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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | April 3, 2024 12:29 PM |
|---|---|
| From: | Senator Patrick J. Stefano |
| To: | All Senate members |
| Subject: | Closing the Merchant Generator Loophole |
| In the near future, I will introduce legislation to address a 2020 court decision regarding electric rates. When Pennsylvania first implemented a net metering policy, the purpose was to make solar and other alternative energy technology more affordable. It was never intended to be used as a for-profit business model. This court case paved the way for companies to build solar and other alternative energy systems up to 3MW and never use the power generated on-site. Instead of using the power on-site, finding a private buyer, or selling to the wholesale market like other energy businesses, these companies bypass the wholesale market and force local electric distribution companies to buy the power at the significantly higher retail rate. Developers are explicitly coming to Pennsylvania to exploit this loophole because of the enhanced financial potential. This year alone, nearly all the requests for large-scale net metering projects fall under the court decision loophole. It does not help homeowners or small businesses trying to offset their energy use. To be clear, the use of this business model is paid for solely by the ratepayers. As Pennsylvanians are already feeling the strain of increased utility bills, it is imperative that we stop this practice to safeguard ratepayers from the crippling effects it inevitably will have on their electric bills. Please join me in stopping this practice of unfairly profiting from ratepayers by using a mechanism never intended to apply to these facilities. |