ADVICE LETTER (AL) SUSPENSION NOTICE ENERGY DIVISION. Utility Name: SCE Date Utility Notified: 11/20/13

Transcription

1 ADVICE LETTER (AL) SUSPENSION NOTICE ENERGY DIVISION Utility Name: SCE Date Utility Notified: 11/20/13 Utility No./Type: U 338-E [X] to: AdviceTariffManager@sce.com Advice Letter Nos.: Advice Letter 2952-E Date AL filed: 10/21/13 Fax No.: (626) Utility Contact Person: Akbar Jazayeri ED Staff Contact: Gabriel Petlin Utility Phone No.: (626) For Internal Purposes Only: Date Calendar Clerk Notified 11/20/13 Date Commissioners/Advisors Notified 11/20/13 [X] INITIAL SUSPENSION (up to 120 DAYS) This is to notify that the above-indicated AL is suspended for up to 120 days beginning Nov 20, 2013 for the following reason(s) below. If the AL requires a Commission resolution and the Commission s deliberation on the resolution prepared by Energy Division extends beyond the expiration of the initial suspension period, the advice letter will be automatically suspended for up to 180 days beyond the initial suspension period. [ ] Section 455 Hearing is Required - A Commission resolution may be required to address the advice letter. [ ] Advice Letter Requests a Commission Order [X] Advice Letter Requires Staff Review Expected duration of initial suspension period: 120 days [ ] FURTHER SUSPENSION (up to 180 DAYS beyond initial suspension period) The AL requires a Commission resolution and the Commission s deliberation on the resolution prepared by Energy Division has extended beyond the expiration of the initial suspension period. The advice letter is suspended for up to 180 days beyond the initial suspension period. If you have any questions regarding this matter, please contact Gabe Petlin at gabriel.petlin@cpuc.ca.gov. cc: ED Tariff Unit DRA

2 Megan Scott-Kakures Vice President, Regulatory Operations October 21, 2013 ADVICE 2952-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Modifications to SCE s Net Energy Metering Tariffs to Enable Multiple Meter Aggregation Pursuant to Senate Bill 594 (Wolk, 2012) and Resolution E-4610 In compliance with Resolution E-4610 and Senate Bill (SB) 594 (Wolk, 2012), Southern California Edison Company (SCE) hereby submits for filing the following changes to its tariffs. The revised tariff sheets are listed on Attachment A and are attached hereto. PURPOSE The purpose of this advice filing is to modify SCE s Net Energy Metering (NEM) tariffs and establish Form , NEM Aggregation Account Information, to enable multiple meter aggregation (NEM Aggregation) pursuant to SB 594 and Resolution E-4610 (the Resolution). BACKGROUND On September 27, 2012, Governor Brown approved SB 594, which, in part, amended Public Utilities (PU) Code Section 2827(h) 1 to allow an eligible NEM customer-generator with multiple meters to elect to aggregate the electrical load of the meters located on the property where the renewable electrical generation facility is located and on all property adjacent or contiguous to that property, provided those properties are solely owned, leased or rented by the eligible customer-generator. However, before this provision became operative, SB 594 required the California Public Utilities Commission (Commission or CPUC) to make the determination that allowing eligible customergenerators to aggregate their load from multiple meters would not result in an increase in the expected revenue obligation of customers who are not eligible customer- 1 Unless otherwise specified, all future Section references are to the PU Code. P.O. Box Rush Street Rosemead, California (626) Fax (626)

3 ADVICE 2952-E (U 338-E) October 21, 2013 generators, and instructed the Commission to make this determination by September 30, On August 16, 2013, the Commission issued Draft Resolution E-4610 (Draft Resolution), which found that allowing eligible customer-generators to aggregate their load from multiple meters, pursuant to SB 594, would not result in an increase in the expected revenue obligation of customers who are not eligible customer-generators. On September 19, 2013, the Commission adopted Revision 1 of the Draft Resolution, and ordered the investor owned utilities (IOUs) to each file a Tier 2 advice letter revising their NEM tariffs to enable multiple meter aggregation pursuant to SB 594. In making the finding that NEM Aggregation will not result in an increase in the expected revenue obligation of customers who are not eligible customer-generators, the Commission interpreted SB 594 to not mandate that the CPUC determine whether cost shifting exists when comparing aggregated DG systems against the cost of NEM, but rather, whether cost shifting exists when comparing aggregated DG systems against the total cost of multiple disaggregated NEM systems. 2 Ordering Paragraph (OP) 2 of the Resolution requires that the IOUs advice letters and revised tariffs comply with all provisions of SB 594 pertaining to meter aggregation, including the provisions that were conditioned on the Commission making the costshifting determination contained in the Resolution as well as the provisions that were not conditioned on the determination contained in the Resolution. SB 594 contains the following provisions related to NEM Aggregation: (1) An eligible customer-generator with multiple meters may elect to aggregate the electrical load of the meters located on the property where the renewable electrical generation facility is located and on all property adjacent or contiguous to the property on which the renewable electrical generation facility is located, if those properties are solely owned, leased or rented by the eligible customergenerator. (2) If an eligible customer-generator elects to aggregate the electric load of multiple meters, the electric utility must use the aggregated load for the purpose of determining whether an eligible customer-generator is a net consumer or a net surplus customer-generator during the 12-month Relevant Period. (3) Customer-generators electing to aggregate load from multiple meters are permanently ineligible to receive Net Surplus Compensation (NSC), and the electric utility will retain any kilowatthours (kwh) in excess of the eligible customer-generator s aggregated electrical load generated during the 12-month Relevant Period. 2 Resolution E-4610, Commission determination authorizing investor owned utilities to implement net energy metering (NEM) aggregation pursuant to Senate Bill 594 (Wolk, 2012), p. 8.

