Net metering update

Changes to net metering policy will impact municipal electric utilities. This interim, the Washington Public Utility Districts Association (WPUDA) has taken the lead in organizing electric utilities to examine the current net metering rules. This is in response to legislative proposals introduced in recent years that would make significant policy changes.

WPUDA held a meeting in Olympia and invited the electric utilities to discuss whether there was interest to proceed with advancing a new proposal, and what principles a proposal might include. Participants decided that there is interest in updating the current net metering rules if a new proposal would limit (where possible) cost shifting to other ratepayers and utilities could retain some local discretion.

Net metering is defined in RCW 80.60 as measuring the difference between electricity supplied by a utility and electricity generated by a customer over a billing period. Currently, utilities are required to accept distributed generation (which are typically solar panels or other small-scale on-site power sources) under these conditions:

• The combined total generating capacity of each utility’s net metering systems equal no more than one half of one percent of the utility’s 1996 peak demand, unless the utility chooses to go beyond;
• Each generation system has a capacity of no more than 100 kw;
• Each generation system’s expected annual generation is equal to or less than the expected total annual consumption of the generator’s home or business.

Net metering is likely to be a topic of discussion in the 2019 legislative session. AWC is seeking input from municipal electric utilities on potential changes.