Net metering is the interconnection of a customer’s power generating facility to a Utility Company’s distribution line.
The Nebraska legislature adopted LB436 in 2009 which allows any customer-generator to interconnect with the Fremont Department of Utility (FDU) as long as they meet all applicable safety, performance, interconnection and reliability standards established by the National Electrical Code and others. With certain limitations, the FDU will purchase excess energy from the customer-generator of methane, wind, solar resources, biomass, hydropower resources, or geothermal resources.
The FDU allows a customer-generator’s retail electricity consumption to be offset by their excess generation, if any. The excess generation is determined by the FDU and is credited to the customer-generator at a rate equal to the FDU’s “avoided cost” (currently $.0218). Monetary credits are carried forward from billing period to billing period and credited against the customer-generator’s retail electric bills, being paid out at the end of each twelve month period.