March 27, 2008, Introduced by Senators PATTERSON, RICHARDVILLE, PRUSI, OLSHOVE and BIRKHOLZ and referred to the Committee on Energy Policy and Public Utilities.
A bill to amend 1939 PA 3, entitled
"An act to provide for the regulation and control of public and
certain private utilities and other services affected with a public
interest within this state; to provide for alternative energy
suppliers; to provide 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 certain 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
facilities; 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 remedies
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:
Sec. 10dd. (1) As used in this section:
(a) "Eligible electric generator" means a system for the
generation of electricity that is fueled by a renewable fuel or a
fuel cell, with a generation capacity limited to the customer's
electric need. An eligible generation system shall not exceed 550
kW.
(b) "Renewable fuel" means a resource that naturally
replenishes over a human, not a geological, time frame ultimately
derived from solar power, solar hot water, or wind power. A
renewable fuel comes from the sun or from thermal inertia of the
ground and minimizes the output of toxic material in the conversion
of the energy.
(2) The commission shall establish a statewide net metering
program not later than 180 days after the effective date of the
amendatory act that added this section. The program shall apply to
all electric utilities and alternative electric suppliers in this
state. Except as otherwise provided under this section, customers
of any class are eligible to interconnect eligible electric
generators with the customer's local electric utility and operate
the generators in parallel with the distribution system. The
program shall be designed for a period of not less than 10 years
and limit each customer to generation capacity designed to meet
only the customer's electric needs.
(3) An electric utility or alternative electric supplier is
not required to allow for net metering that is greater than 2% of
their in-state peak load for the preceding calendar year. The
utility or supplier shall notify the commission if its net metering
program exceeds the 2% requirement under this subsection. Selection
of customers for participation in the net metering program shall be
based on the order in which the applications for participation in
the net metering program are received by the electric utility or
alternate electric supplier.
(4) An electric utility or alternative electric supplier shall
not refuse to provide or discontinue electric service to a customer
solely for the reason that the customer participates in the net
metering program.
(5) The program created under subsection (2) shall include all
of the following:
(a) Statewide uniform interconnection requirements for all
eligible electric generators. The interconnection requirements
shall be designed to protect electric utility workers and equipment
and the general public.
(b) Net metering equipment installation must meet all current
local and state electric and construction code requirements. Any
equipment that is certified by underwriters laboratories is
considered to be eligible equipment and installed in compliance
with this section. Any equipment that is inspected and approved by
the applicable building inspector is considered to be eligible
equipment and installed in compliance with this section.
(c) The minimum qualifications and a certification process for
individuals responsible for the installation of eligible electric
generators. An individual shall not install an eligible electric
generator unless he or she is certified by the commission as a
qualified installer.
(d) A uniform application form and process to be used by all
electric utilities and alternative electric suppliers in this
state. Customers who are served by an alternative electric supplier
shall submit a copy of the application to the electric utility for
the customer's service area.
(6) Each electric utility and alternative electric supplier
shall maintain records of all applications and up-to-date records
of all eligible electric generators located within their service
area.
(7) An electric utility or alternative electric supplier may
charge an application fee not to exceed $100.00. Except as
otherwise provided under this section, no additional fee or charge
may be imposed. The electric utility or alternative electric
supplier shall charge a customer participating in the net metering
program rates and charges identical to those charged other
similarly situated retail customers and shall not charge for
additional standby, capacity, interconnection, or other service
charge. The commission shall establish a cost for each electric
utility and alternative electric supplier to operate a net metering
program. The costs of meeting all program requirements shall be
recovered through the power supply cost recovery mechanism under
sections 6j and 6k. These costs shall include all costs associated
with net metering for a customer except those costs outlined in
subsection (6).
(8) The interconnection requirements shall provide that an
electric utility or alternative electric supplier may, at its own
expense and upon reasonable written notice to the net metering
customer, perform testing and inspection of an eligible electric
generator as is necessary to determine that the system complies
with all applicable electric safety, power quality, and
interconnection requirements.
(9) The interconnection requirements shall require all
eligible electric generators, alternative electric suppliers, and
electric utilities to comply with all applicable federal and state
laws, rules, or regulations and any national standards as
determined by the commission.
(10) Electric meters shall be used to determine the amount of
the customer's use in each billing period, net of any excess energy
their generator delivers to the utility distribution system during
that same billing period.
(11) An electric utility serving over 1,000,000 customers in
this state may provide its customers participating in the net
metering program, at no additional charge, a meter or meters
capable of measuring the flow of energy in both directions.
(12) An electric utility serving fewer than 1,000,000
customers in this state shall provide the meter or meters to its
customers at cost. Only the incremental cost above that for meters
provided by the electric utility to similarly situated
nongenerating customers shall be paid by the eligible customer.
(13) If the quantity of electricity generated by an eligible
electric generator during a billing period exceeds the quantity of
the customer's usage during the billing period, the eligible
customer shall be credited by their supplier of generation service
for the excess kilowatt-hours generated during the billing period.
The credit shall appear on the bill for the following billing
period and determined by 1 of the following:
(a) For systems capable of generating less than 10 kilowatts
or for eligible electric generators using a single bidirectional
meter that measures only the net energy the customer consumes
during any billing period, credit shall be at the same rate the
customer pays for service from the electric utility or alternative
electric supplier.
(b) Except as otherwise provided under subdivision (a), for
eligible electric generators using time-of-day meters, credit shall
be applied for each time-of-day period at their electric utility's
average top incremental cost for the billing period of that time-
of-day period.
(c) Except as otherwise provided under subdivision (a), for
eligible electric generators using interval meters, credit shall be
applied at the electric utility's top incremental cost for each
hour for all kilowatt hours delivered during that hour.