1. (a) As used in this chapter, "distributed generation" means electricity produced by a generator or other device that is:

   1. (1) located on the customer's premises;
   2. (2) owned by the customer;

   3. (3) sized at a nameplate capacity of the lesser of:

      1. (A) not more than one (1) megawatt; or
      2. (B) the customer's average annual consumption of electricity on the premises; and
   4. (4) interconnected and operated in parallel with the electricity supplier's facilities in accordance with the commission's approved interconnection standards.

2. (b) The term does not include electricity produced by the following:

   1. (1) An electric generator used exclusively for emergency purposes.
   2. (2) A net metering facility (as defined in 170 IAC 4-4.2-1(k)) operating under a net metering tariff.

As added by P.L.264-2017, SEC.6.