IREC’s Legal Team, Keyes & Fox, Pick 4 States for Interconnection and Net Metering Best Practices in 2009

To say 2009 was a busy year for rule making proceedings would be a radical understatement.   IREC’s legal team of Keyes and Fox were involved in interconnection and net metering regulatory proceedings in some 20 states.

Involved, according to Jason Keyes, means providing multiple rounds of comments and participation in workshops and hearings in those rule makings.  “IREC’s been involved in Utah’s interconnection rulemaking for more than a year,” said Keyes.   In fact, it’s totally accurate to conclude that Keyes & Fox’s steady and persistent hand in several of these states produced successful results.

When they weren’t traveling cross country for regulatory rule makings, Keyes and Fox found time to update IREC’s highly respected 2009 Model Rules and Procedures for net metering and interconnection.

Here’s their top list of states–Colorado, New Mexico, Utah, and Virginia– that deserve high fives for their interconnection and net metering best practices.

COLORADO – During 2009, Colorado revisited its net metering rules and interconnection standards making a number of improvements. Colorado now allows systems sized up to 120% of a customers average annual consumption to net meter and indefinite rollover of net excess generation is now allowed. Colorado also relaxed it’s insurance requirements for interconnected systems and allowed utilities to forego the need for the installation of an external disconnection switch if they so choose.  Xcel and several coops have already taken advantage of this last rule change for smaller systems.

NEW MEXICO:  In June, New Mexico considered the prickly issue of whether third party owners of distributed generation are public utilities.  As in other states, finding that third party owners are utilities would be equal to a prohibition of third party ownership, which would severely limit the potential for renewable energy in the state because many projects depend on third party ownership to monetize federal tax benefits.   In late December, the Public Regulation Commission voted 4-1 that companies that install, own and operate generation equipment on a customer’s property and sell the power to the customer aren’t considered to be a public utility.   “”We’ve spent a good part of the year trying to get third party ownership allowed in New Mexico and it just passed last week,” said Jason Keyes.  “It appears that dozens of megawatts will be installed within a year as a result of this ruling, though a utility appeal of the Commission ruling is possible and could delay projects.”  Watch for the updates to be included in the DSIRE database.

UTAH – Utah greatly improved it’s net metering rules during 2009 moving from a D to an A in the 2009 edition of Freeing the Grid. Among the changes adopted by the Utah Public Service Commission was an increase in Utah’s net metering cap to 20% of Rocky Mountain Power’s peak demand, allowing excess generation to be credited at a customer’s full retail rate for residential and commercial customers, and clarifying that renewable energy credits are retained by system owners.  “On the interconnection front, the current draft rules are very good and would complement Utah’s net metering law,” said Keyes.

VIRGINIA:  In May of 2009, the Virginia State Corporation Commission issued a final order adopting a strong set of interconnection procedures. The procedures cover systems up to 20 MW; include a Level 1 “super fast-track” process for inverter-based systems up to 500kW; incorporate network interconnection screens adopted from IREC’s model rules; impose low insurance requirements for systems under 500kW; and provide a low cost, informal means of dispute resolution. The procedures do, however, allow utilities to require an external disconnect switch. Despite this drawback, the new procedures move Virginia from an “F” to an “A” in Freeing the Grid 2009. In fact, Virginia is the first state to score an “A” for interconnection.  During 2009, IREC also worked with Virginia in updating its net metering rules, which now score a “B” in the 2009 Freeing the Grid report.

Thanks to the brilliant team of Keyes & Fox who provided information for this piece:  Jason Keyes, Kevin Fox, Joseph Wiedman, and Chris Cook (of counsel).