HB 5968 Summary

• Replaces "net metering" terminology with "customer generation program" throughout the Clean, Renewable, and Efficient Energy Act and establishes a comprehensive statewide program allowing customers to generate electricity using eligible electric generators interconnected to utility distribution systems.

• Expands eligible electric generator definition to include renewable energy systems, cogeneration systems fueled by natural gas, and waste heat recovery systems that meet safety and reliability requirements, rather than limiting to specific capacity thresholds.

• Requires electric utilities and alternative suppliers to offer customers a choice of three compensation methods: net metering (full retail rate credits), fair value tariff (approved by commission), or standard-offer contracts (fixed 20-year prices with annual adjustments).

• Establishes uniform statewide interconnection requirements, application processes, and cost allocation rules, including allowing customers to carry forward excess generation credits, transfer credits between accounts, receive annual payment, or donate credits to nonprofits assisting low-income households.

• Allows customers participating in the program to retain all renewable energy credits generated by their systems and sell them separately to utilities, suppliers, or third parties.