Oklahoma Moves To Discourage Solar and Wind Power 504
Hugh Pickens DOT Com (2995471) writes "Paul Monies reports at NewsOK that Oklahoma's legislature has passed a bill that allows regulated utilities to apply to the Oklahoma Corporation Commission to charge a higher base rate to customers who generate solar and wind energy and send their excess power back into the grid reversing a 1977 law that forbade utilities to charge extra to solar users. 'Renewable energy fed back into the grid is ultimately doing utility companies a service,' says John Aziz. 'Solar generates in the daytime, when demand for electricity is highest, thereby alleviating pressure during peak demand.'
The state's major electric utilities backed the bill but couldn't provide figures on how much customers already using distributed generation are getting subsidized by other customers. Oklahoma Gas and Electric Co. and Public Service Co. of Oklahoma have about 1.3 million electric customers in the state. They have about 500 customers using distributed generation. Kathleen O'Shea, OG&E spokeswoman, said few distributed generation customers want to sever their ties to the grid. 'If there's something wrong with their panel or it's really cloudy, they need our electricity, and it's going to be there for them,' O'Shea said. 'We just want to make sure they're paying their fair amount of that maintenance cost.' The prospect of widespread adoption of rooftop solar worries many utilities. A report last year by the industry's research group, the Edison Electric Institute, warns of the risks posed by rooftop solar (PDF). 'When customers have the opportunity to reduce their use of a product or find another provider of such service, utility earnings growth is threatened," the report said. "As this threat to growth becomes more evident, investors will become less attracted to investments in the utility sector.''"
The state's major electric utilities backed the bill but couldn't provide figures on how much customers already using distributed generation are getting subsidized by other customers. Oklahoma Gas and Electric Co. and Public Service Co. of Oklahoma have about 1.3 million electric customers in the state. They have about 500 customers using distributed generation. Kathleen O'Shea, OG&E spokeswoman, said few distributed generation customers want to sever their ties to the grid. 'If there's something wrong with their panel or it's really cloudy, they need our electricity, and it's going to be there for them,' O'Shea said. 'We just want to make sure they're paying their fair amount of that maintenance cost.' The prospect of widespread adoption of rooftop solar worries many utilities. A report last year by the industry's research group, the Edison Electric Institute, warns of the risks posed by rooftop solar (PDF). 'When customers have the opportunity to reduce their use of a product or find another provider of such service, utility earnings growth is threatened," the report said. "As this threat to growth becomes more evident, investors will become less attracted to investments in the utility sector.''"
