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Missouri Senate Bill SB467

Missouri 2025 Regular Session

Missouri Senate Bill SB467 Compare Versions

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22 EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
33 and is intended to be omitted in the law.
44 FIRST REGULAR SESSION
55 SENATE BILL NO. 467
66 103RD GENERAL ASSEMBLY
77 INTRODUCED BY SENATOR GREGORY (21).
88 1431S.01I KRISTINA MARTIN, Secretary
99 AN ACT
1010 To repeal section 386.890, RSMo, and to enact in lieu thereof one new section relating to net
1111 metering.
1212
1313 Be it enacted by the General Assembly of the State of Missouri, as follows:
1414 Section A. Section 386.890, RSMo, is repealed and one new 1
1515 section enacted in lieu thereof, to be known as section 386.890, 2
1616 to read as follows:3
1717 386.890. 1. This section shall be known and may be 1
1818 cited as the "Net Metering and Easy Connection Act". 2
1919 2. As used in this section, the following terms shall 3
2020 mean: 4
2121 (1) "Avoided fuel cost", the current average cost of 5
2222 fuel for the entity generating electricity, as define d by 6
2323 the governing body with jurisdiction over any municipal 7
2424 electric utility, rural electric cooperative as provided in 8
2525 chapter 394, or electrical corporation as provided in this 9
2626 chapter; 10
2727 (2) "Commission", the public service commission of the 11
2828 state of Missouri; 12
2929 (3) "Customer-generator", an individual person, 13
3030 corporation, limited liability company, or other 14
3131 organization that is the owner or operator of a qualified 15
3232 electric energy generation unit which: 16
3333 (a) Is powered by a renewable energy resource; 17 SB 467 2
3434 (b) Has an electrical generating system with a 18
3535 nameplate capacity of not more than one hundred kilowatts 19
3636 and is located at the premises where the electrical energy 20
3737 is consumed by the customer -generator; 21
3838 (c) Is located on a premises owned, operated, leased, 22
3939 or otherwise controlled by the customer -generator; 23
4040 (d) Is interconnected and operates in parallel phase 24
4141 and synchronization with a retail electric supplier and has 25
4242 been approved by said retail electric supplier; 26
4343 (e) Is intended and sized primarily to offset part or 27
4444 all of the customer-generator's own electrical energy 28
4545 requirements; 29
4646 (f) Meets all applicable safety, performance, 30
4747 interconnection, and reliability standards established by 31
4848 the National Electrical Code, the National Electrical Safety 32
4949 Code, the Institute of Electrical and Electronics Engineers, 33
5050 Underwriters Laboratories, the Federal Energy Regulatory 34
5151 Commission, and any local governing authorities; and 35
5252 (g) Contains a mechanism that automatically disables 36
5353 the unit and interrupts the flow of electricity back onto 37
5454 the supplier's electricity lines in the event that service 38
5555 to the customer-generator is interrupted; 39
5656 (4) "Department", the department of natural resources; 40
5757 (5) "Net metering", [using metering equipment 41
5858 sufficient to measure the difference between the electrical 42
5959 energy supplied to a customer -generator by a retail electric 43
6060 supplier and the electrical energy supplied by the customer - 44
6161 generator to the retail elect ric supplier over the 45
6262 applicable billing period ] a billing option that measures 46
6363 the amount of electricity as measured in kilowatt hours 47
6464 supplied by a retail electric supplier to a customer - 48
6565 generator and separately measuring the amount of the 49 SB 467 3
6666 electricity as measured in kilowatt hours generated by the 50
6767 customer-generator and fed back to the retail electric 51
6868 supplier; 52
6969 (6) "Renewable energy resources", electrical energy 53
7070 produced from wind, solar thermal sources, hydroelectric 54
7171 sources, photovoltaic cells and panels, fuel cells using 55
7272 hydrogen produced by one of the above -named electrical 56
7373 energy sources, and other sources of energy that become 57
7474 available after August 28, 2007, and are certified as 58
7575 renewable by the department; 59
7676 (7) "Retail electric supplier" or "supplier", any 60
7777 municipally owned electric utility operating under chapter 61
7878 91, electrical corporation regulated by the commission under 62
7979 this chapter, or rural electric cooperative operating under 63
8080 chapter 394 that provides retail electr ic service in this 64
8181 state. An electrical corporation that operates under a 65
8282 cooperative business plan as described in subsection 2 of 66
8383 section 393.110 shall be deemed to be a rural electric 67
8484 cooperative for purposes of this section. 68
8585 3. A retail electric supplier shall: 69
8686 (1) Make net metering available to customer -generators 70
8787 on a first-come, first-served basis until the total rated 71
8888 generating capacity of net metering systems equals five 72
8989 percent of the retail electric supplier's single -hour peak 73
9090 load during the previous year, after which the commission 74
