Sec. 1. 35-A MRSA c. 31, sub-c. 6-A is enacted to read:

SUBCHAPTER 6-A

DISTRIBUTED GENERATION

§3192.__Distributed generation

1.__Definitions.__As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.

A. "Distributed generator" means an electric generation facility:

(1) Having a capacity of less than 5 megawatts; and

(2) Whose output is primarily consumed by a local consumer.

B. "Excess electricity" means electricity generated by a distributed generator that is not consumed by a local consumer.

C. "Net energy billing" means a billing and metering practice under which a customer is billed in a manner that nets over any time period the kilowatt hours consumed by a customer and the kilowatt hours generated by the customer's generating facility as if the energy flow were measured by a single meter capable of registering the flow of electricity in 2 directions.

D. "Local consumer" means the local consumer of electricity generated by a distributed generator located in proximity to the generator, as determined by the commission by rule.

2.__Regulation; sales to local consumer.__Except as provided in subsection 3, the transmission, distribution and sale of electricity from a distributed generator is subject to applicable provisions of this Title.

3. Regulation; retail sales of excess electricity.__ Notwithstanding any other provision of this Title, the retail sale of the excess electricity of a distributed generator in accordance with rules adopted by the commission pursuant to this subsection is not a sale to the public and does not cause the seller or transmitter of that electricity to be subject to