1.  Procurement amounts.  By July 1, 2024, the commission shall procure 125 megawatts of the output of distributed generation resources associated with commercial or institutional customer accounts by conducting an initial competitive solicitation for the first block of 25 megawatts pursuant to section 3484 to establish market‑based, declining block contract rates to procure the remaining 100 megawatts.  

2.  Determination of bill credit.  The bill credit allocated to a commercial or institutional customer must be based on the total kilowatt‑hours of energy production of the distributed generation resource for the previous month. For each billing month, the value of the credit must be calculated by multiplying the number of kilowatt‑hours by the contract rate. A payment to a commercial or institutional customer must be credited against the customer's monthly electricity bill in accordance with section 3487. The monthly energy production must be determined by a revenue‑grade meter installed and paid for by the participating commercial or institutional customer.  

3.  Exemption.  A commercial or institutional customer is not considered a public utility or competitive electricity provider solely as a result of entering into a contract with a standard buyer under this section.