4 ADVICE 2952-E (U 338-E) October 21, 2013 (4) If an eligible customer-generator elects to participate in NEM Aggregation, and different rate schedules are applicable to service at any of the participating meters, the electricity generated by the renewable electrical generation facility must be allocated to each of the meters in proportion to the electrical load served by those meters. The proportionate allocation must be computed each billing period. (5) Under NEM Aggregation, parcels that that are divided by a street, highway, or public thoroughfare are considered contiguous, provided they are otherwise contiguous and under the same ownership. (6) Under NEM Aggregation, the renewable electrical generating facility, or a combination of those facilities, must have a total generating capacity of not more than one megawatt (MW). (7) An eligible customer-generator electing to aggregate the electrical load of multiple meters shall remit service charges for the cost of providing billing services to the electric utility that provides service to the meters. Tracking NEM Interconnection Costs In addition to the provisions contained in SB 594, OP 4 of the Resolution requires the IOUs to immediately begin tracking interconnection cost data based on the actual interconnection costs for all NEM customers, and to report this information one year from the effective date of the Resolution. SCE notes that before it can track actual interconnection costs for all NEM customers, changes are needed to internal business processes and systems. SCE is in the process of implementing the changes necessary to comply with OP 4, and expects to begin tracking actual interconnection cost data for all NEM customers in November Unless directed differently by the Energy Division director, on September 19, 2014, SCE will submit a report on these costs to the Commission. Clarification on Public Purpose Programs (PPP) Charges The Resolution states that a customer-generator under the NEM base case and the meter aggregation case are exempt from public purpose program (PPP) and other noncommodity charges. 3 However, since PPP charges are embedded in the energyrelated Delivery Service rates, a customer-generator who net consumes does pay PPP charges on the net consumed kwh. Net generators are exempt from PPP charges in that (1) they don t pay the PPP charges embedded in the energy-related Delivery Service rates, and (2) they are not charged departing load charges to recoup the avoided PPP charges. SCE clarifies that it does not interpret the Resolution as 3 Resolution E-4610, Commission determination authorizing investor owned utilities to implement net energy metering (NEM) aggregation pursuant to Senate Bill 594 (Wolk, 2012), p. 5.

5 ADVICE 2952-E (U 338-E) October 21, 2013 exempting net consumers from PPP charges, since such an exemption was not authorized in SB 594 and is not included in the OPs of the Resolution. PROPOSED TARIFF CHANGES Consistent with the changes to PU Code Section 2827(h)(4) discussed above, SCE proposes the following revisions to Schedule NEM, and Forms and , to enable NEM Aggregation. In addition, SCE establishes Form , NEM Aggregation Account Information. Schedule NEM Special Condition 6 Multiple Meter Aggregation (NEM Aggregation) is added to Schedule NEM and is applicable to eligible customers electing to participate in NEM Aggregation, as defined. Billing Methodology SB 594 requires a proportional allocation billing methodology that must be computed monthly. SCE will bill each metered service account participating in NEM Aggregation individually, according to the billing provisions applicable to all NEM customers. However, for accounts participating in NEM Aggregation (which will all be placed on the same billing cycle), the energy consumption (kwh) registered on each account s meter will be reduced, for NEM billing purposes, by a proportional allocation of the energy that is generated by the Renewable Electrical Generating Facility and exported to SCE s grid, as registered on the meter of the service account directly interconnected to the Renewable Electrical Generating Facility. For example, if the account directly interconnected to the Renewable Electrical Generating Facility consumes 50 kwh, aggregated account #1 consumes 150 kwh, and aggregated account #2 consumes 200 kwh (making the total consumption of the NEM Aggregation arrangement 400 kwh), the directly interconnected account is allocated 12.5 percent (i.e., 50/400 kwh) of the energy exported to SCE s grid by the Renewable Electrical Generating Facility, aggregated account #1 receives 37.5 percent (i.e., 150/400 kwh), and aggregated account #2 receives 50 percent (i.e., 200/400 kwh). SCE will require that the customer designate one account in the NEM Aggregation arrangement to receive any remaining kwh not allocated due to rounding after the proportional allocation described above is completed. Since an NEM Aggregation arrangement (which consists of the account that is directly interconnected to the Renewable Electrical Generating Facility and all aggregated accounts) may include a mix of residential, commercial and/or agricultural accounts, and, therefore, time-of-use (TOU), non-tou and tiered rates, all accounts in an NEM Aggregation arrangement will be metered at the 15-minute interval level and the exported generation will be proportionally allocated in kwh at the 15-minute interval level.

