About Net Metering
Most people think of net metering as the ability to "spin their electric meter backwards," or as the ability to "sell back" excess electricity they produce to their electricity utility. Net metering is implemented in different ways by different utilities throughout the U.S. and Texas. The way net metering is implemented for TNMP's customers is determined by the Texas Public Utility Commission and contains specific roles for both TNMP 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. |
TNMP's Role
TNMP is a transmission and distribution utility (TDU), responsible for maintaining the electric distribution system and for metering electricity at the point of use. As such, TNMP's 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 TNMP's 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, TNMP is required to offer metering to DRG customers which separately measures in-flows and out-flows. If the customer requests in-flow/out-flow metering, TNMP 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 and keep their existing inflow-only meters. There is no charge associated with making this selection, but customers may lose the opportunity to be credited for out-flows from their retail electric provider (REP).
TNMP may not and does not engage in the purchase or retail sale 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 net metering.
Your Retail Electric Provider's (REP's) Role
As an TNMP customer, you are located in Texas' competitive retail electricity market and can choose the company from whom you buy electricity - your "retail electric provider", or REP. Your retail electric provider 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. The idea is that a sufficient number of DRG customers can create competition among REPs to serve you, and that REPs will compete with one another to attract DRG customers through their electricity rates and out-flow buyback terms.
As a prospective or current customer with DRG, you should contact your REP to ask about their rates and the composition of their energy supplies, as well as their current and planned "distributed renewable generation out-flow buyback" provisions. You should choose the REP which offers you the most value for your dollar. You may see a list of REPs available to serve you at this website.