HOUSE BILL No. 4652

 

March 19, 2009, Introduced by Rep. Opsommer and referred to the Committee on Energy and Technology.

 

     A bill to amend 2008 PA 295, entitled

 

"Clean, renewable, and efficient energy act,"

 

by amending the heading of part 5, the title, and sections 3, 5, 7,

 

13, 173, 175, 177, and 179 (MCL 460.1003, 460.1005, 460.1007,

 

460.1013, 460.1173, 460.1175, 460.1177, and 460.1179) and by adding

 

section 173b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to require certain providers of electric service to

 

establish renewable energy programs; to require certain providers

 

of electric or natural gas service to establish energy optimization

 

programs; to authorize the use of certain energy systems to meet

 

the requirements of those programs; to provide for the approval of

 

energy optimization service companies; to provide for certain

 


charges on electric and natural gas bills; to promote energy

 

conservation by state agencies and the public; to create a wind

 

energy resource zone board and provide for its power and duties; to

 

authorize the creation and implementation of wind energy resource

 

zones; to provide for expedited transmission line siting

 

certificates; to provide for a net metering program and an expanded

 

capacity metering program and the responsibilities of certain

 

providers of electric service and customers with respect to net

 

metering those programs; to provide for fees; to prescribe the

 

powers and duties of certain state agencies and officials; to

 

require the promulgation of rules and the issuance of orders; and

 

to provide for civil sanctions, remedies, and penalties.

 

     Sec. 3. As used in this act:

 

     (a) "Advanced cleaner energy" means electricity generated

 

using an advanced cleaner energy system.

 

     (b) "Advanced cleaner energy credit" means a credit certified

 

under section 43 that represents generated advanced cleaner energy.

 

     (c) "Advanced cleaner energy system" means any of the

 

following:

 

     (i) A gasification facility.

 

     (ii) An industrial cogeneration facility.

 

     (iii) A coal-fired electric generating facility if 85% or more

 

of the carbon dioxide emissions are captured and permanently

 

geologically sequestered.

 

     (iv) An electric generating facility or system that uses

 

technologies not in commercial operation on the effective date of

 

this act October 6, 2008.

 


     (d) "Affiliated transmission company" means that term as

 

defined in section 2 of the electric transmission line

 

certification act, 1995 PA 30, MCL 460.562.

 

     (e) "Applicable regional transmission organization" means a

 

nonprofit, member-based organization governed by an independent

 

board of directors that serves as the federal energy regulatory

 

commission-approved commission approved regional transmission

 

organization with oversight responsibility for the region that

 

includes the provider's service territory.

 

     (f) "Biomass" means any organic matter that is not derived

 

from fossil fuels, that can be converted to usable fuel for the

 

production of energy, and that replenishes over a human, not a

 

geological, time frame, including, but not limited to, all of the

 

following:

 

     (i) Agricultural crops and crop wastes.

 

     (ii) Short-rotation energy crops.

 

     (iii) Herbaceous plants.

 

     (iv) Trees and wood, but only if derived from sustainably

 

managed forests or procurement systems, as defined in section 261c

 

of the management and budget act, 1984 PA 431, MCL 18.1261c.

 

     (v) Paper and pulp products.

 

     (vi) Precommercial wood thinning waste, brush, or yard waste.

 

     (vii) Wood wastes and residues from the processing of wood

 

products or paper.

 

     (viii) Animal wastes.

 

     (ix) Wastewater sludge or sewage.

 

     (x) Aquatic plants.

 


     (xi) Food production and processing waste.

 

     (xii) Organic by-products from the production of biofuels.

 

     (g) "Board" means the wind energy resource zone board created

 

under section 143.

 

     (h) "Carbon dioxide emissions benefits" means that the carbon

 

dioxide emissions per megawatt hour of electricity generated by the

 

advanced cleaner energy system are at least 85% less or, for an

 

integrated gasification combined cycle facility, 70% less than the

 

average carbon dioxide emissions per megawatt hour of electricity

 

generated from all coal-fired electric generating facilities

 

operating in this state on January 1, 2008.

