CPS Energy solar formula not so bright

April 15, 2013 | By Barbara Vergetis Lundin

Texas-based CPS Energy is "refining" the formula it uses to incorporate and pay for increasingly popular rooftop solar installations driven by generous rebates and net metering. The new formula takes into account the costs to maintain and upgrade its electric transmission and distribution systems in a way that is equitable for all customers, according to the company.

The current net metering program places a higher cost burden on customers without solar systems so CPS Energy is planning to launch SunCredit, a price per kilowatt-hour program that will reflect the annual average forecast market price of solar.

The change will adjust the amount those customers are paid per kilowatt hour for the energy their solar systems produce. Currently, CPS Energy pays an average 9 cents per kWh, but that does not take into account the costs to maintain and expand other infrastructure. For 2013, the SunCredit is proposed at 5.6 cents per kWh.

"Costs to install photovoltaic systems continue to fall, making them increasingly available for more customers. And with that growth, the costs of the utility infrastructure are borne by fewer customers -- those who don't have solar systems," explained Cris Eugster, executive vice president and chief strategy and technology officer, CPS Energy. "To ensure that solar customers continue to enjoy the benefits of any distributed energy they produce, and pay a fair share of the infrastructure that they rely on, we're taking a different approach."

Using CPS Energy's current energy charges, a residential customer using the average 1100 kWh per month of electricity would pay April's current rate of 9.9 cents for what they use, a total of $108.90. Assuming the customer's solar system generated 870 kWh, the SunCredit of $48.72 would be applied, resulting in electric charges of $60.18 for the month.

Previously, the customer would have off-set their retail rate of 9.9 cents for each kWh, which did not take into account infrastructure costs.

Clean energy activists say the cuts will "cripple the local solar industry," according to mysanantonio.com.

"There was zero consultation with the solar industry in the development of this proposal," Lanny Sinkin, executive director of the advocacy group Solar San Antonio, told mysanantonio.com. "They're going to kill the solar industry."

In a last minute meeting organized last week, Lisa Lewis, a CPS Energy spokesperson told activists, "We still will (pay them); we will just pay them less," according to the website.

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