FIRSTREGULARSESSION
HOUSEBILLNO.940
103RDGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEKNIGHT.
2218H.01I JOSEPHENGLER,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",[usingmeteringequipmentsufficienttomeasurethedifference
31betweentheelectricalenergysuppliedtoacustomer-generatorbyaretailelectricsupplierand
32theelectricalenergysuppliedbythecustomer-generatortotheretailelectricsupplieroverthe
33applicablebillingperiod] abillingoptionthatmeasurestheamountofelectricityas
34measuredinkilowatt-hourssuppliedbyaretailelectricsuppliertoacustomer-
35generatorandseparatelymeasuringtheamountoftheelectricityasmeasuredin
36kilowatt-hoursgeneratedbythecustomer-generatorandfedbacktotheretailelectric
37supplier;
38 (6)"Renewableenergyresources",electricalenergyproducedfromwind,solar
39thermalsources,hydroelectricsources,photovoltaiccellsandpanels,fuelcellsusing
40hydrogenproducedbyoneoftheabove-namedelectricalenergysources,andothersourcesof
41energythatbecomeavailableafterAugust28,2007,andarecertifiedasrenewablebythe
42department;
43 (7)"Retailelectricsupplier"or"supplier",anymunicipallyownedelectricutility
44operatingunderchapter91,electricalcorporationregulatedbythecommissionunderthis
45chapter,orruralelectriccooperativeoperatingunderchapter394thatprovidesretailelectric
46serviceinthisstate.Anelectricalcorporationthatoperatesunderacooperativebusinessplan
47asdescribedinsubsection2ofsection393.110shallbedeemedtobearuralelectric
48cooperativeforpurposesofthissection.
49 3.Aretailelectricsuppliershall:
50 (1)Makenetmeteringavailabletocustomer-generatorsonafirst-come,first-served
51basisuntilthetotalratedgeneratingcapacityofnetmeteringsystemsequalsfivepercentof
52theretailelectricsupplier'ssingle-hourpeakloadduringthepreviousyear,afterwhichthe
53commissionforanelectricalcorporationortherespectivegoverningbodyofotherretail
54electricsuppliersmayincreasethetotalratedgeneratingcapacityofnetmeteringsystemsto
HB940 2 55anamountabovefivepercent.However,inagivencalendaryear,noretailelectricsupplier
56shallberequiredtoapproveanyapplicationforinterconnectionifthetotalratedgenerating
57capacityofallapplicationsforinterconnectionalreadyapprovedtodatebysaidsupplierin
58saidcalendaryearequalsorexceedsonepercentofsaidsupplier'ssingle-hourpeakloadfor
59thepreviouscalendaryear;
60 (2)Offernetmeteringtothecustomer-generatorpursuanttoacommission-
61approvedtariffofanelectricalcorporationorcontractapprovedbytherespective
62governingbodyofotherretailelectricsuppliers,underoneofthefollowingoptions:
63 (a)Atratesthat[is]areidenticalinelectricalenergyrates,ratestructure,and
64monthlychargestothecontractortariffthatthecustomerwouldbeassignedifthecustomer
65werenotaneligiblecustomer-generator[butshallnotchargethecustomer-generatorany
66additionalstandby,capacity,interconnection,orotherfeeorchargethatwouldnototherwise
67bechargedifthecustomerwerenotaneligiblecustomer-generator]; or
68 (b)Withenergyanddemandrates,ratestructure,andrecurringmonthly
69chargesthatarereasonablycalculatedtorecoverthatportionoftheretailelectric
70supplier'sfixedanddemandcoststhatarenoteliminatedasaresultoftheoperationof
71thecustomer-generator'squalifiedelectricenergygeneratingunit;and
72 (3)Discloseannuallytheavailabilityofthenetmeteringprogramtoeachofits
73customersormemberswiththemethodandmannerofdisclosurebeingatthediscretionof
74theretailelectricsupplier.
