SDG&E’s Proposal to Implement AB 920. July 9, 2010. Proposal: Guiding Principles. SDG&E developed its Net Surplus Compensation proposal with the following objectives in mind: Compliance with AB 920
July 9, 2010
Implementation: Net Surplus Compensation amount would first be applied to the outstanding account balance and the remaining amount would be rolled over as a bill credit unless the customer requests cash compensation.
Net Surplus Compensation would be calculated the same regardless of whether the customer chooses cash or credit compensation
SDG&E anticipates the ability to implement its proposal by January 1, 2011
SDG&E estimates minimal implementation costs if its proposal is adopted
SRAC energy rates are already used to calculate payments for QFs
A proposed adjustment factor for residential and non-TOU customers is already calculated
Interim REC price is already calculated
Each customer’s net surplus kWh is already tracked in the billing system
Eligibility: Customers must have generated more energy than they consumed at the end of their 12-month true-up period and have remaining generation bill credits on their account in order to receive net surplus compensation.
AB 920 does not provide for compensation unless the customer has excess kWh
If a customer has used up all bill credits at the end of the year, the customer has already been compensated for excess generation at the full retail rate
Compensation in addition to payment at the full retail rate would cause additional cost shifting to non-participating customers beyond current NEM