California sets Wind and Solar Net Fee

California AB 920, signed by Gov. Schwarzenegger, called for the California Public Utilities Commission (CPUC) to set the rates for wind and solar power generation in excess of that power that was consumed, over a 12 month period.  On June 9, 2001 the CPUC, by a vote of 4-1, set this rate to be the 12-month average spot market price for the hours of 7 am to 5 pm for the year in which the customer generated surplus power.

Quite independent of the actual rate, this is good news for California user of wind and solar.  In the past, these users could only get a credit on their bill, with the excess power provided free to the utility company.  For wind and solar businesses, this means selling installations that generate greater than the customer consumes makes economic sense.

For example, my ranch-style house has a large west facing roof.  It now makes economic sense to cover the entire roof with solar cells, instead of just part of it.

Now the bad news here is that such users don’t get fairly compensated for power generation during peak hours, say in the summer.  While a real time excess pricing system sounds like a good idea, I’m happy to have a system at all, and I’m sure that as the number of users increases, we can re-open the fee structure.



Tags: , , ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: