LIPA President Law commends Governor Paterson and State Legislature for passing bill to authorize net metering changes statewide

Uniondale- NY- The Long Island Power Authority (LIPA) is amending its electric service tariff to further encourage the use of solar generating resources and will become the first utility in the state to make commercial net metering available to commercial customers.

Under the proposed changes, LIPA will introduce new tariff provisions to allow for net metering of energy for commercial customers who install solar generating equipment at their facilities and would expand existing tariff eligibility provisions for net metering to residential customers as well.

LIPA’s tariff will conform largely to the legislation spearheaded by Long Island lawmakers Senator Owen J. Johnson and Assemblyman Steve Englebright that recently passed both houses of the Legislature and that authorizes utilities to implement these changes statewide.

Under LIPA’s existing net metering program, residential customers who generate electricity with solar power can in effect see their electric meters “spin backwards” and receive full credit for the electricity they generate with an opportunity to sell back any excess power they produce to LIPA. Net metering provides a significant economic incentive to customers considering the installation of solar generating resources in their homes and businesses.

“This legislation will help Long Island businesses and other businesses throughout the state become eligible for the same advantages residential customers already enjoy,” said Governor David A. Paterson, who called for an expanded and enhanced net metering law earlier this year as one of 16 recommendations from his Renewable Energy Task Force. “Expanding net metering opportunities to commercial customers will lighten the load on the utility grid and give us another renewable option as we continue to wean ourselves from our reliance on fossil fuels and foreign oil.”

“Including commercial customers, and expanding eligibility requirements for residential customers under LIPA’s net metering program is a key part of our continuing efforts to promote the use of renewable sources of energy,” said LIPA President and CEO Kevin S. Law. “As we move forward in these tough economic times when fuel prices continue to soar, it’s important we give all of our customers the same opportunity to reap the rewards of using solar energy resources in their homes and businesses.”

Law added that he expects these modifications to generate a significant number of “green collar” jobs for renewable energy manufacturers and installers. LIPA hopes to generate the momentum for a market transformation on the commercial side, as it already has for installation of residential solar power systems under its successful Solar Pioneer Program that has seen the installation of more than 1,200 photovoltaic systems since the program’s inception and has resulted in more than $30 million in customer rebates.

Just last month, Governor David Paterson and Law announced an RFP seeking the largest block of solar power (50 MW) in the state, to be generated on island, and produce enough energy to power approximately 6,500 homes and reduce carbon dioxide emissions by 20,000 tons.

“As long-time advocates for clean renewable energy technologies, we are thrilled to finally see that all Long Islanders will now be able to lower their electric bills and even sell excess solar power back to LIPA,” said Gordian Raacke, Executive Director of the not-for-profit Renewable Energy Long Island (RELI).  “Kevin Law must be commended for making Long Island the first region in the state to enact this simple and sensible policy.”

“We’re looking forward to working side by side with LIPA to make Long Island the solar capital of New York State,” said Kevin MacLeod, Chairman of the Long Island Solar Energy Industries Association (LISEIA). “We applaud Kevin Law for his leadership in moving solar power forward.”

“At a time of skyrocketing fuel prices and increasing global warming, clean, renewable energy makes more sense now than ever,” said Neal Lewis, Executive Director of the Neighborhood Network. “This vote by the State Legislature to provide the mechanism for commercial businesses to tap renewable energy resources is historic. Today’s announcement by LIPA means that Long Island can lead the state in implementing commercial net metering. This is a strong demonstration of leadership by LIPA that will create ‘green collar’ jobs locally while providing long-term relief to local businesses hit by skyrocketing fuel costs.”

“This will allow businesses to take advantage of the opportunity to sell power back to LIPA and reduce operating costs,” said Desmond Ryan, Executive Director of the Association for a Better Long Island (ABLI).  “As our region continues to struggle under the weight of high property taxes and the exodus of our highly-educated and skilled workforce for less expensive pastures, this opportunity for LIPA’s commercial customers could not have come at a more appropriate time.”

Under LIPA’s current tariff the net metering program is not available to business customers. In addition residential customers are limited to the amount of solar they can install and still be eligible for net metering. The proposed amendments would include the following:

1) To authorize net metering for non-residential customers with an overall capacity of up to the lesser of the customers peak demand, or 2MW
2) Increase the overall capacity for net metering on residential solar customers from 11kW to 27.5 kW
3) Increase the combined total allowed overall capacity for residential and non-residential net metering on LIPA’s transmission and distribution system from 3.6MW to 51.2 MW 

Law commended state lawmakers for passing the legislation to expand the net metering provisions statewide.  “By loosening the state’s net metering restrictions, the Legislature is allowing for the expansion of the use of solar power, which will no doubt lead to positive impacts economically and environmentally,” Law said.

Fore more information on LIPA’s net metering program visit www.lipower.org

LIPA, a non-profit municipal electric provider, owns the retail electric Transmission and Distribution System on Long Island and provides electric service to more than 1.1 million customers in Nassau and Suffolk counties and the Rockaway Peninsula in Queens. LIPA is the 2nd largest municipal electric utility in the nation in terms of electric revenues, 3rd largest in terms of customers served and the 7th largest in terms of electricity delivered. In 2006, LIPA outperformed all other overhead electric utilities in New York State in all three major reliability categories. LIPA does not provide natural gas service or own any on-island generating assets. More information about LIPA can be found online at: http://www.lipower.org

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