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Net Energy Metering and

Interconnections

Community Solar in the District of Columbia

Presented by: Virginia Burginger

August 4, 2016

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Overview of Community Net Metering in the District of Columbia

Community Net Metering Participants

How Community Net Metering Works

The CREF Credit Rate

What Forms are Needed

Commonly Used Terms

Frequently Asked Questions

Questions?

We support renewable energy and partner with our customers to ensure

safe and reliable interconnection of renewable energy into the electric grid

Welcome

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Community Net Metering Overview

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Community Net Metering History in the District of Columbia

The Council of the District of Columbia enacted the Community

Renewable Energy Act of 2013 (CREA) on October 17, 2013 and

the Act became Law effective December 13, 2013

Rules were developed by Pepco and stakeholders and approved

by the D.C. Public Service Commission

Pepco began accepting applications for CREFs on June 1, 2016

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Community Net Metering Overview

Community Net Metering

(CNM) provides an opportunity

for Pepco customers in the

District of Columbia to benefit

from renewable energy

production

By purchasing a Subscription

to a portion of the electricity

generated by a Community

Renewable Energy Facility

(CREF), a customer will

receive a credit on Pepco bills

for that share of the value of

the CREF’s energy production

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Community Net Metering Participants

The four participants in Community Net Metering are:

Community Renewable Energy Facility – generates

electricity using renewable sources, usually from solar arrays,

although sources also include wind, tidal, geothermal,

biomass, hydroelectric facilities, and digester gas. The CREF

facility must be located in D.C., and will feed the electricity onto

the grid to be used as part of Pepco’s energy supply

Subscriber Organization – sells to Pepco’s customers in D.C.

shares in, or Subscriptions to, the electricity produced by a

CREF

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Community Net Metering Participants

Subscribers – Pepco customers within D.C. who have

contracted with a Subscriber Organization for shares in, or

Subscriptions to, the electricity generated by a CREF.

Subscribers will receive a Community Net Metering (CNM)

credit on their Pepco bills

Pepco – receives and processes the DC CREF Application

and Contract, and the Subscriber Information; administers the

allocation of customers’ CNM bill credits; and pays the

Subscriber Organization for any unsubscribed energy the

CREF produces

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How Community Net Metering Works

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How Community Net Metering Works in the District

A Community Renewable Energy Facility (CREF) of 5 MW

or less located in the District of Columbia generates electricity

using renewable sources, usually solar arrays; wind, tidal,

geothermal, biomass, hydroelectric, and digester gas facilities

also are eligible. The electricity is fed onto the grid and used as

part of Pepco’s energy supply

A Subscriber Organization sells to Pepco’s customers in the

District shares in, or subscriptions to, the electricity produced

by a CREF. The Subscriber Organization coordinates the

customer/subscriber information with Pepco

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How Community Net Metering Works in the District

Subscribers, or Pepco customers in the District, contract with

a Subscriber Organization for shares in, or subscriptions to, the

electricity generated by a CREF. Customers can subscribe to

as many CREFs as you wish, as long as the total CREF

subscriptions do not exceed 120% of your historical annual

energy consumption. Subscribers receive on their Pepco bills a

Community Net Metering (CNM) credit for your share of the

electricity. Neither solar panels nor a net energy meter are

installed at the Subscriber’s premise

Pepco receives and processes the DC CREF Application and

the Subscriber Information, pays the CREF for the energy

produced, prepares the Subscriber customers’ Pepco accounts

to receive the CNM Credits, and applies the monthly credits

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How Community Net Metering Works

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The CREF Credit Rate

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How the CREF Credit Rate is Calculated

A customer can obtain subscriptions to more than one CREF

and will receive a CNM Credit for each subscription, shown as

separate lines on the Subscriber’s Pepco bill.

The CREF Credit Rate (in $/kWh) is applied to a Subscriber’s

allocation of the energy from the CREF to determine the

Subscriber’s monthly CNM Credit.

The value of the CNM Credit for a subscription will equal the

CREF’s electricity production for the month times the

Subscriber’s subscription percentage times the CREF Credit

Rate set by the Public Service Commission of the District of

Columbia.

