1822L.01I                                                                                                                                                  D. ADAM CRUMBLISS, Chief Clerk



To amend chapter 393, RSMo, by adding thereto one new section relating to the interconnection of electric generating facilities with utilities.

Be it enacted by the General Assembly of the state of Missouri, as follows:

            Section A. Chapter 393, RSMo, is amended by adding thereto one new section, to be known as section 393.1305, to read as follows:

            393.1305. 1. As used in this section, the following terms shall mean:

            (1) "Commission", the public service commission of the state of Missouri;

            (2) "Electric utility" or "utility", any electrical corporation as defined in section 386.020, any rural electric cooperative, and any municipal utility;

            (3) "Interconnection customer", any customer of an electric utility that is not a customer-generator under section 386.890 and that interconnects a generating facility with the utility under an interconnection agreement under this section.

            2. The commission shall adopt rules for the interconnection of electric generating facilities intended to operate in parallel with an electric utility's system. These rules shall incorporate the applicable standards in the Institute of Electrical and Electronic Engineers' Standard 1547 and Underwriters Laboratory Standard 1741 and may include standards published by the Interstate Renewable Energy Council and standards published by the Federal Energy Regulatory Commission for the interconnection of small generators. Eligible technologies shall be renewable energy resources as defined in section 393.1025 and waste heat recovery. Interconnection agreements, procedures, and fees shall be nondiscriminatory, just, and reasonable and establish uniform, clear, and transparent timelines. The commission shall seek to prevent barriers to new technology, shall not make compliance unduly burdensome and expensive, and shall not require a second meter or an external disconnect switch. The commission shall determine questions about the ability of specific equipment to meet interconnection standards and shall provide for a simple and inexpensive dispute resolution process. The commission shall develop a methodology for calculating utilities' avoided cost based on the capacity and energy costs of a proxy new electric generating unit.

            3. (1) All electric utilities shall have the obligation to connect any customer, including those using distributed generation, located within its service territory to those facilities of the utility that are used for delivery of electric energy, subject to the commission rules and regulation and approved tariff provisions relating to the connection of service. The services provided to each interconnection customer shall be comparable in quality to those provided by the utility to itself or to any affiliate. Utilities shall make available the interconnection studies from facilities previously connected to its systems.

            (2) Rates, prices, terms, and conditions for supporting services supplied by electric and gas utilities to interconnected systems shall be nondiscriminatory, cost-based, just, and reasonable. Rates and charges for standby power and maintenance power shall not be based on assumptions (unless supported by factual data) that forced outages or other reductions in electric output by interconnected systems will occur simultaneously on a utility's system or during the utility's system peak or both.

            (3) An electricity provider shall not charge interconnection customers any fee or charge or require additional equipment, insurance, or any other requirements not specifically authorized by interconnection standards authorized by the commission, unless the fee, charge, or other requirement would apply to other similarly situated customers who are not interconnection customers.

            (4) (a) Interconnection customers shall be allowed to sell excess electricity to their utilities as delivered at the utility's avoided cost, subject to maximum kilowatt-hour limitations that the commission may impose to the extent necessary to ensure reliable operation of the grid.

            (b) Interconnection customers shall not be considered regulated public utilities as defined in section 386.020.

            (c) For interconnection equipment not owned by a utility, the utility shall not be liable for loss, damage, or injury caused directly or indirectly by the equipment except for negligence by the utility in the purchase, installation, or modification of the equipment.

            4. The governing body of a rural electric cooperative or municipal utility shall, within one year of August 28, 2011, adopt policies consistent with the commission's rule adopted under this section and establish simple, standard interconnection contracts.

            5. Any rule or portion of a rule, as that term is defined in section 536.010, 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 and, if applicable, section 536.028. This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly under chapter 536 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, 2011, shall be invalid and void.