Comments on the Recent BCUC Net Metering Decision

There was a recent decision by the British Columbia Utilities Commission (BCUC) regarding a BC Hydro Application on Net Metering that is of serious interest to all solar energy businesses and users. As such, we decided to interrupt our regular blogging schedule to talk to you about these results and what they mean.

We decided to reprint a small part of the British Columbia Hydro and Power Authority Application to Amend Net Metering Service Under Rate Schedule 1289 Decision below, and give you our comments in brackets. The excerpt below may be found in its entirety online, and this excerpt is from page ii.

"Following a full review of the evidence, arguments, and letters of comments received the Panel makes the following determinations, among others: 

1. The proposed amendment to the Energy Price from 9.99 cents per kWh to an amount that would be updated every January 1 based on the daily average Mid-C prices for the previous calendar year is approved. The amended Energy Price will apply to all customers effective the date of this Order, except for customers who are eligible for the Transition Energy Price. The Panel is of the view that the energy delivered from Net Metering customers should be compensated at a rate that matches the value of energy to BC Hydro and finds the Mid-C value proposed by BC Hydro best approximates this value. 

[This is not great news. The new rate is 3.99 cents per kWh.]

2. All Net Metering customers accepted into the Net Metering Program as of April 28, 2019 shall be eligible to receive the Transitional Energy Price of 9.99 cents per kWh for any surplus energy payments made from April 29, 2019 until April 30, 2024. Weighing the importance of maintaining rate stability through some accommodation to existing customers against extending the cost shifting period to nonparticipants, the Panel considers a five-year Transitional Energy Price to be a reasonable accommodation and does not represent undue discrimination. 

[This is very good news for people who have already done their solar installations!]

3. The proposal to limit the output of a Net Metering Generating Facility to not exceed 110 percent of the customer’s annual load is rejected. BC Hydro is directed to remove the section of the proposed tariff which assesses the proposed Generating Facility based on Annual Load. In the Panel’s view BC Hydro has not satisfactorily demonstrated that the Proposed Eligibility Restriction is required to mitigate significant or meaningful harm. The Panel is concerned that this provision in the absence of a more fulsome review and evaluation of the Net Metering Program may introduce harm of its own. 

[YES! This is a win, although the value of the buyback is not at a very good rate. The good news is that there is no limit to how much electricity people can produce and that BC Hydro has to pay them for it.]

4. All Net Metering customers shall be assigned a March 1 default Anniversary Date with one opportunity to choose an alternative date thereafter. Having a March 1 Anniversary Date allows most Net Metering customers the best opportunity to offset their BC Hydro energy costs by applying Generation Account balances that have been built up over the previous spring, summer and early fall. Where this is not appropriate customers are free, on one occasion, to analyse their generating history and choose a date that better suits their needs."

[This is CRUCIAL! It means that people who install solar power systems later in the year won't be penalized by their energy getting "paid out" and at the worst time of year, no less.]

Conclusion

This recent decision is good for solar energy customers. A few aspects could have been better, but overall it's good.

The Anniversary Date is now March 1 by default, but customers may choose another date if they prefer. The Anniversary Date, which happens once per year, is when customers who have credits remaining on account with BC Hydro receive a payment from BC Hydro. 

NetZero Solar is leading the way toward effective and more eco-friendly energy alternatives for residential and commercial clients using solar energy on Vancouver Island. NetZero is based in Victoria, BC, Canada, but offers their services as far as Campbell River and throughout the Lower Mainland.

If you have any questions about this article or you would like to talk to us about solar energy or the recent BCUC Decision, please feel free to contact us.