Just a few months after the Utah’s Public Service Commission’s (PSC) decision to lower the compensation for exported rooftop solar energy, Rocky Mountain Power came back with a proposal to lower the Export Credit Rate – again – this time by an additional 55%. Rocky Mountain Power proposed a unique, one-of-a-kind methodology for calculating the capacity value of the Export Credit Rate that would have reduced the Solar Export Credit Rate (currently about 5.5. – 6 cents) down even further, to 3.569 cents per kWh in summer and 3.239 cents per kWh in the winter.
Fortunately, following testimony from Utah Clean Energy defending the Export Credit Rate, the PSC has largely ruled to uphold the current value. The PSC’s Order, issued yesterday, reduces the value by only a fraction of a penny, to 5.817 cents per kWh in summer and 5.487 cents per kWh in winter. The new rate will go into effect on May 1, 2021.
This is not the last you’ll hear of the Export Credit Rate – the PSC agreed to adjust the rate on an annual basis. However, upholding the current value of the ECR provides predictability that helps individuals and businesses to understand the financial impact of a long-term investment in solar.