DEPARTMENT OF ENERGY, LABOR AND ECONOMIC GROWTH

                         PUBLIC SERVICE COMMISSION

              ELECTRIC INTERCONNECTION AND NET METERING STANDARDS


(By authority conferred on the public service commission by section 6 of 1909 
PA 106, MCL 460.556, section 5 of 1919 PA 419, MCL 460.55, sections 4, 6, and 
10e of 1939 PA 3, MCL 460.4, 460.6, and 460.10e, and section 173 of  2008  PA 
295, MCL 460.1173.)


                        PART 1. GENERAL PROVISIONS

R 460.601a Definitions; A-I.
   Rule 1a. As used in these rules:
   (a) "Alternative electric supplier" means that term as defined in  section 
10g of 2000 PA 141, MCL 460.10g.
   (b) "Alternative electric supplier net  metering  program  plan"  means  a 
document supplied by an alternative electric supplier that provides  detailed 
information to an applicant about the  alternative  electric  supplier's  net 
metering program.
   (c) "Applicant" means  the  legally  responsible  person  applying  to  an 
electric utility to  interconnect  a  project  with  the  electric  utility's 
distribution system or a person applying for a  net  metering  program.    An 
applicant shall be a customer of an electric utility and may be a customer of 
an alternative electric supplier.
   (d) "Application review" means a review by the  electric  utility  of  the 
completed application for interconnection  to  determine  if  an  engineering 
review is required.
   (e) "Area network" means a location on the distribution system  served  by 
multiple transformers interconnected in an electrical network circuit.
   (f) "Category 1" means an inverter based project of 20  kW  or  less  that 
uses equipment certified by a nationally  recognized  testing  laboratory  to 
IEEE 1547.1 testing standards and in compliance with UL 1741 scope 1.1A.
   (g) "Category 2" means a project of greater than 20 kW and not  more  than 
150 kW.
   (h) "Category 3" means a project of greater than 150 kW and not more  than 
550 kW.
   (i) "Category 4" means a project of greater than 550 kW and not more  than 
2 MW.
   (j) "Category 5" means a project of greater than 2 MW.
   (k) "Certified equipment"  means  a  generating,  control,  or  protective 
system that has been certified as meeting acceptable safety  and  reliability 
standards by a nationally recognized testing laboratory in  conformance  with 
UL 1741.
   (l) "Commission" means the Michigan public service commission.
   (m) "Commissioning test" means the procedure, performed in compliance with 
IEEE 1547.1, for documenting and verifying the performance of  a  project  to 
confirm  that  the  project  operates   in   conformity   with   its   design 
specifications.
   (n) "Customer" means a  person  who  receives  electric  service  from  an 
electric utility's distribution system or a person who participates in a  net 
metering  program  through  an  alternative  electric  supplier  or  electric 
utility.
   (o) "Customer-generator" means a person that uses a project  on-site  that 
is interconnected to an electric utility distribution system.
   (p) "Distribution system" means the structures, equipment, and  facilities 
operated by an electric utility to deliver  electricity  to  end  users,  not 
including transmission facilities that are subject to the jurisdiction of the 
federal energy regulatory commission.
   (q)  "Distribution  system  study"  means  a  study  to  determine  if   a 
distribution system upgrade is needed to accommodate the proposed project and 
to determine the cost of an upgrade if required.
   (r) "Electric provider"  means  any  person  or  entity  whose  rates  are 
regulated by the commission for selling electricity to  retail  customers  in 
this state.
   (s) "Electric utility" means as that term is defined in section 2 of  1995 
PA 30, MCL 460.562.
   (t) "Eligible electric generator" means a methane  digester  or  renewable 
energy system with a generation capacity limited to the  customer's  electric 
need and that does not exceed the following:
   (i) 150 kW of aggregate generation at a single site for a renewable energy 
system.
   (ii) 550 kW of aggregate  generation  at  a  single  site  for  a  methane 
digester.
   (u) "Engineering review" means a study to determine the suitability of the 
interconnection equipment including any safety and reliability  complications 
arising from equipment saturation, multiple technologies,  and  proximity  to 
synchronous motor loads.
   (v) "Full retail rate" means the power supply and distribution  components 
of the cost of electric service.  Full retail rate does not include a  system 
access charge, service charge, or other charge that  is  assessed  on  a  per 
meter basis.
   (w) "IEEE" means institute of electrical and electronics engineers.
   (x) "IEEE 1547"  means  IEEE  "Standard  for  Interconnecting  Distributed 
Resources with Electric Power Systems."
   (y) "IEEE 1547.1" means IEEE "Standard  Conformance  Test  Procedures  for 
Equipment Interconnecting Distributed Resources with Electric Power Systems."
