A. Ensure the safety and reliability of the electric system; and

B. Appropriately balance the goals of removing barriers to the development of distributed generators, maintaining just and reasonable transmission and distribution utility rates and fairly apportioning stranded costs, as defined in section 3208.

4. Authority; sale of excess capacity to transmission and distribution utility.__The commission may by rule require a transmission and distribution utility to purchase excess electricity from distributed generators if the commission determines that there is otherwise an insufficient market for that excess electricity.__If the commission requires a transmission and distribution utility to purchase excess electricity, the commission shall require the transmission and distribution utility to resell that electricity in the wholesale market.__Rules adopted pursuant to this subsection may limit application to distributed generators of less than a certain capacity and may require the distributed generator to compensate the transmission and distribution utility for its administrative costs.

5. Net energy billing.__The commission shall by rule permit a distributed generator to elect a net energy billing arrangement with a transmission and distribution utility if the distributed generator:

A. Has a capacity not greater than one megawatt;

B. Qualifies as a renewable resource, as defined in section 3210, subsection 2; and

C. Is owned by a local consumer who is a commercial or charitable entity whose primary place of business is located in this State, as determined by the commission by rule.

6. Rules.__The commission shall adopt rules implementing this section.__Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

Sec. 2. Public Utilities Commission distributed generation report. The Public Utilities Commission shall continue to examine and