 

     (i) "Commission" means the Michigan public service commission.

 

     (j) "Customer meter" means an electric meter of a provider's

 

retail customer. Customer meter does not include a municipal water

 

pumping meter or additional meters at a single site that were

 

installed specifically to support interruptible air conditioning,

 

interruptible water heating, net metering, expanded capacity

 

metering, or time-of-day tariffs.

 

     Sec. 5. As used in this act:

 

     (a) "Electric provider", subject to sections 21(1), 23(1), and

 

25(1), means any of the following:

 

     (i) Any person or entity that is regulated by the commission

 

for the purpose of selling electricity to retail customers in this

 

state.

 

     (ii) A municipally-owned electric utility in this state.

 

     (iii) A cooperative electric utility in this state.

 

     (iv) Except as used in subpart B of part 2, an alternative

 


electric supplier licensed under section 10a of 1939 PA 3, MCL

 

460.10a.

 

     (b) "Eligible expanded capacity generator" means any of the

 

following:

 

     (i) A renewable energy system that is owned by or under the

 

control of the governing board of a public school with more than 50

 

students, that is located at and provides electricity to the public

 

school, and that has a designed capacity of not more than 300% of

 

the electricity needs of the public school or 550 kilowatts,

 

whichever is less.

 

     (ii) A renewable energy system that is owned by or under the

 

control of this state, that is located at and provides electricity

 

to a building, or group of buildings at the same site, owned by or

 

under the control of this state, and that has a designed capacity

 

of not more than 150% of the electricity needs of the building or

 

buildings or 550 kilowatts, whichever is less.

 

     (iii) A methane digester that utilizes livestock waste as the

 

primary feedstock, that is owned by or under the control of a farm,

 

that is located at and provides electricity to the farm, and that

 

has a designed capacity of not more than 550 kilowatts.

 

     (iv) A starved air low temperature advanced waste to energy

 

gasification technology that utilizes livestock waste as the

 

primary feedstock to make a combustible syngas at less than 1200o F,

 

that is owned by or under the control of a farm, that is located at

 

and provides electricity to the farm, and that has a designed

 

capacity of not more than 550 kilowatts.

 

     (c) (b) "Eligible electric net metering generator" means that

 


a methane digester or renewable energy system with a generation

 

capacity limited to the customer's electric need and that does not

 

exceed the following:

 

     (i) For a renewable energy system, 150 kilowatts of aggregate

 

generation at a single site.

 

     (ii) For a methane digester, 550 kilowatts of aggregate

 

generation at a single site.

 

     (d) (c) "Energy conservation" means the reduction of customer

 

energy use through the installation of measures or changes in

 

energy usage behavior. Energy conservation does not include the use

 

of advanced cleaner energy systems.

 

     (e) (d) "Energy efficiency" means a decrease in customer

 

consumption of electricity or natural gas achieved through measures

 

or programs that target customer behavior, equipment, devices, or

 

materials without reducing the quality of energy services.

 

     (f) (e) "Energy optimization", subject to subdivision (f) (g),

 

means all of the following:

 

     (i) Energy efficiency.

 

     (ii) Load management, to the extent that the load management

 

reduces overall energy usage.

 

     (iii) Energy conservation, but only to the extent that the

 

decreases in the consumption of electricity produced by energy

 

conservation are objectively measurable and attributable to an

 

energy optimization plan.

 

     (g) (f) Energy optimization does not include electric provider

 

infrastructure projects that are approved for cost recovery by the

 

commission other than as provided in this act.

 


     (h) (g) "Energy optimization credit" means a credit certified

 

pursuant to section 87 that represents achieved energy

 

optimization.

 

     (i) (h) "Energy optimization plan" or "EO plan" means a plan

 

approved under section 71 73.

 

     (j) (i) "Energy optimization standard" means the minimum

 

energy savings required to be achieved under section 77.

