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W A T E R I E N E R G Y I l I E E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T T I I T T F $ BOARD OF PUBLIC UTILITIES DATE: December 3, 2010 ITEM NO: A SUBJECT: PUBLIC HEARING-PROPOSED CHANGES TO THE NET ENERGY METERING RATE FOR SOLAR OR WIND TURBINE ELECTRIC GENERATING FACILITIES, ESTABLISH A NEW FEED-IN TARIFF RATE FOR RENEWABLE ENERGY GENERATING FACILITIES, CLOSE THE ELECTRIC DOMESTIC TIME-OF-USE RATE TO NEW CUSTOMERS, AND MODIFY ELECTRIC RULES 10 AND 11 ISSUE: That the Board of Public Utilities consider the proposed changes to the Electric Net Energy Metering Rate for Solar or Wind Turbine Electric Generating Facilities(Schedule NEM), establish a new Feed-In Tariff Rate for Renewable Energy Generation Facilities (Schedule FIT), close the Electric Domestic Time-Of-Use Rate (Schedule D-T-O-U)to new customers, and modify Electric Rule 10 Distribution System Additions (Electric Rule 10) and Electric Rule 11 Electric Service Facilities (Electric Rule 11) as outlined in this report. RECOMMENDATIONS: That the Board of Public Utilities: 1. Conduct a public hearing to receive input on the proposed changes to Schedule NEM, a new Schedule FIT, close Schedule D-T-O-U to new customers, and modify Electric Rules 10 and 11 as outlined in this report; 2. Adopt a resolution to modify Schedule NEM, establish a new Schedule FIT, close Schedule D-T-O-U to new customers, and modify Electric Rule 10 and Electric Rule 11; 3. Recommend that the City Council approve changes to the NEM Interconnection Agreement (Standard Contract - NEM) for applicable NEM customers; and 4. Recommend that the City Council adopt the appropriate resolution approving the above. BACKGROUND: In accordance with Public Utilities Code (PUC) Section 2827, the City Council approved Schedule NEM which became effective on July 1, 2002, for eligible customer generators who install a solar or wind turbine generating facility intended to primarily offset part or all of their own electrical requirements. State Assembly Bill 920 (AB 920), enacted on October 11, 2009, and modified the net energy metering (NEM) requirements of PUC Section 2827. Changes to Schedule NEM and the NEM Interconnection Agreement are necessary to comply with modifications to PUC Section 2827 as modified by AB920. State Senate Bill 32 (SB 32), also enacted on October 11, 2009, added PUC Section 387.6, that requires publicly owned utilities (POUs), such as Riverside, establish a feed-in tariff(FIT) for renewable generators located within the POU service territory wishing to sell the renewable generation to the POU. Adoption of a new Schedule FIT is required to comply with SB 32. Changes to Electric Rule 10, Electric Rule 11 and closing Schedule D-T-O-U to new customers are also recommended as part of this process. 1