See the following article in JD Supra:
https://www.jdsupra.com/legalnews/net-metering-energy-arkansas-public-84676
On May 26th, 2020, FERC received a letter on the NERA net metering petition which was signed by Senators Margaret Wood Hassan, Martin Heinrich, Sheldon Whitehouse, Michael F. Bennet, Richard Blumenthal, Cory A. Booker, Benjamin L. Cardin Thomas R. Carper, Christopher A. Coons, Angus S. King, Jr., Patrick Leahy, Edward J. Markey, Jeffrey A. Merkley, Jack Reed, and Bernard Sanders.
The letter, which can be found here
https://elibrary.ferc.gov/idmws/common/opennat.asp?fileID=15543732 weighs arguing for the preservation of state authority, explaining:
As the Supreme Court has noted, Congress wrote the Federal Power Act “to be a complement to and in no sense a usurpation of State regulatory authority.” If FERC granted NERA’s petition, it would overturn long-held precedent and give the federal government decision-making power that has long belonged to the states, including the authority to set rates, terms, and conditions for programs. These decisions are best left to state regulators. " [Citations Omitted]
It also points to the lack of transparency by the petitioner NERA, observing that it is :
"also unclear based on public information whether this group actually represents any New England interests – consumer or corporate – and if it does, it is unclear why a group that advocates for ratepayers in New England is asking FERC for a sweeping order preempting net metering nationwide. "
On June 3rd, 2020, Advanced Energy Economy is held a free webinar on the Net Metering related petition that is now pending at FERC, and which we have been tracking here at netmetering.com since last month.
Here's how the webinar was billed:
"States have long had the right to design retail billing and rate policies to facilitate the adoption of distributed energy resources, but right now that’s under threat of federal preemption. Net energy metering and similar practices have long been an important tool for states, as well as municipal and cooperative utilities, to empower consumers to take control over their energy supply. A recent petition from a little-known group called the New England Ratepayers Association asks the Federal Energy Regulatory Commission (FERC) to upend the status quo and expand federal regulatory authority over these policies and the customers that participate in them – with ramifications well beyond just net energy metering for rooftop solar. This webinar will explain how FERC ruling the wrong way could impact existing and emerging state and municipal and cooperative utility approaches to supporting distributed energy resources in retail markets. "
Here is the link to a Utility Dive article that provides a summary of some of the discussion:
Despite the good summary, the title of the article is a bit of an overstatement. Specifically, the American Public Power Association which represents municipally owned utilities, the National Rural Electric Cooperative Association, which represents cooperatively owned electric utilities, Pacific Gas & Electric Company, PPL Electric Utilities Corporation, San Diego Gas & Electric Company, Old Dominion Electric Cooperative, Portland General Electric Company, Ameren Services Company, Calpine Corporation, Los Angeles Department of Water and Power, Louisville Gas and Electric Co./ Kentucky Utilities Co., New England Power Generators Association, Inc., Dominion Energy Services, Inc. New Hampshire Electric Cooperative, Inc. have all intervened in the proceeding.
The filing was brought to our attention by solar advocate Achim Ginsberg-Klemmt, who is making the appeal ("appellant" in legal speak). The "pro se" nature of the appeal refers to the fact that he is representing himself.
Explicitly at issue are FPL's: a) limiting interconnected systems to 115% of the customer's annual utility consumption, b) insurance requirements for systems over 10 kW in size, and c) inadequate compensation for excess generation injected into the distribution system.
Implicitly at issue are issues of administrative procedure, delegation of essential governmental functions to private parties, and whether the handling of net metering applications has been "arbitrary and capricious".
Mr. Ginsburg-Klemmt and other petitioners originally submitted a filing entitled " Joint Petition for Approval of Regulatory Improvements for Decentralized Solar Net-Metering Systems in Florida" with the Florida Public Service Commission
Here's a story on the case presented by PV Magazine on May 21, 2020:
On May 14, 2020, the NERA filing, Docket # EL20-42-000, drew its first Motion to Dismiss. The combined Motion to Dismiss and Intervention was filed by Allco Renewable Energy, Limited of New York. Likening the exchange of electricity between generators and electric utilities to an exchange of hamburgers, Allco characterizes net metering arrangements a "a like kind exchange" and opposes NERA's position that net metering can produce wholesale sales over which FERC must assert exclusive jurisdiction.