75 4.Acustomer-generator'sfacilityshallbeequippedwithsufficientmetering
76equipmentthatcanmeasurethenetamountofelectricalenergyproducedorconsumedbythe
77customer-generator.Ifthecustomer-generator'sexistingmeterequipmentdoesnotmeet
78theserequirementsorifitisnecessaryfortheretailelectricsuppliertoinstalladditional
79distributionequipmenttoaccommodatethecustomer-generator'sfacility,thecustomer-
80generatorshallreimbursetheretailelectricsupplierforthecoststopurchaseandinstallthe
81necessaryadditionalequipmentincluding,butnotlimitedto,necessaryelectric
82distributionsystemupgrades. Attherequestofthecustomer-generator,suchcostsmay
83beinitiallypaidforbytheretailelectricsupplier,andanyamountuptothetotalcostsanda
84reasonableinterestchargemayberecoveredfromthecustomer-generatoroverthecourseof
85uptotwelvebillingcycles.Anysubsequentmetertesting,maintenanceormeterequipment
86changenecessitatedbythecustomer-generatorshallbepaidforbythecustomer-generator.
87 5.Consistentwiththeprovisionsinthissection,thenetelectricalenergy
88measurementshallbecalculatedinthefollowingmanner:
89 (1)Foracustomer-generator,aretailelectricsuppliershallmeasurethenetelectrical
90energyproducedorconsumedduringthebillingperiodinaccordancewithnormalmetering
91practicesforcustomersinthesamerateclass,eitherbyemployingasingle,bidirectional
HB940 3 92meterthatmeasurestheamountofelectricalenergyproducedandconsumed,orby
93employingmultiplemetersthatseparatelymeasurethecustomer-generator'sconsumptionand
94productionofelectricity;
95 (2)Iftheelectricitysuppliedbythesupplierexceedstheelectricitygeneratedbythe
96customer-generatorduringabillingperiod,thecustomer-generatorshallbebilledforthenet
97electricitysuppliedbytheretailelectricsupplierinaccordancewithnormalpracticesfor
98customersinthesamerateclass;
99 (3)Iftheelectricitygeneratedbythecustomer-generatorexceedstheelectricity
100suppliedbythesupplierduringabillingperiod,thecustomer-generatorshallbebilledforthe
101appropriatecustomeranddemandchargesforthatbillingperiodinaccordancewith
102subsection3ofthissectionandshallbecreditedanamountatleastequaltotheavoidedfuel
103costoftheexcesskilowatt-hoursgeneratedduringthebillingperiod,withthiscreditapplied
104tothefollowingbillingperiod;
105 (4)Anycreditsgrantedbythissubsectionshallexpirewithoutanycompensationat
106theearlierofeithertwelvemonthsaftertheirissuanceorwhenthecustomer-generator
107disconnectsserviceorterminatesthenetmeteringrelationshipwiththesupplier;
108 (5)Foranyruralelectriccooperativeunderchapter394,oranymunicipallyowned
109utility,uponagreementofthewholesalegeneratorsupplyingelectricenergytotheretail
110electricsupplier,attheoptionoftheretailelectricsupplier,thecredittothecustomer-
111generatormaybeprovidedbythewholesalegenerator.
112 6.(1)Eachqualifiedelectricenergygenerationunitusedbyacustomer-generator
113shallmeetandbeinstalled,maintained,andrepairedinaccordancewithallapplicable
114safety,performance,interconnection,andreliabilitystandardsestablishedbyanylocalcode
115authorities,theNationalElectricalCode,theNationalElectricalSafetyCode,theInstituteof
116ElectricalandElectronicsEngineers,andUnderwritersLaboratoriesfordistributed
117generation.Allqualifiedelectricenergygenerationunitsutilizingbatterybackup
118shallbeinstalledtooperatecompletelyisolatedfromtheretailelectricsupplier'ssystem
119including,butnotlimitedto,allneutralconnectionsandgroundingpoints,duringtimes
120ofbackupoperation.Unlessallowedundersubdivision(2)ofsubsection3ofthis
121section,noretailelectricsuppliershallimposeanyfee,charge,orotherrequirementnot
122specificallyauthorizedbythissectionortherulespromulgatedundersubsection9ofthis
123sectionunlessthefee,charge,orotherrequirementwouldapplytosimilarlysituated
124customerswhoarenotcustomer-generators,exceptthataretailelectricsuppliermayrequire
125thatacustomer-generator'ssystemcontainadequatesurgeprotectionandaswitch,circuit
126breaker,fuse,orothereasilyaccessibledeviceorfeaturelocatedinimmediateproximityto
127thecustomer-generator'smeteringequipmentthatwouldallowautilityworkeroremergency
HB940 4 128responsepersonneltheabilitytomanuallyandinstantlydisconnecttheunitfromtheutility's
129electricdistributionsystem.