 

     (k) (j) "Energy star" means the voluntary partnership among

 

the United States department of energy, the United States

 

environmental protection agency, product manufacturers, local

 

utilities, and retailers to help promote energy efficient products

 

by labeling with the energy star logo, to educate consumers about

 

the benefits of energy efficiency, and to help promote energy

 

efficiency in buildings by benchmarking and rating energy

 

performance.

 

     (l) "Farm" means that term as defined in section 2 of the

 

Michigan right to farm act, 1981 PA 93, MCL 286.472.

 

     (m) (k) "Federal approval" means approval by the applicable

 

regional transmission organization or other federal energy

 

regulatory commission approved transmission planning process of a

 

transmission project that includes the transmission line. Federal

 

approval may be evidenced in any of the following manners:

 

     (i) The proposed transmission line is part of a transmission

 

project included in the applicable regional transmission

 

organization's board-approved transmission expansion plan.

 

     (ii) The applicable regional transmission organization has

 

informed the electric utility, affiliated transmission company, or

 


independent transmission company that a transmission project

 

submitted for an out-of-cycle project review has been approved by

 

the applicable regional transmission organization, and the approved

 

transmission project includes the proposed transmission line.

 

     (iii) If, after the effective date of this act October 6, 2008,

 

the applicable regional transmission organization utilizes another

 

approval process for transmission projects proposed by an electric

 

utility, affiliated transmission company, or independent

 

transmission company, the proposed transmission line is included in

 

a transmission project approved by the applicable regional

 

transmission organization through the approval process developed

 

after the effective date of this act October 6, 2008.

 

     (iv) Any other federal energy regulatory commission approved

 

transmission planning process for a transmission project.

 

     Sec. 7. As used in this act:

 

     (a) "Gasification facility" means a facility located in this

 

state that uses a thermochemical process that does not involve

 

direct combustion, to produce which process produces synthesis gas,

 

composed of carbon monoxide and hydrogen, from carbon-based

 

feedstocks (such as coal, petroleum coke, wood, biomass, hazardous

 

waste, medical waste, industrial waste, and solid waste, including,

 

but not limited to, municipal solid waste, electronic waste, and

 

waste described in section 11514 of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.11514) and that

 

uses the synthesis gas or a mixture of the synthesis gas and

 

methane to generate electricity for commercial use. Gasification

 

facility includes the transmission lines, gas transportation lines

 


and facilities, and associated property and equipment specifically

 

attributable to such a facility. Gasification facility includes,

 

but is not limited to, an integrated gasification combined cycle

 

facility and a plasma arc gasification facility.

 

     (b) "Incremental costs of compliance" means the net revenue

 

required by an electric provider to comply with the renewable

 

energy standard, calculated, for an electric provider whose rates

 

are regulated by the commission, as provided under section 47.

 

     (c) "Independent transmission company" means that term as

 

defined in section 2 of the electric transmission line

 

certification act, 1995 PA 30, MCL 460.562.

 

     (d) "Industrial cogeneration facility" means a facility that

 

generates electricity using industrial thermal energy or industrial

 

waste energy.

 

     (e) "Industrial thermal energy" means thermal energy that is a

 

by-product of an industrial or manufacturing process and that would

 

otherwise be wasted. For the purposes of this subdivision,

 

industrial or manufacturing process does not include the generation

 

of electricity.

 

     (f) "Industrial waste energy" means exhaust gas or flue gas

 

that is a by-product of an industrial or manufacturing process and

 

that would otherwise be wasted. For the purposes of this

 

subdivision, industrial or manufacturing process does not include

 

the generation of electricity.

 

     (g) "Integrated gasification combined cycle facility" means a

 

gasification facility that uses a thermochemical process, including

 

high temperatures and controlled amounts of air and oxygen, to

 


break substances down into their molecular structures and that uses

 

exhaust heat to generate electricity.

 

     (h) "LEED" means the leadership in energy and environmental

 

design green building rating system developed by the United States

 

green building council.

 

     (i) "Load management" means measures or programs that target

 

equipment or devices to result in decreased peak electricity demand

 

such as by shifting demand from a peak to an off-peak period.

