Bill Text: IA SF2030 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to solar energy by providing for the establishment of solar interconnection agreements and alternative tariff rates.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2016-01-25 - Subcommittee, Bolkcom, Schneider, and Sodders. S.J. 98. [SF2030 Detail]
Download: Iowa-2015-SF2030-Introduced.html
Senate File 2030 - Introduced SENATE FILE BY BOLKCOM, DEARDEN, SODDERS, and DVORSKY A BILL FOR 1 An Act relating to solar energy by providing for the 2 establishment of solar interconnection agreements and 3 alternative tariff rates. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5386XS (3) 86 rn/nh PAG LIN 1 1 Section 1. NEW SECTION. 476.49 Solar interconnection 1 2 agreements ==== alternative tariff rate. 1 3 1. An electric public utility may enter into 1 4 interconnection agreements with customers operating distributed 1 5 generation solar photovoltaic devices. A utility entering 1 6 into such an agreement may apply to the board for approval 1 7 of an alternative tariff rate that compensates customers 1 8 through a billing credit mechanism for the value to the 1 9 utility, its customers, and society for operating such devices 1 10 interconnected to the utility system and operated by customers 1 11 primarily for meeting their own energy needs. If approved, 1 12 the alternative rate shall apply in lieu of the rate otherwise 1 13 applicable to alternate energy production facilities pursuant 1 14 to section 476.43. 1 15 2. An application for an alternative tariff rate submitted 1 16 by a utility pursuant to this section shall demonstrate that 1 17 the proposed rate conforms with the following: 1 18 a. Appropriately applies the methodology established by the 1 19 board pursuant to subsection 3. 1 20 b. Includes a mechanism to allow recovery of the cost to 1 21 serve customers receiving the alternative tariff rate. 1 22 c. Charges the customer for all electricity consumed by the 1 23 customer at an applicable rate schedule for sales to that class 1 24 of customer. 1 25 d. Credits the customer for all electricity generated by the 1 26 solar photovoltaic device. 1 27 e. Applies charges and credits to a monthly billing that 1 28 includes a provision so that the unused portion of the credit 1 29 in any month or billing period shall be carried forward and 1 30 credited against all charges. In the event that the customer 1 31 has a positive balance after the twelve=month cycle ending on 1 32 the last day in February, that balance shall be eliminated and 1 33 the credit cycle shall restart the following billing period 1 34 beginning on March 1. 1 35 3. The board shall establish a solar value methodology 2 1 for utilization by utilities in developing and applying for 2 2 an alternative tariff rate pursuant to this section. The 2 3 methodology shall, at a minimum, account for the value of 2 4 energy and its delivery, generation capacity, transmission 2 5 capacity, transmission and distribution line losses, and 2 6 environmental value. The board may, based on known and 2 7 measurable evidence of the cost or benefit of solar operation 2 8 to the utility, incorporate other values into the methodology, 2 9 including credits for locally manufactured or assembled 2 10 energy systems, systems installed at high=value locations on 2 11 the distribution grid, or other factors. In developing the 2 12 methodology pursuant to this subsection, the board may consult 2 13 stakeholders with experience and expertise in power systems, 2 14 solar energy, and electric utility ratemaking regarding the 2 15 proposed methodology, underlying assumptions, and preliminary 2 16 data. 2 17 4. Applications shall be subject to the approval provisions 2 18 of section 476.6. A utility shall recalculate the alternative 2 19 tariff rate annually, and shall file the recalculated 2 20 alternative rate with the board for approval. The board shall 2 21 not authorize a utility to charge an alternative tariff rate 2 22 that is lower than the utility's applicable retail rate until 2 23 three years after the board originally approved the alternative 2 24 tariff rate. 2 25 5. A utility shall enter into an interconnection agreement 2 26 with an owner of a solar photovoltaic device receiving an 2 27 alternative tariff rate as provided in this section for a term 2 28 of at least twenty years, unless a shorter term is agreed to by 2 29 the parties. The board shall develop standard interconnection 2 30 agreement forms for utilization by the utility and the owner. 2 31 An owner must be paid the same rate per kilowatt=hour generated 2 32 each year for the duration of the interconnection agreement. 2 33 6. A utility must provide to the customer the meter and 2 34 any other equipment needed to provide service pursuant to the 2 35 interconnection agreement. 3 1 EXPLANATION 3 2 The inclusion of this explanation does not constitute agreement with 3 3 the explanation's substance by the members of the general assembly. 3 4 This bill relates to solar interconnection agreements and 3 5 alternative tariff rates applicable to such agreements. The 3 6 bill provides that a public utility entering into a solar 3 7 energy interconnection agreement may apply to the utilities 3 8 board within the utilities division of the department of 3 9 commerce for approval of an alternative tariff rate that 3 10 compensates customers through a billing credit mechanism 3 11 for the value to the utility, its customers, and society 3 12 for operating such devices interconnected to the utility 3 13 system and operated by customers primarily for meeting their 3 14 own energy needs. The bill specifies criteria to which an 3 15 alternative tariff rate is required to conform, and creates a 3 16 solar value methodology for utilization by public utilities in 3 17 developing and applying for the alternative tariff rate. The 3 18 bill provides that applications for an alternative rate shall 3 19 be subject to the rate approval provisions of Code section 3 20 476.6, and that the utility shall enter into an interconnection 3 21 agreement with an owner of a solar photovoltaic device 3 22 receiving the alternative rate for a term of at least 20 years, 3 23 unless a shorter term is agreed to by the parties. The board is 3 24 directed to develop standard interconnection agreement forms 3 25 for utilization by the utility and the owner. The bill further 3 26 provides that the utility must provide the customer with 3 27 the meter and any other equipment needed to provide service 3 28 pursuant to the interconnection agreement. LSB 5386XS (3) 86 rn/nh
