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Late Amendments Could Alter Existing Solar Contracts

September 9, 2013
Last minute amendments to AB 327 (Perea) allow the Public Utilities Commission (PUC) to change the terms of an existing Net Energy Metering (NEM) contract after 2020.
 
NEM contracts affected by this bill are those agreements between investor-owned utilities and customer-owned renewable energy systems. Some in the solar industry believe that AB 327 would inject uncertainty into the solar market and unfairly create an opportunity for the PUC to change the terms of an existing customer-owned solar system contract, thus increasing costs for the customer.
 
Numerous cities are in support of the measure as currently drafted, however, these amendments have prompted several cities to voice concerns with the NEM portion of AB 327 and the potential for the financial terms of the contract to change. 
 
The League wants cities to be aware of this issue to as it is reviewed to determine if the organization needs to respond to this bill.
 
If your city invested in solar systems on city owned buildings, please read the bill text and analysis available here. For questions, please contact League Legislative Representative Jason Rhine at (916) 658-8264.


 
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