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Public Service Commissioner Clyde Holloway is wanting to change the net metering rules. this seems to be an ongoing thing.
No need to read the link unless you want more background info.
Louisiana Public Service Commission looks to revamp how solar users are billed | NOLA.com
For those that do not know what net metering is, it is really simple. The utility company puts a special meter on your home. You consume electricity and the meter spins. At the end of the month, you get a bill. Now lets say you install a bunch of shiny solar panels on your roof and you produce more electricity than you are consuming. During those times, the meter spins backwards and you are essentially selling power back to the utility company.
I listen to Mr. Holloway's comments this morning and would like to discuss one topic in particular. That being the rate which the utility has to pay to purchase your excess electricity. As it stands right now, they must purchase the power at the retail price. .
Holloway wants that changed to a lower rate. Basically, the wholesale rate for discussion purposes. The solar industry is of course fighting that but I wanted to hear your opinion on this. From what I can figure, this desired change is being pushed by the utility companies but I might be wrong about that.
My opinion is that it is not fair to require the utility company to buy the power at retail. It should be the wholesale price.
The utility company must install and maintain the lines, poles and transformers to provide your home with power. In exchange, they bill you for consumption. If we have 20 homes on one street, the revenue from those 20 homes provides enough money for the UC to install and maintain their services.
Now all of a sudden, half of those homes have solar panels and are purchasing very little power. The UC still has the same costs to maintain the service provided but now lost half their revenue. On top of that, they must purchase excess power at full retail, turn around and resell it at zero profit.
What is your opinion, should the UC pay retail or wholesale for the power they have to purchase from customers with solar panels?
No need to read the link unless you want more background info.
Louisiana Public Service Commission looks to revamp how solar users are billed | NOLA.com
For those that do not know what net metering is, it is really simple. The utility company puts a special meter on your home. You consume electricity and the meter spins. At the end of the month, you get a bill. Now lets say you install a bunch of shiny solar panels on your roof and you produce more electricity than you are consuming. During those times, the meter spins backwards and you are essentially selling power back to the utility company.
I listen to Mr. Holloway's comments this morning and would like to discuss one topic in particular. That being the rate which the utility has to pay to purchase your excess electricity. As it stands right now, they must purchase the power at the retail price. .
Holloway wants that changed to a lower rate. Basically, the wholesale rate for discussion purposes. The solar industry is of course fighting that but I wanted to hear your opinion on this. From what I can figure, this desired change is being pushed by the utility companies but I might be wrong about that.
My opinion is that it is not fair to require the utility company to buy the power at retail. It should be the wholesale price.
The utility company must install and maintain the lines, poles and transformers to provide your home with power. In exchange, they bill you for consumption. If we have 20 homes on one street, the revenue from those 20 homes provides enough money for the UC to install and maintain their services.
Now all of a sudden, half of those homes have solar panels and are purchasing very little power. The UC still has the same costs to maintain the service provided but now lost half their revenue. On top of that, they must purchase excess power at full retail, turn around and resell it at zero profit.
What is your opinion, should the UC pay retail or wholesale for the power they have to purchase from customers with solar panels?