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