Oklahoma Gas and Electric is proposing a new “demand charge” be levied on customers who install rooftop solar panels or small wind turbines.
The suggested rate structure was filed with the Oklahoma Corporation Commission, which has to approve so-called “distributed generation” tariffs for OG&E and Public Service Co. by the end of the year, The Oklahoman‘s Paul Monies reports. OG&E says the new billing structure will eliminate the “subsidization” of solar customers by traditional customers:
The subsidization issue was one used by OG&E and Public Service Co. of Oklahoma to push for Senate Bill 1456, which passed in 2014.
The utilities said distributed generation customers still rely on the grid for electricity when the sun isn’t shining or the wind isn’t blowing. Under current billing options, some fixed costs are captured in the kilowatt-hour energy charges that vary by customer usage. The utilities claim rooftop solar users aren’t paying their fair share for poles, transformers, transmission lines and other fixed costs at the times of the day when they’re getting most of their electricity from solar generation.