6 ADVICE 2952-E (U 338-E) October 21, 2013 Aggregated accounts are eligible for the same demand response programs as NEM customers. All demand response programmatic elements (e.g., eligibility) and payments to aggregated accounts are based on the metered usage disregarding any contributions from kwh allocated to the aggregated accounts based on the proportional allocation methodology described above. NEM Aggregation Arrangement Requirements Since total consumption of all accounts in an arrangement is required to determine the proportional allocation, all accounts in an NEM Aggregation arrangement must be (1) all Bundled Service accounts, or (2) all Direct Access service accounts served by the same Electric Service Provider (ESP), or (3) all Community Choice Aggregation accounts served by the same Community Choice Aggregator so that, for example, Bundled Service account information is not shared with an ESP and vice versa. Additionally, accounts participating in NEM Aggregation may not be shared across multiple NEM Aggregation arrangements, and aggregated accounts must not have any other generating facilities directly interconnected to them. SCE recognizes that a customer may wish to change the accounts included in an NEM Aggregation arrangement (either add additional eligible accounts or remove accounts). The proposed tariff modifications allow for this, provided a minimum of 60-days notice is provided to SCE prior to the change taking effect, and such change remains in effect for a minimum of 12 months and doesn t result in the Renewable Electrical Generating Facility being oversized (i.e., if accounts are removed) compared to the electrical requirements of the NEM Aggregation arrangement. Billing Services Charges Included in this new Special Condition are the additional billing services charges that were authorized in SB 594 and that apply only to NEM Aggregation customers. These fees are based on SCE s estimated incremental costs to manually bill service accounts participating in NEM Aggregation. Depending on participation volumes, which at this time are unknown, SCE may modify its automated billing system at some future date to incorporate NEM Aggregation. Such modifications are likely to take 9 to 12 months to implement, and would not have been ready by the proposed effective date of this advice letter. Since the proportional allocation billing methodology required by SB 594 is unique to NEM Aggregation accounts and does not align with other similar programs already implemented in SCE s billing system, SCE may file an advice letter at a future date to open a memorandum account to allow for the opportunity to track and recover these incremental billing system modification costs. Assuming the decision is made to automate NEM Aggregation, SCE may also propose modifications to the billing services charges proposed herein.

7 ADVICE 2952-E (U 338-E) October 21, 2013 Net Surplus Compensation Pursuant to SB 594, all accounts served under this new Special Condition are ineligible to receive NSC from SCE. Multiple Tariff Generating Facility Dual Participation Exclusion Special Condition 5.a of Schedule NEM outlines the provisions for billing customers with a Multiple Tariff Generating Facility. The algorithm used to appropriately allocate the different NEM credits from the various generators did not consider an NEM Aggregation scenario. As such, SCE s NEM Aggregation tariff provisions exclude customers from dual participating under the provisions of Special Condition 5.a. Under the provisions of Special Condition 5.b, where the customer has one NEM Renewable Electrical Generating Facility and one or more non-nem Eligible Generators, dual participation is allowed. Additional Generation Only Separately Metered Service SCE recognizes that in lieu of interconnecting the Renewable Electrical Generating Facility to an existing metered service account, some customers may prefer an additional service from SCE for the purposes of interconnecting the Renewable Electrical Generating Facility to SCE s grid. Since this additional service and associated metering are in addition to the electrical facilities that SCE would normally provide, such facilities and associated metering will be provided under the Added Facilities provisions of Rule 2.H. provided the configuration does not result in adverse impacts to SCE s grid, as determined by SCE. The additional service and associated metering must be located on the same property as the Renewable Electrical Generating Facility at a location approved by SCE. No additional load other than incidental load related to the inverters and support of the Renewable Electrical Generating Facility may be registered on this additional metered service. 4 This option is only applicable to customers electing to take service pursuant to Special Condition 6 of Schedule NEM. The new service will be billed monthly for any charges of its Otherwise Applicable Tariff (OAT) not already provided for under Added Facilities. Special Condition 1 Required Application and Contract is modified to require customers electing to participate in NEM Aggregation to complete Form , NEM Aggregation Account Information. Special Condition 2 Metering Requirements is modified to include additional metering provisions applicable to customers electing to participate in NEM Aggregation. Since customers can include a mix of TOU, non-tou and tiered rates in an NEM Aggregation arrangement, all accounts in the arrangement must be metered at the 15-4 Since the additional service is provided under the Added Facilities provisions of Rule 2.H, no allowances under Rules 15 and 16 are applicable.

