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Public utilities

Vermont Public Utility Commission Orders Investigation into Net-Metering Scheme

Strategic Insights

— 1 min read

The Vermont Public Utility Commission (PUC) has issued an order opening a proceeding to investigate a net-metering scheme aimed at mitigating constraints in the Sheffield-Highgate Export Interface (SHEI) area. The initiative, proposed by the Department of Public Service, involves a one-time upfront collection of $75 per installed kW for all net-metering projects located in the SHEI. The funds collected would be apportioned to the Vermont electric distribution utilities based on the impact of SHEI constraints on each utility.

Key Takeaways:

  • The PUC has adopted the Hearing Officers' recommendation to close the case and proceed with a formal regulatory review of the Department's proposed Sheffield-Highgate Export Interface (SHEI) constraint mitigation grid adjustor.
  • The Department proposes a one-time upfront collection of $75 per installed kW for all net-metering projects located in the SHEI, to be used to offset the economic harm to ratepayers associated with adding more generation in the SHEI.
  • The Vermont Electric Cooperative (VEC) asserts that the calculation of the amount of economic harm caused by additional generation in the SHEI must reflect the fact that VEC must pay for such energy at the higher net-metering rate instead of receiving electricity from the existing Kingdom Community Wind project at no additional cost.
  • AllEarth Renewables, Inc. and Green Mountain Power Corporation contend that a rulemaking is the more appropriate way to implement the Department's proposal, arguing that 30 V.S.A. § 8010 establishes a rule-based net-metering program and the Department's proposal is a change to the net-metering program.
  • The Department recommends considering SHEI issues along with a comprehensive reform of net-metering compensation to fully address the issues raised by the SHEI constraints.

Statistics:

  • The proposed fee would be approximately $37,300 for a 500 kW project.
  • The funds collected would be apportioned to the Vermont electric distribution utilities based on the impact of SHEI constraints on each utility.
  • The Department proposes that the recalculation of the grid adjustor be conducted through an open workshop process, with a timeline for recalculation to be determined (whichever comes first).

Sources:

  • Vermont Public Utility Commission. (2021, June 22). STATE OF VERMONT PUBLIC UTILITY COMMISSION Case No. 20-3304-PET Petition of the Department of Public Service to open a proceeding to investigate a net-metering Sheffield-Highgate Export Interface ("SHEI") constraint mitigation grid adjustor.

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