SOUTH HADLEY ELECTRIC LIGHT DEPARTMENT

Net Metering Policy
As Amended 03/23/16
By the South Hadley Municipal Light Board
Policy Description: In an effort to ensure fair treatment of all of its customers, this policy specifies the treatment of distributed generation (“DG”) installations based on the size of the facility. This policy has been designed to reduce the effect of cost-shifting that can occur as a result of net metering these resources. Although SHELD encourages the installation of small scale renewable energy projects, it also understands the burden that these installations can have on other customers. SHELD may charge customers for costs associated with installing additional meter requirements and incidental administration costs. All potential DG customers must have an approved interconnection agreement with SHELD prior to the installation of a DG system. The customer must meet all requirements in the interconnection agreement prior to commercial operation. (See Table 1 for fee schedule.)
Net Metering: Net metering allows the customer to use the output of its generating equipment to exceed its own electric usage in some hours, and to have those excess kilowatt-hours credited to its usage during hours when the output of the generating equipment is less than the customer’s load.
Third party Purchase Power Agreements (PPA’s) are not allowed under the net metering rules above and will be treated as DG Generators as defined later in this policy. Third party PPA’s allow generation developers to sell electricity to customers competing with SHELD for that customer’s sales. State Law exempts municipal electric utilities from offering retail wheeling. Customers must own all equipment installed at the customer site in order to quality for Net Metering.
The net metering facility must be located on property owned or occupied by the customer- generator and must operate in parallel with the Department’s existing distribution facilities. The primary intent of the net metering facility must be to offset some of the customer-generator’s own on-site electric power requirements. SHELD does not allow the use of neighborhood or network net metering.
SHELD limits the cumulative generating capacity of all net metered Residential DG Installations to one percent (1%) of its 2010 annual peak demand. The cumulative capacity of all commercial installations net metered Small Customer and Large Customer DG Installations will be limited to two percent (2%) of the annual peak demand. The 2010 annual peak was 28.5 mW.
In order to provide reasonable protection to all customers but provide incentive for small scale DG projects, SHELD offers net metering for the classes described below:
Residential DG Installations: In order to receive net metering benefits, the installed DG shall be smaller than 10 kW. Any kilowatt hours produced by the customer-generator will be credited at the full retail value at the normal rate for

that customer-generator’s current class of service. If the customer produces more energy than it uses for the month, the customer will be credited on its bill for the excess generation at the full retail rate and the credit will be carried over to the following billing period. The customer shall not receive payment for any credit balance as a result of net metering, and credits that continue for more than a year will be deleted from the customer’s account. SHELD reserves the right to purchase the DG REC’s associated with this generator. For systems larger than 10 kW, the Small Customer DG Installation terms and conditions, as defined below, will apply.
Small Customer DG Installations (<100 kW): Commercial installations for net metering purposes will be limited to 50% of the customer’s annual peak demand. If the customer does not have a demand meter at the premise, the installation will be limited to 40% of the annual energy usage based on a capacity factor of 15%. Installations will be limited to a maximum size of 100 kW.
All kilowatt hours supplied to the customer will be billed at the normal rate for that customer-generator’s current class of service. Any kilowatt hours produced by the customer-generator will be will be credited at the full retail value at the normal rate for that customer-generator’s current class of service. For installations that are less than 100 kW that do not meet the net metering requirements in the first paragraph of this section, the generation will be credited at the electric retail generation rate per the Customer Rate Schedule. If the customer has produced more energy than it has used for the month, the credit will be carried over to the following billing period. The customer shall not receive payment for any credit balance as a result of net metering. Customer credits that continue for more than a year will be deleted from the customer’s account.
Large Customer DG Installations (< 500 kW): Commercial installations for generation net metering purposes will be limited to 60% of the customer’s annual peak demand up to a maximum installed capacity of 500 kW.
All kilowatt hours supplied to the customer will be billed at the normal rate for that customer-generator’s current class of service. Any kilowatt hours produced by the customer-generator will be credited at the electric customer’s retail generation rate per the Customer Rate Schedule, and the credit will be carried over to the following billing period. The customer shall not receive payment for any credit balance as a result of net metering. Customer credits that continue for more than a year will be deleted from the customer’s account.
DG Generators: Installations that do not meet the Net Metering requirements defined above will be listed as DG Generators. DG Generators can sell to the ISO-NE wholesale markets or to third parties outside of SHELD’s service territory. DG Generators may be required to register as an ISO-NE Market Participant and sign an interconnection agreement with ISO-NE in addition

