PG&E’s General Market Virtual Net Metering Schedule NEMV

1. PG&E’s General Market Virtual Net Metering Schedule NEMV An Overview Harold Hirsch Sr. Regulatory Analyst PG&E December 8, 2011 The information in this presentation is believed to be accurate and consistent with PG&E’s proposed NEMV tariff. In the event that there are any differences between the tariff and these sides, the tariff sheets are correct, unless otherwise noted. Also the NEMV tariff is subject to additional changes from time to time, as directed by the CPUC.

2. PG&E’s New Schedule:NEMV – Solar And/Or Wind Virtual Net Energy Metering For Multiple Tenants Served At The Same Service Delivery Point • Applicability: • multiple, individually metered tenants at the same Service Delivery Point with: • A Generator Account, and • Benefitting Account(s) • Collectively as a “NEMV Arrangement”

3. A Generator Account: • consists of a schedule NEM eligible gen; • shares the SDP, meter with Benefitting Accounts; • has only generator load; and • takes bundled service, (generator owner or their designee is “Owner”); Benefitting Account(s): • Takes bundled service • Is individually metered tenant or common area account; • Has no other generator on the account; • Shares the Service Delivery Point with generator, and • Is not on a demand response program, another virtual net energy metering program or RES-BCT

4. Shared NEM Cap • Available on a first-come, first-served basis to Customers that provide: • NEMV application & interconnection agreement package • City final inspection Until such time as the total rated generating capacity of NEM, NEMV and NEMVMASH customers, exceeds 5% of PG&E’s aggregate customer peak demand. (Calculation as described in Rate Schedule NEM), until December 31, 2015, or until all funds available for the incentives have been allocated, whichever comes first.)

5. Other Applicability Requirements (Same as NEM) Network Grid Limitations • Owner Obligations • Modifications to Eligible Generating Facility • Change in Owner Rates • The Benefitting Account rate and charges based on OAS • Billed on net metered kWh supplied by PG&E

6. Metering • Benefitting Account: • Meter suitable to OAS • Generator Account: • Output meter - will use either: • interval meter (15m), if required by PG&E. Owner pays cost. • a “time-of-use” (TOU) meter, if PG&E is able to allocate the Credits.

7. Metering (continued) • For TOU meter, Owner has 2 options: • Assumes generator account has no non-generator load. • Owner furnishes meter socket for generation meter • PG&E has unrestricted access to meter and socket.

8. One-Time Setup Charge: • PG&E bills Owner one-time: • Initial Setup charge of $12.00/Benefitting Account (Appendix A) • modification charge of $3.00/ Benefitting Account for changed allocation (new Appendix A) • Service Delivery Point and NEMV Arrangement Assessment charge of $550.00. • A 2nd NEMV Arrangement assessment, is $91/gen acct.

9. Allocation • Annual Eligible Energy Credit: the total kWh exported by the Generator over the Relevant Period • The Owner establishes % Annual Eligible Energy Credits allocated to the Benefitting Accounts (Appendix A) . • Once allocated, Credit $/Benefitting Account calculated per OAS.

10. Monthly Energy Charge/Credit For an OAS with Baseline Rates • net consumer: • Customer usage – (A% x Eligible Generating Facility’s output) = net consumption • net producer: • (A% x Eligible Generating Facility’s output) – Customer Usage = net production • net consumption billed on Benefitting Account’s OAS $/kwh . • net production valued at the equivalent appropriate tier level OAS $/kwh (Residential).

11. Monthly Energy Charge/Credit For an TOU OAS • net consumer: (for a TOU period) • Customer TOU usage – (A% x TOU Eligible Generating Facility’s output) =net consumption • net producer: • (A% x TOU Eligible Generating Facility’s output) – Customer TOU usage = net production • net consumption & net production valued monthly: • TOU period net consumer: bill per OAS TOU $/kwh. • TOU period net generator: value per OAS TOU $/kwh.

12. Benefitting Accts (billed like NEM) • The net balance for the net kWh consumed paid monthly. • Net consumption is valued at same $/kwh as net generation. • Residential Accounts have monthly OAS minimum charges • Monthly, the value of any net generation kWh is carried over to next monthly billing cycle and appears as a credit, until the end of the Relevant Period. • if net production = net consumption over all TOU periods, use OAS Tier 1

13. Relevant Period (same as NEM) • Any 12 monthly billing cycles commencing on the date PG&E provides the Owner approval to operate the Generator…and on each anniversary thereafter. • If a Benefitting Account closes or transfers to a new party (change of party), the relevant period ends. • After a Change of Party, a new Relevant Period starts on the date the new Customer takes service

14. Changing Benefitting Accounts/Allocation • The Owner may add, remove Benefitting Accounts, and/or change the Allocation by submitting: • (i) a revised Appendix A with the new allocations and • (ii) a new Appendix B, and • (iii) payment of the one-time allocation modification charge. • at least 30 business days prior to next the Billing Cycle start date, for it to be effective upon the first day of the next Billing Cycle. There will be no change to any of the (remaining) Benefitting Accounts’ existing Relevant Period. • Owner must notify all Benefitting Accounts.

