Senate Bill 2786

AN ACT TO DECLARE LEGISLATIVE FINDINGS WITH REGARD TO NET ENERGY METERING; TO DEFINE CERTAIN TERMS USED IN THE ACT; TO REQUIRE ELECTRIC UTILITIES TO ALLOW NET ENERGY METERING FACILITIES TO BE INTERCONNECTED USING A METER CAPABLE OF REGISTERING THE FLOW OF ELECTRICITY IN TWO DIRECTIONS; TO REQUIRE THE PUBLIC SERVICE COMMISSION TO ESTABLISH APPROPRIATE RATES, TERMS AND CONDITIONS FOR NET ENERGY METERING CONTRACTS, AND TO PRESCRIBE OTHER DUTIES OF THE PUBLIC SERVICE COMMISSION; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Legislative findings. The Legislature hereby finds and declares that:

(a) Net energy metering encourages the use of renewable energy resources and renewable energy technologies. Increasing the consumption of renewable energy resources promotes the wise use of Mississippi's natural energy resources to meet a growing energy demand, increases Mississippi's use of indigenous energy fuels and fosters investment in emerging renewable technologies to stimulate economic development and job creation in the state.

(b) Mississippi should actively encourage the manufacture of new technologies through promotion of emerging energy technologies. Net energy metering could help to further attract energy technology manufacturers, providing a foothold for these technologies in the Mississippi economy, and easier customer access to these technologies.

SECTION 2. Definitions. As used in this act, the following words and phrases shall have the meaning ascribed to them in this section, unless the context clearly indicates otherwise:

(a) "Commission" means the Mississippi Public Service Commission.

(b) "Electric utility" means a public or investor-owned utility, an electric cooperative, municipal utility, or any private power supplier or marketer that is engaged in the business of supplying electric energy to the ultimate consumer.

(c) "Net energy metering" means measuring the difference between electricity supplied by an electric utility and the electricity generated by a net energy metering customer and sold back to the electric utility over the applicable billing period.

(d) "Net energy metering customer" means an owner of a net energy metering facility.

(e) "Net energy metering facility" means a facility for the production of electrical energy that:

(i) Uses solar, wind, hydroelectric, geothermal, or biomass resources to generate electricity, including, but not limited to, fuel cells and micro turbines that generate electricity if the fuel source is entirely derived from renewable resources;

(ii) Has a generating capacity of not more than twenty-five (25) kilowatts for residential use or three hundred (300) kilowatts for commercial or agricultural use;

(iii) Is located in the State of Mississippi;

(iv) Can operate with an electric utility's existing transmission and distribution facilities; and

(v) Is intended primarily to offset part or all of the net energy metering customer requirements for electricity.

SECTION 3. Net energy metering. (1) An electric utility that offers residential or commercial electrical service, or both, shall allow net energy metering facilities to be interconnected using a meter capable of registering the flow of electricity in two (2) directions.

(2) The Public Service Commission, after notice and opportunity for public comment:

(a) Shall establish appropriate rates, terms and conditions for net energy metering contracts;

(b) Shall establish standards regarding system safety and reliability for interconnection of utility with customer owned generation facilities;

(c) Shall authorize an electric utility to assess a net energy metering customer a greater fee or charge, of any type, if the electric utility's direct costs of interconnection and administration of net energy metering outweigh the distribution system, environmental and public policy benefits of allocating the cost among the electric utility's entire customer base; the net metering customer shall reimburse the utility for any costs in excess of those to serve a traditional customer; and

(d) Shall promulgate rules and regulations related to net metering consistent with the provisions of this act.

(3) Nothing in this act shall derogate from the commission's constitutional authority to regulate, as applicable, all common carriers and public utilities, particularly the authority to implement rules, regulations and tariffs to ensure that neither an electric utility nor its ratepayers shall be adversely affected, or to subsidize activities authorized under this act.

SECTION 4. This act shall take effect and be in force from and after July 1, 2010.