FIRST REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
94TH GENERAL ASSEMBLY
Reported from the Special Committee on Energy and Environment April 12, 2007 with recommendation that House Committee Substitute for House Bill No. 869 Do Pass. Referred to the Committee on Rules pursuant to Rule 25(21)(f).
D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To repeal section 386.887, RSMo, and to enact in lieu thereof one new section relating to electric energy.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 386.887, RSMo, is repealed and one new section enacted in lieu thereof, to be known as section 386.900, to read as follows:
386.900. 1. This section shall be known and may be cited as the "Net Metering and Easy Connection Act".
2. As used in this section, the following terms shall mean:
(1) "Avoided cost", the average cost of fuel for the entity generating electricity for a retail electric supplier for a given billing period;
(2) "Commission", the public service commission of the state of Missouri;
(3) "Customer-generator", the owner or operator of a qualified electric energy generation unit which:
(a) Is powered by a renewable energy resource;
(b) Has an electrical generating system with a capacity of not more than one hundred kilowatts;
(c) Is located on a premises owned, operated, leased, or otherwise controlled by the customer-generator;
(d) Is interconnected and operates in parallel phase and synchronization with a retail electric supplier and has been approved by such retail electric supplier;
(e) Is intended primarily to offset part or all of the customer-generator's own electrical energy requirements;
(f) Meets all applicable safety, performance, interconnection, and reliability standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, Underwriters Laboratories, the Federal Energy Regulatory Commission, and any local governing authorities; and
(g) Contains a mechanism that automatically disables the unit and interrupts the flow of electricity back into the supplier's electricity lines in the event that service to the customer-generator is interrupted;
(4) "Department", the Missouri department of natural resources;
(5) "Net metering", using metering equipment sufficient to measure the difference between the electricity supplied to a customer-generator by a retail electric supplier and the electricity supplied by the customer-generator to the retail electric supplier over the applicable billing period;
(6) "Renewable energy resources", energy produced from wind, solar thermal sources, hydroelectric sources, photovoltaic cells and panels, fuel cells using hydrogen produced by one of the above-named renewable energy sources, and other sources of energy that become available after August 28, 2007, and are certified as renewable by the department;
(7) "Retail electric supplier" or "supplier", any municipal utility, chapter 386, RSMo, electrical corporation, or chapter 394, RSMo, rural electric cooperative that provides retail electric service in this state.
3. A retail electric supplier shall:
(1) Make net metering available to customer-generators on a first-come, first-served basis until the total rated generating capacity of net metering systems equals five percent of the utility's single-hour peak load during the previous year, after which the commission for a public utility or the governing body for other electric utilities may increase the total rated generating capacity of net metering systems to an amount above five percent. However, in a given calendar year, no retail electric supplier shall be required to approve any application for interconnection if the total rated generating capacity of all applications for interconnection already approved to date by such supplier in such calendar year equals or exceeds one percent of such supplier's single-hour peak load for the previous calendar year;
(2) Offer to the customer-generator a tariff or contract that is identical in energy rates, rate structure, and monthly charges to the contract or tariff that the customer would be assigned if the customer were not an eligible customer-generator but shall not charge the customer-generator any additional standby, capacity, interconnection, or other fee or charge that would not otherwise be charged if the customer were not an eligible customer-generator;
(3) Disclose annually the availability of the net metering program to each of its customers with the method of disclosure being at the discretion of the supplier.
4. A customer-generator's facility shall be equipped with sufficient metering equipment that can measure the net amount of energy produced or consumed by the customer-generator. If the customer-generator's existing meter equipment does not meet these requirements, the customer-generator shall reimburse the retail electric supplier for the costs to purchase and install the necessary additional equipment. At the request of the customer-generator, such costs may be initially paid for by the retail electric supplier, and any amount up to the total costs and reasonable interest charge may be recovered from the customer-generator over the course of up to twelve billing cycles. Any subsequent meter testing, maintenance, or meter equipment change necessitated by the customer-generator shall be paid for by the customer-generator.
