PR-10-15 -- PSC Reverses Course On Insurance Mandate For Customer-Owned Generation

Focus On Liability Insurance Requirement

Contact: Kevin Kelly (573) 751-9300

FOR IMMEDIATE RELEASE -- JULY 16, 2009

JEFFERSON CITY---The Missouri Public Service Commission is amending its net metering rules eliminating a requirement that customers generating 10 kilowatts or less of electricity carry liability insurance. The amendment is designed to make it easier for customer-generators to interconnect with the electric grid and offset their energy purchases with their own generation.

"The Commission has removed another barrier to customers having the opportunity togenerate their own electricity," said PSC Chairman Robert M. Clayton III. "Small-scale customer-owned generation will play a role in our states’ future regarding renewable energy."

Net metering rules establish guidelines for customers of investor-owned electric utilities (AmerenUE, The Empire District Electric Company, KCP&L Greater Missouri Operations Company and Kansas City Power & Light Company) who have the ability to generate their own renewable energy through use of small size solar power, wind power and other types of generation.

Under rules first adopted last October, customers who generated 10 kilowatts or less of electricity were required to carry at least $100,000 of liability insurance. Customers generating more than 10 kilowatts were to carry more than $1 million of liability insurance.

The Commission reversed its prior decision by completely removing any insurance requirement for systems of less than 10 kilowatts. Insurance requirements for customers generating more than 10 kilowatts were reduced from $1 million in coverage to at least $100,000 of liability insurance coverage. The new rule does inform potential customer-generators that they may be liable for damages if they are negligent.

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, solarthermal, 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.

Other providers of electric generation including rural electric cooperatives and municipal utilities are not regulated by the PSC and are not subject to these rules. The amended rule is scheduled to take effect in late October.

-30-

Case No. EX-2009-0267