House Amendment to Senate File 583 S-5052 Amend Senate File 583, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < Section 1. NEW SECTION . 476.49 Billing methods for 5 distributed generation customers. 6 1. Definitions. For purposes of this section, unless the 7 context otherwise requires: 8 a. “Alternate energy production facility” means the same as 9 defined in section 476.42. 10 b. “Distributed generation customer” means a person 11 other than a public utility that interconnects an eligible 12 distributed generation facility to an electric distribution 13 system. 14 c. “Distributed generation facility” means the same as 15 defined in section 476.58, subsection 1, paragraph “b” , 16 subparagraph (2) or (3). 17 d. “Electric utility” means a public utility that furnishes 18 electricity to the public for compensation that is required to 19 be rate-regulated under this chapter. 20 e. “Eligible distributed generation facility” means a 21 distributed generation facility that elects a billing method 22 pursuant to subsection 3, and to which all of the following 23 apply: 24 (1) The facility is located behind a customer’s electricity 25 meter. 26 (2) The facility is interconnected to the electric utility 27 distribution system. 28 (3) The facility has an aggregate nameplate capacity less 29 than or equal to one megawatt alternating current. 30 (4) The facility has a capability to produce no more than 31 one hundred ten percent of the customer’s annual electricity 32 usage. 33 (5) The facility’s generating capacity and associated 34 energy is intended to serve only the on-site electric 35 -1- SF583.3477.H (2) 88 md 1/ 7 #1.
requirements of the customer. 1 f. “Inflow-outflow billing” means a billing method for 2 an eligible distributed generation facility whereby the net 3 metering interval is measured hourly or subhourly, and a 4 distributed generation customer makes payment and is credited 5 as provided in subsection 3, paragraph “b” . 6 g. “Net billing” means a billing method for an eligible 7 distributed generation facility whereby the net metering 8 interval is equal to a monthly billing period, and a 9 distributed generation customer makes payment and is credited 10 as provided in subsection 3, paragraph “a” . 11 h. “Net metering” means a single meter monitoring only 12 the net amount of electricity delivered to and exported by an 13 eligible distributed generation facility, which electricity 14 offsets electricity that would otherwise be purchased by a 15 distributed generation customer from the electric utility. 16 i. “Statewide distributed generation penetration” means 17 the aggregate nameplate capacity of all eligible distributed 18 generation facilities of electric utilities as a percentage of 19 the aggregate peak demand of all electric utilities. 20 2. Publication of data. The board shall collect data on 21 the nameplate capacity of eligible distributed generation 22 facilities, calculate the statewide distributed generation 23 penetration percentage, and publish the data and penetration 24 rate on an annual basis on the board’s internet site. 25 3. Billing methods. An electric utility shall file either a 26 net billing or an inflow-outflow billing tariff with the board 27 to govern the billing and crediting of eligible distributed 28 generation facilities interconnected with the electric 29 distribution system of an electric utility as follows: 30 a. (1) An electric utility choosing to utilize the net 31 billing method shall file a tariff with the board whereby a 32 distributed generation customer pays all applicable charges, 33 including applicable rider charges approved by the board and 34 applied to non-net metering customers, for the electricity 35 -2- SF583.3477.H (2) 88 md 2/ 7
delivered to the customer over the net metering interval. 1 A distributed generation customer shall be credited in 2 kilowatt-hours for energy exported to the electric utility over 3 the net metering interval. A distributed generation customer 4 may use the kilowatt-hour credits to offset kilowatt-hours 5 in future billing periods. The offset shall include any 6 applicable volumetric rider charges approved by the board and 7 applied to non-net metering customers. 8 (2) Any excess kilowatt-hours remaining at the end of 9 a twelve-month period shall be cashed out at the electric 10 utility’s avoided cost rate with the funds from the cash out 11 divided evenly between the customer and the electric utility’s 12 low-income home energy assistance program. The distributed 13 generation customer shall choose either a January or April cash 14 out date at the time of interconnection. 15 (3) Net billing shall not be limited in any way based on a 16 customer’s peak demand. 17 (4) Net billing shall not include any fees or charges that 18 are not charged to customers in the same rate class that are 19 not net billing customers. 20 b. (1) An electric utility choosing to utilize the 21 inflow-outflow billing method shall file a tariff with the 22 board whereby a distributed generation customer pays all 23 applicable charges, including applicable rider charges approved 24 by the board and applied to non-net metering customers, for 25 the electricity delivered by the electric utility over the net 26 metering interval. The distributed generation customer is 27 credited in dollars at the outflow purchase rate for energy 28 exported to the utility over the net metering interval. The 29 distributed generation customer may use the dollar credits to 30 offset any applicable volumetric charges, including applicable 31 rider charges, billed on a kilowatt-hour basis. 32 (2) The electric utility shall select an hourly or subhourly 33 metering interval that balances the benefits of accurately 34 measuring power flows in each direction with the cost of 35 -3- SF583.3477.H (2) 88 md 3/ 7
