TEP - Net Metering

Summary

Note: In October 2008, the Arizona Corporation Commission (ACC) adopted net metering rules that apply to all investor-owned electric utilities and electric cooperatives in the state. The Arizona attorney general is currently reviewing the rules, which must be certified before they take effect. After the rules are certified, utilities will have 120 days to file new net metering tariffs, and the ACC must approve these tariffs before they take effect. Until TEP's new tariff take effect, the net metering program previously developed by TEP will remain in place. (This program is described below.) Under the new state rules, net metering will be available to customers who generate electricity using solar, wind, hydroelectric, geothermal, biomass, biogas, combined heat and power (CHP), or fuel cell technologies. Individual system capacity will generally be limited to 125% of a customer's total connected electric load. Tucson Electric Power Company (TEP) offers net metering to customers with photovoltaic (PV) and wind-energy systems with a maximum AC peak capacity of 10 kilowatts (kW). TEP credits net excess generation (NEG) to the following month's bill. After each January billing cycle, any remaining credit is granted to the utility. The total net-metered capacity in TEP's service territory is limited to 500 kW. Installations must meet the IEEE 929 standard, local requirements and National Electrical Code (NEC)requirements. Installations must be completed within six months of pre-installation approval. Time-of-use net metering is not permitted.