HB 4880 Summary

• Requires net metering for customers with distributed generation systems under 500 kilowatts, crediting them at their retail rate for electricity delivered to the utility grid.

• Allows electric providers to apply for commission approval of alternative rates compensating distributed generation customers based on the value to the provider, other customers, and society rather than standard net metering rates.

• Requires the Public Service Commission to establish a distributed generation value methodology within 180 days that accounts for energy delivery, generation capacity, transmission losses, and environmental value, with discretionary inclusion of credits for locally-made systems or grid-beneficial locations.

• Mandates electric providers enter 20-year contracts (minimum) with distributed generation owners at fixed annual rates and recalculate alternative rates every 2 years for commission approval.

• Alternative rates cannot fall below the provider's retail rate until 3 years after commission approval; renewable energy credits from subject distributed generation belong to the electric provider.