microgrid pilot project.
(3) A microgrid pilot project may include distributed
energy resources owned by customers, an electric distribution
company or other entities.
(4) A distributed energy resource included in a pilot
project and owned by an electric distribution company shall
be competitively procured.
(5) The commission may establish reasonable cost caps on
microgrid pilot projects.
(6) Nothing under this section shall be interpreted to
require an electric distribution company to own, develop or
deploy energy storage or microgrids.
(c) Commission review.--
(1) Five years after the date the first pilot project is
approved, the commission shall evaluate the results of each
approved pilot project, including the project costs and
benefits and data on the interconnection and integration of
distributed energy resources and wholesale energy markets.
(2) Within 180 days of completion of the evaluation
under paragraph (1), the commission shall issue an order
determining whether the continued development and deployment
of microgrids and energy storage facilities is in the public
interest.
(3) If the commission determines that the development of
microgrids is in the public interest, the commission may
continue to accept and consider petitions seeking approval of
microgrid pilot projects consistent with the commission's
order.
(d) Report to the General Assembly.--If the commission
determines that the development and deployment of microgrids and
energy storage facilities are in the public interest, the
commission shall, within 60 days of entry of the order under
subsection (c)(2), submit a report to the General Assembly
containing recommendations that shall include all of the
following:
(1) The ownership, development and deployment of
microgrids by entities other than an electric distribution
company.
(2) The specific circumstances and criteria under which
energy storage and microgrids should be developed and
deployed.
(3) Legislative or other recommendations the commission
deems appropriate.
(e) Recovery.--An electric distribution company may recover
in the electric distribution company's distribution rates
established under section 1308 (relating to voluntary changes in
rates) reasonable and prudently incurred costs, including a
pretax return on, and a return of, the original cost of an
energy storage facility or microgrid constructed pursuant to an
approved pilot project and the reasonable and prudently incurred
expenses to operate and maintain the facility.
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