Missouri enacted legislation in June 2007 (S.B. 54)* requiring all electric utilities -- investor-owned utilities, municipal utilities and electric cooperatives -- to offer net metering to customers with systems up to 100 kilowatts (kW) in capacity that generate electricity using wind energy, solar-thermal energy, hydroelectric energy, photovoltaics (PV), fuel cells using hydrogen produced by one of the aforementioned resources, and other sources of energy certified as renewable by the Missouri Department of Natural Resources.
Systems must be intended primarily to offset part or all of a customer's own electricity requirements, and must be located on premises owned, operated, leased or otherwise controlled by the customer. The new law took effect January 1, 2008 although administrative rules for the implementation of net metering by Public Service Commission (PSC) regulated utilities** did not become effective until February 28, 2009. In June 2009 the PSC issued an additional rule making order (June 2009 PSC Order
) revising liability insurance requirements for net metered systems. The revised rules removed all liability insurance requirements for systems up to 10 kW and reduced the minimum insurance requirement for systems larger than 10 kW from $1 million to $100,000. This revision took effect on September 30, 2009. Insurance requiprements may be met with an additional insurance policy or an endorsement on an existing policy.
Net metering is available until the total rated generating capacity of net-metered systems equals 5% of a utility's single-hour peak load during the previous year. However, in a given calendar year, the aggregate capacity of all approved applications for interconnection is limited to 1% of a utility's single-hour peak load for the previous calendar year. If a customer's existing metering equipment is not capable of measuring the net amount of electricity produced or consumed, or if it is necessary for the utility to install "additional distribution equipment to accommodate the customer-generator's facility," then the customer must pay for these costs.
Customer net excess generation (NEG) during a given billing period is credited to the customer's next bill at a rate at least equivalent the utility's avoided-cost rate. Credits expire 12 months after issuance without compensation. Utilities must offer a net-metering tariff or contract that is identical in electrical energy rates, rate structure, and monthly charges to the contract or tariff that the customer would be assigned if the customer were not an eligible customer-generator. Utilities may not charge the customer any additional standby, capacity, interconnection, or other fee or charge that would not otherwise be charged if the customer were not an eligible customer-generator. For systems of 10 kW or less, applications must include an all-in-one document that includes a simple interconnection request, simple procedures, and a brief set of terms and condition.
Any costs incurred by a utility under Missouri's net-metering statute are recoverable in the utility's rate structure. The estimated generating capacity of all net-metered systems counts towards the respective utility's accomplishment of any renewable-energy portfolio target or mandate adopted by Missouri. Each utility must file an annual report describing the status of its program.
**Prior to the June 2007 legislation, Missouri required certain utilities to offer “dual metering” to consumers. “Dual metering” is much less favorable to consumers than net metering.
**Municipal utilities and electric cooperatives, which are not regulated by the PSC, were required to adopt initial rules by October 1, 2008, including regulations ensuring that simple contracts will be used for interconnection and net metering. The adopted rules included an all-in-one document that includes a simple interconnection request, simple procedures, and a brief set of terms and conditions.