130 (2)Forsystemsoftenkilowattsorless,acustomer-generatorwhosesystemmeetsthe
131standardsandrulesundersubdivision(1)ofthissubsectionshallnotberequiredtoinstall
132additionalcontrols,performorpayforadditionaltestsordistributionequipment,orpurchase
133additionalliabilityinsurancebeyondwhatisrequiredundersubdivision(1)ofthissubsection
134andsubsection4ofthissection.
135 (3)Forcustomer-generatorsystemsofgreaterthantenkilowatts,thecommissionfor
136electricalcorporationsandtherespectivegoverningbodyforotherretailelectricsuppliers
137shall,byruleorequivalentformalactionbyeachrespectivegoverningbody:
138 (a)Setforthsafety,performance,andreliabilitystandardsandrequirements;and
139 (b)Establishthequalificationsforexemptionfromarequirementtoinstalladditional
140controls,performorpayforadditionaltestsordistributionequipment,orpurchaseadditional
141liabilityinsurance.
142 7.(1)Applicationsbyacustomer-generatorforinterconnectionofaqualifiedelectric
143energygenerationunitmeetingtherequirementsofsubdivision(3)ofsubsection2ofthis
144sectiontothedistributionsystemshallbeaccompaniedbytheplanforthecustomer-
145generator'selectricalgeneratingsystem,includingbutnotlimitedtoawiringdiagramand
146specificationsforthegeneratingunit,andshallbereviewedandrespondedtobytheretail
147electricsupplier, unlessmutuallyagreedto,withinthirtydaysofreceiptforsystemsten
148kilowattsorlessandwithinninetydaysofreceiptforallothersystems.Priortothe
149interconnectionofthequalifiedgenerationunittotheretailelectricsupplier'ssystem,the
150customer-generatorwillfurnishtheretailelectricsupplieracertificationfroma[qualified]
151professionalelectricianorengineerdeemedqualifiedbytheretailelectricsupplierthatthe
152installationmeetstherequirementsofsubdivision(1)ofsubsection6ofthissection.Inthe
153eventtheprofessionalelectricianorengineerisnotlicensed,theretailelectricsupplier
154mayrequireabondorotherformoffinancialsecuritytoensurethesafeinstallationand
155operationofthequalifiedelectricenergygenerationunit.Iftheapplicationfor
156interconnectionisapprovedbytheretailelectricsupplierandthecustomer-generatordoesnot
157completetheinterconnectionwithinoneyearafterreceiptofnoticeoftheapproval,the
158approvalshallexpireandthecustomer-generatorshallberesponsibleforfilinganew
159application.
160 (2)Uponthechangeinownershipofaqualifiedelectricenergygenerationunit,the
161newcustomer-generatorshallberesponsibleforfilinganewapplicationundersubdivision
162(1)ofthissubsection.
163 8.Eachelectricalcorporationshallsubmitanannualnetmeteringreporttothe
164commission,andallotherretailelectricsuppliersshallsubmitthesamereporttotheir
HB940 5 165respectivegoverningbodyandmakesaidreportavailabletoaconsumerofthesupplierupon
166request,includingthefollowinginformationforthepreviouscalendaryear:
167 (1)Thetotalnumberofcustomer-generatorfacilities;
168 (2)Thetotalestimatedgeneratingcapacityofitsnet-meteredcustomer-generators;
169and
170 (3)Thetotalestimatednetkilowatt-hoursreceivedfromcustomer-generators.
