Rep. Chris Morrow seeks cap on negative net‑metering adjuster and protection for behind‑the‑meter use

House Energy and Digital Infrastructure Committee · January 31, 2026

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Summary

Representative Chris Morrow introduced H.716 to cap the negative rate adjuster at 4¢ and to exclude behind‑the‑meter consumption from that adjuster, aiming to support rooftop solar and reduce barriers created by shrinking federal credits and PUC rate adjustments.

Representative Chris Morrow told the committee he introduced H.716 to protect residential distributed solar and to make it easier for homeowners to install rooftop systems and pair them with storage. "If you grow your own tomato, you're not paying taxes on your tomato," Morrow said, using the image to argue that energy produced and used on site should not be penalized by state rate adjustments.

The bill would cap the PUC's negative rate adjuster at 4¢ and would clarify that energy consumed behind the meter is not subject to the adjuster. Morrow described how previous PUC adjustments have reduced the value homeowners receive under net metering, making projects harder to finance as federal tax credits decline. A committee member explained the mechanics: a household that generates 100 kWh, uses 10 kWh and exports 90 kWh could pay an adjuster on the exported amount and then buy back power later at a higher retail rate, producing an economic disadvantage under some current adjustments.

Members debated whether crediting exported energy at full retail would increase cost‑shift to other ratepayers, how subsidies factor into fairness, and whether time‑of‑use and value‑of‑solar mechanisms are alternatives to traditional net metering. The sponsor and members agreed that additional testimony—particularly from utilities and the Department of Public Service—would help quantify net benefits and regional differences in value of distributed solar.

The committee did not act on the bill; members suggested follow‑up hearing(s) with billing experts and utility representatives to better model cost shifts and benefits.