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.  
Page 1  
(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 AACS.  
R 460.601b Definitions; J-Z.  
Rule 1b. As used in these rules  
(a) "kW" means kilowatt.  
(b) "kWh" means kilowatt-hours.  
Page 2  
(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.  
Page 3  
(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 AACS.  
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  
of these rules.  
(b) The following standards are available from IEEE by telephone at 1-800-  
(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 AACS.  
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 AACS.  
Page 4  
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 AACS.  
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 AACS.  
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.  
Page 5  
(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 AACS.  
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 AACS.  
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:  
Page 6  
(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 AACS.  
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:  
Applicati  
on review  
Engineer  
ing review  
Distributi  
on study  
Distributi  
Testing  
& inspection  
on  
upgrades  
$0  
Categor  
Categor  
$75  
$0  
$0  
$0  
$0  
y 1  
$100  
Actual or  
Actual or  
Actual or  
Page 7  
y 2  
y 3  
maximum  
maximum  
maximum  
approved by approved by approved by  
commission commission commission  
Actual or  
maximum  
Categor  
$150  
$0  
Actual or  
maximum  
Actual or  
maximum  
approved by approved by approved by  
commission commission commission  
Categor  
Categor  
$250  
$500  
Actual or  
maximum  
Actual or  
maximum  
Actual or  
maximum  
Actual or  
maximum  
y 4  
y 5  
approved by approved by approved by approved by  
commission commission commission commission  
Actual or  
maximum  
Actual or  
maximum  
Actual or  
maximum  
Actual or  
maximum  
approved by approved by approved by approved by  
commission commission commission 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:  
Applicati  
on review  
Engineeri  
ng review  
Distributi  
on study  
Distributi  
Testing  
on  
&
inspection  
upgrades  
$0  
Categor  
Categor  
$75  
$75  
$0  
$0  
$0  
$0  
$0  
y 1  
y 2  
Actual or  
Actual or  
maximum  
maximum  
approved by approved by  
commission commission  
Categor  
$75  
$0  
Actual or  
maximum  
Actual or  
maximum  
$0  
y 3  
approved by approved by  
commission commission  
History: 2009 AACS.  
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  
Page 8  
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.  
Page 9  
(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 AACS.  
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  
Page 10  
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 AACS.  
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 AACS.  
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 AACS.  
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 AACS.  
PART 3. NET METERING STANDARDS  
Page 11  
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 AACS.  
R 460.642 Net metering application and fees.  
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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  
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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 AACS.  
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 AACS.  
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 AACS.  
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  
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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 AACS.  
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  
Page 15  
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 AACS.  
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 AACS.  
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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 AACS.  
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 AACS.  
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