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The Kentucky Solar Energy Society's mission is to promote the use of renewable energy, energy efficiency, and conservation in Kentucky through education, advocacy, networking, and demonstration of practical applications.

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November 15, 2023

Alliance of grassroots community groups win victories in landmark decision by KY PSC in case brought by Louisville Gas & Electric and Kentucky Utilities Companies

 Kentucky Public Service Commission denies one of two proposed gas plants and approves two of four coal plant retirements, while approving major solar buildout and expanded customer efficiency programs.

Frankfort, Kentucky - The KY Public Service Commission (PSC) has issued a landmark decision  in a case brought by Louisville Gas & Electric and Kentucky Utilities Company (LG&E-KU). The Order will have major long-term impacts for LG&E-KU’s ratepayers and the future of energy and the environment in the Commonwealth. In the Order, the Commission denied construction of one of two proposed gas plants, approved the retirement of two coal plants and three gas plants while deferring retirement of two other coal plants, and approved a major buildout of solar facilities, a utility-scale battery plant, and a significant expansion of customer energy efficiency programs.

The Mountain Association, Metropolitan Housing Coalition, Kentucky Solar Energy Society, and Kentuckians for the Commonwealth, who intervened in the case collectively as the “Joint Intervenors,” see the decision providing many victories for ratepayers, although mixed with some bitter losses. While the Joint Intervenors are disappointed with the Commission’s approval of a new natural gas plant and choice to keep two aging coal plants open, the overall Order offers major advances for clean energy in Kentucky.

“The denial of a $650 million, 40 year commitment to a risky natural gas plant is a major victory for ratepayers,” said Catherine Clement of Kentuckians for the Commonwealth. “And the closure of those old Mill Creek coal units will mean better air quality for the people of Louisville and the surrounding region.”

This was the first case considered by the Commission since passage of Kentucky Senate Bill 4 earlier this year, a bill making it harder for utilities to retire old coal plants. The new statute requires utilities for the first time to receive approval from the PSC before retiring fossil fuel generators. This ruling provided the first indication of how the Commission would implement the statute.

“LG&E-KU had wanted to retire four coal plants because they are too costly to operate and require massive investments to bring into compliance with air and water quality regulations,” said Joshua Bills of the Mountain Association. “Although the Commission decided to keep two of these old coal plants open for the time being, they established a pathway for how such plants can be retired in the future. Importantly, they noted that the success of customer efficiency programs and the growth of distributed energy resources (like rooftop solar) could reduce demand enough to allow these coal plants to be retired without costly new power plants in the years to come.”

“We are excited to see the expansion of the utilities’ customer efficiency programs,” said Tony Curtis of the Metropolitan Housing Coalition. “We look forward to collaborating with the utilities to help make these programs a great success for their customers, especially those who struggle to pay their bills each month and can really benefit from home energy improvements.”

The Order approved all six of the utilities’ proposed solar facilities, which at a combined 877 megawatts (MW) will produce enough energy to serve about 90,000 homes. The Commission also approved a 125 MW battery, another landmark development in this case, as this will be by far the largest utility-scale battery in Kentucky. The Commission noted the essential role batteries could play in the ongoing energy transition in Kentucky, as utilities shift away from fossil fuels to cleaner renewable resources.

“This Order is a major victory for clean energy in Kentucky,” said Andy McDonald of the Kentucky Solar Energy Society. “LG&E-KU proposed the largest-ever build-out of solar in Kentucky and the Commission approved their entire proposal because it will improve reliability and lower costs for customers.”

Chris Woolery of the Mountain Association said, “Successful energy efficiency programs can save enough energy to offset the need for new power plants and that’s the lowest cost solution for customers. But it takes time to ramp up energy efficiency programs, so utilities need to make their efficiency plans before they start planning for the next generation of power plants. While we are pleased that LG&E-KU are rolling out these new efficiency programs, there’s so much more they could do. In ‘Pay As You Save’ programs, the utility invests in energy upgrades in customer’s homes and businesses. The investment gets paid back through the utility bill, while the customer enjoys home improvements and lower bills. I’m grateful the PSC has approved the utilities’ new efficiency programs and I urge them to embrace a PAYS program as a means to make these new programs a greater success.”

