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On March 15, SCE filed with the California Public Utility Commission (CPUC) its proposed Net Surplus Compensation Rate for solar customers under AB 920. You will recall that AB 920 requires utilities to pay solar customers who are net producers of energy “fair and reasonable” compensation for the surplus energy provided. As an investor-owned utility, SCE must file its proposal with the CPUC. (Municipal utilities like PWP, BWP and GWP need only seek approval from their local City Council. As of this writing, we have not seen anything from the munis yet.)
The filing with the CPUC consists of three documents, which are linked to this posting, and in total they run to more than 100 pages of at times impenetrable regulatory-speak. The first document is the Application to the CPUC, the second is prepared Testimony explaining (sort of) the Application, and the third is a short set of “Work papers” filed in support of the Application. (Please note - any annotations in these documents are MINE, and not those of SCE.)
We will have more to say about these documents in the coming days but for now, we wanted to make sure that interested parties would have access to them and we would welcome your thoughts about the implications of SCE’s proposal. We would note one thing of interest - SCE is NOT proposing to compensate solar customers for the retail value of the electricity produced.
SCE laid out a potential schedule for adoption of its proposal (subject to CPUC approval):
Of course, if the CPUC holds a hearing on these proposals (it is also considering Applications from PG&E and SDG&E) these dates are likely to slip.