S.F. 2056 Section 1. Section 476.49, subsection 3, paragraph a, 1 subparagraph (2), Code 2026, is amended to read as follows: 2 (2) Any excess kilowatt-hours remaining at the end of a 3 twelve-month period shall be cashed out at the request of 4 a customer or when a customer discontinues service with an 5 electric utility at the electric utility’s avoided cost rate 6 with the funds from the cash out divided evenly between the 7 customer and the electric utility’s low-income home energy 8 assistance program. The distributed generation customer 9 shall choose either a January or April cash out date at the 10 time of interconnection being sent directly to the customer . 11 Kilowatt-hour credits shall remain in a customer’s account to 12 offset kilowatt-hours in future billing until a cash out is 13 requested by the customer or the customer discontinues service 14 with the electric utility. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill relates to the cash out of excess kilowatt-hours to 19 distributed generation customers. 20 Under current law, any excess kilowatt-hours remaining at 21 the end of a 12-month period are cashed out by the electric 22 utility at the electric utility’s avoided cost rate and 23 distributed evenly between the customer and the electric 24 utility’s low-income home energy assistance program. The 25 customer chooses whether the cash out occurs in January or 26 April. 27 The bill changes the cash out process of excess 28 kilowatt-hours for distributed generation customers. The 29 bill provides that excess kilowatt-hours must be cashed out 30 directly to the customer at the customer’s request or when 31 the customer discontinues service. The bill requires any 32 kilowatt-hour credits to remain in a customer’s account to 33 offset future bills until a cash out is requested or the 34 customer discontinues service. 35 -1- LSB 5989XS (2) 91 sb/js 1/ 1