The Joint Intervenors received pro bono legal representation in this case from the Kentucky Resources Council and Earthjustice. 

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July 23, 2023
From the Associated Press:
One year old, US climate law is already turbocharging clean energy technology

BY ISABELLA O’MALLEY AND MICHAEL PHILLIS (AP)

FRANKFORT, Ky. (AP) — On a recent day under the July sun, three men heaved solar panels onto the roof of a roomy, two-story house near the banks of the Kentucky River, a few miles upstream from the state capitol where lawmakers have promoted coal for more than a century.

The U.S. climate law that passed one year ago offers a 30% discount off this installation via a tax credit, and that’s helping push clean energy even into places where coal still provides cheap electricity. For Heather Baggett’s family in Frankfort, it was a good deal.

“For us, it’s not politically motivated,” said Baggett. “It really came down to financially, it made sense.”

On August 16, after the hottest June ever recorded and a scorching July, America’s long-sought response to climate change, the Inflation Reduction Act, turns one year old. In less than a year it has prompted investment in a massive buildout of battery and EV manufacturing across the states. Nearly 80 major clean energy manufacturing facilities have been announced, an investment equal to the previous seven years combined, according to the American Clean Power Association.

“It seems like every week there’s a new factory facility somewhere” being announced, said Jesse Jenkins, a professor at Princeton and leader of the REPEAT Project which has been deeply involved in analysis of the law.

“We’ve been talking about bringing manufacturing jobs back to America for my entire life. We’re finally doing it, right? That’s pretty exciting,” he said....

To read the full article, visit here.


April 5, 2023

KYSES Launches Solarize Campaigns in Three Kentucky Cities

KYSES has partnered with the cities of Frankfort, Lexington, and Louisville to launch local Solarize campaigns to help make it easier and less costly for residents and small businesses to install solar on their properties.

Solarize programs connect participants with pre-screened, vetted solar contractors, selected through a competitive price and performance bidding process. This saves participants the trouble of shopping around for contractors and provides discounts up to 15% off of typical prices.

These three Solarize campaigns build on the highly successful Solar Over Louisville campaign in 2022, in which 92 PV systems, totaling over 800 KW, were installed.

Enrollment deadlines vary with each city, so if you’re interested in applying, check out their program requirements at the following links:

Solarize Frankfort - Installation partners: Pure Power Solar & Wilderness Trace Solar

Solarize Lexington - Installation partner: Solar Energy Solutions

Solar Over Louisville - Installation partners: Icon Solar and Solar Energy Solutions

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October 31, 2022

Kentucky Regulators Embrace Many Recommendations from Citizen’s Groups for Improving LG&E/KU’s Long-Term Planning

By Andy McDonald, Apogee-Climate & Energy Transitions

In September 2022 the Kentucky Public Service Commission (PSC) issued its Final Staff Report on the 2021 Integrated Resource Plan (IRP) from Louisville Gas & Electric/Kentucky Utilities Company (LG&E/KU). Kentucky’s regulated electric utilities are required to submit these long-term plans to the PSC every three years, to help ensure that they are adequately planning for their customers’ future needs. The Kentucky Solar Energy Society (KYSES) formally participated in the IRP process, along with Kentuckians for the Commonwealth, the Metro Housing Coalition, and the Mountain Association, who together were known as the Joint Intervenors and were represented by the Kentucky Resources Council and Earthjustice.

The PSC Staff Report reflected many of the concerns shared by KYSES and the Joint Intervenors, and placed the utilities on notice that they need to meet a higher standard in their planning process.