   (z) "Interconnection" means the process undertaken by an electric  utility 
to construct the electrical facilities necessary to connect a project with  a 
distribution system so that parallel operation can occur.
   (aa)  "Interconnection  procedures"  mean  the  requirements  that  govern 
project interconnection adopted by each electric utility and approved by  the 
commission.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.601b Definitions; J-Z.
   Rule 1b. As used in these rules
   (a) "kW" means kilowatt.
   (b) "kWh" means kilowatt-hours.
   (c) "Material modification" means a modification that changes the  maximum 
electrical output of a project  or  changes  the  interconnection  equipment, 
including either of the following:
   (i) Changing from certified to noncertified equipment.
   (ii) Replacing a component with a component of different functionality  or 
UL listing.
   (d) "Methane digester" means a renewable energy system that uses animal or 
agricultural waste for the production of fuel gas that can be burned for  the 
generation of electricity or steam.
   (e) "Modified net metering" means a utility billing  method  that  applies 
the power supply component of  the  full  retail  rate  to  the  net  of  the 
bidirectional flow of  kWh  across  the  customer  interconnection  with  the 
utility distribution system during a billing period  or  time-of-use  pricing 
period.
   (f) "MW" means megawatt.
   (g)  "Nationally  recognized  testing  laboratory"   means   any   testing 
laboratory recognized by the accreditation program of the U.S. department  of 
labor occupational safety and health administration.
   (h)  "Parallel  operation"  means  the  operation,  for  longer  than  100 
milliseconds, of a project while  connected  to  the  energized  distribution 
system.
   (i)  "Project"  means  electric  generating   equipment   and   associated 
facilities that are not owned or operated by an electric utility.
   (j) "Renewable energy credit" means  a  credit  granted  pursuant  to  the 
commission's renewable energy credit certification and  tracking  program  in 
section 41 of 2008 PA 295, MCL 460.1041.
   (k) "Renewable energy resource" means that  term  as  defined  in  section 
11(i) of 2008 PA 295, MCL 460.1011(i).
   (l) "Renewable energy system" means that term as defined in section  11(k) 
of 2008 PA 295, MCL 460.1011(k).
   (m) "Spot network" means a location on the distribution system that uses 2 
or more inter-tied transformers to supply an electrical network circuit.
   (n) "True net metering" means a utility billing method  that  applies  the 
full retail rate to the net of the bidirectional flow of kW hours across  the 
customer interconnection with  the  utility  distribution  system,  during  a 
billing period or time-of-use pricing period.
   (o) "UL" means underwriters laboratory.
   (p) "UL 1741" means the "Standard for Inverters,  Converters,  Controllers 
and  Interconnection  System  Equipment  for  Use  With  Distributed   Energy 
Resources."
   (q) "UL 1741 scope 1.1A" means paragraph  1.1A  contained  in  chapter  1, 
section 1 of UL 1741.
   (r)  "Uniform  interconnection  application  form"  means   the   standard 
application forms, approved by the commission under R 460.615, to be used for 
category 1, category 2, category 3, category 4, and category 5 projects.
   (s) "Uniform interconnection agreement" means the standard interconnection 
agreements, approved by the commission under  R  460.615  and  used  for  all 
category 1, category 2, category 3, category 4, and category 5 projects.
   (t) "Uniform net metering application" means the net metering  application 
form approved by the commission under R 460.642  and  used  by  all  electric 
utilities and alternative electric suppliers.
   (u) "Working days" means days excluding Saturdays, Sundays, and other days 
when the offices of the electric utility are not open to the public.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.602 Adoption of standards by reference.
   Rule 2. (1) The standards specified in these rules are  adopted  in  these 
rules by reference.
   (a)  UL  1741  Standard  for  Inverters,   Converters,   Controllers   and 
Interconnection System Equipment for Use With Distributed  Energy  Resources, 
November 7, 2005 revision, is available from COMM  2000,  1414  Brook  Drive, 
Downers Grove, IL 60515, USA, telephone number:  1-888-853-3503  or  via  the 
internet website:  www.comm-2000.com at a cost of  $385.00  at  the  time  of 
adoption of these rules.
   (b) The following standards  are  available  from  IEEE  by  telephone  at 
1-800-678-4333 or from the internet website www.standards.ieee.org.
   (i) The IEEE 1547, IEEE Standard for Interconnecting Distributed Resources 
with Electric Power Systems, 1/1/2003, is available at a cost  of  $70.00  at 
the time of adoption of these rules.
   (ii)  The IEEE 1547.1,  IEEE  Standard  Conformance  Test  Procedures  for 