8 ADVICE 2952-E (U 338-E) October 21, 2013 minute interval level so that the energy exported to the grid by the Renewable Electrical Generating Facility can be allocated correctly based on the various rate structures. The account directly interconnected to the Renewable Electrical Generating Facility must have a single meter that is capable of registering the flow of energy in two directions in 15-minute intervals. If the meter of the account that is directly interconnected to the Renewable Electrical Generating Facility is not capable of recording the flow of energy in two directions at the 15-minute interval level or if the customer s existing meter is unable to register the amount of energy exported to the grid by the Renewable Electrical Generating Facility, an appropriate meter shall be provided at the customer s expense. Special Condition 7.f Generator Size is modified to allow Renewable Electrical Generating Facilities participating in NEM Aggregation to be sized based on the electrical requirements of all of the accounts in the NEM Aggregation arrangement. SCE notes that because the Renewable Electrical Generating Facility in a NEM Aggregation arrangement is likely to be oversized compared to the directly connected load, more energy will be exported to SCE s grid compared to that of disaggregated NEM generating facility interconnections. This increase in export may trigger additional interconnection studies or supplemental reviews required under Rule 21, Generating Facility Interconnections, or additional distribution upgrades. Although NEM customers are not responsible for the costs associated with these studies, reviews and upgrades, SCE must still perform these activities to ensure the safety and reliability of its electrical system. If these activities are required, it is unlikely that SCE will be able to interconnect the customer within 30-working days, as required in Section 2827(e). Therefore, pursuant to Section 2827(e)(3), SCE will notify the customer and the Commission of the reason for its inability to process the customer s NEM interconnection request within the 30-working day timeframe and the expected completion date. Special Condition 7.g Relevant Period is modified to specify that the initial Relevant Period of an aggregated account added during a NEM Aggregation arrangement s ongoing Relevant Period may have an initial Relevant Period that is less than 12 months to align with the arrangement s ongoing Relevant Period. Other minor conforming changes (e.g., re-numbering of Special Conditions) are made throughout Schedule NEM to reflect the substantive changes proposed above to enable NEM Aggregation. Form Generating Facility Interconnection Application Form is modified to require that (1) customers indicate on the Application that the generating facility will be part of an NEM Aggregation arrangement, and (2) customers electing to participate in NEM Aggregation submit a plot plan with the Application showing the location of all proposed aggregated meters.

9 ADVICE 2952-E (U 338-E) October 21, 2013 Form Application for NEM Generating Facility of not more than 10 kw Form is modified to require that customers electing to participate in NEM Aggregation submit a plot plan with the Application showing the location of all proposed aggregated meters. Form NEM Aggregation Account Information Form is established to enable customers to provide the aggregated account information and warrant that the aggregated accounts meet all eligibility criteria as provided in Special Condition 6 of Schedule NEM. No cost information is required for this advice filing. Except as noted above, this advice filing will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule. TIER DESIGNATION Pursuant to OP 1 of the Resolution, this advice letter is submitted with a Tier 2 designation. EFFECTIVE DATE This advice filing will become effective on November 20, 2013, the 30 th calendar day after the date filed. NOTICE Anyone wishing to protest this advice filing may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice filing. Protests should be mailed to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California EDTariffUnit@cpuc.ca.gov Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above). In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of:

10 ADVICE 2952-E (U 338-E) October 21, 2013 Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) AdviceTariffManager@sce.com Leslie E. Starck Senior Vice President, Regulatory Policy & Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415) Karyn.Gansecki@sce.com There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and shall be submitted expeditiously. In accordance with Section 4 of GO 96-B and OP 3 of the Resolution, SCE is serving copies of this advice filing to the interested parties shown on the attached service lists for GO 96-B, R and R Address change requests to the GO 96-B service list should be directed by electronic mail to AdviceTariffManager@sce.com or at (626) For changes to all other service lists, please contact the Commission s Process Office at (415) or by electronic mail at Process_Office@cpuc.ca.gov. Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing at SCE s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE s web site at For questions, please contact Erin Pulgar at (626) or by electronic mail at Erin.Pulgar@sce.com Southern California Edison Company /s/ Megan Scott-Kakures Megan Scott-Kakures MSK:ep:jm Enclosures

11 CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/cpuc Utility No.: Southern California Edison Company (U 338-E) Utility type: Contact Person: Darrah Morgan ELC GAS Phone #: (626) PLC HEAT WATER Disposition Notice to: EXPLANATION OF UTILITY TYPE ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water (Date Filed/ Received Stamp by CPUC) Advice Letter (AL) #: 2952-E Tier Designation: 2 Subject of AL: Modifications to SCE s Net Energy Metering Tariffs to Enable Multiple Meter Aggregation Pursuant to Senate Bill 594 (Wolk, 2012) and Resolution E-4610 Keywords (choose from CPUC listing): Compliance, Metering AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: Resolution E-4610 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: Summarize differences between the AL and the prior withdrawn or rejected AL 1 : Confidential treatment requested? Yes No If yes, specification of confidential information: Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Name and contact information to request nondisclosure agreement/access to confidential information: Resolution Required? Yes No Requested effective date: 11/20/13 No. of tariff sheets: -20- Estimated system annual revenue effect: (%): Estimated system average rate effect (%): When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: Service affected and changes proposed 1 : Pending advice letters that revise the same tariff sheets: Schedule NEM, Forms , , , and Table of Contents None 1 Discuss in AL if more space is needed.

