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EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 1208
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR GREGORY (21).
5509S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 386.890, RSMo, and to enact in lieu thereof one new section relating to net
metering.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 386.890, RSMo, is repealed and one new 1
section enacted in lieu thereof, to be known as section 386.890, 2
to read as follows:3
386.890. 1. This section shall be known and may be 1
cited as the "Net Metering and Easy Connection Act". 2
2. As used in this section, the following terms shall 3
mean: 4
(1) "Avoided fuel cost", the current average cost of 5
fuel for the entity generating electricity, as defined by 6
the governing body with jurisdiction over any municipal 7
electric utility, rural electric cooperative as provided in 8
chapter 394, or electrical corporation as provided in this 9
chapter; 10
(2) "Commission", the public service commission of the 11
state of Missouri; 12
(3) "Customer-generator", an individual person, 13
corporation, limited liability company, or other 14
organization that is the owner or operator of a qualified 15
electric energy generation unit which: 16
(a) Is powered by a renewable energy resource; 17
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(b) Has an electrical generating system with a 18
nameplate capacity of not more than one hundred kilowatts 19
and is located at the premises where the electrical energy 20
is consumed by the customer-generator; 21
(c) Is located on a premises owned, operated, leased, 22
or otherwise controlled by the customer-generator; 23
(d) Is interconnected and operates in parallel phase 24
and synchronization with a retail electric supplier and has 25
been approved by said retail electric supplier; 26
(e) Is intended and sized primarily to offset part or 27
all of the customer-generator's own electrical energy 28
requirements; 29
(f) Meets all applicable safety, performance, 30
interconnection, and reliability standards established by 31
the National Electrical Code, the National Electrical Safety 32
Code, the Institute of Electrical and Electronics Engineers, 33
Underwriters Laboratories, the Federal Energy Regulatory 34
Commission, and any local governing authorities; and 35
(g) Contains a mechanism that automatically disables 36
the unit and interrupts the flow of electricity back onto 37
the supplier's electricity lines in the event that service 38
to the customer-generator is interrupted; 39
(4) "Department", the department of natural resources; 40
(5) "Net metering", [using metering equipment 41
sufficient to measure the difference between the electrical 42
energy supplied to a customer-generator by a retail electric 43
supplier and the electrical energy supplied by the customer- 44
generator to the retail electric supplier over the 45
applicable billing period] a billing option that measures 46
the amount of electricity as measured in kilowatt hours 47
supplied by a retail electric supplier to a customer- 48
generator and separately measuring the amount of the 49
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electricity as measured in kilowatt hours generated by the 50
customer-generator and fed back to the retail electric 51
supplier; 52
(6) "Renewable energy resources", electrical energy 53
produced from wind, solar thermal sources, hydroelectric 54
sources, photovoltaic cells and panels, fuel cells using 55
hydrogen produced by one of the above-named electrical 56
energy sources, and other sources of energy that become 57
available after August 28, 2007, and are certified as 58
renewable by the department; 59
(7) "Retail electric supplier" or "supplier", any 60
municipally owned electric utility operating under chapter 61
91, electrical corporation regulated by the commission under 62
this chapter, or rural electric cooperative operating under 63
chapter 394 that provides retail electric service in this 64
state. An electrical corporation that operates under a 65
cooperative business plan as described in subsection 2 of 66
section 393.110 shall be deemed to be a rural electric 67
cooperative for purposes of this section. 68
3. A retail electric supplier shall: 69
(1) Make net metering available to customer-generators 70
on a first-come, first-served basis until the total rated 71
generating capacity of net metering systems equals five 72
percent of the retail electric supplier's single-hour peak 73
load during the previous year, after which the commission 74
for an electrical corporation or the respective governing 75
body of other retail electric suppliers may increase the 76
total rated generating capacity of net metering systems to 77
an amount above five percent. However, in a given calendar 78
year, no retail electric supplier shall be required to 79
approve any application for interconnection if the total 80
rated generating capacity of all applications for 81
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interconnection already approved to date by said supplier in 82
said calendar year equals or exceeds one percent of said 83
supplier's single-hour peak load for the previous calendar 84
year; 85
(2) Offer net metering to the customer-generator 86
pursuant to a commission approved tariff of an electrical 87
corporation or contract approved by the respective governing 88
body of other retail electric suppliers, under one of the 89
following options: 90
(a) At rates that [is] are identical in electrical 91
energy rates, rate structure, and monthly charges to the 92
contract or tariff that the customer would be assigned if 93
the customer were not an eligible customer-generator [but 94
shall not charge the customer-generator any additional 95
standby, capacity, interconnection, or other fee or charge 96
that would not otherwise be charged if the customer were not 97