 

     (j) "Modified net metering" or "modified expanded capacity

 

metering" means a utility billing method that applies the power

 

supply component of the full retail rate to the net of the

 

bidirectional flow of kilowatt hours across the customer

 

interconnection with the utility distribution system, during a

 

billing period or time-of-use pricing period. A negative net

 

metered quantity during the billing period or during each time-of-

 

use pricing period within the billing period reflects net excess

 

generation for which the customer is entitled to receive credit

 

under section 177(4) 177. Standby charges for modified net metering

 

customers on an energy rate schedule shall be equal to the retail

 

distribution charge applied to the imputed customer usage during

 

the billing period. The imputed customer usage is calculated as the

 

sum of the metered on-site generation and the net of the

 

bidirectional flow of power across the customer interconnection

 

during the billing period. The commission shall establish standby

 

charges for modified net metering customers on demand-based rate

 

schedules that provide an equivalent contribution to utility system

 

costs.

 


     Sec. 13. As used in this act:

 

     (a) "Site" means a contiguous site, regardless of the number

 

of meters at that site. A site that would be contiguous but for the

 

presence of a street, road, or highway shall be considered to be

 

contiguous for the purposes of this subdivision.

 

     (b) "Transmission line" means all structures, equipment, and

 

real property necessary to transfer electricity at system bulk

 

supply voltage of 100 kilovolts or more.

 

     (c) "True net metering" or "true expanded capacity metering"

 

means a utility billing method that applies the full retail rate to

 

the net of the bidirectional flow of kilowatt hours across the

 

customer interconnection with the utility distribution system,

 

during a billing period or time-of-use pricing period. A negative

 

net metered quantity during the billing period or during each time-

 

of-use pricing period within the billing period reflects net excess

 

generation for which the customer is entitled to receive credit

 

under section 177(4) 177.

 

     (d) "Utility system resource cost test" means a standard that

 

is met for an investment in energy optimization if, on a life cycle

 

basis, the total avoided supply-side costs to the provider,

 

including representative values for electricity or natural gas

 

supply, transmission, distribution, and other associated costs, are

 

greater than the total costs to the provider of administering and

 

delivering the energy optimization program, including net costs for

 

any provider incentives paid by customers and capitalized costs

 

recovered under section 89.

 

     (e) "Wind energy conversion system" means a renewable energy

 


system that uses 1 or more wind turbines to generate electricity

 

and has a nameplate capacity of 100 kilowatts or more.

 

     (f) "Wind energy resource zone" or "wind zone" means an area

 

designated by the commission under section 147.

 

                               PART 5.

 

                 NET AND EXPANDED CAPACITY METERING

 

     Sec. 173. (1) The commission shall establish a statewide net

 

metering program by order issued not later than 180 days after the

 

effective date of this act. No later than 180 days after the

 

effective date of this act by April 4, 2009. By April 4, 2009, the

 

commission shall promulgate rules regarding any time limits on the

 

submission of net metering applications or inspections of net

 

metering equipment and any other matters the commission considers

 

necessary to implement this part. Any rules adopted regarding time

 

limits for approval of parallel operation shall recognize

 

reliability and safety complications including those arising from

 

equipment saturation, use of multiple technologies, and proximity

 

to synchronous motor loads. The program shall apply to all electric

 

utilities and alternative electric suppliers in this state. Except

 

as otherwise provided under this part, customers of any class are

 

eligible to interconnect eligible electric net metering generators

 

with the customer's local electric utility and operate the

 

generators in parallel with the distribution system. The net

 

metering 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. The commission may waive

 

the application, interconnection, and installation requirements of

 


for the net metering program under this part for customers

 

participating in the net metering program under the commission's

 

March 29, 2005 order in case no. U-14346.

 

     (2) An electric utility or alternative electric supplier is

 

not required to allow for net metering that is greater than 1% of

 

its in-state peak load for the preceding calendar year. The

 

electric utility or alternative electric supplier shall notify the

 

commission if its net metering program reaches the 1% requirement

 

limit under this subsection. The 1% limit under this subsection

 

shall be allocated as follows:

 

     (a) No more than 0.5% for customers with a system capable of

 

generating 20 kilowatts or less.

