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. Excess generation credits are applied in the month they were generated, and roll forward. At true-up, any remaining credits are also applied “backward” to any months that you may have had usage prior to having generation credits.
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.
In order for customers to receive this Renewable Attribute Adder they need to:
- Obtain certification from the CEC and provide a copy to SDG&E.
- 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.
- 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
- True Up Monthly Rate Table
Month Year $/kWh December 2014 0.05074 November 2014 0.05082 October 2014 0.05031 September 2014 0.05042 August 2014 0.04970 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