http://action.publicbroadcasting.net/sdpb/posts/list/28602.page Public Action http://www...ogID=7047. It’s likely this will be an on-going debate in South Dakota and we will work to bring the public all sides of the issue. ]]> http://action.publicbroadcasting.net/sdpb/posts/list/978610.page#1115412 http://action.publicbroadcasting.net/sdpb/posts/list/978610.page#1115412 GMT SD utilities now pay only "avoided cost" for customer-generated electricity, and the only cost they admit to having avoided is that for the fuel they use at generating plants. The bald statement that "everybody's electric rates would go up if distributed generation became common" was also left unquestioned.

Both points are easily challenged:

a) A very large avoided cost being ignored is the budgeting for increased generating plant capacity, which is now standard as the utilities continue to market reduced-rate "all-electric" residential packages (thus encouraging consumption), and otherwise attempt to expand their customer bases.

b) If distributed generation were to become common as the result of something closer to net metering rates, chances are good that utility generating costs (the big-ticket item) would plateau, and distribution line costs would increase only moderately. This being the case, it's hard to see why consumer rates would go up much. Connection fees for new customers would continue to pay for line extensions, etc.

c) Those states adopting net metering laws have done so realizing that some subsidization of distributed generation is good for the state's economy, resulting in an active local alternative energy industry, and less potential problem resulting from the inevitable shifting of environmental externalized costs back to the sources of carbon pollution (which is likely to be a much bigger driver of increased consumer electricity prices).

d) Most distributed-generating parties (such as my wife and me, who have elected to live off-grid) would have been happy to connect to the grid if a compromise rate had been arrived at in SD, i.e., a payment to producers that itemizes a realistic deduction for grid maintenance. This would be considerably more attractive than the present "avoided cost" rate.


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