171 9.Thecommissionshall,withinninemonthsofJanuary1,2008,promulgateinitial
172rulesnecessaryfortheadministrationofthissectionforelectricalcorporations,whichshall
173includeregulationsensuringthatsimplecontractswillbeusedforinterconnectionandnet
174metering.Forsystemsoftenkilowattsorless,theapplicationprocessshalluseanall-in-one
175documentthatincludesasimpleinterconnectionrequest,simpleprocedures,andabriefsetof
176termsandconditions.Anyruleorportionofarule,asthattermisdefinedinsection536.010,
177thatiscreatedundertheauthoritydelegatedinthissectionshallbecomeeffectiveonlyifit
178complieswithandissubjecttoalloftheprovisionsofchapter536and,ifapplicable,section
179536.028.Thissectionandchapter536arenonseverableandifanyofthepowersvestedwith
180thegeneralassemblyunderchapter536toreview,todelaytheeffectivedate,ortodisapprove
181andannularulearesubsequentlyheldunconstitutional,thenthegrantofrulemaking
182authorityandanyruleproposedoradoptedafterAugust28,2007,shallbeinvalidandvoid.
183 10.Thegoverningbodyofaruralelectriccooperativeormunicipalutilityshall,
184withinninemonthsofJanuary1,2008,adoptpoliciesestablishingasimplecontracttobe
185usedforinterconnectionandnetmetering.Forsystemsoftenkilowattsorless,the
186applicationprocessshalluseanall-in-onedocumentthatincludesasimpleinterconnection
187request,simpleprocedures,andabriefsetoftermsandconditions.
188 11.Foranycauseofactionrelatingtoanydamagestopropertyorpersoncausedby
189thequalifiedelectricenergygenerationunitofacustomer-generatorortheinterconnection
190thereof,theretailelectricsuppliershallhavenoliabilityabsentclearandconvincingevidence
191offaultonthepartofthesupplier.
192 12.Theestimatedgeneratingcapacityofallnetmeteringsystemsoperatingunderthe
193provisionsofthissectionshallcounttowardstherespectiveretailelectricsupplier's
194accomplishmentofanyrenewableenergyportfoliotargetormandateadoptedbytheMissouri
195generalassemblyandforpurposesofcompliancewithanyapplicablefederallaw.
196 13.Thesaleofqualifiedelectricenergygenerationunitstoanycustomer-generator
197shallbesubjecttotheprovisionsofsections407.010to407.145andsections407.700to
198407.720.Theattorneygeneralshallhavetheauthoritytopromulgateinaccordancewiththe
199provisionsofchapter536rulesregardingmandatorydisclosuresofinformationbysellersof
200qualifiedelectricenergygenerationunits.Anyinterestedpersonwhobelievesthattheseller
201ofanyqualifiedelectricenergygenerationunitismisrepresentingthesafetyorperformance
HB940 6 202standardsofanysuchsystems,orwhobelievesthatanyelectricenergygenerationunitposes
203adangertoanypropertyorperson,mayreportthesametotheattorneygeneral,whoshallbe
204authorizedtoinvestigatesuchclaimsandtakeanynecessaryandappropriateactions.
205 14.Anycostsincurredunderthisactbyaretailelectricsuppliershallberecoverable
206inthatutility'sratestructure.
207 15.Noconsumershallconnectoroperateaqualifiedelectricenergygenerationunit
208inparallelphaseandsynchronizationwithanyretailelectricsupplierwithoutwritten
209approvalbysaidsupplierthatalloftherequirementsundersubdivision(1)ofsubsection7of
210thissectionhavebeenmet.Foraconsumerwhoviolatesthisprovision,asuppliermay
211immediatelyandwithoutnoticedisconnecttheelectricfacilitiesofsaidconsumerand
212terminatesaidconsumer'selectricservice.
213 16.Themanufacturerofanyqualifiedelectricenergygenerationunitusedbya
214customer-generatormaybeheldliableforanydamagestopropertyorpersoncausedbya
215defectinthequalifiedelectricenergygenerationunitofacustomer-generator.
