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Net metering is a policy that applies to consumers who own electric generating equipment and can provide more energy to the electric grid than they use. Net metering is used to determine the total amount of electricity that is either used, or provided to the power grid by, these customers during their billing cycles.
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 all of its net metering customers on a monthly basis, paying for any surplus production (i.e., net kWhs) based on the average of the hourly real-time wholesale energy prices during the customer's billing cycle. These energy prices are maintained by the Independent System Operator of New England, aka 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 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, they would simply be billed like any other customer under their appropriate CL&P or UI rate.
However, recent legislation has changed the way customers that generate electricity from Class I renewable resources are reimbursed for their net kWh production. Beginning in October 2007, instead of being paid an energy only amount, customers can bank or rollover their net kWhs to be used to offset the full value of their future electric use, significantly increasing the customer’s reimbursement. For example, at present, CL&P’s residential charges total about 19¢/kWh, two to three times the past average reimbursement. The new reimbursement mechanism 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 DPUC 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 DPUC 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, DPUC 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
However, recent legislation has changed the way customers that generate electricity from Class I renewable resources are reimbursed for their net kWh production. Beginning in October 2007, instead of being paid an energy only amount, customers can bank or rollover their net kWhs to be used to offset the full value of their future electric use, significantly increasing the customer’s reimbursement. For example, at present, CL&P’s residential charges total about 19¢/kWh, two to three times the past average reimbursement. The new reimbursement mechanism 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 DPUC 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 DPUC 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, DPUC 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 DPUC regarding net metering. Willington also believes it is appropriate to aggregate the consumption of multiple customer meters to calcualte the credit that is authorized under current net metering tariffs.
After reviewing Willington's request, the DPUC 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 DPUC 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.
Use the following link to locate information about the DPUC generic proceeding.
Docket No. 10-03-13 - Complete record
Additional Information
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 (i.e., capacity) of the Class I generation unit is limited to 2 megawatts. However, most renewable projects are below 2 megawatts. Finally, the banking or rollover of kWhs is tracked and reconciled on an annual basis, that is, the generation owner is paid for the banked kWhs 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.
Follow these links for more details about how the DPUC approved net metering for CL&P and UI: