Mon Power and Potomac Edison Propose Net Energy Metering Rate Settlement in West Virginia
Mon Power and Potomac Edison, subsidiaries of FirstEnergy Corp., have recently submitted a proposal to the Public Service Commission (PSC) of West Virginia, outlining a proposed settlement regarding net energy metering rates. If the settlement is approved, it will have significant implications for new net energy metering customers commencing January 1, 2025, as it would alter the credit they receive for self-generated energy.
The primary objective of this agreement is to strike a balance between the costs incurred by net energy metering customers and the utilities themselves. Under the terms of the settlement, residential customers who generate their own energy through renewable sources such as wind or solar power will be credited at approximately 9 cents per kilowatt-hour for any excess energy they supply to the grid. The aim is to allocate the fixed costs attributed to distribution, transmission, and capacity facilities in a fair and equitable manner, taking into account all users.
Importantly, this change will not impact existing net energy metering customers who will continue to benefit from the current retail rate offset for a duration of 25 years from their initial enrollment. The settlement also establishes new credit rates for non-residential customers, with specific details outlined in the filing.
The proposal was put forward after negotiations involving various parties, including the PSC staff, the Consumer Advocate Division of the Commission, West Virginia Citizen Action Group, Solar United Neighbors, Energy Efficient West Virginia, Solar Holler LLC, as well as the utilities themselves.
Mon Power operates as an electric service provider for approximately 395,000 customers across 34 counties in West Virginia. Meanwhile, Potomac Edison serves roughly 285,000 customers in Maryland and an additional 155,000 customers in West Virginia's Eastern Panhandle. These companies are part of FirstEnergy Corp., a major player in the US electric systems sector, boasting one of the largest investor-owned systems nationally.
Analyst comment
Positive news: The proposal for a settlement on net energy metering rates between Mon Power, Potomac Edison, and the Public Service Commission of West Virginia aims to balance costs and distribute them fairly among users. New residential customers will receive credits for excess energy supplied at approximately 9 cents per kilowatt-hour. Existing customers will not be affected. Non-residential customer credit rates will also be set.
