Pennsylvania Farm Bureau has submitted written comments to the Public Utility Commission in response to a proposal to revise the regulatory standards for implementation of the Alternative Energy Portfolio Standards Act of 2004.
Standards adopted by the PUC will impact the eligibility of on-farm electrical generating systems hooked to public supply lines to qualify for “net metering” treatment that provides farmers with greater economic return on surplus electrical supply.
In its comments, PFB expressed concern that PUC’s proposed standard to distinguish “customers” eligible for net metering from utilities and other “commercial generators” of electricity is unworkable for families using on-farm generators of electricity to manage their farm business operations.
“Farmers are not commercial electric companies. Their primary focus is making their farm business profitable, not earning a living through supplying electricity,” said PFB President Carl T. Shaffer. “Typically, farmers use alternative energy production to manage the high volume of energy needed to run their farming operations. Use of methane digesters, solar panels and wind farms, often play a critical role in proper environmental management of farms and farmers’ ability to meet environmental regulations. For many farmers, management of environmental impacts of agricultural production is the most important reason why the farmer installs and operates the alternative energy system.”
PFB specifically wants the PUC to reconsider its proposal that would prohibit farmers from being eligible for net metering if the generation capacity of the on-farm system exceeds 110 percent of the farmer’s actual use of electricity.
“Given the high costs and debt that farmers must incur to develop these systems, the 110 percent limitation will act as a disincentive for farm families using Tier I generation to achieve the level of environmental control or economic efficiency that they will need to viably sustain their farms in agricultural production,” concluded Shaffer.
Farm Bureau added that it is ready to work with the PUC to develop net metering regulations that encourage farmers to implement alternative energy projects that improve the environment and produce “clean electricity.”