Pennsylvania Commission Votes To Significantly Modify Net Metering Program

February 12, 2016

The Pennsylvania Public Utility Commission voted (3-2), on February 11, 2016, to significantly revise certain regulations pertaining to net metering in Pennsylvania.

Key changes include:

• A 200% size limitation on net metering projects with the exception of anaerobic digesters used by the customer to comply with the Department of Environmental Protection’s Chesapeake Watershed Implementation Plan or to comply with the Nutrient Management Act, 3 Pa.C.S. §§ 501, et seq.
• Clarification of the virtual meter aggregation language which requires these projects to have generation directly connected to a source of demand (such as a house).

Many commenters, and the dissenting Commissioners, believe that the imposition of these requirements are beyond the PUC’s statutory authority.

It is unclear, however, if the regulations will be approved by Independent Regulatory Review Commission (IRRC) or challenged in the Courts. These regulations will only become final once approved by IRRC and published in the Pennsylvania Bulletin.

During the discussion of these regulations, it was signaled that the PUC may consider changing the price paid by Electric Distribution Companies (EDCs) for excess generation. The statute provides that a customer-generator “shall receive full retail value for all energy produced on an annual basis.” 73 P.S. § 1648.5. The PUC interpreted this provision as meaning the EDC’s price to compare (PTC), 52 Pa.Code § 75.13(d), which (by definition) is higher than the wholesale market price. It was, however, suggested that the use of the PTC could be reviewed in the future by the PUC.

The rulemaking materials can be found on the PUC website at Docket No. L-2014-2404361 and at this link: https://www.puc.pa.gov/pcdocs/1269782.doc. They can also be found on IRRC’s website at Regulation #57-304 and at this link: https://www.irrc.state.pa.us/regulations/RegSrchRslts.cfm?ID=3071.

If you have any questions on the Impact Fee, please contact Carl Shultz at (717) 255-3742 – cshultz@eckertseamans.com – or Dan Clearfield at (717) 237-7173 – dclearfield@eckertseamans.com.

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.

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