6.1a ERMUSR 03-13-2017 - Laserfiche WebLink

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1111111111118 irirffirirlsoffe Position Statement Distributed Generation Distributed generation (DG) is power that is produced at the point of consumption. Electricity is generated on-site at a utility customer's own property. Distributed generation resourcesoidid can include solar -04 photovoltaic, small wind turbines, combined heat and power (CHP), fuel cells, and micro- turbines. Over 90 - r ffi �P percent of installed DG in the U.S. today is solar. The amount of solar generation has -- � �~��'— Y• increased significantly in the last several years. 6 Driving this growth is the dramatic decrease Most distributed generation resources rely on the electrical grid to supply all or part of their power at various times. Municipal utilities are intent on not having other customers subsidize in the price of solar their distributed generation customers. panels, with the installed costs of residential and commercial photovoltaic declining by over 70 exacerbates the problem of under-collecting for the percent since 2008. Federal and utility incentives cost of providing service.As a result, other retail for solar panel installations, state renewable customers subsidize customers with distributed energy standards and other state-level incentives, generation. Utility efforts to adapt their rate and including net-metering requirements, are also fee structures accordingly are sometimes wrongly contributing to the increase in solar generation. decried as discriminatory. The reality is that equal customer treatment requires such revenue Under a net-metering program, a utility will credit collection adjustments, as solar DG penetration generating customers for their electricity sales becomes a more significant part of the mix in utility to the grid and charge them for periods when service territories. electricity consumption from the grid exceeds their generation. Under Minnesota's net-metering Customer-owned rooftop solar involves challenges statute, the customer is both charged and credited for customers as well. Out-of-town at the utility's full retail rate of electricity. contractors selling unfamiliar products involving somewhat complicated financing issues can Net metering creates an inherent revenue lead to unmet expectations and other problems. challenge for electric utilities. Residential electric Increasingly, municipal utilities are providing bills have been based primarily on a customer's customers an alternative option to rooftop solar electric consumption, and the associated "customer through utility-scale community solar projects that charges" rarely reflect the full amount of fixed costs alleviate uncertainty and reduce solar installation utilities incur to provide retail electric service. Under current billing practices, net metering continued on next page 2017 Federal Position Statements/7 176