Metering Solar or Distributed Renewable Generation
The way metering of solar or distributed renewable generation is implemented for AEP Texas customers is determined by the Texas Public Utility Commission and contains specific roles for both the Utilities and the company which sells you electricity (your "retail electric provider", or "REP"). It is important for you to understand these roles so that you can assess the financial payback of your solar energy system and know who is responsible for metering, billing, and crediting your electric account.
Key Terms
| Distributed Renewable Generation (DRG) | Electric generation equipment with a capacity of not more than 2,000 kilowatts provided by a renewable energy technology, as defined by Public Utility Regulatory Act §39.904(d), installed on a retail electric customer's side of the meter. |
| In-flows | Energy delivered by an electric utility to a customer. |
| Out-flows | Energy produced by DRG and delivered to an electric utility distribution system. |
| Retail electric provider (REP) | The company responsible for the retail sale of electricity to end-use customers. |
| Transmission and distribution utility (TDU) | The company responsible for maintaining the electric distribution system and metering electricity at the point of use. AEP TCC and AEP TNC are TDUs. |
The TDU's Role
AEP Texas is a transmission and distribution utilities (TDU), responsible for maintaining the electric distribution system and for metering electricity at the point of use. As such, its responsibilities for customers with Distributed Renewable Generation (DRG) chiefly involve:
- Ensuring that DRG equipment proposed for interconnection with the grid will operate safely and seamlessly with the Utilities' distribution system; and,
- Metering each DRG customer's electricity inflows and outflows and making those metered values available to the customer's retail electric provider (REP) for billing purposes.
With regard to metering, TDUs are required to offer metering to DRG customers which separately measures in-flows and out-flows. If the customer requests in-flow/out-flow metering, the TDU will replace the customer's existing meter with a new meter, at the customer's expense, and the customer will be able to negotiate with their retail electric provider for the value of out-flows. Customers can choose not to have inflow-outflow metering installed. With this choice, a detented meter will be installed that measures in-flow only. There is no charge associated with making this selection, but customers may lose the opportunity to be credited for out-flows.
AEP Texas may not and does not engage in the purchase or retail sale of energy inflows or outflows from any customers, including customers with distributed renewable generation. A customer’s retail electric provider (REP) is responsible for retail sales of energy provided to the customer (in-flows), and may contract with the customer for the purchase of energy provided to the distribution system by the customer (out-flows).
Customers should contact their retail electric provider for more information about the availability and terms of compensation for outflows. You may also contact your Service Provider or the Program Manager directly with questions about metering.
Your Retail Electric Provider's (REP's) Role
Customers of AEP Texas are located in Texas' competitive retail electricity market and can choose the company from whom they purchase electricity - the "retail electric provider", or REP. Your REP is responsible for billing you for the energy you receive from the grid (in-flows), and, for DRG customers with in-flow/out-flow metering, determining a value for any energy you deliver to the grid (out-flows). Your REP is not required to credit or buy-back the out-flows from DRG customers, nor is the value of outflows determined by law or regulation.
As a prospective or current customer with DRG, you should contact your existing REP and other REPs to ask about their rates and the composition of their energy supplies, as well as their current and planned "distributed renewable generation out-flow crediting" provisions. You should choose the REP which offers you the most value for your dollar. You may see a list of REPs who offer to credit you for out-flow energy at this website.
