Panel Denies Requests to Pause Rooftop Solar-Rate Hike

  • Friday, January 15, 2016
  • Source:ferro-alloys.com

  • Keywords:Si silicon metal solar panel
[Fellow]Nevada energy regulators won't pause a controversial rate hike for rooftop solar customers, in spite of hours of pleas from hundreds of solar energy users, a supportive tweet from presidential candidate Sen. Bernie Sanders and even a cameo from a movie star.

Nevada energy regulators won't pause a controversial rate hike for rooftop solar customers, in spite of hours of pleas from hundreds of solar energy users, a supportive tweet from presidential candidate Sen. Bernie Sanders and even a cameo from a movie star.

The Nevada Public Utility Commission voted unanimously Wednesday to reject requests to put a stay on new rates that took effect Jan. 1, after shooting down some of the arguments that were made during about six hours of emotional and sometimes rowdy testimony. Commissioners say the rate increase over five years will gradually phase out subsidies that traditional customers pay to support about 17,000 solar customers.

The crowds that testified from Carson City and Las Vegas included homeowners with solar panels and some of the 650 workers laid off by solar panel companies SolarCity and Sunrun, who said their business model is no longer viable in Nevada because of the hike. Some accused the commission of criminal acts and suggested they change their name to the Corporate Utilities Commission because they were only looking out for NV Energy.

Actor Mark Ruffalo, a climate advocate who appeared in the movie "Spotlight," gave rousing testimony calling the commission an "anti-Robin Hood."

"The actions you are taking today are taking from the mouths of the people and giving it to the utility," he said. "You are taking from the people and giving to the rich."

Chairman Paul Thomsen said commissioners were heavy-hearted about the layoffs, but he said the panel had been working tirelessly to come up with a way that would "create a path forward" for rooftop solar in Nevada while treating all ratepayers fairly.

"Mark Ruffalo was exciting, but it doesn't make me uncomfortable to try to protect 98 percent of residents in this state who don't have net metering on their roofs," Thomsen said. "I think we can find a balance."

Debate on rooftop solar in Nevada picked up last spring, as the state approached a statutory cap on the amount of customers who could participate in net metering — the process of rooftop solar users selling excess energy back to the utility company. After struggling to come up with a detailed solution during the legislative session, lawmakers voted 62-1 to pass a bill tasking the commission with setting new rates and rules once the cap was breached.

Commissioners took testimony on the topic for months before deciding in late December that the basic service charge for net-metering customers should triple over five years. They also said solar customers selling energy back to the utility should be reimbursed at a gradually declining rate, although another adjustment in the rate structure was favorable to net-metering customers.

The commission also said that to avoid confusion, current and future net-metering customers alike should be included in the new rate structure — something that has angered early adopters who said they invested in $50,000 solar systems assuming the more generous reimbursements would continue and cover the capital costs over the long run. Many testified that they were trying to do the right thing for the environment by investing in solar, but they will now never see a return on investment in their lifetimes and will struggle to pay their utility bills.

Commissioner David Noble said utility company agreements with solar users warn that rates are subject to change. He also said he couldn't understand why companies sold about 11,000 solar systems since the bill became law in June, but apparently didn't thoroughly warn buyers that they weren't locking in old prices because the bill gave the commission wide latitude to change rates.

"I'm flabbergasted," Noble said. "That's a travesty."

NV Energy said the power market is rapidly changing, and net-metering rates should better reflect the declining cost of wholesale solar energy. They also say solar customers should pay their fair share to maintain electrical infrastructure because net-metering customers still connect to the grid and expect uninterrupted power at all times — including when a cloud passes overhead or at night.

Solar companies question whether there's a cost-shift at all, and suggest data is biased because it's provided by NV Energy.

The action Wednesday is not the end of the road in Nevada's solar fight. Petitions filed last week seek an extensive reconsideration of the rates overall.

  • [Editor:tianyawei]

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