This commentary is by David Russell, managing member of Barrington Power LLC of Perkinsville.
Last month, the Vermont Public Utility Commission issued a press release reflecting the final determination of its biennial review for the solar Net Metering Program.
For supporters of the Scott administration, it was a victory. For those of us concerned about climate change, it was a disappointment.
More bluntly put, the PUC’s order represented two things.
First, it was the latest in a long series of cuts to the program claiming the in-state renewable energy effort as the principal inhibitor for the lowest possible electric rates. This has resulted in a 70% decline in the commercial solar market.
Second, its effort to slow down the pace of net metering growth comes at a time when the country and the world are facing an existential crisis. The PUC accomplishes this by using a series of distortions, supported by the Department of Public Service. That department is the single resource the PUC uses to “advise” its policy. All other recommendations are dismissed out of hand.
In addition to the policy being wrongheaded, the press release contained distortions that are misleading.
First, the PUC approved a “modest” decrease of “less than three-tenths of one cent” in net metered credits. The fact is the decrease varies from utility to utility. In Vermont Electric Cooperative territory, that decrease will be as high as one cent per kilowatt hour.
Not only is the statement misleading but the fact that there is any decrease in the face of staggering increases in inflation, supply chain, equipment, labor and permitting costs makes it hard to accept as a rational outcome.
Next, the PUC claims it is processing applications in a timely manner. It proudly states that 86% of permits (certificates of public good) were granted within 31 days. While that may be true of small-capacity registrations, it bears nothing close to the time it takes to permit a larger system.
Less than 10% of the permits issued in 2021 were for group net metered systems sized to help Vermont’s low/moderate housing communities, public institutions, municipalities and small businesses, plus those that cannot afford or are not situated to net meter on their own.
Permits for larger systems can easily take a year or more to obtain. To wit: of the 10% of large system permits that were granted in 2021, half were applications filed in 2020.
Third, the PUC proudly announces that it has approved 42 MW of equipment installations following a year where 36 MW were approved. The number should be in excess of 100 MW of growth needed to keep up with the current carbon emission excesses and the need for more generation to power electric vehicles and transition to electric heat pumps, stoves and water heaters.
Carbon emissions in this state are on the rise. Vermont ranks 49th among states in its five-year renewable growth projections. Electric rates in Vermont are more modest than in surrounding states.
The Scott administration and its minions in the Department of Public Service and the PUC are flogging cliches and fearmongering. This latest order is deplorable.
My company has invested in over a dozen large net metered solar arrays in Vermont. Our customers include towns, schools, hospitals, assisted living facilities, farmers and small businesses, all of which have shared in the net metered credits and lowered their electric costs.
I have watched with alarm the systematic degradation of the renewable energy efforts in the state. It is clear where the fault lies and it is equally clear how misinformation, distortions, misplaced priorities, faulty logic and outright misstatements have gotten us here.
