KS
Kansas Senate Bill SB422

Kansas 2023-2024 Regular Session

Kansas Senate Bill SB422 Compare Versions

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11 Session of 2024
22 SENATE BILL No. 422
33 By Committee on Utilities
44 Requested by Jessica Lucas on behalf of the Clean Energy Business Council
55 1-30
66 AN ACT concerning electric public utilities; relating to net metering;
77 increasing the system-wide capacity limit for facilities subject to net
88 metering; requiring such facilities to be appropriately sized based on
99 the customer's expected load; establishing requirements for exporting
1010 power to a utility from a facility subject to net metering; amending
1111 K.S.A. 66-1264, 66-1265, 66-1266 and 66-1267 and repealing the
1212 existing sections.
1313 Be it enacted by the Legislature of the State of Kansas:
1414 Section 1. K.S.A. 66-1264 is hereby amended to read as follows: 66-
1515 1264. As used in the net metering and easy connection act:
1616 (a) "Commission" means the state corporation commission.
1717 (b) "Customer-generator" means the owner or operator of a net
1818 metered facility which that:
1919 (1) Is powered by a renewable energy resource;
2020 (2) is located on a premises owned, operated, leased or otherwise
2121 controlled by the customer-generator;
2222 (3) is interconnected and operates in parallel phase and
2323 synchronization with an affected utility and is in compliance with the
2424 standards established by the affected utility;
2525 (4) is intended primarily to offset part or all of the customer-
2626 generator's own electrical energy requirements such that the customer-
2727 generator will fully consume the energy output and will deliver the
2828 remaining energy output and all other services to the utility; and
2929 (5) contains a an underwriter laboratories listed mechanism,
3030 approved by the utility, that automatically disables the unit and interrupts
3131 the flow of electricity back onto the supplier's utility's electricity lines in
3232 the event that service to the customer-generator is interrupted.
3333 (c) "Export" means power that flows from a customer-generator's
3434 electrical system through a customer's billing meter and onto the utility's
3535 electricity lines.
3636 (d) "Generating capacity" means the maximum amount of alternating
3737 current power that a customer generator's net metered system can
3838 produce.
3939 (e) "Peak demand" shall have the meaning ascribed thereto means the
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7575 same as defined in K.S.A. 66-1257, and amendments thereto.
7676 (f) "Permission to operate" means the operational date of the
7777 customer-generator's net metered facility.
7878 (d)(g) "Renewable energy resources" shall have the meaning ascribed
7979 thereto means the same as defined in K.S.A. 66-1257, and amendments
8080 thereto.
8181 (h) "Supplied" means power that flows from the utility's electricity
8282 lines through a customer's billing meter and into a customer-generator's
8383 electrical system.
8484 (e)(i) "Utility" means investor-owned electric utility.
8585 (j) "Witness test" means a representative of the utility is on-site to
8686 measure or verify a specific setting or operational condition.
8787 Sec. 2. K.S.A. 66-1265 is hereby amended to read as follows: 66-
8888 1265. Each utility shall:
8989 (a) (1) Except as provided in paragraph (2), make net metering
9090 available to customer-generators who are in good standing with the utility
9191 on a first-come, first-served basis, until the total rated generating capacity
9292 as approved by the utility of all net metered systems equals or exceeds
9393 one:
9494 (A) Commencing July 1, 2024, percent 2% of the utility's peak
9595 demand during the previous year;
9696 (B) commencing July 1, 2025, 3% of the utility's peak demand during
9797 the previous year;
9898 (C) commencing July 1, 2026, 4% of the utility's peak demand during
9999 the previous year; and
100100 (D) commencing July 1, 2027, 5% of the utility's peak demand.
101101 (2) The commission may increase the total rated generating capacity
102102 of all net metered systems to an amount above one percent 5% after
103103 conducting a hearing pursuant to K.S.A. 66-101d, and amendments
104104 thereto;
105105 (b) provide an appropriate class bidirectional meter to the customer-
106106 generator at no charge, but may charge the customer-generator for the cost
107107 of any additional metering or distribution equipment necessary to
108108 accommodate the customer-generator's facility;
109109 (c) disclose annually the availability of the net metering program to
110110 each of its customers with the method and manner of disclosure being at
111111 the discretion of the utility;
112112 (d) for any customer-generator which that began operating its
113113 renewable energy resource under an interconnect agreement with the
114114 utility prior to July 1, 2014, offer to the customer-generator a tariff or
115115 contract that is identical in electrical energy rates, rate structure and
116116 monthly charges to the contract or tariff that the customer would be
117117 assigned if the customer were not an eligible customer-generator and shall
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161161 not charge the customer-generator any additional standby, capacity,
162162 interconnection or other fee or charge that would not otherwise be charged
163163 if the customer were not an eligible customer-generator; and
164164 (e) for any customer-generator which that began operating its
165165 renewable energy resource under an interconnect agreement with the
166166 utility on or after July 1, 2014, have the option to propose, within an
167167 appropriate rate proceeding, the application of time-of-use rates, minimum
168168 bills, incentive programs or other rate structures that would apply to all
169169 such customer-generators prospectively.