5. Consistent with the provisions in this section, the net energy measurement shall be calculated in the following manner:
(1) For a customer-generator, a retail electric supplier shall measure the net electricity produced or consumed during the billing period in accordance with normal metering practices for customers in the same rate class either by employing a single, bi-directional meter that measures the amount of electricity produced and consumed, or by employing multiple meters that separately measure the customer-generator's consumption and production of electricity;
(2) If the electricity supplied by the supplier exceeds the electricity generated by the customer-generator during the billing period, the customer-generator shall be billed for the net electricity supplied by the supplier in accordance with normal practices for customers in the same rate class;
(3) If the electricity generated by the customer-generator exceeds the electricity supplied by the supplier during the billing period, the customer-generator shall be billed for the appropriate customer charges for that billing period in accordance with subsection 3 of this section and shall be credited an amount at least equal to the avoided cost of the excess kilowatt-hours generated during the billing period, with this credit applied to the following billing period;
(4) Any credits granted by this subsection shall expire without any compensation at the earlier of either twelve months after their issuance or when the customer-generator disconnects service or terminates the net metering relationship with the supplier;
(5) For any chapter 394, RSMo, rural electric cooperative or municipal utility, upon agreement of the wholesale generator supplying electric energy to the retail electric supplier, at the option of the retail electric supplier, the credit to the customer-generator may be provided by the wholesale generator.
6. (1) Each qualified electric energy generation unit used by a customer-generator shall meet all applicable safety, performance, interconnection, and reliability standards established by any local code authorities, the National Electrical Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories for distributed generation. No supplier shall impose any fee, charge, or other requirement not specifically authorized by this section or the rules promulgated under subsection 9 of this section unless the fee, charge, or other requirement would apply to similarly situated customers who are not customer-generators, except that a retail electric supplier may require that a customer-generator's system contain a switch, circuit breaker, fuse, or other easily accessible device or feature located in immediate proximity to the customer-generator's metering equipment that would allow a utility worker the ability to manually and instantly disconnect the unit from the utility's electric distribution system.
(2) For systems of ten kilowatts or less, a customer-generator whose system meets the standards and rules under subdivision (1) of this subsection shall not be required to install additional controls, perform or pay for additional tests, or purchase additional liability insurance.
(3) For customer-generator systems of greater than ten kilowatts, the commission for public utilities and the governing body for other utilities shall:
(a) Set forth safety, performance, and reliability standards and requirements; and
(b) Establish the qualifications for exemption from a requirement to install additional controls, perform or pay for additional tests, or purchase additional liability insurance.
7. Applications by a customer-generator for interconnection to the distribution system shall be accompanied by the plan for the customer-generator's electrical generating system, including but not limited to a wiring diagram and specifications for the generating unit and shall be reviewed and responded to by the retail electric supplier within thirty days of receipt thereof. Prior to the interconnection of the qualified generation unit to the supplier's system, the customer-generator shall furnish the retail electric supplier a certification from a qualified professional electrician or engineer that the installation meets the requirements of subdivision (1) of subsection 6 of this section. If the application for interconnection is approved by the retail electric supplier and the customer-generator does not complete the interconnection within one year after receipt of notice of the approval, the approval shall expire and the customer-generator shall be responsible for filing a new application.
8. Each commission regulated supplier shall submit an annual net metering report to the commission, and all other nonregulated suppliers shall submit the same report to their respective governing body and make such report available to a consumer of the supplier upon request, including the following information for the previous calendar year:
(1) The total number of customer-generator facilities;
(2) The total estimated generating capacity of its net-metered customer-generators; and
(3) The total estimated net kilowatt-hours received from customer-generators.
9. The commission shall, within nine months of the effective date of this section, promulgate rules necessary for the administration of this section for public utilities, which shall include regulations ensuring that simple contracts will be used for interconnection and net metering. For systems of ten kilowatts or less, the application process shall use an all-in-one document that includes a simplified interconnection request, simplified procedures, and a brief set of terms and conditions. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly under chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2007, shall be invalid and void.
10. The governing body of a rural electric cooperative or municipal utility shall, within nine months of August 28, 2007, adopt policies establishing a simple contract to be used for interconnection and net metering. For systems of ten kilowatts or less, the application process shall use an all-in-one document that includes a simple interconnection request, simple procedures, and a brief set of terms and conditions.
11. For any cause of action relating to any damages to property or person caused by the generation unit of a customer-generator or the interconnection thereof, the retail electric supplier shall have no liability absent clear and convincing evidence of fault on the part of the supplier.
