Iowa Utilities Board updates net-metering policy to promote renewable energy
The Iowa Utilities Board updated its net metering policy on Tuesday to require the state’s largest investor-owned utilities to file new bet neterubg tariffs that will support the state’s initiative to encourage customers to adopt renewable energy.
Under the new order, the MidAmerican Energy Company and the Interstate Power and Light Company are required to submit new net metering tariff proposals by August 15. The proposals will be implemented temporarily, until official approval is gained, after which the tariffs will go into effect for a three-year-period.
The order was established in an effort to encourage customers to use renewable energy. The order says that the net metering cap will be increased from 500 kilowatts to 1 megawatt, and may cover up to 100 percent of a customer’s load. All customer classes will also now be able to net meter, but customer generation will only offset energy charges, not customer or demand charges.
The new order also requires the utilities to provide an annual cash-out of excess credits at the utility’s tariffed avoided cost rate. This will take place during the first billing cycle of the year. Funds will be evenly distributed between customers and utilities to provide additional funds for customers in-need. Customers may also donate 100 percent of qualified cash-outs to the customer assistance fund.
The board also encouraged the utilities to track the proposed pilot projects via the Preliminary Implementation Plans guidelines to determine the success rate, and potential issues, related to the program.
