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Lewisburg adopts small-generator/net-billing ordinance; sets avoided-cost credit at 5¢ per kWh for commercial producers
Summary
Council approved an amendment to Chapter 38 creating an avoided-cost net-billing rate (5¢/kWh) and a standby supplemental rate (proposed $1.00–$2.50) for inverter-based systems, aimed initially at commercial and industrial customers above a 50 kW threshold; residential inclusion may be considered later.
The Lewisburg Town Council adopted an amendment to its utilities code (Chapter 38) to establish rates and a net-billing rider for small generator and inverter-based systems, including solar installations.
Presenter Terry Satterwhite told council that Electric Cities and the North Carolina Electric Municipal Power Association helped calculate an avoided-cost rate of 5¢ per kilowatt-hour (applied as a monthly bill credit) and a standby supplemental rate proposed at $1.00 to $2.50 to cover infrastructure and replacement power when a generator is not producing. The policy is designed to cover commercial and industrial customers first; Satterwhite said the town currently maintains a 50-kW threshold that generally excludes residential systems.
Satterwhite said Lewisburg had been approached by a potential customer (referred to in the transcript as Carly Sees/Sieff; spelling varied) seeking to install solar. The ordinance and net-billing rider were presented as a way to compensate such producers rather than send direct payments; instead the avoided-cost rate would appear as a deduction on a producer's monthly bill.
Council members asked whether the policy would affect gas generators and whether it would be competitive with neighboring communities. Staff said the policy is intended to be competitive and that residential inclusion could be considered later if residential proposals increase.
The council moved and approved the ordinance amendment by voice vote.
Ending: Staff will proceed with ordinance enactment steps and work with Electric Cities on implementation and potential residential policy adjustments in the future.
