Understand Net Metering- Support LB 436

THE CONCEPT IS SIMPLE. First you need a customer-generator that has a generation resource such as a wind generator or solar panels and then you need to have them interconnected to their local electric provider (us).

If electrical generation by an individual customer-generator exceeds that customer’s power use at a residence, this power flows BACKWARDS onto the electrical system, turning the meter backwards. In essence, the utility and the consumer trade kilowatt hours at full retail value.

LINEMAN SAFETY. As required by LB 436, the customer generator will be required to have Underwriters Laboratories (UL) approved equipment that does not allow a system to deliver or backfeed energy into the distribution system if there is no energy flow in the distribution system (the line is dead). Many utilities will require a disconnect switch with viewable lockable features. Utilities will have the right to open and lock out the generator with the disconnect switch.

PURPA’s BEEN AROUND SINCE 1978. Without net metering legislation, or under the federal Public Utilities Regulatory Policy Act (PURPA), if a customer has renewable generation, a utility is REQUIRED to buy energy produced by a qualified customer generator at the utility’s avoided cost. Avoided cost is the cost the utility would pay for power from the utility’s traditional source of generation. Dawson PPD purchases power from Nebraska Public Power District. In 2008, Dawson PPDs avoided cost was 4.28¢ but this cost can be slightly different based on our summer and winter rates.

LB 436 was amended to read that 25 kW mandated capacity would allow a utility to permit larger systems and that the customer generator will pay for the interconnection costs. The customer would be required to pay for interconnection costs and the utility pays for the metering system. A State inspection will be required prior to interconnection and operation.

HOW IT WILL BE CALCULATED: Credit for excess generation is a monetary value based on the value of energy when it was generated (avoided cost of power supply). This credit will carry over month to month through an annual or seasonal period and paid out at the end of that designated period or it may be applied to future electric purchases. It is important to note that it will not be a kilowatt hour credit but will be a dollar amount for the kwh’s purchased by the utility from the customer generator.

Contact your senator and let him or her know you support LB 436 as proposed.