1. Crosswire: Distributed Energy Resources, Missouri’s Renewable Energy Policy and Local Land Use Ordinances Robert S. Kenney, Chairman Missouri Public Service Commission P.O. Box 360 Jefferson City, MO 65102 (573) 751-4132 robert.kenney@psc.mo.gov www.psc.mo.gov The Missouri Bar Annual Meeting September 19, 2013

2. Overview  Net Metering and Easy Connection Act  Renewable Energy Standard  Recent Cases  Babb v. Mo. Pub. Serv. Comm'n and City of Clarkson Valley, Mo.  Boyles v. Mo. Pub. Serv. Comm'n and City of St. Joseph, Mo.  Hague v. Mo. Pub. Serv. Comm'n and Trustees of Highlands of Chesterfield.

3. Net Metering and Easy Connection Act  What is net metering?  Who does the statute affect?

4. Net Metering and Easy Connection Act  "'Net metering' [is the use of] metering equipment sufficient to measure the difference between the electrical energy supplied to a customer-generator by a retail electric supplier and the electrical energy supplied by the customer-generator to the retail electric supplier over the applicable billing period[.]" Mo. Rev. Stat. § 386.890.2 (5) (emphasis added).

5. Net Metering and Easy Connection Act  "'Retail electric supplier'... [is] any municipal utility, electrical corporation... or rural electric cooperative... that provides retail electric service...." Mo. Rev. Stat. § 386.890.2 (7).

6. Net Metering and Easy Connection Act  "'Customer-generator' [is] the owner or operator of a qualified electric energy generation unit which:  (a) Is powered by a renewable energy resource;  (b) Has an electrical generating system with a capacity of not more than one hundred kilowatts;  (c) Is located on a premises owned, operated, leased, or otherwise controlled by the customer- generator;  (d) Is interconnected and operates in parallel phase and synchronization with a retail electrical supplier and has been approved by said retail electric supplier;  (e) Is intended primarily to offset part or all of the customer-generator’s own electrical energy requirements;  (f) Meets all applicable safety, performance, interconnection, and reliability standards... ;  (g) Contains a mechanism that automatically disables the unit and interrupts the flow of electricity back onto the supplier's electricity lines in the event that service to the customer- generator is interrupted[.]" Mo. Rev. Stat. § 386.890.2 (3) (a) – (g) (emphasis added).

7. Net Metering and Easy Connection Act  "'Renewable energy resources'... [are] electrical energy produced from wind, solar, thermal sources, hydroelectric sources, photovoltaic cells and panels, fuel cells using hydrogen produced by one of the above-named electrical energy sources..." Mo. Rev. Stat. § 386.890.2(6)

8. Missouri's Renewable Energy Standard  What is it?  What resources qualify?  How are solar resources treated?

9. Missouri's Renewable Energy Standard  In 2008, the citizens of the State of Missouri adopted by initiative petition, commonly referred to as Proposition C, an amendment that established Missouri’s Renewable Energy Standard.  Renewable Energy requirements to be generated or purchased:  2011 to 2013 = No less than 2%  2014 to 2017 = No less than 5%  2018 to 2020 = No less than 10%  2021 and beyond = No less than 15% Mo. Rev. Stat. § 393.1030.1 (1) – (4).

10.  What is a renewable energy resource?  Wind;  Solar thermal;  Photovoltaic cells/panels;  Dedicated Crops;  Cellulosic agricultural residues;  Plant residues;  Methane from landfills, from agricultural operations, or from wastewater treatment;  Thermal depolymerization or pyrolysis for converting waste material to energy;  Clean and untreated wood;  Hydropower (not including pumped storage) 10 MW or less;  Hydrogen fuel cells;  Other resources not including nuclear that become available at a later date and that are approved by the Department of Natural Resources. Mo. Rev. Stat. § 393.1025 (5). Missouri’s Renewable Energy Standard

11.  Two percent of the RES requirements must come from solar energy.  Each electric utility must make available to its customers a rebate of at least two dollars for each installed watt for solar electric systems sited on the customer's premises.  $2.00 per watt through June 30, 2014  $1.50 per watt July 1, 2014 through June 30, 2015  $1.00 per watt July 1, 2015 through June 30, 2016  $0.50 per watt July 1, 2016 through June 30, 2019  $0.25 per watt July 1, 2019 through June 30, 2020  $0.00 per watt beyond June 30, 2020 Mo. Rev. Stat. § 393.1030.1 and 393.1030.3 (as amended by HB 142, effective August 28, 2013).

12. Recent Cases  Babb v. Mo. Pub. Serv. Comm'n and City of Clarkson Valley, Mo.  Boyles v. Mo. Pub. Serv. Comm'n and City of St. Joseph, Mo.  Hague v. Mo. Pub. Serv. Comm'n and Trustees of Highlands of Chesterfield.

13. Questions? Robert S. Kenney, Chairman Missouri Public Service Commission P.O. Box 360 Jefferson City, MO 65102 (573) 751-4132 robert.kenney@psc.mo.gov www.psc.mo.gov