Equipment Interconnecting Distributed Resources with Electric Power  Systems, 
1/1/2005, is available at a cost of $55.00 at the time of adoption  of  these 
rules.
   (2) The standards specified in subrule (1) of this rule are also available 
for inspection and distribution at cost plus  $25.00  shipping  and  handling 
from the Public Service Commission at 6545 Mercantile Way, Suite  7  Lansing, 
MI 48911.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.604 Prohibited practices.
   Rule 4. (1)  An  electric  provider  shall  not  charge  an  applicant  or 
customer-generator  any  fee  or  charge  or  require  additional  equipment, 
insurance, or any  other  requirement  not  specifically  authorized  by  the 
interconnection standards in Part 2 of these rules or under the net  metering 
standards in Part  3  of  these  rules,  unless  the  fee,  charge  or  other 
requirement would apply to other similarly situated  customers  who  are  not 
customer- generators.
   (2) An electric provider or alternative electric supplier shall provide to 
net metering customers electric service at nondiscriminatory rates  that  are 
identical, with respect to rate structure, retail  rate  components  and  any 
monthly charges, to the rates that the net metering customer would be charged 
if the net metering customer were  not  participating  in  the  net  metering 
program.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.606 Designated points of contact.
   Rule 6. (1) Within 30 days of the effective  date  of  these  rules,  each 
electric utility shall designate and maintain an initial point of contact for 
all customer inquiries related to interconnection and net metering from which 
interested parties may  obtain  information  about  interconnection  and  net 
metering procedures and applications and agreement forms.
   (2) Within 30 days of the effective date of these rules, each  alternative 
electric supplier shall designate 1 initial point of contact for all customer 
inquiries related to net metering from which interested  parties  may  obtain 
information about net metering programs, applications, and processing.   Each 
electric  utility  and  alternative  electric  supplier  shall  have  current 
information concerning  its  initial  point  of  contact  on  file  with  the 
commission.
   (3) Each electric utility shall designate and maintain a point of  contact 
for each applicant to address applicant inquiries about technical  issues  or 
interconnection status that may arise during the interconnection process.
   (4)  Each  interconnection  applicant  or  net  metering  customer   shall 
designate a point of contact with sufficient technical expertise  to  address 
any  questions  regarding  a  proposed  interconnection   or   net   metering 
application.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.608 Alternative dispute resolution.
   Rule 8. (1) If there is a dispute between an interconnection applicant and 
an electric utility or between a  net  metering  applicant  and  an  electric 
utility or alternative electric supplier, and with consent  of  all  parties, 
the parties shall attempt alternative means of resolving the dispute.
   (2) Any alternative means that will result in a  settlement  may  be  used 
including, but not limited to, settlement conferences, mediation,  and  other 
informal dispute resolution methods.
   (3) If a party is dissatisfied with  a  recommended  settlement  resulting 
from the alternative  dispute  resolution  process,  the  party  may  file  a 
complaint with the commission as provided under R 460.17101 to R 460.17701.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.610 Appointment of experts.
   Rule 10. (1) If a complaint is filed against an electric utility regarding 
a technical issue, the commission may appoint from 1 to 3 independent experts 
to investigate the complaint and report findings to the commission.
   (2) The experts shall submit a report to the commission with  the  results 
and conclusions of their inquiry and  may  suggest  corrective  measures  for 
resolving the complaint.  The reports of the experts  shall  be  received  in 
evidence and the experts shall be made available for cross examination by the 
parties at any hearing.
   (3) The reasonable expenses of experts, including a reasonable hourly  fee 
or fee determined by the commission, shall be submitted to the commission for 
approval and, if approved, shall be funded under subrule (4) of this rule.
   (4) The electric utility or alternative electric supplier shall  reimburse 
the experts appointed by the commission for the reasonable expenses  incurred 
in the course of investigating the complaint.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.612 Waivers.
   Rule 12. An electric utility, alternative electric supplier, or  applicant 
may apply for a waiver from  1  or  more  provisions  of  these  rules.   The 
commission may grant a waiver upon a showing of good cause and a finding that 
the waiver is in the public interest.

