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Governor Schwarzenegger Signs Assembly Bill 920

On October 11, 2009, Governor Arnold Schwarzenegger signed Assembly Bill 920
(AB920 – Huffman – Solar and Wind Generation) into law. This law addresses
several aspects of renewable energy in California. One provision of the law that
directly affects you as a Southern California Edison (SCE) NEM customer is a
requirement that SCE offer you compensation for any net surplus electricity
generated over a 12-month period.

Your NEM account has a designated “relevant period” of 12 months, based on the
date your renewable energy generation system’s interconnection is finalized. At the
end of this period, under the current law, SCE reconciles your electricity
consumption against accrued energy credits for the preceding 12 months, and any
remaining surplus energy credits are zeroed out. AB920 changes the NEM
program by allowing you to receive compensation for your remaining surplus
energy.

In accordance with the new law you are eligible to receive compensation for net
surplus electricity in 2011. You may elect to not participate by completing and
returning the attached NEM Surplus Electricity Compensation Selection Form (also
available at www.sce.com/nemAB920). If you do not return the attached form,
SCE will enroll you in the net energy compensation option beginning with your next
relevant period.

The form provides the following options, which you may change once every 12
months (please note that Option 2 may result in a loss of energy credits):

1. Choose to receive compensation (check the “I Am Interested in Receiving
Compensation” box on the selection form). Select this option if you wish to
select when your participation begins for purposes of measuring your surplus
energy. In the future, you will have the opportunity to choose whether to
receive a payment or an electricity credit.

2. Choose not to receive compensation (check the “I Am Not Interested in
Participating in The Program” box on the selection form).

If you choose to participate and receive compensation under Option 1 above, you
may also elect when to start your relevant period for purposes of measuring your
surplus energy. You have the following two choices under Option 1 (please note
that Option 1a may result in a loss of energy credits):

1a.

Choose to end your current relevant period now. SCE will perform the
normal reconciliation on your account and start a new 12-month relevant
period for tracking your surplus energy (check the “I Elect to Enroll in The
New Tariff Now” box on the selection form). Your new relevant period begins
on your next regularly-scheduled meter read date subsequent to SCE’s
receipt of your selection form. Any surplus energy remaining under your
current relevant period is forfeited.

1b.

Choose to start the 12-month relevant period for tracking surplus energy at
the end of your current relevant period (check the “I Elect to Enroll in The
New Tariff at The End of My Current Relevant Period” box on the selection
form). Any surplus energy remaining under your current relevant period is
forfeited.

AB 920 also requires that the California Public Utilities Commission set the
compensation amount for surplus electricity by January 1, 2011. The
compensation amount will be used to pay eligible customers for net surplus
electricity generated during their relevant period ending in 2011. SCE will notify
you of the compensation amount as soon as it is established; then, you will have
the option to either receive payment for your surplus electricity, or have the surplus
electricity credited towards your electricity usage in your next relevant period.

When available, the revised NEM tariff will be posted online at:
www.sce.com/scheduleNEM.

"Now Law"! Utilities must offer compensation for any net surplus electricity generated over a 12 month period!

GetSolar Staff - Tuesday, August 3rd 2010 21:54

Last week, the California Public Utilities Commission - which oversees the incredibly popular California Solar Initiative - lifted a hold on the issuance of new reservations for certain kinds of applicants. That's good news for non-profits and other groups looking to take advantage of incentives for California solar installations. Citing an "unacceptable level of market disruption," Commissioner Michael Peevey decided to lift the hold and allow the initiative to continue processing applications.

The incentives remain a key part of California's strategy to promote solar installations, but the incentive rates have decreased since the program began in 2007. There is concern that over-subscription could put a great deal of stress on the state's finances, which remain at a critical juncture. As such, the commission is still considering options to keep the program solvent, either by reducing the incentive rate, changing the way it calculates certain payments or shifting money from the administrative budget to the incentive budget.

All applications received on or before July 9, 2010 will be processed as normal. The same goes for applications after that date, with the exception of those submitted by government or non-profit owned entities. Those will be put in a special queue, and their incentives could change depending on how the program evolves moving forward.