Governor Matt Bevin has signed into law much-anticipated net metering reform that protects local consumer-members of Kentucky’s electric cooperatives.
The law updates antiquated language in legislation passed 15 years ago that required co-ops and other utility companies to credit private net metering energy customers, such as those with rooftop solar, for electricity they generate at a rate that’s higher than utilities pay for other energy sources.
This inflated “net metering” rate did not reflect the reality of how renewable energy is growing today. As a result, people who net meter have not been paying their fair share for the 24/7 electric grid we all use, shifting those costs to other consumers, often people who can least afford it.
After reform opponents raised concerns in previous efforts to update the law, co-ops supported a compromise, to take politics out of the rate-making process and allow the Kentucky Public Service Commission to set future net-metering rates. The compromise also increased by fifty percent the amount of net metering capacity by a private solar customer.
Senate Bill 100, sponsored by Senate Natural Resources and Energy Committee Chair Brandon Smith, still requires a utility to take excess power generated by private net metering customers but ensures all customers pay their fair share of utility service by authorizing the PSC to determine the value of excess electricity. The PSC regulates retail electric service throughout most of the state.
The compromise legislation also includes language to protect all private net-metering customers and the investments they made in solar panels. The bill takes effect January 1, 2020. Any private net-metering customer who installed solar panels prior to that date will have access to the previous net-metering rate for a total of 25 years.
An amended version of Senate Bill 100 had passed out of the House earlier in the session with provisions considered unfriendly by House Natural Resources and Energy Committee Chair Jim Gooch, based on significant, negative changes to the bill.
After the House amended the bill, the Senate refused to concur and asked the House to recede from the changes. the House kept the bill in the orders for several days awaiting the final decision on whether to recede from the changes. It was finally taken up on day 29 of the 30-day session.
Rep. Gooch noted the PSC was opposed to the legislation in its amended form. And the House voted to recede from their amendment after discussion.
Senate Bill 100, in its original form, saw final passage with a 55-36 vote.
The Kentucky Electric Cooperatives Government Relations team thanks lawmakers who stood up for the local consumer-members of Kentucky’s electric cooperatives, and also thanks the local co-op leaders who communicated their support of the compromise legislation to those lawmakers.
Another success to highlight from the 2019 General Assembly is the education effort regarding proposed legislation that would have allowed municipal utilities to operate like cooperative G & T’s without any significant oversight from the PSC. Kentucky Electric Cooperatives closely monitored this legislation and worked with lawmakers, including Rep. Mark Hart to explain our concerns on the bill. The legislation did not advance.
