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ASPA to implement new net metering policy next month
The board of the American Samoa Power Authority has adopted the final version of its Interconnection and Net Energy Metering Policy which will be implemented and become effective beginning May 5, 2008.
The policy was initially set to be implemented on April 2 and is limited to residential and small commercial customers.
Those who wish to install a renewable generating facility, solar or wind, that is 30 kilowatts or smaller and intended to offset all or a portion of their power needs are able to “net meter” with ASPA.
This means that a different meter, either a net meter or two separate meters, would be installed to track the flow of power in both directions. Customers who generate more power than they use in a month will receive kilowatt-hour credits that can be applied to their bills the following months.
However, customers that generate less power than they use will be required to pay the difference to ASPA.
ASPA’s Chief Financial Officer Francis Leasiolagi points out that ASPA has included a “hefty subsidy” to residential and commercial customers, as they receive extra value with ASPA’s decision to net meter the full retail rate, meaning customers receive credit for the ‘bundled’ cost of all ASPA power costs, including fuel, generation, transmission, distribution, customer service, and administration. The retail rate currently includes the inter-division subsidy to other divisions (water, wastewater, and solid waste).
ASPA Chief Operations Officer Reno Vivao said that after considering the public comments received, the decision was made to limit the policy to its intended end users, which are the residential and small commercial customers.
A separate policy will be pursued for larger commercial and industrial customers, with the intention to create conjunction with relevant stakeholders.
ASPA Chief Engineer Joachim Fong explained that large systems like the ones that were requested during the public hearings require more discussion and analysis due to the effects they will have on the grid.
“The responsible approach is to proceed with this policy as it was originally intended and commence work on another policy which addresses the requests made at the public hearing,” he said.
ASPA CEO and general counsel Michael Keyser said that ASPA will be the leader in promoting and implementing renewable energy and to do this, we must reduce our dependence on fossil fuels.
He said that in order to really make these systems cost effective, legislation is needed to create tax or other incentives similar to the existing federal incentives. Keyser said ASPA may speak with the Governor’s Office concerning local legislation that would mirror the existing federal tax credits.
He concluded, “We felt is was important to lay the foundation by adopting this policy and then we will take the lead on finding financial resources to make it more cost effective.”
Copies of ASPA’s final version of the policy have been filed with the appropriate agencies in accordance with the Administrative Procedures Act.
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