member-owned generation requires co-op approval pages...generated power to avoid paying the full...

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Albemarle Sounds is published monthly by Albemarle Electric Membership Corporation P.O. Box 69 Hertford, NC 27944 (252) 426-5735 Gary Ray, General Manager Chris Powell, Editor Website and member portal: www.aemc.coop Outages: 1-800-274-2072 24-hour payments: (252) 426-4419 Albemarle EMC is an equal opportunity provider and employer. We are members of NC 811. Call 811 or 1-800-632-4949 three business days before you plan to dig. They will contact us to locate any underground electric lines. It’s the law. April 2019 Proudly serving the members of Albemarle Electric Membership Corporation Albemarle EMC Carolina Country APRIL 2019 21 Member-Owned Generation Requires Co-op Approval Albemarle EMC members must get approval from both the cooperative and their local building inspections department, prior to installing generation such as wind or solar. According to the co-op’s Service Rules and Regulations, which members must adhere to, an interconnection agreement is required before installing member-owned generation such as wind or solar. A copy of the agreement can be found at www.aemc. coop, or members can call our office at 426- 5735. The interconnection agreement ensures that member-owned generation is installed in accordance with the co-op’s policies. Among other things, the agreement protects the safety of co-op employees. The interconnection agreement requires that member-owned generation be wired so that it cannot back-feed a power line. A back-fed power line is dangerous because linemen have no way of knowing that a line they thought is de-energized is actually being fed power from member- owned generation. “The interconnection agreement also protects the members,” said Gary Ray, general manager of Albemarle EMC. “Members who install solar panels without approval from the co-op or the building inspections department run the risk of incurring unexpected expenses if changes to the installation method are deemed necessary.” The interconnection agreement also prevents anyone who self-generates power from avoiding their share of the costs associated with staying connected to the co-op’s grid. The co-op can disconnect any member who installs generation such as wind or solar without obtaining an interconnection agreement. (This does not apply to standby generators that supply power during outages). “We never want to disconnect a member,” Ray said. “But improperly installed, member- owned generation threatens the safety of our employees and undermines the fairness of our rate structure.” Per the interconnection agreement, all power generated by a member must be sold to the co-op. This prevents members from using their self- generated power to avoid paying the full cost of staying connected to the co-op’s infrastructure. When a home or business is first connected, the co-op has the expectation that the cost of maintaining that service will be recovered through the rates. If a member can avoid that cost by using the power they generate, the co-op’s ability to maintain service to all members is weakened. “As a member-owned, nonprofit cooperative, we simply cannot afford for members to use self-generated power,” Ray said. “Instead we pay a fair rate for their power, which benefits both the member and the cooperative as a whole.”

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Page 1: Member-Owned Generation Requires Co-op Approval pages...generated power to avoid paying the full cost of staying connected to the co-op’s infrastructure. When a home or business

Albemarle Soundsis published monthly by

Albemarle Electric Membership Corporation

P.O. Box 69Hertford, NC 27944

(252) 426-5735

Gary Ray, General ManagerChris Powell, Editor

Website and member portal:www.aemc.coop

Outages:1-800-274-2072

24-hour payments: (252) 426-4419

Albemarle EMC is an equal opportunity provider and employer.

We are members of NC 811. Call 811 or 1-800-632-4949

three business days before you plan to dig. They will contact us to locate any underground

electric lines. It’s the law.

April 2019 Proudly serving the members of Albemarle Electric Membership Corporation

Albemarle EMC Carolina Country APRIL 2019 21

Member-Owned Generation Requires Co-op Approval

Albemarle EMC members must get approval from both the cooperative and their local building inspections department, prior to installing generation such as wind or solar.

According to the co-op’s Service Rules and Regulations, which members must adhere to, an interconnection agreement is required before installing member-owned generation such as wind or solar. A copy of the agreement can be found at www.aemc.coop, or members can call our office at 426-5735.

The interconnection agreement ensures that member-owned generation is installed in accordance with the co-op’s policies. Among other things, the agreement protects the safety of co-op employees. The interconnection agreement requires that member-owned generation be wired so that it cannot back-feed a power line. A back-fed power line is dangerous because linemen have no way of knowing that a line they thought is de-energized is actually being fed power from member-owned generation.