Use the formula: [(CREF Output kWh x Subscription %) x

CREF Credit Rate]

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How the CREF Credit Rate is Calculated

The CREF Credit Rate equals the Standard Offer Service

(SOS) rate for General Service Low Voltage Non-Demand

Customer (Schedule GS-LV-ND ) class or its successor, as

determined by the Public Service Commission of the District of

Columbia. The CREF Credit Rate is the sum of the volumetric

(kWh) rates for Generation and Transmission services:

BILLING MONTHS OF

JULY - OCTOBER 2016

BILLING MONTHS OF

NOVEMBER 2016 - MAY 2017

GENERATION - ALL KWH $ 0.06790 $ 0.06827

ADMIN CHARGE $ 0.00300 $ 0.00300

TRANSMISSION - ALL KWH $ 0.00550 $ 0.00550

CREF CREDIT RATE $ 0.07640 $ 0.07677

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What Forms are Needed?

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Forms a Community Renewable Energy Facility Completes

The Generator Owner follows the

standard interconnection

application process, as defined in

Title 15, Chapter 40 of the D.C.

Municipal Regulations

Most CREF facilities will qualify as

a Level 2, 3, or 4 project

The owner of the CREF must

execute a DC CREF

Interconnection Application and

Agreement, and the CREF

Addendum, available on

pepco.com/dccref

Read and understand the CREF

Tariff.

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Forms a Subscriber Organization Completes

Submit a DC CREF

Application and Contract

to Pepco. This explains the

terms under which the

Subscriber Organization

sells the electricity

produced by the CREF to

the SOS Administrator

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Forms a Subscriber Organization Completes

Submit a CREF

Subscriber Information

spreadsheet whenever

there are new or deleted

subscriptions, or changes

to subscriber percentages

Read and understand the

CREF Tariff

The forms and tariff are

available on

pepco.com/dccref

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Information for a Subscriber

A subscriber can buy their energy supply

from Pepco or a competitive electricity

supplier

A subscriber enters into an agreement

with a Subscriber Organization, and

submits no forms directly to Pepco

A customer may obtain subscriptions to

more than one CREF — you will receive a

CNM Credit for each subscription, shown

as separate line items on your Pepco bill

Read and understand the CNM Rider,

stated in the Rate Schedules for Electric

Service, available on pepco.com/dccref

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Sample Residential Bill with Two CREF Subscriptions

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Sample Commercial Bill with Two CREF Subscriptions

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Commonly Used Terms

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Commonly Used Terms

Community Net Metering (CNM) Credit: A line item on a

Subscriber customer’s Pepco bill that indicates the value of the

customer’s share in the CREF Facility’s generation output for

that billing cycle

Community Renewable Energy Facility (CREF): A generator

located in the District of Columbia that produces electricity

using renewable sources, usually from solar arrays

Competitive Electricity Supplier (CES): An entity, other than

the SOS Administrator, including an aggregator, broker, or

marketer, who generates electricity; sells electricity; or

purchases, brokers, or markets electricity for sale to customers

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Commonly Used Terms

SOS Administrator: The entity that provides default electricity

supply, also known as Standard Offer Service, to Pepco’s

distribution customers. Pepco is the SOS Administrator in the

District of Columbia

Subscriber: A Pepco customer within the District of Columbia

who has contracted with a Subscriber Organization for shares in,

or subscriptions to, the electricity generated by the CREF, and

who has identified an individual billing meter within the District to

which the subscription shall be attributed

Subscriber Organization: The entity that facilitates

Subscribers’ shares in, or subscriptions to, the renewable energy

generated by the CREF and arranges for Pepco to apply CNM

Credits to Subscriber customer bills

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Commonly Used Terms

Subscription: A percentage interest in a CREF’s electrical

production

Unsubscribed Energy: The electricity produced by a CREF

generator facility that has not been subscribed to by Pepco

customers

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Frequently Asked Questions

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Frequently Asked Questions — for Subscribers

Does a Subscriber need to submit to Pepco an application,

contract, or other documentation?

