Xcel Proposes Connectivity Fee for its Net-Metered Solar Customers
Just as the Bonneville Power Administration led the charge on the addition of a wind integration rate, Xcel Energy now seeks to impose a solar connectivity charge on its net-metered customers in Colorado. The proposed monthly fee is intended to pay Xcel for setting aside electricity capacity for solar customers, in case they need to draw energy from the grid. Because this is a capacity-based charge, it would apply even if the net-metered customers do not actually use any of the capacity in a given month. If the fee is approved by the Colorado Public Utilities Commission, Xcel will be the first utility in the U.S. to charge net-metered solar customers for the ability to access the grid when needed.
Tom Henley, a spokesman for Xcel, described the fee as necessary to prevent solar customers from getting a windfall, as they currently do not pay to use the grid as a backup. However, solar energy advocates countered that the proposed fee overlooks the benefits that the net-metered customers provide: namely, generating clean, renewable energy that can be fed into the grid. One net-metered Xcel customer noted that the solar panels on his roof generate enough electricity to power five or six houses around him.
The proposed fee would go into effect in April 2010 and apply to customers who purchase solar panels on or after the effective date. The 2.6 cent per kilowatt-hour fee would be based on the largest amount of electricity per month that a solar customer has extracted from the grid during the last year. Henley estimates that the fee would amount to an additional $1.90 per month for a person adding a 4.5 kilowatt solar array to his or her home.
The Colorado Public Utilities Commission is holding a public hearing on the proposed rate increase on August 5th.
Net Metering Changes in Utah - A Victory for Renewable Energy in Utah
The following changes to Rocky Mountain Power’s (RMP) Net Metering Tariff went into effect April 1, 2009, based on the Public Service Commission’s (PSC) ruling in February 12, 2009:
- Total System Capacity set at 20% of RMP’s 2007 peak demand (equivalent to 923,000 kW or 923 MW).
- All Renewable Energy Credits (RECs) are owned by the customer, or as otherwise designated by the customer.
- Residential customers will receive kilowatt-hour credits for any excess generation they produce.
- Large commercial and industrial customers with demand charges that generate excess generation will be given a choice between:
- Valuing excess generation at an avoided cost based rate (schedule 37), available as a choice between a blended (yearly average) rate or seasonally differentiated rates,
-- OR -- - Valuing excess generation at an alternative rate calculated by dividing Rocky Mountain Power’s Utah revenue per schedule (applicable to the net metering customer) by the schedule’s corresponding kilowatt-hours usage data from the previous year’s FERC Form No. 1.
- Valuing excess generation at an avoided cost based rate (schedule 37), available as a choice between a blended (yearly average) rate or seasonally differentiated rates,
- Annual Net Metering Report Requirements: The PSC directs RMP to submit an annual net metering report that includes the number of Utah net metering installations, the respective individual capacity of each installation, the total capacity of the Utah customer-generation as of the end of the annualized billing period, and any unforeseen problems or barriers in the tariff, and any other relevant measure showing how close the program is to the designated net metering cap.
- Customer classification: The PSC determined that the following customer classes will be used to implement the aforementioned changes:
- Residential: all residential schedules
- Small Commercial: Schedule No. 23 and Schedule No. 23B – General Service – Demand Time-of-Day – Distribution Voltage
- Large Commercial: Schedules Nos. 6, 6A – General Service – Energy Time-of-Day Option, 6B – General Service – Demand Time-of-Day Option, Schedule 8, and Schedule No. 10 – Irrigation and Soil Drainage Pumping Power Service
- Minimum Bill Fee: The PSC found it reasonable to apply the minimum bill to net metering customers who provide net excess generation.
Utah PSC Revises Net-Metering Policy Creating New Incentives for Solar and Wind Energy
Renewable energy supporters in Utah are cheering a recent order which will make renewable energy systems such as wind turbines and solar panels more cost effective for consumers.
On February 12, 2009, the Utah Public Service Commission issued an order revising the Rocky Mountain Power net metering policy. In the past customers who own renewable-energy facilities were credited for excess generation based on an avoided-cost calculation, which results in a low financial benefit to the customer. The new net-metering policy provides a "full retail" or dollar-for-dollar credit for every kilowatt-hour of excess power generation, creating a much greater incentive for renewable-energy production by residential, commercial and industrial consumers. In addition, the order declared that renewable energy certificates shall be "deemed owned by the net-metering customer or as otherwise agreed to or designated by the net-metering customer." The PSC order will become effective on April 1, 2009.
Salt Lake County Mayor Peter Corroon and Salt Lake City Mayor Ralph Becker, both supporters of renewable energy and this net-metering policy change, are reportedly investigating ways to promote investment in solar power in the region having jointly received a Solar America grant from the U.S. Department of Energy.
