At the halfway point of this short legislative session, several bills focused on renewable energy planning and production by electric utilities did not pass out of their respective chambers. However, two bills sponsored by Sen. Guy Palumbo (D-Maltby) have moved from the Senate to the House. These bills seek to expand opportunities for renewable energy and could have cost implications for municipal utilities.
Raising net metering requirements
Utilities have raised concern that imposing a higher minimum threshold for net metering will have cost impacts on municipal utilities. Net metering allows electricity customers to offset their utility costs by generating their own electricity with small-scale, renewable energy systems (such as solar panels). Under current law, utilities must allow net metering capacity at .5 percent of the utility’s 1996 peak demand. Customers participating in net metering can be credited on their utility bills for up to 100 kilowatt hours (kWh). Several utilities, including small municipal utilities, already exceed .5 percent net metering, while others have not reached that threshold. SB 6081 would raise the .5 percent threshold to four percent. The bill also calls for a study that would consider cost impacts to utilities and ratepayers, with an initial report due to the Legislature by December 1, 2019.
Allowing small utility incentives for home electric car chargers
SB 6187 clarifies that consumer-owned utilities can offer incentive programs to their customers for “electrification of transportation,” such as installing home chargers for electric vehicles. Larger, investor-owned utilities were given this authority in 2015. With SB 6187, municipal utilities will also be able to offer rebates to their ratepayers, if cost-effective for the utility. Rebates would not be allowed to increase costs to ratepayers more than one-quarter of one percent. AWC supports the flexibility in this bill to allow utilities to determine the cost-effectiveness of offering incentive programs for home charging and limit costs to ratepayers.