Pennsylvania PUC Approves Modified Net Metering Regulations
June 10, 2016
On Thursday, June 9, 2016, the Pennsylvania Public Utility Commission (PUC) voted (4-0) to modify its proposed net metering regulations to address the objections raised by the state’s Independent Regulatory Review Commission (IRRC).
The PUC made one significant modification: it removed the proposed 200% size limitation on net metering projects. This was done in response to IRRC’s objections. As you may recall, IRRC concluded, in reviewing the prior proposal, that the PUC does not have the statutory authority to adopt that size limitation. Under its rules, IRRC was required to vote on the regulations as a package. So, once IRRC concluded that the PUC lacked statutory authority on the size limitation, IRRC was required to reject all of the regulations.
The regulations, as modified, will now be resubmitted to IRRC (and the designated Legislative Committees). The modified regulations address numerous issues related to net metering standards. They can be approved, deemed to be approved, or disapproved. If approved, the regulations will become effective upon publication in the Pennsylvania Bulletin.
That being said, please keep in mind that the PUC could also start a new rulemaking related to net metering. It has been suggested – by Vice Chairman Place in the February 2016 vote on the net metering regulations – that the PUC should focus on revaluating the “retail value” standard used for determining the payments for excess generation under the AEPS Act. 73 P.S. § 1648.5; 52 Pa. Code § 75.13(d). In doing so, he orally explained that definition of “retail value” could be changed (in the future) by regulation. Both Chairwoman Brown and Commissioner Powelson orally agreed with Vice Chairman Place that the definition of “retail value” should be investigated in the future by the PUC.
This Eckert Seamans Energy and Utilities Blog is intended to keep readers current on matters affecting businesses and is not intended to be legal advice. If you have any questions, please contact Carl Shultz at (717) 255-3742 – cshultz@eckertseamans.com – or Dan Clearfield at (717) 237-7173 – dclearfield@eckertseamans.com.
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