NEWS: Cost of service and rate design
E3 Study on California NEM

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September 9, 2013

E3 conducted a study to evaluate the ratepayer impacts of the California net energy metering (NEM) program. This study fulfills the requirements of Assembly Bill (AB) 2514 (Bradford, 2012) and Commission Decision (D.) 12-05-036 to determine “who benefits, and who bears the economic burden, if any, of the net energy metering program,” by October 1, 2013. E3 developed three public models to inform the analysis: (1) the E3 NEM Bill Calculator calculates bill savings of NEM customers, (2) the E3 NEM Avoided Cost Model calculates the ratepayer costs that are avoided due to NEM generation, and (3) the E3 NEM Summary Tool combines and displays all of the costs and benefits of NEM.

More information about using the E3 NEM Summary Tool can be found in Appendix F of the draft report. Appendix B contains details on the bill calculations, and Appendix C outlines the avoided cost methodology.

filed under: Cost of service and rate design

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