Key points from the PSC Staff Report include:

  • LG&E/KU produced an incomplete plan that failed to evaluate all reasonable resource options and overlooked many cost-effective strategies.
  • The IRP failed to examine continuation or expansion of LG&E/KU’s Demand-Side Management (DSM) and energy efficiency programs, which help customer’s save energy and lower their bills, despite their past success and proven track record.
  • The IRP was disconnected from the reality of LG&E/KU’s actual planning.
    • The utilities argued that the IRP process was only an exercise, but the PSC made clear that the IRP process should result in an actual plan they intend to implement.
    • This disconnect was made plain when it was revealed that LG&E/KU are preparing to seek permission to build new Natural Gas Combined Cycle (NGCC) Generators, even though their IRP described NGCC units as “not viable.”
  • LG&E/KU’s treatment of carbon risk was inconsistent.
    • LG&E/KU’s parent company, PPL, has a commitment to reduce carbon emissions 70% by 2035 and to be net-zero by 2050, yet LG&E/KU’s IRP projects the utilities continuing to be heavily dependent on coal and natural gas beyond 2060.
    • The PSC noted that this inconsistency indicates the failure of the IRP to address critical assumptions in the utilities’ planning, which could result in their customers being stuck with the costs.
  • There were many shortcomings in the utilities’ modeling process, reinforcing the comments presented by the Joint Intervenor’s expert witnesses from Energy Futures Group.

Additional concerns with the IRP identified by the Joint Intervenors:

  • The IRP did not address how the plan would specifically impact its low-income customers and vulnerable communities.
    • Energy costs place an especially high burden on low-income customers and electric utilities have an important role to play in reducing this burden, yet this issue was neglected in the IRP.
  • DSM and energy efficiency offer major opportunities to reduce the need for new power plants, while lowering customer bills, yet these resources were given minimal attention in the IRP.
  • With the passage of the Inflation Reduction Act, extensive new resources are now available to support utilities and their customers to invest in energy-saving measures in their homes and businesses. Although the IRP process has now closed, members of the Joint Intervenors are continuing to participate in LG&E/KU’s ongoing DSM Advisory Group, to help produce comprehensive and effective customer efficiency programs.
  • Pay As You Save (PAYS) programs are whole-house customer energy efficiency services, in which the utility invests in energy efficiency improvements in the customer’s home, with the investment being repaid through the customer’s monthly utility bill.
    • PAYS programs are an innovative way to reduce the barriers to energy efficiency, especially for lower-income customers and renters, and have been successfully implemented by many utilities around the country, including in Kentucky. The PSC has directed LG&E/KU to study offering a PAYS program for their customers, and the Joint Intervenors are advocating for this through the DSM Advisory Group.
  • LG&E/KU should begin to treat distributed energy resources (DER’s), such as solar net metering, as a resource on par with other traditional resource options.
    • The utilities’ IRP offered an analysis that showed that if net metering were allowed to grow unconstrained, customer-owned solar could provide over 500 Megawatts (MW) of power by 2030 (compared with less than 30 MW today). Despite the fact that all of this investment would come from the customers themselves, requiring no investment from the utilities, they did not evaluate DER’s as an actual resource in the mix that could help meet their customer’s future needs.
    • The IRP assumes that net metering will be capped at 1% of the utilities annual peak load, a constraint that would limit net metering’s growth to under 100 MW into the 2030’s. However, while Kentucky statute requires the utilities to offer net metering until it reaches 1% of their annual peak demand, it does not prohibit them from offering it beyond that point. If net metering is found to be a low-cost resource that benefits customers, LG&E/KU could continue offering it beyond the 1% threshold.

The PSC Staff Report represents a notable change in how the PSC reviews utility IRP’s, raising expectations that future IRP’s will be handled with much greater seriousness and transparency by the state’s regulated utilities.