to an interconnection agreement with SHELD. These customers will be charged a wheeling charge as determined by SHELD. SHELD and the DG Generator may mutually agree to enter into a Purchase Power Agreement. Should both parties enter into a PPA, then all generation will be governed by the terms of the PPA.
SHELD reserves the right to change this policy at any time to reflect changes in its Electric Rate Schedules or to bill the customer-generator for any costs that occur as a result of charges directly related to the customer-generator.
Indemnification: SHELD shall not be liable, directly or indirectly, for permitting or continuing to allow the attachment of DG facility, or for the acts or omissions of the customer-generator that cause property damage, or loss, or injury, including death, to any party. SHELD will not be held liable for any financial harm that this policy or modifications to this policy cause the customer- generator.
Safety & Operation: Customers must not interconnect their generating facility with the Department’s distribution facilities until they receive written authorization from SHELD and approval from the Wiring Inspector. Unauthorized interconnections may result in injury to persons and damage to equipment or property for which the customer may be liable. SHELD reserves the right to disconnect generation systems when they are determined to interfere with the operation of Department or other customer equipment, in the sole judgment of the Department. Any corrections or modifications to the equipment will be at the sole expense of the customer-generator.

SOUTH HADLEY ELECTRIC LIGHT DEPARTMENT
PV System Metering Policy
Effective 5/25/2018
By the South Hadley Municipal Light Board

Policy Description: This policy specifies the metering of PV systems connected to the SHELD distribution system as described in the PV Interconnection Requirements – Customer Accessory Operation Policy. It applies to all applications received after the effective date listed above. Residential PV Installations: These installations will require that a bi-directional meter is installed to measure the energy flows between the SHELD system and the customer’s generating system. All kilowatt hours produced by the customer’s system and delivered to SHELD will be credited at the generation charge rate for that customer’s current class of service. All kilowatt hours received from the SHELD system will be billed at the full retail rate for all delivery and supplier services for that customer’s current class of service. If the customer’s generation credit is more than the amount of usage billed, the credit will be carried over to the following billing period. The customer shall not receive payment for any credit balance as a result of this metering, and credits that continue for more than a year will be deleted from the customer’s
account. SHELD reserves the right to purchase the DG REC’s associated with this generator.

Commercial Rate Customers: These customers owned installations will require that a new separate meter will be installed for the generating system, downstream of the existing SHELD metering. All kilowatt hours supplied to the customer from either the SHELD meter or the generator meter will be billed at the normal rate for that customer’s current class of service. All kilowatt hours produced by the customer’s owned system will be credited at the generation charge rate for that customer’s current class of service. If the customer’s generation credit is more than the amount of usage billed, the credit will be carried over to the following billing period. The customer shall not receive payment for any credit balance as a result of this metering, and credits that continue for more than a year will be deleted from the customer’s account. For commercial rates that have a demand charge calculation, the demand will be based upon the existing meter. SHELD reserves the right to purchase the DG REC’s associated with this generator.

“Grandfather” Clause: For installations in-service (or applied) prior to the effective date listed

above, no changes will be made to the calculation of the charges/credits;
1. For the current account. This includes change of account holder name due to marriage, divorce, death, etc.
2. For a period of 25 years commencing on the commercial operation date of the system as listed by the MA DOER.
3. For systems that have been constructed in stages, the 25 year period will be calculated based upon the weighted averaged of the separate components of the complete system.

Any changes/additions to current operational PV systems will void this “grandfather” clause, and they will be metered in accordance with the policy in effect at the time of the change/addition.