Other than having an active Pepco account in good standing,

you do not need to file any CREF paperwork with Pepco. The

Subscriber Organization will include the Subscribers’

information in the documentation it files with Pepco

Can Subscribers still buy electricity from a Competitive

Electricity Supplier?

Yes. Having a subscription does not impact a customer’s right

to choose an energy supplier

How will Pepco know where to apply my CNM Credit?

Pepco will apply the CNM Credit to the customer account

number provided to Pepco by your Subscriber Organization

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Frequently Asked Questions — for Subscribers

Where can I find my CNM Credits on my Pepco bill?

Look in the “Details of your Electric Charges” section. Your bill

will list each CNM Credit on a separate line

Will Pepco charge a fee for administering my Subscription?

Pepco can charge an administrative charge if approved by the

DC Public Service Commission. However, Pepco has not filed

a request to establish an administrative charge at this time

Will I still have a Pepco bill to pay?

Most likely, yes. You will be charged for the energy you

consume off the grid and standard Transmission and

Distribution Charges, Customer Charges, and taxes and fees.

Your CNM Credit may not offset all of these charges

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Frequently Asked Questions — for Subscribers

Can I purchase a subscription if I already participate in Net

Energy Metering?

Yes. However, your existing net energy metering generator will

most likely reduce your historical annual energy consumption,

which would reduce how large your total subscriptions can be

As a Subscriber, will I need to install solar panels or other

generating equipment at my premise?

No. The generating equipment will only be required at the

CREF Facility

Will Pepco install a net-capable meter at my premise?

No. All “net-metering” will be done virtually by applying your

CNM Credits to your Pepco bill

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Frequently Asked Questions — for Subscribers

Can a customer subscribe to more than one CREF?

Yes. For each subscription, a customer will receive a CNM

Credit on your monthly Pepco bill

How many CREFs can a customer subscribe to?

As many as a customer wishes, as long as the total CREF

subscriptions do not exceed 120% of the customer’s historical

annual energy consumption

How can I sell, transfer or cancel my subscription?

Contact your Subscriber Organization for details

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Frequently Asked Questions — for Subscriber Organizations

How many subscriptions can a Subscriber Organizer issue?

As many subscriptions as it wishes, as long as the total

subscriptions do not exceed 100% of the CREF’s generation

output

How do I let Pepco know about changes to Subscriber

information?

Complete and submit to Pepco the CREF Customer

Information spreadsheet to report subscriber additions,

deletions, and subscription percentage changes

Is there a minimum number of subscribers a CREF must

have?

Yes. A CREF has to have at least two (2) Subscribers at all

times

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Frequently Asked Questions — for Subscriber Organizations

What happens to the CREF energy if the CREF is not fully

subscribed?

Pepco will pay the Subscriber Organization for all unsubscribed

energy. Compensation will be at the PJM Locational Marginal

Price (LMP), adjusted for ancillary services

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Frequently Asked Questions — for CREF Generator Owners

Can the electricity from a CREF directly feed into subscriber

premises?

No. The CREF must supply all its energy directly onto the grid

to become part of Pepco’s energy supply. The subscribers

receive the energy virtually, through bill credits

What is the maximum size of a CREF?

A CREF can output no greater than 5 MW AC (alternating

current)

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When will the new CREF be able to begin providing the

energy?

Once the CREF owner has satisfied all requirements of

the interconnection application process, including executing an

Interconnection Agreement with CREF Addendum and

providing an inspection certificate, and the Subscriber

Organization has executed a CREF Contract with Pepco,

Pepco will issue the CREF an Authorization to Operate. At

that point, the CREF may begin generating the energy

Who owns the renewable energy credits generated by the

CREF?

Either the Generator Owner or the Subscriber Organization,

depending on the contractual arrangement between them

Frequently Asked Questions — for CREF Generator Owners

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How Can I Learn More?

Go to pepco.com/gpc, select

Community Solar - CREF

from the left side navigation; or

Go to www.pepco.com/dccref

Contact us:

Green Power Connection Team

www.pepco.com/gpc

gpc-south@pepco.com

(866) 634-6977

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Questions?