While, Allco does not explicitly challenge NERA's lack of standing, it certainly hints at the standing issue - "[w]ithout any actual facts tied to real arrangements, it is, at bottom, nothing more than a request for a declaration that the Commission has jurisdiction over wholesale sales ."
Will Allco's efforts precipitate the filing of additional Motions to Dismiss? Stay tuned.
On May 4, 2020, FERC allowed a 30 day extension of time to June 15, 2020 for responding to NERA's filing, Docket # EL20-42-000. In response to the request by the National Association of Regulatory Utility Commissioners for an extension through August 12, 2020. According to FERC's Notice, the Connecticut Public Utilities Regulatory Authority, the New Jersey Board of Public Utilities, the Connecticut Department of Energy and Environmental Protection, the Connecticut Office of Consumer Counsel and the New Jersey Division of Rate Counsel, Public Interest Organizations, New England Small Hydro Coalition, Advanced Energy Economy, and the New England States Committee on Electricity filed answers supporting the Motion. NERA apparently opposed the requested 90 day extension as "excessive".
Additional motions for a 90 day extension were filed by (1) the National Rural Electric Cooperative Association jointly with American Public Power Association; (2) the Massachusetts Attorney General, the state attorneys general of Connecticut, the District of Columbia, Iowa, Maryland, Michigan, Minnesota, New Jersey, North Carolina, Rhode Island, the Maine Office of Public Advocate, and the Public Utility Commission of Oregon; and (3) the Organization of MISO States.
NERA's FERC filing, Docket # EL20-42-000, has quickly garnered over 70 Motions to Intervene. As of this juncture, the following increasingly diverse and growing list of parties have filed Motions to Intervene with FERC:
Electric Power Supply Association, PUBLIC CITIZEN, INC , Sustainable FERC Project and Natural Resources Defense Council, Independent Market Monitor for PJM, Helix Maine Wind Development, LLC, et. al. , Massachusetts Attorney General Maura Healey,
Borrego Solar Systems, Inc., CAlifornians for Renewable Energy, Inc. , Massachusetts Department of Public Utilities , Exelon Corporation, Maryland Public Service Commission, Pacific Gas & Electric Company , Connecticut Public Utilities Regulatory Authority, NEPOOL Participants Committee , Rhode Island Division of Public Utilities and Carriers, National Rural Electric Cooperative Association , Maine Public Utilities Commission, NRG Power Marketing LLC , Connecticut Department of Energy and Environmental Protection , PJM Interconnection, L.L.C. , the Public Utilities Commission of The State of California, Xcel Energy Services Inc., Old Dominion Electric Cooperative, Consolidated Edison Development, Inc., Connecticut Consumer Council, San Diego Gas and Electric Company, PPL Electric Utilities Corporation, Lee and Evan Oxenham, Safari Energy, LLC, the American Public Power Association, New England States Committee on Electricity, Center for Biological Diversity, North Carolina Sustainable Energy Association , California Municipal Utilities Association, Maryland Energy Administration, National Association of Regulatory Utility Commissioners, Public Utility Commission of Oregon, Minnesota Attorney General's Office, Attorney General of Maryland, North Carolina Attorney General's Office , Entergy Services, LLC , Vote Solar, Conservation Law Foundation, Organization of PJM States, Inc., Sierra Club, IDAHO CONSERVATION LEAGUE, Ameren Services Company, New Jersey Board of Public Utilities, Harvard Electricity Law Initiative, Kansas Corporation Commission, Arkansas Public Service Commission, Cooperative Energy, RENEW WISCONSIN, Los Angeles Department of Water and Power, New England Small Hydro Coalition, Illinois Commerce Commission, Environmental Law and Policy Center, Solar United Neighbors, New Jersey Division of Rate Counsel, Dorothy Barnett, Sunrun Inc., Electricity Consumers Resource Council, The People of the State of Illinois, Louisville Gas and Electric Co./ Kentucky Utilities Co., New England Power Generators Association, Inc., Public Service Commission of West Virginia, the Pennsylvania Office of Consumer Advocate, Gravity Renewables, Inc., Louisiana Public Service Commission, CITIZENS ENERGY CORPORATION, FirstLight Power Inc. , NC WARN, State of Washington, Clearway Energy Group LLC, New York State Energy Research and Development Authority, Dominion Energy Services, Inc., Peninsula Clean Energy Authority, Sacramento Municipal Utility District , TerraForm Power, Inc., Maryland Office of People's Counsel, Allco Renewable Energy Limited, American Municipal Power, Inc., SunPower Corporation, Achim Ginsberg-Klemmt and the New Hampshire Electric Cooperative, Inc., Consumers Energy Company, Iowa Environmental Council, MISO Transmission Owners, Edison Electric Institute and the Illinois Municipal Electric Agency .
