Net Billing Tariff

On December 15, 2022, the CPUC adopted D.22-12-056, establishing the Net Billing tariff (NBT) as a successor to NEM2. This webpage provides information about the proceeding leading up to the NBT decision.

The NBT will apply to customers who submit an interconnection application on or after April 15, 2023. Please see the NEM revisit proceeding overview webpage for links to relevant background information and documents.

Proceeding Schedule

A schedule was adopted in the proceeding’s scoping memo on November 19, 2020. The schedule was modified in an April 8, 2021 ruling, in the evidentiary hearing on August 3, 2021, and in a December 17, 2021 ruling. Scroll down to the “2021 Proposed Decision” section and below for information on later extensions to the proceeding schedule.

NEM2 Evaluation

The NEM2 Evaluation (or "Lookback Study") by Verdant Associates was released in January 2021. More information can be found here.

E3 White Paper

The CPUC commissioned Energy and Environmental Economics, Inc. (E3) to author a white paper on potential successors to the NEM2 tariff. The white paper was released on January 28, 2021, and can be downloaded here. E3 presented its analysis in a workshop on February 8, 2021. Slides used during the workshop are available here.

The white paper represents E3's perspective on a framework that can meet the statutory requirements for the NEM program. It was entered into the record of R.20-08-020 and parties to the proceeding were instructed to discuss it in their proposals for a successor to NEM.

Party Proposals

Parties to this proceeding submitted proposals for the successor to the current NEM tariff on March 15, 2021. The proposals are available in the Documents tab of the R.20-08-020 docket. An online workshop was held on March 23-24, 2021, to allow parties to present their proposals, and other parties and stakeholders to ask questions. Recordings of the workshop are available here: Day 1 | Day 2. Due to a technical error, the recording for Day 1 omits a portion of the workshop; at 2:31.42, the recording skips from the Natural Resources Defense Council's time to the joint investor-owned utilities' time.

A second online workshop was held on April 22, 2021, to present E3's plans to provide basic cost-effectiveness modeling of some of the party proposals. Slides used during the workshop are available here. On May 28, 2021, CPUC Energy Division released E3’s results. On June 15, 2021, Energy Division replied to questions about the results that were submitted by parties and made minor modifications to the model. The report, results, and models can be downloaded here.

Testimony

Opening and rebuttal testimony was submitted to this proceeding's service list on June 18 and July 16, 2021, respectively. Most of the testimony can be found at the CPUC's E-File Documents Search Form by selecting "Supporting Documents" in the Document Type dropdown menu and typing "2008020" in the Proceeding Number field.

Evidentiary Hearing

The evidentiary hearing in this proceeding took place from July 26 through August 10, 2021. Transcripts of the hearing can be found at the CPUC's E-File Documents Search Form by selecting "Transcript" in the Document Type dropdown menu and typing "2008020" in the Proceeding Number field.

Briefs

Opening and reply briefs were submitted on August 31 and September 14, 2021, respectively. The briefs are available in the Documents tab of the R.20-08-020 docket.

2021 Proposed Decision

A proposed decision was published on December 13, 2021 along with a press release, fact sheet, and the Excel model used for the proposed decision. The model was updated on December 23, 2021 to fix a formatting bug.

Opening and reply comments on the proposed decision were submitted on January 7 and January 14, 2022, respectively. The comments are available in the Documents tab of the R.20-08-020 docket.

A procedural email containing the following excerpt was sent to the R.20-08-020 service list on February 3, 2022:

The proposed decision, which was issued on December 13, 2021, will not appear on the Commission's voting meeting agenda until further notice. 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.

The proposed decision was withdrawn via a ruling on November 10, 2022.

2022 Rulings and Statutory Deadline Extension

A ruling was issued on May 9, 2022 along with a Fact Sheet and Frequently Asked Questions to assist with understanding. A second ruling addressing details about party comments was issued on June 2, 2022. Parties' opening and reply comments are available in the Documents tab of the R.20-08-020 docket.

On August 25, 2022, the Commission adopted D.22-08-044, extending the statutory deadline in this proceeding to August 27, 2023.

2022 Decision

A proposed decision was published on November 10, 2022 along with a press release, fact sheet, analysis, and Q&A document. These documents are also available in Spanish (en español: Comunicado de Prensa, Folleto Informativo, y Preguntas Frecuentes).  A ruling noticing oral arguments was issued on November 4, 2022 and the oral argument hearing was held on November 16, 2022. Parties to the proceeding submitted opening and reply comments on the proposed decision on November 30 and December 5, 2022, respectively. The comments are available in the Documents tab of the R.20-08-020 docket.

A revised proposed decision incorporating party comments was published on December 14, 2022 along with updated analysis. On December 15, 2022, the CPUC adopted the revised proposed decision, which was issued as D.22-12-056.

2023 Resolution

On November 30, 2023, Resolution E-5301 established the Net Billing tariff with minor modifications.

Contact Us

If you have any questions about information on this webpage, please contact the CPUC Energy Division at energy@cpuc.ca.gov