Utah: Rocky Mountain Power & Solar Industry Advocates agree on alternative Net Metering program

The Public Service Commission (PSC) of Utah unanimously approved a settlement deal, reached between Rocky Mountain Power and a group of solar industry advocates, which ends the utility’s full retail credit Net Metering (NEM) program. This effectively means that new solar customers will no longer be reimbursed at a full 1:1 credit for the extra energy they export back to the grid. The Utah Solar Energy Association, who was a signatory to the settlement deal commented that “this compromise, which comes with challenges, maintains solar as an affordable and secure investment, encourages self-reliance and promotes choice in our energy market.”

Key Provisions

• The net metering cap date will be 11/15/2017, whereby all existing customers (who have submitted a completed application) before that date will be grandfathered through 12/31/2035.
• Grandfathered customers will continue to receive the full 1:1 credit.
• The new full retail rate averages 9.2 cents/kWh, which will last for the next three years
• Export credit proceeding, a new docket will be opened to determine the appropriate long-term rate structure and export rate for solar sent to the grid. The target end date for this docket is 10/1/2020.

What's the net effect?

Customers that have already adopted solar (or submitted their application by 11/15/2017) are grandfathered and will not be affected. A new export credit proceeding docket will be opened immediately to determine the appropriate long-term rate structure and export rate for solar sent to the grid. This is expected to be a three-year proceeding, with the target end date slated for 10/1/2020. During this “transitional period,” Utah’s Public Service Commission will look at the value of exporting solar to the grid. After the three-year period, the research will be used to create a new program that will succeed the current NEM policy. Transition customers that submit their application after 11/15/17 through the end of the Export Credit Proceeding in 2020, will remain in their respective rate classes, not be subject to discriminatory charges, and have a fixed rate structure until 12/31/32.

Updates made in Energy Toolbase

• We have all the current Utah - Rocky Mountain Power rates listed in our database.

• Users can model any type of NEM 2.0 program export credit in Energy Toolbase.

Links

• Utah Solar Energy Association, Rocky Mountain Power Settlement Detail, Utah Solar Energy Association 
• Utah regulators approve end of net metering, beginning of new deal for Rocky Mountain Power Solar Customers, The Salt Lake Tribune