For our 2026 rate case, we proposed updates to our Net Metering Program to help ensure our rates reflect the true cost of delivering electricity, especially during peak demand periods. With the proposal, net metering customers would not transition to Energy Wise time-of-day rates, rather they would have transitioned to an Energy Wise Renewable Net Metering Rate Option in January 2027.
City Council has decided to remove the proposed updates to our Net Metering Program from our 2026 rate case. Therefore, until further notice, the current net metering rate structure will remain in place.
Why are changes needed?
We recognize that changes to rate structures can raise concerns, especially if you've made long-term investments in solar.
Not all energy is created equal. On weekdays from 5-9 p.m., electricity demand spikes, and so do the costs to purchase and deliver power. While solar production peaks midday, it drops significantly during these high-demand hours when energy is most expensive.
Currently, net metering customers are billed at a flat rate that does not reflect these peak costs. As a result, customers without solar are covering about $600 per year for each net metering customer. This cost shift is not sustainable or fair to the broader customer base.
Customer solar is an important part of our portfolio, and we appreciate the impact that our net metering customers make to their community.
Utility-scale solar installations, accounting for almost 290 MW of electricity, generate energy at about $0.03 per kWh. Whereas, net metering energy, creating about 50 MW of electricity, is credited at about $0.12 per kWh. While we will continue to support our customer's choice to invest in solar, this difference contributes to the overall cost shift.
Our proposal underscored the need for a more balanced rate structure that better covers the cost of the grid infrastructure needed to exchange customer-generated solar, and deliver reliable electricity 24/7.
With this cost shift, non-solar customers are subsidizing the difference. As a not-for-profit utility, we must ensure our rates are fair and based solely on the cost of service.