In addition, comments in opposition have been filed by Senators Margaret Wood Hassan, Martin Heinrich, Sheldon Whitehouse, Michael F. Bennet, Richard Blumenthal, Cory A. Booker, Benjamin L. Cardin Thomas R. Carper, Christopher A. Coons, Angus S. King, Jr., Patrick Leahy, Edward J. Markey, Jeffrey A. Merkley, Jack Reed, and Bernard Sanders, the New Mexico Public Regulation Commission, Patricia Martin, Sarah Thorne, Anne E Huberman, Joel Huberman, Cindy Callaway, Diane Martin, Catherine Koning, David Kroop, Christopher and Lynne Gilbert,, Katherine Bowditch, Tracie Burns, Larry Etkin, John Gage, Bernard Jones, Danny van Leeuwen, Alice Trexler, Julie Taberman, Joan Panek, Robert Bussewitz, Brent Whelan, a member of the New Hampshire House of Representatives - Science, Technology & Energy Committee, Margery Hamlen, Robert Triest , Cynthia Bainton,, Terry Clark, Curt Newton, Arthur Fovargue, Artem Treyger, Kathy McGhee, Sue Hatch, Jocelyn Tager, Michael Loos, Ashwani Vasishth, Ruth Amundsen, Rep Nathan Ballentine, Ed Haser, Jacqueline Callas, Eric Crane Conservatives for Responsible Stewardship (CRS), Katharine DuVivier and Mark Follansbee.
Comments in support have been filed by Jonathan Applebaum.
Perhaps the most curious filing has been that of CAlifornians for Renewable Energy, Inc. (CARE) and Michael Boyd, which, while styled as "support" for the NERA petition, requests a very different outcome from the one sought by NERA. Query as to whether this gets much traction with FERC in light of the unusual way that it is framed.
The FAQ for participation in a FERC proceeding can be found here: https://www.ferc.gov/resources/faqs/active-int.asp
In the "PETITION FOR DECLARATORY ORDER OF NEW ENGLAND RATEPAYERS ASSOCIATION CONCERNING UNLAWFUL PRICING OF CERTAIN WHOLESALE SALES" the Federal Energy Regulatory Commission, is being asked insert itself into the relationship between small prosumers , who take advantage of net metering policies and the incumbent interconnected electric utilities. The 104 page document - also styled as filed with FERC on April 14, 2020, on behalf of the New England Ratepayers Association http://www.neratepayers.org/about/ .
FERC has set May 14, 2020 as the deadline for filing comments or motions to intervene.
Based upon review of the NERA filing further updates to this post will be forthcoming. Nonetheless, the content of the filing seems to be a full scale frontal assault on net metering programs nationwide. This is fundamentally different in character from attacks on net metering state by state - both in being national in character, and in the argument that only FERC, and not the States, has jurisdiction.
The timing of the filing appears to be particularly pernicious. At a moment when both solar and energy efficiency companies are experiencing massive layoffs as a result of the Covid-19 pandemic, NERA seeks to effectively "curb stomp" them when down.
For more, see the Utility Dive take:
And the Greentech Media take:
Utah's upcoming ratemaking garners interests as to the future of reimbursement for interconnected solar generators. At issue is how to compensate "prosumers" for excess generation at a time when solar has exhibited sustained growth within Utah.
For more, see the Utility Dive take:
The US Department of Energy has issued a request for information in connection with its "Connected Communities" initiative. The focus is upon creating groups of buildings which together interact with the electric grid - sometimes as net consumer, and sometimes as a net producer.
