December 11, 2012

Ohio PUC explores changes to net metering rules

The Public Utilities Commission of Ohio  recently  requested  comments on a set of draft rules, in Case  No.12-2050-EL-ORD, regarding “a variety of net metering issues as well as the implementation of a standard market- based rate for electricity and capacity transactions between utilities and co- generation facilities.” An explanation of some of the pro- posed…

The Public Utilities Commission of Ohio  recently  requested  comments on a set of draft rules, in Case  No.12-2050-EL-ORD, regarding “a variety of net metering issues as well as the implementation of a standard market- based rate for electricity and capacity transactions between utilities and co- generation facilities.”

An explanation of some of the pro- posed revisions that the Commission seeks comments on is detailed below:

•     The proposed   revisions   would clarify   that   any   customer that hosts or leases generation equipment on its premises should be considered a customer-generator.

•    The proposed revisions seek to clarify the definition of “intend primarily to offset part or all of a customer-generator’s requirements for electricity”, as found in the net metering rules. The clarification to the definition would include a presumption that a customer-genera- tor that generates less than 120% of its requirements for electricity intends  “primarily to offset” part or all of the customer-generator’s requirements for electricity.  This presumption is proposed because the Commission and staff recognize   that a customer-generator could generate in excess of the customer-generator’s consumption while actually intending only to offset all of the customer-generator’s requirements for electricity. The Commission and Staff further recognize the need to allow customer-generators to engage in   energy   efficiency   measures without becoming excessive-generators.  The Commission seeks comments on whether setting this presumption promotes the public policy of the state of Ohio and whether it could be appropriately and fairly applied  to  customer- generators.

•     The   Commission   seeks   comments on the proposed revision to clarify a customer-generator’s “requirements for electricity” as the customer-generator’s average annual   electricity   consumption over the previous three years, using the annual period of June 1 to May 31.

•     The   Commission   seeks   comments on the proposed revision to clarify the calculation of the credit for monthly excess generation and net excess generation.

•     The Commission seeks comments on the proposed revision to clarify the definition of the customer-generator’s premises.  The clarified definition would recognize that a customer-generator’s      premises include lots or areas contiguous to the lots or areas owned, operated, leased, or otherwise controlled by the customer-generator.

•     The   Commission   further   seeks comments on whether specific definitions of the acceptable technologies for  net  metering  should  be included in  this rule. Specifically, whether the rule should contain a definition for microturbine technology and at what capacity or under what circumstances, if any, is a microturbine generator different from a traditional turbine generator.

•     The   Commission   further   seeks comments on whether virtual net metering and aggregate net metering could be implemented in Ohio without violating state  laws  and whether  virtual net metering and aggregate net metering would pro- mote the public policy of the state.

Interested parties are  asked  to  file comments by January 7, 2013, and reply comments by February 6, 2013.