‘‘(d) PERCENT LIMITATIONS.—
‘‘(1) TWO PERCENT LIMITATION.—A local dis-
tribution company retail electric supplier shall not be
required to provide local distribution service with re-
spect to additional customer-generators after the
date during any calendar year on which the total
generating capacity of all customer-generators with
qualified generation facilities and net metering sys-
tems served by that local distribution company is
equal to or in excess of 2 percent of the capacity
necessary to meet the company’s average forecasted
aggregate customer peak demand for that calendar
year.
‘‘(2) ONE PERCENT LIMITATION.—A local dis-
tribution company retail electric supplier shall not be
required to provide local distribution service with re-
spect to additional customer-generators using a sin-
gle type of qualified energy generation system after
the date during any calendar year on which the total
generating capacity of all customer-generators with
qualified generation facilities of that type and net
metering systems served by that local distribution
company is equal to or in excess of 1 percent of the
capacity necessary to meet the company’s average
forecasted aggregate customer peak demand for that
calendar year.
‘‘(3) RECORDS AND NOTICE.—Each retail elec-
tric supplier shall maintain, and make available to
the public, records of the total generating capacity
of customer-generators of such system that are
using net metering, the type of generating systems
and energy source used by the electric generating
systems used by such customer-generators. Each
such retail electric supplier shall notify the Commis-
sion when the total generating capacity of such cus-
tomer-generators is equal to or in excess of 2 per-
cent of the capacity necessary to meet the supplier’s
aggregate customer peak demand during the pre-
vious calendar year and when the total generating
capacity of such customer-generators using a single
type of qualified generation is equal to or in excess
of 1 percent of such capacity.
‘‘(e) SAFETY AND PERFORMANCE STANDARDS.—(1)
A qualified generation unit and net metering system used
by a customer-generator shall meet all applicable safety
and performance and reliability standards established by
the national electrical code, the Institute of Electrical and
Electronics Engineers, Underwriters Laboratories, or the
American National Standards Institute.
‘‘(2) The Commission, after consultation with State
regulatory authorities and nonregulated local distribution
systems and after notice and opportunity for comment,
may adopt by regulation additional control and testing re-
quirements for customer-generators that the Commission
determines are necessary to protect public safety and sys-
tem reliability.
‘‘(3) The Commission shall, after consultation with
State regulatory authorities and nonregulated local dis-
tribution systems and after notice and opportunity for
comment, prohibit by regulation the imposition of addi-
tional charges by electric suppliers and local distribution
systems for equipment or services for safety or perform-
ance that are additional to those necessary to meet the
standards referred to in subparagraphs (A) and (B).
‘‘(f) STATE AUTHORITY.—Nothing in this section
shall preclude a State from establishing or imposing addi-
tional incentives or requirements to encourage qualified
generation and net metering additional to that required
under this section.’’.
‘‘(g) INTERCONNECTION STANDARDS.—(1) Within
one year after the enactment of this section the Commis-
sion shall publish model standards for the physical connec-
tion between local distribution systems and qualified gen-
eration units and electric generation units that would be
qualified generation units but for the fact that the unit
has a generating capacity of more than 100 kilowatts (but
not more than 250 kilowatts). Such model standards shall
be designed to encourage the use of qualified generation
units and to insure the safety and reliability of such units
and the local distribution systems interconnected with
such units. Within 2 years after the enactment of this sec-
tion, each State shall adopt such model standards, with
or without modification, and submit such standards to the
Commission for approval. The Commission shall approve
a modification of the model standards only if the Commis-
sion determines that such modification is consistent with
the purpose of such standards and is required by reason
of local conditions. If standards have not been approved
under this paragraph by the Commission for any State
within 2 years after the enactment of this section, the
Commission shall, by rule or order, enforce the Commis-
sion’s model standards in such State until such time as
State standards are approved by the Commission.
‘‘(2) The standards under this section shall establish
such measures for the safety and reliability of the affected
equipment and local distribution systems as may be appro-
priate. Such standards shall be consistent with all applica-
ble safety and performance standards established by the
national electrical code, the Institute of Electrical and
Electronics Engineers, Underwriters Laboratories, or the
American National Standards Institute and with such ad-
ditional safety and reliability standards as the Commission
shall, by rule, prescribe. Such standards shall ensure that
generation units will automatically isolate themselves from
the electrical system in the event of an electrical power
outage. Such standards shall permit the owner or operator
of the local distribution system to interrupt or reduce de-
liveries of available energy from the generation unit to the
system when necessary in order to construct, install, main-
tain, repair, replace, remove, investigate, or inspect any
of its equipment or part of its system; or if it determines
that curtailment, interruption, or reduction is necessary
because of emergencies, forced outages, force majeure, or
compliance with prudent electrical practices.
‘‘(3) The model standards under this subsection pro-
hibit the imposition of additional charges by local distribu-
tion systems for equipment or services for interconnection
that are additional to those necessary to meet such stand-
ards.
‘‘(h) INTERCONNECTION.—At the election of the
owner or operator of the generation unit concerned, con-
nections meeting the standards applicable under sub-
section (g) may be made—
‘‘(1) by such owner or operator at such owner’s
or operator’s expense, or
‘‘(2) by the owner or operator of the local dis-
tribution system upon the request of the owner or
operator of the generating unit and pursuant to an
offer by the owner or operator of the generating unit
to reimburse the local distribution system in an
amount equal to the minimum cost of such connec-
tion, consistent with the procurement procedures of
the State in which the unit is located, except that
the work on all such connections shall be performed
by qualified electrical personnel certified by a
resposible body or licensed by a State or local gov-
ernment authority.
‘‘(i) CONSUMER FRIENDLY CONTRACTS.—The Com-
mission shall promulgate regulations insuring that sim-
plified contracts will be used for the interconnection of
electric energy by electric energy transmission or distribu-
tion systems and generating facilities that have a power
production capacity not greater than 250 kilowatts.’’
Æ