12 Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California Megan Scott-Kakures Vice President, Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) Leslie E. Starck Senior Vice President, Regulatory Policy & Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415)

13 Public Utilities Commission 2952-E Attachment A Cal. P.U.C. Sheet No. Title of Sheet Cancelling Cal. P.U.C. Sheet No. Revised E Schedule NEM Revised E Revised E Schedule NEM Revised E Revised E Schedule NEM Revised E Revised E Schedule NEM Revised E Revised E Schedule NEM Revised E Revised E Schedule NEM Revised E Revised E Schedule NEM Revised E Revised E Schedule NEM Revised E Original E Schedule NEM Original E Schedule NEM Revised E Schedule NEM Revised E Revised E Schedule NEM Revised E* Revised E Schedule NEM Revised E Revised E Schedule NEM Revised E Revised E Form Revised E Revised E Form Revised E Original E Form Revised E Table of Contents Revised E Revised E Table of Contents Revised E Revised E Table of Contents Revised E 1

14 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E* Schedule NEM Sheet 1 NET ENERGY METERING APPLICABILITY Applicable to Eligible Customer-Generators (Customers) as defined in Special Condition 6.a, pursuant to Public Utilities (PU) Code Section 2827, where the total Renewable Electrical Generating Facility capacity does not exceed 1 MW at a single Premise. This Schedule is available on a first-come, first-served basis until the first of the following events occurs, at which time this Schedule will be closed to new Customers: (a) the total combined rated generating capacity of all Renewable Electrical Generating Facilities served under this Schedule, and all Eligible Generators served under Schedule NEM-V and Schedule MASH-VNM, reaches five (5) percent of Southern California Edison s (SCE) aggregate customer peak demand, as defined in Special Condition 6 (hereinafter referred to as the NEM trigger level, which may never be less than 2,240 megawatts in accordance with Public Utilities Code Section 2827(c)(4)(B)(ii)); or (b) July 1, Customers who are receiving service on this Schedule, or who have submitted all documentation necessary for receiving service on this Schedule, prior to the date SCE reaches its NEM trigger level or July 1, 2017, whichever is earlier, are subject to the transition provisions as provided in Special Condition 10 below. This Schedule is also applicable to a Customer whose generating facility meets the definition of a Multiple Tariff Generating Facility, as defined in Special Condition 6.h of this Schedule, and shall additionally be subject to the provisions of Special Condition 4 of this Schedule. A Customer whose generating facility meets the definition of a Combined Technology Generating Facility, as defined in Special Condition 6.h of this Schedule, shall be subject to the provisions of Special Condition 4 of this Schedule. Except for Customers utilizing a Multiple Tariff Generating Facility that includes one or more Non- Renewable Electrical Generating Facility, Customers eligible for service under this Schedule are exempt from: (1) any new or additional charges not included in their Otherwise Applicable Tariff (OAT), and (2) Standby Charges (Schedules S, TOU-8-S, or TOU-8-RTP-S). Customers electing to participate in NEM Aggregation, pursuant to Special Condition 5 of this Schedule, are subject to additional billing services charges, as defined therein. (N) (N) Customers utilizing a Multiple Tariff Generating Facility may be subject to Standby Charges, pursuant to the provisions of Schedules S, TOU-8-S, or TOU-8-RTP-S, as well as other applicable charges included in their OAT (e.g., Schedule CGDL-CRS and Schedule DL-NBC). Pursuant to Decision and notwithstanding all applicable terms and conditions contained herein, to the extent a Community Choice Aggregator offers net energy metering service, SCE shall provide applicable NEM services under this Schedule to a Community Choice Aggregation (CCA) Service Eligible Customer-Generator consistent with services provided to its bundled service Eligible Customer-Generators. As a condition of receiving service under this Schedule, the Community Choice Aggregator shall be responsible for timely providing the applicable generation-related bill charges or credits for each CCA Service Eligible Customer Generator to SCE. Each CCA Service Eligible Customer-Generators shall look to its Community Choice Aggregator for NEM services related to the electric generation charges and credits that result from receiving services under this schedule. The Community Choice Aggregator shall also be responsible for the applicable generation-related bill credit structure associated with this service option and providing the CCA Service Eligible Customer- Generator with the applicable generation-related bill credit. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 2952-E Megan Scott-Kakures Date Filed Oct 21, 2013 Decision Vice President Effective Jul 10, H13 Resolution E-4610

