Customer-owned generation

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LES encourages and supports cost effective, small power production of electricity by customer-owned renewable generation facilities.

Overview of the generator interconnection process

LES customers may wish to interconnect a customer-owned generator in parallel with the electric system. FERC-defined qualifying facilities, which include cogeneration facilities and renewable energy generators such as wind and solar, have specific requirements for interconnection with LES. To operate in parallel with LES, the qualifying facility must meet all applicable LES interconnection requirements including, but not limited to, submission of an application for parallel operation, as well as entering into an interconnection agreement. Nonqualifying facilities, which include emergency or backup generators, are generally only allowed to operate in parallel with LES for periodic testing purposes. On a case-by-case basis, LES may allow a customer to contract to operate in parallel for more than testing purposes under agreement with LES to generate only at times of LES’ request. All nonqualifying facilities operating in parallel for both periodic testing purposes or for more than testing purposes must meet all applicable LES interconnection requirements including, but not limited to, submission of an application for parallel operation, as well as entering into an interconnection agreement if required.

The process for interconnecting to the electric system within the LES service area follows:

  1. Customer determines the type, size and site for a generator.
  2. Customer applies for a building permit and completes an LES Application for Electric Service with the city of Lincoln’s Building and Safety department.
  3. Customer completes and submits an Application for Review of Interconnection with LES.
  4. Customer installs the generator according to one of the following requirements:
    1. Requirements for Inverter Based Renewable Generation Systems less than 100 kWAC.
    2. Requirements for Non-Qualifying Generation – Emergency and Standby.
    3. Requirements for Interconnection of Cogeneration and Small Power Production.
  5. Customer completes and returns to LES one of the following forms:
    1. Agreement for Interconnection of Net Metered Generators.
    2. Agreement for Interconnection of Renewable Generation.
    3. Agreement for Interconnection of Cogeneration and Small Power Production.
    4. Agreement for Non-Qualifying Generation – Emergency and Standby (Types 3 and 4).
  6. LES inspects the generator interconnection. If acceptable, customer may interconnect with the electric system.

Net metering snapshot

Renewable generation snapshot

Net metering and renewable generation overview video

These LES avoided costs of generation are displayed on this website as required by the Federal Energy Regulatory Commission, Regulations Order 69, 18 CFR Part 292.302. Avoided costs of generation are the costs saved by reductions in retail energy use.

Net metering

25 kWAC and less

Net metering is a billing arrangement where residential and business customers who produce their own energy from renewable sources can get a credit on their electric bills for extra energy that flows back into our distribution system. We measure the electricity you generate from solar panels, a wind turbine or other renewable generators by a special meter that measures both the electricity you use and the electricity you produce.

The energy you generate is used to offset an equal amount of power supplied by LES in the billing period. Energy produced in excess of your need (or net kilowatt-hours) is credited to your bill at a renewable rate based on our residential retail energy rate. We will net meter generators up to 25 kWAC.

Net metering snapshot

Net metering application

Net metering requirements

Net metering agreement

Renewable generation

Greater than 25 kWAC and up to 100 kWAC

LES’ renewable generation rate is a billing arrangement where customers sell energy to LES from renewable generators of up to 100 kWAC. The same types of generators that qualify for net metering also qualify for this renewable generation rate. All energy produced by these generators will be purchased at the renewable rate.

Renewable generation snapshot

Renewable generation application

Renewable generation requirements

Renewable generation agreement

Cogeneration or small power production

Rates and agreements will be developed on a case-by-case basis.