By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

An ongoing controversy in New Mexico over stand-by fees on solar customers may finally becoming to an end, according to an article in the Santa Fe New Mexican.

A hearing officer recently recommended that regulators make Southwestern Public Service Co. stop collecting a “standby fee” from customers with solar systems, saying a study the utility used to justify the fees is “riddled with errors and unreliable.”

Color me shocked (not shocked): A utility is using flawed materials to justify treating solar customers like separate-class citizens. Sounds an awful lot like the "cost shift zombie myth" we spend a lot of time debunking around these parts. Wait, the zombie lie is part of this bad information? Of course it is. As hearing officer Carolyn Glick wrote in her finding suggesting the fees be done away with:

the company failed to demonstrate the surcharge “appropriately recovers the costs of ancillary and standby services” used by solar customers or that the fees are “based in any actual difference in costs the company incurs to serve [solar] customers.” Glick wrote that Southwestern Public Service can’t show it “provides distinct ‘standby service’ for [solar] customers that it does not already provide to all full-requirements customers.” She also said the utility can’t show that solar customers “are not already paying their proportionate share of system costs.”

Solar advocates like Vote Solar and the Coalition for Clean Energy blame the fees for stunting solar growth in the state, which goes against other efforts by the state to encourage solar growth, including requiring utilities to include storage in their long-term resource plans and the creation of a disclosure form that makes installing solar much safer for consumers. At the end of the day, these "stand-by" charges are just fixed charges by another name. Here's hoping the New Mexico Public Regulation Commission recognizes them for the price-gouging they are and eliminates them from solar customers' bills. More: PRC asked to end fee charged to Eastern New Mexico solar users

SB 700 Advances In CA. After a great day of lobbying by the 200 solar pros in Sacramento, SB 700 came out of the House Appropriations committee with a positive vote on Thursday evening. This means that the bill heads to the House floor and is expected to come to a vote. If successful, the bill may head to the Senate before going to Governor Brown. This is a fantastic bill that extends the SGIP funding for 5 years and lays the groundwork for future Governor Newsom to lead solar further down the road. A 5 year SGIP is key to solar’s growth given the importance of storage within a solar value proposition in time of use rates. California would lead the volume that drives the cost of storage down for States that are a bit more aggressive on net metering than pro-solar markets.
SC Utility Board Ousted. As I often do, I go to Twitter to see what is happening and a story made its way through energy Twitter on Saturday. A shareholder meeting of a co-op utility in South Carolina was gathering a crowd that was far bigger than any before it. When it was all done, shareholders voted to fire the board by an overwhelming margin for abusing their positions and excessive pay amongst other things. It’s an incredible story that could be a precursor for utilities across the Country if they abuse their positions.
Module Costs Decline. I’ve stopped guessing what happens to the stocks, especially solar stocks but this review of First Solar takes the view of module costs which is interesting. What happened to the pricing after tariffs and where is it going? I’ve heard not only Chinese pricing but all module prices dropping consistently into a market favorable way. Let me know what you’re seeing.
The Impact Of Policy. Utah is a strong solar market and has shown great residential solar growth. Some of the largest residential solar companies are based there. But with limited local advocacy support there was a change in net metering that has caused a bit of a reset. I’ll be looking at the State chapters a year after speaking with many of the State chapter directors to see how the industry can prop them up.
Solar Compared To Homebuilders. Homebuilders have national brands but for the most part they are quite fragmented like the solar industry. Jon Carson uses homebuilders as an example of a market that does very well in DC. Here’s my discussion with him.

Have a great day!

News

 

Have a great day!
Yann

By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

Last week, more than 200 solar + storage advocated descended on Sacramento to push for passage of of a significant energy storage bill. Their efforts seem to have had the desired effect, as SB 700 - an energy storage bill that fell completely off the legislative radar last year - is now front and center as it moved out of the Assembly's Appropriations Committee and on to the full assembly floor. The bill would extend the incentives for the popular Self-Generation Incentive Program (SGIP). Between it and SB 100, which would move California to a 100% renewable portfolio standard (RPS), the next three weeks could be absolutely critical to pushing the full clean energy agenda forward in The Golden State. As Bernadette Del Chiaro, executive director of California Solar & Storage Association, told the attendees of its Lobby Day, now is not the time to get complacent. Del Chiaro wrote in a note:

We now have three weeks to put the bill on the governor’s desk. Next week, if all goes well, SB 700 will be put to a floor vote giving all 80 assembly members a chance to vote for it. We need at least 41 votes to ensure its passage out of the assembly. Stay tuned for action alerts on how you can add your voice to this effort. If we clear the assembly, we’ll head back to the senate for a concurrence vote. The bill passed the senate last year with 23 votes (need a minimum of 21) and faces less opposition this year due to amendments taken in the assembly. But you never know. It is the end of session so things get a little crazy. We need to be loud and stay vigilant.

The momentum started at Lobby Day next week is the perfect example of what a motivated, strong show of support for solar at the state level can do. We applaud Del Chiaro and urge solar industries in other states to study and learn from California's example. Together, we are an unstoppable force. Let's translate California's success into success across the country. Oh, and stay vigilant, California - your battle isn't over quite yet.

By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

From an outsider's perspective, it sure looks like Gov. Paul LePage of Maine is winning his longstanding war on solar. Armed with zombie lies about cost shifts and allowing utilities to run amok with special burdens on solar users, LePage has fought for at least three years to strangle the solar industry in his state, vetoing three different pieces of legislation that would have helped set the Maine solar industry on more solid footing. Now the Supreme Court has gotten into the act, saying solar advocates' attempts to challenge current net metering policy to the state's highest court was improper and sending the case to a lower court. Current net metering reduces compensation rates over time and only grandfathers current solar installations at full retail net metering for 15 years. Critics say 15 years isn't long enough to receive full payback on the system, to which LePage and his allies scoff, point and laugh. The Supreme Court, on the other hand, said, "Go away kids, you're bothering us." The case will now be handled by a lower Superior Court. The crux of the issue in the case is best laid out in the Portland Press Herald:

During those arguments, the justices were already questioning whether it was appropriate for the state’s top court to handle the case. Under Maine law, challenges to PUC rules typically go before Superior Court judges first, but the law foundation appealed directly to the Supreme Judicial Court. The foundation had argued the rule was actually a rate change, which can be appealed directly to the higher-level court. The justices ultimately dismissed the foundation’s appeal of the rule. In her written opinion, Chief Justice Leigh Saufley said the foundation is required to take its case to a Superior Court before it can come before the Supreme Judicial Court.

The case isn't over yet, but it does look like it's going to be a long slog for solar advocates in the state, especially in the face of such overwhelming opposition from the governor's mansion. It's worth paying attention to and supporting our solar sisters and brothers in the state as they continue the largely thankless job of advocating for solar in such a state. Godspeed to all of you. More: Maine’s top court says appeal of changes to solar incentives must go to lower court