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ProposedRates <br />from sales of electricity minus the annual revenue resulting from fixed charges, divided <br />by the annual class kilowatt-hour sales. <br />mean reimbursing customers at the current average annual residential rate of 12.08 <br />cents/kWh. The customer charge is not part of the calculation and is still paid by the <br />customer regardless of their net metering situation. <br />During the 2015 legislative session, the statute was revised to include the following <br />language: harge an <br />additional fee to recover the fixed costs not already paid for by the customer through the <br />customer's existing billing arrangement. Any additional charge by the utility must be <br />reasonable and appropriate for that class of customer based on the most recent cost of <br />service study. The cost of service study must be made available for review by a <br />It is not clear how this may ultimately be <br />interpreted, it could mean: <br />A higher customer charge to reflect more distribution fixed costs <br />A different rate such as a retail demand charge structure <br />A separate charge based on solar generating capacity <br />Other potential interpretations <br />The table below summarizes calculations performed based on the unbundled cost-of- <br />service results for the residential class to calculate a cost-based solar access charge for <br />application to customers installing solar generating capacity at their customer location. <br />Based on data for the residential class, the average ERMU residential customer has an <br />average monthly peak demand of 4kW. The solar access charge calculation is based <br />on allocated fixed local costs divided by the total residential class estimated annual <br />billing demands. Based on the calculation, it is estimated that the cost of the local <br />system for residential customers is $5.56/kW-month. It is proposed that the access fee <br />One option would be to <br />apply thefee to all capacity in excess of the average residential monthly demand of 4 <br />kW. For instance, if a customer installs a 6-kW solar facility under a net metering <br />-19- <br />94 <br />