FIRSTREGULARSESSION
HOUSEBILLNO.370
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEBANDERMAN.
0752H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection386.890,RSMo,andtoenactinlieuthereofonenewsectionrelatingtonet
metering.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section386.890,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection386.890,toreadasfollows:
386.890.1.Thissectionshallbeknownandmaybecitedasthe"NetMeteringand
2EasyConnectionAct".
3 2.Asusedinthissection,thefollowingtermsshallmean:
4 (1)"Avoidedfuelcost",thecurrentaveragecostoffuelfortheentitygenerating
5electricity,asdefinedbythegoverningbodywithjurisdictionoveranymunicipalelectric
6utility,ruralelectriccooperativeasprovidedinchapter394,orelectricalcorporationas
7providedinthischapter;
8 (2)"Commission",thepublicservicecommissionofthestateofMissouri;
9 (3)"Customer-generator",anindividualperson,corporation,limitedliability
10company,orotherorganizationthatistheowneroroperatorofaqualifiedelectricenergy
11generationunitwhich:
12 (a)Ispoweredbyarenewableenergyresource;
13 (b)Hasanelectricalgeneratingsystemwithanameplatecapacityofnotmorethan
14onehundredkilowattsandislocatedatthepremiseswheretheelectricalenergyis
15consumedbythecustomer-generator;
16 (c)Islocatedonapremisesowned,operated,leased,orotherwisecontrolledbythe
17customer-generator;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 (d)Isinterconnectedandoperatesinparallelphaseandsynchronizationwitharetail
19electricsupplierandhasbeenapprovedbysaidretailelectricsupplier;
20 (e)Isintendedandsizedprimarilytooffsetpartorallofthecustomer-generator's
21ownelectricalenergyrequirements;
22 (f)Meetsallapplicablesafety,performance,interconnection,andreliabilitystandards
23establishedbytheNationalElectricalCode,theNationalElectricalSafetyCode,theInstitute
24ofElectricalandElectronicsEngineers,UnderwritersLaboratories,theFederalEnergy
25RegulatoryCommission,andanylocalgoverningauthorities;and
26 (g)Containsamechanismthatautomaticallydisablestheunitandinterruptstheflow
27ofelectricitybackontothesupplier'selectricitylinesintheeventthatservicetothecustomer-
28generatorisinterrupted;
29 (4)"Department",thedepartmentofnaturalresources;
30 (5)"Netmetering",[usingmeteringequipmentsufficienttomeasure] abillingoption
31thatmeasuresthe[differencebetweentheelectricalenergy]amountoftheelectricityin
32kilowatthourssuppliedbyaretailelectricsuppliertoacustomer-generator[byaretail
33electricsupplierandtheelectricalenergysupplied] andseparatelymeasurestheamountof
34electricityinkilowatthoursgeneratedbythecustomer-generatorandfedbacktotheretail
35electricsupplier[overtheapplicablebillingperiod];
36 (6)"Renewableenergyresources",electricalenergyproducedfromwind,solar
37thermalsources,hydroelectricsources,photovoltaiccellsandpanels,fuelcellsusing
38hydrogenproducedbyoneoftheabove-namedelectricalenergysources,andothersourcesof
39energythatbecomeavailableafterAugust28,2007,andarecertifiedasrenewablebythe
40department;
41 (7)"Retailelectricsupplier"or"supplier",anymunicipallyownedelectricutility
42operatingunderchapter91,electricalcorporationregulatedbythecommissionunderthis
43chapter,orruralelectriccooperativeoperatingunderchapter394thatprovidesretailelectric
44serviceinthisstate.Anelectricalcorporationthatoperatesunderacooperativebusinessplan
45asdescribedinsubsection2ofsection393.110shallbedeemedtobearuralelectric
46cooperativeforpurposesofthissection.