KYSES and our allies will continue to push utilities to create long-term plans prioritizing a rapid shift to clean, renewable energy, distributed generation, affordable access, and the health of our communities in response to our changing climate. KYSES is presently engaged in multiple cases before the PSC, including LG&E/KU's application to build substantial new generation capacity along with new demand side management programs (Case # 2022-00402) and the East Kentucky Power Cooperative's (EKPC) IRP (Case # 2022-00098).  


December 18, 2021

City of Frankfort Passes 100% Renewable Energy Resolution

At their October City Commission meeting, the City of Frankfort, Kentucky unanimously passed a 100% Renewable Energy Resolution. The Resolution calls for 100% clean renewable electricity for City government operations by 2023, 100% clean energy for City government by 2030, and 100% clean renewable electricity community-wide by 2030. The Resolution follows publication in March of a report by Apogee-Climate & Energy Transitions which detailed how Frankfort's local governments and public schools could meet 100% of their electricity needs with a 20 megawatt local solar facility, while reducing operational costs. Frankfort's 100% Renewables Resolution does not endorse any specific projects for achieving these goals, but establishes a clear direction and ambitious vision for Frankfort's energy future.

Click here to read the full text of Frankfort's 100% Renewable Energy Resolution.



November 15, 2021

RECORDING NOW AVAILABLE OF WEBINAR ON LG&E/KU NET METERING DECISION 

On Thursday, October 28, 2021 KYSES hosted a webinar, Net Metering Update: Review of KY PSC Order Adopting New Net Metering Rates For LG&E and Kentucky Utilities Co. To read about the webinar and view the recording, review the Past Webinars on our Events Page.


October 12, 2021

Solar Net Metering Preserved by Public Service Commission for Customers of LG&E and KU

Recent Order Another Step In Years-Long Effort By Solar And Affordable Energy Advocates to Ensure Fair Valuation of Solar Energy in Kentucky 

In an Order issued September 24th setting new net metering rates for LG&E and Kentucky Utilities Co., the Kentucky Public Service Commission (PSC) has again recognized the value of local, customer-owned renewable energy in Kentucky. The Order rejected LG&E and KU’s proposal to drastically reduce the value of solar energy exported back to the utility, which would have ended net metering and slashed the value of fed-back solar power by 75% to 2.3 cents/kWh. Instead, the Commission set the new compensation rate for net exported energy at 6.9 cents/kWh for LG&E and 7.4 cents/kWh for KU.

“This decision means solar continues to be accessible and economically attractive for small businesses, non-profits, and residential customers of LG&E and KU,” said Joshua Bills, a commercial energy specialist at the Mountain Association. “By recognizing the value that locally-owned solar has to the utility, the Commission has enabled Kentucky’s local solar businesses to continue to grow and serve our communities.”

This ruling builds on a previous decision issued in May 2021 in the Kentucky Power Co. rate case and reinforces the precedent set in that case. The Commission reaffirmed principles and best practices to be used by utilities for determining the value of distributed energy resources such as rooftop solar. The Commission identified multiple ways in which distributed solar resources help the utilities avoid costs and directed that these savings be credited to customers for the excess energy they supply to the grid.

In a statement following the Order, the Commission wrote, “LG&E/KU’s avoided cost calculations contain inconsistencies and in some instances are based on false or unreasonable assumptions. Their assumptions and process for estimating costs also failed to adhere to the guiding principles the Commission outlined in the Kentucky Power net metering Order.”

The Commission rejected the utilities’ claim that net metering customers provide no savings to the utility in the areas of generation, transmission, and distribution capacity, or by reducing carbon emissions.

The Kentucky Solar Energy Society participated in this case as one of four Joint Intervenors along with Kentuckians For The Commonwealth, the Metropolitan Housing Coalition, and the Mountain Association. They are represented by Tom FitzGerald, staff attorney for the Kentucky Resources Council, and received technical support from expert witnesses James Owen of Renew Missouri and Karl Rábago. The Kentucky Solar Energy Industries Association (KYSEIA) and Sierra Club also intervened in the case in support of fair net metering rates.

