Average Retail Rate Payments & Net Metering (S)
State law and regulations provide the average retail energy rate of each electric utility be paid on a net metering basis to small power producers under 40 kW capacity.
The MREA strongly opposes an increase in the 40 kW level for applying the average retail energy rate and net metering and opposes a state renewable energy payment through a special assessment on all electric utilities.
The MREA supports that the following principles be included in any legislative and/or regulatory changes to the State’s net metering laws and policies:
· Net metering and distributed generation should be cost-neutral for our members.
· The purpose of net metering needs to be clarified in statute and/or regulation. The purpose of net metering is to allow electric consumers to offset their individual loads, not become independent power producers.
· Payments for excess generation should be eliminated and replaced with rolled-over credits that expire after a year.
· Generation should be properly sized to a consumer’s load.
· Net-metered customers have a responsibility to pay for the services they use.
· A system-wide cap on net metered accounts (based on overall system capacity) needs to be established to maintain the reliability and affordability of the electric distribution system.