15 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E Schedule NEM Sheet 3 NET ENERGY METERING RATES As determined in each billing period, when a Customer is a net consumer of energy, Es is greater than EF, where Es is energy supplied by SCE and EF is energy generated by the Customers Renewable Electrical Generating Facility and exported into SCE s electrical system, the resulting net consumed energy will be used in the calculation of all applicable energy charges, calculated by 1) multiplying the Customer s net consumed kwh by the applicable energy rate components of the Customer s OAT, in each Time-Of-Use (TOU) period when applicable, for Bundled Service Customers, or 2) multiplying the Customer s net consumed kwh by the applicable Delivery Service rate components of the Customer s OAT, in each TOU period when applicable, for DA and CCA Service Customers (the Customer s ESP or Community Choice Aggregator is responsible for providing the generation-related energy charges). As determined in each billing period, when a Customer is a net producer of energy, EF is greater than Es, where Es is energy supplied by SCE and EF is energy generated by the Customer s Renewable Electrical Generating Facility, the resulting net produced energy will be used in the calculation of energy credits, calculated by 1) multiplying the Customer s net produced kwh by the applicable energy rate components of the Customer s OAT, in each TOU period when applicable, for Bundled Service Customers, or 2) multiplying the Customer s net produced kwh by the applicable Delivery Service rate components of the customer s OAT, in each TOU period when applicable, for DA and CCA Service Customers (the Customer s ESP or Community Choice Aggregator is responsible for providing the generation-related energy credits). For DA and CCA Service Customers, generation credits, if any, do not reduce the charges owed to SCE for energy supplied to such customer, and Delivery Service credits, if any, do not reduce the charges owed to the ESP or Community Choice Aggregator for energy supplied to such customer. For all customers served under this Schedule, Special Condition 3.h shall apply to any remaining energy credits at the end of each Relevant Period. Net Surplus Compensation (NSC) is equal to the Net Surplus Compensation Rate (NSCR) multiplied by Net Surplus Energy. Pursuant to PU Code Section 2827(h)(5)(A), NSC is designed to compensate NEM customers for Net Surplus Energy they produced in excess of their on-site load over their Relevant Period. The NSCR is based on the default load aggregation point (DLAP) price. See Special Condition 3.h.6 for calculation of NSCR. Renewable Energy Credits (RECs) are equal to Renewable Attribute Adder (RAA) multiplied by Net Surplus Energy. See Special Condition 3.h.7. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 2952-E Megan Scott-Kakures Date Filed Oct 21, 2013 Decision Vice President Effective Jul 10, H14 Resolution E-4610

16 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E Schedule NEM Sheet 4 NET ENERGY METERING SPECIAL CONDITIONS 1. Required Application and Contract: An executed Application For A Net Energy Metering And Generating Facility Interconnection Agreement (Form ), and an executed Net Energy Metering And Interconnection Agreement (Form ), are required prior to receiving service under this Schedule. Customers electing to participate in NEM Aggregation pursuant to Special Condition 5 of this Schedule must also complete Form For Generating Facilities exceeding 10 kw and Multiple Tariff Generating Facilities, a Generating Facility Interconnection Application (Form ) is required in lieu of Form (N) (N) Eligible customers electing NSC must execute; a. A Net Surplus Compensation Rate and Renewable Energy Credits Compensation Selection Form (Form ) to: 1) Certify the customer s generating facility is a Qualifying Facility pursuant to the Public Utility Regulatory Policies Act of 1978 that is exempt from certification at the Federal Energy Regulatory Commission and 2) Select compensation in the form of either a check payment or a credit rollover. Eligible customers must provide SCE all required forms in order to receive compensation. b. Renewable Energy Compensation Form (Form ) at the end of each Relevant Period to receive Renewable Energy Compensation. See Special Condition 3.h Metering Requirements for all Customer Served Under This Schedule, Except Those Utilizing a Multiple Tariff Generating Facility Under Special Condition 4: a. For Customers whose OAT does not require a TOU meter, net energy shall be measured (metered) using a single meter capable of registering the flow of energy in two directions. If the customer s existing meter is not capable of measuring the flow of energy in two directions, an appropriate meter shall be provided at the expense of the Customer. SCE may elect to install an additional meter or meters, at SCE s expense, with the Customer s consent. Such additional metering shall be used only to provide the information necessary to accurately bill or credit the Customer. b. For Customers whose OAT requires a TOU meter, net energy shall be measured (metered) using a single TOU meter capable of registering the flow of energy in two directions. If the Customer s existing meter is not a TOU meter capable of measuring the flow of energy in two directions, an appropriate TOU meter shall be provided at the expense of the Customer. SCE may elect to install an additional meter or meters, at SCE s expense, with the Customer s consent. Such additional metering shall be used only to provide the information necessary to accurately bill or credit the Customer. c. Where additional meters are required to accurately bill and/or credit the Customer, if authorization is not granted by the Customer, SCE shall have the right to refuse interconnection. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 2952-E Megan Scott-Kakures Date Filed Oct 21, 2013 Decision Vice President Effective Jul 10, H12 Resolution E-4610

