The past year saw the PUC update the net metering compensation and adopt revisions to three rules (5.100 – Net-Metering, 5.400 – Section 248 CPGs, 5.500 – Interconnection). REV was an active participant in all of these proceedings. While REV won incremental improvements in several of the rulemaking cases, the PUC has generally continued to shift the regulatory playing field against new renewable development and continued to reduce net metering compensation, highlighting the need for Legislative action.
Net-Metering Biennial Update
In April, as part of the net-metering biennial update, the PSD recommended reducing the “adjustors” for new net metering systems by 2 cents/kWh. REV objected vigorously to the proposal, pointing out that it would save Vermonters just 23 thousandths of a cent/kWh or less than $2/year for a household with a 700 kWh/month usage. While the recommendation provided little tangible benefit to Vermont ratepayers at large, it significantly harmed Vermonters looking to join the net metering program. Nonetheless, the PUC accepted the Department’s recommendation uncritically, implementing new rates in September.
Rulemaking
Revisions to three rules that have been in the rulemaking process for multiple years – Rules 5.100, 5.400, and 5.500 – went into effect in March of this year. Rule 5.100 made preferred siting criteria more restrictive and changed the compensation rate received for system expansions of larger than 15 kW but kept intact the basic net metering structure rather than adopting an “avoided cost” model that the PSD advocated from. Rule 5.400 eliminates the intervention thresholds for granting adjoining landowners party status in Section 248 cases while Rule 5.500 included some positive changes including replacing the mandatory “Fast Track” screening with a waivable “Preliminary Review” and setting fees and procedures based on export capacity rather than nameplate capacity.
See more about the impacts of these rule changes in REV2024 Recap: Review of New PUC Rules 5.100, 5.400, 5.500, and 2.100.