66-1,184. Contracts for parallel generation services between electric utilities and their customers; terms and conditions; duties of customer; renewable generation by certain community colleges, requi
66-1,184
66-1,184. Contracts for parallel generation servicesbetween electricutilities and their customers; terms and conditions; duties ofcustomer; renewable generation by certain community colleges, requirements,financing; generation included in state's energy generation by windpower.(a) Except as provided in subsection (b),every public utility whichprovides retail electric services in this stateshall enter into a contract for parallel generation service with any personwho is a customer of such utility, upon request of such customer, wherebysuch customer may attach or connect to the utility's delivery and meteringsystem an apparatus or device for the purpose of feeding excess electricalpower which is generated by such customer's energy producing system intothe utility's system. No such apparatus or device shall either cause damageto the public utility's system or equipment or present an undue hazard toutility personnel.Every such contract shall include, but need not be limited to, provisionsrelating tofair and equitable compensation on such customer's monthly billfor energy supplied to the utility by such customer.
(b) (1) For purposes of this subsection:
(A) "Utility" means an electric publicutility, as defined by K.S.A. 66-101a, and amendments thereto, any cooperative,as defined by K.S.A. 17-4603, and amendments thereto, or a nonstockmember-owned electric cooperative corporation incorporated in this state, or amunicipally owned or operated electric utility;
(B) "school" means Cloud county community college and Dodge City communitycollege.
(2) Every utility whichprovides retail electric services in this stateshall enter into a contract for parallel generation service with any personwho is a customer of such utility, if such customer is a residential customerof the utility and owns a renewable generator with a capacity of 25 kilowattsor less, or is a commercial customer of the utility and owns a renewablegenerator with a capacity of 200 kilowatts or less or is aschool and owns a renewable generator with a capacity of 1.5 megawatts orless.Such generator shallbe appropriately sized for such customer's anticipated electric load.A commercial customer who uses the operation of a renewable generatorin connection with irrigation pumps shallnot request more than 10 irrigation pumps connected to renewable generators beattached or connected to theutility's system.At the customer's delivery pointon the customer's side of the retail meter suchcustomer may attach or connect to the utility's delivery and meteringsystem an apparatus or device for the purpose of feeding excess electricalpower which is generated by such customer's energy producing system intothe utility's system. No such apparatus or device shall either cause damageto the utility's system or equipment or present an undue hazard toutility personnel.Every such contract shall include, but need not be limited to, provisionsrelating tofair and equitablecompensation for energy supplied to the utility by such customer. Suchcompensation shall be not less than 100% of the utility'smonthly system average cost of energy per kilowatt hourexcept that in the case of renewable generators with a capacity of 200kilowatts or less, such compensation shall be not less than 150% of theutility's monthly system average cost of energy per kilowatt hour.A utility may credit such compensation to the customer's account or pay suchcompensation to the customer at least annually or when the totalcompensation due equals $25 or more.
(3) A customer-generator of any investor owned utilityshall have the option of entering into a contract pursuant to this subsection(b) or utilizing the net metering and easy connection act. Thecustomer-generator shall exercise the option in writing, filed with theutility.
(c) Thefollowing termsand conditions shall apply to contracts entered into under subsection (a) or(b):
(1) The utility will supply, own, and maintain all necessarymeters and associated equipment utilized for billing. In addition, and forthe purposes of monitoring customer generation and load, the utility mayinstall at its expense, loadresearch metering. The customer shall supply, at no expense to the utility,a suitable location for meters and associated equipment used for billingand for load research;
(2) for the purposes of insuring thesafety and qualityof utility system power, the utility shall have the right to require thecustomer, at certain times and as electrical operating conditions warrant,to limit the production of electrical energy from the generating facilityto an amount no greater than the load at the customer's facility of whichthe generating facility is a part;
(3) the customer shallfurnish, install,operate, and maintain in good order and repair and without cost to the utility,such relays, locks and seals, breakers, automatic synchronizer, and othercontrol and protective apparatus as shall be designated by the utility asbeing required as suitable for the operation of the generator in parallelwith the utility's system. In any case where the customer and the utilitycannot agree to terms and conditions of any such contract, the statecorporationcommission shall establish the terms and conditions for such contract. Inaddition, the utility may install, own, andmaintain a disconnecting device located near the electric meter or meters.Interconnection facilities between the customer's and the utility's equipmentshall be accessible at all reasonable times to utility personnel.Upon notification bythe customer of the customer's intent to construct and install parallelgeneration, the utility shall provide the customer a written estimate of allcosts that will be incurred by the utility and billed to the customerto accommodate the interconnection.The customermay be required to reimburse the utility for any equipment or facilitiesrequired as a result of the installation by the customer of generation inparallel with the utility's service. The customer shall notify the utilityprior to the initial energizing and start-up testing of the customer-ownedgenerator, and the utility shall have the right to have a representativepresent at such test;
(4) the utility may require aspecial agreementfor conditions related to technical and safety aspects of parallelgeneration; and
(5) the utility may limit the number and size of renewable generators to beconnectedto the utility's system due to the capacity of the distribution line to whichsuchrenewable generator would be connected, and in no case shall the utility beobligated to purchase an amount greater than 4% of such utility's peak powerrequirements.
(d) Service under any contract entered into undersubsection (a) or (b) shall be subject to either the utility's rulesand regulations on file with the state corporation commission, which shallinclude a standard interconnection process and requirements for such utility'ssystem, or the current federal energyregulatory commission interconnection procedures and regulations.
(e) In any case where the owner of the renewable generator and the utilitycannot agree to terms and conditions of any contract provided for by thissection, the state corporation commission shall establish the terms andconditions for such contract.
(f) The governing body of any school desiring to proceed under this sectionshall, prior to taking any action permitted by this section, make a findingthat either: (1) Net energy cost savings will accrue to the school from suchrenewable generation over a 20-year period; or (2) that such renewablegeneration is a science project being conducted for educational purposes andthat such project may not recoup the expenses of the project through energycost savings.Any school proceeding under this section may contract or enterinto a finance, pledge, loan or lease-purchase agreement with the Kansasdevelopment finance authority as a means of financing the cost of suchrenewable generation.
(g) For the purpose of meeting therequirements of K.S.A. 2009 Supp. 66-1258, and amendments thereto, the parallelgeneration of electricity provided for in this section shall be included aspart of the state's renewable energy generation.
(h) The provisions of the net metering and easy connection act shall notpreclude the state corporation commission from approving net metering tariffsupon request of an electric utility for other methods of renewable generationnot prescribed in subsection (b)(1) of K.S.A. 2009 Supp. 66-1264, andamendments thereto.
History: L. 1979, ch. 208, § 1;L. 2001, ch. 196, § 1;L. 2007, ch. 180, § 5;L. 2009, ch. 141, § 22; May 28.