Net Billing Changes - South Central Power

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Net Billing Changes

Changes to Net Billing are effective Jan. 1, 2023

If you connected a solar generation unit before March 1, 2022, the method by which South Central Power purchases excess electricity from you is changing effective Jan. 1, 2023.

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Solar Billing Change FAQ

Q: Why is South Central Power making this change?

A: Back in March of this year, South Central Power provided notice that it would transition from an approach that utilized net metering to net billing effective Jan. 1, 2023. The reasoning for this is as follows:

  1. Not all members have the wherewithal – whether that be finances, available property, or building structure – to install self-generation. As a cooperative, operating on a not-for-profit basis, we must look at rates, policies, and procedures with an eye to fairness to all concerned.
  2. The current approach of net metering results in compensation to self-generators for excess energy at a rate that includes South Central Power’s distribution energy charge. Our calculations indicate that this results in a cross-subsidy whereby some portion of the cost of maintaining the distribution system is not being recovered from the self-generators that put excess energy onto South Central Power’s distribution system. This results in less payments from self-generators that would otherwise be used to offset distribution system expenses such operations and maintenance, administrative and general and/or depreciation.
  3. The Net Billing approach, which goes into effect Jan. 1, 2023, fairly compensates the self-generators for the benefits that any excess energy has on the transmission system and generation market.

Q: What does it mean to my bill?

A: If you are a South Central Power self-generator, you can still continue to use 100% of the power you generate at your residence. However, going forward, any excess energy going back to South Central Power’s distribution system will be compensated at the new excess credit rate – which is currently 7.7 cents per kWh. That compares with the 12-month rolling average cost of delivered firm wholesale power that we purchase from Buckeye Power at 8.2 cents per kwh. The excess credit rate is calculated and set annually at the first of each year by Buckeye Power.

We recognize and appreciate the change extends pay back calculations and most likely reduces Return on Investment for the 650+ members that have self-generation. That is the primary reason that South Central Power deferred the implementation of the new rate until Jan. 1, 2023.

Q: When is this change effective?

A: For members with installations connected prior to March 1, 2022, this change is effective Jan. 1, 2023.  All installations connected on or after March 1, 2022 have already been subject to the net billing rate schedule so those self-generators will see no changes to their billing

Q: Who do I contact if I have questions?

A: If you have questions about how this change will impact your bill, please contact one of our energy advisors at 740-689-6125. You can also send an email to energyadvisors@southcentralpower.com.