 

     (b) No more than 0.25% for customers with a system capable of

 

generating more than 20 kilowatts but not more than 150 kilowatts.

 

     (c) No more than 0.25% for customers with a system capable of

 

generating more than 150 kilowatts.

 

     (3) 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 alternative electric supplier.

 

     (4) An electric utility or alternative electric supplier shall

 

not discontinue or refuse to provide or discontinue electric

 

service to a customer solely for the reason that because the

 

customer participates in the net metering program.

 

     (5) The net metering program created under subsection (1)

 

shall include all of the following:

 

     (a) Statewide uniform interconnection requirements for all

 


eligible electric net metering generators. The interconnection

 

requirements shall be designed to protect electric utility workers

 

and equipment and the general public.

 

     (b) Net metering equipment and its installation must meet all

 

current local and state electric and construction code

 

requirements. Any equipment that is certified by a nationally

 

recognized testing laboratory to IEEE 1547.1 testing standards and

 

in compliance with UL 1741 scope 1.1A, effective May 7, 2007, and

 

installed in compliance with this part is considered to be eligible

 

equipment. Within the time provided by the commission in rules

 

promulgated under subsection (1) and consistent with good utility

 

practice, protection of electric utility workers, protection of

 

electric utility equipment, and protection of the general public,

 

an electric utility may study, confirm, and ensure that an eligible

 

electric net metering generator installation at the customer's site

 

meets the IEEE 1547 anti-islanding requirements. Utility testing

 

and approval of the interconnection and execution of a parallel

 

operating agreement must be completed prior to the equipment

 

operating in parallel with the distribution system of the utility.

 

     (c) 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.

 

     (d) Net metering customers with a system an eligible net

 

metering generator capable of generating 20 kilowatts or less

 

qualify for true net metering.

 


     (e) Net metering customers with a system an eligible net

 

metering generator capable of generating more than 20 kilowatts

 

qualify for modified net metering.

 

     (6) Each electric utility and alternative electric supplier

 

shall maintain records of all applications and up-to-date records

 

of all active eligible electric net metering generators located

 

within their service area.

 

     Sec. 173b. (1) The commission shall establish a statewide

 

expanded capacity metering program by order issued not later than

 

180 days after the effective date of the amendatory act that added

 

this section. No later than 180 days after the effective date of

 

the amendatory act that added this section, the commission shall

 

promulgate rules regarding any time limits on the submission of

 

expanded capacity metering applications or inspections of expanded

 

capacity metering equipment and any other matters the commission

 

considers necessary to implement this part. Any rules adopted

 

regarding time limits for approval of parallel operation shall

 

recognize reliability and safety complications including those

 

arising from equipment saturation, use of multiple technologies,

 

and proximity to synchronous motor loads. The program shall apply

 

to all electric utilities and alternative electric suppliers in

 

this state. Participation in the expanded capacity metering program

 

is limited to public schools with more than 50 students, buildings

 

owned by or under the control of this state, and farms. The

 

expanded capacity metering program shall be designed for a period

 

of not less than 10 years. The commission may waive the

 

application, interconnection, and installation requirements for the

 


expanded capacity metering program for customers participating in

 

the net metering program under the commission's March 29, 2005

 

order in case no. U-14346.

 

     (2) An electric utility or alternative electric supplier is

 

not required to allow for expanded capacity metering that is

 

greater than 1% of its in-state peak load for the preceding

 

calendar year. The electric utility or alternative electric

 

supplier shall notify the commission if its expanded capacity

 

metering program reaches the 1% limit under this subsection. The 1%

 

limit under this subsection shall be allocated as follows:

 

     (a) No more than 0.4% for customers that are public schools.

 

     (b) No more than 0.2% for the government of this state as a

 

customer.

 

     (c) No more than 0.4% for customers that are farms.