170170 Sec. 3. K.S.A. 66-1266 is hereby amended to read as follows: 66-
171171 1266. (a) Prior to January 1, 2030, for any customer-generator that began
172172 operating a renewable energy resource under an interconnect agreement
173173 with the utility prior to July 1, 2014:
174174 (1) If the electricity supplied by the utility exceeds the electricity
175175 generated exported by the customer-generator during a billing period, the
176176 customer-generator shall be billed for the net electricity supplied by the
177177 utility in accordance with normal practices for customers in the same rate
178178 class.
179179 (2) If such customer-generator generates exports electricity in excess
180180 of the customer-generator's monthly consumption electricity supplied by
181181 the utility, all such net excess energy (NEG) generation, expressed in
182182 kilowatt-hours, shall be carried forward from month-to-month and credited
183183 at a ratio of one-to-one against the customer-generator's energy
184184 consumption electricity supplied by the utility, expressed in kilowatt-hours,
185185 in subsequent months.
186186 (3) Any interconnect agreement between such customer-generator
187187 and a utility and all such NEG generated net excess generation exported
188188 under such agreement shall be transferrable transferable and continue in
189189 place until January 1, 2030, regardless of whether there is a change in
190190 ownership of the property on which where the renewable energy resource
191191 is located.
192192 (4) Any NEG resulting net excess generation exported from
193193 renewable energy resources that are installed on and after July 1, 2014, but
194194 are part of an installation of a renewable energy resource that was
195195 operating prior to July 1, 2014, shall be carried forward and credited to the
196196 customer as if such resources had begun operation prior to July 1, 2014.
197197 (5) Any net excess generation credit remaining in a net-metering
198198 customer's account on March 31 of each year shall expire.
199199 (b) For any customer-generator that began operating a renewable
200200 energy resource under an interconnect agreement with the utility on and
201201 after July 1, 2014:
202202 (1) If the electricity supplied by the utility exceeds the electricity
203203 generated exported by the customer-generator during a billing period, the
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247247 customer-generator shall be billed for the net electricity supplied by the
248248 utility.
249249 (2) If such customer-generator generates exports electricity in excess
250250 of the customer-generator's monthly consumption electricity supplied by
251251 the utility, all such NEG net excess generation remaining in such
252252 customer-generator's account at the end of each billing period shall be
253253 credited to the customer at a rate of at least 100% of the utility's monthly
254254 system average cost of energy per kilowatt hour.
255255 (c) Except as otherwise provided in subsection (d), on and after
256256 January 1, 2030, for all customer-generators, regardless of when such
257257 customer-generators entered into an interconnect agreement with the
258258 utility:
259259 (1) If the electricity supplied by the utility exceeds the electricity
260260 generated exported by the customer-generator during a billing period, the
261261 customer-generator shall be billed for the net electricity supplied by the
262262 utility; and
263263 (2) if such customer-generator generates exports electricity in excess
264264 of the customer-generator's monthly consumption electricity supplied by
265265 the utility, all such NEG net excess generation remaining in a customer-
266266 generator's account at the end of each billing period shall be credited to the
267267 customer at a rate of at least 100% of the utility's monthly system average
268268 cost of energy per kilowatt hour.
269269 (d) For any customer-generator that began operating a renewable
270270 energy resource under an interconnect agreement with the utility on and
271271 after July 1, 2024, and receives service on an optional time-varying rate:
272272 (1) The utility shall measure the net electrical energy exported or
273273 supplied during the billing period for each of the time of use periods
274274 established by the applicable time-varying rate schedule that applies to
275275 the customer-generator's rate class in accordance with normal metering
276276 practices for customers that take service on time-varying rates in that
277277 same rate class;
278278 (2) electricity supplied by the utility shall be netted against the
279279 electricity exported by the customer-generator during each applicable
280280 time of use period;
281281 (3) if the electricity supplied by the utility exceeds the electricity
282282 exported by the customer-generator during any time of use period, the
283283 customer-generator shall be billed for the net electricity supplied by the
284284 utility in each such time of use period as well as all other charges as such
285285 charges are applied to non-customer-generators in the same rate class;
286286 and
287287 (4) if the electricity exported by the customer-generator exceeds the
288288 electricity supplied by the utility during any time of use period, the
289289 customer-generator shall be credited at a rate of at least 100% of the
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333333 utility's monthly system average cost of energy per kilowatt hour, with any
334334 net credit, and net of all other charges as such charges are applied to non-
335335 customer-generators in the same rate class, applied to the next billing
336336 period.