“The interconnection agreement also protects the members,” said Gary Ray, general manager of Albemarle EMC. “Members who install solar panels without approval from the co-op or the building inspections department run the risk of incurring unexpected expenses if changes to the installation method are deemed necessary.”

The interconnection agreement also prevents anyone who self-generates power from avoiding their share of the costs associated with staying connected to the co-op’s grid. The co-op can disconnect any member who installs generation such as wind or solar without obtaining an interconnection agreement. (This does not apply to standby generators that supply power during outages).

“We never want to disconnect a member,” Ray said. “But improperly installed, member-owned generation threatens the safety of our employees and undermines the fairness of our rate structure.”

Per the interconnection

agreement, all power generated by a member must be sold to the co-op. This prevents members from using their self-generated power to avoid paying the full cost of staying connected to the co-op’s infrastructure. When a home or business is first connected, the co-op has the expectation that the cost of maintaining that service will be recovered through the rates. If a member can avoid that cost by using the power they generate, the co-op’s ability to maintain service to all members is weakened.

“As a member-owned, nonprofit cooperative, we simply cannot afford for members to use self-generated power,” Ray said. “Instead we pay a fair rate for their power, which benefits both the member and the cooperative as a whole.”

Page 2: Member-Owned Generation Requires Co-op Approval pages...generated power to avoid paying the full cost of staying connected to the co-op’s infrastructure. When a home or business

Albemarle EMC Carolina Country APRIL 2019 22

Bright Ideas Program Enters 25th Year

Lineman Appreciation Day is April 8The second Monday in April marks

Lineman Appreciation Day, a celebration of the vital role linemen play in keeping the lights on for co-op members. On this day, Albemarle EMC and electric cooperatives across our state and nation recognize the skill, talent and expertise of our linemen and thank them for their many contributions to our daily lives.

This past year was challenging for many cooperative linemen, as they worked tirelessly to help communities throughout North Carolina recover from multiple hurricanes, as well as snow and ice. Crews from Albemarle EMC traveled to harder-hit regions to assist in restoring power as quickly as possible, often in very treacherous conditions.

“Our linemen are true heroes,” said Gary Ray, general manager of Albemarle EMC. “They are on the front line of our co-op, and are critical to serving our members and providing reliable power.”

Albemarle EMC’s recently purchased bucket truck will increase the co-op’s ability to work on taller than normal poles.

The truck is a 2009 International 7400 6x6 with an Altec AH75 boom. It has a reach of close to 80 feet. It also features a two-person bucket, with a material handler rated up to 1,300 pounds.

“This will enable us to reach the tall transmission poles going down towards Albemarle Plantation and the new line we are building that will feed the new Bethel Substation,” said Jody Parker, manager of operations.

Bucket Truck Purchased

Albemarle EMC is now accepting applications for the 2019 Bright Ideas Education Grant Program. Educators from qualifying schools can apply for up to $12,500 in grants to fund creative, hands-on classroom projects in K-12 classrooms. Teachers can apply individually or as a team, and grants are available for all subjects.

Applications are accepted April 1 through Sept. 23, 2019. To learn more and apply for a 2019 Bright Ideas grant, visit www.ncbrightideas.com.

This year marks the 25th anniversary of Bright Ideas. Grants are awarded by each of North Carolina’s 26 electric cooperatives, including Albemarle EMC, and are open to teachers in all 100 counties. Approximately 600 grants are awarded statewide to teachers each year for projects that engage students in new and innovative ways. Since the program began in 1994 at Brunswick EMC in Shallotte, North Carolina’s electric

cooperatives collectively have awarded more than $12.2 million in Bright Ideas grants to fund more than 11,600 projects, reaching more than 2.3 million students in subjects including math, reading, science, technology, music and the arts.

AEMC Seeks Members Charging Vehicles

Albemarle EMC would like to identify members who charge electric vehicles at their home or business.

Members are asked to call Corporate Services Manager Clarissa Perry at 426-5735. Vehicle charging stations are a growing trend that will likely reshape load management for cooperatives.

