Welcome to KEC’s Net Metering Program!
Net metering is a billing mechanism that tracks the difference between the excess electricity a member sends to the grid from their generation system (solar, wind, etc.) and the electricity they draw from the grid when their generation system’s production is low. The member is billed or credited for the “net” difference of energy from that billing period.
How It Works
1
A member-owned system collects energy from the sun, wind, etc., and converts it into electricity. The total amount of electricity produced by the system is not recorded by Kootenai Electric Cooperative (KEC).
2
An inverter converts the electricity from the system from direct current (DC) to alternating current (AC) so that it is safe to use in your home.
3
The electricity generated by the system is used to power your home in real time. If your home has a battery storage system, the excess electricity will be stored to the capacity of your specific system.
4
If your system generates more electricity than your home needs (or batteries can store at any moment), then the remaining electricity flows through KEC’s bi-directional meter, where it is recorded and sent to the grid. The electricity is measured in kilowatt hours (kWh).
5
If your home needs more electricity than your system (or batteries) can provide at any given moment, then the additional electricity flows through KEC’s meter, where it is recorded and then used in the home or stored by batteries.
6
At the end of each billing period, KEC subtracts the electricity you sent to the grid from what you used from the grid. You are billed for the difference, called the “net”. If more electricity is sent to the grid than used, then the extra amount is credited or “banked” and used to offset future billing periods.
Understanding Bill Terminology
Below is a brief description of the rate components that members on a net meter rate could see on their monthly billing statements, depending on the amount of power they consume or generate.
Service Availability Charge
This charge helps recover the fixed cost of providing service to members. Visit the What is the Service Availability Charge page to learn more. This charge is $32.50 for residential net meter locations and applies regardless of the amount of power generated by the member.
Energy Charge
This charge includes the Base Energy Charge specific to each rate schedule, as well as the Power Cost Adjustment (PCA) and is charged on a per kilowatt hour (kWh) basis. Members who generate enough excess power to fully offset their consumption for the billing period will not see this charge on their billing statement. The Energy Charge effective with January 2026 billings is $0.10504 per kWh.
Peak Use Charge/Credit
Members are billed for the highest consumption during a single hour of the day that occurs during our peak hours (6 to 10 a.m. and 5 to 9 p.m.) in the billing period. The rate will be $6 per kilowatt (kW); however, the first 5kW will be at no charge.
If a member has negative peak use demand during all peak use interval hours for the billing period, the member will receive a Peak Use Credit instead of a charge. The single hour with the highest (closest to zero) kW during those hours will be used to calculate a credit of $6 per kW.
Peak Use Credit occurs when members have a negative peak use demand during all peak use interval hours for the billing period, reflecting capacity supplied to the system. The single hour with the highest (closest to zero) kW during those hours will be used to calculate a credit of $6 per kW.
Net Generation Loss Factor Charge
Any metered generation (represented as “Generation” on the monthly billing statement) is subject to the Net Generation Loss Factor Charge (NGLFC) which recovers the system losses incurred from the flow of energy delivered to the grid and then returned to the member when they need it. This charge is calculated as follows:
Metered Generation X $0.00971
OR
(Metered Generation) X (2 X KEC’s System Loss Factor) X (Energy Charge)
Members participating in the standard Net Meter Rate (R119) will see the NGLFC (if applicable) on their monthly billing statement.
Bill example:
Net Generation Loss Factor 159kWh @ $0.00971/kWh $ 1.54
Members who choose the elective Net Meter Rate (R120) will have their banked energy reduced in April of each year by the amount equal to the net generation losses that would have been billed under rate R119 during the prior 12 months. Members who do not have metered generation during a bill cycle will not incur this charge.
Disclaimer
Should there be any discrepancy between the rate information on this page and rate information defined within the cooperative’s published rate schedules, then the latter will prevail. View our Rates page for a breakdown of all rates and rate schedules.
Frequently Asked Questions
Yes, our rates are structured to offer a one-to-one kWh credit. However, other rate components include monthly charges that must be paid regardless of a member's consumption/generation (such as the Service Availability Charge or Net Generation Loss Factor Charge) or require an annual reduction in banked kWh.
We are sad to see you go! When you move out you cannot take the credits with you to the next home or cash out the value. Instead, any remaining credits after the final bill is paid will be transferred to the next member establishing an account at the location.
Welcome to Kootenai Electric Cooperative! When you transfer the electric service into your name, we will send you an interconnection agreement so you can remain on the net meter rate. If there are any banked kWh left over from the previous member, those kWh will be transferred to your account.
The amount of electricity that you generate, as registered by your generation system’s app or software, most likely won't match up to the generation amount shown on your KEC billing statement. This is because the electricity you generate will first supply the immediate electricity needs of your home or business. If you generate more than you need at a given moment, that excess generation will be sent to our grid and will be displayed on your bill as “Generation.”
Here's an example: If you generated 600 kWh from your solar array and have 300 kWh shown as Generation on your bill, this means 300 kWh was used in real time by your home's consumption.
The Net Generation Loss Factor Charge recovers the cost of system losses resulting from the flow of energy attributable to a member’s metered generation (or excess generation). Such energy is (1) delivered to the grid at the moment produced and then (2) returned to the member at the moment of that member’s future need. KEC incurs system losses on both directions, resulting in the system loss factor being charged twice.
All members participating in the net meter program will be billed on the standard net metered rate schedule (R119). This rate schedule calculates the Net Generation Loss Factor Charge (NGLFC) on a monthly basis and is charged as a line item on the member's billing statement.
KEC also offers an elective net metered rate schedule (R120) where the member's volume of banked energy credits will be reduced in April each year by the amount of energy equal to the net generation losses that would have otherwise been billed for the prior 12 months under the NGLFC rate schedule.
In May of each year members on the R119 rate have the option to enroll in this elective rate provided they meet the following criteria:
- At least nine months of historical metered generation is available for the current member at the current address.
- The amount of banked energy in April of that year was significant enough to cover the NGLF charges that would have been incurred for the previous twelve months.
For more information or to discuss enrollment, please contact our Member Services team.
No. There will still be a monthly service availability charge on your bill for the connection to the electric power grid as well as applicable taxes and fees. For members with onsite generation, the service availability charge pays for the portion of the system that members rely on to act as the “battery” for their generation.
If you generate more electricity than you consumed for the billing month, it is possible not to have a kWh charge on your bill.
For members of our budget billing program, your budget amount will still be due every month regardless of how much power is generated, however, the current actual balance will reflect the net amount.
Typically, no. However, a system designed with a battery backup may provide short-term power to the member’s location during a power outage. For the safety of utility line workers, a member’s generating resource shall have a manually operated knife-blade type disconnect switch that is readily accessible, visible, and lockable in the open position only, in accordance with National Electrical Code (NEC) 690.13(E).
No. We do not buy back power, however, any overgeneration can be carried over to the following month. The over generation will accumulate as “banked” kWh credits and be displayed on the bill. Once depleted, the remaining energy consumption will be billed at the energy rates of the applicable rate schedule. KEC will not issue payment for any banked kWh.
Each month KEC’s meter will measure the amount of electricity transferring through the meter to the power grid. Any member generation in excess of their monthly kWh consumption will accumulate as “banked” kWh credits. During months in which a member’s consumption exceeds the amount generated, available banked kWh credits will be deducted from their account. Once depleted, the remaining energy consumption will be billed at the energy rates of the applicable rate schedule.
If a member closes their account, any banked kWh will reduce the kWh energy charge until credits are depleted, or until the kWh energy charge reaches a zero balance, whichever occurs first. Banked kWh credits cannot be used to reduce any other charges on the member’s bill. Any remaining banked kWh credits will be forfeited and transferred to the next member establishing an account at the location. KEC will not issue payment for any banked kWh.
No. Banked credits cannot be transferred or combined with another service.
For locations in Washington, per state law, banked credits expire March 31 of each year as outlined in the Revised Code of Washington (RCW) 80.60.030.
For locations in Idaho, banked credits will not expire. However, every April the amount of banked energy credits remaining after the April billing statement is calculated will be adjusted to account for the changes in the cooperative's net cost of energy billed under this rate, as compared to the prior year.
Here’s an example:
A location has 100 kWh of "banked" energy remaining after their April billing statement is calculated. The previous energy rate was $0.0844 and the current energy rate is $0.0944 per kWh. Therefore, their "banked" energy must be reduced to account for the increase in the cost of power. The new amount of "banked" energy is 89 kWh.