  History: 2009 MR 10, Eff. May 27, 2009.


                        PART 2. INTERCONNECTION STANDARDS

R 460.615 Electric utility interconnection procedures.
   Rule 15. (1) Each electric utility shall file applications for approval of 
proposed interconnection procedures and forms within 90 days of the effective 
date of these rules or by August 3, 2009, whichever date is  sooner.  Two  or 
more  electric   utilities   may   file   a   joint   application   proposing 
interconnection procedures for use by the joint applicants.   All  procedures 
and forms shall be written in plain English.
   (2) The application for interconnection of  a  category  1  project  shall 
contain all of the following:
   (a) A description of the proposed procedure for an applicant to apply  for 
interconnection of a category 1 project.
   (b) A uniform interconnection application form for category 1 projects.
   (c) A uniform interconnection agreement for category 1 projects.
   (3) The application for  interconnection  of  category  2  to  category  5 
projects shall contain all of the following:
   (a) Uniform interconnection application forms for each of  category  2  to 
category 5 projects.
   (b) Uniform interconnection agreements for each of category 2 to  category 
5 projects.
   (c) A description of the steps for processing an application for  category 
2 to category 5 projects that complies with R 460.620.
   (d) Specific technical, engineering, and operational requirements that are 
suitable for the electric utility's distribution system.
   (e) A schedule  of  application  review  fees,  engineering  review  fees, 
distribution system study fees, and testing and  site  inspection  fees  that 
conforms to R 460.618(1).
   (f) A timeline for notifications as required under R 460.620.
   (4) The interconnection procedures shall include all of the following,  if 
applicable:
   (a) For projects interconnecting to  a  spot  network  circuit  where  the 
project or aggregate of total  generation  exceeds  5  percent  of  the  spot 
network's maximum load,  a  requirement  that  the  project  must  utilize  a 
protective scheme that will ensure that its current flow will not affect  the 
network protective devices, including reverse power relays  or  a  comparable 
function.
   (b) For projects that  use  inverter-based  protective  functions  for  an 
interconnection to an area  network,  a  requirement  that  the  project,  in 
aggregate with other projects interconnected on  the  load  side  of  network 
protective devices, shall not exceed the lesser of 10 percent of the  minimum 
annual load on the network or 500 kW.  For  a  photovoltaic  project  without 
batteries, the 10 percent minimum shall be determined as a  function  of  the 
minimum load occurring during an off-peak daylight period.
   (c) For  projects  interconnecting  to  area  networks  that  do  not  use 
inverter-based protective functions or inverter-based projects  that  do  not 
meet the requirements of subrule 4(b) of this rule, a  requirement  that  the 
project use reverse power relays or other protection devices or methods  that 
ensure no export of power from the customer's site including any  inadvertent 
export (e.g. under fault conditions) that could adversely  affect  protective 
devices on the network circuit.
   (5) The proposed procedures shall ensure all of the following:
   (i) Consistency with generally accepted industry practices and guidelines.
   (ii) Reliability of electric service  and  safety  of  customers,  utility 
employees, and the general public.
   (iii) Suitability for the size and capacity of a project as it affects the 
technical and engineering complexity of the interconnection.
   (iv) Compliance with these rules.
   (6) The  proposed  interconnection  procedures  may  include  an  informal 
process for obtaining a waiver to technical  requirements  described  in  the 
interconnection procedures for a specific project  provided  compliance  with 
these rules is ensured.
   (7) The Commission shall  provide  a  30-day  period  for  comment  before 
approving the applications for interconnection procedures.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.618 Interconnection fees.
   Rule  18.  (1)  Interconnection  application   and   engineering   review, 
distribution study, distribution upgrade, and  testing  and  inspection  fees 
shall not exceed  the  following  amounts  for  projects  that  that  do  not 
participate in the net metering program: 

	

		

		
 
		

		
Application review
		

		
Engineering review
		

		
Distribution study
		

		
Distribution
		
upgrades
		

		
Testing      & 
inspection
	
	

		

		
Category 1
		

		
$75
		

		
$0
		

		
$0
		

		
$0
		

		
$0
	
	

		

		
Category 2
		

		
$100
		

		
$0
		

		
Actual or maximum 
		approved by commission
		

		
Actual or maximum 
		approved by commission
		

		
Actual or maximum 
		approved by commission
	
	

		

		
Category 3
		

		
$150
		

		
$0
		

		
Actual or maximum 
		approved by commission
		

		
Actual or maximum 
		approved by commission
		

		
Actual or maximum 
		approved by commission
		
 
	
	

		

		
Category 4
		

		
$250
		

		
Actual or maximum 
		approved by commission
		

		
Actual or maximum 
		approved by commission
		

		
Actual or maximum 
		approved by commission
		

		
Actual or maximum 
		approved by commission
	
	

		

		
Category 5
		

		
$500
		

		
Actual or maximum 
		approved by commission
		

		
Actual or maximum 
		approved by commission
		

		
Actual or maximum 
		approved by commission
		

		
Actual or maximum 
		approved by commission
	

   (2) Net metering application fees for category 1 to  category  3  projects 
that participate  in  the  net  metering  program  shall  not  exceed  $25.   
Interconnection  application  and  engineering  review,  distribution  study, 
distribution upgrade, and testing and inspection fees shall  not  exceed  the 
following amounts for projects that participate in the net metering program:

	

		

		
 
		

		
Application review
		

		
Engineering review
		

		
Distribution study
		

		
Distribution
		
upgrades
		

		
Testing      & 
inspection
	
	

		

		
Category 1
		

		
$75
		

		
$0
		

		
$0
		

		
$0
		

		
$0
	
	

		

		
Category 2
		

		
$75
		

		
$0
		

		
Actual or maximum 
		approved by commission
		

		
Actual or maximum 
		approved by commission
		

		
$0
	
	

		

		
Category 3
		

		
$75
		

		
$0
		

		
Actual or maximum 
		approved by commission
		

		
Actual or maximum 
		approved by commission
		

		
$0
	


  History: 2009 MR 10, Eff. May 27, 2009.


