Bill Text: MI HB5693 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Public utilities; rates; reference to tariff under MCL 460.6a; remove. Amends secs. 7 & 177 of 2008 PA 295 (MCL 460.1007 & 460.1177) & repeals sec. 183 of 2008 PA 295 (MCL 460.1183).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-03-07 - Bill Electronically Reproduced 03/06/2018 [HB5693 Detail]
Download: Michigan-2017-HB5693-Introduced.html
HOUSE BILL No. 5693
March 6, 2018, Introduced by Reps. Rabhi, Sabo, Reilly, Robinson, Howell, Scott, Cambensy, Geiss and Johnson 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 sections 7 and 177 (MCL 460.1007 and 460.1177), as
amended by 2016 PA 342; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7. As used in this act:
(a) "Gasification facility" means a facility located in this
state that, using a thermochemical process that does not involve
direct combustion, produces synthesis gas, composed of carbon
monoxide and hydrogen, from carbon-based feedstocks (such as coal,
petroleum coke, wood, biomass, hazardous waste, medical waste,
industrial waste, and solid waste, including, but not limited to,
municipal solid waste, electronic waste, and waste described in
section 11514 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.11514) and that uses the synthesis gas or
a mixture of the synthesis gas and methane to generate electricity
for commercial use. Gasification facility includes the transmission
lines, gas transportation lines and facilities, and associated
property and equipment specifically attributable to such a
facility. Gasification facility includes, but is not limited to, an
integrated gasification combined cycle facility and a plasma arc
gasification facility.
(b) "Incremental costs of compliance" means the net revenue
required by an electric provider to comply with the renewable
energy standard, calculated as provided under section 47.
(c) "Independent transmission company" means that term as
defined in section 2 of the electric transmission line
certification act, 1995 PA 30, MCL 460.562.
(d) "Integrated gasification combined cycle facility" means a
gasification facility that uses a thermochemical process, including
high temperatures and controlled amounts of air and oxygen, to
break substances down into their molecular structures and that uses
exhaust heat to generate electricity.
(e) "Integrated pyrolysis combined cycle facility" means a
pyrolysis facility that uses exhaust heat to generate electricity.
(f) "LEED" means the leadership in energy and environmental
design green building rating system developed by the United States
Green Building Council.
(g) "Load management" means measures or programs that target
equipment or behavior to result in decreased peak electricity
demand such as by shifting demand from a peak to an off-peak
period.
(h) "Megawatt", "megawatt hour", or "megawatt hour of
electricity", unless the context implies otherwise, includes the
steam equivalent of a megawatt or megawatt hour of electricity.
(i) "Modified net metering" means a utility billing method
that applies the power supply component of the full retail rate to
the net of the bidirectional flow of kilowatt hours across the
customer interconnection with the utility distribution system,
during a billing period or time-of-use pricing period. A negative
net metered quantity during the billing period or during each time-
of-use pricing period within the billing period reflects net excess
generation for which the customer is entitled to receive credit
under section 177(4). Under modified net metering, standby charges
for distributed generation customers on an energy rate schedule
shall be equal to the retail distribution charge applied to the
imputed customer usage during the billing period. The imputed
customer usage is calculated as the sum of the metered on-site
generation and the net of the bidirectional flow of power across
the customer interconnection during the billing period. The
commission shall establish standby charges under modified net
metering for distributed generation customers on demand-based rate
schedules that provide an equivalent contribution to utility system
costs.
A charge for net metering and distributed generation
customers
established pursuant to section 6a of 1939 PA 3, MCL
460.6a,
shall not be recovered more than once. This subdivision is
subject
to section 177(5).
Sec. 177. (1) Electric meters shall be used to determine the
amount of the customer's energy use in each billing period, net of
any excess energy the customer's generator delivers to the utility
distribution system during that same billing period. For a customer
with a generation system capable of generating more than 20
kilowatts, the utility shall install and utilize a generation meter
and a meter or meters capable of measuring the flow of energy in
both directions. A customer with a system capable of generating
more than 150 kilowatts shall pay the costs of installing any new
meters.
(2) An electric utility serving over 1,000,000 customers in
this state may provide its customers participating in the
distributed generation program, at no additional charge, a meter or
meters capable of measuring the flow of energy in both directions.
(3) An electric utility serving fewer than 1,000,000 customers
in this state shall provide a meter or meters described in
subsection (2) to customers participating in the distributed
generation program at cost. Only the incremental cost above that
for meters provided by the electric utility to similarly situated
nongenerating customers shall be paid by the eligible customer.
(4) If the quantity of electricity generated and delivered to
the utility distribution system by an eligible electric generator
during a billing period exceeds the quantity of electricity
supplied from the electric utility or alternative electric supplier
during the billing period, the eligible customer shall be credited
by their supplier of electric generation service for the excess
kilowatt hours generated during the billing period. The credit
shall appear on the bill for the following billing period and shall
be limited to the total power supply charges on that bill. Any
excess kilowatt hours not used to offset electric generation
charges in the next billing period will be carried forward to
subsequent billing periods. Notwithstanding any law or regulation,
distributed generation customers shall not receive credits for
electric utility transmission or distribution charges. The credit
per kilowatt hour for kilowatt hours delivered into the utility's
distribution system shall be either of the following:
(a) The monthly average real-time locational marginal price
for energy at the commercial pricing node within the electric
utility's distribution service territory, or for distributed
generation customers on a time-based rate schedule, the monthly
average real-time locational marginal price for energy at the
commercial pricing node within the electric utility's distribution
service territory during the time-of-use pricing period.
(b) The electric utility's or alternative electric supplier's
power supply component, excluding transmission charges, of the full
retail rate during the billing period or time-of-use pricing
period.
(5)
A charge for net metering and distributed generation
customers
established pursuant to section 6a of 1939 PA 3, MCL
460.6a,
shall not be reduced by any credit or other ratemaking
mechanism
for distributed generation under this section.
Enacting section 1. Section 183 of clean and renewable energy
and energy waste reduction act, 2008 PA 295, MCL 460.1183, is
repealed.
