CA PUC sets rates for net surplus compensation

Under prior law, any net excess generation (NEG) remaining at the end of a 12-month period was granted to the customer’s utility. AB 920 of 2009 gave customers who are net metering solar and wind systems two additional options for the NEG remaining after a 12 month period. Customers have the option of rolling over any remaining NEG from month-to-month indefinitely, or they can receive financial compensation from their utility for the remaining NEG. On June 9, 2011, the CPUC approved the original Proposed Decision that established a rate for payment of excess kWh generated by distributed wind and solar systems, as required by AB 920.  The Decision sets the rate equal to the 12-month average spot market price for the hours of 7 am to 5 pm for the year in which the customer generated surplus power. See the CPUC webpage on net surplus compensation to read more about net surplus compensation. The rate making authorities of municipal utilities must develop their own compensation method for the remaining NEG through a public proceeding. By January 31, 2010, utilities must notify all of their net metering customers of these new options. If the customer makes no affirmative election for either option, the utility will be granted their NEG at the end of the 12 month period with no compensation to the customer.



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