R 460.620 Application and interconnection process.
   Rule  20.  (1)  If  requested  by  the  applicant  before  or  during  the 
application process, an electric utility shall  provide  up  to  2  hours  of 
technical consultation at no additional cost to the  applicant.  Consultation 
may be  limited  to  providing  information  concerning  the  utility  system 
operating characteristics and location of system components.
   (2) For category 2 and category  3  project  applications,  the  applicant 
shall provide a one-line diagram that is signed  and  sealed  by  a  licensed 
professional engineer, licensed in the State of Michigan or by an  electrical 
contractor licensed by the state of Michigan with the electrical contractor's 
license number noted on the diagram.
   (3) For category 4 and category  5  project  applications,  the  applicant 
shall provide a one-line diagram that is sealed by  a  professional  engineer 
licensed by the state of Michigan.
   (4) Within 10 working days of receiving a new or  revised  interconnection 
application, the electric utility shall  notify  the  applicant  whether  the 
interconnection application is complete.  If the application  is  incomplete, 
the electric utility shall advise the applicant of the deficiency.
   (5) Within 10 working days of determining that an application is complete, 
the electric utility shall complete its application review.  For  category  1 
projects or if the application review shows that an engineering review is not 
required, the interconnection process shall proceed to subrule (11)  of  this 
rule.  If the electric utility  determines  that  an  engineering  review  is 
required, it shall notify the applicant of the need  for  and  cost  of  that 
review except for projects that are exempt for engineering review costs under 
R 460.618.  An applicant shall have 6 months in which to request, in writing, 
that the utility proceed with an engineering review at the cost  indicated.
The applicant shall provide any changes or updates to the application  before 
the engineering review begins.
   (6) Upon receiving applicant's written notification to  proceed  with  the 
engineering  review  and  applicable  payment,  the  electric  utility  shall 
complete an engineering review and notify the applicant of the results within 
the following time periods:
   (a) Category 2 applications, 10 working days.
   (b) Category 3 application, 15 working days.
   (c) Category 4 application, 25 working days.
   (d) Category 5 application, 45 working days.
   (7) If the engineering review indicates that a distribution  system  study 
is necessary, the electric utility shall provide, in writing, the cost of the 
study in its engineering review findings, except for projects that are exempt 
from distribution study costs  under  R  460.618.   The  utility  shall  also 
provide the applicant with a list of distribution system upgrades that may be 
required for interconnection with an estimated cost of each system  component 
if such information  is  reasonably  ascertainable  upon  completion  of  the 
engineering study.   This estimate shall be provided to assist the  applicant 
in determining whether to proceed with the project and the utility shall  not 
be bound by the estimate. The distribution system study cost is valid  for  6 
months and the applicant shall have 6 months from receipt of the  engineering 
review findings in which to notify the electric utility to proceed  with  the 
distribution system study.  Upon receiving written  notification  to  proceed 
and payment of the applicable fee, the electric  utility  shall  conduct  the 
distribution system study.
   (8) The electric utility shall complete the distribution system study  and 
provide study results to the applicant within the following time periods:
   (a) Category 2 applications, 10 working days.
   (b) Category 3 application, 15 working days.
   (c) Category 4 application, 45 working days unless a different time period 
is mutually agreed upon.
   (d) Category 5 application, 60 working days unless a different time period 
is mutually agreed upon.
   (9) The electric utility shall  notify  the  applicant  of  its  completed 
distribution  system  study  findings  along  with  any  distribution  system 
construction or modification costs to be paid by the applicant.  The cost may 
include a contingency fee of not more than 10%.  Any payment made  in  excess 
of actual costs shall be refunded to the applicant.
   (10) If the applicant agrees, in writing, to pay the  cost  identified  in 
subrule  (9)  of  this  rule,  the  electric  utility  shall   complete   the 
