Session of 2023
HOUSE BILL No. 2228
By Committee on Energy, Utilities and Telecommunications
1-30
AN ACT concerning electric public utilities; relating to net metering;
requiring electric cooperative public utilities and municipal public
utilities to make net-metering available under the net-metering and easy
connection act; increasing the system-wide capacity limit for net
metered facilities; removing the load-size limitation of certain net-
metered systems; amending K.S.A. 66-1264, 66-1265, 66-1266 and 66-
1267 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 66-1264 is hereby amended to read as follows: 66-
1264. As used in the net metering and easy connection act:
(a) "Commission" means the state corporation commission.
(b) "Customer-generator" means the owner or operator of a net
metered facility which that:
(1) Is powered by a renewable energy resource;
(2) is located on a premises owned, operated, leased or otherwise
controlled by the customer-generator;
(3) is interconnected and operates in parallel phase and
synchronization with an affected utility and is in compliance with the
standards established by the affected utility;
(4) is intended primarily to offset part or all of the customer-
generator's own electrical energy requirements; and
(5) contains a mechanism, approved by the utility, that automatically
disables the unit and interrupts the flow of electricity back onto the
supplier's electricity lines in the event that service to the customer-
generator is interrupted.
(c) "Peak demand" shall have the meaning ascribed thereto means the
same as defined in K.S.A. 66-1257, and amendments thereto.
(d) "Renewable energy resources" shall have the meaning ascribed
thereto means the same as defined in K.S.A. 66-1257, and amendments
thereto.
(e) "Utility" means an investor-owned electric utility, electric
cooperative public utility or municipally owned or operated electric utility.
Sec. 2. K.S.A. 66-1265 is hereby amended to read as follows: 66-
1265. Each utility shall:
(a) Make net metering available to customer-generators on a first-
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come, first-served basis, until the total rated generating capacity of all net
metered systems equals or exceeds one percent 10% of the utility's peak
demand during the previous year. The commission may increase the total
rated generating capacity of all net metered systems to an amount above
one percent 10% after conducting a hearing pursuant to K.S.A. 66-101d,
and amendments thereto;
(b) provide an appropriate class bidirectional meter to the customer-
generator at no charge, but may charge the customer-generator for the cost
of any additional metering or distribution equipment necessary to
accommodate the customer-generator's facility;
(c) disclose annually the availability of the net metering program to
each of its customers with the method and manner of disclosure being at
the discretion of the utility; and
(d) for any customer-generator which began operating its renewable
energy resource under an interconnect agreement with the utility prior to
July 1, 2014, offer to the customer-generator a tariff or contract that is
identical in electrical energy rates, rate structure and monthly charges to
the contract or tariff that the customer would be assigned if the customer
were not an eligible customer-generator and shall not charge the customer-
generator any additional standby, capacity, interconnection or other fee or
charge that would not otherwise be charged if the customer were not an
eligible customer-generator; and
(e) for any customer-generator which began operating its renewable
energy resource under an interconnect agreement with the utility on or
after July 1, 2014, have the option to propose, within an appropriate rate
proceeding, the application of time-of-use rates, minimum bills or other
rate structures that would apply to all such customer-generators
prospectively.
Sec. 3. K.S.A. 66-1266 is hereby amended to read as follows: 66-
1266. (a) Prior to January 1, 2030, For any customer-generator that began
operating a renewable energy resource under an interconnect agreement
with the utility prior to July 1, 2014:
(1) If the electricity supplied by the utility exceeds the electricity
generated by the customer-generator during a billing period, the customer-
generator shall be billed for the net electricity supplied by the utility in
accordance with normal practices for customers in the same rate class.
(2) If such customer-generator generates electricity in excess of the
customer-generator's monthly consumption, all such net excess energy
(NEG), expressed in kilowatt-hours, shall be carried forward from month-
to-month and credited at a ratio of one-to-one against the customer-
generator's energy consumption, expressed in kilowatt-hours, in
subsequent months.
(3) Any interconnect agreement between such customer-generator
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and a utility and all such NEG net excess energy generated under such
agreement shall be transferrable transferable and continue in place until
January 1, 2030, regardless of whether there is a change in ownership of
the property on which the renewable energy resource is located.
(4) Any NEG net excess energy resulting from renewable energy
resources that are installed on and after July 1, 2014, but are part of an
installation of a renewable energy resource that was operating prior to July
1, 2014, shall be carried forward and credited to the customer as if such
resources had begun operation prior to July 1, 2014.
(5) Any net excess energy generation credit remaining in a net-
metering customer's account on March 31 of each year shall expire.
