Regulator Issues Final Order Addressing How Retail Suppliers Must Treat, Account for Net Metering Customers

The Connecticut PURA issued a final order addressing, on an interim basis, obligations of retail suppliers and utilities with respect to net metered customers, which defers to a working group certain retail supplier obligations.

The final order departs from a draft decision, first reported by RetailEnergyX.com, which would have established new obligations applicable to retail suppliers serving net metered customers.

The draft would have required that suppliers shall cash out a customer’s kWh bank when providing generation service at the end of the annual banking period. Notably, kWh accrued in the bank could have resulted from periods when the customer was served by an LSE other than the current supplier serving the customer at the end of the banking period, yet the current supplier would be responsible for any net kWh in the bank. Under the draft, suppliers serving customers at the end of the annual net meter banking period would have been required to reimburse those customers for net kWh at the wholesale cost.

The Retail Energy Supply Association had argued that the EDCs receive the benefits of the energy produced from net metered customers and that suppliers do not. Therefore, suppliers should only be responsible for reimbursing a customer for the period of time that the customer is served by the supplier, and not for the entire annual banking period simply because a supplier is serving the customer at the end of that period, RESA said. RESA requested that the Authority delay finalizing the supplier-related net metering standards until a working group reviews the matter and issues recommendations.

PURA's final order refrained from adopting specific obligations for retail suppliers, and instead set the matter for a working group process.

Noting concerns raised by retail suppliers and RESA, PURA agreed to establish a working group to address, among other issues, discrepancies between the ISO-NE settlement and utility billing processes and to allow for direct assignment of net energy to load-serving entities

The Authority will require the EDCs to conduct the working group and develop joint recommendations regarding the following:

• Reconciling the difference between the EDC load settlement and billing processes;

• Direct assignment of production from net meter customers to load serving entities;

• Alternative reimbursement options;

• Peak/off-peak banking and crediting;

• Mid-cycle cash out options;

• Supplier tracking of net energy;

• Alternate definition of avoided wholesale cost;

• Tracking and reporting of avoided revenue and net metering production;

• Consumer education; and,

• Estimated cost to implement processes to support the recommendations of the working group.

Retail supplier net metering obligations will be addressed through a working group and PURA will rule on these requirements after the working group completes its work

While deferring most issues to the working group, PURA did order that UI will no longer cash out the net meter kWh bank when a customer switches electric suppliers. Effective October 1, 2017, UI will cash out a customer’s net meter kWh bank at the end of the annual net metering period. When switching suppliers, UI will maintain the kWh bank and apply banked kWhs against the customer’s energy-based delivery and generation supply charges until the end of the annual banking period.

Retail suppliers will not cash out the net meter kWh bank when a customer switches electric suppliers

Retail suppliers are not obligated to serve net metering customers, PURA held

Docket 15-09-03