The Public Utility Commission this week proposed rules governing how small alternative electric generators – who use technologies such as solar panels or fuel cells – connect to the electric distribution system and requirements for net metering.

The interconnection standards are to be used for customer-generators who wish to establish interconnection with an electric distribution company’s distribution system. The interconnection procedures are designed to streamline the regulatory process and encourage manufacturers and developers to enter the market.

The net metering requirements set a standard for how electric generation suppliers and electric distribution companies meter and compensate residential or small commercial customers who generate electricity using alternative energy sources as defined in the Act.

The rules on net metering and interconnection are designed to simplify the manner in which customer-generators work with utilities. It will result in a reduction in the amount of energy required from generation plants and replace it with more environmentally-friendly energy.

AEPS requires that a certain percentage of all electric energy sold to retail customers be derived from alternative energy sources such as solar, wind, hydropower, geothermal, biomass, and demand side management resources. The law applies to both electric distribution companies and electric generation suppliers who must demonstrate their compliance on an annual basis. The level of alternative energy required gradually increases according to a 15-year schedule.

The first standards for the Act – demand management and energy efficiency – were approved in September, fulfilling a major component of implementing the Act. The Commission was obligated under the Act to issue a proposed rule on net metering and interconnection by November 30.

In order to expedite approval of Act 213 requirements, a working group, which included numerous stakeholders, was formed to meet, discuss the issues and provide feedback on the development of the standards. With some discussion already on the table, the Commission enters the rule-making phase after already receiving some feedback.

The Commission encourages parties to comment on the proposed rules. Interested parties will have 60 days to submit comments after the advanced notice of proposed rulemaking has been published in the Pennsylvania Bulletin.

For more information, visit the PUC’s Alternative Energy Portfolio Standard webpage.

11/11/2005