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Renewable Customer-Generation Successor Tariff or Contract

Establishing a Successor Tariff or Contract Pursuant to AB 327 (Perea, 2013)


On October 7, 2013, Governor Brown signed Assembly Bill (AB) 327 (Perea) directing the Commission to develop a standard tariff or contract for eligible customer-generators with a renewable electrical generation facility no later than December 31, 2015. In developing the standard contract or tariff, the Legislature directed the Commission to do the following:

  • Ensure that customer-sited renewable distributed generation continues to grow sustainably;
  • Include specific alternatives designed for the growth of distributed generation among residential customers in disadvantaged communities;
  • Ensure that the successor tariff is based on the costs and benefits of the renewable electrical generation facility;
  • Ensure that the total benefits of the tariff to all customers and the electrical system are approximately equal to the total costs;
  • Allow distributed generation projects sized to customer load that are greater than 1 MW in size to interconnect under reasonable charges if they do not have significant impact on the distribution grid; and,
  • Establish terms of service and billing rules for eligible customer generators, consistent with all other relevant statutory requirements.

For each large investor-owned utility, the successor tariff is to take effect either on July 1, 2017, or upon reaching the 5% program limit for NEM capacity set forth in the Public Utilities Code Section 2827, whichever is earlier.

Full text of AB 327 (Perea) is available here:

For general questions about NEM or the successor tariff/contract, please contact Ehren Seybert at or (415) 703-5991.


In July 2014, the Commission launched a new proceeding to establish a NEM successor tariff or contract, R.14-07-002.

For documents released in this proceeding, visit the Commission’s Docket Card page. To join this or any other proceeding’s service list, please visit our Service List page.

For more information on how you can participate in this proceeding, please visit the Commission’s Public Advisor page.


Workshop Documents



To help inform the development of a successor contract or tariff, Energy Division has contracted with Energy and Environmental Economics (E3) to develop a Public Tool that will evaluate the costs and benefits of potential successor tariff or contract options. Energy Division staff will host a workshop at the CPUC Auditorium in San Francisco on August 11th, from 10:00am-4:15pm, to present the proposed design and input options for Public Tool. Additional workshop information is provided below.


WebEx (Slide View/Submit Questions)

Phone Attendees (Listen Only)

Click Here for Web Link

Conference Line: (866) 778-0461

Meeting Number: 745 278 111

Participant Code: 3664376

Meeting Password: publictool




Meeting Agenda


Workshop Presentation Slides


Meeting Minutes


April 23, 2014: Discussion of NEM Successor Tariff or Contract Options

On April 23, 2014, Energy Division staff held a public workshop to engage stakeholders in an informal discussion of the development of the NEM successor tariff or contract.

The purpose of the workshop was to outline the expectations and schedule for designing a successor tariff, and to engage stakeholders in an informal discussion of possible Guiding Principles and Program Elements to consider in the design of a new tariff/contract.

Meeting Agenda

Workshop Presentation Slides

Workshop Minutes

As a follow-up to the April 23rd workshop, Energy Division staff gave interested parties the opportunity to file informal comments in response to the revised Guiding Principles and Program Elements. Please refer to the document below for specific questions and more information provided to parties.

Energy Division’s Request for Informal Comments

Fifteen parties provided informal comments by the response deadline. To read any of these comments, please click on the links below: 

Column 1 Column 2 Column 3 Column 4


CA Farm Bureau


Clean Coalition

GRID Alternatives










Vote Solar



Last Modified: 9/5/2014

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