PR-09-148 -- PSC Moves Forward With New Net Metering Rules; Focus Is On Liability Insurance Requirement

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- FEBRUARY 25, 2009

JEFFERSON CITY---The Missouri Public Service Commission has sent to the Missouri Secretary of State for publication, proposed new net metering rules.  The commission’s proposed rules would eliminate a requirement that customers generating 10 kilowatts or less of electricity carry liability insurance.

Rules adopted last October by the PSC established guidelines for customers of investor-owned electric utilities who have the ability to generate their own renewable energy. 

Under the rules, customers who generated 10 kilowatts or less of electricity were required to carry no less than $100,000 of liability insurance that provided for coverage of all risk of liability for personal injuries and damage to property arising out of or caused by the operation of the net metering unit.  Customers generating more than 10 kilowatts were to carry no less than $1 million of liability insurance.

 “We need to eliminate the liability insurance barrier for those who want to generate their own electricity,” said PSC Chairman Robert M. Clayton III.  “It’s important that we encourage more development of renewable energy such as solar power generation,” Clayton said. 

New proposed language removes the requirement of liability insurance for customers who generate 10 kilowatts or less of electricity.  Customers generating more than 10 kilowatts would be required to carry no less than $100,000 of liability insurance.

The proposed rules will now be published in the Missouri Register.  The commission is expected to hold hearings before reaching a decision on a final rule. 

Net metering customers (i.e. residential and small business customers) use their own systems to generate a portion or all of their electricity using renewable energy resources such as wind, solar-thermal, hydroelectric and photovoltaic cells and panels.  Missouri investor-owned electric utilities are required to permit qualified interconnection to customers with systems up to 100 kilowatts in capacity. 

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Case No. EX-2009-0267