NET ENERGY METERING TERMS AND CONDITIONS

APPLICABILITY

This Schedule Net Energy Metering (NEM-San José Clean Energy) is applicable to enrolled San José Clean Energy customers who use a Renewable Electrical Generation Facility.

To be eligible, the San José Clean Energy customer must satisfy the requirements of Pacific Gas and Electric Company’s (PG&E) Electric Schedule NEM or NEM2 , must take service on a PG&E NEM Tariff Schedule, and install a Renewable Electrical Generation Facility.

This Schedule is available upon request, on a first-come, first-served basis to eligible San José Clean Energy customers that provide PG&E with a completed PG&E NEM Application and comply with all PG&E NEM requirements as described in the following PG&E Electric Schedules: NEMV or NEM2V (Virtual Net Energy Metering), NEMVMASH or NEM2VMSH (Virtual Net Energy Metering for Multifamily Affordable Housing), and Multiple Tariff facilities as described by PG&E Electric Schedule NEM and NEM2.

PG&E NEM Tariff Terms and Conditions Apply. San José Clean Energy NEM customers are also subject to the terms, conditions, and billing procedures of PG&E for services other than electric generation.

TERRITORY

This schedule is available throughout the City of San José.

DEFINITIONS

“Annual True-up Period” means the twelve-month period commencing in May of each year.

“Net Electricity Consumer” means a NEM-San José Clean Energy customer that generates less electricity from its Renewable Electrical Generation Facility during an Annual True-up Period than is delivered by San José Clean Energy to the customer during the same period.

“Net Electricity Generator” means a NEM-San José Clean Energy customer that generates more electricity from its Renewable Electrical Generation Facility during an Annual True-up Period than is delivered by San José Clean Energy to the customer during the same period.

“Net Surplus Electricity” means all electricity generated by an eligible customer measured in kilowatthours (kWh) over a twelve-month period that exceeds the amount of electricity consumed by that eligible customer.

“Net Surplus Electricity Compensation” means a per kWh rate offered to the Net Electric Generator for Net Surplus Electricity.

“Renewable Electrical Generation Facility” means a facility that generates electricity from a renewable source listed in California Public Resources Code Section 25741(a)(1) and that is:

  1. located on the customer’s owned, rented, or leased premises;
  2. within the capacity limits described in applicable PG&E NEM Tariff Schedule;
  3. interconnected for parallel operation with the PG&E distribution system; and
  4. sized principally to offset part or all of the customer’s own on-site electrical requirements.

RATES, BILLING, AND ANNUAL TRUE-UP PROCESS

Rates and Monthly Billing for San José Clean Energy Service

Each NEM-San José Clean Energy customer will receive a monthly billing statement reflecting net electricity consumption, charges incurred, credits generated during the current billing period, and remaining generation bill credits from previous billing cycles. The monetary value of any excess generation during a monthly billing cycle shall be calculated as follows:

  • For Customers on a Flat Rate Tariff: If during a monthly billing cycle, the quantity of electricity generated by the customer’s Renewable Electrical Generation Facility and delivered to San José Clean Energy is greater than the quantity of electricity delivered to the customer by San José Clean Energy, the value of the excess kilowatt-hours (kWh) produced shall be calculated according to the electricity usage charges of the customer’s otherwise applicable rate schedule.
  • For Customers on a Time of Use (“TOU”) Tariff: If during any TOU period, the quantity of electricity generated by the customer’s Renewable Electrical Generation Facility and delivered to San José Clean Energy is greater than the quantity of electricity delivered to the customer by San José Clean Energy, the value of the excess kilowatt-hours (kWh) produced shall be calculated based on the applicable time-of-use rate when the excess kilowatt-hours were produced. The customer will receive a net bill credit if the sum of San José Clean Energy electric generation charges and credits across all applicable TOU periods during the billing cycle is a net positive value.
  • All San José Clean Energy charges under the customer’s otherwise applicable rate schedule shall be in effect and all charges shall be due and payable on the due date identified in each billing statement.
  • All Residential and small commercial NEM-San José Clean Energy customers may elect to receive Annual Billing, under which San José Clean Energy charges for the preceding Annual True-Up Period become due once per year, after the Annual True-Up (see "Annual True-Up and Settlement" section below). Eligible small commercial customers are defined as those having a maximum monthly peak demand of less than 20 kilowatts.

Any net bill credits reflected on the customer’s bill will be carried over for use in subsequent billing period(s) throughout the Annual True-up Period until such credits are exhausted.

Annual True-Up and Settlement

On an annual basis, San José Clean Energy will determine whether a participating customer is a Net Electricity Consumer or a Net Electricity Generator during the preceding Annual True-up Period. For new customers, the Annual True-up Period for the first year will cover the period starting on the date that the customer commenced service under this NEM Schedule through the customer’s April billing cycle. In cases where a new customer has received San José Clean Energy NEM service for less than 10 billing cycles in their first Annual True Up Period, the Annual True Up Period will be extended to the end of the following April billing cycle.

When the customer is a Net Electricity Consumer at the end of the Annual True-up Period, any net bill credit balances remaining at that time will be reset to zero for the beginning of the next True-Up Period.

When the customer is a Net Electricity Generator at the end of the Annual True-up Period, the customer is eligible to receive Net Surplus Electricity Compensation for any Net Surplus Electricity during the prior twelve-months.

The Net Surplus Electricity Compensation rate for each kilowatt-hour of Net Electricity Surplus during the True-up Period is: $0.03552 per kWh

San José Clean Energy will provide Net Electricity Generators their Net Surplus Electricity Compensation at the end of the Annual True-Up Period by bill credit that will apply to future San José Clean Energy charges. In lieu of receiving a bill credit from San José Clean Energy, customers may elect to receive payment by check. Customers electing to receive a check must indicate their preference within 30 days of the first bill following the end of the Annual True-Up Period.

Renewable Energy Credits and Environmental Attributes

The customer will retain ownership of all RECs and environmental attributes associated with its usage of electricity produced by the eligible Renewable Electrical Generation Facility.

RETURN TO PG&E BUNDLED SERVICE

If a NEM-San José Clean Energy customer opts-out of the San José Clean Energy program and returns to PG&E bundled service, that customer may request that San José Clean Energy settle any remaining net generation credits on the account, provided the request is received within 90 calendar days of the return to PG&E service. The settlement method will be the same as the Annual Settlement process set forth in "Annual True-Up and Settlement" section above.

If a Net Generator, the customer will be compensated for all net excess electricity received by San José Clean Energy at the applicable Net Surplus Electricity Compensation rate.