| CAC applauds State
Representative efforts on renewable energy February 8, 2004 |
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News Release Today, the Indiana House of Representatives passed House Bill ( HB ) 1212. State Representative Ryan Dvorak was responsible for shepherding the legislation through the House by a vote of 92 to 1. The bill now goes to the Senate for consideration. HB 1212 directs the Indiana Utility Regulatory Commission (IURC) to
adopt net metering rules for solar, wind and fuel cell facilities up to 2
megawatts. Currently, New Jersey plans to adopt a 2 megawatt threshold by
mid-March and Washington state is in the process of passing net metering
legislation for up to 2 megawatts. Net Metering regulations allow a homeowner or business to install wind or solar technology and receive the retail rate for the electricity generated, less customer charges such as metering and billing. In essence, it is a kilowatt-hour swap between the customer-generator and the utility company. The customer's solar panels or wind turbines, as the case may be, are connected to the grid through the circuit breaker box. In Indiana, Indianapolis Power and Light, Public Service Indiana (Cinergy), and Southern Indiana Gas and Electric Co. have net metering tariffs up to 10 kilowatts. The IURC plans to adopt rules for net metering up to 10 kilowatts during the spring. Grant Smith, Utility Program Director for Citizens Action Coalition, said, "With House Bill 1212, Representative Dvorak is setting the stage for helping Indiana to diversify and decentralize its energy mix. The 2-megawatt threshold will definitely catch the attention of small manufacturers and commercial businesses. Renewable energy, particularly wind turbine technology, seems to be more cost-effective in northern regions of the state than previously thought. However, the legislation will go a long way in promoting more investment in photovoltaic systems as well." Reports, such as those by utility companies themselves and small generator advocates, demonstrate that grid-intertied technology has a stellar safety record. Smith said, "There has not been an accident recorded and the current inverter technology, which allows for grid-intertied systems to proliferate, will be pre-certified equipment packages that comply with standards set by the Institute for Electronic and Electrical Engineers (IEEE) and Underwriters Laboratories (UL)." Smith said that studies also demonstrate that investments in decentralized power, also known as distributed power, represent significant customer investments in the local distribution system which reduce costs for utility companies and customers. Smith said that investments in distributed power also help reduce the likelihood of blackouts and that renewable distributed resources help improve environmental quality. Smith said, "Another advantage of widespread investment in renewable energy is that it generally would displace natural gas for producing electricity. This is particularly important due to inflated natural gas prices which have become a significant financial burden to homeowners and businesses alike." One manufacturing firm is already watching the legislation with great interest. IndianaTool Indiana Gear (a division of ITMANCO), located in Plymouth, Indiana, is supportive of net metering. IndianaTool Indiana Gear is a manufacturer of precision gears and machine components, including the manufacturing of renewable energy products for the last 15 years. David K. Neidig, VP for Sales and Marketing at IndianaTool Indiana Gear, said, "We are actively pursuing a cogeneration wind energy facility for the production of electricity for our facility. Net metering plays a vital part in the realization of this project." Smith said, "Representative Dvorak has done a fabulous job with the net metering legislation. He is an effective legislator working toward a better economic and environmental future for the state and his constituents." Contacts: |