Bill Text: MI HB5863 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Energy; alternative sources; alternative rates for small generators; provide for in distributed generation program. Amends sec. 179 of 2008 PA 295 (MCL 460.1179) & adds secs. 177a & 178. TIE BAR WITH: HB 5862'18
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-04-25 - Bill Electronically Reproduced 04/24/2018 [HB5863 Detail]
Download: Michigan-2017-HB5863-Introduced.html
HOUSE BILL No. 5863
April 24, 2018, Introduced by Reps. Rabhi, Barrett, Glenn and Dianda 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 179 (MCL 460.1179), as amended by 2016 PA 342,
and by adding sections 177a and 178.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 177a. Both of the following apply to distributed
generation customers with eligible electric generators not capable
of generating 500 kilowatts or more:
(a) The customers qualify for net metering under section
173(8).
(b) The credit per kilowatt hour for electricity 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
device 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 any other rate under this part.
(2) The commission shall conduct contested case proceedings on
the proposed alternative rate pursuant to chapter 4 of the
administrative procedures act of 1969, 1969 PA 306, MCL 24.271 to
24.287. The commission shall approve the alternative rate if it
meets all of the following requirements:
(a) Appropriately applies the methodology established by the
commission under subsection (4).
(b) Charges the customer for all electricity delivered to the
customer by the electric provider at the same retail rate paid by
customers in the customer's rate class who are not participants in
the distributed generation program.
(c) Credits the customer at the alternative rate established
under this subsection for all electricity generated by the
distributed generation device that is not utilized by the customer
for self-service but delivered to the local utility's distribution
system.
(d) Applies the charges and credits in subdivisions (b) and
(c) 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, the electric provider shall pay the credit balance to the
customer at the alternative rate, and the 12-month credit cycle
restarts with the next billing period.
(e) Complies with the interconnection requirements under
section 173(6).
(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 the purposes of subsection (2)(a) not later
than 1 year 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, include an analysis of costs
and benefits to accrue over a period of not less than 20 years,
considering the location and time of generation. The costs and
benefits analyzed shall include, but are not limited, to those
listed in section 173.
(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) 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.
(9) An electric provider shall enter into a contract with an
owner of a distributed generation device receiving an alternative
rate under this section for a term of 20 years or more, unless a
shorter term is requested by the customer and agreed to by the
electric provider.
(10) A customer 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.
Sec.
179. A customer shall own any renewable Renewable energy
credits granted for electricity generated on the customer's site
under
the distributed generation program created in this part .are
owned as follows:
(a) By the customer, to the extent the electricity is utilized
by the customer.
(b) By the electric provider, to the extent the electricity is
delivered to the local utility's distribution system.
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 Senate Bill No.____ or House Bill No. 5862 (request no.
00745'17) of the 99th Legislature is enacted into law.