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Jul 24, 2014
11:09:47am
Wow. So much wrong information, so little time...
First, in order to understand motivations, we need to understand each side of the debate:

General public in the affected area (Utah) = you, me and all Utah citizens and non-citizens living here, as well as illegal aliens who use power. This also includes commercial entities (hotels, gas stations etc). It covers pretty much every user of power in the state, residential, commercial or even visitor)

Rocky Mountain Power: A regulated (read: government aided) utility. It doesn't stop there...their parent company, Berkshire Hathaway Energy, which is 89% owned by Berkshire Hathaway, which is a huge, multinational conglomerate wholly owning:

GEICO
BNSF
Lubrizol
Dairy Queen
Fruit of the Loom
Helzberg Diamonds
FlightSafety International
NetJets

They own half of Heinz and an undisclosed percentage of Mars, Incorporated. The also own Pacificorp which owns Rocky Mountain Power. To provide scale, even a small player in Berkshire Hawaways Energy portfolio, a "small" player like Pacificorp owned (among many other entities) NERCO (listed as the 353rd largest American company on the Fortune 500 list).

Bershire Hathaway also have significant minority holdings in:
American Express
The Coca-Cola Company
Wells Fargo
IBM

They also own substantial interests in corporations in many foreign countries, including many in "green energy" Europe.

Even in this down economy, Berkshire Hathaway averaged an annual growth in book value of 19.7% to its shareholders for the last 49 years (compared to 9.8% from the S&P 500 with dividends included for the same period), while employing large amounts of capital, and minimal debt.

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It's safe to say that profits is the main driving force here. They're not stupid and they're not hurting for money. They have high ROI and very little debt. They just want the government to eliminate or reduce competition for them. It's easier that way.

So let's look at net metering in Utah:

From the EPA:
http://www.epa.gov/chp/policies/policies/ututahnetmeteringrules.html
Utah's original net-metering rules were enacted in 2002, and subsequently revised in 2009. Utah requires the State's only investor-owned utility, Rocky Mountain Power, and most electric cooperatives to offer net-metering to customers that generate electricity using renewable energy systems. Rocky Mountain Power (RMP) allows net-metering of customer-generated electricity from residential systems <25 kW, and nonresidential systems <2 MW. The customer-generated electricity may come from CHP or fuel cell system. A kWh credit is issued for monthly net excess generation produced by the net-metering facility and credit is applied to the next billing period. Any net excess generation at the end of a 12-month period, however, is granted to the utility. As determined by the Public Service Commission, RMP net-metering customers are not exempt from the minimum bill charge that all customers must pay.

All renewable energy credits associated with the electricity produced by the system remain with the customer. The aggregate capacity limit for all net-metered systems is 20% of 2007 peak demand for Rocky Mountain Power and 0.1 % of utility's 2007 peak demand for co-ops.

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That's right...they will NEVER have more than 20% of their production capacity in renewable sources. All net metering incentives will be shut off (just like what happened in Hawaii). They are provided electricity at "avoided energy costs" meaning the average Utah customer will be able to provide energy on a Kw for Kw basis...and ANY EXTRA at the end of the 12-month cycle is granted to the utility...GIVEN TO THEM FOR FREE...FOR RESALE. All the switchgear (lineman safety) are purchased by the consumer and the utility bears no cost or risk of failure.
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From Rocky Mountain Power's net metering page:
https://www.rockymountainpower.net/env/nmcg/nm.html
With net metering technology, you can offset all or part of your electricity requirements.

Net metering measures the difference between the electricity you buy from us and the energy you generate using your own solar or wind equipment. Many small generating systems are easily available and benefit the environment.

With net metering, you get the full value of the electricity you generate. Basically, you will be charged for the amount of energy that you purchase from us minus the cost of the energy that you provide to us.

If you decide to participate, you will need to meet all applicable codes and standards, obtain a government approved electric inspection and sign a net metering agreement before we install the new meter.
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How convenient of them to leave out key information...such as what happens to excess energy at the end of the 12-month cycle. I wonder how helpful they've been in the past...oh wait, there's a record of that:
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http://solarsimplified.org/connecting-to-the-grid/net-metering-in-utah
Interconnection in Utah

From 2007 to 2010, Utah's Public Service Commission undertook a comprehensive review and revision of the state's Interconnection Standards. At the onset of the effort, Utah had an ‘F’ grade on a national scorecard for interconnection standards. Following efforts led by Utah Clean Energy, the Interstate Renewable Energy Council, and numerous stakeholders, the Utah Public Service Commission adopted improved standards in April 2010. As a result, Utah’s interconnection grade was raised to an to ‘A’. The new interconnection standards reflect best practices with respect to key interconnection issues, including:

Expanding the simpler "Level 1" review to include larger systems (now 25 kW, up from 10 kW)
Allowing aggregation of multiple generators at a single location
Standardizing net metering and interconnection agreements.
Removing the requirement for a "disconnect switch" for systems smaller than 10 kilowatts
Maintaining appropriate permit fees for different system sizes
Expediting the review of applications and approval procedures
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That's right, it wasn't until 2010 that Utah wasn't listed as an "F" grade for inter-connectivity. They only changed after being forced to upgrade by threat of lawsuit. What happened from 2002 and 2010 when the solar home owners wanted to avail themselves of the law? RMP laid every obstacle they could to stop them from connecting. Stories abound of homeowners complying with every additional requirement (at considerable expense) laid on them by RMP connection inspectors, only to have them change their mind and require the homeowner to rip out and change the configuration at even more cost. They don't like any competition, and they were incredibly archaic/Neanderthal-esque in adopting modern technology...and trying to thwart (through frustration) those who did
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This is nothing unusual for Rocky Mountain Power. They've always put profits above progress, and especially their own customers. They are aided by government funding and government regulations. I have seen, and read (much of), a 200+ page internal report from the mid-2000's which lays out their anticipated distribution costs in the west, and their plan to get the money to do it. Don't be fooled by their "fairness" claims. They are not interested in "fair"...only in making things more fair for their themselves at the expense of a distributed generation grid (think additional security in the event of an assault on the grid) and green energy, and the right to personal financial independence from them.
This message has been modified
Originally posted on Jul 24, 2014 at 11:09:47am
Message modified by BluePete on Jul 24, 2014 at 11:49:34am
Message modified by BluePete on Jul 24, 2014 at 12:10:02pm
BluePete
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