X-From_: [log in to unmask] Tue Nov 24 17:51:46 1998
Date: Tue, 24 Nov 1998 16:28:56 -0600 (CST)
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From: [log in to unmask] (Lisa Davis Cook)
Subject: ICAN :> Urgent Action Alert
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URGENT ACTION ALERT -- IOWA NET BILLING POLICY IN JEOPARDY
On October 8, 1998, MidAmerican Energy filed a Petition for Enforcement and
Declaratory Order with the Federal Energy Regulatory Commission (FERC). In
layman's terms, MidAmerican is asking the FERC to prevent the Iowa
Utilities Board (IUB) from requiring them (MidAmerican) to interconnect a
renewable energy system owned by David M. Leisinger with the MidAmerican
system and to offer net billing arrangements to Mr. Leisinger. If the FERC
rules in MidAMerican's favor they would essentially be declaring that
Iowa's net billing law is in violation of federal law and therefore not
enforceable by the IUB. Overturning this important renewables support
policy will not only undermine Iowa's recently-established Alternate Energy
Revolving Loan Program but will also remove a key incentive for Iowans to
invest in clean, home-grown power.
The deadline for comments in opposition to this request is Thursday,
December 3, 1998.
Under net billing arrangements, homeowners and businesses who choose to
install solar panels or small wind and hydro systems can reduce their
electric bills by turning their meters backwards as they feed electricity
into the utility grid. This allows customers to obtain the benefits of
renewable energy installations regardless of whether the host facility uses
all the electricity at the same time its system is generating power.
In the absence of net billing, the homeowner or business must pay for all
electricity from the grid at the prevailing retail rate, not just the net
amount above that produced, and is only paid a much lower wholesale or
"avoided cost" rate for all the electricity fed into the grid through a
separate meter. The ironic twist is that because these are typically very
small amounts of power, any revenues or savings to the utility are
generally less than the administrative cost of dual meter-reading, billing
and sending small payments to the customers. Faced with the two
alternatives, many states have opted for net metering, because it is
cheaper for all involved.
Many of you may remember that last year around this time the IUB proposed a
rule change that would have ended net metering arrangements in Iowa.
Because of the huge showing of public support the IUB decided not to move
forward with the change -- leaving net metering in the Iowa rules. We are
hoping we can have the same effect on the FERC.
HOW TO HELP SAVE NET BILLING IN IOWA
It is critical that customers weigh in on this process to convey that
Iowans would not be well-served by the granting of MidAmerican's request.
Written statements of position in support of maintaining net billing (see
sample letter below) should be addressed to:
Federal Energy Regulatory Commission
888 First Street NE
Washington, D.C. 20426
The letter must refer to Docket Number EL99-3-000, and a signed original
must be RECEIVED by December 3, 1998.
SAMPLE LETTER TO THE FERC
Following are a few "talking points" for the basis of writing a letter in
your own words to the FERC. Please personalize it with your own
introduction -- especially if you are considering installing renewable
energy equipment in Iowa -- or other "renewables are important" language to
begin and conclude your letter.
Dear Commission:
In Re: Docket No. EL99-3-000
As an Iowa utility ratepayer, I am writing to urge the Commission to
decline to initiate the enforcement action requested by MidAmerican Energy
in their Petition for Enforcement and Declaratory Order and respond to the
declaratory order by stating that net billing practices are not precluded
by PURPA or FPA. Please consider the following reasons:
* The "netting out" process associated with net billing does not involve a
purchase or sale of electricity, so utilities are not required to make
purchases at rates above their avoided costs. Rather, net billing customers
use renewable energy systems to offset electricity that otherwise would be
purchased from the utility, similar to the customer savings achieved
through energy efficiency measures. Such offsets of electricity are common
among utilities and other electricity generators, and should not be
considered "sales" of electricity. The authority to require net billing
falls clearly within the state's jurisdiction over the terms and conditions
of retail electric service.
* Net billing's simplicity is also cost-effective, using a single meter to
register the flow of electricity in two directions. It reduces the costs of
interconnection, billing and meter-reading for renewable energy systems,
since the "netting out" is done by the meter itself. Administrative and
accounting savings alone generally offset revenue losses.
Moreover, dispersed, small-scale renewable energy systems provide
peak-shaving, environmental, distribution, and fuel diversity benefits.
Other distributed benefits of generation close to customers' premises
include reduced transmission line losses, avoided transmission and
distribution system upgrades, and improved power quality, all of which
translate directly to economic gains for the utility. The state of Iowa is
obligated to consider these environmental and technical benefits in
developing policies to encourage alternate energy generation.
With the move to deregulate electric utilities, it makes little sense to
deny customers the choice of net billing, particularly when they are
willing to make capital investments that will benefit the state. I urge you
to maintain Iowa's net billing policy.
Thank you for your consideration.
Sincerely,
[YOUR NAME
AND ADDRESS]
cc: Raymond Vawter, Executive Secretary The Honorable Tom
Miller
Iowa Utilites Board
Iowa Attorney General
350 Maple Street
Hoover Building
Des Moines, Iowa 50319 Des
Moines, Iowa 50319
For additional information on how you can help save net billing in Iowa,
contact:
Lisa Davis Cook, Iowa SEED Coordinator
515-277-8003 x13
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* * * Iowa Citizen Action Network * * *
* * * Iowa SEED Coalition * * *
Lisa Davis Cook, Program Organizer
3520 Beaver Avenue, Suite E, Des Moines, IA 50310
(515) 277-5077 ext. 13 * Fax: (515) 277-8003
IAMAW Local 254
* * * [log in to unmask] * * *
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Lyle Krewson
6403 Aurora Avenue #3
Des Moines, IA 50322-2862
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515/276-8947
515/276-6844 - FAX
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