CCA Net Energy Metering

In general, CCAs and their customer-generators may be treated in two ways for purposes of NEM services. One would be for the utility to treat CCA customer-generators the way it treats its own customer-generators, that is, by providing a credit for power equal to the "bundled" retail rate. The other would be for the utility to treat CCA customer-generators the way the utilities treat direct access customers served by competitive electric service providers, that is, not credit the customer-generator for power, only for transmission and distribution (T&D).

D.05-12-041 and Resolution E-4013, issued in R.03-10-003, stated the Commission's intent to solicit the parties' comments on related issues. The ALJ's ruling proposed future NEM policy for CCA customer-generators with solar, biogas, and fuel cell generators up to 1 MW, and wind generators up to 50 kW:

_ CCAs will provide the eligible CCA customer-generator with the generation-related bill credit based on the CCA generation rate. The CCA will inform the utility of the generation rate for the credit, and the utility will pass the credit on to the customer-generator. The CCA will be responsible for creating the applicable generation-related bill credit structure associated with this service option.

_ The utility will provide an eligible CCA customer-generator with T&D and other energy-related bill credits.

_ Any net balance related to generation charges that are collected from an eligible CCA customer-generator will be paid by the utility to the CCA as set forth in Rule 23 Q, which describes the payment and collection terms between the serving utility and a CCA customer.

Parties' Comments

Several parties commented on various aspects of the proposal. Several parties clarify that, currently, the only generation technologies that qualify for a "bundled" credit are solar and wind. Fuel cell and biogas projects receive only a credit for generation, up to 1 MW.

As to whether CCA customer generators should qualify for NEM service, the utilities are divided. SCE supports treating CCA customer-generators as it treats its own customer-generators. SDG&E and PG&E propose to treat CCA customer-generators like direct access customer-generators and not provide any credit for power. In general, all parties comment that no new metering would be required, although the utilities believe they should have the opportunity to recover increased billing costs. SJVPA and LGSEC observe that CCA customers pay their share of all utility billing costs when they pay for transmission and distribution. SCE believes the Commission should be able to verify that the CCA

has passed on the utility credit to the customer-generator. LGSEC responds that such regulation would be contrary to the Commission's CCA orders and its interpretation of AB 117.

The Solar Parties and PG&E advocated in favor of CCA customers retaining "renewable energy credits" (RECs) for their qualifying generation projects.

Discussion

We herein direct the utilities to offer CCA customer-generators the same NEM service it offers its own customers, with the utility providing the transmission and distribution credit to eligible CCA NEM customers and the CCA offering the generation credit to eligible CCA NEM customers.

Our reasoning is simple. The Commission has stated its support of renewable generation technologies and distributed generation generally. We have aggressively pursued policies in favor of those generation resources. We have stated our support for the development of CCAs, consistent with our interpretation of AB 117, and therefore reject differential treatment of CCA customer-generators and utility customer-generators.

We clarify here that CCAs already pay a share of billing costs in their transmission and distribution rates. If the costs of billing increase as a result of this order, those costs should be very small in the near term because few CCAs are expected to begin serving their customers soon and, accordingly, CCA customer-generators are likely to be few. Under the circumstances, the appropriate place for the utilities to identify and seek recovery of billing costs is the general rate case, consistent with D.04-12-046.

We agree with LGSEC that the Commission should not, as SCE proposes, verify that the CCA has passed along the credit to the customer-generator. D.05-12-041 found that the Commission has limited jurisdiction over CCA program implementation and does not have general regulatory oversight of CCAs. (See D.05-12-041, Conclusions of Law 1 and 2.) We presume the CCA would pass along the credit in order to retain the customer-generator rather than risk losing it to the utility.

With regard to REC ownership issues raised by the Solar Parties and PG&E, we concluded in D.07-01-018 that all renewable DG system owners should retain the RECs produced by their facilities irrespective of whether or not they receive ratepayer funding from programs such a CSI (California Solar Initiative), SGIP (Self-Generation Incentive Program), or net metering. (D.07-01-018, Conclusion of Law 3.) In accordance with D. 07-01-018 and the Commission's intent of treating CCA customer-generators similarly to utility customer-generators, owners of net energy metering systems who take part in the CCA program shall retain the RECs produced by their facilities.

This order therefore directs the utilities to modify their tariffs to treat CCA customer-generators as they treat their own customer-generators for purposes of NEM service. CCA customer-generators with solar generators up to 1 MW, and wind generators up to 50 kW, will be eligible for a bundled credit up to the amount of electricity consumed by the customer-generator over the course of one year.⁵ The CCA, in such cases, will inform the utility of the applicable generation credit, or net charge and the utility will pass the credit or charge on to the customer-generator. The utility will provide a credit or net charge for the bundled transmission and distribution services it provides to the CCA customer-generators, as set forth in the applicable NEM schedule. CCA customer-generators using biogas or fuel cell technologies up to 1 MW, or wind technologies sized from 50 kW to 1 MW will receive a generation credit only -- from the CCA -- which is consistent with the utilities' treatment of their own customer-generators. The CCA NEM credits and provider thereof are summarized in the table below

CCA NEM Generator	Transmission & Distribution Credit	Generation Credit
Solar up to 1 MW	Utility Provided	CCA
Wind up to 50 kW	Utility Provided	CCA
Wind 50 kW - 1MW	Not Provided	CCA
Biogas up to 1 MW	Not Provided	CCA
Fuel Cell up to 1 MW	Not Provided	CCA

⁵ See Pub. Util. Code § 2827(h)(3).