Net metering is a policy that applies to consumers who own electric generating equipment and provide more electricity to the electric system than they use. Net metering is used to determine the amount of electricity that is provided to the grid by these customers.
The Connecticut Light and Power Company (CL&P) and The United Illuminating Company (UI) have had net metering tariffs in place for many years. In the past, CL&P and UI would reimburse their net metering customers on a monthly basis, paying for any surplus production based on the average of the hourly real-time wholesale energy prices during the customer's billing cycle. Wholesale energy prices are maintained by the Independent System Operator of New England, the ISO‑NE.
Under this payment structure, the customer was paid an 'energy only' reimbursement for their net kWh production. Based on the ISO-NE wholesale energy prices over the past few years the customer was paid between 5¢ and 8¢/kWh for their net kWhs. If the customer used more electricity than they produced, that is they had net consumption, they would be billed for that consumption under their appropriate CL&P or UI rate tariff.
Connecticut General Statutes Section 16-243h changed the way customers who generate electricity from Class I renewable resources with a capacity of 2 MW or less are reimbursed for their net kWh production.
Beginning in October 2007, instead of being paid an energy only amount for net kWhs at the end of a billing cycle, customers operating Class I renewable generation are required to bank or rollover their net kWhs to be used to offset the full retail value (i.e., delivery and generation rates) of their future electric consumption. This structure significantly increased the customer’s reimbursement for the net energy produced by their system.
For example, at present, CL&P’s residential retail charges total about 18¢/kWh, more than double the past wholesale average energy reimbursement payment. The new reimbursement mechanism established through Conn. Gen. Stat. 16-243h significantly increases the financial benefit of owning Class I renewable generation.
Request to Expand Net Metering - DPUC Docket No. 09-11-04
The Town of Weston requested a declaratory ruling from the Public Utilities Regulatory Authority (PURA) regarding net metering. Weston believes it is appropriate to aggregate the consumption of multiple customer meters to calculate the credit that is authorized under current net metering tariffs. The PURA issued a draft ruling in this matter. Follow these links for information about this declaratory ruling.
After the draft ruling was issued Weston withdrew its request and entered into confidential settlement discussions with CL&P. This proceeding was closed. As a result, PURA did not issue a final ruling. Use the following link to locate information about Weston's request.
Docket No. 09-11-04 - Complete record and Draft Decision
Additional Request to Expand Net Metering - DPUC Docket No. 10-02-20
The Town of Willington requested a declaratory ruling from the PURA regarding net metering. Willington also believes it is appropriate to aggregate the consumption of multiple customer meters to calculate the credit that is authorized under current net metering tariffs.
After reviewing Willington's request, the PURA determined that this issue should be addressed in a generic proceeding, and opened Docket No. 10-03-13. See information below.
Use the following link to locate information about Willington's request.
Docket No. 10-02-20 - Complete record
Generic Proceeding Regarding Net Metering - Docket No. 10-03-13
The PURA determined that a ruling in the Willington proceeding would impact all customers eligible to take service under the CL&P or UI net metering tariff. As a result, it established Docket No. 10-03-13, DPUC Declaratory Ruling Concerning Net Metering Pursuant to CGS 16-243h.
The PURA has yet to issue a Decision in this matter. Use the following link to locate information about the PURA generic proceeding.
Docket No. 10-03-13 - Complete record
Please note that net metering customers can offset any electric cost that is billed on a kWh basis, but must continue to pay their monthly customer charge and demand-based rates. Also, the size (capacity) of the Class I generation unit is limited to 2 megawatts. This is meant to encourage the installation of smaller renewable projects.
Finally, the banking or rollover of kWhs is tracked and reconciled on an annual basis. The generation owner is paid the wholesale avoided cost of electricity for any kWhs that remain 'in the bank' at the end of each annual banking period. The annual banking period then begins again. Follow these links to the CL&P and UI tariffs for net metering Class I resources.
CL&P Class I Net Metering Tariff - Rider N
UI Class I Net Metering Tariff - Rider NE
In addition to the net metering tariff for Class I resources, CL&P and UI have rates and tariffs in place for customers that generate electricity from other resources.
CL&P - Rate 980 Non-Firm Power and CL&P's Distributed Generation Rider
UI - Rate Self Generator 2 (SG2) and Distributed Generation Rider DG
Follow these links for more details about how the PURA approved net metering for CL&P and UI:
CL&P - Docket No. 03-07-02RE10 - Final Decision - Net metering and other rate design issues