This is an important example in the continuing evolution of a "prosumer" role within our electric infrastructure. This initiative can also be viewed as an extension of virtual netmetering - by coordinating consumption between them, the member buildings of the community balance out the demand for electricity, so that the electric requirements to the interconnected grid is only a "net" requirement.
This RFI suggests that a Funding Opportunity Announcement (FOA) will follow.
See the announcement here :
The deadline for responses is May 12, 2020.
The much awaited decision was released on April 3rd, 2020, and reported on April 13, 2020, in Utility Dive:
Evergy's predecessor Westar attempted to impose "Demand" charges upon interconnected solar customers creating the context for the decision. The argument in favor of the surcharge was that interconnected residential customers with solar do not pay their fair share of maintaining the local grid, or distribution infrastructure. This is sometimes referred to a s a "free rider" problem.
We'll delve into the Court's reasoning, but here is an initial take:
The demand charges were poorly designed to accomplish the utility's stated objectives. Why? Let's consider what a demand charge is - it its penalty for consuming electricity during peak periods when it is more expensive for utilities to serve their customers. But you might ask - doesn't solar often reduce peak electric demand? Why, yes it does. Which is why penalizing interconnected customers for having a beneficial impact on the utility's cost structure during periods of peak demand makes no sense.
While the Court does not address this issue, we can wonder whether Westar undermined its own arguments from the outset by targeting residential customers and ignoring business customers with net metered. If Westar's argument that the demand charges were warranted by the free rider problem actually had merit then why would it have looked only to residential customers? Most business customers already pay for electricity under rate structures that have a demand component. So including business customers as well would have been the normal thing to do.
But what about maintaining the local grid for distribution of electricity? Well that's not something utilities typically look to demand charges to cover. Typically flat customer charges are the vehicle for the utilities to recapture their grid maintenance costs, plus a profit. And while the flat fees may not be enough, there is no indication that the charges Westar sought to impose corresponded with any shortfall in revenue.
WELCOME to netmetering.com This site is an evolving resource on utility interconnected, or “grid-tied” solar electric or photovoltaic (PV), renewable electric systems, distributed energy assets and related topics. This encompasses net metering policies, technology, and interconnected renewable energy systems and events. Over time we will
WELCOME to netmetering.com This site is an evolving resource on utility interconnected, or “grid-tied” solar electric or photovoltaic (PV), renewable electric systems, distributed energy assets and related topics. This encompasses net metering policies, technology, and interconnected renewable energy systems and events. Over time we will be adding both material and functionality.
At present the site does have a selection bias towards the United States market. That's not to suggest that the practice of net metering or net metering policies don't have relevance elsewhere. It is simply a matter of how this has all started out.
“Netmetering” or “net metering” is a term that is used in several different contexts in discussions related to renewable generated electricity.
In each of these the term "net metering" implies a system that is "grid-tied "or "interconnected" with an electric utility. This is in contrast with a "standalone", or "off-grid" system where the
“Netmetering” or “net metering” is a term that is used in several different contexts in discussions related to renewable generated electricity.
In each of these the term "net metering" implies a system that is "grid-tied "or "interconnected" with an electric utility. This is in contrast with a "standalone", or "off-grid" system where there is no connection to the electric grid. It also differs from those "behind the meter" system swhere the amount of electricity generated by the host site is not enough for the system to back feed, or export electricity to the grid.
In the context of energy policy “net metering” is used in a general sense to identify both the ability of utility customers to interconnect their renewable electric systems, and receive credit for electricity that is exported to the utility grid. As of April 2019, 45 states had net metering policies in place that require utilities to offer net metering to customers.
In the Energy Policy Act of 2005 (EPACT05; P.L. 109-58) Congress encouraged states to adopt net metering, defined in the law as "service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period."
By using the electric grid as a storage appliance, grid-tied systems are more financially viable in because unused production can be banked to be offset against future consumption. After all, there is a time component to electricity, that doesn't exist with other fuels such as natural gas. A kilowatt hour of excess production simply does not sit around until it is used later.
