If you have any questions in regards to the above, please do not hesitate to contact our offices so that we may explain the amendments to the provisions of the Code in more detail. Our address is:
Fiddler González & Rodríguez, P.S.C., P.O. Box 363507, San Juan, PR 00936-3507. Our fax (787) 759-3108.
We welcome your questions and comments.
Juan Carlos Gómez Escarce
María L. González Hernández
Pedro J. Reyes Bibiloni
August 8, 2016
REGULATION TO IMPLEMENT AN AGGREGATE NET METERING PROGRAM STILL PENDING PROMULGATION
Net metering is a system by means of which generators of renewable energy are connected to the electric power grid of a public utility and the surplus power they produce is transferred onto the grid, allowing these generators to offset the cost of electricity used from the public utility. The net metering system has a billing mechanism that credits owners of renewable energy systems for the electricity they add to the grid. In Puerto Rico, a net metering program was established by the Puerto Rico Electric Power Authority (PREPA) pursuant to the Net Metering Act of 2007 (Law-114-2007), and in accordance with the Regulation to Establish the Net Metering Program adopted in 2008 [FGR Energy Watch 2013].
The existing net metering program requires PREPA’s customers (commerce, government, industry, agricultural, educational institutions and hospitals) to have a maximum installed capacity (AC power/DC power) of five (5) megawatts. The program, called the basic net metering program, requires an agreement between PREPA and an individual customer who has a single meter connected to a single on-site renewable energy system, produces in a month more electricity that he can use, and will receive credit from PREPA for the extra electricity.
In 2014, as a result of a legislative revision to Puerto Rico’s electric power public policy, the local Energy Commission issued order CEPR-MI-2014-0001, amended on March 2015 (the Order), requiring PREPA to establish an aggregate net metering program. To comply with the Order, on May 2016 PREPA published the Draft Regulation to Interconnect Generators with the Authority’s Electric Transmission or Sub transmission System and to Participate in the Net Metering Programs (the Aggregate Net Metering Proposed Regulation).
The Aggregate Net Metering Proposed Regulation will allow the implementation of an aggregate net metering program. The aggregate net metering is defined as an extension of the Basic Net Metering Program that allows a participant to credit the excess power produced by a renewable energy distributed generator (DG) system in service agreements under the same name, located at the same location of the DG, or in another location as long as the interconnection is to the same power line at a distance of up to two (2) miles of the DG. A DG means all the equipment to produce electric power (i.e., generators, protection, interconnection and control systems, inverters, associated equipment) connected to the private installations of PREPA’s costumer which are capable to run in parallel with PREPA’s electric system.
Based on the Aggregate Net Metering Proposed Regulation, only governmental and higher education entities will be able to participate in the aggregate net metering program, after compliance with the proposed regulatory requirements. The proposed regulation also establishes that PREPA’s customers can enter into an agreement to interconnect the DG to the transmission or sub transmission system, but not agree to participate in the net metering program.
The draft Aggregate Net Metering Proposed Regulation is still under evaluation and public hearings will be held by September to have it approved by October of this year.
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