Xcel Energy Inc. (NYSE: XEL) on Tuesday said it would hold for now a proposal to charge a monthly fee to residential and commercial customers who install solar power systems after April 2010.
The company drew strong criticism from the solar community after suggesting that owners of solar power systems should be charged a recurring grid-connection fee.
Even Colorado Governor John Ritter came out against the proposal saying it would undermine incentives for the installation of solar power and the creation of solar jobs.
Xcel withdrew the plan before a public hearing with the Colorado Public Utilities Commission on Wednesday. However, the company insists the issue needs further examination.
Due to net-metering rules, which pay owners of solar power systems for their excess power produced during the day, these utility customers generally do not pay for the power they use at night. That power is provided by the utilities.
But under current rules, since the customers do not pay for the electricity, they do not pay embedded costs for power plants, transmissions lines, equipment upgrades, fuel and solar incentive programs the utility says.
The issue is likely to grow as more and more people add adopt solar power nationwide, and Xcel seems interested in setting the precedent.
Read further coverage in the Denver Business Journal at the link below.
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