logo
  • header-content

Pasadena Water & Power

  • Net Surplus Electricity Compensation

    PWP electric customers with net-metered solar PV systems or other qualifying renewable generation are now eligible to receive compensation for any "net surplus electricity" generated by their solar system.

    "Net surplus electricity" is the electricity generated by a qualifying net-metered renewable generation system that exceeds the amount of electricity consumed by the customer in a given period.

    To receive compensation, you must be an eligible PWP electric customer with net-metered renewable generation and complete the  "Net Metering and Surplus Electricity Compensation Enrollment Form." 


    Compensation Rates and Net Metering Options

    Compensation for net surplus electricity will be applied as a credit on the customer's electric bill. A customer may request a cash-out of net surplus compensation, rather than receive a credit, when the value exceeds $50 or when he or she closes the electric account. 

    Your compensation rate will depend on which net metering method you have signed up for and whether you own the renewable energy credits or attributes associated with your solar PV system.

    “Net Metering” is how net surplus electricity is calculated or metered. PWP can calculate a customer’s net surplus electricity annually, monthly (for commercial customers) or bi-monthly (for residential customers.)

    A "renewable energy credit or attribute" is the environmental benefit associated with the renewable electricity generated by a solar PV system. Though uncommon, some solar lease or power purchase agreements transfer ownership of the renewable attributes to the system vendor. 

    Net Metering Options

    PWP offers its solar customers two net metering options: annual or monthly/bi-monthly. Customers who choose monthly/bi-monthly net metering receive a higher net surplus electricity compensation rate. 

    >> Compensation Rate for Annual Net Metering Customers
    At the end of a 12-month period, any net surplus deliveries to the grid will be compensated at a rate equal to PWP's average Energy Charge rate during that year, plus a 2.5¢ per kWh premium for any associated renewable energy credits or attributes.* 

    (PWP's current electric Energy Charge rate  - a line item on the combined utility bill - is 8.7¢ per kWh for residential customers, but it ranges for commercial and time-of-use customers.) 

    >> Compensation Rate for Monthly / Bi-Monthly Net Metering Customers
    Annual net metering is costly for PWP billing operations, and therefore PWP offers an incentive for customers to choose monthly/bi-monthly net metering instead.

    With this option, any net surplus deliveries to the grid will be assessed at the end of the customer's regular billing cycle (monthly for commercial customers, bi-monthly for residential customers) and compensated at a rate equal to the sum of PWP's Energy Charge rate during that billing cycle, a 2.5¢ per kWh premium for any associated renewable energy credits or attributes, plus a 6.6¢ per kWh flat rate incentive.  

    (PWP's current Energy Charge rate - a line item on the combined utility bill - is 8.7¢ per kWh for residential customers, but it ranges for commercial and time-of-use customers.)  

    *Medium and Large Commercial Customers are eligible for annual net metering; however, they must pay the full amount of any electric service charges on a monthly basis 

    Net Metering Enrollment

    You may choose your net metering option by completing and returning the "Net Metering and Surplus Electricity Compensation Enrollment Form." 

    Once you have selected a net metering option using this form, you may not change it for a period of 12 months. 


    ENROLLMENT FORM

    Customers who wish to receive net surplus electricity compensation are required to make a written election using the "Net Metering and Surplus Electricity Compensation Enrollment Form." 

    You may change your election to receive or not receive compensation at any time by re-submitting the enrollment form.  

    There is no deadline for submitting this form. However, the start-date for accruing net surplus electricity will not begin until PWP receives this form.

    If you have previously signed up for compensation as an Annual Net Metering customer using the "Net Surplus Electricity Compensation Request Form" (2010), PWP encourages you to re-enroll using the "Net Metering and Surplus Electricity Compensation Enrollment Form.". This form gives you the opportunity to switch to monthly / bi-monthly net metering, receive a higher compensation rate, and also get compensation for any renewable energy credits. If PWP does not receive the new form from you, you will be compensated at the annual net metering rate and ONLY for any eligible net surplus electricity, not for renewable energy credits. 

     


    DOCUMENTS


    COMMENTS & QUESTIONS

    Please refer to our Frequently Asked Questions on net surplus electricity. If you have any comments, suggestions, or further questions regarding compensation for Net Surplus Electricity, please call the AnswerLine at (626) 744-6970 or email solar@cityofpasadena.net


    Return to Pasadena Solar Initiative Home Page