Our industry is pleased to support AB 2339 (Irwin; D-Thousand Oaks) which would apply a consistent methodology statewide for use by electric utilities when calculating the existing caps on their net energy metering (NEM) programs.

Net energy metering (NEM) is a billing service that provides credit to electric utility customers for the excess electricity supplied to the electric grid from their on-site solar photovoltaic energy systems. Existing law requires all California utilities to provide NEM up to 5% of the utility’s “aggregate customer peak demand.” In 2012, the California Public Utilities Commission (CPUC) adopted a decision interpreting for the first time “aggregate customer peak demand.”

To date, at least five POUs have exceeded their 5% NEM caps using a methodology that is inconsistent with the large majority of the state, effectively shutting down solar growth in these areas and their contribution towards the state’s clean energy and climate goals. With at least eight more POUs rapidly approaching their caps it is critical the Legislature establish a consistent, statewide methodology so consumers will continue to have the option of choosing cleaner energy.

AB 2339 establishes the same methodology for use by publicly owned utilities as presently used by investor owned utilities when calculating their 5% caps for their respective NEM programs.

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