Distributed Generation and DS&O Rates

During the annual meeting this past April a member asked about the cooperative’s distributed generation (DG) rates and changes the board may consider when evaluating the net metering rate.

Currently, DS&O has two rates from which the member can choose if they install solar or wind generation.  Option one is the Parallel Generation rate.  This rate will pay the member for all kWhs they generate at the time they generate them.  DS&O prices those kWhs as equivalent to its normal cost of power paid to its wholesale supplier (KEPCo).  The current rate is about $.06 per kWh.  Option 2 is the Net Metering rate which allows the member to bank or get credit for kWhs they generate if used within the month.  DS&O pays the average retail rate (currently about $.094 per kWh) for those kWhs.   With the Net Metering rate, all kWhs must be used during the month generated.  At the end of the month, any kWhs that are not used are swept from the meter and the member starts over again the next month. The DG credits from either rate offset any energy usage purchased from DS&O.