CPUC's Proposed Changes: What JKB Energy Clients Need to Know
At JKB Energy, we're dedicated to keeping you informed about the latest developments in the energy landscape. The recent release of a proposed decision by the California Public Utilities Commission (CPUC) has significant implications for the renewable energy sector, including our valued clients. Here's a concise breakdown of the key aspects you need to understand:
NEM-3 Version and On-Site Netting:
The proposed CPUC decision has sparked conversations by rejecting the agricultural industry's plea to include on-site netting in NEMA & VNEM. Instead, utilities propose considering all energy generation as exports, compensated at NEM-3 export rates determined by the Avoided Cost Calculator. This alteration could impact farms, schools, and multi-meter customers, potentially limiting their ability to self-consume. At JKB Energy, we're actively advocating for on-site netting inclusion, working alongside Rich Borba, our Director of Policy and Strategy.AB 2143 Implementation:
The CPUC's proposal also delves into the implementation of AB 2143, a law that designates renewable electrical generation projects participating in the NEM tariff after December 31, 2023, as public works projects. This categorization entails complying with prevailing wage standards. Importantly, the proposed decision clarifies that projects are exempt from these requirements if a NEM application is submitted before January 1, 2024, even if physical construction has yet to commence.
Key Takeaways:
The proposed decision may undergo modifications before finalization, but the AB 2143 triggering event is likely settled.
The Department of Industrial Relations (DIR) could offer distinct guidance, influencing triggering dates and other factors.
Insights from the Proposed Decision:
The introduction of an Aggregation subtariff, mirroring the net billing tariff while excluding netting.
Compensation for exported energy is based on avoided costs, with imports billed at retail rates.
Permitted deviations from the net billing tariff, encompassing credit, debit, and crediting methodology.
A transitional pathway from the current NEMA subtariff to the new aggregation subtariff.
Taking Action and Staying Engaged:
Ensure NEM applications are submitted by December 31, 2023.
Collaborate with trade industry groups to address cost concerns and advocate for favorable changes.
Participate in virtual meetings with CPUC and CA Energy Commission to remain informed and voice concerns.
As a trailblazer in renewable energy, JKB Energy is unwavering in our commitment to advancing positive change. Join us in shaping a brighter future, as we navigate through these critical developments. For more information and support, stay connected with us and reach out to rich@jkbenergy.com with any questions.