386.890. Citation of law--definitions--retail electric suppliers, duties--metering equipment requirements--electrical energy generation units, calculation, requirements--report--rules--liability for d - Missouri Statutes

Citation of law--definitions--retail electric suppliers,duties--metering equipment requirements--electrical energygeneration units, calculation,requirements--report--rules--liability for damages.

386.890. 1. This section shall be known and may be cited as the "NetMetering and Easy Connection Act".

2. As used in this section, the following terms shall mean:

(1) "Avoided fuel cost", the current average cost of fuel for theentity generating electricity, as defined by the governing body withjurisdiction over any municipal electric utility, rural electriccooperative as provided in chapter 394, RSMo, or electrical corporation asprovided in this chapter;

(2) "Commission", the public service commission of the state ofMissouri;

(3) "Customer-generator", the owner or operator of a qualifiedelectric energy generation unit which:

(a) Is powered by a renewable energy resource;

(b) Has an electrical generating system with a capacity of not morethan one hundred kilowatts;

(c) Is located on a premises owned, operated, leased, or otherwisecontrolled by the customer-generator;

(d) Is interconnected and operates in parallel phase andsynchronization with a retail electric supplier and has been approved bysaid retail electric supplier;

(e) Is intended primarily to offset part or all of thecustomer-generator's own electrical energy requirements;

(f) Meets all applicable safety, performance, interconnection, andreliability standards established by the National Electrical Code, theNational Electrical Safety Code, the Institute of Electrical andElectronics Engineers, Underwriters Laboratories, the Federal EnergyRegulatory Commission, and any local governing authorities; and

(g) Contains a mechanism that automatically disables the unit andinterrupts the flow of electricity back onto the supplier's electricitylines in the event that service to the customer-generator is interrupted;

(4) "Department", the department of natural resources;

(5) "Net metering", using metering equipment sufficient to measurethe difference between the electrical energy supplied to acustomer-generator by a retail electric supplier and the electrical energysupplied by the customer-generator to the retail electric supplier over theapplicable billing period;

(6) "Renewable energy resources", electrical energy produced fromwind, solar thermal sources, hydroelectric sources, photovoltaic cells andpanels, fuel cells using hydrogen produced by one of the above-namedelectrical energy sources, and other sources of energy that becomeavailable after August 28, 2007, and are certified as renewable by thedepartment;

(7) "Retail electric supplier" or "supplier", any municipal utility,electrical corporation regulated under this chapter, or rural electriccooperative under chapter 394, RSMo, that provides retail electric servicein this state.

3. A retail electric supplier shall:

(1) Make net metering available to customer-generators on afirst-come, first-served basis until the total rated generating capacity ofnet metering systems equals five percent of the utility's single-hour peakload during the previous year, after which the commission for a publicutility or the governing body for other electric utilities may increase thetotal rated generating capacity of net metering systems to an amount abovefive percent. However, in a given calendar year, no retail electricsupplier shall be required to approve any application for interconnectionif the total rated generating capacity of all applications forinterconnection already approved to date by said supplier in said calendaryear equals or exceeds one percent of said supplier's single-hour peak loadfor the previous calendar year;

(2) Offer to the customer-generator a tariff or contract that isidentical in electrical energy rates, rate structure, and monthly chargesto the contract or tariff that the customer would be assigned if thecustomer were not an eligible customer-generator but shall not charge thecustomer-generator any additional standby, capacity, interconnection, orother fee or charge that would not otherwise be charged if the customerwere not an eligible customer-generator; and

(3) Disclose annually the availability of the net metering program toeach of its customers with the method and manner of disclosure being at thediscretion of the supplier.

4. A customer-generator's facility shall be equipped with sufficientmetering equipment that can measure the net amount of electrical energyproduced or consumed by the customer-generator. If thecustomer-generator's existing meter equipment does not meet theserequirements or if it is necessary for the electric supplier to installadditional distribution equipment to accommodate the customer-generator'sfacility, the customer-generator shall reimburse the retail electricsupplier for the costs to purchase and install the necessary additionalequipment. At the request of the customer-generator, such costs may beinitially paid for by the retail electric supplier, and any amount up tothe total costs and a reasonable interest charge may be recovered from thecustomer-generator over the course of up to twelve billing cycles. Anysubsequent meter testing, maintenance or meter equipment changenecessitated by the customer-generator shall be paid for by thecustomer-generator.