9191 for an electrical corporation or the respective governing 75
9292 body of other retail electric suppliers may increase the 76
9393 total rated generating capacity of net metering systems to 77
9494 an amount above five percent. However, in a given calendar 78
9595 year, no retail electric supplier shall be required to 79
9696 approve any application for interconnection if the total 80
9797 rated generating capacity of all applications for 81 SB 467 4
9898 interconnection already approved to date by sai d supplier in 82
9999 said calendar year equals or exceeds one percent of said 83
100100 supplier's single-hour peak load for the previous calendar 84
101101 year; 85
102102 (2) Offer net metering to the customer-generator 86
103103 pursuant to a commission approved tariff of an electrical 87
104104 corporation or contract approved by the respective governing 88
105105 body of other retail electric suppliers, under one of the 89
106106 following options: 90
107107 (a) At rates that [is] are identical in electrical 91
108108 energy rates, rate structure, and monthly charges to the 92
109109 contract or tariff that the customer would be assigned if 93
110110 the customer were not an eligible customer -generator [but 94
111111 shall not charge the customer -generator any additional 95
112112 standby, capacity, interconnection, or other fee or charge 96
113113 that would not otherwise be charged if the customer were not 97
114114 an eligible customer -generator]; or 98
115115 (b) With energy and demand rates, rate structure, and 99
116116 recurring monthly charges that are reasonably calculated to 100
117117 recover that portion of the retail electric supplier's fixed 101
118118 and demand costs that are not eliminated as a result of the 102
119119 operation of the customer -generator's qualified electric 103
120120 energy generating unit; and 104
121121 (3) Disclose annually the availability of the net 105
122122 metering program to each of its customers or members with 106
123123 the method and manner of disclosure being at the discretion 107
124124 of the retail electric supplier. 108
125125 4. A customer-generator's facility shall be equipped 109
126126 with sufficient metering equipment that can measure the net 110
127127 amount of electrical energy pro duced or consumed by the 111
128128 customer-generator. If the customer-generator's existing 112
129129 meter equipment does not meet these requirements or if it is 113 SB 467 5
130130 necessary for the retail electric supplier to install 114
131131 additional distribution equipment to accommodate the 115
132132 customer-generator's facility, the customer -generator shall 116
133133 reimburse the retail electric supplier for the costs to 117
134134 purchase and install the necessary additional equipment 118
135135 including, but not limited to, necessary electric 119
136136 distribution system upgrades . At the request of the 120
137137 customer-generator, such costs may be initially paid for by 121
138138 the retail electric supplier, and any amount up to the total 122
139139 costs and a reasonable interest charge may be recovered from 123
140140 the customer-generator over the course of up to twelve 124
141141 billing cycles. Any subsequent meter testing, maintenance 125
142142 or meter equipment change necessitated by the customer - 126
143143 generator shall be paid for by the customer -generator. 127
144144 5. Consistent with the provisions in this section, the 128
145145 net electrical energy measurement shall be calculated in the 129
146146 following manner: 130
147147 (1) For a customer-generator, a retail electric 131
148148 supplier shall measure the net electrical energy produced or 132
149149 consumed during the billing period in accordance with normal 133
150150 metering practices for customers in the same rate class, 134
151151 either by employing a single, bidirectional meter that 135
152152 measures the amount of electrical energy produced and 136
153153 consumed, or by employing multiple meters that separately 137
154154 measure the customer -generator's consumption and production 138
155155 of electricity; 139
156156 (2) If the electricity supplied by the supplier 140
157157 exceeds the electricity generated by the customer -generator 141
158158 during a billing period, the customer -generator shall be 142
159159 billed for the net electricity supplied by t he retail 143
160160 electric supplier in accordance with normal practices for 144
161161 customers in the same rate class; 145 SB 467 6
162162 (3) If the electricity generated by the customer - 146
163163 generator exceeds the electricity supplied by the supplier 147
164164 during a billing period, the custome r-generator shall be 148
165165 billed for the appropriate customer and demand charges for 149
166166 that billing period in accordance with subsection 3 of this 150
167167 section and shall be credited an amount at least equal to 151
168168 the avoided fuel cost of the excess kilowatt -hours generated 152
169169 during the billing period, with this credit applied to the 153
170170 following billing period; 154
171171 (4) Any credits granted by this subsection shall 155
172172 expire without any compensation at the earlier of either 156
