Solar and wind power fee generates flap
Gov. Mary Fallin came under fire last week after signing
a bill that will allow regulated electric utilities to
charge customers who generate electricity from rooftop
solar panels or small wind turbines.
The bill essentially creates a new customer class, as it will allow the Oklahoma Corporation Commission to establish higher base customer charge for customers who use solar or wind power. The higher charge will be used to defray infrastructure costs to send the excess electricity back to the grid. The new law does not affect Oklahoma residents who already have solar or wind turbines in place. The charge would be assessed to consumers who install wind turbines or solar panels in the future. Fallin issued an executive order April 21 to accompany the law, saying all executive entities will support all forms of energy, but that the essential element of the new plan is distributed generation. "Currently, approximately 350 Oklahoma individuals and businesses rely on distributed generation produced by small wind turbines or solar power generators," wrote Fallin in the order. "While these customers will not be affected by this bill, this number will grow significantly in the future. This is an exciting development, one this bill encourages." Hamid Vahdatipour, CEO of Lake Region Electric Cooperative, said this bill levels the playing field for all utility customers, because it is unfair for those who employ solar and wind power to not help pay for the infrastructure that carries that power. "We always try to do our rates based on the cost of service," said Vahdatipour. Basically, our cost of service tells us that just to have a meter available usually runs around $39 per month. If customers have solar panels or other energy sources, they're are not actually paying to recover the costs, and they're not paying for service availability. Other customers who don't use solar or wind are subsidizing those who do." Vahdatipour believes the law is fair, as it affects only new customers. "Lawmakers did not want to change the rules in the middle of the game," he said. "But they do want to make sure everyone is paying their fair share. Most people who use renewable energy receive tax credits, anyway." Rep. Mike Brown, D-Tahlequah, said he tried to introduce a bill seven or eight years ago that would set up renewable energy authority to provide low interest loans and tax credits for those who use solar or wind power. "This was back when the state had money, and I was going to take $30 million to set up a rural electric cooperative, similar to Hamid's, to be the authority over this pot, which would provide low interest loans and tax credits for solar or wind power. What it would do would allow at $15,000 credit or low-interest loan to install wind or solar power, and we'd take a percentage, somewhere between one-eighth and one-third of what was generated by that power to cover the costs of the distribution lines." Brown said he has yet to see a home with solar panels generate enough energy that it has to be sold back to the grid, and he believes this law is a pre-emptive measure to cover the costs for infrastructure in the future, when more companies will be constructing wind and solar power companies. "The reason for this bill is pre-emptive," said Brown. "Out in California, you've got billionaires building ginormous solar and wind power plants. The idea is that they want to expand capacity because the demand is so great." Brown did not vote on the measure, because he wasn't sure how much the fee was going to be, and whether it would be fair. "Is it going to be something [someone who has installed solar or wind power] can overcome by using this form of energy?" asked Brown. "If its a move to cut off the legs of a fledgling industry, I disagree with it. It has to be a fair price, but everyone has to help pay for the grid." tsnell@tahlequahdailypress.com http://energybiz.com/article/14/05/solar-and-wind-power-fee-generates-flap |