises. 72 73 "Energy balancing device" means (i) a grid-integrated electric vehicle or (ii) an electric battery consisting of one or more electrochemical cells that convert stored chemical energy into electrical 74 energy, that are located at a commercial or industrial site, and that absorb ancl return energy to the 75 electric grid on either (a) a second-to-second response basis that provides frequency regulation or (b) a 76 longer-term daily response basis that stores excess energy from the electric grid during periods of 77 excess supply and then returns that energy to the electric grid during peak periods of demand. 78 79 "Grid-integrated electric vehicle" means a battery-run motor vehicle that has the ability for two-way power flow between the vehicle and the electric grid and the communications hardware and software 80 81 that allow for the external control of battery charging and discharging by an electric utility, a regional transmission entity, or an aggregator. 82 "Net energy metering" means measuring the difference, over the net metering period, between (i) 83 electricity supplied to an eligible customer generator er eligible agricultural customer-generator a net 84 metering customer from the electric grid and (ii) the electricity generated and fed back to the electric 85 grid by the eligible customer generator er eligible agricultural customer generator net metering customer. 86 "Net metering customer" means any eligible customer-generator, eligible agricultural 87 customer-generator, or eligible energy balancing customer. 88 "Net metering customer's system" means (i) with regard to an eligible customer-generator or eligible 89 agricultural customer-generator, its electrical generating facility and appurtenant equipment and (ii) 90 with regard to an eligible energy balancing customer, its energy balancing device and appurtenant 91 equipment. 92 "Net metering period" means the 12-month period following the date of final interconnection of the 93 94 eligible customer-generator's er eligible agricultural customer generator's net metering customer's system with an electric service provider, and each 12-month period thereafter. 95 "Regional transmission entity" means the regional transmission entity of which an electric utility is a 96 member pursuant to 56-577 and 56-579. 97 C. The Commission's regulations shall ensure that (i) the metering equipment installed for net 98 metering shall be capable of measuring the flow of electricity in two directions and (ii) any eligible 99 customer generator net metering customer seeking to participate in net energy metering shall notify its 100 supplier electric distribution company and receive approval to interconnect prior to installation of an 101 electrical generating facility. The electric distribution company shall have 30 days from the date of 102 notification for residential facilities, and 60 days from the date of notification for nonresidential 103 facilities, to determine whether the interconnection requirements have been met. Such regulations shall 104 allocate fairly the cost of such equipment and any necessary interconnection. An eligible 105 customer generator's electrical generating Each net metering customer's system^ and each electrical 106 generating system ef an eligible agricultural customer generator, shall meet all applicable safety and 107 performance standards established by the National Electrical Code, the Institute of Electrical and 108 Electronics Engineers, the Society of Automotive Engineers, and accredited testing laboratories such as 109 Underwriters Laboratories. Beyond the requirements set forth in this section and to ensure public safety, 110 power quality, and reliability of the supplier's electric distribution system, an eligible customer generator 111 er eligible agricultural customer generator a net metering customer whose electrical generating system 112 meets those standards and rules shall bear all reasonable costs of equipment required for the 113 interconnection to the supplier's electric distribution system, including costs, if any, to (i) install 114 additional controls, (ii) perform or pay for additional tests, and (iii) purchase additional liability 115 insurance. 116 D. The Commission shall establish minimum requirements for contracts to be entered into by the 117 parties to net metering arrangements. Such requirements shall protect the eligible customer generator er 118 eligible agricultural customer generator net metering customer against discrimination by virtue of its 119 status as an eligible customer generator er eligible agricultural customer generator, a net metering 120 customer and permit customers that are served on time-of-use tariffs that have electricity supply demand

3 of 4 121 charges contained within the electricity supply portion of the time-of-use tariffs to participate as an 122 eligible customer generator er eligible agricultural customer generator net metering customers. 123 Notwithstanding the cost allocation provisions of subsection C, eligible customer generators er eligible 124 agricultural customer generators net metering customers served on demand charge-based time-of-use 125 tariffs shall bear the incremental metering costs required to net meter such customers. 126 127 E. If electricity generated by an eligible customer-generator or eligible agricultural customer-generator over the net metering period exceeds the electricity consumed by the eligible customer-generator or 128 eligible agricultural customer-generator, the eligible customer-generator or eligible agricultural 129 customer-generator shall be compensated for the excess electricity if the entity contracting te receive 130 such electric energy electric utility and the eligible customer-generator or eligible agricultural 131 customer-generator enter into a power purchase agreement for such excess electricity. Upon the written 132 133 request of the eligible customer-generator or eligible agricultural customer-generator, the supplier teat serves tee eligible customer generator er eligible agricultural customer generator electric utility shall 134 enter into a power purchase agreement with tee requesting eligible customer-generator or eligible 135 agricultural customer-generator that is consistent with tee minimum requirements for contracts 136 established by the Commission pursuant to subsection D. The power purchase agreement shall obligate 137 the supplier electric utility to purchase such excess electricity at tee rate teat is provided for such 138 139 purchases in a net metering standard contract or tariff approved by the Commission, unless the parties agree to a higher rate. The eligible customer-generator or eligible agricultural customer-generator owns 140 any renewable energy certificates associated with its electrical generating facility; however, at the time 141 that the eligible customer-generator or eligible agricultural customer-generator enters into a power 142 purchase agreement with its supplier electric utility, tee eligible customer-generator or eligible 143 agricultural customer-generator shall have a one-time option to sell the renewable energy certificates 144 associated with such electrical generating facility to its supplier electric utility and be compensated at an 145 amount that is established by the Commission to reflect the value of such renewable energy certificates. 