COM/MP1/tcg Date of Issuance 2/15/2008
Decision 08-02-002 February 14, 2008
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking Regarding Policies, Procedures and Rules for California Solar Initiative, the Self-Generation Incentive Program and Other Distributed Generation Issues. |
Rulemaking 06-03-004 (Filed March 2, 2006) |
ORDER ADDRESSING COMMUNITY CHOICE
AGGREGATION NET ENERGY METERING SERVICE OPTION
This decision directs the electric utilities to modify their tariffs in order to provide Net Energy Metering (NEM)1 services to Community Choice Aggregators (CCA) customer-generators.2 We direct the electric utilities to allow CCA customer-generators with solar generators up to 1 megawatt (MW) and wind generators up to 50 kilowatts (kW) to receive generation credits from the CCA and transmission and distribution credits from the serving utility. In accordance with Pub. Util. Code § 2827, biogas and fuel cell generators up to 1 MW, and wind generators with a capacity of more than 50 kW up to 1 MW, will receive a generation credit only, from the CCA.
Background
NEM is a service currently offered to utility customers that have installed solar, wind power, biogas and fuel cell generation systems of up to 1 MW. These "customer-generators" receive credit for the electricity produced by their respective distributed generation systems net of the electricity consumed by these same customers.3 For solar generators up to 1 MW and wind generators up to 50 kW, the credit provided by the utility for customer-generators equals the bundled retail price of power.3 "Bundled" service includes transmission, distribution and all other energy-related charges of the customer-generator's otherwise applicable schedule. Biogas and fuel cell generators receive only the generation component of the rate as a credit, up to 1 MW.
CCAs are agencies of local governments that are authorized, pursuant to Assembly Bill (AB) 117,4 to aggregate electrical loads in their jurisdictions and sell power to local customers who would otherwise have been served by the utility. CCA customers continue to pay their bills through the utility-provided billing service, but the utility passes through to the CCA the customer's payment for the generation portion of the bill. The utility continues to provide CCA customers with transmission, distribution, and metering services.
In concept, CCA customers should have equal access to NEM services. Decision (D.) 05-12-041 stated our intent to investigate how the utilities should provide NEM service to eligible customer-generators issues:
Net metering effectively requires the utility to pay the customer the utility's full retail price for power that is produced by the customer but sent into the utility grid. Currently, we permit net metering for certain renewable projects. We have recently addressed this issue in R.04-03-017 [now R.06-03-004], where we are developing policies for distributed generation in general and our Self-Generation Incentive Program (SGIP) in particular. We believe that proceeding is the appropriate venue for deciding issues relating to renewable project net metering and decline to make any decision here about whether CCAs and their customers would qualify for net metering. In that regard we would consider whether it is appropriate for utility bundled customers to pay for the high cost of net metered power produced by CCA customers.
Subsequently, Commission Resolution 4013-E adopted the utilities' CCA tariffs but did not resolve issues concerning NEM service to CCA customers. Resolution 4013-E stated:
Service under rate schedule NEM shall not be permitted in combination with CCA service until such time as the Commission establishes the terms and conditions applicable to CCA and its customers participating in Net Energy Metering service.
On August 30, 2007, the assigned Administrative Law Judge (ALJ) in this proceeding issued a ruling proposing a way to offer NEM services to CCA customers. The following parties filed comments on that proposal: Southern California Edison Company (SCE), Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), San Joaquin Valley Power Authority (SJVPA), Local Government Sustainable Energy Coalition (LGSEC), and, jointly, Solar Alliance, Vote Solar Initiative, and the California Solar Energy Industries Association (Solar Parties).
We herein adopt terms and conditions for CCA Net Energy Metering service.
1 Pub. Util. Code § 2827(b)(3) defines NEM as "measuring the difference between the electricity supplied through the electric grid and the electricity generated by an eligible customer-generator and fed back to the electric grid over a 12-month period as described in subdivision (h)..."
2 Pub. Util. Code § 2827(b)(2) defines an eligible customer generator as a " residential, small commercial customer as defined in subdivision (h) of Section 331, commercial, industrial, or agricultural customer of an electric service provider, who uses a solar or a wind turbine electrical generating facility, or a hybrid system of both, with a capacity of not more than one megawatt that is located on the customer's owned, leased, or rented premises, is interconnected and operates in parallel with the electric grid, and is intended primarily to offset part or all of the customer's own electrical requirements."
3 The calculation of the difference between the customer's electric production and the customer's electric usage is conducted on a monthly basis and is typically reconciled in an annual true-up process to ensure that the customer-generator is credited up to the amount of energy charges accumulated over the relevant period.
3 Wind energy generators with a capacity of more than 50 kW, but less than 1 MW, do not receive a bundled credit (which includes T&D), only the generation credit.
4 Chapter 838, Statutes of 2002.
