The problem with solar homeowners to the Electrical utilities.

longview said:

The Nevada assembly has change the solar rules again.
It might be entertaining to see how the rules compare to other retail scenarios.
Nevada Assembly passes solar-energy consumer rights, fees | Miami Herald

So the Utility must reimburse homeowners for surplus power at 95% of the retail rate,
for up to 6% of the users.
For the sake of discussion, lets say the Utility buys or produces electricity at the US wholesale rate
of about $.026 per Kwh, and sell it for the US average rate of $.12 per Kwh.
The $.094 per Kwh delta, includes their profit, labor cost, taxes, grid maintenance, ect.
Now the state is mandating that the utility buy up to 6% of their electricity for $.114 per Kwh,
leaving a delta of only $.006 per Kwh.
If all things are to stay the same, the non solar users must now absorb the $.088 per Kwh difference
lost to the legislation.
But here is the catch, if they raise the retail rate, the amount the solar users get back increases as well.

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I wonder how else that reads?

Does the retail rate mean just the power itself, or all taxes and fees? My power for example costs me last month $0.1215/kWh plus my $10.50 service connect and some taxes and fees. However, the first 1,000 kWh was billed at $0.0685/kWh and the next 55 kWh was billed at $0.07572/kWh. The rest of the money adding up to the over 12 cents/kWh were transmission charges, distribution charges, and adjustments.

I will assume that it would be 95% of my 6.85 cents per kWh. Not the over 12 cents.

Lord of Planar said:

I wonder how else that reads?

Does the retail rate mean just the power itself, or all taxes and fees? My power for example costs me last month $0.1215/kWh plus my $10.50 service connect and some taxes and fees. However, the first 1,000 kWh was billed at $0.0685/kWh and the next 55 kWh was billed at $0.07572/kWh. The rest of the money adding up to the over 12 cents/kWh were transmission charges, distribution charges, and adjustments.

I will assume that it would be 95% of my 6.85 cents per kWh. Not the over 12 cents.

View attachment 67218210

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Just a guess, but the retail rate likely includes the different Kwh charges to get the energy to the home,
so, energy use, transmission, and distribution.
I suspect the government is not giving back tax monies, so the 95% likely does not include any taxes.
There is a tax savings for energy never purchased!
Spain has tried to change people the energy tax on power their own solar panels generated,
The program is VERY unpopular, and heard they were talking about ending it.

longview said:

Just a guess, but the retail rate likely includes the different Kwh charges to get the energy to the home,
so, energy use, transmission, and distribution.
I suspect the government is not giving back tax monies, so the 95% likely does not include any taxes.
There is a tax savings for energy never purchased!
Spain has tried to change people the energy tax on power their own solar panels generated,
The program is VERY unpopular, and heard they were talking about ending it.

Click to expand...

My assumption is the rate 95% rate would be only the retail cost of the power at, in my case, the up to 1000 kWh level, or 6.85 cents. 95% of that would be paying the customer back at 6.5075 cents per kWh.

Think about it. Why would a utility be forced to pay back distribution and transmission fees, and even less likely all the associated adjustments? The utilities have to maintain transmission likes and distribution equipment no matter what direction the power is flowing.

Line 145 for example. The Boardman decommissioning adjustment. PGE users are paying to decommission an old coal plant at a rate of 0.027 cents per kWh of usage. Why would the users get 95% of this back as part of their compensation?

What about item 143? Users are getting a credit. Does this mean if they are adding to the system, that they pay instead of get back?

It is important to see the full language of such legislation.