NEM Revisit Proceeding (R.20-08-020)

This proceeding revisits California's net energy metering (NEM) program, which is described on the NEM overview webpage, the Rulemaking R.14-07-002 webpage, and the NEM 2.0 evaluation webpage. The proceeding was initiated because the Commission committed in Decision (D.) 16-01-044 to later review the NEM successor (or NEM 2.0) tariff, citing interactive, yet unresolved, policy movements within the Commission, but outside the scope of R.14-07-002.

Visit this webpage to view documents in the R.20-08-020 proceeding.

Proceeding Foundations

The major focus of this proceeding is the development of a successor to existing NEM 2.0 tariffs pursuant to the requirements of California Assembly Bill (AB) 327 (2013, Perea). The proceeding's scope also includes the review and potential modification of all NEM tariff schedules, and issues related to consumer protection.

• An Order Instituting Rulemaking to revisit the existing NEM tariffs was adopted in August 2020.
• A Scoping Memo listing the issues to be determined in this proceeding was issued in November 2020.
• A decision (D.21-02-007) listing guiding principles for the proceeding was adopted in February 2021.

AB 2143 (2022, Carrillo) added two new sections to the Public Utilities Code (769.2 and 913.13).  Public Utilities Code Section 769.2 requires contractors to pay prevailing wages for workers and apprentices of certain eligible renewable generation facilities wishing to utilize NEM or net billing tariffs.

• An Amended Scoping Memo added implementation of AB 2143 to the proceeding's scope in March 2023.

Proceeding Outcomes

The CPUC disposed of some of the issues in the original scoping memo by adopting D.22-12-056 in December 2022.  This decision does not affect customers who submitted a NEM interconnection application by April 14, 2023.  It established the net billing tariff (NBT) as a successor to NEM 2.0 for customers who submit an interconnection application on or after April 15, 2023.  The NBT is expected to promote grid reliability, incentivize solar and battery storage, and control electricity costs for utility customers.  Please see the NBT decision webpage for information about the steps in the proceeding leading to the decision.

There are remaining issues in this proceeding from the original and amended scoping memos, described below.

Current Proceeding Events

A ruling was issued on February 1, 2023 to notice a workshop and invite responses to questions about consumer protections and the planned evaluation of the net billing tariff.

An online workshop was held on February 8, 2023 to obtain information on the current VNEM tariff and NEMA subtariff and to discuss how to synchronize them with related statutes and California climate policies and objectives.
(workshop slides | workshop recording).

A ruling was issued on February 28, 2023 to invite responses to questions about virtual NEM, NEM aggregation, and fuel cell resources. 

A ruling was issued on April 3, 2023 to invite responses to questions about the implementation of Public Utilities Code Section 769.2 per AB 2143.

A proposed decision and fact sheet, were issued August 2, 2023 regarding the virtual NEM tariff, the NEM aggregation subtariff, protections for NEM and net billing tariff customers, the future NBT evaluation, the NEM fuel cell tariff, and implementation of Public Utilities Code Section 769.2.  Parties to the proceeding submitted opening and reply comments on the proposed decision on August 22 and August 28, respectively.  The proposed decision will be on the CPUC's November 16 Voting Meeting agenda.  The proposed decision's adder for the virtual net billing tariff (VNBT) is based on analysis published with D.22-12-056, available on the NBT decision webpage.  For quick reference, see Energy Division staff's VNBT analysis.

Nov. 13, 2023: Second Revision to Proposed Decision issued. Read our updated fact sheet.

Nov. 16, 2023: CPUC Modernizes Multi-Tenant and Multi-Property Solar and Storage Tariffs and Strengthens Solar Consumer Protections

How to Participate in this Proceeding

Visit the CPUC's brochures webpage to find information on what happens in a proceeding, informal and formal participation, making public comments, participation at hearings and workshops, the CPUC's Intervenor Compensation Program, and ex parte communications with CPUC decisionmakers.

If you want to be notified of events in R.20-08-020, sign up for the proceeding's service list here.

Contact Us

If you have any questions about information on this webpage, please contact the CPUC Energy Division at energy@cpuc.ca.gov.  For press inquiries, please contact the CPUC News and Outreach Office.