Proposed changes to net metering

Under the current Net Metering structure, solar customers are billed at a flat rate that doesn’t account for the higher costs of electricity during peak demand hours-typically from 5 to 9 p.m. on weekdays. During these hours, the cost to generate, purchase and deliver electricity is significantly higher, but solar production is typically low or nonexistent.

Because solar customers still rely on the grid during these peak times but aren’t charged rates that reflect those costs, the difference — about $600 per year per solar customer — is effectively being covered by non-solar customers. This cost shift means that customers without solar are paying more to maintain grid reliability and meet peak demand, even though they don’t benefit from net metering credits.

The proposed changes aim to correct this imbalance so that all customers contribute fairly to the cost of delivering electricity, while still supporting solar adoption in our community.

No. We value the investment solar customers have made and recognize the role solar plays in our energy future. With the help of customer feedback, we revised the demand charge methodology to make it more predictable and manageable, giving solar customers more control over their bills.

 We’ve seen a significant increase in solar adoption, about 1,000 new Net Metering customers annually, prompting us to address the cost-shifting. 

The demand charge will be based on the average of your daily highest 15-minute demand during on-peak hours (Monday - Friday, 5 p.m. - 9 p.m.) per billing period. This replaces the previous proposal, which used the single highest 15-minute demand in the billing period. The new method provides a more balanced and predictable measure of demand.

This means we look at your highest burst of energy use each day during peak times, then average those values over the month. The less electricity you use at once during peak hours, the lower your demand charge.

For example, running an EV charger, dishwasher and clothes dryer all at once during peak hours will result in a higher demand than if those appliances are used at different times. By spreading out usage and shifting to off-peak hours, you can reduce your demand charge.

While kWh usage is measured and applied to energy rates and credits, it doesn’t fully capture the cost of maintaining grid readiness for high-demand moments. The demand charge better reflects the infrastructure and capacity costs associated with peak demand. 

The median net metering customer is expected to see a bill increase of approximately $25/month. However, this amount can vary significantly depending on your usage patterns. Customers who shift high-demand appliances to off-peak hours and spread out their usage during peak times can reduce their demand charge and lower their bill. 

 Yes. You will continue to receive credits for excess energy sent back to the grid. The proposed changes affect how peak-related costs are recovered, not the crediting mechanism itself. 

 No, the 120% usage limit will remain in place. This limit applies to all solar installations and is designed to ensure that systems are sized to match a customer’s typical annual electricity use - not to significantly exceed it. 

No. The electric grid does not store electricity. Power must be used as it is generated. While utility-scale batteries are an emerging technology that we do have in our portfolio, they currently cannot store large amounts of energy for extended periods of time. This is why grid reliability depends on having flexible, dispatchable resources available during peak demand hours, especially when solar production drops.

Electricity consumption, measured in kilowatt-hours (kWh), represents how much energy is used. Electricity demand, measured in kilowatts (kW), represents the strength or intensity of energy used. Check out our kW vs. kWh video to learn more.

As a community owned utility, demand is a key factor of our electricity costs.