SB 420 Modifies provisions relating to renewable energy
Sponsor: Lager
LR Number: 1850S.03I Fiscal Note available
Committee: Commerce, Consumer Protection, Energy and the Environment
Last Action: 4/3/2013 - Voted Do Pass S Commerce, Consumer Protection, Energy and the Environment Committee Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2013

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Current Bill Summary


SB 420 - This act modifies provisions relating to renewable energy.

NET METERING AND EASY CONNECTION ACT (Section 386.890) - This act is intended to promote customer ownership of small electric generating systems. This act modifies the definition of a customer-generator requiring the system have a capacity of 200 kW or less rather than 100 kW or less. If an electric supplier must install additional equipment for a customer-generator, the customer-generator must reimburse the electric supplier for costs to purchase and install the equipment. For customer-generator systems of 10 kW or less, the reimbursement is limited to the cost of the meter. Any subsequent meter testing or maintenance costs shall be borne by the customer-generator. The energy produced by the customer-generator will be measured as set forth in this act. If the electricity generated by the customer-generator exceeds the electricity supplied by the supplier during a billing period, this act provides that the customer shall be credited for the excess energy. The customer-generator's excess energy shall expire after a 12 month billing period, or upon service termination.

Customer-generator units must meet all applicable safety guidelines. For customer-generator systems over 10 kW, the Public Service Commission and electric suppliers shall set safety requirements and establish qualifications for exemptions. If damages are caused by a customer-generator unit, the supplier is not liable. In order to obtain service from an electric supplier, a customer-generator must submit an application and a $100 application fee to the retail electric supplier as set forth in this act. If a customer-generator unit changes, the customer is responsible for filing a new application with the supplier. If the application is not timely, the supplier may terminate the customer's service.

In addition, each electric corporation is required to submit a net metering report to the Public Service Commission. An electrical corporation can recover all net metering costs using a tracking mechanism that may be used in the corporations next general rate proceeding. The Public Service Commission retains authority to review the electrical corporations incurred net metering costs at the corporation's next general rate proceeding.

RENEWABLE ENERGY STANDARD (Section 393.1030) - This act makes available solar rebates to customers of electric utilities. It allows electric utilities to assess the difference in cost for generating energy by least-cost renewable sources compared to entirely non-renewable sources. Until June 2018, if the maximum average retail rate is less than or equal to 1% of the utility's solar-related projects, then additional solar rebates may be paid that would produce a retail rate increase as set forth in this act. If the payment of additional rebates exceeds 1% of the electric utility's solar-related projects, the costs may be recoverable. The amount of the customer rebate is determined by the date that the solar electric system is operational as set forth in this act. If, however, the electric utility determines that it will reach the maximum average retail rate increase in a calendar year, the utility may stop paying rebates until the Public Service Commission determines if the utility has actually reached the maximum average retail rate increase. As a condition of receiving the rebate, the customer shall transfer to the electric utility all renewable energy credits associated with the solar electric system for ten years.

This act is similar to HB 1305 (2012) and SB 396 (2013).

KAYLA CRIDER