From the KRC web site
Closing out 2024, KRC filed an appeal on behalf of the Kentucky Solar Energy Society and Kentuckians for the Commonwealth of an order from the Kentucky Public Service Commission (“PSC”) allowing Duke Energy Kentucky to close its “Net Metering I” tariff, and instead offer rooftop solar customers only a lower rate of compensation for all of the energy they create for the grid.
Prior to changes effected by the General Assembly through Senate Bill 100 in 2019, all utilities in Kentucky netted generation and usage by a customer-generator over a billing period, and then credited the customer any excess energy created over that period in the form of a kilowatt-hour (“kWh”) credit applied toward energy consumed in the next billing period. The 2019 statutory revisions changed the manner in which the energy credit for net metering customers would be quantified (“Net Metering II”) – from a “kilowatt-denominated energy credit,” to a “dollar-denominated bill credit” to be carried forward to the next billing period.
The Commission’s order on Duke’s application, however, would allow them to take this a step further, and instead offer a lower dollar-denominated credit for all energy generated and sent to the grid by solar customers, while continuing to charge them a higher energy charge (plus other kWh-based charges on the bill) for all energy consumed in a billing period. This change, while subtle, effectively ends net metering for new solar customers. Sometimes referred to as “instantaneous netting” by utility companies, the change has a dramatic effect on the economics of rooftop solar, discouraging customers from installing solar panels and creating clean energy for the grid.
The Complaint, filed with the Franklin Circuit Court, challenges the legality of the decision and asks the Court to require net metering be credited in a manner consistent with Kentucky law and prior PSC orders. We also alleged other errors in how the PSC calculated the dollar amount solar customers would be paid by Duke for the energy they create, including failing to compensate them for the environmental and climate benefits of solar.
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