DERBY, Vt. (AP) — Utilities regulators in Vermont have denied an application to build a small solar project in Derby.

The Vermont Public Utilities Commission cited constraints on the regions electrical grid and the impact on existing project as reason for the denial. The Caledonian-Record reports Derby GLC Solar developers wanted to erect a 500-kilowatt net-metered solar system in a sand-and-gravel pit on Route 5 in Derby.

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The three-member commission made the relatively small solar project a test case for adding more renewable energy projects in this area. The PUC did not say what the decision means for other renewable energy project applicants in the area.

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Information from: The Caledonian-Record, http://www.caledonianrecord.com