COLORADO - PUC Invites Public Comment on Proposed Net Metering, IC Rules

The Colorado Public Utilities Commission (PUC) has issued a notice of proposed rulemaking (NOPR) pertaining to the implementation and regulation of renewable-energy standards as required by the November 2004 passage of Amendment 37. The proposed rules (Docket No. 05R-112E) apply to providers of retail electric service that serve more than 40,000 customers. Under terms of Amendment 37 and the related statute, the PUC must establish the following by March 31, 2006:

• definitions of eligible renewable-energy resources that can be used to meet the standards;
  
• standards for the design, placement and management of electric-generation technologies that use eligible renewable-energy resources to ensure that the environmental impacts of such facilities are minimized;
  
• electric-resource standards for renewable-energy resources;
  
• a system of tradable renewable energy credits that may be used by a qualifying retail utility to comply with this standard;
  
• a standard rebate offer program;
  
• policies for the recovery of costs incurred with respect to these standards for qualifying retail utilities subject to PUC rate regulation; and
  
• a maximum retail rate impact for this section of $0.50 per month for the average residential customer of a qualifying retail utility.
  

The PUC held two informal workshops in March 2005 and developed proposed rules based on the written and oral comments received. The proposed rules, issued March 23, 2005, include two possible approaches to interconnection and two possible approaches to net metering.

Net metering is defined in the proposed rules as "the ability of a single electric meter to spin bi-directionally in order to net consumption against generation on a kilowatt-hour basis.” The first option allows each qualifying utility to file an application specifying how it will comply with the proposed rules, including the proposed net-metering rules. The second option provides specific net-metering requirements and standards that all qualifying utilities must follow.

Likewise, the first option for interconnection allows qualifying utilities to file an application specifying how they will comply with the proposed rules. The second option details three levels of interconnection for on-site solar systems, and the review process by qualifying retail utilities for applications for each level of customer-generator facilities:

• Level 1: inverter-based customer-generator solar facilities, which have a power rating of 10 kW or less
  
• Level 2: customer-generator facilities with a power rating of 2 MW or less
  
• Level 3: customer-generator facilities, which do not qualify for either Level 1 or Level 2 interconnection review procedures
  

For more information on Colorado's proposed net metering and interconnection rules, see the PUC’s NOPR. A hearing on the proposed rules will be held July 11-14, 2005, at the PUC's office in Denver.

Stakeholders may submit written comments and may present these comments orally unless the PUC deems oral comments unnecessary. Written comments should be submitted in both paper and electronic format no later than May 18, 2005. Reply comments should be submitted by June 15, 2005.