HOUSE BILL No. 5104


     October 2, 2001, Introduced by Reps. Kolb, Neumann, Bovin, Minore, Thomas, Gieleghem, Hansen, Richardville, Dennis,  Murphy and Lemmons
and referred to the Committee on Energy and Technology.


        A bill to amend 1939 PA 3, entitled

   "An act to provide for the regulation and control of public util-
   ities and other services affected with a public interest within
   this state; to provide for alternative energy suppliers; to pro-
   vide for licensing; to include municipally owned utilities and
   other providers of energy under certain provisions of this act;
   to create a public service commission and to prescribe and define
   its powers and duties; to abolish the Michigan public utilities
   commission and to confer the powers and duties vested by law on
   the public service commission; to provide for the continuance,
   transfer, and completion of certain matters and proceedings; to
   abolish automatic adjustment clauses; to prohibit certain rate
   increases without notice and hearing; to qualify residential
   energy conservation programs permitted under state law for cer-
   tain federal exemption; to create a fund; to provide for a
   restructuring of the manner in which energy is provided in this
   state; to encourage the utilization of resource recovery facili-
   ties; to prohibit certain acts and practices of providers of
   energy; to allow for the securitization of stranded costs; to
   reduce rates; to provide for appeals; to provide appropriations;
   to declare the effect and purpose of this act; to prescribe reme-
   dies and penalties; and to repeal acts and parts of acts,"

   (MCL 460.1 to 460.10cc) by adding section 10dd.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:




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           SEC. 10DD.  (1) THE COMMISSION SHALL ESTABLISH A STATEWIDE

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      NET METERING PROGRAM NOT LATER THAN JULY 1, 2002.  THE PROGRAM

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      SHALL APPLY TO ALL ELECTRIC SUPPLIERS IN THIS STATE.  CUSTOMERS

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      OF ANY CLASS ARE ELIGIBLE TO INTERCONNECT SMALL ELECTRIC GENERA-

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      TORS WITH THEIR LOCAL ELECTRIC DISTRIBUTION COMPANY AND OPERATE

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      THE GENERATORS IN PARALLEL WITH THE DISTRIBUTION SYSTEM.

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      ELECTRIC METERS SHALL BE USED TO DETERMINE THE AMOUNT OF THE

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      CUSTOMER'S USE IN EACH BILLING PERIOD, NET OF ANY EXCESS ENERGY

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      THEIR GENERATOR DELIVERS TO THE UTILITY DISTRIBUTION SYSTEM

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      DURING THAT SAME BILLING PERIOD.  THE PROGRAM SHALL BE DESIGNED

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      FOR A PERIOD OF NOT LESS THAN 10 YEARS.

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           (2) THE PROGRAM SHALL ALLOW A SYSTEM ON THE CUSTOMER'S

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      PREMISES WITH A MAXIMUM SIZE OF 20KW OR 1.25 TIMES THEIR PEAK

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      LOAD, WHICHEVER IS GREATER.

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           (3) THE PROGRAM MAY SET A STATEWIDE LIMIT OF 1% OF UTILITY

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      PEAK LOAD.

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           (4) THE PROGRAM SHALL INCLUDE ALL OF THE FOLLOWING

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      COMPONENTS:

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           (A) GUIDELINES TO ALLOW A RETAIL ELECTRIC CUSTOMER TO INTER-

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      CONNECT AND EMPLOY A NET METERING SYSTEM USING EITHER A

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      KILOWATT-HOUR METER CAPABLE OF REGISTERING THE FLOW OF ELECTRIC-

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      ITY IN 2 DIRECTIONS, OR ANOTHER TYPE OF COMPARABLY EQUIPPED METER

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      THAT WOULD OTHERWISE BE APPLICABLE TO THE CUSTOMER'S USAGE FOR

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      THE USE OF NET METERING.  ANY SYSTEM GREATER THAN 20KW MAY BE

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      REQUIRED TO EMPLOY METERING EQUIPMENT THAT MEASURES THE TIME OF

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      DAY ELECTRICITY WAS FLOWING TO OR FROM THE FACILITY.





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           (B) AN ELECTRICAL SUPPLIER SHALL CHARGE A CUSTOMER-GENERATOR

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      RATES AND CHARGES THAT ARE IDENTICAL TO THOSE THAT WOULD BE

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      CHARGED OTHER RETAIL CUSTOMERS OF THE ELECTRIC COMPANY IN THE

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      SAME RATE CLASS AND SHALL NOT CHARGE A CUSTOMER-GENERATOR ANY

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      ADDITIONAL STANDBY, CAPACITY, INTERCONNECTION, OR OTHER RATE OR

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      CHARGE.

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           (C) IF THE QUANTITY OF ELECTRICITY GENERATED BY A

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      CUSTOMER-GENERATOR DURING A BILLING PERIOD EXCEEDS THE QUANTITY

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      OF ELECTRICITY SUPPLIED BY THE ELECTRIC COMPANY DURING THE BILL-

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      ING PERIOD, THE CUSTOMER-GENERATOR SHALL BE CREDITED FOR THE

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      EXCESS KILOWATT-HOURS GENERATED DURING THE BILLING PERIOD, WITH

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      THE CREDIT APPEARING ON THE BILL FOR THE FOLLOWING BILLING

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      PERIOD.  A CUSTOMER MAY CARRY FORWARD A CREDIT FOR A MAXIMUM OF

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      12 MONTHS.  AT THE END OF THE 12 MONTHS, THE VALUE OF ANY EXCESS

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      ELECTRICITY GENERATED SHALL BE CREDITED BY THE UTILITY TO AN

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      ACCOUNT ESTABLISHED FOR THE BENEFIT OF LOW-INCOME RESIDENTIAL

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      CUSTOMERS.

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           (D) THE COMMISSION SHALL ESTABLISH MINIMUM INTERCONNECTION

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      REQUIREMENTS THAT ARE DESIGNED TO PROTECT UTILITY WORKERS.  A

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      DISTRIBUTOR MAY, AT ITS OWN EXPENSE, AND UPON REASONABLE WRITTEN

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      NOTICE TO A CUSTOMER-GENERATOR, PERFORM SUCH TESTING AND INSPEC-

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      TION OF A NET METERING SYSTEM AS IS NECESSARY TO DEMONSTRATE TO

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      THE SATISFACTION OF THE ELECTRIC COMPANY THAT THE SYSTEM CONFORMS

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      TO APPLICABLE ELECTRIC SAFETY, POWER QUALITY, AND INTERCONNECTION

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      REQUIREMENTS.







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