HB 5862 Summary

• Establishes a distributed generation program allowing customers to generate electricity using eligible electric generators interconnected to local utility distribution systems and operate in parallel with the grid.

• Extends the program duration from 10 years to 20 years and removes the 1% cap on peak load participation, allowing utilities to restrict participation only by demonstrating necessity for public health, safety, or distribution system integrity in contested case hearings.

• Requires utilities to offer net metering to all customers and establishes statewide uniform methodology for fair value tariffs approved by the Michigan Public Service Commission after contested case hearings, with tariffs crediting customers at full retail rate minus delivery charges.

• Authorizes standard-offer contracts for generators with capacity of 500 kilowatts or more, providing fixed-price schedules over 20-year terms adjusted for Consumer Price Index changes.

• Specifies metering requirements and cost allocations based on utility size, with customers generating more than 150 kilowatts responsible for new meter installation costs and those generating more than 20 kilowatts requiring bidirectional measurement capability.