Proposal seeks to punish solar users
Texas is blessed with some of the most abundant energy resources in the world, and clean energy is an increasingly important part of that mix. We’re the national leader in wind energy capacity and rank second in solar capacity. One-third of the utility-scale solar capacity planned to come online in the United States in the next two years will be in Texas. That’s why we at Conservative Texans for Energy Innovation are dismayed to see the state’s largest electricity cooperative moving in the wrong direction by proposing new fees that would punish its members who utilize solar energy they generate at their home.
The Pedernales Electric Cooperative, or PEC, which provides power to 365,000 residents in Central Texas, including most of Hays County, is considering imposing new transmission costs and peak demand charges for more than 5,000 members who have invested in home solar panels. In addition to rate hikes, the PEC already enacted a one-time application and connection fee of $500 for new solar customers. No such higher fees and surcharges will be charged to customers who purchase solar energy generated by PEC — those customers will receive new credits.
The rate changes would make solar more expensive for many because it would slash the rate the cooperative pays for energy that members who produce solar power return to the utility from their residential solar panels. Some members have estimated bill increases ranging from 40 percent to more than 600 percent, with many paying hundreds of dollars more per year under the new proposal. The utility’s board of directors is set to vote on the proposal on Friday. We urge the board to reject this bad idea.
We support a responsible “all
of the above” energy policy, and we encourage competition and free markets. In Texas, inventors, entrepreneurs and manufacturers are leading a global transformation toward cleaner, more secure energy choices that create jobs and protect our environment. Unfortunately, traditional energy systems that rely strictly on fossil fuels fail to value and recognize these market demands.
Ironically, the Pedernales Electric Cooperative championed clean energy for its members just six years ago, when it announced the establishment of a financing program that provides low-interest loans for clean (primarily solar) energy projects at home. The utility’s customers took advantage of it, as evidenced by the thousands who now power their homes, at least partially, with energy from the sun.
This proposed solar rate is a slap in the face to the 5,000 members who have already invested in solar energy and a clear signal to other members not to do the same. The proposed rate increase is also without an economic impact analysis on members and punishes a specific energy source. Instead, the cooperative is basing its proposed solar rate hike on a flawed study,
commissioned and paid for by the PEC, that included no public input.
The study also fails to take into account that energy costs are rising due to the increasing cost of natural gas; that higher grid charges have been, and will be, levied against PEC based on the consumption of its customers; that solar systems produce energy for at least 30 years; and that increased solar adoption means less wear and tear on the co-op’s energy distribution system and lower charges from the electric grid. The proposal also entirely ignores solar’s environmental benefits.
“Concern for community” is one of seven guiding principles for the Pedernales Electric Cooperative. Local solar power is good for local communities, our economy and our planet. We urge the board to encourage — not discourage — its use and abandon
the misguided proposal to raise costs for solar power users.