VIRGINIA – VCC Opens Docket to Amend Net Metering Rules

On May 2, 2008, the Virginia Corporation Commission opened Docket PUE-2008-00008 to amend its existing net metering regulations to conform to the requirements of the 2007 Virginia Electric Utility Restructuring Act (Chapter 23, Sections 56-576 to 56-594). The law requires that the total aggregate net metering capacity for each utility to be increased from 0.1 percent to 1.0 percent of its prior year peak load; and, that the VCC will determine the amount of the net metering payment, unless the utility and the DG owner have a power purchase agreement for a higher rate.

The proposed net metering rules are appended to the order which opened the docket. The VCC will accept comments until June 26, but will not consider any issues outside of what is required to implement the net metering law. Proposal details: net metering will be permitted for renewable generators only; size cannot exceed 10 kW for residential or 500 kW for non-residential customers; the generator must meet IEEE 1547 standards and have an external disconnect switch; no net metering payment will be made unless the DG owner and the utility have a power purchase agreement in place; the net metering payment will equal the prior calendar year’s average PJM system-wide locational marginal price, unless the VCC decides upon another methodology; and, credits carried forward to the next billing period cannot exceed the customer’s billed consumption for that period.

On February 27, 2008, the Virginia Corporation Commission opened Docket PUE-2008-00004 to develop interconnection standards consistent with the federal standards. The VCC staff proposed draft interconnection standards and commentary was accepted until May 19, 2008. Among its many details, the proposal recommends: interconnection for distributed generators 20 MW or less and three review levels depending on generator size (500 kW, 2 MW, up to 20 MW).

The Virginia Corporation Commission rejected both the federal IC/NM standards in 2006. In April 2007, Virginia enacted legislation which revised the state’s net metering rules.

 

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