Distributed Generation Grid Access Fee
Freeborn-Mower Cooperative Services is implementing a Distributed Generation Grid Access Fee on new distributed generation systems (wind, solar, etc.) interconnected to the Cooperative’s electric system after April 1, 2016.
For 2017, the fee will be $3.68 per kW, not to exceed $30.00 per month. The fee will be applied only for distributed generation in excess of 3.5 kW. For example, a 5 kW system would be charged for only 1.5 kW.
The Cooperative will review the fee annually and provide notice of any changes. The fee results from a 2015 change to Minnesota law authorizing electric cooperatives and municipal utilities to charge a cost recovery fee on distributed generation facilities. The fee will not be applied to any distributed generation systems that have an interconnection with FMCS prior to April 1, 2016. The fee allows electric cooperatives to recover some of the cost shift that had been occurring between distributed generators and the rest of the cooperative membership. Because distributed generators offset some or all of their energy usage, they no longer pay their fair share to maintain the electric distribution grid that had been recovered in the energy rate.
The fee is not intended to discourage development of distributed generation within the FMCS service territory. The fee is simply for distribution system cost recovery only, done in a fair and reasonable manner. For further information regarding distributed generation interconnection, contact: Mike Murtaugh or Al Stadheim at 507-373-6421 or 800-734-6421.