17 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E Schedule NEM Sheet 6 NET ENERGY METERING SPECIAL CONDITIONS 2. Metering Requirements d. For NEM Aggregation accounts receiving service pursuant to Special Condition 5 of this Schedule, the account directly interconnected to the Renewable Electrical Generating Facility must have a single meter that is capable of registering the flow of energy in two directions in 15-minute intervals. If the customer s existing meter is not capable of recording the flow of energy in two directions at the 15-minute interval level or if the customer s existing meter is unable to register the amount of energy exported to the grid by the Renewable Electrical Generating Facility, an appropriate meter shall be provided at the expense of the customer. All other aggregated accounts must have a standard SCE billing meter capable of registering the flow of energy in 15-minute intervals. (N) (N) 3. Billing: a. SCE shall provide all Customers served under this Schedule with net energy consumption information and/or net energy export information with each monthly bill. For CCA Service Customers, the CCA is responsible for providing SCE the billing CCA generation charges or credits applicable to NEM CCA Service Customers. For DA Customers served under the Consolidated SCE Billing option, as defined in SCE s Rule 22, the ESP is responsible for providing SCE the generation-related energy charges or credits applicable to those DA Customers. b. For all Customers served under this Schedule, all applicable Monthly Customer Charges, Minimum Charges, Demand Charges, and/or other non-energy related charges, excluding any adjustments due to power factor provisions, as defined in the Customer s OAT, shall apply, when applicable, regardless of the Customer s monthly net energy consumption or export. c. For all Customers who meet the definition of a Residential or Small Commercial Customer (as defined in SCE s Rule 1), the monthly valued energy related charges and credits are accumulated until the end of a Relevant Period. However, upon a Customer s request, SCE shall permit a Residential or Small Commercial Customer to pay all applicable energy charges monthly. The request must be made by the Customer upon initiation of service under this Schedule or upon written notice to SCE no later than thirty (30) days prior to the end of a Relevant Period, whichever applies. d. For all Customers who do not meet the definition of a Residential or Small Commercial Customer, it is mandatory to pay all applicable charges, both energy and non-energy related, on a monthly basis, in accordance with the Customer s OAT. e. For all Customers who meet the definition of a Residential or Small Commercial Customer, the monthly bills shall show the accrued energy charges owed to SCE, or accrued energy credits for net energy exported, whichever applies, until the end of a Relevant Period. f. For all Customers served under this Schedule, the value of energy credits will be used to offset other time or TOU periods and/or subsequent billing periods energy related charges when they exist. However, at no time will energy credits be applied towards any non-energy related charges, and such credits cannot be carried over to a new Relevant Period except as provided in Special Condition 3.h.3. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 2952-E Megan Scott-Kakures Date Filed Oct 21, 2013 Decision Vice President Effective Jul 10, H21 Resolution E-4610

18 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E Schedule NEM Sheet 6 NET ENERGY METERING SPECIAL CONDITIONS 3. Billing: g. For DA and CCA Service Customers, SCE will provide the applicable Delivery Service charges or credits, and the Customer s ESP or Community Choice Aggregator is responsible for providing the applicable generation charges or credits. h. At the end of each Relevant Period (as defined in Special Condition 6.g of this Schedule) following the Date of Parallel Operation of the Customer s generator(s) with SCE s electrical system, SCE shall proceed as follows: 1) For all Customers who meet the definition of a Residential or Small Commercial Customer who did not choose to be billed monthly for their energy related charges, SCE will 1) subtract all monthly valued accrued energy credits from all accrued energy charges from Bundled Service Customers, or 2) subtract all monthly valued accrued Delivery Service energy credits from all accrued Delivery Service energy charges from DA and CCA Service Customers. If this calculation results in monies owed to SCE, such energy charges shall be due and payable in accordance with the Customer s OAT. However, if this calculation results in an excess energy credit, SCE shall neither pay the Customer for any unused energy credit nor carry forward any unused energy credit. The unused energy credit shall be zeroed out and a new Relevant Period shall commence. Eligible Customers electing Net Surplus Compensation as provided for in part h.3 of this Special Condition may receive additional credit or compensation. Additionally, Special Condition 9 may apply for Residential Customers. For CCA Service Customers, SCE and the Community Choice Aggregator shall complete an annual true up of all charges and credits calculated monthly, consistent with the provisions set forth under this Schedule. Credits and charges related to the Community Choice Aggregator s generation services shall be based on the information provided by the Community Choice Aggregator to SCE. Any net balance related to generation charges that are collected from an eligible NEM CCA Service customer-generator will be paid annually by SCE to the Community Choice Aggregator as set forth in Rule 23, Section Q, which describes the payment and collection terms between the SCE and a CCA Service customer. For DA Customers, separate annual true-ups of all charges and credits, consistent with the provisions set forth under this Schedule, will be calculated by SCE for the applicable SCE charges and credits, and by the ESP for the applicable ESP charges and credits. Any net balance related to generation charges that are collected from an eligible DA Customer will be paid annually by SCE to the ESP as set forth in Rule 22, Section L. 2) For all Customers who do not meet the definition of a Residential or Small Commercial Customer, and all Residential and Small Commercial Customers who meet the definition of a Residential or Small Commercial Customer but choose to be billed monthly for their energy related charges, an annual true-up occurs at the end of the Relevant Period. Upon completion of the annual true-up, any remaining credits will be zeroed out and a new Relevant Period shall commence. Eligible Customers electing Net Surplus Compensation as provided for in part h.3 of this Special Condition may receive additional credit or compensation. Additionally, Special Condition 9 may apply for Residential Customers. For DA and CCA Service Customers who are billed monthly for their energyrelated charges, any unused Delivery Service energy credits shall not be carried forward to the start of a new Relevant Period; rather, the unused Delivery Service energy credits shall be zeroed out and a new Relevant Period will commence. DA and CCA Service Customers should look to their ESP or Community Choice Aggregator for the treatment of unused generation energy credits. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 2952-E Megan Scott-Kakures Date Filed Oct 21, 2013 Decision Vice President Effective Jul 10, H11 Resolution E-4610

