Updating Net Metering Policies Resolution - ALEC - American Legislative Exchange Council 12/4/14, 2:05 PM Donate Join ALEC Search Limited Government · Free Markets · Federalism About Blog Task Forces Initiatives Meetings Membership Publications Press Room Model Policy Updating Net Metering Policies Resolution Updating Net Metering Policies Resolution Search in Model Policies: Search Model Policies... Keyword Tags 2013 Annual Meeting 2013 SNPS WHEREAS, the U.S. electric grid delivers a product essential to all Americans; and WHEREAS, electricity runs our economy—it powers our homes, businesses, industries, and the smart technologies and innovations that enhance our quality of life; and WHEREAS, the electric power industry is leading the transformation to make the grid more flexible and more resilient to meet the growing demands of our digital society; and 2014 Annual Meeting 2014 STFS Accountability WHEREAS, the electric power industry directly employs more than 500,000 American workers and is the nation’s most capital-intensive industry, investing more than $90 billion per year, on average, in capital expenditures, including investments in transmission and distribution infrastructure; and Accounting Admissibility ADR Agriculture Air Quality Alternative Energy Standard WHEREAS, ALEC’s Electricity Transmission Principles assert that the electricity transmission system must be “coordinated in a manner that satisfies current needs and future growth, and that provides energy consumers with the necessary levels of system security, overall reliability, and access to the most economic and diverse sources of electricity”; and WHEREAS, there is growing interest among customers to self-serve with on-site rooftop solar panels; and Alternative Fuels Animal Appeal Bond Article V Asbestos Bad Faith Balanced Budget Amendment Biotechnology Broadband Budget Canada Carbon Emissions Carbon Tax Charity Charter Schools Chemicals Child Protection Child Safety Choice Civil Justice Task Force Claims WHEREAS, there is growing interest among renewable energy service providers in installing rooftop solar panels and other small-scale, on-site distributed generation (DG) systems; and WHEREAS, it is recognized that when these rooftop solar and other DG systems first came to market years ago, many states approved a billing plan called net metering that provided a subsidy to distributed generators to encourage their introduction; and WHEREAS, some states now have net metering policies that credit rooftop solar or other DG customers for any excess electricity that they generate and sell using the grid and require utilities to buy this power at the full retail rate; and WHEREAS, the full retail rate of electricity often includes the fixed costs of the poles, wires, meters, advanced technologies, and other infrastructure that make the electric grid safe, reliable, and able to accommodate solar panels and other DG systems; and WHEREAS, when net-metered customers are credited for the full retail cost of electricity, they effectively avoid paying the grid costs, and these costs for maintaining the grid then are shifted to those customers without rooftop solar or other DG systems through higher utility bills; and WHEREAS, the use of rooftop solar and other DG systems now has become more widespread, and many states are reviewing their net metering polices; and WHEREAS, there have been several recent public policy developments, such as a National Association of Regulatory Utility Commissioners resolution, a Southern States Energy Board resolution, development of Critical Consumer Issues Forum policy principles, and even state regulatory proceedings, that recognize the need for proper allocation of costs to support customers use of the electric power grid; and Class Actions Clean Air Act THEREFORE BE IT RESOLVED that the American Legislative Exchange Council encourages state http://www.alec.org/model-legislation/updating-net-metering-policies-resolution/ Page 1 of 2 Updating Net Metering Policies Resolution - ALEC - American Legislative Exchange Council Clean Energy Standard Clean Water Act Climate Climate Change Coal Collateral Source Commerce policymakers to recognize the value the electric grid delivers to all and to: 1. Update net metering policies to require that everyone who uses the grid helps pay to maintain it and to keep it operating reliably at all times; 2. Create a fixed grid charge or other rate mechanisms that recover grid costs from DG systems to ensure that costs are transparent to the customer; and 3. Ensure electric rates are fair and affordable for all customers and that all customers have safe and reliable electricity. Commerce Insurance and Economic Development Task Force Commercial Negotiations Commercial Spectrum 12/4/14, 2:05 PM Approved by the ALEC Board of Directors January 9, 2014. Keyword Tags: 2013 SNPS, Distributed Generation, Electric Grid, Energy Environment and Agriculture Task Force, Net Metering Communications and Technology Task Force Community Correction Community Corrections Community Safety Task Forces Energy, Environment and Agriculture Comparative Fault Competition Competitive Bidding Competitiveness Congress © 2014 ALEC – American Legislative Exchange Council. 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