337337 Sec. 4. K.S.A. 66-1267 is hereby amended to read as follows: 66-
338338 1267. (a) For customer-generators that began operating a renewable energy
339339 resource under an interconnect agreement with the utility prior to July 1,
340340 2014:
341341 (1) Such utility shall allow:
342342 (A) Residential customer-generators to generate export electricity
343343 subject to net metering up to 25 kilowatts; and
344344 (B) commercial, industrial, school, local government, state
345345 government, federal government, agricultural and institutional customer-
346346 generators to generate export electricity subject to net metering up to 200
347347 kilowatts.
348348 (2) Nothing in this act shall be construed to prevent such customer-
349349 generators from installing additional renewable energy resources after July
350350 1, 2014, that will generate electricity pursuant to the restrictions contained
351351 in paragraph (1).
352352 (b) For customer-generators that begin operating a renewable energy
353353 resource under an interconnect agreement with the utility after July 1,
354354 2014, such utility shall allow:
355355 (1) All residential customer-generators to generate electricity subject
356356 to net metering up to 15 kilowatts;
357357 (2) commercial, industrial, religious institution, local government,
358358 state government, federal government, agricultural and industrial
359359 customer-generators to generate electricity subject to net metering up to
360360 100 kilowatts, unless otherwise agreed to by the utility and the customer-
361361 generator; and
362362 (3) school customer-generators to generate electricity subject to net
363363 metering up to 150 kilowatts. For the purpose of this section, "school"
364364 means any postsecondary educational institution as defined in K.S.A. 74-
365365 3201b, and amendments thereto, or any public or private school which
366366 provides instruction for students enrolled in grade kindergarten or grades
367367 one through 12 customer-generators to export electricity subject to net
368368 metering up to 150 kilowatts alternating current.
369369 (c) Customer-generators shall appropriately size their generation
370370 export capacity to their expected load as follows:
371371 (1) (A) (i) Divide the customer-generator's historic consumption in
372372 kilowatt-hours for the previous 12-month period by 8,760; and
373373 (ii) divide the quotient calculated pursuant to paragraph (1)(A)(i) by
374374 a capacity factor of 0.144; or
375375 (B) if the customer-generator does not have historic consumption
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419419 data that adequately reflects the customer's consumption at such premises,
420420 the customer-generator's historic consumption for the previous 12-month
421421 period shall be 7.15 kilowatt-hours per square foot of conditioned space;
422422 and
423423 (2) round up the quotient calculated pursuant to paragraph (1)(A)(i)
424424 or the amount determined pursuant to paragraph (1)(B) to the nearest
425425 standard size as follows:
426426 (A) Between two kilowatts alternating current power and 20 kilowatts
427427 alternating current power, round up to the nearest two kilowatts
428428 alternating current power increment; and
429429 (B) between 20 kilowatts alternating current power and 150 kilowatts
430430 alternating current power, round up to the nearest five kilowatts
431431 alternating current power increment.
432432 (d) For customer-generators that operate a renewable energy
433433 resource under an interconnect agreement with the affected utility on or
434434 after January 1, 2026:
435435 (1) The generating capacity of a customer-generator's renewable
436436 energy resource as approved by the affected utility shall not exceed export
437437 capacity by more than 50%; and
438438 (2) energy storage capacity, including electric vehicles or other
439439 portable energy storage devices, shall not be included in any sizing
440440 formulas unless the energy storage device has the ability to add export
441441 capacity and is not part of an export limited system.
442442 (e) For customer-generators that operate a generation resource
443443 designed to export an amount of power that differs from the system's
444444 generating capacity:
445445 (1) The customer-generator shall own and maintain any necessary
446446 export limiting device;
447447 (2) protections shall be in place to restrict the export limiting device
448448 settings to qualified persons;
449449 (3) the utility shall have the option to require a witness test of the
450450 export limiting device's function or set points prior to granting permission
451451 to operate;
452452 (4) the export capacity of the system shall not be increased without
453453 prior approval from the utility;
454454 (5) the customer-generator shall allow the utility to perform periodic
455455 witness testing of the export limiting device's function or settings upon
456456 request;
457457 (6) if the export limiting device's settings are incorrect or if the
458458 device fails to limit the export of power below the designed export
459459 capacity for more than 15 minutes in any single event, the customer-
460460 generator shall cease operation of the system until repair or
461461 reprogramming of the limiting device is completed; and
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505505 (7) the utility shall not restrict the brand or model of the limiting
506506 device if the device is approved by the generator's manufacturer or is
507507 underwriter laboratories listed to perform such operations in conjunction
508508 with the customer-generator's system.
509509 Sec. 5. K.S.A. 66-1264, 66-1265, 66-1266 and 66-1267 are hereby
510510 repealed.
511511 Sec. 6. This act shall take effect and be in force from and after its
512512 publication in the statute book.
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