173173 twelve months after their issuance or when the c ustomer- 157
174174 generator disconnects service or terminates the net metering 158
175175 relationship with the supplier; 159
176176 (5) For any rural electric cooperative under chapter 160
177177 394, or any municipally owned utility, upon agreement of the 161
178178 wholesale generator supplying e lectric energy to the retail 162
179179 electric supplier, at the option of the retail electric 163
180180 supplier, the credit to the customer -generator may be 164
181181 provided by the wholesale generator. 165
182182 6. (1) Each qualified electric energy generation unit 166
183183 used by a customer-generator shall meet and be installed, 167
184184 maintained, and repaired in accordance with all applicable 168
185185 safety, performance, interconnection, and reliability 169
186186 standards established by any local code authorities, the 170
187187 National Electrical Code, the National Electrical Safety 171
188188 Code, the Institute of Electrical and Electronics Engineers, 172
189189 and Underwriters Laboratories for distributed generation. 173
190190 All qualified electric energy generation units utilizing 174
191191 battery backup shall be installed to operate completely 175
192192 isolated from the retail electric supplier's system 176
193193 including, but not limited to, all neutral connections and 177 SB 467 7
194194 grounding points, during times of backup operation. Unless 178
195195 allowed under subdivision (2) of subsection 3 of this 179
196196 section, no retail electric supplier shall impose any fee, 180
197197 charge, or other requirement not specifically authorized by 181
198198 this section or the rules promulgated under subsection 9 of 182
199199 this section unless the fee, charge, or other requirement 183
200200 would apply to similarly situated customer s who are not 184
201201 customer-generators, except that a retail electric supplier 185
202202 may require that a customer -generator's system contain 186
203203 adequate surge protection and a switch, circuit breaker, 187
204204 fuse, or other easily accessible device or feature located 188
205205 in immediate proximity to the customer -generator's metering 189
206206 equipment that would allow a utility worker or emergency 190
207207 response personnel the ability to manually and instantly 191
208208 disconnect the unit from the utility's electric distribution 192
209209 system. 193
210210 (2) For systems of ten kilowatts or less, a customer - 194
211211 generator whose system meets the standards and rules under 195
212212 subdivision (1) of this subsection shall not be required to 196
213213 install additional controls, perform or pay for additional 197
214214 tests or distribution equipmen t, or purchase additional 198
215215 liability insurance beyond what is required under 199
216216 subdivision (1) of this subsection and subsection 4 of this 200
217217 section. 201
218218 (3) For customer-generator systems of greater than ten 202
219219 kilowatts, the commission for electrical corpo rations and 203
220220 the respective governing body for other retail electric 204
221221 suppliers shall, by rule or equivalent formal action by each 205
222222 respective governing body: 206
223223 (a) Set forth safety, performance, and reliability 207
224224 standards and requirements; and 208 SB 467 8
225225 (b) Establish the qualifications for exemption from a 209
226226 requirement to install additional controls, perform or pay 210
227227 for additional tests or distribution equipment, or purchase 211
228228 additional liability insurance. 212
229229 7. (1) Applications by a customer -generator for 213
230230 interconnection of a qualified electric energy generation 214
231231 unit meeting the requirements of subdivision (3) of 215
232232 subsection 2 of this section to the distribution system 216
233233 shall be accompanied by the plan for the customer - 217
234234 generator's electrical genera ting system, including but not 218
235235 limited to a wiring diagram and specifications for the 219
236236 generating unit, and shall be reviewed and responded to by 220
237237 the retail electric supplier , unless mutually agreed to, 221
238238 within thirty days of receipt for systems ten kilo watts or 222
239239 less and within ninety days of receipt for all other 223
240240 systems. Prior to the interconnection of the qualified 224
241241 generation unit to the retail electric supplier's system, 225
242242 the customer-generator will furnish the retail electric 226
243243 supplier a certification from a [qualified] professional 227
244244 electrician or engineer deemed qualified by the retail 228
245245 electric supplier that the installation meets the 229
246246 requirements of subdivision (1) of subsection 6 of this 230
247247 section. In the event the professional electrician o r 231
248248 engineer is not licensed, the retail electric supplier may 232
249249 require a bond or other form of financial security to ensure 233
250250 the safe installation and operation of the qualified 234
251251 electric energy generation unit. If the application for 235
252252 interconnection is approved by the retail electric supplier 236
253253 and the customer-generator does not complete the 237