12. The estimated generating capacity of all net metering systems operating under the provisions of this section shall count toward the respective retail electric supplier's accomplishment of any renewable energy portfolio target or mandate adopted by the Missouri general assembly.
13. The sale of qualified electric generation units to any customer-generator shall be subject to the provisions of sections 407.700 to 407.720, RSMo. The attorney general shall have the authority to promulgate in accordance with the provisions of chapter 536, RSMo, rules regarding mandatory disclosures of information by sellers of qualified electric generation units. Any interested person who believes that the seller of any electric generation unit is misrepresenting the safety or performance standards of any such systems, or who believes that any electric generation unit poses a danger to any property or person, may report the same to the attorney general, who shall be authorized to investigate such claims and take any necessary and appropriate actions.
14. Any costs incurred under this section by a chapter 386, RSMo, electrical corporation shall be recoverable in that utility's rate structure as approved by the commission.
15. No consumer shall connect or operate an electric generation unit in parallel phase and synchronization with any retail electric supplier without prior approval by such supplier. For a consumer who violates this provision, a supplier may immediately and without notice disconnect the electric facilities of such consumer and terminate such consumer's electric service.
16. The manufacturer of any electric generation unit used by a customer-generator may be held liable for any damages to property or person caused by a defect in the electric generation unit of a customer-generator.
17. The seller, installer, or manufacturer of any electric generation unit who knowingly misrepresents the safety of an electric generation unit may be held liable for any damages to property or person caused by the electric generation unit of a customer-generator.
[386.887. 1. This section shall be known and may be cited as the "Consumer Clean Energy Act".
2. As used in this section, the following terms mean:
(1) "Commission", the public service commission of the state of Missouri;
(2) "Customer-generator", a consumer of electric energy who purchases electric energy from a retail electric energy supplier and is the owner of a qualified net metering unit;
(3) "Local distribution system", facilities for the distribution of electric energy to the ultimate consumer thereof;
(4) "Net energy metering", a measurement of the difference between the electric energy supplied to a customer-generator by a retail electric supplier and the electric energy generated by a customer-generator that is delivered to a local distribution system at the same point of interconnection;
(5) "Qualified net metering unit", an electric generation unit which:
(a) Is owned by a customer-generator;
(b) Is a hydrogen fuel cell or is powered by sun, wind or biomass;
(c) Has an electrical generating system with a capacity of not more than one hundred kilowatts;
(d) Is located on the premises that are owned, operated, leased or otherwise controlled by the customer-generator;
(e) Is interconnected and operates in parallel and in synchronization with a retail electric supplier; and
(f) Is intended primarily to offset part or all of the customer-generator's own electrical requirements;
(6) "Retail electric supplier" or "supplier", any person that sells electric energy to the ultimate consumer thereof;
(7) "Value of electric energy", the total resulting from the application of the appropriate rates, which may be time of use rates at the option of the supplier, to the quantity of electric energy produced from qualified net metering units or to the quantity of electric energy sold to customer-generators.
3. By August 28, 2003, each retail electric supplier shall adopt rates, charges, conditions and contract terms for the purchase from and the sale of electric energy to customer-generators. The commission, in consultation with the department and retail electric suppliers, shall develop a simple contract for such transactions and make it available to eligible customer-generators and retail electric suppliers. Upon agreement of the wholesale generator supplying electric energy to the retail electric supplier, at the option of the retail electric supplier, the purchase from the customer-generator may be by the wholesale generator. Any time of use or other rates charged for electric energy sold to customer-generators shall be the same as those made available to any other customers with the same net electric energy usage pattern including minimum bills and service availability charges. Rates for electric energy generated by the customer- generator from a qualified net generating unit and sold to the retail electric supplier or its wholesale generator shall be the avoided cost (time of use or nontime of use) of the generation used by the retail electric supplier to serve its other customers. Whenever a customer- generator with a qualified net generating unit uses any energy generation method entitled to eligibility under a minimum renewable energy generation requirement, the total amount of energy generated by that method shall be treated as generated by the generator providing electric energy to the retail electric supplier for purposes of such requirement. The wholesale generator, at the option of the retail electric supplier, shall receive credit for emissions avoided by the wholesale generator because of electric energy purchased by the wholesale generator or the retail electric supplier from a qualified net metering unit. If the supplier is required to file tariffs with the commission, the commission shall review the reasonableness of the charges provided in such tariffs.
