Net
Metering of Electricity
On March 15, 2002, Governor Leavitt signed into law House
Bill 7, Net Metering of Electricity. This law requires all
electric utilities and cooperatives in Utah (municipal utilities
are excluded) to allow customers to connect renewable energy
systems to the grid for their own use and to supply excess
electricity to the electric grid.
The utility will "net" the customers electricity
use and production over the monthly billing period, in essence,
paying the customer retail price for the electricity they
produce.
If net metering results in excess customer-generated electricity
over the billing period, the utility will credit the customer
for the electricity at a value that is at least avoided
cost. The customer may use the credit to offset purchases
of electricity during future billing periods in the same
year. Any unused credits expire at the end of the calendar
year. Customer generated electricity may be from solar,
wind, small hydropower, or fuel cell systems of up to 25
kW in size.
The net metering law caps total participation in the program
at 0.1% of the cumulative generating capacity of the utility's
peak demand during 2001. Utilities are prohibited from imposing
additional charges or fees on customers with net metering
unless authorized by the Commission.
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