Many of you are members of the Bayfield Electric Cooperative (BEC). At the February 2020 board meeting, the BEC Board decided to eliminate net-metering. This 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 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 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, 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 6-8 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. BEC states that they don't calculate their avoided cost (really!). The exact number, in real time, may be difficult to figure (though not impossible), but a simplified approach might be to divide the total annual kWh's purchased from Dairyland by the total annual cost from Dairyland. This would yield an average BEC avoided cost and be fair to all.
CBR has written to the BEC Board to open a discussion. We have not yet received a reply.
CBR hopes you will get involved with your co-op. There are nine board members and three are up for election each year. Two districts are being contested this year and will be voted on at the annual meeting on June 8th, 2020. 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 on Bayfield Electric Cooperative's website.
Here is an explanation from Bayfield Electric on how the new policy will work:
"There are two meter readings on DG 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, 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 6-8 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. BEC states that they don't calculate their avoided cost (really!). The exact number, in real time, may be difficult to figure (though not impossible), but a simplified approach might be to divide the total annual kWh's purchased from Dairyland by the total annual cost from Dairyland. This would yield an average BEC avoided cost and be fair to all.
CBR has written to the BEC Board to open a discussion. We have not yet received a reply.
CBR hopes you will get involved with your co-op. There are nine board members and three are up for election each year. Two districts are being contested this year and will be voted on at the annual meeting on June 8th, 2020. 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 on Bayfield Electric Cooperative's website.
