Bill Text: IA SF583 | 2019-2020 | 88th General Assembly | Enrolled
Bill Title: A bill for an act relating to billing methods that may be utilized in connection with distributed generation facilities. (Formerly SSB 1201.) Effective date: 07/01/2020.
Spectrum: Committee Bill
Status: (Passed) 2020-03-12 - Signed by Governor. S.J. 614. [SF583 Detail]
Download: Iowa-2019-SF583-Enrolled.html
Senate
File
583
-
Enrolled
Senate
File
583
AN
ACT
RELATING
TO
BILLING
METHODS
THAT
MAY
BE
UTILIZED
IN
CONNECTION
WITH
DISTRIBUTED
GENERATION
FACILITIES.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
NEW
SECTION
.
476.49
Billing
methods
for
distributed
generation
customers.
1.
Definitions.
For
purposes
of
this
section,
unless
the
context
otherwise
requires:
a.
“Alternate
energy
production
facility”
means
the
same
as
defined
in
section
476.42.
b.
“Distributed
generation
customer”
means
a
person
other
than
a
public
utility
that
interconnects
an
eligible
distributed
generation
facility
to
an
electric
distribution
system.
c.
“Distributed
generation
facility”
means
the
same
as
defined
in
section
476.58,
subsection
1,
paragraph
“b”
,
subparagraph
(2)
or
(3).
d.
“Electric
utility”
means
a
public
utility
that
furnishes
electricity
to
the
public
for
compensation
that
is
required
to
be
rate-regulated
under
this
chapter.
e.
“Eligible
distributed
generation
facility”
means
a
distributed
generation
facility
that
elects
a
billing
method
pursuant
to
subsection
3,
and
to
which
all
of
the
following
apply:
(1)
The
facility
is
located
behind
a
customer’s
electricity
meter.
Senate
File
583,
p.
2
(2)
The
facility
is
interconnected
to
the
electric
utility
distribution
system.
(3)
The
facility
has
an
aggregate
nameplate
capacity
less
than
or
equal
to
one
megawatt
alternating
current.
(4)
The
facility
has
a
capability
to
produce
no
more
than
one
hundred
ten
percent
of
the
customer’s
annual
electricity
usage.
(5)
The
facility’s
generating
capacity
and
associated
energy
is
intended
to
serve
only
the
on-site
electric
requirements
of
the
customer.
f.
“Inflow-outflow
billing”
means
a
billing
method
for
an
eligible
distributed
generation
facility
whereby
the
net
metering
interval
is
measured
hourly
or
subhourly,
and
a
distributed
generation
customer
makes
payment
and
is
credited
as
provided
in
subsection
3,
paragraph
“b”
.
g.
“Net
billing”
means
a
billing
method
for
an
eligible
distributed
generation
facility
whereby
the
net
metering
interval
is
equal
to
a
monthly
billing
period,
and
a
distributed
generation
customer
makes
payment
and
is
credited
as
provided
in
subsection
3,
paragraph
“a”
.
h.
“Net
metering”
means
a
single
meter
monitoring
only
the
net
amount
of
electricity
delivered
to
and
exported
by
an
eligible
distributed
generation
facility,
which
electricity
offsets
electricity
that
would
otherwise
be
purchased
by
a
distributed
generation
customer
from
the
electric
utility.
i.
“Statewide
distributed
generation
penetration”
means
the
aggregate
nameplate
capacity
of
all
eligible
distributed
generation
facilities
of
electric
utilities
as
a
percentage
of
the
aggregate
peak
demand
of
all
electric
utilities.
2.
Publication
of
data.
The
board
shall
collect
data
on
the
nameplate
capacity
of
eligible
distributed
generation
facilities,
calculate
the
statewide
distributed
generation
penetration
percentage,
and
publish
the
data
and
penetration
rate
on
an
annual
basis
on
the
board’s
internet
site.
3.
Billing
methods.
An
electric
utility
shall
file
either
a
net
billing
or
an
inflow-outflow
billing
tariff
with
the
board
to
govern
the
billing
and
crediting
of
eligible
distributed
generation
facilities
interconnected
with
the
electric
distribution
system
of
an
electric
utility
as
follows:
Senate
File
583,
p.
3
a.
(1)
An
electric
utility
choosing
to
utilize
the
net
billing
method
shall
file
a
tariff
with
the
board
whereby
a
distributed
generation
customer
pays
all
applicable
charges,
including
applicable
rider
charges
approved
by
the
board
and
applied
to
non-net
metering
customers,
for
the
electricity
delivered
to
the
customer
over
the
net
metering
interval.
A
distributed
generation
customer
shall
be
credited
in
kilowatt-hours
for
energy
exported
to
the
electric
utility
over
the
net
metering
interval.
