ENERGY STRATEGY FOR YUKON. Net Metering Policy DRAFT FOR CONSULTATION

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1 ENERGY STRATEGY FOR YUKON Net Metering Policy DRAFT FOR CONSULTATION February 2011

2 Page 1 of 4 BACKGROUND The Yukon government released the Energy Strategy for Yukon in January The Energy Strategy sets out the government s energy policies and priorities. In the Energy Strategy, the government committed to developing policy that will assist individuals to connect renewable energy sources to the grid. Between November 2009 to February 2010, a discussion paper on net metering and independent power production was released for public consultation. Through that consultation, the public indicated clearly that there should be separate policies for net metering and independent power production. Valuable input was received on proposed policy objectives, eligible energy sources, size of electricity projects, connecting to the grid, financial arrangements, policy framework and roles and responsibilities for both policies. This policy is part of the Energy Strategy s priority action to update and develop a policy framework for electricity that emphasizes efficiency, conservation and renewable energy by assisting individuals to connect renewable energy sources to the grid (p.15). SCOPE Application This policy applies to customers in the residential, general service and industrial classes as defined under the Rate Schedules and the Terms and Conditions of Service, who want to generate electricity from eligible sources for their own consumption. This policy does not apply to Secondary Sales connections. The electrical generation will be interconnected to Yukon Energy Corporation s (YEC) or Yukon Electrical Co. Ltd. s (YECL) distribution systems. Policy Objectives Working with our utility partners, the objectives of the net metering policy are to: a. Provide opportunities for Yukoners to produce electricity from renewable technologies for their own consumption. b. Encourage the development and adoption of new individual renewable energy sources to reduce greenhouse gas emissions. c. Support ongoing research and technology to diversify renewable energy sources. d. Promote energy conservation and greater energy efficiency.

3 Page 2 of 4 POLICY PARAMETERS Eligible Energy Sources Eligible energy sources under this policy are limited to renewable technologies, which generally include wind power, micro-hydro, biomass, and solar systems. New renewable technologies will be considered as they emerge. Size of Electricity Projects Net metering name plate capacity is limited to 5 kilowatts for customers on a shared transformer, and 25 kilowatts for customers on a single transformer. Connection to the Electrical Grid Technical interconnection standards are required to ensure the safety of utility workers, net metering customers, and equipment. Yukon-wide interconnection standards and interconnection agreement templates will be developed by the utilities within six months of the effective date of this policy and presented to the Yukon Utilities Board (YUB) for approval to ensure safety and consistency of application. The utilities have the right to limit the number of net-metering customers in circumstances where infrastructure and/or technical constraints exist. Financial When YEC and YECL bring forward the interconnection standards and the interconnection agreement template to YUB, a proposed rate schedule will be included. The following principles will be used in the development of the rate schedule: 1. The utilities will pay for, own, operate and maintain the meter. 2. There will be one bi-directional meter per net metering customer. 3. The net metering customer is responsible for the interconnection costs and any potential transformer upgrade requirements. 4. The customer will be credited on a kilowatt hour basis for any excess electricity generated over and above the customer s own consumption. A kilowatt hour produced by the customer will be valued at the same price as a kilowatt hour consumed. 5. Excess energy generated in any billing period may be applied to the energy charge in a subsequent month within the annual netting period. The netting period will run from May 1 to April 30 of each year to coincide with the Average Monthly Payment System. 6. On April 30 of each year, the account for each net metering customer will be reset to zero so any kilowatt hour credit cannot be carried over from the previous netting period.

4 Page 3 of 4 ROLES AND RESPONSIBILITIES Joint Responsibilities of the Government of Yukon and the Utilities 1. Implement, maintain and communicate this policy. 2. Evaluate this policy two years from the effective date to ensure its implementation is meeting the set objectives. Government of Yukon 1. Ensure this policy is consistent with the Energy Strategy for Yukon, the Climate Change Action Plan, and other government priorities. 2. Meet obligations under First Nation Final Agreements, and ensure this policy is consistent with those obligations. 3. Develop programming and/or policy options to help offset limited capital costs of becoming a net-metering customer within six months of the effective date of this policy. 4. Provide information to customers seeking to become net-metering customers with respect to forecasting capital/maintenance costs and potential energy savings. Utilities (YEC/YECL) 1. Develop technical interconnection standards and interconnection agreement templates. 2. Determine whether net metering customers meet the interconnection standards and are therefore eligible for net metering. 3. Provide estimates to customer of any upgrades required for interconnection to the grid (void of any investment). YUB 1. Review the proposed rate schedule, technical interconnection standards and interconnection agreement templates for projects up to 25 kilowatts. Net Metering Customer 1. Meet the interconnection standards set by the utilities. 2. Notify the utilities of net metering plans and make available the electrical generation project for inspection by the utilities, or the applicable government. The installation of all eligible energy sources must conform to relevant municipal by-laws, territorial and federal regulations. 3. Enter into an interconnection agreement with the relevant service provider. 4. Conduct individual financial analysis of net metering costs and benefits.

5 Page 4 of 4 DEFINITIONS Average Monthly Payment System Yukon Electrical Company Limited s bill averaging program. Name plate capacity The maximum rated capacity of a generation unit. Net Metering Electricity consumers who own small, renewable energy generators such as wind or solar can receive a credit for a portion of the electricity they generate. Rate Schedules The tariff structure for each customer class that apply throughout the Yukon and are approved by the Yukon Utilities Board. Secondary sales Those connections defined under Rate Schedule 32 Secondary Energy.