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.
Final Update October 13, 2022: The Bayfield Electric Cooperative board approved the final version of the new Distributed Energy Resource policy (DER) today. That policy is posted to BEC's website and can also be viewed here. All solar PV members will receive 100% net-metering payback rates until April 1, 2025, after which time the rate will be 90% with a 20-year contract guaranteeing that rate. This revised DER process has been long but successful and a testament to cooperative and democratic principles. CBR would like to thank BEC CEO Chris Kopel and board members Roy Settgas and Mike Nelson for their leadership. This is a success story that needs told.
Update Sept. 1, 2022: On August 30th, 2022, Bayfield Electric held a virtual meeting for its members to update them on proposed changes to the Distributed Energy Resource policy, also known as policy 300.11 or its distributed generation policy. A recording of the meeting can be viewed here. A copy of the draft proposal can be viewed here.
Update May 14, 2022: Bayfield Electric announces proposal for new net-metering policy at its 2022 annual meeting. See a summary of that proposed policy here. The annual meeting took a different format this year with four panelists moderated by BEC president Mark Santikko. The meeting was 2.5 hours long and included a question-and-answer session. The meeting was recorded and posted to BEC's website. The section of the meeting relating to net-metering or distributed generation can be viewed here. We noticed that the slides were not advanced in the recorded video, so the slide deck can be seen independently here. We also thought this short 45 second clip was an excellent summary of BEC's position on important issues and its relationship to its membership.
Update April 16, 2022: CBR's presentation to Citizens Climate Lobby regarding the Value of Solar and how it relates to BEC's net metering policy. See a recording of that presentation here.
March 4, 2022: BEC has sent out a letter to all members updating them on the DER process. You can read that letter here.
Update August 25, 2021: CBR's has provided input regarding BEC's net-metering policy in response to their August 17th letter to its members. You can read that input here.
Update August 17, 2021: BEC has sent out a letter to all its members as it plans to revisit its distributed generation policy and encourages membership participation in the process. A tentative timetable has been established which results in adoption of a new policy by the first quarter of 2022 (which was later extended to the third quarter of 2022).
Update June 2021: With a new CEO in place (Chris Kopel) and a newly elected board member (Roy Settgas), Bayfield Electric has started a new chapter. The word on the solar policy is a step back to collect factual data, develop a strategy to receive co-op member input and implement a new policy that is fair to all. Many community members are familiar with lengthy conversations involving utilities (think Xcel transmission line) and were rewarded with equitable results, so let's be patience and give the new BEC team a chance to prove themselves. Hopefully, your input will be welcome.
Update April 2021: The increased net metering only lasted a month and has again been reduced to Dairyland's avoided cost. We await the new CEO's input who is starting May 1, 2021.
Update March 2021: It is our understanding that the Bayfield Electric Board has responded with changes to the net-metering policy established in February 2020. We hope BEC will officially be announcing those changes soon, but until then this is what we have been told: Existing systems installed before February 2020 will be grandfathered-in to the original full net-metering policy for as long as you own the system and do not increase the system size. PV systems installed after February 2020 will have a new net-metering policy that will pay Bayfield Electric's avoided cost, not Dairyland's, for excess solar generation put back on the grid. These changes are inline with CBR recommendations of last September. We await exact formal details but commend BEC on making these changes.
Update, January 2021: Every year Bayfield Electric Cooperative elects three new board members. Districts 1,4 and 7 are up for election this year. If you are a member of BEC and live in one of those districts, please consider running for the board. More information about the districts and how to do that is here.
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.
Final Update October 13, 2022: The Bayfield Electric Cooperative board approved the final version of the new Distributed Energy Resource policy (DER) today. That policy is posted to BEC's website and can also be viewed here. All solar PV members will receive 100% net-metering payback rates until April 1, 2025, after which time the rate will be 90% with a 20-year contract guaranteeing that rate. This revised DER process has been long but successful and a testament to cooperative and democratic principles. CBR would like to thank BEC CEO Chris Kopel and board members Roy Settgas and Mike Nelson for their leadership. This is a success story that needs told.
Update Sept. 1, 2022: On August 30th, 2022, Bayfield Electric held a virtual meeting for its members to update them on proposed changes to the Distributed Energy Resource policy, also known as policy 300.11 or its distributed generation policy. A recording of the meeting can be viewed here. A copy of the draft proposal can be viewed here.
Update May 14, 2022: Bayfield Electric announces proposal for new net-metering policy at its 2022 annual meeting. See a summary of that proposed policy here. The annual meeting took a different format this year with four panelists moderated by BEC president Mark Santikko. The meeting was 2.5 hours long and included a question-and-answer session. The meeting was recorded and posted to BEC's website. The section of the meeting relating to net-metering or distributed generation can be viewed here. We noticed that the slides were not advanced in the recorded video, so the slide deck can be seen independently here. We also thought this short 45 second clip was an excellent summary of BEC's position on important issues and its relationship to its membership.
Update April 16, 2022: CBR's presentation to Citizens Climate Lobby regarding the Value of Solar and how it relates to BEC's net metering policy. See a recording of that presentation here.
March 4, 2022: BEC has sent out a letter to all members updating them on the DER process. You can read that letter here.
Update August 25, 2021: CBR's has provided input regarding BEC's net-metering policy in response to their August 17th letter to its members. You can read that input here.
Update August 17, 2021: BEC has sent out a letter to all its members as it plans to revisit its distributed generation policy and encourages membership participation in the process. A tentative timetable has been established which results in adoption of a new policy by the first quarter of 2022 (which was later extended to the third quarter of 2022).
Update June 2021: With a new CEO in place (Chris Kopel) and a newly elected board member (Roy Settgas), Bayfield Electric has started a new chapter. The word on the solar policy is a step back to collect factual data, develop a strategy to receive co-op member input and implement a new policy that is fair to all. Many community members are familiar with lengthy conversations involving utilities (think Xcel transmission line) and were rewarded with equitable results, so let's be patience and give the new BEC team a chance to prove themselves. Hopefully, your input will be welcome.
Update April 2021: The increased net metering only lasted a month and has again been reduced to Dairyland's avoided cost. We await the new CEO's input who is starting May 1, 2021.
Update March 2021: It is our understanding that the Bayfield Electric Board has responded with changes to the net-metering policy established in February 2020. We hope BEC will officially be announcing those changes soon, but until then this is what we have been told: Existing systems installed before February 2020 will be grandfathered-in to the original full net-metering policy for as long as you own the system and do not increase the system size. PV systems installed after February 2020 will have a new net-metering policy that will pay Bayfield Electric's avoided cost, not Dairyland's, for excess solar generation put back on the grid. These changes are inline with CBR recommendations of last September. We await exact formal details but commend BEC on making these changes.
Update, January 2021: Every year Bayfield Electric Cooperative elects three new board members. Districts 1,4 and 7 are up for election this year. If you are a member of BEC and live in one of those districts, please consider running for the board. More information about the districts and how to do that is here.
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.