5. Consistent with the provisions in this section, the net electricalenergy measurement shall be calculated in the following manner:

(1) For a customer-generator, a retail electric supplier shallmeasure the net electrical energy produced or consumed during the billingperiod in accordance with normal metering practices for customers in thesame rate class, either by employing a single, bidirectional meter thatmeasures the amount of electrical energy produced and consumed, or byemploying multiple meters that separately measure the customer-generator'sconsumption and production of electricity;

(2) If the electricity supplied by the supplier exceeds theelectricity generated by the customer-generator during a billing period,the customer-generator shall be billed for the net electricity supplied bythe supplier in accordance with normal practices for customers in the samerate class;

(3) If the electricity generated by the customer-generator exceedsthe electricity supplied by the supplier during a billing period, thecustomer-generator shall be billed for the appropriate customer charges forthat billing period in accordance with subsection 3 of this section andshall be credited an amount at least equal to the avoided fuel cost of theexcess kilowatt-hours generated during the billing period, with this creditapplied to the following billing period;

(4) Any credits granted by this subsection shall expire without anycompensation at the earlier of either twelve months after their issuance orwhen the customer-generator disconnects service or terminates the netmetering relationship with the supplier;

(5) For any rural electric cooperative under chapter 394, RSMo, ormunicipal utility, upon agreement of the wholesale generator supplyingelectric energy to the retail electric supplier, at the option of theretail electric supplier, the credit to the customer-generator may beprovided by the wholesale generator.

6. (1) Each qualified electric energy generation unit used by acustomer-generator shall meet all applicable safety, performance,interconnection, and reliability standards established by any local codeauthorities, the National Electrical Code, the National Electrical SafetyCode, the Institute of Electrical and Electronics Engineers, andUnderwriters Laboratories for distributed generation. No supplier shallimpose any fee, charge, or other requirement not specifically authorized bythis section or the rules promulgated under subsection 9 of this sectionunless the fee, charge, or other requirement would apply to similarlysituated customers who are not customer-generators, except that a retailelectric supplier may require that a customer-generator's system contain aswitch, circuit breaker, fuse, or other easily accessible device or featurelocated in immediate proximity to the customer-generator's meteringequipment that would allow a utility worker the ability to manually andinstantly disconnect the unit from the utility's electric distributionsystem;

(2) For systems of ten kilowatts or less, a customer-generator whosesystem meets the standards and rules under subdivision (1) of thissubsection shall not be required to install additional controls, perform orpay for additional tests or distribution equipment, or purchase additionalliability insurance beyond what is required under subdivision (1) of thissubsection and subsection 4 of this section;

(3) For customer-generator systems of greater than ten kilowatts, thecommission for public utilities and the governing body for other utilitiesshall, by rule or equivalent formal action by each respective governingbody:

(a) Set forth safety, performance, and reliability standards andrequirements; and

(b) Establish the qualifications for exemption from a requirement toinstall additional controls, perform or pay for additional tests ordistribution equipment, or purchase additional liability insurance.

7. (1) Applications by a customer-generator for interconnection of aqualified electric energy generation unit meeting the requirements ofsubdivision (3) of subsection 2 of this section to the distribution systemshall be accompanied by the plan for the customer-generator's electricalgenerating system, including but not limited to a wiring diagram andspecifications for the generating unit, and shall be reviewed and respondedto by the retail electric supplier within thirty days of receipt forsystems ten kilowatts or less and within ninety days of receipt for allother systems. Prior to the interconnection of the qualified generationunit to the supplier's system, the customer-generator will furnish theretail electric supplier a certification from a qualified professionalelectrician or engineer that the installation meets the requirements ofsubdivision (1) of subsection 6 of this section. If the application forinterconnection is approved by the retail electric supplier and thecustomer-generator does not complete the interconnection within one yearafter receipt of notice of the approval, the approval shall expire and thecustomer-generator shall be responsible for filing a new application.

