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Do residential net metering customers pay their fair share of electricity costs? Evidence from New Mexico utilities

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  • Blank, Larry
  • Gegax, Doug

Abstract

We find that 67% of New Mexico's residential net-metering (NEM) customers are net buyers of monthly utility energy and, through these energy purchases from the utility, these customers cover 90% of their full cost of service. For those NEM customers that are net-sellers of “excess energy,” their only contribution to utility costs is through a small monthly fixed customer charge. Because NEM residential customers with “excess energy” comprise only 33%, of total NEM residential customers, NEM residential customer coverage of utility fixed costs, including both the net buyers and net sellers, is 65% of the full cost of electricity service.

Suggested Citation

  • Blank, Larry & Gegax, Doug, 2019. "Do residential net metering customers pay their fair share of electricity costs? Evidence from New Mexico utilities," Utilities Policy, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:juipol:v:61:y:2019:i:c:s0957178719303261
    DOI: 10.1016/j.jup.2019.100973
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    Cited by:

    1. Cambini, Carlo & Soroush, Golnoush, 2019. "Designing grid tariffs in the presence of distributed generation," Utilities Policy, Elsevier, vol. 61(C).
    2. Joanna Aleksiejuk-Gawron & Saulė Milčiuvienė & Julija Kiršienė & Enrique Doheijo & Diego Garzon & Rolandas Urbonas & Darius Milčius, 2020. "Net-Metering Compared to Battery-Based Electricity Storage in a Single-Case PV Application Study Considering the Lithuanian Context," Energies, MDPI, vol. 13(9), pages 1-17, May.

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