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. UPCOMING WEBINAR: Thursday October 28, 2021 at 6:00pm EDT Net Metering Update: Review of KY PSC Order Adopting New Net Metering Rates For LG&E and Kentucky Utilities Co. To learn more and register, visit 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.” # #
The American Solar Energy Society has just hosted its annual National Solar Tour and we have locations in Kentucky that participated. The Kentucky Solar Energy Society (https://www.kyses.org/) encourages you to look at the sites in Lexington, Wilmore or Louisville that were featured during this annual event on Saturday, October 2. You can see them via the national Solar Tour links shown, or check out the SOLAR STORIES, just below. Lexington Tours: Host Barbara Szubinska featured her 28 solar panels and electric car with a level 2 charging station and Tesla battery (104 Wabash Drive, Lexington. Wilmore Tour: Louisville: "Perkins Home" Tour, George Perkins 3411 Goose Creek Rd. Louisville, KY For more info, contact Lane Boldman, 859-552-1173. # #
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. # # May 19, 2021 KYSES Upcoming Webinars & Annual Meeting Due to the Covid-19 pandemic, KYSES will not hold an in-person Annual Meeting this year. Instead, we are hosting the following series of free webinars, beginning May 26th. We look forward to resuming in-person gatherings, hopefully later this year. Wednesday, May 26th - 7:00pm EST: Local Solar, Local Savings: How to Cut Electricity Costs in Half for Public Schools and Local Governments in Frankfort with 20 MW of Solar PV Thursday, June 3rd - 7:00pm EST: Net Metering Update - Review of Ky PSC Order Adopting Changes to Net Metering for Kentucky Power Co. Wednesday, June 9th - 6:00pm EST: Advances in Battery Storage Technologies For webinar descriptions and to register, visit our Events page. # # NEWS ## 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:
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:
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. ## 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. ## 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. # # # 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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