47 3.Aretailelectricsuppliershall:
48 (1)Makenetmeteringavailabletocustomer-generatorsonafirst-come,first-served
49basisuntilthetotalratedgeneratingcapacityofnetmeteringsystemsequalsfivepercentof
50theretailelectricsupplier'ssingle-hourpeakloadduringthepreviousyear,afterwhichthe
51commissionforanelectricalcorporationortherespectivegoverningbodyofotherretail
52electricsuppliersmayincreasethetotalratedgeneratingcapacityofnetmeteringsystemsto
53anamountabovefivepercent.However,inagivencalendaryear,noretailelectricsupplier
54shallberequiredtoapproveanyapplicationforinterconnectionifthetotalratedgenerating
HB370 2 55capacityofallapplicationsforinterconnectionalreadyapprovedtodatebysaidsupplierin
56saidcalendaryearequalsorexceedsonepercentofsaidsupplier'ssingle-hourpeakloadfor
57thepreviouscalendaryear;
58 (2)Offernetmeteringtothecustomer-generatorpursuanttoacommission-
59approvedtariffofanelectricalcorporationorcontractapprovedbytherespective
60governingbodyofotherretailelectricsuppliersunderoneofthefollowingoptions:
61 (a)Atratesthat[is]areidenticalinelectricalenergyrates,ratestructure,and
62monthlychargestothecontractortariffthatthecustomerwouldbeassignedifthecustomer
63werenotaneligiblecustomer-generator[butshallnotchargethecustomer-generatorany
64additionalstandby,capacity,interconnection,orotherfeeorchargethatwouldnototherwise
65bechargedifthecustomerwerenotaneligiblecustomer-generator]; or
66 (b)Withenergyanddemandrates,ratestructure,andrecurringmonthly
67chargesthatarereasonablycalculatedtorecoverthatportionoftheretailelectric
68supplier'sfixedanddemandcoststhatarenoteliminatedasaresultoftheoperationof
69theeligiblecustomer-generator'seligibleelectricenergygeneratingunit;and
70 (3)Discloseannuallytheavailabilityofthenetmeteringprogramtoeachofits
71customersormemberswiththemethodandmannerofdisclosurebeingatthediscretionof
72theretailelectricsupplier.
73 4.Acustomer-generator'sfacilityshallbeequippedwithsufficientmetering
74equipmentthatcanmeasurethenetamountofelectricalenergyproducedorconsumedbythe
75customer-generator.Ifthecustomer-generator'sexistingmeterequipmentdoesnotmeet
76theserequirementsorifitisnecessaryfortheretailelectricsuppliertoinstalladditional
77distributionequipmenttoaccommodatethecustomer-generator'sfacility,thecustomer-
78generatorshallreimbursetheretailelectricsupplierforthecoststopurchaseandinstallthe
79necessaryadditionalequipmentincluding,butnotlimitedto,necessaryelectric
80distributionsystemupgrades. Attherequestofthecustomer-generator,suchcostsmay
81beinitiallypaidforbytheretailelectricsupplier,andanyamountuptothetotalcostsanda
82reasonableinterestchargemayberecoveredfromthecustomer-generatoroverthecourseof
83uptotwelvebillingcycles.Anysubsequentmetertesting,maintenanceormeterequipment
84changenecessitatedbythecustomer-generatorshallbepaidforbythecustomer-generator.
85 5.Consistentwiththeprovisionsinthissection,thenetelectricalenergy
86measurementshallbecalculatedinthefollowingmanner:
87 (1)Foracustomer-generator,aretailelectricsuppliershallmeasurethenetelectrical
88energyproducedorconsumedduringthebillingperiodinaccordancewithnormalmetering
89practicesforcustomersinthesamerateclass,eitherbyemployingasingle,bidirectional
90meterthatmeasurestheamountofelectricalenergyproducedandconsumed,orby
HB370 3 91employingmultiplemetersthatseparatelymeasurethecustomer-generator'sconsumptionand
92productionofelectricity;
93 (2)Iftheelectricitysuppliedbythesupplierexceedstheelectricitygeneratedbythe
94customer-generatorduringabillingperiod,thecustomer-generatorshallbebilledforthenet
95electricitysuppliedbytheretailelectricsupplierinaccordancewithnormalpracticesfor
96customersinthesamerateclass;
97 (3)Iftheelectricitygeneratedbythecustomer-generatorexceedstheelectricity
98suppliedbythesupplierduringabillingperiod,thecustomer-generatorshallbebilledforthe
99appropriatecustomeranddemandchargesforthatbillingperiodinaccordancewith
100subsection3ofthissectionandshallbecreditedanamountatleastequaltotheavoidedfuel
101costoftheexcesskilowatt-hoursgeneratedduringthebillingperiod,withthiscreditapplied
102tothefollowingbillingperiod;
103 (4)Anycreditsgrantedbythissubsectionshallexpirewithoutanycompensationat
104theearlierofeithertwelvemonthsaftertheirissuanceorwhenthecustomer-generator
105disconnectsserviceorterminatesthenetmeteringrelationshipwiththesupplier;
106 (5)Foranyruralelectriccooperativeunderchapter394,oranymunicipallyowned
107utility,uponagreementofthewholesalegeneratorsupplyingelectricenergytotheretail
108electricsupplier,attheoptionoftheretailelectricsupplier,thecredittothecustomer-
109generatormaybeprovidedbythewholesalegenerator.
