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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.

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’ve returned to the grid and any payments or other adjustments made to your account.

At this true-up if the number of kWhs you returned to the grid exceeds the number of kWhs you’ve purchased, you’ll be compensated for the difference.

Compensation is made up of two components, one for the wholesale value of the commodity, and one for the Renewable Energy Credit (REC). The wholesale 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’s currently averaging just under 4 cents per kWh. Your account will automatically be credited for the wholesale value should there be any excess generation after your annual true-up. We’ll multiply the number of excess kWh you have by the average price applicable to your true-up month. See true-up table below.

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

Renewable Energy Credit

Our NEM program is for customers who generate renewable energy. The Renewable Energy Credit (REC) portion of the excess generation compensation is the added value provided because the generation is from a renewable energy source. This additional compensation is called a Renewable Attribute Adder.

The California Energy Commission (CEC) has determined the eligibility for NEM customers and developed an ownership verification and tracking process for RECs created by net surplus generators. You can find it in the CEC guidebook, sections IV, V, VII available at: http://www.energy.ca.gov/renewables/documents/#rps

The current CEC implemented process is complicated and really only financially viable for  those customers who produce more than 12,000 surplus kWhs over a 12-month period[1].

In order for customers to receive this Renewable Attribute Adder they need to:

  1. Obtain certification from the CEC and provide a copy to SDG&E.
  2. Transfer the ownership of the RECs associated with the net surplus electricity to SDG&E using the Western Renewable Energy Generation Information System (WREGIS). The renewable attribute adder will only be paid to those net surplus generators who provide RECs to the Utility. This rate is updated annually. As of October 1, 2013, the rate was set at 1.6 cents/surplus kWh .

    Please note WREGIS will require the customer to become an “Account Holder”. There's a fee to become a WREGIS Account Holder. The WREGIS fee is based on the amount of kwhrs transferred and the frequency of transfers. As of February 2014, the minimum fee was $200. Please visit www.WREGIS.com for more information.

  3. Complete the Net Energy Metering Renewable Energy Credits Compensation Agreement.

To receive the renewable attribute adder, please return the Net Energy Metering Renewable Energy Credit Compensation Agreement (Form 182-100) along with your CEC Regional Energy Portfolio certification form to:

Net Metering/Customer Generation
8306 Century Park Court, CP52F
San Diego, CA 92123

[1] Determined by calculating the Annual WREGIS Account Holder Cost to Renew divided by the Renewable Attribute Rate per kWh 

  • True Up Monthly Rate Table
    Month Year $/kWh
    July 2014 0.04967
    June 2014 0.04834
    May 2014 0.04817
    April 2014 0.04820
    March 2014 0.04780
    February 2014 0.04680
    January 2014 0.04649
    December 2013 0.04572
    November 2013 0.04514
    October 2013 0.04587
    September 2013 0.04587
    August 2013 0.04630
    July 2013 0.04472
    June 2013 0.04362
    May 2013 0.04202
    April 2013 0.03995
    March 2013 0.03864
    February 2013 0.03768
    January 2013 0.03711
    December 2012 0.03639
    November 2012 0.03577
    October 2012 0.03460
    September 2012 0.03388
    August 2012 0.03335
    July 2012 0.03413
    June 2012 0.03424
    May 2012 0.03436
    April 2012 0.03511
    March 2012 0.03551
    February 2012 0.03602
    January 2012 0.03658
    December 2011 0.03699
    November 2011 0.03711
    October 2011 0.03740
    September 2011 0.03692
    August 2011 0.03661
    July 2011 0.03639
    June 2011 0.03648
    May 2011 0.03653
    April 2011 0.03673
    March 2011 0.03775
    February 2011 0.03876
    January 2011 0.03980
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SDGE, a Sempra Energy Utility