Sec. 4. Energy and rate treatments for distributed energy resources
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Section 111(d) of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 2621(d) ) is amended by adding at the end the following: If a State regulatory authority considers, through a rate proceeding or another mechanism (such as consideration of fixed or minimum charges), modifying the treatment of net energy metering customers, the State regulatory authority shall consider requiring that distributed energy resources (as defined in section 3 of the Federal Power Act ( 16 U.S.C. 796 )) be eligible to receive just and reasonable energy and rate treatment using dynamic pricing, which may account for locational benefit, to be provided on an unbundled basis, after accounting for the 2-way valuation of dynamic rates, for services provided to or provided by the grid, including the considerations with respect to the use of dynamic pricing described in subparagraph (B).
The considerations for the use of dynamic pricing referred to in subparagraph
(A)include— pricing for energy sold to an electric utility; and pricing for energy purchased from an electric utility; capacity; the provision of ancillary services; the societal value of distributed energy resources; transmission and distribution losses; and any other benefits that the State regulatory authority considers to be appropriate. .
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