“It’s important for your cooperative to know who is charging electric vehicles so that we can provide those members with appropriate service,” said Gary Ray, general manager of Albemarle EMC.

Don’t Plant Near

Transformers

Members are reminded not to plant trees or shrubs near pad-mounted transformers. Linemen require 10 feet of clearance on the side of the transformer with doors and 3 feet of clearance around the remaining sides. Closed for

Easter

Albemarle EMC will be closed Friday, April 19 in observance of the

Easter holiday.

Page 3: Member-Owned Generation Requires Co-op Approval pages...generated power to avoid paying the full cost of staying connected to the co-op’s infrastructure. When a home or business

How Albemarle EMC works to provide its members with the highest-quality service possible.

Albemarle EMC is at Your Service

Albemarle EMC Carolina Country APRIL 2019 23

Albemarle EMC does not allow members with solar or wind generators to use self-generated power, and this is why.

The practice of using electricity generated at a house or business is called net metering. Net metering works like this: A customer installs a generating facility on their property, which is usually a wind turbine or solar panels. The customer then uses all of the electricity they generate. If the customer needs more electricity than they can generate, the power is provided through the utility’s lines just like any other person receives service.

If you think this arrangement sounds fair for the co-op and self generator, it wouldn’t be. Under this scenario, the self-generator receives all of the benefits of being hooked to the grid without having to pay all of the costs. In addition the co-op as well as those who do not self-generate get the short end of the stick.

When Albemarle EMC builds a line, installs a transformer and does everything else needed to ensure a member has electricity, the co-op does so with the expectation that the costs for providing that service will be recovered through the rate and the Basic Charge. The co-op has no other way to recoup those expenses. Exacerbating the issue is the fact that Albemarle EMC is a nonprofit that normally operates on thin margins. The business model for electric co-ops has always been to just break even. Revenue loss has the potential to significantly harm the co-op.

Net metering would also not be fair to other members who, for whatever reason, couldn’t install their own generation. They might not be able to afford it, or have locations unfavorable for wind or solar generation. If Albemarle EMC was to allow net metering, the co-op would make the same capital expenditures to hook up the self-generator as it would make to hook up the non-generating member. However, the co-op would not be able to recoup all of its investment from the sale of electricity to the self-generator. Because of that, the co-op would be limited to two unpopular options: A new rate class would have to be created for self-generators, charging them a higher rate to offset the costs of providing the service. Or the co-op would have to

raise rates for all members. Those who could not self-generate power would be subsidizing those who could.

If Albemarle EMC created a new rate class for self-generating members, those members might claim they were being singled out. On the other hand, implementing an across-the-board increase of rates for all members because of the actions of a few would be unfair. So you can see the no-win situation that net metering could create for your co-op.

Under current policy, if a member generates their own electricity, they must sell all of their electricity to Albemarle EMC. Or that member can choose to disconnect from the co-op’s lines and rely solely on their own generation. (This does not apply to standby generators used during power

outages.) In reality relying solely on self-generation is unlikely due to average homes’ power consumptions and the low amounts of electricity that self-generating technologies currently produce. Nonetheless going off-grid is an option.

All of the self-generators currently on Albemarle EMC’s lines are required to sell their electricity, which we maintain is the fairest arrangement for all. The co-op will pay 5.95 cents per kilowatt hour (kWh) to a generator on our lines. The 5.95 cents is

roughly what Albemarle EMC currently pays for wholesale power, so the expense doesn’t harm the co-op financially. With this arrangement, a generator can sell their electricity for a fair return. However all of the electricity they use comes from Albemarle EMC, which means they help pay their fair share of the costs of running a cooperative. This includes employing workers, purchasing vehicles, maintaining an office, etc.

Albemarle EMC believes our current method of metering is the fairest to all. Moreover it helps us fulfill our duty of providing affordable, reliable electricity to all members, regardless of economic status, location or numerous other considerations. That philosophy is in the roots of our founding. It’s who we are.

Why Albemarle EMC Doesn’t Allow Net Metering

Member-owned generation must be pre-approved by Albemarle EMC, if members would like to continue receiving power from the co-op.