110 6.(1)Eachqualifiedelectricenergygenerationunitusedbyacustomer-generator
111shallmeetandbeinstalled,maintained,andrepairedinaccordancewithallapplicable
112safety,performance,interconnection,andreliabilitystandardsestablishedbyanylocalcode
113authorities,theNationalElectricalCode,theNationalElectricalSafetyCode,theInstituteof
114ElectricalandElectronicsEngineers,andUnderwritersLaboratoriesfordistributed
115generation.Allqualifiedelectricenergygenerationunitsutilizingbatterybackup
116shallbeinstalledtooperatecompletelyisolatedfromtheretailelectricsupplier'ssystem
117including,butnotlimitedto,allneutralconnectionsandgroundingpoints,duringtimes
118ofbackupoperation.Unlessallowedundersubdivision(2)ofsubsection3ofthis
119section,noretailelectricsuppliershallimposeanyfee,charge,orotherrequirementnot
120specificallyauthorizedbythissectionortherulespromulgatedundersubsection9ofthis
121sectionunlessthefee,charge,orotherrequirementwouldapplytosimilarlysituated
122customerswhoarenotcustomer-generators,exceptthataretailelectricsuppliermayrequire
123thatacustomer-generator'ssystemcontainadequatesurgeprotectionandaswitch,circuit
124breaker,fuse,orothereasilyaccessibledeviceorfeaturelocatedinimmediateproximityto
125thecustomer-generator'smeteringequipmentthatwouldallowautilityworkeroremergency
126responsepersonneltheabilitytomanuallyandinstantlydisconnecttheunitfromtheutility's
127electricdistributionsystem.
HB370 4 128 (2)Forsystemsoftenkilowattsorless,acustomer-generatorwhosesystemmeetsthe
129standardsandrulesundersubdivision(1)ofthissubsectionshallnotberequiredtoinstall
130additionalcontrols,performorpayforadditionaltestsordistributionequipment,orpurchase
131additionalliabilityinsurancebeyondwhatisrequiredundersubdivision(1)ofthissubsection
132andsubsection4ofthissection.
133 (3)Forcustomer-generatorsystemsofgreaterthantenkilowatts,thecommissionfor
134electricalcorporationsandtherespectivegoverningbodyforotherretailelectricsuppliers
135shall,byruleorequivalentformalactionbyeachrespectivegoverningbody:
136 (a)Setforthsafety,performance,andreliabilitystandardsandrequirements;and
137 (b)Establishthequalificationsforexemptionfromarequirementtoinstalladditional
138controls,performorpayforadditionaltestsordistributionequipment,orpurchaseadditional
139liabilityinsurance.
140 7.(1)Applicationsbyacustomer-generatorforinterconnectionofaqualifiedelectric
141energygenerationunitmeetingtherequirementsofsubdivision(3)ofsubsection2ofthis
142sectiontothedistributionsystemshallbeaccompaniedbytheplanforthecustomer-
143generator'selectricalgeneratingsystem,includingbutnotlimitedtoawiringdiagramand
144specificationsforthegeneratingunit,andshallbereviewedandrespondedtobytheretail
145electricsupplier, unlessmutuallyagreedto,withinthirtydaysofreceiptforsystemsten
146kilowattsorlessandwithinninetydaysofreceiptforallothersystems.Priortothe
147interconnectionofthequalifiedgenerationunittotheretailelectricsupplier'ssystem,the
148customer-generatorwillfurnishtheretailelectricsupplieracertificationfroma[qualified]
149professionalelectricianorengineerdeemedqualifiedbytheretailelectricsupplierthatthe
150installationmeetstherequirementsofsubdivision(1)ofsubsection6ofthissection.Inthe
151eventtheprofessionalelectricianorengineerisnotlicensed,theretailelectricsupplier
152mayrequireabondorotherformofsuretytoensurethesafeinstallationandoperation
153ofthequalifiedelectricenergygenerationunit.Iftheapplicationforinterconnectionis
154approvedbytheretailelectricsupplierandthecustomer-generatordoesnotcompletethe
155interconnectionwithinoneyearafterreceiptofnoticeoftheapproval,theapprovalshall
156expireandthecustomer-generatorshallberesponsibleforfilinganewapplication.
