Annual Compensation for Excess Generation

Assembly Bill 920 authorizes utilities to compensate Net Energy Metering (NEM) customers for excess generation at the end of their true-up period.

The compensation price is a rolling average based on the utility’s Default Load Aggregation Point (DLAP) price from 7 a.m. to 5 p.m. This is a wholesale market price that the utility pays other generators. It is currently averaging just under 4 cents per kwhr.

SDG&E will multiply the number of excess kwhrs you have by the averaged price applicable to your true-up month.

What is a True-Up Period?

Your true-up period is the annual reconciliation of your account, typically every 12 months. We review what you’ve purchased from the utility, excess generation you have returned to the grid and any payments or other adjustments that have been made to your account.

At this true-up if the number of kwhrs you have returned to the grid exceeds the numbers of kwhrs you have purchased, you will be compensated for the difference.

Additional Information

Call our Customer Contact Center at 1-800-411-7343 if you have additional questions or wish to request a refund check.