UTAH – On February 12, the Utah Public Service Commission (PSC) issued an order under Docket No. 08-035-78, that significantly improves Rocky Mountain Power’s (RMP) net metering tariff. Notably, in this order the PSC increased the net metering program cap from 0.1% to 20% of RMP’s peak demand for 2007. The decision also allows for a kWh credit for excess generation from residential and small commercial customers’ net metered systems. Previously, if a customer generated net excess kWhs during a billing period, the utility credited the customer’s NEG at a rate equal to the utility’s avoided cost or higher, which would rollover each month for up to a year.
Additionally, large commercial and industrial customers with demand charges that generate excess generation will be given a choice between 1) valuing excess generation at an avoided cost based rate; or 2) valuing excess generation at an alternative rate based on utility revenue and sales contained in FERC Form No. 1. The Commission adopted this proposal after embracing the view that a per kWh charge would inadequately compensate large commercial customers who face demand charges. The development of the alternative rate will be the subject of future efforts at the Utah PSC. The PSC directed 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, 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. The PSC order also specifies that renewable energy credits remain with the system owner. RMP is directed to modify its Net Metering Schedule to reflect this decision by April 1, 2009.