Net Metering and Interconnection Update

1. Net Metering and Interconnection Update June 25, 2011 Michigan Energy Fair Michigan Public Service Commission

2. Definitions Net Metering: Customer generated electricity offsets electricity provided by the utility. Interconnection: Linking the generating facility to the utility’s electric delivery system (grid) Michigan Public Service Commission

3. The Past The Current • Voluntary • Low Interest • Complicated • Inconsistent • Mandated by law • Awareness • Net Metering on bill • Standardized Michigan Public Service Commission

4. Standardized by Size Michigan Public Service Commission

5. Net Metering • Billed for Net Usage ELECTRICITY FROM GRID (ELECTRICITY SENT TO GRID) NET USAGE • Per law signed in October 2008, State government has established a statewide program Michigan Public Service Commission

6. True Net Metering • ≤ 20 kw generation • $25 fee is required • If excess meter is required it will be provided by utility (unless >1M customers) • CR the full retail rate for all excess kwh • No interconnection costs Michigan Public Service Commission

7. Net Metering Example Month One Total Usage 500 Purchased 450 Generated 50 At 9 cents a kWh: Bill is $40.5 + per meter charges (used all that was generated, did not send any to grid) Month Two Total Usage 550 Purchased 300 Generated 400 Credit = 150 net usage (sent to utility) * 9 cents = $13.5 Still billed for full value of per meter charges (cr applies to kWh usage only) Month Three Total Usage 500 Purchased 500 Generated 0 9 cents a kWh = $45 less $13.5 from prior month credit = $31.5 + per meter charges Michigan Public Service Commission

8. Modified Net Metering • >20 kW to 150 kW generation • CR the generation portion of rate • No standby charges Michigan Public Service Commission

9. Category Three • Methane Digester • >150 to 550 kW • Standby charges applied Michigan Public Service Commission

10. Restrictions of Net Metering • Limited participation • .5% Category One • .25% Category Two • .25% Category Three • Limited Generation Michigan Public Service Commission

11. Interconnection • Category One: 20 kW and under • Category Two: >20 kW to 150 kW • Category Three: >150 kW to 550 kW • Category Four: >550 kW to 2 MW • Category Five: >2 MW Michigan Public Service Commission

12. Interconnection Fees Michigan Public Service Commission

13. Update to Net Metering and Interconnection Michigan Public Service Commission

14. Scorecard Michigan Public Service Commission

15. Number of Customers Federal Incentives • Energy Efficient Mortgages • Renewable Energy: Solar • Tax Credit • Renewable Energy: Biomass • 30% Tax Credit • Renewable Energy: Multiple • Personal Exemption Michigan Public Service Commission

16. Installations by Technology Federal Incentives • Energy Efficient Mortgages • Renewable Energy: Solar • Tax Credit • Renewable Energy: Biomass • 30% Tax Credit • Renewable Energy: Multiple • Personal Exemption Michigan Public Service Commission

17. Capacity and No. of Customers Federal Incentives • Energy Efficient Mortgages • Renewable Energy: Solar • Tax Credit • Renewable Energy: Biomass • 30% Tax Credit • Renewable Energy: Multiple • Personal Exemption Michigan Public Service Commission

18. Net Metering Participants Federal Incentives • Energy Efficient Mortgages • Renewable Energy: Solar • Tax Credit • Renewable Energy: Biomass • 30% Tax Credit • Renewable Energy: Multiple • Personal Exemption Michigan Public Service Commission

19. System Locations December 2010 Federal Incentives • Energy Efficient Mortgages • Renewable Energy: Solar • Tax Credit • Renewable Energy: Biomass • 30% Tax Credit • Renewable Energy: Multiple • Personal Exemption

20. res Federal Incentives • Energy Efficient Mortgages • Renewable Energy: Solar • Tax Credit • Renewable Energy: Biomass • 30% Tax Credit • Renewable Energy: Multiple • Personal Exemption

22. Michigan.gov/NetMetering • Katie Trachsel, CPA • TrachselK@Michigan.gov • (517)373-1808 Michigan Public Service Commission