The testimony by the expert witnesses for the Joint Intervenors and KYSEIA played a critical role in preserving net metering for the customers of LG&E and KU. “This case shows the importance of allowing community stakeholders to fully participate in utility rate cases,” said Catherine Clement of Kentuckians For The Commonwealth. “The Joint Intervenors and KYSEIA’s witnesses provided substantive, detailed, well-researched testimony to the Commission, which helped produce an outcome which is fair, just and reasonable for all ratepayers, and will help the local solar industry to grow in Kentucky.  We appreciate the Commission’s acknowledgment that our perspective helps to forge a better outcome for all.”

This Order established new net metering rates for all customers of LG&E or KU installing solar after September 24, 2021. For those net metering customers with solar PV systems already in operation prior to September 24th, they have the right to continue operating under the original net metering rules for the next 25 years. Under original net metering, all energy exported to the grid is credited to the customer at the retail rate, currently about 10 cents/kWh for residential and 12 cents/kWh for small commercial customers.

Although the new net metering rates are about 25% lower than current retail rates, this reduced value only applies to net exports at the end of each monthly billing cycle. All solar energy produced and consumed on-site, within a billing period, is still fully credited against usage. The end result is that the changes adopted by the Commission will only reduce the value of a solar PV system by about 5% for future net metering customers who install enough solar to meet 100% of their annual needs. For customers with smaller solar generators, the impact on their savings will be even less.                   

“We commend the Commission for their diligence and performing a fair and comprehensive analysis of the net metering issue,” said Cathy Kuhn of the Metropolitan Housing Coalition. “While we believe greater value for avoided carbon emissions should be credited to net metering customers, overall, an honest, transparent, and reasoned process was used by the Commission and has produced fair, just and reasonable net metering rates.”

To read LG&E and KU's updated net metering tariffs and the Kentucky Public Service Commission's Interconnection Guidelines, visit https://lge-ku.com/residential/net-metering



People across Kentucky are using solar energy to power their homes, reduce their energy bills, and protect the environment! Take a tour across the state and learn their Kentucky Solar Stories! Click here to start the tour!



June 8, 2021

KCC's Citizen's Resource Guide On Large Scale Merchant Solar is now available!


 

May 22, 2021

Kentucky PSC Issues Groundbreaking Order on Net Metering, Delivering Victory for Solar and Community Advocates

Commission Supports Principles Presented by Solar Advocates for Valuing Distributed Solar, Rejects Utility’s Proposed Rates

By Andy McDonald

            After more than six years of debate between solar advocates and Kentucky’s electric utilities, the Kentucky Public Service Commission (PSC) delivered a clear victory for solar advocates and the future of local, customer-owned energy resources in Kentucky. On May 14, 2021, the PSC issued a final Order in the first case to propose changes to net metering since passage of the controversial Net Metering Act of 2019 (SB100). In its Order, the Commission rejected Kentucky Power

Company’s proposed changes to net metering, which would have reduced the value of solar energy fed back to the utility to 3.7 cents/kWh (a 75% reduction). Instead, the Commission set the new compensation rate at 9.7 cents/kWh (12% below the retail rate of 11 cents/kWh).  

            The Order creates the framework for how the Commission will handle net metering in future rate cases brought by other utilities. The Commission acknowledged multiple benefits provided by distributed solar generation to the utility and ratepayers and adopted principles and best practices to be used for determining the value of distributed energy resources such as rooftop solar. The inclusion of the cost of carbon and the impact on jobs among the benefits to be considered is especially significant.

            The Kentucky Solar Energy Society participated in this case as one of three Joint Intervenors with Kentuckians For The Commonwealth and the Mountain Association. They are represented by Tom FitzGerald of the Kentucky Resources Council and received technical support from expert witnesses James Owen of Renew Missouri and Karl Rábago. The Kentucky Solar Energy Industries Association also intervened in the case in support of fair net metering rates. The Joint Intervenors and KYSEIA are now intervening in pending cases concerning LG&E and Kentucky Utilities Company. Decisions in these cases are expected in the coming months.

