Net Metering and Rural Co-ops [RE-wrenches]

[William Korthof]

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How about a suggesting that they simply the arrangement.

1) Residential net metering for small distributed PV should
offer one-for-one energy credit. That avoids the need for
all special procedure. Buy and sell should be equal. Perhaps
there could be an reduction in the meter read frequency
(if warranted) to maybe once every quarter or twice per year.
In the unlikely case of annual surplus generation, the utility
might keep the power (Thanks!), or pay at a low rate that
might compare to the "avoided cost" for fuel only, perhaps
at $0.02/kWh.

2) There's no need to have an electronic meter. Save the cost
for the unit, the programming, and the accounting hassles.
A standard mechanical bidirectional cyclometer such as
General Electric # I70S works great for the utilities with the
most NEM experience, such as Southern California Edison,
LA Department of Water, and Power and Anaheim Public
services utility department.

3) With a retail price of $0.06/kWh, there's no risk of anyone
wanting to make money by illegally back feeding the co-op.
Amortized PV energy costs $0.10 to $0.50/kWh; genset
energy is at least $0.20/kWh; just the fuel for cogen with
natural gas would probably be well over $0.06/kWh.

4) You might want to propose a supplemental monthly fee
for the privilege of getting BOS grid services from the utility
system. Of the other hand, PV systems tend to offer a
reciprocal benefit of leveling out the on/off peaks. PV also
helps unload the end of the line distribution transformer
---slightly, which could be of some nominal benefit.

5) It's appropriate to keep in perspective that any
NEM arrangement would result in at most just a tiny
impact on the system operation. "A few kilowatts of PV
from do-good people" like yourself into the system versus
megawatts of system load and conventional power plants.


/wk

At 01:17 PM 3/3/2004, you wrote:
>Hello Wrenches,
>
>Utah passed a net metering law last year and we're getting inquiries down 
>here in So. Central Utah.  So we decided that we would be the guinea pigs, 
>install a grid-tie battery system on our house, and see what's involved 
>with our local co-op.  To date, there are no residential grid ties within 
>our co-op's area of service.
>
>The good news is, they have actually drafted a net metering policy.  The 
>bad news is...
>
>They're wanting to add a second monthly flat fee of $12.50 a month for the 
>privilege of a net metering account.  Something about the costs of 
>maintaining two separate accounts on one residence, so they say.  Also, 
>they're claiming it will cost about $700 one-time fee for the net 
>meter.   At .0625/Kwh retail, .015/Kwh buyback, you don't have to be a 
>math wizard to figure out that this is a non-starter.
>
>I talked to the co-op's  meter guy, he was very helpful and forthcoming 
>over the phone.  His rationale was that they prefer to use a Landis&Gyr 
>meter that has a $275 cost and a $400 per unit software licensing 
>fee.   He claims that Landis is the only company that will give them the 
>tech support that they need, out here in the boonies, for the net metering 
>software.  They use ABB meters in most places but they claim that ABB was 
>difficult to deal with in getting their first Net metering site (a BLM 
>installation) up and running.
>
>The people that I've talked to within the co-op so far aren't trying to 
>defend their policy that strenuously.  They claim that they had to come up 
>with some policy for the BLM site, and since the BLM doesn't do them any 
>favors...  They admit that they haven't completely thought through the 
>whole residential thing yet.  One of the people I talked to within the 
>co-op actually suggested that I go before the board and appeal for 
>changes.  Which is exactly what a group of us plan to do.  It's not a 
>hostile environment at all, it's just that we're all clueless at this 
>point, myself included.
>
>The reason for my post is that I was hoping some of the wrenches could 
>reply to me off list, and let me know what the net metering application 
>policies and fees are with your particular utility or utilities.  I'm 
>going to take a "reasonable and customary" approach with my appeal, so 
>data and experiences from other utilities will be of great help.  Any 
>insight on four-quadrant net meters would also be of help, it looks as if 
>I'm going to have some educating to do.
>
>I figured replies should be off list since I know this stuff has been 
>talked to death here at different times.  If there's interest I'll be 
>happy to post a summary of the replies that I get.  Thanks as always,
>
>John Raynes
>RE Solar
>Torrey, UT
>435-425-2110
>john at raynes.com
>
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