PEC approves reducing rate paid back to solar power users

Pedernales Electric Cooperative Board of Directors approved unanimously reducing the amount of money paid back to solar power participants Dec. 17 to ensure a contribution of utility payments considered “fair for all members,” officials said.

Since 2016, the charge for electricity received through the Community Solar Program is $0.061080/ kWh. The approved new buy-back rate would be $0.0537/kWh.

A statement from the board of directors described the new credit as “simple, sustainable.”

“The past year’s thorough, deliberative process has resulted in our newly-adopted Sustainable Power Credit, which will continue to provide financial incentives for members who choose to invest in rooftop solar without requiring subsidization from non-solar members,” said PEC Board President Emily Pataki. “PEC remains steadfast in its cooperative mission to provide reliable, low-cost power to all members while simultaneously offering a sustainable, longterm member solar generation program.”

A “subsidy” to make up the difference between solar and non-solar customers (approximately $1.3 million) would likely have reached $13 to $20 million in additional costs to PEC’s non-solar members over the next decade if the credit had remained unchanged, officials said.

To determine the need for the new credit, PEC utilized data from primarily two sources – an independent “Value of Solar Study” and an Economic Analysis.

Currently, more than 6,000 PEC customers (about 1.7 percent of the members) have solar (distributed generation) installations.

“The new interconnection rate will not affect a member’s use of the solar energy produced at their home,” according to a PEC statement about the board’s decision. “It only impacts the credit they will receive for energy that flows back onto the PEC distribution system.”

“The newly adopted Sustainable Power Credit is 5.377 cents/kWh and is greater than what’s offered by many other electric cooperatives across the state,” the statement continued. “This rate is designed to pay solar members for their excess power at the market value of power plus any system benefit.”

Officials estimated that solar members will be compensated by more than 30 percent of “what PEC pays for average wholesale electricity.”

Those in the solar program may experience a hike in their bills due to fewer buyback dollars from PEC.

PEC is expected to conduct a cost of service study every three years to evaluate charges for their use of the system.