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Net Metering and Interconnection: Regional Perspectives and Best Practices

Net Metering and Interconnection: Regional Perspectives and Best Practices. Brad Klein Nebraska Wind Power Conference Kearney, NE November 9, 2009. Outline of Presentation. Overview of ELPC’s Regional Work Interconnection and Net Metering Basics Summary of National Best Practices

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Net Metering and Interconnection: Regional Perspectives and Best Practices

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  1. Net Metering and Interconnection:Regional Perspectives and Best Practices Brad Klein Nebraska Wind Power Conference Kearney, NE November 9, 2009

  2. Outline of Presentation • Overview of ELPC’s Regional Work • Interconnection and Net Metering Basics • Summary of National Best Practices • Recent Regional Developments • Recommendations for Next Steps In Nebraska

  3. Snapshot of ELPC – www.elpc.org • Midwest’s leading public interest environmental and eco-business advocacy organization. • Offices in: • Chicago (headquarters) ; • Columbus (OH), Des Moines, Jamestown (ND); Madison; Minneapolis; Sioux Falls • Project areas: • Developing clean energy • Growing eco-business • Advancing smart transportation • Protecting natural resources

  4. ELPC Clean Energy Work in 2009 Work areas: Promoting Interconnection and Net Metering Standards Implementing the Farm Bill Clean Energy Title Advancing Energy Efficiency Cleaning up Coal Plants and Refineries Supporting Federal Global Warming Legislation Websites: www.globalwarmingsolutions.org www.farmenergy.org Note -- Updated Community Wind Financing Handbook now available (available at farmenergy.org)

  5. Interconnection & Net Metering: The Basics Interconnection Standards • The “rules of the road” for connecting new generation to the grid. • Covers how you connect. Net metering • The economic arrangement to simplify the reconciliation of value of customer produced power. • Covers how you’re compensated after you connect. Both are necessary to overcome barriers to customer generation.

  6. Interconnection Standards:Best Practices • 37 states have adopted an interconnection policy. • Best practices include: • Rules cover all state jurisdictional generators; • “Fast track” review for less complex “lab certified” systems; • Rules incorporate IEEE 1547 technical standard; • Fair fees and timelines for utility review of customer applications; • Standard form applications and contracts included; • No redundant equipment required (e.g. external disconnect switch) • No arbitrary additional insurance requirements; • Dispute resolution procedures included.

  7. Interconnection grades From “Freeing the Grid 2009” www.newenergychoices.org

  8. Interconnection:Regional Developments in 2009 • New Illinois procedures working well; • South Dakota adopts new interconnection procedures; • Iowa moving forward with new rules based on Illinois model; • Kansas initiates rulemaking; • Colorado improves existing procedures;

  9. Net metering best practices • 42 states have adopted a net metering policy • Best practices include: • Larger commercial & industrial systems eligible (e.g. 2 MW); • No arbitrary system caps based on percent of peak demand; • Customer receives 1:1 kWh credits for net excess generation; • Excess kWh credits roll month-to-month; • Renewable energy credits (RECs) assigned to customer; • “Safe harbor” from special fees and charges; • Program covers all utilities in the state

  10. Net metering grades From “Freeing the Grid 2009” www.newenergychoices.org

  11. Net metering – national developments • Twenty-two states and the District of Columbia changed or adopted net metering laws/regulations during the last year. • Trends and hot issues: • 20 states now allow “supersized” net metering (1-MW or greater); • treatment of net excess generation; • renewable energy credit ownership; • community-owned systems; • third-party ownership. (Source: IREC)

  12. Net Metering:Regional developments in 2009 • Nebraska adopts modified net metering for systems < 25 kW; • Kansas requires net metering for systems up to 200 kW; • Colorado improves net metering cap and NEG credit rollover; • Looking ahead: • Illinois to expand net metering to 2 MW? • Kansas Corporation Commission to finalize rules • South Dakota? • Indiana?

  13. Recommendations for Nebraska • Adopt statewide interconnection procedures based on best practice model; • Consider net metering improvements: • Expand net metering to larger systems; • Improve treatment of net excess generation; • Reevaluate 1% program cap.

  14. Resources • Interstate Renewable Energy Council (www.irecusa.org) • Connecting to the Grid Guide • Model interconnection & net metering rules • State by state tables • Freeing the Grid report (http://www.newenergychoices.org) • Database of State Incentives for Renewable Energy (www.dsireusa.org)

  15. Questions / Discussion?

  16. Thank you! Brad Klein Staff Attorney Environmental Law & Policy Center 35 E. Wacker Drive, suite 1300 Chicago, IL 60601 312-673-6500 bklein@elpc.org

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