Public Utility Facts
Transmission lines
The Electric Power Research Institute has gone so far as to suggest that in some cases it may make more economic sense to remove under-used transmission lines in the United States and serve the loads with hybrid stand-alone power systems rather than continuing line maintenance. More information on the economics of small wind systems can be found in the U.S. Department of Energy’s Consumer Guide to Renewable Energy for Your Home or Energy and the Iowa Energy Center’s Wind Energy Manual. See AWEA’s online Small Wind Toolbox7 for descriptions and links to numerous financial incentives including:
- Investment Tax Credits
- Investment Incentives (grants/rebates)
- Revolving Loan Funds
- Sales Tax Reductions
- Property Tax Reductions
Source: American Wind Energy Association (AWEA)
.
Net Metering
Net metering enables customers to use their own generation to offset their consumption over a billing period by allowing their electric meters to turn backwards when they generate electricity in excess of the their demand. This offset means that customers receive retail prices for the excess electricity they generate. Without net metering, a second meter is usually installed to measure the electricity that flows back to the provider, with the provider purchasing the power at a rate much lower than the retail rate.
Currently, net metering is offered in more than 35 states.
Source: American Wind Energy Association (AWEA)
.
The Power Grid
Electric power is generated at power plants and then moved to substations by transmission lines — large, high-voltage power lines. In the United States, the network of nearly 160,000 miles of high voltage transmission lines is known as the “grid.”
Source: US Energy Information Administration
.
Most of the existing grid was built during a highly structured, highly regulated era designed to ensure that everyone in the United States had reasonable access to electricity service. Utility customers, through fees authorized and regulated by State regulatory commissions, generally paid for developing and maintaining the grid… Learn more
.
The cost to generate electricity actually varies minute-by-minute.
Throughout a single day, the wholesale price of electricity on the electric power grid1 reflects the real-time demand for electricity. Demand is usually highest in the afternoon and early evening when usage is at a peak (so called “on-peak” hours) which means prices are higher at these times.
However, most consumers pay rates based on the seasonal average price of electricity so they do not experience these price fluctuations.
Source: US Energy Information Administration
.