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ARTICLE · 17 FEBRUARY 2022

Proposed Changes To California Net Metering Tariffs Under Review By CPUC

The Public Utilities Commission of the State of California ("CPUC") is considering proposed rule changes to the state's current net energy metering tariff ("NEM 2.0").

United StatesEnergy and Natural Resources

The Public Utilities Commission of the State of California ("CPUC") is considering proposed rule changes to the state's current net energy metering tariff ("NEM 2.0"). In what has been described as a "controversial proposal", the proposed successor net energy metering tariff ("NEM 3.0") represents a shift from net metering to net billing. Under the proposed rule, "imports and exports will be calculated based on instantaneous netting of consumption and production and will be trued-up on an annual basis".

The proposed net billing tariff contains the following elements:

  1. Export Compensation Rates. Rates would be based on hourly averaged "Avoided Cost Calculator" values, which have been historically used to measure cost-effectiveness (not compensation).

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