Utilities board proceeds with Alliant net-metering pilot

CEDAR RAPIDS - Despite complaints that Alliant Energy's proposed net-metering pilot program could hinder Iowa's solar growth, the state utilities board has indicated it's ready to move forward.

However, the Iowa Utilities Board on Friday did order Alliant to provide additional information on proposed changes to the utility's net-metering program. That program allows homeowners and businesses that generate their own power to get credit for the energy they send back to the electric grid, lowering their utility bill.

The state board's order stems from an October 2015 request to utilities Alliant and MidAmerican Energy to develop net-metering pilot programs to expand distributed generation - energy produced at or near the location it is used.

'The utilities and other stakeholders have had ample procedural opportunity to articulate their positions. It is now time to begin the operation of pilot programs to find out how, under these pilot tariffs, distributed generation and net metering work for customers and for electric utilities,” the order states.

Alliant in February submitted to the utilities board a revised pilot that would cap a customer's net metering ability based on an energy demand formula, rather than actual energy use.

Alliant Spokesman Justin Foss said the pilot is meant to balance solar customer's needs and the needs of all other customers on the grid by sharing maintenance and service costs.

'We recognize as much as anybody that renewable energy is a good option, and for customers that want to do it, we want to support that. We also want to make sure we maintain a highly reliable power grid in Iowa, so it's striking that balance,” Foss said.

However, soon after Alliant filed its revised proposal, the Environmental Law and Policy Center - along with Iowa Environmental Council, Sierra Club, Iowa Solar Energy Trade Association, Solar Energy Industries Association, Vote Solar and Winneshiek Energy District - filed a joint petition requesting a rehearing on Alliant's proposed pilot program.

The petition claimed Alliant's proposal to lower the cap on how much energy customers can net meter and severely limit future solar investments. The three-year pilot program, tentatively set to begin April 1, would apply to all new net-metering customers.

Alliant will have to provide additional information on the process it plans to use to cap how much customers can net meter, per the order.

Josh Mandelbaum, staff attorney with the Environmental Law and Policy Center, said the order is a step in the right direction for Iowa solar, but remains concerned.

'I think it would slow, but not stop, solar in Alliant's service territory. That's better than an alternative, where we think the industry would come to a halt,” Mandelbaum said.

Mandelbaum said the utilities board's order should provide more clarity on how Alliant plans to cap net metering for customers. Alliant has until the end of March to respond to the order.

'The board is requiring (Alliant) to lay out this road map in a much clearer way,” Mandelbaum said. 'It eliminates the opportunity for a customer installer to be told one ting and then several months later to end up with something different. ...

It eliminates ambiguity and it provides certainty. Those are important pieces to be able to move forward.”

Sean Gallagher is vice president of state affairs for Solar Energy Industries Association, a national not-for-profit organization focused on expanding solar domestically and internationally. He said in a Tuesday email he was frustrated with the utilities board's approval of Alliant's plan to net meter based on demand, which he said is 'unnecessarily complicated and inconsistent with national best practice.”

'However, we are pleased that the Board recognizes these issues with (Alliant's) approach and is taking steps to ensure that (Alliant's) filing is as transparent and workable as possible to avoid a potential shut down of the solar industry in Alliant's service territory,” Gallagher said.

l Comments: (319) 339-3175; mitchell.schmidt@thegazette.com