At present, economic and institutional concerns dictate that decentralized solar technologies generally require an auxiliary energy source to assure continuous service through periods of adverse weather. Utility rates and service policies regarding auxiliary energy service have a significant impact upon solar system economics, and thus the commercialization of solar energy. The scope of this paper evaluates three basic issues:(1) whether a utility can refuse to provide auxiliary service to solar users, (2) whether a utility can charge higher or lower than traditional rates for auxiliary service, and (3) whether a utility can refuse to purchase excess power generated by small power producers utilizing electricity-producing solar technologies.nRate and service policies of investor-owned utilities are subject to regulation by constitutionally or statutorily created state agencies generally called Public Utilities Commissions (PUCs). Most states have public utility laws governing PUC jurisdiction and the extent of rate and service regulation.
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