This memorandum is submitted by Energy Coalition New York in opposition to the subject bill which would amend the Public Service Law to increase the caps on net metering from 1% to 5% for all generating equipment but wind, and from 0.3% to 2% for wind generating equipment.

Energy Coalition New York consists of New York State’s major gas and electric utility companies: Central Hudson Gas & Electric Corporation, Consolidated Edison Inc., Orange & Rockland Utilities, Inc., National Fuel Gas Distribution Corporation, National Grid, New York State Electric & Gas Corporation and Rochester Gas and Electric Corporation. Coalition companies collectively employ more than 32,000 people, service more than 8.5 million customers and pay more than $3 billion in state and local taxes, assessments and fees. The member companies annually invest billions of dollars to make capital improvements to the electric and natural gas infrastructure located in New York State.

This legislation is not necessary because the Public Service Commission is vested with the authority to raise these caps and establish a statewide system of applicability if it determines that additional net metering is in the public interest. Public Service Law Section 66-l, paragraph 3(b) provides: “Nothing in this subdivision shall prohibit a corporation from providing net energy metering to additional customer-generators. The Commission shall have the authority, after January first, two thousand twelve, to increase the percent limits if it determines that additional net metering is in the public interest.” Central Hudson Gas & Electric Corporation recently reached the 1% cap. The Public Service Commission recently authorized that the limit on the Central Hudson territory be tripled. The Public Service Commission is also receiving comments as to whether increases should be considered for other utilities.

It is appropriate for the Public Service Commission to make adjustments to the cap through a proceeding rather than by legislative fiat. The decision to expand net metering and under what terms has consequences on all ratepayers. Net metering provides a subsidy to the owners of solar and other renewable systems that is paid for by other customers. To provide the appropriate balance within the system, it is necessary for the regulatory process to undertake a review of the ultimate impacts on ratepayers, since a portion of the cost is socialized. To raise the caps as provided for in this bill without the regulatory review mandated by statute avoids a necessary review process.

Based on the foregoing, it is respectfully requested that this legislation not receive favorable consideration.