A
distributed
generation
customer
may
use
the
kilowatt-hour
credits
to
offset
kilowatt-hours
in
future
billing
periods.
The
offset
shall
include
any
applicable
volumetric
rider
charges
approved
by
the
board
and
applied
to
non-net
metering
customers.
(2)
Any
excess
kilowatt-hours
remaining
at
the
end
of
a
twelve-month
period
shall
be
cashed
out
at
the
electric
utility’s
avoided
cost
rate
with
the
funds
from
the
cash
out
divided
evenly
between
the
customer
and
the
electric
utility’s
low-income
home
energy
assistance
program.
The
distributed
generation
customer
shall
choose
either
a
January
or
April
cash
out
date
at
the
time
of
interconnection.
(3)
Net
billing
shall
not
be
limited
in
any
way
based
on
a
customer’s
peak
demand.
(4)
Net
billing
shall
not
include
any
fees
or
charges
that
are
not
charged
to
customers
in
the
same
rate
class
that
are
not
net
billing
customers.
b.
(1)
An
electric
utility
choosing
to
utilize
the
inflow-outflow
billing
method
shall
file
a
tariff
with
the
board
whereby
a
distributed
generation
customer
pays
all
applicable
charges,
including
applicable
rider
charges
approved
by
the
board
and
applied
to
non-net
metering
customers,
for
the
electricity
delivered
by
the
electric
utility
over
the
net
metering
interval.
The
distributed
generation
customer
is
credited
in
dollars
at
the
outflow
purchase
rate
for
energy
exported
to
the
utility
over
the
net
metering
interval.
The
distributed
generation
customer
may
use
the
dollar
credits
to
offset
any
applicable
volumetric
charges,
including
applicable
rider
charges,
billed
on
a
kilowatt-hour
basis.
(2)
The
electric
utility
shall
select
an
hourly
or
subhourly
metering
interval
that
balances
the
benefits
of
accurately
Senate
File
583,
p.
4
measuring
power
flows
in
each
direction
with
the
cost
of
collecting,
storing,
and
processing
meter
data.
(3)
Inflow-outflow
billing
shall
not
be
limited
in
any
way
based
on
a
customer’s
peak
demand.
(4)
Inflow-outflow
billing
shall
not
include
any
fees
or
charges
that
are
not
charged
to
customers
in
the
same
rate
class
that
are
not
inflow-outflow
customers.
(5)
Prior
to
the
board’s
approval
of
a
value
of
solar
methodology
and
rate,
the
outflow
purchase
rate
for
an
eligible
distributed
generation
facility
shall
be
the
applicable
retail
volumetric
rate,
including
applicable
rider
charges
approved
by
the
board
and
applied
to
non-net
metered
customers.
The
outflow
purchase
rate
for
any
distributed
generation
facility
will
continue
to
be
the
applicable
retail
volumetric
rate
for
a
term
of
twenty
years.
Any
change
in
ownership
of
such
eligible
facility,
or
adoption
and
use
by
the
electric
utility
of
a
value-of-solar
rate
pursuant
to
subsection
4,
shall
not
impact
the
outflow
purchase
rate
for
the
distributed
generation
facility
during
the
twenty-year
term.
4.
Value
of
solar
methodology.
If
the
board
is
petitioned
by
an
electric
utility
after
July
1,
2027,
or
when
the
statewide
distributed
generation
penetration
rate
is
equal
to
five
percent,
whichever
is
earlier,
the
board
shall
initiate
a
proceeding
to
develop
a
value
of
solar
methodology
and
rate
for
eligible
distributed
generation
facilities.
The
value
of
solar
rate
shall
be
determined
through
the
use
of
a
methodology
that
calculates
the
benefits
and
costs
an
eligible
distributed
generation
facility
provides
to,
or
imposes
on,
the
electric
system.
The
value
of
solar
methodology
shall
be
applied
independently
to
each
electric
utility.
When
the
board
determines
the
value
of
solar
methodology,
it
shall
determine
if
there
is
a
need
for
separate
methodologies
for
other
distributed
generation
technologies
or
if
it
can
account
for
the
values
of
other
technologies
with
modifications
to
the
value
of
solar
methodology.
a.
In
establishing
the
methodology,
the
board
shall
initiate
a
formal
proceeding.
The
value
of
solar
methodology
shall
be
determined
through
a
study
conducted
by
an
independent
third
party
and
overseen
by
the
board.
Interested
parties
shall
have
Senate
File
583,
p.
5
the
opportunity
to
comment
and
offer
testimony
on
any
proposed
value
of
solar
methodology
before
it
is
adopted
by
the
board.
b.
The
benefits
and
costs
in
a
value
of
solar
methodology
shall
include
all
of
the
following
factors
as
appropriate
and
supported
by
known
and
measurable
evidence:
(1)
The
cost
of
energy
and
fuel.
