Net Energy Metering Revisit - Rulemaking (R.) 20-08-020
On November 10, 2022, CPUC Administrative Law Judge Kelly Hymes published a new proposed decision. The CPUC provided a press release, fact sheet, analysis, and Q&A document about the Proposed Decision.
The Commission committed in Decision (D.) 16-01-044 to later review the NEM successor (or NEM2) tariff, citing interactive, yet unresolved, policy movements within the Commission, but outside the scope of R.14-07-002. Accordingly, the Commission adopted an Order Instituting Rulemaking on August 27, 2020 to revisit the existing NEM tariffs.
The major focus of this proceeding will be on the development of a successor to existing NEM2 tariffs pursuant to the requirements of California Assembly Bill 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.
Visit this webpage to view documents in the R.20-08-020 proceeding.
Issues in Scope
As described in the Scoping Memo, the issues to be determined in this proceeding are:
1. What guiding principles (including those related to Assembly Bill 327 (2013, Perea), equity, environmental goals, and social justice) should the Commission adopt to assist in the development and evaluation of a successor to the current net energy metering tariff?
2. What information from the Net Energy Metering 2.0 Lookback Study should inform the successor and how should the Commission apply those findings in its consideration?
3. What method should the Commission use to analyze the program elements identified in Issue 4 and the resulting proposals, while ensuring the proposals comply with the guiding principles?
4. What program elements or specific features should the Commission include in a successor to the current net energy metering tariff?
5. Which of the analyzed proposals should the Commission adopt as a successor to the current net energy metering tariff and why? What should the timeline be for implementation?
6. Other issues that may arise related to current net energy metering tariffs and subtariffs, which include but are not limited to the virtual net energy metering tariffs, net energy metering aggregation tariff, the Renewable Energy Self-Generation Bill Credit Transfer program, and the net energy metering fuel cell tariff.
7. What additional or enhanced consumer protections for customers taking service under net energy metering and/or the successor to the current net energy metering tariff should be adopted by the Commission?
These guiding principles, adopted in D.21-02-007, will assist the Commission in the development and evaluation of proposals for a successor to the current NEM tariff.
(a) A successor to the net energy metering tariff should comply with the statutory requirements of Public Utilities Code Section 2827.1;
(b) A successor to the net energy metering tariff should ensure equity among customers;
(c) A successor to the net energy metering tariff should enhance consumer protection measures for customer-generators providing net energy metering services;
(d) A successor to the net energy metering tariff should fairly consider all technologies that meet the definition of renewable electrical generation facility in Public Utilities Code Section 2827.1;
(e) A successor to the net energy metering tariff should be coordinated with the Commission and California's energy policies, including but not limited to, California Senate Bill 100 (2018, DeLeon), the Integrated Resource Planning process, Title 24 Building Energy Efficiency Standards, and California Executive Order B-55-18;
(f) A successor to the net energy metering tariff should be transparent and understandable to all customers and should be uniform, to the extent possible, across all utilities;
(g) A successor to the net energy metering tariff should maximize the value of customer-sited renewable generation to all customers and to the electrical system; and
(h) A successor to the net energy metering tariff should consider competitive neutrality amongst Load Serving Entities.
|Comments on Guiding Principles Received||December 4, 2020|
|Reply Comments on Guiding Principles Received||December 11, 2020|
|Proposed Decision on Guiding Principles Issued||January 5, 2020|
|Issuance of NEM2 Lookback Study||January 21, 2021|
|Workshop on E3 White Paper and Program Elements||February 8, 2021|
|Decision on Guiding Principles Issued||February 17, 2021|
|Party Proposals Served||March 15, 2021|
|Workshop Presenting Party Proposals||March 23-24|
|Second Workshop on Proposals||April 22, 2021|
|Cost Effectiveness Analysis Results Provided to Parties||May 28, 2021|
|Opening Testimony on Issues 2 -6||June 18, 2021|
|Rebuttal Testimony||July 16, 2021|
|Evidentiary Hearing on Issues 3 - 6||July 26 - August 6, 2021|
|Completion of Settlement Talks||August 27, 2021|
|Opening Briefs on Issues 2-6||August 31, 2021|
|Reply brief [matter submitted]||September 14, 2021|
| Proposed Decision (PD) on successor to current NEM
December 13, 2021
|Comments on Proposed Decision Received||January 27, 2022|
|Reply Comments on Proposed Decision Received||January 14, 2022|
|Commission Decision||No earlier than January 27, 2022|
The NEM2 Evaluation (or "Lookback Study") by Verdant Associates was released in January 2021. More information can be found here.
E3 White Paper
As part of the new proceeding, 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 publicly 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 the current NEM program.
Parties 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 on 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 (approximately 2.5 hours in), the recording skips from the Natural Resources Defense Council's time to the joint investor-owned utilities' time.
Linked below are the original proposals as well as the presentation slides submitted by parties for the workshop.
- AARP (proposal)
- California Energy Storage Alliance (proposal - presentation)
- California Solar & Storage Association (proposal - presentation)
- California Wind Energy Association (proposal)
- California for Renewable Energy (proposal - presentation)
- Clean Coalition (proposal)
- Coalition for Community Solar Access (proposal - presentation)
- Foundation Windpower, LLC (proposal - presentation)
- GRID Alternatives, Vote Solar, and Sierra Club (proposal - presentation)
- Ivy Energy (proposal - presentation)
- Natural Resources Defense Council (proposal - presentation)
- PG&E, SCE, and SDG&E (proposal - presentation)
- Protect Our Communities Foundation (proposal - presentation)
- Public Advocates Office (proposal - presentation)
- Sierra Club (proposal - presentation)
- Small Business Utility Advocates (proposal - presentation)
- Solar Energy Industries Association and Vote Solar (proposal - presentation)
- The Utility Reform Network (proposal - presentation)
Party Proposal Cost-Effectiveness AnalysisOn May 28, 2021, CPUC Energy Division released the results of a cost-effectiveness analysis of party proposals. On June 15, 2021, Energy Division replied to questions about the results that were submitted by parties to this proceeding and made minor modifications to the model. The report, results, and models can be downloaded here.
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.
Opening briefs were submitted on August 31, 2021 and reply briefs were submitted on September 14, 2021. The opening briefs and reply 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. The CPUC provided a press release and fact sheet about the Proposed Decision, and the Excel model used for the Proposed Decision, in December 2021. The model was updated on December 23, 2021 to fix a formatting bug in the Results worksheet.
Opening comments on the proposed decision were submitted on January 7, 2022 and reply comments were submitted on January 14, 2022. The comments are available in the Documents tab of the R.20-08-020 docket.
A procedural email containing the following excerpt sent to the Service List of R.20-08-020 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. Furthermore, the assigned Commissioner wants to ensure all five Commissioners participate in oral arguments. Accordingly, the oral arguments hearing will be rescheduled at a later date.
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 page 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 Document 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 Proposed Decision
A ruling noticing oral arguments was issued on November 4, 2022 and the oral argument hearing was held on November 16, 2022.
Opening comments on the proposed decision are due on November 30, 2022 and reply comments are due on December 5, 2022. The Proposed Decision may be heard, at the earliest, at the CPUC’s December 15, 2022, Voting Meeting. To confirm when it will be heard, see the agenda and hold list that will be posted here prior to the meeting.
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.
If you have any questions about information on this webpage, please contact the CPUC Energy Division at email@example.com
Issued on November 10, 2022:
- Press Release (English)
- Fact Sheet (English)
- Q&A (English)