Mich. Admin. Code R. 460.1001 - Application process

Rule 101.

(1) An electric utility shall file initial distributed generation program tariff sheets in the first rate case filed after June 1, 2018.

(2) Within 30 calendar days of a commission order approving an electric utility's initial distributed generation tariff, or within 30 calendar days of the effective date of these rules, whichever is later, an alternative electric supplier serving customers in that electric utility's service territory shall file an updated distributed generation program plan applicable to its customers in the affected electric utility's service territory.

(3) An electric utility and an alternative electric supplier shall annually file a legacy net metering program report and, if applicable, a distributed generation program report not later than March 31 of each year.

(4) An electric utility and an alternative electric supplier shall maintain records of all applications and up-to-date records of all eligible electric generators participating in the legacy net metering program and distribution generation program.

(5) Selection of customers for participation in the legacy net metering program or distributed generation program must be based on the order in which the applications are received.

(6) An electric utility or alternative electric supplier shall not refuse to provide or discontinue electric service to a customer solely because the customer participates in the legacy net metering program or distributed generation program.

(7) The legacy net metering program and distributed generation program provided by electric utilities and alternative electric suppliers must be designed for a period of not less than 10 years and limit each applicant to generation capacity designed to meet up to 100% of the customer's electricity consumption for the previous 12 months. All of the following requirements apply:

(a) The generation capacity must be determined by an estimate of the expected annual kWh output of the generator or generators as determined in an electric utility's interconnection procedures and specified on an electric utility's legacy net metering program or distributed generation program tariff sheet or in the alternative electric supplier's legacy net metering program or distributed generation program plan. For projects in which energy export controls are implemented pursuant to section R 460.980 and utilized to limit the export to 100% of the customer's electricity consumption for the previous 12 months, an electric utility shall not add the storage capacity to generation capacity for the purpose of the study. If a customer has multiple inverters capable of exporting to the distribution grid, the inverters must be configured in a way that prevents the cumulative maximum export at any given time to exceed the approved amount in the customer's application.

(b) A customer's electric consumption must be determined by 1 of the following methods:

(i) The customer's annual energy consumption, measured in kWh, during the previous 12-month period.

(ii) If there is no data, incomplete data, or incorrect data for the customer's energy consumption or the customer is making changes on-site that will affect total consumption, the electric utility or alternative electric supplier and the customer shall mutually agree on a method to determine the customer's electric consumption.

(c) A net metering or distributed generation customer using an energy storage device in conjunction with an eligible electric generator shall not design or operate the energy storage device in a manner that results in the customer's electrical output exceeding 100% of the customer's electricity consumption for the previous 12 months. The addition of an energy storage device to an existing approved legacy net metering program system or distributed generation program system is considered a material modification. The electric utility interconnection procedures must include details describing how energy storage equipment may be integrated into an existing legacy net metering program system without impacting the 10-year grandfathering period or participation in the distributed generation program.

(8) An applicant shall notify the electric utility of plans for any material modification to the project. An applicant shall re-apply for interconnection pursuant to part 2 of these rules, R 460.911 to R 460.992, and submit revised legacy net metering program or distributed generation program application forms and associated fees. An applicant may be eligible to continue participation in the legacy net metering program or distributed generation program when a material modification is made to a customer's previously approved system and it does not violate the requirements of subrule (7) of this rule or R 460.1026. An applicant shall not begin any material modification to the project until the electric utility has approved the revised application, including any necessary system impact study or facilities study. The application must be processed pursuant to part 2 of these rules, R 460.911 to R 460.992.

Notes

Mich. Admin. Code R. 460.1001

2023 MR 8, Eff. 4/25/2023