collecting, storing, and processing meter data. 1 (3) Inflow-outflow billing shall not be limited in any way 2 based on a customer’s peak demand. 3 (4) Inflow-outflow billing shall not include any fees or 4 charges that are not charged to customers in the same rate 5 class that are not inflow-outflow customers. 6 (5) Prior to the board’s approval of a value of solar 7 methodology and rate, the outflow purchase rate for an eligible 8 distributed generation facility shall be the applicable retail 9 volumetric rate, including applicable rider charges approved 10 by the board and applied to non-net metered customers. The 11 outflow purchase rate for any distributed generation facility 12 will continue to be the applicable retail volumetric rate 13 for a term of twenty years. Any change in ownership of such 14 eligible facility, or adoption and use by the electric utility 15 of a value-of-solar rate pursuant to subsection 4, shall not 16 impact the outflow purchase rate for the distributed generation 17 facility during the twenty-year term. 18 4. Value of solar methodology. If the board is petitioned 19 by an electric utility after July 1, 2027, or when the 20 statewide distributed generation penetration rate is equal to 21 five percent, whichever is earlier, the board shall initiate 22 a proceeding to develop a value of solar methodology and 23 rate for eligible distributed generation facilities. The 24 value of solar rate shall be determined through the use of a 25 methodology that calculates the benefits and costs an eligible 26 distributed generation facility provides to, or imposes on, 27 the electric system. The value of solar methodology shall 28 be applied independently to each electric utility. When the 29 board determines the value of solar methodology, it shall 30 determine if there is a need for separate methodologies for 31 other distributed generation technologies or if it can account 32 for the values of other technologies with modifications to the 33 value of solar methodology. 34 a. In establishing the methodology, the board shall initiate 35 -4- SF583.3477.H (2) 88 md 4/ 7
a formal proceeding. The value of solar methodology shall be 1 determined through a study conducted by an independent third 2 party and overseen by the board. Interested parties shall have 3 the opportunity to comment and offer testimony on any proposed 4 value of solar methodology before it is adopted by the board. 5 b. The benefits and costs in a value of solar methodology 6 shall include all of the following factors as appropriate and 7 supported by known and measurable evidence: 8 (1) The cost of energy and fuel. 9 (2) Generation capacity and reserves. 10 (3) Transmission capacity and charges. 11 (4) Distribution capacity. 12 (5) Transmission and distribution line losses. 13 (6) Fixed and variable costs associated with plant 14 operations and maintenance. 15 (7) Environmental compliance costs. 16 (8) Integration costs. 17 (9) Grid support services. 18 (10) Other factors, based on known and measurable evidence 19 of the cost or benefit of solar operations to the electric 20 utility’s electric system. 21 c. Upon approval of the value of solar methodology, the 22 outflow purchase rate shall be limited to either a five 23 percent increase or decrease from the previous outflow purchase 24 rate. The value of solar rate shall be recomputed annually 25 and reflected in the outflow purchase rate, limited to a 26 five percent increase or decrease from the previous outflow 27 purchase rate. If the utility switches from a net billing 28 method to an inflow-outflow billing method after the value of 29 solar methodology is approved, then the previous purchase rate 30 shall be the applicable retail volumetric rate including all 31 applicable rider charges approved by the board. 32 d. The board shall consider, review, and update as 33 appropriate the value of solar methodology at least every three 34 years after completion of the initial methodology. 35 -5- SF583.3477.H (2) 88 md 5/ 7
e. After the board has approved a value of solar methodology 1 and rate, the outflow purchase rate shall be set using the 2 value of solar methodology. The outflow purchase rate for such 3 a facility will be fixed for a term of twenty years regardless 4 of any subsequent changes in the electric utility’s outflow 5 purchase rate or changes in ownership of such facility. 6 5. Forfeiture of outflow purchase credits. Any outflow 7 purchase credits remaining at the end of an annual period 8 shall be forfeited to the rider used by the electric utility 9 pursuant to subsection 7. The distributed generation customer 10 shall choose either a January or April date at the time of 11 interconnection for the purposes of determining the annual 12 period. 13 6. Proposal of separate rate classes. An electric utility 14 shall not propose treating distributed generation customers 15 as a separate rate class in a general rate case prior to the 16 board’s approval of a value of solar methodology or prior to 17 July 1, 2027, whichever is earlier. If an electric utility 18 chooses to propose a separate rate class for distributed 19 generation customers in a future proceeding, such a proposal 20 shall be approved or disapproved in accordance with section 21 476.6 and accompanying rules. 22 7. Riders. An electric utility shall be allowed to recover 23 the amounts credited to an eligible distributed generation 24 customer for outflow purchases pursuant to a rider. To the 25 extent an electric utility does not have such a rider, the 26 board shall allow an electric utility to establish a rider to 27 recover such amounts. For purposes of this subsection, “rider” 28 includes a fuel or energy adjustment clause. 29 8. Preexisting tariff. Any customer utilizing a net billing 30 tariff approved by the board on or before the availability 31 of inflow-outflow billing may continue to receive electric 32 service pursuant to the preexisting tariff for the remaining 33 duration of the contract regardless of any subsequent changes 34 in ownership of such facility. 35 -6- SF583.3477.H (2) 88 md 6/ 7
9. Use of funds collected through alternate energy purchase 1 programs. An electric utility may use funds collected pursuant 2 to section 476.47 to offset any amounts that would otherwise be 3 recovered through a rider resulting from outflow purchases of 4 excess energy produced by an eligible distributed generation 5 facility. 6 10. Reasonableness of net billing and inflow-outflow 7 billing. When the statewide net metering penetration level 8 reaches ten percent, the board shall determine whether the 9 net billing and inflow-outflow billing methods are still 10 reasonable and shall make recommendations to the general 11 assembly. Regardless of the board’s recommendations, existing 12 facilities shall continue to be eligible for the net billing 13 or inflow-outflow billing tariff in place at the time of 14 installation and for twenty years of operation thereafter. > 15 2. Title page, by striking lines 1 and 2 and inserting 16 < An Act relating to billing methods that may be utilized in 17 connection with distributed generation facilities. > 18 -7- SF583.3477.H (2) 88 md 7/ 7