DE 16-576
Development of New Alternative Net Metering Tariffs and/or Other Regulatory Mechanisms and Tariffs for Customer-Generators
Order Addressing Certain Grandfathering Issues ORDER NO.26,047
August 18, 2017
In this Order, the Commission addresses two specific questions regarding grandfathered status for net-metered customer-generators, as identified in the Commission’s Order No. 26,029 issued on June 23, 2017 (June 23rd Order). In the June 23rd Order, the Commission approved the adoption of an alternative net metering tariff to be in effect for a period of years while further data is collected and analyzed, pilot programs are implemented, and a distributed energy resource valuation study is conducted. Renewable energy distributed generation (DG) systems that are installed or queued during that period of years will have their net metering rate structure grandfathered until December 31, 2040, consistent with the grandfathered status afforded DG systems installed or queued prior to that period of years by statute or prior Commission order.
We clarify in this Order that subsequent transfers of ownership of a net-metered DG system or of the property upon which the system is located will not affect its grandfathered status, provided that the system is not moved to a different location. We also determine that subsequent DG system expansions or modifications will not affect grandfathered status except in certain situations for commercial or industrial customers. Small systems (100 kW or less) that expand by more than the greater of 20 kW, or 50 percent of existing capacity, will not be grandfathered. Large systems (above 100 kW) that expand by more than the greater of 50 kW or 110 percent of the customer-generator’s annual on-site load, as demonstrated through historical documentation, will also not be grandfathered. In addition, for either residential or commercial and industrial customer DG systems, any expansion that changes a system from a small to a large customer-generator, or from a large customer-generator to an ineligible system, will result in the entire system losing its grandfathered status.
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