HARRISBURG- Appropriations hearings are taking place in the state capitol for the foreseeable future as Pennsylvania barrels towards a new budget year. Meanwhile, regular hearings continue to take place, including the latest by Pennsylvania Public Utilities Commission Chairman Steve DeFrank.
DeFrank testified this week before the House Energy Committee, warning lawmakers of a rapidly escalating electric cost issue tied to a loophole in the state’s net metering rules.
Net Metering is a process in which customer-generators (I.e. homeowners or businesses with solar panels) can measure excess generation and receive credit at full retail value for the energy being sent back into the grid. Overtime, however, large solar projects with little on-site load have been able to qualify under net metering and receive FULL RETAIL COMPENSATION.
The effects of this mean that costs are recovered from other ratepayers, I.e. normal home electric users and businesses.
According to DeFrank, 36 qualifying facilities currently account for about $6.4 million annually in excess retail-rate compensation. That number is expected to exceed $90 million per year by 2027. Projected exposure due to 2,100 interconnection requests pending statewide mean that exposure could exceed $700 million annually.
Chairman DeFrank emphasized that the issue is not about opposing rooftop solar or renewable energy, but about ensuring that policies designed to help customers do not unintentionally shift disproportionate costs onto other ratepayers.
“The trajectory we are seeing represents a significant affordability concern for Pennsylvania households and employers,” DeFrank testified.
The Chairman called for legislative updates to restore net metering to its original purpose — supporting true end-user customers — while preserving renewable energy growth and exploring options such as community solar that distribute costs and benefits equitably.
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