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BY KEITH BENMAN
kbenman@nwitimes.com
219.933.3326 | Sunday, July 10, 2005 | (1 comment(s))
Northern Indiana Public Service Co. stands ready to help customers who want to start "net metering" by producing their own renewable power while staying hooked up to NIPSCO's lines, according to NIPSCO officials.
"It is a program we support," said NIPSCO spokesman Tom Cuddy. "It gives those qualifying customers a choice. And we provide the framework to do it safely and reliably."
Net metering is a popular means of encouraging people to use renewable energy sources such as wind generators and solar panels. It basically allows renewable energy producers to "sell" unused energy back to the utility.
NIPSCO and American Electric Power are the last of Indiana's five investor owned utilities to allow net metering. ComEd in Illinois also allows net metering.
The Citizens Action Coalition, the state's largest grass-roots consumer group, has long pushed for net metering in Indiana.
NIPSCO had concerns about safety and reliability when it comes to net metering, according to Ed Brann, a NIPSCO standards engineer who worked with the Indiana Utility Regulatory Commission on the program.
Net metering customers will be required to install an outside disconnect switch accessible to NIPSCO repair crews. During system emergencies or other situations, the renewable energy device can be cut off from NIPSCO's system.
The utility company will also require two electric meters, which it will install. One will measure power from NIPSCO going into the home. The other will measure excess power from the renewable energy device feeding back into NIPSCO's system.
A key to the net metering program is that customers are paid retail rates for power they contribute to the utility's grid. They are paid in the form of bill credits.
"It functions as an earnings bank for customers," Brann said.
It gives customers the opportunity to be compensated for power produced at times when the renewable energy device is at peak production but demand from the household is light. An example for a wind generator would be a windy morning when the home's residents are away at work and school.
"As much as possible, we want to reduce the customer's need for NIPSCO power to zero," Brann said.
Customers will never make a cash "profit" off the arrangement, but it can slash electric bills and eliminate the need for storage devices such as batteries.
NIPSCO has detailed written materials available for customers who inquire about net metering. Eligible customers who chose to proceed will have to sign a written agreement with NIPSCO. It is available for customers with approved wind generators, solar-powered systems, and hydro plants.
Both residential customers and schools are eligible.
Brann expects heightened interest in renewable energy because of the net metering program. However, he does not expect a gold rush.
That is because the renewable energy devices themselves are expensive. For example, a 10 kilowatt wind generator from Bergey WindPower Co. lists for $24,750, according to Bergey's Web site.
NIPSCO has 435,000 electric customers in a region stretching from Hammond in the west to Fort Wayne in the east. AEP has 451,000 customers in Indiana.
Illinois utility ComEd also offers net metering for customers with renewable energy devices such as solar and wind. It currently has 53 customers on net metering.
In addition, the Illinois Department of Commerce and Community Affairs offers grants which will pay up to 50 percent of the cost of a solar installation. The maximum grant is $10,000.
Sources: ComEd and Illinois Dept. of Commerce and Community Affairs
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Curly wrote on Apr 27, 2008 4:24 PM: