Bill Text: MI HB5864 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Energy; electricity; net metering; authorize increased customer generating capacity. Amends sec. 173 of 2008 PA 295 (MCL 460.1173).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-04-25 - Bill Electronically Reproduced 04/24/2018 [HB5864 Detail]

Download: Michigan-2017-HB5864-Introduced.html

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HOUSE BILL No. 5864

 

 

April 24, 2018, Introduced by Reps. Barrett, Rabhi and Glenn and referred to the Committee on Energy Policy.

 

     A bill to amend 2008 PA 295, entitled

 

"Clean and renewable energy and energy waste reduction act,"

 

by amending section 173 (MCL 460.1173), as amended by 2016 PA 342.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 173. (1) The commission shall establish a distributed

 

generation program by order issued not later than 90 days after the

 

effective date of the 2016 act that amended this section. by July

 

19, 2017. The commission may promulgate rules the commission

 

considers necessary to implement this program. Any rules adopted

 

regarding time limits for approval of parallel operation shall

 

recognize reliability and safety complications including those

 

arising from equipment saturation, use of multiple technologies,

 

and proximity to synchronous motor loads. The program shall apply

 

to all electric utilities whose rates are regulated by the

 

commission and alternative electric suppliers in this state.

 

     (2) Except as otherwise provided under this part, an electric

 

customer of any class is eligible to interconnect an eligible

 

electric generator with the customer's local electric utility and

 

operate the eligible electric generator in parallel with the

 

distribution system. The program shall be designed for a period of

 

not less than 10 20 years and limit each customer to generation

 

capacity designed to meet up to 100% of the customer's electricity

 

consumption for the previous 12 months. The commission may waive

 

the application, interconnection, and installation requirements of

 

this part for customers participating in the net metering program

 

under the commission's March 29, 2005 order in case no. U-14346.

 

     (3) An electric utility or alternative electric supplier is

 

not required to allow for a distributed generation program that is

 

greater than 1% of its average in-state peak load for the preceding

 

5 calendar years. The electric utility or alternative electric

 

supplier shall notify the commission if its distributed generation

 

program reaches the 1% limit under this subsection. The 1% limit

 

under this subsection shall be allocated as follows:

 

     (a) No more than 0.5% for customers with an eligible electric

 

generator capable of generating 20 kilowatts or less.

 

     (b) No more than 0.25% for customers with an eligible electric

 

generator capable of generating more than 20 kilowatts but not more

 

than 150 kilowatts.

 

     (c) No more than 0.25% for customers with a methane digester

capable of generating more than 150 kilowatts.

 

     (3) (4) Selection of customers who have submitted a complete

 

application for participation in the distributed generation program

 

shall be based on the order in which the applications for

 

participation in the program are received by the electric utility

 

or alternative electric supplier.solely on meeting the

 

interconnection and equipment requirements for participation. An

 

electric utility or alternative electric supplier shall not

 

restrict the number of participants in the net metering program

 

unless it demonstrates to the satisfaction of the commission that

 

the restriction is necessary to protect the public health and

 

safety or the integrity of the distribution system in a hearing

 

before the commission.

 

     (4) (5) An electric utility or alternative electric supplier

 

shall not discontinue or refuse to provide electric service to a

 

customer solely because the customer participates in the

 

distributed generation program.

 

     (5) (6) The distributed generation program created under

 

subsection (1) shall include all of the following:

 

     (a) Statewide uniform interconnection requirements for all

 

eligible electric generators. The interconnection requirements

 

shall be designed to protect electric utility workers and equipment

 

and the general public.

 

     (b) Distributed Requirements that distributed generation

 

equipment and its installation shall meet all current local and

 

state electric and construction code requirements. Any equipment

 

that is certified by a nationally recognized testing laboratory to

IEEE 1547.1 testing standards and in compliance with UL 1741 scope

 

1.1A, effective May 7, 2007, and installed in compliance with this

 

part is considered to be compliant. Within the time provided by the

 

commission in rules promulgated under pursuant to subsection (1)

 

and consistent with good utility practice, and the protection of

 

electric utility workers, electric utility equipment, and the

 

general public, an electric utility may study, confirm, and ensure

 

that an eligible electric generator installation at the customer's

 

site meets the IEEE 1547 anti-islanding requirements or any

 

applicable successor anti-islanding requirements determined by the

 

commission to be reasonable and consistent with the purposes of

 

this subdivision. If necessary to promote reliability or safety,

 

the commission may promulgate rules that require the use of

 

inverters that perform specific automated grid-balancing functions

 

to integrate distributed generation onto the electric grid.

 

Inverters that interconnect distributed generation resources may be

 

owned and operated by electric utilities. Both of the following

 

must be completed before the equipment is operated in parallel with

 

the distribution system of the utility:

 

     (i) Utility testing and approval of the interconnection,

 

including all metering.

 

     (ii) Execution of a parallel operating agreement.

 

     (c) A uniform application form and process to be used by all

 

electric utilities and alternative electric suppliers in this

 

state. Customers who are served by an alternative electric supplier

 

shall submit a copy of the application to the electric utility for

 

the customer's service area.

     (d) Distributed generation customers with a system capable of

 

generating 20 kilowatts or less qualify for true net metering.

 

     (e) Distributed generation customers with a system capable of

 

generating more than 20 kilowatts qualify for modified net

 

metering.

 

     (6) (7) Each electric utility and alternative electric

 

supplier shall maintain records of all applications and up-to-date

 

records of all active eligible electric generators located within

 

their its service area.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.