Resolution to Support States Rights in Establishing Net Metering Policies

Summary

The resolutions affirms that’s states and their established regulatory bodies should have jurisdiction over net metering programs instead of that jurisdiction being given to the Federal Energy Regulatory Commission and that net metering does not amount to a behind the meter wholesale transaction subject to FERC’s jurisdiction.

Resolution to Support States Rights in Establishing Net Metering Policies

WHEREAS, on April 14, 2020 a petition was filed at the Federal Energy Regulatory Commission (FERC)

asking the federal agency to assert jurisdiction over net metering programs currently administered at

the state level.1

 

WHEREAS, net metering is “a metering and billing arrangement designed to compensate distributed

energy generation (DG) system owners for any generation that is exported to the utility grid.”2

 

WHEREAS, net metering customers directly use the electricity generated on-site. If the amount of

electricity a customer produces exceeds the amount of electricity that customer uses, the excess

electricity is exported to a utility’s electric grid.

 

WHEREAS, states are not currently required by Federal Law to adopt net metering policies, only to

consider them under the Public Utility Regulatory Policies Act (PURPA).

 

WHEREAS, if the intention of Congress was for net metering to be federally regulated, they would not

have directed states to consider these policies under PURPA.

 

WHEREAS, 45 states3 in addition to Washington D.C., American Samoa, Puerto Rico and the U.S.

Virgin Islands have exercised their state’s rights to formally establish their own net metering policies.4

 

WHEREAS, 24 states and the District of Columbia took independent action to review, update, or

establish related policies on this topic during Q1 of 2020.5

 

WHEREAS, each state has a unique character in regards to its energy profile, usage, demand, pricing, and policies.

 

WHEREAS, the details of each state’s net metering policies recognize this unique character and are

established to serve the public interest of each state.

 

WHEREAS, an individual state’s net metering policies can differ substantially in details such as: Eligible

technologies, system size caps, program size caps, customer types, rates and crediting of net excess

generation, and ownership of renewable energy credits (RECs), among others.6

 

WHEREAS, each state has its own regulatory body to consider the unique character of each state and

ensure that policies and rates, such as net metering, are established to be just and reasonable and to

serve the public interest.

 

WHEREAS, the founding fathers intended that, “The powers reserved to the several States will extend to

all the objects which, in the ordinary course of affairs, concern the lives, liberties, and properties of the

people, and the internal order, improvement, and prosperity of the State.”7

 

NOW, THEREFORE, LET IT BE RESOLVED, that {state} supports the rights of individual states and their

established regulatory bodies to continue to regulate net metering electricity transactions as they see fit

in an effort to meet the unique needs of their citizens and serve the public interest.

1 https://elibrary.ferc.gov/idmws/docket_sheet.asp Docket Number EL20-42-000

2 https://www.nrel.gov/state-local-tribal/basics-net-metering.html

3 https://fas.org/sgp/crs/misc/R46010.pdf

4 https://www.nrel.gov/state-local-tribal/basics-net-metering.html

5 https://nccleantech.ncsu.edu/wp-content/uploads/2020/04/Q1-20_SolarExecSummary_Final.pdf

6 https://www.nrel.gov/state-local-tribal/basics-net-metering.html
7 https://avalon.law.yale.edu/18th_century/fed45.asp