There are times when "net metering" is (mis)used to refer to only a situation in which the host-customer gets a 1:1 credit on his/her electric bill for electric production that exceeds consumption.
For many years the commonplace view of electric utilities is that net-metered systems can present integration challenges, and would likely produce instability. For the most part, this has not been born out in practice.
Frequently the term "Virtual Net Metering" is used in connection with "net metering". Think of this a a sub-type, rather than something wholly different.
This refers to grouping separate locations or accounts for net metering purposes. For example, if a business had 3 seperate electric accounts and had a renewable energy system conne
Frequently the term "Virtual Net Metering" is used in connection with "net metering". Think of this a a sub-type, rather than something wholly different.
This refers to grouping separate locations or accounts for net metering purposes. For example, if a business had 3 seperate electric accounts and had a renewable energy system connected to only one of them a virtual net metering policy would generally permit the customer to use excess generation from one account to offset electric charges incurred through the other two accounts.
Part of the significance of net metering is the window that it provides into the world of our distributed energy future. Net metering exemplifies a new player in the electric distribution grid - the "prosumer". Some also refer to prosumers by the term customer-generator.
The electric infrastructure that we have inherited was organized wit
Part of the significance of net metering is the window that it provides into the world of our distributed energy future. Net metering exemplifies a new player in the electric distribution grid - the "prosumer". Some also refer to prosumers by the term customer-generator.
The electric infrastructure that we have inherited was organized with a view towards a hub and spoke system, where electricity was generated in a central location and then conducted to the point of consumption - often at significant loss along the way. But in the age of the internet the notion of critical infrastructure depending upon one way connections seems less and less like a sensible way of organizing things.
Enter the "prosumer" - or in internet speak- a node. As a node on the grid, the prosumer role encompasses both consumption and production.
Arguably this, more than retail rate based compensation is what has brought net metering to become an increasingly prominent part of our discussions on energy.
The US DOE's Connected Communities Initiative - See "New Developments" below, represents yet another branch in the development of prosumers within our electrical infrastructure.
Frequently “net metering” is used in in the context of photovoltaic or solar electric systems alone. And there's a reason for this. According to the Congressional Research Service , as of 2018 solar photovoltaic (PV) systems accounted for ninety seven (97%) per cent of the net metered systems in the U.S. But it is technically feasible to
Frequently “net metering” is used in in the context of photovoltaic or solar electric systems alone. And there's a reason for this. According to the Congressional Research Service , as of 2018 solar photovoltaic (PV) systems accounted for ninety seven (97%) per cent of the net metered systems in the U.S. But it is technically feasible to interconnect net meter other types of systems. Notably these include small wind systems and micro-hydro systems. Less common types of systems for interconnection include combined heat and power (CHP) among others.
The National Renewable Energy Lab (NREL) offers a free online calculator for estimating solar electric system production together with the value of that production. The calculator can be accessed here: https://pvwatts.nrel.gov/ This is a useful tool for those that are just developing an interest in solar energy, as well as professionals that are looking to generate a quick estimate for a possible net metered system.
It is important to recognize that, as with any tool, PV Watts has its limitations. Among these, it does not provide a reasonable financial forecast where (a) there is a time of use factor to the billing of electricity, (b) the host site is a commercial or industrial facility that pays additional electric charges based upon peak consumption.