15. Owner terminates • If an Owner terminates service then the Relevant Period for all Benefitting Accounts will end. • A Change of Owner will not result in a new Relevant Period.

16. True Up(same as NEM) • A true up occurs at end of each Benefitting Account’s Relevant Period. At true-up: • a) The Customer will pay all charges owed at that time; • b) No payments shall be made for credits remaining after the true-up; but AB920 NSC may be issued if the Benefitting Account’s allocation of kWh from the Generator exceeds the kWh consumed over Relevant Period • If residential minimum bill applies at the true up for a Bundled Service Benefitting Account, no further amounts will be billed to that Customer as a result of the true up.

17. Billing Information • net kWh consumption with each bill. • current monetary balance owed for net kWh consumed since the start of the current Relevant Period.

18. OAS Payment Option • Small Customer Benefitting Accounts must pay monthly, unless they specifically request to pay annually, for the net energy (kWh) consumed. • Commercial Benefitting Accounts other than Small Commercial, must pay monthly.

19. Net Surplus Compensation (AB 920) • Net Surplus Electricity is defined as all electricity generated byALLOCATED TO an eligible Benefitting Account Customer measured in kilowatt-hours over a Relevant Period that exceeds the amount of electricity consumed by that eligible Benefitting Account Customer • A NEMV Benefitting Account Customer who has Net Surplus Electricity will be known as a Net Surplus Generator. • (a) All bundled NEMV Net Surplus Generators are eligible to receive NSC if they have a true-up on, or following, the effective date of schedule NEMV.

20. Calculating NSC(same as NEM) • The NSC Rate is defined as the simple rolling average of PG&E’s default load aggregation point (DLAP) price from 7 a.m. to 5 p.m., for a 12-month period. PG&E shall use the NSC Rate as the value of the electricity portion of its net surplus compensation rate. • PG&E calculates the NSC Rate each month. It is effective on the 1st day of that month and PG&E will use it in the NSC Calculation for any Net Surplus Generators with a Relevant Period completed in that month (True-Up Month). • The DLAP Cutoff Date will be defined as the twentieth (20th) day of the month prior to the True-Up Month. • PG&E will wait 5 days after the DLAP Cutoff Date for the CAISO to have time to finalize the day-ahead PG&E DLAP prices. The NSC Rate will then be calculated as the simple average of the prices for all hours between 7 a.m. and 5 p.m. over a one (1) year period ending on the DLAP Cutoff Date. • PG&E will include a Renewable Attribute Adder (RAA) once the CEC determines the implementation methodology. • NSC is calculated by multiplying any Net Surplus Electricity by the NSC Rate above.

21. Options for receiving NSC(same as NEM) • A NEMV Customer with NSC will automatically have their NSC applied to any amounts owed to PG&E and then may choose to: • (1) take no action and roll any remaining NSC amounts forward to offset subsequent PG&E charges; or • (2) request that PG&E issue a check if the NSC remaining amount is greater than one dollar ($1). A Customer can select this option by calling PG&E, If the Customer is closing all their accounts with PG&E, PG&E will automatically send a check; or. • (3) elect not to receive any NSC by completing and submitting form 79-1130 (Customer Request Form not to Receive Net Surplus Compensation) to PG&E to confirm that they do not want to participate. In this case PG&E will zero out any NSC the NEMV Customer may be otherwise eligible to receive. • QF Status –Since the Generator Accounts serving all NEMV Customer-generators currently meet the requirements for a qualifying facility exempt from certification filing at the FERC, no further documentation is required at this time.

22. Generator Size • the Generator Account system must be intended primarily to offset part or all of the Benefitting Account Customers’ own electrical requirements. • Systems that are sized larger than the electrical requirements are not eligible for NEMV and therefore, are not eligible for NSC either.

23. Re-inspection(for Gen Acct same as NEM) • If the NEMV generator account Owner enters into a new net energy metering contract, the owner needs to complete & submit an Inspection Report unless the generator/meter have been installed or inspected within the previous three years. • The NEM Inspection Report needs to be prepared by a California licensed contractor (not the Owner or operator). A California licensed electrician needs to perform Inspection Report. • If required, the Customer shall submit the Inspection Report within 90 days of the Customer becoming the Customer, or else agrees to disconnect their Generating Facility and inform PG&E it no longer will take service on NEMV. By signing the interconnection agreement, the Inspection Report is incorporated into it.

24. Thank You