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.

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