PENNSYLVANIA (WJAC) — Energy costs in Pennsylvania continue to rise, prompting bipartisan discussions in Harrisburg over whether the state’s net metering policy is contributing to higher electric bills.
The Pennsylvania House Energy Committee held an informational meeting at the beginning of this month to discuss the state’s net-metering policies and how they could be driving up energy bills.
Republican Rep. Dallas Kephart of the 73rd District, a secretary on the House Energy Committee, said net metering is becoming a bipartisan issue and is drawing increased attention from lawmakers.
Kephart said net metering is a state policy that allows solar projects up to three megawatts to sell excess power back onto the grid.
He says those projects are paid a retail rate, rather than a wholesale rate, and that difference is a key concern for utility companies and ratepayers.
“And there’s been some concerns about cost to ratepayers, concerning the policy because ratepayers are the ones paying the bill now for this retail rate instead of a wholesale rate,” Kephart said. “And it’s a big difference because it’s a charge per kilowatt hour. And the utilities are saying, ‘Hey, we’re forced to do this.’”
Kephart said the retail rate paid under net metering is higher than the wholesale rate paid to traditional power generators.
“For instance, if Keystone Power Plant or some natural gas power plant in Pennsylvania, they’re paid a wholesale rate for their their electricity that they generate versus the retail rate, which is higher,” he said. “That’s the causing the increased cost.”
Kephart said lawmakers from both parties are now looking at how to adjust the policy, and said Democratic House Energy Committee Chair, Elizabeth Fiedler, called the recent meeting.
“It was, you know, hey, we need to look into this like what is going on? Because we cannot have ratepayers subsidizing high electricity,” Kephart said. “I mean, we’re the ones paying the bill basically. So we can’t have that.”
During the meeting, Fiedler said she has heard of efforts to rewrite net-metering policy through utility rate cases, but believes the issue should be addressed by the Legislature.
“I’ve also heard that there are ongoing efforts to rewrite net metering policy through utility rate cases,” Fiedler said. “I believe that this is something that falls within the purview of the legislature and I’m hoping we will gain ideas and better information and understanding from this hearing so that we can move forward.”
Fiedler also pointed to the impact of rising costs on residents.
“As costs climb, my mind is always on the people back home who are struggling with high high bills and worried about even higher bills,” she said. “I believe we also must encourage the development of local, clean, reliable and affordable energy in Pennsylvania.”
Kephart said no bills have been presented yet regarding net-metering policies, but he described the public hearing as a first step toward finding a solution.
He said the House Energy Committee will continue looking for ways to bring energy prices down.