OG&E has proposed DG tariffs pursuant to S.B. 1456 of 2014, and also requested permission to close its existing net metering tariff to customers who install(ed) new DG systems after October 31, 2014. OG&E has proposed four new DG tariffs that are based on its existing COS study:
- The proposed residential TOU tariff (R-TOU-kW) includes a monthly customer charge ($18.00), a demand charge ($2.68/kW), on-peak ($0.173/kWh) and off-peak energy charges ($0.0137/kWh), and fuel charges.
- The proposed commercial TOU tariff (COM-TOU-kW) includes a monthly customer charge ($34.75), a demand charge ($3.30/kW), on-peak ($0.1875/kWh) and off-peak energy charges $0.0143/kWh), and fuel charges.
- The proposed new NEM rider (NEBO-kW), applicable to residential DG systems up to 100 kW and non-residential DG systems up to 300 kW installed after October 31, 2014, would be used in conjunction with R-TOU-kW and COM-TOU-kW. If electricity generated by a DG customer by TOU period exceeds the electricity consumed during the same TOU period, the customer would not receive any compensation for net excess kWh generated above the customer’s monthly usage level. (Note: OG&E currently has only 240 existing net metering customers.)
- The proposed additional QF tariff, Renewable Power Purchase Option (RPPO), which is optional, would allow DG customers with systems up to 300 kW to sell all output to OG&E at time-differentiated prices (i.e., $0.147/kWh for on-peak, $0.046/kWh for off-peak).
OG&E stated that it does not seek to adopt a “surcharge.” Rather, it has proposed rates that are “based on embedded cost principles.” It believes its proposal considers and addresses all concerns included in Governor’s Order 2014-07. OG&E also believes its current interconnection agreement is sufficient to address the cost concerns of safety and reliability, and that additional interconnection costs are not needed.