Distributed Generation & Net Metering

***NET METERING IS NOW FULL – ALL NEW APPLICATIONS WILL COME ONLINE AS SMALL DISTRIBUTED GENERATION.***

Today’s changing energy landscape is bringing more attention to renewable energy resources. McDonough Power supports generation that is safe, reliable, cost-effective and environmentally responsible. We understand the complexities of these electric issues and have a process to allow interconnection of distributed generation systems owned by members and want to be your trusted partner in renewable energy.

Cooperative policy requires members contact us for approval before installing a distributed generation system so we can ensure the interconnection and parallel operation is safe, reliable, and properly metered. We must also study the feasibility of the installation and in some cases apply system upgrades.

Here are a few steps to guide you along the way…

STEP 1 – Do your homework:

Before making the decision to purchase generating equipment, members should consider the economics of purchasing the equipment and determine whether generating electricity will lower their own monthly power costs. Here’s a tool to help with that analysis – Are You Considering Installing Generation Equipment. It is also recommended that you call our office to discuss the particulars prior to signing any agreements with developers.

Members considering distributed generation should take into account the following:

Cost of the required $1,000,000 liability insurance policy – contact your insurance agent for a quote. Here are the particulars of the insurance requirement:
- Insurance – Prior to connection of the Facilities to the System and throughout the term of this Agreement, Member shall carry a liability insurance policy issued by a licensed insurance carrier with an A. M. Best rating of the B+ or better that provides protection against claims for damages resulting from (i) bodily injury, including wrongful death; and (ii) property damage arising out of the Facilities. The limits of such insurance policy shall be at least $1,000,000 per occurrence and the insurance certificate must show the Cooperative as a party with an additional interest. If the capacity of the Facilities exceeds 25 kW, the certificate must name the Cooperative as an additional insured. Member must provide the Cooperative with a certificate of insurance, confirming the coverage and limits and confirming the interest of the Cooperative.

IN SIMPLE TERMS…

- Up to 25 kW system – ask your insurance agent to add McDonough Power Cooperative as a certificate holder. This doesn’t give the Cooperative any rights to the policy, but does allow the insurance company to inform us of any changes to your policy.
- Over 25 kW – McDonough Power Cooperative will need to be added as an additional insured, which extends coverage to the Cooperative.

Cost of system upgrades – larger projects may require larger equipment, which is the members expense

OUR NET METERING SLOTS ARE NOW FULL – ALL NEW APPLICATIONS WILL COME ONLINE AS SMALL DISTRIBUTED GENERATION.

Members interested in installing a distributed generation system larger than 10 kW (AC) in the Co-op’s service territory can refer to our Qualifying Facility Policy.

As explained in the qualifying facility policies, distributed generation systems above 10 kW and up to 100 kW (AC) have several options for interconnection:

Small Distributed Generation
- Billed for all kilowatts delivered
- Kilowatts generated and delivered back to the grid will be multiplied by the Excess Electricity Value – currently $.0333/kWh
- Any kilowatts generated in excess of the amount delivered will be multiplied by the Excess Electricity Value as stated in dollars per kWh and banked for application in a subsequent month
- Interconnection costs may apply
- See Small Distributed Generation Facilities Policy for further details
Standard Qualifying Facility
- Initial metering charge
- Monthly operations, maintenance, service and administrative charges
- Interconnection costs may apply
- Monthly settlement +/- for energy and capacity delivered back to the grid – avoided cost
Waived Qualifying Facility
- In exchange for not assessing monthly service, administration, operation, and maintenance charges, the member waives the payment of the avoided cost value of electric energy and electric capacity delivered back to the grid
- Interconnection costs may apply

STEP 2 – Submit an application:

The Distributed Generation Application – Attachment A is the application form to be submitted to the cooperative should you decide to proceed. Please include specs of your particular system as well as a one-line engineering diagram.

STEP 3 – Approval & Cost Estimate:

Now that we know all the specifics of your system, we can assess its impact to ensure it interconnects correctly and safely with our system. Our Engineering team will discuss any final details with you, or your developer if necessary. Based on the size of your system and the location of interconnection, we may need to include our Power Supplier in the analysis and approval process.

We will contact you when approval of your application is complete. We will also provide you with a written cost estimate of any equipment necessary to accommodate the interconnection, including the need for possible upgrades, improvements or operational restrictions. An Interconnection Agreement will be executed at this time, which will need to be completed and returned. Here is a sample Interconnection Agreement for your review.

Thereafter, your developer may commence installation of the system at any time.

STEP 4 – System Installation & Interconnection:

Feel free to contact our Engineering team as your system is being installed if any questions arise. The recommended specifications for placement of the disconnect and signage can be found in the Interconnection Agreement. It is imperative that your disconnect remain open and locked until the Cooperative performs its final inspection.

Once installation is complete, BEFORE the system is energized, contact us to make an appointment for inspection of the system.

This is also an ideal time to perform a final review of our Interconnection Agreement to assure you are ready for interconnection.

STEP 5 – Final Inspection & Energization:

The day has finally arrived! A member of our team will meet at your service location to inspect the point of interconnection. Provided you have satisfied the conditions presented in the Interconnection Agreement and provided the Cooperative finds the system safe, reliable and operationally functional, a bi-directional meter will be installed and your system will be energized.

While on-site, we will obtain signatures on the Authorization to Energize and provide you with a copy.

You are now a proud distributed generation member of the Cooperative. Congratulations! After all of the paperwork is processed, you will receive an email containing all final documentation.

POST INSTALL – Billing:

Your future bills will look different as you begin generating energy.

Our billing statements for locations with distributed generation provide two kilowatt-hour readings – kilowatt-hours (kWh) delivered and Member Generated, kWh received. Keep in mind that any online monitoring technology will likely show more kilowatts generated from month-to-month than what will be detailed on your bill – that is due to the fact that you will consume the kilowatts that you can and only the excess will flow back through our bi-directional meter.

Kilowatts delivered will be billed at the normal energy rate, kilowatts delivered are credited at the current Excess Electricity Value. Any excess during the billing period will be banked. We display the usage banked for the period, in addition to the cumulative total banked for the calendar year.

Our program is approved by our Board of Directors and is not mandated by the state and is subject to change. The rates associated with net metering will continually be modified to ensure that we are managing rate disparity among all rate classes.

After you have completed and returned the application form, we will be able to provide you with specific interconnection requirements and estimated costs.

Keep in mind that the cooperative can only assist with information pertaining to connecting to our system. You should be advised that the specifics regarding the necessary equipment and engineering on the member side of the meter should be directed to an electrician or chosen vendor.

Again, we want to be your trusted partner in renewable energy and look forward to working with you through the process.