In 1996, Ashland adopted a net metering program that includes simple interconnection guidelines. The program encourages the adoption of renewable-energy systems by committing the city to purchase, at 1.25 times the highest residential rate block, up to 1,000 kilowatt-hours (kWh) of net excess generation (NEG) that remains at the end of the year in December from customers that generate electricity using small wind turbines or small solar-energy systems. Any NEG above 1,000 kWh is paid out at the wholesale rate. Prior to the year-end reconciliation, NEG rolls-over and is credited to the customer's next bill at the retail rate. This program goes beyond the state net metering requirements, as the state net metering law only requires NEG to be purchased at avoided cost or credited as a kilowatt-hour credit to the next month's billing period.