            This Order is a promising sign for the expansion of distributed energy resources in Kentucky. As the Commission stated, “Kentucky Power’s testimony framed the increases in solar PV as an operational challenge, while intervenors have demonstrated that solar PV provides an opportunity to integrate a new resource onto the power system. The Commission acknowledges that solar PV and other eligible generating facilities may, at some point in the future, create system challenges, but currently the Commission sees an opportunity to begin processes that will comprehensively integrate solar PV and other resources into the power system and provide significant benefits to ratepayers; participating and non-participating alike.” (p. 40)

            The Kentucky Solar Energy Society will be hosting a free webinar to review the PSC’s Order on Thursday, June 3rd at 7:00pm. Presenters will be Joshua Bills of the Mountain Association, Tom FitzGerald of the Kentucky Resources Council, and Andy McDonald of KySES. To register, click here.

To learn more about the PSC's Order, including a more in-depth article and to download the full Order, visit the KYSES Advocacy Page.



NEWS

KySES Q1 2021 Newsletter here

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January 15, 2021

Kentucky Public Service Commission Issues Ruling in Kentucky Power Rate Case #2020-00174

Commission defers decision on net metering, while providing important victories for community advocates on some issues, setbacks on others.

On January 13, 2021, the Kentucky Public Service Commission issued its order in Kentucky Power Company rate case #2020-00174. In addition to proposing a 25% rate increase for their 165,000 residential customers in Eastern Kentucky, KPC was proposing changes to their net metering tariff which would have reduced the value of customer-generated solar energy by 75%. The Kentucky Solar Energy Society partnered with the Mountain Association and Kentuckians for the Commonwealth to intervene in this case to defend the value of solar net metering and argue for fair rates for KPC’s customers. We were represented by Tom FitzGerald of the Kentucky Resources Council. James Owen of Renew Missouri provided expert witness testimony.

Regarding Net Metering:

  • The Commission deferred a decision on KPC’s proposed changes to net metering until a consultant hired by the Commission can advise them on the issue. The PSC will issue a final ruling no later than May 14, 2021. They gave KPC the option of implementing their new net metering rates within 15 days of this order, with the risk that those rates might be overturned by the Commission’s final ruling.
  • We scored a victory as the Commission cited KPC’s lack of a cost of service study as a reason to reject their proposed net metering rates.
  • We scored another victory as the Commission rejected KPC’s argument that their “avoided cost” was the appropriate value for customer-generated solar energy.

Regarding other topics addressed in the rate case issues, the PSC agreed with us on many important issues. Here is what our efforts helped to achieve:

  • The PSC reduced the total revenue increase sought by Kentucky Power by 25 percent, from $70 million to $52 million. 
  • KPC was granted a 9.3% Return on Equity (ROE), lower than the 10.0% ROE they had requested.
  • The PSC denied the company’s plan to spend tens of millions of dollars on new, advanced meters (AMI), sparing customers from additional charges to pay for those upgrades. While we see potential value in AMI metering, KPC failed to demonstrate how they would use AMI to provide the most benefit to their customers. KPC had also proposed to immediately begin charging all customers for the AMI meters, even though the deployment would be spread over multiple years, leaving many customers paying for new meters years before having one installed on their home.
  • The PSC rejected Kentucky Power’s proposed “declining block rates” for residential customers, which would have provided lower rates to their highest energy users. KYSES and our allies pointed out that this approach discourages investments in energy efficiency and rooftop solar and punishes households who attempt to manage their energy bills by conserving energy. 

Unfortunately, the Commission approved KPC’s request to increase the monthly customer charge that all residential customers pay, from $14.00 per month to $17.50 per month. Residential energy rates were increased from 9.8 cents per kWh to 11 cents per kWh, a 12% increase compared with the 25% increase sought by the utility.