distribution system upgrades and the applicant shall pay for the upgrades and 
install the project within a mutually agreed upon time period.
   (11) The applicant shall notify the electric utility when an  installation 
and any required local code inspection and approval is complete  and  provide 
an opportunity for the electric utility to schedule a site visit  to  witness 
or perform commissioning tests  required  by  IEEE  1547.1  and  inspect  the 
project.  The electric utility may provide a written waiver of its  right  to 
visit  the  site  to  inspect  the  project  and  witness  or   perform   the 
commissioning tests.  The utility shall notify the applicant of its intent to 
visit the site, inspect the project, witness  or  perform  the  commissioning 
tests, or of its intent to waive inspection  within  10  working  days  after 
notification that the installation and inspections are complete.
   (12) Within 5 working days of the receipt of the  completed  commissioning 
test  report,  the  electric  utility  shall  notify  the  applicant  of  its 
acceptance of the commissioning test report and shall notify the applicant of 
its approval  or  disapproval  of  the  interconnection.   If  approved,  the 
electric utility shall also provide to the applicant a written  statement  of 
final approval, cost reconciliation, and an interconnection  agreement.   The 
applicant shall sign and return the interconnection agreement to the electric 
utility before beginning parallel operation.  If the  electric  utility  does 
not approve the  interconnection,  the  electric  utility  shall  notify  the 
applicant of the necessary corrective actions  required  for  approval.   The 
applicant, after taking corrective action, may request the  electric  utility 
to reconsider the interconnection request.
    (13) An applicant for interconnection  who  receives  generation  service 
from an alternative electric supplier and who intends to participate  in  the 
alternative electric supplier's net metering program shall provide a copy  of 
the complete interconnection application with the  applicant's  net  metering 
application to the alternative electric supplier.  The  alternative  electric 
supplier shall notify the applicant  within  10  business  days  whether  the 
applicant is accepted into the alternative electric supplier's  net  metering 
program.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.622 Modifications to project.
   Rule 22. The applicant shall notify the electric utility of plans for  any 
material modification to the  project.   The  applicant  shall  provide  this 
notification by submitting a revised uniform application form and application 
fee along with all supporting materials that are reasonably requested by  the 
electric utility. The applicant may not begin any  material  modification  to 
the project until the electric utility has approved the revised  application, 
including any necessary engineering review or distribution system study.  The 
application shall be processed in accordance with R 460.620.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.624 Insurance.
   Rule 24. (1) An applicant interconnecting  a  category  1  or  category  2 
project to the distribution system  of  an  electric  utility  shall  not  be 
required by the utility to obtain any additional liability insurance.
   (2) An electric utility shall not require an applicant  interconnecting  a 
category 1 or category 2 project to name the utility as an additional insured 
party.
   (3) For category 3 to category 5 projects, the applicant shall obtain  and 
maintain general liability insurance of a minimum of $1,000,000.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.626 Disconnection.
   Rule 26. An electric utility may refuse to connect  or  may  disconnect  a 
project from the distribution system if any of the following conditions apply:
   (a) Lack of a fully executed interconnection agreement.
   (b) Termination of interconnection by mutual agreement.
   (c) Noncompliance  with  technical  or  contractual  requirements  in  the 
interconnection agreement after notice is provided to the  applicant  of  the 
technical or contractual deficiency.
   (d) Distribution system emergency.
   (e) Routine maintenance,  repairs,  and  modifications,  but  only  for  a 
reasonable length of time necessary to perform the  required  work  and  upon 
reasonable notice.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.628 Easements and rights-of-way.
   Rule 28. If an electric utility line extension is required to  accommodate 
an interconnection, the applicant is responsible for the cost of providing or 
obtaining easements or rights-of-way.

