Wyoming Supreme Court narrows reading of net‑metering statutes, court says PSC must set monthly credit rates

Committee counsel Josh Anderson briefed lawmakers on the Wyoming Supreme Court’s Aug. 30 decision in Powder River Basin Resource Council v. Wyoming Public Service Commission. The court reversed a PSC approval of High Plains Power Co‑op’s tariff change that had substituted avoided‑cost (wholesale) compensation for the monthly kilowatt‑hour credit that customer‑generators receive.

The net‑metering statutes at issue (Wyo. Stat. Ann. § 37‑16‑101 et seq.) provide for a monthly credit for excess kilowatt‑hours and an annual true‑up at avoided cost. The court held the avoided‑cost language belongs in the annual true‑up (the statute’s subsection B) and may not be read into the monthly credit provision. The court concluded the PSC’s decision improperly substituted an interpretive rule for the record‑based rate determination required in a tariff proceeding, and said the burden is on the utility to prove proposed rate changes are just and reasonable through rate‑making evidence.

Implication: Anderson and committee members said the decision will likely lead to more PSC rate proceedings and require cooperatives and utilities to demonstrate the reasonableness of monthly credit rates for customer generators on a tariff‑by‑tariff basis, which could increase regulatory scrutiny and affect rural cooperative customers.

Closing note: committee members discussed practical effects and whether this decision will accelerate legislative attention on net‑metering statutes or co‑op regulation.