254254 interconnection within one year after receipt of notice of 238
255255 the approval, the approval shall expire and the customer - 239
256256 generator shall be responsible for filing a ne w application. 240 SB 467 9
257257 (2) Upon the change in ownership of a qualified 241
258258 electric energy generation unit, the new customer -generator 242
259259 shall be responsible for filing a new application under 243
260260 subdivision (1) of this subsection. 244
261261 8. Each electrical corpora tion shall submit an annual 245
262262 net metering report to the commission, and all other retail 246
263263 electric suppliers shall submit the same report to their 247
264264 respective governing body and make said report available to 248
265265 a consumer of the supplier upon request, includ ing the 249
266266 following information for the previous calendar year: 250
267267 (1) The total number of customer -generator facilities; 251
268268 (2) The total estimated generating capacity of its net - 252
269269 metered customer-generators; and 253
270270 (3) The total estimated net kil owatt-hours received 254
271271 from customer-generators. 255
272272 9. The commission shall, within nine months of January 256
273273 1, 2008, promulgate initial rules necessary for the 257
274274 administration of this section for electrical corporations, 258
275275 which shall include regulations ensuring that simple 259
276276 contracts will be used for interconnection and net 260
277277 metering. For systems of ten kilowatts or less, the 261
278278 application process shall use an all -in-one document that 262
279279 includes a simple interconnection request, simple 263
280280 procedures, and a brief set of terms and conditions. Any 264
281281 rule or portion of a rule, as that term is defined in 265
282282 section 536.010, that is created under the authority 266
283283 delegated in this section shall become effective only if it 267
284284 complies with and is subject to all of the pr ovisions of 268
285285 chapter 536 and, if applicable, section 536.028. This 269
286286 section and chapter 536 are nonseverable and if any of the 270
287287 powers vested with the general assembly under chapter 536 to 271
288288 review, to delay the effective date, or to disapprove and 272 SB 467 10
289289 annul a rule are subsequently held unconstitutional, then 273
290290 the grant of rulemaking authority and any rule proposed or 274
291291 adopted after August 28, 2007, shall be invalid and void. 275
292292 10. The governing body of a rural electric cooperative 276
293293 or municipal utility sh all, within nine months of January 1, 277
294294 2008, adopt policies establishing a simple contract to be 278
295295 used for interconnection and net metering. For systems of 279
296296 ten kilowatts or less, the application process shall use an 280
297297 all-in-one document that includes a s imple interconnection 281
298298 request, simple procedures, and a brief set of terms and 282
299299 conditions. 283
300300 11. For any cause of action relating to any damages to 284
301301 property or person caused by the qualified electric energy 285
302302 generation unit of a customer -generator or the 286
303303 interconnection thereof, the retail electric supplier shall 287
304304 have no liability absent clear and convincing evidence of 288
305305 fault on the part of the supplier. 289
306306 12. The estimated generating capacity of all net 290
307307 metering systems operating under the p rovisions of this 291
308308 section shall count towards the respective retail electric 292
309309 supplier's accomplishment of any renewable energy portfolio 293
310310 target or mandate adopted by the Missouri general assembly 294
311311 and for purposes of compliance with any applicable feder al 295
312312 law. 296
313313 13. The sale of qualified electric energy generation 297
314314 units to any customer -generator shall be subject to the 298
315315 provisions of sections 407.010 to 407.145 and sections 299
316316 407.700 to 407.720. The attorney general shall have the 300
317317 authority to promulgate in accordance with the provisions of 301
318318 chapter 536 rules regarding mandatory disclosures of 302
319319 information by sellers of qualified electric energy 303
320320 generation units. Any interested person who believes that 304 SB 467 11
321321 the seller of any qualified electric energy generation unit 305
322322 is misrepresenting the safety or performance standards of 306
323323 any such systems, or who believes that any electric energy 307
324324 generation unit poses a danger to any property or person, 308
325325 may report the same to the attorney general, who shall be 309
326326 authorized to investigate such claims and take any necessary 310
327327 and appropriate actions. 311
328328 14. Any costs incurred under this act by a retail 312
329329 electric supplier shall be recoverable in that utility's 313
330330 rate structure. 314
331331 15. No consumer shall connect or operate a qualified 315
332332 electric energy generation unit in parallel phase and 316
333333 synchronization with any retail electric supplier without 317
334334 written approval by said supplier that all of the 318