146 Nothing in this section shall prevent the eligible customer-generator or eligible agricultural 147 148 customer-generator and the supplier electric utility from voluntarily entering into an agreement for the sale and purchase of excess electricity or renewable energy certificates at mutually-agreed upon prices if 149 the eligible customer-generator or eligible agricultural customer-generator does not exercise its option to 150 sell its renewable energy certificates to its supplier electric utility at Commission-approved prices at the 151 time that tee eligible customer-generator or eligible agricultural customer-generator enters into a power 152 purchase agreement with its supplier electric utility. All costs incurred by tee supplier electric utility to 153 purchase excess electricity and renewable energy certificates from eligible customer-generators or 154 eligible agricultural customer-generators shall be recoverable through its Renewable Energy Portfolio 155 Standard (RPS) rate adjustment clause, if the supplier electric utility has a Commission-approved RPS 156 plan. If not, then all costs shall be recoverable through the supplier's electric utility's fuel adjustment 157 clause. For purposes of this section subsection, "all costs" shall be defined as means the rates paid to the 158 eligible customer-generator or eligible agricultural customer-generator for the purchase of excess 159 160 electricity and renewable energy certificates and any administrative costs incurred to manage the eligible customer-generator's or eligible agricultural customer-generator's power purchase arrangements. The net 161 metering standard contract or tariff shall be available to eligible customer-generators or eligible 162 agricultural customer-generators on a first-come, first-served basis in each electric distribution company's 163 Virginia service area until the rated generating capacity owned and operated by eligible 164 customer-generators or eligible agricultural customer-generators in the state reaches one percent of each 165 electric distribution company's adjusted Virginia peak-load forecast for the previous year, and shall 166 require the supplier electric utility to pay the eligible customer-generator or eligible agricultural 167 customer-generator for such excess electricity in a timely manner at a rate to be established by the 168 169 Commission. F. Any residential eligible customer-generator or eligible agricultural customer-generator who owns 170 and operates, or contracts with other persons to own, operate, or both, an electrical generating facility 171 with a capacity that exceeds 10 kilowatts shall pay to its supplier electric utility, in addition to any other 172 charges authorized by law, a monthly standby charge. The amount of the standby charge and the terms 173 and conditions under which it is assessed shall be in accordance with a methodology developed by the 174 supplier electric utility and approved by the Commission. The Commission shall approve a supplier's an 175 electric utility's proposed standby charge methodology if it finds teat the standby charges collected from 176 all such eligible customer-generators and eligible agricultural customer-generators allow the supplier 177 electric utility to recover only the portion of tee supplier's electric utility's infrastructure costs that are 178 properly associated with serving such eligible customer-generators or eligible agricultural 179 customer-generators. Such an eligible customer-generator or eligible agricultural customer-generator shall 180 not be liable for a standby charge until the date specified in an order of the Commission approving its 181 supplier's electric utility's methodology.

HB1137 4 of 4 182 G. Notwithstanding the definition of net energy metering in subsection B, the aggregate net energy 183 flows from an eligible energy balancing customer's energy balancing device to the electric grid and 184 from the grid to the customer over any net metering period shall result in net energy to the eligible 185 energy balancing customer's premises. Therefore, the eligible energy balancing customer shall not be 186 compensated for excess electricity over the net metering period. However, over shorter time intervals, 187 the eligible energy balancing customer may return electric energy to the g'id. Over time intervals 188 shorter than the net metering period, the rate at which an eligible energy balancing customer shall be 189 190 credited for electricity added to the grid from such customer's energy balancing device shall be the same as the rate charged to the eligible energy balancing customer for electricity provided by the 191 electric utility to the eligible energy balancing customer for such customer's consumption at its premises 192 pursuant to the applicable tariff. The requirements of subsection C shall apply to any energy balancing 193 194 device deployed pursuant to this section. H. An aggregator is explicitly permitted to combine two or more eligible energy balancing customers 195 196 and sell en erg' balancing services; those services may be sold to a regional transmission entity, under wholesale rules and rates as regulated by the Federal Energy Regulatory Commission, or those services 197 may be sold to an electric utility under rides and rates as regulated by the Commission. 198 2. That the State Corporation Commission shall conduct a study of the effectiveness of, and 199 benefits achieved from, the deployment of energy balancing devices pursuant to this act. The study 200 shall (i) address the extent to which energy balancing devices are deployed, (ii) analyze the benefits 201 to the electric grid that result from the deployment of energy balancing devices, and (iii) 202 determine whether the incentives for the deployment of energy balancing devices provided by the 203 provisions of this act are commensurate with the benefits provided by their deployment. The 204 Commission shall report its findings and any recommendations to the Governor and General 205 206 Assembly by December 1, 2018. 3. That the provisions of the first enactment of this act shall expire on July 1, 2019; however, any 207 208 energy balancing device that commences operating prior to July 1, 2019, shall be permitted to continue operating pursuant to the provisions of this act for a period of 10 years following the 209 date the energy balancing device commenced operating.