  History: 2009 MR 10, Eff. May 27, 2009.


                           PART 3. NET METERING STANDARDS

R 460.640 Application process.
   Rule 40. (1) Each  electric  provider  shall  file  initial  net  metering 
program tariff sheets within 30 days of the effective date of these rules  or 
by June 30, 2009, whichever date is sooner.
   (2) Each alternative electric supplier shall file an alternative  electric 
supplier net metering program plan within 30 days of the  effective  date  of 
these rules or by June 30, 2009, whichever date is sooner.
   (3) Electric providers  and  alternative  electric  suppliers  shall  file 
annual net metering program reports  in  a  form  to  be  determined  by  the 
commission, not later than March 31 of each year.
   (4) Each electric provider shall maintain records of all applications  and 
up-to-date records of all active eligible electric generators located  within 
its service area.  Each alternative electric supplier shall maintain  records 
of  all  applications  and  up-to-date  records  of  all  eligible   electric 
generators participating in its net metering program.
   (5) Selection of customers for participation in the net  metering  program 
shall be based on the order in which the applications for  the  net  metering 
program are  received  by  the  electric  provider  or  alternative  electric 
supplier.
   (6) An electric provider or alternative electric supplier shall not refuse 
to provide or discontinue electric service  to  a  customer  solely  for  the 
reason that the customer participates in the net metering program.
   (7) Net metering programs provided by electric providers  and  alternative 
electric suppliers shall limit each applicant to generation capacity designed 
to meet the customer's electric needs.
   (a) At the customer's option, the generation capacity shall be  determined 
by 1 of the following methods:
   (i) Aggregate nameplate capacity of the generator(s).
   (ii) An estimate of the expected annual kWh  output  of  the  generator(s) 
determined in a manner approved  by  the  commission  and  specified  on  the 
electric provider's net metering tariff sheet or in the alternative  electric 
supplier's net metering program plan.
   (b) At the customer's option,  the  customer's  electric  needs  shall  be 
determined by 1 of the following methods:
   (i) The customer's annual  energy  usage,  measured  in  kWh,  during  the 
previous 12-month period.
   (ii) For a customer  with  metered  demand  data  available,  the  maximum 
integrated hourly demand measured in kW during the previous 12-month period.
   (iii) In cases where there is no data, incomplete data, or incorrect  data 
for the customer's energy usage or the customer  is  making  changes  on-site 
that will affect total usage, the electric provider or  alternative  electric 
supplier and the customer shall mutually agree on a method to  determine  the 
customer's electric needs.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.642 Net metering application and fees.
   Rule 42. (1) A uniform net metering application form and process shall  be 
used by all electric  providers  and  alternative  electric  suppliers.   The 
uniform net metering application form shall be approved by the commission.
   (2) Net metering application processing for electric  providers  shall  be 
conducted in the following manner:
   (a) An applicant applying for net metering shall at the  same  time  apply 
for an electric  provider  interconnection  or  shall  indicate  on  the  net 
metering application that the applicant has applied for interconnection  with 
the electric provider.
   (b) If an applicant has an executed interconnection agreement at the  time 
of filing the net metering application, the electric provider shall  have  10 
working days to complete its review of the  net  metering  application.   All 
other net metering applications shall be processed within 10 days  after  the 
applicant's interconnection agreement is executed.
   (c) As part of the review, the electric provider shall  determine  whether 
the appropriate meter(s) are installed for net metering.
   (d) After completing the review, the electric provider  shall  notify  the 
customer whether the net metering application is approved or disapproved.
   (e) If an applicant approved for net metering requires new  or  additional 
meters, the electric provider shall make arrangements with  the  customer  to 
install the meters at a mutually agreed upon time.
   (f) Within 10 working days after the necessary meters are  installed,  the 
electric provider shall complete changes to the applicant's account to permit 
net metering credit to be applied to the account.
   (3) Net metering application processing for alternative electric suppliers 
shall be conducted in the following manner:
   (a) A customer receiving  retail  electric  service  from  an  alternative 
electric supplier shall submit the completed net metering application form to 
the alternative electric supplier and a copy of  the  form  to  the  electric 
provider that provides distribution services.
   (b) Within the time periods in subrule (2)  of  this  rule,  the  electric 
provider shall determine whether the appropriate meter(s) are  installed  for 
net metering and, if necessary, contact the customer  to  arrange  for  meter 
installation.
   (c) The electric provider shall notify the alternative  electric  supplier 
when the interconnection agreement for the eligible generator is executed and 
installation of the appropriate meter(s) is completed.
   (d) Within 10 working  days  of  notification,  the  alternative  electric 
supplier shall complete changes to the  applicant's  account  to  permit  net 
metering credit to be applied to the account.
   (4) If a net metering application is disapproved, the electric provider or 
alternative electric supplier shall notify the customer of  the  reasons  for 
the disapproval.  The customer shall have an opportunity to correct  the  net 
metering application.  If the application is withdrawn by the  customer,  the 
electric provider or alternative  electric  supplier  shall  refund  the  net 
metering application fee to the customer.
  (5)  Customers  participating  in  the  net  metering  program  under   the 
commission's March 29, 2005 order in case no. U-14346 shall be transferred to 
the statewide net metering program established under these  rules  within  30 
days of commission approval of the electric provider's net metering tariff.
Any remaining net excess generation credits shall be credited to the customer 
in accordance  with  R  460.652.   Additional  application,  interconnection, 
installation fees, or  system  requirements  are  waived  for  customers  who 
transfer to the net metering program authorized by these rules.
   (6)  The  net  metering  application  fee  for  electric   providers   and 
alternative electric suppliers shall  not  exceed  $25.   The  fee  shall  be 
specified on the electric provider's net metering  tariff  sheet  or  in  the 
alternative electric supplier's net  metering  program  plan.   The  combined 
total of net metering application fees and interconnection application review 
fees shall not exceed $100.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.644 Net metering program size.
   Rule 44. If an electric provider or alternative electric supplier  reaches 
the net metering program size limits in section 173(2) of 2008  PA  295,  MCL 
460.1173(2), the electric provider or  alternative  electric  supplier  shall 
provide notice to the commission and to all customers that its  net  metering 
program is closed and  that  no  new  applications  will  be  accepted.   All 
completed applications that are pending at the time the net metering  program 
closes shall be processed and the applicants shall be allowed to  participate 
in the net metering program.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.646 Generation and net metering equipment.
   Rule  46.  (1)  New  generation  and  net  metering  equipment   and   its 
installation must meet all current local and state electric and  construction 
code requirements. Any equipment that is certified by a nationally recognized 
testing laboratory to IEEE 1547.1 testing standards and in compliance with UL 
1741 scope 1.1A and installed in compliance  with  this  part  is  considered 
eligible equipment.  Within the time provided by the commission in R  460.620 
and consistent with good provider practice, protection of  electric  provider 
workers, protection of electric provider equipment,  and  protection  of  the 
general public, an electric provider may study, confirm, and ensure  that  an 
eligible electric generator installation at the  customer's  site  meets  the 
IEEE 1547 anti-islanding requirements.
   (2) Customers with executed interconnection agreements  on  the  effective 
date of these rules shall be  considered  eligible  generators  provided  the 
customer's project complies with R 460.601a(t) and R 460.640(7).