335335 requirements under subdivision (1) of subsection 7 of this 319
336336 section have been met. For a consumer who violates this 320
337337 provision, a supplier may immediately and without notice 321
338338 disconnect the electric facilities of said consumer and 322
339339 terminate said consumer's electric service. 323
340340 16. The manufacturer of any qualified elect ric energy 324
341341 generation unit used by a customer -generator may be held 325
342342 liable for any damages to property or person caused by a 326
343343 defect in the qualified electric energy generation unit of a 327
344344 customer-generator. 328
345345 17. The seller, installer, or manufactur er of any 329
346346 qualified electric energy generation unit who knowingly 330
347347 misrepresents the safety aspects of a qualified electric 331
348348 generation unit may be held liable for any damages to 332
349349 property or person caused by the qualified electric energy 333
350350 generation unit of a customer-generator. 334
351351 18. Any person, not a retail electric supplier, who 335
352352 sells a qualified electric energy generation unit or who 336 SB 467 12
353353 provides a net metering service to a customer -generator 337
354354 under this section shall: 338
355355 (1) Provide a prospectiv e or existing customer - 339
356356 generator a minimum of five business days to evaluate a 340
357357 proposal to construct a qualified electric generation unit 341
358358 to provide all or part of the prospective or existing 342
359359 customer-generator's needs for electric energy within a 343
360360 single retail electric supplier's allocated service 344
361361 territory. The proposal to the prospective or existing 345
362362 customer-generator shall include: 346
363363 (a) A description of the qualified electric generation 347
364364 unit and its placement on the customer -generator's premises 348
365365 consistent with the requirements of this section; 349
366366 (b) A description of the nameplate generating capacity 350
367367 and expected monthly and annual output of the qualified 351
368368 electric generation unit in kilowatt hours; 352
369369 (c) The estimated annual degr adation to the qualified 353
370370 electric generation unit; 354
371371 (d) An estimated timeline for the installation of the 355
372372 qualified electric generation unit; 356
373373 (e) The total cost of the qualified electric 357
374374 generation unit; 358
375375 (f) The amounts due at signing f or and the completion 359
376376 of the installation; 360
377377 (g) The payment schedule; 361
378378 (h) The payback period; 362
379379 (i) The forecasted savings monthly and annual bill 363
380380 savings provided by the proposed qualified electric 364
381381 generation unit in dollars based on the retail electric 365
382382 supplier's rate structure to be obtained directly from the 366
383383 retail electric supplier; 367 SB 467 13
384384 (j) A description of any warranties and the length of 368
385385 any warranties; 369
386386 (k) Notice that the prospective or existing customer - 370
387387 generator may file a complaint with the attorney general; and 371
388388 (l) Certify that the placement of any solar panels 372
389389 will be appropriate to provide the maximum yield of energy 373
390390 to the customer-generator and will provide the output as 374
391391 stated in the proposal; 375
392392 (2) Perform an energy efficiency audit on the 376
393393 potential or existing customer -generator's premises to be 377
394394 served by the proposed qualified electric generation unit as 378
395395 part of the proposal to sell a qualified electric generation 379
396396 unit or provide net-metering service under this section; 380
397397 (3) Inform the prospective or existing customer - 381
398398 generator of the available energy efficiency measures to 382
399399 address the results of the audit as part of the proposal to 383
400400 sell a qualified electric generation unit to a custome r- 384
401401 generator under this section; and 385
402402 (4) Demonstrate to the proposed or existing customer - 386
403403 generator that the person, not a retail electric supplier, 387
404404 who sells a qualified electric generation unit or who 388
405405 provides net-metering services to a customer -generator holds: 389
406406 (a) All required permits to install, construct, or 390
407407 operate a qualified electric generation unit in the state, 391
408408 and, if the governing county, municipality, or local 392
409409 authority does not require an electrical inspection, an 393
410410 executed certification that no electrical inspection or 394
411411 permit is required; and 395
412412 (b) A bond or other acceptable financial security to 396
413413 ensure proper maintenance of the qualified electric 397
414414 generation unit and decommissioning of the qualified 398
415415 electric generation unit. 399 SB 467 14
416416 19. Provisions of this section shall be enforced by 400
417417 the attorney general under the Missouri merchandising 401
418418 practices act, sections 407.010 to 407.130, and 570.140 to 402
419419 570.145, including, without limitation, all enforcement 403
420420 powers. 404
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