Kentucky Regulator Launches Proceeding to Implement Net Metering Changes

The Kentucky Public Service Commission opened a docket on July 30 to implement legislation enacted in March that redefined net metering by directing state regulators to set the compensation rate for solar customers through a ratemaking process.

Under the law, retail electric suppliers are entitled to recover the costs incurred to serve customer-generators, including fixed and demand-based charges, through rates. The bill raises the maximum capacity of eligible systems to 45 kilowatts from the previous level of 30 kilowatts. Existing systems are grandfathered for 25 years under their current net metering program, which credits customers for excess generation at the utility’s retail rate.

The new law defines net metering as the difference between the dollar value of electricity that is fed back to the grid by a customer-generator over a billing period at prices determined by the commission and the value of power consumed over the same period, priced under a retail electric utility’s tariff rate.

The commission is seeking information from stakeholders as it considers broad issues of implementing the law for individual utilities. Comments are due by Sept. 20. A public hearing will be held on Oct. 1.