Net metering discussions in Augusta are being overcomplicated. A straightforward and equitable solution lies within Maine electric bills.

Sixteen years ago, the Legislature required electric utility companies to divest. Generation and delivery charges were separated into supply (the amount of electricity used) and delivery (the cost to maintain the infrastructure – lines, poles, transformers, meters, etc. – needed to transport that electricity to the user).

The Public Utilities Commission annually sets delivery charges for Maine’s electric utility companies. The costs to maintain infrastructure are the same regardless of the direction of electricity flow. It doesn’t matter if the current flows to the user or from the user – the costs are the same.

Supply charges are the costs associated with generating the electricity sent through the lines for delivery. Although supply costs vary and are set by competitive providers chosen by the buyer, the standard offer price is set annually by the PUC.

While solar panel owners may supply some or most of their own electricity, if connected to delivery lines, infrastructure costs remain the same. Based on this, there’s a simple formula that easily applies to net metering.

Solar generators, connected to the grid, are paid for electricity returned to the grid (for others to use) at the annual standard offer rate, minus the delivery rate of their local electric utility, thereby paying for use of infrastructure.

(Kilowatt-Hours x Standard Offer Rate) – (KWH x Delivery Charge) = Amount Paid to Solar Panel Owner.

This simple and effective formula allows for clean energy to be pumped into the grid at fair market value for all ratepayers and electric utilities. Certainly, it is less money than what solar generators now receive, but it doesn’t place the burden of maintaining the infrastructure needs of solar power generators on other ratepayers.

Micah Engber

South Portland

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