Senate File 2311 H-8355 Amend the amendment, H-8340, to Senate File 2311, as 1 amended, passed, and reprinted by the Senate, as follows: 2 1. Page 12, after line 18 by inserting: 3 < Sec. ___. Section 476.42, Code 2018, is amended by adding 4 the following new subsections: 5 NEW SUBSECTION . 1A. “Avoided cost” means the cost an 6 electric utility would otherwise have incurred had the electric 7 utility generated the electricity the utility purchased 8 pursuant to a net metering agreement or purchased or obtained 9 the electricity from another source. 10 NEW SUBSECTION . 2A. “Net metering” means the 11 interconnection of an alternate energy production facility 12 or small hydro facility with an electric utility whereby 13 electricity produced by the facility and consumed on site 14 offsets electricity that would otherwise be purchased from 15 the electric utility, and excess electricity produced by the 16 facility is transferred to the utility’s electrical grid. 17 Sec. ___. Section 476.43, subsection 2, Code 2018, is 18 amended to read as follows: 19 2. Upon application by the owner or operator of an alternate 20 energy production facility or small hydro facility or any 21 interested party, and subject to subsection 5A, the board shall 22 establish for the affected public utility just and economically 23 reasonable rates for electricity purchased under subsection 24 1 , paragraph “a” . The rates shall be established at levels 25 sufficient to stimulate the development of alternate energy 26 production and small hydro facilities in Iowa and to encourage 27 the continuation of existing capacity from those facilities. 28 Sec. ___. Section 476.43, Code 2018, is amended by adding 29 the following new subsection: 30 NEW SUBSECTION . 5A. A rate-regulated electric utility 31 that purchases electricity from an alternate energy production 32 facility or small hydro facility pursuant to a net metering 33 agreement entered into on or after July 1, 2018, shall do so in 34 accordance with the following conditions: 35 -1- H8340.5128 (1) 87 gh/rn 1/ 2 #1.

a. Net metering shall be available to any alternate energy 1 production facility or small hydro facility with up to one 2 megawatt of nameplate generating capacity, to offset up to one 3 hundred percent of a net-metered customer’s load. 4 b. Net metering shall be available to all customer classes, 5 provided, however, that each customer’s generation shall only 6 offset energy charges, and shall not offset customer charges 7 or demand charges. 8 c. The utility shall provide for an annual cash-out of net 9 excess generation, or excess credits, at a rate that is based 10 upon, and does not exceed, the utility’s avoided cost. The 11 annual cash-out shall take place during the first billing cycle 12 of the calendar year. The funds from the cash-out shall be 13 divided equally between the customer and the utility to provide 14 assistance to customers in need, or the customer may elect to 15 allow up to all of the excess credits to be distributed to 16 provide assistance to customers in need. > 17 2. By renumbering as necessary. 18 ______________________________ WATTS of Dallas -2- H8340.5128 (1) 87 gh/rn 2/ 2 #2.