Utah just made state clean energy history with the Public Service Commission’s (PSC) recent ruling on Net Metering (specifically, their recent ruling on Docket No. 08-035-78 –In the Matter of the Consideration of Changes to Rocky Mountain Power’s Schedule No. 135 - Net Metering Service, issued February 12, 2009). Click here to view the docket index.

A recent Deseret News Article by Jasen Lee highlights the changes to Utah’s Net Metering: PSC order may jolt solar power usage

Thanks to the involvement and support of many stakeholders, businesses, industries, organizations, local governments, and citizens, the PSC has directed numerous changes (see below) to be made to Rocky Mountain Power’s (RMP) Net Metering Tariff. Utah Clean Energy would like to thank each and every one of you who got involved, submitted comments, attended long meetings, and persevered throughout the process - your participation was instrumental in demonstrating the need for progressive net metering in Utah. And it worked!

This is a tremendous victory for solar (and all renewable energy) in Utah and we are pleased to have set a new high bar for other states to follow. The PSC is expected to rule on Interconnection in the coming months, so hopefully we will have more good news to report on then.

Kudos to you all!

Key Changes to Net Metering

1. Total System Capacity set at 20% of RMP’s 2007 peak demand (which is equivalent to 923,000 kW or 923 MW). The Commission finds this cap “reasonable and advantageous.”[1]
    
2. All Renewable Energy Credits are owned by the customer or as otherwise designated by the customer.
    
3. Residential customers will receive kilowatt-hour credits for any excess generation they produce. RMP is directed to modify its Net Metering Schedule to reflect this decision by April 1, 2009.
    
4. 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.
   • In order to implement this change, the PSC will hold a technical conference to discuss details associated with the FERC Form No. 1 method such that initial rates based on this method will be approved and available by July 1st of this year and updated in subsequent years.
   • In the ruling, the Commission finds that large commercial customers “would be inadequately compensated” with kilowatt-hour credit for excess generation and the Commission prefers not to impose a barrier, either actual or perceived, to the development of these larger systems….larger commercial/industrial customers must be fairly compensated for excess generation.”[2]
      
5. 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.
    
6. Reference to Cap in Net Metering Tariff: The PSC considered eliminating the total system capacity requirement entirely, but found that Utah Code Title 54 Chapter 15 does not provide the Commission the authority to eliminate the cap. However, the PSC directs RMP to remove the reference to the cap on net metering from its tariff.
    
7. Requirement to update the avoided cost pricing in Schedule No. 37 annually, concurrent with the approval and establishment of rates for larger commercial and industrial customers based on the FERC Form No. 1 method.
    
8. Customer classification: The Commission 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
      
9. Minimum Bill Fee: The PSC finds it reasonable to apply the minimum bill to net metering customers who provide net excess generation during; this bill fee is applied to all customers to recover costs associated with serving a customer.

Background
After the 2008 Legislature adopted revisions to Utah’s Net Metering Policy in SB 84 – Net Metering Programs, the Public Service Commission held public meetings and technical conferences to discuss the issues surrounding net metering deferred to the Commission in SB 84. The PSC issued a Request for Public Comment in September 2008 and a Public Hearing was held January 12, 2009.

The Commission received comments on the matter of net metering from over 40 businesses, citizens, local and state government officials, and public interest organizations: 

Utah Division of Public Utilities, Utah Committee of Consumer Services, Salt Lake City Mayor Ralph Becker, Utah State Energy Program, Salt Lake County Mayor Peter Corroon, Summit County Community Development Department, Renewable Energy Development Corporation, Cedar Storage Rentals, Solar Unlimited Energy & Homes, Inc., MMA Renewable Ventures, the Wasatch Clean Air Coalition, Interstate Renewable Energy Council, Utah Chapter of the American Institute of Architects, Utah Clean Energy, Western Resource Advocates, the Vote Solar Initiative, Intermountain CHP Application Center, Dixie Escalante Energy, Utah Solar Energy Association, Utah Association of Energy Users, Wal-Mart, Park City Municipal Corporation, Kennecott Land Company, Gold Medallion Homes, McMullin Homes, Beaver County Economic Development, City of Moab, Town of Springdale, 3form, Sharp Electronics Corporation Solar Energy Solutions Group, The Solar Alliance, Black Diamond Equipment Ltd, Petzl America, Inc., Park City Mountain Resort & Powdr Corporation, Gardner Engineering, Green Power Solutions Inc., Renewable Synergy LLC, MJH Power Consulting LLC, Director of the Utah Catholic Diocese Peace & Justice Commission, Utah United Religions Initiative, Alder Photo, and Packsize, LLC and over fifteen private citizens.