MICHIGAN PUBLIC SERVICE COMMISSION

Net Metering and Interconnection Update

June 25, 2011

Michigan Energy Fair

MICHIGAN PUBLIC SERVICE COMMISSION

Definitions

Net Metering: Customer generated electricity offsets electricity provided by the utility.

Interconnection: Linking the generating facility to the utility’s electric delivery system (grid)

MICHIGAN PUBLIC SERVICE COMMISSION

The Past

– Voluntary

– Low Interest

– Complicated

– Inconsistent

The Current

– Mandated by law

– Awareness

– Net Metering on bill

– Standardized

MICHIGAN PUBLIC SERVICE COMMISSION

Standardized by Size

MICHIGAN PUBLIC SERVICE COMMISSION

Net Metering

• Billed for Net UsageELECTRICITY FROM GRID

(ELECTRICITY SENT TO GRID)

NET USAGE

• Per law signed in October 2008, State government has established a statewide program

MICHIGAN PUBLIC SERVICE COMMISSION

True Net Metering

• ≤ 20 kw generation

• $25 fee is required

• If excess meter is required it will be provided by utility (unless >1M customers)

• CR the full retail rate for all excess kwh

• No interconnection costs

MICHIGAN PUBLIC SERVICE COMMISSION

Net Metering ExampleMonth One

Total Usage 500

Purchased 450

Generated 50

At 9 cents a kWh:

Bill is $40.5

+ per meter charges

(used all that was

generated, did not send any to grid)

Month ThreeTotal Usage

500

Purchased 500

Generated 0

9 cents a kWh = $45

less $13.5 from prior

month credit = $31.5 +

per meter charges

Month TwoTotal Usage 550

Purchased 300

Generated 400

Credit = 150 net usage (sent to utility) * 9 cents = $13.5

Still billed for full value of per meter charges (cr applies to kWh usage only)

MICHIGAN PUBLIC SERVICE COMMISSION

Modified Net Metering

• >20 kW to 150 kW generation

• CR the generation portion of rate

• No standby charges

MICHIGAN PUBLIC SERVICE COMMISSION

Category Three

• Methane Digester

• >150 to 550 kW

• Standby charges applied

MICHIGAN PUBLIC SERVICE COMMISSION

Restrictions of Net Metering

• Limited participation– .5% Category One– .25% Category Two– .25% Category Three

• Limited Generation

MICHIGAN PUBLIC SERVICE COMMISSION

Interconnection

• Category One: 20 kW and under

• Category Two: >20 kW to 150 kW

• Category Three: >150 kW to 550 kW

• Category Four: >550 kW to 2 MW

• Category Five: >2 MW

MICHIGAN PUBLIC SERVICE COMMISSION

Interconnection Fees

  Application review

Engineering review Distribution study Distribution Testing & inspection

upgrades

Category 1 $75 $0 $0 $0 $0

Category 2 $100 $0 Actual or maximum approved by commission

Actual or maximum approved by commission

Actual or maximum approved by commission

Category 3 $150 $0 Actual or maximum approved by commission

Actual or maximum approved by commission

Actual or maximum approved by commission

Category 4 $250 Actual or maximum approved by commission

Actual or maximum approved by commission

Actual or maximum approved by commission

Actual or maximum approved by commission

Category 5 $500 Actual or maximum approved by commission

Actual or maximum approved by commission

Actual or maximum approved by commission

Actual or maximum approved by commission

MICHIGAN PUBLIC SERVICE COMMISSION

Update to Net Metering and Interconnection

MICHIGAN PUBLIC SERVICE COMMISSION

Scorecard

MICHIGAN PUBLIC SERVICE COMMISSION

Number of Customers

Federal Incentives• Energy Efficient Mortgages

– Renewable Energy: Solar

• Tax Credit– Renewable Energy: Biomass

• 30% Tax Credit– Renewable Energy: Multiple

• Personal Exemption

MICHIGAN PUBLIC SERVICE COMMISSION

Installations by Technology

Federal Incentives• Energy Efficient Mortgages

– Renewable Energy: Solar

• Tax Credit– Renewable Energy: Biomass

• 30% Tax Credit– Renewable Energy: Multiple

• Personal Exemption

MICHIGAN PUBLIC SERVICE COMMISSION

Capacity and No. of Customers

Federal Incentives• Energy Efficient Mortgages

– Renewable Energy: Solar

• Tax Credit– Renewable Energy: Biomass

• 30% Tax Credit– Renewable Energy: Multiple

• Personal Exemption

MICHIGAN PUBLIC SERVICE COMMISSION

Net Metering Participants

Federal Incentives• Energy Efficient Mortgages

– Renewable Energy: Solar

• Tax Credit– Renewable Energy: Biomass

• 30% Tax Credit– Renewable Energy: Multiple

• Personal Exemption

System Locations

December 2010

Federal Incentives• Energy Efficient Mortgages

– Renewable Energy: Solar

• Tax Credit– Renewable Energy: Biomass

• 30% Tax Credit– Renewable Energy: Multiple

• Personal Exemption

res

Federal Incentives• Energy Efficient Mortgages

– Renewable Energy: Solar

• Tax Credit– Renewable Energy: Biomass

• 30% Tax Credit– Renewable Energy: Multiple

• Personal Exemption

MICHIGAN PUBLIC SERVICE COMMISSION

• Michigan.gov/NetMetering

• Katie Trachsel, CPA

– TrachselK@Michigan.gov

– (517)373-1808