 

     (3) Selection of customers for participation in the expanded

 

capacity metering program shall be based on the order in which the

 

applications for participation in the expanded capacity metering

 

program are received by the electric utility or alternative

 

electric supplier.

 

     (4) An electric utility or alternative electric supplier shall

 

not discontinue or refuse to provide electric service to a customer

 

solely because the customer participates in the expanded capacity

 

metering program.

 

     (5) The expanded capacity metering program created under

 

subsection (1) shall include all of the following:

 

     (a) Statewide uniform interconnection requirements for all

 

eligible expanded capacity generators. The interconnection

 


requirements shall be designed to protect electric utility workers

 

and equipment and the general public.

 

     (b) Expanded capacity metering equipment and its installation

 

must meet all current local and state electric and construction

 

code requirements. Any equipment that is certified by a nationally

 

recognized testing laboratory to IEEE 1547.1 testing standards and

 

in compliance with UL 1741 scope 1.1A, effective May 7, 2007, and

 

installed in compliance with this part is considered to be eligible

 

equipment. Within the time provided by the commission in rules

 

promulgated under subsection (1) and consistent with good utility

 

practice, protection of electric utility workers, protection of

 

electric utility equipment, and protection of the general public,

 

an electric utility may study, confirm, and ensure that an eligible

 

expanded capacity generator installation at the customer's site

 

meets the IEEE 1547 anti-islanding requirements. Utility testing

 

and approval of the interconnection and execution of a parallel

 

operating agreement must be completed prior to the equipment

 

operating in parallel with the distribution system of the utility.

 

     (c) 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.

 

     (d) Expanded capacity metering customers with an eligible

 

expanded capacity generator capable of generating 20 kilowatts or

 

less qualify for true expanded capacity metering.

 

     (e) Expanded capacity metering customers with an eligible

 


expanded capacity generator capable of generating more than 20

 

kilowatts qualify for modified expanded capacity metering.

 

     (f) Processes by which public schools or farms that are

 

expanded capacity metering customers, or their agents, can sell

 

excess electrical generation to public schools, state colleges and

 

universities, public libraries, and other select public entities

 

for use at publicly owned buildings within this state, as

 

determined by the commission.

 

     (6) Each electric utility and alternative electric supplier

 

shall maintain records of all applications and up-to-date records

 

of all active eligible expanded capacity generators located within

 

its service area.

 

     Sec. 175. (1) An electric utility or alternative electric

 

supplier may charge a fee not to exceed $100.00 to process an

 

application for net metering or expanded capacity metering. A

 

customer with a system an eligible net metering generator or

 

eligible expanded capacity generator capable of generating more

 

than 20 kilowatts shall pay all interconnection costs. A customer

 

with a system an eligible net metering generator or eligible

 

expanded capacity generator capable of generating more than 150

 

kilowatts shall pay standby costs. Standby charges for modified net

 

metering or modified expanded capacity metering customers on an

 

energy rate schedule shall be equal to the retail distribution

 

charge applied to the imputed customer usage during the billing

 

period. The imputed customer usage is calculated as the sum of the

 

metered on-site generation and the net of the bidirectional flow of

 

power across the customer interconnection during the billing

 


period. The commission shall establish standby charges for modified

 

net metering or modified expanded capacity metering customers on

 

demand-based rate schedules that provide an equivalent contribution

 

to utility system costs. The commission shall recognize the

 

reasonable cost for each electric utility and alternative electric

 

supplier to operate a net metering program and an expanded capacity

 

metering program. For an electric utility with 1,000,000 or more

 

retail customers in this state, the commission shall include in

 

that utility's nonfuel base rates all costs of meeting all program

 

requirements except that all energy costs of the program shall be

 

recovered through the utility's power supply cost recovery

 

mechanism under sections 6j and 6k of 1939 PA 3, MCL 460.6j and

 

460.6k. For an electric utility with less than 1,000,000 base

 

distribution customers in this state, the commission shall allow

 

that utility to recover all energy costs of the program through the

 

power supply cost recovery mechanism under sections 6j and 6k of

 

1939 PA 3, MCL 460.6j and 460.6k, and shall develop a cost recovery

 

mechanism for that utility to contemporaneously recover all other

 

costs of meeting the program requirements.

