The bill seeks to improve transparency and consumer protection in the distributed energy resources sector by mandating that distributed energy retailers provide comprehensive disclosures to customers prior to contract agreements for the construction, installation, or operation of distributed energy systems. Key provisions include the requirement for retailers to present a separate disclosure document detailing essential information such as system components, expected energy generation, total costs, and warranties or maintenance obligations. Additionally, the bill requires the attorney general to form an advisory group to create a standardized disclosure form, which must be published by July 1, 2025. It also establishes criteria for sizing distributed energy systems, sets interconnection and operation requirements, and increases capacity limitations for electric public utilities offering parallel generation services. Non-compliance with disclosure requirements will result in penalties, rendering any contract void if the retailer fails to meet the outlined guidelines.

Moreover, the bill outlines the processes for customers seeking to construct and install distributed energy systems connected to utility systems, including a requirement for utilities to provide written notice of application receipt and to approve or deny applications within 90 days. Customers may incur a nonrefundable interconnection application fee and costs for studies and system upgrades. The bill ensures that utilities compensate customers for energy exported to them at a minimum rate of 100% of the utility's avoided cost and specifies conditions for disconnection of a customer's system. It also clarifies customer responsibilities regarding export-limiting devices and system maintenance, prohibits utilities from imposing additional fees for parallel generation service without authorization, and outlines the process for canceling service contracts for abandoned or shut down systems. Overall, the bill aims to facilitate the integration of distributed energy systems while ensuring safety and regulatory compliance.

Statutes affected:
As introduced: 66-1, 66-1268
Sub: 66-1, 66-1268
As Amended by Senate Committee: 66-1, 66-1268
Enrolled: 66-1, 66-1268
{As Amended by House Committee of the Whole}: 66-1, 66-1268