Quote:
Originally Posted by JSH
Why would a homeowner feeding back into the grid pay the utility line fees? The power isn't going back to the power plant miles away it is going maybe 100 feet to the house next door.
Smart metering and paying the spot price would make it even worse for the utility. Homeowners are feeding into the grid on peak and pulling out of it off-peak. They fill the gap when the utilities cost is highest.
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I will try to explain this to you one more time. In practical application of having a meter run backwards, the electricity company has been forced to pay the home owner for the line fees and the taxes as if the home owner owned the lines and was sending in the tax payments. This is a big loss to the electric company. They are buying electricity from the home owner for $0.12 /kwh when they could be buying it from their normal producers for $0.04. Even if the peak spot price for the electricity was generally 2x and coincided with the home owner's production peak, the company is still losing money.
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I don't know where you are getting your demand price increase of 5x because this is not common in any major developed market outside of places like Australia which has prematurely closed some of it's production facilities and now suffers drastic afternoon/ evening cooling period shortfalls. California's normal daily peak prices ar only about 2x. NY is much less.