In the early 20th century electricity generation and transmission technologies supported the idea that "big is better." As a result, regulatory rules encouraged the construction of centralized power plants and long distribution lines. In the 1990s the technological dynamic was reversed. Small power plants located closer to the customer were become increasingly competitive. This has occurred at the same time as most states, many cities, and the U.S. Congress are rewriting the rules that govern our electricity system. The challenge now is to write rules (i.e. codes, standards, regulations, statutes) that will encourage electricity customers to also become electricity producers.

RULES:

• Solar Incentive Program - Los Angeles, CA
  The Los Angeles Department of Water and Power (LADWP) has an interesting solar rooftop incentive program with a goal to have 100,000 systems on rooftops in LA by the year 2010. We like this particular program because it gives an extra incentive to systems that are manufactured locally inside Los Angeles. More..
• Distributed Generation - Barriers Removed
  As a result of the electricity crisis in California in 2001, initiatives to knock down the barriers to distributed power have been introduced that could provide a model for other states. One proposal would remove some of the financial barriers that utilities typically erect to discourage DG, such as exit and standby fees. Another interesting development has occured in Michigan with the approval of a distributed generation tariff for the Detroit Edison company. More...
• Distributed Generation Interconnection Standards
  Efforts are underway at the federal level and in many individual states to develop fair and uniform interconnection standards to help facilitate the deployment of distributed generation. A handful of states have already adopted interconnection standards that other states can modify for their circumstances. More...
• Distributed Generation in Local and Plans
  If a proliferation of small-scale power plants serves the interests of the general community, cities and counties should include this as an element in their general plans and zoning ordinances. San Diego's regional energy plan includes objectives to ensure that institutional and legal barriers do not impede distributed generation development. The City of Chicago plans to meet its growing electricity needs through 2010 using renewable energy, energy management, cogeneration, and distributed energy sources, according to a new energy plan released in 2001. More...
• In-State Preference for Renewable Energy Systems - Washington
  Two proposals were signed into law in 2005 in Washington. The new laws put distributed generation and renewable energy on the fast track in the state. The first bill (SB 5101) establishes a renewable energy production incentive that is larger if the equipment comes from in-state manufacturers. The second bill (SB 5111) provides corporate tax breaks for solar energy businesses in the state based on their sales. More...
• Natural Gas Price Breaks for Distributed Generation - New Jersey
  New Jersey Natural Gas Company (NJNG) received approval in January 2003 from the New Jersey Board of Public Utilities (BPU) to offer a special pricing plan to residential and commercial customers who use natural gas to fuel distributed generation (DG) technologies like fuel cells or microturbines. Under the rates, commercial and residential DG projects could see savings of up to 50 percent on their fuel costs. More...
• Net Metering
  Net metering is a practice that encourages consumer investment in on-site electric generators - typically small-scale, renewable energy technologies. When electricity is being generated and none is being consumed, good net metering policies allow customer/generators to spin their meter backwards. More...
• Sacramento Municipal Utility District's PV Pioneers Program
  The Sacramento Municipal Utility District (SMUD) launched its PV Pioneer I program in 1993 which was the first time a municipality had engaged in bulk purchasing to drive down the price of photovoltaics (PVs). SMUD's PV programs include 750 residential rooftop solar units and dozens of commercial and church rooftop systems that feed over 1500 kW of clean electricity directly into SMUD's grid. More...
• Home Energy Generation Act - Federal
  This 2001 federal proposal would have extended net metering to the states that do not have the provision and set a uniform national reliability and safety standards for the practice. It limits generators to no larger than 100 kW and can be either a fuel cell or power plant fueled by renewable resources. More...
• Value Decentralized Power: Get the Prices Right
  The objective of the future electricity system should be to optimize efficiency of the use, production and distribution of electricity. Regulators must quantify the benefits of dispersed power (and efficiency and storage) and develop pricing mechanisms that reflect the true costs of electricity distribution that encourage the siting of distributed generation resources when and where they are most needed. More...

More:

• Seeing the Light: Regaining Control of Our Electricity System is the newest book from the New Rules Project by David Morris. - Order Online Now! $15.00
• Model Net Metering Law for Renewable Energy Technologies - by the Interstate Renewable Energy Council, August 2003
  This model limits net metering to systems 25 kW or less for residential applications and 100 kW or less at commercial sites. The rule would allow first-come first-served net metering until a utility reaches 2 percent of its peak load.
• Small Is Profitable: The Hidden Economic Benefits of Making Electrical Resources the Right Size - Rocky Mountain Institute, 2002
• Green Power Networks' State Net Metering Program Descriptions