Cooperative Policy

Policy Number:     117

Subject:                Net Metering

Objective:             To define net metering and to state the Cooperative's policy regarding net metering in compliance

                             with the Energy Policy Act of 2005, PURPA 111(d) Standard (11).

Reference:            Energy Policy Act of 2005, PURPA Title I Standards, SEIEC Management Recommendations,

                             April 18, 2007

For purposes of this policy, net metering means service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the Cooperative to the electric consumer during the applicable billing period.

The Cooperative will not offer net metering.  Net metering undermines the equity of retail rates by providing member-generated energy to be netted on a one-to-one basis with Cooperative provided energy.  Net metering would compensate member-generators for services that are included in the Cooperative's retail rate that the member-generator is not supplying including the costs to provide transmission, distribution, operations and maintenance.  These costs would have to be recovered from all other members on the Cooperative's system, leading to a cost shift from member-generators to all other members on the system.  Net metering would result in inequitable rates for electric consumers.

Approved:  August 7, 2007