News

NCUC Order Addresses Multiple Net-Metering Issues
July 28, 2006

The NCUC adopted net metering in October 2005 (Docket No. E-100, Sub 83). In December 2005, the North Carolina Sustainable Energy Association (NCSEA) filed a motion for reconsideration, requesting that the commission (1) eliminate a requirement that customers switch to a time-of-use tariff, (2) eliminate the prohibition of battery storage, (3) declare that generators own all renewable-energy credits, (4) add hydropower as an eligible technology and (5) address provisions in Duke Energy’s and Progress Energy’s net-metering riders inconsistent with the state’s interconnection standards for small generators. North Carolina is the only state that requires customers to switch to a time-of-use tariff in order to take advantage of net metering. In its most recent order, issued July 6, 2006, the NCUC refused to eliminate this provision, noting that this requirement “addresses parties’ concerns about potential discrimination and cross-subsidies between those customers who participate in net metering and those who do not.” However, the NCUC clarified that on-peak generation may be used to offset off-peak consumption (but not vice versa). Previously, the utilities’ net-metering tariffs and riders only allowed excess on-peak production to be used to reduce on-peak consumption and excess off-peak production to be used to offset off-peak production. The NCUC directed utilities to amend their tariffs and riders to first apply excess on-peak generation against on-peak consumption and excess off-peak generation against off-peak consumption, and then to apply any remaining excess on-peak generation against any remaining off-peak consumption during a monthly billing period.

For further information, please see http://www.ncsc.ncsu.edu/news/news_story.cfm?ID=260.