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Group Wants FERC To Set Compensation For Excess Generation From Behind-The-Meter Generation
April 16,2020 The New England Ratepayers Association filed a Petition for Declaratory Order at FERC requesting that the Commission (i) declare that there is exclusive federal jurisdiction over wholesale energy sales from generation sources located on the customer side of the retail meter, and (2) order that the rates for such sales be priced in accordance with the Public Utility Regulatory Policies Act of 1978 (“PURPA”) or the Federal Power Act (“FPA”), as applicable. Such compensation for wholesale sales would usurp "full net metering" (FNM) or other policies set by state authorities The New England Ratepayers Association said that, "Because all generators located on the other side of the retail meter must sell their energy at the locational price of energy ('LMP'), or at avoided cost if they are a QF, FNM compensates the sellers of one category of energy at a significantly higher price." "This discriminatory pricing distorts the wholesale market for energy in favor of FNM sellers that do not have to compete, inappropriately causes capital investment to be shifted toward the favored class of sellers, and reduces or eliminates the incentive for FNM sellers to innovate or invest in storage or other technologies that will improve the quality and efficiency of their product," the New England Ratepayers Association said Docket EL20-42
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