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September 21, 2017
KCC provides guidance on rate design for distributed generation customers
Topeka - In an order issued this morning, the Kansas Corporation Commission (KCC) provided guidance to electric companies for determining rate design for residential distributed generation (DG) customers. The order states that utilities may establish a separate rate class and propose new rate design for distributed generation (DG) customers to ensure those customers share in the fixed costs of the electric grid and are not subsidized by other ratepayers.
Distributed generation is the term generally applied to the concept that customers can self-produce electricity in small quantities to reduce their monthly utility bills, but remain connected to the power grid. Solar energy is one example.
Today’s order concludes a general investigation opened by the Commission in July 2016 to examine distributed generation rate design issues. Fifteen parties including KCC staff participated in the discussions. On June 16, 2017, twelve of the participants in the docket asked the Commission to approve a non-unanimous stipulation agreement while three parties were opposed. Today’s Commission order adopts the proposed agreement.
Today’s order is available at http://estar.kcc.ks.gov/estar/ViewFile.aspx/20170921102409.pdf?Id=e3082873-458e-4a0e-aeff-3c3bd4dfdf92.