Press Release

PUC Initiates Rulemaking Process to Revise Net Metering and Interconnection Regulations to Reflect Amendments to Alternative Energy Portfolio Standards

Published on 7/25/2007

Filed under: Electric

HARRISBURG -- The Pennsylvania Public Utility Commission (PUC) today began the rulemaking process to revise its net metering and interconnection regulations to reflect the requirements of Act 35 of 2007, which recently amended a number of provisions of the Alternative Energy Portfolio Standards (AEPS) Act.

On July 17, 2007, Gov. Edward Rendell signed House Bill 1203 into law as Act 35, part of the Governor’s Energy Independence Strategy.

The PUC today approved a motion of Commissioner Kim Pizzingrilli, which noted that the Commission previously promulgated final regulations related to net metering and interconnection standards. 

“The statutory amendments necessitate changes to the Commission’s regulations,” said Commissioner Pizzingrilli in her motion.  “The Commission will begin the process of promptly revising its net metering and interconnection regulations to reflect the requirements of Act 35.  However, because the Act takes effect immediately, its provisions will be given immediate effect while the rules are being revised.

“Electric distribution companies will be required to amend and file revised net metering tariffs with the Commission.  They should also begin to apply the new compensation standard beginning with the first full billing period after the effective date of Act 35.”

The purpose of the Commission’s action today is to initiate the rulemaking process and to ensure that parties are informed of the statutory changes.  The following briefly describes some of the changes to definitions and the frequency of compensation for customer-generators: 

• Revises the definition of “customer-generator” to increase the capacity limit on non-residential systems from one to three megawatts generally, and from two to five megawatts for those systems that operate in parallel with the grid during emergencies or that maintain critical infrastructure.  
• Revises the definition of “net metering” to include a restriction on virtual meter aggregation.
• Revises the frequency of when customer-generators are to be compensated for excess generation to an annual basis at the full retail rate, as opposed to the current monthly standard.

Electric distribution companies are directed to work with Commission staff to revise their currently effective net metering tariffs to reflect the requirements of Act 35. 

Earlier this year, the Legislative Budget and Finance Committee unveiled a performance audit of the PUC, saying the Commission “made good progress” in implementing the requirements of the Alternative Energy Portfolio Standards Act.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket Nos. M-00051865, L-00050174, L-00050175

Contact:

• Tom Charles
  Director of Communications
  717-787-9504
  thcharles@pa.gov