SDGE/CPUC NEM "grandfather" question

[logdin]

Assumption - 7.8KW pv system purchased and installed in 2013 in SDGE territory. CPUC declared NEM rules at time of installation are good for 20 years, and “grandfathered” against any future NEM changes for 20 years. NEM grandfathered against changes til 2033.


Its 2018, and I sell my home. Certainly, rates, structures, and NEM rules have changed by now.


Does the new homeowner inherit the PV system’s NEM grandfather against changes til 2033, or do they get stuck with whatever rules and rate structures are in place at time of home purchase?

Do I retain any "grandfather" rights for my new residence (up to 2033)?

[sensij]

No time to chase down the citation at the moment, but I'm thinking that interconnect agreements are non-transferable. Any time a new interconnect agreement needs to be signed, it is done so under whatever terms are prevailing at that time.

[J.P.M.]

As I recall, the plan on the 20 yr. lock on NEM was to apply to the system and not the owners. That is, it stays for 20 yrs. from issuance through ownership changes. Maybe that will wind up on the cutting room floor however.

The rates will be allowed to change but the 1:1 deal on what's fed to the grid up to 100% of use stays.

Caveat: Once, or if, you change plans, the deal's off and you've burnt your bridge.

[logdin]

As I recall, the plan on the 20 yr. lock on NEM was to apply to the system and not the owners. That is, it stays for 20 yrs. from issuance through ownership changes. Maybe that will wind up on the cutting room floor however.

The rates will be allowed to change but the 1:1 deal on what's fed to the grid up to 100% of use stays.

Caveat: Once, or if, you change plans, the deal's off and you've burnt your bridge.

Well, I have two people I respect quite a bit with differing opinions. Imagine that. Might need the lawyers for this one.

On the NEM application for 30KW system and less, page 12 of 13, the following is stated:

K. Term of AgreementThis Agreement shall become effective as of the date of SDG&E’s issuance of the Permission to Operate Letter afterreceipt of all applicable fees, required documents, and this completed Agreement. This Agreement shall continue infull force and effect until terminated by either Party providing 30-days prior written notice to the other Party, or when anew Customer takes service with SDG&E operating this approved generating facility. This new Customer will beintercom-nected subject to the terms and conditions as set forth in Schedule NEM.

The question is "which schedule NEM"? The original NEM, or the NEM schedule in force at time of new ownership?

This is strictly a hypothetical question at this time. Yet, for planning purposes beyond reaching NEM CAP, or CPUC deadline expiring, to me, it seems like an important piece of info. If the PV system has the grandfather and not the new owner, its possible that the grandfathered system may have some value. On the other hand, if the agreement terminates on change of ownership, or change of plan, the PV system may be a detriment to the sale, depending on how the CPUC rules in future years.

It may also may make sense if you turn the house into a rental, to keep the home's utility in the home owners name and not the renters?

Or, going out on a weak limb, do I take the PV system with me to my new residence? Do I get to keep the grandfather then?

[sensij]

I was wrong. Here is the CPUC's ruling on the matter. See page 28.

"Grandfathering" stays with the system, you can't take it with you.

[logdin]

I was wrong. Here is the CPUC's ruling on the matter. See page 28.

"Grandfathering" stays with the system, you can't take it with you.

Thanks Sensi. Page 29 says I cant take it with me.

good to know.

Now if we can nail down if changing plans to TOU "burns the bridge" as JPM put it.

[sensij]

Now if we can nail down if changing plans to TOU "burns the bridge" as JPM put it.

That is not how I read it. If you switch away from net metering to whatever the successor tariff is, you can't come back to net metering. However, as long as you stick with net metering, you have the freedom to choose your OAR (otherwise applicable rate) by whatever criteria would apply if NEM didn't exist.... TOU, DR, whatever.