4. Each retail electric supplier shall calculate the net energy measurement for a customer-generator in the following manner:
(1) The retail electric supplier shall individually measure both the electric energy produced and the electric energy consumed by the customer-generator during each billing period using an electric metering capable of such function, either by a single meter capable of registering the flow of electricity in two directions or by using multiple meters;
(2) If the value of the electric energy supplied by the retail electric supplier exceeds the value of the electric energy delivered by the customer-generator to the retail electric supplier during a billing period, then the customer-generator shall be billed for the net value of the electric energy supplied by the retail electric supplier in accordance with the rates, terms and conditions established by the retail electric supplier for customer-generators; and
(3) If the value of the electric energy generated by the customer-generator exceeds the value of the electric energy supplied by the retail electric supplier, then the customer-generator:
(a) Shall be billed for the appropriate customer charges for that billing period; and
(b) Shall be credited for the excess value of the electric energy generated and supplied to the retail electric supplier during the billing period, with this credit appearing on the bill for the following billing period.
5. A retail electric supplier shall not be required to provide net metering service with respect to additional customer-generators after the date during any calendar year on which the total generating capacity of all customer-generators with qualified net metering units served by that retail electric supplier is equal to or in excess of the lesser of ten thousand kilowatts or one-tenth of one percent of the capacity necessary to meet the company's aggregate customer peak demand for the preceding calendar year.
6. Each retail electric supplier shall maintain and make available to the public records of the total generating capacity of customer-generators of the supplier that are using net metering, the type of generating systems and energy source used by the electric generating systems which customer-generators use. Each such retail electric supplier shall notify the commission when the total generating capacity of such customer-generators is equal to or in excess of the lesser of ten thousand kilowatts or one-tenth of one percent of the capacity necessary to meet the company's aggregate customer peak demand for the preceding calendar year.
7. Each qualified net metering unit used by a customer-generator shall meet all applicable safety, performance, synchronization, interconnection and reliability standards established by the commission, the National Electrical Safety Code, National Electrical Code, the Institute of Electrical, Electronics Engineers, and Underwriters Laboratories. Each qualified net metering unit used by a customer- generator shall also meet all reasonable standards and requirements established by the retail electric supplier to enhance employee, consumer and public safety and the reliability of electric service to the customer-generator and other consumers receiving electric service from the retail electric supplier. Each qualified net metering unit used by a customer-generator shall also comply with all applicable local building, electrical and safety codes. The customer-generator shall obtain liability insurance coverage in amounts and coverage as set by the commission by rule applicable to all qualified net metering units.
8. The cost of meeting the standards of subsection 7 of this section and any cost to install additional controls, to install additional metering, to perform or pay for additional tests or analysis of the effect of the operation of the qualified net metering unit on the local distribution system shall be paid by the customer-generator.
9. Applications by a customer-generator for interconnection to the distribution system shall include a copy of the plans and specifications for the qualified net metering unit for review and acceptance by the retail electric supplier. Prior to connection of the qualified net metering unit to the distribution system, the customer-generator will furnish the retail electric supplier a certification from a qualified professional electrician or engineer that the installation meets the requirements of subsection 7 of this section. Such applications shall be reviewed and responded to by the retail electric supplier within ninety days. If the application for interconnection is approved by the retail electric supplier, the retail electric supplier shall complete the interconnection within fifteen days if electric service already exists to the premises, unless a later date is mutually agreeable to both the customer-generator and the retail electric supplier.
10. The sale of qualified net metering units shall be subject to the provisions of sections 407.700 to 407.720, RSMo. The attorney general shall have the authority to promulgate in accordance with the provisions of chapter 536, RSMo, rules regarding mandatory disclosures of information by sellers of qualified net metering units. Such rules shall as a minimum require disclosure or the standards of subsection 7 of this section and potential liability of the owner or operator of a qualified net metering unit to third persons for personal injury or property damage as a result of negligent operation of a qualified net metering unit. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2002, shall be invalid and void.]
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