Rethinking the Regulation of Our Electric Utilities
Here’s an article that points to one of the many issues we face in our quest to integrate large amounts of solar energy into our grid-mix: all this distributed generation is making it tough for the utilities. In 43 of the 50 states, net-metering programs force them to pay home-owners the retail rates of electricity for any extra that the customer may want to sell back to the grid, meaning that the customer gets to use the distribution system for free. Given that there is no free lunch, this passes those costs onto the utility, which really means passing them onto other (generally less-affluent) rate-payers.
The New York Times claims electric power utilities are “in almost panicked tones… fighting hard to slow the spread” of rooftop solar. (more…)