Tag Archives: demand charges

What’s The Matter With Kansas? Demand Charges, That’s What

By Frank Andorka, Senior Correspondent

Ah, Kansas, why did you go and have to be the exception?

The Kansas Corporation Commission (KCC) (which regulates its utilities) decided last week to grant the proposals made by the state’s two largest utilities – Westar Energy and Kansas City Power & Light to lower utility bills for everyone in their service areas except solar users.

For some reason, the KCC decided it would allow solar users to be penalized for generating their own electricity by hitting them with a demand charge that could cost solar users anywhere between $27 and $36 a month, according to calculations by the Wichita Eagle.

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When we originally wrote about this last month, we had hoped Kansas would continue the trend shown by so many other regulatory bodies, in finding demand charges to be too confusing for average customers to understand. And in the case of Westar, we were also hoping the KCC would reject the ridiculous zombie lie that solar users don’t pay their fair share of grid upkeep, which reared its ugly head again in the Westar argument.

This is the “cost shift” argument which, for those of you who have not followed our work on this before, plays out thusly:

As we’ve discussed ad nauseum, the solar “cost shift” doesn’t happen until at least 10% of a state’s electricity comes from solar power, something that is occurring in only five states. That leaves 45 states where the cost-shift is a flat-out lie, and in the five remaining states, the “cost shift” is fractions of a penny per kilowatt-hour.

But unfortunately, the KCC allowed the wool to be pulled over its eyes. In its ruling, it wrote (again quoting the Wichita Eagle):

“The Commission finds that, in Westar’s case, under the two-part rate design for (solar) customers currently in place, the (solar) customers are receiving a preferential rate,” the commission said in its order approving the settlement.

Ugh, for the last time, SOLAR USERS AREN’T GETTING PREFERENTIAL TREATMENT, FOR CRYING OUT LOUD. That’s a lie. It’s nonsense. And you on the KCC should have been smart enough to recognize it as such.

It’s so disappointing to see a misguided ruling such as this because it will essentially strangle Kansas’ budding solar industry before it even gets to take its first breath – and that’s a damn shame.

More:

New Westar Energy rates will benefit average customer but not solar power users

Proposed Kansas Demand Fees Could Bring Solar Installations To A Screeching Halt

Illinois Energy Bill Makes Progress – Demand Charges Are Dropped

 Senate Bill 2814 introduced during the regular session came back during the latest special session with a new amendment, House Amendment 2. This amendment had multiple objectives but the primary one is a mechanism to keep two nuclear power plants in operation. The two plants, Clinton Power and Quad Cities, were announced to be closed on June1st 2017 and 2018, respectively.

The Zero Emission Standard is the vital part of the bill that Exelon has stated would allow the plants to remain in operation. The bill also includes a fix of the renewable portfolio standard and energy efficiency investments, both touted as a positive step forward by the environmental lobby.

Two sections of the amended SB 2814 are worrisome to the solar industry, the net metering changes and demand charges. The demand charge section is onerous in its complexity, it would render the ability for consumers to know how to use energy cost effectively impossible. At the same time, it would be increasingly difficult for solar installers to explain the potential savings to homeowners or business that want to invest in solar.

Yesterday, the Governor’s Policy Advisor on Energy, Jason Heffley, found the demand rates to be “insane rates” and should be rejected. On a policy call, Representative Will Guzzardi, who sits on the Energy Committee currently reviewing the bill, said that he would not be surprised that the bill would pass without dropping the demand charge language.

Today, Governor Rauner’s team met with officials from ComEd and Exelon to discuss the issue of the demand charges. Shortly after the meeting, ComEd announced that it was dropping the demand charge provisions from the bill. The nuclear power plants, the company stated, will stay open for at least another decade.

In a statement from TASC spokesperson, Amy Heart said about the agreement, “There may still be important tweaks needed to the bill, including ensuring a full stakeholder process at the Commission when the 5% net metering cap is reached to guarantee a fair valuation of the benefits of rooftop solar, ensuring distributed solar can continue to thrive, creating job opportunities and improving Illinois’ environment.”

By Yann Brandt, November 22nd, Updated 10:07pm