an eligible customer-generator]; or 98
(b) With energy and demand rates, rate structure, and 99
recurring monthly charges that are reasonably calculated to 100
recover that portion of the retail electric supplier's fixed 101
and demand costs that are not eliminated as a result of the 102
operation of the customer-generator's qualified electric 103
energy generating unit; and 104
(3) Disclose annually the availability of the net 105
metering program to each of its customers or members with 106
the method and manner of disclosure being at the discretion 107
of the retail electric supplier. 108
4. A customer-generator's facility shall be equipped 109
with sufficient metering equipment that can measure the net 110
amount of electrical energy produced or consumed by the 111
customer-generator. If the customer-generator's existing 112
meter equipment does not meet these requirements or if it is 113
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necessary for the retail electric supplier to install 114
additional distribution equipment to accommodate the 115
customer-generator's facility, the customer-generator shall 116
reimburse the retail electric supplier for the costs to 117
purchase and install the necessary additional equipment 118
including, but not limited to, necessary electric 119
distribution system upgrades. At the request of the 120
customer-generator, such costs may be initially paid for by 121
the retail electric supplier, and any amount up to the total 122
costs and a reasonable interest charge may be recovered from 123
the customer-generator over the course of up to twelve 124
billing cycles. Any subsequent meter testing, maintenance 125
or meter equipment change necessitated by the customer- 126
generator shall be paid for by the customer-generator. 127
5. Consistent with the provisions in this section, the 128
net electrical energy measurement shall be calculated in the 129
following manner: 130
(1) For a customer-generator, a retail electric 131
supplier shall measure the net electrical energy produced or 132
consumed during the billing period in accordance with normal 133
metering practices for customers in the same rate class, 134
either by employing a single, bidirectional meter that 135
measures the amount of electrical energy produced and 136
consumed, or by employing multiple meters that separately 137
measure the customer-generator's consumption and production 138
of electricity; 139
(2) If the electricity supplied by the supplier 140
exceeds the electricity generated by the customer-generator 141
during a billing period, the customer-generator shall be 142
billed for the net electricity supplied by the retail 143
electric supplier in accordance with normal practices for 144
customers in the same rate class; 145
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(3) If the electricity generated by the customer- 146
generator exceeds the electricity supplied by the supplier 147
during a billing period, the customer-generator shall be 148
billed for the appropriate customer and demand charges for 149
that billing period in accordance with subsection 3 of this 150
section and shall be credited an amount at least equal to 151
the avoided fuel cost of the excess kilowatt-hours generated 152
during the billing period, with this credit applied to the 153
following billing period; 154
(4) Any credits granted by this subsection shall 155
expire without any compensation at the earlier of either 156
twelve months after their issuance or when the customer- 157
generator disconnects service or terminates the net metering 158
relationship with the supplier; 159
(5) For any rural electric cooperative under chapter 160
394, or any municipally owned utility, upon agreement of the 161
wholesale generator supplying electric energy to the retail 162
electric supplier, at the option of the retail electric 163
supplier, the credit to the customer-generator may be 164
provided by the wholesale generator. 165
6. (1) Each qualified electric energy generation unit 166
used by a customer-generator shall meet and be installed, 167
maintained, and repaired in accordance with all applicable 168
safety, performance, interconnection, and reliability 169
standards established by any local code authorities, the 170
National Electrical Code, the National Electrical Safety 171
Code, the Institute of Electrical and Electronics Engineers, 172
and Underwriters Laboratories for distributed generation. 173
All qualified electric energy generation units utilizing 174
battery backup shall be installed to operate completely 175
isolated from the retail electric supplier's system 176
including, but not limited to, all neutral connections and 177
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grounding points, during times of backup operation. Unless 178
allowed under subdivision (2) of subsection 3 of this 179
section, no retail electric supplier shall impose any fee, 180
charge, or other requirement not specifically authorized by 181
this section or the rules promulgated under subsection 9 of 182
this section unless the fee, charge, or other requirement 183
would apply to similarly situated customers who are not 184
customer-generators, except that a retail electric supplier 185
may require that a customer-generator's system contain 186
adequate surge protection and a switch, circuit breaker, 187
fuse, or other easily accessible device or feature located 188
in immediate proximity to the customer-generator's metering 189
equipment that would allow a utility worker or emergency 190
response personnel the ability to manually and instantly 191
disconnect the unit from the utility's electric distribution 192
system. 193
(2) For systems of ten kilowatts or less, a customer- 194
generator whose system meets the standards and rules under 195
subdivision (1) of this subsection shall not be required to 196
install additional controls, perform or pay for additional 197
