MO HB877

Requires the Public Service Commission to adopt rules for interconnection of electric generating facilities operating in parallel with utility systems, incorporating IEEE Standard 1547 and UL Standard 1741.

Eligible technologies include renewable energy resources and waste heat recovery, with interconnection agreements, procedures, and fees required to be nondiscriminatory, just, reasonable, and transparent.

Prohibits utilities from requiring a second meter, external disconnect switch, or additional fees and equipment not specifically authorized by commission standards or that would not apply to similarly situated non-interconnection customers.

Allows interconnection customers to sell excess electricity to utilities at the utility's avoided cost, subject to maximum kilowatt-hour limitations the commission may impose for grid reliability.

Requires rural electric cooperatives and municipal utilities to adopt policies consistent with the commission's rules and establish simple, standard interconnection contracts within one year of August 28, 2011.