§ 42-140.2-2 - Office of energy resources.
SECTION 42-140.2-2
§ 42-140.2-2 Office of energy resources.– (1) The office of energy resources shall support and facilitate a stakeholderled study of issues pertaining to distributed generations and barriers thatimpede the implementation of distributed generation and the realization of thesocietal benefits thereof. This study shall augment, compliment, and beintegrated with a study initiated pursuant to an order of the public utilitiescommission.
(2) Said study shall consider the following definitions andthe implications thereof for the effective and fair implementation ofdistributed generation:
(a) "Backup power rates" means any component of utilitytariffs that are charged only to those customers who install on-sitegeneration, self-generation, behind-the-meter generation, or distributedgeneration. Backup power rates, also called "standby rates", include, but arenot limited to, any rate, tariff, or surcharge billed on the basis of theamount of energy generated by, or demand change related to, or installedcapacity size of, any generation unit installed by an end-use customer.
(b) "Combined heat and power system" means a system thatproduces, from a single source, both electric power and thermal energy used inany 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 thissection, the system must achieve an average annual fuel conversion efficiencyof at least fifty-five percent (55%).
(c) "Net-metering" means billing or charging an end-usecustomer only for the electricity supply or services which is the net amount ofelectricity actually delivered to the client by a supplier or service company,less any amount of electricity generated by or on behalf of the end- usecustomer and either used on the end-use customer's property or put on to theelectric distribution grid within the same transmission interconnect area inwhich the end-use customers is located.
(3) Said study shall make findings and recommendations usingmethods for determining and quantifying system benefits attributable todistributed generation including costs and benefits relating to:
(a) the electricity distribution system:
(b) the electricity transmission system;
(c) the electricity generating system and the cost andavailability of capital needed to construct or maintain generation capacity;
(d) system losses;
(e) congestion and reliability;
(f) ancillary services including voltage stability andreactive power;
(g) fuel availability and pricing, and costs of electricitysupply;
(h) environmental impacts.
(4) The commissioner of the office of energy resources shallreport the findings and recommendations of the stakeholder's group with regardto any statutory changes necessary to reduce barriers to implementation ofdistributed generation to the general assembly by February 1, 2007.
(5) The commission shall by June 1, 2007, issue the report ofthe stakeholder's group to the public utilities commission; and thecommissioner is hereby authorized to request that the commission initiateproceedings with regard to establishing any appropriate rates and/or regulationnecessary to implement the recommendations contained in the report.
(6) The findings and recommendations of the saidstakeholder's group shall in no way be binding upon either the general assemblyor the public utilities commission and may be accepted, accepted in part,rejected or rejected in part by the general assembly or the public utilitiescommission and until such action by either the general assembly or the publicutilities commission, there shall be no further action on said recommendations.