tests or distribution equipment, or purchase additional 198
liability insurance beyond what is required under 199
subdivision (1) of this subsection and subsection 4 of this 200
section. 201
(3) For customer-generator systems of greater than ten 202
kilowatts, the commission for electrical corporations and 203
the respective governing body for other retail electric 204
suppliers shall, by rule or equivalent formal action by each 205
respective governing body: 206
(a) Set forth safety, performance, and reliability 207
standards and requirements; and 208
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(b) Establish the qualifications for exemption from a 209
requirement to install additional controls, perform or pay 210
for additional tests or distribution equipment, or purchase 211
additional liability insurance. 212
7. (1) Applications by a customer-generator for 213
interconnection of a qualified electric energy generation 214
unit meeting the requirements of subdivision (3) of 215
subsection 2 of this section to the distribution system 216
shall be accompanied by the plan for the customer- 217
generator's electrical generating system, including but not 218
limited to a wiring diagram and specifications for the 219
generating unit, and shall be reviewed and responded to by 220
the retail electric supplier, unless mutually agreed to, 221
within thirty days of receipt for systems ten kilowatts or 222
less and within ninety days of receipt for all other 223
systems. Prior to the interconnection of the qualified 224
generation unit to the retail electric supplier's system, 225
the customer-generator will furnish the retail electric 226
supplier a certification from a [qualified] professional 227
electrician or engineer deemed qualified by the retail 228
electric supplier that the installation meets the 229
requirements of subdivision (1) of subsection 6 of this 230
section. In the event the professional electrician or 231
engineer is not licensed, the retail electric supplier may 232
require a bond or other form of financial security to ensure 233
the safe installation and operation of the qualified 234
electric energy generation unit. If the application for 235
interconnection is approved by the retail electric supplier 236
and the customer-generator does not complete the 237
interconnection within one year after receipt of notice of 238
the approval, the approval shall expire and the customer- 239
generator shall be responsible for filing a new application. 240
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(2) Upon the change in ownership of a qualified 241
electric energy generation unit, the new customer-generator 242
shall be responsible for filing a new application under 243
subdivision (1) of this subsection. 244
8. Each electrical corporation shall submit an annual 245
net metering report to the commission, and all other retail 246
electric suppliers shall submit the same report to their 247
respective governing body and make said report available to 248
a consumer of the supplier upon request, including the 249
following information for the previous calendar year: 250
(1) The total number of customer-generator facilities; 251
(2) The total estimated generating capacity of its net- 252
metered customer-generators; and 253
(3) The total estimated net kilowatt-hours received 254
from customer-generators. 255
9. The commission shall, within nine months of January 256
1, 2008, promulgate initial rules necessary for the 257
administration of this section for electrical corporations, 258
which shall include regulations ensuring that simple 259
contracts will be used for interconnection and net 260
metering. For systems of ten kilowatts or less, the 261
application process shall use an all-in-one document that 262
includes a simple interconnection request, simple 263
procedures, and a brief set of terms and conditions. Any 264
rule or portion of a rule, as that term is defined in 265
section 536.010, that is created under the authority 266
delegated in this section shall become effective only if it 267
complies with and is subject to all of the provisions of 268
chapter 536 and, if applicable, section 536.028. This 269
section and chapter 536 are nonseverable and if any of the 270
powers vested with the general assembly under chapter 536 to 271
review, to delay the effective date, or to disapprove and 272
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annul a rule are subsequently held unconstitutional, then 273
the grant of rulemaking authority and any rule proposed or 274
adopted after August 28, 2007, shall be invalid and void. 275
10. The governing body of a rural electric cooperative 276
or municipal utility shall, within nine months of January 1, 277
2008, adopt policies establishing a simple contract to be 278
used for interconnection and net metering. For systems of 279
ten kilowatts or less, the application process shall use an 280
all-in-one document that includes a simple interconnection 281
request, simple procedures, and a brief set of terms and 282
conditions. 283
11. For any cause of action relating to any damages to 284
property or person caused by the qualified electric energy 285
generation unit of a customer-generator or the 286
interconnection thereof, the retail electric supplier shall 287
have no liability absent clear and convincing evidence of 288
fault on the part of the supplier. 289
12. The estimated generating capacity of all net 290
metering systems operating under the provisions of this 291
section shall count towards the respective retail electric 292
supplier's accomplishment of any renewable energy portfolio 293
target or mandate adopted by the Missouri general assembly 294
and for purposes of compliance with any applicable federal 295
law. 296
13. The sale of qualified electric energy generation 297
units to any customer-generator shall be subject to the 298
