AZ SB1016

Establishes net-metering program requiring Arizona public power entities serving 300,000+ megawatt hours annually to offer net-metering to eligible customer-generators with biomass, solar, or wind electric generating facilities.

Limits net-metering availability to first-come, first-served basis up to 5 percent of the public power entity's annual peak load.

Requires customer-generator facilities to be located on premises, interconnected with utility distribution facilities, and sized between 100-125 percent of total connected load without exceeding service entrance capacity.

Mandates one-to-one kilowatt-hour credits for excess production, with credits carried forward through calendar year and either rolled over or compensated at the utility's average hourly incremental cost at year-end.

Requires bidirectional metering equipment and prohibits discriminatory rates or unauthorized fees for customer-generators compared to similarly situated non-generating customers.