Letter to the Editor
Net metering
Published Thursday, October 22, 2009
Oct. 20, 2009
To the editor:
I wish to thank the commissioners of the Regulatory Commission of Alaska for voting 4 to 1 to adopt a net metering policy for our electric utilities. With this vote (Oct. 14, 2009) Alaska joins 42 other states that have net metering.
What is net metering? It is simply regulation that requires large public electric utilities in Alaska — including Golden Valley Electric Association — to pay a fair rate to producers of electricity generated by solar, wind, geothermal and other sources.
I am a solar-electric producer, and net metering will positively impact my bottom line.
Net metering makes alternative energy projects financially feasible, and I am certain net metering will encourage others to invest in alternative energy projects throughout Alaska.
Any negative impact on the utility companies is small. The new regulation sets a reasonable limit on the size of individual systems (25 kilowatts) and limits alternative power generation to only
1.5 percent of GVEA’s total capacity. This means the impact of net metering on GVEA is like that of a flea on an elephant.
The RCA sets electric rates for Alaska’s public utilities. Net metering will become effective after review by the Alaska attorney general and lieutenant governor.
These net metering regulations are an acknowledgement that the public process of workshops and public comment works.
I applaud GVEA’s continued support for a Sustainable Natural Alternative Power program, which can work in harmony with net metering, and the RCA’s adoption of this new regulation.
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Community Discussion
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Eric,
Are you paid more per kw than GVEA charges a customer.? I would not want to spoil you party, but I wouldn't want to pay for it either.
As long as it is not more than GVEA's average cost to produce power, no problem.
The current payback on the SNAP program is about 5 times higher than the residential cost of electricity. This money comes from voluntary contributions to the SNAP program though and does not impact those who choose not to participate.
Last year the entire combined production from green power would have been enough to power the entire grid for a whopping 5 seconds. When they say a flea on an elephant they are correct, this program is a feel good publicity getter and nothing more.
What is sad about this ruling is that smaller utilities and their communities (whom need this the most) have been exempted from net metering. RCA needs to stop being the utilities front agency.
Places like southeast, other rural folks who live in small towns can't receive these benefits. Their utilities with RCA's complicity were successful in fending off a program which they said are too expensive for smaller utilities to operate.
So, I guess they need incentives to cut diesel consumption. I'm not a fan of cap and trade, but unless something else is done to convince RCA and its utilities of net-metering merits the rural folks are just going to get hammered again.
I wonder if this guy knows that when he's taking money from GVEA he's taking money from the member owned co-op that we're all currently paying for.
That's OUR elephant.
FairbanksGas - but for those 5 seconds we could feel really green! And isn't that what is truly important?
The way I understand it, Net Metering means that if you are generating more power than you need, your meter will run backwards, which will subtract from the usage when you are generating less than you use. The effect is that GVEA will charge you only for the usage that totals up on your meter, but they will still charge you at the going rates, which are somewhat higher for small users. (There are fixed costs such as amortizing and maintaining the lines and meters that become a smaller percentage of your bill as your power use goes up.)
I might add this is a good thing. The more power that individual generate, the less fuel GVEA will use at the NP power plant. That reduces the fuel adjustment we all hate to see on our bills. On my September bill, the fuel charge was $1.82 MORE than the utility charge. I would love to see that go down, so if the "greenies" all put in solar panels and wind mills, the more power to them (no pun intended. :-) )
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