SF0111 revises Wyoming’s net metering laws for electricity generated by small customer-generators, especially new systems. The bill directs the Public Service Commission to establish a compensation system for electricity produced by new small customer-generators that provides just and reasonable rates, terms, and conditions. For cooperative electric utilities that are exempt from PSC retail rate regulation, the bill instead requires their boards to set compensation rules by January 1, 2026, with notice to members, an opportunity to comment, filing of the rates with the commission, and access to the complaint and investigation process.
The bill also clarifies how net metering works for existing small customer-generators and updates several definitions and operational requirements in the net metering chapter. It preserves the basic framework that utilities measure electricity flowing both directions, credit excess generation, and allow annual excess credits to be sold at the utility’s avoided cost. It also keeps safety, interconnection, and liability provisions in place, including requirements for compliant equipment, utility access, and customer-generator responsibility for facility costs and modifications.
A major policy change is that the PSC is authorized to establish a different compensation system for excess energy from new small customer-generators if service is being subsidized by other customers. The bill requires the PSC to hold public hearings and adopt rules to implement the new compensation framework by the end of 2025, while exempt cooperatives must adopt their own compensation terms by January 1, 2026. The act would take effect immediately upon completion of the legislative process.
The overall sentiment appears mixed to negative in the full chamber, with some support in committee but insufficient support on final passage. The Senate Corporations Committee recommended the bill do pass by a 4-1 vote, suggesting some agreement that net metering needed revision. However, the bill failed on third reading in the Senate by a 10-17 vote, indicating broader opposition or unresolved concerns among senators.
The main point of contention appears to be how much utilities should compensate new solar or other distributed-generation customers for excess electricity, and whether current net metering arrangements shift costs onto other ratepayers. Supporters likely viewed the bill as a needed modernization and fairness measure, while opponents likely worried it would reduce compensation for customer-generators, weaken net metering incentives, or create uncertainty for existing and future rooftop solar customers. The distinction between PSC-regulated utilities and exempt cooperatives also suggests concern over regulatory authority and local control.
The bill would amend Wyoming’s net metering statutes in Title 37, Chapter 16 by creating a new section governing compensation for new small customer-generators and by revising definitions, billing rules, and related utility obligations. It would give the Public Service Commission authority to set compensation terms for new systems and require cooperative electric utilities exempt from PSC retail rate regulation to adopt their own compensation rules, while preserving existing net metering treatment for current customer-generators and maintaining safety, interconnection, and liability requirements.
The bill’s reception was divided. It received a favorable recommendation in the Senate Corporations Committee, but it failed on third reading in the Senate by a substantial margin. That pattern suggests some legislative support for revising net metering, but not enough consensus to advance the measure. The vote history indicates the bill was controversial and ultimately did not secure broad chamber support.
The central controversy was compensation for excess electricity from small customer-generators, particularly new solar customers, and whether existing net metering policies cause cross-subsidies from non-generating customers. Supporters of revision likely favored allowing the PSC or cooperatives to set lower or different compensation rates to better align costs and benefits. Opponents likely objected to changes that could reduce the value of rooftop solar, discourage distributed generation, or create uneven treatment between utility territories and cooperative systems. The bill’s separate treatment of cooperative utilities also raises concerns about regulatory consistency and member participation.