The Public Utility Commission this week adopted the rules for how custom-generators – who use technologies such as solar panels or fuel cells – connect to the electric distribution system.

“The regulations are designed to remove the barriers that may have prevented small alternative electric generators from establishing an interconnection to the electric distribution system,” said Commission Chairman Wendell F. Holland. “By finalizing a package of standards that govern the custom-generators, the Commission moves closer to the completion of a significant portion of the Alternative Energy Portfolio Standards Act. We continue to work toward full implementation of this Act in order to create a better environment and economy in Pennsylvania.”

The Commission voted unanimously to set the standards for customer-generators who desire to establish interconnection with the electric distribution system. The interconnection procedures are designed to streamline the regulatory process and encourage custom-generators to enter the market.

Customer-generators must apply to the electric distribution company (EDC) in order to be connected to the system. The interconnection standards establish review procedures for the EDCs, policies for dispute resolution and technical standards. The standards also allow for a single point of interconnection for a location with multiple energy production devices.

The rules are now sent to the General Assembly, Independent Regulatory Review Commission, the Attorney General and the Governor’s Budget Office for review.

The interconnection standards work in conjunction with the net metering rules to simplify and regulate the manner in which customer-generators work with utilities. On June 22, 2006, the Commission adopted net metering standards which govern how custom-generators are compensated for generation they provide to the electric utility distribution system.

Both rulemaking procedures will result in additional options for consumers allowing them to take control of their energy requirements using alternative energy sources.

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

Link: PUC Adopts Net Metering Rule for Alternative Energy Portfolio Standards

8/18/2006