157 (2)Uponthechangeinownershipofaqualifiedelectricenergygenerationunit,the
158newcustomer-generatorshallberesponsibleforfilinganewapplicationundersubdivision
159(1)ofthissubsection.
160 8.Eachelectricalcorporationshallsubmitanannualnetmeteringreporttothe
161commission,andallotherretailelectricsuppliersshallsubmitthesamereporttotheir
162respectivegoverningbodyandmakesaidreportavailabletoaconsumerofthesupplierupon
163request,includingthefollowinginformationforthepreviouscalendaryear:
164 (1)Thetotalnumberofcustomer-generatorfacilities;
HB370 5 165 (2)Thetotalestimatedgeneratingcapacityofitsnet-meteredcustomer-generators;
166and
167 (3)Thetotalestimatednetkilowatt-hoursreceivedfromcustomer-generators.
168 9.Thecommissionshall,withinninemonthsofJanuary1,2008,promulgateinitial
169rulesnecessaryfortheadministrationofthissectionforelectricalcorporations,whichshall
170includeregulationsensuringthatsimplecontractswillbeusedforinterconnectionandnet
171metering.Forsystemsoftenkilowattsorless,theapplicationprocessshalluseanall-in-one
172documentthatincludesasimpleinterconnectionrequest,simpleprocedures,andabriefsetof
173termsandconditions.Anyruleorportionofarule,asthattermisdefinedinsection536.010,
174thatiscreatedundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifit
175complieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section
176536.028.Thissectionandchapter536arenonseverableandifanyofthepowersvestedwith
177thegeneralassemblyunderchapter536toreview,todelaytheeffectivedate,ortodisapprove
178andannularulearesubsequentlyheldunconstitutional,thenthegrantofrulemaking
179authorityandanyruleproposedoradoptedafterAugust28,2007,shallbeinvalidandvoid.
180 10.Thegoverningbodyofaruralelectriccooperativeormunicipalutilityshall,
181withinninemonthsofJanuary1,2008,adoptpoliciesestablishingasimplecontracttobe
182usedforinterconnectionandnetmetering.Forsystemsoftenkilowattsorless,the
183applicationprocessshalluseanall-in-onedocumentthatincludesasimpleinterconnection
184request,simpleprocedures,andabriefsetoftermsandconditions.
185 11.Foranycauseofactionrelatingtoanydamagestopropertyorpersoncausedby
186thequalifiedelectricenergygenerationunitofacustomer-generatorortheinterconnection
187thereof,theretailelectricsuppliershallhavenoliabilityabsentclearandconvincingevidence
188offaultonthepartofthesupplier.
189 12.Theestimatedgeneratingcapacityofallnetmeteringsystemsoperatingunderthe
190provisionsofthissectionshallcounttowardstherespectiveretailelectricsupplier's
191accomplishmentofanyrenewableenergyportfoliotargetormandateadoptedbytheMissouri
192generalassemblyandforpurposesofcompliancewithanyapplicablefederallaw.
193 13.Thesaleofqualifiedelectricenergygenerationunitstoanycustomer-generator
194shallbesubjecttotheprovisionsofsections407.010to407.145andsections407.700to
195407.720.Theattorneygeneralshallhavetheauthoritytopromulgateinaccordancewiththe
196provisionsofchapter536rulesregardingmandatorydisclosuresofinformationbysellersof
197qualifiedelectricenergygenerationunits.Anyinterestedpersonwhobelievesthattheseller
198ofanyqualifiedelectricenergygenerationunitismisrepresentingthesafetyorperformance
199standardsofanysuchsystems,orwhobelievesthatanyelectricenergygenerationunitposes
200adangertoanypropertyorperson,mayreportthesametotheattorneygeneral,whoshallbe
201authorizedtoinvestigatesuchclaimsandtakeanynecessaryandappropriateactions.
HB370 6 202 14.Anycostsincurredunderthisactbyaretailelectricsuppliershallberecoverable
203inthatutility'sratestructure.
204 15.Noconsumershallconnectoroperateaqualifiedelectricenergygenerationunit
205inparallelphaseandsynchronizationwithanyretailelectricsupplierwithoutwritten
206approvalbysaidsupplierthatalloftherequirementsundersubdivision(1)ofsubsection7of
207thissectionhavebeenmet.Foraconsumerwhoviolatesthisprovision,asuppliermay
208immediatelyandwithoutnoticedisconnecttheelectricfacilitiesofsaidconsumerand
209terminatesaidconsumer'selectricservice.
