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 MI
SSION: 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
T 415.554.0725
TTY 415.554.3488
sfpuc.org/power
November 19, 2024
To: Kat
e Stacy, Commissioner
Joshua Arce, Commissioner
Avni Jamdar, Commissioner
Steve Leveroni, Commissioner
Through: Denni
s Herrera, General Manager
Barbara Hale, Assistant General Manager, Power
Catherine Spaulding, Deputy AGM, Power – Customers and Planning Michael Hyams, Deputy AGM, Power – CleanPowerSF and Power Resources From: C
heryl Taylor, Manager, CleanPowerSF Operations
Daniel Young, Manager, Customer Programs
Re: Net
Energy Metering and Shared Renewable Energy Annual
Report to the Commission for Fiscal Year 2023-2024
Att
ached is the Net Energy Metering and Shared Renewable Energy Annual Report for Fiscal Year 2023-2024. 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 2023-2024
Introduction
Hetch Hetchy Power’s Net Energy Metering (NEM) and Shared Renewable Energy (NEM -ShaRE) Programs and CleanPowerSF’s Net Energy Metering Program are 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.
S
FPUC Resolutions 16 -0086 and 16 -0072 direct the General Manager to report annually on the performance of these programs. Specifically, 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, this report for Fiscal Year 2023-2024 is presented for the Commission’s review.
Hetch Hetchy Power’s Net Energy Metering and Shared Renewable Energy Programs In Fiscal Year 2023 -2024, generation from three customer -owned solar systems participating in Hetch Hetchy Power's NEM and NEM -ShaRE Programs resulted in a total of 167,700 kilowatt-hours (kWh) in NEM credits applied to the program participants’ respective energy bills. Staff are continuing to review generator interconnection and NEM applications for customers located within Hetchy Hetchy Power’s service area who in the future may be interested and eligible participants for the Net Energy Metering and Shared Renewable Energy Programs.
CleanPowerSF’s Net Energy Metering Program
In Fiscal Year 2023- 2024, CleanPowerSF served 12,609 Net Energy Metering (NEM) customer accounts with an estimated total solar capacity of 65,144 kilowatts (direct current).1 NEM customers represented
3.51 percent of all active CleanPowerSF customers. As of May 2024, participating NEM customers generated 4,554,620 kWh in ex cess electricity. A total of $ 407,645 in net surplus compensation was provided to 3,056 eligible net generators, or about 24 percent of the customers receiving NEM service 1 CleanPowerSF’s estimated total solar capacity was calculated using the CleanPowerSF Interconnection Report 2024 Q2, produced by PG&E. Service addresses were used to link CleanPowerSF customer accounts to the associated interconnection record which includes system size. An average was added to the total capacity of known interconnection to account for the capacity of those CleanPowerSF NEM accounts that could not be associated with a specific interconnection record (approximately eight percent).
2 from CleanPowerSF. As of October 18, 2024, an estimated 659 NEM customers have requested to cash out their NEM credit balance following the May 202 4 True Up. The remaining 2,397 net generators will receive a “roll over” bill credit for their net surplus compensation.
Starting in April 2024 , PG&E launched the Solar Billing Plan (SBP) , a successor to PG&E’s NEM tariff, in response to California Public Utilities Commission (CPUC) Decision 22-12-0056. The primary change from NEM to SBP is that excess generation is credited to the customer at a rate that more closely reflects the wholesale market value of the electricity produced rather than a full retail rate . The CPUC made this change to PG&E’s NEM program to reduce a significant and growing cost shift from participants of PG&E’s NEM program to non-participating ratepayers and thus improve affordability for non-participating ratepayers.
SFPUC Resolution 24 -0117 modified CleanPowerSF’s NEM tariff to accommodate PG&E’s SBP tariff customers under the current CleanPowerSF NEM tariff. S taff have also begun an assessment of the impact of adopting an SBP-like tariff for CleanPowerSF. Staff anticipates completing the assessment and conducting a public outreach and education campaign from late -2024 through early -2025. Following public outreach, staff may bring a recommendation for the Commission to adopt a SBP-like t ariff for CleanPowerSF in mid-2025.