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California Net Energy Metering (NEM) Ratepayer Impacts Evaluation

The CPUC 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, to evaluate “who benefits, and who bears the economic burden, if any, of the net energy metering program.”


In October 2012, Energy Division hosted a well-attended workshop where E3 consultants previewed the methodology and scope of the cost-benefit analysis, avoided public purpose charges, and income distribution sections of the report.  Informal comments on the scope of work were solicited from interested parties on November 5, 2012, and reply comments were received on November 15, 2012.  E3 provided responses to comments in the December study scope of work.  The workshop presentation materials, stakeholder comments, and scope of work can be viewed here.


In September 2013, Energy Division released the draft NEM report conducted by E3 and solicited informal comments from interested parties on ‘calculation errors’ contained in the draft report. Comments were received by eight parties on October 10, 2013.  Based on these comments, E3 made several modifications to the analysis, clarified several issues in the final report, and responded under separate cover to all of the substantive comments. Materials pertaining to the draft report can be viewed here.


Final NEM Study - October 28, 2013

NEM Study


NEM Study with Appendices


The E3 NEM Summary Public Model, Bill Calculator, and Avoided Cost Model, constructed by E3 to inform the various analyses included in the NEM study, are available for download.


Last Modified: 11/15/2013

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