Net Energy Metering Proposed Changes

Net Energy Metering Proposed Changes

Proposed Changes to Net Energy Metering

RCEA recently provided a presentation to our Community Advisory Committee about the California Public Utilities Commission’s Net Energy Metering Successor Tariff and the Proposed Decision. You can view the slides here.

The RCEA Board of Directors will be discussing this at our January 27 Board meeting, and we encourage the public to attend to learn more, express their views, and hear our Board’s comments. 

Update:

On February 3rd, the judge presiding over the Net Energy Metering proceeding issued the following statement:

“On January 11, 2022, the Commission reassigned Rulemaking 20-08-020 to President Alice Reynolds.  The assigned Commissioner has requested additional time to analyze the record and consider revisions to the proposed decision based on party comments. Furthermore, the assigned Commissioner wants to ensure all five Commissioners participate in oral arguments.  Accordingly, the oral argument hearing will be rescheduled at a later date.   After additional analysis is conducted, I will issue a subsequent ruling providing information on the proceeding schedule and details regarding the oral argument hearing.”


In August 2020, the California Public Utilities Commission (CPUC) initiated a proceeding to develop a successor NEM tariff (a.k.a. “NEM 3.0”) pursuant to the requirements of Assembly Bill 327 passed in 2013.

On December 13th 2021, the CPUC issued a Proposed Decision explaining what the new tariff provisions would be. The Commission is expected to vote on this Proposed Decision on January 27th. If this Proposed Decision passes as written, the current NEM 2.0 tariff will sunset in late May 2022 (an estimated date of May 27th).

While the sunset could change if the Proposed Decision is revised prior to the CPUC’s vote, the current guidance for customers interested in installing rooftop solar is to submit their interconnection applications as soon as possible if they wish to enroll in the current tariff. If the interconnection application is submitted prior to the sunset date, the customer can stay on the NEM 2.0 tariff for 15 years from their interconnection date.

For more information on the successor tariff, please read the customer explanation that the CPUC developed here.

To subscribe for updates and to submit comments on the successor tariff to the CPUC, please click here.

In February 2021, the Legislature introduced Assembly Bill 1139, which sought to expedite the current CPUC proceeding. Furthermore, if the accelerated timeline for the CPUC to establish a new NEM tariff was not met, the bill required specific provisions for the replacement tariff including additional interconnection fees, monthly fixed charges, NEM credits based on wholesale instead of retail rates, and a series of other provisions not favored by supporters of the current NEM 2.0 framework.

RCEA’s Board voted to oppose the legislation at its May 2021 Board meeting, deciding that the bill would harm current NEM customers and disincentivize new enrollment in the NEM program.

As of June 2021, this bill was not voted out of committee and is no longer active.

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