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.648 Meters.
   Rule 48. (1) For a customer with a generation system capable of generating 
20 kW or less, the provider may determine the customer's net usage using  the 
customer's existing meter if it is capable of  reverse  registration  or  may 
install a single meter with separate registers measuring power flow  in  each 
direction.  If the provider uses the customer's existing meter, the  provider 
shall test and calibrate the meter to assure accuracy in both directions.  If 
the customer's meter is not capable of  reverse  registration  and  if  meter 
upgrades or modifications are required, the following apply:
   (a) An electric provider serving over 1,000,000 customers  in  this  state 
shall provide a meter or meters capable of measuring the flow  of  energy  in 
both directions at no additional charge to the net  metering  customer.   The 
cost of the meter(s) or meter modification shall  be  considered  a  cost  of 
operating the net metering program.
   (b) An electric provider serving fewer than 1,000,000  customers  in  this 
state shall provide a meter or meters capable of measuring the flow of energy 
in both directions to customers at cost.  Only  the  incremental  cost  above 
that for meter(s) provided by the electric  provider  to  similarly  situated 
nongenerating customers shall be paid by the eligible customer.
   (c) An electric provider shall provide a generator meter, if requested  by 
the customer, at cost.
   (2) For a customer with a generation system  capable  of  generating  more 
than 20 kW and up to 150 kW, the provider shall utilize  a  meter  or  meters 
capable of measuring the flow of energy in both directions and the  generator 
output.  If meter upgrades are necessary to provide such  functionality,  the 
following applies:
   (a) An electric provider serving over 1,000,000 customers  in  this  state 
shall provide a meter or meters capable of measuring the flow  of  energy  in 
both directions at no additional charge to a net metering customer.   If  the 
provider provides the upgraded  meter(s)  at  no  additional  charge  to  the 
customer, the cost of the meter(s) shall be considered a  cost  of  operating 
the net metering program.
   (b) An electric provider serving fewer than 1,000,000  customers  in  this 
state shall provide a meter or meters capable of measuring the flow of energy 
in both directions to customers at cost.  Only  the  incremental  cost  above 
that for meters provided by  the  electric  provider  to  similarly  situated 
nongenerating customers shall be paid by the eligible customer.
   (c) An electric provider shall provide a generator meter.  The cost of the 
meter shall be considered a cost of operating a net metering program.
   (3) For a customer with a generation system  capable  of  generating  more 
than 150 kW, the  provider  shall  utilize  a  meter  or  meters  capable  of 
measuring the flow of energy in both directions and the generator output.  If 
meter upgrades are necessary to provide such functionality the customer shall 
pay the cost of providing any new meters.
   (4) An electric provider deploying advanced metering infrastructure  shall 
not charge the cost of advanced meters to a net metering customer or the  net 
metering program.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.650 Billing and credit for true net metering customers.
   Rule 50. (1) Net metering customers with a system capable of generating 20 
kW or less shall qualify for true net metering.  For  customers  who  qualify 
for true net metering, the net of the bidirectional flow of  kWh  across  the 
customer interconnection with the  utility  distribution  system  during  the 
billing period or during each time-of-use pricing period within  the  billing 
period, including excess generation, shall be credited  at  the  full  retail 
rate.
   (2) The credit for excess generation, if any, shall  appear  on  the  next 
bill.  Any excess credit not used to offset current charges shall be  carried 
forward for use in subsequent billing periods.
   (3) If a customer leaves the provider's system or  service  is  terminated 
for any reason, an electric provider or alternative electric  supplier  shall 
refund to the customer the remaining credit amount.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.652 Billing and credit for modified net metering customers.
   Rule 52. (1) Net metering customers with a system  capable  of  generating 
more than 20 kW qualify for modified net metering.  For customers who 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 modified net metering  customers  on  an  energy 
rate schedule shall 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  modified 
net metering  customers  on  demand-based  rate  schedules  that  provide  an 
equivalent contribution to provider system costs.  Standby charges shall  not 
be applied to customers with systems capable of generating 150 kW or less.
   (2) The credit for excess generation shall appear on the next  bill.   Any 
excess kWh not used to offset current charges shall be  carried  forward  for 
use in subsequent billing periods.
   (3) A customer qualifying for modified net metering  shall  not  have  net 
metering credits applied to distribution charges.
   (4) If a customer leaves the provider's system or  service  is  terminated 
for any reason, an electric provider or alternative electric  supplier  shall 
refund to the customer the remaining credit amount.
   (5) The credit per kWh for kWh delivered into the provider's  distribution 
system shall be 1 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  provider's  distribution 
service territory, or for a  net  metering  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  provider's  distribution 
service territory during the time-of-use pricing period.
   (b) The electric provider or alternative electric supplier's power  supply 
component of the full retail rate during the billing  period  or  time-of-use 
pricing period.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.654 Renewable energy credits.
   Rule 54. (1) An eligible electric generator shall own any renewable energy 
credits granted for electricity generated under the net metering program.
   (2)  An  electric  provider  may  purchase  or  trade   renewable   energy 
certificates from a net metering customer if agreed to by  the  net  metering 
customer.
   (3) The commission may develop a program for aggregating renewable  energy 
certificates from net metering customers.

  History: 2009 MR 10, Eff. May 27, 2009.


R 460.656 Penalties.
   Rule 56. Upon a complaint or  on  the  commission's  own  motion,  if  the 
commission finds after notice and hearing that an electric provider  has  not 
complied with a provision or order issued under part 5 of 2008  PA  295,  the 
commission shall order remedies and penalties as necessary to  make  whole  a 
customer or other person  who  has  suffered  damages  as  a  result  of  the 
violation.

  History: 2009 MR 10, Eff. May 27, 2009.