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1 1 (July 24, 2020)

handle is hein.crs/govdbbw0001 and id is 1 raw text is: Researh Sevice Federal Energy Regulatory Commission Declines to Regulate Net Metering July 24, 2020 Net metering is a policy through which electricity customers with their own electricity generation systems are compensated for the energy they produce (above what they consume). Typically, net metering customers receive a bill credit for any excess electricity they produce over the course of a month. In other words, their monthly electricity bills reflect the net of electricity used from the grid and delivered to the grid. Rooftop-mounted solar photovoltaic panels (i.e., rooftop solar) make up nearly all net metering generation capacity in the United States. For simplicity, the following discussion refers to generators participating in net metering as rooftop solar. Most states have adopted a net metering policy. The Federal Energy Regulatory Commission (FERC) regulates wholesale and interstate electricity transactions, pursuant to the Federal Power Act (FPA). The FPA defines wholesale electricity transactions as sale of electric energy to any person for resale. In 2001 (and again, in 2009), FERC determined that net metering policies do not constitute a sale for resale. Currently, states and local authorities regulate net metering policies. On April 14, 2020, the New England Ratepayers Association (NERA) filed a petition with FERC, asking the Commission to exert jurisdiction over most types of net metering transactions, arguing that they constitute a sale for resale. NERA asked that FERC regulate rooftop solar in the same way it regulates other small-scale generators pursuant to the Public Utility Regulatory Policies Act (PURPA; P.L. 95-617). It argued, in part, that many state net metering policies require utilities to overcompensate rooftop solar owners because net metering customers are compensated above the utility's avoided cost. Further, NERA argued that many state net metering policies inequitably shift costs to customers without rooftop solar. Some stakeholders raised concerns that if FERC regulated net metering as NERA proposed, rooftop solar would receive less compensation, potentially slowing its development. On July 16, FERC unanimously dismissed the petition on procedural grounds, leaving the status quo in place. However, FERC left open the possibility that it might reconsider issues related to rooftop solar in the future. NERA's petition raised interest in issues related to net metering, some of which are discussed below. Congressional Research Service https://crsreports.congress.gov IN11468 CRS NStGHT Prpred For Meumbers and Comrm ttees of Conress ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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