Friday, September 5, 2014

Why is We Energies proposing changes to its customer-owned-generation rates?

All of our customers, including those with their own generation, benefit from access to our reliable electricity grid. We are proposing new rates for customers that generate some of their own power because while they enjoy the same benefits from the reliable electricity grid, they currently do not pay their fair share of the grid costs.

These customers use the grid as much, if not more, than customers who do not generate their own power. Some customers generate more energy than they need. When this happens, they use our grid to sell excess energy to us at a retail prices. The grid also ensures that they have the power they need, whenever they need it – at night, in the rain, or under conditions when they need power beyond what their system is able to produce.

Conversely, customers unable to afford their own generating systems, don’t have a suitable place to put them, or simply don’t want them, currently have costs shifted to them from those customers who do have the means to install their own generation.

In this rate case, we’re proposing new rates effective Jan. 1, 2016, for customers who have their own generating systems. The changes we propose will allow us to maintain a system that provides reliable service in an environmentally responsible way, while keeping our rates fair and affordable for all customers.


  1. This policy makes perfect sense. If a person has a vegetable garden, they should have to pay more for buying vegetables at the store in winter, because that customer has convenient access to the grocery store all the time.

    No...wait. Hang on...shit. That makes no sense at all.

    Power is billed for as it is consumed, yes? Kilowatt hour? Ringing any bells? When somebody uses power, they pay for it. When they don't, they don't. What's next...are you going to instill a fee for people who line dry their laundry instead of using an electric dryer?

    Stop being evil.

    1. Although power is billed as consumed, we need to have enough generation available and delivered in an instant to cover all the customers who generate enough of their own power. Having the standby power ready to go is an important consideration in creating a path to renewable energy fairness. Doesn't make sense for our customers who don't generate their power to pick up more of the costs for those who do.