Grain elevator near Bismarck connected 750kW solar array to local electric cooperative. After interconnection, monthly demand charges jumped from $8,500 to $25,000. Co-op claims solar creates "system instability" requiring higher standby charges. Rate schedule wasn't changed, just the interpretation. This seems excessive - any thoughts?
Montana co-op solar interconnection - demand charges tripled
Tim - that's a huge increase. Rural co-ops aren't regulated like investor-owned utilities. Check your cooperative's bylaws and any interconnection agreement. You might need to go through their internal dispute process first.
Franklin's right about co-ops having different rules. But tripling demand charges seems punitive. Montana does have a state renewable energy standard that should protect distributed generation. Consider contacting Montana Public Service Commission even though they don't regulate co-ops directly.
Electric cooperatives can be challenging for solar interconnection disputes since they're member-owned and less regulated. However, unreasonable rate discrimination may violate federal Rural Utilities Service guidelines if the co-op has RUS financing. Document the cost impact and consider engaging a cooperative law attorney if internal remedies fail.