Pennsylvania Proposes to Modify Net Metering Size Limitations

The Pennsylvania PUC has issued for comment a proposed rulemaking that would revise certain regulations of the Alternative Energy Portfolio Standards Act (AEPS) of 2004, including regulations pertaining to net metering, interconnection and compliance provisions of the AEPS Act.

Specifically, under the proposed rules, to qualify for net metering, the customer-generator must meet the following conditions:

(1) Have electric load, independent of the alternative energy system, behind the meter and point of interconnection of the alternative energy system. To be independent of the alternative energy system, the electric load must have a purpose other than to support the operation, maintenance or administration of the alternative energy system.

(2) The owner or operator of the alternative energy system may not be a utility.

(3) The alternative energy system must be sized to generate no more than 110% of the customer-generator's annual electric consumption at the interconnection meter location when combined with all qualifying virtual meter aggregation locations.

(4) The alternative energy system must have a nameplate capacity of not greater than 50 kilowatts if installed at a residential service location.

(5) The alternative energy system must have a nameplate capacity not larger than 3 megawatts at other customer service locations.

(6) The alternative energy system must have a nameplate capacity not larger than 5 megawatts and meets the conditions set forth in § 75.16 (relating to large customer-generators).

(7) An alternative energy system with a nameplate capacity of 500 kilowatts or greater must have Commission approval for net metering in accordance with § 75.17 (relating to the process for obtaining commission approval of net metering applications).

Although a 110% limitation had previously been applied only to third-party systems, the proposed limit in the rule would apply universally. In discussing the proposal, the PUC said that this limit, "should apply to all new customer-generators as it more appropriately supports the intent of the AEPS Act." [emphasis added]

Aside for these provisions, the PUC proposes to update the rule to reflect the statutory provision that an alternative default service provider may assume the utility's default service obligation, and therefore would assume various net metering obligations.

The draft rule would also explicitly provide that the PUC would have authority to direct retail suppliers to offer net metering in certain circumstances.

"In particular, the Commission would have the authority to direct EGSs to offer net metering if the EGSs are acting in the role of default service provider," the PUC said.

The PUC also clarified in the rule that, for competitive supply customers whose EGS are not providing net metering service, such customers are still entitled to net metering for distribution service from the EDC. This clarification merely reflects current practice.