Senate File 422 - Introduced



                                       SENATE FILE       
                                       BY  BOLKCOM


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for the establishment of interconnection
  2    standards for customer=generator facilities by the utilities
  3    board.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2529XS 82
  6 rn/je/5

PAG LIN



  1  1    Section 1.  NEW SECTION.  476.26A  INTERCONNECTION
  1  2 STANDARDS.
  1  3    1.  As used in this section, unless the context otherwise
  1  4 requires:
  1  5    a.  "Customer=generator" means a residential, commercial,
  1  6 or industrial customer that generates electricity.
  1  7    b.  "Customer=generator facility" means the equipment used
  1  8 by a customer=generator to generate, manage, and monitor
  1  9 electricity.
  1 10    c.  "Electric utility" means any entity that furnishes
  1 11 electricity to the public for compensation, whether or not
  1 12 subject to the rate regulation authority of the board.
  1 13    d.  "Interconnection" means the physical connection of a
  1 14 customer=generator facility with the electric distribution
  1 15 lines of an electric utility's transmission and distribution
  1 16 facilities.
  1 17    2.  The board shall establish standards by rule by July 1,
  1 18 2008, for the interconnection of customer=generator facilities
  1 19 to electric distribution lines of electric utility
  1 20 transmission and distribution facilities.  The standards shall
  1 21 be designed to minimize the procedural barriers, delays, and
  1 22 administrative costs associated with the interconnection while
  1 23 ensuring the safety and reliability of customer=generator
  1 24 facilities, electric distribution lines, and electric utility
  1 25 transmission and distribution facilities.
  1 26    3.  The standards established in this section shall apply
  1 27 to interconnections between customer=generator facilities of
  1 28 up to ten thousand kilowatts capacity and all electric utility
  1 29 transmission and distribution facilities, unless the
  1 30 transaction is subject to interconnection procedures
  1 31 established by the federal energy regulatory commission.  The
  1 32 standards shall involve three separate expedited sets of
  1 33 procedures, to be developed by the board based on a review of
  1 34 similar interconnection procedures established in other
  1 35 states.  The procedures shall be applicable to
  2  1 customer=generator facilities of up to ten kilowatts, up to
  2  2 two thousand kilowatts, and up to ten thousand kilowatts,
  2  3 respectively, that do not export power beyond the point of
  2  4 interconnection.  The standards developed shall be consistent
  2  5 with applicable model rules established by the interstate
  2  6 renewable energy council, United States department of energy.
  2  7    4.  Safety and reliability measures shall be established in
  2  8 the standards as determined necessary and appropriate by the
  2  9 board.  The board shall ensure that the measures are
  2 10 consistent with applicable safety and performance standards
  2 11 established by the national electrical code, the institute of
  2 12 electrical and electronics engineers, underwriters
  2 13 laboratories, and the American national standards institute
  2 14 while constituting a minimum cost and level of technical
  2 15 difficulty to customer=generators.
  2 16    5.  The standards shall prohibit the imposition of
  2 17 additional charges by electric utilities for equipment or
  2 18 services for interconnection beyond those necessary to meet
  2 19 the standards if those charges would exceed similar charges in
  2 20 other states with interconnection standards as identified by
  2 21 the board.  The standards shall incorporate simplified
  2 22 interconnection contracts for interconnections involving
  2 23 customer=generator facilities of two thousand kilowatts or
  2 24 less, and shall not require liability or other insurance in
  2 25 excess of that typically obtained by customer=generators for
  2 26 general liability insurance purposes.
  2 27                           EXPLANATION
  2 28    This bill provides for the adoption of rules establishing
  2 29 interconnection standards by the utilities board by July 1,
  2 30 2008.  The standards would apply to the interconnection of
  2 31 customer=generator facilities of up to 10,000 kilowatts
  2 32 capacity to electric distribution lines of electric utility
  2 33 transmission and distribution facilities, and be designed to
  2 34 minimize the procedural barriers, delays, and administrative
  2 35 costs associated with the interconnection.
  3  1    The bill defines a "customer=generator" as a residential,
  3  2 commercial, or industrial customer that generates electricity;
  3  3 an "electric utility" as any entity that furnishes electricity
  3  4 to the public for compensation, whether or not subject to the
  3  5 rate regulation authority of the board; and "interconnection"
  3  6 as the physical connection of a customer=generator facility
  3  7 with the electric distribution lines of an electric utility's
  3  8 transmission and distribution facilities.
  3  9    The bill provides that the standards shall involve three
  3 10 separate expedited sets of procedures, to be developed by the
  3 11 board based on a review of similar interconnection procedures
  3 12 established in other states.  The procedures shall apply to
  3 13 customer=generator facilities of up to 10 kilowatts, up to
  3 14 2,000 kilowatts, and up to 10,000 kilowatts that do not export
  3 15 power beyond the point of interconnection, and shall be
  3 16 consistent with applicable model rules established by the
  3 17 interstate renewable energy council, United States department
  3 18 of energy.  The bill states that safety and reliability
  3 19 measures shall be established in the standards as determined
  3 20 necessary and appropriate by the board, and that the board
  3 21 shall ensure they are consistent with applicable safety and
  3 22 performance standards established by several specified
  3 23 sources.  The bill provides that the standards shall prohibit
  3 24 the imposition of additional charges by electric utilities for
  3 25 equipment or services for interconnection beyond those
  3 26 necessary to meet the standards, or that exceed similar
  3 27 charges in other states, and that simplified interconnection
  3 28 contracts shall be included for customer=generator facilities
  3 29 of 2,000 kilowatts or less.  The standards shall also not
  3 30 require liability or other insurance in excess of that
  3 31 typically obtained by customer=generators for general
  3 32 liability insurance purposes.
  3 33 LSB 2529XS 82
  3 34 rn:rj/je/5.1