Kentucky Public Service Commission seeking comments on net metering changes

The Kentucky Public Service Commission (PSC) said Tuesday that it opened a case to take comments to collect information that may be useful in future rate cases that determine net metering rates for electric utilities.

Written comments are due by Sept. 20, and the PSC will conduct a hearing to receive comments in person on Oct. 1 at the PSC offices in Frankfort. The PSC will not make decisions on net metering rates in this proceeding.

Earlier this year, Kentucky Gov. Matthew Bevin signed into law a bill that changes how utilities credit retail customers who generate electricity from solar panels and other renewable sources.

Under the new law, net metered customers will receive dollar credits at a compensation rate set by the PSC in rate proceedings for each utility, and the compensation amount for each billing period subtracted from the total bill for that period. The law states that an electric utility is “entitled to implement rates to recover from its eligible (net metering customers) all costs necessary to serve” those customers, independent of the rate structure for all other customers.

The original net metering statute provided credits at the full retail rate, using a bi-directional meter that reflected whether a customer was producing more or less electricity than they used. The customer bill reflected net usage.

Homes and businesses that began receiving net metering service under the prior statute and rates will continue to do so for 25 years from the date at which net metering began.

The new law takes effect on Jan. 1, 2020. After that date, utilities may file applications with the PSC to implement new net metering rates. The new rates will take effect after receiving PSC approval.

The PSC said that it will use the comments to develop a record that will be incorporated into the initial rate proceedings filed by utilities. The final order in the case will include a report summarizing the information collected.