210 16.Themanufacturerofanyqualifiedelectricenergygenerationunitusedbya
211customer-generatormaybeheldliableforanydamagestopropertyorpersoncausedbya
212defectinthequalifiedelectricenergygenerationunitofacustomer-generator.
213 17.Theseller,installer,ormanufacturerofanyqualifiedelectricenergygeneration
214unitwhoknowinglymisrepresentsthesafetyaspectsofaqualifiedelectricgenerationunit
215maybeheldliableforanydamagestopropertyorpersoncausedbythequalifiedelectric
216energygenerationunitofacustomer-generator.
217 18.Anyperson,notaretailelectricsupplier,whosellsaqualifiedelectricenergy
218generationunitorwhoprovidesanetmeteringservicetoacustomer-generatorunder
219thissectionshall:
220 (1)Provideaprospectiveorexistingcustomer-generatoraminimumoffive
221businessdaystoevaluateaproposaltoconstructaqualifiedelectricgenerationunitto
222provideallorpartoftheprospectiveorexistingcustomer-generator’sneedsforelectric
223energywithinasingleretailelectricsupplier’sallocatedserviceterritory.Theproposal
224totheprospectiveorexistingcustomer-generatorshallinclude:
225 (a)Adescriptionofthequalifiedelectricgenerationunitanditsplacementon
226thecustomer-generator’spremisesconsistentwiththerequirementsofthissection;
227 (b)Adescriptionofthenameplategeneratingcapacityandexpectedmonthly
228andannualoutputofthequalifiedelectricgenerationunitinkilowatthours;
229 (c)Theestimatedannualdegradationtothequalifiedelectricgenerationunit;
230 (d)Anestimatedtimelinefortheinstallationofthequalifiedelectricgeneration
231unit;
232 (e)Thetotalcostofthequalifiedelectricgenerationunit;
233 (f)Theamountsdueatsigningforandthecompletionoftheinstallation;
234 (g)Thepaymentschedule;
235 (h)Thepaybackperiod;
236 (i)Theforecastedsavingsmonthlyandannualbillsavingsprovidedbythe
237proposedqualifiedelectricgenerationunitindollarsbasedontheretailelectric
238supplier’sratestructuretobeobtaineddirectlyfromtheretailelectricsupplier;
HB370 7 239 (j)Adescriptionofanywarrantiesandthelengthofanywarranties;
240 (k)Noticethattheprospectiveorexistingcustomer-generatormayfilea
241complaintwiththeattorneygeneral;and
242 (l)Certifythattheplacementofanysolarpanelswillbeappropriatetoprovide
243themaximumyieldofenergytothecustomer-generatorandwillprovidetheoutputas
244statedintheproposal;
245 (2)Performanenergyefficiencyauditonthepotentialorexistingcustomer-
246generator’spremisestobeservedbytheproposedqualifiedelectricgenerationunitas
247partoftheproposaltosellaqualifiedelectricgenerationunitorprovidenet-metering
248serviceunderthissection;
249 (3)Informtheprospectiveorexistingcustomer-generatoroftheavailableenergy
250efficiencymeasurestoaddresstheresultsoftheauditaspartoftheproposaltosella
251qualifiedelectricgenerationunittoacustomer-generatorunderthissection;and
252 (4)Demonstratetotheproposedorexistingcustomer-generatorthattheperson,
253notaretailelectricsupplier,whosellsaqualifiedelectricgenerationunitorwho
254providesnet-meteringservicestoacustomer-generatorholds:
255 (a)Allrequiredpermitstoinstall,construct,oroperateaqualifiedelectric
256generationunitinthestate,andifthegoverningcounty,municipality,orlocalauthority
257doesnotrequireanelectricalinspection,anexecutedcertificationthatnoelectrical
258inspectionorpermitisrequired;and
259 (b)Abondorotheracceptablefinancialsecuritytoensurepropermaintenance
260ofthequalifiedelectricgenerationunitanddecommissioningofthequalifiedelectric
261generationunit.
262 19.Anyviolationofthissectionmaybeenforcedunderthepowersoftheoffice
263oftheattorneygeneralundertheMissourimerchandisingpracticesact,sections407.010
264to407.130,andundersections570.140to570.145including,withoutlimitation,all
265enforcementpowers.
✔
HB370 8