(2) Upon the change in ownership of a qualified electric energygeneration unit, the new customer-generator shall be responsible for filinga new application under subdivision (1) of this subsection.

8. Each commission-regulated supplier shall submit an annual netmetering report to the commission, and all other nonregulated suppliersshall submit the same report to their respective governing body and makesaid report available to a consumer of the supplier upon request, includingthe following information for the previous calendar year:

(1) The total number of customer-generator facilities;

(2) The total estimated generating capacity of its net-meteredcustomer-generators; and

(3) The total estimated net kilowatt-hours received fromcustomer-generators.

9. The commission shall, within nine months of January 1, 2008,promulgate initial rules necessary for the administration of this sectionfor public utilities, which shall include regulations ensuring that simplecontracts will be used for interconnection and net metering. For systemsof ten kilowatts or less, the application process shall use an all-in-onedocument that includes a simple interconnection request, simple procedures,and a brief set of terms and conditions. Any rule or portion of a rule, asthat term is defined in section 536.010, RSMo, that is created under theauthority delegated in this section shall become effective only if itcomplies with and is subject to all of the provisions of chapter 536, RSMo,and, if applicable, section 536.028, RSMo. This section and chapter 536,RSMo, are nonseverable and if any of the powers vested with the generalassembly under chapter 536, RSMo, to review, to delay the effective date,or to disapprove and annul a rule are subsequently held unconstitutional,then the grant of rulemaking authority and any rule proposed or adoptedafter August 28, 2007, shall be invalid and void.

10. The governing body of a rural electric cooperative or municipalutility shall, within nine months of January 1, 2008, adopt policiesestablishing a simple contract to be used for interconnection and netmetering. For systems of ten kilowatts or less, the application processshall use an all-in-one document that includes a simple interconnectionrequest, simple procedures, and a brief set of terms and conditions.

11. For any cause of action relating to any damages to property orperson caused by the generation unit of a customer-generator or theinterconnection thereof, the retail electric supplier shall have noliability absent clear and convincing evidence of fault on the part of thesupplier.

12. The estimated generating capacity of all net metering systemsoperating under the provisions of this section shall count towards therespective retail electric supplier's accomplishment of any renewableenergy portfolio target or mandate adopted by the Missouri generalassembly.

13. The sale of qualified electric generation units to anycustomer-generator shall be subject to the provisions of sections 407.700to 407.720, RSMo. The attorney general shall have the authority topromulgate in accordance with the provisions of chapter 536, RSMo, rulesregarding mandatory disclosures of information by sellers of qualifiedelectric generation units. Any interested person who believes that theseller of any electric generation unit is misrepresenting the safety orperformance standards of any such systems, or who believes that anyelectric generation unit poses a danger to any property or person, mayreport the same to the attorney general, who shall be authorized toinvestigate such claims and take any necessary and appropriate actions.

14. Any costs incurred under this act* by a retail electric suppliershall be recoverable in that utility's rate structure.

15. No consumer shall connect or operate an electric generation unitin parallel phase and synchronization with any retail electric supplierwithout written approval by said supplier that all of the requirementsunder subdivision (1) of subsection 7 of this section have been met. For aconsumer who violates this provision, a supplier may immediately andwithout notice disconnect the electric facilities of said consumer andterminate said consumer's electric service.

16. The manufacturer of any electric generation unit used by acustomer-generator may be held liable for any damages to property or personcaused by a defect in the electric generation unit of a customer-generator.

17. The seller, installer, or manufacturer of any electric generationunit who knowingly misrepresents the safety aspects of an electricgeneration unit may be held liable for any damages to property or personcaused by the electric generation unit of a customer-generator.

(L. 2007 S.B. 54)

Effective 1-01-08

*"This act" (S.B. 54, 2007) contained numerous sections. Consult Disposition of Sections table for a definitive listing.