(2)
Generation
capacity
and
reserves.
(3)
Transmission
capacity
and
charges.
(4)
Distribution
capacity.
(5)
Transmission
and
distribution
line
losses.
(6)
Fixed
and
variable
costs
associated
with
plant
operations
and
maintenance.
(7)
Environmental
compliance
costs.
(8)
Integration
costs.
(9)
Grid
support
services.
(10)
Other
factors,
based
on
known
and
measurable
evidence
of
the
cost
or
benefit
of
solar
operations
to
the
electric
utility’s
electric
system.
c.
Upon
approval
of
the
value
of
solar
methodology,
the
outflow
purchase
rate
shall
be
limited
to
either
a
five
percent
increase
or
decrease
from
the
previous
outflow
purchase
rate.
The
value
of
solar
rate
shall
be
recomputed
annually
and
reflected
in
the
outflow
purchase
rate,
limited
to
a
five
percent
increase
or
decrease
from
the
previous
outflow
purchase
rate.
If
the
utility
switches
from
a
net
billing
method
to
an
inflow-outflow
billing
method
after
the
value
of
solar
methodology
is
approved,
then
the
previous
purchase
rate
shall
be
the
applicable
retail
volumetric
rate
including
all
applicable
rider
charges
approved
by
the
board.
d.
The
board
shall
consider,
review,
and
update
as
appropriate
the
value
of
solar
methodology
at
least
every
three
years
after
completion
of
the
initial
methodology.
e.
After
the
board
has
approved
a
value
of
solar
methodology
and
rate,
the
outflow
purchase
rate
shall
be
set
using
the
value
of
solar
methodology.
The
outflow
purchase
rate
for
such
a
facility
will
be
fixed
for
a
term
of
twenty
years
regardless
of
any
subsequent
changes
in
the
electric
utility’s
outflow
purchase
rate
or
changes
in
ownership
of
such
facility.
5.
Forfeiture
of
outflow
purchase
credits.
Any
outflow
Senate
File
583,
p.
6
purchase
credits
remaining
at
the
end
of
an
annual
period
shall
be
forfeited
to
the
rider
used
by
the
electric
utility
pursuant
to
subsection
7.
The
distributed
generation
customer
shall
choose
either
a
January
or
April
date
at
the
time
of
interconnection
for
the
purposes
of
determining
the
annual
period.
6.
Proposal
of
separate
rate
classes.
An
electric
utility
shall
not
propose
treating
distributed
generation
customers
as
a
separate
rate
class
in
a
general
rate
case
prior
to
the
board’s
approval
of
a
value
of
solar
methodology
or
prior
to
July
1,
2027,
whichever
is
earlier.
If
an
electric
utility
chooses
to
propose
a
separate
rate
class
for
distributed
generation
customers
in
a
future
proceeding,
such
a
proposal
shall
be
approved
or
disapproved
in
accordance
with
section
476.6
and
accompanying
rules.
7.
Riders.
An
electric
utility
shall
be
allowed
to
recover
the
amounts
credited
to
an
eligible
distributed
generation
customer
for
outflow
purchases
pursuant
to
a
rider.
To
the
extent
an
electric
utility
does
not
have
such
a
rider,
the
board
shall
allow
an
electric
utility
to
establish
a
rider
to
recover
such
amounts.
For
purposes
of
this
subsection,
“rider”
includes
a
fuel
or
energy
adjustment
clause.
8.
Preexisting
tariff.
Any
customer
utilizing
a
net
billing
tariff
approved
by
the
board
on
or
before
the
availability
of
inflow-outflow
billing
may
continue
to
receive
electric
service
pursuant
to
the
preexisting
tariff
for
the
remaining
duration
of
the
contract
regardless
of
any
subsequent
changes
in
ownership
of
such
facility.
9.
Use
of
funds
collected
through
alternate
energy
purchase
programs.
An
electric
utility
may
use
funds
collected
pursuant
to
section
476.47
to
offset
any
amounts
that
would
otherwise
be
recovered
through
a
rider
resulting
from
outflow
purchases
of
excess
energy
produced
by
an
eligible
distributed
generation
facility.
10.
Reasonableness
of
net
billing
and
inflow-outflow
billing.
When
the
statewide
net
metering
penetration
level
reaches
ten
percent,
the
board
shall
determine
whether
the
net
billing
and
inflow-outflow
billing
methods
are
still
reasonable
and
shall
make
recommendations
to
the
general
Senate
File
583,
p.
7
assembly.
Regardless
of
the
board’s
recommendations,
existing
facilities
shall
continue
to
be
eligible
for
the
net
billing
or
inflow-outflow
billing
tariff
in
place
at
the
time
of
installation
and
for
twenty
years
of
operation
thereafter.
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
583,
Eighty-eighth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2020
______________________________
KIM
REYNOLDS
Governor