Kansas 2023-2024 Regular Session

Kansas House Bill HB2228 Compare Versions

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11 Session of 2023
22 HOUSE BILL No. 2228
33 By Committee on Energy, Utilities and Telecommunications
44 1-30
55 AN ACT concerning electric public utilities; relating to net metering;
66 requiring electric cooperative public utilities and municipal public
77 utilities to make net-metering available under the net-metering and easy
88 connection act; increasing the system-wide capacity limit for net
99 metered facilities; removing the load-size limitation of certain net-
1010 metered systems; amending K.S.A. 66-1264, 66-1265, 66-1266 and 66-
1111 1267 and repealing the existing sections.
1212 Be it enacted by the Legislature of the State of Kansas:
1313 Section 1. K.S.A. 66-1264 is hereby amended to read as follows: 66-
1414 1264. As used in the net metering and easy connection act:
1515 (a) "Commission" means the state corporation commission.
1616 (b) "Customer-generator" means the owner or operator of a net
1717 metered facility which that:
1818 (1) Is powered by a renewable energy resource;
1919 (2) is located on a premises owned, operated, leased or otherwise
2020 controlled by the customer-generator;
2121 (3) is interconnected and operates in parallel phase and
2222 synchronization with an affected utility and is in compliance with the
2323 standards established by the affected utility;
2424 (4) is intended primarily to offset part or all of the customer-
2525 generator's own electrical energy requirements; and
2626 (5) contains a mechanism, approved by the utility, that automatically
2727 disables the unit and interrupts the flow of electricity back onto the
2828 supplier's electricity lines in the event that service to the customer-
2929 generator is interrupted.
3030 (c) "Peak demand" shall have the meaning ascribed thereto means the
3131 same as defined in K.S.A. 66-1257, and amendments thereto.
3232 (d) "Renewable energy resources" shall have the meaning ascribed
3333 thereto means the same as defined in K.S.A. 66-1257, and amendments
3434 thereto.
3535 (e) "Utility" means an investor-owned electric utility, electric
3636 cooperative public utility or municipally owned or operated electric utility.
3737 Sec. 2. K.S.A. 66-1265 is hereby amended to read as follows: 66-
3838 1265. Each utility shall:
3939 (a) Make net metering available to customer-generators on a first-
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7676 come, first-served basis, until the total rated generating capacity of all net
7777 metered systems equals or exceeds one percent 10% of the utility's peak
7878 demand during the previous year. The commission may increase the total
7979 rated generating capacity of all net metered systems to an amount above
8080 one percent 10% after conducting a hearing pursuant to K.S.A. 66-101d,
8181 and amendments thereto;
8282 (b) provide an appropriate class bidirectional meter to the customer-
8383 generator at no charge, but may charge the customer-generator for the cost
8484 of any additional metering or distribution equipment necessary to
8585 accommodate the customer-generator's facility;
8686 (c) disclose annually the availability of the net metering program to
8787 each of its customers with the method and manner of disclosure being at
8888 the discretion of the utility; and
8989 (d) for any customer-generator which began operating its renewable
9090 energy resource under an interconnect agreement with the utility prior to
9191 July 1, 2014, offer to the customer-generator a tariff or contract that is
9292 identical in electrical energy rates, rate structure and monthly charges to
9393 the contract or tariff that the customer would be assigned if the customer
9494 were not an eligible customer-generator and shall not charge the customer-
9595 generator any additional standby, capacity, interconnection or other fee or
9696 charge that would not otherwise be charged if the customer were not an
9797 eligible customer-generator; and
9898 (e) for any customer-generator which began operating its renewable
9999 energy resource under an interconnect agreement with the utility on or
100100 after July 1, 2014, have the option to propose, within an appropriate rate
101101 proceeding, the application of time-of-use rates, minimum bills or other
102102 rate structures that would apply to all such customer-generators
103103 prospectively.
104104 Sec. 3. K.S.A. 66-1266 is hereby amended to read as follows: 66-
105105 1266. (a) Prior to January 1, 2030, For any customer-generator that began
106106 operating a renewable energy resource under an interconnect agreement
107107 with the utility prior to July 1, 2014:
108108 (1) If the electricity supplied by the utility exceeds the electricity
109109 generated by the customer-generator during a billing period, the customer-
110110 generator shall be billed for the net electricity supplied by the utility in
111111 accordance with normal practices for customers in the same rate class.
112112 (2) If such customer-generator generates electricity in excess of the
113113 customer-generator's monthly consumption, all such net excess energy
114114 (NEG), expressed in kilowatt-hours, shall be carried forward from month-
115115 to-month and credited at a ratio of one-to-one against the customer-
116116 generator's energy consumption, expressed in kilowatt-hours, in
117117 subsequent months.
118118 (3) Any interconnect agreement between such customer-generator
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162162 and a utility and all such NEG net excess energy generated under such
163163 agreement shall be transferrable transferable and continue in place until
164164 January 1, 2030, regardless of whether there is a change in ownership of
165165 the property on which the renewable energy resource is located.
166166 (4) Any NEG net excess energy resulting from renewable energy
167167 resources that are installed on and after July 1, 2014, but are part of an
168168 installation of a renewable energy resource that was operating prior to July
169169 1, 2014, shall be carried forward and credited to the customer as if such
170170 resources had begun operation prior to July 1, 2014.
171171 (5) Any net excess energy generation credit remaining in a net-
172172 metering customer's account on March 31 of each year shall expire.
