Empire Electric Association - Net Metering

September 26, 2007

Summary

Empire Electric Association, a cooperative utility serving southwestern Colorado and a small portion of eastern Utah, offers net metering to customers with solar-electric (PV) or wind-energy systems up to 10 kilowatts (kW) in capacity. The program is open on a first-come, first-served basis to the first 50 customers who enroll, or until December 31, 2010. Participating customers are billed on an estimated levelized kilowatt-hour (kWh) usage method. The estimated usage less generation is based a calendar-year period and levelized over 12 months. Customers are billed monthly at the applicable rate for levelized kWh usage. At the end of the calendar year, customers are billed for any usage exceeding the levelized kWh usage at the applicable rate. If a customer has net excess generation (NEG) at the end of a calendar year, Empire Electric Association will pay for the excess generation at a rate equal to the average cost of power from the utility's wholesale supplier for that year, excluding wholesale power sold to loads billed under the utility’s SCS tariffs. Empire Electric Association serves Cortez, CO; Mancos, CO; Dolores, CO; Dove Creek, CO; Towac, CO; and Monticello, UT. The net-metering program took effect May 1, 2006. Contact Empire Electric Association for an application and a copy of the net-metering tariff. * Empire Electric Association offers "true" net metering to its customers. In 2002, Colorado enacted legislation (C.R.S. 40-9.5-304 et seq.) requiring the state's electric cooperatives to offer "net metering" to customers. However, the term "net metering" is a misnomer in this particular law. Under the law, customers receive a lower rate (the utility's avoided-cost) for all electricity generated, while customers must pay the full retail rate for all electricity they purchase from utilities. This practice, commonly known as "dual metering," is much less favorable to customer-generators than "true" net metering.