4/28/2022
1 RiversideCA.gov
1 RiversideCA.gov
SELF-GENERATION PROGRAM
City Council
May 10, 2022
Riverside Public Utilities
RiversideCA.gov
2 Current Net Energy Metering (NEM) Program
1. Governed by Public Utilities Code 2827 pertaining to customer renewable electrical generation facilities including solar and wind a. Required until total installations meet 5% of peak demand (32 MW for RPU)
2. Net Energy Metering Billing
a. Billed on net energy delivered to customer and excess energy received by RPU from customer
3. Net Energy Surplus Compensation
a. Customer is compensated for net exce ss energy sent to RPU at end of year b. Compensation rate is RPU’s average cost of renewable energy
BACKGROUND
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2 RiversideCA.gov
3 http://greenriverside.com/map-links/green-map.asp
0 1,000
2,000
3,000
4,000
5,000
6,000
Annual Interconnections as of June 30, 2021
Existing Interconnections New Interconnections
4,797 NEM Customers
37.5 MW
CUSTOMER INTERCONNECTIONS
RiversideCA.gov
4 Continued to average 550 solar installations per year from FY 14/15 through FY 20/21, although RPU rebates and costs have declined. $0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
FY
09/10
FY
10/11
FY
11/12
FY
12/13
FY
13/14
FY
14/15
FY
15/16
FY
16/17
FY
17/18
FY
18/19
FY
19/20
FY
20/21
Installation Costs Per kWh
Rebates
Rebates and Installation Costs
Solar Rebates Residential Installation Costs per kWh
SOLAR INTERCONNECTIONS
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5 1. Cost shift from those with self-g eneration to those without self- generation under the current NEM program
a. Solar customers receive full retail price for electricity they export to the grid
b. The retail rate exceeds the value of excess electricity exported to the grid. The retail energy rate includes fixed utility costs that are borne by all customers
c. Costs embedded in rates are transferred to those who cannot install solar
WHY IS IT TIME TO CHANGE?
RiversideCA.gov
6 2. Permitted to change struc ture under Public Utilities Code 2827 due to capacity of installed solar
a. State mandated program particip ation of 5% of system peak of 640 MW = 32 MW
b. 37.5 MW of solar installations as of June 30, 2021
WHY IS IT TIME TO CHANGE (CONT.)
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4 RiversideCA.gov
7 1. Continue to make self-generation including solar, wind, and other renewable energy accessible to our community
2. Ensure that there is greater equity across community by reducing cost shift to customers without self-generation
a) Cost shift under current program could reach $30 million by 2037- as referenced in 2018 Integrated Resource Plan
3. Simplify application process by eliminating service agreement
4. Make the process more transparent and easier to understand
5. Increase the growth of sustainabl e self-generation within the community and lower dependence on fossil fuel fired generation
6. The revised program will be more inclusive and capture benefits created from new and future technology for renewable generation
BENEFITS TO UPGRADE THE PROGRAM
RiversideCA.gov
8 Residential customer with 1,200 kWh average usage and solar sized at 90% of average usage 7.4 kW AC System $223
$47
$97
$50
BEFORE SOLAR CURRENT NEM PROGRAM SELF-GENERATION
PROGRAM
RESIDENTIAL MONTHLY BILL COMPARISON
Customer Bill Cost Shift to Non-Solar Customers
Electric rates effective as of 1/1/2022
BILL COMPARISON
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9 Commercial customer with 4,600 kWh average usage and solar sized at 80% of average usage 25.20 kW AC System $781
$188
$341
$153
BEFORE SOLAR CURRENT NEM PROGRAM SELF-GENERATION
PROGRAM
COMMERCIAL MONTHLY BILL COMPARISON
Customer Bill Cost Shift to Non-Solar Customers
Electric rates effective as of 1/1/2022
BILL COMPARISON
RiversideCA.gov
10 Proposed principles:
1. Ensure that customers' renewable se lf-generation continues to grow in a sustainable and equitable manner.
2. Maintain customer and community we ll-being as priority in the self- generation program.
3. Continued commitment to:
a. Transparency and engagement by maintaining communication with all stakeholders.
b. Meeting environmental goals wh ile maintaining a balance between climate policies, reliability, and competitive rates.
c. Maximizing the value of renewable self-generation across all Utility customers (with or without self-generation).
