Members of the Pedernales Electric Co-Op (PEC), who voluntarily switched to solar power for their homes, will soon be getting less money back for the power they don’t use.
According to a KVUE report, the PEC board approved a new buyback schedule that reduces the rate from 9 cents to 5 cents, much to the chagrin of two state lawmakers.
“Solar power, clean energy is something that we should be incentivizing, encouraging," State Rep. Vikki Goodwin said, according to the KVUE report.
State Rep. Erin Zwiener also spoke in opposition to the reduced rates, which she said could end up costing consumers more money.
"One thing I find particularly concerning about this proposal is somebody who is generating more electricity than they are using and contributing back to the grid at peak hours could still end up owing PEC money at the end of the day," Zwiener said, according to KVUE.
In a column posted on TheCannononline.com, Jason Isaac, director of Life:Powered at the Texas Public Policy Foundation, said he believed that without the change, there would have been energy cost increases in the cards for everyone. He also stated in the column that fossil fuels remain the best option for reliable, cost-effective energy. However, KVUE reported that residents were not pleased with the change, including Ben Gawiser, who let the board know he wasn’t happy with the buyback rates.
"I rise today to speak to the absurdity, immorality and likely illegality of the proposal in front of you," Gawiser told the board, according to the outlet.
However, PEC Chief Financial Officer Randy Kruger told KVUE that if the co-op were to continue to buy back power at 9 cents for a kilowatt hour, it would have to increase energy costs for non-solar members by more than double. He told the station that the hike would be a cost burden for those the least able to absorb the additional cost.
In a press release, the PEC noted its credits for solar members were approved in 2016 and updates to metering and billing software have resulted in more accurate cost determinations. It said in the release it will review the cost of its services every three years to make sure all members are paying a fare rate.
Armed with the new data, the release noted that the PEC Board sought a “Value of Solar Study” as well as an economic analysis to determine costs and benefits for solar members. This review found the co-op was losing money for serving solar members, while non-members were left to pick up the tab. Had it not revised the reimbursement structure, the subsidy, which stood at $1.3 million last year, could have reached $20 million for non-members by the end of the decade, according to the release.