2. Background

On April 11, 2001, Governor Davis signed Assembly Bill (AB) X1 29 that, among other things, revised Pub. Util. Code § 2827 to increase the allowable size of net-metered photovoltaic (PV) solar generators from 10 kilowatts (kW) to 1 megawatt (or 1,000 kW). ABX1 29 was enacted as an emergency measure and became effective upon signing by the governor.

On April 16, 2001, complainant submitted an application to PG&E for interconnection of a 31-kW PV generation system. On August 14, 2001, complainant filed this complaint alleging that PG&E had unlawfully denied complainant net-metering services as required by § 2827, and seeking injunctive relief and reparations. On August 29, 2001, PG&E filed its answer to the complaint alleging that further study of complainant's solar system was required to be certain that a connection to the system would not create a hazard.

A prehearing conference (PHC) was conducted on August 31, 2001, at which time the parties were directed to explore settlement and report back at a second PHC on September 7, 2001. At the September 7 PHC, the parties reported that they had entered into an interim agreement under which complainant's PV system was permitted to operate in parallel with PG&E's distribution system at an output level no greater than 10 kW while further study of higher generation levels took place.