Hetch Hetchy Power and CleanPowerSF are programs of the San Francisco Public Utilities Commission (SFPUC), an enterprise department of the City and County of San Francisco.
OUR MISSION: To provide our customers with high-quality, efficient and reliable water, power and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care.
525 Golden Gate Avenue, 7th Floor
San Francisco, CA 94102
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Date: November 14, 2023
To: Tim Paulson, President
Anthony Rivera, Vice President
Newsha Ajami, Commissioner
Sophie Maxwell, Commissioner
Kate Stacy, Commissioner
Through: Dennis Herrera, General Manager
Barbara Hale, Assistant General Manager, Power
Catherine Spaulding, Deputy AGM, Power – Programs and Planning Michael Hyams, Deputy AGM, Power – CleanPowerSF
From: Cheryl Taylor, Customer Data and Billing, CleanPowerSF Daniel Young, Manager, Customer Programs
Re: Net Energy Metering and Shared Renewable Energy Annual Report to the Commission for Fiscal Year 2022-2023
Attached is the Net Energy Metering and Shared Renewable Energy Annual Report for Fiscal Year 2022-2023. Commission Resolutions 16-0086 and 16- 0072 direct the General Manager to report annually on the performance of Hetch Hetchy Power’s Net Energy Metering/Shared Renewable Energy program, and CleanPowerSF’s Net Energy Metering program.
CleanPowerSF / Hetch Hetchy Power
Net Energy Metering and Shared Renewable Energy
Annual Report to Commission for FY 2022-2023
Introduction
Hetch Hetchy Power’s Net Energy Metering and Shared Renewable Energy Program and CleanPowerSF’s Net Energy Metering P rogram are two customer program offerings from the SFPUC Power Enterprise that allow customers with on-site renewable energy systems to gain financial credits for the generation of solar electricity not consumed on site.
SFPUC Resolutions 16 -0086 and 16 -0072 direct the General Manager to report annually on the performance of these programs . Speci fically, these resolutions require reporting on the total rated generating capacity enrolled in the program, the amount of net surplus electricity compensation provided to eligible customer- generators under the program, as well as potential program refinements and enhancements that may further protect non -participants from cost shifting and/or improve the ability of the SFPUC to promote the continued development of local renewable energy resources in a financially sustainable manner. Pursuant to those resolutions, th is report for Fiscal Year 2022-2023 is presented for the Commission’s review.
Hetch Hetchy Power’s Net Energy Metering and Shared Renewable Energy Program In Fiscal Year 2022-2023, Hetch Hetchy Power continued to have two customers, Pier 1 and Fort Mason, participating in the Shared Renewable Energy program, with an estimated total solar capacity of 455 kilowatts (kW-DC). The solar systems credited several benefitting accounts. The solar system at Pier 1 generated 198,007 kilowatt-hours (kWh), which was credited to five benefitting accounts. Fort Mason’s solar array generated 316,734 kWh, of which 233,925 kWh was credited to two benefitting accounts.
Fort Mason’s participation in the program ended on April 30, 2023. This is because Fort Mason no longer qualifies for net energy metering as specified in Hetch Hetchy Power’s 2023 Rate Schedule , since they are not located where SFPUC operates the local distribution system and is able to use exported energy to serve SFPUC customers . The Power Enterprise is currently reviewing generator interconnection applications for customers located within SFPUC’s service area who in the future may be interested and eligible participants for the Net Energy Metering and Shared Renewable Energy Program.
2 CleanPowerSF’s Net Energy Metering Program
In Fiscal Year 2022-2023, CleanPowerSF served 10,645 Net Energy Metering (NEM) customers with an estimated total solar generating capacity of 53,755 kW-DC.1 NEM customers represented 3.17 percent of all active CleanPowerSF customers. As of May 2023, participating NEM customers generated 4,560,648 kWh in excess electricity. A total of $ 348,113 in net surplus compensation was provided to 2,750 eligible net generators under the program. This means about 20 percent of all participating NEM customer accounts generated more solar electricity than they consumed during the year. As of October 16, 2023, an estimated 300 NEM customers have requested to cash out their NEM credit balance following the May 2023 True Up. Staff anticipates that the remaining 2,450 net generators will receive a “roll over” bill credit for their net surplus compensation.
In December 2022, the California Public Utilities Commission adopted a successor to the net metering tariff, called the Net Billing Tariff (NBT) . The CPUC aimed to address the following concerns/goals with the NBT decision:
• Improve equity – currently non-solar customers (including low -income customers ) pay higher rates to support NEM program costs
• Address affordability concerns due to the NEM cost shift, which would grow without action • Improve alignment of costs and benefits for NEM programs • Incentivize the adoption of energy storage to improve grid stability
In response, PG&E has proposed its successor tariff and branded it the Solar Billing Plan . The primary change from NEM to the Solar Billing Plan is that excess generation will be credited to the customer at a rate that more closely reflects the wholesale market value of the electricity generated by the solar rather than a full retail rate . PG&E’s Solar Billing Plan tariff is expected to be approved on November 30 and effective on December 15, 2023.
Staff plan to accommodate PG&E’s SBP tariff customers under the current CleanPowerSF NEM tariff while continuing to assess the impact of adopting an NBT -like tariff for CleanPowerSF. In addition, staff anticipate bringing clarifying changes to CleanPowerSF’s current NEM tariff to the Commission in 2024.
1 CleanPowerSF’s estimated total solar capacity was calculated using the CleanPowerSF Interconnection Report 2023 Q2, produced by PG&E.