AUSTIN, Texas — It's not what many solar members wanted but Friday's Pedernales Electric Cooperative vote by its board of directors didn't come as a surprise. As the KVUE Defenders discovered, not even elected officials stepping in made a difference.
Without a question, the PEC Board approved a new solar pay structure that lowers the buyback rate from 9 cents to 5 cents. And unlike board members, many solar members voiced their concerns, like Ben Gawiser.
"I rise today to speak to the absurdity, immorality and likely illegality of the proposal in front of you," said Gawiser.
And Jefferson Chesier.
"This is not for rich people only anymore. I am certainly not a rich person, I am a working-class Joe," said Chesier.
Chesier also said the rate change means he won't make his money back until after he's gone.
"My 20-year payback goes longer than my life expectancy," Chesier said. "It's the working-class Joes who have a lot of skin based on what the rules of the road were that are now going to be underwater forever."
State Reps. Erin Zwiener and Vikki Goodwin also pleaded with the board.
"Solar power, clean energy is something that we should be incentivizing, encouraging," Rep. Goodwin said.
"One thing I find particularly concerning about this proposal is somebody who is generating more electricity than they are using and contributing back to the grid at peak hours could still end up owing PEC money at the end of the day," said Rep. Zwiener.
PEC's Chief Financial Officer Randy Kruger defended the new solar rate.
"If we were to continue purchasing energy at 9 cents a kilowatt-hour, we would have to more than double the energy charge on non-solar members, and that would create a particular burden for those who could least afford it," Kruger said.
Kaiba White, an energy policy and outreach specialist with Public Citizen, said the board's actions were disappointing and "will dramatically increase their bills and potentially discourage other co-op members from using solar in their homes."
Moving forward, White said solar members shouldn't expect much more from this elected board as far as the solar rate issue is concerned.
PEC issued the following in press release Friday afternoon:
"The PEC Board of Directors today formally approved a new solar interconnection rate (Sustainable Power Credit). The new credit was adopted after more than a year-long public process of cost review, member input, and independent studies.
"The past year’s thorough, deliberative process has resulted in our newly adopted Sustainable Power Credit, which will continue to provide financial incentives for members who choose to invest in rooftop solar without requiring subsidization from non-solar members,” said PEC Board President Emily Pataki. “PEC remains steadfast in its cooperative mission to provide reliable, low-cost power to all members while simultaneously offering a sustainable, long-term member solar generation program.”
"PEC’s current power generation credits for solar members were approved in 2016. Since then, advancements with metering and billing software systems have enabled PEC to more accurately measure the true cost of serving its solar members. PEC will conduct a cost of service study every three years in order to ensure all members are charged correctly for their use of the system.
"With this new data available, PEC’s Board of Directors recently commissioned an independent “Value of Solar Study” and a separate independent Economic Analysis to determine the benefits and costs gained by the cooperative from members with solar installations.
"These calculations revealed that the electric co-op had not been recovering the full cost incurred for serving solar members thus resulting in PEC’s non-solar members subsidizing solar generation members. At a cost of more than $1.3 million for the past year, this subsidy would likely have reached $13 to $20 million in additional costs to PEC’s non-solar members over the next decade if not trued-up.
"Currently, about 6,100 PEC members have distributed generation (solar) installations and make up approximately 1.7% of the co-op’s total members. The new interconnection rate will not affect a member’s use of the solar energy produced at their home. It only impacts the credit they will receive for energy that flows back onto the PEC distribution system. The newly adopted Sustainable Power Credit is 5.377 cents/kWh and is greater than what’s offered by many other electric cooperatives across the state. This rate is designed to pay solar members for their excess power at the market value of power plus any system benefit. This means that under the new rate, solar members will be compensated by more than 30% of what PEC pays for average wholesale electricity.
"PEC’s portfolio of renewable energy — including solar, wind, and hydro — is one of the largest of any electric cooperative in the nation. In addition to PEC’s solar interconnection program, the cooperative also offers a community solar program where members who don’t have solar installations can choose to use power that comes strictly from solar sources and offers a renewable rider program which allows members to choose power that’s generated only from renewable resources.
"The new adopted Sustainable Power Credit will go into effect March 1, 2022."
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