§ 42-140.2-2. Office of energy resources.
(a) The office of energy resources shall support and facilitate a stakeholder-led study
of issues pertaining to distributed generations and barriers that impede the implementation
of distributed generation and the realization of the societal benefits thereof. This
study shall augment, complement, and be integrated with a study initiated pursuant
to an order of the public utilities commission.
(b) Said study shall consider the following definitions and the implications thereof for
the effective and fair implementation of distributed generation:
(1) "Backup power rates� means any component of utility tariffs that are charged only
to those customers who install on-site generation, self-generation, behind-the-meter
generation, or distributed generation. Backup power rates, also called "standby rates�,
include, but are not limited to, any rate, tariff, or surcharge billed on the basis
of the amount of energy generated by, or demand change related to, or installed capacity
size of, any generation unit installed by an end-use customer.
(2) "Combined heat and power system� means a system that produces, from a single source,
both electric power and thermal energy used in any process or for heating that result
in an aggregate reduction in energy use. To be considered a combined heat and power
system for the purpose of this section, the system must achieve an average annual
fuel conversion efficiency of at least fifty-five percent (55%).
(3) "Net-metering� means billing or charging an end-use customer only for the electricity
supply or services that is the net amount of electricity actually delivered to the
client by a supplier or service company, less any amount of electricity generated
by or on behalf of the end-use customer and either used on the end-use customer's
property or put on to the electric distribution grid within the same transmission
interconnect area in which the end-use customers is located.
(c) Said study shall make findings and recommendations using methods for determining and
quantifying system benefits attributable to distributed generation including costs
and benefits relating to:
(1) The electricity distribution system:
(2) The electricity transmission system;
(3) The electricity generating system and the cost and availability of capital needed
to construct or maintain generation capacity;
(4) System losses;
(5) Congestion and reliability;
(6) Ancillary services including voltage stability and reactive power;
(7) Fuel availability and pricing, and costs of electricity supply;
(8) Environmental impacts.
(d) The commissioner of the office of energy resources shall report the findings and recommendations
of the stakeholder's group with regard to any statutory changes necessary to reduce
barriers to implementation of distributed generation to the general assembly by February
1, 2007.
(e) The commission shall by June 1, 2007, issue the report of the stakeholder's group
to the public utilities commission; and the commissioner is hereby authorized to request
that the commission initiate proceedings with regard to establishing any appropriate
rates and/or regulation necessary to implement the recommendations contained in the
report.
(f) The findings and recommendations of the said stakeholder's group shall in no way be
binding upon either the general assembly or the public utilities commission and may
be accepted, accepted in part, rejected, or rejected in part by the general assembly
or the public utilities commission and until such action by either the general assembly
or the public utilities commission, there shall be no further action on said recommendations.