Kansas Is Set to Approve Net Energy Metering Bill
Thu ,16/02/2023The Energy, Utilities, and Telecommunications Committee is now holding hearings on HB 2228. The bill will reset the total capacity limitation for net energy metering (NEM) systems that may operate within the service territory of an investor-owned electric utility. The total capacity is now set at 1% and it will be increased to 10%, allowing many more customers to install their own solar panels or wind energy systems. If a customer generates electricity in excess of their monthly consumption, all such net excess energy shall be carried forward from month to month and credited at a ratio of one-to-one against the customer’s energy consumption in subsequent months. It will also increase the load size limitations on a customer’s NEM system up to 250 kW.
HB 2228 is likely to pass as it is supported by many homeowners and businesses for the following reason:
- Kansas has some of the more restrictive net energy metering (NEM) policies in the country. They discourage residents from choosing lower cost options which would benefit both Kansas citizens and the electric companies.
- Residents who install their own power generation systems, such as wind and solar, need to back up their system either with a battery or a connection to the power grid. NEM is a lower cost option than a battery system and provides a number of benefits for Kansans.
- An independent study in California found that NEM customers provide a benefit both for other ratepayers and for the electric company.
- NEM customers allow utilities to avoid costs of generation and fuel, maintenance, and the upgrade of transmission and distribution infrastructure.
- NEM helps avoid the cost of transmission losses (which account for 7% of losses), avoids additional capacity purchases, and increases compliance with renewable energy standards.
• NEM also reduces peak loads, transmission losses, and the need for new power plants.
- Similar research studies in Vermont, New York, California, Texas, Missouri, and Nevada also concluded that net metering provided a net positive benefit for utility companies and their customers.
- It will ensure greater access and affordability of distributed generation systems utilizing solar and wind energy.
- It gives businesses and homeowners an immediate remedy to better manage their electric
energy costs and reduce their monthly bills. - NEM will help stabilize the grid and add to its security. It and any battery backups will feed electricity into the grid when needed.
- It is good for the environment as it helps reduce emissions from coal-fired and gas power plants.
The main opposition to the bill comes from the Evergy electric company, which provides electricity to over one-half of Kansas’ residents. They ignore the benefits of NEM to their company and are reluctant to give up the profits generated by their coal-fired power plants.