A Brief History on Recent Net Metering Decisions at the State Level
In 2023, Wisconsin utilities proposed to dramatically change Net Energy Metering (NEM) policies in the areas they provide energy. Such changes would have reduced the financial benefits for consumers with solar arrays at their homes or businesses. These proposals were ultimately rejected by the Public Service Commission of Wisconsin (PSC), however, the Commission agreed to gather more information in a separate statewide investigatory docket. RENEW staff wrote a blog on this topic last November.
This past March, the PSC reopened an existing investigation into parallel generation, also defined as consumer-generated electricity, to direct the future of NEM policy for the state of Wisconsin. Commission staff also issued a memo for comment on issues related to NEM, and requested information and analysis on these issues, including how Wisconsin could approach a potential Value of Solar Study (VOSS). Along with several other organizations, RENEW submitted comments to the PSC with regard to how the PSC should approach a VOSS and other analytical aspects of NEM policy.
Explaining the PSC’s Recent Decision on Net Energy Metering Policy
After gathering comments and information on VOSS, on September 26 Commission staff posted a memo outlining potential next steps, and the Commission quickly discussed and made a couple of important decisions. During the open meeting, the Commission announced that Commission staff have been working with Berkeley Lab and other national lab staff to conduct a nationwide VOSS literature review. The Commission decided to take no action until more information is gathered.
The Commission essentially decided to:
1) Wait until this VOSS literature review is complete
2) Post VOSS literature review for public comment
3) Decide what the next actionable steps are in the investigation
If interested, you can watch the YouTube archive of this meeting, with the NEM investigation discussion starting at the 3:20 mark.
Given the need to gather more information, RENEW believes that this was a good decision by the Commission. It shows that the PSC will use a deliberate process in this investigation and associated analyses, and is not interested in making immediate changes to NEM policy. RENEW staff are keeping an eye out for the results of the VOSS literature review and look forward to commenting and suggesting next steps for the PSC to consider.
Recent PSC Decision on Parallel Generation Buyback Rates
While the Commission further investigates NEM policy, the agency has also been actively revising utility pricing for large solar systems sited by businesses for their own use. The price a utility pays for energy generation beyond a customer’s needs is listed in its parallel generation buyback rates for systems above NEM thresholds.* While the Commission has already revised buyback rates for Wisconsin’s five major investor-owned utilities, it has also begun to consider municipal utility-proposed revisions. RENEW staff wrote a blog regarding Sturgeon Bay Utility’s proposed parallel generation rate revisions this past May.
During an open meeting discussion on October 10, the Commission considered Sturgeon Bay Utilities’ (SBU) proposal to revise its buyback rates. The Commission decided that it needed more information before revising SBU’s buyback rates, and requested that Commission staff reopen the docket to gather more information and analysis through an extended proceeding. The Commission’s decision on SBU’s proposed change could have sweeping impacts across the state as SBU is part of WPPI Energy, which has many municipal electric utility members in Wisconsin. WPPI has stated that it would like to revise all its municipal utilities’ parallel generation buyback rates in line with the Commission’s decision in the SBU case.
Next Steps on NEM and Parallel Generation Buyback Rates
In the coming months, RENEW expects several important Commission decisions in both the ongoing NEM investigation and individual utility parallel generation cases. RENEW staff will follow upcoming Commission developments closely and will directly participate with witness testimony and public comments. You can follow these issues as well, and make your voice heard when public comment opportunities arise. Sign up for RENEW updates and action alerts so that you can provide timely input on these important issues.
*NEM thresholds vary across Wisconsin utilities. WE Energies has a 300-kilowatt (kW) threshold, NSPW and MGE have 100 kW thresholds, WPL and WPS have 20 kW thresholds, and all other Wisconsin utilities regulated by the PSC have a 20-kW threshold.