SELF-GENERATION PROGRAM PRINCIPLES
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6 RiversideCA.gov
11 In addition to in-person and virtual meetings, outreach and materials included:
1. Suite of bilingual outreach materials including: ‘Tell Us What You Think’, ‘Keywords’ and side-by-side outline of the existing and proposed programs
2. Media page with content mirroring the Self-Generation materials
3. Social media posts on Facebook, Instagram and Twitter linking to the media page
4. Residential direct email
5. A bilingual video reviewing the proposed changes hosted online
CUSTOMER ENGAGEMENT
RiversideCA.gov
12 Current NEM Program Proposed Self-Generation Program Renewable Electric Generation Facility
including solar, wind and other renewable
resources
No change
Maximum size limit 1 MW Maximum size limit 5 MW
Size limit to historical average usage Consider relaxing size limit up to 150% of annual energy consumption
No provisions for oversizing Variance form for oversizing with proof of purchase or installation
Formal agreement No agreement, qualify upon interconnection Residential 3 tier rate Residential time of use rate
Commercial and Industrial Rates No change
Production meter required Production meter optional
PROPOSED SELF-GENERATION PROGRAM
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7 RiversideCA.gov
13 Current NEM Program Proposed Self-Generation Program Net billing- energy delivered to customer
and excess energy received by RPU netted
prior to billing
Bi-directional billing- energy delivered billed at
applicable rate and excess energy received by
RPU compensated at avoided cost of energy
Annual settlement and compensation for
surplus energy
Monthly settlement
Net surplus energy compensation at RPU’s
renewable cost of energy - $0.0730 per kWh
Energy sent back to the grid no longer nets at
the retail rate with surplus energy being
compensated annually.
Nets energy at the retail rate. Any excess
banked energy at the end of the year is
compensated at the net surplus energy
compensation rate.
Compensation for energy received by RPU at
avoided cost of energy - ~$0.0722 per kWh.
Based on time of day, if applicable, according
to customer’s rate schedule.
Eligible for program revisions after 32 MW Pr ogram cap at 64 MW including current NEM program interconnections
PROPOSED SELF-GENERATION PROGRAM (CONT.)
RiversideCA.gov
14 Many Publicly-Owned Electric Utilities in California have transitioned to new programs:
Utility Bidirectional
Billing
Buy Back Rate =
Avoided Cost of Energy Method ACOE Applied
RPU Self-Generation Yes Yes TOU (if rate schedule is time differentiated)
Anaheim Yes Yes TOU
Azusa Yes Yes TOU
Palo Alto Yes Yes Non-TOU
Redding Yes Yes Non-TOU
Turlock Irrigation District Yes Yes TOU
Lodi Yes Yes Non-TOU
Shasta Lake Yes Yes Non-TOU
Roseville Yes Yes Non-TOU
Imperial Irrigation District Yes Yes TOU
UTILITY PROGRAMS
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15 1. Close current NEM program as of November 1, 2022
a. Customers must receive Permit Completion no later than October 31, 2022.
2. Current NEM program customers remain on current NEM
program until they no longer receive service at the premise, increase the original renewable generation facility
capacity by more than 25%, or install a new self-generation facility at the premise.
Note: The current NEM program agreement does not transfer to a new customer
PROPOSED TRANSITION
RiversideCA.gov
16 1. Electric Rule 22 “Distributed G eneration Facilities Interconnection” a. Rule for the interconnection, operating and metering requirements for generation facilities to be connected to RPU’s distribution system.
2. Revised Electric Rule 22 to address the Self-Generation Program a. 5 MW maximum generation facility rating to participate in the Self-Generation Program with a limit of 1.0 MW maximum export.
RPU
Interconnection
Submit
Request
Initial
Review
Supplemental
Review
Engineering
Facilities Study
Interconnection
Approval
Construction &
Execution
Qualify for simplified connection
ELECTRIC RULE 22
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17 Board of Public
Utilities Customer
Relations/Finance
Committee
August 16, 2021
Community
Outreach
November 2021
through
February 2022
Board of Public
Utilities Approval
February 28, 2022
City Council
Land Use,
Sustainability,
and Resilience
Committee
Recommended
Approval
April 11, 2022
City Council
Public Hearing
and
Consideration
May 10, 2022
40 TIMELINE
RiversideCA.gov
18 #4 Environmental Stewardship
#5 High Performing Government
#6 Infrastructure, Mobility & Connectivity
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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19 That the City Council:
1. Conduct a public hearing to receive public input related to the proposed changes to Schedule NEM, “Net Energy Metering for Renewable Electrical Generation Facilities”, Electric Rule 2 2 “Distributed Generation Facilities Interconnection”, and the proposed S chedule Self-Gen, “Self-Generation Program for Renewable Electrical Generation Facilities”; and
2. Adopt a resolution approving the changes to Schedule NEM, “Net Energy Metering for Renewable Electrical Generation Facilities”, Electric Rule 22 “Distributed Generation Facilities Interconnection”, and the proposed Schedule Self-Gen, “Self-Generatio n Program for Renewable Electrical Generation Facilities”.
RECOMMENDATIONS
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