Chugach Electric
https://www.chugachelectric.com/energy-solutions/net-metering
Golden Valley Electric Association
https://www.gvea.com/resources/snap
Matanuska Electric Association
https://www.mea.coop/member-services/net-metering/
Arizona Public Service Co
Tucson Electric Power
https://www.tep.com/get-started-with-solar/
Unisource
https://www.uesaz.com/new-rates-for-new-solar-customers/
Arkansas Valley Electric Cooperative https://www.avecc.com/myhome/net-metering/
First Electric Cooperative
https://www.firstelectric.coop/net-metering-service
Liberty Utilities
https://california.libertyutilities.com/uploads/NET%20Metering%20Standards.pdf
Pacific Power
PG&E
San Diego Gas & Electric
https://www.sdge.com/residential/savings-center/solar-power-renewable-energy/net-energy-metering
Southern California Edison
https://www.sce.com/business/generating-your-own-power/net-energy-metering
Black Hills Energy
https://www.blackhillsenergy.com/services/colorado-solar-program/private-site-solar-program
Xcel Energy
Duke Energy
https://www.duke-energy.com/home/products/renewable-energy/generate-your-own/net-metering
Florida Power & Light (FPL)
Avista Utilities
https://www.myavista.com/energy-savings/green-options/onsite-generation/getting-connected
Dominion Energy
Idaho Power
https://www.idahopower.com/energy-environment/green-choices/solar-power-options-customer-generation/
Idaho Falls Power
https://www.idahofallsidaho.gov/272/Net-Metering
Rocky Mountain Power
https://www.rockymountainpower.net/savings-energy-choices/customer-generation.html
Empire Electric (Liberty Utilities)
https://www.empiredistrict.com/Home/Document/2329
Evergy
https://www.evergy.com/smart-energy/renewable-resources/private-solar-and-net-metering
Constellation Energy
Potomac Edison (First Energy)
https://www.firstenergycorp.com/feconnect/potomacedison.html
Eversource
National Grid
https://www9.nationalgridus.com/masselectric/home/energyeff/3_faq.asp
Unitil
Central Main Power
Montana-Dakota Utilities
https://www.montana-dakota.com/energy-efficiency/renewable-solar-energy/
Northwestern Energy
https://www.northwesternenergy.com/environment/private-generation
Omaha Public Power District
https://www.oppd.com/residential/residential-rates/net-metering-annual-report/
https://www.oppd.com/residential/residential-rates/customer-owned-generation/
Nebraska Public Power District
Constellation Energy
Jersey Central Power & Light (First Energy)
https://www.firstenergycorp.com/feconnect/jcpl.html
Mon Power - (First Energy)
El Paso Electric
https://www.epelectric.com/renewables-tech/distributed-generation
PNM
https://www.pnm.com/customer-solar-program1
Xcel Energy
Dominion Energy
Duke Energy
https://www.duke-energy.com/home/products/renewable-energy/generate-your-own/net-metering
Duke Energy Progress
https://www.duke-energy.com/home/products/renewable-energy/generate-your-own/net-metering
Dominion Energy
Duke Energy
https://www.duke-energy.com/home/products/renewable-energy/generate-your-own/net-metering
The Illuminating Company (First Energy)
https://www.firstenergycorp.com/feconnect/cei.html
Toledo Edison (First Energy)
https://www.firstenergycorp.com/feconnect/toledoedison.html
Ohio Edison (First Energy)
Constellation Energy
Idaho Power
Pacific Power
https://www.pacificpower.net/savings-energy-choices/customer-generation.html
Portland General Electric
Constellation Energy
Penelec (First Energy)
https://www.firstenergycorp.com/feconnect/penelec.html
Penn Power (First Energy)
https://www.firstenergycorp.com/feconnect/pennpower.html
Met Ed (First Energy)
https://www.firstenergycorp.com/feconnect/meted.html
West Penn Power (First Energy)
https://www.firstenergycorp.com/feconnect/westpennpower.html
Dominion Energy
Duke Energy
https://www.duke-energy.com/home/products/renewable-energy/generate-your-own/net-metering
Duke Energy Progress
https://www.duke-energy.com/home/products/renewable-energy/generate-your-own/net-metering
Dominion Energy
Rocky Mountain Power
https://www.rockymountainpower.net/savings-energy-choices/customer-generation.html
Avista Utilities
Portland General Electric
Puget Sound Energy
Dominion Energy
Constellation Energy
Black Hills Energy
Dominion Energy
Montana Dakota Utilities
https://www.montana-dakota.com/rates-services/wyoming-renewable-energy-credit-purchase-program/
Rocky Mountain Power
Please note that one of the features that we do not currently provide is net metering application management. Periodically we receive inquiries from system owners attempting to provide notice to an electric utility. That's not a thing -at least through this site.
We also occasionally hear from a homeowner that one of "your" solar salespeople showed up on a doorstop uninvited. That's also not a thing - we don't have relationships with any firm not identified below as "Partners".
Over the next several months we will be adding suggestion/submission related functionality and associated policies. In the interim, all inquiries should be submitted either by email using the contact form above, or through www.decentenergy.com
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