Interconnection and Net Metering Process Regulations
Utility net metering and interconnection processes vary by ownership type and how the state Public Utility Commission regulates that ownership type. Utilities can be classified as investor owned, municipal, cooperative, and in some states alternative retail electric suppliers. Investor-owned utilities are privately owned and responsible to its shareholders. They serve approximately 75% of customers in the United States and are subject to state regulation.
Municipal utilities are owned by a unit of government and are operated under the control of a publicly elected body, while cooperatives are private non-profit utilities legally established to be owned by and operated for the benefit of those using its service. Profits from cooperative utilities are used for utility operation or are returned to the customer rate base. Finally, alternative retail electric suppliers do not generate electricity themselves but operate as businesses that buy and sell electricity in a competitive market. State-by-state treatment of different utility models can be found in the table below.