Net Energy Metering (NEM) Cost-Benefit Study

The CPUC has contracted with Energy and Environmental Economics (E3) to provide an evaluation of the costs and benefits of the Net Energy Metering (NEM) program. This study fulfills the requirements of Assembly Bill 2514 (Bradford, 2012) and Commission Decision (D.) 12-05-036, which requires a study on the costs and benefits of NEM by October 1, 2013. The NEM study will be completed in two phases:

Phase 1: Net energy metering ratepayer impact.  Following the DG cost-benefit methodology adopted in D. 09-08-026, the first phase of this project will be to calculate the ratepayer impacts and cost of service for all participating NEM technologies (solar, wind, fuel cell, microturbine, etc.) using the best available data and information. The analysis will be performed at two penetration levels: The capacity needed to reach the solar photovoltaic goals of CSI and the net metering cap as defined by D. 12-05-036. Phase 1 of the study is scheduled to be completed in the first quarter of 2013.

Phase 2: White paper on NEM alternatives (pending available resources).  In a separate white paper, the second phase of the study will be to compare alternatives to NEM using a framework that highlights the balance between the financial proposition for customers to install renewable DG and the overall impact to ratepayers.  Phase 2 of the study is scheduled to be completed in the second quarter of 2013.

Public Workshop – October 22, 2012

The purpose of this workshop is to discuss the proposed methodology and draft scope of work for Phase 1 of the NEM study.

• NEM Study Workshop Agenda
• Energy Division NEM Study Workshop Introduction
• NEM Approach Stakeholder Workshop

Comments on NEM Phase 1 Methodology

Energy Division invited interested parties to submit informal comments on the proposed methodology for Phase 1 of the NEM study on November 5, 2012. Opening comments are available here:

Comments on the NEM Phase 1 Methodology

Reply comments on the Phase 1 Methodology were due November 15, 2012, and are available here:

Reply Comments on NEM Phase 1 Methodology

Due to the study schedule and budget, the final scope of work will consider all comments received, but will only provide written responses to the opening comments which were due on November 5th; the final scope of work will not provide responses to reply comments.  

NEM Cost-Benefit Study Scope of Work