KYSES will continue to work with our allies as the Commission deliberates upon KPC’s net metering proposal. Meanwhile, we have turned our attention to LG&E/KU’s rate case (#2020-00349 and 00350). LG&E/KU have also proposed new net metering tariffs which would drop the value of customer-generated solar energy to the “avoided cost” rate (under 3 cents per kWh). KYSES is intervening in these cases, once again with our friends at the Mountain Association and Kentuckians for the Commonwealth, along with the Metropolitan Housing Coalition, and we are being represented by Tom FitzGerald of the Kentucky Resources Council.

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September 17, 2020

KYSES Newsletter for Q3-2020 Released - September 2020

September 16, 2020

Kentucky Model Solar Zoning Ordinance Published by Kentucky Resources Council

The Kentucky Resources Council has published a Model Solar Zoning Ordinance for Kentucky to assist communities with regulating the siting of solar energy facilities in their area. According to KRC, "this Model Solar Zoning Ordinance is based upon a review of best practices from across the United States and is tailored to meet the unique needs of Kentucky, with the goals of encouraging appropriate siting of solar facilities and protection of the correlative rights of landowners to the use and enjoyment of their lands."

The need for solar zoning ordinances in Kentucky has arisen as more than a dozen large, utility-scale solar facilities have been proposed and are in the development process in the Commonwealth. You can find the Kentucky Model Solar Zoning Ordinance here

Merchant solar electric plants greater than 10 MW in size and intended to sell power into wholesale power markets are required to seek review and approval before the Kentucky State Board on Electric Generation and Transmission Siting. The Siting Board is administered by the Public Service Commission. The Siting Board applications for all merchant solar facilities pending before the PSC can be found at the PSC website

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August 21, 2020

KySES Webinars

Visit our Event Page to view recordings of past webinars. 

Thursday, October 22 - Louisville’s 100% Renewable Energy Resolution

Presenters: Nancy Givens, Sam Avery, and Wallace McMullen of the 100% Renewable Energy Alliance of Louisville.

In February 2020 Louisville Metro Council voted in support of a resolution to meet 100% of Louisville’s energy needs with renewable energy. What are the details of the Resolution? How did local citizens get it passed? How will it be implemented? What lessons were learned to help other cities move to 100% renewable energy?

Friday, August 28, 2020 - Status of Net Metering & Rooftop Solar in Kentucky: How Kentucky’s Solar Industry is Handling the Pandemic, Economic Crisis, & Net Metering Uncertainty

Presenters: Matt Partymiller, Solar Energy Solutions

John Cotton, Wilderness Trace Solar

Moderator: Andy McDonald, Apogee - Climate & Energy Transitions

Wednesday, September 23, 2020 - Cincinnati’s 100% Renewables Commitment & the Green Cincinnati Plan

Presenter: Oliver Kroner, Sustainability Coordinator, City of Cincinnati

In 2018 the City of Cincinnati committed to a community-wide transition to renewable energy by 2035. Last year they announced plans to build a 100 MW solar facility to supply the City’s electricity needs, the nation’s largest City-led solar project. Oliver Kroner, the City’s Sustainability Coordinator, will discuss these efforts and their Green Cincinnati Plan.


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August 7, 2020

Kentucky Power Company Files First Rate Case Seeking to Change Net Metering Terms - KySES Joins Other Community Advocates to Formally Intervene in Rate Case

On May 29, 2020, Kentucky Power Company (KPC) filed a Notice of Intent with the Public Service Commission to open a general rate case. Their filing includes proposed changes to their net metering tariff which would sharply reduce the value of solar generation for their future net metering customers. It would place solar customers into a complicated time-of-use rate structure and would greatly under-value excess solar generation fed back to the utility.  

