Net Metering Policy

The purpose of this Net Metering Policy is to govern the billing or credit to customers with renewable generation interconnected to the Owensboro Municipal Utilities (“OMU”) system.

“Distributed Generation System” or “DG System” shall mean renewable distribution generation facilities and associated equipment for non-utility generation or co-generation for interconnection to and parallel operation with the OMU System.

“Net Metering” means the difference between the amount of electricity sold by OMU to the customer and the amount of excess energy produced by the renewable generation system of the customer and supplied to the OMU system through the interconnection over a specified billing period.

“Renewable generation” is the generation of electricity that is produced from natural resources, including the sun, wind, and water.

This Policy applies to all areas served by OMU where the OMU electric system is capable of accommodating interconnection with a customer’s renewable generation in accordance with OMU policy and the applicable terms and conditions for electric service.

Requirements for Net Metering

  1. The generating facility must be owned and operated by the customer and located on the customer’s  premise for the purpose of supplying all or some of the customer’s electrical needs.
  2. The generating facility must have a capacity of no more than 100 kW.
  3. The generating facility must be designed and installed to operate in parallel with the OMU electrical distribution system without adversely affecting the quality of service to other customers and without presenting a safety risk to OMU customers or employees. Required voltage and current quality and characteristics are specified in the OMU Distribution Interconnection Policy and OMU’s Regulations and Rates for Electric Service.
  4. The generating facility must have been approved by OMU and Customer must have accepted and agreed to the terms and conditions of the OMU Distribution Interconnection Policy.

The service will be metered by OMU in one of two ways, at OMU’s option. Option A: Net metering will be achieved by the use of two meters: 1) a power used (revenue) meter and 2) a power generated meter. The proposed Distributed Generation  System must include an OMU approved meter base for the placement  of an OMU meter to record the power generated by customer.  The power generated meter  base shall be in a direct series path with the DG System disconnect switch and be in close proximity and on the same exterior wall as the existing OMU meter. Option B: Alternatively, net metering will be done by use of a standard kilowatt-hour metering system capable of measuring the flow of electricity in both directions. Customer will not be charged for any OMU metering costs, except those applicable to all customers in the same rate classification.

OMU may place reasonable limits on the amount of renewable generation that may be interconnected to the OMU system. Net metering will be available to customers on a first-come, first-served basis up to a cumulative capacity of one (1) percent of the OMU system’s single hour peak load. Interested customers must make formal application, pursuant to the OMU Distribution  Interconnection Policy which is available on OMU’s website   OMU’s Engineering department  will review the application and will approve or deny it based on the results of a system impact study and an assessment of any safety risks. OMU may require the modification of a system proposed by customer and any required service or system upgrades in accordance with the OMU Distribution Interconnection Policy. All costs associated with the required upgrades will be the sole responsibility of the customer. The customer-owned generation interconnection may not be placed in service until this process is completed  and OMU’s approval has been obtained.

Except as provided herein, service under this policy is subject to National Electric Code, applicable National Electric Safety Code Standards, any applicable ordinances, and OMU Rules and Regulations.


The billing for a net metering customer shall be at the applicable rate for the amount of the difference between the electricity delivered by OMU to the customer and the amount of the electricity generated by the customer and supplied to OMU through the interconnection. If the amount of electricity delivered by OMU to customer exceeds the amount supplied by the customer, the customer will be billed for the difference. If the amount of electricity supplied by the customer exceeds the amount delivered by OMU to the customer, the customer will receive a credit for that amount of energy based on the per kWh cost OMU incurs for energy that is reported in FERC 501. The credit generated will be applied to subsequent billing periods. If the customer’s electric service is discontinued for any reason, any remaining credits of customer, after any available credits are applied to customer’s final billing, shall not be transferable or redeemable by customer and shall be forfeited.