Distributed Energy Resources (DER)

The purpose of this tracker is to capture the latest information at the state level on policies impacting the deployment of distributed energy resources (DER), including information on legislative and regulatory actions in the states and how these policies impact electric cooperatives.

The tracker is interactive and will be updated quarterly. You can:

• Compare how one type of policy is implemented across multiple states
• Look at the full breadth of policies offered in a particular state
• Focus on the current status of each policy in the states
• Learn additional background and history on each policy by visiting comprehensive summaries NRECA has developed for its members
• View legislation passed or rules implemented in the states

The goal is to help users understand the landscape across the country on DER and retail restructuring issues to enable them to respond to any debates going on in their states.
The tracker covers the following policy topics:

• Net Energy Metering (NEM) programs compensate DER customers for energy produced in excess of the facility’s on-site usage, which is delivered to the grid. Many NEM programs compensate customers at retail rates, although some programs set compensation at wholesale rates.
• Value of Solar (VOS) tariffs measure the costs and benefits of customer-owned distributed solar generation to the utility, which then compensates the customer for the net value.
• Third Party Sales (3PS) allows renewable energy projects owned or operated by a third party to sell directly to a consumer bypassing the utility. The third-party provider may also be eligible to participate in net metering arrangements through the utility.
• Section 210 of PURPA (or the Public Utility Regulatory Policies Act of 1978) requires that a utility (including electric cooperatives) purchase energy and capacity from qualifying facilities (QFs), sell power to QFs, and interconnect with QFs. Depending on the characteristics of distributed generation, it may also be eligible for QF status.
• The Distribution System Operator (DSO) is a concept is arising from the emerging need to integrate distributed generation and other energy resources at the distribution level. There are two versions of the DSO concept: (1) a utility-driven model where the incumbent utility maintains its traditional responsibilities and serves as a DSO and (2) a policy-driven model where the incumbent utility would be reduced to a poles and wires company and an independent entity would operate the distribution system and institute a competitive retail market. Transactive Energy (TE) refers to customers directly trading or selling energy directly to each other without the utility tracking such purchases to the grid.
• Retail Choice allows end-use customers to choose between their incumbent utility and alternative retail suppliers for their electricity purchases.
• Renewable Portfolio Standards (RPS) are regulatory mandates that require utilities to achieve prescribed levels of production of energy from certain renewable sources. The levels, target dates, and defined renewable sources vary by state. There is no federal RPS at this time.
• Energy Efficiency Portfolio Standards (EEPS) are regulatory mandates that require utilities to achieve prescribed levels of energy savings. The levels, target dates, and sectors subject to the standard vary by state. There is no federal EEPS at this time.
• Electric Vehicles (EVs) could have significant impacts on the electric utility sector and potentially impact all aspects of co-op business operations and performance, including electric rates, load growth, and demand for charging infrastructure.
• Distributed Generation (DG) Interconnection Policies refer to the requirements that a regulator imposes on distributed generators to interconnect with the grid. The requirements typically vary based on the capacity of the generating resource.
• Energy Storage refers to resources that can receive electricity from the grid and store the energy for later use or to flow back to the grid in the future.