KPC's filing also proposes large rate increases for residential customers - a 25% increase to both the fixed customer charge (rising to $17.50 per month) and the energy charge (rising to $0.12/kWh). During this time of economic crisis, with so many families struggling through the coronavirus pandemic, KYSES stands opposed to these large rate increases. 

KySES will be co-intervening in the rate case along with the Mountain Association and Kentuckians For The Commonwealth (KFTC) and will be represented by Tom FitzGerald of the Kentucky Resources Council. Our petition to intervene was approved by the PSC on August 5, 2020, despite KPC's motion objecting to KySES' intervention. 

KySES has joined the Mountain Association and KFTC to intervene in the rate case to advocate for fair solar net metering policies and reasonable rates for the customers of Kentucky Power. Formally intervening in the rate case allows KySES and its partners to fully engage in the ratemaking process with testimony, discovery, and cross-examination.

This is the first rate case filed by a Kentucky electric utility since passage of the controversial anti-net metering bill in 2019. SB100 directed the PSC to determine the net metering rates used to compensate solar customers, a measure solar advocates fear could lead to the devaluation of customer-owned solar energy and the suppression of Kentucky’s emerging rooftop solar market. As the first rate case that will address changes to net metering, this case may establish precedent for how the PSC will handle the net metering issue for all of the state’s regulated utilities.

KySES member Seth Long is a resident of Ermine, Kentucky, the Executive Director of HOMES Inc., and a net metering customer of Kentucky Power. “Solar energy has enormous potential for the people of Eastern Kentucky,” said Mr. Long. “The cost of solar power has fallen 80% to 90% in the last 10 years, making it accessible to so many more people. Rooftop solar could help so many people in our area get control of their rapidly rising energy bills and gain some financial security. That’s why I am so disappointed with Kentucky Power’s proposal to cut the compensation rate for net metering and undermine their customer’s ability to benefit from solar energy.”

Concerned citizens may file public comments in this rate case. To send comments via email, include the case number (2020-00174) within the subject line and send to psc.info@ky.gov. Provide your full name and place of residence in the body of the e-mail. You can also mail your comment: Public Service Commission, 211 Sower Boulevard, Post Office Box 615, Frankfort, Kentucky, 40602-0615. Public comments, although accepted at any time, are suggested to be sent by the hearing scheduled for November 18-19, 2020. Case documents may be found at: https://psc.ky.gov/PSC_WebNet/ViewCaseFilings.aspx?case=2020-00174  

For more information, please contact Andy McDonald, vice-chair, Kentucky Solar Energy Society, at 502-699-2553 or Andy@ApogeeClimate.org.


April 30, 2020 

Net Metering still available in Kentucky - no utility action to change rates, so far. 

The Kentucky legislature passed SB 100 in 2019 to make changes to net-metering regulations. However, changes to net metering will not go into effect until the Public Service Commission (PSC) rules on rate cases brought by each electric utility. Therefore, full retail-rate net metering is still available in Kentucky for any systems installed before utility rate cases are resolved.


SB 100 allows utilities to recover their costs associated with net metering from net metering customers and directs the PSC to rule on how this should be done. These changes will be addressed through rate cases brought before the PSC by electric utilities.  


SB 100 allows all systems installed before the new utility rates are established to be grandfathered for 25 years under the existing net metering rules and receive full retail credit for excess power supplied to the grid. 


As of April 30, 2020, no utilities have filed rate cases to change their net metering tariffs, therefore Kentuckians still have access to traditional net metering. 



February 12, 2020

'Energy for the People Lobby Day' 

The 2020 'Energy for the People' lobby day was a real success.  50 people came to Frankfort to lobby legislators.  Many participants reported worthwhile conversations with legislators at the end of the day.


But, despite our best efforts, HB 323, which would have fixed problems with last year's SB100, was not acted on by the House Natural Resources and Energy Committee.  Calls and messages to the House leadership and to the Republican members of that committee urging them to take action were to no avail this year.








                                                                              


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