Peace Energy Renewable Energy Cooperative

Box 2567, Dawson Creek, British Columbia, Canada V1G 5A1

Office: 1204-103rd Ave., Dawson Creek, BC V1G 2G9
admin@peaceenergy.ca www.peaceenergy.ca
ph: 250-782-3882

April 27, 2018

ATTENTION: all Peace Energy Cooperative members, customers and supporters

REGARDING: BC HYDRO’s proposed Net Meter policy change

SUMMARY:

• BC Hydro has applied to the BC Utilities Commission for permission to tweak their net metering
policy.

• The tweak will, if approved by the BCUC, eliminate the need for BC Hydro to pay out energy producers
who intentionally produce a great deal more energy than they need for the purpose of creating
income from their Net Metered systems.

• This will NOT affect any of Peace Energy’s net metered customers because all of our solar systems
are designed to produce just enough power (or less) to meet our customers’ needs over their one-year
billing cycle.

NOW THE DETAILS:

To all Peace Energy Cooperative’s (PEC) members, customers, supporters and those interested in grid tie
Net Metered solar systems, we are writing to advise you of PEC’s understanding of the recent request
BC Hydro made to the British Columbia Utilities Commission (BCUC) for changes to the Net Meter Rate
Schedule governing Net Meter accounts in BC.

Peace Energy has reviewed the BC Hydro notification (sent to current Net meter customers and posted
here) regarding the requested changes to the current Rate Schedule 1289 which governs grid tie Net
Meter accounts.

With the current language in the Amendment, we feel that there will be no material implications to
the PEC solar sales business model, or our current or future Net Meter customers.

The PEC solar business model is, and always has been, focused on maximizing the solar resource to the
point of being Net Zero (or slightly over) such that you use solar produced electricity to displace the
amount of electricity you would normally purchase from BC Hydro in an average year. Under the Net
Meter program, BC Hydro keeps track of your excess electrical production (in kilowatt hours – kWh’s) as
a credit on your account. In each billing period these kWh credits are applied to your current energy use
(kWh’s) from BC Hydro. This results in a reduction or approximate elimination of a net metered customers’
electrical bills. This is NOT going to change with this proposed amendment!

cont’d....

Peace Energy Cooperative – Local People, Local Resources, Local Benefits

 Peace Energy Renewable Energy Cooperative
Box 2567, Dawson Creek, British Columbia, Canada V1G 5A1
Office: 1204-103rd Ave., Dawson Creek, BC V1G 2G9
admin@peaceenergy.ca www.peaceenergy.ca
ph: 250-782-3882

- page 2 -

Looking to future Net Meter systems and based on the current language in the amendment we also do
not see any significant impacts for our future Net Meter customers based on our normal solar design
criteria and business model.

The language in the BC Hydro Amendment is meant to address a loophole in the current Net Meter
rate schedule. This loophole allows NM customers to size their electric generating equipment for power
production far exceeding their usual annual electrical use and receive a cash payout each year.

This is not what the Net Meter program is intended for. The money that BC Hydro pays to it’s Net Meter
customers (10 cents per kWh credit on the account anniversary date) was intended to reward the account
holder for small overproduction since annual electrical use and generation are variable. (In some other
jurisdictions, energy over production from a Net Meter system is not given any value or payout at all!)
The BC Hydro program was not intended as an income stream from Net Meter systems, but rather as a
recognition of value to the overall system.

PEC is asking for review on points in the Amendment regarding methods used to calculate annual energy
use and energy production which we feel need clarification and possible changes. We have made these
concerns known to BC Hydro and the BCUC.

Something else to keep in mind is that this is a submission and request for decision from the BCUC.
Although BC Hydro is looking to implement these changes immediately to close a loophole, the changes
must be approved by the BCUC to become active policy.

Please contact us if you have any questions on this issue or would like to discuss your solar project.

To check out the proposed BC Hydro policy change, go to:

https://www.bchydro.com/content/dam/BCHydro/customer-portal/documents/corporate/regulatory-
planning-documents/integrated-resource-plans/current-plan/application-amend-net-metering-rate-
schedule-1289.PDF

The Peace Energy Solar Team

Peace Energy Cooperative – Local People, Local Resources, Local Benefits