Mich. Admin. Code R. 460.1018 - Billing and credit for legacy net metering program customers taking service under modified net metering

Rule 118.

(1) Legacy net metering program customers with a system capable of generating more than 20 kWac qualify for modified net metering. A negative net metered quantity during the billing period or during each time-of-use pricing period within the billing period reflects net excess generation for which the customer is entitled to receive credit. Standby charges for customers on an energy rate schedule must equal the retail distribution charge applied to the imputed customer usage during the billing period. The imputed customer usage is calculated as the sum of the metered on-site generation and the net of the bidirectional flow of power across the customer interconnection during the billing period. The commission shall establish standby charges for customers on demand-based rate schedules that provide an equivalent contribution to electric utility system costs. Standby charges may not be applied to customers with systems capable of generating 150 kWac or less.

(2) The credit for excess generation must appear on the next bill. Any excess kWh not used to offset current charges must be carried forward for use in subsequent billing periods.

(3) A customer qualifying for modified net metering shall not have legacy net metering program credits applied to distribution charges.

(4) The credit per kWh for kWh delivered into the electric utility's distribution system must be either of the following as determined by the commission:

(a) The monthly average real-time locational marginal price for energy at the commercial pricing node within the electric utility's distribution service territory or for a legacy net metering program customer on a time-based rate schedule, the monthly average real time locational marginal price for energy at the commercial pricing node within the electric utility's distribution service territory during the time-of-use pricing period.

(b) The electric utility's or alternative electric supplier's power supply component, excluding transmission charges, of the full retail rate during the billing period or time-of-use pricing period.

Notes

Mich. Admin. Code R. 460.1018

2023 MR 8, Eff. 4/25/2023