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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 consume. 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 normal 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 5.5¢ 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 will be able to bank or rollover their net kWhs to be used to offset the full value of future electric consumption, significantly increasing the customer’s reimbursement. For example, at present, CL&P’s residential charges total about 17¢/kWh, two to three times the past average reimbursement. The new reimbursement mechanism significantly increases the financial benefit of owning Class I renewable generation.
Expanded Net Metering Options
The Town of Weston requested a declaratory ruling from the DPUC regarding net metering. The Town 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 (not final) in this matter. Follow these links for information about this declaratory ruling.
Docket No. 09-11-04 - Complete record and Draft Decision
Expanded Net Metering Options
The Town of Weston requested a declaratory ruling from the DPUC regarding net metering. The Town 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 (not final) in this matter. Follow these links for information about this declaratory ruling.
Docket No. 09-11-04 - Complete record and Draft Decision
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 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 owner of the generation is paid for the banked kWhs at the end of each banking period and the annual banking period begins again.
In addition, CL&P and UI have rates and tariffs in place for customers that generate electricity but do not net meter.
Follow these links for more details about net metering: