Feb
12.
The Regulatory Commison of Alaska released their proposal for the Alaska State Net Metering Standard.
LEARN MORE ABOUT THE PROPOSAL, LEARN ABOUT WHAT SHOULD BE CHANGED
LEARN ABOUT HOW YOU CAN SUMBIT COMMENTS.
The Regulatory Commison of Alaska released their proposal for the Alaska State Net Metering Standard.
LEARN MORE ABOUT THE PROPOSAL, LEARN ABOUT WHAT SHOULD BE CHANGED
LEARN ABOUT HOW YOU CAN SUMBIT COMMENTS.
“Some utilities are opposed to net metering because they believe it may have a negative financial impact on them. However, a number of studies have shown that net metering can benefit utilities. Grid-connected PV systems can help utilities avoid the cost of additional power generation, increase the reliability and quality of electricity in the grid, and produce power at times of peak usage, when utility generation costs are higher and they often need the extra power.” My question is, why is there a limitation of 1.5% of daily demand? It seems to me that the total that accually would be fed back to any utility would be a lot less than the 1.5% because the home or business will be utilizing most of what is produced, so the likelyhood of any significant amount of excess power being poured back to the utility would be small.
Dear Larry,
I will talk the technical expert about your question and get back to you ASAP.
-AK Net Metering Coalition
Larry, most net metering policies or laws were started in other states with a 1% of peak demand limit to build a comfort level with utilities. Utilities, especially rural coops, initially fear the loss of revenue and control if the aggregate net metering limit seems too large too early. Once more than a few systems are installed, they get used to the fact that impacts of the residential and commercial systems are negligible, and not a threat to their bottom line. Therefore 17 states now have no limit on total net metered capacity, as this capacity is helping meet the need for additional renewable generation to meet targets set by the state. Obviously in Alaska, we are going to make progress one step at time and the policy now on the table will be a large step forward – and the limit of total net metered capacity can be raised at a later time through tariff modification if needed.
This argument that poor customers must subsidize self-generating customers has a fundamental flaw: Non-net-metering requires that all customers subsidize an ever-increasing amount of waste. Each component of the regional utility grid has an element of waste. The fuel source has a 30% to 60% waste factor, the transmission lines have a 10% to 30% waste factor, and the entire system depreciates over time at a rate that increases with the age of the system. Also, all of the repair equipment, vehicles, etc depreciate, and the utility company has overhead which is also a form of waste. The faster technology changes, the more waste the cash-strapped customers are asked to subsidize. Large systems cannot adapt quickly to change, and this equals more waste. If utility companies do not have a solid plan for adapting to fast change, such as a plan for net metering, customers subsidize an investment in wasteful choices, like turning up the temperature on the pot of water in which we are all sitting. Ultimately the large system must be jettisoned as the only means to correct the growing inefficiency. It’s the system itself that is flawed. Self-generating customers are the first signs of a system that is so inefficient, people are investing in a new system with less waste.
If the utility company’s system were a good long term investment, why would we be having this conversation?
Rebecca Shaffer
——————————————————————————–
From: Jim Susky [mailto:jimsusky@yahoo.com]
Sent: Monday, July 13, 2009 12:16 PM
To: Jim(yahoo) Susky
Subject:
Margaret Adsit,
Energy Coordinator
Alaska Center for the Environment
Ms. Adsit (and the rest),
Thank you for your notice on the chance to comment on RCA’s proposed Alaska State Net Metering Standard.
I am troubled by the unfairness inherent in the idea of net metering.
Utilities and regulators try to be fair by following the cost-causer cost-payer principle. When you are paid more than the avoided cost for the power you generate you get a subsidy from the utilities other customers.
If I were to be paid on a net-metered basis to self generate for my sole benefit and that of the foster kid who stays with me, then his financially-strapped mother and grandmother will be privileged to pay more for their electric power thus subsidizing me.
My comfort will be supported by their discomfort.
Regards
Jim Susky