173173 (b) For any customer-generator that began operating a renewable
174174 energy resource under an interconnect agreement with the utility on and
175175 after July 1, 2014:
176176 (1) If the electricity supplied by the utility exceeds the electricity
177177 generated by the customer-generator during a billing period, the customer-
178178 generator shall be billed for the net electricity supplied by the utility.
179179 (2) If such customer-generator generates electricity in excess of the
180180 customer-generator's monthly consumption, all such NEG net excess
181181 energy, expressed in kilowatt-hours, remaining in such customer-
182182 generator's account at the end of each billing period shall be credited to the
183183 customer at a rate of 100% of the utility's monthly system average cost of
184184 energy per kilowatt hour reduced by 25% and carried forward as kilowatt-
185185 hours from month to month against the customer-generator's energy
186186 consumption in subsequent months.
187187 (3) Any interconnect agreement between such customer-generator
188188 and a utility and all such net excess energy generated under such
189189 agreement shall be transferable and continue in place regardless of
190190 whether there is a change in ownership of the property on which the
191191 renewable energy resource is located.
192192 (4) Any net excess energy generation credit remaining in a net-
193193 metering customer's account on March 31 of each year shall expire.
194194 (c) On and after January 1, 2030, for all customer-generators,
195195 regardless of when such customer-generators entered into an interconnect
196196 agreement with the utility:
197197 (1) If the electricity supplied by the utility exceeds the electricity
198198 generated by the customer-generator during a billing period, the customer-
199199 generator shall be billed for the net electricity supplied by the utility; and
200200 (2) if such customer-generator generates electricity in excess of the
201201 customer-generator's monthly consumption, all such NEG remaining in a
202202 customer-generator's account at the end of each billing period shall be
203203 credited to the customer at a rate of 100% of the utility's monthly system
204204 average cost of energy per kilowatt hour.
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248248 Sec. 4. K.S.A. 66-1267 is hereby amended to read as follows: 66-
249249 1267. (a) For customer-generators that began operating a renewable energy
250250 resource under an interconnect agreement with the utility prior to July 1,
251251 2014:
252252 (1) Such utility shall allow:
253253 (A) Residential customer-generators to generate electricity subject to
254254 net metering up to 25 kilowatts; and
255255 (B) commercial, industrial, school, local government, state
256256 government, federal government, agricultural and institutional customer-
257257 generators to generate electricity subject to net metering up to 200
258258 kilowatts.
259259 (2) Nothing in this act shall be construed to prevent such customer-
260260 generators from installing additional renewable energy resources after July
261261 1, 2014, that will generate electricity pursuant to the restrictions contained
262262 in paragraph (1).
263263 (b) For customer-generators that begin operating a renewable energy
264264 resource under an interconnect agreement with the utility after July 1,
265265 2014, such utility shall allow:
266266 (1) All residential customer-generators to generate electricity subject
267267 to net metering up to 15 kilowatts;
268268 (2) commercial, industrial, religious institution, local government,
269269 state government, federal government, agricultural and industrial
270270 customer-generators to generate electricity subject to net metering up to
271271 100 kilowatts, unless otherwise agreed to by the utility and the customer-
272272 generator; and
273273 (3) school customer-generators to generate electricity subject to net
274274 metering up to 150 kilowatts. For the purpose of this section, "school"
275275 means any postsecondary educational institution as defined in K.S.A. 74-
276276 3201b, and amendments thereto, or any public or private school which
277277 provides instruction for students enrolled in grade kindergarten or grades
278278 one through 12 Subject to the provisions of subsection (b), a utility shall
279279 not impose a cap or limit the amount of electricity that a customer-
280280 generator may generate subject to net metering under any interconnect
281281 agreement between a customer-generator and the utility.
282282 (c)(b) Customer-generators shall appropriately size their generation to
283283 system's export capacity subject to net-metering to not exceed their
284284 expected load. Under no circumstance shall a system's maximum system
285285 export capacity subject to net-metering exceed 250 kilowatts of alternating
286286 current power.
287287 (c) The maximum system export capacity shall be determined as
288288 follows:
289289 (1) (A) (i) Divide the customer-generator's historic consumption in
290290 kilowatt-hours for the previous 12-month period by 8,760; and
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334334 (ii) divide the quotient calculated pursuant to subparagraph (A)(i) by
335335 a capacity factor of 0.144; or
336336 (B) if the customer-generator does not have historic consumption
337337 data that adequately reflects the customer's consumption at such premises,
338338 the customer-generator's historic consumption for the previous 12-month
339339 period shall be 7.15 kilowatt-hours per square foot of occupiable space;
340340 and
341341 (2) round up the quotient calculated pursuant to paragraph (1)(A)(ii)
342342 or the amount determined pursuant to paragraph (1)(B) to the nearest
343343 standard size as follows:
344344 (A) Between two kilowatts alternating current power and 20 kilowatts
345345 alternating current power, round up to the nearest two kilowatts
346346 alternating current power increment; and
347347 (B) between 20 kilowatts alternating current power and 250 kilowatts
348348 alternating current power, round up to the nearest five kilowatts
349349 alternating current power increment.
350350 Sec. 5. K.S.A. 66-1264, 66-1265, 66-1266 and 66-1267 are hereby
351351 repealed.
352352 Sec. 6. This act shall take effect and be in force from and after its
353353 publication in the statute book.
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