provisions of sections 407.010 to 407.145 and sections 299
407.700 to 407.720. The attorney general shall have the 300
authority to promulgate in accordance with the provisions of 301
chapter 536 rules regarding mandatory disclosures of 302
information by sellers of qualified electric energy 303
generation units. Any interested person who believes that 304
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the seller of any qualified electric energy generation unit 305
is misrepresenting the safety or performance standards of 306
any such systems, or who believes that any electric energy 307
generation unit poses a danger to any property or person, 308
may report the same to the attorney general, who shall be 309
authorized to investigate such claims and take any necessary 310
and appropriate actions. 311
14. Any costs incurred under this act by a retail 312
electric supplier shall be recoverable in that utility's 313
rate structure. 314
15. No consumer shall connect or operate a qualified 315
electric energy generation unit in parallel phase and 316
synchronization with any retail electric supplier without 317
written approval by said supplier that all of the 318
requirements under subdivision (1) of subsection 7 of this 319
section have been met. For a consumer who violates this 320
provision, a supplier may immediately and without notice 321
disconnect the electric facilities of said consumer and 322
terminate said consumer's electric service. 323
16. The manufacturer of any qualified electric energy 324
generation unit used by a customer-generator may be held 325
liable for any damages to property or person caused by a 326
defect in the qualified electric energy generation unit of a 327
customer-generator. 328
17. The seller, installer, or manufacturer of any 329
qualified electric energy generation unit who knowingly 330
misrepresents the safety aspects of a qualified electric 331
generation unit may be held liable for any damages to 332
property or person caused by the qualified electric energy 333
generation unit of a customer-generator. 334
18. Any person, not a retail electric supplier, who 335
sells a qualified electric energy generation unit or who 336
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provides a net metering service to a customer-generator 337
under this section shall: 338
(1) Provide a prospective or existing customer- 339
generator a minimum of five business days to evaluate a 340
proposal to construct a qualified electric generation unit 341
to provide all or part of the prospective or existing 342
customer-generator's needs for electric energy within a 343
single retail electric supplier's allocated service 344
territory. The proposal to the prospective or existing 345
customer-generator shall include: 346
(a) A description of the qualified electric generation 347
unit and its placement on the customer-generator's premises 348
consistent with the requirements of this section; 349
(b) A description of the nameplate generating capacity 350
and expected monthly and annual output of the qualified 351
electric generation unit in kilowatt hours; 352
(c) The estimated annual degradation to the qualified 353
electric generation unit; 354
(d) An estimated timeline for the installation of the 355
qualified electric generation unit; 356
(e) The total cost of the qualified electric 357
generation unit; 358
(f) The amounts due at signing for and the completion 359
of the installation; 360
(g) The payment schedule; 361
(h) The payback period; 362
(i) The forecasted savings monthly and annual bill 363
savings provided by the proposed qualified electric 364
generation unit in dollars based on the retail electric 365
supplier's rate structure to be obtained directly from the 366
retail electric supplier; 367
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(j) A description of any warranties and the length of 368
any warranties; 369
(k) Notice that the prospective or existing customer- 370
generator may file a complaint with the attorney general; and 371
(l) Certify that the placement of any solar panels 372
will be appropriate to provide the maximum yield of energy 373
to the customer-generator and will provide the output as 374
stated in the proposal; 375
(2) Perform an energy efficiency audit on the 376
potential or existing customer-generator's premises to be 377
served by the proposed qualified electric generation unit as 378
part of the proposal to sell a qualified electric generation 379
unit or provide net-metering service under this section; 380
(3) Inform the prospective or existing customer- 381
generator of the available energy efficiency measures to 382
address the results of the audit as part of the proposal to 383
sell a qualified electric generation unit to a customer- 384
generator under this section; and 385
(4) Demonstrate to the proposed or existing customer- 386
generator that the person, not a retail electric supplier, 387
who sells a qualified electric generation unit or who 388
provides net-metering services to a customer-generator holds: 389
(a) All required permits to install, construct, or 390
operate a qualified electric generation unit in the state, 391
and, if the governing county, municipality, or local 392
authority does not require an electrical inspection, an 393
executed certification that no electrical inspection or 394
permit is required; and 395
(b) A bond or other acceptable financial security to 396
ensure proper maintenance of the qualified electric 397
generation unit and decommissioning of the qualified 398
electric generation unit. 399
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19. Provisions of this section shall be enforced by 400
the attorney general under the Missouri merchandising 401
practices act, sections 407.010 to 407.130, and 570.140 to 402
570.145, including, without limitation, all enforcement 403
powers. 404
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