19 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E Schedule NEM Sheet 7 NET ENERGY METERING SPECIAL CONDITIONS 3. Billing: h. 3) Effective January 1, 2010, Eligible Bundled Service Customer-Generators who qualify as Net Surplus Generators, (as defined in Special Condition 6) may be eligible for compensation for Net Surplus Energy produced during a Relevant Period commencing in 2010 or thereafter. Net Surplus Generators must elect compensation by executing Net Surplus Compensation Rate and Renewable Energy Credits Compensation Selection Form (Form ). Customers are eligible to revise their Net Surplus Energy elections, annually, as provided under Rule 12. 4) Bundled Service Customers, except those included in an NEM Aggregation arrangement, are eligible to receive NSC if at the conclusion of the Relevant Period the true-up process indicates that the customer is a Net Surplus Generator, and if the customer has executed all forms identified in Special Condition 1. If no Net Surplus Energy is produced, the customer is not eligible to receive NSC. Eligible customers from whom SCE has not obtained all required forms at the time of the processing of the final bill of the Relevant Period will not receive NSC. (N) (N) 5) To calculate NSC, the kilowatt hours of Net Surplus Energy are multiplied by the NSCR. For the customer that elects the payment option, the NSC will be reduced by any amount that the customer owes to SCE before a check is issued to the customer. For the customer that elects the rollover option, the NSC will be applied to future charges (customer s bill account) in the next Relevant Period. Net Surplus Energy is set to zero at the start of the next Relevant Period. The customer may choose to change the compensation option from a check payment to a rollover or vice versa once a year. 6) NSCR is equal to the simple rolling average of SCE hourly $-per-kwh prices from Hour Ending 08 through Hour Ending 17 (7 a.m. to 5 p.m.) for each day for the 12 month period corresponding to the customer s 12-month Relevant Period. The rolling average is calculated on a monthly basis to be effective the first of each month and is applied to all customers with a Relevant Period ending in that month. SCE uses a full 12 months (365 days, or 366 days for leap years) of DLAP prices, as published on the CAISO Open Access Same-time Information System (OASIS), ending the twentieth (20 th ) day of each month. SCE then calculates the NSCR within five days of the first of the month to allow the CAISO to finalize the day-ahead DLAP prices. This rate will be applied to all eligible net surplus generators, irrespective of their rate class. The NSCR will be posted on SCE s website and updated monthly. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 2952-E Megan Scott-Kakures Date Filed Oct 21, 2013 Decision Vice President Effective Jul 10, H11 Resolution E-4610

20 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E Schedule NEM Sheet 9 NET ENERGY METERING SPECIAL CONDITIONS 3. Billing: j. If interval meters are employed, the total energy of the aggregated intervals over a billing period is valued before offsetting energy charges with energy credits, in each aggregated TOU period separately, when applicable. 4. Customers with a Multiple Tariff Generating Facility: Where a Customer utilizes a Multiple Tariff Generating Facility (defined in Special Condition 6.h); the applicable provisions of this Special Condition 4 shall apply. Additionally, where this Special Condition conflicts with any other Special Condition within this Schedule, the provisions contained in this Special Condition shall prevail. Multiple Tariff Generating Facilities consisting of generating facilities served under Schedule FC-NEM or BG-NEM that receive service pursuant to Special Condition 4.a below are not eligible to concurrently participate in an NEM Aggregation arrangement pursuant to Special Condition 5 of this Schedule. (N) (N) a. A Customer utilizing a Multiple Tariff Generating Facility consisting of all NEM Renewable Electrical Generating Facility, where at least one NEM Renewable Electrical Generating Facility is served under this Schedule shall adhere to the following: 1. Where a Customer chooses not to install separate Net Generation Output Metering (NGOM) on each group of NEM Eligible Generators (as defined in Special Condition 6), all energy exported to SCE s system from any group of NEM Eligible Generators shall receive only the generation component energy credits per the Customer s OAT. The NEM credits will not include any portion of the Delivery Service energy rate components, or any other component of the Customer s OAT, unless separate NGOMs are installed on each group of NEM Eligible Generators. 2. Where a Customer chooses to install NGOM on a group of NEM Eligible Generators, the NGOM must conform to the requirements set forth in SCE s Rule 21, Section J. The total energy exported to SCE s system, as determined at the point of common coupling meter (SCE billing meter) will be allocated to each group based on its NGOM reading to the total of all NGOM readings. As an example, if the SCE billing meter registered 900 kwh of energy exported to SCE s system, and during that same time period a group of NEM Eligible Generators (group 1) had an NGOM registration of 2,000 kwh, while another group of NEM Eligible Generators (group 2) had an NGOM registration of 4,000 kwh, then group 1 would be allocated 300 kwh, and group 2 would be allocated 600 kwh, for NEM crediting purpose. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 2952-E Megan Scott-Kakures Date Filed Oct 21, 2013 Decision Vice President Effective Jul 10, H11 Resolution E-4610