September 17, 2015, Introduced by Reps. Irwin, Robinson, Hovey-Wright, Sarah Roberts, Dianda, Cochran, McBroom and Inman and referred to the Committee on Energy Policy.
A bill to amend 2008 PA 295, entitled
"Clean, renewable, and efficient energy act,"
(MCL 460.1001 to 460.1195) by adding sections 177a and 178.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 177a. Both of the following apply to net metering
customers with eligible electric generators not capable of
generating 500 kilowatts or more:
(a) The customers qualify for true net metering.
(b) The credit per kilowatt hour for kilowatt hours delivered
into the utility's distribution system shall be the customer's
retail rate, or for net metering customers on a time-based rate
schedule, the customer's retail rate during the time-of-use pricing
period.
Sec. 178. (1) An electric provider may apply for commission
approval for an alternative rate that compensates a customer
through a bill credit for the value to the electric provider, its
customers, and society for operating a distributed generation
resource that is not capable of generating 500 kilowatts or more
and that is interconnected to the system and operated by the
customer primarily for meeting the customer's own energy needs. If
the commission approves the alternative rate, it applies to a
customer interconnection occurring after the date of approval. The
alternative rate is in lieu of the applicable rate under section
177(4) or any other rate under this part.
(2) The commission shall, after notice and opportunity for
public comment, approve the alternative rate if the electric
provider has proposed a plan to establish and implement an
alternative rate that meets all of the following:
(a) Appropriately applies the methodology established by the
commission under subsection (4).
(b) Includes a mechanism to allow recovery of the cost of
serving customers who are compensated at the alternative rate.
(c) Charges the customer for all electricity consumed by the
customer at the applicable rate schedule for the electric
provider's sales to that class of customer.
(d) Credits the customer for all electricity generated by the
distributed generation device at the alternative rate established
under this subsection.
(e) Applies the charges and credits in subdivisions (c) and
(d) to a monthly bill and applies the unused portion of the credit
in any month or billing period to be carried forward and credited
against all the electric provider's charges. If the customer has a
positive balance after the 12-month cycle ending on the last day in
January, that credit balance is paid to the customer at the
alternative rate and the 12-month credit cycle restarts with the
next billing period.
(f) Complies with any applicable size limit specified in this
part.
(g) Complies with the interconnection requirements under
section 173.
(h) Complies with the standby charge requirements established
by the commission for net metering customers.
(3) A provider shall provide to the customer the meter and any
other equipment needed to provide service under the alternative
rate.
(4) The commission shall establish a distributed generation
value methodology for use in subsection (2)(a) not later than 180
days after the effective date of the amendatory act that added this
section. When developing the distributed generation value
methodology, the commission shall consult stakeholders with
experience and expertise in power systems, renewable energy, and
electric provider ratemaking regarding the proposed methodology,
underlying assumptions, and preliminary data.
(5) The distributed generation value methodology established
by the commission shall, at a minimum, account for the value of
energy and its delivery, generation capacity, transmission
capacity, transmission and distribution line losses, and
environmental value. The commission may, based on known and
measurable evidence of the cost or benefit of distributed
generation operation to the electric provider, incorporate other
values into the methodology, including credit for locally
manufactured or assembled energy systems, systems installed at
high-value locations on the distribution grid, or other factors.
(6) The credit for distributed generation value applied to
alternative rates approved under this section shall represent the
present value of the future revenue streams of the value components
identified pursuant to subsection (4) and in subsection (5).
(7) The electric provider shall recalculate the alternative
rate every 2 years, and shall file the recalculated alternative
rate with the commission for approval.
(8) Renewable energy credits for energy from distributed
generation that is subject to this section belong to the electric
provider.
(9) The commission shall not authorize an electric provider to
use an alternative rate that is lower than the electric provider's
applicable retail rate until 3 years after the commission approves
an alternative rate for the electric provider.
(10) A electric provider shall enter into a contract with an
owner of a distributed generation device receiving an alternative
rate under this section for a minimum of 20 years, unless a shorter
term is agreed to by the parties.
(11) An owner of a distributed generation device receiving an
alternative rate under this section shall be paid the same rate per
kilowatt-hour generated each year for the term of the contract.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) Senate Bill No. _____ or House Bill No. 4881 (request
no. 02967'15 *).
(b) Senate Bill No. _____ or House Bill No. 4879 (request
no. 02968'15 *).