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Section 5 - Limits to 20 years the allowable payback period for revenue bonds under the <br /> Energy Improvements for Local Governments Program. Amends Minn. Stat. §216C.436, <br /> subd. 8. <br /> Each section under Article 8 is effective beginning May 22, 2013. <br /> Distributed Generation (Article 9) <br /> Article 9 is the core of the omnibus energy bill and came primarily from the Governor's <br /> administration through the Division of Energy Resources. As introduced, the legislative <br /> proposal would have applied to all electric utilities, including municipals and cooperatives. <br /> The new law, however, applies only to investor-owned utilities. That is, the net metering <br /> laws have not changed for municipal and cooperative utilities,and those utilities are <br /> not required to adopt the Solar Value rate described below although they are, as <br /> always, free to incorporate or borrow from this or other compensation models through <br /> local decision making. <br /> Net metering <br /> Utility customers have the option of receiving compensation for their excess power <br /> generation from their net metered renewable or high efficiency distributed generation so <br /> long as their generating facilities have a nameplate capacity of 1,000kW or less. Previously, <br /> the cap was 40kW. <br /> If the capacity is 40kW or less, the customer can choose to receive compensation at a rate <br /> equal to the utility's average retail rate just as before this law passed. <br /> If the capacity is between 40kW and 1,000kW,the customer can receive compensation at a <br /> rate equal to the utility's calculated avoided cost. Those customers may elect to be <br /> compensated in the form of a kWh credit on their electric bills equal to the rate they would <br /> otherwise receive as payment. <br /> Utilities may not impose standby charges on customer generating facilities with a <br /> nameplate capacity of 1,00kW or less. For facilities with a nameplate capacity greater than <br /> 1,000kW,a standby charge may only be imposed in accordance with a PUC order <br /> establishing the costs to be recovered. <br /> Utilities are required to aggregate meters for billing upon customer request. <br /> Utilities may request that the PUC limit the cumulative amount of distributed generation on <br /> a utility's system once it has reached 4% of the utility's annual retail sales. The PUC may <br /> grant further limits upon proof of certain conditions by the utility and after a period for <br /> public comment. <br /> 66 <br />