(b) For any customer-generator that began operating a renewable
energy resource under an interconnect agreement with the utility on and
after July 1, 2014:
(1) If the electricity supplied by the utility exceeds the electricity
generated by the customer-generator during a billing period, the customer-
generator shall be billed for the net electricity supplied by the utility.
(2) If such customer-generator generates electricity in excess of the
customer-generator's monthly consumption, all such NEG net excess
energy, expressed in kilowatt-hours, remaining in such customer-
generator's account at the end of each billing period shall be credited to the
customer at a rate of 100% of the utility's monthly system average cost of
energy per kilowatt hour reduced by 25% and carried forward as kilowatt-
hours from month to month against the customer-generator's energy
consumption in subsequent months.
(3) Any interconnect agreement between such customer-generator
and a utility and all such net excess energy generated under such
agreement shall be transferable and continue in place regardless of
whether there is a change in ownership of the property on which the
renewable energy resource is located.
(4) Any net excess energy generation credit remaining in a net-
metering customer's account on March 31 of each year shall expire.
(c) On and after January 1, 2030, for all customer-generators,
regardless of when such customer-generators entered into an interconnect
agreement with the utility:
(1) If the electricity supplied by the utility exceeds the electricity
generated by the customer-generator during a billing period, the customer-
generator shall be billed for the net electricity supplied by the utility; and
(2) if such customer-generator generates electricity in excess of the
customer-generator's monthly consumption, all such NEG remaining in a
customer-generator's account at the end of each billing period shall be
credited to the customer at a rate of 100% of the utility's monthly system
average cost of energy per kilowatt hour.
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Sec. 4. K.S.A. 66-1267 is hereby amended to read as follows: 66-
1267. (a) For customer-generators that began operating a renewable energy
resource under an interconnect agreement with the utility prior to July 1,
2014:
(1) Such utility shall allow:
(A) Residential customer-generators to generate electricity subject to
net metering up to 25 kilowatts; and
(B) commercial, industrial, school, local government, state
government, federal government, agricultural and institutional customer-
generators to generate electricity subject to net metering up to 200
kilowatts.
(2) Nothing in this act shall be construed to prevent such customer-
generators from installing additional renewable energy resources after July
1, 2014, that will generate electricity pursuant to the restrictions contained
in paragraph (1).
(b) For customer-generators that begin operating a renewable energy
resource under an interconnect agreement with the utility after July 1,
2014, such utility shall allow:
(1) All residential customer-generators to generate electricity subject
to net metering up to 15 kilowatts;
(2) commercial, industrial, religious institution, local government,
state government, federal government, agricultural and industrial
customer-generators to generate electricity subject to net metering up to
100 kilowatts, unless otherwise agreed to by the utility and the customer-
generator; and
(3) school customer-generators to generate electricity subject to net
metering up to 150 kilowatts. For the purpose of this section, "school"
means any postsecondary educational institution as defined in K.S.A. 74-
3201b, and amendments thereto, or any public or private school which
provides instruction for students enrolled in grade kindergarten or grades
one through 12 Subject to the provisions of subsection (b), a utility shall
not impose a cap or limit the amount of electricity that a customer-
generator may generate subject to net metering under any interconnect
agreement between a customer-generator and the utility.
(c)(b) Customer-generators shall appropriately size their generation to
system's export capacity subject to net-metering to not exceed their
expected load. Under no circumstance shall a system's maximum system
export capacity subject to net-metering exceed 250 kilowatts of alternating
current power.
(c) The maximum system export capacity shall be determined as
follows:
(1) (A) (i) Divide the customer-generator's historic consumption in
kilowatt-hours for the previous 12-month period by 8,760; and
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(ii) divide the quotient calculated pursuant to subparagraph (A)(i) by
a capacity factor of 0.144; or
(B) if the customer-generator does not have historic consumption
data that adequately reflects the customer's consumption at such premises,
the customer-generator's historic consumption for the previous 12-month
period shall be 7.15 kilowatt-hours per square foot of occupiable space;
and
(2) round up the quotient calculated pursuant to paragraph (1)(A)(ii)
or the amount determined pursuant to paragraph (1)(B) to the nearest
standard size as follows:
(A) Between two kilowatts alternating current power and 20 kilowatts
alternating current power, round up to the nearest two kilowatts
alternating current power increment; and
(B) between 20 kilowatts alternating current power and 250 kilowatts
alternating current power, round up to the nearest five kilowatts
alternating current power increment.
Sec. 5. K.S.A. 66-1264, 66-1265, 66-1266 and 66-1267 are hereby
repealed.
Sec. 6. This act shall take effect and be in force from and after its
publication in the statute book.
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