216 17.Theseller,installer,ormanufacturerofanyqualifiedelectricenergygeneration
217unitwhoknowinglymisrepresentsthesafetyaspectsofaqualifiedelectricgenerationunit
218maybeheldliableforanydamagestopropertyorpersoncausedbythequalifiedelectric
219energygenerationunitofacustomer-generator.
220 18.Anyperson,notaretailelectricsupplier,whosellsaqualifiedelectricenergy
221generationunitorwhoprovidesanetmeteringservicetoacustomer-generatorunder
222thissectionshall:
223 (1)Provideaprospectiveorexistingcustomer-generatoraminimumoffive
224businessdaystoevaluateaproposaltoconstructaqualifiedelectricgenerationunitto
225provideallorpartoftheprospectiveorexistingcustomer-generator'sneedsforelectric
226energywithinasingleretailelectricsupplier'sallocatedserviceterritory.Theproposal
227totheprospectiveorexistingcustomer-generatorshallinclude:
228 (a)Adescriptionofthequalifiedelectricgenerationunitanditsplacementon
229thecustomer-generator'spremisesconsistentwiththerequirementsofthissection;
230 (b)Adescriptionofthenameplategeneratingcapacityandexpectedmonthly
231andannualoutputofthequalifiedelectricgenerationunitinkilowatt-hours;
232 (c)Theestimatedannualdegradationtothequalifiedelectricgenerationunit;
233 (d)Anestimatedtimelinefortheinstallationofthequalifiedelectricgeneration
234unit;
235 (e)Thetotalcostofthequalifiedelectricgenerationunit;
236 (f)Theamountsdueatsigningforandthecompletionoftheinstallation;
237 (g)Thepaymentschedule;
238 (h)Thepaybackperiod;
HB940 7 239 (i)Theforecastedsavingsmonthlyandannualbillsavingsprovidedbythe
240proposedqualifiedelectricgenerationunitindollarsbasedontheretailelectric
241supplier'sratestructuretobeobtaineddirectlyfromtheretailelectricsupplier;
242 (j)Adescriptionofanywarrantiesandthelengthofanywarranties;
243 (k)Noticethattheprospectiveorexistingcustomer-generatormayfilea
244complaintwiththeattorneygeneral;and
245 (l)Certifythattheplacementofanysolarpanelswillbeappropriatetoprovide
246themaximumyieldofenergytothecustomer-generatorandwillprovidetheoutputas
247statedintheproposal;
248 (2)Performanenergyefficiencyauditonthepotentialorexistingcustomer-
249generator'spremisestobeservedbytheproposedqualifiedelectricgenerationunitas
250partoftheproposaltosellaqualifiedelectricgenerationunitorprovidenet-metering
251serviceunderthissection;
252 (3)Informtheprospectiveorexistingcustomer-generatoroftheavailableenergy
253efficiencymeasurestoaddresstheresultsoftheauditaspartoftheproposaltosella
254qualifiedelectricgenerationunittoacustomer-generatorunderthissection;and
255 (4)Demonstratetotheproposedorexistingcustomer-generatorthattheperson,
256notaretailelectricsupplier,whosellsaqualifiedelectricgenerationunitorwho
257providesnet-meteringservicestoacustomer-generatorholds:
258 (a)Allrequiredpermitstoinstall,construct,oroperateaqualifiedelectric
259generationunitinthestate,and,ifthegoverningcounty,municipality,orlocalauthority
260doesnotrequireanelectricalinspection,anexecutedcertificationthatnoelectrical
261inspectionorpermitisrequired;and
262 (b)Abondorotheracceptablefinancialsecuritytoensurepropermaintenance
263ofthequalifiedelectricgenerationunitanddecommissioningofthequalifiedelectric
264generationunit.
265 19.Provisionsofthissectionshallbeenforcedbytheattorneygeneralunderthe
266Missourimerchandisingpracticesact,sections407.010to407.130,andsections570.140
267to570.145including,butnotlimitedto,allenforcementpowers.
âś”
HB940 8