Kentucky - Support net metering reform | Council For Citizens Against Government Waste

Kentucky - Support net metering reform

State Action

February 13, 2019

Kentucky General Assembly
State Capitol
Frankfort, KY 40601

Dear Legislators,

On behalf of the 17,217 members of the Council for Citizens Against Government Waste (CCAGW) in Kentucky, I urge you to support Senate Bill 100.  This legislation will reform Kentucky’s net metering law and provide certainty and stability to the Commonwealth’s energy market.  The issue of net metering requires an approach that brings together legislators, net metering customers, energy consumers, the solar industry, and private and public electric utilities.  Senate Bill 100 fulfills this approach. 

Currently, customer-generators are reimbursed by electric utilities at a 300 percent premium for excess energy.  This practice causes higher utility bills for all Kentucky ratepayers, as the cost shifts to non-generating consumers.  Consumers who do not install solar panels on their premises, who are often financially struggling or on fixed incomes, subsidize wealthier solar customers and the lucrative solar industry.  As the number of solar consumers grows, utility bills will keep increasing for all Kentuckians.

This legislation will reform net metering to minimize these increasing utility bills.  Current private solar net metering customers will be grandfathered under existing law.  In the future, the Kentucky Public Service Commission will be tasked with assessing the value of excess energy that is generated by solar customers and will find a compromise between the rates preferred by the solar industry and the rates preferred by Kentucky’s electric utilities.  This neutral approach is needed for net metering, just as it is used for all other rates set by the Public Service Commission. 

Sound energy policy does not play favorites but allows all forms of energy to compete in a free market.  Senate Bill 100 will ensure that entities that generate excess energy will be fairly compensated, while all Kentucky ratepayers will be protected from unnecessarily increased utility bills.



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