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Council approves revised net metering policy, raises commercial system cap

2213700 · January 16, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The council approved changes to the electric utility’s net metering policy, increasing the commercial system size limit and incorporating renewable energy certificates into the avoided-cost credit calculation.

The Escanaba City Council approved a revised net metering policy on Jan. 16 that raises the allowable size of commercial customer solar systems and updates how excess generation is credited.

City staff described the policy as an update to reflect technological and market changes since the policy was first adopted. Jerry Percola, who explained the revisions to council, said the policy increases the commercial nameplate capacity limit from 20 kilowatts to 500 kilowatts and adds renewable energy certificates (RECs) to the avoided-cost calculation used to credit customers for exported energy.

Percola told the council the avoided-cost calculation is complex and is reviewed annually; staff’s current calculation puts the avoided-cost credit at about 4.93 cents per kilowatt-hour. He said the city treats commercial and residential exports with the same avoided-cost rate and that customers with systems that previously did not meet older limits can reapply under the revised policy.

Council members asked for more transparency on the avoided-cost numbers; Percola said staff can post the detailed calculation. The Electrical Advisory Committee reviewed and recommended the policy before it reached council, and council discussion referenced the committee’s involvement.

A motion to approve the revised net metering policy passed on a roll-call vote with the following recorded responses: Councilor de Boer — Yes; Councilor Moore — Yes; Councilor Bausch — Yes; Councilor Flau — Yes; Mayor Hamill — Yes. No dissenting votes were recorded in the transcript.

The policy also reaffirms the city’s community solar program: staff said roughly 2,000 panels remain available and that panel “shares” have been sold to about 650 participants; a panel share price is in the roughly $300 range and credits typically begin appearing on customers’ bills within a month, depending on monthly generation.