1. LB 436 Mandated Net Metering Wind Power 2009 Kearney, Nebraska

2. LB 436 • Introduced January 20, 2009 by Senator Ken Haar—Malcom • Passed on May 7, 2009 with a 46-0-3 Vote • Enacted Into Law on August 30, 2009 • Purpose • To establish a uniform system to allow individuals with qualified renewable energy systems 25 kw and smaller to inter connect to a local distribution utility. To use their generation output to offset their utility energy needs and establishes a means to compensate generators for any excess energy they generate

3. LB 436 • Requires that Qualified Facilities that meet the requirements of the Act be interconnected with a Distribution Utility and Net Metered • 25 kw and Smaller • Uses as it energy source • Wind, Solar, Methane, Biomass, Geothermal and hydropower • Generated and used at one location • Sized to meet the customer-generators needs • Meets safety and Interconnections Standards

4. LB 436 Requirement for Safety and Interconnection Standard • Meets all applicable safety, performance, interconnection and reliability standards established by the National Electric Code, National Electrical Safety Code, the Institute of Electrical and Electronics Engineers, and the Underwriters Laboratories Inc. • Is equipped to automatically isolate the generation from the distribution system in the event of a power outage or when the line is de-energized—part of UL Certification • Satisfies an inspection by the State Electrical Division • Utility maintains their interconnection standards

5. LB 436 • Customer Generator pays cost of interconnection • System upgrades as necessary • Aid in construction policies apply • Utility pays for metering system • Flexible language allows for a variety of metering systems as long as it is easily readable by the customer • Customer-Generator retains green tags • System Cap of One Percent Average Aggregate Peak Demand

6. LB 436 How it Works • Exchanges energy generated and energy used until the customers bill is offset—retail for retail exchange or kilowatt for kilowatt exchange— 1:1 ratio • Bills the customer at the retail rate for energy used beyond the offset • Credits the customer the avoided cost value for excess energy delivered by the customer-generator • Credits are a monetary value and are carried over month to month until the end of the annual billing cycle. Then cashed out to the customer-generator

7. LB 436 • The legislation does not prohibit a local distribution Utility from net metering qualified renewable facilities larger than 25 kw • A local distribution utility may pay more that the avoided cost for excess energy generated • A local distribution utility may exceed the system cap • Federal Law—Public Utilities Regulatory Policy Act of 1978 still apples to systems up to 80 MW

8. Kristen Gottschalk Government Relations Director Nebraska Rural Electric Association kgottschalk@nrea.org