 

     (2) The interconnection requirements of the a net metering

 

program or expanded capacity metering program shall provide that an

 

electric utility or alternative electric supplier shall, subject to

 

any time requirements imposed by the commission and upon reasonable

 

written notice to the net metering customer, perform testing and

 

inspection of an interconnected eligible electric generator as is

 

necessary to determine that the system complies with all applicable

 

electric safety, power quality, and interconnection requirements.

 


The costs of testing and inspection are considered a cost of

 

operating a net metering program or expanded capacity metering

 

program and shall be recovered under subsection (1).

 

     (3) The interconnection requirements shall require all

 

eligible electric generators, alternative electric suppliers, and

 

electric utilities to comply with all applicable federal, state,

 

and local laws, rules, or regulations, and any national standards

 

as determined by the commission.

 

     Sec. 177. (1) Electric meters shall be used to determine the

 

amount of the customer's energy use in each billing period, net of

 

any excess energy the customer's eligible net metering generator or

 

eligible expanded capacity generator delivers to the utility

 

distribution system during that same billing period. For a customer

 

with a generation system an eligible net metering generator or

 

eligible expanded capacity generator capable of generating more

 

than 20 kilowatts, the utility shall install and utilize a

 

generation meter and a meter or meters capable of measuring the

 

flow of energy in both directions. A customer with a system an

 

eligible net metering generator or eligible expanded capacity

 

generator capable of generating more than 150 kilowatts shall pay

 

the costs of installing any new meters.

 

     (2) An electric utility serving over 1,000,000 customers in

 

this state may provide its customers participating in the net

 

metering program or expanded capacity metering program, at no

 

additional charge, a meter or meters capable of measuring the flow

 

of energy in both directions.

 

     (3) An electric utility serving fewer than 1,000,000 customers

 


in this state shall provide a meter or meters described in

 

subsection (2) to customers participating in the net metering

 

program or expanded capacity metering program 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.

 

     (4) If the quantity of electricity generated and delivered to

 

the utility distribution system by an eligible electric generator

 

during a billing period exceeds the quantity of electricity

 

supplied from the electric utility or alternative electric supplier

 

during the billing period, the eligible customer shall be credited

 

by their supplier of electric generation service shall credit the

 

eligible customer for the excess kilowatt hours generated during

 

the billing period. The credit shall appear on the bill for the

 

following billing period and shall be limited to the total power

 

supply charges on that bill. Any For the net metering program, any

 

excess kilowatt hours not used to offset electric generation

 

charges in the next billing period will shall be carried forward to

 

subsequent billing periods. For the expanded capacity metering

 

program, any excess kilowatt hours not used to offset electric

 

generation charges in the next billing period shall be carried

 

forward to subsequent billing periods, paid to the customer, or

 

sold under section 173b(5)(f), as determined by rules promulgated

 

by the commission under section 173b(1). Notwithstanding any law or

 

regulation, net metering or expanded capacity metering customers

 

shall not receive credits for electric utility transmission or

 

distribution charges. The credit per kilowatt hour for kilowatt

 


hours delivered into the utility's distribution system shall be

 

either of the following:

 

     (a) The monthly average real-time locational marginal price

 

for energy at the commercial pricing node within the electric

 

utility's distribution service territory, or for net metering

 

customers on a time-based rate schedule, the monthly average real-

 

time locational marginal price for energy at the commercial pricing

 

node within the electric utility's distribution service territory

 

during the time-of-use pricing period.

 

     (b) The electric utility's or alternative electric supplier's

 

power supply component of the full retail rate during the billing

 

period or time-of-use pricing period.

 

     Sec. 179. An The person who owns or controls an eligible

 

electric net metering or eligible expanded capacity generator shall

 

own owns any renewable energy credits granted for electricity

 

generated under the net metering program or expanded capacity

 

metering program created in this part.