Read below "A little history" for background information about Bayfield Electric Cooperative's (BEC) change in net-metering policy. The top of this page is for current updates.
Update, September 2, 2020: Cheq Bay Renewables has completed a research project documenting net metering policy in Wisconsin's electric cooperatives. The resulting paper can be read in its entirety here. It was submitted to Bayfield Electric Cooperative in hopes their Board would consider its insights, recommendations and next steps.
Update, August 2020: The BEC Board met on August 6th, 2020 and one item on their agenda was the net-metering policy change. They reportedly discussed the subject at length. You might contact your Board member representative directly and ask him about this conversation and offer your suggestions. Check the table at the bottom of this page to find your board member's name and phone number. On August 7th, 2020, CBR emailed BEC with two suggestions they might consider as solutions to the net-metering issue.
BEC has said the purpose of their net-metering policy change is about fairness to all members. CBR agrees that any policy should be fair to all. One point that BEC has made is that the monthly facility charge does not cover all their fixed costs and some of this fixed cost is recovered in the kWh charge. BEC goes on to say a member with solar generation could offset all the kWh charge and not be paying their fair share of the fixed charges. BEC is also undergoing a current rate study being preformed by an engineering company. CBR suggests that data from this study be used to determine a fair value of excess solar generation to all members and take into consideration fixed costs as well as the kWh charge. CBR's response to BEC's concerns can be found here.
A little history: Many of you are members of BEC. At the February 2020 board meeting, the BEC Board decided to change their policy on net-metering. The new policy means all solar generation going back to the grid will not receive retail kWh credits, but rather will be paid out at Dairyland Power’s avoided cost which is currently around 2.9 cent per kWh. Those who have existing solar PV systems will be grandfathered in for 5 years, after which time they will be subject to this new policy.
Here is an explanation from Bayfield Electric on how the new policy will work:
"There are two meter readings on DG [Distributed Generation] members meters. One is consumption from BEC, the second is generation from solar. BEC will be buying all of the generation that the meter records and charging for all of the consumption from BEC."
This is unfortunate for several reasons. First, CBR feels they got the math wrong. Their logic was that solar generation being put back on the grid was being subsidized by non-solar members. But, by paying only 2.9 cent per kWh, when they buy electricity from Dairyland at much higher rates, between 7-8 cents per kWh, now the solar generators are subsidizing the non-solar members. Second, a regressive policy like this does not benefit our planet’s need to reduce carbon emissions. And third, they had no member input in making this decision.
This is the most extreme position that Bayfield Electric could have taken. Many utilities in the state have more equitable policies called monthly true-up where an avoided-cost payment is applied to surplus generation vs. consumption during a billing period. WE Energy and Alliant Energy are examples of Wisconsin utilities that have this policy. Xcel Energy has an annual true-up similar to BEC's past policy.
CBR is proposing a policy where excess solar generation is equitable for all, that is, BEC purchases the excess generation at their true avoided cost, not Dairyland's, and therefore, no group is subsidizing another.
CBR wrote a letter to the BEC Board to open a discussion in March 2020. They did not reply.
On June 8th, 2020, BEC held its annual meeting virtually. Incumbent board members won re-election. A chat window was available and many co-op members responded with their disappointment regarding the net-metering policy change. The comments/questions and BEC's responses have been posted to their website.
CBR hopes you will get involved with your co-op. There are nine board members and three are up for election each year. You may only vote for your district's representative. Learn what district you are in, who your representative is and when they are up for re-election. The table below summarizes the districts and election schedule: More information about nomination procedures can be found in the BEC's bylaws found on their website.
Update, September 2, 2020: Cheq Bay Renewables has completed a research project documenting net metering policy in Wisconsin's electric cooperatives. The resulting paper can be read in its entirety here. It was submitted to Bayfield Electric Cooperative in hopes their Board would consider its insights, recommendations and next steps.
Update, August 2020: The BEC Board met on August 6th, 2020 and one item on their agenda was the net-metering policy change. They reportedly discussed the subject at length. You might contact your Board member representative directly and ask him about this conversation and offer your suggestions. Check the table at the bottom of this page to find your board member's name and phone number. On August 7th, 2020, CBR emailed BEC with two suggestions they might consider as solutions to the net-metering issue.
BEC has said the purpose of their net-metering policy change is about fairness to all members. CBR agrees that any policy should be fair to all. One point that BEC has made is that the monthly facility charge does not cover all their fixed costs and some of this fixed cost is recovered in the kWh charge. BEC goes on to say a member with solar generation could offset all the kWh charge and not be paying their fair share of the fixed charges. BEC is also undergoing a current rate study being preformed by an engineering company. CBR suggests that data from this study be used to determine a fair value of excess solar generation to all members and take into consideration fixed costs as well as the kWh charge. CBR's response to BEC's concerns can be found here.
A little history: Many of you are members of BEC. At the February 2020 board meeting, the BEC Board decided to change their policy on net-metering. The new policy means all solar generation going back to the grid will not receive retail kWh credits, but rather will be paid out at Dairyland Power’s avoided cost which is currently around 2.9 cent per kWh. Those who have existing solar PV systems will be grandfathered in for 5 years, after which time they will be subject to this new policy.
Here is an explanation from Bayfield Electric on how the new policy will work:
"There are two meter readings on DG [Distributed Generation] members meters. One is consumption from BEC, the second is generation from solar. BEC will be buying all of the generation that the meter records and charging for all of the consumption from BEC."
This is unfortunate for several reasons. First, CBR feels they got the math wrong. Their logic was that solar generation being put back on the grid was being subsidized by non-solar members. But, by paying only 2.9 cent per kWh, when they buy electricity from Dairyland at much higher rates, between 7-8 cents per kWh, now the solar generators are subsidizing the non-solar members. Second, a regressive policy like this does not benefit our planet’s need to reduce carbon emissions. And third, they had no member input in making this decision.
This is the most extreme position that Bayfield Electric could have taken. Many utilities in the state have more equitable policies called monthly true-up where an avoided-cost payment is applied to surplus generation vs. consumption during a billing period. WE Energy and Alliant Energy are examples of Wisconsin utilities that have this policy. Xcel Energy has an annual true-up similar to BEC's past policy.
CBR is proposing a policy where excess solar generation is equitable for all, that is, BEC purchases the excess generation at their true avoided cost, not Dairyland's, and therefore, no group is subsidizing another.
CBR wrote a letter to the BEC Board to open a discussion in March 2020. They did not reply.
On June 8th, 2020, BEC held its annual meeting virtually. Incumbent board members won re-election. A chat window was available and many co-op members responded with their disappointment regarding the net-metering policy change. The comments/questions and BEC's responses have been posted to their website.
CBR hopes you will get involved with your co-op. There are nine board members and three are up for election each year. You may only vote for your district's representative. Learn what district you are in, who your representative is and when they are up for re-election. The table below summarizes the districts and election schedule: More information about nomination procedures can be found in the BEC's bylaws found on their website.
