>Self-Generation
The electricity produced serves the facility’s needs first. Any excess electricity is delivered to the power grid without payment. If the facility needs additional electricity, it must be bought from the local power company.
>Self-Generation and Dispersed Power Contract
The electricity produced serves the facility’s needs first. TVA purchases any excess electricity that is delivered to the grid. If the facility needs additional electricity, it must be bought from the local power company.
>Dispersed Power Sell-All Contract
All of the electricity produced and delivered to the power grid is sold to TVA. The facility buys all of its electricity from the local power company. (Two meters—one for electricity purchased by the customer from the local power company, and one for electricity generated by the customer and sold to TVA—are required.)
So no one would ever choose option 3, and no one would choose option 1, unless the installation was so small that the capital cost of the dual-channel meter would never be recovered. If it were truly the customer's choice, this would not be an issue, because the customer should always prefer #2 to #3.
So what does TVA do (if anything) to get customers to pick #3, or force them into it?
Also note that net metering is not an option. #2 uses a dual-channel meter to track outgoing power separately from incoming power. Net metering is not necessarily the optimal metering solution, either, but TVA doesn't even offer it.
There are 3 options:
>Self-Generation The electricity produced serves the facility’s needs first. Any excess electricity is delivered to the power grid without payment. If the facility needs additional electricity, it must be bought from the local power company.
>Self-Generation and Dispersed Power Contract The electricity produced serves the facility’s needs first. TVA purchases any excess electricity that is delivered to the grid. If the facility needs additional electricity, it must be bought from the local power company.
>Dispersed Power Sell-All Contract All of the electricity produced and delivered to the power grid is sold to TVA. The facility buys all of its electricity from the local power company. (Two meters—one for electricity purchased by the customer from the local power company, and one for electricity generated by the customer and sold to TVA—are required.)